Author: Edith M.

Edith is an investment writer, trader, and personal finance coach specializing in investments advice around the fintech niche. Her fields of expertise include stocks, commodities, forex, indices, bonds, and cryptocurrency investments.

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Crypto Daily Topic Cryptocurrencies

What is Aragon (ANT)? Here is The Definitive Guide

Since time immemorial, the world has run on centralized systems. But centralization has proven to have its own challenges, such as bureaucracy, slow decision-making processes, and single points of failure. On the other hand, a decentralized model offers room for more timely decisions. And it eliminates a single point of attack. 

Since time immemorial, the world has run on centralized systems. But centralization has proven to have its own challenges, such as bureaucracy, slow decision-making processes, and single points of failure. On the other hand, a decentralized model offers room for more timely decisions. And it eliminates a single point of attack. 

Since time immemorial, the world has run on centralized systems. But centralization has proven to have its own challenges, such as bureaucracy, slow decision-making processes, and single points of failure. On the other hand, a decentralized model offers room for more timely decisions. And it eliminates a single point of attack. 

With blockchain, the concept of decentralization is even better. The technology brought to life by Bitcoin’s creator – Satoshi Nakamoto – can facilitate unprecedented speeds, transparency, and security in the way we do things. 

Thanks to blockchain, we are now talking about decentralized autonomous organizations (DAOs) – organizations that (can) run on decentralized platforms and without the need for human input. Such an organization model not only saves money, but it also saves time and packs a ton when it comes to efficiency. 

Aragon Network is a platform that aims to empower organizations anywhere to achieve this. Powered by its native token, ANT, Aragon is leading the way towards a decentralized economy. 

What is Aragon? 

Launched in February 2017, Aragon is an Ethereum-based, open-source project that aims to empower anyone to create their own decentralized applications (DApp). It features a native token, ANT, that gives network participants the right to vote on the future direction of the platform. The ultimate goal for the project is for it to become a decentralized autonomous organization and DApp that’s free for anyone to create their own on the Aragon blockchain. 

The project’s Rationale

Traditional organizations spend a ton of money on overhead and administrative costs. And in their interactions with other organizations, there is the undesirable mix of fees, delays, and intermediaries that lead to overall friction and inefficiencies. Aragon seeks to remedy this by providing a platform where organizations can operate in a decentralized model on a shared platform.

Most organizations share what can be called standard functions. Whether it’s providing equity to investors, allowing shareholders to vote on key decisions, fundraising, compensating employees, implementing security access, almost all organizations have similar administrative functions. These functions make up part of the Aragon DApp solution for any organization that’s on-boarded on the network. Aragon hopes to simplify the process of setting up and running these operations on the blockchain. 

The Technology Behind Aragon

The Aragon platform is made of Aragon Core, a Solidity decentralized autonomous organization (DAO) framework, and online-based DApps. Aragon focuses on two key principles: 

  • A decentralized court/jurisdiction for solving disputes on the network and enforcing contracts on the platform
  • An upgrade system

Aragon Core, which supports organizational and management logic, is made of four components: 

  • Bylaws defining user permissions
  • A decision-making governance system
  • Capital system for token issuance
  • A finance accounting system 

Aragon’s interface is designed to be friendly and intuitive for non-technical users, yet provides an environment for developers to create applications and contribute to the network. 

Also, Aragon’s incorporation of DAO principles is intended to eventually allow the network to give control to users who will govern the system through a voting mechanism incentivized by the ANT token.

In addition, the network hopes to eventually be financially self-reliant by aggregating fees collected from users. The funds will be allocated to maintaining the network and paying service providers such as core contract developers, the jurisdiction of courts, and a bug bounty program. 

Modular Custom Features

Organizations will be able to edit existing modules, incorporate more functionalities, or develop completely new ones as they wish. The Aragon team envisions the Aragon core technology finding users that extend beyond operating traditional businesses. Among others, the following use cases could emerge: 

  • Political elections and national polls: smart contracts could be employed to create a prediction model that holds elected officials to their promises
  • Contractor payment module: on-boarding subcontractors and compensating them based on milestones or whichever model they prefer
  • Enhanced analytics and accounting: employ advanced visualization techniques to accounting and auditing data for your organization

The ANT Token

The ANT token is the native cryptocurrency of the Aragon network. The token is critical to the governing system and incentivizing mechanism of the platform. The token was sold in a successful initial coin offering (ICO) in May 2017, raising $24 million. 

The token is at the center of the running of the platform. Individuals with a stake in ANT can vote on key decisions, participate in the decentralized court system, play a role in the Aragon Foundation and contribute to research and development for the network through the Aragon Nest program. 

Who is Behind Aragon? 

The Aragon team comprises diverse talents with diverse backgrounds, both geographically and experience-wise. 

Luis Cuende is the founder and project lead and holder of accolades, including “The Best Underage European Programmer” in  2011 and “Forbes 30 Under 30” and “MIT Innovators Under 35”. He has also been an advisor to the Vice President of the European Commission in charge of the EU’s  Digital Agenda. 

Jorge Izquierdo is the Tech Lead. He has several projects under his belt and is also a recipient of the Thiel Fellowship and Apple’s WWDC scholarship. 

The ultimate goal of the project, however, is for Aragon to no longer need a team. The developers hope community involvement and support will drive future initiatives, with the Foundation only playing a minor role in coordinating contributions.

What’s the Market Look Like for ANT? 

At the time of writing, ANT is trading at $1.12 while ranking at #126 in the crypto market. It has a market cap of $35, 983, 594, a 24-hour volume of $259, 021, a circulating supply of 32,100, 881, and a total supply of 39, 609,534. The token’s highest price ever was $7.76( Jan 07, 2018), while it’s lowest was $0.285450 (No 25, 2018). 

Where to Buy and Store ANT

ANT is available on several popular exchanges, including Bittrex, Liqui, Changelly, Livecoin, IDEX, EtherDelta, Novaexchange, HitBTC, and ShapeShift. You will need to first purchase BTC or ETH, then exchange it for ANT. 

ANT is Ethereum-based, meaning you can store it on any Ethereum-compatible wallet. Some options include MyEtherWallet, MetaMask, ethaddress, Atomic Wallet, Guarda Wallet, Ledger Nano, and Trezor. Ledger and Trezor are particularly superior options in terms of security.

Final Words

Aragon can help usher in a radical shift in the structure and operations of organizations. By helping them integrate blockchain technology, we can start seeing the revolutionary features of transparency, immutability, and decentralization – taking form in actual day-to-day functions in organizations. 

Aragon has created a friendly and intuitive interface so that both non-technical and developers can derive and create value, optimize processes, and participate in the blockchain revolution. Aragon could very well be the next-gen solution for a decentralized economy. 

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Cryptocurrencies

Introducing MaidSafeCoin: What is This Network All About?

We live in a world where we entrust our data to huge corporations who cannot be trusted to keep it safe. Take, for instance, the Facebook and Equifax debacles where data for millions of users suffered a massive breach of privacy. On the other side, governments have been accused of conducting mass surveillance on citizens. 

We live in a world where we entrust our data to huge corporations who cannot be trusted to keep it safe. Take, for instance, the Facebook and Equifax debacles where data for millions of users suffered a massive breach of privacy. On the other side, governments have been accused of conducting mass surveillance on citizens. 

We live in a world where we entrust our data to huge corporations who cannot be trusted to keep it safe. Take, for instance, the Facebook and Equifax debacles where data for millions of users suffered a massive breach of privacy. On the other side, governments have been accused of conducting mass surveillance on citizens. 

Events like these prove that your data is not safe in the hands of centralized systems. Data that you use to sign up for online services such as email, Know Your Customer (KYC), social media sites, etc. is not safe. Even information that you leave on such sites is not safe. 

Enter SAFE Network. This is a project that seeks to change how we interact with the internet by the use of high-level encryption, distributed technology, and an incentivizing system to protect users.

This article is an in-depth guide into the SAFE network project and its associated tokens, MaidSafeCoin, and Safecoin.

What is MaidSafeCoin?

MaidSafeCoin (MAID for “Massive Array of Internet Disks) is a token for the Safecoin network, a decentralized and privacy-focused network. Safecoin will be the currency for the SAFE network. The SAFE (Secure Access For Everyone) network is made of a contribution of users’ extra computing space and power as well as bandwidth. The idea behind SAFE is to provide decentralized storage for users all over the world. 

The SAFE network promises 20 things to users once it’s launched. It calls them “the fundamental principles.” Among others, it promises the following things: a serverless network, digital signing of all transactions, anonymized data, permanent data storage, and creation of multiple identities. 

The SAFE network itself is not blockchain-based, which allows it to scale faster than the traditional blockchain.

What is the Safe Network?

The SAFE Network is a way for people to access apps that put their data security above all else. Through the SAFE software, you can message, email, participate in social networks, store data, and video calls in a safe and secure manner. 

SAFE  employs advanced peer-to-peer technology that combines the spare computing power and data connection of network users, creating a large, global network. Users are incentivized to share their computing resources by being rewarded with the network’s built-in token known as Safecoin.

The SAFE network has been a work in progress since 2016. It is a project of MAIDSafe, a technology company based in Ayr, Scotland. The SAFE team is led by founder David Irvine, with a team that’s distributed across the globe. 

Why should I Use theSAFE Network?

Existing applications and programs cannot be trusted to protect your data, from selling your data to advertisers to controlling your data. On SAFE, your data remains completely under your control, as the network utilizes distributed resources, eliminating a single point of failure that would render your data vulnerable to hackers and other malicious parties. And by contributing your idle computing resources, you get compensated with cryptocurrency.

How Does Safe Network Work? 

Below, we’ll take a look at the functionalities of the SAFE Network. 

#1. Encrypted Data

When you upload your data on the SAFE network, it’s broken into chunks, hashed with a 256-bit hash algorithm, and encrypted. It is then randomly distributed across the network. The network also makes copies of the data so that even if a device storing it goes offline or down, you can still access it. 

Also, the SAFE network intuitively creates more copies of data that is in high demand. This means popular websites will have more copies of their data created, making them faster, as opposed to the current system where more copies would slow them down.

#2. Vaults

The SAFE Network is made of interconnected computers known as Vaults. A Vault is a software that connects/plugs a device to the Network. Collectively, Vaults oversee all the data on the network by managing encrypted user data distributed across the network. A farmer (more on that below) does not have the capacity to decrypt data that their Vault receives. This ensures the ultimate safety of user data on the SAFE network. 

Farmers on the network start their Vault level at 1, and their responsibility is to safeguard data in a random group as they move from group to group, their Vault level increases – a process known as node aging. Farmers are also subjected to a test known as ‘Proof of Resource.’ 

The test involves the network storing random pieces of data on your computer. If you look after them properly, you’re regarded as a valuable and trusted resource to be network, and your level is increased. If you don’t, your level is reduced. As nodes/vaults increase in age, so does the network gain more trust in them and consequently become ripe candidates for being assigned decision-making power in the network.

What is Farming? 

Users who provide their excess computing resources to the network (running a vault) are rewarded with Safecoin. The resources could be any of the following: storage, CPU, data connection, and time that allows the encrypted data to be stored and retrieved from their devices. 

Safecoin is given as an incentive for users to provide their resources to the network. These resources are storage space, CPU, bandwidth, and online time that enable the encrypted chunks of network data to be stored and retrieved from their computer. 

This process of operating a Vault and getting paid with Safecoin is called ‘Farming.’ 

The process of providing resources and receiving Safecoin in return is called ‘Farming.’ Each chunk of encrypted data is kept in a Farmer’s Vault, a data storage and management software on the device that not even they can read or access. 

What is Proof of Resource? 

Proof of Resource is the process by which the network determines a Vault’s ability to reliably store data and retrieve it as and when necessary. This ability is measured by the CPU speed, data connectivity, storage space, and time online.   

The proof of resource mechanism uses a model similar to a zero-knowledge proof. This means the network does not need to know the content of the data, but only if the data is being stored appropriately. 

What is Safecoin?

Safecoin is a token that’s automatically generated by the SAFE network. Unlike crypto networks that need miners, the SAFE network automatically confirms transactions. The token is transferred using the digital signature of its last owner. This process is ‘network atomic’ – meaning the network updates all copies to reflect the new transaction.

What is the MaidSafe token?

MaidSafeCoin is a proxy token that presides on the Omni network on the Bitcoin blockchain. It was sold in a pre-sale to raise funds for the SAFE network project. The token will be swapped for Safecoin on a 1:1 basis when Safecoin is launched. 

MAIDSafe’s Economics

As of Jun 03, 2020, MaidSafeCoin is trading at $0.137611, while ranking at #89. It has a market cap of $62, 276, 246, and a 24-hour volume of $145, 272. Its circulating and total supply is 452, 552, 412. MAID’s all-time high was $1.20 (Jan 02, 2018), while it’s all-time low was $0.004059 (Mar 08, 2015). 

Where to buy MAID 

In the early days, your options for acquiring MAID tokens were slim. Fortunately, the coin has now been listed on several popular exchanges, including Coinswitch, Changelly, HitBTC, Poloniex, and Bittrex. You will need to first buy a proxy coin such as Bitcoin or Ethereum and then exchange it for MAID. 

Safecoin currently offers a client wallet for Windows, Mac OS, and Linux, as well as a web wallet, paper wallet, and Android wallet. You can also use Omnicore, an offline wallet. 

Final Words

The SAFE network is yet to take full form, but once it does, it will be a total game-changer in the online storage, internet use, and personal data management space. People will no longer have their data stored and controlled by corporate machines and centralized government systems. Nor will they communicate in the fear that unauthorized third parties are watching their correspondences. SAFE will essentially hand back the power of the internet to the people.

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Cryptocurrencies

What is Streamr (DATA): Everything You Need to Know

The concept of real-time data is becoming huge. In the very near future, such data will become a hot commodity. Already, massive volumes of real-time data are being generated across industries and supply chains. And this is in a time when the Internet of Things (IoT) is catching up, and we have connected devices everywhere. 

The concept of real-time data is becoming huge. In the very near future, such data will become a hot commodity. Already, massive volumes of real-time data are being generated across industries and supply chains. And this is in a time when the Internet of Things (IoT) is catching up, and we have connected devices everywhere. 

The concept of real-time data is becoming huge. In the very near future, such data will become a hot commodity. Already, massive volumes of real-time data are being generated across industries and supply chains. And this is in a time when the Internet of Things (IoT) is catching up, and we have connected devices everywhere. 

This data is valuable. It can be harnessed to optimize business processes, track assets with improved accuracy, target customers for better results, and tap into an endless possibility of new business models. 

However, there is a bottleneck preventing this. Currently, data storage and distribution is a centralized affair, which means a concentration of power in a few hands, lack of innovation, and a single point of failure. And while some projects such as IPFS, Swarm, and BigChainDB are providing decentralized storage services, they fall short when it comes to high-volume, real-time data. 

Streamr is a blockchain-based project that aims to provide the real-time data missing link. It hopes to achieve this through a global and peer-to-peer network and an incentivization mechanism that will “keep the data flowing.” 

In this article, we look at the Streamr project and its native token, DATA coin. 

What is Streamr?

Streamr is an off-chain network built on Ethereum blockchain that employs smart contracts to allow individuals, companies, and machines to trade and monetize data. The Streamr platform will create a marketplace that enables anyone to tokenize data on a decentralized, peer-to-peer network.

This marketplace could potentially offer a lot of data to a wide array of uses. Decentralized application (DApps) developers can obtain data for running their apps from Streamr’s data streams. Internet of things (IoT) machines can swap data amongst each other from different sides of the world. Or,  a person can input their health/statistics metrics into their workout app, and scientists/researchers could use this data in their study. And on and on. The possibilities are endless. 

In Streamr’s words: “Streamr is a decentralized network for scalable, low-latency, untamperable data delivery, and persistence, operated by the DATAcoin token. Anyone – or anything – can publish new data to data streams,  and others can subscribe to these streams to power DApps, smart contracts, microservices, and intelligent data pipelines.” 

How Does Streamr Work? 

The Streamr network has three groups of people: publishers, consumers, and brokers (broker nodes).  

Publishers submit data to Streamr’s data streams – a process called an ‘event.’ Some of the time, data is free, while at others, consumers must purchase it using the network’s native token DATAcoin. For their part, brokers publish events, manage storage, manage communications between nodes, subscribe to data streams, and so on. 

Streamr uses a scaling technology known as sharding. (Sharding is a database partitioning technique that enables a blockchain to scale, allowing for the processing of more transactions). Due to this, a node on the network is not responsible for all the traffic. Instead, each node is responsible for its partition or share of the traffic. Nodes are paid in DATACoin tokens for distributing data to consumers.

The network also utilizes checksums in a view to maintaining honesty in the network. A broker node has to present checksums of their work for peer review by other nodes. The white paper states that “If a node reports deviant checksums, none at all, or the checksums are not coherent, no reward is obtained and offending nodes become less likely to be assigned responsibility for a partition in the future.”

Data transmission is facilitated by smart contracts, which are responsible for holding information and maintaining the registry of data streams, allocating responsibility to broker nodes, and okaying contracts for data buying and selling. 

Streamr’s Technology Stack

Streamr’s real-time data conduit is powered by three pieces of technology: 

  • The Stream Editor – which features a usability layer and a set of tools that facilitate the quick development of data-driven apps
  • Steamr Engine – an off-chain event processing, analysis, and refining engine 
  • Streamr Data Market – a hub for shared datastreams where anyone can contribute, subscribe, or purchase data.
  • Streamr  Network – the data transportation layer that supports events, holds stream meta-data, handle messaging, integrity checking, and data transmission.

Smart Contracts on Streamr

Streamr utilizes smart contracts to achieve and maintain integrity in the network. The Streamr white paper says: “A number of Ethereum smart contracts support the operation of the Streamr Network and the Data Market. The stream network uses smart contracts for incentivization, coordination, permissioning, and integrity checking. The Data Market builds upon features provided by the Network for data licensing and monetization. DATAcoin, an ERC20 token, is used by both layers for incentivization, as a reputation metric and as the means of payment.”

The Streamr Team

The Streamr team is led by Henri Phikala, Risto Karjalainen, Nikke Nylund, and Michael Malka. Phikala is a software engineer, entrepreneur, an algorithmic trader. He has designed the streamer cloud analytics platform.

Karjalainen is a data and finance expert with a Ph.D. from the Wharton School of Business. He’s a quantitative analyst with years of experience in systematic trading and asset management. 

Nikke Nylund has a Bachelor of Science in Finance and Entrepreneurship from the Helsinki School of Economics. He has founded or invested in several successful ICT and tech companies and has years of experience as an algorithmic trading strategist. 

Michael Malka is an entrepreneur and tech enthusiast with 20 years of software development experience working in startups to banks to telecommunications. He has a Master’s Degree in Computer Science from the University of Helsinki. 

The DATA Token 

Streamr’s native token is used to compensate data publishers, and consumers pay for data via the token. Here is a more detailed breakdown of the token’s functions. 

  • Incentivizing nodes to participate and a peer-to-peer network by lending their time, power, computing and bandwidth resources
  • Incentivizing data producers to contribute the data and helping the network grow for everyone’s benefit
  • Serving as the basis for karma – the Streamr community’s reputation metric

DATAcoin operates atop the Ethereum blockchain. Thus, Ethereum-based smart contracts maintain tokens balances and oversee trustless and secure transactions. As an ERC20 token, DATA coin is interoperable with a wide range of wallets as well as tokens.

Streamr (DATA) Economics

As of June 08, 2020, DATA coin is trading at $.0.061719, while ranking at #115. It has a market cap of $41, 927, 535, a 24-hour volume of $574, 230, a circulating supply of 679, 327, 435, a total supply of 987, 154, 514. DATA has an all-time high of  $0.374587 (January 07, 2018) and an all-time low of $0.004854 (March 13 2020). 

Where to Buy and Store Streamr

DATA is sold/exchanged in a variety of exchanges such as Ethfinex,  Binance, HitBTC, Gate.io, EtherDelta, HitBit, and eToro. You can exchange several cryptos for DATA, such as BTC, ETH, or USDT. 

Being an ERC20 token, DATA can be held in any ERC20/Ethereum compatible wallet. Popular options include MyEtherWallet, Guarda Ledger, Trezor, MetaMask Parity, InWe Wallet, Infinito Wallet, Trust Wallet, and others. 

Final Words

Streamr is taking the idea of decentralized data and elevating it to a higher, more timely level. The world’s economy is currently in a megatrend motion towards real-time data, and Streamr is preparing to meet this need in a global, peer-to-peer, and blockchain-backed system. 

Streamr’s decision to operate on top of Ethereum’s blockchain instead of building its own from scratch blockchain affords more time and concentration to research and development of the concept, meaning it can achieve its goals faster. If the project catches on, we could see a real-time, decentralized data model that could forever change the way we interact with data. The project is one to keep an eye on. 

Categories
Cryptocurrencies

What is Horizen (ZEN) All About?

The development of the internet was a turning point for humanity. Thanks to the internet, we’re in what’s called the ‘information age’ – where information is quickly and widely disseminated to all corners of the globe. But while this is positive, it also means the privacy of persons is not a 100% guarantee. This is especially true with governments that keep their citizens on watch – for one reason or another. 

The development of the internet was a turning point for humanity. Thanks to the internet, we’re in what’s called the ‘information age’ – where information is quickly and widely disseminated to all corners of the globe. But while this is positive, it also means the privacy of persons is not a 100% guarantee. This is especially true with governments that keep their citizens on watch – for one reason or another. 

The development of the internet was a turning point for humanity. Thanks to the internet, we’re in what’s called the ‘information age’ – where information is quickly and widely disseminated to all corners of the globe. But while this is positive, it also means the privacy of persons is not a 100% guarantee. This is especially true with governments that keep their citizens on watch – for one reason or another. 

There’s also the problem of millions of people lacking rights to property, trapping them in cycles of poverty. 

Blockchain has been touted as a technology that can solve a myriad of today’s problems, thanks to its ground-breaking features of decentralization, immutability, and state-of-the-art security. 

Horizen is a project that seeks to solve the above problems with blockchain-powered solutions.  This piece is an in-depth look at the exciting ways it proposes to do this. We’ll also share with you where you can purchase the ZEN token. 

What is Horizen? 

Zen is the native token for the Horizen blockchain ecosystem. Horizen is an end-to-end, blockchain-based, and zero-knowledge platform that allows users to send, exchange and release communications, data, and value in a safe, private, and peer-to-peer manner.

Horizen seeks to be a blockchain destination for private messaging, confidential publication of communications, and a decentralized property management platform. The Zen team believes privacy, owning property, and expressing oneself privately are rights – and ones people have been denied. For this reason, it seeks to restore these rights through blockchain solutions.

In Horizen’s words: “We live in a hyper-regulated and surveilled world where billions of individuals are deprived of basic human rights such as property ownership, privacy, free association, and access to information. The technology exists to solve some of these problems, and Zen’s early implementation will do exactly that.” 

About Horizen

Formerly known as ZenCash, the Horizen project launched in May 2017 after forking from ZClassic – a fork from privacy coin ZCash. ZClassic was merely a privacy coin, but ZenCash wanted to create an entire ecosystem that offered more than private transactions. 

As they state in the white paper: “Our team realized that Zclassic could be further extended as a fully encrypted network with an innovative economic and governance model that better aligns with Satoshi’s original vision for a decentralized global community. We view ZClassic as a fundamentally pure open source, all-volunteer cryptocurrency project, while Zen extends into a platform with internal funding to facilitate a broader set of communications, file sharing, and economic activities.”

How Does Horizen Work? 

To understand how Horizen works, let’s get a refresher of how ZCash, its grandparent blockchain, so to speak, works. ZCash accomplishes transactions through either shielded and transparent transactions. Users can choose completely private transactions through anonymous ‘z’ addresses, or transparent ‘t’ addresses. 

Horizen employs a secure messaging function and shielded transactions, providing complete anonymity for users. It accomplishes this through three main technologies: 

#1. ZenChat – a communications network that facilitates encrypted messages through industry-trusted algorithms. These texts have a 1024 character limit but are an ultra-secure way to pass messages.

#2. ZenPub – an anonymous content publishing platform that uses GNUnet or IPFS. Publishers can release such content anonymously. Horizen believes this functionality is an important extension of privacy. 

#3. ZenHide – the ability to circumvent crypto bans by domain fronting. This involves concealing the endpoints of communication. As Horizen explains, “A censor, unable to distinguish fronted and non-fronted traffic to a domain, must choose between allowing circumferential traffic and blocking the domain entirely, which results in expensive collateral damage.” This protects crypto users from hostile jurisdictions. 

Below are more functionalities of the Zen network: 

  • Governors as a Service (GaaS) – which will entail opening up access of its governance model so other initiatives can use it
  • A decentralized crypto exchange (DEX) – a platform where crypto holders can trade tokens amongst each other in a peer-to-peer, decentralized and uncensorable environment
  • Selective proof of title for a property – securing individuals’ property by providing a secure and trustless property management platform
  • Decentralized banking services – the ability to secure instant loans in a safe secure and decentralized environment
  • Peer-to-peer (P2P) insurance – a system where participants can pull their resources for various types of insurance covers

Horizen’s Secure Nodes and Standard Nodes 

Network nodes for any blockchain have the responsibility of cushioning the network against attacks. They facilitate instant and untraceable payments. In addition, they support a decentralized model of governance where nodes can make their voice heard on key issues. 

One criticism leveled against this ‘traditional’ system is that miners can switch from one coin to another in response to a coin’s changing fortunes. There’s nothing keeping miners ‘loyal’ to any particular cryptocurrency, except profits. 

To address this problem, Secure nodes on the Zen platform are required to deposit a set amount of collateral before operating a node. This is so to keep miners loyal to the network. The following are the key functions of Secure nodes:

  • Ensure all communications relied on the network are encrypted
  • Maintaining the full Zen blockchain
  • Protecting Zen wallet applications via certificate-based encryption techniques

For a node to become a Secure Node, they need to meet two major requirements:

  • Have a software that meets the provided infrastructure requirements
  • Have a memory of 4GB+

The Zen platform also features ‘standard nodes.’ These are nodes that can be operated on any Linux server Mac or PC. The standard node plays the role of both node and wallet. Standard nodes do not possess the high-level encryption of Secure Nodes, but they help to decentralize the network, help the system run optimally, and boost its resilience. 

The Horizen Team 

Horizen is engineered by a core team of three, who are Joshua Yabut, Rob Viglione, and Rolf Versluis. Yabut is an experienced scientist with a background in cryptocurrency (part of the Zclassic team) aerospace engineering and computer science. 

Viglione is a former physicist, military officer, and a mathematician. He was also a member of the Zclassic team. He is a libertarian who believes peace and freedom are an essential part of life. 

Versluis has an extensive background in IT – having worked for Cisco and is a nuclear-trained officer in the US Submarine Force. 

What’s the Market Look Like for Zen?

As of June 2nd, 2020, Horizen is trading at $6.53, at the market rank of #95. Its total market capitalization is $60, 089,955, and it has a  24-hour volume of $4, 942, 379. ZEN has a circulating and total supply of 9, 197, 938, and a maximum supply of 21, 000, 000. The token’s all-time high was $67.29 (Jan 10, 2018), and its all-time low was $3.09 (July 31, 2017). 

Where to Buy Zen

You can purchase Zen from a variety of popular exchanges such as Bittrex, Cryptopia, OKEx, Binance, HitBTC, Huobi, Sistemkoin, and CoinEX. You need to purchase cryptos such as BTC, ETH, BNB, and USDT and exchange it for Zen. You can also attempt to mine Zen here.

For storage, Zen provides the following options: 

  • Sphere, Swing and Arizen wallets for desktop
  • Horizen Core – A Command Line Interface (CLI) for the more tech-minded
  • MyZen wallet for web, and
  • Zen wallet for mobile 

Third-party options include DDT Wallet, CoolWallet, Ledger, Coinomi, Paytomat, Guarda, Magnum, Cointigo, and Ownbit. 

Final Thoughts

Zen takes the idea of privacy and expands it, creating a suite of functions that the crypto community can realize real value in. While it may not have the name recognition of Monero or ZCash, it may emerge as the dark horse of privacy coins as more and more people start treating privacy as a must-have commodity. The project is worth keeping in your sight.

Categories
Cryptocurrencies

Komodo Project: Everything you’ll need to know about this Privacy Coin

One of the pain points of the pioneering blockchain – Bitcoin, is its pseudonymity of transactions that make it possible (although hard) for an interested third party to track down the real-world identities of individuals. In an era when privacy is more valuable than ever, such a state of affairs is doomed to be unsatisfactory to many. 

One of the pain points of the pioneering blockchain – Bitcoin, is its pseudonymity of transactions that make it possible (although hard) for an interested third party to track down the real-world identities of individuals. In an era when privacy is more valuable than ever, such a state of affairs is doomed to be unsatisfactory to many. 

One of the pain points of the pioneering blockchain – Bitcoin, is its pseudonymity of transactions that make it possible (although hard) for an interested third party to track down the real-world identities of individuals. In an era when privacy is more valuable than ever, such a state of affairs is doomed to be unsatisfactory to many. 

This is why many succeeding blockchains have attempted to provide a bit more privacy. One of those is the Komodo blockchain, which is a fork of the ZCash blockchain – itself a privacy blockchain. 

Komodo aims to be a blockchain powerhouse of sorts. It’s a decentralized exchange, an atomic swap, and a decentralized ICO platform. 

In this guide, we discover more about what Komodo is all about, along with the platform’s token.

What is Komodo? 

Komodo is a privacy coin and blockchain project that aims to be a faster, more secure alternative to the traditional blockchain. It’s a platform that allows crypto developers to launch ICOs as well as their blockchains. Besides, the Komodo platform hosts a decentralized exchange as well as an anonymizer that keeps transactions private. 

Komodo is built off of ZCash, another privacy coin, and inherits some of its privacy features such as the ZK-SNARK technology. These privacy features enable users to spend, send, and receive funds without leaving a trackable trail. This, when combined with Komodo’s anonymization tool Jumblr, provides the utmost privacy for users. 

Who is the Team Behind Komodo? 

In keeping with the privacy theme of the Komodo ecosystem, the project’s architects have chosen to remain pseudonymous. The project’s lead identifies by “jl777” Lee, and the  chief technology officer as “ca333.”

How Does the Komodo Platform Work? 

The Komodo platform encompasses several components that make up its entire ecosystem. The team would like you to know that they call “features” what others call “revolutionary.” With that, let’s look at Komodo’s features. 

#1. BarterDEX

BarterDEX is a decentralized, atomic swap-enabled exchange. Atomic swaps mean directly exchanging one token for another instead of relying on proxy tokens like on centralized exchanges. This reduces counterparty risk. 

BarterDEX also deals with the problem of low liquidity that is common with decentralized exchanges. It does this by utilizing ‘liquidity provider nodes’ (LP nodes), which stabilize the market by making it easier for traders to conduct trades. 

#2. Jumblr

Komodo utilizes an open-source and decentralized anonymizer known as Jumblr to obscure transactions’ trail. This renders it impossible for third parties to track down your identity. 

The process works as follows. The anonymizer redirects your Komodo (KMD) tokens from all non-private addresses into several (private) zk-SNARK addresses. These obscured addresses remove any trail from the transactions. Then, the tokens are rerouted towards a new address that you have chosen. Jumblr is also connected to BarterDEX. This means you can also add an extra layer of privacy to your trades. 

#3. Delayed Proof-of-Work (dPoW)

Komodo uses a hybrid consensus mechanism known as Delayed Proof-of-Work (dPoW) to maintain the network. In a ‘Komodo twist,’ the dPoW relies on an original consensus algorithm with no specification on what it could be. Such an algorithm can either be Proof-of-Work or Proof-of-Stake. This hybrid mechanism allows the Komodo platform to capitalize on the security provided by the hashing power of another blockchain. 

The dPoW mechanism uses two nodes: notary and normal nodes. Just like in a delegated Proof-of-Stake mechanism, stakeholders are responsible for choosing notary nodes who will determine the validity of transactions. In Komodo, 64 notary spots can be filled at any given time, but 13 of those are enough to secure the network. These nodes are tasked with the responsibility to notarize blocks from the dPoW chain onto the secondary blockchain. 

Like we noted earlier, a dPoW network can be built on top of a secondary algorithm. Komodo’s dPoW is built on Bitcoin’s Proof-of-Work algorithm for the latter’s strong hash rate, which enables a robust, secure network. And transactions taking place using dPoW do not have to pay transaction fees for using the secondary blockchain. 

#4. Decentralized Initial Coin Offerings (dICOs)

Komodo also supports decentralized Initial Coin offerings (dICOs). A dICO is in many ways similar to the traditional ICO, but avoids much of the pitfalls associated with a centralized system. By just a few Komodo commands, you can get started on your own blockchain and kickstart an ICO. 

Below are the advantages of a dICO: 

  • You can distribute your new coins among community members without them being scooped up by whales.
  • The benefits of the entire Komodo platform, including the BarterDEX
  • Removal of a single point of failure which is prone to attack and could jeopardize the initiative
  • Users can participate anonymously, thanks to the Jumblr anonymizer.

What’s the Komodo (KMD) Token?

The KMD token is the native currency of the Komodo platform. It powers transactions on the Komodo platform; and will gain more usefulness as more functionalities are built upon it. 

As of May 31, 2020, KMD is trading at $.0633420, while ranking at #78 in the market. It has a market cap of $76, 012, 370, a 24-hour volume of &6, 207, 821, a circulating and total supply of 120, 003, 181, and a maximum supply of 200, 000, 000. It has an all-time high of $10.00 (Dec 21, 2017) and an all-time low of $0.002143 (March 13, 2017).

Where to Buy and Store KMD

You can purchase KMD directly or trade another cryptocurrency for it on a variety of reputable exchanges such as Bittrex, Binance, Cointree, Changelly, Huobi, HitBTC, Shapeshift and Bitit. 

When it comes to storage, you have numerous options. You can opt for Komodo’s own Agama wallet, Komodo OceanQT, or paper wallet. If you’re more tech-savvy, you can also go for the Komodo CLI (Command Line Interface). Other options include third-party wallets such as Zerus wallet, Guarda Wallet, and Ledger. 

Conclusion

Komodo is a project that’s flipping the script on what a blockchain system can be all about. From being a decentralized ICO platform to featuring an anonymizer to hosting a decentralized exchange. The platform’s Jumblr technology combined with ZCash’s ZK-SNARK ensures utter privacy for users, and you can easily kickstart your blockchain project by executing a few commands on the platform.  As the platform continues to evolve, fans of the project can expect more exciting things. 

Categories
Cryptocurrencies

What is Lisk (LSK)? 

Bitcoin was about taking power from centralized finance systems. Thanks to the vision of Satoshi Nakamoto, individuals can own a currency that cannot be censored, controlled, or frozen by anyone. And now, ten plus years after their groundbreaking currency, Satoshi would be gratified to know that their idea is coming true in other facets of our society.

Bitcoin was about taking power from centralized finance systems. Thanks to the vision of Satoshi Nakamoto, individuals can own a currency that cannot be censored, controlled, or frozen by anyone. And now, ten plus years after their groundbreaking currency, Satoshi would be gratified to know that their idea is coming true in other facets of our society.

Bitcoin was about taking power from centralized finance systems. Thanks to the vision of Satoshi Nakamoto, individuals can own a currency that cannot be censored, controlled, or frozen by anyone. And now, ten plus years after their groundbreaking currency, Satoshi would be gratified to know that their idea is coming true in other facets of our society.

Bitcoin’s driving technology, blockchain, is being harnessed for a raft of industries. But one area that’s not so obvious is the one for decentralized applications (DApps). DApps are a new kind of apps not controlled or regulated by any single entity.

They are the polar opposite of traditional applications whose developers are at the whims of centralized entities.

Lisk is hoping to change this by empowering developers all over the world with the means to earn from their work. Let’s get a closer look at how it plans to make this happen.

What is LISK? 

Launched in May 2016, Lisk is an open-source and blockchain-based platform that aims to make blockchain technology more accessible for developers to build decentralized applications (DApps). It does this by employing side chain technology.

Lisk aims to address the problem developers face when creating applications using blockchain. Developers work so hard but are usually under the mercy of centralized entities (such as Google Play and Apple’s App Store), which get the largest share of revenues.

Lisk aims to correct this by creating a decentralized platform that will allow developers to deservedly earn from their work. Also, instead of using a proprietary coding language, Lisk utilizes JavaScript, the most well-known, so as to accelerate development to make it easier for developers to join the platform.

How Does Lisk Work 

Lisk is a platform that lets developers create decentralized applications ((just like Ethereum or NEO). However, Lisk distinguishes itself in several ways.

For instance, Ethereum uses Solidity, a language unique to it, thus requiring developers who wish to use the platform to learn a new language. Also, the platform is majorly dedicated to smart contracts. This ingrained code means third parties have to operate as front-end applications.

Lisk utilizes sidechain technology and a software development kit (SDK) to empower developers to produce high-quality DApps.

Sidechains

Sidechains are independent blockchains that connect to the main blockchain without interfering with its performance. This creates interoperability that enables users to perform previously impossible tasks such as transferring your tokens directly between chains. For developers, sidechain tech allows them to customize things like consensus algorithms, testnets, and asset tracking.

Many side chains feature just one blockchain (e.g., Bitcoin) or are developed for private blockchains. Lisk wants to combine these to create the best solution: maintain security with side-chain flexibility. Developers can create their own blockchain – which will function as a sidechain, while Lisk maintains the mainchain – which is secured by 101 delegates. As such, were a side chain to go down, the network and the main chain would not be affected.

How is Lisk Different?

Lisk seeks to make blockchain tech more accessible to developers. To this end, they’ve created a set of blockchain developing tools based on JavaScript. The platform wants to achieve a high-level user experience and offer unprecedented developer support.

Lisk’s SDK comprises three core parts:

  • Consensus Algorithm – which is Delegated Proof of Stake (DPoS)
  • Sidechain – which lets developers create independent blockchains linked to the main chain
  • Back-end – a fully customizable code that allows developers to create decentralized applications autonomously
  • Front-end – friendly user interface (UI) where the public can interact with the chains

By bringing together the capacity of the main chain with open-source blockchain development kits, developers have the free rein to create exciting, convenient, and accessible digital apps. They can then make the apps available as a package in a decentralized app repository. The LSK token is used to power transactions and services on the Lisk blockchain.

Delegated Proof of Stake 

Lisk uses a delegated proof of stake mechanism that works as follows. Anyone can become a delegate by registering an account on the network. With this account, you can easily collect votes from any LSK holder. 1 LSK token is equal to 1 vote, and an LSK holder can vote with their current LSK holdings.

The 101 delegates with the most votes get to add new blocks on a blockchain and, by so doing, secure the network. These delegates are said to be on an “active” mode. The rest of the delegates are on “standby.” Also, the order of the active and the standby delegates is constantly changing.

The Lisk Team 

Lisk is led by a vibrant team led by Max Kordek and Oliver Beddows. Kordek is President/CEO and co-founder. He has been an avid follower of blockchain,  and he gathered a lot of insights on the technology for years before creating Lisk. He’s also an ardent fan of science fiction.

Beddows is Vice President/CTO and Founder. He has 12 years of development experience under his belt, and he believes blockchain is a powerful tech that can change the world for the better.

What’s the Market Look Like for LSK? 

As of June 4, 2020, Lisk is trading at $1.25, while ranking at #51 in market capitalization. It has a market cap of $154, 891, 635,  a 24-hour volume of $5, 295, 614, a circulating supply of 123, 957, 448, and a total supply of 140, 012, 060. LSK’s all-time high was $39.31 (Jan 7, 2018), and its all-time low was $0.095652 (Mar 02, 2017).

Where to Buy and Store LSK 

You can find Lisk in a variety of exchanges, including Binance, Poloniex, Bittrex, HitBTC, Coinswitch, Kraken, Cointree, KuCoin, YoBitNet and Huobi. For the majority of the exchanges, you’ll need to first purchase BTC or ETH and then exchange it for Lisk.

Lisk has a Wallet available for both desktop and mobile. The desktop version allows you to vote for delegates as well as monitor the Lisk blockchain: inspect delegates, monitor transactions and blocks, and so on. Lisk also recommends these third-party wallets: Trezor One, Trezor Model T, Ledger Nano S, and Ledger Nano X.

Final Words

Lisk is a blockchain project that’s actualizing the Bitcoin dream – taking power from centralized systems and handing it back to the people. For too long, talented and hard-working developers have had to cede to corporate machines, which take the lion’s share of the revenue from their hard work.

Lisk is about to change this by creating a decentralized platform where developers can utilize a set of powerful tools to create decentralized apps and take back their earning power. Also, its use of JavaScript will help it cultivate a user base of millions of already trained developers, and has the potential to thrust it to the forefront of the blockchain space. It’s certainly one to watch.

Categories
Crypto Daily Topic

Coinbase in a Deal to Sell Crypto Surveillance Tools to US Feds

Coinbase, the largest cryptocurrency exchange in the US, has offered to procure Coinbase Analytics, its analytics platform, to US agencies, including the Internal Revenue Service (IRS) and the Drug Enforcement Administration (DEA). The Block broke the story on June 5th. 

Coinbase, the largest cryptocurrency exchange in the US, has offered to procure Coinbase Analytics, its analytics platform, to US agencies, including the Internal Revenue Service (IRS) and the Drug Enforcement Administration (DEA). The Block broke the story on June 5th. 

Coinbase, the largest cryptocurrency exchange in the US, has offered to procure Coinbase Analytics, its analytics platform, to US agencies, including the Internal Revenue Service (IRS) and the Drug Enforcement Administration (DEA). The Block broke the story on June 5th. 

Records seen by the publication indicate the DEA and the IRS have entered into licensing agreements with Coinbase for an analytics tool called Coinbase Analytics. Documents relating to the deal were publicly published in April and May for the IRS and the DEA, respectively.

Coinbase Analytics is closely tied to the company’s entire ecosystem. According to a publicly available job posting, the Senior Product Manager for Coinbase Analytics “collaborates” with the “Coinbase Consumer, Coinbase Pro, and Coinbase Custody” plus Coinbase’s payments and cryptocurrency division. 

However, Coinbase has denied any relationship between Coinbase Analytics and its internal customer records. In an email to CoinDesk, a spokesperson for the exchange wrote:” Coinbase Analytics data is fully sourced from online publicly-available data, and does not include any personally identifiable information for anyone, regardless of whether or not they use Coinbase.” 

Coinbase and Neutrino

Worth noting is the IRS announcement that mentions the connection between Coinbase Analytics and Neutrino, an intelligence company controversially acquired by Coinbase in 2019. The purchase evoked controversy because Neutrino’s founders were linked to an Italian spyware entity known as the Hacking Team. 

The IRS document notes: “As law enforcement techniques evolve and other cryptocurrencies gain acceptance, criminals are using other types of cryptocurrencies, not just Bitcoin, to facilitate their crimes. In addition to the Bitcoin Blockchain, Coinbase Analytics (fka Neutrino) allows for the analysis and tracking of cryptocurrency flows across multiple blockchains that criminals are currently using. Coinbase Analytics also provides some enhanced law enforcement sensitive capabilities that are not currently found in other tools on the market. This action will result in a Firm Fix Priced purchase order, Period of Performance: One base year from date of award with one 12-month option.”

Public records show that Coinbase is yet to be granted the awards, neither does the company appear in USASpending.gov, a government directory for contract awards.

Coinbase confirmed to The Block that it indeed developed the product with the assistance of Neutrino. It added that it’s willing to offer Analytics to financial and regulatory agencies and that the tool can also be used for internal investigations. “It’s an important tool to meet our regulatory requirements and protect our customers’ funds,” said the company.

DEA’s interest in this technology seems to be informed by Coinbase Analytics’s high-level accuracy. The federal organization states that the tool has “some of the most conservative heuristics used in commercial blockchain tracing tools,” a “critical” component that can avoid false positives.

Backlash From the Crypto Community

The backlash from the crypto community and the exchange’s users was swift. Indeed, users are walking away in droves and looking for alternatives. Data from Glassnode indicates that the walkout was further compounded by recent outages on Coinbase during Bitcoin’s spike. Users on the platform withdrew 22, 000 more Bitcoin than they deposited two days earlier before the Coinbase Analytics story broke.

Crypto Twitter Chimes In

Crypto Twitter is weighing heavily on the matter. Influential crypto trader Matt Odell scathingly tweeted, “if you use Coinbase, you should delete your account.” Odell’s sentiments were echoed by many others who expressed concern on whether exchange could be trusted to keep user data private. 

Another crypto entrepreneur Josh Rager conducted a Twitter poll of 5,000 people that revealed  2/3 of Coinbase users were willing to ditch the exchange. Amplifying the thoughts and feelings of many, Rager opined that “Millions of dollars seem to be leaving Coinbase as we speak. Investors and traders are no longer limited to Coinbase or  Bitmex. If you screw over customers, take part in shady deals, or don’t improve the product, customers can now go elsewhere to trade/invest.”

Jameson Loop, another notable crypto personality, expressed his displeasure, saying: “This is no surprise, our distrust in you is strengthened, we will make your analytics software obsolete.” 

Many users chimed in to decry the decision, adding queen bees uses to delete the exchange. The hashtag #DeleteCoinbase was appearing on the top 10 Twitter trends. 

Categories
Cryptocurrencies

What is Theta All About? 

Current video sharing platforms face a ton of issues, ranging from downtimes to high-maintenance costs to a poor reach in less developed countries. There is also the issue of centralization, meaning they are owned, controlled, and regulated by their owners. This means only ‘agreeable’ content, by their (owners) standards, is allowed.

Current video sharing platforms face a ton of issues, ranging from downtimes to high-maintenance costs to a poor reach in less developed countries. There is also the issue of centralization, meaning they are owned, controlled, and regulated by their owners. This means only ‘agreeable’ content, by their (owners) standards, is allowed.

Current video sharing platforms face a ton of issues, ranging from downtimes to high-maintenance costs to a poor reach in less developed countries. There is also the issue of centralization, meaning they are owned, controlled, and regulated by their owners. This means only ‘agreeable’ content, by their (owners) standards, is allowed.

Blockchain was invented to democratize and decentralize finance. But we don’t have to stop there. We can tap into the power of blockchain to achieve decentralization in other areas of society.

Theta is a blockchain and cryptocurrency project that seeks to provide a blockchain-powered video sharing experience. The token has been making headlines lately, with its raging rally of nearly 1300% since the crypto market’s downturn in mid-March precipitated by the Corona pandemic. Its inking of partnerships with big-time companies such as Android TV, Samsung, and Google is making the news.

What is Theta all about? This piece dives into that question, and more.

What is Theta?

Theta is a blockchain-powered platform that supports decentralized video streaming and delivery.  It aims to solve issues in current video sharing networks such as poor rich to developing countries, high costs of setting up, maintenance and bandwidth, and centralization.

These factors mean that video-sharing platforms lose out on revenue and that content can be censored. Furthermore, the current infrastructure is mostly unprepared for the changes that will be occasioned by upcoming developments such as 4K, 8K, 360° virtual reality streaming, and others such as light field technology.

The platform aims to solve these issues with the transformative blockchain. The tech will incentivize users through the Theta token, while also enabling a high-performance environment.

In Theta’s words, the company’s mission is to “leverage blockchain technology to create the first Decentralized Video Streaming and Delivery Network whereby video viewers are incentivized to share redundant computing and bandwidth resources to address today’s video streaming challenges.”

Who is Behind Theta?

Theta is the brainchild of Mitch Liu and Jieyi Long. Liu is the co-founder of Gameview Studios and a co-founder of Tapjoy. He holds a degree in Computer Science and Engineering from MIT and an MBA from Stanford. Long has a degree in Microelectronics from Peking University as well as a PhD in Computer Engineering from Northwestern University. He’s also the patent owner of various technologies in virtual reality and video game replays.

There is also a long list of engineers and architects, as well as advisors such as YouTube co-founder Steven Chen. Theta has also partnered with former members of media companies such as Twitch, Verizon Plays.tv, and others. Other partners at various stages include Samsung VR and NBN, one of the biggest media companies in Korea.

How Does Theta Work?

We will explore various functionalities of Theta and how it achieves its mission.

#1. Caching Nodes

The current content delivery networks comprise huge data centers in various parts of the globe. Due to their vast geographical distances from viewers, data streaming is often low quality. Theta proposes to solve this by creating a peer-to-peer network of users who share their network bandwidth. The end goal is to have a global network that can supplant or supplement existing content delivery networks.

This will be achieved by users from across the globe, lending their devices as “caching nodes.” The caching nodes will then form a robust mesh network that will be capable of delivering quality video streams to viewers across the globe. The network will reward caching nodes with Theta tokens, incentivizing users to continue contributing their spare bandwidth resources –  and thus strengthening the Theta network.

According to Theta, this will not just improve video reach and quality, but massively reduce costs. And this will be made possible by the eliminated need to maintain the current enormous data centers.

#2. Improved Resilience

Theta is also set to enhance the resilience of the whole infrastructure. As of now, the video streaming industry relies on a few data centers scattered across the globe. This is risky since if some of them were to go down for any reason, global streaming would be adversely affected. By distributing (and decentralizing) the caching and relay points to thousands of nodes, the Theta network can realize a sturdier network far more than the current systems can support.

#3. Quality Variance

Two problems present with the caching nodes. One is the difference in the quality of different nodes. The other is the possibility of nodes dropping off. To counter these problems, Theta has built a mechanism that will allow nodes to identify the geographically closest nodes to them, allowing them to connect with their nearest peers rather than random nodes situated in any corner of the world. This enables nodes to pull streams in a more consistent fashion.

What is Theta Token? 

The Theta network incentivizes viewers with Theta tokens to share their computing and bandwidth resources. Caching nodes are rewarded with tokens for relaying video streams to other network users. This, in effect, also increases streaming market efficiency by streamlining the delivery process.

Video publishers/advertisers can also directly reach viewers at a much-reduced cost, while viewers earn tokens for watching/interacting with content. Also, streaming platforms can realize new avenues for content sharing and revenue-generating with Theta. Below is a more detailed Theta token structure.

  • Caching nodes rewarded with tokens for streaming videos to other users
  • Caching nodes rewarded for engaging with content and in turn gifting (optionally) their favorite content creators
  • Streaming sites can leverage new content sharing avenues and engage better with users.
  • Advertisers funding campaigns with tokens
  • Streaming platforms can save up to 80% of content network costs.

What is Theta’s Consensus Mechanism? 

Theta utilizes a ‘Multi-level BFT’ consensus mechanism that allows thousands of nodes to take part in the consensus process. At the same time, the mechanism supports throughput of 1000+ transactions per second (TPS).

This mechanism utilizes a small set of nodes that acts as the ‘validator committee.’ This validator committee can produce new blocks super fast. Just 10 to 20 validators can do this – while still maintaining a high degree of difficulty to cushion against attacks on the blockchain. Then the rest of the network participants, also called ‘guardians,’ can finalize the process initiated by the validators. Finalization here refers to convincing each honest guardian that more than two-thirds of the guardians see the same chain of blocks.

Tokenomics of Theta

As of May 30, 2020, Theta traded at $0. 298066, while ranking at #35 in the crypto market. It has a market cap of $259, 466, 860, with a 24-hour volume of $66, 056, 366. Its circulating supply is 870, 502, 690, with a total supply of 1 billion. Its all-time high was $0. 555652 (May 27, 2020) while its all-time low was $0. 039771, (March 13, 2020).

Where to Buy and Store Theta Token

You can purchase Theta from any of several popular exchanges such as Coinbit, Bithumb, Upbit, Binance, Huobi, DigiFinex, Bkex, Biki, OKex, Hotbit, Gate.io, and WazirX. Coinbase, a popular exchange, does not yet support Theta. In the majority of the exchanges, Theta is available as a trading pair with Bitcoin, Ethereum, USDT, Binance Coin, and so on.

Likewise, you can store Theta tokens at any of trusted wallets such as Ledger, Trezor, Keep Key, MyEtherWallet, Exodus, and Coinomi.

Final Words

Theta provides incredible solutions to the current issues faced by video delivery networks. Its peer-to-peer mesh network, incentivized and powered by the blockchain, is certainly exciting and with a lot of potential. The only challenge for Theta is to maintain the quality of the platform as well as the decentralized nature of the network. Fans and network users will be relying on this.

Categories
Cryptocurrencies

What is Ontology?

After blockchain’s introduction to the world, the tech space was quick to notice how technology could be used for a lot more than cryptocurrency. Blockchain is a technology that is distributed, transparent (hence automating trust), uses cryptography to achieve high-level security, and supports immutable records. With these groundbreaking features, it would be crazy for the technology not to be tapped to streamline and optimize functions in industries.

After blockchain’s introduction to the world, the tech space was quick to notice how technology could be used for a lot more than cryptocurrency. Blockchain is a technology that is distributed, transparent (hence automating trust), uses cryptography to achieve high-level security, and supports immutable records. With these groundbreaking features, it would be crazy for the technology not to be tapped to streamline and optimize functions in industries.

After blockchain’s introduction to the world, the tech space was quick to notice how technology could be used for a lot more than cryptocurrency. Blockchain is a technology that is distributed, transparent (hence automating trust), uses cryptography to achieve high-level security, and supports immutable records. With these groundbreaking features, it would be crazy for the technology not to be tapped to streamline and optimize functions in industries.

The problem is, there have been a few barriers preventing this realization. One is the complex nature of blockchain. The other is, blockchain is not cheap. If an organization were to integrate blockchain into their infrastructure, they would either a.) build a blockchain solution from the ground up or b.) utilize the services of an established blockchain service.

Option A is incredibly costly since you’d have to dedicate enormous time and financial resources. Option B, however, would be more convenient and resource-saving.

Ontology is an organization that aims to provide enterprises with affordable and customized blockchain solutions. It also seeks to change the old way of giving and receiving trust – through blockchain.

What is Ontology?

Ontology is a Chinese blockchain-based company launched in 2017. The project’s founders envisioned an open platform that provides blockchain solutions to businesses across multiple industries in a collaborative and trustless environment. It will hopefully be a start in breaking down barriers between blockchain and businesses.

The Ontology platform is forward-thinking in the sense that it allows businesses without prior interaction with blockchain to utilize the technology. The blockchain concept can be complicated, and there is currently no easy way for businesses to incorporate the tech. Additionally, legacy trust networks have several inefficiencies, such as poor data security, untapped data assets, monopolization of data, and poor identity management. All these create avenues for blockchain to provide trustless, consensus-based, and fraud-proof solutions.

Via Ontology’s tools, organizations from anywhere can create collaborative trust mechanisms and customize them according to their specific needs. And all this without going through an expensive and time-consuming learning curve.

In Ontology’s words: “Ontology is a blockchain/distributed ledger network which combines a distributed identity system, distributed data exchange, distributed data collaboration, distributed procedure protocols, distributed communities, distributed attestation, and various industry-specific modules. Together this builds the infrastructure for a peer-to-peer trust network, which is cross-chain, cross-system, cross-industry, cross-application, and cross-device.” (source coincentral.com)

What’s the Deal with Ontology and Neo?

The Ontology project is so closely associated with Neo that it’s so easy to conflate the two. And understandably so, since it was created by June Li, under a company known as OnChain, which is headed by Da Hongfei, who is also the creator of Neo.

During Ontology’s launch, Hongfei said this about the two projects: “Ontology and Neo will build a broad ecosystem using blockchain and other new technologies to serve the real economy.” But Hongfei wants you to know that NEO and OnChain are two very separate entities and neither owns the other.

In a YouTube video, Hongfei clarified as follows: “First, I need to clarify that NEO and OnChain are separate entities, so OnChain doesn’t own NEO, or NEO, OnChain. They are separately funded – NEO is funded by the community, and OnChain is funded by a very famous financial group in China, Fosun… So they are separate. Second, OnChain benefits from the NEO ecosystem. The product, called DNA (Distributed Networks Architecture), is very similar to NEO, but it is written in the Go language. OnChain is helping other blockchains and financial institutions to build the blockchains with DNA. It’s basically very similar to NEO, and in the future, with NEOx (the cross-chain protocol), everything can be linked together.”

Ontology’s Trust Framework

The Ontology blockchain offers four service layers:

  1. An application for end-users
  2. A trusted data transmission solution for optimizing data distribution
  3. A layer for streamlining the industrial chain and building a healthy ecosystem that thrives on collaboration rather than competition
  4. A legally compliant arbitration system

The trust framework relies on these core elements:

  • A trust system featuring decentralized supervision, a distributed collaboration, and a centralized “strong trust anchor.”
  • The Ontology decentralized identification (ONT ID)  that connects people, assets, things, data, affairs, and services.
  • A blockchain-based framework that caters to different businesses security needs while balancing features and performance

Ontology’s Tokens

Ontology utilizes a dual token model. One token – ONT is used for staking in consensus while ONG gives users the right to use the network. ONG is issued periodically.

20 million ONT was distributed to NEO holders in March 2018, after initial distribution of 1000 ONT tokens to people who had signed up to their newsletter. Here’s a more detailed breakdown of the token’s distribution:

  • 12 went to Ontology’s early supporters
  • 28% went to project partners
  • 10% went to the NEO council
  • 25% was reserved for future development of the Ontology ecosystem
  • 10% went to the project’s technical community
  • 15% was awarded to the Ontology core team

Tokenomics of Ontology

As of May 30, 2020, ONT was trading at $0. 521271 at position #29 in the overall crypto market, with a total market capitalization of $361, 890, 441, and a 24-hour volume of $74, 832, 588. It has a circulating supply of 694, 246, 573, while its total supply is 1, 000, 000, 000. ONT’s all-time high was $10.00 (May 03, 2018), while it’s all-time low was $0. 224974, (March 13, 2020).

Where to Buy and Store ONT 

You can get ONT from any of several reputable exchanges, including Coinswitch, CEX.io, Cointree, Changelly, KuCoin, Binance, gate.io, Huobi, and Binance.

Once you purchase your tokens, it’s highly recommended that you do not store them in the exchange – as exchanges are highly prone to hacks. Instead, store them in a secure wallet. Options such as Ledger, Trezor, Atomic Wallet, Coinomi, and Guarda Wallet are some of the best choices.

Final Words

Ontology is changing the way we gain trust by automating the process through blockchain. Working together with NEO, the company is hoping to bridge the chasm between blockchain and the business sector.

The team behind Ontology is reputable in the blockchain space with a history of success, and it’s set to steer the project to great heights. Businesses can leverage the Ontology product and achieve streamlined, more effective, and trustless processes.

Categories
Cryptocurrencies

Electroneum – “The World’s First Common Cryptocurrency”

Some of the buzz around cryptocurrency is for it being a currency that wrests back the power of money from governments and centralized bodies and hands it back to the people. But it’s not as simple as it sounds.

Some of the buzz around cryptocurrency is for it being a currency that wrests back the power of money from governments and centralized bodies and hands it back to the people. But it’s not as simple as it sounds.

Some of the buzz around cryptocurrency is for it being a currency that wrests back the power of money from governments and centralized bodies and hands it back to the people. But it’s not as simple as it sounds.

Satoshi Nakamoto, the creator of Bitcoin, intended for anybody to be able to mine bitcoin from the comfort of their computer. But as the crypto increased in popularity and thousands more flooded the scene, it became harder to do so.

Electroneum is a crypto and blockchain project that hopes to revive the original dream of cryptocurrency – making the revolutionary power of blockchain accessible to anyone anywhere. As long as you have a smartphone and internet connectivity, you can start mining Electroneum coins right in your phone.

This has not gone unnoticed by the “founding father of blockchain” – Scott Stornetta – the most quoted person in Satoshi’s Bitcoin whitepaper. He has described the project as having “a long-term goal that is more than profit-maximizing, but that is actually a collective better” while praising it for being a real solution to “people that have yet to experience the benefits of cryptocurrency.”

This article is an in-depth exploration of this groundbreaking cryptocurrency.

What is Electroneum?

Electroneum is a mobile-oriented cryptocurrency designed for mass adoption, and one of the few to emerge out of the UK. The Electroneum team believes cryptocurrency is a great idea, but the actual acquiring of it is incredibly hard. As such, they want to enable cryptocurrency to be accessible to the average person with as little hassle as possible.

A lot of people want to possess cryptocurrency, but they are not exactly ecstatic about surrendering their personal information to some random websites they know next to nothing about. There’s also the issue of having to link to the bank account and having to shell out extremely high fees for transactions. In short, Electroneum wants to break down the barriers that countless people encounter while trying to access cryptocurrency.

In its words: “Current cryptocurrencies are new (relatively!) and exciting but beyond the reach of your everyday person. To access cryptocurrencies, you have to make or buy a GPU mining rig or send copies of your passport and personal documents to a website that you have probably never heard of. Electroneum has all the great security and anonymity of leading crypto coins, but it’s controlled by a free, easy to install, app, which gives instant access to Electroneum with no card details or ID.”

History of Electroneum

Electroneum was conceived by Richard Ells, whose interest in cryptocurrency started in 2015 while he was building  GPU mining rigs. While Bitcoin was not even yet profitable, Ells knew that the underlying technology was transformative, and he wanted to make it easy for more people to benefit from it.

In August 2015, he enlisted members of his Retortal company to start working on a  cryptocurrency. In July 2017, Ells raised the necessary initial capital to launch the cryptocurrency. These efforts led to the creation of Electroneum Ltd in July 2017. In September 2017, Electroneum conducted an ICO – which drew in 115k+ investors. In the end, the sale raised $40 million worth of Bitcoin and Ethereum.

How Does Electroneum Work?

Private Transactions

Electroneum (ETN) is built off the code for Monero, a privacy-oriented cryptocurrency. Like Monero, Electroneum also has privacy features. One of the criticisms with Bitcoin is its totally transparent transactions whose public addresses can be used to track down the real-life identity of a transacting party. Electroneum solves this with the use of stealth addresses and a one-time public key that prevents any connection between the funds and the wallet.

As well, a one-time private key is created once funds are detected and received by the wallet. The use of stealth addresses means that only the recipient can spend the funds with the single-use private spent key.

Mobile App

The use of a mobile app to get more people to use the currency is one of Electroneum’s biggest differentiator from other cryptocurrencies. The app is currently available for Android and iOS. The app allows you to have access to a wallet where you can store as well as be able to send and receive coins. As a further security measure, you also have the option to generate a paper wallet. At the time of writing, the app has been downloaded 2, 555, 518 times, according to Electroneum’s website.

Mobile Mining

Through the app, users can also generate new Electroneum coins. Once you install the app, it will allow your phone to start simulated mining. And this will happen without your phone overheating or gobbling up huge amounts of data. It also won’t make your phone lose significant battery life. Though the mining will not add new blocks on the blockchain, you’ll still be up for mining rewards for contributing to the computing power of the network.

Online Gaming

Another of Electroneum’s goals is to replace in-game currencies, such as Linden Dollars for the Second Game, Project Entropia Dollars for Entropia Universe, or WoW gold for the World of Warcraft, with ETN.

This would change the gaming landscape in several good ways. For instance, players would have an even better reason to play, thanks to the ability to actually cash out on their completed quests and sold items. Gaming platforms could also gain from the transactions that are taking place in its ecosystem. Also, for gaming companies, using ETN as the in-game currency would be a marketing tool on its own.

Gambling

Again, the Electroneum team hopes to promote the adoption of ETN in gambling. While many sites are accepting Bitcoin and other cryptos, it’s still a complicated and time-consuming process to obtain it. In the majority of countries where gambling takes place, local exchanges charge exorbitant fees. Electroneum wants to make it easy for players and gambling platforms to interact with cryptocurrency in a more frictionless fashion.

The Electroneum Team

The Electroneum team is led by founder and CEO Richard Ells. Else is the founder of two other successful digital companies; SiteWizard and Retortal.

Nick Cook is the head of operations. Cook has more than 20 years working for automobile companies such as Aston Martin, Bentley, and Land Rover.

Barry Last is the head of tech development. He has 15 years of experience as a solutions architect.

The team has also onboarded David Bull, CEO of UNICEF UK. Bull has 32 years in the charity sector. Bull’s experience is fitting with Electroneum’s mission to bring cryptocurrency to the people.

Coin Supply

During the ICO, 4.4 billion of ETN went to investors. Another 20 million went to individuals who shared news about the ICO and explained things to the crypto community. A further 20 million went to the project’s core team. Currently, the coin has a circulating supply of 10 billion out of the maximum supply of 21 billion.

The supply of 21 billion coins was done for psychological reasons. The team figured that it would be more satisfying for users to generate full coins as opposed to decimal points associated with other cryptos such as Bitcoin.

Tokenomics of ETN

As of May 30, 2020, ETN traded at $0.009053, while ranking at #67 and with a market cap of $91, 587, 678. The coin has a 24-hour volume of $1, 015, 774, a circulating supply of 10, 116, 967, 882, a total supply of the same value, and a maximum supply of 21, 000, 000, 000. ETN’s all-time high was $.0 236234 (Nov 02,  2017) while it’s all-time low was 0.001428 (March 13, 2020).

Where to Buy and Store Electroneum

If mining the coin is not exactly your speed, you can grab it from an exchange. Some of the popular exchanges offering ETN include TraderONE, KuCoin, Liquid, Coin Bene, Biki, Huobi, SistemKoin, HitBtc, bitbns, Coin Deal, Trade Ogre, Simple Swap, and more.

For storage, Electroneum strongly recommends keeping your ETN in its app wallet or its generatable paper wallet. At this time, the crypto is most compatible with user favorites Trezor and Ledger.

Final Words

Electroneum is a bold leap towards mass accessibility of cryptocurrencies. It’s truly a way for more people to access, interact, and benefit from the technology – and all in a safe and hassle-free way. People who are fans of blockchain and crypto but feel it’s too complicated or not for them can start seeing it in a better way. Electroneum is an exciting and promising project and one that the crypto community will be watching closely.

Categories
Crypto Daily Topic

How Blockchain is Writing a New Era for Accounting and Auditing Industry

Blockchain is best known as the underlying technology that supports cryptocurrencies. Bitcoin, in particular, is credited as the first cryptocurrency to bring blockchain into the mainstream. But supporting cryptocurrencies is just the tip of the iceberg when it comes to the potential of this disruptive technology.

Blockchain is best known as the underlying technology that supports cryptocurrencies. Bitcoin, in particular, is credited as the first cryptocurrency to bring blockchain into the mainstream. But supporting cryptocurrencies is just the tip of the iceberg when it comes to the potential of this disruptive technology.

Blockchain is best known as the underlying technology that supports cryptocurrencies. Bitcoin, in particular, is credited as the first cryptocurrency to bring blockchain into the mainstream. But supporting cryptocurrencies is just the tip of the iceberg when it comes to the potential of this disruptive technology.

By definition, blockchain technology is an incorruptible distributed ledger that offers a new way of recording, storing, and sharing data. As such, claiming that this technology seamlessly aligns itself with accountancy wouldn’t be much of a stretch.

However, its entry into accounting raises both excitement and concern for the industry’s players. On the one hand, blockchain is set to improve accounting efficiency. On the other hand, accountants and auditors fear that technology might force them to seek new lines of work.

But one thing is certain, blockchain is a game-changer that cannot be ignored, particularly by the accounting industry. This explains why the Big Four accounting firms, KPMG, PriceWaterhouseCoopers, Deloitte, and Ernst and Young, are working towards incorporating blockchain into their operations.

The Current State of Accounting And Blockchain’s Potential 

Much of the accounting work is paper-based. Auditors use these paper trails when reviewing records to ensure data integrity. This method of record-keeping is highly flawed, given the sheer amount of paperwork involved and the time and money resources that go into maintaining these records.

Modern accounting solutions, particularly cloud-based software, are now being employed to help organizations save money and time by introducing efficiency in record keeping. However, these solutions are much like centralized databases, and this renders them vulnerable to cybersecurity threats. Also, being a double-entry system, only the organization and the in-house accountants have direct access to the centralized ledger. This means that regulators and independent public auditors have to request for access to the database, which eventually slows down compliance processes.

Now enters the blockchain, a decentralized ledger system that employs a triple-entry record keeping model. Unlike conventional accounting, blockchain allows accountants to record, retrieve, and avail data to authorized third-parties. The clients, auditors, as well as regulators, will each possess private and public keys to verify their access. With these fundamental properties, blockchain promises the following advantages for accounting firms and auditors;

I) Reduced Fraud 

Data recorded on the blockchain network is said to be immutable, meaning it can’t be corrupted. Once the data is in the chain, smart contracts can be employed to automate accounting functions, reducing the likelihood of human errors.

II) Eases Auditing 

Usually, auditors have to regularly review records to ensure the validity of the data. Depending on the size of the organization and the data, the auditing process can take several days resulting in a company’s downtime.

Using smart contracts, the auditing procedure can be automated, reducing the time an auditor spends verifying records. In fact, auditing and reporting will be done in real-time, unburdening the auditors and CFOs to concentrate on other important administrative operations.

III) Reduces Costs 

Thanks to smart contracts, most of the accounting and auditing processes will be automated. This translates to increased efficiency, saving institutions time and money spent on traditional accounting systems. Also, with cryptographic-hash-based security, organizations will spend less on maintaining the cybersecurity of their cloud-based infrastructure.

V) Improved Regulatory Compliance 

Blockchain solutions for the accounting industry introduce a new concept of triple data entry, whereby the authorized third-parties can access the data. In this case, organizations will be able to share their Know Your Customer (KYC) data with the authorities in regard to the regulations on the same. Additionally, as more blockchain technologies mature, the use of distributed ledger systems might become mandatory in certain financial sectors.

Will Bitcoin Replace Accountants and Auditors? 

Unlike other professionals in other industries, accountants and auditors are pessimistic about the entry of blockchain in the financial sector. Their fear is that this revolutionary technology will replace them in their workplaces, forcing them to seek other lines of work. Luckily, it’s almost impossible to replace human accountants and auditors.

While blockchain will undoubtedly disrupt the financial sector, the role of professional accountants will remain intact as they need to interpret and categorize the data on the blockchain. Most importantly, their expertise will be highly sought after when integrating blockchain into the current accounting infrastructure. Auditors, as well, will still be needed to oversee transactions and track income and outflows.

Although their roles won’t change, there is a need for both accountants and auditors to learn as much as they can about blockchain technology since it’s set to become the standard tool of their everyday job. This way, they position themselves as forward thinkers in the face of a game-changing technology. As a matter of fact, a recent report showed that several universities are now offering blockchain courses to meet the high demand for engineers fluent in this technology. So, it’s not a leap to speculate that future auditors and accountants will basically be blockchain experts trained to identify and report ways in which blockchain can be used in record keeping.

Currently, the biggest challenge hindering the use of blockchain in the accounting industry is that there are few readily available blockchain solutions as yet. This explains why the industry is taking too long to embrace the technology despite the benefits that come with it. Hopefully, this problem will end soon as innovators and investors move in to support this emerging technology. But first, there needs to be preparation procedures to build awareness of what blockchain is all about, and how the technology is evolving.

Takeaway: Embrace and Win 

As various industries continue to warm up to blockchain technology, one thing becomes clear – blockchain isn’t going to disappear any time soon. As it’s application increases, it becomes necessary for industry stakeholders to stay abreast of developments of the technology. Besides, it is common for early adopters of any new technology to benefit more than those who embrace the technology much later.

In this case, organizations and businesses that will deploy blockchain accounting solutions early enough will gain a competitive advantage, which will be manifested in improved customers’ experience. The late adopters will eventually be forced to join the bandwagon lest they risk going out of business.

Categories
Cryptocurrencies

What is Aelf (ELF) And How Is It Solving Blockchain Scalability Challenge?

Blockchain technology has been around for more than ten years now. It has powered thousands of cryptocurrencies, which have grown into a force to be reckoned with. Today, industries are scrambling for a share of this revolutionary network premised on a belief that blockchain can effect faster, trustless, and fraud-free processes. 

AELF Logo | Forex Academy

Blockchain technology has been around for more than ten years now. It has powered thousands of cryptocurrencies, which have grown into a force to be reckoned with. Today, industries are scrambling for a share of this revolutionary network premised on a belief that blockchain can effect faster, trustless, and fraud-free processes. 

Blockchain technology has been around for more than ten years now. It has powered thousands of cryptocurrencies, which have grown into a force to be reckoned with. Today, industries are scrambling for a share of this revolutionary network premised on a belief that blockchain can effect faster, trustless, and fraud-free processes. 

The integration of blockchain into the business sector has, however, proven an uphill battle. This is due to the issue of scalability that’s inherent in the current iteration of blockchain. 

Take the example of Ethereum and Bitcoin that handle an average of 15 and 7 transactions per second, respectively. Such a scale doesn’t even begin to scratch the surface of the scalability/speed needed for the business world. The other two significant problems with the tech are the possibility for interference while executing smart contracts and the lack of clear protocols for onboarding new technology/updates (due the highly contentious Bitcoin and Bitcoin Cash’s hard forks). 

So where do we go from here? Blockchain is a revolutionary tech that could fundamentally change how we do a lot of things. For industries, it could help optimize processes at an unprecedented level. There needs to be a way to bridge the gap between the tech and the enterprise space. 

Aelf is a project that proposes to help accomplish this. This guide is an exploration of that promise, plus an in-depth look into how it works and everything in between. But first, we look at what Aelf entails.

What is Aelf? 

Initially launched as a testnet in August 2018, Aelf is a blockchain-based, customizable platform operating system (OS) intended to serve as the central hub for blockchains. The Aelf team designed the platform to act as the “Linux system” of blockchains. Since the introduction of Bitcoin, blockchain technology has evolved in profound ways. 

Bitcoin made the concept of a decentralized and peer-to-peer currency mainstream and disrupted the finance industry forever. Then came Ethereum, which expanded on that idea with the introduction of ‘smart contracts’ and ‘decentralized applications (DApps), unleashing the potential of blockchain beyond internet money. Dozens of industries are now experimenting with blockchain and looking to optimize their processes. 

But there remains a chasm between blockchain and the business world that is not easy to bridge. The Aelf team believes that the next face of blockchain should be an integration of these two worlds. For that to happen, however, there has to be an operating system designed for blockchains that will allow them to meet commercial needs. And for that to happen, blockchain needs to deal with three main challenges: 

  • The scalability challenge – the current blockchains are not equipped to handle enterprise-level transactions.
  • Lack of resources segregation – the current blockchains do not segregate resources for various smart contracts, resulting in interference in their execution.
  • Lack of a predefined consensus protocol allowing for the smooth integration of updates or the adoption of new technology

Aelf proposes to solve these problems.

The Aelf Team

Aelf is the brainchild of Ma Haobo, who is also the founder/CEO of blockchain as a service company Hoopox, and the CTO of GemPay and AllCoin. Founder and CEO of TechCrunch with Michael Arrington and FGB Capital Zhou Shouji, serving as advisors. 

It’s worth noting the venture capital support that the project received. Companies like Draper Dragon, Bitmain, Huobi Global, DHVC, Blockchain Ventures, Chain Funder, FGB Capital, and other notable investment firms participated in the ICO. Indeed, the project proved so popular that they had to turn down interested investors after hitting their 55, 000 goal just two weeks after the sale began. This testifies to the potential of Aelf.

How Does Aelf Work?

To address the three problems we previously mentioned, Aelf employs two major innovations: 

  • Sidechains
  • A unique governance system

The platform utilizes sidechain technology to segregate resources among various smart contracts, and a Delegated proof-of-stake consensus algorithm to achieve a more dynamic system of governance. 

Side Chains

Aelf features one main chain and a multitude of side chains to handle various commercial tasks. The main chain is responsible for distributing different tasks to the multilayer side chains, improving efficiency. Sidechains communicate with the main chain via a ‘sidechain index system.’ The index system categorizes the chains as follows: 

  • External blockchain systems to expand the boundary of Aelf, such as Bitcoin and Ethereum 
  • Internal side chains on the Aelf ecosystem, which contribute economically to it using the ELF token

The side chains can branch off further into subchains. Dividing the ecosystem into side chains ensures that downtime or failure in one part does not affect the entire network.

Aelf’s Token Ecosystem

The Aelf token (ELF) incentivizes honest behavior within the ecosystem. All side chains accept ELF as a store of value and as a means of transferring value. Hence, the token can be transferred across any chain that recognizes it is as such. When a side chain receives transaction fees, it has to give a fraction of this revenue to the miners on the main chain.

If the main chain finds that indexing a side chain is not economically favorable, it (main chain) is entitled to terminate the indexing or allow two side chains to offer the same services to compete. Sidechains can also charge fees to their sub-chains. 

What is the Aelf Consensus Protocol?

The running and maintenance of Aelf are more complicated than that of Bitcoin and Ethereum blockchains because Aelf’s involves recording information from various side chains on the main chain. Plus, miners must update information from all the parallel side chains. As such, proof-of-work and basic proof-of-stake consensus algorithms will not suffice. 

Instead, Aelf employs delegated proof-of-stake (DPoS) to run the network more efficiently and ensure the predictability of block formation, which enhances user experience. 

The process is as follows:- holders of the ELF token vote on who will become the mining nodes. Then the elected nodes decide how to distribute mining rewards among the rest of the nodes, plus stakeholders. This equation determines the number of miners: 

Miners = 2N+ 1, with N starting at eight and increasing by one every year. Just like in other blockchains, mining nodes are responsible for relaying and verifying transactions, packaging blocks, and transferring information. 

How are ELF Tokens Distributed?

Aelf held its pre-sale in December 2017. The distribution of the 1 billion tokens was as follows. 

  • 25% (250 million) went to investors
  • 25% went to the Aelf foundation, a 3-year vesting period
  • 16% went to the Aelf team, a 2-year vesting period
  • 12% went to the marketing and airdrops
  • 12% went to mining over a 100-year period 
  • 10% went to advisors and partnerships, a 2-year vesting period

What is ELF’s Market Standing?

As of May 30, 2020, Aelf is trading at $0.092932, while ranking at #105. It has a market cap of $50, 599, 793, a 24-hour volume of $24, 971, 816, a circulating supply of 544, 480, 200, a total supply of 880, 000, 000, and a maximum supply of 1, 000, 000, 000. ELF’s all-time high was $2. 77 (January 07, 2018), and its all-time low was $0.035013 (March 13, 2020). 

Where to buy ELF

ELF is traded on several major exchanges, including Huobi, Binance, Coinswitch, Cointree, KuCoin, YoBitNet, and IDEX. Most of the platforms require you to exchange such cryptos as BTC, ETH, or USDT for ELF. This means you will have first to purchase any of the proxy coins with Fiat.

Aelf also has a reward system known as Candy. Through this system, you get to earn points that you can convert for ELF by carrying out simple tasks such as interacting with Aelf tweets, inviting more users into the Aelf Telegram channel, among other promotional activities. However, a quick check online reveals the Candy program does not seem to be active currently.

Aelf supports a web wallet but recently introduced beta versions of both Android and iOS wallet apps. However, you can use a third-party compatible wallet such as Ledger, KeepKey, Exodus, Coinomi, Trezor, and MyEtherWallet. 

Conclusion

Aelf is a relatively young project, but still holds a ton of potential. The enthusiasm displayed by big-time venture financiers is a testament to how big it could become, and its implications for the blockchain and business spaces. Its strategy to separate resources through side chains and a unique governance model should help propel it to significant heights, both as a blockchain project and as a business model. 

Categories
Crypto Daily Topic

What are oracles in smart contracts

Ethereum brought to life the idea of smart contracts – which were initially proposed by Nick Szabo in the early 90s. After the introduction of blockchain, smart contracts were designed to run on this new technology, where they autonomously and transparently execute a function when specific conditions are met. Thanks to their fundamental trust-less feature, smart contracts have eliminated the need for third-parties, making transactions frictionless and more affordable.

Smart Contracts | Forex Academy

Ethereum brought to life the idea of smart contracts – which were initially proposed by Nick Szabo in the early 90s. After the introduction of blockchain, smart contracts were designed to run on this new technology, where they autonomously and transparently execute a function when specific conditions are met. Thanks to their fundamental trust-less feature, smart contracts have eliminated the need for third-parties, making transactions frictionless and more affordable.

Ethereum brought to life the idea of smart contracts – which were initially proposed by Nick Szabo in the early 90s. After the introduction of blockchain, smart contracts were designed to run on this new technology, where they autonomously and transparently execute a function when specific conditions are met. Thanks to their fundamental trust-less feature, smart contracts have eliminated the need for third-parties, making transactions frictionless and more affordable.

Even though they work automatically, smart contracts have to be fed an input so as to generate the desired output. This is where the concept of oracle comes into play. Essentially, an oracle in this context is a data feeder that provides smart contracts with inputs, consequently determining the output.

How it works

Think of a gamble between two people; Brad and Sam. Suppose they both place their wagers on the outcome of a basketball game. Brad bets on team A while Sam bets on team B. Both Sam and Brad agree on terms of the bet and lock their funds in a smart contract agreement.

For the bet to be settled and the funds released to the winner, the smart contract has to depend on a trusted oracle to feed it the necessary data – in this case, the results of the basketball game. At the end of the game, the oracle queries a reliable data source to find out the winning team, after which the data is relayed to the smart contract. The funds are then sent to either Brad or Sam, depending on the game’s outcome.

The Oracle Problem

From the cited instance above, smart contracts must have access to off-chain data – data that is stored outside the network – for them to be used in real-world cases. To bridge the gap between off-chain data and smart contracts, centralized oracles have been tasked with verifying and authenticating the external data, or rather the input that guides the execution of smart contracts agreements.

However, centralized oracles betray the decentralized tenet of the blockchain revolution. Even worse, they are vulnerable to manipulation, which ends up compromising the entire contract. This problem has incentivized blockchain developers to come up with decentralized oracle solutions in the spirit of maintaining data integrity. As such, decentralized oracles leverage the abilities of blockchain by acting as a layer that queries, authenticates, and protects external data from manipulation before it’s fed as input into a smart contracts agreement.

Types of Blockchain Oracles

Blockchain oracles come in various forms which include:

Software Oracles

Blockchain software oracles are the most common type of data authenticators. They verify information from such online sources as websites, online public databases, or any other data source connected to the internet.

These oracles are considered to be the most powerful type of blockchain oracle due to their inherent interconnectedness with the internet. This is especially true considering the proliferation of the internet in almost all spheres of life.

As such, software oracles are relied on to provide the most up-to-date information to smart contracts. Software oracles are, therefore, best suited for use in verifying asset exchange rates, digital asset prices, and flight information in real-time.

Hardware Oracles

Hardware oracles are tasked with translating real-world data into a digital form that can be interpreted by smart contracts. For this reason, hardware oracles rely on electronic data readers like barcode scanners, that translate information into verified digital values before being loaded as input into a smart contract.

A good example of their use is in the supply chain industry, particularly the tracking of goods. When sending goods to a certain location, they are tagged with an RFID tag whose data is read by a scanner and fed into the smart contract agreement.

Inbound and Outbound Oracles

Inbound oracles transmit information from external sources to a smart contract, whereby upon receiving the data, the contract initiates the path of execution. From the example above on the basketball game, the source of information providing the final results of the game can be classified as an inbound oracle.

Once the information is loaded into the smart contract, the terms of the bet are executed. As such, inbound oracles can be termed as “contract execution triggers.” They can be used in asset trading whereby if an asset reaches a specific price, the contract will then execute the buying or selling of the asset.

Outbound oracles are the direct opposite of inbound oracles in that they relay information to external sources. A good use case scenario of an outbound oracle can be found in a smart lock that is opened by depositing funds. Once it’s verified that the funds have been deposited in the designated address, the smart contract sends this information through an outbound oracle, which then relays the data to an external mechanism that eventually unlocks the smart lock.

Consensus-based Oracles

As the name suggests, consensus-based oracles work by collaborating data from multiple sources. For example, in the basketball game example cited above, a consensus-based oracle would work by verifying the game results from several sources. If all the sources provide the same data, it ascertains the accuracy and, therefore, the terms of the smart contract can be executed.

As far as data integrity is concerned, consensus-based oracles stand as a viable solution to data manipulation. Think of a smart contract agreement that relies on a single data source. Counterparties could alter the information – resulting in unfair settlement of the contract. However, when using consensus-based oracles, any discrepancies in the data due to manipulation can be noted and resolved.

For instance, if the compromised data source provides different information from the other verified sources, the smart contract can be programmed to the agreement based on the data from the other sources whose information is in sync and correct.

Conclusion

Oracles, whether centralized or decentralized, play a vital role in bringing blockchain into the real world. They widen the scope of blockchain’s access to information, bringing its capabilities to various use cases. Decentralized oracles, in particular, safeguard data integrity, eliminating the systematic risk from the blockchain ecosystem. This ensures contracts are executed securely and in a trust-less manner, facilitating the adoption and maturation of blockchain technology.

Categories
Cryptocurrencies

VeChain Blockchain Review: What is VeChain, Where to Buy, and How Does it Work?

Most cryptocurrency projects come with a lot of pomp, revolutionary white papers, and a ton of promises about changing the industry. But if you’ve been in the crypto world long enough, you’ve probably realized that a majority of these crypto projects don’t live long enough to actualize these promises. Most of these fade away because their value proposition was not strong enough to weather the competition. There, nonetheless, have been several crypto projects that dazzled us with their ambition and went on to actualize their product.

VeChain Blockchain review - Forex Academy

Most cryptocurrency projects come with a lot of pomp, revolutionary white papers, and a ton of promises about changing the industry. But if you’ve been in the crypto world long enough, you’ve probably realized that a majority of these crypto projects don’t live long enough to actualize these promises. Most of these fade away because their value proposition was not strong enough to weather the competition. There, nonetheless, have been several crypto projects that dazzled us with their ambition and went on to actualize their product.

Most cryptocurrency projects come with a lot of pomp, revolutionary white papers, and a ton of promises about changing the industry. But if you’ve been in the crypto world long enough, you’ve probably realized that a majority of these crypto projects don’t live long enough to actualize these promises. Most of these fade away because their value proposition was not strong enough to weather the competition. There, nonetheless, have been several crypto projects that dazzled us with their ambition and went on to actualize their product.

VeChain is one such project. VeChain was one of the earliest blockchain industry players. It not only has a substantial customer base but has also inked several lucrative deals with several big-name brands that align with its growth and expansion plans. Headquartered in Singapore, the project has also branched out into China, France, the US, Hong Kong, and Japan.

This VeChain review explores what you need to know about VeChain: its product, team, working model, tokens, and everything in between. 

What’s VeChain?

VeChain is a blockchain platform that seeks to inject more transparency, efficiency, and speed into supply chains. As stated in the VeChain white paper, its goal is “to build a trust-free and distributed business ecosystem platform to enable transparent information flow, efficient collaborations, and high-speed value transfers.”

VeChain Token (VET) - Forex Academy

The current supply chain data management process is done in silos when various departments are unable to share information for speedy and informed decision-making. Yet, effective data sharing processes are the lifeblood of any business. Impaired information-sharing interferes with innovation, leads to weak collaboration, reduces supply visibility, and undermines a business’s potential.

VeChain believes blockchain can end the “asymmetric information problem and allow ownership of data to return to and empower its owner.” It proposes to enable utter transparency in business processes such as storage, transport, and supply.

For instance, the platform can help to monitor quality, source, mode of transportation, and the authenticity of a bottle of wine right from the manufacturer to the end-user (customer). It can also help automobile owners regain control over their data and use it to negotiate for better and fairer insurance policies.

History of VeChain

VeChain was launched in 2015 by Sunny Lu, former Chief Information Officer of Louis Vuitton China. It began as a subsidiary of Bitse, Shanghai-based blockchain company. The VeChain product is being used across real industries, unlike many crypto projects that are still stuck in the development (beta) phase. From fashion to agriculture, to wine, to food safety, to carbon emission reduction, to governments, VeChain’s blockchain technology has already found multiple use cases.

The VeChain network was formerly hosted on the Ethereum blockchain. In 2018, it launched its mainnet and rebranded into ‘VeChainThor’ (VET) blockchain.

VeChain has notably secured strategic partnerships in a bid to realize its goals of disrupting the current supply chain. VeChain also aspires to be a decentralized applications (DApps) and initial coin offerings (ICO) destination. To achieve this, VeChain has entered into business with several high-profile financial companies like PricewaterhouseCoopers (PwC), Chinese electronics company Jiangsu Electronics, and automobile company Renault.

VeChain’s Team

Sunny Lu is the leader of the team. Lu has been the lead of IT and information system departments for various companies, including Louis Vuitton China.

Other team leaders include Chief Financial Officer Jie Zhang, who has a wealth of history in IT, as well as the founder of Bo Shen, founder of Chinese venture capital company Fenbushi Capital.

VeChain’s VET and VTHO

VeChainThor blockchain features two tokens that are “the blood” of the VeChain body: VET and VTHO. VET is used by companies to facilitate “smart contracts.” It is also available to the public as a store of value and for speculative investment.

Here, owning more VET grants a company more rights on the VET blockchain.

The VTHO token – VeChainThor Energy in full and also known as VeThor Energy, is much like gas for Ethereum or NEO blockchains. It is used to power transactions on VeChain and as payment for running applications.

According to VeChain’s white paper, the two-token system is designed to achieve effective governance and to provide a simplified economic model for developers.

Proof of Authority

The VET blockchain utilizes Proof of Authority to achieve consensus. According to this protocol, voting rights are granted based on one’s stake in VET and disclosure of identity. VET holders without Know Your Customer (KYC) info are, for instance, assigned 20% while holders with KYC with the same amount of tokens are allocated 30% voting rights.

101 ‘Masternodes’ are tasked with the responsibility of reaching a consensus about the validity of transactions within the VeChain blockchain. This mechanism is different from Bitcoin’s blockchain – in which all nodes in the network must approve a transaction before a consensus is achieved.

On VeChain, anonymous nodes cannot take part in transactions’ validation, and disclosure of one’s real identity is a precondition for becoming an Authority Masternode. VeChain states that this system consumes far less energy compared to Blockchain 1.0.

There also are economic masternodes within the VeChain blockchain. These nodes do not approve transactions or blockchain entries. Instead, they serve as a check on the power of voters. Here, power is allocated by granting a specific number of votes to each economic masternode based on the size of VET staked where 10,000 VET = 1 single vote.

This voting rights distribution mechanism centralizes what should be a completely democratic and decentralized system. VeChain acknowledges this, arguing that the protocol is meant to strike a balance between centralization and decentralization.

The VeChain Foundation

Launched in 2017, VeChain Foundation is a centralized organization by the VeChain community that’s responsible for “developing and maintaining the VeChainThor Blockchain, community building, and management, business engagement, technical research, and design.” According to VeChain’s whitepaper, the foundation is responsible for “organizing and representing the entire VeChain community and for setting up the Steering Committee with seven seats, which could expand depending on the stage of development, to lead the core team of VeChain.”

Tokenomics of VET

On May 30, 2020, VeChain was trading at $0.005620, at position #31 and with a market cap of $311, 667, 818. Its 24-hour volume was $186, 888, 250. VET has a circulating supply of 55, 454, 734, 800, with a total supply of 86, 712, 634, 466. The token’s all-time high was $0.019 775 (Sept 4, 2018) while its all-time low was $0. 0.001 678 (March 13, 2020).

Where to Buy VET

You can purchase VET from several exchanges, either directly with Fiat or in exchange for cryptos such as Bitcoin or Ethereum. Some popular exchanges include Gemini, Binance, Coinswitch, Huobi, KuCoin, Changelly, and Bitit.

You can store the VET tokens in the VeChainThor wallet that’s available on iOS and Android app. Other great options include Ledger, Nano, Guarda Wallet, and Atomic Wallet.

Final Words

VeChain is one of the most successful players in the blockchain space. It identified problems in the supply chain and proposed to solve them with blockchain-based solutions. Its partnerships with companies such as PwC, Renault, and Jiangsu will help expand and solidify its client base.

Categories
Crypto Daily Topic

How Can Blockchain Help Combat the Spread of Fake News?

We are currently living in the information age, thanks to the proliferation of IT in all spheres of everyday life. From a simple walk down the street, a visit to the nearby grocery store, to the time you curl up on your couch at the end of a long day, you are bombarded with numerous sources of information. Think of billboards, unending newsfeed on your social media account, and round the clock news from the mainstream media. 

Fake News With BlockchaIn | Forex Academy

We are currently living in the information age, thanks to the proliferation of IT in all spheres of everyday life. From a simple walk down the street, a visit to the nearby grocery store, to the time you curl up on your couch at the end of a long day, you are bombarded with numerous sources of information. Think of billboards, unending newsfeed on your social media account, and round the clock news from the mainstream media. 

We are currently living in the information age, thanks to the proliferation of IT in all spheres of everyday life. From a simple walk down the street, a visit to the nearby grocery store, to the time you curl up on your couch at the end of a long day, you are bombarded with numerous sources of information. Think of billboards, unending newsfeed on your social media account, and round the clock news from the mainstream media. 

While these information sources keep you up to date with the current global trends, the rise of fake news within the broader media industry can negatively shape your perception, prompting you to make a wrong decision. For instance, financial markets’ fake news has the power to sway market trends by influencing investors’ decisions. Judging by this magnitude, it’s easy to see why fake news is not only a threat to businesses but also the democracy of any given country. 

Despite their numerous efforts, big data companies like Google and Facebook have not succeeded in fighting against the spread of fake news. But with the invention of Blockchain as part of the web 3.0 revolution, the media industry has a better chance of countering the propagation of fake news.

How Blockchain can help

There has been much hype around Blockchain with expectations that it will drive new societal and business models. Even though most of the novel applications of this technology are still in the experimental stage, blockchain technology has shown its potential by disrupting the supply chain and financial industry. 

Blockchain | Forex Adacemy - hitesh-choudhary-JNxTZzpHmsI-unsplash

In equal measure, by deploying the fundamental properties of blockchain technology – enforcing trust between parties – it becomes easy to whitelist news and other web content. But first, let’s look at the two main types of mediums of spreading fake news. 

I) Edited pictures and videos

With the plethora of image and video editing software, it is easy for anyone to alter imagery content to suit a particular narrative. See, it’s one thing to color correct or improve an image’s lighting, but it’s another thing to add or remove from an image. Of course, the latter being the most common way in which fake video/imagery is designed. 

II) Fabricated text

Unlike edited images, it’s quite hard to notice whether or not a written text has been fabricated or altered in any way. Most media houses focus their efforts on countering deep fake videos and images since they are easier to notice than fabricated text. The use of artificial intelligence and machine learning that support text writing has led to the creation of unbelievable fake content, further blurring the line between fake and real news. 

Here’s how Blockchain can help mitigate these problems: 

  • Consensus content management 

By leveraging Blockchain’s native consensus algorithm, all content, whether written or image-based, can be stored in a consortium blockchain, reserving all editing rights to trusted authors and news outlets only. More so, the content will be cryptographically signed, rendering it immutable and free of third-party manipulation.  

In this single content management system, every news piece will have a unique digital ID, much like how each block in the chain ledger is unique. Ideally, the ID will appear as a header that is legible to computer devices only and will be used to verify the origin and validity of the content. 

  • Traceability 

In most cases, when a fabricated post or video goes viral, its source or author can’t be traced. By using blockchain-connected applications such as electronic identification and trust services, anyone creating content, posting an ad, or writing a review will be required to prove their identity and credibility to demonstrate that they are who they claim to be.

Electronic signatures and video verification could be used in the process to bring to an end to the many fake accounts and bots creating fake news. This will also increase the accountability of people who share information. 

Once news agencies and editors create and verify their profile, their address is hashed and stored in the Blockchain. This way, it will be easier for content consumers to trace the source of the content and ascertain the credibility of the publisher. 

  • Decentralization

In this context, decentralization implies the ability to involve multiple parties in the news circulation network. Think of a community-owned news agency that runs on a cryptocurrency token to promote transparency. This gives any member of the community power to challenge any source of news that is suspected of delivering fake news. Plus, other members can vote for or against the contested source of news. If found guilty, the source is banned from the community. 

Real-world Applications of Blockchain in Journalism 

There have been several attempts to bring blockchain solutions into journalism. 

News Provenance Project_Forex Academy

Mid last year, the New York Times launched an ambitious blockchain project dubbed The News Provenance Project, which is aimed at combating misinformation in the news media. Designed in collaboration with IBM, the project began with verifying images since they require a simpler form of algorithm to discern whether an image has been modified or not.

Although it’s still in its developmental phase, the project works via proof-of-concept to record metadata of video images published by news outlets. Once the project gains traction, it will certainly propel widespread application of blockchain solutions in the media industry. 

Additionally, Forbes partnership with Civil – a journalism blockchain network – is working to become the first media house to publish content on blockchain technology. The goal of this venture is to move all of Forbes’ future content to the Civil’s proprietary content management system, known as Bertie. If the project succeeds, Forbes’ journalists will be able to upload their content metadata to the content management system, while publishing to their own website at the same time. 

Besides Forbes, Civil has teamed up with several journalists from different media houses to create a decentralized content vetting companies. The project will use Civil’s own digital currency, CVL, which will enable newsrooms to be part of the vetting process. As such, a newsroom can challenge a suspicious publisher by wagering their tokens in order to have their claims evaluated. 

Conclusion

Beyond supporting cryptocurrencies, Blockchain has proven to be also useful in solving real-world problems, as evidenced by its potential to revolutionize multiple industries. With its newfound application in journalism, it’s certain that the technology will not only help solve the fake news menace. It will also address the copyright infringement issues ailing the media industry. 

Categories
Crypto Daily Topic

How Can Capital Markets Benefit From Blockchain Technology?

Ever since cryptocurrency and blockchain first captured mainstream attention, the entire space has been met with a lot of skepticism and hostility. Much of the distrust has come from governments and central bank regulators who are afraid of losing influence over their economies, particularly the financial sector. 

Capital Martket_Forex Academy

Ever since cryptocurrency and blockchain first captured mainstream attention, the entire space has been met with a lot of skepticism and hostility. Much of the distrust has come from governments and central bank regulators who are afraid of losing influence over their economies, particularly the financial sector. 

Ever since cryptocurrency and blockchain first captured mainstream attention, the entire space has been met with a lot of skepticism and hostility. Much of the distrust has come from governments and central bank regulators who are afraid of losing influence over their economies, particularly the financial sector. 

They have, therefore, moved to exert regulations on the sector. Despite the cold reception, blockchain’s numerous benefits and decentralized nature have made it hard to censor for the government.

Capital markets, being a complex system where transactions involve buyers, sellers, brokers, and additional third parties such as liquidity providers, can benefit immensely from the blockchain as a distributed ledger system. Besides securing data, the technology also supports smart contracts that allow for the automation of processes such as payments and moving of collateral. 

Benefits of blockchain solutions in the Capital Markets Trade Cycle 

Capital Markets | Financial Markets - pascal-bernardon-zt0HWquGXlQ-unsplash

Financial institutions are the direct beneficiaries of blockchain solutions in the capital market since they are the most significant players in the industry. At the same time, these benefits have a ripple effect on the entire capital markets ecosystem, and so does the improved efficiency it brings along.

Here are some of the most significant benefits: 

I) Streamlined Trade Settlements

Trade settlement in the current capital markets’ ecosystem is considerably technical, as evidenced by the swap contract transactions between banks in international trader settlements. 

Blockchain-based smart contracts can help to automate trades by releasing settlements only on the condition that the financial details of the banks involved match. Its adoption will help reduce costly errors from the manual processing of settlement instructions. 

In the case of transferring securities from seller to buyer, smart contracts act as a more advanced ‘if-then’ statement from Excel. As such, the transaction will only be completed if certain conditions within the agreed-upon contract are satisfied. Blockchain not only eliminates the broker fees involved in the process but also protects the two parties from fraud risks. Moreover, the sheer accuracy of smart contracts eliminates reconcilement issues that often arise when transactions aren’t properly executed. 

II) Reduce Trade Limit Violations

Trade between financial institutions, also known as swaps, consists of trading limits placed by the government mainly for taxation purposes. A limit can also be placed on trades involving other assets such as derivatives, options, and debt capital markets transactions. 

Violation of these trading limits often results in costly fines, as was the case with JP Morgan Chase Bank in the infamous London whale trade. The bank was fined $920 million, which caused its stock to fall from $45 to $31 before eventually recovering. 

While the bank didn’t intentionally violate the trade limit, lack of effective internal risk and accounting controls allowed traders to take larger trade positions without the consent of senior managers. 

With a distributed ledger and a series of smart contracts, the bank could have maintained compliance with the trade limit laws. Trades over the pre-determined limit could be reversed or blocked if and when they threaten to violate the terms of the smart contracts. The trade infringements could then be detected and reported early enough – saving the bank the subsequent fines and reputation damage. 

III) Credit Risk Management

Assessing a clients’ creditworthiness is essential in ascertaining whether or not they can be approved to trade the capital markets with a financial institution. The same applies to loan issuance processes where an individual’s credit rating determines such aspects as their eligibility and interest rates. 

The use of blockchain in this niche could help create a shared ledger that acts as a central database that is accessible to authorized institutions. Blockchain could facilitate a near real-time communication system, allowing involved parties to take appropriate actions. 

For instance, if the credit rating of a client deteriorated while having an open financial contract with a capital markets trading desk, an instant notification will be communicated between the trading desk team and credit risk officers. As a result, the shared ledger would eliminate the current inefficiencies associated with traditional credit risk assessments – improving the overall business processes. Additionally, the combination of blockchain as an immutable database and machine learning for automated risk assessment would greatly improve the accuracy of credit score ratings. 

IV) Improve Trading Integrity

Trade malpractices, especially in the securities market, can sabotage the growth of the entire market if left unchecked. Currently, the traditional measures put in place by security exchanges to curb illegal trades such as insider trading are not effective and cannot detect these illegal activities before they happen.

The use of blockchain solutions brings in transparency in equity trading. As such, it makes it easier for market regulators to detect irregularities such as artificial pattern trading, thus safeguarding the integrity of the entire equity market. 

V) Maintain KYC and AML Compliance

All financial institutions are required by law to have an in-depth knowledge of their customers’ personal details before offering any services to them. This concept is known as know your customer (KYC) and is closely related to anti-money laundering (AML) – with both designed to curb financial crimes such as tax evasion. 

The cumbersome paperwork and long durations involved in the process could be reduced or eliminated using a decentralized and immutable database. Additionally, this ledger system can help tie investors’ real-world identity to an on-chain wallet address, which in turn can help institutions restrict security/IPO trading to investors who have not been properly vetted. 

  • Asset tokenization

Asset tokenization is the creation of decentralized digital assets that can later be traded. Both tangible assets, such as property, automobiles, and paintings, as well as less tangible assets such as bonds and securities, can be tokenized on a blockchain network to maintain an immutable record of ownership.

Tokenized assets are faster to trade at more affordable transaction costs thanks to the automation process of smart contracts. Moreover, assets in a tokenized form are more accessible and liquid, making it easier for financial service providers to facilitate efficient asset trading. 

Takeaway

It’s evident that blockchain has a lot in store for the capital markets and the financial sector as a whole. Of course, the adoption and implementation of this technology will be a gradual process owing to the intricate nature of capital markets. It will require financial service providers to define the technology’s entry point based on adoption feasibility and cost-benefit analysis. 

Categories
Cryptocurrencies

What’s Steemit (and Steem) All About?

In this age of ubiquitous internet and social media, we’re constantly sharing ideas and content with our fellow internet users. But has it ever occurred to you that you could be paid for that? Thanks to blockchain technology, it’s now possible. 

In this age of ubiquitous internet and social media, we’re constantly sharing ideas and content with our fellow internet users. But has it ever occurred to you that you could be paid for that? Thanks to blockchain technology, it’s now possible. 

In this age of ubiquitous internet and social media, we’re constantly sharing ideas and content with our fellow internet users. But has it ever occurred to you that you could be paid for that? Thanks to blockchain technology, it’s now possible. 

For long, giant social media companies have profited off user-generated content, while the actual creators of the content, who are the ones that keep the wheels rolling, get little or no share of the pie. And content creators often have to leverage several means to get paid. And emerging tools like ad blockers make it difficult for advertisements to reach targeted audiences. 

Steemit is a platform that’s leveraging blockchain to change the way we view and use social media by rewarding active users with cryptocurrency. It was founded in 2016 by Dan Larimer – who is also the founder of popular blockchain projects BitShares and EOS, together with financial analyst Ned Scott. 

The Steemit model incentivizes both content creators and people who interact with it. This way, an ecosystem is created where content owners are rewarded, as are people who engage with it. 

This piece delves deeper into the Steemit platform as we discover how it works, what is the Steem token, and everything in between. 

What is Steem 

Steem is a token based on the content-focused, blockchain-based and decentralized platform Steemit. Steem enables content makers and publishers to earn money from their content. It works the same as other social content platforms like Reddit and Facebook; only this time, contributors get rewarded for their content, as do individuals who upvote other people’s content.

Owners and shareholders of content platforms such as Reddit and Facebook have made billions of dollars worth of value from user-generated content – with the content makers themselves not gaining at all. Steemit hopes to change this. 

As it says on the white paper:” Steemit aims to support social media and online communities by returning much of its value to the people who provide valuable contributions by rewarding them with cryptocurrency, and through this process create a currency that is able to reach a broad market including people who have yet to participate in any cryptocurrency economy.” 

How Does Steem Work? 

To discover what the Steem token is all about, we first need to understand the Steemit network. 

First, the Steemit network generates and distributes Steem tokens every day. Users can then hodl these tokens, exchange them for other cryptos, or sell them for Fiat currency. Steem has become uber-popular in the crypto and content community since it allows virtually anyone who can curate interesting content to earn money. 

Unlike other cryptocurrencies, Steem does not rely on mining or network consensus for new coins to be released. Instead, the network automatically generates new Steem units and distributes them to users who are actively engaging with the platform. The amount of tokens you get is proportional to the number of upvotes you get and how much you engage with content on the site (upcoming and commenting). 

What Problem is Steem Solving?

Steem is helping to solve a persistent problem in the content world. The content economy is currently incredibly fractured. 

Content makers work hard to curate great content, yet their only hope to earn off of it is via advertisement (which in itself is not guaranteed), affiliate marketing, and other uncertain ways. Other times, content creators have to give up control or direction of their work, which ends up corrupting or watering down the original spirit of the content.

Compounding this issue is the fact that even the current routes for monetization are becoming less effective. Content consumers are not exactly willing and enthusiastic about having to pay for online content. This is due to the huge amount of content that is readily available online. People would rather go elsewhere for content rather than pay for it. 

Consider ad blocking, which has considerably stalled digital advertising. In 2019, for instance, 47% of internet users were using some form of ad blocking, and this figure is set to continue growing. This is something that affects content creators because advertised messages never reach their intended audiences. And for content makers who instead opt to put up a paywall, it mostly just serves to send readers away. 

Steemit aims to change this status of things. On the platform, content creators can post their amazing content and get paid. And content consumers have an incentive to interact with that content. 

Who can Benefit from Steem?

Steem was built to empower regular people from all walks of life by rewarding them for their contribution to online communities. The Steemit platform processes actions (publishing of content, upvoting, commenting, etc.), super-fast, and payouts are made seven days after the fact. Below are the groups of people who can benefit from Steem: 

  • Content creators
  • Content curators
  • Remitters 
  • Market-makers
  • Bloggers
  • Commenters
  • Internet readers
  • Referrers
  • Sign up party hosts

The Three Crypto Tokens of Steemit

Steemit actually has three kinds of tokens. These tokens interact in various ways to bring value to platform users. They include Steem, Steem Power, and Steem Dollars. 

#1. Steem

Steem is the ‘main’ token of the Steemit platform. Network users get paid in Steem for their contribution to the network. Steem can be sold on the open market, just like any other token. It’s not advisable to hang onto Steem for too long. Since the token is released every day, hanging onto it for too long risks dilution.

#2. Steem Power

Steem Power (SP) tokens enable you to have proportionate ownership in the Steemit platform. It’s a measure of how much influence you have as a user. As the network grows, so does your influence. Part of your earnings as a contributor to the network are in Steem Power. The more SP you have, the more your upvotes will be worth. In this way, the Steemit network allows users to build their influence over time. You also receive more rewards when you upvote someone’s work, and they receive a higher payout from your upvotes compared to the upvotes of a relatively new user. 

#3. Steem Dollars 

Steem Dollars are meant to be a stablecoin and are thus pegged to the US dollar. Content makers are paid partly in Steem Power units upon posting the content on the platform. Steem Dollars actually offer three options to users: 

  1. Convert them to Steem and cash out, HODL, or exchange them for other cryptos
  2. Hold onto them and earn 10% interest
  3. Exchange them for Steem Power

How does the Market Look Like?

As of May 30, 2020, Steem was trading at $0.213665, world ranking at #76 in the crypto market. It has a market cap of $78, 497, 841, a 24-hour volume of $3, 476, 286, a circulating supply of 367, 387, 538, and a  total supply of 384, 361, 632. Steem’s all-time high price was $8.57 (Jan 03, 2018), with an all-time low of $0.069192 (March 10, 2017), according to Coinmarketcap. 

Where Can you Buy and Store Steem? 

Apart from being a participant in the steemit platform, you can also acquire Steem tokens from any of several reputable exchanges. Great options include Poloniex, Bittrex, Cointree, Huobi, Bitit, and Coinsquare. 

Storage options for Steem include CLI  (Command Line Interface) wallet, eSteem, a mobile app-based wallet, Vessel – a desktop wallet, as well as a paper wallet. 

Final Thoughts

Steemit is an amazing platform that rightfully rewards content makers for their contribution to the content world. It provides a solution that’s way overdue, and yet timely. By incentivizing content creation, Steemit facilitates a thriving content community that could start changing the way content sharing is done in the future. The platform is one to keep an eye out for. 

Categories
Crypto Daily Topic

How to Find and Profit from Arbitrage Opportunities in Crypto-Trading

Arbitrage trading is a widespread concept in the stock market that entails capitalizing price imbalances between markets. Essentially, an investor buys an asset in one market at a lower price and proceeds to sell it in another market where the same asset is priced slightly higher.

Arbitrage_Forex Academy

Arbitrage trading is a widespread concept in the stock market that entails capitalizing price imbalances between markets. Essentially, an investor buys an asset in one market at a lower price and proceeds to sell it in another market where the same asset is priced slightly higher.

Arbitrage trading is a widespread concept in the stock market that entails capitalizing price imbalances between markets. Essentially, an investor buys an asset in one market at a lower price and proceeds to sell it in another market where the same asset is priced slightly higher.

For instance, say a particular international equity trades at $54 per share in one stock exchange. The same equity trades at $54.20 in another market. A smart investor will speedily bulk-buy the equities at the lower price and sell them at a higher price to realize a tidy profit. 

This trading concept can also be replicated in the cryptocurrency market, especially by day-traders who actively monitor the market trends. 

Cryptocurrency Arbitrage Trading 

Arbitrage trading in the digital currency market is somewhat more efficient than the stock market. This is because there exist numerous marketplaces/crypto exchanges, unlike security trading, which is limited to one major exchange in a given geographical area. Moreover, the crypto market is relatively young, which means that most exchanges work independently and do not share information. This has led to price disparities and profitable arbitrage opportunities. 

There are two major arbitrage trading strategies traders can use to make a profit. 

  • Simple Arbitrage 

Simple arbitrage is the most common strategy that is also used in forex trading and sports betting. In cryptocurrency, the strategy involves buying and selling the same digital asset on different exchanges and pocketing the price difference. 

Now, assume that in one of the exchanges, Bitcoin is priced at $6,000 while trading at $8,500 on the other exchange. To efficiently take advantage of this price difference, you need to open a trading account in both exchanges. Then, you will buy Bitcoin at $6,000, transfer the coins to the other exchange and sell them for $8,500. 

Unfortunately, this approach has two major flaws. First, you’ll have to incur transactional costs associated with transferring cryptos from one exchange to the other. Also, transfers between exchanges can take days. Given the volatility of digital currencies, your profits may diminish during this extended transfer period.

To morph up tangible profits, it is recommended to trade large volumes of crypto. This way, your returns are magnified to cover the transfer and delays. 

  • Triangular arbitrage 

Unlike simple arbitrage, triangular arbitrage is more complex as it involves leveraging the price differences among three different cryptocurrencies within one or multiple exchanges. The strategy can be termed as a cycle where you’ll be exchanging your initial crypto for a second and a third one before finally buying back your initial currency within a limited amount of time. So, the first trading action is required if you were to make any profits. 

Here’s how it is done. There are three different assets on one exchange: BTC, ETH, and LTC. Deposit funds in your trading account and buy BTC as your initial crypto. Next, exchange your BTC for the low-priced LTC. Proceed to sell the LTC for ETH and finally trade the ETH back to BTC. Due to the price differences, your initial BTC holdings will have increased to reasonable amounts, which you can sell for fiat currency.

Even without owning BTC as your initial crypto, you can still make a profit by starting with a low priced crypto. In this case, you already hold some USDT in your account and want to buy 1 Bitcoin, which is currently trading at 6527.06 USDT. Instead of buying Bitcoin directly, you can trade your USDT for another currency, say ETH. Now assume that you end up buying ETH for 302.15 USDT for 1 ETH.

Your last step will be to exchange the ETH for at a rate of 1 ETH = 0.04643 BTC, which means that 1 BTC is trading at 21.5378 ETH. At the end of your trade, you’ll have bought 1 BTC for an equivalent of  6507.64USDT ( 21.5378 * 302.15). As such, you’ll have saved about 19.41 USDT, which wouldn’t be the case if you were to buy BTC directly with your USDT. If you cash out the final holdings immediately, you will make 0.3% profit, without considering the withdrawal fees. 

What to Consider before using Arbitrage Trading strategy 

In theory, cryptocurrency arbitrage sounds pretty straightforward to execute successfully. However, as with all trading strategies,  arbitrage trading isn’t immune to risks. So, here are a couple of things to consider doing to mitigate some of the risks: 

  • Make use of Trading bots.

Although manual arbitrage trading is possible, it’s advisable to make use of trading bots to execute trades. This way, you can be sure that you won’t miss any opportunity, especially considering that cryptocurrencies are highly volatile, and prices may move against you if you are not fast enough to execute orders.

Besides, arbitrage trading requires constant monitoring of market movements, which can be tedious. A trading bot, on the other hand, can be configured to run for long hours and execute trades when an opportunity arises. 

  • Keep an Eye on the Fees

There are many costs associated with arbitrage trading that may eventually eat into your profits. Although some expenses such as transaction and withdrawal fees are unavoidable, it helps to review several exchanges and choose one whose costs are more affordable.

Also, be sure to factor in the taxes based on your jurisdiction. In countries where the law recognizes cryptocurrencies as assets, a trader will have to pay tax on every transaction. In this case, you should limit your transaction or rather use simple arbitrage instead of triangular arbitrage to minimize tax charges. 

  • Limit Your Exposure 

As mentioned earlier, arbitrage trading requires making large volumes of trades to realize reasonable profits, especially when the price difference between assets is narrowly spread. However, it’s prudent to only risk the amount you can afford to lose based on your risk tolerance.  

Conclusion

When done correctly, arbitrage trading is an ideal trading strategy for earning quick profits by leveraging the constant price swings of the cryptocurrency market. But remember to take into account the risks involved and ways to mitigate them to increase your returns. 

Categories
Blockchain and DLT

Is it Game-over for Ethereum as we usher in Radix smart contracts?

Imagine a utopian world without lawyers. A world where two people can enter into an agreement with absolutely no worries that one party may breach it and get away with it. A world run by digital contracts written in computer code. Yes, it is possible, and it is already happening, thanks to the invention of smart contracts.

Imagine a utopian world without lawyers. A world where two people can enter into an agreement with absolutely no worries that one party may breach it and get away with it. A world run by digital contracts written in computer code. Yes, it is possible, and it is already happening, thanks to the invention of smart contracts.

Imagine a utopian world without lawyers. A world where two people can enter into an agreement with absolutely no worries that one party may breach it and get away with it. A world run by digital contracts written in computer code. Yes, it is possible, and it is already happening, thanks to the invention of smart contracts.

What is a smart contract?

A smart contract is a piece of technology that may eventually do away with intermediaries. This is because it is a trusted agreement between two people written in computer code. It does not need a third-party to ‘witness’ or even enforce.

The smart contracts you have heard of are probably those that run on Ethereum’s blockchain platform. After all, the platform that was developed especially for developers to write smart contracts on and run on them. While it is not the only decentralized ledger to implement a general-purpose smart contracts feature, it was among the first.

Some experts argue that new decentralized ledger platforms, in particular Radix, have come up with better ways to implement smart contracts. Smart contracts on such platforms offer both the developers and users more than the blockchain platforms have to offer.

History of smart contracts

The idea of a smart contract was first conceptualized by legal scholar and cryptographer Nick Szabo back in 1994. He discovered that a self-executing contract was a possibility if there was a way to implement a decentralized ledger. This idea was way ahead of its time, and the invention of blockchain, the first kind of distributed ledger technology or DLT, is what made its implementation possible. 

A smart contract is an agreement converted into computer code, run and stored on a distributed system, and supervised by a network of computers, also referred to as nodes. Such a contract is ‘smart’ for two main reasons:

☑️It contains ledger feedback that makes it practical for use in transferring funds and receiving products and services.

☑️The contract is trusted by both parties that enter into it. It is therefore executed transparently and without the need for a middleman to oversee it.

The problem with current smart contracts

Smart contracts are one of the most utilized applications of decentralized ledger technology. Bitcoin was the first DLT to support smart contracts. It used them in payment channels, time locks, multisig accounts, and escrows. However, the limitations of the underlying blockchain technology greatly hinder its application.

Ethereum was developed with smart contracts in mind. The developers understood the limitations of the Bitcoin platform and chose to design a new platform that replaces the restrictive Bitcoin’s script with another that is more versatile. This would allow developers to build their own applications that use the platform’s smart contracts capability.

Ethereum’s smart contracts application platform may be the most popular today, but it has glaring weaknesses that it may never be able to overcome. This is because of the limiting factors of the blockchain platform and not the platform design or development. The most notable are:

☑️Blockchain does not scale very well. The concept of a ‘chain of blocks’ is a very powerful one, not only because it guarantees data integrity and necessitates trust between parties in the contract, but also because it has proven to have the capability to disrupt industries.

However, blockchain-based systems are slow and get even more sluggish as the chain grows longer with more blocks of transactions added to the chain.

☑️The consensus protocols used by blockchain systems are at a high risk of centralization.  Blockchains use either Proof-of-Work (PoW) or Proof-of-Stake (PoS) consensus protocols which carry certain degrees of different potential dangers.

It would be justifiable to say that even today, no blockchain system is absolutely decentralized.

☑️Blockchain-based smart contracts place a lot of burden on the developer. Creating an app on the Ethereum platform, for instance, involves creating the basic rules for how the app should behave and implementing its security features in the code. Even building a simple token system on Ethereum is still a very complicated affair.

For a technology that is intended for transactional systems, blockchain-based smart contract platforms are very unappealing to developers.

The future of smart contracts

The world has had a taste of the benefits of smart contracts built and run on decentralized systems, and there is no going back. Since blockchain, and its consensus protocols will never allow for global scalability and 100% decentralization, the world will have to adopt something better for smart contracts. The good news is that it is already here!

The ideal decentralized ledger (DLT) would have all the benefits that blockchain has to offer, and without scalability and consensus problems plaguing blockchain. Radix is such a platform. It is highly efficient and fast, but most importantly, it is scalable.

Radix is designed to have two layers: the Radix Ledger, the base platform that implements DLT, and the Radix Engine, which is the application layer on which transactional rules of the DLT are enforced. The Radix Ledger combines a distributed database ledger (which rakes in all the benefits of blockchain) and a one-of-a-kind consensus called Tempo.

Unlike blockchain, Radix leverages the causal relationships of events in the distributed ledger to create an absolute order of events using logical clocks to partially order events and vector clocks. This design ensures that the distributed system is faster and more efficient than any other DLT in existence. It also detects and prevents protocol violations with greater accuracy.

Why is Radix the future of smart contracts?

Bitcoin was a huge success as digital cash for the simple reason that it was modeled after real-world money, and it enforces its contracts the way cash works. The developers of Radix, not wanting to reinvent the wheel, modeled their revolutionary DLT after real-world business assets and transactions to make it easier for developers to work on, but without compromising its two primary features: trust and security.

The Radix smart contract platform makes it easy for a developer to map out business assets on the already-built Radix components. The platform will offer a wide range of easily customizable components that developers can use to define the assets to meet their applications’ transactional requirements.

Since development is greatly simplified on Radix, the developer will get to invest more effort in modeling the behavior of the business processes to be enforced rather than wasting time creating it from scratch using a different language. This is so because Radix Engine Library comes with a ton of models to create almost any common asset transactional system. It also takes a shorter time and less effort even for new developers to learn and create smart contracts on the platform

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Crypto Daily Topic

How to use Cryptocurrency Trading Pairs as an Investment Strategy

Trading crypto-assets is a tad different from trading such other assets as commodities and stocks. Even though they almost share the same trading platform and trading tools, there is a striking difference in how the operations are executed in each market. 

Trading crypto-assets is a tad different from trading such other assets as commodities and stocks. Even though they almost share the same trading platform and trading tools, there is a striking difference in how the operations are executed in each market. 

Trading crypto-assets is a tad different from trading such other assets as commodities and stocks. Even though they almost share the same trading platform and trading tools, there is a striking difference in how the operations are executed in each market. 

In the securities market, for instance, you can easily buy equities directly for fiat currency through your broker account. While the same can be done in the crypto-market, buying cryptocurrencies directly for fiat currency is limited only to a few cryptos. Unless you plan on limiting your trading to these few digital currencies, you’ll have to exchange one crypto for acquiring another one. 

As such, most digital currencies aren’t traded in isolation – or rather can’t be traded against fiat currency, as is the case with stocks and commodities. This is where the cryptocurrency pair trading concept comes into play. 

How Does Cryptocurrency Pair Trading work? 

Well, pair trading isn’t unique to the cryptocurrency market. It’s a trading strategy borrowed from the stock market, where traders pick two highly correlated equities and go long on one while shorting the other when the pair’s price diverges. 

BTC/ETH crypto pair - Forex Academy

In the crypto-market, pair trading is less complicated. All you have to do is buy crypto using fiat currency. Once you’ve acquired the crypto, you can exchange it for or trade it against other cryptocurrencies. In this case, the cryptocurrency which you bought for fiat currency is referred to as the base currency. In most exchanges, Bitcoin, Ethereum, and Litecoin are the most preferred base currencies as they can easily be bought using domestic currencies. Litecoin is primarily preferred because of its fast transactions and affordable fees. 

Dogecoin is also used as a base currency, especially when trading low market cap coins where it might be burdensome to trade them with large-cap coins like Bitcoin. Dogecoin is also preferred due to its relatively stable value, minimizing the volatility risk. Nonetheless, the rule of thumb when choosing a base currency is to go for one that has the highest number of trading pairs. For this reason, it’s recommended to stick to BTC and ETH as your go-to base currencies since most cryptos have pegged their value on these two currencies. Besides, both BTC and ETH are listed in virtually every exchange. 

Tether (USDT) is also among the most used base currencies. It’s questionable management; notwithstanding, the currency is one of the most stable digital assets since its value is pegged to the United States dollar. This makes Tether not only ideal for pair trading but also a store of value for investors to safeguard funds they don’t want to subject to the crypto market’s aggressive price swings. 

Trading Cryptocurrency Pairs 

Cryptocurrency pairs are usually denoted as one against the other. For instance, ETH/LTC pair means that you’re buying Ethereum and selling Litecoin (LTC) at the same time. Selling the pair means that you are selling Ethereum and buying Litecoin simultaneously. Note that some exchanges may have different cryptocurrency pair listings, so be sure to check if the pair you intend to trade is on offer/listed.  

Additionally, some cryptocurrencies cannot be exchanged directly for others. You may have to execute a few pairs of trades before getting hold of the cryptocurrency you desire. This creates an opportunity for complex arbitrage trading, where you can exchange multiple currencies and pocket price differences. This strategy may, however, be considered too risky, especially for new traders. In such a case, consider using third-party apps for seamless trading across a multitude of crypto pairs. 

Does Liquidity Affect Crypto Pair Trading?

Much like any other crypto trading strategy, liquidity influences crypto pair-trading. Essentially, liquidity means the ability of a currency pair to be sold or bought on demand. A currency on high demand has high liquidity, meaning more opportunities on the market. You can buy/sell in significant amounts without much variances in its exchange rate. Even on a bearish market, crypto on high demand will always have buyers. So, you won’t have to settle for the exchange rate too low to attract buyers. 

Note that not all currency pairs are liquid. Their liquidity depends on whether they are paired with cryptos that are on high demand. This is why BTC, ETH, USDT, and LTC are the ideal base currencies due to their constant demand. It’s also why exchanges with a limited number of trades tie their liquidity to one of these major base currencies.  

Risks of Crypto Pair Trading

The best thing about crypto pair trading is that it is market-neutral or non-directional. This means that by pair trading, you generate profits regardless of whether the market is rallying or correcting. Yet, there are several risks and drawbacks investors need to be aware of when using this strategy, including:

I) Execution risk 

While it’s easy to use the pair trading strategy, you may fail to execute the trade at an optimal price value. This is especially true when trading crypto pairs with a small market cap, whose valuation is more dynamic and unstable. 

II) Correlation Breakdown 

Similar to the stock market, pair trading in the crypto-market has to be between two correlated digital assets. Correlation is usually determined arithmetically on a scale of -1 to +1, whereby +1 indicates a perfect positive correlation, while -1 indicates a perfect negative correlation. If the value is 0, it means there isn’t a correlation between the two assets. 

Considering the crypto market’s volatility, the correlation between assets can unexpectedly break down, and the trade may turn sour as assets move in different directions. 

III) Security Risk 

The security aspect of pair trading has more to do with the trading platform rather than the strategy itself. If you are an avid follower of the digital assets market, you probably know that holding your crypto funds in an exchange is a bad idea. Plus, when using a crypto exchange to execute this trading strategy, you risk losing your assets to hackers.

The safest platform for executing this strategy is a Contract for Difference (CFD) broker platform. With this platform, you enter a trade without owning the underlying asset (cryptocurrency). It’s ideally a bet between the seller and trader to trade the underlying asset at prices stipulated in the contract. With CFD trading, you never have to worry about storing the asset or losing it to hackers.

Conclusion 

Pair trading, being a market-neutral strategy, is well poised for application in the volatile crypto market. On the downside, however, if you are planning on making bank on the next bull run, you should probably avoid pair trading since you won’t earn higher profits in a rally than you would during a bearish market. 

Additionally, the strategy is best suited for intermediate and experienced traders who are already familiar with analyzing prices and market fundamentals. If you are looking to earn regular returns regardless of market trends, you too should consider using the pair trading strategy. Note, however, that even though pair trading is relatively safe, only invest what you can afford to lose and operate within tolerable risk levels. 

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Cryptocurrencies

Cryptocurrency Tax Guide – How to File and Pay Taxes on Crypto Earnings

The longest-held sentiment among crypto enthusiasts is that Bitcoin and other cryptocurrencies will one day be recognized as a medium of exchange by governments. If that were to happen, it would not only accelerate the maturation of the cryptocurrency market but also promote world-wide adoption of virtual currencies. 

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The longest-held sentiment among crypto enthusiasts is that Bitcoin and other cryptocurrencies will one day be recognized as a medium of exchange by governments. If that were to happen, it would not only accelerate the maturation of the cryptocurrency market but also promote world-wide adoption of virtual currencies. 

The longest-held sentiment among crypto enthusiasts is that Bitcoin and other cryptocurrencies will one day be recognized as a medium of exchange by governments. If that were to happen, it would not only accelerate the maturation of the cryptocurrency market but also promote world-wide adoption of virtual currencies. 

Unfortunately, tax authorities, particularly Internal Revenue Service (IRS) in the United States and Australian Taxation Office (ATO), regard cryptocurrencies as assets or intangible properties and not a currency since it’s not issued by a central bank. The asset classification of cryptos means that all gains and transactions made using cryptocurrencies are subject to property taxation principles. 

How are Cryptocurrencies Taxed? 

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To avoid landing in the bad books of the law as a cryptocurrency user/investor, it’s necessary to understand the very instances in which crypto taxation laws take effect. This way, you’ll be in a position to report income and pay the resulting tax correctly. 

For starters, tax authorities have made it mandatory for users to report all their cryptocurrency transactions no matter how negligible they seem. These transactions include the purchase, selling of, investing in, or paying for goods and services using any digital currency.

Merchants or businesses that accept payments in the form of cryptocurrencies are required by the law to report the value of the received cryptos. The value should be expressed as their fiat currency equivalent at the time the payment was received. In these cases, as a cryptocurrency user, you’ll incur capital gains, either long-term or short-term.

For the investors, taxable gains apply if the digital currency’s market value increases from the time of investment up to the time of tax filing. A taxable loss, on the other hand, applies when the fair market value is lower than the adjusted basis of the virtual currency. 

Additionally, cryptocurrency miners are subject to cryptocurrency taxation. For instance, after successfully mining Bitcoins, you ought to include the fair market value of the mined coins in your annual gross income. Wages paid in cryptocurrency are also taxed based on the fair market value on the coins on the date of receipt. 

Note that failing to comply with the tax laws can result in penalties, high interests, or even criminal prosecution. As such, it’s advisable to maintain an accurate record of all your crypto transactions. 

Special Considerations

It is important to acknowledge that in some countries, cryptocurrencies aren’t classified as property. This, however, doesn’t mean that they aren’t taxed. On the contrary, they are subjected to a different type of taxation policies. Let’s take a quick look at how various countries approach digital assets: 

  • The European Union 

A few years ago, the European Court of Justice ruled that Bitcoin can be exchanged without VAT in the European Union. Although this judgment doesn’t mean Bitcoin is recognized as a legal tender in any of the EU countries, it places Bitcoin on a level playing field with other traditional currencies.

While the VAT exemption applies to all countries in the European Union, cryptocurrency transactions are still subject to other forms of taxes, such as capital gains. For instance, in France, crypto-to-crypto transactions aren’t taxed, but when exchanged for fiat currency, the income tax law applies. Also, if a cryptocurrency is used to acquire an asset or service, VAT is applied. 

  • The United Kingdom 

In the UK, the law isn’t quite clear about cryptocurrency taxation. One thing is certain, though, all virtual currencies are treated as foreign currencies, and as such, they’re subject to tax gains and losses. The UK tax authority, Her Majesty’s Revenue, and Customs states that each crypto transaction will be judged based on its own individual facts and circumstances. So, users may be subjected to a variety of tax policies depending on how they use the crypto. 

What to Consider When Planning Your Cryptocurrency Taxes 

As far as crypto taxation is concerned, there are several measures you can take if you hope to remain on the good side of the law. These include:

  • Make use of Tax Tools 

Maintaining cryptocurrency tax compliance requires accurate record-keeping of all transactions. This may not be a big deal to casual traders and investors who engage in minimal crypto transactions. But, for active cryptocurrency traders and miners, it makes sense to invest in software programs to help you track and record the numerous transactions. Some of these tools can calculate your tax liabilities, prepare, and even file your tax returns. 

  • Donate Your Cryptos 

Donating a percentage of your crypto investment reduces your tax liability. Once you have donated your digital assets, the charitable fund sells them to an exchange for fiat cash. Consequently, you enjoy tax relief in that particular year of donation. 

  • Be Mindful of the Holding Period 

Short term gains taxes apply when you hold your cryptocurrency investment for less than a year, while long term gains taxes apply when you hold your investment for more than a year. Depending on your investment goals, these two periods can work for or against you.

Cashing out your cryptos too soon subjects you to frequent short term gain taxes that may eat into your profits. At the same time, holding your investments for too long results in accumulation of long term gain taxes, which might also take a massive chunk off your returns. 

Ideally, you should aim to strike a balance between holding for the short term and the long term. If the earned returns are enough to cover the taxes, then you may consider cashing out. If the returns aren’t enough, then consider holding your investments for a bit longer. 

  • Record Your Loss Too

Just like any other investment, the crypto market doesn’t always offer high returns all-year-round. Luckily, tax authorities are aware of this fact, which is why they allow investors to file tax losses to offset gains. So, be sure to record any losses incurred as a result of market trends.

Conclusion

Cryptocurrency taxation is a rather intricate affair given that the regulatory framework governing the taxation process differs significantly depending on the jurisdiction. As such, consulting a cryptocurrency tax advisor when planning for your taxation is highly recommended. It’s also a good idea to keep tabs on the taxation authority to stay updated on any change of policies or new rules. 

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Crypto Daily Topic

SOLANA COIN: Solving the Scalability Problem with Proof of History

Bitcoin and Ethereum are widely lauded for pioneering the blockchain and smart contract technologies, respectively. While this has paved the way for a litany of similar technologies, the scalability challenge inherent to blockchains remains the most significant hindrance preventing decentralized blockchains from replacing centralized data systems. 

Solana Coin - Forex Academy

Bitcoin and Ethereum are widely lauded for pioneering the blockchain and smart contract technologies, respectively. While this has paved the way for a litany of similar technologies, the scalability challenge inherent to blockchains remains the most significant hindrance preventing decentralized blockchains from replacing centralized data systems. 

Bitcoin and Ethereum are widely lauded for pioneering the blockchain and smart contract technologies, respectively. While this has paved the way for a litany of similar technologies, the scalability challenge inherent to blockchains remains the most significant hindrance preventing decentralized blockchains from replacing centralized data systems. 

There have been a few noteworthy attempts to solve the problem, but often the newfound solutions come at the expense of blockchain’s fundamental features. For example, the EOS blockchain can process more than 1,000 transactions per second, but at the expense of decentralization.

Other blockchain iterations have resorted to using off-chain solutions as a way to reduce the influx of transactions on the main chain. Although they may have made a substantial improvement to the traditional linear blockchain, the complexity of their computations results in inevitable technical challenges. 

Solana is a new blockchain project that aims to solve the scalability dilemma by using a cutting-edge protocol known as Proof of History. The protocol can handle up to 60,000 transactions per second (TPS), which is way more than the 3,000 TPS that Ethereum’s Istanbul fork can process. Before we can examine how the Proof of History protocol solves the scalability problem, let’s first understand how the scalability problem comes about.

Scalability – It’s all About Time 

To develop a high throughput ( transactions per second), the computers in a network need to synchronize the time between transactions. This means that each computer node will need its own ‘internal clock’ to ensure that they all coordinate properly. It’s only when they are in coordination that transactions will take less time to be verified, meaning more transactions can be processed within a short time. 

Blockchain Scalability - Forex Academy

Think of Google Spanner, a scalable database that relies on atomic clocks that are synchronized with each other and the network’s data centers. To maintain this coordination, Google spends an enormous amount of resources to act as the “central clock” from which all nodes take the information. 

While Google Spanner has worked for centralized systems, it can’t work for blockchains since they are trustless systems. Blockchain’s network nodes can’t rely on a “central clock” for consensus timestamps since doing so means sacrificing the decentralized nature of blockchain. 

Besides, as far as increasing the overall throughput is concerned, there is one fairly successful technique. It is referred to as sharding and works by partitioning transactions. Although it works almost perfectly, it introduces vulnerabilities such as double spending and the risk of fraudulent transactions due to a lack of communication between different shards (partitions). 

Solana’s Proof of History protocol seeks to enable time coordination, thereby increasing blockchain throughput while reducing the average cost. 

How Proof of History Works 

Proof of History (PoH) enables network participants to reach a consensus on time. Instead of network nodes confirming transactions, as is the case with Bitcoin and Ethereum, they are only required to agree that one event took place before the subsequent event. 

Let’s say you capture a photo of a popular magazine using your camera. In this case, the photo is proof that the magazine was first published before the photo was taken. Proof of History employs the same concept by encoding the passage of time into the blockchain, creating a record that shows a certain event occurred at a specific time before or after another event. 

To do this, the Proof of History protocol uses a new cryptographic concept known as Verifiable Delay Function (VDF). The function records the passage of time by cryptographically verifying that real-time has passed in the process of generating output. It should be noted that the VDF requires several sequential events to produce a unique and reliable output, which is then made public.

The VDF being a cryptographic hash function means that it’s impossible to predict the final output without executing the whole function from the beginning, using the original input. And after running a hash function from an initial input, the resultant output is used as an input of the next function. This cycle of feeding output as input is then recorded as time passage.

The output of one operation becomes the input of the next operation, in which the current count, status, and output are periodically recorded as a passage of time, creating a sequential thread of time, which we may call History. 

Solana also employs other innovative protocols to achieve superior throughput. These protocols include:

i) Tower Byzantine Fault Tolerance Consensus

In the tower Byzantine Fault Tolerance (Tower BFT), all nodes act in the interest of the network. It works in harmony with Proof of Stake to help determine who can participate as a block validator. As such, the ecosystem created allows participants to stake tokens so they can vote on the validity of a PoH hash function. Bad actors are penalized if they vote in favor of a fork that doesn’t match the PoH records. 

The PoH hash, in this case, can be compared to a block as in a typical blockchain. Once a validator votes for a block, they cannot vote another block in parallel. They must wait for the next block by which the PoH VDF will have verified the passage of time. 

ii) Avalanche

Avalanche is Solana’s solution for reducing congestion in a network. This architecture works by splitting block data into two amongst peers. By sharing only half of the block data, avalanche greatly reduces bandwidth and data usage. 

iii) The Honest Approach

The honest approach aims at maintaining integrity between nodes and verifiers by randomly sending an invalid hash intentionally, through the proof of History. 

Conclusion

Solana’s ambitious goal to solve the scalability problem in blockchain could prove to be what the industry needs as a replacement for traditional data systems. Besides being an effective solution for scalability, the project has managed to remove sharding from its design, making network-wide validation faster and secure while reducing the overhead costs.

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Cryptocurrencies

Decentralized Vs. Centralized Exchanges: Which One Should You Trust?

What comes to your mind when you hear the word cryptocurrency? 

Centralised Vs Decentralised_Forex Academy (1) (1)

What comes to your mind when you hear the word cryptocurrency? 

What comes to your mind when you hear the word cryptocurrency? 

Probably it’s the distributed and consensus ledger technology that forms the basis of the whole crypto universe. 

As such, it would seem counter-intuitive if other solutions built around this ledger technology end up diluting its decentralized aspect. Yet, the ratio of centralized exchanges’ trading volume to that of decentralized exchanges suggests that traders prefer the former to the latter. 

Well, there are many halftones between the two concepts – decentralized and centralized – with an arguable belief that not everything is always black and white. Besides, if the power of decentralization was to transverse all aspects of our everyday life, wouldn’t it send us into disarray? So, the real question here should be, to what extent should an exchange be decentralized? 

Decentralized Exchanges Explained 

Much like cryptocurrencies, decentralized crypto exchanges (DEXs), seek to create a trustless environment where buyers and sellers can transact freely. Instead of using matching buy and sell orders in a central book, DEXs utilize smart contracts to link traders directly to each other, eliminating the need for a third-party. In this way, these types of exchanges don’t hold users’ assets or any other personal data. They only serve as a matching and routing layer for trade orders. 

Decentralised_Forex Academy

Generally, there are two types of decentralized crypto exchanges: currency-centric and currency-neutral. Currency-centric exchanges are tied down to one specific blockchain network escrowing its native currency, e.g., Ethereum, Waves, Tron, and any other blockchain that has smart contract capabilities. Currency-neutral exchanges, on the other hand, tend to be more versatile. This means that they can be built on various blockchain networks and are therefore not tied to one specific digital coin ecosystem. 

How Decentralized Exchanges Work

Regardless of their differences, all decentralized exchanges work pretty much the same way. A client brings their funds like ETH, which are stored in the exchange’s network in the form of proxy tokens, in this case, DEX-ETH. Ideally, these tokens serve as collateral for the actual coins stored by the exchange. 

To execute a trade, the client sends an order to sell their tokens in exchange for, say DEX-BTC tokens, which also represent the actual BTC owned by the other party. The smart contract then matches and processes the orders, after which the proxy tokens are exchanged between the two parties. The seller gets the DEX-BTC while the buyer receives the DEX-ETH tokens. After receiving tokens, both parties can convert them to the actual currency, ETH and BTC, using the same trading channel or a different one.

Advantages and disadvantages of Decentralized Exchanges 

Given their architecture, one of the biggest advantages that rises to the forefront is security. The exchanges don’t hold customers’ funds in a central reserve and are thus not vulnerable to hacks or theft. At the same time, decentralized exchanges don’t require a user’s personal information, which also goes a long way in improving security and anonymity in line with the purpose of crypto.

A DEX eliminates the need for a middleman between traders, helping reduce the trading fees. Additionally, traders who like keeping up with crypto market trends, you might consider using decentralized exchanges. This is especially true if you invest in an Initial Coin Offering (ICO). Often, ICOs find their way into DEXs prior to centralized exchanges. 

Despite their numerous advantages, decentralized exchanges have their shortcomings. To start with, they require a higher degree of technical know-how to use efficiently. They also lack essential trading features, which makes them intimidating to new crypto traders. 

Due to the small number of users on DEXs, they have a relatively low trading volume. This translates to limited liquidity in addition to difficulties in finding a matching order since there’s a limited number of traders on the platform.

Decentralized exchanges also suffer from slow transactions. The slow speed of transactions may not be a big deal to small-scale traders, but it can be detrimental to trading giants with high-volume transactions. 

Also, by their very nature, DEXs have no physical location or proof of existence. Therefore it would be difficult to launch a complaint should an issue arise. 

Centralized Exchanges Explained 

Unlike their counterparts, centralized exchanges, also known as CEXs, function similarly to traditional stock exchanges. Essentially, they act as a middle-party between crypto traders and, in exchange, collect a small fee on every successful trade. 

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These exchanges are structured in such a way that they own their users’ private keys (or wallets), meaning that all transactions have to be executed in the mechanisms laid out by the central authority. Their having access to users’ wallets is a double-edged sword.

First, in case of a lost password, a user can easily recover their funds by simply contacting the exchange’s support team. At the same time, centralized exchanges are prone to hacks and thefts since they store client funds in a centralized database. But even with this downside, CEXs continue to attract a higher number of users than decentralized exchanges. 

Such popularity can be attributed to the seamless fiat to cryptocurrency trades carried out on the centralized exchanges. As such, it is easier for a new crypto trader to enter the market. Moreover, centralized exchanges boast of useful trading features like the stop losses, margin trading, and lending, which are not available on decentralized exchanges. 

Thanks to their high number of users, centralized exchanges have higher liquidity than DEXs. The liquidity is further enhanced by the fact that most CEXs accept fiat currencies and can even be linked to debit cards or bank accounts. 

To Centralize or Not to Centralize? 

Currently, centralized exchanges control the lion’s share of the global cryptocurrency trading volume. Although they deserve it due to the convenience they offer, they have watered down the idea of decentralization in the blockchain and crypto industry. Perhaps as decentralized exchanges continue to grow, there will be a major shift to these platforms since they maintain users’ privacy and security, which is becoming increasingly important as more centralized exchanges fall victim to hacks. 

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Crypto Daily Topic

Blockchain and Big Data: A Match Made in Heaven? 

The rise of the technological revolution has given birth to data-driven businesses. Organizations now collect large volumes of consumers’ data that is analyzed to make strategic business decisions that help drive profitability. The collection of massive consumers’ datasets, which is commonly known as Big Data, has become an established industry on its own with its revenue projected to grow to $103 billion by the year 2027. 

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The rise of the technological revolution has given birth to data-driven businesses. Organizations now collect large volumes of consumers’ data that is analyzed to make strategic business decisions that help drive profitability. The collection of massive consumers’ datasets, which is commonly known as Big Data, has become an established industry on its own with its revenue projected to grow to $103 billion by the year 2027. 

The rise of the technological revolution has given birth to data-driven businesses. Organizations now collect large volumes of consumers’ data that is analyzed to make strategic business decisions that help drive profitability. The collection of massive consumers’ datasets, which is commonly known as Big Data, has become an established industry on its own with its revenue projected to grow to $103 billion by the year 2027. 

As Big Data continues to become more prevalent in modern-day businesses, it presents a slew of analytical problems to businesses looking to derive valuable insights from the data. Additionally, with the advent of the web of connected devices, consumers are also at the risk of privacy violations due to the increased probability of security breaches. 

But blockchain, a relatively new technology focused on data integrity and management, has the potential to transform the Big Data industry. And although the two technologies, blockchain and Big Data, may seem mutually exclusive on the surface, they complement each other to create powerful solutions for tech-driven enterprises. 

Where can Blockchain Help Big Data

Some of the biggest challenges facing the Big Data industry stem from poor data management. This is despite the numerous efforts by data scientists to come up with different data management systems. Even with the dynamic technological advancements, it’s becoming quite clear that the most modern tech-infrastructure can’t keep up the growing volume of data. 

As a result, poor data management breeds such other problems as data insecurity as well as inaccurate and incomplete records, also known as dirty data. Analysts and organizations have, therefore, been forced to spend a huge deal of their time and resources on data management that, in an ideal situation, would be spent on other core areas of the organization.

But with the advent of blockchain technology, data management is about to get a lot easier for both the data collectors and its consumers.  

By leveraging the fundamental properties of this novel technology, traditional data-processing infrastructure could be upgraded to manage data adequately. Below are some of the potentialities that the integration of Big Data and blockchain offers:

I) Enhance Data Security

The Big data industry struggles with the lack of adequate security to keep from malicious hackers and their advanced tools at bay. The current data management infrastructures cannot, therefore, be relied upon to keep consumers’ data secure. 

As a distributed ledger system, blockchain technology can be integrated into these data management infrastructures to improve their security. The fact that it uses cryptographic principles to record data in the network makes it almost impossible to breach.

In addition to the high-security standards, blockchain solutions for big data eliminate the need for a central infrastructure where data is stored. Instead, data is stored in a distributed network, making it impossible for a single party to generate enough computational power to alter the data in any way. 

II) Ensuring Data Integrity

Besides, drawing insights from the data, data scientists spend a great deal of their time verifying the data in their care and ensuring it is accurate and consistent.

Blockchain can relieve analysts of this tedious task by vetting this data before it’s recorded in the extensive data chain network. It, therefore, solves the persistent cases of inaccurate, repeated, and incomplete data and makes it easier to draw credible insights from the data. While verifying each dataset, blockchain technology also enhances transparency, given that any data recorded within the network can be traced.  

III) Allow Individuals to Monetize their Data

In today’s information age, data is the single most valuable commodity traded by giant tech companies as well as small enterprises. However, the owners of the data rarely benefit from this trade. They are reduced to mere data sources, while enterprises pocket all the profit from selling their data.  

This practice is about to change with the introduction of blockchain to Big Data. The technology is set to democratize data ownership, allowing consumers to regain absolute control of their data. Data monetization can be supported through a token-based economy or discount on products in exchange for personal data. 

Eventually, blockchain will create marketplaces where individuals can trade data directly with businesses. Unlike the current data market, blockchain marketplaces will be more transparent, allowing individuals to see how their data is being used even after the transaction has taken place. 

IV) Manage Data Sharing

As a decentralized ledger system, blockchain allows parties within a network to share data without the security risk factor. As such, it’ll be easier for, say, banks and hospitals to share an individual’s data effectively, improving service delivery. Additionally, the coordinated data sharing eliminates the cumbersome Know Your Customer (KYC) processes, saving institutions money and time. 

Even within an organization, data sharing will be seamless with the use of blockchain solutions that eliminate data silos. As a result, departments within an organization will collaborate efficiently to improve productivity. 

V) Real-Time Data Analysis

Blockchain in payment systems is used to facilitate real-time transactions. Today, there are several fintech innovations that use blockchain to process fast and real-time settlements of huge sums, irrespective of geographical barriers.

In the same way, blockchain-enabled systems can be used by organizations that require real-time analysis of large scale data to improve their services. For instance, if banks were to use these systems, it would enable them to observe changes in data in real-time and make quick decisions, such as block fraudulent transaction attempts or track irregular activities. 

VI) Predictive Analysis

Data stored on a blockchain network can be analyzed to give valuable insights, much like any other form of data. Considering the accuracy and security of blockchain data, the analyses derived from this type of data are more accurate than those from traditional data management systems. 

Additionally, owing to the distributed nature of blockchain and the huge computational power it offers, data analysts, even those in small organizations, can engage in extensive data analysis tasks. By leveraging the accuracy of the data stored therein, the computational power of the blockchain, and its resourcefulness, data analysts can predict and forecast different aspects of the business with utmost accuracy. 

Conclusion

Blockchain and Big Data technologies are set to radically transform the way businesses process and manage large volumes of data. As such, the integration of the two technologies to form a single solution will not only help businesses step up their data infrastructures, but also solve some of the inherent problems that come with managing large databases.

You must, however, appreciate that blockchain solutions in the Big Data industry may not be realized anytime soon due to the growing concern that blockchain application in Big Data is overly expensive. Most tech companies believe it is cheaper to store data on the traditional infrastructures than a blockchain network. This is because blocks can only store and process a limited amount of data, which is smaller compared to the large volumes of data collected per second by current Big Data systems. But blockchain is an ever-evolving technology, and hopefully, it will mature fast enough to address these concerns, allowing for its full implementation in Big Data management. 

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Crypto Daily Topic

Should you Use a VPN for Cryptocurrency Transactions? 

With the growing number of cybersecurity threats, online privacy is becoming a huge concern for most internet users. As such, privacy-conscious users will likely prefer using cryptocurrencies to fiat or debit cards for financial transactions. 

Crypto_VPN | Forex Acdemy

With the growing number of cybersecurity threats, online privacy is becoming a huge concern for most internet users. As such, privacy-conscious users will likely prefer using cryptocurrencies to fiat or debit cards for financial transactions. 

With the growing number of cybersecurity threats, online privacy is becoming a huge concern for most internet users. As such, privacy-conscious users will likely prefer using cryptocurrencies to fiat or debit cards for financial transactions. 

Sure enough, all financial transactions done using digital currencies are cryptographically secured, protecting user privacy and anonymity. Recipients won’t know your identity or any other personal information unless you buy physical goods and have them shipped to your physical address. 

But the security of your transactions is just one part of the whole online privacy equation. As long as your crypto transactions are done over the internet, you still face the risk of being hacked, falling victim to identity theft, and other cybercrimes. Now, this is where a VPN comes in. 

But first, let’s understand how a VPN works. 

What is a VPN? 

A virtual private network (VPN) service is a programmed security tool that encrypts data being transmitted over the internet. The tool secures your privacy by routing your internet traffic through an encrypted channel, making it hard for third-parties, the government, and even your internet service provider (ISP) to intercept or read your online data.

In other words, the sources and destination of your data are masked when using a VPN. This is especially important if you are using public WiFi to access the internet. At this time, you are highly vulnerable to third-party traffic interceptions who may exploit your personal data. 

Vpn Forex Academy

On a regular network, all your online activities can be traced back to you using your computer/smartphone IP address. The address functions pretty the same way as a home address in that it helps identify your exact location. However, when using a VPN, your real IP address is concealed then you’re assigned a new mock IP address enabling you to bypass geo-restrictions. This means your online activities can’t be traced to your exact physical location. 

Why You Should use a VPN for Cryptocurrency Transactions

Now that we understand how a VPN works, it’s easy to see how it adds an extra layer of security when using cryptocurrencies. Let’s break down why you need to use a VPN when transacting in cryptos over the internet. 

I) Sending Cryptos to other Hot wallets

One of the easiest ways for a hacker to steal your cryptocurrency is by exploiting security loopholes in your hot wallet. Whether you’re sending digital currencies to an exchange site or to another party that you are in business with, your wallet and public key address can easily be identified. With this information, all your transactions can be monitored and even intercepted to gain access to your hot wallet. 

The security loopholes stem from the fact that hot wallets and most cryptocurrency transactions are done over the internet. As such, hackers can leverage their expertise to prey on your activities online and even steal your personal information.

Using a VPN, in this case, can help encrypt your online transactions by encrypting data on both ends. That is to say, transactional data between your device as the sender, and that of the receiver cannot be intercepted in any way. Even when using a public WiFi network to carry out the transaction, your activities are hidden from third-parties’ preying eyes. 

II) Using Decentralised Apps

On the bright side, decentralized apps such as decentralized exchanges and DeFi tools, do not request users to provide identifying Know Your Customer (KYC) information. From a privacy and security front, users are protected from hacks and personal data theft. But even with this security advantage, users’ activities can still be monitored by identifying their unprotected IP address. You can keep your actual location under wraps by leveraging the ability of a VPN to conceal your real IP address. This way, your activities will be completely invisible, making you less of a target of cybercriminals. 

III) Bypassing Internet Firewalls

In the few countries where cryptocurrencies are completely illegal, the government places a geo-restriction, barring any cryptocurrency transactions within the country’s borders. Even those using digital currencies within the country can easily be traced by the government and charged for violating the crypto ban. 

However, using a VPN, your connection is routed to a remote server that virtually puts you in a different geographical location. As such, your new location won’t be under the geo-restriction even when you’re actually located in a country that has imposed the geo-block. This way, you can freely transact in cryptocurrencies without detection. 

In a good number of countries, using cryptocurrencies is legal. But this doesn’t mean that the government is friendly to the idea of blockchain and cryptocurrencies altogether. As such, the regulators have been known to keep tabs or monitor the transactions of those using digital currencies. If you are concerned about your privacy, the idea of the government monitoring your transactions won’t sit right with you. 

Which VPN should you Use

The VPN market is flooded with numerous providers touting their services to be the best in the market. While indeed some offer superior privacy protection, a good number of them should be avoided.  

For starters, steer clear of free VPN services for the simple reason that these providers tend to fund themselves by selling users’ private data to governments and advertisement agencies. On the other hand, paid VPN fund their services and infrastructure from the subscription fees paid by the users and have no reason to sell personal data. 

Additionally, the headquarter of a VPN service determines its commitment to protecting users’ data. A VPN operating from one of the 14-Eyes Alliance countries can be forced by the law to provide a user’s data since these countries often conduct mass surveillance programs. A VPN service provider based in privacy-friendly countries such as the British Virgin Islands, Panama, and Switzerland can be trusted to keep their client’s data private. In fact, these privacy-friendly countries have imposed laws restricting companies from recording any personal data of the users. 

Other useful features you should consider when choosing a VPN include a kill-switch function that terminates your internet connection if you encounter any problem connecting to the VPN. The provider should also have a transparent no-logs policy, meaning that they won’t record any of your online activities. Also, be sure to check if the VPN provider accepts cryptocurrency payments, just to add a little more security and privacy. 

Conclusion 

There’s no doubt that cryptocurrencies are an ideal way to protect your online financial transactions. While they offer a certain degree of anonymity, users can still fall victim to cybersecurity attacks from the fact that they are connected to the internet when transacting cryptos. So, be sure to use a VPN service to keep your transactions under wraps while at the same time protecting your devices from malware. 

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Cryptocurrencies

Nexo Crypto Review: Nexo Tokens, Nexo Lending Platform & How It Works

The advent of blockchain and cryptocurrencies brought with it a ton of possibilities for the global finance industry. Gone are the days when banks and other financial institutions dominated the finance lending space. Thanks to blockchain, decentralized finance (DeFi) is now possible, and virtually anyone from all around the world can take part in the global financial system – and all they need is an internet connection. 

The advent of blockchain and cryptocurrencies brought with it a ton of possibilities for the global finance industry. Gone are the days when banks and other financial institutions dominated the finance lending space. Thanks to blockchain, decentralized finance (DeFi) is now possible, and virtually anyone from all around the world can take part in the global financial system – and all they need is an internet connection. 

The advent of blockchain and cryptocurrencies brought with it a ton of possibilities for the global finance industry. Gone are the days when banks and other financial institutions dominated the finance lending space. Thanks to blockchain, decentralized finance (DeFi) is now possible, and virtually anyone from all around the world can take part in the global financial system – and all they need is an internet connection. 

Nexo is a blockchain-based project that is fulfilling this promise by making it possible for individuals to access such financial services as loans while using their crypto assets as collateral. Individuals from over 200 countries can use their cryptocurrency to receive loans in 45 Fiat currencies – and all this in a transparent, automated, and tax-free process. 

But what is Nexo, and how does this lending platform work? We review this blockchain project to answer these questions and tell you everything else you need to know about the Nexo crypto-lending platform.

What is Nexo? 

Nexo is a blockchain-based lending platform that advances loans and financial assistance to different crypto holders. For the longest time, the crypto market was underexploited, and the only viable method of gaining from one’s crypto assets was by speculating their prices on the market. Nexo, however, seeks to change this by providing crypto investors with a platform where they can issue and borrow crypto loan services while using different crypto assets as collateral. 

Nexo is a product of Credissimo, a Europe-based fintech company launched in 2007. The company is one of the most well established and trusted brands in the online lending space. On their website, they claim to have 73% customer return rate, disbursed over 102, 800 loans in 2019, and maintains a portfolio of 370, 000 unique customers. 

How Does Nexo Work? 

Nexo leverages the blockchain network by providing users with instant lending solutions. With Nexo, crypto holders can get Fiat loans and set up their crypto assets as collateral. It makes it possible to monetize your crypto assets and remain liquid without losing ownership of the investment. The loans are forwarded to the borrower’s bank or debit card.

Nexo How it works - Forex Academy

Nexo is a wholly automated and highly versatile platform with a straightforward lending system.

All you need to do is deposit your crypto assets, access your Fiat loan, and repay it at your convenience. You can repay this loan with fiat, crypto, or a combination of both currencies. There are no minimum repayments with fiat. However, if you are paying back in crypto, the minimum repayment deposits are 0.0025 for Bitcoin, 0.025 for Ether, 32.00 for Ripple, 5.00 for TrueUSD, and 5.00 for USDC. See here the full list for minimum crypto repayments. 

In addition to loans, Nexo also offers its clients with a savings account with an ROI of 8% for stablecoins and fiat currencies. The platform has partnered with BitGo, a digital asset trust to secure all crypto funds. Currently, Nexo supports Bitcoin, Ethereum, Pax Gold, Ripple, Litecoin, Binance, Stellar, NEXO, Bitcoin Cash, EOS, and various stablecoins. 

The Nexo product is available globally – except for a few countries like Bulgaria, Cote d’Ivoire, Myanmar, Iran, Iraq, North Korea, Libya, Syria, and Zimbabwe.

More importantly, Nexo enables you to avoid capital gains taxes even if you live in countries with crypto tax legislation. On their website, Nexo argues that “when you take a crypto loan and spend that loan, you avoid paying any capital gains taxes, which otherwise in many countries you have to pay when you sell your crypto.”

Who Can Use Nexo? 

The NEXO platform is a pretty open platform. Any of the following individuals/entities can utilize NEXO services. 

  • Investors who desire to make profits off their crypto assets, while still maintaining ownership of those assets
  • Businesses of all sizes
  • Crypto miners
  • Hedge funds
  • Pension funds

The Nexo Oracle 

The Nexo Oracle is the technology that drives almost all of Nexo’s functionalities. Some of its core strengths include:

I) Developing loan contracts

The Oracle picks up and automates all the processes after a credit line application is initiated. This includes disbursement of funds, asset monitoring, notifications, and the overall administrative procedures of the loan. 

II)  Developing and maintaining real-time data

The Oracle aggregates data from at least six independent exchanges to perform accurate, real-time data aggregation to minimize the risk for both the platform and users. It also detects market moves and readjusts loan limits accordingly. If an asset increases in price, the Oracle automatically increases the loan limit. 

III) Maintaining an analytics module

The Oracle automatically records and manages all interactions with clients – including loans, repayments, outstanding balances, and accounts. 

IV) Conducting auto-notifications

All of Nexo’s processes are automatically executed, and this includes sending notifications to clients. 

V) Developing prediction modeling and algorithms

Nexo utilizes big-data analysis, automated algorithms, and predictive modeling techniques to realize the smooth running of the system. This helps ensure that information aggregated from outside sources is used appropriately and promptly. 

The Nexo Team

Nexo involves a core team of 14, who hold influential positions in Credissimo. Chief managing partner Kosta Kantchev is the co-founder of both Nexo and Credissimo. 

Antoni Trenchev is the managing partner and also co-founder of Nexo. Trenchev is a former member of the National Assembly of Bulgaria and has a background in e-commerce development, strategy, and processes.

Georgi Shulev is also a managing partner and co-founder of Nexo. Shulev has long-running experience in investment banking and is the co-founder of Consestimate – a financial estimate platform where investors share ideas and forecasts with peers and identify the “fundamental value of public companies.”

The NEXO Token 

Nexo token - Forex Academy

The NEXO token is the native token of the Nexo platform. And the Nexo project creators define the token as a security instrument that’s compliant with the United States Securities and Exchange Commission (SEC) regulations. The Nexo platform incentivizes users to hold the NEXO token by paying out dividends derived from loan returns. Here, 30% of loan returns are channeled to a dividend pool and distributed to the coin holders. 

At the time of writing, the coin is trading at $0.122583, ranking at #81 in the market. It has a market cap of $68,646,212, and a 24-hour volume of $4,089,490. The coin has a circulating supply of 560,000,011, with a total supply of 1,000,000,000 Nexo Tokens. The coin’s all-time high was $0.539466 (May 07, 2018), with an all-time low of 0.043333 (Sep 12, 2018). 

Where to Buy and Store NEXO

You can purchase NEXO from several reputable exchanges, including IDEX, Huobi, Coinswitch, YoBit.Net, Huobi, Binance, HotBit, and Changelly. The majority of these will require you to trade other cryptocurrencies, such as Ethereum and Bitcoin, to get  NEXO. 

NEXO is an Ethereum-based token, meaning it can be stored in any Ethereum-compatible wallet such as MyEtherWallet, MetaMask, Ledger, Trezor, or Atomic Wallet.

Final Thoughts

Nexo brings real value and utility to crypto users and the crypto space. Users can leverage their crypto holdings to gain access to Fiat loans without the plethora of the terms and conditions of traditional finance. Nexo users can also earn passively by keeping their money on Nexo and letting it work for them. It will be interesting to see how Nexo advances as a platform and how its offerings will continue to evolve. 

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Cryptocurrencies

Enjin Coin: How is Blockchain Impacting the Gaming Industry?

Blockchain was ideally developed to facilitate a rather simple purpose: to power a decentralized, peer-to-peer, and ultra-secure digital currency – Bitcoin. In the beginning, no one could have conceived the sheer power that the technology wielded, or predicted the technological revolution it would inspire a decade or two later. From healthcare to the food industry, banking finance to gaming, blockchain is impacting virtually every industry. 

Blockchain was ideally developed to facilitate a rather simple purpose: to power a decentralized, peer-to-peer, and ultra-secure digital currency – Bitcoin. In the beginning, no one could have conceived the sheer power that the technology wielded, or predicted the technological revolution it would inspire a decade or two later. From healthcare to the food industry, banking finance to gaming, blockchain is impacting virtually every industry. 

Blockchain was ideally developed to facilitate a rather simple purpose: to power a decentralized, peer-to-peer, and ultra-secure digital currency – Bitcoin. In the beginning, no one could have conceived the sheer power that the technology wielded, or predicted the technological revolution it would inspire a decade or two later. From healthcare to the food industry, banking finance to gaming, blockchain is impacting virtually every industry. 

Enjin Coin is a cryptocurrency project that is taking advantage of blockchain to offer gamers, developers, publishers, and other stakeholders in the gaming industry a fast and safe solution to manage virtual goods and realize real value.

In this piece, we’ll shine more light on this exciting project and discover its offerings to gaming communities.

What is Enjin Coin? 

Launched in November 2017, Enjin Coin (ENJ) is a cryptocurrency and Ethereum-based blockchain platform that allows game developers to integrate crypto features into games and apps without necessarily having blockchain skills. As stated in the project’s white paper, ENK is “a cryptocurrency (ERC20 Token) and smart contract platform that gives game developers, content creators, and gaming communities the required crypto-backed value and tools for implementing and managing virtual goods.”

Wat is ENJIN coin - Forex Academy

Enjin company was established in 2009 and has, for the past decade, been empowering game lovers to derive more value from the game industry. It is committed to helping game companies increase revenue and maintain a competitive edge in the industry. 

With ENJ, Enjin hopes to be an industry leader in what it sees as an inevitable transition into a blockchain way of doing things in the long run. The Enjin coin platform comprises a suite of software development kits (SDKs) that game developers can use to integrate blockchain-based solutions into gaming. The blockchain initiative will go a long way in reducing the high fees and reducing the lack of transparency that is so rife in the gaming industry.

The coin had its pre-sale in August and September 2017 and raised over $12 million worth of Ether (38,800 ETH). The pre-sale was closely followed by the public sale, in October 2017, where the project raised an additional $23 million. 

How Does Enjin Coin Work?

Enjin Coin is an ERC20 token that runs on the Ethereum blockchain. This makes the platform a cryptocurrency and a smart contract platform. The project is also looking to adopt the Raiden network – Ethereum’s version of the Lightning Network. Its key operational features include:

1. Virtual Goods

Thanks to Enjin Coin, game developers will be able to create tokens for different game communities – using Enjin Coin as the parent currency. This lends the tokens the benefits of crypto (speed, safety, security, and low fees) while maintaining the uniqueness of their respective platforms. These tokens can be exchanged for ENJ at any time. 

Virtual goods can be pretty much anything used in the gaming world, including entire planets, swords, guns, spaceships, cosmetic upgrades, castles, and gaming characters. These virtual goods have real-life value, thanks to Enjin Coin serving as their parent currency. The process by which users create virtual goods via Enjin Coin is referred to as minting. Users can mint goods with whichever quantity of ENJ. The more coins you use to mint an item, the more value it will possess. 

Gamers can acquire these virtual goods either by purchasing or during giveaways, promotions, or rewards. They can also trade/exchange them in a safe, secure, and fraud-free environment. For instance, you can exchange a gun for a planet, sell a spaceship for ENJ, buy a character with ENJ, etc. 

These goods are safely kept in a decentralized and uncensorable environment – and are thus not controlled by anyone. This means you get to own and control your virtual goods, as well as have the ability to prove ownership. This is important, especially if the game or server suffers a malfunction or your account gets hacked.

2. Payment Gateway

The Enjin Coin platform also features a payment gateway that allows users to create customized shopping carts, manage invoices, refunds, emails, and text notifications. It also includes a widget through which you can accept ENJ and any other type of coin payments. Transactions cost is low, and there are no hidden charges.

The platform’s Smart Wallet (more on that below) allows you to execute automatic payments for games from websites that you have listed as ‘Trusted Platforms.’ This feature injects more speed and trust in transactions.

3. Smart Wallet

Enjin Coin’s ‘Smart Wallet’ provides support for a lot of the platform’s functions. First off, it facilitates payments via Trusted Platforms and allows you to exchange currencies and virtual goods outside of your gaming account to any other Smart Wallet user. You can also initiate transactions through the ‘Transaction User,’ as well as create settings and thresholds that can automatically block illegitimate transactions.

Smart Wallet features a “top-of-the-line” security infrastructure complete with a 12-word recovery phrase that enables you to recover your funds in case you forget the password for your Wallet. Additionally, the Wallet has its own proprietary virtual keyboard that further guards against data sniffing. It also deletes any and all sensitive info after transactions, rendering it safe even if it were to be hacked.

4. Efinity

Enjin Coin plans to unveil Efinity – a technology like Bitcoin’s Lightning Network, which features multiple game channels that will allow games to handle infinite volumes of transactions blazingly-fast and with near-zero transaction fees. These transactions will be trustless, blockchain-verified, and support millions of players at any time. Other functionalities will be:

  • Token transfers and approvals
  • Melting tokens
  • Escrow capability
  • Metadata for game items
  • Token bundles
  • Non-fungible tokens
  • Whitelist feature for bound tokens

Can Enjin be Integrated with the Actual Game? 

Yes. The Enjin Content Management System supports plugins that can integrate with the majority of players’ favorite games. Some of the popular games supported today include Dissolution, Forgotten Artifacts, Shield of Shalwend, Age of Rust, Forest Knight, War of Crypto, Battlefield 1, World of Warcraft, Cats in Mech, Afterverse, The Six Dragons, Space Misfits, and Minecraft.

What’s Enjin Coin’s Future Prospects? 

Enjin Coin may be relatively new to the gaming industry, but several factors point to its future success as a cryptocurrency project.

These include:

  • An already existing marketplace trusted by millions of gamers across the globe.
  • ENJ is an ERC-20 token that enjoys multi-exchange and multi-wallet support. Apart from ERC-20, Enjin also supports ERC-1155 smart contracts that enable the tokenization of both fungible and non-fungible gaming industry assets.
  • It has secured a partnership with industry heavyweights such as Samsung, Unity, PC Gamer, Ubisoft, NRG, and other trusted sports brands. 

Tokenomics of Enjin Coin

As of May 26, 2020, Enjin Coin is trading at $0.194120, with a market cap of $159, 133, 893, while ranking at #44 in the overall crypto market, according to Coinmarketcap. It has a 24-hour volume of $36,370, 221 and a total supply of 1, 000, 000, 000 ENJ. The coin’s all-time high was $0.493384 ( Jan 07, 2018), with an all-time low of $0.015620 (Nov 02, 2017).

Where to Buy and Store Enjin Coin

ENJ is listed on several exchanges, including Binance, Coinswitch, Cointree, Changelly, and KuCoin. Popular exchange Coinbase does not list ENJ.

Being an ERC-20 token, you can store ENJ in any Ethereum-compatible wallet like MyEtherWallet, MetaMask, Mist, and Geth. You could also opt for hardware wallets like Ledger Nano and Trezor. 

Final Thoughts

Enjin Coin provides gamers from all around the world with the blockchain benefits of speed, security, and decentralization. It’s helping inject more transparency in the gaming industry and provide gamers with true and absolute ownership of their virtual goods.

The project already has a solid background of Enjin – a company that is trusted by millions of users across the world. Only time will tell if the project can continue with its streak of success.

Categories
Crypto Daily Topic

Cryptocurrency and Crime: How is The International Community Fighting Crypto Crime

Cryptocurrencies were specially designed to give individuals power and control over their finances. But this big vision has been marred by cryptocurrencies’ association with crime. Such a negative perception threatens to derail cryptos from achieving their intended mission as it attracts the attention of governments and other regulatory agencies. 

Blockchain - Forex Academy

Cryptocurrencies were specially designed to give individuals power and control over their finances. But this big vision has been marred by cryptocurrencies’ association with crime. Such a negative perception threatens to derail cryptos from achieving their intended mission as it attracts the attention of governments and other regulatory agencies. 

Cryptocurrencies were specially designed to give individuals power and control over their finances. But this big vision has been marred by cryptocurrencies’ association with crime. Such a negative perception threatens to derail cryptos from achieving their intended mission as it attracts the attention of governments and other regulatory agencies. 

By hiding behind the decentralized, peer-to-peer, and anonymous nature of Blockchain, many cybercriminals have latched on digital currencies to engage in illegal activities online.

In this article, we explore the parallels between blockchain/cryptocurrencies and crime and how to deal with crypto-crime:

What is the Blockchain?

First popularised by Bitcoin creator Satoshi Nakamoto in 2009, Blockchain is a digital ledger that allows for the creation of immutable, peer-to-peer, and distributed records.

Blockchain-Forex academy

One of the critical features of blockchains is ‘decentralization’ – which makes them autonomous and independent of third-party control and intervention. Decentralization makes Blockchain not just uncensorable but also eliminates the costs associated with third-party intermediaries. 

Cryptocurrencies were the first and are still the most popular application of Blockchain. And thanks to the highly decentralized nature of Blockchain, crypto transactions are not regulated or audited by government authorities. Blockchain also employs the use of private and public keys, as opposed to real-world identities. This makes it challenging to identify the true identity of the individual behind a particular crypto transaction. 

It’s this anonymity/pseudonymity that makes cryptocurrencies highly attractive to cybercriminals. 

The Rise of Crypto Crime

The rise of crypto crime can be traced back to the early days of Bitcoin and to the infamous Silk Road saga. The now-defunct dark web marketplace hosted all manner of criminals and encouraged such criminal activities as money laundering, illegal sale of drugs and firearms, contract hacking, sale of other contrabands, with transactions being carried out in Bitcoin.

silk road - forex academy

The site was eventually shut down by the FBI, and its creator – Ross Ulbricht, sentenced to life in prison. Note that while Silk Road employed numerous anonymization techniques, especially the Tor network. But it was the use of Bitcoin for transactions that highlighted how cryptocurrency could be used to fuel illegal online activities. 

Crypto crimes do not always involve a shady website on the dark web. As crypto becomes more popular, the more crypto crime becomes more brazen and high-tech. Today, Most crypto crimes revolve around ICO scams, cryptojacking, ransomware, money laundering, sim-swaps, and Pyramid/Ponzi schemes. While the majority of these incidents prove to be a new normal that the cryptoverse has become used to, others continue to make the headlines.

Crypto Ponzi schemes are best exemplified by the case of OneCoin, a Ponzi scheme that defrauded investors across the globe around $4 billion. The scheme director Dr. Ruja Ignatova is still on the run, but several other conspirators have since been convicted. 

Another high-profile case of SIM swapping involved AT&T and $24 million worth of cryptocurrency. The telecommunications conglomerate is still embroiled in a legal case with Michael Terpin, a Bitcoin investor, who lost $24 million worth of Bitcoin. Terpin said that an AT&T employee at a Connecticut store transferred his phone number to a new SIM card. The action, he says, made it possible for a hacker to transfer crypto funds to a different account.

Not all crypto crimes are cleverly engineered Ponzi schemes or hid behind the veil of technology. Occasionally, you’ll hear of brazen attacks such as the case in Thailand where attackers kidnapped a tourist and forced him to transfer $100, 000 worth of Bitcoin. In Ukraine, the Exmo crypto exchange’s Finance executive was also kidnapped and forced to transfer $1 million in Bitcoin. In New York City, a man lost $1.8 million of Ether after his “friend” organized for him to be kidnapped with the assailant forcing him to reveal his private key. Yet another case occurred in Instanbul when a businessman was taken hostage by armed assailants who forced him to transfer $2.83 million in crypto.

Fighting Back 

The irreversibility and anonymity of blockchain transactions imply that crypto criminals have almost always gotten away with their loot.

But different institutions are continually coming up with mechanisms aimed at pushing back and helping crypto crime victims. And one such company is Chainalysis that has taken up the role of tracking crypto crimes. 

They achieve this by tracking every public address tied to a particular transaction in the Blockchain. Next, they follow the trail of the funds in the particular address and identify whether they’re moving them across other addresses in crypto exchanges or liquidating them for fiat currency. They compare these transactions with the information provided by fraud victims and work with the authorities to track down perpetrators. 

Other companies have created software that gives authorities the upper hand while investigating crypto fraud. This is the approach taken by blockchain company BitFury, whose software enables law enforcement to track down blockchain addresses that have a high inclination for cybercrime. The software is also capable of producing crypto-crime-specific legal reports. 

These companies are fighting back and debunking the myth that crypto crime is permissible just because of the unhackable and anonymous nature of Blockchain.

Renewed Crackdown

As crypto crime persists, countries have put in place stringent measures aimed at clipping its wings. The U.S. is, for instance, planning to crack even harder on the crypto sector. According to the federal budget proposal for 2021, the United States Secret Service will fall back to the jurisdiction of the Treasury. According to the proposal, this move will, among other goals, address the Trump administration’s intention to “address emerging threats such as the use of cryptocurrencies in money laundering and terrorist financing.”

hacking - crypto - crime - forex academy (Photo by Nahel Abdul Hadi on Unsplash)

The proposal states that “technological advancements in recent decades such as cryptocurrencies and the increasing interconnectedness of the international financial market place have resulted in more complex criminal organizations and revealed stronger links between financial and electronic crimes.”

This move is not unprecedented when you consider the comments of high-profile figures with regards to cryptocurrency. Steve Mnuchin, Treasury Secretary, called Bitcoin a “national security issue,” which has been “exploited to support billions of dollars of illicit activity like cybercrime, tax evasion, extortion, ransomware, illicit drugs, and human trafficking.”

Last year, President Trump tweeted that Bitcoin and other cryptocurrencies “can facilitate unlawful behavior including drug trade and other illegal activity…” 

Switzerland also plans to exact stricter measures on the crypto market through the Swiss Financial Market Supervisory Authority (FINMA). The organ plans to inject more transparency into crypto dealings by requiring transactions valued at over 1,000 francs to be accompanied by Know Your Customer (KYC) info. This is a drastic adjustment to an existing regulation that only required KYC requirements for transactions valued over 5000 francs. FINMA argues that this move is set to check the “heightened” risk of crypto-enabled money laundering.

The shift came about a few days after the European Union implemented its fifth Anti-Money Laundering Directive, which requires all crypto companies in Europe to conduct KYC and AML procedures on all their prospective clients. The directive explicitly states that crypto-related businesses must prove that the owners and senior management are “fit and proper.” 

Final Thoughts

While criminals have been inclined to use cryptocurrency due to its ‘untraceable’ nature, this reality is fast changing. Advancing technology plus new ways of looking at blockchain transactions will help crypto shed its reputation as money for criminals. This, combined with austere regulatory policies, will probably be the beginning in restoring the glory that cryptocurrency deserves. 

Categories
Crypto Daily Topic

The Bart Simpson Phenomenon and Tuesday’s Baffling Bitcoin Drop

On Tuesday, Bitcoin looked like it would finally surge past the hotly-anticipated $10,500. However, the coin ended up plummeting by more than $800 in under only 5 minutes. The sell-off started at 9:45 a.m. ET, when the cryptocurrency was changing hands for$10,137. By 9.49 a.m., the price had dipped to $9,298. At the time of writing, the currency is trading at $9,643.51.

On Tuesday, Bitcoin looked like it would finally surge past the hotly-anticipated $10,500. However, the coin ended up plummeting by more than $800 in under only 5 minutes. The sell-off started at 9:45 a.m. ET, when the cryptocurrency was changing hands for$10,137. By 9.49 a.m., the price had dipped to $9,298. At the time of writing, the currency is trading at $9,643.51.

On Tuesday, Bitcoin looked like it would finally surge past the hotly-anticipated $10,500. However, the coin ended up plummeting by more than $800 in under only 5 minutes. The sell-off started at 9:45 a.m. ET, when the cryptocurrency was changing hands for$10,137. By 9.49 a.m., the price had dipped to $9,298. At the time of writing, the currency is trading at $9,643.51.

Price Manipulation? 

The 4-hour chart, during the period leading up to the drop, as well as the hourly, had formed what’s called the ”Bart Simpson” pattern. This pattern usually indicates probable manipulation caused by whales and institutional players. The pattern occurs when an asset rapidly shoots up or down,  followed by a sideways movement, then a violent move in the opposite direction.

What’s the Bart Simpson Pattern? 

This price action resembles the famous cartoon character Bart Simpson’s head. The name is one of many eccentric memes created by the crypto community. 

The Bart Simpson pattern phenomenon made its debut in 2018 when the Bitcoin market became a bit subdued. Volume and liquidity began to decrease due to declining interest in the cryptocurrency. 

Due to the current uncertain Bitcoin market (more on that later), the low liquidity and low volume trading environment create the perfect recipe for Bart Simpson charts to start appearing again. 

The Bart patterns also sometimes appear in the inverse, with the zig-zag formation occurring at the bottom of a sudden price move before reversing back upward.

Bart Simpson patterns are somehow unique to the Bitcoin and crypto market. And although hilarious, they are a bad sign for the market. Ordinary investors and traders mostly get burned, while big players such as whales and institutional investors go home with huge profits.

What leads to the Bart Simpson Pattern?

There’s consensus in some quarters that the pattern occurs due to a lack of liquidity in the Bitcoin market.

After the 2017 bull run, big investors liquidated their positions, with the majority of them not returning to the market. This led to the price crashing from 5 digits to 4 digits. Pump-and-dump schemes also became commonplace, and whales could sway prices with big enough orders. Add this to the sometimes artificial prices caused by trading bots – which have become popular more than ever.

Do Bart Simpson Patterns Appear in the Traditional Finance Market? 

The answer is yes, and no. Since early 2018, the cryptocurrency market started a downward trend. In January, the total crypto market capitalization was at an all-time peak of $800 billion. Through the following months, this steadily decreased. On October 23, 2018, 54% of the total market cap of the entire crypto market was Bitcoin’s. This is comparable to the market cap of companies such as McDonald’s and IBM. As you can see, it’s difficult to compare the traditional market with the crypto market, especially due to the mostly poor participants and emerging factors like regulation of the crypto market. 

Also, a market where participants can make massive orders provides a fertile playground for price manipulation. In the crypto market, investors can enter such orders due to the lack of regulation. Also, there are looser thresholds for entering the crypto market. Plus, the execution of trades in the traditional markets is more rational and controlled. For instance, there are ‘circuit breakers’ and other mechanisms that put a halt to trading as soon as certain thresholds have been reached.

There’s also the existence, in the traditional market, of financial intermediaries that help traders achieve optimized trading that does not affect prices, avoiding Bart Simpson patterns.

How Bart Simpson patterns Affect The Market

Bitcoin ETFs: Events like these, together with similar ones, are partly why the Securities Exchange Commission refuses to approve Bitcoin ETFs. The truth is that the total market is still unstable and can be easily manipulated. In a way, the crypto market is the whales’ playground. They can send the prices up or down whenever they so wish.

Miners: Price manipulation that results in Bart Simpson patterns affects miners. When prices go down, profitability does too. The money they make might not be enough to cover their costs.

Tips to Survive Bart Simpson Patterns

  • If your goal is to go long in the medium-term or long-term, these patterns will affect you less
  • If you are a short-term trader, you may consider having stop-loss orders
  • If you notice a sudden move followed by a consolidation, know that the price can quickly move the other direction

Difference on BitMEX

BitMex recorded the lowest drop, with the currency dropping to $8600. Bitstamp hit a low of  $9135. The majority of the lows were between $9350 – $9100. The dramatic difference in Bitmex could have been due to slippage and cascading liquidations. The crash caused $100 million long liquidations on the exchange.

Bitcoin’s $10,500 Surge Is Rejected Again 

This was the third time in recent months when buyers failed to take the price past the $10,500 mark. The crypto has struggled to break past the resistance level three times the past eight months. 

The number one cryptocurrency hit $10, 500 in October 2019. In 4 weeks, it had dropped to $6, 400. In February this year, the crypto attempted to surpass the level again. But it took a violent dip to $8,400, before falling even further to $3,600 in the following four weeks. 

After its failure to cross the same level for three consecutive times, Bitcoin’s investors and enthusiasts are asking themselves if the coin will break anytime soon. Many are wondering if BTC will initiate a bull trend and test even higher resistance levels of $11,500 and above. The question is even more pertinent when you consider the intensity of the falls, and how the market has shaped up generally in recent months. 

Categories
Cryptocurrencies

Synthetix: How Does this DeFi Platform Work?

Satoshi Nakamoto’s vision for Bitcoin was money that could not be controlled by governments and regulators. Little did he know, though, that the underlying technology of Bitcoin – blockchain, wielded so much potential for the realization of this goal in a way that Bitcoin itself (alone) could never accomplish. 

Satoshi Nakamoto’s vision for Bitcoin was money that could not be controlled by governments and regulators. Little did he know, though, that the underlying technology of Bitcoin – blockchain, wielded so much potential for the realization of this goal in a way that Bitcoin itself (alone) could never accomplish. 

Satoshi Nakamoto’s vision for Bitcoin was money that could not be controlled by governments and regulators. Little did he know, though, that the underlying technology of Bitcoin – blockchain, wielded so much potential for the realization of this goal in a way that Bitcoin itself (alone) could never accomplish. 

Thanks to the blockchain network, we are now experimenting with the idea of a decentralized finance industry – whose vision is to empower all economically – regardless of race, origin, or social status. 

Synthetix is a decentralized finance platform that makes it possible for anyone with an internet connection to access a wide variety of financial assets: from Fiat currency to gold, Bitcoin, commodities, and precious metals – without the need for costly brokers or intermediaries. 

But what is Synthetix, and how does this decentralized platform work? We answer these questions and everything else you need to know about Synthetix here. 

What is Synthetix? 

Synthetix is a decentralized finance platform built on the Ethereum blockchain. It hosts tokens, commonly referred to as Synths, that are tied to the value of liquid assets like stocks, real-world currencies, cryptocurrencies, commodities, indices, and precious metals. These assets are held in the form of ERC-20 tokens. 

Synthetix started as ‘Havven,’ a stablecoin project, before rebranding to the current name. The platform’s native currency is known as the ‘SNX’ token. SNX powers the creation of Synths, as explained by the platform’s creators: “The platform uses a token called SNX (the Synthetix Network Token), and holding this token allows you to create Synths. You do this by locking SNX into a smart contract and minting Synths against this value. To ensure Synths are fully booked, the system will only allow you to issue a fraction of the SNX value you lock.”

The question you’d ask is: “Why would I hold a synthetic asset instead of the real-life asset?” Well, the main reason an individual would hold a synthetic asset is to receive a benefit that the asset itself would not provide. This could range from getting access, e.g., to gold – without the real-world implications of custody, or wanting to gain liquidity for an asset that will be hard to sell quickly enough in the real world. Synthetix users do not only get this, but they get to do so on a decentralized, peer-to-peer, and transparent platform. 

How Does Synthetix Work?

The Synthetix platform utilizes two types of tokens: the main token known as Synthetix (SNX), and a second token known as Synth. Synthetix works in a pretty straightforward manner. 

Users purchase and lock SNX in their wallets. They can then create Synths, which will track the real-life price of the assets. The price of a Synth is arrived at via oracles provided by the Chainlink network. Users can also trade Synths via the Synthetix Exchange. This allows them to convert these tokens into a form whose price they can track in different ways. For instance, there is ‘sBTC,’ which allows individuals to track Bitcoin prices, as well as iBTC, whose price moves contrarily to that of Bitcoin. 

By virtue of holding Synth tokens, Synthetix users have access to endless possibilities in trading, hedging, remittance of funds, making payments, and building a portfolio.

Whose Idea is Synthetix? 

Synthetix is the brainchild of crypto payment company blueshyft CEO Kain Warwick. Warwick conceived the idea of Havven in 2016 when looking for a solution to solve the issue of arbitrage in crypto prices in smaller crypto markets like Australia and Korea.

How Does Synthetix Remain Collateralized?

The primary concern on the same platform is what will happen if Synths began moving inversely with the underlying SNX tokens. How would the system stay collateralized if, say, the price of SNX is falling, while that of Synths rising? 

Thankfully, the platform is designed to have infinite liquidity, which, when combined with various features baked into the system, maintains the collateralization of the platform. Below, we’ll take an in-depth look into each of these features.

#1. The Requirement of 750% Collateralization

For the Synthetix system to issue new Synths, it needs to have collateralization of at least 750%. The collateral cushions the Synths in circulation from unexpected price swings.

#2. Debt-driven

Synthetix is designed in a manner that when a user mints Synth, their SNX collateral is locked up – with the Synths acting as outstanding debt. If you want to unlock your Synths, you first need to offset your debt by burning Synths that are equivalent to the value of the Synths they had issued earlier.

The minimum of 750% in collateral ensures that users can easily buy back and sell their own debt if they so wish.

#3. Debt Pools

On the Synthetix platform, there is personal debt for users who have created Synths. But there is also a universal debt underlying all the Synths in circulation. 

A user’s personal debt is calculated as an ever-in-flux percentage of the total Synths issued, together with the exchange rates of the underlying asset and that of the issued Synths. 

This means Synth issuers do not need to pay back their debt with the exact type of Synth that they minted. An individual who issued a Synth can repay the debt with any other type of Synth, provided it’s equal in market value to the Synths they wish to burn.

This mechanism lends the system ‘infinite’ liquidity, which also enables endless shifts between Synths – without upsetting the system’s balance. 

The Synthetix Exchange

Synthetix blockcian logo | Forex Academy

The Synthetix decentralized exchange allows users to buy and sell Synths via smart contracts, removing the need for counterparties or third parties. Anyone can access via a web3 wallet, allowing them to easily and quickly buy or sell Synths and SNX tokens. 

All exchanges have a fee of 0.30%. The fees are given to SNX holders as a reward for providing collateral for the Synths in circulation. 

Synthetix’s Monetary Policy

The Synthetix system also has a monetary inflation policy for SNX embedded in the code, with the total supply of SNX in circulation increasing in a five-year span – from 2019 to 2024 –  from 100 million to 250 million. 

This monetary policy was not originally part of the system. It was added when it became apparent that the exchange fees from Synth transactions were too low to incentivize SNX token holders to hold up SNX as collateral.

The additional SNX will be distributed among SNX holders who have held their SNX as collateral. This will incentivize users to contribute to the system and support the network before it’s robust and independent enough for everything to run as intended. 

Another benefit of the inflation policy is that it will make the network more secure by automatically adjusting that collateralization ratio by the adding of extra collateral to SNX holders.

Synthetix’s Exchange Fees and Staking Rewards

Anyone can buy SNX, mint Synth, and take on its debt. This qualifies one to become a staker in the Synthetix ecosystem and start collecting staking rewards  – which are a percentage of the exchange fees – set at 0.3% for every transaction.  

All exchange fees are transferred to a collective pool, after which they are distributed to SNX token holders in proportion to their outstanding debt. In this way, users can increase their staking rewards by simply increasing their SNX issuance. 

However, users can only claim to stake rewards if their collateralization ratio is above 750%. This is meant to incentivize users to actively maintain a personal collateralization ratio of 750% or above, which helps to maintain liquidity of the network.

Tokenomics of Synthetix 

SNX is currently ranking at #49, with a market cap of $146, 971, 014, and a circulating supply of 181, 454, 898. It has a total supply of 182, 701, 142, with a 24-hour volume of $995, 620. The token has an all-time high of $1.57 (24th Nov 2019) and an all-time low of $0. 032420 (5th Jan 2019). 

Where to Buy and Store Synthetix

You can purchase or exchange cryptocurrency for SNX in any of several popular exchanges, including Coinbase, Bittrex, gate.io, Liquid, and Kucoin. 

As an Ethereum-based token, SNX and Synths can be stored in any Ethereum-compatible wallet. Popular options include MyEtherWallet, MetaMask wallet, Ethaddress Wallet, Ledger Nano, Guarda Wallet, Atomic Wallet, Trezor, Sugi, Keep Key, and Jaxx Liberty. 

Conclusion

The Synthetix platform offers a decentralized, peer-to-peer, accessible-for-all platform where users get exposure to all kinds of real-world assets without the burden of acquiring ownership and other barriers. The platform has the potential to create a powerful tokenized asset platform that can shake the whole financial market. The success of this platform will be a part of Satoshi’s grand vision, even if not in the way that they envisaged it. 

Categories
Crypto Daily Topic

Rare Bitcoin Stale Block Raises Double-Spending and Immutability Concerns

It is now common knowledge that Bitcoin was not only the first cryptocurrency in history, but the blockchain network on which it runs is the most secure in the world, thanks to its ever-growing hash rate.

Stale bitcoins 2020 - Forex Academy

It is now common knowledge that Bitcoin was not only the first cryptocurrency in history, but the blockchain network on which it runs is the most secure in the world, thanks to its ever-growing hash rate.

It is now common knowledge that Bitcoin was not only the first cryptocurrency in history, but the blockchain network on which it runs is the most secure in the world, thanks to its ever-growing hash rate.

Part of the reasons it won the crypto community’s confidence as well as that of many non-techy savvy individuals is that it has core features of money: trusted, scarce, durable, divisible, and widely accepted. There is, however, another feature that is just as important because it is digital and not physical currency: the same money cannot be spent twice.

But what would be your perception of Bitcoin if you learned that Bitcoin is not immune to the double-spending problem? On January 27th, 2020, some money on the Bitcoin blockchain network was double-spent after one of the blocks in the Bitcoin blockchain turned stale according to a tweet by @BitMEXResearch.

Does an incident like this shake your confidence in Bitcoin and crypto in general?

The Crypto Stale Block and Double-Spending Problem

On the day that the first case of Bitcoin double-spending was recorded, October 2019, Bitcoin Gold (BTG), another cryptocurrency, suffered a 51 percent attack. By the time it ended, about 7,167 BTG or about $72,000 had been double-spent. In the case of Bitcoin, a single instance of stale block resulted in the double-spending of about $3. This may not be as bad as the case of BTG, but to understand how it happened, we have to take a step back and look at how computers work.

data transfer between computers - forex academy (markus-winkler-cV9-hOgoaok-unsplash)

Data transfer between computers is speedy, but it is not instantaneous. The time it takes for one computer to transmit data to another depends on many factors besides connectivity. The geographical distance between the two machines, for instance, plays a critical role.

Data sent from computer A would take slightly longer to reach computer C, which is physically farther from computer A compared to computer B, even if by microseconds. In some cases, such communication delays may cause conflicts on the Bitcoin network, resulting in the production of stale blocks.

What Is A Stale Block?

According to bitcoin.org glossary, a stale block in blockchain refers to a block of transactions that is successfully mined but not added to the current best chain of blocks. The primary cause of stale blocks is that another block was added to the chain faster than the first one could be added, often due to network delays. The recent Bitcoin stale block that led to a $3 double-spend was the result of the stale block not being added as the next block despite having verified the included transactions.

In technical terms, a block of transactions on a blockchain network becomes stale when two nodes on the chain, often located a distance apart geographically, solved the computation for the next valid block on the chain at almost the same time. When two miners each find the next block at the same time and send the information to the blockchain network, there will be a disagreement on the network for about 10 minutes or so regarding which block was actually mined first. 

Considering that every Bitcoin node and every miner keeps a copy of the blockchain, it is not uncommon for some nodes in the network to favor one of the two blocks and other nodes to favor the other block. Such a situation, however, is often resolved automatically when the next block is mined and added to the chain.

This means that nodes that accepted the block that eventually was not continued would have to throw out their last block because it is ‘stale.’ Ultimately, the system resolves such conflicts by favoring the ‘most work’ chain, or the longest chain. It is only fair that the chain with the blocks on which more work has been done wins the standoff.

Was Bitcoin Actually A Double-Spent Due To A Stale Block?

BitMEXResearch divulged the details of the Bitcoin stale block and revealed lots of details that left many people with more questions than answers. The block, mined by Poolin, had a size of 0.98MB and was mined less than half a second after the winning block created by BTC.com was mined.

The stale block was promptly orphaned, meaning that it was not added into the blockchain network. What is revealing is that the block had a total of 39 transactions on it when it was validated, but only 38 were included in the next block. The one transaction had an input of 0.00034801 (about $3), an amount that may have been double-spent.

There has been raging debate whether the $3 from the stale block was double-spent. This would be entered into the official records as a double-spending regardless of whether the transaction was a success or not. What is important here is the number of confirmations that the recipient will get. A double-spending would mean the recipient would receive two confirmations; otherwise, they will see two conflict transactions in the mempool.

Confirmations on the Bitcoin blockchain often vary, but a transaction is considered true and not a case of double-spending or stale block after more than one confirmations. Some experts argue that on the Bitcoin network, a single confirmation is not enough; three confirmations are a good number, although it may be more especially if the amount in question is high.

Bitcoin’s Stale Block Matter Raises Questions on Its Immutability

John Adler, the co-founder of Fuel Labs based on Ethereum, is a self-proclaimed “Blockchain skeptic” who insists that such a case as a stale block witnessed in January is proof that the Bitcoin network is not immutable, and thus unreliable as a digital money platform. He argues that the orphaning of a legitimate blockchain block violates Bitcoin’s “immutability” property, and in the process, proves that the ‘Nakamoto Consensus’ guarantees no consistency. Without consistency, he argues, you cannot guarantee immutability in the long term.

Bitcoin developers seemed to put the matter to rest, arguing that John’s view of immutability is naive and that such kind of immutability is not what makes cryptocurrencies work. Bitcoin’s immutability, argued Bitcoin Core developer Bryan Bishop, is a high number of transaction confirmations that make it exponentially hard to reverse or alter a transaction. 

One way that double-spending is significantly reduced in case of such an occurrence is by relying on the number of transaction confirmations. It would be dangerous to rely on only a single confirmation because it would have resulted in double-spending in the case on point. The norm is three or more confirmations, which significantly reduces the chances of a successful double-spending. 

It became clearer that immutability in cryptocurrency ought to be viewed in terms of probability, and in particular, increasingly low probabilities as the chain grows longer and mining becomes more difficult. The probability of stale block in the Bitcoin network drops with time, but it is not uncommon for two competing mining pools to complete mining a block header at almost the same time, something that happens every few months.

The last time this occurred on the Bitcoin blockchain was in October 2019 when BTC.com and its competitor Bitmain Antpool produced two blocks of transactions at virtually the same time, rendering one stale.

How Serious Is the ‘Stale Block’ Problem?

Computer security expert Jon McAfee, another Bitcoin skeptic, is on record describing the cryptocurrency as “true shitcoin” and “stale” because he believes such cases as stale blocks are bound to happen. He believes that cryptocurrencies, in general, will not really catch up with traditional currency because of unrealized problems such as orphaned and stale blocks.

The truth is that stale blocks can be created on purpose in the event malicious people attack an asset such as the Bitcoin Gold 51% attack. This publicized Bitcoin case was, however, not malicious. The system was also quick in resolving the conflict automatically. Had this been a case of intentional or malicious interference with how the Bitcoin system works, it would have been serious enough to warrant doubt over the future of the cryptocurrency. However, it was not.

Bitcoin is the largest cryptocurrency in the world by market cap. It is also the most secure by hash rate. People who have embraced and even invested in it would be wary of any news that may imply such a problem as double-spending, regardless of how small the amount involved is. The rare occurrence that resulted in a stale block is completely plausible, theoretically, but it should not cause alarm.

The Bitcoin blockchain system is designed to expect such a problem. And when it happens, as it did in January, it is a sign that the blockchain is actually in good health. The Bitcoin blockchain platform was able to identify the stale block and drop it – and that is proof that the system works. What is even more impressive is that 38 out of 39 transactions in the block made it to the legitimate block that was ultimately added to the chain.

Categories
Cryptocurrencies

What is IOTA All About? 

Technology makes our lives easier. And as it is now, we might be at the cusp of a new age as far as technological advancements are concerned. In the very near future, it’s highly probable that the mundane devices around us will be interconnected with each other and to the internet. Think of your fridge, car, oven, car, shower, coffee maker, etc.

Technology makes our lives easier. And as it is now, we might be at the cusp of a new age as far as technological advancements are concerned. In the very near future, it’s highly probable that the mundane devices around us will be interconnected with each other and to the internet. Think of your fridge, car, oven, car, shower, coffee maker, etc.

Technology makes our lives easier. And as it is now, we might be at the cusp of a new age as far as technological advancements are concerned. In the very near future, it’s highly probable that the mundane devices around us will be interconnected with each other and to the internet. Think of your fridge, car, oven, car, shower, coffee maker, etc.

These devices will be able to work without needing human intervention. In other words, we’ll be able to derive more value from the things around us, thanks to them being connected to the internet. This phenomenon is called the Internet of Things (IoT). 

It would be ideal if we could actualize IoT without any of the current impediments that face it – with two of the major ones being security and scalability. There is a valid concern that an IoT network would be a security disaster as far as information security, data privacy, and cyber safety are concerned. 

IOTA is a distributed ledger platform that seeks to address the issue of scalability and security for the Internet of Things. What exactly is IOTA, and what does it offer the IoT economy and the distributed ledger space?

What is IOTA?

IOTA is a cryptocurrency project created and optimized for the Internet-of-Things (IoT). The IOTA team envisioned an IoT – already a bold vision by itself – that is powered, secured, and driven by blockchain. David Sostebo, the co-founder of IOTA, wrote that ” IOTA was initiated with a very clear and focused vision of enabling the paradigm shift of the Internet of Things… through establishing a de facto standardized ‘Ledger of Everything.’ 

IOTA diverts from the traditional blockchain model adopted by the majority of cryptocurrencies. Instead, it uses a dedicated distributed ledger platform called Tangle – itself an implementation of a computer science and mathematical concept known as Directed Acyclic Graphs(DAG). Tangle’s consensus mechanism works this way: for new transactions to be valid and before it’s added on the public ledger, it must be validated by the two lastly entered transactions.

This removes the dependence on miners to validate transactions, thus allowing for more scalable transactions (by reducing network congestion and network delays) as compared with traditional blockchains such as Bitcoin’s and Ethereum’s. 

How Does IOTA Work? 

The idea behind IOTA is to integrate blockchain solutions to the Internet of Things. IoT is not a complicated concept or a fantastical idea belonging to sci-fi movies. As a matter of fact, it’s already part of the world’s economy – think devices that monitor factory conditions, driverless cars, smart homes, smart lighting, smart pet care, etc. Research indicates that in 2017, IoT devices had grown up to 8.4 billion, with an even more aggressive growth projected for the future. 

How IOTA Works | Forex Academy

IOTA’s founders believe that for IoT to realize its highest potential, network devices should share and utilize resources more efficiently. The idea is for devices to acquire more resources, such as internet bandwidth, power, storage – only when they need them, and to sell excess or unwanted power at any given time. 

Even the smallest IoT network’s implications would be tens of transactions every second, as devices relay info between and across each other. Such volumes of transactions are beyond the capability of the current blockchain model. For instance, the Ethereum blockchain can handle 15 transactions per second, while the Bitcoin blockchain can handle 7. This results in high transaction fees for priority transactions, while the rest of the transactions can take hours to be completed. As such, the blockchain, as it is, is simply not scalable enough to support the IoT economy. 

IOTA and Scalability

Upon completion, IOTA anticipates having billions of interconnected nodes on its network. To this end, its processing power is designed to expand as more nodes join the network. Tangle’s consensus mechanism dictates that each transaction is linked to two other transactions – in the end, creating a web of transactions based on a verification history. As time goes on, every transaction becomes linked to the ones that verified it. This simple model removes the need for a blockchain. 

In terms of computing power and securing the network, each time a new device submits a transaction – it contributes to the network in this way. Again, this removes the need for block miners. 

IOTA and Transaction Fees

IOTA is also fee-free. As new devices contribute computing power when they submit transactions, the only cost they expend is the electricity they use to confirm the two previous transactions. This essentially makes IOTA free to use. 

This absence of fees is intentional. The IoT network will comprise devices transacting with each other at fractional costs and a very high frequency. Levying charges on such transactions would render micropayments impractical. To serve as the backbone of the IoT economy, IOTA has to be a free network. 

34% Attacks

As you already know, the blockchain is vulnerable to what is known as “the majority attack.” This describes the event when a party manages to control more than 50% of the network (51% attack). In such an event, the attacker can perform malicious transactions, stop miners, and so on. For its part, Tangle will be vulnerable if an entity were to control 34% (over ⅓) of the network’s computing power. 

The IOTA network would be particularly vulnerable to such an attack when it’s still a small network with fewer nodes (i.e., now). It’s easier for a bad actor to gain control of 34% of the network at this time. To curb such an attack, the network is utilizing a Coordinator that synchronizes data across all nodes – cushioning the network against an attack. 

The coordinator node is necessary to protect the early Tangle, and the network plans to get rid of it when it becomes robust and resilient enough. But that also means that the platform is not exactly decentralized right now.

In May 2019, IOTA announced the plan to kill the coordinator and implement ‘Coordicide’ – a new procedure that would make the network decentralized. The protocol, however, is yet to be implemented. 

Who is behind IOTA? 

The IOTA platform was launched in 2015 by David Sønstebø, Dominik Schiener, Sergey Ivancheglo, and Serguei Popov. Sønstebø and Schiener both serve as co-chairman of the board of directors. Ivancheglo departed from the organization’s foundation in June last year in seemingly amicable terms, but as the IOTA community came to discover, there was a ton of intrigue going on behind the scenes. See the full team here. 

Concerns About IOTA 

IOTA has faced criticism for its use of several new technologies instead of tested and tried technologies. Technology experts question if IOTA will really work to scale and if it will stand up to attacks even after more nodes join the network. 

Michigan University’s Digital Currency Initiative published a paper outlining serious flaws in Curl, the network’s hashing function. After testing the hash function, they discovered it produced the same output when fed with two different inputs – a situation known as Collision and one that denotes a faulty hash code. The team added that a malicious actor could have manipulated the flaw to bring down Tangle or steal user funds. The IOTA team has since addressed the loophole.

Ethereum’s core developer Nick Johnson published a scathing article in which he delineated why he thought IOTA’s platform lacked “good technical judgment,” disregarded “cryptographic best practices,” is “a bad actor in the open-source community,” and that its integrity guarantees lack rigor.”

Tokenomics of IOTA

As of May 27, 2020, IOTA was trading at $0. 195231, at a market position of #24 and with a market cap of $542, 649, 121. The coin had a 24-hour volume of $14,089, 509. IOTA’s circulating supply is 2, 779, 530, 283, with a total and maximum supply of the same value. The currency’s all-time high was $5.69 (December 19, 2017), while its all-time high was $0.079620 (March 13, 2020). 

Conclusion

The IOTA project takes the progressive idea of IoT and proposes to make it even better with distributed ledger solutions. For now, the project is far from perfect, or even near full-blown implementation. If everything goes as planned, IOTA will be an unstoppable idea, not just in the distributed ledger space, but in the world.

Categories
Crypto Daily Topic

6 Online Stores Where You can Buy Games with Bitcoin

The number of service providers that accept Bitcoin grows day by day. Nowadays, you can use Bitcoin to pay for all manner of things, from furniture to food to laptops to college. And now, Bitcoiners who are also gaming enthusiasts have a reason to celebrate.

Pay with Bitcoin_Forex Academy

The number of service providers that accept Bitcoin grows day by day. Nowadays, you can use Bitcoin to pay for all manner of things, from furniture to food to laptops to college. And now, Bitcoiners who are also gaming enthusiasts have a reason to celebrate.

The number of service providers that accept Bitcoin grows day by day. Nowadays, you can use Bitcoin to pay for all manner of things, from furniture to food to laptops to college. And now, Bitcoiners who are also gaming enthusiasts have a reason to celebrate.

While some gaming vendors allow you to purchase games directly, they are very far and between. Some platforms have stepped in to fill this gap – enabling you to buy your favorite games with zero hassle. 

Below are the places where you can buy games with Bitcoin:

1. Bitrefill 

Bitrefill is a marketplace that allows you to purchase gift cards and mobile refills from more than 1650 businesses in 170 countries – and pay safely, privately, and quickly with Bitcoin and other cryptocurrencies. With the gift card, you can purchase what you want – in this case, games – from your platform or store of choice.

The platform allows you to purchase video game gift cards for the following stores: 

  • Steam
  • Amazon
  • PlayStation
  • ROBLOX
  • Nintendo
  • Xbox
  • Apple app store
  • Google Play
  • Wargaming.net
  • RuneScape

On the Bitrefill website, select the gift card for your desired game, and how much amount you wish to buy. Then, choose your preferred paying method. Bitrefill supports payment via Bitcoin, Litecoin, the Lightning Network, Dash, Dogecoin, and Ethereum. There is also the option of paying for your gift card from your Coinbase account.

After you complete your transaction, Bitrefill sends you the gift card code. The platform also allows you to purchase non-digital games such as console, and so on. 

2. JoltFun

JoltFun allows you to purchase any of 1000 games across several popular gaming platforms – via Bitcoin and the Lightning Network. Some of the popular game choices include Assetto Corsa, Gears of War 4, Grand Theft Auto V GTA 5, Overwatch, PlayerUnknown’s Battleground, World of Warcraft, The Elder Scrolls and random picks such as One Final Chaos, Cossacks, and American Conquest Park, Azuran Tales, Quarantine, Total War: Warhammer – Call of the Beastmen. 

On JoltFun, you can purchase your video game directly and get to playing already. You can choose games from: 

  • Origin
  • Battle.net
  • PlayStation
  • Steam
  • Rockstar Social Club (Grand Theft Auto and Red Dead Redemption)
  • UPlay
  • Xbox

JoltFun lists all the games that you will find in the actual store. When you choose a game, JoltFun sends you a Bitcoin invoice, after which you have two hours to complete the transaction.

3. Keys4Coins

Keys4Coins allows you to buy gift cards that you can use to buy games from your favorite platforms, as well as purchase games directly from them (Keys4Coins) with cryptocurrencies. You can access your favorite titles including Atlantis 3,  Atlantis 5: The Secrets of Atlantis, Bulletstorm, Corsairs Gold, Curse – The Eye of Isis, Destination Treasure Island, Disciples II: Dark Prophecy,  Dracula2 – The Last Sanctuary, Dracula 5- The Blood Legacy, Empire Earth, Evil Genius, Haegemonia – The Solon Heritage, Knights of Pen and Paper and many more from either of these platforms: 

  • Steam
  • Origin
  • Uplay 
  • Xbox Live
  • PSN
  • Battle.net
  • GOG.com

You can also purchase web hosting crypto conversion services and antivirus programs. Keys4Coins supports payments via Bitcoin, DASH,  Dogecoin, Vertcoin, Monero, Bitcoin Cash, and Litecoin. 

4.  GamesPlanet

GamesPlanet is a video games website that offers some of the most popular titles across a range of categories, including action, adventure, roleplay, MMO, strategy simulation, arcade and indie, and sport. Some of the most popular titles include Quantum Break, Call of Duty: Modern Warfare, Alan Wake, Darksiders Genesis, Hunt: Showdown, Two Point Hospital, Ori and the Blind Forest, Stellaris: Lithoids Species Pack, Crusader Kings, Call of Cthulhu, Sekiro: Shadows Die Twice and more. 

GamesPlanet currently accepts Bitcoin payments via  BitPay. First, you need to set up an account on BitPay, after which you can come back and purchase any game of your choice.

5. Purse.io

Purse.io is a service that allows Bitcoin holders to indirectly purchase products and services from Amazon. The service works by bringing together bitcoin holders and Amazon gift cardholders. If you are a Bitcoin holder and wish to purchase something on Amazon, you can swap your bitcoins for the gift card – whereby the cardholder will make your purchase on your behalf. 

Of course, you can utilize the platform to access the countless number of games on Amazon. The most popular providers are on Amazon, including Nintendo, PlayStation, Xbox, Square Enix, and more. 

Amazon hosts fan favorites such as Star Wars Battlefront, Star Wars Jedi, Grand Theft Auto, Halo 5: Guardians, Naruto Shippuden, Disney Infinity, and so on.

6. Moon

Moon is a browser extension available for Chrome, Opera Mini, and Brave Browser. It supports fast and seamless payments via Bitcoin, Litecoin, Ether, Bitcoin Cash, and the Lightning Network. The extension notifies you whenever there is an option for paying with Bitcoin. 

Speaking to CoinDesk, Moon CEO said: “(The extension)  will pop up a QR code and it will have the lightning invoice, which you could also copy and paste if you can’t use the QR code for some reason, and you’ll be able to pay with your favorite lightning wallet. “

Moon supports the purchase of games from various platforms,  including Amazon. 

Final Thoughts

Are you a Bitcoin lover and a gaming enthusiast? If that’s your combi, then you’re right at home with these platforms. Even Litecoin, Bitcoin Cash, Monero, Ethereum, Vertcoin, DASH, and Dogecoin holders will strike luck. Get to browsing now and pick your selection. 

Categories
Crypto Daily Topic

Altcoins with Lightning Network Support

Satoshi Nakamoto’s vision was for Bitcoin to be a digital currency that could be transferred between users in a fast and secure manner. However, if he intended for the network to one day compete with established payment systems, then he probably did not take into account the scalability level that Bitcoin would need for that to be possible.

Lightning Crypto_Forex Academy

Satoshi Nakamoto’s vision was for Bitcoin to be a digital currency that could be transferred between users in a fast and secure manner. However, if he intended for the network to one day compete with established payment systems, then he probably did not take into account the scalability level that Bitcoin would need for that to be possible.

Satoshi Nakamoto’s vision was for Bitcoin to be a digital currency that could be transferred between users in a fast and secure manner. However, if he intended for the network to one day compete with established payment systems, then he probably did not take into account the scalability level that Bitcoin would need for that to be possible.

As it is now, Bitcoin can muster only seven transactions per second, which pales in comparison to, let’s say, Visa’s 1700. And as more users troop to the network, waiting times and transaction fees continue to increase.

If Bitcoin hopes to ever compete with existing payment models, some adjustments may need to be made to its fabric.

The Lightning Network

Lightning network_Forex Academy

Over the years, Bitcoin developers have come up with several solutions to this problem, from Plasma to Segregated Witness, to sharding, to the Lightning Network (LN).

Proposed by Thaddeus Dryja and Joseph Poon in 2015, LN is an extra layer for the Bitcoin blockchain that uses two-way payment channels to allow users to transact with each other with very nominal fees. Once the parties close the channel, only the initial and final transactions are recorded on the Bitcoin blockchain. Users in a payment channel conduct as many transactions as they want – which happens within seconds and with minuscule fees.

The idea is to reduce congestion in the Bitcoin blockchain and to achieve fast transactions since users do not have to wait for transactions to be processed. On LN, participants can engage in transactions without the need to know or trust each other.

LN is designed for Bitcoin’s scalability problem, but several other cryptocurrencies are looking to adopt the technology to enhance their scalability. Cryptocurrencies that use a different model from Bitcoin, and are hence incompatible with the technology, are working on a similar solution. This article is a look at various cryptocurrencies’ take on the Lightning Network.

Bitcoin and Lightning Network

Bitcoin Lightning_Forex Academy

Lightning Labs, a company dedicated to developing scalability solutions for Bitcoin, released a beta version of the technology for the blockchain in December of 2017. This year, the team announced that they had developed a v0.10 beta version, which is an upgraded version of the first release. This version comes with improvements such as bug fixes, architectural improvements, better security and privacy, and more.

Lightning Labs is not the only startup that’s working on an implementation of the Lightning Network. Other companies such as C-Lightning, Blockstream, and ACINQ are also working on their version of the tech.

Also, several developers have already worked on Lightning Network wallets. Some available options include:

  • Eclair – a mobile wallet for Android designed by ACINQ
  • Munn Wallet – A non-custodial wallet that enables you to make instant payments without configuration procedures
  • Zap – A free Lightning Network wallet that’s simple to use and user-experience-focused.
  • Nayuta Wallet – This a non-custodial wallet for Bitcoin and the Lightning Network
  • Phoenix – This is a non-custodial wallet Lightning Network wallet with a user-friendly and intuitive interface
  • SATs App – SATS App allows you to send Bitcoin like you would a text message, via the Lightning Network

Litecoin and Lightning Network 

Litecoin is modeled after Bitcoin, and is often referred to as ‘the silver to Bitcoin’s gold’. As such, you would expect that the two cryptocurrencies are in direct competition.

Indeed, Lightning Labs’ initial debut implementation of the technology went live on both Litecoin and Bitcoin’s blockchains. Also, the company’s cross-atomic swaps function (the direct swapping of tokens between respective blockchains- bypassing crypto exchanges) was first tested on both Bitcoin and Litecoin.

Though the technology is yet to be implemented on Litecoin, when it does, it will give the network a much-needed push towards wide adoption.

Ethereum and Raiden

The Ethereum network can process transactions two times faster than Bitcoin. Ethereum can currently process 15 transactions per second, while Bitcoin can process 7.

However, Ethereum’s blockchain has more users and is busier than Bitcoin’s since it also runs decentralized applications (DApps) and facilitates initial coin offerings (ICOs). This means the network handles a lot of traffic as it processes token sales and smart contracts. As such, Ethereum needs a different scaling solution, but one uniquely suited to its needs. Several proposals are in the works, but a notable one is Raiden.

Raiden’s concept is much like that of the Lightning Network: providing an extra layer aside from the main blockchain through which individuals can use two-way payment channels to conduct instant and secure transactions with very nominal fees. The difference lies in that Raiden is ERC20 compatible, meaning all tokens issued on Ethereum can use Raiden.

ZCash and BOLT 

The Lightning Network will make transactions on transparent blockchains like Bitcoin a bit more private since payments on the two-way channel will not be broadcasted on the main blockchain. However, the initial and final transactions will be added to the main chain.

ZCash is a privacy crypto network that seeks to provide users with enhanced privacy and anonymity. The Lightning Network’s incomplete privacy state will obviously not mesh well with ZCash – necessitating the need for its own scaling solution.

The network’s proposed solution for this end is called ‘BOLT’ (Blind Off-chain Lightweight Transactions). Created by Ian Miers and Matthew Green, BOLT is inspired by the Lightning Network, only that its approach involves ensuring payments on the same channel cannot be linked to each other, even by transacting parties. Also, transactions occur in milliseconds – without requiring block confirmation.

It will achieve this by utilizing two pieces of technology: blind signatures and commitments. Commitments allow users to hide the value of transactions. Signatures convince users to sign for transactions without recognizing which one they are signing for exactly.

Ripple and Lightning Network

Ripple_ Forex Academy

In August of 2017, Ripple, together with blockchain company BitFury, released a code that integrated the Lightning Network with Interledger. Interledger is a protocol by Ripple that enables transactions between different blockchains. This means not just blockchains like Bitcoin and Ethereum, but also private blockchains and traditional payment models like PayPal.

Ripple doesn’t really need a scalability solution – it can already process an impressive 1500 transactions per second. The network hopes to integrate LN technology for its atomic swaps function and to achieve compatibility between cryptocurrencies.

Ripple’s CTO Stefan Thomas illuminated on this while speaking to Coindesk, saying: “I shouldn’t have to care which particular coin you use or like. If you’re on PayPal and I’m on Alipay or if I’m on Bitcoin and you’re using a bank account, I’ll still be able to send you money and not worry about it. That’s the long term goal.”

Monero and Lightning Network

Just like ZCash, Monero is a privacy-oriented coin, meaning if it needs to use LN for scaling purposes, it will need to put in place some privacy features.

Still, it looks like Monero intends to utilize the Lightning Network for its atomic swaps technology and not so much for its scaling solution. There are also plans to work with Litecoin in a bid to use the Lightning Network into Monero and enable atomic swaps between the two blockchains.

The idea is to ultimately enable Monero users to swap their coins for any other cryptocurrency via LN in the future.

Neo and Trinity

The NEO platform is much like Ethereum in the sense that it provides a platform for developers to create DApps and for users to create smart contracts. As such, it needs a scaling solution to handle the massive traffic and take the strain off the main chain. This solution is called ‘Trinity’ and is still in the works. The solution will see the NEO network scale to new heights of scalability, seeing as it can already handle 1,000 transactions per second.

Stellar and Lightning Network

Stellar is a payment protocol for making fast, secure, and cheap transactions. As it is, the Stellar network can process up to 1,000 transactions per second.

Still, Stellar has announced plans to integrate the Lightning Network. Co-founder and CTO Jed McCaleb stated that this technology has the potential to improve scalability, privacy, and interoperability for the network.

Speaking to Bitcoin Magazine, McCaleb said: “We’re super excited about Lightning,” adding, “In order to keep the network efficient and stable, we need something like Lightning.”

Final Thoughts

The Lightning Network is a great solution for cryptocurrency networks to achieve scalability, more privacy, and cheaper transactions. When these blockchain networks finally roll out their LN solutions, they can go toe to toe with traditional payment systems, and users can expect a better experience.

Categories
Crypto Daily Topic

How to Cash Out Your ICO Proceeds

Almost every week, we hear of another new crypto project being launched that will solve an existing problem or fill a gap in the crypto ecosystem. Even if it’s not geared towards the crypto space, entrepreneurial types may be interested in starting a crypto-related business.

Almost every week, we hear of another new crypto project being launched that will solve an existing problem or fill a gap in the crypto ecosystem. Even if it’s not geared towards the crypto space, entrepreneurial types may be interested in starting a crypto-related business.

Almost every week, we hear of another new crypto project being launched that will solve an existing problem or fill a gap in the crypto ecosystem. Even if it’s not geared towards the crypto space, entrepreneurial types may be interested in starting a crypto-related business.

The common practice to raise funds is through an Initial Coin Offering (ICO). An ICO is a lot like an Initial Public Offering through which traditional companies raise funds. In an ICO, a project sells freshly minted tokens so as to raise capital to start the project. People can invest in the project by receiving the tokens and giving away other cryptos such as Bitcoin, Ether, Litecoin, and so on.

Of course, after receiving the funds, the next step is to cash out and inject it into the project by paying for bills, talent, PR campaigns, legal processes, office equipment, and so on.

None of the above things would be an issue in a normal environment. However, in a world where cryptocurrency is still treated ambivalently, things have to be done differently. There is also the issue of cryptocurrencies not being accepted for everyday use.

Cashing out cryptocurrency for Fiat can be daunting, least of all, when doing so in large amounts. We’re going to take a look at why this is, as well as explore the best strategies to use when cashing out your ICO proceeds.

Why is the Process so Complicated? 

As blockchain continues to occupy more space in finance, a lot of banks and financial institutions are exploring ways in which to incorporate the technology in their operations. While this may be so, the vast majority of banks are not exactly lining up to embrace cryptocurrencies. Not only are cryptocurrencies in direct competition with banks, but they were also created to replace them. As such, it’s only natural that banks will treat cryptocurrencies with suspicion.

Reports are rife that banks are reluctant to do business with crypto-related businesses. Influential figures in the traditional finance space have been on record calling cryptocurrency a fraud. And for the few banks that are willing to engage crypto projects, paperwork upon paperwork and jumping through countless legal hoops is to be expected.

The reason for this is banks have to comply with Anti Money Laundering (AML) and Know Your Customer (KYC) regulations. Banks will be trying to ascertain your source of the funds – and whether it’s legitimate or not. Also, every single transaction has to undergo rigorous verification.

After all these procedures, it is not guaranteed that you will have a smooth sailing relationship with the bank. Due to the regulatory uncertainty of cryptocurrencies, your account will always be at the risk of being shut down. Some words such as Bitcoin, cryptocurrency, ICO, Ether, BTC, and so on can get your transactions flagged and your account shut down.

Also, cashing out via a crypto exchange may have fewer obstacles, but it’s also complicated. Assuming you find a legitimate exchange that’s also legal in your jurisdiction, the first thing you should do is ensure you have a bank account that you will withdraw your money to. You also need to undergo layers of verification processes in both the exchange and bank. Then you’ll have to contend with long wait times and high transaction fees.

Storing your funds in a crypto exchange wallet is not an option, either. Crypto exchange wallets are custodial, meaning you’re not in full control of your funds. Also, exchange wallets constitute online wallets  – which are prone to hacking and other types of fraud.

Withdrawing Small Amounts

Now, if you were to try cashing out the entire amount of funds, not only would it be a logistical nightmare, but it would also raise eyebrows with the bank and the authorities. The best approach would be to withdraw the amount of money that you actually need for various steps of the project, once in a while.

Here are a few ways to go about it: 

  1. Exchange the right amount of crypto for Fiat in an exchange and withdraw the money to your bank account
  2. Make use of peer-to-peer exchanges (exchanges that don’t utilize a third party), e.g, LocalBitcoins and LocalEthereum. Such exchanges provide high security for your funds and protect you from transactions censorship.
  3. Skip the bank altogether by using payment processors such as CoinPayments, CoinGate, SpectroCoin, BitPay, SpicePay, and others. These processors allow you to take things through direct crypto to bank transactions.
  4. Get a prepaid Visa or MasterCard that will allow you to load crypto and directly and use it for payments online and offline payments. These can be obtained at com, Tenx,  Bitwala, and other blockchain banking services.
  5. Pay your staff in crypto and instruct them on how to cash out in Fiat

Taking advantage of relaxed jurisdictions

Currently, there is no solution that directly allows you to withdraw large amounts of crypto. But some while cryptocurrency is frowned upon in many countries. Some countries have a rather open approach. In these jurisdictions, it’s possible to open a bank account and operate with crypto without being censored:

  • Singapore
  • Malta Islands
  • Switzerland
  • Estonia
  • Germany
  • Bermuda
  • Cayman Islands
  • Luxembourg
Categories
Crypto Exchanges

Bitmex Vs. Deribit Vs. Bybit: Which one is the Best Crypto-derivative Exchange? 

Cryptocurrency derivatives are an ideal investment option for individuals looking to generate more returns from the crypto market. Although they appeal most to experienced traders, trading derivatives is the less risky alternative to the standard cryptocurrency trading. 

Crypto Exchange_Forex Academy

Cryptocurrency derivatives are an ideal investment option for individuals looking to generate more returns from the crypto market. Although they appeal most to experienced traders, trading derivatives is the less risky alternative to the standard cryptocurrency trading. 

Cryptocurrency derivatives are an ideal investment option for individuals looking to generate more returns from the crypto market. Although they appeal most to experienced traders, trading derivatives is the less risky alternative to the standard cryptocurrency trading. 

Derivatives are used to hedge against risks or to speculate the price of the underlying asset. Investors are, therefore, protected from price fluctuations since they only buy the asset at the fixed price stipulated in the derivative contract. Additionally, investors don’t have to worry about asset theft/loss as they aren’t required to hold the underlying asset itself. 

Given the intricacies of derivative trading, it’s highly recommended to choose a platform that’s uniquely designed to support this type of crypto trading. That said, Bitmex, Deribit, and Bybit are among the most preferred derivatives trading platforms by investors.

In this comparative guide, we pit them against each other and reviewed their ease of use, security, and liquidity to find out which one gets the job done efficiently:

Platform Stability and User Experience

When choosing a crypto derivatives trading platform, you will want to vet its ease of use and the complexity of its sign-up process. Avoid platforms with a complex user interface as they cam prove intimidating, especially to first time users. 

The sign-up process for the three platforms is rather simple since all you require is a username, password, and country of residence. Bitmex doesn’t, however, process registration requests from residents of such countries as the US, Seychelles, Cuba, Iran, Syria, among others. Of course, the geo-restriction can be bypassed using a strong VPN to hide the IP address. With the other two platforms, Deribit and Bybit, users from anywhere around the world can sign up without any restrictions. 

Bitmex is best operated on its official website thanks to its smart and simple layout. What’s better, users can customize the web layout and change such features as themes, text colors, and integrate different trading tools. The platform, however, has neither developed its own mobile app nor optimized its website for mobile use. Deribit, on the other hand, has a user-friendly mobile app, which is a good compensation for its relatively clunky website. 

Bybit wins on all fronts as far as user-friendliness is concerned. Their desktop user interface is easy to navigate and rarely experiences downtimes, which is a common case with Bitmex. Recently, Bybit released its own app available to both iOs and Android users.  

Liquidity 

Liquidity in derivatives trading entails a lot more than just cash flow and the ability to sell options/futures in the shortest time possible. However, this is not to diminish the importance of these two factors. In fact, the two are an integral part of any trading platform since they are an indication of a healthy supply and demand. 

High liquidity for derivatives allows for ultra-tight bid-ask spreads and reduced risk of slippage when executing orders. For the derivatives market to achieve high liquidity, it must have high trading volumes and create room for intense price competition between sellers and buyers.  

Bitmex boasts of higher trading volumes compared to both Deribit and Bybit. In fact, as of this year, the exchange posted higher trading volumes than other top exchanges that process standard cryptocurrency trading. Due to its high liquidity, Bitmex has the tightest spread and least slippage, meaning your orders will always be filled just at the right amount. On top of that, the exchange offers a variety of futures contracts, including BTC futures, ETH futures, ETH perpetual, XRP futures, LTC futures, ADA futures, TRX futures, EOS, and Bitcash futures. This further increases its trading volume,  increasing liquidity. 

Deribit trades an upward of 0.5 billion daily, so its liquidity is relatively high. Perhaps if the exchange offered more trading options than just BTC futures and BTC perpetual, its liquidity would increase substantially. Launched two years ago, Bybit often struggles with liquidity issues. But the team behind this exchange, which comprises of leading crypto trading experts, is continually working to increase the trading volume and liquidity. Moreover, as the exchange gains traction in the market, it’s liquidity is bound to increase over time.

Security

Exchanges often fall victim to cyber hacks resulting in loss of investors’ funds. When choosing an ideal derivatives trading platform, you want one that prioritizes the security of your funds. 

Since it was established in 2014, Bitmex has grown to become one of the largest exchanges in the market. Due to its size, the platform is arguably a more attractive target for hackers. Impressively though, the exchange has never been hacked for the six years the platform has been active, an achievement that can be attributed to its high-level security measures. 

The platform stores investor’s funds and crypto reserves in an offline and multi-signature wallet. About 95% of the funds are stored in a cold wallet to deter theft by cybercriminals. The remaining amount is stored on the platform’s hot wallet to facilitate daily transactions.

Additionally, Bitmex allows users to secure their accounts with the Google-powered two-factor authenticator. 

In its short life, Bybit has managed to meet the industry-standard security protocols. Similar to the other two, Bybit maintains cold wallets where the bulk of the clients’ funds are stored. The rest of the funds are stored in a hot wallet to facilitate daily transactions. A multi-signature system is employed every time the funds are moved between the cold wallet and a hot wallet. 

The three exchanges are arguably at par as far as security is concerned. But Bitmex takes the lead due to its once-per-day withdrawal policy, which reduces the risk of hackers’ interception. 

Conclusion 

The fact that the three exchanges are exclusively designed for derivatives trading makes them ideal for any investors looking to get into crypto futures contracts. However, Bitmex has the upper hand, having laid a strong foundation on all fronts since it was established. At the same time, both Deribit and Bybit give Bitmex a good run for its money, an indication that they can be trusted by investors.

Categories
Blockchain and DLT

What Are The 5 Key Challenges Facing Blockchain Today?

Blockchain is one of the most disruptive technologies of the last decade, from powering cryptocurrencies to dizzying heights of success to industry after industry racing to incorporate it into their processes.

Challenges facing Bitcoin | Forex Academy
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Blockchain is one of the most disruptive technologies of the last decade, from powering cryptocurrencies to dizzying heights of success to industry after industry racing to incorporate it into their processes.

Blockchain is one of the most disruptive technologies of the last decade, from powering cryptocurrencies to dizzying heights of success to industry after industry racing to incorporate it into their processes.

It would be ideal if blockchain was a problem-free technology providing problem-free solutions. But this is not the case.

These are the core five issues that are the bane of blockchain’s current existence: unsatisfactory privacy and security; and regulatory, legal, and ethical issues.

1. Security Issues

One of the defining features of public blockchains is their decentralization. This means that they are not controlled, nor can they be shut down by anyone. Decentralization helps keep the blockchain secure since thousands of computers from the globe are participating in maintaining and securing the network. Even if someone managed to shut down some of the computers, the rest would carry on operating the network.

Bitcoin decentralization_Forex Academy

But it is still this decentralization that’s potentially an Achilles heel for the blockchain. While it’s safer than a centralized network, which has a single point of control – and hence a single point of attack, the decentralized model is not perfectly secure. A public blockchain is vulnerable to a 51% attack.

A 51% attack describes an occasion when an entity or a group of people manages to take control of over 50% of a blockchain’s computing power. This would allow them to tilt the blockchain’s operations in their favor. For instance, they could double-spend coins, block transactions, or stop miners.

Smaller blockchains, in particular, are more susceptible to attacks. This is because they have fewer miners securing the blockchain, making it easier for an entity to take control of a bigger percentage of the network’s computing power. For instance, for the IOTA blockchain, a bad actor would only need to take control of 34% of the total network’s hash power.

Luckily, such an attack is extremely rare and unlikely. It is prohibitively expensive for someone to attempt to take control of over 51% of a blockchain network. The sheer financial and time resources needed to pull it off are enough to make one perish the thought.

2. Privacy Issues 

Transparency is another defining feature of public blockchains. The history of transactions is available for everyone to see. While your personal credentials are not made public (or even required for you to conduct a transaction), your public address can be used to link back to you. This state is known as pseudonymity.

In an era of ubiquitous internet when privacy is highly valued, pseudonymous transactions do not exactly fly with many users. To address this problem, several privacy-oriented blockchains have sprung up to fill the gap. Examples include Monero, ZCash, Komodo, and DASH.

3. Legal Issues

While blockchain technology has increased in popularity and is being embraced across industries, its legal standing is still very much grey. Some of the legal issues are as follows:

  • Decentralized Autonomous Organizations (DAOs): these are organizations that are much like traditional organizations in terms of function, except they are governed by computer code, and commands are executed by computers without the intervention of humans or central authorities. But let’s say, for example, in the event of a conflict, how will it be resolved? Who bears responsibility?
  • Smart contracts: Blockchain-based smart contracts are a new kind of contract that is self-verifying and self-executing. This removes the need for costly intermediaries and saves time. Given that smart contracts are pure lines of code, it’s debatable whether they can really be considered as complete contracts, at least in the traditional sense. It’s all well and good if all parties meet their end of the bargain. But in the event of a dispute, would a smart contract be legitimate in the eyes of the law? At the very least, ensure that you have a conflict resolution procedure encoded in the smart contract.
  • Leaving a blockchain: Let’s imagine you’ve been using a blockchain to record sensitive data such as your company’s financial records or employee data. What happens if you stop using the service, and you do not possess copies of the ledger? Before you sign up for a blockchain service, ensure there are provisions in place to ensure that a blockchain service provider surrenders your records back to you at the end of the contract.

4. Regulatory issues

Cryptocurrencies were the first application of blockchain. They are defined by features such as decentralization, distributed, and immutability. This decentralized feature does not particularly fly with the majority of governments and regulators all over the world. This creates a state of regulatory uncertainty.

Bitcoin Regulation | Forex Academy

Governments have taken different approaches to this. Some governments such as Bolivia, Colombia, Iran, Algeria, Pakistan, Bangladesh, and Ecuador have entirely banned cryptocurrencies. Other countries, such as the United States, the UK, Canada, Slovenia, and South Africa, have accepted them. Acceptance can mean anything from cryptocurrencies being accepted as means of payment but not as legal tender, to them actually being used as legal tender – like is the case in the Marshall Islands.

Too strict regulation can stifle innovation. On the other hand, a total lack of regulation could create undesirable circumstances such as market manipulation and unlawful use.

5. Ethical Issues 

Blockchain gives rise to some ethical issues, with the most problematic ones being 1) its environmental impact and 2) criminals taking advantage of it.

Blockchain networks utilize cryptography to maintain security and process transactions. The amount of power that goes into this is jaw-droppingly enormous.

Check out the statistics:

  • If bitcoin was a country, it would be the 41st highest electricity-consuming country in the world.
  • Every year bitcoin produces 34.76 megatonnes of carbon dioxide, similar to that of Denmark.
  • Just one bitcoin transaction consumes more energy than 100, 000 Visa transactions, and as much as a US household consumes in 22 days.
  • The estimated global mining costs for Bitcoin is $1.5 billion.
  • Bitcoin mining uses more power than 12 states (Alaska, Hawaii, Idaho, Maine, Montana, New Hampshire, New Mexico, North Dakota, Rhode Island, South Dakota, Vermont, and Wyoming).

In an era when environmental concerns are more relevant than ever, the staggering use of energy is alarming. For this reason, crypto developers need to come up with more environmentally friendly ways of releasing new coins and processing transactions.

Then there is the issue of blockchain enabling criminal activities such as drug peddling, child trafficking, sex trafficking, tax evasion, money laundering, and so on. Cybercriminals take advantage of the pseudonymous and anonymous nature of cryptocurrencies to engage in such activities. Even cyber attackers want to be paid in cryptocurrency and not other types of money.

Final Words

Blockchain is a powerful technology that has revolutionized certain facets of our society. However, at this stage, the world has to contend with its less-than-perfect implications. While some of the issues require a shift in attitude, others are inherently blockchain’s own. Whether any of these is set to change in the future is anyone’s guess.

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Crypto Daily Topic

Where to Discuss Bitcoin: Top Bitcoin Forums You Should Join

Bitcoin is not just a currency. It’s a revolution that has inspired an entire movement of believers, enthusiasts, and diehards. These groups of people have carved out spaces online and offline to exclusively talk and discuss everything about Bitcoin from the present, to the future, to prices, market trends, and everything in between.

Top Bitcpoin Forums to join | Forex Academy
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Bitcoin is not just a currency. It’s a revolution that has inspired an entire movement of believers, enthusiasts, and diehards. These groups of people have carved out spaces online and offline to exclusively talk and discuss everything about Bitcoin from the present, to the future, to prices, market trends, and everything in between.

Bitcoin is not just a currency. It’s a revolution that has inspired an entire movement of believers, enthusiasts, and diehards. These groups of people have carved out spaces online and offline to exclusively talk and discuss everything about Bitcoin from the present, to the future, to prices, market trends, and everything in between.

Anyone – from dilettantes to serious investors, to developers, to entrepreneurs, to startups can join and participate in these spaces.

In the highlighted places, feel free to join fellow Bitcoiners and engage in everything Bitcoin.

Online

Online places include social media, IRC channels, and forums. Below are links to the discussion boards on those places.

Forums

  • Bitcointalk – This is currently the biggest bitcoin forum. It was founded by Satoshi Nakamoto – the creator of Bitcoin.
  • Bitcoin.com — This is a forum formed by the Bitcoin.com news website.
  • Bitcoin Garden – This is a small Bitcoin forum, but fast establishing itself in the space
  • Bitcoinforum – One of the ‘mainstream’ Bitcoin forums, and associated with the bitcoin.org website
  • Bitco.in Forum – This is a forum where developers, academics, and business-minded Bitcoiners gather to share ideas and promote Bitcoin
  • CryptoCompare Bitcoin page – This is a forum by CryptoCompare where users can discuss and monitor prices, market volumes, and trends in the Bitcoin market.
  • Investing.com Bitcoin page – This is a page on investing.com dedicated to Bitcoin trading and investing.
  • StackExchange Bitcoin page – This is a Bitcoin dedicated page on the StackExchange website, keeping with the question and answer formula for cryptocurrency enthusiasts.

Reddit

 

Bitcoin Reddit_Forex Academy

On Reddit, there are several Bitcoin dedicated pages.

  • r/Bitcoin – This is the main Bitcoin subreddit.

Others include:

  • r/BitcoinMarkets – A subreddit for Bitcoin trading.
  • r/BitcoinStocks – A subreddit for discussions about Bitcoin stocks.
  • r/Jobs4Bitcoins – A subreddit where individuals can provide their talents and skills in exchange for Bitcoins
  • r/BitcoinMining – A subreddit where users can discuss everything mining
  • r/BitMarket – A  subreddit where people can sell and buy Bitcoin
  • r/BitcoinSerious – A subreddit for ‘reasonable discussion relating to Bitcoin’
  • r/BitcoinBegginers – A subreddit where Bitcoin beginners can learn things and freely ask questions
  • r/LocalCommunities – A list of the major Bitcoin communities, per country

IRC Chat

Below is a list of Bitcoin dedicated channels on Freenode:

  • #bitcoin – a general chat for all things Bitcoin
  • #bitcoin-dev – a chat dedicated to technical and development issues for Bitcoin
  • #bitcoin-otc – an over-the-counter Bitcoin exchange
  • #bitcoin-market – a chat dedicated to live quotes about the market
  • #bitcoin-mining – a chat for all things crypto mining

There are more Bitcoin-related IRC chats that you can find here. These chats include Bitcoin projects, local communities for different countries, mining-related communities, more communities on Bitcoin exchanging and trading, and more Bitcoin and crypto-related communities.

Telegram

Bitcoin Telegram_Forex Academy

The following are some of the most popular Bitcoin-related Telegram channels:

Social Networks

The following links will lead to Bitcoin discussion places on these social media forums:

Offline

Bitcoin discussions and related engagements do not just happen on the internet. In the physical world, there is a lot of Bitcoin-related conferences, events, meetups, and so on.

By joining these places, you can increase your knowledge for Bitcoin – from its technicalities to trading to price behavior. It’s also one way to take part in the Bitcoin movement.

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Crypto Daily Topic

The Best 6 Crypto-Lending Platforms And Their Pros And Cons

Most crypto holders believe trading is the only way to make money from their crypto holdings. On the contrary, cryptocurrency today offers many possibilities for individuals to boost their crypto savings and grow their investments. One of these is via crypto lending, whereby you loan out part of your crypto assets and earn interest.

Most crypto holders believe trading is the only way to make money from their crypto holdings. On the contrary, cryptocurrency today offers many possibilities for individuals to boost their crypto savings and grow their investments. One of these is via crypto lending, whereby you loan out part of your crypto assets and earn interest.

Most crypto holders believe trading is the only way to make money from their crypto holdings. On the contrary, cryptocurrency today offers many possibilities for individuals to boost their crypto savings and grow their investments. One of these is via crypto lending, whereby you loan out part of your crypto assets and earn interest.

Another is to deposit your credit funds and let them grow passively.

Via crypto lending platforms, individuals can also get fast access to loans. Unlike traditional lending platforms that require a good credit score, conduct KYC checks, and are at the whims of state regulation, crypto lending platforms allow users to access credit as painlessly as possible.

Thanks to the unregulated nature of cryptocurrency, however, virtually anyone can get access to a loan as long as they have internet connectivity. (This, at least, is the standard, but some crypto lending platforms will restrict use in certain jurisdictions depending on their regulatory requirements. As such, before considering any lending platform, always check whether your country is supported).

How Does Crypto Lending Work?

Crypto lending is a fairly straightforward process. The lender deposits crypto funds on a lending platform. The lending platform then makes the funds available to borrowers at a rate set by the lender.

To take a loan, borrowers create an account and take out a loan for a specified period. When that specified period expires, the borrower returns the funds, along with the pre-set interest rate.

To eliminate risks such as borrowers being unable to pay back the loan, crypto lending platforms usually institute guarantees or require borrowers to set up collateral or some other type of loan-backing system.

Most borrowers take out Crypto loans for two purposes: personal expenses or for margin trading. The personal expense borrowing is similar to the loan services in traditional finance.

Borrowers who take out the loan for margin trading do so because they don’t have enough capital for placing a trade. If they make a favorable trading decision, then they make a profit and pay back the loan easily. If the trade goes awry, they have no choice but to meet the loss and pay back the loan out of their pocket.

The Advantages of Crypto Lending

  • Very favorable transaction fees, especially when compared to the traditional lending system
  • Borrowers do not need to have a bank account (for the 1.7 billion unbanked people, crypto lending is likely their only option)
  • Quick confirmation time
  • No byzantine procedures so prevalent in the traditional lending system
  • Diversified loan options
  • No discrimination based on nationality

The risks with crypto lending

  • A higher default rate when compared to traditional loans
  • The lending platforms are prone to online attacks
  • The volatility of cryptocurrencies that can cause lenders to lose profits or force borrowers to pay more than they borrowed

With that, let’s look at some of the best crypto lending platforms in the industry.

1. CoinLoan

Coinloan is an Estonia-based peer-to-peer lending platform where borrowers can take out crypto-collateralized loans. Clients can also earn interest simply by “parking money” on CoinLoan and letting it work for them.

CoinLoan imposes no credit history checks or KYC procedures. The loan repayment period goes from 7 days up to 3 years, and the platform doesn’t impose any extra fees or penalties. Everyone’s funds are put under the maximum security possible – with cold storage wallets and distributed key storage being the standard.

Coinloan’s lending process is as follows: Borrowers deposit part of their cryptocurrency portfolio as collateral. Borrowers are furnished with the exact figures for the loan contract beforehand. They’re also granted flexible lending conditions, are not submitted to any credit checks, and are offered convenient withdrawal procedures.

Lenders are offered with these guarantees: First, the platform is licensed in the EU and is subjected to various checks and compliance. As such, lenders on the platform are guaranteed repayment of their loan, and their transactions are fully protected with SSL-encryption.

2. YouHodler

This is a crypto-lender based out of Cyprus and Switzerland and lends both crypto and fiat loans backed by crypto.

Its Turbocharge service allows borrowers to take out additional crypto and use it as collateral for other loans. Its MuliHODL feature allows users to boost their holdings by “playing with their crypto and finding the right balance,” which means making small and careful trades with calculated risk. YouHodler also has a wallet available for iOS and Android.

Another thing YouHODLER has going for it is their service which allows borrowers to access instant cash from the platform’s fiat-base funds. This eliminates the need for borrowers to search for a compatible lender, saving time and allowing them to access cash quickly.

3. SALT Lending

Launched in 2016, US-based SALT Lending was one of the first crypto lending platforms in the space. The platform is one of the trusted around and for a good reason. Borrowers can take out crypto-backed loans on a peer-to-peer platform, while also using crypto as collateral.

SALT’s lending procedure is straightforward. Users don’t need to undergo any background verification, and can usually receive the loan the same day. Loan terms are also tailored according to the borrower’s needs, from loan-to-value ratio to loan length.

When it comes to security, SALT Lending goes the whole nine yards. From backing all crypto assets with insurance, to keeping crypto funds in cold wallets. Currently, SALT services loans are available in a select 35 US states, plus Bermuda, Brazil, New Zealand, Puerto Rico, Vietnam, the UK, UAE, Switzerland, and Hong Kong.

4. BlockFi

Launched in 2017, US-based BlockFi offers two products; an interest account and crypto-backed loans. The BlockFi Interest Account lets your crypto work for you by putting it up for monthly interest. Users can earn compound interest on their crypto, boosting their savings in these cryptocurrencies; Bitcoin, Ether, and Gemini Dollar (GUSD).

For crypto-backed loans, BlockFi clients can use their crypto holding as collateral and unlock up to 50% the value of their assets in US dollars. Moreover, borrowers get the funds on the same day through bank wire or stable coin.

Individuals can use the BlockFi loans for pretty much any use, from paying off credit card debt to paying school fees or a home. Small businesses can take out loans to expand their business or to help them pay employees. Currently, BlockFi supports 46 states and all other countries except those with US sanctions.

5. Com

Launched in 2016, Hong Kong-based Crypto.com is a crypto lending platform that also offers exchange-based crypto trading, investment options, and crypto payment gateway services for merchants.

Crypto.com clients can get instant loans without going through convoluted background checks. There also are no fixed repayment schedules or deadlines or late payment penalties. You can repay at your own pace at any time, and any amount, in the 12 months upon the start of the credit period.

Crypto.com also allows users to earn interest on their deposits. Currently, investors can earn interest on the following cryptocurrencies: Bitcoin, Ethereum, Ripple, Binance, Chainlink, Maker, Pax Gold, TrueUSD, Paxos Standard, USD Coin, and Tether.

6. Celsius.Network

Celsius.Network was founded in 2017 with the aim of leveraging blockchain technology to empower individuals with “unprecedented economic opportunities, financial freedom, and income equality.”

Customers can receive loan facilities on collateral-based credit lines on loan terms of 6 months, 1 year, 2 years, or 3 years. The platform imposes no penalties for defaulted loans – failure to pay back the loan within the specified loan term will also lead to the liquidation of your collateral.

Like many other crypto loan platforms, Celsius.Network does not conduct credit checks, and loans are approved within minutes. The platform lets borrowers deposit their collateral in either Bitcoin, Bitcoin Cash, Litecoin, Ethereum, Ripple, and DASH. Loans are given in Tether, Fiat, some stablecoins, and Celsius’s own native token – the CEL token.

Users can also deposit CEL, Bitcoin, Ethereum, Litecoin, Ethereum, OMG, Bitcoin Cash, EOS, and other crypto-assets and earn interest.

Bottom Line

As you can see, there are options aplenty for crypto-based lending services. With these platforms, anyone from anywhere can access a loan regardless of their location, credit history, nationality, and whether they’re banked or not.

While all platforms offer the same kind of service, there are the subtleties with each service that differentiates it from the others. These differences lie in loan repayment schedules, supported currencies, loan terms, loan-to-value ratios, and so on. As such, you need to read the fine print and discover which platform works for you.

Finally, ensure to read and understand any terms and conditions for any platform, and check the legality and tax requirements for crypto-based loans in your jurisdiction.

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Crypto Daily Topic

Top 10 Crypto Traders And Blockchain Experts To Follow On Twitter

The world of crypto trading can be murky. To a large extent, this is attributable to the still-novel nature of cryptocurrencies and blockchain. It can also be due to the sheer volatility of the markets that can catch even the most experienced trader off-guard at any time.

The world of crypto trading can be murky. To a large extent, this is attributable to the still-novel nature of cryptocurrencies and blockchain. It can also be due to the sheer volatility of the markets that can catch even the most experienced trader off-guard at any time.

The world of crypto trading can be murky. To a large extent, this is attributable to the still-novel nature of cryptocurrencies and blockchain. It can also be due to the sheer volatility of the markets that can catch even the most experienced trader off-guard at any time.

What’s the beginner crypto trader to do?

Well, crypto enthusiasts can always turn to Crypto Twitter. In this context, Crypto Twitter refers to accounts that have dedicated themselves to providing trading analyses, rationale, and making sense of crypto market moves in general.

In this piece, we provide some of the best crypto trading and analysis experts on Twitter.

Here are their twitter handles:

1. Bitcoin Jack @BTC_JackSparrow

Bitcoin Jack is a crypto trader and a market analyst who offers his analysis in the form of visually stunning charts. If you are a fan of charts and graphs and not so much into theory, then his views on the market are worth following.

2. Mayne @Tradermayne

Mayne is a crypto trader who uses price action as the basis of his analysis, trading insights, and market moves. And he’s happy to share his ideas with his 64k+ Twitter followers. Having been involved in cryptos since 2013, he’s more experienced in the ins and outs of crypto trading than your average crypto investor.

3. Philakone @PhilakoneCrypto

Philakone is also referred to as ‘Philakone Sniper Day Trader.’ On his Twitter page, you’ll find high-quality research and trading resources in the form of videos and charts. He doesn’t shy either from sharing how trading is affecting his personal life.

4. Crypto Rand @crypto_rand

217k+ followers have seen reason to camp at Rand’s Twitter timeline. He regularly shares his technical analyses and connections between crypto and the real-world economy.

5. Luke Martin @VentureCoinist

Luke Martin is one of crypto Twitter’s most-followed figures. His followers are treated with regular technical analyses, charts, and market commentary.

You can subscribe to his daily live webinar, a favorite among traders, for $50 per month. If you want an in-depth analysis of price movements of altcoins, then his account is a must-follow.

6. @filbfilb

Twitter user filbfilb regularly tweets about crypto charts, his trading analyses, and ideas, as well as his predictions on Bitcoin’s future performance. He also writes a weekly newsletter that provides further insights, and he maintains a free journal on Telegram that anyone can access.

7. Anondran @AnondranCrypto

Anondran is a crypto trader, investor, and analyst who has been around since 2015. On Twitter, his fans can expect frequent commentary on what’s happening in the crypto space, as well as his predictions on the most popular cryptocurrencies.

8. Alvin Lee @onemanatatime

Lee is a crypto trading expert who has been around the block for a while. He runs the Aluna Crypto Currency and Trading (LINKKKM) blog, on which readers gain access to different trading/market analysis strategies and tactics. On Twitter, he provides his take on future price movements as well as his own technical analyses.

9. Vinny Lingham @VinnyLingham

Lingham is the co-founder of Civic, a blockchain-based identity management startup. He’s known to provide surprisingly accurate price forecasts on Bitcoin. Lingham is also a frequent fixture at crypto events, where he’s invited to share his insights on the current and future crypto landscape.

10. CoinDesk Markets @CoinDeskMarkets

This isn’t an individual trader. It’s CoinDesk’s official crypto markets Twitter account where they provide commentary on crypto-related events, analyze signals, and follow market moves closely. It’s one of the best accounts to follow if you don’t want to miss the price action of the most popular cryptos.

Final Thoughts

While these crypto trader accounts provide highly relevant and useful insights on what’s happening in the market, remember no trader is infallible or always correct. If you take everything they say and blindly replicate, it’s one way to lose money. These accounts, and any other similar accounts, should aid you in your own research, not replace it.

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Cryptocurrencies

Ethereum 101: Here Is Everything You Need to Know About Ethereum Blockchain

Any newcomer in the crypto sphere will soon notice the fuss around Ethereum – being one of the most talked and written about cryptocurrencies and the second most popular after Bitcoin. After breaking out in 2015, Ethereum has inspired not just crypto but the entire tech space for its novel offerings, which showed everyone that blockchain could be used for more than just digital money.

Ethreum_Forex Academy

Any newcomer in the crypto sphere will soon notice the fuss around Ethereum – being one of the most talked and written about cryptocurrencies and the second most popular after Bitcoin. After breaking out in 2015, Ethereum has inspired not just crypto but the entire tech space for its novel offerings, which showed everyone that blockchain could be used for more than just digital money.

Any newcomer in the crypto sphere will soon notice the fuss around Ethereum – being one of the most talked and written about cryptocurrencies and the second most popular after Bitcoin. After breaking out in 2015, Ethereum has inspired not just crypto but the entire tech space for its novel offerings, which showed everyone that blockchain could be used for more than just digital money.

This article shines a light on the most nagging questions about Ethereum for crypto veterans and novices alike. From “what is Ethereum?” to “how do I mine Ethereum?” to why you should care about Ethereum, we cover it all.

What is Ethereum?

Ethereum is a public, distributed, and blockchain-based platform that allows individuals to create smart contracts and decentralized applications (DApps). Smart contracts are just like traditional contracts involving two or more people who come to an agreement on something. Except, smart contracts are self-verifying and self-executing and hence do not need intermediaries. Decentralized applications are a new kind of application not owned or controlled by third parties and, for this reason, are uncensorable.

How is Ethereum Different from Bitcoin?

Bitcoin was the first blockchain. It originated the idea of a public, open-source, decentralized, and immutable ledger system to verify, secure, and replicate transaction data across thousands of computers around the globe.

Ethereum takes the concept of Bitcoin and expands it. While Bitcoin was created solely as a peer-to-peer electronic cash system through which users can transfer value, Ethereum allows developers from anywhere to run code atop the network and create amazing applications. Applications can be of any nature really: be it voting, games, health records, finance, prediction markets, and more.

How Does Ethereum Work?

Ethereum is a decentralized platform, meaning no one owns it, and no one can delete records or censor it. It is decentralized courtesy of being distributed. The distributed status of Ethereum means anyone can access, see, and download the Ethereum ledger.

Think of a ledger that’s operated by several people with equal access and control. Each maintains a list of all transactions, and all records must be pre-approved by all parties. In this way, no one can modify, steal, or manipulate the data. The Ethereum blockchain operates much the same way, except that it’s thousands of people involved this time.

Transactions are verified by ‘miners’ who check the authenticity of transactions before adding them to the blockchain. Once a transaction goes on the blockchain, it’s immutable, meaning it can’t be deleted or reversed – by anyone.

The Ethereum blockchain and others like it, such as Bitcoin, have one security flaw known as  a ‘51% attack.’ This is a scenario in which an entity takes control of more than 50% of the computing power of the network.

This would essentially be holding the network hostage – and it would allow the perpetrator to double-spend coins, prevent transactions, and stop miners. While a 51% attack is plausible, it’s extremely rare. This is because for one to control over 50% of the computing power of a blockchain network, they would require an enormous amount of resources that are too expensive. Even the most funded person would find this an extremely tall order.

What Is Ether?

Ether (ETH) is the native cryptocurrency of the Ethereum blockchain. Developers use Ether to pay for the execution of commands on the Ethereum network. It’s also a tradable cryptocurrency and a digital store of value.

Where does Ethereum Derive Value? 

Ethereum derives its value from its ability to support smart contracts and a variety of decentralized applications. Although multiple other blockchain projects are taking after its model and are its direct competitors, Ethereum has the headstart advantage – courtesy of being the pioneer smart contracts and DApps blockchain.

Ethereum enables fast, secure, and inviolable processes – from contracts to voting, to record-keeping, and more. Usually, these processes would take days and significant amounts of money. Ethereum proposes to change this.

How Can I Mine Ethereum?

Ethereum mining utilizes a proof-of-work (PoW) consensus mechanism for verifying and confirming transactions.

PoW involves miners generating a random string of numbers (running the ‘hashing script’) until one of them finds the correct one. When that happens, they will broadcast the proof to the rest of the network, which will then allow them to confirm the next block of transactions. The idea is to ensure that anyone who gets to verify blocks has invested significant computational power (proof of work).

The PoW process involves miners competing with each other to find the solution first. The more guesses your machine can make per second, the better your chances of finding the solution fast and earning a reward – known as ‘miners reward.’ Currently, the successful mining of a block on the Ethereum network gets a miner rewarded 2 ETH. The reward was 3 ETH up until the Constantinople upgrade in 2019.

Ethereum mining is a straightforward process as long as you have the right equipment. First, you need to install two software packages. One of these is an Ethereum client that connects you to the Ethereum network and synchronizes the whole ledger, allowing you to see real-time the activities of all other network participants. It also avails all the data you need to start mining.

Ethereum clients are written in Geth and Parity, which are the blockchain’s most popular programming languages. The client’s come equipped with comprehensive instructions for installation.

The next thing is to install the mining software. The mining software is responsible for handling the guesses, while the client is responsible for updating the ledger – in real-time.

Beginner miners may find it more profitable to join a mining pool rather than go solo. A mining pool is a group of miners who combine their hashing power so as to improve the chances of finding the correct guess faster and earn rewards. The rewards are then split in proportion to the computational power each contributed.

Ethereum will not rely on mining forever, though. The network plans to ditch proof-of-work and transition into proof-of-stake (PoS). Unlike proof-of-work, which relies on computational power, proof-of-stake relies on stakeholders to secure the network and achieve consensus. PoS is not only faster but also consumes far fewer resources than PoW.

How to Buy Ethereum

Ethereum is the second most popular cryptocurrency, and so grabbing some Ether for yourself should be pretty straightforward.

One of the most popular ways to buy any cryptocurrency is to do so via a crypto exchange. Exchanges are platforms where people can buy and sell all manner of crypto. As of now, there are countless crypto exchanges available. Always ensure to purchase your crypto from a trusted and verified exchange. Some options include Coinbase, Binance, Huobi, Kraken, CoinEx, eToro, Coinswitch, BitMex, Changelly, Kucoin, BitStamp, Poloniex, and so on.

Alternatively, you could use peer-to-peer services, such as LocalCryptos, which allows you to transact directly with a local person selling crypto.

Once you grab yourself some Ethereum, you’re going to want to guard it jealously. This means keeping it in a safe place where hackers cannot reach. The best option is a hardware or paper wallet – which is both offline and impossible to get hacked, fall prey to phishing scams, and so on. Storing your coins in an exchange is a complete no-no. Exchanges are notorious for getting hacked, and there is no guarantee that you will get your money back should this happen to your exchange.

How Much Does Ethereum Cost? 

Like any cryptocurrency, Ethereum is subject to volatile and unpredictable price changes, making it impossible to predict a definitive price for the currency at any given time.

As of May 19, 2020, Ethereum is trading at $210.16. This is a far cry from its all-time high of $1432.88 on Jan 13, 2018. But it’s a marked improvement from its all-time low of $0.420897 in 2015.

Buying Ethereum involves speculation, just like for any other crypto. If you have the money now, but it’s not enough to quite hit the mark, you can wait until the price fluctuates down and swoop in.

Fascinatingly, Ethereum is divisible up to 18 decimal places. This means you can buy as little as 0.000000000000000001 Ethereum. You can buy whichever amount you want, whether it’s 1%, 40%,50% and so on.

Why Should I Care about Ethereum?

You should care about Ethereum because it has the potential to revolutionize how we do things across industries. Ethereum is also one of the stalwart cryptocurrencies – not “making a splash today and gone tomorrow.” What’s more, organizations such as the Ethereum Enterprise Alliance are designed to drive the adoption of Ethereum blockchain technology across industries, pushing it closer to the mainstream.

For this reason, you can be assured the currency is a guaranteed, long-term store of value. Despite competitor projects emerging, Ethereum has the star and pioneer power to keep it ahead of the curve.

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Cryptocurrencies

What is The Difference Between ASICs vs GPU Mining?

After Bitcoin entered the scene 11 years ago, the word mining took a new meaning altogether. Cryptocurrency mining is the mechanism through which new coins are introduced into circulation, and transactions are processed. The appeal of crypto mining is that miners are rewarded with crypto tokens, or transaction fees, depending on the network. While some miners do it for the thrill, others see it as a valid and even full-time investment.

Crypto mining_Forex Academy

After Bitcoin entered the scene 11 years ago, the word mining took a new meaning altogether. Cryptocurrency mining is the mechanism through which new coins are introduced into circulation, and transactions are processed. The appeal of crypto mining is that miners are rewarded with crypto tokens, or transaction fees, depending on the network. While some miners do it for the thrill, others see it as a valid and even full-time investment.

After Bitcoin entered the scene 11 years ago, the word mining took a new meaning altogether. Cryptocurrency mining is the mechanism through which new coins are introduced into circulation, and transactions are processed. The appeal of crypto mining is that miners are rewarded with crypto tokens, or transaction fees, depending on the network. While some miners do it for the thrill, others see it as a valid and even full-time investment.

What is Crypto Mining?

Crypto mining_Forex Academy

Crypto mining is the process through which specialized computers are used to discover new blocks on a crypto network by ‘guessing’ a random string of numbers until you find the right combination. (A block is a file of transactions plus the metadata of those transactions) This process is known as ‘proof-of-work.’ By discovering new blocks, miners get the right to verify the transactions and add them onto the blockchain. This process is crucial because it removes the possibility of double-spending coins.

Mining becomes harder as a cryptocurrency network becomes more popular, and the miners in a network increase.

In the early days of Bitcoin mining, anyone could mine Bitcoin as long as they had a computing component with sufficient processing power. But as more users trooped to the network, mining difficulty increased, and the average computer no longer cut it. This started a race into the manufacturing of more powerful and efficient hardware.

Graphic processing units (GPUs) were among the first machines that went into crypto mining. These virtually wiped out CPUs. While you can still mine using a CPU, it will largely be of no use since the cost of electricity that you will consume will far outweigh any meager profits you might (yes, might – since discovering new blocks is a game of chance) realize.

Over time, developers came up with mining equipment known as application-specific integrated circuits (ASICs). However, some cryptocurrencies are ‘ASIC-resistant’ (more on that later) and can only be mined with GPUs.

Let’s start with ASIC mining.

What is ASIC Mining? 

ASIC Miner_Forex Academy

Before we plunge full form into ASIC mining, let’s get a snapshot of what it’s about:

ASICs are algorithm-specific, meaning they are designed to mine just one type of coin. E.g., a Bitcoin ASIC cannot be used to mine Siacoin and vice versa.

  • They are highly efficient albeit very costly.
  • They consume less power.
  • They are easy to set up and start mining right away.
  • Their profitability declines fast as mining difficulty increases.
  • In the case of a hard fork, they are rendered obsolete to mine the new coin.

Now, let’s get into the intricacies of ASIC mining, starting with the definition. An integrated circuit is basically a microchip. An IC is one of the biggest technological advances today. Pretty much every electronic equipment uses one, from televisions to phones to GPS trackers to computers to ID cards.

The term application-specific implies that the microchip has been designed for a specific purpose. In this case, that means the IC has been designed to run an algorithm for mining a particular cryptocurrency. Seeing as the ASIC has been designed specifically for that particular coin, that means it’s highly customized, and hence efficient, for that end. Hence, any miner that possesses it has an edge in the business.

The thing with ASICs is that they can be risky. First, the cryptocurrency market is pretty unpredictable, with fortunes quite easily changing overnight. Cryptocurrencies are known to gain or lose up to 10% in just one day. Now let’s say a coin drops in value and stays there forever. Or a cryptocurrency developer decides to change the hashing algorithm. These events would render the ASIC machine useless.

Second, as with any technology, newer ways of doing things get discovered all the time.

Thirdly, as more miners join a network, the mining difficulty increases, and so does profitability.

ASICs and Centralization

Since ASIC miners are known to dominate the game for every cryptocurrency they touch, when the ASIC for a particular coin is made, it becomes almost the only viable way to mine it. Even if profitability drops, they remain the most profitable way to mine the crypto until a new and more powerful ASIC is developed. This results in centralization since it edges out the miners with less powerful mining equipment. This presents a problem since cryptocurrencies are supposed to promote decentralization and democratization in finance.

Cryptocurrency enthusiasts are, understandably, concerned with this state of affairs, and have taken steps to search for alternatives. One of the initiatives has been developing new hash algorithms that render cryptos ASIC-resistant. Another has been hard-forking, like in the case of Monero, in a bid to block ASICs. This doesn’t mean ASIC companies will not try and make equipment that’s compatible with the new algorithm. But that means they would need to change equipment every other time, which is not just expensive but also pointless.

GPU Mining 

Mining GPU_Forex Academy

Before we delve into the intricacies of GPU mining, let’s get a rough idea:

  • Can mine any cryptocurrency
  • Can be expensive
  • Setup may require special consideration for cooling, motherboards sizes, etc
  • More cryptocurrency developers are making ASIC-resistant coins
  • GPU mining proceeds are more stable
  • Can be utilized for non-crypto-mining tasks and, they have a higher resale value

While ASICs are still the most dominant crypto-mining equipment, the anti-ASIC sentiment is now becoming rife in parts of the crypto community. Cryptocurrencies, e.g Ethereum, are now using memory-hard functions or the X16R algorithm – which uses 16 different algorithms at random, making it hard to settle on one algorithm at any time. These initiatives make it possible for alternative mining methods, and GPUs fill in the gap.

However, there are a few downsides to GPU mining as well. First, they can be expensive and require a lot of cooling maintenance. Users also need to make sure that a GPU machine has enough RAM memory and a reliable motherboard. The electricity used is also high. Also, their scope is pretty limited since they can’t really compete with ASICs for some of the coins, such as Bitcoin.

As we’ve noted before, GPU mining is more flexible than ASICs since it can be used for any cryptocurrency. This flexibility can come in really handy, especially with the volatile cryptocurrency market when the fortunes for any cryptocurrency are pretty unpredictable. Also, since they are used for graphics processing, they can be channeled for multiple other uses were crypto mining to stop being viable.

Final Words

In terms of profitability, ASICs unquestionably take the lead over GPUs. Since ASICs are optimized for particular crypto, it means they are the only option that can conceivably mine that crypto with the most efficiency possible. Also, for cryptocurrencies that can be mined with ASICs, the machines completely dominate the space, rendering GPU mining profitability nearly impossible.

However, in terms of the decentralization philosophy of cryptocurrencies, ASICs don’t fit the bill. It’s very likely that ASICs might become obsolete in the coming years. Also, it’s not cheap to invest in ASICs, with a considerable investment but uncertain profitability, thanks to the volatile nature of crypto prices.

This, plus the fact that the crypto community continues to shift towards ASIC-resistant coins, makes the future of ASICs is uncertain. GPU mining, although not nearly as effective as ASICs, makes crypto mining attainable for everyone. It’s likely that GPUs are the future of the industry.

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Crypto Daily Topic

15 Best Bitcoin And Cryptocurrency Podcasts To Follow In 2020

The blockchain and crypto space can be quite intimidating for anyone trying to find their way for the first time. Granted, most people want to get straight to the basics of crypto trading, selling, and buying.

The blockchain and crypto space can be quite intimidating for anyone trying to find their way for the first time. Granted, most people want to get straight to the basics of crypto trading, selling, and buying.

The blockchain and crypto space can be quite intimidating for anyone trying to find their way for the first time. Granted, most people want to get straight to the basics of crypto trading, selling, and buying.

The crypto and blockchain space was intriguing from the start. From Bitcoin’s enigmatic creator to the 2017 boom that turned crypto traders/investors into overnight millionaires as well as the crypto market becoming the most traded in 2019.

Blockchain, the technology powering cryptocurrencies, is now one of the most sought-after technologies across almost every industry.  And how could we forget Bitcoin’s defying of doom predictions to be the most successful asset of the decade?

The industry is becoming a bigger force to be reckoned with every day. It’s natural to want to stay tuned to how events are unfolding in this space. Of course, there are numerous websites documenting everything, but if listening is more your speed, then podcasts are the way to go.

Here are some of the top-rated crypto and blockchain podcasts:

1. The Bad Crypto Podcast

The Bad Crypto Podcast is nothing like its name. On the contrary, the podcast is an impressively done and light-hearted take on crypto and crypto trends. It’s hosted by Joel Comm and Travis Wright and launched mid-2017.

By the sixth month, the duo had released its 100th episode and, within a year, 200 episodes.

The Bad Crypto Podcast is an easy listen – delightfully devoid of the technical jargon and complex market analyses. This podcast can be great for newcomers who want to slowly ease into the world of crypto while not missing out on the important details.

2. Unchained

This is a crypto podcast hosted by former Forbes reporter Laura Shin and is one of the most popular crypto education space.

The Unchained’s audience regularly gets treated to in-depth conversations with some of the leading personalities in the blockchain and crypto space. Past guests include Binance’s Changpeng Zhao, Monero’s Ricardo Spagni, and Bitcoin developer Jimmy Song.

While it may at first sound intimidating, especially to novices, it’s one of the best resources around to learn about what blockchain’s all about and get a first-hand look into the thinking of influential figures and thought leaders in the crypto space.

3. Off the Chain

This is a podcast hosted by Anthony Pompliano, a finance and crypto analyst and writer of ‘The Pomp Letter’ – a crypto newsletter.

Like Unchained, Off the Chain provides a platform for blockchain entrepreneurs and technologists to share their insights about the present and future of blockchain.

Past guests include Bill Barhydt (creator of Abra wallet), American technology investor Keith Rabois, and crypto analyst Murad Mahmudov.

4. What Bitcoin Did

This is a podcast by Peter McCormack, who also runs a blog by the same name. The podcast airs two times per week, thanks to increased demand from the crypto community.

McCormack uses an interview-centered approach to discuss the hottest happenings in cryptoverse. McCormack has talked to some interesting personalities in the crypto space, including Luke Martin from Venture Coinist, crypto celebrity Jameson Loop – the guy who investigated the infamous Mt.Gox debacle Kim Nilsson, and Unchained host Laura Shin.

5. The Bitcoin Podcast

Launched in May 2015, the Bitcoin Podcast set the pace for Bitcoin/crypto podcasts. It’s a one-episode daily podcast with each episode taking at least one hour.

Listeners can expect a variety of host guests from varying backgrounds and hence a rich variety of content. Guests typically include people of interest in the blockchain and crypto space.

The podcast has grown in popularity over the years – and prompted the launch of the Bitcoin Podcast Network.

6. The Crypto Street Podcast

The Crypto Street Podcast is another podcast that takes an interview approach. The show’s guests are typically well-versed crypto traders and miners. Mostly, the guest is a well-known Twitter figure, invited to share their experiences, expectations, and ideas.

The show is hosted by three influential crypto enthusiasts (K1llerWh4le, CryptoDale, and Prince). And if Twitter’s your go-to source of crypto insights and news, then you’re in good company with the podcast.

7. Let’s Talk Bitcoin

When talking of crypto podcasts that started the game, Let’s Talk Bitcoin features among the pioneers. The podcast went live in 2013 and currently has 400+ episodes to its name.

Fans can expect up to two or three episodes per month.

Bitcoin Evangelist and bestselling author of Andreas Antonopoulos co-hosts the show alongside Antonopoulos – the author of several industry-leading books including Mastering Bitcoin, The Internet of Money, and The Internet of Money Volume Two.

8. Ledger Cast

Ledger Cast went live in 2017 and is one of the top crypto and blockchain podcasts available today.

The podcast, which is hosted by Josh Olszewicz and Brian Krogsgard, involves the hosts making sense of events in the crypto space.

Some of the topics have included: “Can Doge take alts to the promised land?” “The IRS wants to know if you bought crypto” and “Ethereum’s hard fork.”

9. Epicenter

This podcast is hosted by Brian Fabian Crain, Sebastien Couture, and Meher Roy.

The podcast was originally called Epicenter Blockchain before re-branding into its current moniker. The show focuses on startups that are incorporating cryptocurrency and/or blockchain into their business model.

Show guests are picked from the business, academia, crypto, and blockchain arenas.

10. Unconfirmed

If you prefer short and snappy content rather than long-winded monologues, then Unconfirmed is your go-to podcast. The show takes place once a week and runs for no more than 20 minutes.

The show features some of the most influential names in the blockchain and crypto arena who are invited to interpret the week’s biggest headlines.

11. Steal This Show

Steal This Show is not strictly a crypto-themed podcast, but listeners can expect the hosts to dive into the in-depth blockchain topics from time to time. The show is hosted by American filmmaker Jaime King and has previously explored topics such as the connection between file-sharing peer-to-peer protocol BitTorrent and cryptocurrency,  BitTorrent’s acquisition by Justin Sun’s Tron, and the regulatory gray area of cryptocurrencies.

12. Magical Crypto Friends

This show is hosted by industry heavyweights Monero’s Ricardo Spagni, Litecoin’s Charlie Lee, Blockstream’s CSO Samson Mow, and anonymous trader WhalePanda. Fans of the show can expect a new episode every month.

The team has, in the past, tackled topics such as regulation, decentralization, and the evolvement of Bitcoin since its groundbreaking launch more than ten years ago.

13. Blockchain Insider by 11:FS

This London-based podcast is hosted by Simon Taylor and Colin G. Platt, and it tackles the week’s most talked-about headlines in crypto and blockchain verse. The show’s enthusiasts can expect at least an episode each week.

14. The Trader Cobb Crypto Podcast

This podcast is hosted by Trader Cobb’s, a crypto trading trainer and one of the most sought-after crypto industry-leading voices. And listeners can tune in to get a first-hand look into his insights about the crypto market.

15. The Blockchain Show

Los Angeles-based The Blockchain Show is hosted by Ethan Kinderknecht, going live at least once a week. Kinderknecht’s approach is more blockchain rather than cryptocurrency and cryptocurrency markets. The show typically takes the form of an interview.

Final Words

Hopefully, by catching up with these shows, you will be acquainted with the blockchain and crypto space faster than you thought. Their insights will be handy in helping you gain a deeper understanding of both the blockchain and cryptocurrency topics as well as how to perfect your trading/investing skills.

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Crypto Daily Topic

12 Most Popular Telegram Channels for Crypto Trends, Investing, and Trading 

Crypto subjects are not for the faint of heart. They’re sometimes highly technical by nature, and with the unpredictable prices of the crypto market, it can be harder to keep up with what’s going on. Of course, when it comes to crypto trading, every latest piece of news of your favorite crypto is important. This is true for the traditional stock market, but even more so for the crypto market, which is affected by the smallest events.

Crypto subjects are not for the faint of heart. They’re sometimes highly technical by nature, and with the unpredictable prices of the crypto market, it can be harder to keep up with what’s going on. Of course, when it comes to crypto trading, every latest piece of news of your favorite crypto is important. This is true for the traditional stock market, but even more so for the crypto market, which is affected by the smallest events.

Crypto subjects are not for the faint of heart. They’re sometimes highly technical by nature, and with the unpredictable prices of the crypto market, it can be harder to keep up with what’s going on. Of course, when it comes to crypto trading, every latest piece of news of your favorite crypto is important. This is true for the traditional stock market, but even more so for the crypto market, which is affected by the smallest events.

One of the best places to keep on top of things is Telegram. The Durov brothers’ end-to-end encrypted platform has 400 million+ active monthly users and has become a crypto community favorite, with discussions on any and everything, from trading and investment tips to market behavior, to industry news, to memes and everything in between.

It would be ideal if all Telegram crypto channels were worth their salt. Unfortunately, you’re more bound to come across a Telegram channel full of inane content and even spam. That doesn’t mean all Telegram channels are like that.

We combed the internet to bring you the top telegram channels that are worth your time and attention.

1. UK Crypto 

Though it currently only has 1632 members, UK crypto focuses on quality over quantity, with a regular mix of educational content, trading insights, and the latest trends.

If you would like to learn how to expertly employ technical and fundamental analysis in your crypto trading, then UK crypto is your go-to telegram channel.

2. Cointrendz

If swing trading is more your jam, then you’ll be at home with Cointrendz. In the channel, you will receive a regular stream of updates on which cryptos are going bullish. If you are one for monitoring volume trends and taking what’s on the top, then Cointrendz has you covered.

Cointrendz currently has 5,951 members.

3. Trading Signals for Free

A trading signal is an indicator to buy or sell. A signal could indicate that a resistance or support level has been broken, that the volume for a cryptocurrency is on an uptrend, a new pattern is emerging, and so on.

With 578 members, Trading Signals for Free is a Telegram channel that provides reliable crypto trading signals, unlike other channels that claim to do so but, in actuality, are pump-and-dump schemes.

4. CoinMarketCap

CoinMarketCap has established itself as one of the best platforms for checking crypto prices, circulating volume, market position, chart history, and so on.

And Telegram users can find the website’s channel, providing them with a supply of the current statistics of the top 10 cryptocurrencies, including price changes, market cap, 24-hour volume, price history of the last seven days and so on.

5. Whale Club Bitcoin Traders 

Wait, a group for whales?! Not so fast. If that were the case, everybody would troop there to get the insider whale strategy. Whale Club Bitcoin Traders is a regular crypto channel with occasional tips on trading and analysis of what’s going to happen in the crypto market. 1, 714 people have subscribed to the channel currently.

6. ETH Trader

Unlike other crypto telegram channel groups, ETH Trader is a channel where Ethereum traders can receive regular updates on what’s happening with their fave crypto. Both novice and experienced traders can learn something every day from this channel. The channel has 4, 765 subscribers.

7. AirDropAlert

A cryptocurrency airdrop is an event where developers of a new currency distribute free coins to existing wallet addresses to promote its awareness and inspire/reward loyalty.

As people receive the tokens, they talk about it on social media and other forums, helping it gain traction. You can find info on upcoming airdrops in many places, including websites, Twitter, Facebook, and crypto forums.

However, if you like to stay updated on upcoming airdrops (who doesn’t?) and prefer Telegram, you need to join the AirDropAlert channel. Presently, the channel has 4, 560 members.

8. Crypto News

Crypto News may have only 335 members, but that small number has no bearing on the quality of the content that you will find on the channel. In fact, fewer members on a Telegram channel makes the platform more organized and manageable, improving the overall experience. On the other hand, a massive Telegram channel can feel cluttered and confusing just for the sheer amount of messages.

Crypto News is a telegram channel that provides a steady stream of news on the most relevant happenings in the crypto space. Members can share their insights and perspectives on these events.

9. ICO Countdown

Initial coin offerings (ICOs) are the cryptocurrency industry’s equivalent of IPOs. Through ICOs, upcoming crypto projects can raise money in order to fund their vision.

ICOs are another way through which to secure new tokens, and they are massively popular in the community. In the first half of 2019 alone, ICOs had raised a total of $1.97 billion. If you want to be in the know about upcoming ICOs, ICO Countdown is a great platform to join. The group has 5, 628 members.

10. Venture Coinist 

Venture Coinist is run by crypto Twitter influencer Luke Martin, who is one of the leading voices in crypto trading technical analysis. If you find thrill in technical analysis charts and spotting potential market entry points through them, then Venture Coinist is your go-to channel.

Martin breaks down the most popular altcoins but dedicates much of his time and effort to the top 10 cryptos by market cap. There is also a decent amount of educational content, including old charts. Through this, you can identify price patterns and see what triggered what event.

The channel currently has 3, 366 members.

11. Cointelegraph

Cointelegraph is the official Telegram channel by the crypto website Cointelegraph. The channel currently has 66, 127 members.

While the numbers seem daunting to keep up with, there are a few advantages to huge telegram channels. First, you are guaranteed to always find people online to chat with. Second, every single piece of information will always be taken apart and analyzed to the bone. It’s also hard for such an enormous number of people to fall victim to fake news, which is uber-common in crypto.

On the Cointelegraph channel, you will find the latest and most relevant crypto news, research on the newest and hottest trends, and market data and analysis.

12. The Crypto Room

The Crypto Room is a Telegram channel where you can interact with other members and interpret the goings-on in the crypto space. What you get is focused on discussions that are backed with evidence and are easy to follow.

The channel currently has 2, 057members.

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Crypto Daily Topic

Future Ready Economies: 5 Countries With a National Cryptocurrency

Cryptocurrency is an internet-based currency that’s faster, has lower transaction fees, prevents the problem of double-spending, and facilitates confidential transactions. These features have a massive appeal for any currency.

Cryptocurrency is an internet-based currency that’s faster, has lower transaction fees, prevents the problem of double-spending, and facilitates confidential transactions. These features have a massive appeal for any currency.

Cryptocurrency is an internet-based currency that’s faster, has lower transaction fees, prevents the problem of double-spending, and facilitates confidential transactions. These features have a massive appeal for any currency.

The solution of the double-spending solves a long-running problem that prevented digital currencies from taking form before Bitcoin. And confidential transactions have never been more relevant than now – in this era of ubiquitous internet.

With that in mind, it’s easy to see why cryptocurrency has developed such an allure, so much that some countries have developed a national currency, or are tinkering with the idea.

Along with that, the concept of a central bank digital currency (CBDC) in which a country’s digital currency is issued, controlled, and managed by the Central Bank has emerged.

This article takes a look at countries that have adopted a national cryptocurrency. 

Venezuela: Petro

Venezuelan Crypto Petro

In February 2018, the Venezuelan government launched a cryptocurrency by the name Petro – short for Petromoneda. On television, President Nicolas Maduro announced that his government would issue a cryptocurrency backed by Venezuela’s oil, gold, and mineral reserves.

According to Maduro, several Fiat currencies such as Russian ruble, the Chinese yuan, Turkish Lita, and the Euro would be convertible with the currency. The president also stated that the currency was made to mitigate the adverse effects of sanctions imposed on the country by the US government. In March 2019, President Donald Trump issued an order that effectively barred US investors from participating in the currency’s ICO sale.

With all this intrigue, though, it’s important to note that Petro was meant to be an alternative to Venezuela’s extremely unstable currency, which has seen a freefall since the country entered into a political crisis in 2016.

Critics have, however, been unforgiving towards the currency. To begin with, its white paper was without any technical oversight and was modified several times after its release. Additionally, the government’s claim that the currency would be backed by oil reserves is hollow at best, since the cryptocurrency’s code describes no such mechanism.

So far, the cryptocurrency has not enjoyed any support in Venezuela itself, let alone anywhere else. As reported by Mary Anastasia O’Grady for the Wall Street Journal in a wittily titled article: “Venezuela Puts the Crypt in Cryptocurrency,” Venezuelans would rather stick to the dysfunctional and hyper-inflated national currency Bolivar and the US dollar than embrace the all-smoke-but-no-fire cryptocurrency.

Dubai, UAE: emCash

Dubai emCash Cryptocurrency

In 2017, Dubai announced a national “encrypted digital currency” called emCash through which people could “use to pay for various government and non-government” services, as well as “varied payments, from their daily coffee and children’s school fee to utility charges and money transfers…”

The project was overseen by the Dubai Department of Economic Development, UK’s Tech Grp LTD, and Dubai’s Emcredit as well as the Pundi X crypto company.

In the statement, Emcredit CEO Muna Al Qassab said: “Customers can choose between two payment options on the emPay platform – the existing dirham payment or emCash. While the dirham payment goes through normal settlement procedures, intermediaries, and costs, emCash payments are settled directly between the user and merchant.” He also added that “emCash provides real-time value movement and merchants can pass the cost-benefit to the emCash holder. It also reduces inflation since the currency is issued in real-time based on demand.”

Senegal: eCFA

Senegal eCFA Digital Currency

Senegal was one of the first countries to adopt a national digital currency. In December 2016, the country launched eCFA, a digital currency named after CFA, the country’s national Fiat currency. eCFA takes the concept of CBDCs, and as such, it’s controlled and issued by the country’s central bank.

eCFA was brought to life through the collaboration of Senegal’s local bank Banque Régionale de Marches and Ireland-based crypto company eCurrency Mint Limited. eFCA is meant for distribution alongside the country’s Fiat currency as legal tender.

BRM and eCurrency released a statement stating: “The eCFA is a high-security digital instrument that can be held in a mobile money and e-money wallets. It will secure universal liquidity, enable interoperability, and provide transparency to the entire digital ecosystem in WAEMU (West African Economic and Monetary Union.”

The Marshall Islands: SOV

Marshall Crypto SOV

The small country located in Oceania already adopted a national cryptocurrency known as SOV – for Sovereign. The country has a population of about 59,000 people as of 2020. It has a close relationship with the US and has been using the US dollar as its official currency.

However, since March 2018, the country went the way of cryptocurrency, implementing SOV as the legal tender. SOV’s maximum supply will cap at 24 million to prevent inflation.

The island’s government passed a Declaration and Issuance of the Sovereign Currency Act, effectively making the currency the national tender. Speaking to Reuters at the time, minister-in-assistance to president David Paul said: “As a country, we reserve the right to issue a currency in whatever form it is, whether in digital or fiat form.”

He added that SOV would be designed collaboratively with Israel-based fintech company Neema, and would be publicly released through an Initial Coin Offering. CEO Barak Ben-Ezer told the media that the currency is “completely decentralized and the government cannot control the money supply…”

China: Digital Yuan

Chinese Crypto

China is known to have somewhat of a love-hate relationship with cryptocurrency. It has previously banned crypto exchanges and crypto-related platforms. It has also previously clamped down on social media posts that talk about Bitcoin. In October 2019, however, the country suddenly took a U-turn and started doing the exact opposite. Any social media posts calling crypto a scam were the ones that were being cracked down upon, instead.

Around the same time, the country introduced a digital currency across four cities as a part of a test program on a homegrown crypto. These cities were Shenzhen, Suzhou, Chengdu, and Xiong’an. The idea was to assess the currency’s functionality.

The launch followed nearly four years of research by China’s central bank. The currency has no official name yet and is dubbed “DC/EP” for “digital currency/electronic payment.” The currency takes after some of the core features of crypto but excludes the touted anonymity and decentralization.

Nonetheless, China’s authoritarian government may not be exactly warm and fuzzy towards the idea of a decentralized currency. A centralized one would be easier to monitor, track, and keep in check.

Closing Thoughts

The idea of a national cryptocurrency is no longer a far-fetched concept. While some countries have flatly rejected the idea of cryptocurrency alone, others have taken the entirely opposite approach. Are we going to see more countries following the path of these countries? Frankly, governments and cryptocurrency have always been a touchy topic. We can only watch it.

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Crypto Daily Topic

Crypto Glossary: Most Popular Crypto & Blockchain Terms and Phrases

The crypto and blockchain worlds are oftentimes referred to as cryptoverse or blockchain verse for simply being an independent and relatively new financial ecosystem. From the concepts to the unique language, it can be overwhelming to play catch up with all the words and phrases, especially if you are new to the trade. For instance, what is a blockchain? What does “HODL” or “mooning” mean?

Cryptocurrency Word Cloud | Forex Academy

The crypto and blockchain worlds are oftentimes referred to as cryptoverse or blockchain verse for simply being an independent and relatively new financial ecosystem. From the concepts to the unique language, it can be overwhelming to play catch up with all the words and phrases, especially if you are new to the trade. For instance, what is a blockchain? What does “HODL” or “mooning” mean?

The crypto and blockchain worlds are oftentimes referred to as cryptoverse or blockchain verse for simply being an independent and relatively new financial ecosystem. From the concepts to the unique language, it can be overwhelming to play catch up with all the words and phrases, especially if you are new to the trade. For instance, what is a blockchain? What does “HODL” or “mooning” mean?

This crypto glossary helps you familiarizes yourself with the most common terms and phrases that you will almost certainly come across as you navigate the world of cryptocurrency and blockchain.

We cover everything – from the meaningful ones to the slang, and anything in between – here: 

51% Attack

A 51% attack is an attack on a blockchain involving a party taking control of over 51% of the network’s hash rate. This would render the blockchain vulnerable, allowing the party to double-spend coins, hijack transactions, prevent the verification and confirmation of transactions, and stop miners from completing transactions.

Block Height

Block height is the numeric reference to any block on a blockchain. The first-ever block is referred to as block height 0.

Halving

The Bitcoin protocol is programmed such that only 22 million coins will ever exist. To control the release of new coins, mining rewards are slashed in half after every 210,000th block. In the beginning, the reward for mining a new block was 50 BTC. That was halved to 25 in 2012 and again to 12.5 in 2016. It fell again to 6.25 a week ago. After the 64th’ halving’, no more bitcoins will be released. That’s estimated to happen around 2140.

HODL

HODL is a meme in the crypto sphere that refers to holding onto your crypto rather than selling. It came into existence in 2013 when a drunk crypto trader wrote ‘hodl” rather than ‘hold’ on the bitcointalk.org forum. See the original thread here.

Lambo

‘Lambo’ for Lamborghini is a popular phrase in crypto lingo. It symbolizes the ultimate dream for a crypto trader: to be rich enough to afford a Lamborghini!

Mooning

This refers to the phenomenon of a cryptocurrency shooting up massively in price, seemingly out of nowhere. It was coined in 2017 when this was a regular trend. The entire crypto market ballooned from $15 billion around January to a jaw-dropping $600 billion by December. Ripple benefited the most from the boom, gaining by 28,963% over the period.

Satoshi

Satoshi is the smallest unit of Bitcoin. It is the hundredth millionth of a single bitcoin (0.00000001).

Flippening

Flippening is when another cryptocurrency will topple Bitcoin from the top of the crypto market. Ethereum and Litecoin have been touted to be potential ‘flippeners.”

Whales

These are individuals or entities with significant holdings of a cryptocurrency. If they sell their holdings, the market will feel the effect – just as whales displace water when they move.

Exit Scam

This is a crypto scam in which scammers launch a promising crypto project. They will then raise funds through an ICO. The business will then exist for a while, all while demonstrating activity and progress in the roadmap. Soon, however, it vanishes into thin air, leaving investors in the lurch.

Shitcoin

This is a worthless cryptocurrency that has mostly failed to live up to initial craze or was never a big deal to begin with—a valueless or a copycat currency.

Cryptojacking

Cryptojacking refers to the act of a hacker using malware to utilize your computer to stealthily mine crypto.

Choyna

A distortion of China, a country with a love-hate relationship with cryptocurrency and one with the largest number of miners.

Shill

Shill refers to an individual who underhandedly promotes a digital currency project while pretending no to, and who is potentially paid to do so.

Weak Hands

Weak hands refer to inexperienced traders who make emotional trading decisions. These traders will usually sell whenever the market takes a bearish trend or in the event of bad news. It’s the opposite of strong hands who in turn, are uber-good in HODLing.

Arbitrage

This is the difference in the price of a cryptocurrency in different exchanges. It allows savvy traders to buy crypto at a lower price on one exchange and sell it at a higher price at another, making a profit.

Bug Bounty

This is a reward offered by software developers for people to identify software vulnerabilities or bugs in code. This allows developers to identify and eliminate any errors in a project before it’s officially released.

DApp

DApp or ‘decentralized app’ is an application that operates in a peer-to-peer, decentralized environment. It’s not controlled by third-parties, and it cannot be censored. Such an application is the polar opposite of applications such as Facebook and Google, which are institutionally-owned and thus controlled by third parties. Examples of DApps included decentralized Twitter alternative Mastodon, popular cat game Cryptokitties, and crypto exchange Etherdelta.

Fork

A fork is essentially a blockchain splitting into two branches. This can happen for any of several reasons: security update, a scalability update, part of the community wanting to go another direction, and so on. There are two types of forks. A soft fork is compatible with earlier versions of the chain. A hard fork is a radical and permanent offshoot that’s not compatible with earlier versions.

Mainnet

Mainnet is short for ‘main network’, and it refers to the actual network on which transactions and other operations will take place. A mainnet is the opposite of a testnet, on which trials are run.

Airdrop

This is a free distribution of tokens to a crypto community. The idea is to promote the project or to thank people for signing up.

Bitcoin Maximalists

These are people that are diehard Bitcoiners. Bitcoin maximalists believe with unwavering conviction that the currency is the most superior cryptocurrency and the only one worth caring about.

ICO

An ICO is short for ‘Initial Coin Offering’ and refers to the process of a cryptocurrency project raising funds by selling crypto. Interested investors can then buy the coins. ICOs are very much like Initial Public Offerings (IPOs) through which traditional companies raise money by floating shares and stocks.

Mining

Mining is the process of verifying, confirming, and adding transactions to the public ledger. The cryptographic nature of cryptocurrencies means this process will require massive computational resources. People who provide these resources are called miners. In exchange, a blockchain network rewards miners with crypto coins or part of the transaction fee for the services.

Permissioned Ledger

Permissioned ledger is another term for private ledger. These are blockchains in which only authorized participants can access and initiate transactions. Permissioned ledgers are mostly found in private organizations since they can’t store sensitive data on public blockchains such as the Bitcoin blockchain.

Private Key

A private key in cryptocurrency is like your bank passcode. It allows you to access, send, or withdraw coins. If someone gets their hands on your private keys, they can access your funds. Crypto transactions are irreversible, implying that if someone withdraws your funds, they’re gone forever. It also means you have to take every available safeguard to protect your private keys.

Public Key

A public key is an address through which you receive cryptocurrency, either from people or a crypto exchange. A public key is very much like your bank account through which people send you money. Sharing your public key does not compromise your funds.

Cold Storage

In the context of cryptocurrencies and the blockchain network, cold storage refers to the keeping of your private keys offline. This makes it immune from hacking, malware, phishing attacks, and other online vulnerabilities. Cold storage is by far the safest option for storing your crypto funds. It’s highly recommended to keep especially large crypto holdings in cold storage.

Blockchain

A blockchain is a cryptographically secured, distributed, immutable, and time-stamped series of data records. There are two types of blockchains – public and private. Public blockchains are publicly available, and anyone can participate. The Bitcoin and Ethereum blockchains are examples of public blockchains. Private blockchains are owned and managed by private enterprises.

Altcoins

Altcoins is the name given to all other cryptocurrencies apart from Bitcoin. An altcoin can have its own independent blockchain or be built atop a blockchain that supports smart contracts such as Ethereum, Stellar, and NEO.

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Crypto Daily Topic

Why You Shouldn’t Join Crypto Signal Groups And What To Do Instead

The allure of cryptocurrency has drawn millions into the craze. The stories of people becoming millionaires overnight during the 2017 boom are too irresistible. As such, it’s easy to have an unrealistic view of how people make money off crypto trading.

Crypto Trading Signals |Forex Academy

The allure of cryptocurrency has drawn millions into the craze. The stories of people becoming millionaires overnight during the 2017 boom are too irresistible. As such, it’s easy to have an unrealistic view of how people make money off crypto trading.

The allure of cryptocurrency has drawn millions into the craze. The stories of people becoming millionaires overnight during the 2017 boom are too irresistible. As such, it’s easy to have an unrealistic view of how people make money off crypto trading.

When getting started with crypto trading and digging for helpful resources, you’ll likely come across “signal trading groups.” These groups promise to help you maximize on your trades by providing you with winning buy/sell signals. However, you need to take these promises with a grain of salt.

What are Crypto Signals Groups? 

These are communities/groups where the creators publish live trades that members can use to enter into trades. The essence of a crypto signal group is for the members to ease into crypto trading by following these guides/signals that dictate to them where and when to buy crypto and when to rope in profits.

Crypto signals groups can be paid or free. Usually, paid crypto groups offer deeper insights, more regular signals, and in some cases, trading advice. Free groups, on the other hand, are more likely to merely churn out signals without much thought paid to the process.

Crypto Signals | Forex Academy

In an ideal environment, a crypto signal group should guide traders to make profitable decisions backed by actual market analysis and accurate interpretation of market trends. Instead, we have unoriginal info being packaged as new, overly expensive subscriptions not worth the penny, and other undesirable practices around the art that should have you questioning the need to join.

Here are some compelling reasons why you shouldn’t join crypto signals groups.

1. Targeting of the Inexperienced

Usually, crypto signal groups target beginner traders who are still looking to gain a foothold in the world of crypto trading. Since they’re still familiarizing themselves with even the tiniest of details, they’re willing to fork out cash for the promise of handholding.

But that’s hardly the problem. The thing is, these traders are likely to accept any and all information coming their way and trust it as the gospel. One of the surest things in crypto trading is doing your own research and verifying information. If you’re not doing this, you’re risking money. In crypto trading, no one can look out for your interests better than you can.

2. No Learning Here

Some crypto signals groups, especially paid ones, provide in-depth analysis of crypto trends, what’s triggering what in the crypto world, and how you can better optimize your knowledge for smart decisions.

But these groups are the exception, not the norm. Most crypto signal groups typically spoon-feed traders, who then never get to learn why certain calls were made, why the crypto market is moving a certain way, and how to base future trading decisions.

3. Bank-breaking

As we’ve noted before, some crypto signal groups are free. But for the most part, these groups are low-effort.

Paid groups, for their part, cost money. Some go for up to hundreds of dollars per month. Most crypto traders are just trying to make money. If they follow trade signals blindly, it can lead to their entire savings going up in smoke.

4. Pump and Dump Scams

Some crypto signal groups are run by individuals who do the right thing. Others are pump and dump scams. Usually, the group leader will hype up some low-cap coin and sing praises of how it’s going to be the next big thing (pumping). This will cause the coin’s demand to shoot up as more people rush to invest in.

After the price soars, the group leader will then offload their holdings. This is what’s called ‘dumping’. After offloading, the coin floods the market again, losing value. Investors will then be left with a worthless coin in their hands, one which they might never get an opportunity to offload profitably.

5. Work of Copy

Most of the time, the ‘novel’ innovation presented in these groups is anything but novel. On the contrary, many of the group leaders of these groups are actually following other crypto signals groups. Then, they will gate keep the best of the info and present the rest.

Other group leaders will relay buy and sell signals without a single shred of analysis on how they arrived at a particular decision. They make it look like the market is ripe for amazing profits anytime. The truth could not be more different.

6. Manipulation and Lies

Quite often, these groups will say anything just to get more subscribers. But without you going back to their posts and comparing them with actual market figures, it’s very easy to get duped. It’s not uncommon to see signal groups making unrealistic claims about the massive profits they stand to gain, while in actual sense, they’re manipulating figures.

7. Copycatting 

It’s exactly as it looks like. The information these groups are peddling – you too can find it where they’re sourcing it from. Many of the most successful traders post their analysis on forums like Facebook and Twitter.

The thing is, this info is freely available. Its originators aren’t charging for it, so why should you? Moreover, when you go to the original source, you get to learn so much more than just responding to signals.

8 Here Today, Gone Tomorrow

Again, there’s no catch here. Most of these group leaders are in it for the money, and guess what? There’s the chance they’ll be gone as soon as they figure they’ve made enough of it. And, of course, if they disappear, chances are high the group will too and with it, your money.

What You Can do Instead

Instead of joining crypto signal groups, which are rarely worth the money, what can you do instead? One of the surest strategies you can look into is social trading. Social trading is not a new thing by any means. Going back centuries, people have always looked upon each other to be guided on critical decisions. By listening and taking cues from others, we can always make wiser decisions on many things.

Social Trading | Forex Academy

The same applies to modern trading. Experienced traders make better decisions than beginners primarily due to their exposure in the game and continued mastery of the skill. Some platforms such as eToro allow traders to leverage the knowledge of experts in the community so as to improve on decision making and portfolio and asset choices. Social trading can either be copy trading or relying on social forums for trade ideas.

  • Copy Trading 

Copy-trading allows inexperienced traders to copy the moves of more experienced and seasoned traders. This strategy gives traders the opportunity to participate in the markets when they don’t have the time or experience to do so.

New traders get to rely on others’ experience while acclimatizing to the trade. They also get the chance to learn new strategies from others and, in the process, become better traders themselves.

  • Social Forums 

Social Forums are avenues where you can talk to other traders and exchange trading ideas and knowledge off each other. These forums are on platforms such as Reddit, Telegram, Twitter, and Facebook. Other forums were made with the sole goal of building reliable crypto communities.

Topics in these communities are exclusively dedicated to discussing trends in crypto, trading, market movements, mining, and other crypto trading technicalities. Some of the most popular crypto forums include Bitcointalk.org, Altcoincommunity.net, Mastersofcrypto.com, and Cryptocurrencytalk.com.

Final Thoughts

The ideal crypto group signal should be reasonably priced, provide original and profitable ideas, and provide insightful market analysis. Even then, these kinds of groups are not necessary for your path as a crypto trader. Following the moves of actual industry experts and learning from the insights of fellow traders can prove to be a far more fruitful approach.

Categories
Cryptocurrencies

Bitcoin Mining Pools: Here Is All You Need To Know About Bitcoin Mining Pools

Any new Bitcoin user will tell you they’ve heard words like “miners,” “mining pools,” and “ASICs” being thrown around. But it’s not immediately clear what these terms mean, or whatever role they play in the Bitcoin ecosystem.

Bitcoin mining pools | Forex Academy
Photo by Dmitry Demidko on Unsplash

Any new Bitcoin user will tell you they’ve heard words like “miners,” “mining pools,” and “ASICs” being thrown around. But it’s not immediately clear what these terms mean, or whatever role they play in the Bitcoin ecosystem.

Any new Bitcoin user will tell you they’ve heard words like “miners,” “mining pools,” and “ASICs” being thrown around. But it’s not immediately clear what these terms mean, or whatever role they play in the Bitcoin ecosystem.

On the other hand, we have aspiring Bitcoin miners who are usually torn between going solo and joining a mining pool and are yet unacquainted with the latter option.

In this guide, we delve into the intricacies of Bitcoin mining pools and answer some of the most burning questions surrounding the topic.

What is Bitcoin Mining? 

Bitcoin mining is the process of adding new blocks and transactions on the Bitcoin public blockchain. It involves miners guessing or playing with a random string of numbers and alphabets (known as a hash) until they arrive at the correct hash for the next block. A ‘block’ is a file that consists of transactions that have to be verified before being added to the blockchain.

Bitcoin miners utilize mining equipment known as “application-specific integrated circuits” (ASICs) that are designed to make a massive number of guesses per second. In the early days of Bitcoin, anyone could mine bitcoins on their PC from the comfort of their home. However, as the network became uber-popular and more miners joined the network, the mining difficulty (how hard it is to find new blocks) increased, rendering the average computer unsuitable for mining bitcoins.

What’s a Mining Pool?

What is Bitcoin Mining pool

A mining pool is a group of miners who come together and combine their computational power in a bid to find new blocks faster. With the combined hashing power, the odds of finding new blocks are multiplied. If a pool succeeds in finding a block, the block reward is shared among the pool participants according to how much processing power each contributed. The more processing power a miner contributed, the more block rewards they will receive.

What is Block Rewards? 

In Bitcoin mining, a block reward is what the bitcoins miners receive for discovering new blocks. This reward is halved after mining 210,000th block, which is roughly every four years.

In the beginning, mining a block got a miner rewarded with 50 BTC. That figure was halved into 25 BTC in 2012. It was then halved again in 2016 to 12.5 blocks. It was again halved a few days ago to 6.25. This was Satoshi Nakamoto’s idea of avoiding inflation.

Mining Pool Methods 

Bitcoin mining pools do not have a standard operating procedure. Each pool has a different approach to the sharing of block rewards, and so on. Still, many of the most popular pools have certain protocols in common. Let’s get a look at the most common below:

  • Proportional mining pools: In these pools, miners earn shares up until the pool finds a block, after which each miner receives block rewards in proportion to how much shares each has found.
  • Pay-per-share pools: These pools operate a lot like the proportional mining pools, only this time, a miner is guaranteed of a payout regardless of when the pool collectively finds a block. Miners are paid with the existing balance in the pool, and they can cash out at any time.
  • Pay On Target: In these pools, a miner is paid based on the difficulty of work that they plough back to the pool, rather than the difficulty served by the pool itself.
  • Capped Pay Per Share: This is a reward system through which miners receive as much as possible from discovering blocks while also ensuring the pool never goes bankrupt.
  • Bitcoin Pooled Mining: This system entails giving more weight to recent shares than to older shares. Each new round starts when a new block is discovered, and not before. This reduces the chance of miners switching pools during a round so as to maximize profits – which is considered cheating.

Why Mine Bitcoin in a Pool? 

As we’ve noted before, Bitcoin mining is a game of chance. Thus, it pretty much depends on luck. Hence, even if a miner controls a significant amount of computational power, it doesn’t mean they’ll find blocks proportional to that power. Instead, today they might find three blocks, tomorrow none, the next day one, and on and on.

Mining in a pool allows miners to combine their hash power, so they represent one large mining machine. With the combined hashing power, it’s easier to find the right hash sooner. This way, miners can get a more regular and consistent pay instead of a sporadic and less certain one.

What are the Disadvantages of a Mining Pool?

Mining pools represent a more sustainable income for miners since it multiplies the odds of them finding new blocks. At the same time, it has a downside for both miners and what cryptocurrency stands for.

When a miner participates in a pool, they relinquish some of their power and autonomy. They’ve got to adhere to the terms and conditions of the pool, even if unfavorable.

They also have to share block rewards, meaning they earn significantly less than if they received the entire block reward by themselves.

Another drawback of mining pools is that some mining pools have an enormous amount of combined hash power to the extent of dominating much of the Bitcoin mining process. In a way, this centralizes the Bitcoin mining protocol, which betrays one important tenet of cryptocurrency: decentralization.

How to Choose a Bitcoin Mining Pool

Before you sign up for a Bitcoin mining pool, do a background check, and see whether it works for you. These are some of the factors you need to look out for:

1. Infrastructure Compatibility

Every pool has its own requirements that miners must meet before being incorporated into the pool. Before getting started with any pool, check the following:

  • Whether your mining equipment is compatible with the pool requirements
  • Whether your mining software is supported by the pool
  • Whether your internet connection meets the minimum bandwidth required by the network

2. Task Assignment Mechanism

Any decent pool should have an algorithm that enables it to distribute tasks evenly to all participants without discriminating against the ones with less powerful devices.

3. Transparency

How transparent is the pool operator? For instance, is the hash rate declared by the pool the actual hash rate? Are the payouts being manipulated in some way? Some pools have a real-time dashboard that displays activity, eliminating any cause for doubt. You want to join such a pool.

4. Payment Threshold and Frequency

This has to do with the type of mining hardware you have. High-end mining devices mean more computational power and hence more and frequent earnings for you. Hence, if you have low-end devices, best to avoid pools that make payments based on the output threshold.

5. Pool Stability and Security

Before joining a pool, check out its commitment towards security. Does it offer a secure connection? Is it vulnerable to the all-common denial of service attacks? Is it sufficiently robust against potential attacks?

6. Pool Fee Structure

The pool fee is the amount you pay for utilizing a mining pool’s services. Some pools charge no fee at all while others charge a nominal fee. Others incorporate the fee in the payout. Others offer free entry, after which they’ll start charging after a given period. Finally, some pools will require you to run the software on your own device instead of on their servers – which is usually expensive for the miner.

What are some of the Best Mining Pools?

After Bitcoin exploded, the currency’s mining industry is proliferated by all manner of mining pools. Some have made a name for themselves for having a winning combo of certain features. Let’s take a look at a number of them:

  • F2Pool

Launched in 2013, Chinese-based F2Pool uses a stratum mining protocol – a Bitcoin mining protocol that facilitates improved mining and efficiency. F2Pool also supports Litecoin, Ethereum, and Zcash mining and features three languages (Traditional Chinese, Simplified Chinese, and English) to accommodate a more diverse background of miners.

  • com

Launched in 2015, BTC.com is a mining pool owned by Bitmain, which is a dominant player in the ASICs manufacturing industry. BTC.com also runs on a stratum mining protocol and supports its own wallet known as the BTC.com wallet. The site supports English and Chinese.

  • AntPool

Also owned by Bitmain, Antpool is one of the most dominant mining pools in the Bitcoin mining space. Alongside Bitcoin, the pool also supports Bitcoin Cash, Litecoin, Ethereum, Dash, Siacoin, ZCash, and Ethereum classic. Antpool supports tens of languages, including English, Amharic, Zulu, Welsh, Urdu, Thai, Bosnian, Arabic, and Turkish.

  • ViaBTC

Launched in 2016, ViaBTC is relatively new in the industry but has managed to claw its way to the top. The pool uses a stratum mining protocol and also supports merged mining. ViaBTC supports the mining of other cryptocurrencies such as Bitcoin Cash, Litecoin, Ethereum Classic, Dash, ZCash, and Monero.

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Cryptocurrencies

Zilliqa Blockchain: What Is Ziliqa And How Is It Turning Blockchain Upside Down

Anyone that’s transacted on the Bitcoin blockchain is aware of how long transactions take to be confirmed. In fact, Bitcoin transactions can take anything from 10 minutes to one day, depending on traffic. One of the things a digital currency is supposed to accomplish is speed. This is one goal that’s yet to manifest for Bitcoin and, indeed, the majority of blockchains.

Anyone that’s transacted on the Bitcoin blockchain is aware of how long transactions take to be confirmed. In fact, Bitcoin transactions can take anything from 10 minutes to one day, depending on traffic. One of the things a digital currency is supposed to accomplish is speed. This is one goal that’s yet to manifest for Bitcoin and, indeed, the majority of blockchains.

Anyone that’s transacted on the Bitcoin blockchain is aware of how long transactions take to be confirmed. In fact, Bitcoin transactions can take anything from 10 minutes to one day, depending on traffic. One of the things a digital currency is supposed to accomplish is speed. This is one goal that’s yet to manifest for Bitcoin and, indeed, the majority of blockchains.

Many blockchains are remodeled after Bitcoin’s blockchain, one way or another. The result is the same, slow transactions and waiting times. Zilliqa changes this by deconstructing the current blockchain concept.

Let’s delve into the interesting way that it does this.

What’s Zilliqa?

Zilliqa is a scalable blockchain with the ability to process thousands of crypto transactions every second. This is made possible by its adoption of the sharding technique. Sharding is by no means a new concept, nor was it invented for blockchain. The technique has been around for a while and is majorly used to partition databases to make workloads more manageable.

Blockchain’s Scalability Problem

The current blockchain, as we know it, uses the consensus mode of transaction confirmation that has faced scalability issues since its inception. This is due to thousands of nodes in any blockchain network that makes it harder to reach consensus. The speed of a network is inversely related to how large it is. The bigger the network, the more nodes that have to reach a consensus on transactions, slowing their confirmation.

Consider Bitcoin’s blockchain. As more users use the network, confirmation time is slower, and the transaction fee increases. Moreover, those who want faster confirmation are forced to pay more in order to get first priority. This is not only expensive, but it also goes against the democratic nature and accessibility-for-all of cryptocurrency.

The Ethereum blockchain, the second most popular, also has an inherent scalability problem. This is best illustrated by the Cryptokitties fiasco, whereby the game’s developers had to increase the transaction fees in order to at least reduce network congestion. This demonstrated how the network couldn’t handle massive amounts of traffic.

Right now, both Bitcoin and Ethereum, with their transaction throughput of 7 and 15 transactions per second respectively, are unable to compete with traditional payment systems such as Visa, which handles as much as 1,700 transactions per second.

The problem with proposed scalability solutions

Now, solutions that have been proposed for the blockchain scalability issue are not sustainable for the long haul. One of these is moving part of the transaction data off the chain. Others are increasing the block size so that consensus can be established for each round of transactions.

These are band-aid solutions that don’t fix the fundamental problem. The ideal solution would be overhauling the entire architecture so that the rate of nodes giving consensus is positively correlated with the network size.

Zilliqa’s Scalability Answer

Zilliqa proposes to solve this problem by re-imagining the entire blockchain from the ground up. This new model involves implementing a hybrid consensus that will grow the network’s throughput with every 600 new nodes that join.

Theoretically, for every 600 new nodes, Zilliqa’s throughput increases by dividing the work. In practice, an ever-increasing network (let’s say 1 million nodes) can present broadcast issues.

However, no network as yet has reached 1 million nodes. Both Bitcoin and Ethereum currently have tens of thousands of nodes. Even with that number, they’re still only able to process an average of 3-15 transactions per second (TPS). By contrast, with only 1800 nodes, Zilliqa has a throughput of 1218 TPS. When this number is doubled to 3,600 nodes, Zilliqa can handle up to 2, 488 TPS.

Zilliqa’s Sharding Protocol

So, what’s Zilliqa’s plan to achieve this scalability? It does this by utilizing a process known as sharding. The Zilliqa protocol divides the nodes on the network into groups of 600 each. Each group is called a shard. For instance, if a network has 2400 nodes, the nodes will be divided four times, with each group getting 600 shards.

Zilliqa Sharding_Forex Academy

So, as more nodes join the network, they are automatically distributed to create shards. Each shard will process a small part of each transaction. For instance, if there are ten shards on the network, each processes a tenth of the total transaction. Thus, the more shards you get, the more work you have, the faster the workload, and the faster the transaction throughput.

Every shard processes the transaction the parallel shard is working on. A parallel process is known as a ‘DS epoch.’ After every epoch, the blocks will come together and form a full block.

The DS Committee

Zilliqa has a “DS committee” that manages shard allocation. For each DS epoch, nodes are randomly selected to manage the shards. These nodes are the ones known as the DS committee, and they decide which shards the nodes are allocated to.

Finding Consensus: Proof-of-work and Byzantine Fault Tolerant Mechanism

Zilliqa utilizes a hybrid consensus mechanism that works as follows:

The first stage of the mining process involves proof-of-work (PoW). The PoW involves completing a hash to prove and establish identity, making it impossible for a bad actor to create multiple identities and overwhelm the network. After a node’s identity is proven, it’s assigned to a shard.

In the shards, Zilliqa applies a Practical Byzantine Fault Tolerance consensus (PBFT). Now, this mechanism has a finality, meaning the majority of the nodes in a shard must reach consensus on a mini-block. Once a block is verified by the shards and the DS committee, it becomes the only block that can be linked to the one before it.

Zilliqa’s Scilla

The Zilliqa team has developed a new programming language known as Scilla. Scilla is an intermediate-level language that separates the programming and communication aspects of smart contracts. It helps to differentiate between functional contracts compatible with Zilliqa’s blockchain, and state-dependent contracts that are not yet supported by Zilliqa.

Zilliqa Token

Zilliqa has a native token known as ZIL. ZIL token acts as an incentive for miners, gas for fueling smart contracts, and for covering transaction fees.

As of May 8, 2020, Zilliqa is trading at $0.006985 and ranks at #75. It has a market cap of $101,107,215, and a 24-hour trade volume of $23, 583, 984. A total of 10 billion ZIL tokens are in circulation. The coin has a total supply of 13 billion and a maximum supply of 21 billion. ZIL’s all-time high was 0.231489 on May 19, 2018, and its all-time low was $0. 002477 on March 13, 2020.

Who’s the Team Behind Zilliqa?

The Zilliqa team mainly comprises of people with a computer science background. CEO Xinshu holds a Ph.D. in Computer Science from the National University of Singapore. Chief Scientific Advisor Prateek Saxena holds a Ph.D. in the same field form the University of California, Berkeley. Head of Research Amrit Kumar has a Ph.D. from Université Grenoble-Alpes, France, as well as an Engineer’s diploma from Ecole Polytechnique, France.

The project’s advisory board comprises of notable figures in the blockchain sphere. These are Loi Luu, co-founder of Kyber Network; Vincent Zhou, founding partner of digital asset management firm FBG Capital; Nicolai Oster of Bitcoin Suisse AG, and Strong Hold Labs CEO – Alexander Lipton.

Where to Buy and Store Zilliqa

You can find Zilliqa at any popular exchanges, including Binance, Huobi, Coinbase Pro, Gate.io, Kucoin, BitFinex, Coinswitch, OKEx, and YoBitNet.

Zilliqa recommends the following trusted wallets for storing your ZIL: Ledger, Trust Wallet, Zillet, ZilPay Wallet, Infinito Wallet, Math Wallet, Atomic Wallet, Zil Cli, and the Zil Wallet. Different wallets exist in different forms, such as iOs, Android, web browsers, and hardware.

Final Thoughts

Despite the current proliferation of blockchains, Zilliqa managed to come up with a unique solution for a persistent problem in the blockchain. While many existing blockchains scramble to integrate sharding, Zilliqa has the headstart of implementing it from scratch. We can expect to see many more blockchains being launched with this technology in the future.

Categories
Crypto Daily Topic

12 Best Crypto Wallet for iOS: The Most Secure Multicurrency Apps

About eleven years since we had the first cryptocurrency, the asset class is more popular than ever. Millions of people are using cryptocurrencies as a store of value, as a trading instrument, and still, others are using the asset class as an exchange of value.

Best Crypto wallets for iOS
Photo by Nab Visuals on Unsplash

About eleven years since we had the first cryptocurrency, the asset class is more popular than ever. Millions of people are using cryptocurrencies as a store of value, as a trading instrument, and still, others are using the asset class as an exchange of value.

About eleven years since we had the first cryptocurrency, the asset class is more popular than ever. Millions of people are using cryptocurrencies as a store of value, as a trading instrument, and still, others are using the asset class as an exchange of value.

Unlike traditional money, cryptocurrency does not exist on a physical medium; neither is it regulated or overseen by a central authority. Transactions are peer-to-peer, control is solely the owner’s, and the safety of your crypto is in your hands.

There’s also another caveat. Crypto transactions are irreversible, meaning once you hit the send button, the funds are gone for good. There’s also the not-so-small matter of digital currencies being a high target for hacking and other types of fraud.

Hence, potential crypto users need to find a reliable wallet that’s secure enough to guard their digital assets against these attacks. Other features to look for in a sturdy wallet are flexibility and the number of cryptocurrencies it supports.
However, it can be a tasking exercise rummaging through the web to look for a wallet that fits these and other relevant needs.

In this piece, we came up with a list of the best wallets in the market for iPhone and iPad users. Looking for an iOS crypto wallet? Read on.

1. Bread Wallet

Launched in 2013, the Bread wallet is a crypto wallet app. The app is one of the most popular crypto wallets and one of the easiest to use. Bread features a minimalist yet functional interface that allows you to send and receive crypto without much hassle.

You can purchase Bitcoin via the app using a variety of methods, including credit card, in-person at Bitcoin ATMs, or at the convenience store. Bread also allows you to convert Bitcoin into cash, Ethereum, or to any of multiple ERC-20 tokens.

Bread also runs a loyalty program called BRD rewards. When you hold tokens at BRD, you get a 50% waiver on all your in-app crypto trading fees.

2. Green Wallet

Launched in 2019, Green is a wallet that puts security at the forefront so that you don’t have to choose between security and convenience.

When setting up a Green wallet, you will be required to undergo a two-factor authentication process via SMS or Google Authenticator, and/or email. A two-step authentication process is also required for every transaction you carry out.

The wallet also does not store your private keys, encrypted or not. This gives you utter control over your crypto funds. Green also ensures complete anonymity for users by allowing them to sign up without KYC procedures and proceed to trade right away.

3. Coinomi

Coinomi is a crypto wallet that lets you safely store, manage, and interact with Bitcoin and other 1770+ crypto assets. Funds are secured with private keys and state-of-the-art cryptography, ensuring your crypto is always under water-tight security.
Coinomi also ensures user anonymity by not having KYC or due diligence procedures or transaction tracking. Also, it doesn’t link your identity to transactions or traces your IP address.

For those users willing to fork out a bit more cash, Coinomi offers more options such as multi-seed support, unspent transaction output (UXTO) control, and cold storage.

4. Jazz Liberty

Jazz Liberty allows you to send and receive Bitcoin, Ethereum, and 90 other cryptocurrencies. On Jazz, you can check your crypto balance anytime as well as track individual coins and their price changes over the last month up to the latest hour. This also includes updates on the performance of the top 100 coins and markets and market trends. You also get access to the latest crypto news and updates from the app’s news module.

Jazz also provides a 12-word mnemonic phrase that you can use to recover your private key, so you never lose your funds. The phrase also allows you to access your funds anywhere in the world, ensuring utter convenience.

5. Abra Wallet

Launched in 2014, Abra prides itself of simplicity, instant investment, and accessibility – with support available in more than 150 countries.

Abra allows you to buy, sell and exchange over 100 cryptocurrencies, including big hitters such as Bitcoin, Ethereum, Bitcoin Cash, Bitcoin SV, as well as other less known ones like Aeon, Ardor, BURSTcoin, and Blackcoin. To get started, simply deposit crypto or Fiat via MasterCard, Visa, or bank transfer.

Abra users can also move between various coins and tokens as well as withdraw to an external wallet at any time.

6. DropBit

DropBit allows you to “send and receive Bitcoin as easy as sending a text or tweet.” It calls itself the “Venmo for Bitcoin” – allowing you to send Bitcoin to friends via text message or Twitter, even if they don’t have DropBit or any crypto wallet at the moment.

DropBit also allows you to maintain anonymity in your transactions by ensuring server requests for sending addresses are signed by your wallet at a ‘derivative path’ unassociated with your Bitcoin address. DropBit also does not keep your contact(s) on their servers. Instead, it uses a cryptographic hash of your phone number when verifying transactions. And in case you lose your wallet, you just need to input your 12-word recovery phrase to recover your private key.

7. TrustWallet

Trust wallet is a multi-coin wallet that allows you to store Bitcoin, Ethereum, Tron, Binance Coin, XRP, and so on. You can instantly trade cryptocurrencies on Trust wallet, thanks to its seamless integration with both Binance Dex and the Kyber Network protocol.
Trust wallet also protects your privacy by keeping your private key only locally and surrounded by many layers of security.

The wallet also supports ERC20 tokens and BEP2 tokens for the Binance Chain. It also allows you to interact with decentralized applications (DApps) on its Web3 browser.

8. Edge Wallet

Formerly known as Airbitz, the Edge wallet allows you to store, trade, and buy dozens of cryptocurrencies. This includes the ability to swap one crypto for another, as well as buy crypto with Fiat.

Edge has also partnered with some of the top blockchain services around the world, e.g., Moonpay, Bitrefill, Wyre, and Safello, to enable you to purchase mobile top-ups, gift-cards, and other services.

Other notable features of Edge include a seed phrase backup feature, PIN code feature for added security, QR code support to allow you to spend funds, an estimation of transaction fees so you can account for every coin, the ability to add ERC-20 tokens and Segwit support for Bitcoin and Litecoin.

9. Copay

Copay wallet is an off-shoot of BitPay, a trusted crypto payment gateway for 10,000+ merchants and businesses around the world. It’s a non-custodial wallet app that’s easy to use, with support for Bitcoin and Bitcoin Cash.

Copay facilitates multi-signature use, allowing more than one user to use the wallet. You can also create multiple private keys in the same Copay wallet, e.g., one for you and another for your friend.

Other unique selling points of Copay include: 150+ Fiat currency denominations for conversion, multiple language support, email and push notifications, and QR code support.

10. Ledger Nano X

This is a wallet by industry favorite Ledger. Nano X features remarkable ease-of-use and flexibility while ensuring your crypto is protected with the highest level of security, with your private key tucked away in a certified secure chip. Ledger Nano is a hardware wallet and, thus, a cold storage wallet – the safest option for storing your crypto funds.

The wallet is Bluetooth enabled, which allows smartphone users to sync the device with the Ledger Live Mobile app to safely interact with your crypto from your smartphone.

11. Blockchain Wallet

Blockchain wallet is one of the most popular crypto wallets, available in 140+ countries, and featuring 25 languages. It currently supports Bitcoin, Bitcoin Cash, Stellar, and USD Digital (USD-D).

Blockchain wallet supports two-factor authentication for maximum security as well as a 12-word recovery phrase that allows you to access your funds even if you lose your wallet.

12. BitPay

BitPay is another wallet app under the purview of crypto-exchange BitPay. The wallet’s apparent simplicity and accessibility, along with its high-level security involving multisig and key encryption, have made it a favorite among crypto users.

BitPay currently supports Bitcoin, Bitcoin Cash, Ethereum, and other tokens. You can create multiple wallets on the wallet, meaning you can share your wallet with family or friends.

You also get to receive instant email and push notifications for any transaction, helping you stay in control of your funds at all times.

Final Words

When looking for a good crypto wallet, you’re looking for one that does more than hold your funds. You want security, privacy, options, and a good user experience. These wallets offer that, and more. As usual, before settling for any wallet, Do Your Own Research; look for user reviews, check its security history, and so on. As well, choose a wallet that suits your personality.