Blockchain technology has become one of the most used technologies today since it became famous for making bitcoin possible. But, besides bitcoin, it can be helpful for any company. Such is the case of websites for sports betting and, in general, all kinds of websites. When talking about betting, it allows payments in crypto. That enables a system of trust for the user to feel comfortable using the websites. Also, it provides security and total anonymity for the users.
Besides this sector, the truth is that the Internet is being revolutionized by blockchain technology. That can yield a lot of benefits for all kinds of companies. If you have a business and you wish to implement blockchain to be one of its engines, here are some advantages to consider.
The main advantages of blockchain technology are safety, trustworthiness, and irreversibility since it enables the transactions from user to user. The goal is eliminate the need for intermediaries to facilitate financial relationships that are reliable and permit to decrease costs.
Among these significant advantages that blockchain can bring to your business is that, when financial transaction data has been uploaded, it will be impossible to falsify and, in turn, cannot be erased.
Thanks to the blockchain technology, the information or the service will not be lost and will continue functioning in case the Network falls.
For your business, implementing blockchain technology will cost less. This is because it is a cost-effective technology. That is possible by eliminating intermediaries as it offers the possibility of streamlining communications and processes.
Another advantage is that it doesn’t have a central authority or intermediaries, as mentioned before. It makes all the information always within reach to all Internet participants at the moment. What this causes is that the process of transmitting data becomes more straightforward. It yields data to be sent at a higher speed and also managed faster.
Recently, blockchain technology has been a significant technological disruption for all types of sectors. Above all, thanks to the evolution of software and devices, it is possible to link transactions through a global distribution system.
Of course, there are still some challenges regarding security, legality, adaptability, privacy management, and intellectual property. But companies will be preparing to fight against these challenges and make blockchain the technology of the future.
Born in November 1980, Shawn Fanning is an investor, entrepreneur, and computer programmer well known for co-founding Napster. Fanning also served as the lead software developer of the project. In 1999 he designed Napster, one of the first P2P (peer-to-peer) platforms for sharing files. Napster became so popular worldwide that he appeared on the cover of Time magazine.
In 2001, the initial free peer-to-peer version of the platform was shut down. The company appealed in court against various orders for encouraging illegally sharing copyrighted material. After these events, the site decided to install a paid subscription version.
Following his participation in Napster, Shawn Fanning decided to invest and join a series of tech-oriented companies. Since then, he has been involved in the early stage of several startups such as Snocap, Path, and Helium.
He was born in November 1980 in Brockton, Massachusetts. In 1994 at the age of 14, Fanning met over the internet with Sean Parker, his future partner. In the beginning, the pair bonded over topics such as physics and hacking, and then they met in real life.
Shawn attended Northeastern University, and in 1998 he developed the code for what would be one of the most popular P2P sharing platforms. In this project, Parker was the one in charge of raising funds to build the platform. They called it Napster.
In June 1999, a beta version of the program was released. Hundreds of students attending Northeastern University started using it to share music. Right after the project’s initial success, the founders moved the headquarters to California and hired employees to work on the development of the program.
Napster became so popular beyond the university community that Shawn Fanning featured the cover of Time magazine. Soon after that, millions of users started downloading all kinds of files through the platform.
However, the company’s success was overshadowed by the numerous lawsuits. The Recording Industry Association of America was entirely against the project, as many bands and artists were. In the end, the resolution for all the feuds was Napster shutting down for good.
Despite the company’s closing, Napster had a lingering impact on the music industry that we can still witness and enjoy to this day. The project served as inspiration for thriving services like Spotify and iTunes. Ultimately, the success with Napster earned Shawn Fanning a position on the list of top 100 innovators under 35.
After the Napster project, Fanning invested and joined a few tech-related startups. Such ventures include Rapture, Path, and Snocap. Shawn co-founded Snocap alongside Jordan Mendelson, who had worked at Napster before. A few years later, in 2006, he jumped into developing Rapture and became the firm’s CEO in 2007. By 2009 he was starting yet another company named Path.com.
Another vital investment to mention is his participation in launching Uber in San Francisco in June 2010.
In 2013 Shawn Fanning started a company called Helium Systems with Sean Carey and Amir Haleem. The company announced that the team had obtained $16 million in funding from Khosla Ventures. Other funding participants were FirstMark Capital, Mar Benioff, Digital Garage, SV Angel, and Slow Ventures.
Helium is now selling software and hardware for companies that want to keep a closer eye on their processes. Therefore, it’s not a surprise that the company has been thriving since it was founded. In 2020 their 5G project expanded in the US and started colonizing Europe.
Now, Helium partnered with Dish, and hotspots are expected to be set all across the US and expand to the rest of the world. Founders claim that most of the profits they make nowadays are mainly from services on top of the network, and a lot of the value of the project is in the ownership of the Helium crypto.
From an early age, Shawn Fanning showed a spark for tech. Later on, throughout his education years, he started surprising the world with his innovative ideas. Today, he’s an accomplished tech entrepreneur with his sights set on the future. We at CryptoDigest cannot wait to see what other innovations this tech visionary will bring us next.
If we consider that equity investors had a good 2021, we can say the crypto investors had a terrific year. Some coins went up by 5,000-7,000%, returning mind-blowing profits for investors. Even cryptocurrencies like Ethereum and BTC surged 34-40% in 2021. However, the path to the top wasn’t a straight line, as with Bitcoin. The coin went up to one of its highest points right before crashing, losing more than 50% of its value, proving the volatility of the crypto market.
The fall happened in May-June after Elon Musk stated his concerns about the environmental impact of mining. Plus, around the same time, China, the most significant mining country at the time, started implementing new restrictions on crypto mining. These two factors combined created panic among investors, who rushed to sell. Some cryptocurrencies went down 30-40% in a matter of hours.
In September, buyers returned once the dust had settled down, and the price skyrocketed once more. By November, the cost of BTC hit a new historic high when it went up to $69,000, around 32% higher than the numbers from the beginning of 2021.
The reality is that a lot of it will depend on new policies that governments are trying to implement worldwide. This year, with the banning of all crypto-related activities in China, we got to see the impact that such restrictions can have on the crypto space. If governments keep approving legislation to regulate the usage of crypto, for sure, the volatility of the crypto market will be affected.
On the bright side, governments claim to be doing this to protect users from fraud or scamming. Therefore, governments are not trying to implement burdensome restrictions or ban the industry in most cases.
Analysts say that as blockchain tech keeps evolving and getting a broader usage, countries like China that banned crypto activities will become isolated from the rest of the world. In other countries, like India, the governments are working on legislation to regulate only trading and the use of crypto.
We know that the crypto space can seem a bit scary and overwhelming, but it can be exciting just as much. After all, who wouldn’t like to learn a new way to make money? And we’ve all heard success stories about it. But with the industry growing faster than ever, where should you start? Considering fundamental factors such as legislation and the volatility of the crypto market, Cryptodigest put together a shortlist of basic things to consider before entering this high-risk arena.
Don’t get carried away by the significant percentages that reflect the growth of many coins. Although some have shown an increase of 5,000-6,000% only in the past few months, you should be careful with your investments. Keep in mind that as in any other industry, one should invest what one’s willing to lose. We strongly recommend you keep your cryptocurrency investments between the 10-15% range of your overall portfolio.
This game involves high-reward high-risk, and whoever decides to invest in it must be able to digest that. As demonstrated in May, a fall of 70-80% is always a possibility. Bear in mind that even a more stable blue chip like BTC is currently 25% down from its peak in November. Only invest in this market if you can deal with extreme variations.
The crypto industry is not regulated in many countries, and many platforms pop up every day. It would be better to invest through a trustworthy and established platform; that way, the risk of your money getting stuck if there’s a regulatory setback is lower.
The crypto market also has mid-caps, blue chips, and penny cryptocurrency like the stock market. Avoid falling into the temptation of buying what could be obscure crypto only because their price is meager. More relevant coins may be more expensive, but they are also more stable. Gladly, there’s the chance of buying fractions of coins, so the price shouldn’t be the primary concern. The two main blue chips of the crypto market are Ethereum and Bitcoin, and together they drive the market sentiment.
The crypto space is changing fast, and the capacity of adaptation will be the main factor for success. The volatility of the crypto market will depend significantly on the decisions governments worldwide make. The new legislation will mark the path to follow, and only the protocols capable of adaptation will keep thriving in the industry. As usual, we recommend you read and learn more about the industry before making any investment decisions. You can learn more about crypto and how it works here.
Considering the big picture, Bitcoin has had a great year. The cryptocurrency went up by 70% since the beginning of 2021, bringing the crypto market to around $2 trillion in value. This year, the first crypto company that went public, Coinbase, debuted back in April. Also, during 2021 we’ve seen more active participation from Wall Street banks such as Goldman Sachs. Also, how can we forget the approval of the first exchange-traded fund in the US linked to Bitcoin?
Although, the intense fluctuations of price and the strict regulatory scrutiny have slowed down BTC’s prospects lately. Regarding this, experts have been warning crypto users that the situation could be leading downhill.
With the new year looking like another fluctuating period for crypto, a group of experts has already made predictions for crypto in 2022. Cryptodigest brings you a look at the most relevant predictions of analysts.
Some analysts assure that BTC is due for a steep decline in the months to come. Bitcoin rose to a record price of almost $69,000 back in November; currently, it’s sitting right below $50,000. That’s nearly 30% down from its highest point in just a matter of weeks.
According to the wisdom that rules Wall Street, a decline of 20% or more is what defines bear markets. Although, it’s worth mentioning that this means nothing because of Bitcoin famous volatility.
Finance professor, Carol Alexander, said it’s expected for Bitcoin to go as low as $10,000 in the next year. If that happens, the profits earned in the last year and a half would be virtually whipped out. She strongly advises investors to consider coming out of Bitcoin soon because its price will probably plummet in 2022.
Alexander’s predictions for crypto are not based on mere speculation; we should keep in mind that if well it’s famous for its volatility, it also has specific patterns that we shouldn’t overlook. For example, after a significant price rise, Bitcoin tended to nosedive in the past. In 2018, the coin went down to $3,000 after getting close to $20,000 only a few months before.
On the other hand, cryptocurrency backers differ from Alexander’s opinion. As more institutional investors join the volatile market, crypto supporters insist that things are more stable now. A usual investment case for BTC, in particular, is that it serves as a hedge versus the inflation rising as a consequence of the government stimulus. Todd Lowenstein, a strategist from the Union Bank, says that the Federal Reserve has a big chance to pull the plug on Bitcoin.
The most significant development that investors are eagerly anticipating in 2022 is the approval of the first ETF (Exchange-Traded Fund) in the US. Earlier this year, the SEC gave the green light to launch the Bitcoin Strategy ETF of ProShares. The product keeps track of futures contracts of Bitcoin instead of providing investors direct contact to the crypto.
In finance, futures are derivatives that require the investor to sell or buy certain assets for a price already agreed and at a later date. Experts agree that ProShares’ ETF might be risky for inexperienced traders that track futures and not Bitcoin. The futures of Bitcoin that launched has been categorized as not retail-friendly because of the high costs of rolling over contracts that end up being around 5-10%.
Grayscale Investments, which holds the most prominent Bitcoin fund, has requested to convert it into a spot ETF. Like Grayscale, there are many other Bitcoin ETF applications on the waiting list.
2021 was rough on crypto regulations, starting with China banning all crypto-related activities. Then, the authorities in the US cracked down on some aspects of the market. Experts suspect that new regulations will be one of the main issues in 2022 for the industry.
Vijay Ayyar, head of Luno exchange, stated that next year would influence the regulatory side of the crypto market. Since there’s a lot of interest from many governments (the US as one of the main), expectations have never been higher to bring regulation into the crypto industry. Ayyar also said he expects to clarify the legal gray zone for other cryptos besides Bitcoin.
Ripple is in a battle with the US authorities over XRP. The SEC says that it is a non-registered security and that the company sold the tokens illegally. On the other side, Ripple alleges that XRP is not a security.
Experts also mentioned stablecoins as one of the main focuses for regulation authorities next year. Stablecoins are cryptocurrencies that back up their price with assets like the USD. For example, Tether is the primary concern since there’s a lot of speculation about if it has enough assets backing it up or not.
Without a doubt, more scrutiny is to come around the crypto space. People still remember the housing and mortgage bubble too well, so it’s natural to be cautious about assets that people still don’t understand completely.
While this is happening, regulations have also started scrutinizing the decentralized finance sector. It seems that the wheel has been set in motion, but the real question here is, whose interests are governments protecting? That’s a question worth asking. For sure, 2022 will bring more on crypto news and we at Cryptodigest are excited about keeping you informed about it.
Let’s start from the beginning; what is Polygon, and why is it so relevant for Ethereum? Polygon, known before as Matic Network, is a framework for scaling and interoperability designed to build blockchains compatible with Ethereum. The network has a token on its own, known as MATIC, which is utilized for staking, governance, and gas fees.
At the beginning of 2021, Ethereum made changes and rebranded the Matic Network, which was known as Polygon from that moment on. Now, the framework deals with some of the limitations that Ethereum has. Lack of high speed, delayed transactions, lack of community governance, and lousy throughput, to name a few. Unlike its predecessor, Polygon is designed to be a platform for launching interoperable blockchain technology.
With the new changes Ethereum is implementing, many experts are wondering about the future of Polygon after Ethereum 2.0. In this article, we’ll explain how Polygon is aiding Ethereum and what to expect after the launch of Ethereum 2.0.
Polygon works on a four-layer principle: Polygon’s layer, Ethereum layer, security layer, and execution layer. In fact, two of those layers are of mandatory nature – the Polygon layer and the execution layer. The first one is the layer of the network, the blockchain networks on Polygon. The second mandatory layer is the execution one, which executes smart contracts.
The Ethereum layer represents a group of smart contracts executed on Ethereum. Those contracts take care of tasks like staking, transaction finality, and the communication between Polygon chains and Ethereum.
The security layer works simultaneously as Ethereum, and it grants “validators as a service” status. That role enables chains to get benefits from an extra security layer. It’s important to mention that both Ethereum and the security layer are not mandatory.
Chains set on Polygon can communicate with the main chain of Ethereum thanks to Polygon’s capabilities. Therefore, this will open a variety of possibilities for decentralized apps and the exchange of value among different platforms.
As the Ethereum team announced, Ethereum 2.0 will fix the congestion problem that Ethereum currently faces. As the new launch will to deal with current issues Polygon was helping with, does it mean that Polygon will disappear? Not likely. Polygon has helped to ease the pressure of demand and lower fees. It is easy to conclude that Polygon still has big plans after Ethereum 2.0.
On December 9, 2021, at the ZK Day event, they announced the purchase of the Mir protocol. This platform utilizes “zero-knowledge proofs” for designing and building decentralized apps away from Ethereum’s network. Finally, they mentioned the transaction, according to Polygon, will be worth around $400 million in MATIC tokens.
The zero-knowledge proofs are based on the privacy principle. They are a way of verifying things without giving away any private information. It’s like having $100 in your wallet and having the ability to prove this without opening it. Mir uses that concept to run transactions so that developers can build privacy-compliant apps.
Polygon is planning to introduce a recursive proof system to be faster than anything else, and it’s practical to verify on Ethereum. What is most important about this is that it can translate to Ethereum 2.0. Vitalik Buterin, the creator of Ethereum, declared that the network would use it in conjunction with other solutions for scalability.
As the network stated before, there’s no apparent cause for concern. The future of Polygon after Ethereum 2.0 seems to be set as the platform plans to keep it close for much longer now. Although, crypto space keeps rapidly growing, evolving, innovating, the launch of Ethereum 2.0 is for sure one of the most anticipated events. Expectations are very high since experts believe it will set the bar to a new high while respecting users’ privacy. One thing is for sure. We can expect much more exciting news from crypto space in the future years. We’ll be eagerly waiting for the next new thing.
We know that the crypto world is growing fast, and sometimes it’s hard to keep up with every new thing that comes out. The crypto space doesn’t have to be something scary; on the contrary, it can be fascinating. After all, if you’re reading about it, you must be curious, so let Cryptodigest be your guide through the ever-changing and exciting crypto space. Today we’ll be exploring NFTs.
NFTs or non-fungible tokens are digital goods that can represent intangible and tangible items, and that’s what makes them unique. These cryptographically individual assets can be linked to digital content to prove ownership of such. The array of goods they can be linked to include digital collectibles, artwork, music, and even some items in video games.
The number of digital goods and their classification keep multiplying by the day as blockchain and cryptographic technology evolves. Currently, NFTs (non-fungible tokens) are one of the sectors in the industry that is overgrowing. In the article bellow we’ll explain what NFTs are, their use, and how they work in simple terms.
Non-fungible tokens are digital goods containing information stored in smart contracts. That information makes NFTs so special, and each of them unique. Their features make them directly irreplaceable by another token. As two non-fungible tokens are not the same, you can’t swap them like for like. On the other hand, you can exchange banknotes one for another; as long as they possess the same value, there is no difference for the holder.
Another example of fungible tokens is Bitcoin. Someone can send you one Bitcoin, and you can send one back. As a result, you will still have one BTC. Of course, there’s always the risk of change in value while executing the transaction, but the principle remains. Another characteristic of fungible tokens is their divisibility; for example, you can receive or send smaller amounts of BTC.
Usually, NFTs cannot be divisible. Just like it’s not possible to send someone only a part of a concert ticket since only a part of it wouldn’t have worth by itself. However, recently there have been some attempts to experiment with fractionating NFTs, although it’s still at an early stage.
The trading volume for non-fungible tokens escalated to $10.67 billion in the third quarter of 2021 alone, representing a growth of 700% from the second quarter. The tokens can be linked to an asset to prove ownership of digital goods.
Unlike fungible tokens, each of them is unique, which is their main appeal. They don’t have the exact attributes, so their value can’t be the same. Last March, a digital artist sold an NFT collage of his work for no less than $69 million.
Non-fungible tokens can be used to differentiate digital assets from each other to prove their scarcity or value. NFTs can represent artwork, virtual land parcels, and even ownership licenses.
You can sell and buy them NFTs marketplaces like Rarible or OpenSea, and recently even in crypto exchanges like Binance.
Non-fungible tokens and their contracts enable more detailed attributes, such as rich metadata, the owner’s identity, or secure file links. That is a huge step towards progress in the digital space. Although to create a standard, a unification of protocols and interoperability must exist.
One of the latest examples of how to use these tokens in DeFi is Aavegotchi, a startup funded with DeFi money. Aavegotchis are crypto-collectibles created to be used in a game universe. As collateral, each Aavegotchi has Aave’s aTokens inside, which means that each one can generate yield on Aave. As soon as the owner liquidates the Aavegotchi, it disappears.
In 2021 we witnessed an explosion of the NFT universe, especially in the growth of trading volume. Compared to last year we can see that it increased over 38,000%. In August 2021, OpenSea, an NFT marketplace, reported a trading volume of more than $75 million just in a day, which is more than their whole trading volume in 2020.
Big money came with big names, as celebrities and artists worldwide joined the enthusiasm that follows NFTs. Some of them are rapper Snoop Dogg, Tom Brady, Mila Kunis, and Ashton Kutcher, to mention a few.
It comes as no surprise that token has such a broad potential with the many applications it supports. NFTs can be proof of copyright, ticketing, intellectual property, and video games trading, movies, and music. They also can create security tokens and the tokenization of tangible and digital world assets.
On top of this, NFTs could also be the certification for qualifications, like warranties, software licensing, and even birth certificates. At this rate, maybe one day, our digital wallets may store proof of every license, certification, and asset that we own; and like we said before, doesn’t the future sound exciting?
In the last couple of years, the DeFi sector has grown significantly, paving the way for innovative protocols such as Plasma Finance. With a worth that surpasses the $270 billion mark, the DeFi projects have consolidated their position in the crypto space. Now, with Plasma Finance in the game, the projections for the industry are skyrocketing rapidly.
In spite of the increased interest in DeFi, it’s still only a niche sector, but Plasma Finance is now addressing the issue. The platform’s goal is to offer a streamlined and simplified experience for the user. The network utilizes DeFi protocols while offering analytics tools and some added features. By combining all that, the network gets the best of both worlds, DeFi, and traditional finance.
There are many inconveniences people face with all the intermediate steps for getting into DeFi. This is where Plasma Finance saw an opportunity. As a result of these limitations, we can conclude that there’s only so much growth that DeFi can have. There are a lot of users wanting to experiment with lending and yield farming, for example, but currently, it’s too complicated for newcomers.
Plasma Finance offers a solution that would lower the barriers to getting into DeFi. The protocol supplies an interface to store, invest and manage DeFi crypto.
Its most significant feature is to support payment cards issued by Mastercard and Visa, as well as bank accounts. One of the goals for the network is to offer top rates from major exchanges, and at the moment, it supports multiple crypto assets.
It is possible for Plasma Finance to support those payment methods because of its partnerships. The collaborations are what makes the global support possible. The protocol’s most important partners are PlasmaPay, Ramp, and Simplex.
Ilia Maksimenka, current CEO and founder, thinks that DeFi protocols should compete with traditional institutions. Maksimenka believes that exchanges, banks, and conventional financial institutions are the main competitors since people use them daily.
The key to their success is the ease of using, which DeFi doesn’t possess, and that’s the first issue they’re trying to solve. Research made by the team in charge demonstrates that users benefit from familiarity. They can find it among the established interface models, such as the ones used by traditional services.
Most users expect to have an experience similar to using an iPhone, but instead, new users find it hard to understand DeFi. That unfamiliarity translates into uncertainty and fear of losing money for the user.
The project’s primary goal is to help new users with the onboarding process by simplifying it, making the transition easier. The team worked on a step-by-step approach that starts with the process of downloading a wallet and linking a source of funding to get further access.
Once the user completes those two simple steps, they’re granted access to the entire experience in one platform. By simplifying the access process, Plasma Finance is helping users from around the world to save time. Instead of researching hundreds of protocols and platforms, users can have it all in one place.
As another crucial point, the protocol provides fiat on-ramps for purchasing crypto in most countries around the globe. It includes a portfolio management tool, swap platforms, and decentralized exchange, among other features. Coupled with this, the team constantly performs audits on projects and labels them accordingly.
It’s safe to say that it will be impossible to ignore the DeFi industry in the following years, specifically by the traditional finance system. Its more efficient and thoughtful processes will make it an outstanding sector, not to mention the difference in rates compared to conventional finance.
One thing is for sure; if everything keeps going as it has, the most significant protocols might become more prominent. That is the goal for Plasma Finance, to be the “retailer” users go to look at the offers out there. Think about it as a Spotify for the DeFi space and use it accordingly.
The programmer Vitalik Buterin who is best known for his Ethereum project has been involved in the crypto industry since 2011. He designed Ethereum to be a platform that works as a worldwide network for DeFi or DApps. Even though that’s his most famous project, Buterin is also famous for writing articles and co-founding Bitcoin magazine.
In 2013 he traveled around the globe to speak with BTC developers. During his six month trip, he understood that he could build a new, improved version of it. BTC stands as the first crypto in the world, while Ether is a digital currency that is based on the blockchain network of Ethereum.
Vitalik Buterin co-founded the Ethereum project which supports multiple functions. Among those functions is the development of programs and apps with the power of crypto. Also, smart contracts are included in the list, and it’s actually how the platform functions.
Vitalik was born in January 1994 in Russia, where he lived until the age of six. After that, his parents migrated to Canada in pursuit of a better future for the family. When he was in third grade, he was acknowledged as a gifted child and was placed in a program to develop his skills.
When he was in the program, he discovered his talents that made him stand out. His skills mainly focused on programming and mathematics, although he also had an interest in economics.
Even though he was considered a genius from a very young age, his social skills were not as developed. He went to a private school in Toronto, where he acquired a new perspective on education. While being there, he developed a hunger for knowledge, his education became his main goal at the time.
In 2011 when he searched for a new direction in his life, he came across Bitcoin. In the beginning, he was a bit skeptical about the value of BTC; he wasn’t able to see how it was possible without any backup. As time passed by, his fascination about the project kept growing; the more he learned, the more he wanted to know.
Naturally, he wanted to be part of the team in charge of this new economy by getting some tokens. Unfortunately, at the time, he neither had the power to mine them nor the money to buy BTC. Eventually, he started writing articles for about five tokens each. Not only he went into the technological aspect of it but also the economic and political aspects.
In late 2011, his articles got the attention of another Bitcoin enthusiast; eventually, together, they founded Bitcoin Magazine. He quit university since he was too busy traveling the world and developing various crypto-related projects.
After spending a lot of time searching through different projects, he realized that they were too specific for certain uses. Because the protocols weren’t broad enough, he understood there was an opportunity to create a new one. He realized that it was possible to generalize massively what the protocols did. That was an option by changing the functionality with another language of programming.
We’re talking about the Turing-complete programming language, which allows a computer to solve any problem, if there is the right algorithm, as well as enough memory and time. When his idea got rejected by people in charge of other already established projects, he made the decision to do it himself.
Vitalik Buterin explained his idea in the white paper, which he sent to a few people. That resulted in over 30 people reaching out to him to talk the concept through. In the beginning, Ethereum was only a digital token. As time passed, the idea around it evolved, and by January 2014, the team in charge made core changes. A few months after this, Buterin presented Ethereum at the BTC conference.
Later on, the team decided to hold an initial Ether offering. By doing this, the network would be able to fund its development. They raised over 31,000 Bitcoin from the sale of Ether, worth about $100,000 at the time.
After that, they established the Ethereum Foundation based in Switzerland. The foundation’s main task was to oversee Ethereum’s software development. Although they had some turbulence, the campaign was successful. After all, Ethereum’s principles, such as universality, simplicity, and agility make it an appealing option for investors.
Vitalik Buterin is, without a doubt, one of the biggest influencers these days. His ideas have proven to be successful, as they make progress not only in the tech field but in the economic one too. For sure, this won’t be the last time we hear about this tech genius and his innovations.
When we mention quantum computing you may feel your head start spinning thinking this is rocket science, but it’s not. In reality, this is easier to understand than you think, we’ll explain it in simple terms.
The concept refers to computers that use properties of quantum physics for storing data and performing math calculations. These characteristics are particularly advantageous when performing tasks that are faster than any supercomputers.
A typical computer (which includes laptops and smartphones) encodes data in bits that are either 0 or 1. When talking about the memory of a quantum computer, the most basic unit is a qubit or a quantum bit.
A quantum bit is created utilizing physical systems like the orientation of a photon or the spin of an electron. The systems can be in different arrangements simultaneously. That is quantum superposition. In simple terms, the series of quantum bits can represent various things at the same time.
Quantum physics and computing may sound like science fiction; particles and waves make everything. Mind-blowing, right? It’s not science fiction anymore, but could this be a threat to the crypto space?
As researchers and scientists worldwide are starting to understand the real power of quantum physics, they realize the threat it could potentially represent for the financial system as we know it. Not only could the cryptosystem be at stake, but this is also beyond blockchains.
Powerful computers are designed with the capability to crack the encryption of the world’s algorithms. That could potentially be a menace to the security of top-secret intelligence agencies and the global financial system. Your phone could also be at risk; remember that whoever owns more data has the power of leverage.
The technology relying on blockchain that is the core of cryptocurrencies could be exposed to more sophisticated attacks. Not only that but if quantum computing develops faster than researchers could secure digital money, there’s a big potential for forging transactions.
The system protecting your purchases online is ubiquitous. This tech works in a simple way; it combines the use of a key that’s only yours and a public one. If technology keeps progressing this way, quantum computers will be able to crack the cryptography of the public key. Therefore, hackers could impersonate the real owners of NFTs, crypto, or digital assets.
In more simple words, when quantum computing gets powerful enough, basically all the security guarantees will disappear. What happens is that users can lose their funds when the cryptography of the public key is hacked.
The wallets that people use to store their digital assets are also vulnerable. These wallets keep keys that users need to validate access to their assets. An empty wallet could be the result of a successful attack.
Although it all sounds like a catastrophe, and it can be, the truth is that the solution relies on the problem itself. The good news is that by adopting the same technology of quantum computing, the problem can be solved. The crypto industry is already developing a solution for this potential problem.
The National Institute of Standards and Technology in the US is trying to get ahead of this issue. Several researchers around the world participated in the project for years now. The team is working on developing quantum-resistant software. Some other groups involved in the project are:
The organic development of crypto suggests that users will upgrade their digital assets to quantum computing tech. There will be new tools that will help overcome these challenges. Furthermore, the current cryptography protecting significant assets like Bitcoin is also strong enough to resist quantum computers. This translates to not all cryptography being vulnerable.
If quantum tech can break cryptography, it can help build encryption even stronger. But rest assured, just like there will be people trying to take advantage of it, there will be a team of experts on the other side making sure the crypto space stays as safe as possible.
There are proof of stake networks such as Polkadot and Ethereum that are rewarding users for staking crypto. Unlike Bitcoin, secured by mining, more recent crypto utilizes a different mechanism of consensus. That other mechanism, known as PoS (proof of stake), uses crypto assets to validate transactions. It means that users commit their crypto to the network to aid the blockchain. In return, the users get rewards, usually in the form of the same crypto they have staked.
In simple terms, a blockchain is a database of transactions that don’t rely on a central authority for maintaining them. Some blockchains, such as Bitcoin, use mining for securely validating the transactions. The problem with mining is that it implies high electricity consumption and expensive hardware. Therefore, this option is not within reach of most people.
Networks like Cardano, Polkadot, and Ethereum 2.0 changed all of that to avoid complications. Staking is the newly implemented mechanism based on committed funds. This new mechanism gets rid of the mining hustle. Proof of stake chooses validators based on the amount of crypto held in a node. Other users can delegate the assets, or the validator can stake them.
Staking can be financially enticing; just like miners, validators also get rewards in cryptocurrency. The reward is earned when they stake the asset, and whoever delegates crypto to the validator also receives a portion. The portion of the reward is based on how much they’ve staked minus the validator’s share. This can be particularly attractive for investors who hold assets instead of day trading them, regardless of how small they may be.
One of the main advantages of staking is that even though complex math supports it, it requires very little tech knowledge. All of the mentioned elements combined make it a more accessible option for most people. Therefore, it’s expected that its growth will be even faster as more people who try it spread the word.
In general terms, there are two options for staking crypto. The first, as mentioned before, as a validator running a node on your own. If you decide to plunge into this option, you should know that it requires a bit of effort. A stable and secure infrastructure is a must, as well as having experience. Also, the minimum of coins needed to stake is usually too high. For example, to be an Ethereum 2.0 validator, it’s required to have at least 32 ETH.
Because of those reasons, among others, staking is more commonly done by delegation. You choose to delegate your crypto to a validator that already has the required setup. This way, the validator is the one doing the work of keeping the node running for you. In return, the validators will take commission from the staking rewards.
It should be noted that by delegating your coins, you’re not handing over their guardianship to the validator. Your assets remain in your custody all the time, and usually, the rewards are reinvested automatically.
The majority of exchanges handling crypto run validators; this enables their users to stake with them. To do so, they have to use the user interface of the exchange. Among the major ones are Binance, Coinbase, Bitfinex, KuCoin, Kraken, OKEx, and Okcoin. Typically the staking process on exchanges is very similar. What differs one from the other is the available crypto for staking, the locking period, and their fees.
Despite all of this, not all big exchanges enable users to do staking. Some like Gemini and Robinhood don’t have it as an option right now but have stated that they may offer it in the future.
Also, it would be best to consider that to comply with regulations, some exchanges might not allow you to stake. This option may not be available for you if you live in particular jurisdictions such as Hawaii or New York. As usual, we encourage you to read more about the subject, especially if you’re considering investing in it.
Remember that even if it takes longer to take action, it’s always better to make a fully informed decision. A decision taken in the heat of the moment without enough information can potentially lead to considerable losses.
Crypto enthusiasts, get excited! Now it’s possible to start earning Helium token rewards if you plan on helping the expansion of Dish Network. The cryptocurrency startup, Helium, which provides wireless networks, is joining forces with the Dish company. Now, Dish customers have the option to deploy a 5G node to share a connection and earn token rewards.
The Helium startup made it official that a wireless network run by users is now linked to token rewards. Nowadays, their Internet of Things network possesses over a quarter of a million active nodes. Their next step is to try to do the same with a 5G connection, in collaboration with FreedomFi as the provider of infrastructure. All the focus is set on the TV and mobile service provider Dish Network, who just joined the project.
On October 26th, Dish Network announced the contract with Helium, making it official to the rest of the world. The deal enables Dish users to share 5G by managing a node of Helium in exchange for HNT tokens as a reward.
COO of Helium, Frank Mong, declared that Dish Network understands the vast possibilities that blockchain technology can have paired with the wireless industry. The partnership is definite proof that the Helium model of incentivization with tokens can be a potent tool.
By rewarding users with HNT tokens more people will be drawn to participate in the expansion. The goal of Helium 5G is to have a wider reach while the user also benefits from the tokens and the apps it offers.
The first LongFi network of Helium was planned only to power Internet of Things devices like trackers and sensors. Currently, it has over 250,000 nodes operated by users, as mentioned before. Helium stated that 500,000 more are ordered, which translates to a more relevant scale coming soon.
However, the network was not planned to handle other kinds of devices such as smartphones, laptops, and tablets. On the other hand, the 5G network built with FreedomFi will be able to do it. The tokens that users get as a reward can naturally be exchanged for any other crypto of choice.
Mong declared that the first batch of 5G wireless nodes for the network of Helium would soon be shipped by FreedomFi. The expansion plan establishes that by the end of 2022, around 40,000 of Helium’s network nodes will be already deployed. However, some experts think that that scenario is optimistic, others that it will be more. In the end, it all depends on the demand. This project is not the only one working on 5G nodes. Other producers of hardware are also working on it. It’s expected that more plans like this will be announced shortly.
Although in the crypto space, anything can happen, Helium’s token has shown great promise. Throughout 2021, it went from $1.36, and it’s currently at $43.41 a token. Back in August of the same year, the project announced funding of $111 million. The main goal of such financing is to scale the plans of the decentralized project. The following month, Helium made public knowledge of its partnership with the City of San Jose in California. The association is for a pilot program that will fund internet access for households with low-income. All of that will be raised by nodes of LongFi that volunteers will operate.
It is still unknown what the future holds, especially when we talk about crypto-related news. Although it can seem to be promising in theory, you should also keep in mind that anything can happen. In this fast-changing world, what might seem certain today might change tomorrow.
Be sure to consider all the factors involved in the crypto world, not only what the protocols make public. It’s always a good idea to make a decision when you’re well informed, and as mentioned before, invest only what you can afford to lose.