Proof of Work, also known as PoW, is the consensus mechanism to secure the network by using an algorithm. That, while also creating new blocks and issuing coins as compensation. In simple terms, miners try to solve really complex mathematical equations through a process that is energy-intensive. The goal is to create blocks and to receive Bitcoin rewards in return. The technology of the blockchain in charge of powering Bitcoin, just as many other cryptos, is simply a decentralized database. It is driven by nodes that are distributed all over the globe; there are no authorities to supervise, call the shots, or establish the rules.
Then, how is it possible for everyone to agree on the substance of the ledger? Well, that’s when the proof of work consensus algorithm plays its part. It secures the ledger and the network from attacks of “double-spend,” simultaneously, it adds blocks of transactions to the chain while it generates rewards. This kind of mechanism needs the miners to compete in solving complicated math equations using their equipment. It’s a highly complex process, it’s meant to be that way, but the results, the rewards are potentially precious.
Proof of work is needed in order to keep Bitcoin’s operation going. The consumption of energy required has suffered great scrutiny, and that’s the reason why other cryptos have chosen the proof of stake mechanism instead. We can compare the carbon footprint of Bitcoin to the one of whole Morocco. Tesla, the carmaker, pointed out the problem when it decided that it wouldn’t take Bitcoin payments anymore. They made this public in May 2021, claiming that the impact of mining was too significant, and they didn’t want to take part in it. Constantly, BTC supporters claim that the estimates of the use of energy mentioned frequently are misleading.
Another mechanism that has taken a stronghold in the industry of blockchain is proof of stake. It all started from the concerns of finding a new way around the elevated consumption of energy than proof of work generates. The proof of stake system is based on validators to hold a big amount of crypto in the network and for them to validate transactions while earning rewards. Some other coins also use the PoS model, such as Algorand, Binance Coin, Cosmos, and Cardano. Soon, Ethereum will be transitioning to the same when the Ethereum 2.0 upgrade gets wholly implemented. This improvement will significantly reduce the amount of energy consumption; experts estimate that it will be reduced up to 99.95%.
Since PoS doesn’t need sophisticated high-powered equipment for mining, reducing said consumption is possible. Although, some claim that this model will only help rich people get richer because validators have to take an enormous amount of coins to participate. At the same time, this encourages users to hold on to their coins instead of spending them.
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.
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?
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.
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.
In the world of crypto, sudden shifts are the only thing you can count on. The mass popularization of crypto technology leads to entire countries changing their financial course and leaning towards crypto. The newest addition to the crypto team is Singapore.
The latest news gave us a clear insight into Singapore’s determination to become one of the leading crypto forces out there. Crypto-related businesses around the world keep wrestling with one of the fastest-growing fields in finance.
Compared to countries like China that are clamping down on crypto to sustain fraudulent activity, some countries embrace crypto, making way for new solutions that might give better long-term results. Crypto Digest covers the story of Singapore and its newly found crypto plan.
Mr. Ravi Menon, the Monetary Authority of Singapore (MAS) managing director, explains that the “clamp-down” approach isn’t the correct way to handle things. Instead of banning crypto, MAS is planning to enforce solid regulations. Subsequently, businesses, companies, and firms that comply with these requirements and face multiple risks regarding crypto can operate freely.
The broader liberalization in the financial sector brings Singapore’s plans of building a digital infrastructure based on crypto technology. The country sees significant economic possibilities in crypto’s tokenized economy. Eventually, cross-border payments will come at a lower price, and hard physical assets will be traded differently.
Not everyone had the same ideas regarding crypto. As we briefly mentioned, some countries had different, more restricting approaches. We have China cracking down on almost all crypto activities in the past couple of months, while Japan only allowed crypto investment funds recently.
On the other hand, El Salvador legalized Bitcoin as legal tender and embraced crypto in a completely opposite way. The United States has a variety of digital investment options with the ever-expanding asset class. However, regulators are worried about everything related to crypto, from yield-generating products to stablecoins.
Singapore is taking a somewhat optimistic yet cautious approach. MAS believes that all crypto activity is a profitable future investment, a future that’s not clear at the moment.
As Ravi Menon explains, not getting into the game early on means instant disqualification. He believes that the country would be left behind if it had taken another route. Having a strong head start is the way to go. Therefore, if the new crypto technology is faced right at the beginning, it will be easier to spot the benefits, along with risks.
Singapores’ stakes are high, as it has already established itself as one of the leading global wealth hubs. Raising safeguard is the primary action step. Counter risk measures will surely battle illicit flows that are highly possible in the crypto space.
Singapore and its plans to develop crypto technology, understand blockchain and smart contracts are only a preparation for a 3.0 Web version of the world, as Mr. Menon said. It is important to note that Singapore is not alone in its crypto plans. Various locations include Miami, El Salvador, Dubai, Malta, and Switzerland.
Ultimately, Singapore’s plans give us a rather interesting picture regarding the third generation of online services. With multiple countries having various approaches to this new technology, we have yet to see how the crypto future will unfold. One thing is certain, though; we will have a solid case study. If we know that crypto is here to stay, the only thing left to do is watch, learn and implement.
CoinList has a goal, and it involves the acceleration of cryptocurrency adoption. With this mission in mind, the platform has created a holistic offering for users, including everything from lending to trading tools. This multi-service platform allows users to trade, buy, lend and stake the most widely spread crypto assets.
CoinList is a crypto platform that provides easy access to crypto assets prior to their listing on other popular exchanges. CointList is a global leader in new cryptocurrency issuance. They helped such projects as Solana, Filecoin, Celo, Mina, and others to connect with thousands of new token holders. CointList participates in the complete crypto lifecycle that begins with token sales and ends with staking.
CoinList implements vetting, so the collection of crypto assets on this platform is thoroughly curated. At the moment, there are 40 cryptocurrencies one can buy or trade, including several emerging assets that haven’t yet appeared on the wider market.
It is very easy and fast to sign up for CoinList. All you have to do is go to the page and register. CoinList will email you a verification link, and after you click it, you are in! However, in order to use their services, you will need to go through a verification process. They require your name, physical address, a picture of you, and your ID. After this stage, you are good to go!
Prior to purchasing, trading, and selling crypto, you will need to fund your wallet. The moment you are logged in, click on “Wallet” and then click “deposit.” You will be required to connect your bank account or send a wire transfer using the details you have been provided. When you have funded your account, you can start purchasing crypto. It is quite simple, as you can navigate to the “Buy and Sell” page through the left sidebar; all you need to do is select the cryptocurrency from the drop-down menu. Choose how much you want to buy and select “Preview Order.” If the transaction looks good to you, select “Confirm Order” so that the crypto can arrive in your wallet.
It is also an option to deposit to your wallet from another platform. In addition to purchasing and holding crypto, you can trade it within the platform. In order to do that, you need to visit the “Buy and Sell” page, select assets you want to trade, and enter the amount.
Some cryptocurrencies like Bitcoin and Dogecoin are secured by Proof of Work, namely mining, and newer cryptocurrencies use a different consensus mechanism known as Proof of Stake. In PoS, the mining process is replaced with staked funds, another economic resource. Staking can be a complicated process that requires solid financing. CoinList simplifies the process, making staking more accessible for users.
The main goal of a Crypto Enforcement Division is to reinforce the ability of the Department of Justice to fight crimes related to crypto. On October 6th, the DOJ made the announcement about the new unit. The unit will only focus on financial crime strictly involving crypto.
The US Deputy Attorney General made the statement at the beginning of October at the Aspen Cyber Summit. Lisa Monaco said that the team would reinforce the DOJ’s ability to hinder financial markets that permit the flourishing of cybercriminals.
It was also stated that the Department of Justice would set an initiative in motion to center on civil cyber fraud. On the same day, she announced that they were launching the national team of crypto enforcement. They have already started fighting the misuse of platforms dedicated to crypto, and they have shown excellent results. It was also stated that the Crypto Enforcement Division wouldn’t hesitate to hold the platforms that help criminals to launder money in any way accountable. Another point they made clear: they’ll go after platforms assisting criminals to hide criminal proceeds. Crypto has become a crowded space, and new threats appear every day.
At the same summit, Monaco also stated that the team would include as many experts on cybersecurity as experts on anti-money laundering. That particular mix of expertise is made to ensure the protection of consumers for online related crime to finances.
Since crypto exchanges are set to become the banks of the future, there’s a need to make sure that users can trust these platforms when using their services. Companies that receive federal funds will also be pursued if they don’t follow the recommended cybersecurity standards .
The US Department of Justice is chasing cybercriminals, particularly those dealing with cryptocurrency. The latest success story is the case of Larry Harmon, a man from Ohio who got convicted. He was running a Bitcoin mixer for years. Harmon was in charge of a tool that helped “blurring” the source of Bitcoin funds. He pleaded guilty to the charges of money laundering through the service he was in charge of. However, law enforcement wasn’t able to trace them.
We’re currently experiencing new challenges when it comes to the crypto space, especially when we talk about cybersecurity and its regulations. Although there are still many aspects of it to be defined, one thing is for sure; when dealing with crypto, just like when dealing with fiat money, you should always be careful; scams are gradually becoming an everyday reality even in the virtual space.
Fantasy Sports is a flourishing worldwide business. In 2019 its market size was around $19 billion, and it is expected to grow to $49 billion in six years. Usually, soccer or fantasy football experience allows users to select professional players of their choice, define lineups, and get points for the chosen players’ performance.
With Sorare the situation is different. While being a fantasy success game at its core, it allows its users to select player names from a list at the time of the draft; users buy digital trading cards that can be tokenized on the blockchain of Ethereum. Users own non-fungible token cards that can be sold as collectibles, and they are the essence of Sorare’s fantasy process. In addition, there are prizes in the form of tokens and valuable cards.
There is a crypto twist in addition to this web-based fantasy soccer game. Similar to other fantasy soccer, this game is about creating your lineup using pro soccer stars. The on-the-pitch stats of these players are translated into game points. The essence of the game is to beat other users by gathering more points.
Sorare includes licensed players across hundreds of international teams from different leagues. Users can add to their team by means of obtaining digital trading cards. Among these teams are Liverpool FC, AC Milan, Juventus, Real Madrid and more.
As we have already mentioned, this game offers numerous leagues you can sign up for. The moment you join a league, you can define a new lineup every play week using the previously purchased cards. When the play week is over, you can see all your game points based on the performance of real-world players. As a user of Sorare, these game points can be translated into ETH and valuable cards as rewards.
There are a few things Sorare brings together that people are obsessed about – fantasy sports games, soccer, collectibles, and crypto NFTs. There is a real competition with a pronounced pay-to-win element.
The prominent social media pioneer, Facebook, is investing a significant amount of $50 million in creating the Facebook Metaverse. But let’s start at the beginning; what exactly is a Metaverse? “Metaverse” is the word used to describe an online space within the digital environments. A space with social media, virtual reality, and online games. It’s a mix of “meta,” which means “after” or “beyond” and the word “universe”. The Facebook Metaverse developers are trying to get ahead of the critics by making conscious investments and having meaningful partnerships. The budget planned for the next couple of years is $50 million. The budget will be directed towards initiatives related to the project and collaborations. The Facebook Metaverse goal is to create a space for work, social interactions, and games, among other things.
CEO of Facebook, declared that the social network pioneer was on the way to transforming into a metaverse firm. Now, the company is actively investing money into that statement. For instance, the team revealed plans to invest 50 million over the following two years to give life to the Facebook Metaverse.
The concept of the metaverse is already known in the crypto industry. Decentralized projects try to create future worlds and experiences online out of the control and supervision of centralized entities. Facebook is an excellent example of that. In simple terms, the Facebook metaverse will be about shared virtual spaces where users can interact together and coexist.
Developers declared that by opening the door to gaming and social experiences, the metaverse has excellent potential to improve the way we work. Also, they believe that it will create new economic opportunities for users all over the globe. Therefore, it will be somehow similar to the way decentralized autonomous organizations operate. DAOs are built so that their goal is to disrupt the traditional model of companies as we know it.
This is a very ambitious and revolutionary project. That’s why the thought does not convince some metaverse developers of Facebook being the one leading its development. There’s a lot of criticism of its record regarding the user’s privacy, and it’s one of the primary sources of misinformation. The company said in previous days that the Facebook metaverse would be built responsibly. They plan to work with expert advisors in the government and industry. For instance, the goal is to work through potential issues and new opportunities in the Facebook metaverse.
Involving communities of civil and human rights has been a must in this project since the very beginning. Most importantly, there’s a need to guarantee that these technologies will be built in a way that is empowering and inclusive.