The Mind Behind Helium: Shawn Fanning

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.

The Beginnings of Shawn Fanning

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. 

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.

Shawn Fanning’s Ventures

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.

Helium

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.

Polygon After Ethereum 2.0

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.

How Does It Work?

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.

What Will Happen to Polygon After Ethereum 2.0?

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.

What will be the role of Polygon after Ethereum 2.0?

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. 

Conclusion

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.

The Co-Founder of Ethereum Vitalik Buterin

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. 

His Childhood

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.

Vitalik Buterin’s Student Life

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.

The Lightbulb 

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.

Ethereum is Born

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.

Conclusions

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.

Expand the Dish Network & Receive Helium Tokens

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.

What Does it Mean for Crypto Space?

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.

LongFi and Helium

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.

What’s the Next Step?

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.

Helium’s Future

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.

Conclusion

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. 

Singapore Plans to Become a Global Crypto Hub

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.

Singapore’s 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. 

How Other’s Embraced Crypto

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. 

The Plans and Risks

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.

Conclusion

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 101: Get Started with the Platform that Is Driving Crypto Adoption

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. 

About CoinList

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!

Trading on CointList

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. 

Staking on CoinList

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 U.S. Department of Justice Establishes a Crypto Enforcement Division

What Is the Purpose of the Crypto Enforcement Division?

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.

What Are the Targets?

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. 

Who Will Be Part of the Crypto Enforcement Division?

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 . 

A Case of Success for the DOJ

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.

Conclusion 

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.

Mark Zuckerberg and His Crypto Plans

Before the Big Boom

Mark Zuckerberg, born in New York in 1984, developed an interest in technology and computers from an early age. At the age of 12, he created a program for messages called Zucknet, also computer games just for fun. Years later, he developed software that big companies such as Microsoft and AOL were interested in buying. He enrolled in Harvard University but dropped out to focus full-time on developing his new company, Facebook.

Facebook Conquering the World

Mark Zuckerberg, the co-founder of Facebook, the most famous social networking site, announced that they plan to transform the company into a metaverse. The info was made public through a statement claiming that the firm is looking to invest 50 million. The budget should be spent in the next two years, bringing the Facebook Metaverse to life. Such ambitious projects aim to create a platform that has it all, social media, games, working space, DeFi, crypto, and more. 

Is Mark Zuckerberg Ready For This Move?

Many experts in the field have stated their disapproval of this particular project. Even though this is not the first metaverse in the crypto space, it is still the first of its kind. Other social media pioneers who have also mentioned having plans of a similar kind  are only focusing on providing DeFi services that use Bitcoin. On the other hand, crypto platforms are not aiming to dabble into social networks. The idea of Mark Zuckerberg is to use his already well-established media to boost his new project. Unlike Ethereum, the most famous metaverse for crypto, the Facebook Metaverse will implement the most extensive social networks into the mix. 

With this move, the social network pioneer is trying to get ahead of the next stage of the Internet. It seems to be that they are trying to create a new trend before the rest of the platforms out there go in a different direction and their tools become obsolete.

The Main Concerns

The skepticism comes from the fact that Facebook has been breached several times and compromised user information. Not only has the social network been the target of scrutiny, Mark Zuckerberg himself has also been called to court. He has attended court to clarify data breaches, electoral manipulation, and the sale of private user information. Realistically there is a significant amount of distrust about anything related to Facebook. Although not only that but to Zuckerberg as well. 

Experts have advised him not to build this platform but to use the blockchain that already exists instead. Blockchain technology is a significant threat to social networks. Eventually, if they’re not able to adapt, they’ll most likely disappear. Will Zuckerberg be able to deliver his very ambitious metaverse or not  still remains to be seen. For sure, this young entrepreneur from New York is not going anywhere and will give us more to talk about in the future.

Facebook Metaverse

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.

Who’s in Charge of Facebook Metaverse?

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. 

What Will Be the Benefits of It?

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.

What Can We Expect From 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.

Bitcoin Halving Explained

How Does Bitcoin Limit its Supply?

In the mining world, it’s well known that Bitcoin has a limited supply of 21 million tokens, and Bitcoin halving happens every few years. But what is Bitcoin halving? In simple terms, it’s the event where the rewards given to miners are cut by half. This event, following Bitcoin’s pre-set rules code, should happen every four years. That means that the amount of Bitcoin tokens distributed to the miners as rewards halves.

About the Supply

In order to understand halving, first, we should understand what the theory of the supply of Bitcoin is about. Satoshi Nakamoto, the mastermind behind Bitcoin, strongly believed since the beginning that scarcity creates value. It can be compared to there being only one Mona Lisa, which makes it more valuable than if there were several of them. The same thing happens with the amount of gold worldwide; because it is limited, its value increases.

Based on that same principle, Bitcoin became the first revolutionary digital asset by making it scarce. There will only be 21 million coins of Bitcoin ever issued and distributed. This limiting strategy of BTC is totally the opposite of the principles of how fiat currencies work, such as the USD. In the beginning, the US dollar had a certain amount of backup in gold as a reserve. That is a concept known as the gold standard. As time went by, those rules adapted so economies could print more money, and they could stimulate economies in need. That way, governments can print money every time they need to. 

What is Bitcoin Halving?

First, we have to clarify that mining is the process through which new Bitcoin is minted as a reward for blocks. Miners are in charge of securing and maintaining the ledger of Bitcoin, and in exchange for it, they get Bitcoin. Still, every four years, said reward gets reduced by half; therefore, the term assigned to it is “halving.” Each Bitcoin halving event minimizes the number of new coins in the supply until 2140, when the last Bitcoin will be minted.

What Makes Halving Unique?

Since Bitcoin is decentralized, which means no one controls it, it needs a great set of rules. One of the most important rules is how many Bitcoins get minted and how they are released and distributed. The halving event occurs every four years, the whole system is set in stone and basically impossible to change. Specifically, that rule makes Bitcoin practically hard money, like the case of gold, which has a limited supply almost impossible to change.

The Impact it Will Have on the Price.

There are different opinions about how halving will impact the price of the crypto. If we go by the book, in theory, because of supply and demand laws, the fact that the supply is limited should increase the price. Although, some experts claim that it could potentially have the opposite effect based on the history of Bitcoin halving events. Not only by stalling the price but actually crashing it.