Sharding could help the current limitations that Ethereum’s current features create, such as requiring nodes to get transactions verified. This process makes it all slower and time-consuming, which significantly delays the transactions that can be verified simultaneously. It all comes down to having a scaling problem since the network has a hard time processing the volume of transactions being held. That could change through Sharding.
Sharding is a method of splitting, distributing, and storing data among multiple databases. It is necessary when a dataset is too big to be contained in only one database. The main goal of Sharding is to break all the nodes that work together in Ethereum into smaller groups. These mini-groups are called Shards. In their core, nodes will verify the history of the transactions contained in the shard inside. So, instead of transactions being verified by the whole network, a boundless number of shards can be created to process transactions on a smaller scale. This translates into the possibility of the network to scale without a limit.
Starting from the idea of expansion, one of the co-founders of Ethereum, Vitalik Buterin, wrote an essay elaborating on the concept of Sharding at the beginning of 2018. They’re still working on more improvements. Vitalik proposed even more upgrades for Ethereum in an ambitious three to five years after it merged with PoS.
Since it’s been set for scalability in the long term, the most promising strategy of Ethereum must count as a separate upgrade. It must be separate from the rest due to them not wanting to do all the things that could be potentially dangerous at once. First, the merge to proof-of-stake and then the rest, so the people in charge can pay special attention to it and focus.
Just as the internet evolved, the network’s evolutión was the result of many crucial steps. Sharding is a significant one in the growth and improvement of Ethereum. If it turns out to be triumphant, it could potentially make the process of thousands of transactions more accessible. This would help the developers of decentralized apps would have a better platform to run their projects.
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.
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.
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.
As the number of dating apps skyrocketed in the last few years, so did the crypto scams linked to them. Nowadays, dating has become as easy as picking up the phone and clicking a few times here and there. Getting a date is not a hustle as it used to be; it’s never been easier than it is today. Long gone are the days where it was needed to go up and start talking to a random person to score a date. Now, even the most isolated loner knows how to use a phone. Anyone can download one of the thousands of dating apps, such as Tinder, and start swiping left and right. This is convenient for many users out there interested in crypto as well. Although buyers are careful, not all that glitters is gold.
In the first quarter of 2021, the worth of crypto scams went up to reach $1.2 billion, according to a report from a famous firm specialized in crypto security that studied the activity of scammers, thieves, and fraudsters. We can all recognize the tell-tale signs, the “giveaways” in social networks such as Twitter, Facebook, and Instagram. Identifying fake accounts can be relatively a piece of cake. Users pretending to be Elon Musk or Mark Zuckerberg are easily spotted by the username being misspelled and the account not having more than a few followers. And one of the most significant red flags to notice is the following: why would someone like Elon Musk give away money out of the blue? Although these signs might be pretty easy to spot, unfortunately, it seems that crypto scammers have upped their game.
According to recent info shared on Public Service Announcements of Reddit, a significant number of scammers moved their “business” to Tinder. The general MO of the scammers is to play the long game patiently. They use their charms to lure potential victims into a fake sense of security. Once they feel their target trusts them, they “conveniently” offer them an insider tip on an exchange, typically of some new crypto. This generous tip is the bait the scammers wish for the victim to bite.
It’s believed that only last month $60,000 was stolen by these exchanges. It’s evident that common sense or critical thinking is not used to avoid crypto scams. However, there are a few tips that could be of help. After deeper investigation, it was noticed that many Tinder users that were targeted reported being sent to buy a token called PCT at an exchange under the name “add-ex.io.” Based on the experiences of those Tinder users, the company RedMarlin put together a list of tips to avoid crypto scams.
Among the main ones are:
In this fast-changing world we live in, it is critical to avoid getting tricked. Not only to steer clear from the unpleasant experience of feeling double-crossed but also to avoid a potential strong hit to your finances. When it comes to love, crypto, and dating apps, it’s better to keep your eyes wide open. Although keeping an open mind is essential, dating apps might not be for everyone in the first place. Many people get scammed either way There are many ways you can get scammed, but this new method is blooming, and everyone using dating apps should be aware of it.
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.
Since the big boom of crypto over a decade ago, there have been concerns that a country could potentially ban Bitcoin. Rumors have been around for over a decade, but the chances of it actually happening seemed to be getting smaller and smaller as time went by. At least that was the general consensus until last week when China declared all the crypto transactions illegal. However, to ban Bitcoin or any other crypto for that matter is quite a challenge. Some technologies can enable users, even in repressive countries, to access Bitcoin.
There have been many concerns over the years since the beginning of Bitcoin. The main one is that it might be only a matter of time before governments worldwide start banning cryptocurrencies. Banks say that crypto like Bitcoin is a significant threat to the monetary systems as we know them. They are not far from the truth; they have the power to potentially erode banks’ control over the supply of money. The central institutions argue that money laundering, drug trafficking, and ransomware are also significant risks implied. In the end, it depends on each region to make the call, whether they want to ban Bitcoin, crypto in general or not.
The question is whether it’s actually possible for nations to ban Bitcoin? The answer has already been given. Crypto has already been officially banned in various countries around the world. To the day of writing this article, a few countries have banned Bitcoin by forbidding owning, interacting with, or using the crypto in any form. Examples of these countries are Algeria, Egypt, Ecuador, Pakistan, and Nepal. Some others like Taiwan and Saudi Arabia have placed partial bans on the crypto by blocking some financial institutions from handling Bitcoin transactions.
Out of the countries that have made their position against Bitcoin very clear, China has the most confrontational approach. This year, the red dragon nation has made pretty aggressive moves against the token and cryptos in general. Committed to carbon neutrality, China has hit firmly on the pockets of mining companies as well as in those of independent miners. The country has held a ban on trading crypto for a long time now, but this year, the government actually forced crypto miners to close their operations. Miners were forced to relocate to other countries. Meanwhile, the PBoC made it official through a mandate that payment platforms and banks had to stop all crypto activities.
BTC is currently legal in the US. In 2015, it was declared a commodity by the Commodity Futures and Trading Commission. Since then, Bitcoin has been treated like other commodities such as gold. As a commodity, it’s subjected to its regulations. Although keep in mind that there’s always the risk of a blanket ban, chances are low, but in today’s fast-paced world, things can change in a brief period.
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.
Stablecoins, as we know them, are the cryptocurrencies backed up by the currencies issued by the government, also known as fiat currencies. Stablecoins are different from other cryptos because, unlike them, the price of stablecoins is constantly steady. They’re usually used as a value store or account’s units due to their stability. Since creating cryptocurrencies, they’ve been known as volatile assets when we talk about their price. It’s common for the prices to crash or jump, which prevents them from being valuable as everyday services or goods since it implies a high risk for merchants and vendors.
In theory, a stablecoin has a stable price because it has a fiat currency such as the USD backing it up. In simple terms, their prices are regular because of the fiat currency itself. The most common currencies backing up stablecoins are the US dollar, British pound, Russian ruble, Israeli shekel, etc. Some can be decentralized, others centralized, and they all can have diverse strategies to reach price stability.
A few examples of stablecoins are Tether (USDT), one of the first and probably the most famous ones. It claims to be backed up by USD called collateral. Other examples can be Gemini Dollar, oneFIL, and CACHE.
In the crypto space, the most common stablecoins are pegged to the US dollar, such as Tether, True USD, USD Coin, and Binance USD. Although, there are other cryptos backed by different fiat currencies that are also popular. Such is the case of GBP-pegged crypto Binance GBP Stable Coin, EUR- pegged Stasis Euro and backed by gold CACHE.
Like the majority of the assets in the crypto space, stablecoins are used mainly as a value store or a way of exchange. Because of their low volatility nature, they provide a “safe haven” when the markets are shaky.
As the best example of how popular they have become, we have Tether, the second most traded crypto after Bitcoin. Tether has a volume of trading of more than $70 billion every 24 hours. Once you know the principle they’re based on; it is easy to understand why someone would choose them. Their stability and backup provide investors with trust and confidence, knowing that their money is safer than in other assets.
The proof that these coins are backed up by the reserves they claim to have, is hard to get. For example, Tether has never provided conclusive evidence that the currency is backed, which increased the rumor of it being issued out of thin air.