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crypto

What You Must Know About SocialFi and the Emerging Trends In the Near Future

With over half the world now spending an average of two hours on social media platforms every day, the influence of this still embryonic sector on society has become evident.

Social media has permanently transformed the way we live and communicate. It has irrevocably changed our society and even rewired our minds, for better or worse.

SocialFi, short for Social finance, refers to the merger of social networking with blockchain finance. The SocialFi environment enables users to make cash via content production, participation in DAO governance, NFT minting, talking with other users, viewing entertainment, and gaming.

Unlike the Web 2.0 social networks, you are acquainted with, SocialFi initiatives provide greater privacy and security for users’ data, properly share advertising profits and provide a more meaningful user experience.

Social Media Companies Entering the SocialFi Space by Embracing NFTs

As the SocialFi field obtains more incredible momentum, more and more social media companies are increasing the research of NFT integration into their platform. Below is a list of firms actively integrating or researching the NFT area.

Facebook/Meta

With a projected user base of over 2.89 billion as of 2021, it comes as no surprise that Facebook reigned communication in Web 2.0. Facebook, now known as Meta, is making advances in its move towards Web 3.0. Meta’s step in establishing the world’s largest social media metaverse.

Instagram

Although the photo-sharing platform hasn’t gotten aboard the NFT train yet, the company’s CEO said late last year that they are studying the NFT area in hopes of making NFTs more accessible to their user base.

Twitter

In anticipation of their ambitions to incorporate cryptocurrencies into their platform, Twitter has launched a new feature that enables its Twitter Blue account users to display their NFT as their profile images on the social media network.

Reddit

Not in a position to miss out on the chance to establish itself as a player in the SocialFi area, Reddit followed closely after Twitter in implementing the NFT profile image deployment.

Additionally, the social media behemoth intends to turn users’ Karma points into cryptocurrency tokens in the near future, in addition to aiming to launch an NFT marketplace.

YouTube

YouTube has been investigating non-financial transactions (NFTs) as a potential source of money for its artists as part of their attempts to grow their ecosystem.

Starting with customized NFTs sent to influencers on the YouTube platform, the company has revealed that artists could monetize the video content they make and sell it as NFTs.

A New Lighthouse of Hope

As the internet progresses toward decentralization with Web 3.0, SocialFi platforms will begin to acquire significance and will eventually become essential instruments for protecting freedom of expression and data sovereignty online.

One feature of blockchain architecture is that data that has been uploaded becomes immutable, which means that it cannot be modified or removed later.

The ability to share anything without the fear of being de-platformed or censored gives average users and content providers the ability to express themselves without restriction.

Greater transparency and the absence of intermediaries are the norms with SocialFi platforms, which aim to ensure algorithm modifications are monitored and that content producers earn a reasonable portion of income.

YouTubers have seen their earnings decline over the years due to tougher constraints. Still, systems powered by SocialFi, such as Subsocial and Deeper Network, allow content producers to monetize their works directly via their fan bases.

SocialFi is exhibiting the potential of alternative finance via the use of NFTs and tokens, while DeFi alternatives such as yield farming, lending, and other initiatives are also accessible.

Yet another essential feature of SocialFi platforms is that they let users regain control over their data, enabling them to select whether or not they want to sell their information and to whom.

These platforms not only allow users to get a percentage of advertising money, but they also allow them to choose the sorts of items and services for which they would want to see advertisements on their own.

Social Finance NFT Trends on Social Media

The Avatar Trend in NFT

It is common to see NFT Avatars on the majority of Twitter profiles. An avatar represents a user’s online persona that has been utilized for a long time in the social media sphere.

In SocialFi environments, an NFT Avatar may represent the owner’s identity in both the cryptographic world and the future metaverse, allowing them to communicate with one another.

User verification and usage of their NFT as a profile photo are now possible on Twitter Blue (and many other social media sites), among other things.

Social media (SocialFi) platforms are considered a potential cryptocurrency exchange.

Decentralized financial applications are being progressively integrated into social media platforms such as Facebook and Twitter in order to give users a next-generation personal finance environment.

The ability to transmit payments, trade tokens, participate in public offers, and more will be available to users on a single social networking platform.

Making NFTs more accessible to the masses on Social Finance

As more open-source Web 3.0 application developers emerge, such as those at the Mask Network, they are building decentralized application ecosystems that connect the existing Web 2.0 and Web 3.0 technologies.

Hopefully, this will result in additional Web 3.0 apps being added to conventional social media platforms such as Twitter and Facebook.

DApps such as the Mask extension, in addition to enhancing NFT-related content alternatives by making it more straightforward for users to identify outstanding producers, may save NFT artists and NFT fans a significant amount of time by automating several time-consuming procedures.

If, for example, content producers and NFT collectors use a single account to effortlessly travel between social media sites and search for information while shopping for NFTs, they will save time by not having to create two separate accounts, one for each network and one for the marketplace.

Why Are Social Media Giants Obsessed With NFTs

NFTs are not presently available for purchase, sale, or creation on any social networking site. On the other hand, the success of an NFT project depends on how successfully the project’s creator advertises their work on social media.

Moreover, while social media platforms passively define the future of NFTs, digital giants such as Instagram, Twitter, and Reddit view this as a chance to get more actively engaged in the area.

The majority of NFT owners feel that posting pictures of their NFTs on social media increases the value of their assets. As a result, social media firms that are crypto-compatible will have the opportunity to reach and keep new NFT-oriented clients.

Additionally, the social media businesses with the most influence in the NFT area may have an effect on the development of Web 3.0, which is based on the notion of storing user data on blockchains and is expected to be implemented in the near future.

Is SocialFi the Next Big Thing in the Internet World?

Many people feel that SocialFi is a fantastic development in the technology business and a fantastic approach to secure users’ interests in the virtual environment, especially given the trajectory of growth that the company is now on.

Despite the fact that it is still in its early phases, SocialFi has the potential to have a significant influence on the cryptocurrency, blockchain, NFT sector, and how people interact socially throughout the globe.

At this point, it is very feasible that SocialFi may become a vital component of the Metaverse ecosystem in the not-to-distant future.

Conclusion

The acronyms Facebook, Instagram, Twitter, and YouTube, have become synonymous with the word “social media,” which is likely to change soon. Blockchain technology is giving way to a new generation of social networks that have the potential to be much larger and better.

The old social models are given superpowers by these new networks based on them.

Soon, data fraud, misinformed algorithm tweaks, and unnecessarily restrictive content restriction may all become a thing of the past. This could be because community members own and operate these new social networks.

The option of social financing is also included as part of this arrangement (SocialFi). Social influence on these platforms is tokenized, and individuals who are essential personalities on these platforms may earn direct monetary rewards due to their efforts.

The growth of these new social networks and their integration with SocialFi is undoubtedly one of the most acceptable applications of blockchain technology, and it may be at the forefront of widespread adoption.

Over the past few weeks, it’s been a wild ride in the Crypto Twitter and DeFi communities. The rollercoaster started when CoinDesk disclosed that one of the co-founders of the famous Avalanche-based automated money market (AMM) Wonderland, pseudonymous “Sifu,” was Michael Patryn.

Despite Patryn’s shady past, prominent co-founder Daniele Sestagalli knew who “Sifu” was but chose to offer him a “second” chance. But, members of the Wonderland community on Twitter did not share the same sentiment as Sestagalli.

As a result, Sestagalli’s reputation has taken a significant hit in the past week. And upon further investigation into his background, things only look worse for the embattled co-founder. This leaves us with the question: What’s next for Wonderland? Before we dig into Wonderland’s future, let’s take a look at Danielle Sestagalli.

Who is Danielle Sestagalli?

Daniele Sestagalli, also known as Danielle Sesta, has extensive experience in the blockchain industry. In several interviews, he has indicated that he began using Bitcoin in 2011. The crypto world didn’t know much about him, but his Zulu Republic project impacted the crypto industry in 2018. It was one of the first airdrops, giving around $30 million to over 500,000 people. The project’s website is now defunct.

The Zulu Republic is a digital ecosystem based on the Ethereum blockchain, focused on believing that decentralized finance is the future human protocol. With an emphasis on unrivaled user experience, the objective was to make it easier for people to join the cryptocurrency revolution, empowering them to take control of their own financial lives. There have been no updates on the projects pages since 2018.

Sestagalli ‘s Linkedin profile shows that he also was an advisor to Bancor from July 2017 to September 2018. Bancor is a decentralized liquidity network that allows you to hold any blockchain asset and convert it to any other asset in the network, with no counterparty, at an automatically calculated price, using a simple web wallet.

In July 2017, Bancor completed one of the most significant token sales, raising $153 million. The project was met with a lot of hype and excitement but failed to live up to the expectations.

By the beginning of 2021, Daniele Sesta appeared busy creating a music industry model that would benefit musicians and the industry. The aim was to establish a blockchain foundation for everyone working in the music industry.

The Utopia Genesis Basis was to carry the blockchain to the music industry. The idea behind it was to empower artists by a platform that permitted them to subject their tokens without intermediaries.

However, it is not clear how much progress was made on this project as there is no website or social media presence for Utopia Genesis Basis.

But, all of a sudden, Daniele Sestagalli diverted his attention elsewhere and re-appeared with three items that changed the blockchain sector; Popsicle Finance, Abracadabra, and Wonderland entirely.

Unknown people hacked Popsicle Finance for tokens worth more than $25,000,000 at the beginning of August 2021. It was a major hack, and the price of the $ICE token crashed as a result.

Abracadabra is a DeFi yield farm that allows you to stake your cryptocurrency and earn interest on it. The protocol has been live, having over $200 million worth of value locked in it.

In September, Sestagalli founded Wonderland. According to a November interview, Sestagalli originally envisioned Wonderland as a perpetual, “mega-ICO,” giving tokens to holders over time and developing a treasury, as an Olympus fork DAO — an infamous, sky-high APY rebasing project commonly criticized as unsustainable.

Wonderland eventually overtook Olympus in market capitalization and treasury size.

The Fallout of Wonderland

In January 2022, blockchain sleuths reported “Sifu” as Michael Patryn. According to the report, Michael Patryn is allegedly a skilled serial scammer, with a sentence and deportation on his record. Patryn was the co-founder of QuadrigaCX, a failed Canadian cryptocurrency exchange.

QuadrigaCX, a crypto exchange created by Gerald Cotten and Michael Patryn in 2013, quickly grew to become one of Canada’s largest crypto exchanges by trading volume. According to sources, Cotten died in December 2018 during a trip to India, after which over $190 million in cryptocurrency owed to 115,000 consumers went missing.

Officials at QuadrigaCX claimed that only Cotten had access to the secret keys containing millions of dollars worth of client cash. However, crypto circles quickly labeled the entire incident as an exit scam.

Patryn had remained under the radar since then, until a few weeks ago, when he was discovered to be one of Wonderland’s architects.

“Sifu,” a co-founder of the Olympus, made the DeFi project, Wonderland, what it is today.

With the wonderland team’s help, including his partner Danielle Sesta, Michael Patryn (Sifu) made seed investments in the Olympus project making significant, unilateral investments. Wonderland being the fork of Olympus, overtook it in every aspect.

In particular, the wonderland co-founder, Sestagalli, popularized the idea that Frog Nation investors will someday compete with and replace “the suits,” a term that refers to established investment funds.

However, the Olympus project has come under fire in recent weeks due to the wonderland saga. There is a devastating drop in both the original project and its forks. Wonderland dropped by as much as 40% in 24 hours after Sifu’s unmasking as Patryn, tumbling as far as 95% from its all-time high.

With Patryn’s revelation, the already weak price action suffered another blow after Sestagalli stated that he had known Patryn’s identity and connections to QuadrigaCX but opted to work with him as the treasury manager nevertheless. The dynamic caused wonderland investors to lose faith in the project.

A few days later, the “frog nation” leader, Sestagalli, stated the path forward; “Do we wind down or continue to fight for the aspect of an investment DAO [decentralized autonomous organization] being a revolutionary new organization? For the option that I am for, which is to fight and replace Patryn with someone new and experienced to manage the treasury.”

The information caused a lot of commotion with community members who refer to themselves as the “Frog Nation.” Although Patryn was relieved of his duties, the question remains; what will become of Wonderland’s treasury?

What’s Next for Wonderland?

In light of the recent revelations, what will happen to Wonderland is unclear. The crypto community is up in arms, and wonderland investors doubt the wonderland treasury.

Although Danielle Sestagalli actively worked with a convicted felon, a community vote to shut down Wonderland and distribute the treasury to investors failed to pass a few days ago.

The outcome of votes may programmatically and automatically prompt actions on-chain, such as changing the code for a protocol or triggering treasury payments, depending on the decentralized autonomous organization (DAO) governance model.

Wonderland’s developers designed the protocol of DAO to protect against a single bad actor. However, in this situation, the majority of the community desires that the Wonderland team can hypothetically choose whether or not to enact.

This scenario heightened tensions in the crypto community when Sestagalli appeared to imply that Wonderland would close regardless of the outcome of the “Wind down Wonderland” vote.

A few days later, the vote concluded with 55 percent of the token weight in favor of the project moving on. Also, time token holders agreed to give the team a chance to make some changes in the project.

It was possibly the most active governance proposal in DeFi history, with over an overwhelming majority voting to continue the project, defeating a considerably smaller number of opposing addresses. Danielle Sestagalli, in turn, wrote in discord that the wonderland team was taking time to “compile suggestions, and determine the best path forward.”

The problems at Wonderland and the consequences show the fundamental flaws with the DeFi administration, which frequently relies on anonymous or pseudonymous oversight from a small number of critical people. Though smart contracts automatically execute various decisions when certain circumstances arrive, the financing of such projects is typically left in the hands of people with little checks and balances.

However, DeFi supporters should use this opportunity to reflect on how to prevent anything this egregiously audacious from happening again. Wonderland DAO agrees!

What’s Left of Danielle Sestagalli’s Name?

In the decentralized financial world, Daniele Sestagalli made a name for himself through his work. He is the brains behind three of the most successful DeFi initiatives, with a combined market worth of 6.5 billion dollars (including MIM) and a total value of 6.7 billion dollars. By market capitalization, MIM is also the 6th largest stablecoin in the Sestagalli ecosystem.

The recent news has taken away a big part of Sesta’s success. Sestagalli’s reputation has taken a significant blow, regardless of what happens to Wonderland. His noble associations with a convicted felon who faced financial crimes will not help him salvage his name.

Michael Patryn is dragging Danielle Sestagalli’s name in the mud, and it doesn’t look like it’s going to get any better from here. Can the crypto community trust Sestagalli to lead any future projects?

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crypto

What is the Difference Between DeFi and CeFi?

Decentralized finance (DeFi) and centralized finance (CeFi) are terms that are increasingly attracting global attention for several reasons. In a sense, the terms stem from the rise of cryptocurrencies. The concept of cryptocurrency arose from the introduction of blockchain technology in 2009 when Bitcoin came onto the global scene.

With the cryptocurrency having the potential to rival established financial institutes such as banks, a discussion about the fate of traditional finance took hold. However, the debate has since shifted to CeFi versus DeFi as the niche continues to expand.

Both CeFi and DeFi offer a wide range of crypto-related financial services, but they have specific differences. Additionally, one will quickly notice that CeFi is a broad term whose interpretation could extend to traditional financial services. This article offers a granular explanation of the terms and their principal differences. So, read on to grow your knowledge.

Defining decentralized finance (DeFi)

DeFi, short for Decentralized Finance, is an emerging technology where blockchain-based applications – called decentralized applications or dApps – enable users to save, trade, and even lend funds without any intermediary.

Saving, lending, and other financial services are the preserve of financial institutions and banks, at least that was the case until 2009. According to Satoshi Nakamoto, the person or persons who invented Bitcoin, the cryptocurrency’s objective was to make financial transactions peer-to-peer. They even conveniently titled the Bitcoin whitepaper “A Peer-to-Peer Electronic Cash System.”

As per the whitepaper, the purely peer-to-peer payment system would enable parties in a transaction to exchange value directly, hence taking out intermediaries. The technology would enforce trust using digital signatures and a digital ledger to prevent double-spending.

DeFi takes the idea of peer-to-peer or P2P transactions even further. Software developers and entrepreneurs have built an ecosystem of dApps that could actually decentralize a sector that is traditionally tightly controlled by a few players.

Nonetheless, DeFi is an emerging niche, and for now, the term is best viewed as a broad representation of public blockchain networks. There is a lot of specialization where some blockchains focus on lending and borrowing, while others are solely insurance platforms. All this is possible thanks to the blockchain technology that bitcoin pioneered.

How DeFi works

We stated earlier that DeFi is an emerging niche built on blockchain technology. This is the same technology that underlies cryptocurrencies like Bitcoin and Ethereum. In other words, if one wants to understand the core functionality of DeFi, one must understand how blockchain works.

According to the Bitcoin whitepaper, blockchain is not a new technology. To be sure, Satoshi Nakamoto cited several seminal papers that explained a rudimentary version of the blockchain. Additionally, the Institute of Chartered Accountants in England and Wales (ICAEW) outlined the history of blockchain, in which it credited W Scott Stornetta and Stuart Haber as the originators of the technology.

Nevertheless, blockchain stands for the same concept. It refers to a distributed database (or ledger) shared among different nodes that make up a single network. The distributed ledger keeps a record of transactions by distributing smaller bits to each node on the network. This ensures security and trust in the network, but more importantly, it creates the foundation for P2P transactions.

Each transaction instance is stored in a block. As more transactions occur, the number of blocks increases, creating a blockchain. A typical blockchain network has superusers who must verify each transaction before adding a new block. Additionally, the information in previous blocks is unalterable, making the technology highly secure.

Therefore, DeFi leverages blockchain to provide financial services without the need for intermediaries. Specifically, developers build decentralized applications (dApps) that use smart contracts and cryptocurrencies to deliver stated services.

Banks and other financial institutions are the guarantors of transactions in traditional finance. On the contrary, smart contracts play this role in the DeFi ecosystem. Also, fiat currencies enable parties in traditional finance to exchange value. Cryptocurrencies play this role in the DeFi ecosystem.

A smart contract is a computer program that the creators of the Ethereum blockchain pioneered. It contains instructions and conditions that parties must meet for transactions to succeed. Most importantly, no one can alter the information in the smart contract once it goes live.

To fully grasp how DeFi works, suppose you wish to obtain a loan. First, you will specify your loan needs in a dApp. Then, native algorithms will pair your needs with peers who are willing to fulfill them. The lender will then require you to agree to specific terms, and the blockchain network will record the transaction. If the transaction passes the verification test, you will receive the funds in your wallet.

And what is centralized finance (CeFi)?

Centralized finance (CeFi) refers to the ecosystem where consumers receive financial services through intermediaries. One could argue that traditional finance is an apt demonstration of CeFi. For example, one must have an account with a financial institution (such as a bank) to be able to transfer value.

From the preceding, one might think that CeFi is all about traditional finance, but that is far from the truth. In fact, the idea that bitcoin could revolutionize finance became a reality because of the activities of CeFi businesses, such as Coinbase.

So, what exactly is CeFi in the crypto-sphere? The fundamental idea behind CeFi in the crypto-sphere is to avail crypto investment opportunities based on traditional finance norms. This is to say, users will enjoy the benefits of DeFi but within the constraints of traditional finance.

For example, Coinbase enables users to buy and sell cryptocurrencies, but the process is not peer-to-peer. Suppose you wanted to borrow a loan in the CeFi ecosystem, you’d need to apply to a service provider. Here, you’d also pay services fees to the service provider and interest on the principal sum.

How CeFi works

CeFi works in the same way traditional finance works. The previous paragraph explained that consumers in the CeFi ecosystem could only access services via a service provider. We should add that crypto-focused businesses also require customers to open accounts, much like traditional banks’ savings accounts.

However, one must note that the account does not enjoy similar privileges as those opened with traditional banks. For instance, crypto-related savings accounts do not enjoy the protection of FDIC or SPIC insurance.

How does DeFi differ from CeFi?

From the preceding, it is apparent that DeFi and CeFi are functionally different. However, one needs a granular grasp on the features of each ecosystem to understand the differences better. So, let’s discuss the features and how each ecosystem approaches them.

·       Method of exchange

The peers in a DeFi ecosystem exchange value in a way that fundamentally differs from the customers in the CeFi ecosystem – this is, in fact, the primary differentiator.

On the one hand, the exchange of value in DeFi is entirely dependent on technology. The parties communicate via smart contracts, and the verifiers are in charge of enforcing trust. Additionally, DeFi leverages distributed ledger technology to guarantee the security of transactions.

On the other hand, customers in a CeFi ecosystem depend on intermediaries to access needed services. The intermediaries could be cryptocurrency exchanges or crypto-focused financial service providers with the necessary license to offer the stated services. Also, CeFi service providers do not require blockchain networks to facilitate the exchange of value.

·       Permission

In centralized ecosystems, users cannot access services without proper permission. This is the case in CeFi. Specifically, customers in the CeFi ecosystem must sign up for accounts, which requires them to submit to know-your-customer (KYC) regulations. Proponents of permissioned access argue that it enforces fidelity to crypto regulations and prevents criminal activities.

On the contrary, DeFi users do not require permission to partake in the market. All one needs is a non-custodial crypto wallet with proper security measures. Furthermore, the absence of KYC guidelines in DeFi enables users to transact with an elevated form of anonymity.

·       Custody

The subject of custody is an issue that extends from the absence or presence of permission requirements. For DeFi users, one has complete control over their assets. However, this implies that the users shoulder all the risks.

On the other hand, centralized exchanges guarantee safety, security, and trust in a CeFi ecosystem. They also bear the risk of their customers’ funds, much like traditional financial institutions.

·       Cross-chain services

Most CeFi services offer investment opportunities in coins created on independent blockchain networks. This is possible because the businesses store funds from several chains. Thus, users can access services from several blockchains.

On the contrary, most DeFi assets and dApps follow the Ethereum token standard, implying that cross-chain exchanges are complex and likely to take longer to complete.

·       Fiat currency to crypto conversion

Similar to difficulties in cross-chain interoperability, DeFi faces significant challenges in converting fiat to cryptocurrency. The primary impediment here is that fiat-to-crypto exchange requires an intermediary, counterintuitive for DeFi users.

Contrarily, centralized financing makes fiat-to-crypto conversion or vice versa easy. This is primarily because CeFi services are regulated and have proper systems to tackle any kinks.

Conclusion

Both CeFi and DeFi are fundamental concepts that underly the cryptocurrency ecosystem. However, one cannot help but realize that DeFi is more popular than CeFi in certain aspects. In like manner, CeFi has the upper hand in specific areas.

For example, centralized finance is still a choice for many who want the care of customer relations agents and a high degree of reassurance regarding the safety of their funds. Additionally, CeFi services are necessary if you wish to enjoy the best of both worlds. On the other hand, DeFi is the hot new kid on the block, and many cannot wait to leverage its full potential.

Categories
crypto

What You Must Know About SocialFi and the Emerging Trends In the Near Future

With over half the world now spending an average of two hours on social media platforms every day, the influence of this still embryonic sector on society has become evident.

Social media has permanently transformed the way we live and communicate. It has irrevocably changed our society and even rewired our minds, for better or worse.

SocialFi, short for Social finance, refers to the merger of social networking with blockchain finance. The SocialFi environment enables users to make cash via content production, participation in DAO governance, NFT minting, talking with other users, viewing entertainment, and gaming.

Unlike the Web 2.0 social networks, you are acquainted with, SocialFi initiatives provide greater privacy and security for users’ data, properly share advertising profits and provide a more meaningful user experience.

Social Media Companies Entering the SocialFi Space by Embracing NFTs

As the SocialFi field obtains more incredible momentum, more and more social media companies are increasing the research of NFT integration into their platform. Below is a list of firms actively integrating or researching the NFT area.

Facebook/Meta

With a projected user base of over 2.89 billion as of 2021, it comes as no surprise that Facebook reigned communication in Web 2.0. Facebook, now known as Meta, is making advances in its move towards Web 3.0. Meta’s step in establishing the world’s largest social media metaverse.

Instagram

Although the photo-sharing platform hasn’t gotten aboard the NFT train yet, the company’s CEO said late last year that they are studying the NFT area in hopes of making NFTs more accessible to their user base.

Twitter

In anticipation of their ambitions to incorporate cryptocurrencies into their platform, Twitter has launched a new feature that enables its Twitter Blue account users to display their NFT as their profile images on the social media network.

Reddit

Not in a position to miss out on the chance to establish itself as a player in the SocialFi area, Reddit followed closely after Twitter in implementing the NFT profile image deployment.

Additionally, the social media behemoth intends to turn users’ Karma points into cryptocurrency tokens in the near future, in addition to aiming to launch an NFT marketplace.

YouTube

YouTube has been investigating non-financial transactions (NFTs) as a potential source of money for its artists as part of their attempts to grow their ecosystem.

Starting with customized NFTs sent to influencers on the YouTube platform, the company has revealed that artists could monetize the video content they make and sell it as NFTs.

A New Lighthouse of Hope

As the internet progresses toward decentralization with Web 3.0, SocialFi platforms will begin to acquire significance and will eventually become essential instruments for protecting freedom of expression and data sovereignty online.

One feature of blockchain architecture is that data that has been uploaded becomes immutable, which means that it cannot be modified or removed later.

The ability to share anything without the fear of being de-platformed or censored gives average users and content providers the ability to express themselves without restriction.

Greater transparency and the absence of intermediaries are the norms with SocialFi platforms, which aim to ensure algorithm modifications are monitored and that content producers earn a reasonable portion of income.

YouTubers have seen their earnings decline over the years due to tougher constraints. Still, systems powered by SocialFi, such as Subsocial and Deeper Network, allow content producers to monetize their works directly via their fan bases.

SocialFi is exhibiting the potential of alternative finance via the use of NFTs and tokens, while DeFi alternatives such as yield farming, lending, and other initiatives are also accessible.

Yet another essential feature of SocialFi platforms is that they let users regain control over their data, enabling them to select whether or not they want to sell their information and to whom.

These platforms not only allow users to get a percentage of advertising money, but they also allow them to choose the sorts of items and services for which they would want to see advertisements on their own.

Social Finance NFT Trends on Social Media

The Avatar Trend in NFT

It is common to see NFT Avatars on the majority of Twitter profiles. An avatar represents a user’s online persona that has been utilized for a long time in the social media sphere.

In SocialFi environments, an NFT Avatar may represent the owner’s identity in both the cryptographic world and the future metaverse, allowing them to communicate with one another.

User verification and usage of their NFT as a profile photo are now possible on Twitter Blue (and many other social media sites), among other things.

Social media (SocialFi) platforms are considered a potential cryptocurrency exchange.

Decentralized financial applications are being progressively integrated into social media platforms such as Facebook and Twitter in order to give users a next-generation personal finance environment.

The ability to transmit payments, trade tokens, participate in public offers, and more will be available to users on a single social networking platform.

Making NFTs more accessible to the masses on Social Finance

As more open-source Web 3.0 application developers emerge, such as those at the Mask Network, they are building decentralized application ecosystems that connect the existing Web 2.0 and Web 3.0 technologies.

Hopefully, this will result in additional Web 3.0 apps being added to conventional social media platforms such as Twitter and Facebook.

DApps such as the Mask extension, in addition to enhancing NFT-related content alternatives by making it more straightforward for users to identify outstanding producers, may save NFT artists and NFT fans a significant amount of time by automating several time-consuming procedures.

If, for example, content producers and NFT collectors use a single account to effortlessly travel between social media sites and search for information while shopping for NFTs, they will save time by not having to create two separate accounts, one for each network and one for the marketplace.

Why Are Social Media Giants Obsessed With NFTs

NFTs are not presently available for purchase, sale, or creation on any social networking site. On the other hand, the success of an NFT project depends on how successfully the project’s creator advertises their work on social media.

Moreover, while social media platforms passively define the future of NFTs, digital giants such as Instagram, Twitter, and Reddit view this as a chance to get more actively engaged in the area.

The majority of NFT owners feel that posting pictures of their NFTs on social media increases the value of their assets. As a result, social media firms that are crypto-compatible will have the opportunity to reach and keep new NFT-oriented clients.

Additionally, the social media businesses with the most influence in the NFT area may have an effect on the development of Web 3.0, which is based on the notion of storing user data on blockchains and is expected to be implemented in the near future.

Is SocialFi the Next Big Thing in the Internet World?

Many people feel that SocialFi is a fantastic development in the technology business and a fantastic approach to secure users’ interests in the virtual environment, especially given the trajectory of growth that the company is now on.

Despite the fact that it is still in its early phases, SocialFi has the potential to have a significant influence on the cryptocurrency, blockchain, NFT sector, and how people interact socially throughout the globe.

At this point, it is very feasible that SocialFi may become a vital component of the Metaverse ecosystem in the not-to-distant future.

Conclusion

The acronyms Facebook, Instagram, Twitter, and YouTube, have become synonymous with the word “social media,” which is likely to change soon. Blockchain technology is giving way to a new generation of social networks that have the potential to be much larger and better.

The old social models are given superpowers by these new networks based on them.

Soon, data fraud, misinformed algorithm tweaks, and unnecessarily restrictive content restriction may all become a thing of the past. This could be because community members own and operate these new social networks.

The option of social financing is also included as part of this arrangement (SocialFi). Social influence on these platforms is tokenized, and individuals who are essential personalities on these platforms may earn direct monetary rewards due to their efforts.

The growth of these new social networks and their integration with SocialFi is undoubtedly one of the most acceptable applications of blockchain technology, and it may be at the forefront of widespread adoption.

Categories
crypto

What Are dApps: Every Single Thing You Need to Know About Decentralized Apps

To stay afloat, new Crypto initiatives must surf the waves of a cruel sea, which means that the turnover of new projects is significant. Because of the popularity of this growing business, the market is flooded with several different projects, all fighting for your attention, each promising high profits and no buyer’s regret.

It’s tough to tell which companies will succeed and are bound to fail. This blog will delve into the new trend: blockchain applications, or so-called decentralized applications (dApps).

We’ve seen decentralized applications reach their highest peak ever in 2022. Games, NFTs, and DeFi (the industry’s three primary categories) all showed an upward trend in 2021 and appear to be in a solid position to continue gaining traction in 2022.

With the hype and popularity surrounding decentralized applications, it’s essential to understand what they are and whether they are here to stay.

What are DApps?

dApps are built on blockchain technology and use a decentralized network of computers rather than a centralized server. They’re decentralized since they’re governed by a network of P2P (peer-to-peer) computers rather than a single entity.

dApps are decentralized apps, just like cryptocurrency is decentralized money. The blockchain simultaneously maintains copies of its growing data stack on many collaborating computers, referred to as “nodes.” These computers belong to the users, not the dApp’s creators.

Dapps can provide social networks, gaming, entertainment, productivity tools, and more, just like traditional apps. Many are intended to assist customers in gaining access to decentralized financial services or DeFi. Because of this, the Ethereum network white paper divided dapps into three categories: “financial,” “semi-financial,” and “other.”

So far, Ethereum has been the most prominent platform for dapps. One of the network’s key goals at the outset was to make it easier to develop dapps.

Dapp users may feel more secure knowing that the application’s authors have no control over its use – at least not in the traditional sense. How?

It’s all because of smart contracts, which are computer programs installed on a blockchain and designed to carry out the terms of an agreement without the need for human intervention.

This makes them more secure and difficult to hack. The developers of dApps use blockchain’s distributed ledger technology (DLTT) to create applications that don’t rely on a central authority. Because of this, dapps offer users a higher degree of control and security than traditional apps.

The Main Features of Dapps

The key features of DApps include;

  • Open source– DApps are open source, meaning that anyone can view and modify the code. This allows for more transparency and trust between users and developers.
  • Decentralized– DApps are decentralized, meaning that a single entity does not control them. Instead, they are governed by a network of PTP (peer-to-peer) computers.
  • Autonomous– DApps are autonomous, meaning that they are self-sustaining and do not rely on a central authority.
  • Blockchains– What holds the app together if there isn’t a central entity? Instead of one central entity, Dapps use an underlying blockchain (like Ethereum) to coordinate.
  • Smart contracts– Ethereum smart contracts are used in decentralized applications to automate the execution of particular rules.
  • Algorithms– The decentralized application community agrees on a cryptographic algorithm to demonstrate proof of value.
  • Flexible– the platform enables developers to create an app for a specific function or use it as a base layer and build on top.

The Main Categories of DApps

Dapps are divided into three categories in the Ethereum white paper published in 2013 by the Ethereum founder Vitalik Buterin. They are as follows:

  • Financial apps
  • Semi-financial apps
  • Other apps

Financial Apps

DeFi applications, short for “decentralized finance,” are a popular term for financial applications.

The goal is to utilize blockchains (particularly Ethereum) to enhance more complex financial applications like lending, insurance, wills, and stablecoins (alternative coins that try to keep cryptocurrency prices stable.)

Some well-known examples of DeFi applications include:

  • MakerDAOMakerDAO is a decentralized loans platform that employs smart contracts to bind digital assets to the Ethereum blockchain, leading to the creation of the DAI stablecoin. Because it is included in every new Ethereum-based protocol, the DAI stablecoin is the most popular DEFI application. Unlike other stablecoins, DAI does not have administrator backdoors that prevent addresses from changing their tokens.
  •  Augur– A decentralized prediction market. It allows users to build and participate in prediction markets for nearly any event, from sporting events to election outcomes. Augur not only allows users to wager on the result of world events, but it also allows them to crowdsource statistics about the chance of such developments occurring.
  • UniswapUniswap is a decentralized exchange (DEX) that allows anyone to participate in ERC-20 token transactions without a centralized authority or intermediary. It provides permissionless access to financial services, adhering to the Ethereum blockchain’s decentralized values.
  • Bancor– A decentralized liquidity network for tokens. Bancor is a protocol that enables users to create and deploy automated liquidity pools and offer liquidity and swap tokens. Liquidity provision to Bancor is permissionless (no central entity can prevent or control the process) and simple for daily users (a few clicks to add/withdraw liquidity).

Semi-Financial Apps

The second type of app is similar to the first, but it combines money with “a heavy non-monetary aspect,” as described by Buterin in the Ethereum white paper.

Buterin used the example of Ethereum developers creating “bounties,” which are rewards that can only be unlocked if a task is completed. Bounties are given out to bandits who can apprehend a person or criminal in western countries. However, the bounties in dApps get rewarded in this case for remarkably less dangerous undertakings, such as completing a challenging computer problem.

The smart contract, in this case, can tell if the bounty hunter delivered a working solution and will only disburse payments if this requirement is met.

Another example is a crop insurance program that relies on weather data from the outside. Let’s say a farmer buys a derivative that pays out automatically if a drought destroys their crops.

These smart contracts rely on so-called “oracles,” which give real-time data about the universe, such as how much rain fell last season. Although, many developers are doubtful that oracles can get utilized in a decentralized fashion. Users must trust that the data feed provides accurate information and is not manipulating the data for their financial gain.

Other Apps

Because Ethereum is such a flexible platform, developers are coming up with new proposals that don’t fit into the traditional financial section.

This approach could be used, for instance, to develop a decentralized social network that is resistant to censorship. Most prominent social media platforms, such as Twitter, filter some postings, and some critics believe that the rules for what content is blocked or “downranked” are uneven.

So, once you publish a message to the blockchain through a decentralized software like Peepeth, no one can delete it, not even the firm that created the platform. It will exist eternally on Ethereum.

Some people look forward to expanding the concept of decentralization even further. Is it conceivable to do the same thing with organizations that Bitcoin did with banking authorities?

Decentralized Autonomous Organizations (DAOs) are decentralized applications that try to respond “yes” to that question. The idea is to create a corporation without a leader by setting rules from the start regarding how members can join, vote, and release company funds, among other things. The DAO would function under these rules indefinitely once it’s up and running.

While DAOs are theoretically possible, the first such experiment, fittingly dubbed “The DAO,” failed. Launched in 2016, “The DAO” was a $50 million disaster due to a technical vulnerability. Organizations such as Aragon, Colony, MakerDAO, and others, on the other hand, are picking up where The DAO left off.

The Benefits of dApps

There are a few key benefits that dApps offer over traditional applications.

First, they are more trustworthy because no central authority controls them. This is because dApps are based on blockchain technology, a tamper-proof distributed ledger.

Second, they are more democratic because a single entity does not control them. This is especially essential in cases where the traditional app is subject to censorship.

Third, they are more secure because they are cryptographically secured– means that the data is encrypted and cannot be tampered with.

The Challenges of dApps

Decentralized applications are still in their early stages of development, and developers have yet to face several critical issues with the underlying network holding them back. For one thing, as Ethereum’s user base sprouts, dapps can become extremely costly to maintain. Although traditional apps have scaling challenges, those issues are amplified in a decentralized environment, which cannot work without cooperation and coordination among various stakeholders by its very nature.

Conclusion

So, while dApps are still in their early stages, they have the potential to change the way we interact with the world. dApps are more trustworthy, democratic, and secure than traditional applications and have the potential to revolutionize a variety of industries. However, they are still facing some critical challenges that developers need to address before reaching their full potential.

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crypto

What is Blockchain Technology? A Beginners Guide to Blockchain Technology: How it Works and Its Application

The world of blockchain technology is daunting for many of us, full of terminology and ideas that boggle our minds, creating an immediate flight response that ultimately makes us believe it’s a scam. Like most people, when you first read or heard about blockchain, you immediately felt fire alarms going off in your head, accompanied by this voice blaring, “Do not risk a single dime on this sham!”

If only you had pushed past the fear and dove in, boy, you would be ecstatic now. But let’s not settle on what could have been and instead shed some light on how lucrative and real this “sham” has become.

As blockchain technology grows and becomes more user-friendly, it’s essential to learn about it and stay prepared for its future. If you are new to blockchain, this is the platform for understanding the basic concepts.

What is Blockchain Technology?

Blockchain technology is a decentralized system that allows for secure, transparent and tamper-proof transactions. Transactions get verified by a network of computers rather than a centralized authority and recorded in an immutable public ledger.

It keeps track of a growing list of ordered records known as blocks. Each block contains a timestamp and a link to the previous block, forming a chain of data called a blockchain.

The distributed timestamping server and peer-to-peer network build security in the blockchain system, resulting in a database that is managed autonomously and decentralized.

This makes blockchain ideal for applications such as digital recording assets, contracts and other essential documents.

Users can only modify the parts of the blockchain that they “own,” which requires them to have the private keys necessary to read or write to the file. Cryptography keeps everyone’s copy of the distributed blockchain in sync.

Blockchain technology was initially proposed in 2008 by an anonymous person or group under the pseudonym Satoshi Nakamoto. The developers implemented the technology was in 2009 as the core component of Bitcoin, the first digital currency.

Bitcoin was the first digital currency to use a blockchain system to solve the double-spending issue(unlike tangible coins or tokens, electronic files can be duplicated and spent twice) without using an authoritative body or central server.

Blockchain essentially offers the possibility of widespread disintermediation of trade and transaction processing.

How Does Blockchain Work?

A blockchain enables any user to send value anywhere in the world where the receiver can access the blockchain file. However, to edit only the blocks you “own,” you must have a private, cryptographically generated key.

However, three technologies must collaborate on the blockchain for a secure transaction.

  • A distributed network using a shared ledger
  • Private cryptographic keys
  • A system of records

Cryptographic Keys

Blockchain technology thrives on cryptography, encrypting addresses and other data using sophisticated computer operational processes.

Cryptography is a critical component in making crypto transactions secure so that these digital assets can get the name cryptocurrency—users login into the blockchain with the help of a system known as key cryptography.

This system begins with your public key, a long string of numbers and letters that serve as your account number when interacting with the blockchain that underpins a cryptocurrency. Before your data gets posted to the blockchain, it gets encrypted with your public key.

The private key is like a password giving you access to your account. The key decodes information intended for you and posted on the blockchain, granting you access to data and cryptocurrency funds.

So, when two people want to transact, they must both have the public and private keys for identity. These keys’ integration can be considered as a skillful form of consent, resulting in an instrumental digital signature. The digital signature provides solid ownership control.

While the platform solves the authentication, it must integrate it with a method of authorizing transactions and permissions (authorization)- a distributed network.

Distributed Network

A distributed network is one where the blockchain file gets stored on multiple computers instead of just one. This way, the blockchain cannot be controlled by a single user or entity.

To ensure that everyone has an accurate copy of the blockchain, users in a distributed network must agree to download and share the file. When a new block gets created, it is added to all blockchain copies across the network.

This way, everyone has access to the same information, and no one can tamper with the blockchain without detection. A shared ledger is a database maintained by a group of users rather than a single entity.

This way, all users have access to the same information, and no one can control the data or make changes without the group’s consensus. One of the most appealing aspects of the bitcoin blockchain is that it is so large and has amassed much computing power.

System of Records

A system of records is a database that stores information about transactions or other activities.

The records system allows users to verify that a transaction has taken place and that the data is accurate. A block is then broadcast to all nodes in the network, containing a digital signature, timestamp, and relevant information.

Mining is essential for open-public blockchains. Mining is based on a novel approach to an age-old economic problem: the tragedy of the commons. For instance, Bitcoin mining eliminates the possibility of the same bitcoin being used in multiple transactions simultaneously in a way that is hard to detect.

Each blockchain may have a different type, amount, and verification process. It is a matter of the blockchain protocol – or the rules that govern what is and is not a valid trade or a valid block creation. The verification process gets tailored to each blockchain. When enough nodes agree on verifying transactions, they can now create any necessary rules and incentives.

Blockchain Applications

Now that we understand blockchain technology, it’s essential to look at some practical applications for this emerging technology. The leading blockchain applications include;

Financial Services

Traditional systems are inefficient, error-prone, and excruciatingly slow. Intermediaries are frequently required to mediate the process and resolve disputes. Naturally, this comes at a cost in stress, time, and money. On the other hand, users find blockchain to be less expensive, more transparent, and more effective. Examples of financial services include;

  • Cross-border payments– blockchain provides solutions with transparency and low cost.
  • Banking– blockchain can provide customers with a faster, more transparent, and more secure banking experience.
  • International remittances– blockchain can help reduce the cost and time of international money transfers.
  • Insurance– blockchain has the potential to make the insurance industry more efficient, reduce costs, and increase transparency.
  • Clearing and settlement– the current clearing and settlement process is slow, expensive, and error-prone. Blockchain has the potential to streamline this process and make it more efficient.
  • Asset management– blockchain can help asset managers to reduce costs, increase transparency, and improve performance.

Smart Contracts

Smart contracts are digital contracts embedded with an if-this-then-that (IFTTT) code that allows them to self-execute. In real life, an intermediary ensures that all parties adhere to the terms of the agreement.

The blockchain eliminates the need for third parties. Still, it also ensures that all ledger participants are aware of the contract details and that contractual terms are automatically implemented once conditions are met.

You can use smart contracts in various situations, including financial derivatives, insurance premiums, property law, and crowdfunding agreements.

Smart Property

Smart technology can get embedded in tangible or intangible property such as houses or cars. On the one hand, property titles, patents or company shares. This registration gets saved on the ledger, and the contractual details of others permitted to own this property. You can use smart keys to grant access to the authorized party– once the contract is verified, the ledger stores and allows the exchange of these smart keys.

The decentralized ledger also serves as a system for recording and managing property rights and allowing smart contracts to be duplicated if records or the smart key are lost.

Making property smart reduces your chances of encountering fraud, mediation fees, and other issues.

Internet of Things (IoT)

In the coming years, most people will use blockchain technology to manage and secure the internet of things (IoT). IoT is a network of tangible items or devices embedded with electronics, sensors, software, and network connectivity that permits these items to collect and exchange data. IoT can revolutionize many industries, including transportation, health care, manufacturing, and energy.

Blockchain technology can help secure IoT devices by verifying their identities and providing a tamper-proof record of transactions. In addition, it can help to ensure that data is not manipulated or stolen. This could significantly impact the security of IoT devices and the data they collect.

Conclusion

Blockchain technology is increasingly befitting in life, work, and interacting with digital information. There is no single set of standards, as there is with any new, revolutionary technology, and the overall impact is still in discovery. But there’s no denying that it’s here to stay.

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crypto

Bitcoin Mining: How Does it Work?

Cryptocurrency mining was once popular, increasing the demand for graphics processing units (GPUs). In reality, Advanced Micro Devices, a GPU manufacturer, reported strong financial results as demand for its stock soared to greater heights, with shares trading at their highest levels in a decade.

Despite the rising need for GPUs, the crypto mining gold rush was short-lived as the adversity of mining cryptocurrencies such as Bitcoin increased at a similar rate.

However, mining Bitcoin can still be profitable. So, what exactly is bitcoin mining, and how does it work? This article will help you understand Bitcoin mining.

What is Bitcoin Mining?

Bitcoin mining is the process of proving and recording transactions on the blockchain. The mining entails running software to solve complex mathematical problems to prove transactions on a cryptographic blockchain.

When miners solve a math problem, they get rewarded with a share of the cryptocurrency linked with the mining operation. Bitcoin miners are accountable for securing the Bitcoin network and, as a result, get rewarded with transaction fees and new Bitcoins.

The confirmed transactions are the backbone of how a decentralized cryptocurrency functions as a valid currency. Miners are responsible for verifying these transactions.

The developer of Bitcoin, Satoshi Nakamoto, implemented A proof-of-work (PoW) consensus system has to ensure that only confirmed crypto miners can mine and validate transactions. PoW also protects the network against outside threats. As miners deploy increasingly powerful equipment to solve PoW, the network’s equations become more complex to solve. At the same time, competition among miners escalates, increasing the cryptocurrency’s scarcity.

Bitcoin mining is time-consuming, expensive, and only occasionally profitable. However, mining has a magnetic desire for many cryptocurrency investors because miners get rewarded with crypto tokens in exchange for their efforts. This could be because entrepreneurs regard mining as a gift from the gods.

The bitcoin reward that miners earn is an incentive that encourages people to help with mining’s primary goal: securing the Bitcoin network and legitimizing bitcoin transactions.

How Does Bitcoin Mining Work?

Bitcoin miners use unique software to solve complicated mathematical problems to confirm Bitcoin transactions on the blockchain. The miners employ their equipment to calculate “nonce,” or “number only used once.” The platform computes nonce using a hash function (such as SHA-256). Since the miner doesn’t know the exact nonce, they must perform many calculations in parallel to arrive at the correct number rapidly. This is where graphics processing units (GPUs) come into play.

GPU maximizes processing power by combining multiple GPUs into a single mining setup. A motherboard, as well as a cooling system, are necessary for GPU mining. Motherboards help mining rigs accommodate various graphics cards.

Another method of cryptocurrency mining is ASIC mining. ASIC miners, unlike GPU miners, are created exclusively to mine cryptos; hence they make more cryptocurrency units than GPU miners.

While some miners prefer to use GPUs to mine Bitcoin, application-specific integrated circuits (ASICs) and field-programmable gate arrays (FPGAs) can be purpose-built for computing specific hash algorithms and are significantly more efficient powerful than GPUs. Due to the huge power consumption and expenses involved, the number of GPUs required to match a single ASIC’s “hashing rate” would be outrageously costly.

Once a miner has solved the mathematical problem, they must broadcast the solution to the rest of the network. If other miners accept the solution, it gets added to the blockchain, and the miner gets rewarded with a set number of Bitcoins. The more computing power miners bring to the network, the higher their chances of solving a block and being rewarded with Bitcoins.

The developers designed the Bitcoin network to increase in difficulty over time, meaning that more computing power is needed to solve the mathematical problems and earn rewards. This ensures that Bitcoin remains a deflationary currency and that the total number of Bitcoins in circulation never exceeds 21 million.

Mining Pools – A Collaborative Way to Mine

Bitcoin mining pools allow Bitcoin miners to pool their resources and share their hashing power while splitting the reward evenly based on the number of shares they contributed to a block’s solution.

The Bitcoin mining pool members who produce a verified proof of work that their Bitcoin miner solved get “share.” Bitcoin mining pools arose as the difficulty of mining rose to the point where slower miners could take years to generate a block.

Joining a pool allows miners to join forces and share the hashing power, resulting in a faster investment return. If a mining pool is successful, the reward gets divided among the miners according to the number of resources they provide to the pool.

Most crypto mining softwares include a mining pool; however, crypto fans can now form their mining pools by collaborating online. Miners are free to switch pools whenever they need to because certain pools earn more significant rewards than others.

Miners consider official crypto mining pools more reliable since they receive frequent upgrades and technical support from their host firms. CryptoCompare is the most incredible place to explore mining pools since it allows miners to compare mining pools based on their dependability, profitability, and the coin they wish to mine.

Why Does Bitcoin Need Miners?

In the blockchain, Bitcoin offers a disruptive technology. The currency itself is decentralized, allowing transactions to take place anywhere in the world without the need for government approval or delays. So, Bitcoin needs miners to keep the network running decentralized.

Miners are also responsible for verifying and approving all Bitcoin transactions, which helps to ensure that the blockchain remains tamper-proof.

Additionally, miners help prevent the “double-spending problem” by confirming transactions. A Bitcoin double spend is defined as a bad actor submitting a copy of a transaction to make the copy appear valid while keeping the original or erasing the initial transaction. Anyone can easily duplicate digital information; this is possible—and dangerous—for Bitcoin or any other digital currency.

The Requirements for Mining Bitcoin

The price of Bitcoin is one of the most crucial variables for miners. If you, like most people, pay for your mining hardware and electricity, you’ll need to earn enough bitcoin from the mine to cover your recurring costs and recover your initial investment in the machine.

The hash power dedicated to Bitcoin mining determines the price of Bitcoin. Hash power is the swift speed at which a given miner can solve a cryptographic problem, measured in gigahashes per second (GH/s) or terahashes per second (TH/s).

The more hash power you have, the greater your chances of solving a block and being rewarded with Bitcoins. However, you need to set up some tools to trade. They include;

·        Mining Hardware

One of the essential requirements for a profitable Bitcoin mining setup is Bitcoin mining hardware. The mining hardware you choose will determine your overall profitability. The hardware cost varies with the manufacturer and determines how little energy the machine consumes compared to the amount of computational power it generates.

The more processing power you have, the more bitcoin you’ll be able to mine. Your monthly costs will be lower if you use less energy. So, when buying mining hardware, ensure to take note of the power consumption listed in watts.

Most modern ASIC Bitcoin mining rigs require at least a 220-volt 20-amp power supply. If your hosting costs are low enough, prioritizing ‘price per TH’ above ‘watts per TH’ makes sense. Your lower operating expenses (OpEx) will compensate for the loss in machine efficiency – and vice versa if your hosting costs are high.

·        Mining Software

Bitcoin mining software solves complicated mathematical puzzles with the help of your hardware and, in turn, rewards you with Bitcoin. Bitcoin mining software regulates the operation of the hardware equipment and connects it to Bitcoin and various mining pools. It also manages and optimizes the miner’s performance (s).

·        Mining Pool

A mining pool is a collaborative effort of miners who combine their hash power to increase the chance of solving a block and being rewarded with Bitcoins. Joining a mining pool allows you to receive smaller but more frequent payouts rather than waiting for a large payout that may never come. The rewards get distributed according to the amount of work each miner contributed to the pool.

·         Electricity

As mentioned earlier, the amount of Bitcoin you can mine each month is directly related to the amount of electricity you consume. Relevant hardware models, network size, and current miner profitability influence how much energy it takes to mine a bitcoin.

 One bitcoin requires an average of 143,000 kWh of energy to generate. The Bitcoin network consumes an average of 128,248 MWh (128 GWh) of electricity per day to produce 900 bitcoins. However, if the magnitude of the hash rate and other elements change, this estimate also changes.

·        Bitcoin Wallet

The ultimate piece of the puzzle is a Bitcoin wallet. A Bitcoin wallet is a digital asset that allows you to send and receive bitcoin. It is not only a place to store your bitcoin but also enables you to access your public and private keys. This is how you will receive the payouts from your mining pool.

Conclusion

Bitcoin mining is still a profitable venture, provided with the right hardware and software. It is important to remember that the amount of profit you make depends on various factors, including the cost of electricity and the current market value of Bitcoin. So, do your research before investing in mining hardware and software

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crypto

DeFi Blue Chips: What They Are and What You Should Know

Cryptocurrencies are no longer a new and novel idea. They’ve been around for nearly a decade, and in that time, they’ve evolved into something far more significant than their original conception. Being the first cryptocurrency, Bitcoin paved the way for the rest, while Ethereum was the first platform to allow decentralized applications, or “dApps.”

And now we’re in the midst of the third wave of crypto innovation: DeFi. DeFi means decentralized finance. In other words, it stands for self-custody finance. DeFi is an umbrella term for blockchain applications geared toward disrupting financial mediators.

The third wave marks the establishment of independent, DeFi projects that are crucial to the future of our economies. An excellent example of the DeFi project is blue chip DeFi tokens.

What are DeFi Blue Chips?

The phrase “Blue Chip” comes from the poker game; the blue chips are the most valuable. According to traditional finance circles, “Blue Chip Companies” are well-established, financially safe organizations with a lengthy track record of consistent and sustainable growth.

On the other hand, “DeFi Blue Chips” are tokens/coins with a long history and a significant market cap. Institutional investors and retail payment systems are the most common users of the blue chip tokens. They also have a high liquidity pool and are traded worldwide on many different exchange systems.

The DeFi blue chips are a hybrid of the two concepts above, both of which are thriving projects in the DeFi space.

Why are DeFi Blue Chips Important?

The blue chips play an essential role in the overall health of the cryptocurrency market. They provide a high degree of stability and liquidity, acting as a safe haven during times of market volatility.

Most blue chip projects tend to have a large market cap, which means they’re less risky and more likely to succeed in the long run. It means that investors can feel confident in investing in these projects, knowing they’ll likely see a return on their investment. Additionally, their widespread use helps to legitimize the cryptocurrency industry as a whole.

Blue chips will provide investors with more opportunities to make money and grow their portfolios in the next decade. According to  DappRadar, some investors have already locked up more than $65 billion in DeFi protocols. So if you’re looking for a safe and reliable investment, look no further than the blue chip tokens!

The Big Five DeFi Blue Chips

In the rapidly evolving decentralized finance (DeFi) sector, Decrypt has identified five projects that have achieved blue-chip status with the community—for now. The main criteria of these projects include reputation, lack of hacks, price performance, and continued updates. Here are the big five DeFi blue chips.

  • Uniswap

Uniswap is an Automated Market Maker that allows many users to trade tokens without a mediator. It’s non-restrictive and immediate. As a result, anyone can trade tokens without asking! The protocol’s native governance token is UNI. Holders of tokens can vote on governance proposals and upgrades.

Founded in 2018, Uniswap is crypto’s leading decentralized exchange. Back in 2018, the protocol required all trades executed using ETH as an intermediate base pair, incurring transaction fees and slippage for users.

In May 2020, the launch of Uniswap’s v2 iteration helped flare up the explosion of DeFi by enabling permissionless token swaps without being mediated by a centralized exchange. After experiencing liquidity vampire attacks from competitors like Sushiswap, Uniswap airdropped its token to consumers.

In May 2021, DEX pioneered concentrated liquidity with the launch of its v3 iteration. Uniswap provides enough liquidity to the platform, enabling it to remain the top decentralized exchange position.

  • Aave

The Aave token is a lending platform that allows users to deposit their crypto assets and earn interest or take out loans using their deposited assets as collateral. The protocol also provides flash loans, which are instant loans that do not require collateral. Aave was one of the first protocols to offer this type of loan.

In January 2021, Aave launched its v protocol, which included features like liquidity providers earning fees in a new token called LEND. The update also introduced staking mechanisms and flash loans with multiple collateral types.

With $12 billion in cross-chain TVL, Aave is among the top five DeFi protocols. Its recent Polygon and Avalanche deployments sped up adoption on the networks, with Polygon now ranking as the most popular protocol on both. Aave Arc, its institutional investment platform, has attracted interest from family offices and private banks.

Despite reaching a high of around $19.5 billion in TVL in October, Aave is down 80.4 percent against USD, and it’s down 84.8 percent against ETH since its apex in February 2021.

  • Maker

Maker is a decentralized autonomous organization (DAO) that runs on the Ethereum blockchain. The DAO provides a platform for users to create and trade custom tokens called ” MKR.”

In May 2020, Maker released its Dai stablecoin, pegged to the US dollar. Dai has become one of the most popular stablecoins in the DeFi space, with a market cap of over $12 billion.

Dai is used as collateral for loans on the Maker platform and can also buy goods and services. In September 2020, Maker launched Multi-Collateral Dai (MCD), allowing users to collateralize their Dai with multiple assets.

MKR is the native token of the Maker Protocol and is used to pay stability fees, participate in governance, and unlock Dai Credit Lines (DCLs). MKR holders can also earn rewards by participating in governance.

  • Compound

Decentralized money market Compound is a protocol that allows users to borrow and lend crypto assets. The Compound was a significant catalyst for DeFi Summer after launching liquidity mining incentives for borrowers and lenders with its governance token COMP in June 2020. The protocol uses smart contracts to match those borrowing with those lending automatically.

However, Compound’s yield farming incentives rapidly prompted a flurry of activity on the site since it rewarded its users just for using the protocol rather than asking them to take on the risks of temporary loss associated with providing liquidity to a decentralized exchange.

In September 2020, Compound launched its v0.11 release, which added support for Ethereum’s ERC-20 tokens. In November 2020, the Compound company disclosed that it raised $25 million in a Series C funding round.

Compound launched its v0.12 in January 2021, which supported synthetic assets. In March 2021, the company announced that it had raised $140 million in a Series D funding round.

The Compound has seen a drop of 86.67% against USD and  96% depreciation against ETH from its all-time high in January 2021.

  • Synthetix

Synthetix is one of the decentralized exchanges that allows token holders to create and trade synthetic assets. Synthetic assets are digital assets that track the price of real-world assets. The platform uses a synthetic asset called sUSD, pegged to the US dollar.

In December 2020, Synthetix launched its v0.21 release, supporting Ethereum’s ERC-20 tokens. In January 2021, the company issued a report that it had raised $102 million in a Series A funding round.

Synthetix continues to power numerous novel DeFi protocols, including Lyra and Kwenta. However, Synthetix has had a tough 13 months, losing 70% of its TVL since peaking at $3 billion last February.

Since its all-time high in January 2021, synthetic assets fare worse, crashing 86.8% against USD. It’s also down 92% against Ether since September 2020, when it last peaked.

The Recovery of DeFi Blue Chips

According to Occultist, a well-known crypto Twitter, the biggest problem in DeFi right now is the tokenomic structure of many ‘DeFi Blue Chips.’ These protocols have a severe case of token dilution when the value of a DeFi token is spread too thin across too many holders.

 “For many of these protocols to function well, they require users to provide liquidity. The problem here is that users need to be incentivized for providing their liquidity which is costly for the protocol,” said Occultist. The crypto twitter refers to a problem that DeFi 2.0 aims to solve by providing liquidity permanently.

However, Occultist believes that DeFi blue chips will eventually recover due to the fundamental value they provide. But for that to happen, community leaders need to step forward and propose a new utility for the native token.

But, all is not lost. The DeFi market recovery has extended beyond decentralized exchanges. Aave and Compound are slowly getting back on their feet. While Aave has outperformed the duo by growing 16.5 percent, Compound has also increased by 11.3 percent.

After months of lackluster price activity, DeFi tokens have recently risen in value. After the May market crisis, many DeFi blue chips lost more than half of their value and struggled to recover. It will take time for these blue chip DeFi tokens to rise in the face of uncertain market conditions.

FAQS

Which is the best DeFi Blue Chip to buy in 2022?

Aave is the DeFi blue chip with the best chance to succeed in 2022. Aave is leading the other blue chips after rising 16.50% in the past month. The DeFi lending platform has a clear focus on delivering value to its users, with an expansive product lineup and a commitment to transparency.

Is it Wise to Buy DeFi Blue Chips?

Defi Blue Chips are valuable because they set the stage for a world without traditional finance borrowers. It also empowers investors to access new asset types while improving interest rates.

What is the risk in Defi blue chips?

Fatal code errors, rug pulls, exploits and scams are among the most significant risks of using DeFi platforms. As always, do thorough research and consult a financial advisor before investing in any cryptocurrency or digital asset.

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crypto

The Latest 5 Blue Chip Cryptos You Should Know About

In moments of true innovation, we reach for an analogy to the world we know. In DeFi, we go for analogies to traditional finance. But all that changed as investors found the next big thing in the plethora of digital currencies.

A revolutionary generation of financial institutions is here. It generates an autonomous financial infrastructure free of the established layers of costs, bothers, waste, speed, transaction volume, and skulduggery that plague financial services. These revolutionary financial instituitions are blue chip cryptos. So what exactly are blue chip cryptos? And why should you heed to them? Keep reading to find out!

What is the Meaning of Blue Chip Cryptos?

First, let’s define “blue chip.” You’ve probably come across the term blue chip in the corporate world. Blue Chip refers to financially stable companies with inherent profitability mechanisms even in difficult economic times.

A corporation that’s widely acknowledged as a high-performer over a long period can also be called ‘blue-chip.’ Reliability and dominance in the respective industry also account for the Blue Chip status. It’s comparable to when poker chips came in three colors: blue, red, and white, with blue being the most valuable.

In crypto, blue chips allude to blockchain currencies with at least $2 billion market capitalization. ‘Blue chip crypto can be a more significant challenge because of the innovative and unique nature of the industry itself.

There’s a need to contrast the ordinary and DeFi coins when it comes to crypto blue chips. Though both utilize the blockchain concept, the normal ones refer to the pioneer coins. However, DeFi coins with more than just stores of value are on the rise and could perhaps overshadow the former soon.

Why Should you Pay Attention to Blue Chip Cryptos?

Simply put, blue chip cryptos represent stability and security in an otherwise volatile market. Their sheer size and longevity reassure investors that they won’t lose out on potential gains as the industry continues to grow. Moreover, investors believe that these currencies have already weathered the storm and are well-positioned to take advantage of the next wave of growth.

The 5 Latest Blue Chip Cryptos

Let’s start by examining the current market caps in USD, shall we?

What you in the images are the latest blue chip cryptos. Today’s cryptocurrency prices indicate the total crypto market volume over the last 24 hours has an increase of 7.27%. Bitcoin’s dominance is 43.03%, a rise of 0.63% over the day. Now, let’s unpack these coins.

  1. Bitcoin (BTC)

BTC

Market Cap:$788,190,366,273

Price in USD: $41,531.21

24h volume (USD): $33,217,649,388

Circulating Supply: 18,978,268 BTC coins

The grandfather of all cryptocurrencies needs no introduction. Bitcoin was the first-ever digital asset and still remains one of the most valuable. Satoshi Nakamoto originally described decentralized cryptocurrency in the 2008 whitepaper before its launch in 2009.

Bitcoin is a peer-to-peer internet currency, which means that all transactions occur between equal, independent network participants without the need for an intermediary to allow or facilitate them.

Bitcoin introduced the world to a genuinely decentralized financial system based on a novel Proof-of-Work (PoW) mining and consensus technology. Through mathematical puzzles, the limited supply of 21 million BTC protects the value of bitcoin users’ investments from random inflation.

Bitcoin’s market cap is huge in any financial perspective, accounting for almost a tenth of the total gold market. It has millions of users since it grows at the same rate as the internet.

Because of Bitcoin’s popularity and market dominance, it’s clear that more decentralized projects will create sidechains on the Bitcoin platform. It will increase the total number of transactions per second and give Bitcoin a real edge over other payment systems in the crypto space.

Bitcoin is almost identical to cryptocurrency, which means you can buy it on nearly every cryptocurrency exchange – both for fiat money and other cryptocurrencies. BTC trading is available in Binance, Coinbase Pro, Kraken, Huobi Global, Bitfinex.

  • Ethereum (ETH)

ETH

Market Cap: $326,470,872,321

Price in USD: $2,723.20

24h volume: $15,951,450,588

Circulating Supply: 119,885,008 ETH coins

Ethereum is an open-source, decentralized blockchain system with its coin, Ether. ETH performs as a platform for various cryptocurrencies and decentralized smart contracts execution.

The Ethereum network has eight co-founders, but Vitalik Buterin is the most famous since he authored the original white paper that first described Ethereum in 2013. The Ethereum Foundation officially launched the blockchain on July 30, 2015. There have been several updates on the blue chip crypto network like Constantinople” on February 28, 2019, “Berlin” on April 14, 2021, and the “London” hard fork on August 5, 2021.

Ethereum is the second-largest cryptocurrency by market cap, and it’s responsible for the explosive rise of the NFT market. It’s also one of the most versatile cryptocurrencies, with a wide range of applications beyond simple payments.

Blockchain technology powers Ethereum and allows developers to build decentralized applications (dApps). On the other hand, the Ethereum virtual machine (EVM) monitors smart contracts by removing untrusted code. A decentralized robot governs the ecosystem through smart contracts instead of a central entity.

The Ethereum blockchain is the most active globally, with over a million unique users. The blue chip crypto is leading the DeFi space by a mile, but you should watch closely as we advance for project elements. ETH has a wide range of use cases, from DeFi to NFTs and everything in between.

Ethereum is available on most major exchanges, including Binance, Coinbase Pro, Kraken, Bitfinex, and Gemini.

  • Tether(USDT)

Tether

Market cap: $80,047,314,692

Price in USD: $1.00

24h volume (USD): $69,371,317,534

Circulating Supply: 80,028,316,059 USDT coins

Tether is a stablecoin pegged against the US dollar at a one-to-one ratio. That means that the US dollar held in reserve backs every Tether coin in circulation. This makes it a safe haven during times of volatility and ensures that it protects your investment from price fluctuations.

Tether was one of the first stablecoins on the market, and it remains the most popular to date. In recent times, the crypto market uses stablecoins as an inflation hedge, compared to keeping fiat currency in a savings account averaging 0.06%. Additionally, users can lend their stablecoins and earn yields ranging from 3% to as high as 20%.

Tether was founded in 2014 by Brock Pierce, Reeve Collins, and Craig Sellars. The company behind USDT is headquartered in Hong Kong but registered in the British Virgin Islands.

USDT is available on most major exchanges, including Binance, Bitfinex, Kraken, and Huobi.,

  • BNB

Binance Coin

Market cap: $64,991,731,494

Price in USD: $393.61

24h volume (USD): $2,114,128,437

Circulating Supply: 165,116,761 BNB coins

Binance coin is the original token of the BNB exchange. It was created in August 2017 and is used to pay trading fees. Binance is bringing cryptocurrency investing and trading to the top position of our new financial reality.

Binance’s quest for expansion is one of its remarkable competitive advantages. Even though Binance began as a crypto exchange in 2017, it has expanded its services to include many industries. According to BNB’s website, the company’s strategy is to become the blockchain ecosystem’s infrastructure services provider.

As the dedicated utility token of the Binance exchange, the most straightforward way to acquire BNB coins would be to purchase them through Binance. The original exchange offers the broadest range of trading pairs for BNB and the best BNB exchange rates.

The popularity of the BNB to PHP exchange rate has soared since the advent of Play2Earn games.

  • USD Coin (USDC)

USD Coin

Market cap: $52,433,985,406

Price in USD: $1.00

24h volume (USD): $4,618,034,304

Circulating Supply: 52,433,865,595 USDC coins

USDC is a regulated stablecoin created by the CENTRE Consortium. Circle and Coinbase, two of the most well-known names in the cryptocurrency space make up the consortium.

One of the primary goals of CENTRE is to create a coinbase global standard. It will allow for greater liquidity and easier cross-border transactions. USDC is currently available on over 100 exchanges worldwide.

USDC was created in September 2018 and is an ERC20 token built on the Ethereum blockchain. The developers designed the coin to be a digital dollar backed by the US dollars held in reserve.

Stablecoin developers claim that, besides offering a safe haven for crypto traders during times of volatility, it can also allow businesses to accept payments in digital assets, shaking up a variety of sectors such as decentralized finance and gaming.

Coinbase is one of the most enthusiastic exchanges that support USDC. The USD Coin is also available for purchase and trading on exchanges such as Poloniex, Binance, OKEx, and Bitfinex and decentralized exchanges like Uniswap.

Which is the Best Blue Chip Crypto to Buy in 2022?

All these cryptocurrencies have unique technology, which sets them apart. Being the most established in the cryptocurrency space, Bitcoin is a safe haven for the store of wealth compared to other cryptos.

However, one thing that’s common in all the blue chip coins is that they have all demonstrated a significant return on investment, whether during the formal ICO times, at the beginning of the project’s life, last year, or the past month.

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crypto

A Guide to The Top 5 Bitcoin Debit Cards in 2022

Bitcoin has taken investors on a wild ride over the last few years. At the start of 2020, the value of a single coin was less than $10,000. But it surpassed $60,000 by the end of 2021, with dramatic lows in between.

Bitcoin debit cards (also known as crypto debit cards) function similarly to prepaid debit cards. They can be filled with cryptocurrency and used to make online and in-store payments from merchants that do not accept cryptocurrencies.

This is where a Bitcoin credit or debit card comes in handy. These cards can make Bitcoin management more manageable, especially when it comes to spending it on everyday purchases. The number of entrepreneurs who accept Bitcoin is constantly growing. However, you still can’t purchase everything with Bitcoin.

These cards are becoming increasingly popular as they bridge the gap between the traditional finance world and the cryptocurrency ecosystem. This article will discuss the top 10 Bitcoin debit cards available in 2022. We will compare features and ease of use to help you figure out which card is right for you!

The Best Bitcoin Debit Cards of 2022

When choosing the best Bitcoin debit card for you, consider these factors:

  • Costs: Some cards have annual or monthly fees, while others do not. Ensure you compare the costs of different cards before making a decision.
  • Fees: Most cards will charge a fee for each transaction. These fees can vary depending on the card, so comparing them before purchasing is essential.
  • Ease of use: Some cards are easier to use than others. Consider if you want a card linked to your existing bank account or a standalone one.
  • Rewards: Some cards offer rewards for using them, such as cashback or points. If this is important to you, make sure to compare the rewards programs of different cards.

The following are the top ten Bitcoin debit cards of 2022:

1.  BitPay Card

Pros and Cons

ProsCons
Available in U.S 50 statesUsed worldwideNo transaction fees within the U.SSupports hardware wallets like Kraken, Trezor and Metamask  You must have a Social Security number and a driver’s license to apply.It is not possible to ship a card to a P.O. Box.High transaction fees in other countries

If you want the convenience of loading your crypto debit card from multiple funding sources, the BitPay card may be a good option.

BitPay, a Bitcoin payment processor, launched a debit card available only in the United States in 2016. With support for significant currencies, no exchange fees in the United States, and a large maximum account balance, our pick as the best for Americans.

The BitPay card accepts seven significant cryptocurrencies, including Bitcoin and Ethereum, and eight different fiat currencies. You can use the card globally as long as Mastercard Prepaid cards are accepted.

You can also withdraw cash from ATMs that accept Mastercard. BitPay now accepts Apple Pay and has introduced a new virtual card option for those who do not want or require a physical card.

You can use the BitPay app, multiple BTC, BCH, and ETH wallets, or hardware wallets like MetaMask and Trezor to fund the card.

BitPay does not charge trading fees for purchases made within the United States but charges cardholders visiting other countries 3% to cover the cost of currency conversion. A $2.50 fee is also charged to withdraw cash from an ATM. Finally, Bitpay doesn’t charge a conversion fee when you load the card, but network and miner fees may apply.

The BitPay card has relatively high transaction and balance limits than other cryptocurrency cards, enabling cardholders to load up to $10,000 per day. Users can also make three $2,000 ATM transactions per day and keep a max balance of $25,000.

BitPay advertises the following security features to protect its customers:

  • Needs a signature on the back of the card, and a PIN Card
  • Equipped with an EMV chip designed to prevent fraud.
  • Mastercard offers zero-liability protection.

2.  Coinbase Card

Pros and Cons

ProsCons
The ability to use your cryptocurrency account as quickly as you do your bank accountExtensive security features keep your crypto safe while you spend it.Several reward options are available, including the ability to earn BTC back on your purchases.There is no card issuance fee.There is no annual fee.Fully functional and user-friendly mobile app for managing your card and account.All transactions are subject to a 2.49 percent cryptocurrency liquidation fee (except those using USDC)Coinbase account needed

Coinbase has offered crypto debit cards to customers in the United Kingdom and the European Union for years. It brought a convenient option to consumers in the United States in the past few months. The Coinbase debit card in the United States has lower fees, higher rewards, and more supported cryptocurrencies.

The Coinbase Card accepts nine cryptocurrencies, including Bitcoin, Litecoin, and Ethereum, and cardholders must have a Coinbase account. The card converts your preferred cryptocurrency in your Coinbase wallet on-demand, eliminating the need to maintain a fiat currency balance in your account.

The Coinbase Card includes a mobile wallet app, two-factor identification, instant card freeze, expenditure tracking, and other security and convenience features. Cardholders can employ their card to make online and in-store purchases and withdraw cash from any Visa-accepted ATM worldwide.

Residents of the United Kingdom and Europe must pay a £4.95 or €4.95 authorization fee for a Coinbase Card, whereas residents of the United States can get the card for free. Coinbase also levies fees, including a 2.49 percent cryptocurrency liquidation fee.

When it comes to user-friendly and security features, the Coinbase debit card outperforms its competitors. It’s among the few that lets you switch between crypto wallets and offers some of the most robust security features, all from its mobile app.

3.  Wirex Card

Pros and Cons

ProsCons
Possess a UK FCA e-money license.Quick confirmation (less than 5 mins).Purchase and sell Bitcoin (BTC) and over 50 other cryptocurrencies without paying exorbitant fees (2.5 percent ).Browser-based and mobile applications (iOS & Android).There is no monthly account maintenance fee.Customer service is available 24/7Some countries have a limited number of cryptocurrencies available (just 9 in the U.K.).To get the highest cashback rates, you’ll need to pay £29.99 per month.

Wirex has more than 4.5 million users in 130 countries. They reported processing more than $5 billion in transactions in July 2020.

The Wirex card accepts 150+ authentic and fiat currencies and a dozen fiat currencies in Europe, a few Pacific and Asian countries, and the United States. Cardholders pay no withdrawal, monthly, or issuance fees but only a 1% fee to finance accounts with cryptocurrencies.

The Wirex card offers cash back rewards of up to 2% in cryptocurrency. Standard delivery is free, and there are no fees for card maintenance or reissue. Wirex Visa provides free ATM withdrawals of up to $300 per month.

4.  Binance Card

Pros and Cons

Pros Cons
There are no issuance or monthly fees.On-demand cryptocurrency conversion  Cashback rewards require a balance in Binance’s cryptocurrency.Only available in European countries

Binance partnered with Swipe in 2020 to offer a Visa debit card that offers 8% cashback, making it our pick for the best cashback card.

The Binance Visa Card has no issuance or monthly fees, and it only charges a transaction fee of up to 0.9 percent for transactions and ATM withdrawals. You should note that ATM operators may charge an additional fee.

The Binance Visa Card, like Coinbase, stores cryptocurrency in your wallet and only converts what you require at the time of purchase. You can use the card to buy things in-store, and online anywhere Visa is accepted.

The card accepts Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), and Binance USD, and Swipe’s SXP token is its stablecoin (BUSD).

Although the cashback rate on the Binance Visa Card is the highest we’ve seen, there is a catch. Cardholders must have a minimum balance of 600 Binance Coins (BNB) to receive their cashback reward in BNB.

5.  Crypto.com Card

Pros and Cons

Pros Cons
Quick verification (less than 5 minutes).Customer service is available 24/7It is completely free to open a Crypto.com account.There is no monthly maintenance fee for the Crypto.com Visa Card.   When you use your Crypto.com Visa Card, you can earn up to 8% cashback.To obtain the highest rebates, you must stake a large CRO.Crypto Earn offers lower interest rates if you do not lock in your cryptocurrency deposit for three months.

With the Crypto.com Visa Card, you can spend your cryptocurrency in-store and online. It is accepted anywhere Visa is accepted.

There is a variety of Crypto.com Visa Cards to choose from. To receive the highest cashback and other benefits, you must stake CRO in the Crypto.com app. The more CROs you secure, the higher the tier of card you’ll be able to order.

Most people cannot afford the Crypto.com Visa Cards that offer the highest cashback. To get the Obsidian Black version, you’ll need to lock up $400,000 in Crypto.com Coin (CRO) in the Crypto.com app.

The versions that require a lower CRO stake, on the other hand, still provide you with competitive cashback on all of your spending. If you’re willing to stake the equivalent of $400, you’ll be able to get the Ruby Steel version, which offers 2% cash back and a 100% Spotify rebate.

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crypto

Fascinating Look at Joseph O’Connor aka PaulWalkJoe Cyber Attack

In July 2020, big corporations and individuals’ Twitter accounts faced a significant hack in one of the most extensive and baffling cyberattacks in the name of promoting a bitcoin scam that earned the creators about $120,000. The attack compromised the accounts of Barack Obama, Elon Musk, and other high-profile Twitter users.

Multiple law enforcement investigations, including one by the Federal Bureau of Investigation, have been actively investigating the situation over a much more severe concern: the exploited vulnerability in Twitter’s systems.

Now, in significant developments in the case, an arrest warrant was issued for a 22-year-old British man in Spain on May 2021. The Department of Justice (DOJ) announced that Joseph O’Connor, who also goes by the handle “PlugWalkJoe,” was arrested for the hack. He’s facing accusations of being part of a group that took over high-profile Twitter accounts and used them to perpetuate a cryptocurrency scam.

O’Connor is being charged with more than three counts of conspiracy to intentionally access computers without authorization, one count of conspiracy to commit wire fraud, one count of conspiracy to commit money laundering, and two counts of aggravated identity theft. He faces charges of one count of making threatening communications; and two counts of cyberstalking a juvenile victim.

According to Krebs on Security, O’Connor was a well-known sim-swapper, a way of hijacking valuable social media accounts by duplicating phone numbers so hackers could intercept two-factor authorization requests by manipulating cellular network personnel.

The DOJ’s press release also alleges that O’Connor was involved in other computer intrusions, including takeovers of TikTok and Snapchat user accounts.

How PlugWalkJoe Managed to Hack Twitter Pocketing $118,000

Here’s a fascinating look at Joseph O’Conor, “PaulWalkJoe”s Twitter hack.

O’Connor freely identified himself as “PlugWalkJoe” in an interview with several of the hackers involved in the Twitter breach for The New York Times and stated that the hackers received Twitter credentials to take over the accounts using an internal business Slack.

The scam began when Elon Musk’s account sent a cryptic tweet at 4:17 p.m. E.T. on July 15, 2020, that said, “I’m feeling generous because of Covid-19.” I will double any BTC payment submitted to my BTC address for the next hour. Best wishes, and be safe out there! The tweet also included a bitcoin address, most likely linked to the hacker’s cryptocurrency wallet.?

Later, the tweet was deleted and replaced with another that clearly stated the phony promotion. “Feeling grateful doubling all funds sent to my BTC address! You send 1,000USD, I send back 2,000USD! Only doing this for 30 minutes,” it read before the scammer deleted it.

Gates’s tweet was similar to Musk’s, with the same BTC address attached. It was likewise erased immediately after being posted, only to be replaced with an identical message a few minutes later.

https://i.dailymail.co.uk/1s/2021/07/21/17/45725309-9810915-image-a-7_1626883364118.jpg

Because of the nature of the blockchain-based cryptocurrency records of public transactions, some people fell for the fraudulent tweets and deposited money to the related BTC address.

While it may seem absurd that anyone could fall into the trap of sending bitcoin in response to these fraudulent tweets, O’Connor received almost $120,000. An evaluation of the BTC wallet promoted by many of the hacked Twitter profiles reveals that the account processed 383 transactions and received nearly 12.8 bitcoin — equivalent to about $118,000 in less than 24 hours.

Twitter officials released a statement saying, “We are confident that we have identified all of the accounts associated with this incident and taken action to secure them. It was a coordinated social engineering attack by people who successfully targeted some of our employees with access to internal systems and tools.”

A group of hackers who were in the business of purchasing and selling desirable social network screen identities carried out the attacks,” the criminal complaint filed in the Northern District of California stated.

A strong indication shows that the hackers have a history of stealing social media accounts through “SIM swapping .” It is a growing form of a crime involving bribing, hacking, or coercing employees at mobile phone and social media companies to access a target’s account.

How PlugWalkJoe Stole $784K in crypto via SIM swaps

In November 2021, The U.S. Department of Justice indicted ‘PlugWalkJoe,’ stealing $784,000 in cryptocurrencies through SIM swap assaults.

SIM swap attacks are when criminals gain access to someone’s phone number and, with that, access their social media and other online accounts. These attacks are typically made by performing social engineering and pretending to be the target, hacking into mobile carriers’ systems, or bribing phone service providers.

Once the attacker gets the target’s phone number on their SIM card, they can read the target’s SMS messages or voice mails without the target’s knowledge. The victims face a substantial risk because the attacker can utilize the target’s phone number to complete sensitive tasks like changing passwords and authorizing financial transactions.

The DOJ says that Joseph O’Connor, a/k/a “PlugwalkJoe,” and co-conspirators used SIM swaps to acquire access to accounts for a Manhattan-based cryptocurrency corporation as well as the personal accounts of celebrities and other public figures.

The claimed hackers used this access to steal $784,000 in Bitcoin Cash, Litecoin, Ethereum, and Bitcoin from the company’s client wallets. The indictment also claims that the group tried to steal more than $100 million from a cryptocurrency exchange.

“Between March and May 2019, “PlugwalkJoe,” and his co-conspirators perpetrated a scheme to use SIM swaps to conduct cyber intrusions to steal approximately $784,000 from a Manhattan-based cryptocurrency company. The at all times, provided wallet infrastructure and related software to cryptocurrency exchanges around the world,” states the unsealed indictment.

The seized cryptocurrency includes 770.784869 Bitcoin cash, approximately 407.396074 Ethereum, approximately 6,363.490509 Litecoin, and about 7.456728 Bitcoin.

The DOJ says that the group’s “primary targets” were members of the entertainment industry, including but not limited to actors, actresses, managers, and producers.

“JOSEPH JAMES O’CONNOR and his co-conspirators also attempted to SIM swap at least two other victims to gain access to their cryptocurrency accounts. These two individuals were unrelated to the Manhattan-based cryptocurrency company but had been targeted because they were public figures with large social media followings,” continued the indictment.

In this latest indictment, the suspect faces conspiracy charges to commit computer hacking, aggravated identity theft, conspiracy to commit wire fraud, and conspiracy to launder money.

Joseph O’Connor’s (PlugWalkJoe) Arrest

“PlugWalkJoe” formerly denied responsibility for the hack, telling The New York Times: “I don’t care. They can come to arrest me. I would laugh at them. I haven’t done anything.” O’Connor told the newspaper that he had corresponded with the other alleged perpetrators, but he was receiving a massage near his home in Spain during the hack.

According to the petition, FBI agents identified O’Connor using a combination of messages he made over the gamer chat platform Discord, as well as unnamed informants, including one who verified a recording of his voice.

An arrest warrant was granted in the United States District Court for the Southern District on June 12, and the Spanish National Police arrested him.

The FBI also searched O’Connor’s home in Málaga, Spain, on June 11 and found evidence including a phone with the same I.P. address used to control some of the Twitter accounts involved in the hack.

O’Connor is the fourth suspect to be charged in connection with the hack. A few weeks after the July 2020 attack, U.S. authorities named the then 17-year-old Graham Ivan Clark of Tampa as the attack’s mastermind. The federal judge sentenced him to the maximum allowed under Florida’s Youthful Offender Act.

Graham was 17 during the charges, and his case is now in the Florida state court because of his juvenile status.

Mason Sheppard, then 19, of Bognor Regis in the U.K., and Nima Fazeli, then 22, of Orlando, Florida, were also charged for their roles in the hack. If convicted on all charges, both defendants face more than 25 years in prison.

If O’Connor gets convicted on all charges, a federal district court judge will decide his fate, but the charges against him could lead to a sentence of up to 90 years in prison.

His latest charges come on top of an already impressive rap sheet. In 2019, a federal district court sentenced judge O’Connor to two years in a U.K. prison for his role in a SIM-swapping scheme that targeted high-profile figures like YouTube personality PewDiePie and Twitter CEO Jack Dorsey.

“PlugWalkJoe” participated in the 2020’s high profile attack impacting the accounts of then-Democratic presidential nominee Joe Biden, former President Barack Obama, Telsa CEO Elon Musk, Amazon CEO Jeff Bezos, and Tesla CEO Elon Musk.

O’Connor and his colleagues breached other billionaires’ accounts, including Michael Bloomberg and Bill Gates. Celebrities Kanye West and his ex-wife Kim Kardashian West were also victims of the attack.

According to court documents, O’Connor faces charges of computer intrusions related to takeovers of TikTok and Snapchat user accounts, in addition to the Twitter attack on July 15, 2020.

PlugWalkJoe, a citizen of the United Kingdom, is currently detained in Spain and awaiting extradition to the United States. The justice department will then have 60 days to submit a formal extradition request. This is where the real battle begins for O’Connor.

It is still unclear how O’Connor will plead to the charges against him, but what is certain is that he faces a long battle ahead.