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crypto

What is Crypto Strikers?

Crypto strikers is an online soccer game built on the Ethereum blockchain that allows users to buy, sell, or trade digital players – aka non-fungible tokens or NFTs. The game is still in development, with a beta version set to launch later this year. In the meantime, users can get their hands on the digital trading card game by participating in promotional giveaways or buying them from other players.

CryptoStrikers’ purpose was to recreate the thrill of actual trading cards on the Ethereum blockchain. It also aimed to use blockchain to address traditional card game collecting issues, such as lack of supply transparency, counterfeit cards, and global distribution.

The game is designed to be a global, competitive platform where users can battle for supremacy on the virtual soccer field. The ultimate goal is to create the best team of strikers possible and compete in tournaments for prizes and glory. Crypto Strikers will use OpenSea as its marketplace, allowing users to buy, sell, trade players and other digital collectibles.

Crypto Strikers have the potential to change how we think about both digital and real-world sports. The nft project provides a new way for fans to show their support for their favorite teams and players. It also offers athletes a new revenue stream outside traditional endorsements and salaries.

CryptoStrikers were created in May 2018 and published on June 11th, 2018, just in time for the 2018 World Cup, making it the first-ever sports NFTon the Ethereum blockchain.

Benn Gurton and Gianni Settino are the co-founders of CryptoStrikers. Their inspiration came from CryptoKitties, the first decentralized gaming application based on the ERC-721 smart contract.

Benn has over ten years of experience implementing strategic initiatives and developing software products across many startups and corporations in the sports industry. Gianni’s expertise is in product management and marketing, focusing on the digital and technology sectors.

The team behind CryptoStrikers has a wealth of experience in sports, gaming, and blockchain projects. They are committed to designing the best possible user experience for their users. The Crypto Striker’s team designed the game for fun, and it’s easy to play while also competitive and fair.

Crypto Strikers on OpenSea

Crypto Strikers will use OpenSea as its marketplace, allowing users to buy, sell, trade players or in-game items. OpenSea is the world’s first and largest NFT marketplace.

OpenSea is a marketplace identical to eBay, Etsy, and Amazon, except that all of the items displayed are digital treasures in the form of NFTs that users may mint, buy, and sell. The program is a decentralized, peer-to-peer exchange that allows users to conduct direct, trustless transactions with one another.

Alex Atallah and Devin Finzer formed OpenSea in 2017. Their inspiration came from the release of the popular NFT series CryptoKitties and saw the potential for NFTs to provide actual ownership of digital objects for the first time.

The marketplace on OpenSea is non-custodial, which means that no central entity has control over the platform’s transactions. Instead, self-executing a smart contract to facilitate transactions and ensure fair commerce. On OpenSea, transactions are either completed (the buyer receives the NFT and the seller is compensated) or not completed. They are called atomic transactions.

However, the platform retains 2.5 percent of each transaction. The costs of competitors range from 0% to 15%. It allows OpenSea to cover the costs of infrastructure, moderation, and customer service.

According to Dune Analytics, OpenSea logged over $5 billion in volume in January, nearly double what it did in December and a tremendous rise from its volume of about $8 million in January 2021.

How Do Crypto Strikers Work on OpenSea?

CryptoStrikers is a project that depended on an unfinished ERC-721 wrapper. Crypto Strikers users wrap their digital trading cards in the ERC-721 wrapper on OpenSea to buy and sell the assets.

In short, crypto Strikers are also known as Wrapper Strikers because they were created with an old and inadequate implementation of ERC-721, rendering them incompatible with several subsequent protocols.

To compensate for the early technology, each NFT must be “wrapped” before being listed on a marketplace like OpenSea. Remember that you can always unwrap a card and return it to its original state.

There are Bronze, Silver, Gold, Diamond, and iconic cards, each with varying rarity.

The Players Featured on Crypto Stickers

The original collection includes 100 players from the 2018 FIFA World Cup, with a limited number of Iconics set featuring 32 players. The players are global superstars like Cristiano Ronaldo, Lionel Messi, Neymar Jr., and more.

The founding team stated that they wanted to include more players in the product, but because they only had three months to complete the project before the 2018 World Cup, they had to limit the number of players included.

Since Crypto Strikers went live during the World Cup, the player-set centered on players actively competing in the tournament. The platform’s designers offered user cards in packs, and only one out of every five premium packs sold had an Iconic card.

The Iconic cards are the rarest and have a higher value. The Ronaldo card, for example, is currently listed for $999 on OpenSea.

Holders could stake their cards during games and win stars if the players chosen scored a goal. One card has two gold stars (that is not yet active on OpenSea).

The Future of Crypto Stickers

This project’s price has skyrocketed, and there may be more supply on the way from dormant wallets looking to cash in on an old digital item they’ve had for years.

The founders are currently improving the game mechanics and adding new features, like a card-leveling system. They should release an update before the 2022 World Cup.

Crypto sticker’s team tends to expand the list of players to include more global superstars. The team is also working on mobile apps that allow users to scan cards and view their stats.

Crypto Strikers may be the NFT trading cards you’ve been seeking if you’re a sports lover looking forward to having fun and earning. The Wrapped Strikers are available for purchase on OpenSea.

Other Top NFT Marketplaces

OpenSea is the world’s biggest open marketplace for NFTs. But there are other top NFT marketplaces such as:

  • Binance NFT; Binance NFT is one of the most popular curated NFT marketplaces, having launched in June 2021. The Binance Smart Chain powers the platform, which has no marketplace costs.
  •  MakersPlace; MakersPlace is an online marketplace specializing in digital art and creative works. The site has a community of artists and buyers who use the site to buy, sell, and trade digital assets.
  • Crypto.com NFT; On the Crypto.com chain, Crypto.com went live in March 2021. The site has partnered with well-known brands such as Aston Martin and the UFC. There are no marketplace fees on Crypto.com NFT.
  • LooksRare; it’s a “community-first” NFT marketplace that debuted in Jan. LookRare is a decentralized marketplace for rare digital art and collectibles. The NFT is here to challenge OpenSea’s dominance. Within a week of its launch, the Ethereum-based marketplace had surpassed $1 billion in sales volume. For NFT sales, the platform levies a 2% basic sales fee.
  •  Rarible; Rarible is a community-owned NFT marketplace with comparable characteristics to OpenSea and is built on the Ethereum network, supporting Flow and Tezos on several chains. The platform became live at the start of 2020. Rarible has 1.6 million members to date and charges a 2.5 percent marketplace fee.
  • Solanart; Solanart is the first and largest NFT marketplace developed on the Solana blockchain. Its trustless marketplace strives to encourage artists and innovators. Solanart began operations in July 2021 and charges a 3% marketplace fee.
  • Nifty Gateway; Gemini owns Nifty Gateway, the first USD-based, centralized NFT marketplace. The Winklevoss twins bought the market in 2019 after its creation in 2018.

Although these platforms are host to hundreds of NFT creators and collectors, it’s essential to do your research before purchasing.

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crypto

Top 5 DeFi Projects in 2022

The cryptocurrency universe is growing by leaps and bounds. This burgeoning industry offers opportunities for anyone with an internet connection and a desire to be their bank.

One of the sizzling topics in cryptocurrency is decentralized finance or DeFi. The goal of DeFi is to build an entirely new financial system that is wholly independent of the traditional financial (TradFi) economy. Thousands of developers worldwide are funding this goal with billions of dollars

We have seen developers crowd the market with different projects, each auditioning for your attention, promising good margins and no financial pain. It can be laborious to know which ones are worth your time and money.

This article will look at the top 8 DeFi projects in 2022. These are the projects that we believe have the most significant potential to change the way we interact with money. Keep reading to learn more!

DeFi Projects to Watch Out For Before The End of 2022

DeFi projects are mushrooming everywhere, intending to provide solutions to the centralized nature of the current financial system. So, here is the list of the top DeFi projects that you should keep an eye on in the year 2022:

1.  Avalanche

Any DeFi system must be built on a pre-existing smart contract platform, such as Ethereum, Binance Smart Chain, Solana, Avalanche, etc. These smart contract platforms are currently competing head-on. They are in an arms race to improve security, scalability and customizability, transaction processing speed, or be more energy-efficient and environmentally friendly.

 So, because blockchain technology is still in its early stages, there is still plenty of room for more customization of smart contract platforms to help them become even more efficient.

Avalanche is a new-generation smart contract platform developed recently. It competes directly with Ethereum with perceptible advancements like infinite transaction per second (compared to Ethereum’s 14 tps), transaction processing duration of less than 2 seconds, and a high level of security, all based on the Proof of Stake mechanism.

DeFi systems built on Avalanche are also more competitive than those built on other blockchains due to technological advancements in smart contracting. Transactions on Avalanche-based DEXs, for example, are significantly less expensive than those on Ethereum-based DEXs.

2.    Idle Finance

Idle finance stands out from other cryptocurrency projects due to its unmatched level of security—being one of the few non-hacked. It has lending DeFi protocols—and a user-friendly design that requires no gas fees for transactions.

The platform provides its users with a decentralized rebalancing protocol to manage digital asset allocations among various third-party DeFi protocols algorithmically and automatically.

Furthermore, their Best Yield product fully maximizes the interest accrual process for users to ensure they are constantly receiving the highest interest rates.

Idle Finance’s Perpetual Yield Tranches, a yield aggregator product that tranches risk and yield, is another industry-defining product. The two related tranches are senior with deposit protection plus yields and Junior with leveraged stablecoin yields.

Despite having such innovative functions, Idle Finance does not require the user’s undivided attention for them to benefit from the platform; the entire model, as the name suggests, is built around ease of use.

3.  Synthetix

Synthetix (SNX), a fast-growing decentralized exchange, allows users to trade crypto for stocks, commodities, currencies, and other assets still dominated by Wall Street, London, and Hong Kong’s traditional financial institutions.

Its most distinguishing feature is that it allows users to create their synthetic assets, known as “synths,” which enable exposure to fiat, derivatives, cryptocurrencies, and various asset classes.

Examples are Bitcoin, USD, euros, Tesla stocks, gold, and other currencies. This means that dealers can bet on the price of an asset without holding the actual asset, making Synthetix one of the most popular DeFi products on the market.

Hodlers can stake their SNX to generate new Synths for trading. Alternatively, they can sit back and collect fees and rewards from the Synthetix exchange (hopefully). However, the primary goal of Synthetix is to trade Synths. Traders can go long or short on an underlying asset on the platform. They accomplish this by holding other cryptocurrencies in Synths.

A trader, for example, could purchase a synthetic MKR token (sMKR) that reflects the price of MKR. However, they would not own an actual MKR token or have voting rights as standard holders would.

To create a new Synth, regardless of whether one prefers staking or trading, one must stake 800% of the Synth’s value in SNX tokens. It is important to note that supply and demand dynamics are here.

The more SNX locked up as collateral, the lower the supply. When it decreases in reserve, the more it increases its value. Currently, approximately 85 percent of the total supply of SNX is locked.

Synthetix also has its cryptocurrency, sUSD, pegged to the US dollar and used to pay transaction fees on the platform.

4.  Bondex

Bondex is a project with a long-term vision that is slowly but surely gaining recognition in the DeFi space. By resolving the prevalent issues in the blockchain industry, Bondex aims to transform how business gets conducted in the modern world. A tokenized rewards system allows its community of users to own certain parts of the next-generation Web 3.0 talent ecosystem.

Bondex aims to solve the industry’s challenges by leveraging its professional Network and implementing tokenized incentives to maximize the recruitment process and fill the growing talent gap. By using a decentralized P2P model, this project will enable a new revenue-sharing business model.

The Network affects this in three ways: 1) by distributing more profits among its global talent pool and hiring companies, 2) by aligning incentives across all participants for long-term growth, and 3) by changing its economic model.

Recently, Bondex partnered with KyberSwap – Kyber Network’s powerful liquidity hub. As DeFi’s first dynamic market maker, KyberSwap maximizes returns for liquidity providers and provides the best trading rates for token holders alike.

KyberSwap can aggregate liquidity from multiple exchanges (including KyberSwap) and determine the best trade route based on its Dynamic Trade Routing technology. This will give Kyber Network’s liquidity providers another avenue to earn a yield on their idle digital assets.

Bondex and Kyber Network hope to provide a better solution for the decentralized talent economy with this partnership.

5.  Sin City

“Sin City” is a Meta-verse multi-player game based on Blockchain Technology. The game’s background occurs in some of the most controversial cities where users can buy digital real estate. Users can purchase this land to build their empires.

There will be a high degree of social interaction on this platform, where people can create clubs for their friends to hang out in, create venues for online events to hold, or even compete in underworld challenges to win in-game rewards.

Featuring some of the high octane thrills of games like Grand Theft Auto on the blockchain, it’s appealing to many users, including game enthusiasts. Unlike other games, Sin City offers a unique 3D open world, play-to-earn model, in which a player can earn the native $SIN token and prosper both as an in-game player and an investor.

6.  Keep Network

Keep Network (KEEP) is a decentralized security protocol that enables the secure transfer of digital assets between blockchain networks. The protocol uses “Keeps,” which are particular purpose smart contracts that act as a bridge between different blockchains.

Keep Network’s key features are its security and privacy-focused design and its use of “Bonded Keeps” to ensure the safety of user assets.

In addition, Keep Network has partnered with Chainlink (LINK), the most widely used decentralized oracle network, to provide reliable data to its users.

With Chainlink, Keep Network can offer its users the ability to connect to off-chain data sources, such as real-world events, data from web APIs, and more.

Keep Network is an essential piece of the DeFi ecosystem and will be a significant player in the market in the years to come.

7.  Unicrypt

Unicrypt is a decentralized protocol that enables the creation and management of digital assets. The protocol provides tools that allow users to create, issue, and trade digital assets on the Ethereum blockchain.

Unicrypt’s key features are its user-friendly interface and support for a wide range of digital asset types.

In addition, Unicrypt offers a variety of features that make it an attractive option for users looking to create and manage digital assets. These features include supporting multiple signature schemes, atomic swaps, and more.

Unicrypt is a powerful tool that can be used to create and manage a wide variety of digital assets. The protocol will be a significant player in the DeFi space in the years to come.

Conclusion

The primary objective of DeFi is to create an open, trustless, and permissionless financial market. Notable development and investment are going into the advancement of DeFi, and financial advisors must understand this space. Much of the DeFi technology builds on and enhances the TradFi system, potentially resulting in a better outcome for users. As the space evolves and strengthens, it is critical to understand decentralized finance and be prepared to interact with its projects.

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crypto

Crypto Donations: How Cryptocurrency is Changing the Face of Philanthropy

The growing interest in Bitcoin and other digital currencies has focused on getting than giving. But behind the scenes is a promising trend leveraging cryptocurrency for philanthropy. Like cryptocurrency, the foundation for effective charities is transparency, immutability, and traceability.

Traditional philanthropy differs significantly from crypto philanthropy. The most notable difference is how donors give. The demographics of donors, funding models, and even the reasons for giving are changing with crypto philanthropy.

There is growing evidence that crypto donations will play a lasting role within non-profits, perhaps even reshaping philanthropy.

Giving using crypto has already encouraged waves of young people to consider philanthropy and helped smaller charities compete for donations, but this may only be the first step as digital assets become more embedded in our lives.

How Did Crypto Donations Start, and How is it Going?

Towards the end of 2017, an anonymous post on Reddit read, “I’m donating the majority of my bitcoins to charitable causes.”. There has never been any revelation of the donor’s identity – they are only known as Pineapple Fund. The Pineapple Fund donated 5,104 bitcoins worth over $55 million to 60 charitable organizations (2017).

In 2017, non-profits encountered cryptocurrency for the first time, but the necessity of understanding how to move digital money in philanthropy has since increased.

Five years after introducing cryptocurrency donations, non-profit organizations are still struggling with the idea– the concept is still unfamiliar and challenging to comprehend. Cryptocurrencies can be volatile, the technology behind them can be confusing, and they are constantly evolving.

Despite these challenges, more non-profits are beginning to explore cryptocurrency philanthropy and its potential benefits.

A new group of donors who made money quickly in the crypto market has emerged in the sector in a big way. Contributions to donor-advised funds (DAFs) at Fidelity Charitable Trust (2021) increased from $13 million in 2019 to $28 million in 2020.

The average contribution size also increased, from $33,000 to $47,500. The Giving Block reports that the value of cryptocurrency donations is now over $300 million annually and is only expected to increase.

The Progress of Crypto Donations

Charitable organizations can now have global donors thanks to the ease of transferring cryptos. And there are now many international charity organizations that accept cryptocurrency donations. To deal with cryptocurrencies, UNICEF launched a new financial vehicle, CryptoFund. As a result, many organizations, including the Red Cross and Greenpeace, now accept cryptocurrency.

Government restrictions make it difficult for non-profits to get funding, which crypto donations alleviate. For instance, the U.S. blacklisted WikiLeaks, a non-profit organization that published news leaks in 2010. On the other hand, a block on its funding came from Visa (V), Mastercard (M.A.), and PayPal (PYPL).

Today, WikiLeaks receives millions of dollars in crypto donations. While cryptocurrency philanthropy has reached unprecedented levels of growth, it remains a niche form of giving and differs from traditional methods to a great extent.

Compared to traditional philanthropists, the pool of cryptocurrency users tends to be much younger. More than 60% of cryptocurrency users are under 40 years old. According to the U.S. Census Bureau, crypto users are 38 years old, while the average age of donors is 64 years old.

Young, tech-savvy adults donate most cryptocurrency to causes that receive more attention online. Some donors may bond emotionally to particular events after reading heartfelt stories. Narratives shared on Twitter about the Russia-Ukraine war, for example, led to about $100 million in cryptocurrency donations for Ukraine.

In the same vein, social media served as a global COVID-19 helpline with global reach when India got hit by the 2nd wave of the pandemic, which also led to crypto donations. As part of the relief effort, Ethereum co-founder Vitalik Buterin contributed around $1 billion to India’s COVID-19 relief program in Shiba Inu (SHIB) tokens when they were soaring in value.

The Tor Project, a non-profit dedicated to internet freedom and privacy, received 58% of its donations in cryptocurrencies in 2021. The organization said it received donations from over 100 countries, with the US, Germany, and France topping the list.

Cryptocurrency: Why Philanthropy is Giving it Attention

In a blockchain-based digital payment network, cryptocurrency is the unit of account. Any central bank or government doesn’t regulate the crypto market, and the cryptocurrency market isn’t intrinsically valuable beyond what people collectively agree upon.

Cryptocurrency acts as a borderless currency, making international transactions cheaper and more manageable since international financial regulations and exchange rates are not involved. More than 7,000 cryptocurrencies exist, including Bitcoin, Ethereum, and Dogecoin, whose price and popularity soared in early 2021.

Philanthropic organizations face new challenges and opportunities due to the advent of this digital, online market. The following are two particular benefits of cryptocurrency gifts:

  • Taxes

 Cryptocurrencies are like any appreciated asset, including securities and real estate, regarding U.S. taxation. When donated to charity, these assets don’t attract capital gains taxes, resulting in more significant gifts to non-profits.

Converting crypto to fiat, however, can trigger capital gains taxes. When an investor donates an appreciated long-term asset directly, the investor can debit the fair market value of the crypto during the time of the donation.

  • Cost and Speed

Blockchain technology offers greater efficiency and transparency. Completing international transactions can take just minutes and cost a few dollars. Crypto donations have lower transaction costs than credit cards or debit cards, which were the most popular giving methods for 63% of donors worldwide, according to the 2020 “Global Trends in Giving Report.”

The processing wage on credit card transactions – a deduction made directly from the charity amount – ranges from 2.2% to 7.5%, according to Charity Navigator. An ordinary wire transfer of $2,000 from the U.S. to India may cost between $30 and $50 more in transaction fees. When transferring the same amount through the Ethereum blockchain, gas fees can range from $10 to $15.

Additionally, transacting in crypto only takes a few seconds or minutes, whereas transacting in fiat currency requires hours or even days

  • Anonymity

It is easier for non-profits to target existing donors than find new ones. Therefore, donors increasingly prefer to remain anonymous as the pressure to donate rises.

 Additionally, large donations may need the completion of a know-your-customer (KYC) and several personal identification requirements. While donating millions of dollars, donors can maintain their anonymity by using cryptographic donations.

  • Private Funding

Cryptocurrency donations are increasing in areas where traditional giving is impossible, or federal policy is still catching up. For instance, to support its clinical research into the effects of cannabis, the University of New Mexico Medical Cannabis Research Fund, for example, heavily relies on donations.

Cannabis research is primarily excluded from federal funding, and banks are prohibited from facilitating cannabis-related transactions under federal law. 420coin, for example, uses bitcoin’s market independence to circumvent these restrictions to fund research at the University of New Mexico.

What Non-profit Organisations Should do With Crypto Donations

In this space, non-profits must decide whether to sell cryptocurrencies immediately, hold them indefinitely, or diversify their donations. There is value in each strategy.

UNICEF launched the CryptoFund in October 2019, letting it receive, hold, and disburse cryptocurrency while learning more about digital assets. CryptoFund’s first year saw twelve investments in eight countries. UNICEF realized that by keeping crypto in its native form, it could track where funds go and how they get spent.

Non-profits who need to convert crypto donations into cash immediately to pay for operational expenses have third-party intermediaries step in to help them. The Endaoment is an example of a crypto public charity that sponsors DAFs and accepts over 150 different cryptocurrencies.

Robbie Heeger started Endaoment to make giving cryptocurrency easy without first selling it and make it possible for non-profits in the United States to accept it as cash. Heeger built Endaoment on the Ethereum blockchain.

When a donor sends cryptocurrency to an organization’s unique address, the funds are held in a smart contract. When the non-profit is ready, they can convert the cryptocurrency into cash with one click.

The Risks of Crypto Philanthropy

Challenges persist as philanthropy learns how to use cryptocurrency for the public good. Despite being transparent, crypto donations recorded on blockchain can be anonymous, limiting organizations’ ability to cultivate relationships with supporters.

The recipients of crypto-contributions can also be exposed to significant risks if the source of the donations is questionable – reputational damage is possible if the donations are tainted or financial ruin if non-profits receive laundered money.

Volatility and the unregulated nature of the asset present additional challenges- a crash in the cryptocurrency market could have severe consequences for non-profit crypto holders. Federal regulations and tax laws related to the crypto market currently lag behind other assets, and they are still in the process of catching up.

Conclusion

Cryptocurrency philanthropy has the potential to upend how we think about giving. Cryptocurrencies’ borderless, digital nature presents new opportunities for donors and organizations alike. For donors, crypto philanthropy offers a way to support causes they care about without going through traditional channels. For organizations, crypto donations provide a way to receive funding from a global pool of donors.

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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.

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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.

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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.