What is Pepe?

Pepe (PEPE) is a deflationary meme coin built on the Ethereum network. The ERC-20 token was inspired by the ‘Pepe the Frog’ meme that Matt Furie created in his cartoon titled Boy’s Club. So, what’s a PEPE? PEPE is the utility coin that governs the Pepe ecosystem. It acts as the project’s means of exchange and governance. The token went viral in 2023 after high-volume purchases attracted many investors on the internet, especially within the crypto community on X (formerly Twitter). Pepe’s humor and virality facilitated the expansion of token’s community, which significantly drove its price up and the project experienced a huge price surge just weeks after its launch.

Use cases and applications of Pepe

Since it began trading, PEPE has rivaled its meme coin predecessors in terms of profit, including Dogecoin (DOGE) and Shiba Inu (SHIB) in profits, returning over 1,000% gains within a year. On its own website, Pepe introduces itself as “the most memeable memecoin in existence”, referencing their competitors with the follow up phrase “The dogs have had their day, it’s time for Pepe to take reign”. However, as is the nature of most meme coins, Pepe has lesser intrinsic value and is more limited in utility than other altcoins on the market. Its value is typically derived from social media hype and community engagement, which can be difficult to maintain over a prolonged period of time. This limited real-world use potential is confirmed by Pepe itself, which states that the project offers no utility based on its meme coin status. Despite this, PEPE can serve a few purposes, including:

• Trading and investing on cryptocurrency exchanges.
• Digital payments.

How does Pepe work?

Pepe is built on the Ethereum network. This means that its transaction validation model is similar to that of Ethereum’s. To approach Pepe with a better understanding, consider exactly how the project operates.

Proof-of-stake consensus mechanism

Pepe validates transactions using the proof-of-stake (PoS) consensus mechanism, which means that smart contracts are used to verify and complete transactions on the network. Similarly, it means that investors can stake their tokens to become validators and earn PEPE tokens for contributing to the network’s stability and security.

Deflationary (burn) mechanism

As PEPE is a deflationary token, it has a fixed supply of 420.69 trillion tokens. To control the number of coins in circulation, the project uses a burn mechanism that removes some tokens from the circulating supply with each transaction. This was intended to create scarcity, resulting in the value of PEPE increasing over time in line with supply and demand dynamics.

No-blockchain-tax policy

Another unique feature of Pepe is a no-blockchain-tax policy. By being “tax-free”, Pepe investors can execute transactions on the blockchain without paying fees. In other words, making buying and selling PEPE cheaper than competitors, such as Dogecoin. Investors should note that this no-tax policy only applies internally within the Pepe community, and that any earnings made from trading or investing in PEPE are taxable according to the Internal Revenue Service regulations.

Who created Pepe?

Typical of the meme coin ecosystem, the creators of Pepe are unknown. Unlike major cryptocurrencies that provide information about their development teams, developers of meme coins such as Pepe often remain anonymous. Although the coin is named after the ‘Pepe the Frog’ cartoon character created by the cartoonist, Matt Furie, the Pepe Coin website states that the project has no affiliation with the artist.

Pepe price analysis

As a relatively new project, Pepe is still in its market infancy. With less than a year’s worth of market data to analyze, it is difficult to pull from either fundamental or technical analysis to make well-informed price predictions for the future. Investors looking to make price predictions will likely be asking whether the project will rediscover a strong market form after announcing a new advisory team in late 2023.That being said, Pepe’s price trajectory since launch has been impressive. As of early February 2024, Pepe trades at around $0.0000009 per token. The Pepe price is up by over 1,560% compared to its April 2023 launch price of $0.000000001. However, it remains considerably down from its May 2023 all-time high (ATH) price of around $0.000003.

Factors influencing Pepe’s price

Consider some of the factors that might influence the PEPE price today:

• Community: Pepe’s strong community significantly contributes to its market value. The community’s strength and proliferation on social media was a major influence on the price of PEPE when it launched in 2023. As the community grew, it fostered a bullish trend for Pepe, resulting in increased demand and price rises. Mirroring this sentiment, investors should expect a price decline if the community loses faith or interest in the project, and sell inclination increases.
• Major exchange listing: Another contributing factor in Pepe’s strong market performance has been its listing on major exchanges, so soon after launch. As of February 2024, the meme coin was trading on popular centralized exchanges such as OKX, Binance, Huobi and KuCoin. Pepe’s presence on such exchanges makes it accessible, and perhaps seem more credible, to many investors.
• State of crypto regulation: The cryptocurrency landscape faces legal and regulatory ambiguity. The ever-evolving crypto regulatory landscape can impact both the utility and price of PEPE.
• Competition from other meme coins: Just as PEPE took wind from Dogecoin and Shiba Inu, new meme coins that emerge and gain popularity, or capture trend-led attention (such as Floki (FLOKI)), might erode or dilute PEPE’s investor base, as investors limit their exposure to meme coins. With this, Pepe might lose market value.

Pepe market performance

Early PEPE investors earned over a 1,000% increase on their investments after the coin surged in 2023. However, considering Pepe’s market performance at any given time can help you determine if investing in the coin is a good decision. As of early February 2024, PEPE was trading at around $0.0000009 per token, with a market capitalization of over $376m. The coin’s market share at the time placed it outside the top 100 cryptocurrencies, according to CoinMarketCap rankings. This positions Pepe with a significantly lower market cap compared to Dogecoin and Ethereum, with market caps of around $11.1bn and $275.6bn, respectively. However, Pepe has performed better than another popular meme coin, Shiba Inu, despite launching a few years later.

How to buy and store PEPE

If you want to invest in Pepe Coin, the first step is to buy the PEPE token on centralized or decentralized exchanges. You can buy PEPE by following the steps below:

• Step 1: Choose a reputable centralized cryptocurrency exchange and create a trading account on the website or mobile app.
• Step 2: Complete the trading platform’s identity verification/KYC process by submitting proof of identity and address.
• Step 3: Access the deposit section to add funds to your account using the supported payment methods. These include cryptocurrencies and fiat money such as the USD and GBP.
• Step 4: Search for Pepe on the trading platform using its ticker symbol and buy the coin.
• Step 5: Transfer the PEPE tokens to an external wallet.

Safe wallet storage

Cryptocurrency exchanges are vulnerable to hacks and cyberattacks, so leaving your coins in their custody can expose you to risk. The best way to store your coin for a long period of time is in a hardware wallet. Hardware wallets, known as cold wallets, are not connected to the internet and are considered the most safe and secure wallet. A hot wallet, on the other hand, is connected to the internet, but it does offer faster and easier access for active traders. Ensure that you research the wallet types to find the best option for your needs.

Risks and challenges of investing in Pepe

As with any cryptocurrency, it is important to consider the potential risks and challenges associated with investing in Pepe:

• Price volatility: The most common challenge of investing in any cryptocurrency is the market uncertainty. The crypto market is highly volatile, and coins always experience price fluctuations. PEPE’s price is extremely volatile and has recorded extreme price swings both up and down. The low price per token is also a concern for some investors, as even throughout periods of impressive price growth, PEPE’s price has never reached $1. Investors can purchase millions of PEPE tokens with very limited capital, so at scale, losses could be extremely large.
• Limited utility: PEPE has limited utility outside of its community and lacks real-world applications. Pepe’s value is backed by hype and virality, rather than strong utility or investor conviction.
• Security concerns: Concerns regarding the security of the project have existed within the Pepe community since August 2023, when three of the project’s former development team members reportedly accessed the token’s multi-signature wallet and illicitly transferred 16 trillion PEPE tokens (worth about $15m) to various decentralized exchanges. This resulted in the Pepe price fall experienced since the latter part of 2023. Despite this security breach, however, the project’s lead developer has promised to continue moving the project toward full decentralization.

Regulatory and legal aspects of PEPE

The legal and regulatory landscape for cryptocurrencies such as PEPE is dynamic and varies across jurisdictions. Changes in broader cryptocurrency regulations can influence PEPE’s price, with favorable changes to regulations and guidelines potentially benefiting its future, and vice versa with unfavorable changes. While transparency issues can make meme coins particularly vulnerable to regulatory challenges, strong community resistance and continued support in the face of legal challenges can help meme coins like Pepe withstand adversity.

Comparing Pepe with other cryptocurrencies

Comparative analysis can help investors make well-informed decisions about their portfolios. Below, we look at how Pepe compares to Ethereum, Dogecoin and Shiba Inu.

Pepe vs Ethereum

Pepe developers built the project on the Ethereum blockchain, so they both validate transactions using the PoS consensus mechanism. However, while Ethereum offers real-world utility such as support for decentralized apps (dApps), Pepe is a meme coin with no actual use case beyond trading.

Pepe vs Dogecoin

Like Pepe, Dogecoin relies on its community for popularity, with Elon Musk’s influence contributing to its draw. Low transaction fees and infinite circulation are also unique features that can appeal. Dogecoin has a larger market capitalization than Pepe as of January 2024. This, combined with a higher token value, emphasizes DOGE’s current dominance in the market. DOGE was also the first meme coin, so it rivals Pepe in terms of notoriety. Despite lesser market maturity, Pepe has returned massive gains to early investors within just a few months, leading some investors to believe that PEPE will start to rival DOGE as the next big meme coin.

Pepe vs Shiba Inu

Both Pepe and Shiba Inu are major meme coins, with Shiba Inu entering the market before Pepe, akin to Dogecoin. Both SHIB and PEPE lack real-world utility, relying instead on community hype to derive value, and therefore presenting uncertainty about their long-term potential. Shiba Inu has a more established blockchain than Pepe, and features several developed projects, fostering an innovative ecosystem with an engaged user community. Despite this, however, Pepe has surpassed SHIB in market cap, indicating investor demand and potentially attracting former SHIB or meme coin investors.

FAQs

How much is 1 Pepe Coin?

As of early February 2024, one unit of PEPE was trading at around $0.0000009.

Is PEPE a good investment?

PEPE has returned over 1,000% gains to its early investors. It is also a highly volatile coin, making it a good investment for active traders. However, with no intrinsic value, PEPE is a high-risk investment.

Is PEPE actually safe?

The safety of your PEPE depends on how you store it. Refer to the ‘How to Buy and Store PEPE’ section above to find out the best way to keep your PEPE safe.

The post PEPE appeared first on Cryptonews.

Dogecoin (DOGE) is best known as a joke cryptocurrency that was born out of an internet meme and launched into a serious player that is among the top ten cryptos by market cap. It started out as a joke project that would still retain all the functionalities of its more serious counterparts within the cryptocurrency space. Nowadays, it is best known for the endorsements it has received from various billionaires who often tout its “strong community” as its biggest advantage.

If you have not heard about Dogecoin before it reached its all-time high in May 2021, then you were bound to hear about it at that point; as its price shot up, so did its popularity far beyond the crypto space. For many, it serves as a reminder that technology is more powerful than many admit, but also that not everything has to be completely serious in order to have a strong use case.

This comprehensive guide will dive into the live charts, news, and crucial information about Dogecoin, keeping you in the loop on its price movements and market updates.

What Is Dogecoin?

Dogecoin is a cryptocurrency that was originally created as a playful and meme-inspired digital asset. Launched in December 2013, Dogecoin quickly gained popularity for its lighthearted Shiba Inu dog logo from the “Doge” internet meme.

Initially created as a parody of more serious cryptocurrencies, Dogecoin has since evolved into a genuine and widely traded digital currency. It has even gained a massive following of loyal fans who want to see Doge go “to the moon.”

What sets Dogecoin apart is its approachability and community-driven ethos. Dogecoin has a large and enthusiastic community, often engaging in charitable endeavors and online tipping. Unlike many other crypto communities, Doge still carries a lighthearted feel and a friendly and inclusive nature. On top of that, low transaction fees are another massive bonus.

Dogecoin Price Analysis

Looking at Dogecoin’s historical price trends will give you insights into its performance. The historical trajectory of the price can help provide context for its current movements, from its early days marked by nominal value to potential price surges driven by market sentiment.

Dogecoin’s value is shaped by many factors, including market demand, community opinion, celebrity endorsements, and broader trends in the cryptocurrency sphere. For example, the famous Doge appeared on a NASCAR in 2014, boosting the price of the meme-coin.

Understanding these influences is crucial for anyone tracking Dogecoin’s price dynamics. Stay tuned for updates on Dogecoin’s journey in the crypto market.

How Does Dogecoin Work?

Dogecoin operates on a blockchain, a decentralized and distributed ledger that records all transactions across a network of computers. It uses a proof-of-work consensus mechanism, similar to Bitcoin (BTC), where miners solve complex mathematical puzzles to validate transactions and add blocks to the blockchain. This process ensures security and transparency within the Dogecoin network.

 

Dogecoin has grown beyond its meme origins to find practical applications. Due to its low transaction fees, it now serves as a medium of exchange for online tipping, donations, and small transactions.

The Dogecoin community has engaged in philanthropic efforts, raising funds for various charitable causes. They often sponsor sports, and the famous Doge has even appeared in NASCAR too.

Dogecoin History

Internet meme culture has always had its recognizable meme templates; some of them quickly became mainstream, others were quite obscure and only used by certain groups of online users, while others still lost their initial meaning once they were taken out of the original context. One of the best known memes—in part due to the cryptocurrency it would subsequently influence—was Doge, a picture of a Shiba Inu dog captioned with inner monologues in a Comic Sans font. Although the picture that was used in the meme was first posted online in 2010, the meme itself took off a couple years later.

The Dogecoin cryptocurrency was born in December of 2013, when software engineer Jackson Palmer realized he had two tabs in his browser opened side by side: one was crypto data aggregator CoinMarketCap, and the other was a news article about the Doge meme that was all the rage online at that point. This side by side view gave him the idea to put the two together, which led to the birth of the Dogecoin cryptocurrency. He introduced the project on the BitcoinTalk forum as a satire of Bitcoin itself, titling it, “Dogecoin – very currency – many coin – wow – v1.1 Released” in the style of the meme.

Palmer worked with IBM developer Billy Markus on launching the cryptocurrency. Markus had been looking for a way to create a cryptocurrency that would be “truly open to the masses,” as opposed to Bitcoin which had an anonymous creator and only attracted a small, niche group of miners at the time. He found what he was looking for when he met Palmer, who purchased the dogecoin.com domain and set the plan into motion.

Dogecoin officially launched on December 6th, 2013. The first hack it suffered happened on December 25th, 2013, when a number of Dogecoin wallets were hacked and drained. However, the community came together and refunded the affected users.

The Dogecoin community makes up a big part of its success. The coin was consistently used as a way to tip internet users, most notably on Reddit and Twitter. This was largely due to its price, which was often between USD 0.002 and USD 0.003 until 2021. However, the community has also participated in many charitable initiatives, like sponsoring the Jamaican bobsled team in 2014 to allow them to compete in the Sochi Winter Olympics, as well as sponsoring NASCAR driver Josh Wise who sported the icon on his car and jacket at the 2014 Talladega All-Star race. Another notable project was Doge4Water which successfully funded the creation of a clean water well in Kenya.

While Dogecoin’s community, which believes in the coin’s potential to become a global currency, has driven its value and adoption up consistently throughout the years, one notable figure to help with that has been billionaire Elon Musk. In early 2021, he said in an interview that, “Dogecoin was made as a joke to make fun of cryptocurrencies, but fate loves irony. The most ironic outcome would be that Dogecoin becomes the currency of Earth in the future.”

This comment was followed by several tweets of endorsement that sent the price of Dogecoin soaring to an all-time high of USD 0.73 in May 2021. In the wake of this popularity, an increasing number of online merchants started accepting DOGE as a payment method. Additionally, many cryptocurrency exchanges made DOGE the first “joke” cryptocurrency that they listed, paving the way for many other meme-inspired tokens that appeared in its wake.

Aside from Musk, another big fan of Dogecoin and, more importantly, its community is fellow billionaire Mark Cuban, who is also the owner of the professional US basketball club the Dallas Mavericks. The club started accepting cryptocurrency payments for their merch, with special discounts for users paying in DOGE, as of 2021. Cuban added that the DOGE community is “the strongest when it comes to using it as a medium of exchange,” with Musk agreeing with him on Twitter.

All of this means that as far as the community goes, Dogecoin has very strong backing from various public figures who appreciate its different use cases.

Dogecoin Team

As we mentioned in the previous section, the two main people behind the Dogecoin project are Jackson Palmer and Billy Markus. However, Palmer left the project in 2015 due to what he called a “toxic community” and is now one of the most outspoken critics of the cryptocurrency industry as a whole. He is still involved in cryptocurrencies, but does not partake in anything related to Dogecoin. Markus, on the other hand, is still part of the project, but claims only to own the DOGE that other people have given him.

The force behind many of the project’s charitable contributions, both within its own ecosystem and outside of it, was the Dogecoin Foundation. It was formed in 2014 and touts the motto “Do Only Good Everyday,” which is a backronym of DOGE. The foundation’s board is made up of three Dogecoin developers, a community advocate, and a legal counsel. There are also four Board Advisors: Jared Birchall, who represents Elon Musk; Max Keller, Dogecoin Core developer and technical advisor; Billy Markus (known as Shibetoshi Nakamoto in a nod to the pseudonymous Bitcoin creator); and Vitalik Buterin, Ethereum (ETH) founder who acts as a blockchain and crypto advisor.

The team states in their Dogecoin Manifesto that, as they’re creating a currency for the people, they value the following things:

• “Being useful, we value utility over technical brilliance.
• Being personable, we value individuals and interactions over profit-driven economics.
• Being welcoming, we value collaboration and trust over competition and exclusivity.
• Being reliable, we value working solutions over speed of delivery.”

The Board Advisors are heavily involved in various projects in the cryptocurrency space aside from Dogecoin itself.

Dogecoin Market Performance

As of the latest available data, Dogecoin (DOGE) has a market capitalization of $11.016B. This is reflective of its massive presence in the cryptocurrency market. The market capitalization provides insight into the total value of all Dogecoin in circulation.

The trading volume of Dogecoin, indicating the total number of DOGE coins traded within a specific period, is another interesting metric to look at. High trading volumes can signify increased liquidity and interest among investors and traders. At the time of writing, the DOGE trading volume sits at $547.89M

How to Buy and Store Dogecoin

To buy Dogecoin, you can explore various cryptocurrency exchanges that support DOGE trading. Popular platforms such as Binance, Coinbase, and Kraken typically offer Dogecoin trading, allowing users to buy DOGE using fiat currencies like USD or other cryptocurrencies.

It’s important to thoroughly research the different trading platforms before choosing one to use when buying DOGE. Since DOGE is incredibly popular, most platforms will have this currency available for trading.

In terms of securing your Dogecoin, you can choose between different types of wallets, including hardware wallets, software wallets, and mobile wallets. Each has its own set of security features to keep your investments safe.

• Hardware wallets, like Ledger or Trezor, offer offline storage and are considered highly secure.
• Software wallets like Exodus or Atomic Wallet are convenient for regular transactions but may be more susceptible to online threats.

It’s crucial to follow best practices for wallet security, including enabling two-factor authentication and keeping private keys secure.

Here are the steps to buying and storing DOGE:

1. Open an account on a crypto exchange.
2. Verify your account by submitting the required details and documents.
3. Transfer money into your crypto account using one of the deposit methods available.
4. Purchase DOGE on the exchange.
5. Store your DOGE in your secure wallet.

You can sell your DOGE for fiat currency or another crypto if you want to convert it.

The Future of Dogecoin

Dogecoin’s future is always questioned. For a currency that was initially created as a joke, it’s come a long way. That proves how difficult it can be to predict what will happen in the crypto market.

However, the development team often releases updates and improvements focusing on maintaining the coin’s utility for both transactions and community engagement. The updates typically include technical upgrades, security enhancements, and potential collaborations that contribute to the overall growth of Dogecoin.

Experts in cryptocurrency have varying opinions on the future of Dogecoin. While some view it as a lighthearted and community-driven digital asset with long-term potential, others emphasize the importance of staying informed about market dynamics and monitoring its price fluctuations.

As with any cryptocurrency, factors such as market sentiment, regulatory developments, and technological advancements can significantly impact Dogecoin’s future. Staying updated on the latest news and expert analyses can provide valuable insights for you on the coin’s future.

Risks and Challenges

Investing in Dogecoin, like any other cryptocurrency, comes with its set of risks and challenges. One of the main considerations is market volatility. The value of Dogecoin can fluctuate massively, impacting your portfolio at any given time.

Additionally, the cryptocurrency market is influenced by external factors such as regulatory developments, macroeconomic trends, and technological advancements. If you see a DOGE publicity stunt, the coin could increase in price.

Investors should know the inherent unpredictability and be prepared for potential market downturns.

Then there’s security and scams. Security is a huge concern in cryptocurrency, and Dogecoin is no exception. While the blockchain technology used in Dogecoin is designed to be secure, you must be cautious to protect their assets.

Risks include potential vulnerabilities in wallets, phishing scams, and external threats. Dogecoin developers continually work on improving security measures, but you can enhance your safety by using secure wallets, staying vigilant against scams, and following best practices for safeguarding your digital assets.

Regulatory and Legal Aspects of Dogecoin

All cryptocurrencies operate under strict regulations and jurisdictions. Dogecoin is no different. The legality of Dogecoin can range from fully accepted to restricted or even banned in certain areas. Understanding the regulatory environment in a specific area to ensure compliance with local laws.

Note: Cryptocurrency regulations are subject to change, and you should seek up-to-date information from reliable sources or legal professionals.

Community and Ecosystem

Dogecoin has always had a vibrant and enthusiastic community that sets it apart in cryptocurrency.

The community branches out into tons of different channels, from a flourishing subreddit to a bustling discord server. In Dogecoin’s ecosystem, there’s a sense of community and philanthropy, often seen through community-driven initiatives.

The Dogecoin community plays a pivotal role in the ongoing development and growth of the cryptocurrency. From initiating network upgrades to collaborations on projects, community-driven efforts contribute to the continuous evolution of Dogecoin.

The communal spirit of DOGE is a driving force, shaping the trajectory sending to “to the moon.”

Make sure to explore Dogecoin’s community channels, forums, and social media platforms to connect with DOGE fanatics all over the world and stay informed about the latest news and developments.

Comparing Dogecoin to Other Cryptocurrencies

Dogecoin vs. Litecoin

Both Dogecoin and Litecoin share a common origin, as Dogecoin was initially forked from Litecoin. They employ the Scrypt hashing algorithm and share a commitment to fast transaction processing.

Dogecoin distinguishes itself with a more vibrant and community-oriented image, often engaging in charitable initiatives. Litecoin, on the other hand, positions itself as the “silver to Bitcoin’s gold” with a focus on secure and efficient transactions.

Dogecoin vs. Ethereum

Both Dogecoin and Ethereum have active and engaged communities. Ethereum, like Dogecoin, is transitioning to a more energy-efficient consensus mechanism — something that might appeal to a different audience.

While Ethereum is known for its smart contract capabilities and decentralized applications, Dogecoin traditionally emphasizes simplicity and ease of transaction use. Ethereum has a more complex blockchain, facilitating a broader range of functionalities.

Dogecoin vs. Bitcoin

Dogecoin shares its proof-of-work consensus mechanism with Bitcoin, both relying on miners to validate transactions.

Dogecoin stands out with its higher maximum supply (inflationary nature) and faster block generation time. As the pioneer, Bitcoin is characterized by its fixed supply and store of value narrative.

Dogecoin comes with its advantages and disadvantages, just like every other cryptocurrency. Understanding these factors may influence your decision on whether to buy DOGE or not.

Advantages:

• Dogecoin’s strong and resilient community has consistently driven its adoption and development.
• The light-hearted and approachable image of Dogecoin has made it more accessible to a wider audience and created a loyal following.
• Unlike Bitcoin and Litecoin, Dogecoin has a modest annual supply increase, which makes it inflationary.

Disadvantages:

• Compared to some experts, Dogecoin may be perceived as having fewer technological advancements or unique features compared to other cryptocurrencies.
• As with any cryptocurrency, security concerns remain, and vigilance is important to address potential vulnerabilities.

Dogecoin Offshoots and Wannabes

In 2021, as Dogecoin reached its peak of popularity and spawned many similar projects that either played on its name or its meme origins. A number of these coins (like Baby Doge, for example) were created by the Dogecoin community as homage to the original DOGE, but none of them were made by the founders of Dogecoin itself. Another notable example is the Shiba Inu token, which was initially supposed to act only as the mascot for Dogecoin, but evolved into its own token on the Ethereum blockchain after a while.

Most of these offshoots are not meant to be used in a transactional manner, but rather hoarded (“HODLed”) in the hopes that they will appreciate in value. In fact, since many of them are priced extremely low, their creators and communities are counting on the fact that early adopters will be more likely to purchase them and therefore drive up the demand. Many come pre-mined, which means there is a fixed supply, so a heightened demand could theoretically boost the price up.

All of these coins—Dogecoin itself included—are highly speculative, and the success of DOGE does not guarantee or even imply the success of any of its offshoots.

FAQs

How much is 1 Dogecoin to buy?

The value of 1 Dogecoin fluctuates based on market demand and supply. Make sure to check our live charts to get the most up-to-date DOGE price.

Is Dogecoin actually safe?

Dogecoin, like any cryptocurrency, has risks. While it has gained popularity and community support, following best practices for securing your investments is essential. Use reputable exchanges, secure wallets, and stay in the loop about potential risks.

How can I purchase Dogecoin?

You can buy Dogecoin on various cryptocurrency exchanges, such as Kraken, where you can trade other cryptocurrencies or fiat currency for DOGE. Make sure to use a reputable exchange, and consider using a secure wallet to store your Dogecoin.

Can I mine Dogecoin, and is it profitable?

Yes, Dogecoin can be mined, primarily using a process called merged mining with Litecoin. However, the profitability of mining depends on factors like hardware, electricity costs, and market conditions. Make sure to research thoroughly and consider the current state of the mining industry.

What sets Dogecoin apart from other cryptocurrencies?

Dogecoin stands out for its friendly and approachable community, often engaging in charitable initiatives. Its inflationary model, with a higher maximum supply and faster block generation time, differentiates it from other cryptocurrencies like Bitcoin and Litecoin.

The post Dogecoin appeared first on Cryptonews.

You will notice that usually, Tether usually maintains a value of $1 USD. This is what this stablecoin is designed to do, with minimal fluctuations.

What factors impact the Tether price? Fluctuations may result from the US Dollar itself rising or falling in value, supply and demand, and news events that impact the markets.

What Is Tether USDT

The Tether cryptocurrency (USDT) is supposedly tied to the US dollar at a 1:1 ratio, meaning that it should be traded at the stable rate of 1 tether coin for 1 US dollar. Singular units of the cryptocurrency are called “tethers” or “tether coins.” It is described as being fully backed by the real-world reserves of the US dollar.

However, price of a stablecoin can also fluctuate. For example, tether dropped below USD 0.90 in October 2018 before recovering to almost USD 1 again. In either case, it’s still more stable than other cryptocurrencies.

Also, many investors question tether’s peg to the US dollar despite Tether has sought to reassure the community by repeatedly saying that each USDT in circulation is backed by US dollars in its bank account. However, the company has failed to provide conclusive evidence, such as a formal audit, that would back up its claim.

Tether coin’s history started with its predecessor Realcoin, which was presented by Brock Pierce, Craig Sellars and Reeve Collins back in 2014. Soon afterwards, the coin’s name was changed to what it is now.

If you are looking for a cryptocurrency that helps you avoid some of the extreme volatility of the crypto markets, you might consider Tether (USDT). This crypto is the most well-known stablecoin. Its value is “tethered” (pegged) to the US Dollar (USD), hence its name. 

This post will serve as your in-depth introduction to Tether. We will explain exactly what Tether is, how it works, how to buy and store it, its risks and challenges, and more.

How Does Tether Work?

You now know that each USDT is pegged 1-to-1 with 1 USD. But what does that mean in real terms? How does the pegging work?

The answer is Tether’s reserves, which back its stablecoins. Every day, Tether publishes a report on the value of its reserves to ensure transparency.  

Nevertheless, Tether’s history is not entirely positive concerning its reserves. The US Commodity Futures Trading Commission (CFTC) charged Tether with lying about its reserves in the past. It was discovered that rather than the reserves being cash or equivalents, they instead took the form of high-risk investments (i.e. other cryptos). These findings resulted in Tether paying a fine of $41 million.

Tether remains a popular and (largely) stablecoin, but needless to say, this incident eroded trust in USDT somewhat. 

In this white paper, you can learn about Tether’s three-layer technology stack, consisting of the Bitcoin blockchain, an Omni Layer protocol (Omni functions as the embedded consensus system), and Tether Limited. The Tether platform uses Omni Protocol, the open source software which allows it to interact with blockchain.

How is Tether used? The exceptional stability and liquidity of Tether make USDT an excellent choice for individual transfers as well as transactions between merchants and consumers. Additionally, Tether is actively traded at a high volume in the crypto markets.

With volatile cryptos like Bitcoin, many individuals and businesses may not want to hold their money as cryptos, fearing lost value. But with USDT, large fluctuations are less likely. This makes it possible to convert back to USD (or another currency) at one’s leisure, rather than rushing to do it the instant one receives a crypto payment.

Who Created Tether?

The history of Tether dates back to 2012, when J.R. Willett came up with the idea of creating a new crypto called Mastercoin. Tether was built in 2014 on Mastercoin’s protocol by founder Craig Sellars and co-founder Brock Pierce.

Tether Market Performance

At the time of this writing, the market cap for Tether is $92,348,734,709, and the 24-hour trading volume is $66,349,056,640.

This ranks Tether 3rd among cryptocurrencies, putting it directly behind Bitcoin (which is ranked as #1) and Ethereum (which is ranked as #2).

How to Buy and Store Tether

If you want to purchase and store Tether, you will need two things: a crypto exchange, and a crypto wallet.

• Your crypto exchange is where you can buy and sell Tether and other stablecoins and cryptos.

• Your crypto wallet is where you can store Tether and other stablecoins and cryptos.

Tether is available to buy and sell just about anywhere; due to its high trading volume, you have your pick of crypto exchanges. Many exchanges also offer wallets, so you can buy, sell, and store your cryptos all in the same place.

Here are the steps to buying and storing Tether:

1. Open an account on a crypto exchange.
2. Verify your account by submitting the required documents.
3. Transfer money to your crypto exchange account using a deposit method of your choice.
4. Purchase Tether on the exchange.
5. If you are using an external wallet, connect the wallet so that you can store the Tether there.

You can sell your Tether for US Dollars or another crypto or fiat currency if you want to convert from USDT.

How Tether Tokens are Created and Burned

One person alone cannot create and issue Tether tokens, thanks to a multi-signature model. This system helps to preserve the security of Tether. Instead, multiple private authorization keys are needed.

Directly following their creation, new Tether tokens remain in the Tether treasury. Only when market demand requires their release are they issued.

It is also important to know that Tether tokens are burned sometimes once a person holding them chooses to convert to a different crypto or a fiat currency. Rather than sending them to an inaccessible address, Tether returns them to the treasury. That way, they can issue them again if market demand warrants it in the future.

The Future of Tether

Whatever the future of Tether, one thing is certain, and that is that USDT’s health is critical to the crypto ecosystem as a whole.

Speaking to the New York Times, Professor Hilary Allen, a finance expert at American University, said, “Tether is really the lifeblood of the crypto ecosystem. If it imploded, then the entire facade falls down.”

She continues, “In a worst-case scenario, critics say, a downturn could spark the crypto equivalent of a bank run.”

That is why it is a good thing the CFTC decided to crack down on Tether’s reserves. Hopefully, with stronger government oversight, Tether will be forced to maintain its reserves as cash or equivalents, reducing the chances of a collapse.

Recently, Tether has focused on increasing its security, introducing a voluntary wallet-freezing policy. This will bolster the overall safety of the stablecoin ecosystem.

Risks and Challenges

As we discussed above, a big risk with Tether is if the reserves it is tied to are not stable, the stablecoin itself may lose value or even crash. So, it is essential to have cash or cash equivalent reserves.

Like other cryptocurrencies, Tether exists in a murky regulatory zone as well, which introduces further uncertainties. That being said, this is one of the top cryptos regulators will show an interest in over the coming years, given its significance to the markets.

Another risk facing USDT is USD Coin (USDC), a competing stablecoin. USDC has not been embroiled in as many legal hassles as Tether, which has led to an increase in its popularity over the past few years.

Other stablecoins are lagging behind USDC and USDT, but could start catching up if trust does not rebuild quickly in USDT. We will discuss these competing stablecoins more later on in this post.

Additionally, Tether has a history of blacklisting addresses, which may make some investors nervous about holding it.

Regulatory and Legal Aspects of Tether

The parent company of Tether Limited is iFinex. This company in turn is based in the British Virgin Islands.

As you know, the CFTC took action against Tether in 2021 because of the issue involving the company’s reserves. Also, Attorney General Letitia James filed a lawsuit against iFinex for fraud in 2019, which resulted in an $18.5 million settlement.

So, regulators are keeping a close watch on Tether. If anything, we expect this regulatory oversight to increase in the future.

Again, that is not a bad thing, given Tether’s role in the economy. Regulatory involvement in Tether will ultimately increase trust in the stablecoin, which should facilitate its adoption even further.

Tether claims to take regulations seriously, stating, “Tether maintains world-class standardized compliance measures for anti-money laundering (AML), countering the financing of terrorism (CFT), sanctions, and know your customer (KYC) laws and regulations.”

Tether is available in most jurisdictions around the world. But you may not use Tether if you are in any of the following regions: Cuba; the Democratic People’s Republic of Korea (North Korea); Iran; Pakistan; Singapore; Syria; the Government of Venezuela; and Crimea.

Community and Ecosystem  

Tether has drawn a passionate community of enthusiasts thanks to its sophisticated technology and superlative convenience.

Integration of Tether is easy thanks to a wide range of supported blockchains, including not just Bitcoin and Ethereum, but also Avalanche, EOS, Polygon, TRON, Algorand, Kava, Polka, Solana and Tezos.

Tether pays close attention to which blockchains are being utilized, adding and removing support as required to adapt to the community’s changing needs. By discontinuing support for blockchains that are no longer getting a lot of traction, they can allocate more resources to those that are.

If you want to get to know other Tether enthusiasts, you can find communities built around the stablecoin on social media platforms.

Comparing Tether to Other Cryptocurrencies

Apart from looking to increase its market capitalization and share, Tether faces competition from other stablecoins such as TrueUSD, Dai and others. Now let’s discuss how Tether compares to some other cryptocurrencies, starting with its competitor USDC. 

Tether’s transparency has increased since the CFTC levied its fine. But USDC is considered to be the more transparent of the two stablecoins. Nevertheless, Tether is still beating USDC when it comes to liquidity. It remains ahead of USDC in terms of trading volume as well. USDC’s market cap is $25,013,229,679, which comes in well below USDT’s market cap of $92,348,734,709.

While USDC is Tether’s closest competitor, the next runner-up is Dai (DAI), which has a market cap of $5,342,159,298. Unlike USDT and USDC, DAI is decentralized. Like USDC, DAI has a stronger reputation for transparency than USDT does.

The next major competitor with USDT and the other major stablecoins is TrueUSD (TUSD), which has a market cap of $2,303,768,606. While it is not in widespread use to the same degree as USDT or USDC, it is liquid and transparent.

Right now the biggest advantage of USDT over its competitors is simply its high market cap and trading volume. Its biggest drawback is the reduced trust associated with the reserves issue from a few years ago.

How To Get Tether USDT

Buying and selling Tether coins is rather straightforward, as the coin is supported by several international crypto exchanges such as Poloniex or Kraken which support it as part of appropriate trading pairs.

The Tether family also includes a Euro counterpart (denoted as EUR₮), and the support for the Japanese yen is currently being worked on.

FAQs

To conclude our post about Tether, let’s answer a few frequently asked questions you may have about this popular stablecoin.

Q: How much is 1 Tether to buy?

A: Assuming you are using US Dollars to purchase Tether tokens, you can generally buy 1 Tether for $1 USD. By design, Tether is pegged to the US Dollar. Its value against the US Dollar is relatively stable.

Q: Is Tether actually safe?

A: Tether is reasonably safe; it performs as expected, with the value of 1 USDT being roughly $1 USD most of the time with only minor fluctuations.

Some people do fear that Tether could crash, given what happened in 2021 with the CFTC’s findings about its reserves, however, and it is important to note that holding and using crypto always entails a degree of risk.

Q: What is Tether used for?

A: Like other cryptocurrencies, people can use Tether to send or receive money or payments. Tether works well to convert between digital and fiat currencies. Also, you can opt for Tether when you want to hold digital currency, but avoid the volatility of other cryptos.

Q: Why would anyone buy Tether?

A: Although trust in Tether is not what it used to be, it is still considered a liquid, reliable, and stable option. As a result, it is still in widespread use.

Q: How is Tether always $1?

A: Tether is always $1 because it is pegged directly to cash and cash equivalent reserves.

Q: Who can use Tether?

A: Anyone can use Tether, including individuals and businesses. If you need a non-volatile crypto token to hold or to send or receive digital funds, then Tether may be a suitable fit for your requirements.

Tether coin is the most popular and controversial stablecoin, a cryptocurrency tied to a stable asset such as gold or units of a fiat currency. In addition to bringing the innate stability of fiat currencies to the market, Tether aims to offer easier and faster currency conversion and streamlined handling of digital payments on a global scale.

Tether News: Read the latest news about Tether here.

The post Tether appeared first on Cryptonews.

Luckily for you, this guide will tell you everything you need to know about Binance Coin, including the current Binance Coin price, a historical analysis of this coin, and much, much more.

Binance Coin Price

As you can tell from the chart above, Binance Coin price has fluctuated over the years. The coin was virtually worthless when it was launched back in July 2017. Nearly four years later, in May 2021, Binance Coin price topped out at $690.93 per coin.

Since its peak in 2021, Binance Coin has dropped significantly in value, partly due to controversy with the coin’s founder, but we’ll cover that later. Over the past year, Binance Coin price has settled around $300.

What Is Binance Coin

Binance Coin (BNB) was launched in China in August 2017. The platform itself experienced a significant rise in popularity over the past months together with the BNB coin. Just like other cryptocurrency exchanges, Binance will match your orders to buy or sell cryptocurrencies with those of other users on its platform in exchange for the relevant fees. As the major characteristics which distinguish one exchange from another are related to the matching engine capacity, fees and the liquidity volume, Binance uses the BNB coin to make the platform more attractive for those who hold it.

Thus, the most important function of the BNB coin is to act as the fuel which powers the services the Binance exchange provides to its customers. First of all, the users on the platform can use it to pay for trading fees at various discounts. In order to be eligible for them, it is sufficient to hold BNB coins in one’s wallet with the exchange. The amount of discount is supposed to decrease over the years, ranging from 50% in the first year of the coin use, followed by 25% in the second and 12.5% in the third year. Even when the discount gets to zero in the fifth year, the coin will continue to be used as a way to manage the fee payment on the Binance platform.

Decreasing discount brings the risk of bringing down the value of the Binance coins. In order to prevent this depreciation and maintain a stable price for the BNB, its creators committed to periodically destroying (or “burning”) some of these coins in order to reduce their total supply until 50% of the total BNB supply (100 million) is burned.

As of September 2018 there are 95 million BNB in circulation. At the same time, the coin’s market capitalization stands at USD 915 million, with the historically highest value being just above USD 2 billion dollars. While Binance coin is closely related to the exchange it runs on, it is being traded on competing exchanges such as CoinSwitch, Lbank, and others.

In addition to facilitating its native network operation, the BNB coin can be used for investing in initial coin offerings (ICOs) which are part of the Binance’s Launchpad program. Upon an ICO’s end, new coins will be instantly listed on Binance to speed up the linking between the platform and ICOs. Moreover, Uplive, a mobile livestreaming platform, supports BNB to buy virtual gifts.

In April 2019, Binance launched the Binance Chain as the public blockchain which is hoped to utilize the platform’s coin to assist with the management of assets on it. Following this, Binance Coin was moved from the Ethereum blockchain to the Binance Chain.

How Does Binance Coin Work?

As we just explained Binance Coin is pretty much a typical cryptocurrency, despite being directly linked to a major crypto exchange platform. Being a typical crypto means that Binance Coin is a decentralized, digital currency that exists using blockchain technology. Originally, Binance Coin used the Ethereum blockchain network. It now uses the Binance chain blockchain, which is Binance’s own dedicated blockchain.

The managers of Binance Coin maintain the coin’s value by using 20% of their profits every quarter to “burn” (i.e. to permanently pull out of circulation) unsold Binance Coin.

Who Created Binance Coin?

Binance Coin was founded by Chinese-Canadian billionaire Changpeng Zhao, who is also the founder of Binance. Zhao actually sold Binance Coin as a way to raise capital for his brand new crypto exchange platform, Binance. Today, Binance and Binance Coin are incredibly popular, but they aren’t without controversy.

Zhao resigned from his position as Binance CEO after pleading guilty to money laundering, unlicensed money transmitting, and other charges brought against him by the US government under the Bank Secrecy Act and the International Emergency Economic Powers Act.

These incidents have put many people off using Binance or buying Binance Coin. With that being said, many investors still have confidence in Binance Coin, especially since Zhao is now out of the picture at Binance.

Binance Coin Market Performance

Six years ago, some of the most savvy crypto investors might be stumped if you asked them “What’s a Binance Coin?” Now, even the most basic crypto fans will be able to tell you what are Binance Coins and why you should or should not invest. Don’t believe us? Just take a look at the Binance Coin market cap.

Binance Coin is the fourth biggest coin in the world, according to market cap. At time of writing, the Binance Coin market cap is $47.6 billion. In 2021, Binance Coin had the third-highest market cap. It’s a ways off third now, but our crypto experts would not be surprised if Binance Coin regained its bronze medal spot in the next couple of years.

How to Buy and Store Binance Coin

Getting your hands on Binance Coin is as easy as buying any other of the best cryptocurrencies on the market. If you’re not familiar with buying crypto, read our step-by-step guide below on how to buy Binance Coin.

1. Open an account with a cryptocurrency exchange platform, like Binance. The exchange will most likely have a crypto wallet for you to use. If you are comfortable using that wallet, you can skip to Step 3.
2. Obtain a crypto wallet so you can store the Binance Coin and other coins you buy.
3. Verify your identity with your cryptocurrency exchange platform. Doing this will give you access to all your exchange’s best features, which is necessary to be a smart crypto investor.
4. Deposit money into your crypto exchange account.
5. Purchase Binance Coin.
6. If you are okay using your crypto exchange platform wallet, you’re done. If you chose to use an external, third-party wallet, you need to send your Binance Coin to that wallet.

Those six steps, or four, depending on the method you used, are all you need to do to buy and store Binance Coin. If you ever feel like selling Binance Coin, you just need to do the process in reverse. Send your Binance Coin to your crypto exchange, sell it on the market, and withdraw your fiat currency.

The Future of Binance Coin

Just a few months ago, many people predicted both Binance and Binance Coin would not be around for much longer. In case you weren’t paying attention then, those times were the peak of the most recent crypto crash. Sam Bankman-Fried and his crypto exchange FTX were under fire from the federal government, and, as we discussed above, Binance’s founder, Changpeng Zhao was also under attack. As a part of the investigation into Zhao, Binance was fined over $4 billion.

There were, and still are, loads of fears about whether Binance, and Binance Coin by association, would survive that crash and the major fine. So far, Binance has survived those things and every other challenge thrown at it. This has led some people to say comparing Binance to FTX is like comparing apples to oranges. We agree somewhat, but we also would recommend caution until you’re sure the fallout of the Zhao case is over.

Risks and Challenges

Investing in crypto is always a risky venture. The industry is largely unregulated and very decentralized. Additionally, each coin has its own risks and challenges associated with it. The risks of investing in Binance Coin have been discussed all throughout this comprehensive Binance Coin guide, but it’s worth explaining again here clearly.

Simply put, some industry experts have predicted that Binance will be the next major crypto exchange to go under. This means bad news for Binance Coin. With that being said, the fact Binance has survived so far has many other experts saying that it’s actually one of the more solid exchanges.

With such uncertainty out there about Binance and Binance Coin, it’s going to take a long time for Binance Coin to ever reach the levels of a coin like Bitcoin or the other coins ahead of it on the market cap list.

Regulatory and Legal Aspects of Binance Coin

Because there are so few laws on the books governing cryptocurrency, every coin is at risk of being devalued by sudden regulatory changes. This is especially the case with Binance Coin.

Binance Coin is already on the US government’s radar thanks to the recklessness of Binance’s founder and former CEO, Changpeng Zhao. While Binance is still legal in the US, the company was fined $4 billion by the federal government. If there are any more major changes to the US government policy regarding crypto or any other financial investigations into crypto, there’s a strong chance Binance will be affected.

Community and Ecosystem

Binance Coin has always been a coin used by the real crypto diehards. The coin and its associated crypto exchange, Binance, were founded by crypto enthusiasts from the ground up back in 2017. An initial coin offering of just $15 million laid the groundwork for what would go on to become the biggest crypto exchange in the world.

As more and more people made money buying Binance Coin, more and more casual crypto fans bought in. Despite this, Binance Coin is still far more popular with hardcore crypto investors than casuals. We don’t see this changing any time soon, especially with all the negative press around Binance in recent months.

Comparing Binance Coin to Other Cryptocurrencies

When you look at just market cap, Binance Coin is definitely one of the major cryptocurrencies in the world. Binance Coin’s $47.6 billion market cap is only bettered by Bitcoin ($836.2 billion), Ethereum ($304.6 billion), and Tether ($94.9 billion).

While Binance Coin is popular according to market cap, its reputation has cratered recently. Most crypto investors would view Bitcoin, Ethereum, and stable coins like Tether and USD Coin as safer investments than Binance Coin right now.

FAQs

This guide has covered the basics of Binance Coin, such as the current Binance Coin price, its history, and some of the concerns about this coin’s future. To sum up what we’ve covered, here are some of the frequently asked questions about Binance Coin.

How much is 1 Binance Coin to buy?

At time of writing, Binance Coin is trading for $314.34 per coin.

Is Binance Coin actually safe?

Relatively speaking, yes. Binance Coin is one of the biggest, and therefore most stable, cryptocurrencies on the market. With that being said, no cryptocurrency is a 100% safe investment, and, the charges against Binance former CEO and the huge fine levelled against the company makes Binance Coin less safe than other top coins, like Bitcoin.

What is BNB?

BNB is the trade symbol for Binance Coin. If you see someone in the crypto world talking about BNB, they are talking about Binance Coin.

Where can I buy Binance Coin?

Despite the name, you can buy Binance Coin at crypto exchanges besides Binance. Binance Coin is available on all the best cryptocurrency exchange platforms.

The post Binance Coin appeared first on Cryptonews.

In this detailed guide, we’ll give you live charts, news, and important details about Toncoin, so you’re always up to date on the market and price movements. 

Toncoin Price

You can check out the latest Toncoin (TON) price in the graph above. 

To put TON’s current price into perspective, it’s important to explore its historical price trends. Looking into Toncoin’s performance over different timeframes provides valuable insights into its overall market behavior. This will give you a better idea of whether TON is a good investment for you or not.

Toncoin’s value is connected to a wide range of factors – much like with other crypto coins. Don’t worry though, we’ll dive deeper into these factors later on to help you understand what affects TON’s fluctuating price.

Understanding this is key for any investor, as it enables you to make informed decisions based on the broader market. Stay tuned as we dig into Toncoin’s pricing dynamics. But first, let’s learn more about TON.

What is Toncoin?

Toncoin represents a new entry into the world of cryptocurrencies – launching in 2018. Being a newly established coin, it offers a unique set of features that sets it apart from other coins.

Toncoin, short for “The Open Network coin,” is a cryptocurrency designed to facilitate secure and efficient transactions within a decentralized ecosystem. It was initially created by Telegram – the popular instant messaging application. Toncoin operates on a decentralized network (the blockchain), using advanced cryptographic techniques to ensure the integrity and privacy of transactions – just like other crypto coins.

Toncoin is different to other crypto coins because it was built by Telegram, who raised $1.7 billion in private funding to launch their project. Telegram has integrated the Toncoin wallet into its messaging app, which caused the price of TON to skyrocket by 80% in 12 months. TON also allows staking, which is a great way to earn interest in the form of additional coins.

How Does Toncoin Work?

At its core, Toncoin uses blockchain technology. The blockchain is a decentralized and distributed ledger that records all transactions across a network of computers. This blockchain serves as the backbone of Toncoin, which ensures transparency, privacy, and security in all transactions.

The blockchain consists of a chain of blocks, with each block containing a list of transactions. These blocks are linked and secured through advanced cryptographic techniques, making it practically impossible to alter past transactions.

In addition to blockchain, Toncoin uses consensus mechanisms. These are the protocols that govern how transactions are validated and added to the blockchain. Common consensus mechanisms include Proof of Work (PoW) and Proof of Stake (PoS). These mechanisms ensure agreement among network participants on the validity of transactions, contributing to the overall integrity of the entire Toncoin network.

In terms of use cases, Toncoin goes far beyond just being used on Telegram. It extends its usability to:

• Peer-to-Peer Transactions
• Smart Contracts
• Decentralized Finance (DeFi)

Who Created Toncoin?

Toncoin’s journey began with the visionary team at Telegram – the famous instant messaging app. However, before it was launched the Telegram team abandoned TON and it was momentarily left dead in the water. The reason is that the US Securities and Exchange Commission (SEC) sued Telegram over Toncoin

Later on, a group of developers who aren’t affiliated with Telegram picked the project up and fully launched the coin. The new development team behind Toncoin, Newton, brings a wealth of experience and expertise in blockchain technology, cryptography, and financial systems. This ultimately led to the success of TON in the crypto market.

Toncoin Market Performance

Looking into Toncoin’s market performance is an important aspect of evaluating its position and relevance within the broader cryptocurrency market. Let’s dive into the numbers below.

Toncoin’s market capitalization is currently at $7.63B. Market cap is a fundamental indicator of its overall value and standing in the cryptocurrency market. It represents the total market value of all Toncoins in circulation. It’s nowhere close to the biggest coins like Bitcoin and Ethereum, but it’s a decent market cap.

The trading volume of Toncoin is currently at $96.17M. The trading volume provides insights into the level of activity within TON’s market. It represents the total number of Toncoins traded within a specific timeframe (in this case, 24 hours). High trading volumes indicate liquidity and interest among investors, contributing to the cryptocurrency’s market vitality.

How to Buy and Store Toncoin

If you want to buy Toncoin, understanding the process of purchasing and securely storing this cryptocurrency is critical. Below, we provide a concise guide on where to buy Toncoin and how to store it securely.

Toncoin can be bought through various cryptocurrency exchanges. These platforms facilitate the buying and selling of digital assets, including Toncoin. Some popular exchanges that support Toncoin transactions include Coinbase, Binance, and Kraken. Make sure to do thorough research before you choose an exchange to trade with.

Here’s how to buy Toncoin step-by-step:

1. Create an Account: Start by creating an account on a reputable cryptocurrency exchange like Coinbase.
2. Verify Your Identity: Most exchanges require you to complete identity verification to comply with regulatory standards. If they dn’t ask for verification, do more research into the exchange first.
3. Deposit Funds: Deposit funds into your exchange account using the preferred payment method (credit card, bank transfer, etc.).
4. Purchase Toncoin: Once your account is funded, navigate to the trading section and place an order to buy Toncoin.
5. Transfer to a Wallet: For better security, consider transferring your Toncoin to a cryptocurrency wallet after purchasing. This reduces the risk associated with keeping assets on an exchange.

In terms of storing Toncoin securely, you’ll need to use cryptocurrency wallets. Wallets come in two main types:

• Hot Wallets: Connected to the internet, hot wallets are convenient for frequent transactions but may be more susceptible to online threats.
• Cold Wallets: Offline are physical storage devices that are less vulnerable to hacking and are suitable for long-term storage of Toncoin.

The Future of Toncoin 

Toncoin is set for an exciting future, driven by upcoming developments and a promising roadmap that positions it as one of the most exciting crypto tokens for 2024. 

Toncoin’s recent integration with Telegram is a game-changer. With over 700 million monthly active users, Telegram provides a vast user base for Toncoin to tap into. This integration is not only about numbers but also about attracting developers. Developers are drawn to platforms with a substantial user base, and Telegram’s integration with Toncoin is expected to incentivize more developers to migrate from other blockchains. As Toncoin attracts top developers, it positions itself as a strong contender in the DeFi space, especially during a period when other blockchains, such as Solana, are facing challenges.

Toncoin’s bullish momentum has been a positive as the broader crypto market emerges from a bearish phase. Analysts predict the end of the crypto winter, and Toncoin’s current surge is well-timed to capitalize on this shift. Price predictions suggest that Toncoin could have potential gains exceeding 50% in 2024. Beyond token price gains, Toncoin is experiencing a surge in trading volume, increased wallet holdings, and heightened developer activity. These indicators bode well for the long-term growth of the Toncoin ecosystem.

Toncoin investors also have an additional avenue for profit through $TON staking. Staking involves locking up $TON tokens to earn interest in the form of additional $TON tokens. This not only provides a passive income stream for investors but also contributes to the overall project growth. Notably, $TON staking is accessible through major crypto exchanges, making it a user-friendly option for a wide range of investors. As Toncoin continues to evolve, staking offers investors an opportunity to participate in the project’s success without the need for complex validation processes.

Risks and Challenges

Investing in Toncoin, like any other cryptocurrency, comes with a set of potential risks and challenges. As an investor, it’s important for you to fully understand these risks before you make your investment.

Firstly, market volatility. Cryptocurrency markets are known for their inherent volatility. Toncoin’s price can experience significant fluctuations within short periods. You should be prepared for sudden changes in price and consider your risk tolerance before entering the market.

There are also constantly evolving regulations for cryptocurrencies. Changes in regulations can impact Toncoin’s legality, adoption, and market dynamics. Regulatory uncertainties may create challenges for investors, and staying informed about developments in the regulatory space is essential.

As a blockchain-based cryptocurrency, Toncoin is also subject to technological risks. This includes potential vulnerabilities, bugs, or issues in the underlying technology. Be aware of the project’s approach to security, the frequency of updates, and the responsiveness of the development team to address technical challenges.

The success of Toncoin relies on its adoption and ability to differentiate itself in a competitive market. Factors such as community support, partnerships, and real-world use cases play a role in Toncoin’s adoption. Additionally, competition from other cryptocurrencies with similar features may impact Toncoin’s market share. These are important elements to keep an eye on if you’re investing in TON.

Regulatory and Legal Aspects of Toncoin

The regulatory status of cryptocurrencies varies widely around the world. Toncoin, being a decentralized digital asset, is subject to different regulatory approaches in different jurisdictions. Some countries embrace and regulate cryptocurrencies, while others impose restrictions or outright bans.

For users and businesses involved with Toncoin, compliance with local laws and regulations is essential. This includes adhering to anti-money laundering (AML) and know-your-customer (KYC) requirements, tax obligations, and any specific regulations related to the use of cryptocurrencies in a particular jurisdiction.

Toncoin faces the challenge of staying compliant with evolving regulatory frameworks. Changes in regulations may require adjustments to the project’s features or user interactions. Being flexible in this regard is critical to the project’s growth and continued success.

Comparing Toncoin to Other Cryptocurrencies

The crypto market is extremely competitive. As you may know, there are thousands of coins by now, with new ones being launched all the time. Since Toncoin is still relatively new and growing, it would be pointless to compare it to a giant like Bitcoin. But, just for your reference, we’ll compare it to Ethereum below. Then we’ll compare it to coins in a similar playing field.

Toncoin vs. Ethereum

As you can see, in the table above, Toncoin is nowhere near Ethereum. But when looking behind the numbers we can still pinpoint some key differences between the two.

Toncoin aims to achieve higher throughput compared to Ethereum, potentially enabling faster transaction confirmation times and lower fees. Toncoin also wants to provide a developer-friendly environment with a set of tools and features to facilitate the creation of decentralized applications (DApps).

Ethereum has a longer history and a more mature ecosystem with a vast number of decentralized applications and smart contracts. Toncoin will face the huge challenge of catching up in terms of network maturity and adoption. Ethereum also has a larger developer and user base, contributing to a more extensive ecosystem. 

Toncoin vs. Binance Smart Chain (BSC)

Binance Smart Chain has gained traction with a rapidly growing ecosystem of decentralized applications and projects. BSC has more potential for growth with a much larger market cap. However, Toncoin is the more popular crypto at the moment, with a massive $94m advantage in trading volume at the moment. 

Toncoin vs. Polkadot

Polkadot has gained attention for its extensive ecosystem and support for parachains. Its market cap is nearly $2B higher than that of Toncoin, and at the time of writing, it’s also trading at a higher volume than TON. These numbers may have changed, so make sure to check the live charts when comparing these crypto coins.

FAQs

How much is 1 Toncoin to buy?

The value of 1 Toncoin can vary based on market conditions and demand. It’s recommended to check reputable cryptocurrency exchanges for real-time pricing.

Is Toncoin actually safe?

Toncoin prioritizes security, using advanced cryptographic techniques and decentralized technologies. However, like any investment, it carries inherent risks. Always follow best practices for securing any digital assets, such as using secure wallets and enabling two-factor authentication.

Where can I purchase Toncoin?

Toncoin can be purchased on various cryptocurrency exchanges. Popular platforms such as Binance, Coinbase, and Kraken often offer Toncoin trading pairs. Make sure to choose a reputable exchange, complete the necessary verification processes, and follow secure transaction practices.

What distinguishes Toncoin from other cryptocurrencies?

Toncoin was initially developed by Telegram. The coin saw a massive growth spurt when it was integrated with the popular messaging app. It’s still on the rise with plenty of potential expected throughout 2024.

How can I store Toncoin securely?

To store Toncoin securely, consider using reputable cryptocurrency wallets that support Toncoin. Hardware wallets like Ledger or software wallets like TON Surf Wallet can provide secure storage options.

The post Toncoin appeared first on Cryptonews.

Shiba Inu Price

As of March 2024, Shiba Inu trades at around $0.000009 per unit. The Shiba Inu price today is down by over 22% compared to its March 2023 price. Interestingly, the late 2023 resurgence in the broader crypto market did not have a positive impact on the price of SHIB, as it did other cryptocurrencies, perhaps indicating low demand for SHIB.

Factors Influencing Shiba Inu’s Price

• Market Sentiment: SHIB’s price often reacts to investors’ sentiment influenced by news, social media and overall market conditions. Therefore, positive sentiments translate to price increases and vice-versa.
• Cryptocurrency Market Trends: The general market trend is also a huge determinant of SHIB’s price movement. In a generally bullish market, the price tends to move upward, while it moves downward in a bearish market. 
• Adoption and Utility: With increased adoption comes upward price movements. The same goes for utility, as utility drives demand, and consequently a price increase. 
• Partnerships and Collaborations: Collaborations help shine a spotlight on projects and draw new users and investors to the ecosystem. 
• Project Updates and Roadmap: Updates about project development can boost investor confidence and thereby cause a price increase. 
• Whale Activity: Whales (large holders) can cause significant price movements by a single transaction. If a whale sells off their holdings, it will cause a price dump, and if a whale buys a large amount of SHIB, the price will likely increase. 

What Is Shiba Inu?

So, what is SHIB? Shiba Inu (SHIB) is a community-driven altcoin built on the Ethereum platform in 2020. It adopts a deflationary model, burning tokens with each transaction to create scarcity in supply. Inspired by Dogecoin (DOGE), SHIB was launched as a light-hearted meme coin, exploring community control over a cryptocurrency.

Meme coins are cryptocurrencies that are created in relation to personalities, trends or viral moments that gain popularity from social media memes. Meme coins typically gain value through notoriety and are often launched as a community-led inside joke, as opposed to a serious digital product with utility. While Shiba Inu features a comical depiction of the Japanese hunting dog as its mascot, it is more than simply a humorous project.

Community and Ecosystem

As a community-driven ecosystem, Shiba Inu relies on user involvement for growth. Governed by decentralized decision-making, its community, which as of January 2024 consists of 145,922 Discord members, 143,165 Telegram subscribers and 3.7 million Twitter followers, actively determines the project’s future. 

This democratic approach, in which all token holders have a right to vote on decisions that shape the project’s direction and provide feedback, fosters democracy. The community members are also the main proponents of Shiba Inu’s marketing and promotion in order to attract new participants to the ecosystem.

Use cases and applications of Shiba Inu

Shiba Inu offers diverse range features and products within its ecosystem, including:

• ShibaSwap: A decentralized crypto exchange. 
• Shibarium: A layer 2 EVM network built to address scalability and high transaction cost issues on the Ethereum blockchain.
• Shiboshis and Shibacals: A collection of 10,000 Shiba Inu-generated non-fungible tokens (NFTs) (Shiboshis) and linked real-world collectibles (Shibacals).
• Shib the Metaverse: A hub of entertainment, business and gaming, featuring 100,595 plots of land.

Shiba Inu has grown beyond its origin as a meme coin over time, evolving to offer a range of practical applications:

• Medium of Exchange: SHIB can be used as a medium of exchange for transactions and purchases.
• Staking on ShibaSwap: Holders can stake tokens to earn reward tokens.
• Governance Participation: Holding SHIB grants participation in project decision-making. 
• Community Engagement and Philanthropy: Involved in charitable events funded by SHIB, such as the Shiba Inu Rescue Association’s dog rescue campaigns.

How Does Shiba Inu Work?

The operational framework of Shiba Inu is unique, and investors should understand how Shiba Inu works.

Blockchain

Shiba Inu is built on the Ethereum blockchain, utilizing smart contracts for various functionalities such as token transfers, staking and interactions within ShibaSwap. In this way, Shiba Inu’s underlying technology enables the development, expansion and security of the ecosystem.

Consensus mechanism

Ethereum employs the Proof-of-Stake (PoS) consensus mechanism, in which network validators verify new data blocks. These validators must create, verify and vote on the validity of transaction blocks for an Ethereum transaction to be successful. 

Tokenomics

The community uses dog-related terminology, relating to its name, for behaviors and activities within the network. For instance, tokens can be used to ‘dig’ (provide liquidity), ‘bury’ (stake tokens) and ‘fetch’ (exchange). 

The Shiba Inu ecosystem consists of three tokens:

• Shiba Inu (SHIB): Shiba Inu’s native currency. It is the foundation of the project and complies with the standard of all Ethereum-based tokens to ensure compatibility within the Ethereum ecosystem. 
• Leash (LEASH): Leash is a reward token for the ecosystem’s community members, and is earned through diverse methods of participation in the network.
• Bone (BONE): Originally designed as the ecosystem’s governance token, and earned from staking, Bone is now used in Shibarium to reward both validators who stake (‘bury’) their tokens and delegators who provide validators with voting rights.

Who Created Shiba Inu?

Shiba Inu was created in August 2020 by a pseudonymous individual or group known as ‘Ryoshi’. It did not have a clear roadmap to begin with, driven instead by the potential thoughts and ideas of its community. The Reddit community known as the ‘SHIBArmy’ embraces the guiding principles of creating something from nothing, and a love of Shiba Inu dogs.

Shiba Inu History

Launched in August 2020 by the anonymous Ryoshi, Shiba Inu has set its sights early on challenging Dogecoin by branding itself as the “Dogecoin killer.” From August 2020 onwards, believers of the project ended up creating a large network of developers, producers, meme creators, designers, mods, marketers, admins, social media influencers, and hodlers. Over time, Shiba Inu expanded its influence until the token’s value was difficult to ignore.

On May 13, Vitalik Buterin, who was entrusted with a large wallet of these tokens, with which he promptly donated 50 trillion SHIB (worth over USD 1 billion when it was executed) to a crypto relief fund in India. This “burning” event was lauded by the Shiba Inu developers as a great move, justifying their decision to give the keys to Buterin.

Later in the year, an anonymous whale purchased 6.2 trillion SHIB, or SHIB with the equivalent value of USD 44 million, the price ballooned by 55%. What may have also spurred this jump was the fact that a partner at a hedge fund circulated the whispers of a new project brewing in the SHIB ecosystem. This project, which was rumored to be an exchange, became the talk of the community as well as those looking at the growth of the Shiba Inu Token.

As a result, Shibaswap was born, functioning as a decentralized exchange for DIG (liquidity), BURY (staking), and SWAP tokens, generating WOOF returns in a passive income system. A non-fungible token (NFT) drop of unique Shiboshi collectibles has also been issued. Rather than the project staying as a cryptocurrency like its counterpart DOGE, the SHIB token has expanded to several kinds of decentralized projects, making bullish investors have more reasons as to why they believe that it’s the superior shibe on the block.

Shiba Inu Team

As a community-based token, Shiba Inu Token is run by the so-called Shib Army, a group of SHIB enthusiasts who believe in crypto and want to push the extent of its price and influence. Since the contributors cause the coin to grow, what it becomes is dictated by its stakeholders. SHIB’s anonymous developers have all worked together to create an ecosystem that has given rise to a token, related NFTs, decentralized exchange, and who knows what other projects are currently in the works. As far as the general community is aware, the developers are a multi-faceted bunch capable of generating endless ideas for projects.

Shiba Inu Market Performance

Considering SHIB’s market performance as of January 2024, SHIB is the 18th-largest cryptocurrency by market capitalization, with a figure of around $5.31bn. As a mid-cap cryptocurrency, SHIB is generally considered to be less risky than small-cap alternatives, but with more upside potential than large-cap coins, such as DOGE. 

How to Buy and Store Shiba Inu

You can buy Shiba Inu on almost all cryptocurrency exchanges (centralized and decentralized), based on your preference. 

Centralized Exchanges

Buying on a centralized exchange is pretty straightforward: 

• Download the exchange’s mobile app or open the website.
• Create and fund an account.
• Find the SHIB/USDT trading pair or any SHIB pair of your choice.
• Buy SHIB.

There are many exchanges upon which it is possible to purchase SHIB, including Binance, Kucoin, MEXC, Gate.io, Bybit, Bitget and OKX.

Decentralized Exchanges

Investors should also consider how to buy SHIB from a decentralized exchange. ShibaSwap is Shiba Inu’s native decentralized exchange, but SHIB is available on many others, such as Uniswap, VVS Finance, Butter.xyz and ZigZag.

• Download a wallet app such as MetaMask, Trust Wallet, Coinbase or Argent, or use the web version.
• Create and fund your wallet.
• Choose an exchange to buy from, and then open the exchange’s website in your wallet’s browser.
• Select the coin you have in your wallet, and choose to swap it for SHIB. 
• Wait for the transaction to go through. Your SHIB will now be in your wallet.

Safe wallet storage

After buying your SHIB, it is time to store it safely. The best way to store your coin for a long period of time is in a hardware wallet. Hardware wallets, known as cold wallets, are not connected to the internet and are considered the most safe and secure wallet. A hot wallet offers faster and easier access for active traders.

The Future of Shiba Inu 

In early 2024, Shiba Inu’s development team revealed the vision for the ecosystem’s future development. As outlined in a tweet, Shiba Inu is pivoting towards digital identity innovation. In partnership with the Web3 startup D3 Global, SHIBDentity plans to introduce a .SHIB top-level domain name for every community member, for use across various platforms, including email, online retail and Dapps.

Risks and Challenges

As with any cryptocurrency, it is important to consider the potential risks and challenges associated with investing in Shiba Inu:

• Extreme Price Volatility: SHIB’s price is extremely volatile and has recorded price swings both up 300% and down 99%. The low price per token is a concern for many, as even throughout periods of impressive price growth, SHIB’s price has never reached $1. Investors can purchase millions of SHIB tokens with just a small amount of capital, meaning that at scale, losses could be extremely large.
• Limited Utility: While the Shiba Inu ecosystem is diverse, SHIB has limited utility outside of this community and lacks real-world applications.
• Ethereum Dependency and Security Risks: Shiba Inu’s reliance on Ethereum exposes it to potential risks inherited from the platform, including bugs or attacks.
• Regulatory and Legal Aspects of Shiba Inu: The legal and regulatory environment surrounding cryptocurrencies is constantly evolving, and jurisdiction between different countries varies. Unfavorable regulatory changes could negatively impact the price of SHIB.

Comparing Shiba Inu to Other Cryptocurrencies

Comparative analysis can help investors make well-informed decisions about their portfolios. Below, we consider how Shiba Inu compares to other community-driven meme coins, including Dogecoin and Bonk.

Shiba Inu vs Dogecoin (DOGE)

Dogecoin relies on its community for popularity, with Elon Musk’s influence contributing to its draw. Low transaction fees and infinite circulation are also unique features that can appeal. Dogecoin has a larger market capitalization than Shiba Inu as of January 2024 ($11bn compared to $5bn, respectively). This, combined with a higher token value, emphasizes DOGE’s current dominance in the market.

Shiba Inu features a deflationary model, with each transaction burning tokens, creating scarcity in supply. The Shiba Inu ecosystem is highly innovative, with a dedicated and engaged community of users regularly developing new products.

Despite lesser market maturity, Shiba Inu rivals Dogecoin as a popular meme coin, with some in the community referring to it as ‘the Dogecoin killer’.

Shiba Inu vs Bonk (BONK)

Bonk, on Solana, emerged from a stealthy airdrop and integrated into Solana Dapps, with products such as BonkBot having thousands of active users and generous airdrops.

Both Bonk and Shiba are major meme coins, but SHIB has a more substantial market cap than Bonk’s $662m figure, and a more established position in the crypto market. Shiba Inu has its own blockchain, Shibarium, which has the potential to elevate the entire Shiba Inu ecosystem. Bonk’s value is more tied to Solana’s performance, and it has faced criticism for limited utility and product offering. 

BONK is a small-cap coin, so it perhaps has more untapped potential for a substantial price increase. However, being relatively new, BONK lacks the maturity and credibility associated with SHIB’s longer history, potentially impacting its long-term appeal. 

FAQs

How much is 1 Shiba Inu to buy?

As of January 2024, a unit of Shiba Inu costs around $0.000009. Investors can pick up considerable amounts of SHIB for a very small amount of capital.

Is Shiba Inu actually safe?

The safety of your SHIB depends on how you store it. Refer to the ‘How to Buy and Store Shiba Inu’ section above to find out the best way to keep your SHIB safe.

How does the burning mechanism work for Shiba Inu tokens?

Shiba Inu employs a burning mechanism, where some SHIB tokens are permanently removed from circulation to increase scarcity.

The post Shiba Inu (SHIB) appeared first on Cryptonews.

Designed as a layer-2 (L2) solution to solve this problem, Polygon (MATIC) was built to help scale the main Ethereum blockchain by enhancing the scalability, interoperability, flexibility and security of various crypto projects.

Whether you want to learn more or are considering investing yourself, this guide explores how Polygon works, examines its potential risks, and offers a MATIC price analysis to help you make better-informed decisions. 

Polygon price analysis

The Polygon price today (as of early February 2024) is around $0.8 per token. The current MATIC price is down by around 34% compared to its February 2023 price, despite bullish trends in the broader crypto market starting from late 2023.

Some experts believe that Polygon’s struggles resulted from MATIC investors exiting the market. However, more optimistic Polygon price predictions exist among market analysts, some of whom suggest that the Polygon price fall is merely a result of a market correction.

It is important to note that despite the current Polygon price situation, the altcoin has experienced an impressive run in the past, reaching an all-time high of around $2.92 in December 2021. While the price at present is far off, with a bull run expected in 2024 post-Bitcoin halving, it is worth considering the factors that might influence MATIC’s price.

Factors influencing Polygon’s price

Like other cryptocurrencies, the crypto market volatility is the most significant reason for the rise and fall of MATIC’s price. However, other factors influencing the coin’s price include:

• Market sentiment: How investors feel about a particular coin influences its value. If they are optimistic, then the affected coin will experience a price surge due to the prevailing bullish sentiment. Conversely, investors’ lack of confidence will result in a bearish sentiment. For instance, when Polygon laid off about 19% of its workforce in February 2024, the news diminished investor confidence in the project and the coin’s price fell. 
• Strong competition: Another reason why Polygon is struggling is because its primary feature is to help other platforms scale and process transactions faster while charging lower fees. However, other L2 solutions such as Arbitrum provide stiff competition for the Polygon network. 
• Demand and supply: Finally, the demand and supply forces are other significant Polygon price influencers. A decline in Polygon’s demand will result in a subsequent price fall. This is because more MATIC tokens will be in circulation, making it less valuable. 

Polygon market performance

Analyzing Polygon’s market performance can help you make informed decisions when investing in the coin. 

Although Polygon aims to improve upon Ethereum, it has never overtaken ETH in terms of market performance. According to data from CoinMarketCap, while Ethereum is the #2 cryptocurrency by market capitalization, with a figure (as of February 2024) of around $284bn, Polygon ranks #14, with a market cap of around $7bn. Comparatively, major Polygon competitors such as Solana (SOL) and Cardano (ADA) also rank higher, with market cap values of around $43bn and $18bn, respectively. 

Despite this, Polygon remains among the top-ranking coins by market capitalization and is still one of the most traded and valuable altcoins on the market. 

What is Polygon (MATIC)? 

What is Polygon? Launched in 2017, Polygon is a cryptocurrency and blockchain platform. Designed as an L2 scaling solution on the Ethereum network, Polygon aims to address the limitations of Ethereum. It serves as a scalable and cost-effective solution for Ethereum-based projects that face challenges related to transaction speeds and high gas fees.

Polygon runs parallel, or as a ‘side chain’, to the main Ethereum blockchain. Users can bridge crypto from Ethereum to Polygon, and subsequently interact with the wide range of dApps that were once exclusive to Ethereum. Transaction processing on Polygon is notably fast, with an average block processing time of 2.1 seconds.

So, what is MATIC? MATIC tokens govern and secure the Polygon network while covering transaction fees.

How does Polygon work?

Essentially, Polygon allows Ethereum-based apps and projects to leverage its blockchain in order to improve upon their own scalability, flexibility and security.

Polygon is composed of four layers:

• Ethereum layer: For transaction finality, dispute settlement, staking and relaying messages.
• Security layer: For ensuring the validity of Polygon blockchains.
• Network layer: Each blockchain has its own consensus mechanism.
• Execution layer: For executing the transactions agreed upon by the first three layers.

Modified proof-of-stake consensus mechanism

Similarly to Ethereum, Polygon uses a proof-of-stake (PoS) consensus mechanism to process and validate transactions. The PoS mechanism that Polygon uses, however, is modified, and is known as scalable PoS architecture. 

Instead of using human validators, the network requires users to stake their MATIC tokens in order to validate transactions with their nodes. The blockchain rewards successful validators with new MATIC tokens.

The modified consensus model makes it more scalable, cheaper and faster than Ethereum. As a result, it supports thousands of dApps.

Polygon uses multiple approaches to scaling, offering a multichain ecosystem. Polygon supports two types of chains: stand-alone chains, which are compatible with Ethereum, and secured chains, which utilize professional validators for added security.

Secured chain

Polygon uses a Commit Chain, which is a PoS chain, modified off of Ethereum’s consensus mechanism. This operates adjacent to the Ethereum mainchain. It batches and submits transaction data to Ethereum, thus benefiting from the security provided by Ethereum. Polygon calls this a secured chain, as it uses Ethereum validators and benefits from a high level of security.

Standalone chain

Standalone chains are also offered by Polygon. These are side chains with their own pool of validators. They can be enterprise chains or application-specific blockchains. Polygon’s PoS sidechain accelerates transactions and minimizes fees through a network of validators, with finalization occurring on the Ethereum mainchain.

Modular deployment for custom blockchains

Polygon offers modular deployment options for developers, including consensus, governance, execution environments and virtual machine implementations.

Scalability mechanisms

Polygon stands out against other L2s due to the use of multiple L2 scalability mechanisms such as Matic Plasma, ZK-Rollups, Optimistic Rollups and Validum Chains, which further enhance transaction speed without compromising security or user experience. 

Native utility token: MATIC

Despite rebranding from Matic to Polygon, MATIC is the native utility token of Polygon. MATIC is used for paying gas fees and participating in governance decisions related to protocol upgrades and network developments. Developers can pay in MATIC to use the Polygon blockchain and its development tools.

Use cases and applications of Polygon

Polygon’s use cases extend beyond trading and staking MATIC, including:

• Decentralized finance (DeFi): Some of the biggest DeFI projects are built on Polygon. It hosts some of the most popular decentralized exchanges, including Quickswap, Uniswap and SushiSwap, in addition to some popular borrowing and lending protocols, such as Aave and Meshswap.
• Web 3: Various Web3 applications exist on Polygon, including The Sandbox.
• Non-fungible tokens (NFTs): OpenSea, the largest NFT marketplace, is built on Polygon.

Who created Polygon?

The Polygon project itself was originally known as Matic Network, but was later rebranded to Polygon. Polygon Labs, the company behind the blockchain network, was created in 2017 by 10 developers. As the project can be considered a fork of Ethereum, it comes as no surprise that the group of 10 is partially composed of former Ethereum developers. Four of the most widely known co-founders are Jaynti Kanani, Sandeep Nailwal, Mihailo Bjelic, and Anurag Arjun. 

How to buy and store Polygon

Whether you want to invest in Polygon for trading purposes or stake the coin for periodic rewards, the journey begins with buying MATIC. The cryptocurrency is available on various centralized and decentralized exchanges. Follow the steps below to buy MATIC:

• Step 1: Choose a reputable brokerage and create a trading account using the website or mobile app.  
• Step 2: Complete identity verification/KYC by submitting proof of identity and address.  
• Step 3: Deposit funds using the supported payment methods, including cryptocurrencies and fiat money. 
• Step 4: Buy MATIC on the trading platform. 
• Step 5: Transfer the MATIC tokens to a self-custodial wallet.

Transferring your coins to a crypto wallet is an important security measure. Before purchasing MATIC, consider which type of wallet best suits your needs and goals.

No one wallet is fundamentally better than another. While hot wallets have the advantage of easy access and proactive management of cryptoassets, cold wallets offer more long-term security. Non-custodial wallets provide users with increased control over their assets, whereas custodial wallets that offer third-party support can be more beginner-friendly. 

Typically, cold wallets such as Trezor and Ledger are top choices among crypto investors, because they offer more robust security than cryptocurrency exchange wallets or software wallets, which are more vulnerable to online security risks.

Risks and challenges of investing in Polygon

There are no perfect investments in the financial markets. Investing in Polygon has inherent risks, which are important to consider:

• Market volatility: Polygon is a volatile cryptoasset and price predictions are merely speculative. There are no guarantees on either short- or long-term gains from investing in MATIC.
• Ethereum dependence: Polygon relies on Ethereum to function, so threats to the Ethereum network or price can bring about negative consequences for Polygon.
• Security concerns: Security is a major concern for all crypto investors. Potential security issues involve hacking, fraud or vulnerabilities in exchanges and wallets. You can increase the security of your assets by only trading on reputable exchanges, implementing two-factor authentication on your accounts, and scrutinizing the links you open on a wallet app to avoid phishing scams and hacks. 
• Competition: Polygon’s operation within a highly competitive scaling solution market makes it a high-risk investment. 
• Regulatory and legal aspects: The cryptocurrency landscape is fraught with legal and regulatory ambiguity that varies across jurisdictions. This uncertainty poses a significant challenge, as MATIC is subject to the ever-evolving crypto regulatory landscape, which can impact both utility and price.

Regulatory and legal aspects of MATIC

Regulation remains a significant influence on what happens in the crypto market. With the current regulatory landscape constantly changing and evolving around the use, classification and trading of cryptocurrencies, it can be difficult for both crypto developers and investors to operate strategically within the appropriate guidelines and frameworks.

Altcoins such as Polygon are classified as cryptocurrencies in the EU region. However, Polygon is described as an “unregistered security” by the US Securities and Exchange Commission (SEC). This ruling by the SEC halted MATIC’s recovery and journey to new market highs, as exchanges such as Robinhood delisted the coin in 2023.

Comparing Polygon to other cryptocurrencies

As a popular L2 solution built on the Ethereum network, let’s compare MATIC with competitors in the same space to see how it stacks up. 

Polygon vs Ethereum 

Ethereum is a much bigger blockchain supporting Polygon, and they operate similarly. Both platforms use the PoS consensus mechanism to validate transactions. However, Polygon offers faster and cheaper transactions, while Ethereum’s Ether (ETH) is more valuable than MATIC. 

Polygon vs Solana

Solana and Polygon are popular scalable solutions that allow other projects to connect to the Ethereum network. Both blockchains were built to offer faster transaction speeds and lower fees compared to Ethereum. However, while Solana is a layer-1 blockchain, Polygon is famous for its layer-2 infrastructure. Similarly, Polygon focuses more on providing scalable solutions for Ethereum dApps, while Solana is more of a digital currency.  

Polygon vs Cardano 

Polygon and Cardano aim to boost interoperability, scalability and security across projects on the Ethereum blockchain. However, while Polygon operates directly on the Ethereum blockchain, Cardano has its native blockchain. So, Polygon uses the native PoS consensus mechanism, and Cardano uses a unique PoS structure called Ouroboros. 

FAQs

How much is 1 Polygon?

As of February 2024, the price of Polygon was around $0.80 per token.

Is Polygon safe?

Polygon is a secure blockchain facilitating decentralized and peer-to-peer transactions. However, as it’s directly built on the Ethereum blockchain, a network issue or security breach on Ethereum can negatively impact Polygon. 

How can I buy Polygon?

The easiest way to buy and invest in MATIC is by using a reputable cryptocurrency exchange. All you need to do is create an account, fund it, and buy Polygon’s MATIC tokens.

The post Polygon appeared first on Cryptonews.

While price stability is the biggest selling point for USD Coin, there are lots of other reasons why USD Coin has quickly become one of the most commonly used cryptocurrencies in the world. We’ll cover all those reasons and more in this guide.

USD Coin Price

As you can see from the chart above, USD Coin price has remained remarkably stable since the coin launched in 2018. At its onset, USD Coin was worth exactly $1. This makes sense because USD Coin is tied to the US Dollar. Since 2018, USD Coin has reached a peak price of $1.17 and an all-time low of $0.87. Compared to other popular crypto coins, this price fluctuation is practically nothing. 

What is USDC?

USD Coin is a stablecoin operated by Centre through a collaboration with Circle and Coinbase, two major crypto companies. Stablecoins are coins whose value is tied to some other currency. In the case of USD Coin, its value is based on the value of the US Dollar. Because the price of the US Dollar doesn’t fluctuate much, the USD Coin price is able to remain stable.

USD Coin’s price stability has made it a very popular option for crypto enthusiasts who don’t want to invest in riskier coins like Bitcoin (BTC) or even more speculative coins like Dogecoin (DOGE). USD Coin is one of the most popular stablecoins and is often used for transacting online.

For clarity’s sake, we refer to USD Coin as “USD Coin” in this guide, but it’s also often referred to by its acronym “USDC.” Don’t get USDC confused with USDT, which is another popular stablecoin pegged to the US Dollar. We’ll get more into the difference between USDC and USDT later on in this USD Coin guide.

In a nutshell, USD Coin is a service to tokenize US dollars and facilitate their use over the internet and public blockchains. Besides, USDC tokens can be changed back to USD at any time. The execution of issuing and redeeming USDC tokens is ensured with ERC-20 smart contract.

Bringing US dollars on the blockchain allows moving them anywhere in the world within minutes, and brings much-needed stability to cryptocurrencies. Also, it opens up new opportunities for trading, lending, risk-hedging and more.

Who is the Team Behind The USD Coin?

USD Coin is developed by the Centre consortium, a partnership between Circle and Coinbase. The technology and governing framework are developed by Centre, while Circle and Coinbase are the first commercial issuers of USDC. Circle was founded in 2013 by the entrepreneurs Jeremy Allaire and Sean Neville and has a pretty impressive line up of authoritative individuals on board. You can view the full team behind the USDC coin on the About Circle page.

Circle is an official Money Transmitter, which makes the company an open financial book. Money Transmitters are US money service businesses that must comply with federal laws and regulations. Before the issuance of USDC, the equivalent amount of USD is with one of Circle’s accredited partners. Consequently, all USDC tokens are regulated, transparent and verifiable. Besides, Circle is known as the crypto startup backed by Goldman Sachs.

Centre went live with USD Coin in 2018. Since then, it has steadily grown in usage and popularity in the US and around the world. Today, USD Coin is one of the most popular stablecoins and a very common name in crypto circles. 

How Does USD Coin Work?

USD Coin exists on the blockchain like other cryptocurrencies, but it’s much more managed than other decentralized currencies. In order to maintain the 1:1 value compared to the US Dollar, the amount of USD Coin available on the market is heavily regulated. 

When you sell USD Coin, your coin is “burned” and moved to an inaccessible account. When you buy USD Coin with fiat currency, your currency is deposited in a regulated bank account and new USD Coin is minted.

Tokenizing USD into USDC is a three-step process:

1) A user sends USD to the token issuer’s bank account.
2) The issuer uses USDC smart contract to create an equivalent amount of USDC.
3) The newly minted USDC are delivered to the user, while the substituted US dollars are held in reserve.

Redeeming USDC for USD is as easy as minting the token, except the process is reversed:

1) A user sends a request to the USDC issuer to redeem an equivalent amount of USD for USDC tokens.
2) The issuer sends a request to the USDC smart contract to exchange the tokens for USD and take an equivalent amount of tokens out of the circulation.
3) The issuer sends the requested amount of USD from its reserves back to the user’s bank account. The user receives the net amount equivalent to the one in USDC tokens, minus all incurred fees).

Unlike the most popular stablecoin Tether (USDT), creators of the USD Coin are obligated to provide full transparency and work with a range of financial institutions to maintain full reserves of the equivalent fiat currency.

All USDC issuers are required to regularly report their USD holdings, which are then published by Grant Thornton LLP. All the monthly attestation reports can be found here.

How to Use USDC

USD Coin (USDC) is a 1:1 representation of one US dollar on the Ethereum blockchain. It’s an ERC-20 token and can be used with every app which supports the standard.

To tokenize or redeem USDC with Circle, you need to register an account, verify your identity (KYC), and link a legitimate bank account. Circle USD platform allows users to perform four core actions:

• Tokenize USD;
• Redeem USDC;
• Transfer USDC out to ERC20 compatible Ethereum addresses;
• Deposit USDC from external Ethereum wallet addresses.

Circle USDC doesn’t charge users any fees for tokenizing and redeeming services, except there is a $50 commission for incorrect and rejected bank transfers. For Coinbase USDC operations, all the standard fees apply.

A minimum USDC redemption amount is 100 USDC. The tokens are processed on business days only, and the process can take up to 24 hours.

There’s no minimum tokenization amount, and the process can take up to 2 business days.

In general, stablecoins like USDC are used to:

• Short cryptocurrencies without cashing out and make it easier to buy cryptocurrencies in the future;
• Avoid traditional financial instruments and institutions;
• Avoid hyperinflation (for people living in countries like Venezuela or Turkey);
• Send money instantly, globally, securely and at low cost;
• Purchase items in various crypto dApps, exchanges, and blockchain-based games.

USD Coin Market Performance

USD Coin is one of the most popular stable coins on the market. Compared to other stablecoins, only Tether (USDT) has a larger market cap than USD Coin. At the time of writing, USD Coin’s market cap is $7.45B. 

How to Buy and Store USD Coin

Buying USD Coin is a super easy process. If you’re familiar with crypto at all, this process will look familiar to you. If you’re not, don’t worry. See our comprehensive guide below to learn all you need to know about buying USDC. 

1. Create an account with a cryptocurrency exchange platform. If the exchange has a crypto wallet service that you are comfortable using, skip Step 2 and go to Step 3. 
2. Open a crypto wallet where you can keep your USD Coin and other crypto.
3. Complete your cryptocurrency exchange platform’s identity verification checks. Once you verify your identity, you’ll be able to take advantage of all the exchange’s features. 
4. Deposit fiat currency into your cryptocurrency exchange platform account. 
5. Use your deposit to purchase USD Coin. 
6. If you are using an external wallet, you’ll need to send your USD Coin from your exchange account to your wallet. 

Believe it or not, it’s really that easy. Selling USD Coin is easy too. If you choose to use your cryptocurrency exchange platform as a crypto wallet, you can easily convert your USD Coin to fiat currency with just a few clicks. 

The Future of USD Coin

Predicting the future of any cryptocurrency is notoriously difficult. This is not the case with USD Coin. Because USD Coin is directly tied to the value of the US Dollar, predicting the USD Coin price is very easy. USD Coin will always be worth approximately $1. 

So what is the future of USD Coin then? While USD Coin doesn’t have the potential to explode in value like other coins, our crypto experts predict USD Coin will explode in popularity. USD Coin allows consumers to use cryptocurrency like fiat currency, which makes it appealing to crypto fans looking for the security crypto provides without the volatility of other coins. It is very useful for certain transactions that need a stable currency. 

Risks and Challenges

Cryptocurrency is a largely unregulated environment. This makes investing in any coin a more risky venture than investing in traditional financial assets. However, because USD Coin is a stablecoin, it’s a safer purchase than other coins. 

The benefit of USD Coin being a stablecoin is also one of its downsides. Because there is no chance to have your investment “go to the moon” when you buy USD Coin, less crypto enthusiasts have bought USD Coin than other coins. Practically speaking, USD Coin being less popular than other coins means it’s less wide-accepted than other coins. This is not going to be an investment that makes you rich. 

Regulatory and Legal Aspects of USD Coin

Like most of the crypto industry, USD Coin is largely unregulated in the US. This means your investment could be at risk should the government decide to crack down on crypto. It also means that your investment isn’t protected by traditional banking laws. 

However, USD Coin is backed by US Dollars held in segregated accounts at regulated financial institutions in the US. This is an added level of protection not offered by most cryptocurrencies, but we’d still advise you to be careful considering the overall risk of fraud in the crypto industry. 

Community and Ecosystem

With respect to other crypto communities, the USD Coin community is one of the most level-headed in the world of crypto. People who buy USD Coin aren’t looking to make millions from their coin. They are buying USD Coin to spend it like they would fiat currency. Why not just use fiat currency then? Because using USD Coin enables for more secure transactions, smart contracts, and other perks provided by using cryptocurrency. 

Comparing USD Coin to Other Cryptocurrencies

Compared to some of the other big-name cryptocurrencies, USD Coin is relatively under the radar. This is reflected in USD Coin’s market cap compared to other top coins. 

Tether (USDT), the top stable coin on the market, has a $95B market cap. USDT is also based on the US Dollar, so it’s used in a similar way to USD Coin. Most experts agree that USD Coin is a more secure investment at this time though, so we wouldn’t be surprised to see the gap between USDT and USD Coin shrink in coming years. 

USD Coin has a market cap just over $7B at time of writing. Bitcoin, the undisputed king of cryptocurrencies, has a market cap of $834B. Binance Coin, another one of the smaller coins compared to Bitcoin and Tether, has a market cap of over $45B. 

Simply put, USDC is not a major player on the cryptocurrency market yet. However, it’s extremely popular among casual traders who value its stability, ease of use, and relative security compared to other popular coins.

How is The USDC Coin Different From Other Stablecoins?

Crypto stablecoins can be put into four categories:

• Fiat-collateralized. These include all stablecoins pegged to reserved fiat value. All fiat-collateralized coins are centralized by design. Examples: Tether (USDT); TrueUSD (TUSD); Gemini Dollar (GUSD); Paxos Standard Token (PAX); Digix Gold (DGX); USD Coin (USDC).
• Crypto-collateralized. These are stablecoins whose value is pegged to reserved crypto assets. Examples: Makercoin (MKR & DAI); Havven (nUSD & HAV).
• Algorithmic non-collateralized. Software-based economic models that seek to provide price stability without any collateralized assets. Example projects: Basis; Kowala; Fragments.
• Hybrid. Stablecoins which rely on a blend of the approaches listed above.Example projects: Carbon.

USD Coin falls into the first, fiat-collateralized coins category, and is a centralized stablecoin. In general, all the projects within the same category work in a similar fashion and have only minor differences. The more outstanding ones are Tether (USDT), known for refusing to conduct a genuinely transparent audit, and Digix Gold (DGX), whose value is pegged to gold.

The rest fiat-collateralized stablecoins release regular attestations and are backed by US dollars. The main differences between them revolve around their fee policies and different partner organizations, but the business model, for the most part, stays the same.

Where Can You Get USD Coin?

USD Coin (USDC) can be purchased in the following exchanges:

• Binance (paired with BTC, BNB).
• Poloniex (paired with BTC, ETH, XRP, BHC, STR, LTC, ZEC, XMR, DOGE).
• Coinbase Pro (paired with BTC, ETH).
• Coinbase (paired with
• CoinEx (paired with USDT).
• Coinsuper (paired with BTC, USD).
• OKEx (paired with BTC, USDT).
• CPDAX (paired with BTC).
• Hotbit (paired with USDT).
• Kucoin (paired with BTC, ETH, USDT).
• Korbit (paired with KRW).
• FCoin (paired with USDT).
• LATOKEN (paired with BTC, ETH).
• SouthXchange (paired with BSV, DASH).
• COSS (paired with BTC, ETH).
• Crex24 (paired with USD).

Besides these exchange pairs, USDC can be turned to USD and vice versa at Coinbase.

Where to Store USD Coin

USDC is an ERC-20 token issued on the Ethereum blockchain and can be stored in any Ethereum wallet. The most popular options are MyEtherWallet, MetaMask, Mint or Jaxx wallets. If you don’t know how to set up an Ethereum wallet, see this quick guide.

Current State of the Project

USD Coin is a rapidly developing project with credible institutions behind it. Since the project announcement in May 2018, its ecosystem has already expanded to more than 60 partners.

Some of the latest news surrounding the USDC project is about the level of control project creators retain over the stable cryptocurrency. Apparently, the developers hold the right to blacklist addresses and freeze funds if there’s any suspicion that the USD Coins are used for illegal activities.

However, most of the other stablecoins also have similar clauses. The only stablecoin without such terms is DAI by Maker.

Similar Projects

• Tether (USDT). The oldest and most popular USD-backed stablecoin.
• TrueUSD (TUSD). USD-backed ERC-20 token by TrustToken Platform.
• Gemini Dollar (GUSD). USD-pegged ERC-20 token issued by Gemini exchange.
• Paxos Standard Token (PAX). An ERC-20 token pegged to the US dollar.
• Dai (DAI). ERC-20 stablecoin pegged to the USD.
• bitCNY (BITCNY). A stablecoin issued on BitShares blockchain and backed by Chinese Yuans (CNY).
• bitUSD (BITUSD). A stablecoin issued on BitShares blockchain and backed by USD.
• bitEUR (BITEUR). A stablecoin issued on BitShares blockchain and backed by Euros (EUR).
• Stasis Eurs (EURS). A collateralized ERC-20 stablecoin pegged to the EUR.
• nUSD (NUSD). An ERC-20 stablecoin issued by the Havven foundation.
• White Standard (WSD). A USD-pegged stablecoin for global payments issued on Stellar protocol.

FAQs

How much is 1 USD Coin to buy?

At time of writing, USD Coin is trading at $1. This is extremely typical. The value of USD Coin is directly tied to the value of one US Dollar, so the value of one USD Coin will rarely be more or less than $1. 

Is USD Coin actually safe?

All cryptocurrencies come with risk. With that being said, USD Coin is one of the least risky coins you can invest in. The value of USD Coin is tied to the US Dollar, so, unless the dollar collapses, USD Coin price will remain stable. 

Does the government issue USD Coin?

No. The US government plays no role in issuing or managing USD Coin. It is not a central bank digital currency or a form of digital fiat currency. Centre and Circle, two cryptocurrency powerhouses who work with Coinbase, manage USD Coin.

The post USD Coin (USDC) appeared first on Cryptonews.

This guide will break down what makes Avalanche so unique, tell you the current Avalanche price, examine the price history, and so much more.

Avalanche Price

See the table above for the current Avalanche price and the history of this crypto’s value.

Avalanche launched in late 2020 and promised to be a competitor to the major coins, like Bitcoin and Ethereum. It was initially worth almost nothing, but in just a few months, the Avalanche price had jumped to $30 a coin. After a year, Avalanche’s value hit the $100 mark. It finally peaked at $134.87 in November of 2021. Today, at time of writing, Avalanche’s price is $35.99.

The major changes in Avalanche price have been largely due to outside investment. Avalanche price spiked following a $230 million cash injection from a consortium led by Three Arrows Capital. More recently, Avalanche’s parent company has net a partnership with Amazon.

What is Avalanche (AVAX)? 

Like so many other projects that are labelled the “potential Ethereum killer”, Avalanche is also a blockchain platform that lets users create their own blockchains with their own ecosystems, but also decentralized applications (dapps) of all sorts. It calls itself “blazingly fast, low cost, and eco-friendly.” 

The Avalanche platform is made up of three separate blockchains. The first, called the Exchange Chain and shortened to X-Chain, lets people create and trade tokens, including AVAX. The Platform Chain (P-Chain) serves to coordinate transactions, but also to enable the creation of new blockchains. Finally, the Contract Chain (C-Chain) lets users create and trigger smart contracts. The three blockchains are interoperable, and this approach improves speed and scalability, all of which makes Avalanche a unique project in the space. 

While the Exchange Chain uses the Avalanche consensus protocol, the other two chains use a modified version of it, called the Snowman. They are an adaptation of the Proof of Stake (PoS) consensus protocol. To learn more about the technical side of how Avalanche works, you can read their whitepapers here. They offer detailed documents on different aspects of the platform, including their consensus protocols, token dynamics, a stablecoin design classification framework, and a whitepaper on the way the platform itself works. 

Read more: What is Proof-of-Stake? 

The idea behind Avalanche was born in May 2018, when a file called “Snowflake to Avalanche: A Novel Metastable Consensus Protocol Family for Cryptocurrencies” was shared on IPFS by a pseudonymous group of enthusiasts going by the name “Team Rocket”. The document outlined the fundamentals behind Avalanche, explaining how the family of consensus protocols works together to ensure security and trustlessness, while maintaining high throughput and scalability—something that has plagued the blockchain world ever since its inception. 

The development of Avalanche was later led by a dedicated team of researchers from Cornell University, with professor Emin Gün Sirer at the head. He was assisted by two doctorate students, Maofan “Ted” Yin and Kevin Sekniqi. After completing the required research, they founded a startup company to develop the blockchain network, which was meant to meet the demands of the increasingly complex financial industry. In March, 2020, the AVA codebase (Developer Accelerator Program or AVA DAP) for the Avalanche consensus protocol became open-source and available to the public. 

The team raised funds for the project through an initial coin offering (ICO) that ended in July 2020, where they raised USD 42m. The mainnet launched in September 2020, along with the native AVAX token. 

Learn more: Why Invest In An ICO?

How Does Avalanche Work?

Other cryptocurrencies use Proof-of-Stake (PoS) consensus models to validate blocks and create more tokens on the blockchain. This typically requires a big buy-in to participate in the validation process and it requires many validators. 

Avalanche uses a process called subsampled voting, which involves randomly selecting groups of Avalanche owners who’ve volunteered to be validators. These groups can approve or reject transactions. Then, a thing called network gossip occurs where these groups compare notes and constantly debate whether to validate transactions. 

This subsampled voting process allows the Avalanche consensus model to be faster and more secure than POS and other popular consensus models. For example, you would need to own 80% of all Avalanche tokens to attack and maliciously manipulate the Avalanche blockchain. You’d only need to own 51% of all Ethereum. 

AVAX Token and Staking 

The AVAX token represents the backbone of the network. This utility token is used to stake and pay network fees, and as it is usable across all blockchains and subnets within the Avalanche ecosystem, it is a common usable asset for all of them. It has a capped supply of 720 million tokens. Like bitcoin (BTC), this creates scarcity, which means the token won’t suffer from the continuous dilution through inflation. An additional deflationary effect is achieved through the burning of all AVAX tokens used for fees. 

To be a validator on the network, you have to stake at least 2,000 AVAX. If you can’t afford it, or do not want to be a validator for any reason but would like to stake your AVAX anyway, you can support another validator, which makes you a delegator. Validators can earn up to 11% Annual Percentage Yield (APY) and set a custom percentage fee of the reward they keep from delegators who back them. 

If you’re not sure how much you’re willing to stake, regardless of whether you want to become a validator or delegator, the Avalanche website offers a handy calculator. Here, you can enter the amount you want to stake and see the APY, but also a daily and monthly percentage yield, as well as its value in US dollars—at least according to the current AVAX price. 

Additionally, tokens staked on the Avalanche network are never at risk of slashing. This practice, often used by Proof-of-Stake networks to punish validators who work against the health of the network, is simply not part of their modus operandi. Emin Gün Sirer stated that the decision to exclude slashing was controversial when it was first introduced, but that it is simply not required for security. On the other hand, slashing can hurt nodes that are not misbehaving, but are encountering bugs or other issues.  

Finally, as Avalanche uses a type of Proof-of-Stake protocol, participating in the network does not require any special hardware, making it overall more accessible.

Who Created Avalanche?

The Avalanche consensus model was created in 2018 by an anonymous team of developers who went by the name “Team Rocket.” Once Team Rocket laid the groundwork for Avalanche, developers at Cornell University took over the product with the goal of creating the fastest and safest cryptocurrency network ever. Avalanche went live in September 2020 and is now one of the biggest cryptocurrencies on the market.

Avalanche Market Performance

Avalanche is the ninth most popular cryptocurrency by market capitalization. At the time of writing, Avalanche’s market cap is just over $13 billion. At its peak, Avalanche’s market cap was over $30 billion. 

How to Buy and Store Avalanche

Here’s everything you need to do to buy, sell, and store Avalanche. 

1. Create an account with a cryptocurrency exchange platform. If the exchange you choose has a crypto wallet you are comfortable using, skip ahead to Step 3.
2. Open a crypto wallet. Obtaining a crypto wallet will allow you to store your Avalanche and other cryptocurrencies you buy.
3. Complete your cryptocurrency exchange platform’s identity checks. Doing this is essential to take advantage of all major platform features. 
4. Deposit fiat currency into your crypto exchange account.
5. Use the fiat currency you just deposited to buy Avalanche. 
6. If you chose to use a third-party wallet, you need to send the Avalanche you just purchased to your wallet from your exchange account. 

As you can see, buying Avalanche is a quick and easy process that anyone can do. Selling Bitcoin is just as easy. All you need to do is reverse the process and use your crypto exchange to sell your Avalanche for fiat currency. If you have an external wallet, you’ll need to send your Avalanche back to your exchange first. 

Risks and Challenges

The biggest challenge to Avalanche’s growth is the competition. Avalanche’s market cap is around $13 billion. Their main competitor, Ethereum, has a market cap over $300 billion. 

If you asked a crypto fan “What are Avalanches?” even they might start talking about snow and not about cryptocurrency. Avalanche is fast, secure, and run by ambitious leadership, but it still has a long way to go when it comes to name recognition. 

As for risks, all cryptocurrency is risky. Investing in Avalanche is just as risky as investing in any of the other best cryptocurrencies in the world. You should do your research and never invest more than you are willing to lose. 

Regulatory and Legal Aspects of Avalanche

Like all other top cryptocurrencies, Avalanche is an unregulated digital currency. The decentralized nature of cryptocurrency also makes the industry vulnerable to fraud and manipulation. With all that being said, Avalanche is one of the most secure cryptocurrencies on the market. 

The Avalanche consensus model and subsampled voting process for blockchain verification makes it more secure than other top cryptocurrencies. Avalanche’s blockchain network is harder to attack than other networks. Avalanche also has the backing of major companies like Amazon, which is a promising sign about the future and safety of this coin. 

Community and Ecosystem

The Avalanche community is more experienced with crypto and the finer details of the technology behind crypto than other communities of other coins. This is because of the Avalanche blockchain network. 

Not only does Avalanche allow for faster and more secure transactions than other top cryptocurrencies, its network also is well suited to dApp creators and tech entrepreneurs who use smart contracts and other cutting edge decentralized finance tools. 

Comparing Avalanche to Other Cryptocurrencies

Avalanche is one of the top cryptocurrencies on the market right now, but there is a big gap between it and the big names in the crypto world. Bitcoin and Ethereum have market caps over 100 times larger than Avalanche’s. At time of writing, Bitcoin’s market cap is $844 billion and Etherum’s is $311 billion. Avalanche’s is just $13 billion. 

Overall, Avalanche has the tenth biggest market cap. Cardano is just above Avalanche in eighth place with a market cap of $18.9 billion. Dogecoin sits below Avalanche in eleventh and has a market cap of $11.6 billion. Compared to these coins, Avalanche has more potential for growth, but it’s still way too early to say whether Avalanche will ever hit the heights many crypto experts think it will.

How to Stake AVAX for Validators 

To become a validator, you will have to stake at least 2,000 AVAX for at least two weeks. However, keep in mind that you can’t stake your funds for longer than a year at any given time. Once you decide to start validating, you will have to stake your funds and set parameters like when you’re starting and when you’re stopping, the address you will use to receive any rewards, and your delegation fee rate (2% minimum). None of these parameters can be changed once you issue the transaction to add a node as a validator, so be sure to double check everything. 

For all the specifics on running a validator node, Avalanche has detailed guides in their developer documentation. In order to receive any rewards you’re eligible for, you will have to stay online and responsive for at least 80% of the time you spend in that role. Once you’re done validating, you will receive your stake back, as well as the aforementioned rewards, if applicable. 

How to Stake AVAX for Delegators 

Being a delegator is significantly more straightforward than being a validator. However, while it comes with fewer responsibilities, it also does not include the same rewards as the more complex position. The length of time you can stake your funds for to support another validator is the same as for validators (e.g., two weeks minimum, one year maximum), but it cannot get outside the bounds of your chosen validator’s parameters. In other words, if your chosen validator is staking for half a year, you cannot choose to stake for longer than that. 

The minimum amount you must stake as a delegator is 25 AVAX. Once you’ve set your parameters and issued the transaction, there is no way to change them. You will receive any rewards after the staking period of your validator has run out, but only in case your validator qualifies for the rewards as well. However, the validator that you delegate to keeps a portion of your reward—specified by the validator’s delegation fee rate. 

You can learn more about the steps required to participate in the Avalanche network in the developer documentation. Here, you can find tutorials for everything from running a node, to staking, to upgrading existing nodes. The site is also being regularly updated, which means any new issues or approaches will be documented and explained in an easy to understand manner within a short timeframe.

AVAX Wallets 

Avalanche offers its own wallet, called simply the Avalanche Wallet, on its website. Here, users can simply access their existing wallet, or create a new one if they need it. However, this is far from the only option for storing AVAX and related assets. Users who have other coins may want to keep all their holdings in one place. Some of the other wallets that support AVAX include:

• Ledger Nano X. You will still need an actual Avalanche Wallet, but it can be integrated with the Ledger Nano X hardware wallet for an extra level of security. In the Ledger Live, install the Avalanche App from the App Catalog and set it up by following the steps.
• MetaMask. Yes, the Ethereum (ETH) browser extension wallet can also be configured to use it to receive and manage AVAX C and access DApps made on the Avalanche network. However, while the MetaMask extension is very handy and easy to use, setting it up does require some basic technical skills.
• Coin98. This wallet can be used both as a browser extension and a mobile app, making it doubly useful to AVAX holders. The mobile version also has an integrated DApps browser for Avalanche.
• Coinomi. While the desktop version of this wallet does not support AVAX yet, the mobile one does.

Still, unless you have a pressing reason not to use Avalanche’s proprietary wallet for storing their tokens, it is still by far the best choice—plus, it is both safe and non-custodial, so there should be no security issues when using it.

Where to Buy AVAX 

In order to store AVAX, you first need to have some. Luckily, many exchanges have already listed this project, so finding a trading pair you like should not be an issue. However, for those who are looking for the top exchanges listing it, we have compiled a list of five great options.
 

1. Binance. As the largest exchange by 24-hour trading volume, it should come as no surprise that Binance also hosts the highest volume of AVAX trading. Additionally, the exchange is available almost globally (regulations permitting), is easy to use and straightforward, and accepts multiple payment options.
2. Gate.io. This exchange, one of the oldest in the industry, is still going strong and also offers great AVAX pairs. You can even use your account without KYC, but be warned that you will still need to go through the process if you want to trade higher volumes.
3. Coinbase. A beginner-friendly exchange that only lists vetted projects, Coinbase offers one of the most straightforward ways to purchase AVAX. On the other hand, it has slightly higher fees than most of its competitors, so the simplicity does come at a cost.
4. KuCoin. KuCoin has an incredible selection of altcoins with small market caps, which means you will be able to trade a wide selection of other tokens aside from AVAX. The exchange is also privacy-friendly, which means there are no forced KYC checks, but it doesn’t support any fiat trading pairs.
5. Bitfinex. This formerly professional-only exchange still has an air of exclusivity around it, so trading here offers something of a VIP air. Bitfinex offers many different coins and trading options, but its fees are somewhat higher than on other exchanges, and it is still best suited to those who trade large volumes on a daily basis.

Of course, this list is far from exhaustive, but it offers a good starting point for anyone who needs it.

Avalanche Block Explorer

Another useful tool that most blockchains have is a block explorer. Knowing how to use it is a prerequisite for making the most of the network. On Avalanche, their block explorer is especially useful, as it offers insight into AVAX, but also all other blockchains and their tokens that were created on the platform. At the top, the explorer shows the transaction volume on the platform, the number of validators as well as the total amount currently staked, the number of active blockchains and subnets, and the staking ratio plus annual staking reward.

You can see all recent transactions on the landing page, but also search by address, transaction ID, or asset. Other tabs include subnets, validators, assets, blockchains, C Chain, Status (for the entire network), and resources, which will lead you to any documentation you may need. In other words, their explorer is the best place to start if you need any specific information about the Avalanche platform.

FAQs

If you’ve read all of this guide, you should be well informed about what is Avalanche, what makes it so unique, and why you should or should not invest in this token. However, we know that you might still have some lingering questions. Here are some of the most commonly asked questions about Avalanche. 

How much is 1 Avalanche to buy?

Avalanche price changes by the second. Right now, at time of writing, 1 Avalanche costs $35.99. 

Is Avalanche actually safe?

Yes, Avalanche is safe. Investing in Avalanche is just as safe as investing in any other cryptocurrency. However, you should keep in mind that investing in crypto comes with unique risks that other investments do not have. Do not invest more than you are willing to lose.

What is AVAX?

AVAX is the trade symbol of Avalanche. They mean the exact same thing. For the sake of simplicity, we referred to Avalanche as Avalanche, but don’t be surprised if you see people more commonly using AVAX in other crypto discussions. 

Where can I buy Avalanche?

Avalanche is available on all major crypto exchange platforms, including Coinbase and Binance. Most of these platforms also have dedicated crypto wallets where you can store your Avalanche as well.

The post Avalanche (AVAX) appeared first on Cryptonews.

Solana Price Analysis

Here is the current price for Solana, as well as this crypto’s price history

(widget and chart)

You can see that like many other cryptos, Solana has been subject to some extreme changes in price. The price peaked above $248 in 2021 before dropping way back down to trade for under $10 in 2022. More recently, SOL’s price has been on the rise again.

A big factor that impacts Solana’s price is the public’s relationship with Ethereum (ETH). One of the reasons SOL went up so much in value in 2021 was because the public saw it as a superior competitor to ETH. Frustration with ETH gas fees is also driving the current rise in SOL.

As for why it tanked in 2022, that was because of the fiasco with Sam Bankman-Fried, who had invested heavily in Solana. The crypto became “guilty by association,” and a lot of people sold it as SBF’s scam fell apart. 

As with other cryptocurrencies, SOL’s price is also impacted by factors such as supply and demand and other news events.

What is Solana (SOL)?

Let us start from the basics: Solana is an open-source blockchain that aims to provide a fast, scalable and advanced marketplace and platform for decentralized applications (dapps). Often dubbed the “Ethereum killer”—as are most similar projects—it tackles the issues that plague Ethereum and other Proof of Work-based blockchain projects by opting for a different consensus algorithm and making other improvements in all aspects perceived as weaknesses in their competitors.

Solana was first envisioned in 2017 by Anatoly Yakovenko, who was an executive at tech company Qualcomm before that, so he already had extensive experience in distributed systems and decentralization prior to starting the project. He was joined by Greg Fitzgerald, formerly the Chief Technology Officer and, as of August 2021, advisor of Solana Labs, and Eric Williams, now Chief Scientist, in creating the network.

The project first launched in 2020, three years after it was conceived. It addresses the issues of other blockchains by combining two consensus mechanisms: Proof of Stake and Proof of History. Proof of Stake requires decision-making participants in the network, or validators, to stake some of their token holdings before they can make decisions; making good decisions rewards them, while making bad ones that go against the health of the network is punished by taking their stake away.

In fact, Solana was created with a specific use case in mind, namely as an infrastructure for developing decentralized apps and smart contracts.

Solana is also renowned for its energy efficiency. As many cryptos have had a significant adverse impact on climate change, a cryptocurrency with a smaller carbon footprint is a big deal. In fact, Solana states that when you conduct a SOL transaction, you are using no more energy than you would if you searched on Google a few times. This gives Solana virtually a net zero impact.

Learn more: What Is Proof-of-Stake?

However, Proof of Stake can run into issues when the correct order of transactions has to be determined. This is where Proof of History comes in. With so many participants in different time zones, a decentralized system is hard-pressed to find a single way to timestamp transactions in order to keep them organized. Instead of trusting any given timestamp, Solana’s Proof of History algorithm just proves something has happened before and after other events. In other words, it creates a historical record that proves that an event has occurred at a specific moment in time. According to Yakovenko, this ensures that their blockchain is much faster than other Proof of Stake alternatives.

If you’re interested in learning more about how Solana works, with in-depth technical explanations of the blockchain and its rules, you can read all about it in the Solana whitepaper.

Along with the expected pros of blockchains, like decentralization, security, and immutability, Solana’s speed makes it an excellent place for decentralized finance (DeFi) applications, but also dapps like games. Its speed ensures that a network congestion is extremely unlikely to happen, so fee prices are quite low compared to its competitors.

All of this means that Solana is now the home to many projects of all sorts, with something for everyone—all of which users can access using SOL tokens.

How Does Solana Work?

What makes the decentralized Solana network so efficient? The answer is its reliance on proof-of-stake, as opposed to the older proof-of-work.

With traditional proof-of-work, cryptocurrencies need to be mined by solving puzzles. Proof-of-stake is a validation process that skips the mining and the puzzles. All participants have to do is lock their coins into the network.

Participants who lock in their coins like this qualify to be randomly and passively selected to add blocks to the blockchain (and receive rewards).

You can see why this is so much better for streamlining the process than solving puzzles. Far less energy is spent, which is what makes the system so efficient, scalable, affordable, and eco-friendly.

Indeed, Solana goes a step further, integrating an additional process called “proof-of-history.” According to Solana, this special process speeds up validation over what would be possible through proof-of-stake alone.

Who Created Solana?

Anatoly Yakovenko, previously an executive at Qualcomm, created Solana in 2017.  His experience creating cell phone networks was what gave him the expertise and insights to create an efficient scalable network in the form of Solana.

Solana Market Performance

As of the time of this writing, the Solana market cap is $42,945,078,242. This puts its ranking at #5. The cryptos that are beating it include Bitcoin (BTC), Ethereum (ETH), Tether (USDT), and BNB (BNB).

How to Buy and Store Solana

You know the answer to the question “What are Solanas?”, and you know more about how they work. If you are ready to get your own SOL, follow the steps below.

1. To buy and store Solana, you need:

• An exchange: This is where you can buy and sell SOL and other cryptos.
• A wallet: This is where you can store SOL and other cryptos.

There are many different options for both. If you want to keep things simple and convenient, you can choose a platform that combines a wallet and an exchange.

2. Register an account at the exchange and open a wallet account (this may be a one-step process if it is a combined service).
3. Complete the Know Your Customer (KYC) verification process. This is where you submit documents that verify your identity.
4. Deposit money into your exchange account.
5. Use the funds you just deposited to purchase your first SOL.

If there is a wallet that is part of your exchange account, the funds will be stored there, and you are all set. But you can connect an external wallet and send your SOL there if that is what you prefer.

If you wish to sell your Solana later down the line, you can simply exchange it for a different crypto or for your native fiat currency. You can then make a withdrawal to your bank account, e-wallet, etc.

The Future of Solana

As we discussed, the FTX collapse and scandal adversely impacted Solana’s reputation, causing the price to crash. But SOL is slowly making a comeback.

Anatoly Yakovenko said in September 2023, “I think I would love to see us land, from a technical perspective, multiple leaders per slot. And this is something that is a very different roadmap from all the other blockchains.”

By integrating this feature, Solana seeks to make transactions on the network more fair in their processing.

It will not be easy for Solana to bring back the level of trust it had before FTX, and to grow that trust, but right now, there are reasons to be optimistic that it can do just that. The price has risen sharply over the past few months and there is optimism that Solana can remain a major player in the space. 

SOL Token

The SOL token is the backbone of the Solana network. It is used to pay gas fees on the network, but also for staking, so users can support the network’s security and earn inflationary rewards. The token was launched amid the release of the beta mainnet in March 2020. As of the time of writing, in September 2021, it is the seventh largest token by market cap according to data from aggregator CoinGecko. It reached its all time high on September 9th, when it was trading at USD 213.47 per coin. With a market cap of around USD 40bn, Solana’s token is firmly wedged into the top 10 cryptocurrencies.

SOL Wallets 

Before you buy Solana’s token, you need to have a wallet where you can store your holdings. The wallet you choose will depend on your personal requirements, but also on your comfort with technology; the vast majority of users will need to choose a third-party wallet with an intuitive interface, while those who know their way around their command-line app (advanced users or developers) could opt for those, as new features on the Solana blockchain will always be supported on the command line first before being integrated into third-party solutions.

If you’re sticking with third-party wallets, you can choose between mobile apps and web wallets. Some mobile app wallets that support solana are:

• Exodus
• Trust Wallet
• Coin98
• Zelcore

Out of all these wallets, only Exodus supports staking (more on that further down), but Zelcore can also connect to all Solana-based dapps, as well as trade numerous other cryptos. 

On the other hand, if you spend the majority of your time on a PC, a web-based wallet may be more intuitive to use. Some of these include:

• Phantom
• Solflare
• Sollet
• MathWallet
• BitKeep

The first two support staking as well. Sollet, MathWallet, and BitKeep support all Solana-based tokens aside from SOL, but MathWallet apps do not, which means you will only be able to store your SOL holdings on the web version of the wallet.

Those who have SOL lying around may be interested in staking.

How to Stake SOL

Staking SOL tokens is one of the best-known ways to earn passive income by simply not being able to spend your SOL holdings. To do so, all you have to do is stake tokens to one or more validators on Solana’s Mainnet.

First, you must use a wallet that supports staking. These include:

• Phantom.app in conjunction with a seed phrase or a Ledger Nano.
• SolFlare.com in conjunction with a keystore file or a Ledger Nano.
• Solana command line tools can perform all staking operations in conjunction with a CLI-generated keypair file wallet, a paper wallet, or with a connected Ledger Nano.
• Exodus wallet—but you are automatically assigned their partner validator instead of choosing your own.
• Binance and FTX exchanges—again, you can only stake to their partner validator here.

Once you’ve chosen your method, you will have to follow the instructions of the wallet you are going with, as each will work slightly differently. However, they all have detailed guides, so you’re unlikely to get lost in the meantime. The account used for staking will be different from the one you use to send and receive tokens.

If you’re using a wallet that lets you choose your own validator, you will have to make that choice as well. There are no right or wrong answers here—this is something you have to do by yourself, as the network does not endorse anyone, in the interest of decentralization. After that, your wallet of choice will also have the steps you need to follow in order to delegate your stake.

Solana Ecosystem

At the time of writing, there were 368 dapps on the Solana blockchain. Most of them are DeFi-related, but many are also non-fungible token (NFT) projects, various explorers and tools, etc. They are all listed on the Solana website, with their names and short descriptions readily available. Some of the projects have a more detailed description when you click on them, offering a very intuitive way to research what they are and how they work. You can also click on Learn More, which takes you to the website of the dapp.

Additionally, Solana has a Developers tab on their website, which offers access to all resources required to develop on the Solana blockchain. This also includes blog posts for total beginners, with high-level explanations of what the project is and how it works, walkthroughs, videos, courses on how to build on the network, as well as various other tools. All of these make it relatively easy for developers to join the ecosystem.

Solana Block Explorer

Block explorers are used for more than just tracing your own transactions. In essence, a block explorer is a blockchain search engine that allows you to search for a particular piece of information on the blockchain. Aside from transaction information, this includes the current hash rate and transaction growth, gas fees, and other info related to the blockchain. 

The Solana block explorer will show you the circulating supply, active stake, and current price of the token, as well as a myriad of other, increasingly complex things that you may or may not need. This includes live transaction stats, so you can see the transaction speed of the network, any changes it has gone through, and generally just ascertain the health of the network.

The Supply tab will also let you see the top 20 largest holders of all circulating SOL tokens. Clicking any of them brings up all available data—as with any address—like their previous transactions, activity, etc.

Risks and Challenges

The biggest problems Solana is facing right now are not tied to the past but to the present and future.

While Solana is an efficient network for decentralized apps, alas, fraudulent apps are on the rise. These apps target users through phishing and similar techniques. Many of the scammers appear to be based in Russia.

If these security problems are not addressed quickly and thoroughly, we may see Solana’s value tank once again.

Regulatory and Legal Aspects of Solana

Yakovenko is supportive of increased regulatory oversight in the crypto market. In September, he wrote in Fortune, “For the U.S. to attract and retain the very best talent in the new digital landscape, we need a cogent regulatory framework that protects consumers and encourages entrepreneurship.”

He adds that government officials need to strengthen their personal knowledge and understanding of digital assets before they can regulate them effectively.

Community and Ecosystem 

If you are curious to learn more about the Solana ecosystem, a good place to start is this page on the official website, where you can learn more about decentralized apps and projects that are running on the Solana platform.

Not surprisingly, there is a healthy community of Solana developers, users and enthusiasts. You can access some of Solana’s community resources right on the official website. You can also find additional Solana community outlets on social media sites.

Comparing Solana to Other Cryptocurrencies

To help put Solana in perspective, it helps to be aware of some of its chief competitors. We will start with Ethereum. Solana was developed to create a platform that would be better than ETH, without ETH’s weaknesses. ETH is notorious for its high gas fees, whereas Solana’s average transaction cost is just $0.00025. That said, ETH still has a much higher market cap than Solana, and remains the more prominent crypto.

Another top rival for Solana is Cardano (ADA). Like Solana, Cardano is designed to maximize efficiency and operate sustainably. It is scalable and fast. It is ranking 8th in terms of market cap right now, however, so Solana is still beating it in this regard. Plus, the long research phase for this crypto is a bit of a drawback.

Another crypto that is popular for its flexibility and which may pose a threat to Solana is Avalanche (AVAX). Just as Solana was built for smart contracts and decentralized apps, so was Avalanche. Right now, Solana is still faster than Avalanche for processing transactions, though Avalanche may have some security advantages through its unique consensus protocol. It is right behind Cardano in terms of market cap.

FAQs

Let’s conclude this post about Solana by answering a few frequently asked questions you might have.  

How much is 1 Solana to buy?

The Solana price can vary quite a bit. At the moment of this writing, 1 Solana = $99.19 USD. But Solana’s all-time low was just $0.5052, and its all-time high was $260.06. So, the cost to buy 1 Solana depends on its value at the instant of purchase.

Is Solana actually safe?

Solana is safe to use, but it does carry the risk of high volatility, like many other cryptocurrencies.

What is Solana used for?

Solana’s primary purpose is to support the development of decentralized apps and smart contracts. But some people also use it as an investment, or to buy or sell goods or services.

Who can use Solana?

Solana is often used by developers creating decentralized apps. But anyone can hypothetically buy and use Solana.

The post Solana appeared first on Cryptonews.

What sets Cardano apart is its commitment to a layered architecture, separating the ledger of account values from the reason why values are moved from one account to the other. This separation creates more flexibility, making Cardano an agile platform for developing decentralized applications (DApps) and smart contracts.

As a third-generation blockchain, Cardano aims to address the limitations of its predecessors, such as Bitcoin and Ethereum. 

Want to know more about ADA? We’ll dive into all the details in our comprehensive guide below.

Cardano Price

Cardano’s past trends gives you insights into its market behaviour. Over the years, Cardano has experienced tons of fluctuations.

Cardano price went through the same wild roller coaster as many other cryptocurrencies in 2018. Its price peaked in January at USD 1.01 and dropped to USD 0.085 in October of the same year. Accordingly, Cardano market capitalization hit USD 2 billion in October, compared to USD 30 billion in January. Going forward, one needs to follow development of competing platforms such as Ethereum, as this might affect the price of ADA.

If you wonder how to acquire Cardano, first you need to download a wallet that supports ADA cryptocurrency. At the time of writing those are two: Daedalus wallet and Infinito Wallet.

Buying, selling and trading with ADA coins is possible through exchanges such as Bittrex, HitBTC, Binance, Upbit, and others. Meanwhile, one of the major exchanges BitMEX provides a futures market for BTC:ADA, using only BTC as margin. Therefore, you cannot purchase, trade with, or withdraw Ada from BitMex. Cardano aims to be listed on more exchanges – new partnerships will be announced via its social media channels.

Moreover, the company plans that ADA will be available to purchase at a network of ATM machines in Japan in an unspecified future.

What is Cardano?

Cardano’s development began in 2015 by Ethereum co-founder Charles Hoskinson. The aim was for Cardano to take an innovative approach compared to its predecessors in building a decentralized ecosystem. ADA was officially launched in 2017, and it has seen plenty of price fluctuations over its relatively short lifespan.

Cardano is a blockchain platform that aims to provide a more secure and sustainable infrastructure for the development of decentralized applications (DApps) and smart contracts. 

Cardano’s development is driven by three main principles: scalability, sustainability, and interoperability. These principles guide the Cardano team in addressing the challenges faced by earlier blockchain networks, aiming to create a more inclusive and secure financial ecosystem.

Here’s what makes Cardano unique:

• Cardano uses a layered architecture that separates the settlement and computation layers. This design offers better flexibility and allows for easier upgrades without disrupting the entire system.
• Cardano uses the Ouroboros proof-of-stake consensus algorithm, which relies on the principle of “staking” ADA (Cardano’s native cryptocurrency) to participate in the network. This approach aims to be energy-efficient while ensuring security. Reducing the overall impact on the environment compared to older cryptocurrencies.
• Another one of Cardano’s unique features is its emphasis on academic research and peer-reviewed development. The platform collaborates with universities and experts worldwide to ensure the scientific rigor of its protocols and innovations.
• Similar to Ethereum, Cardano supports smart contracts and decentralized applications. However, Cardano’s layered approach and commitment to formal verification aim to enhance security and reduce the risk of vulnerabilities.
• Cardano also introduces a treasury system that allows ADA holders to participate in decision-making processes and propose changes to the network. This feature promotes decentralization and community involvement in governance.

As you can see, there are a ton of behind-the-scenes features that you get with Cardano – it’s more than just another cryptocurrency.

How Does Cardano Work?

Cardano uses a multi-layered architecture designed to improve its scalability, sustainability, and security. The platform is divided into two main layers – the Cardano Settlement Layer (CSL) and the Cardano Computation Layer (CCL).

Firstly, the Cardano Settlement Layer (CSL) is responsible for handling ADA transactions and the transfer of value. It uses the Ouroboros proof-of-stake consensus algorithm mentioned earlier, allowing ADA holders to participate in the network’s operation by staking their tokens. Ouroboros ensures security and energy efficiency when validating transactions.

Secondly, the Cardano Computation Layer (CCL) is dedicated to supporting smart contracts and decentralized applications (DApps). Since these two layers are segregated, Cardano has improved flexibility and allows for independent upgrades.

Cardano’s unique technological features and commitment to real-world environmental impact have brought a fresh perspective to the cryptocurrency market. 

Who Created Cardano?

Cardano was co-founded by Charles Hoskinson, a prominent figure in the cryptocurrency space. Hoskinson is a mathematician and entrepreneur who was also one of the co-founders of Ethereum. His vision for Cardano was to create a blockchain platform that could provide a more secure and sustainable infrastructure for the development of decentralized applications.

Cardano’s development is overseen by IOHK, a blockchain research and development company. IOHK was founded by Charles Hoskinson and Jeremy Wood in 2015, with a specific focus on building blockchain solutions.

The idea for Cardano was conceived in 2015. The development of ADA began with a research-driven approach to address the challenges faced by existing blockchain platforms.

The native cryptocurrency of the Cardano blockchain, ADA, was launched in September 2017 through an initial coin offering (ICO). The ICO raised significant funds to support the ongoing development of the Cardano platform.

What’s interesting is that Cardano’s development is structured in phases, each named after famous poets. For example, the Byron phase, representing the foundation era, saw the launch of the mainnet and the introduction of ADA. The subsequent Shelley phase focused on decentralization, introducing staking and the Ouroboros consensus.

The five eras of Cardano are:

• Byron
• Shelley
• Goguen
• Basho
• Voltaire

Cardano is an evolving project with a roadmap extending into the future. The development team continues to work on subsequent phases, including Goguen (smart contracts and decentralized applications), Basho (scaling), and Voltaire (governance).

This approach alone is enough to make Cardano interesting to keep an eye on.

Cardano Market Performance

Cardano (ADA) has a market cap of $19.00B. It has established itself as one of the leading cryptocurrencies in the market. The market capitalization gives you an idea of the overall value of a cryptocurrency within the broader cryptocurrency market – it shows total value of all ADA tokens in circulation.

Cardano’s latest trading volume is $362.03M in the last 24 hours (at the time of writing). This figure shows the total amount of ADA tokens traded across crypto exchanges within a specific time frame. Higher trading volume means more market activity, liquidity, and investor interest.

How to Buy and Store Cardano

You can buy Cardano (ADA) through various cryptocurrency exchanges such as Kraken, Coinbase, or Binance (to name a few). 

Here’s a step-by-step guide on how to buy Cardano:

1. Choose a cryptocurrency exchange: Choose a reputable cryptocurrency exchange that supports Cardano.
2. Create an account: Sign up for an account on the chosen exchange. Complete the necessary identity verification process as per the exchange’s requirements.
3. Deposit funds: Deposit funds into your exchange account. Most exchanges accept deposits in fiat currencies (such as USD, EUR) or other cryptocurrencies.
4. Find ADA on the exchange: Locate the Cardano trading pair on the exchange.
5. Place an order: Enter the amount of ADA you wantto buy.
6. Complete the purchase: The ADA tokens will be credited to your exchange wallet.

That’s it – you’ve bought ADA. But after buying Cardano, it’s crucial to secure and store your ADA tokens safely. Here’s how:

• Hardware Wallets (Ledger Nano S, Ledger Nano X, or Trezo) – these offer better security and are not prone to hacking.
• Software Wallets (Daedalus and Yoroi): More easily accessible and flexible, but they come with security risks. Make sure your cybersecurity is up to date.

The Future of Cardano

As mentioned earlier, Cardano is known for its deliberate and research-driven approach. Therefore, it has a comprehensive roadmap that outlines its development phases and upcoming features. While specific timelines can be subject to adjustments, the following key developments are anticipated:

• Smart contracts and the Alonzo upgrade: The Alonzo upgrade is set to bring smart contract functionality to the Cardano blockchain. This will open the door to a wide range of applications and projects.
• Decentralized Finance (DeFi) integration: With smart contracts in place, Cardano aims to actively participate in the growing decentralized finance (DeFi) space. This will open doors to lending, borrowing, and decentralized exchanges that are expected to emerge alongside Cardano.

Risks and Challenges

Investing in Cardano (ADA) comes with potential risks and challenges that you should be aware of.

Firstly, Cryptocurrency markets, including Cardano, are known for their price volatility. Prices can experience rapid and unpredictable fluctuations. Always be aware of the factors that affect Cardano’s price and keep an eagle eye on your investments.

The regulatory environment for cryptocurrencies is always evolving, and changes in regulations could impact Cardano’s market and adoption. Make sure to stay informed about regulatory developments and compliance requirements in the jurisdictions you operate in.

Cardano is a complex blockchain project with ongoing development. Technical issues, bugs, or unforeseen challenges are sure to show up from time to time and it could affect the network’s functionality. Keeping up with the latest news on ADA could help you stay informed on these issues. 

Regulatory and Legal Aspects of Cardano

Cardano (ADA) operates globally where the legal status of cryptocurrencies varies across jurisdictions. But it’s important to keep in mind that the legal status of Cardano varies from country to country. 

Some jurisdictions embrace cryptocurrencies, recognizing them as legitimate financial instruments, while others impose strict regulations or outright bans.

Cardano’s compliance with international regulatory standards, such as Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations, is important for its acceptance in traditional financial systems. Regulatory compliance improves Cardano’s legitimacy and makes it more acceptable in traditional financial institutions.

Comparing Cardano to Other Cryptocurrencies

When deciding whether Cardano is a worthy investment or not, it could be helpful to compare it to some other cryptocurrencies. But it’s important to consider the key differentiators that sets Cardano apart from its competitors. We’ll compare ADA to three other cryptocurrencies below.

Cardano vs. Ethereum

Firstly, what better comparison to make than to its founder’s previous project – Ethereum? Well, as you can see above ETH is an entirely different calibre compared to Cardano. That mainly comes down to the fact that Ethereum has been around for much longer than ADA.

Both Cardano and Ethereum are known for their smart contract capabilities, facilitating decentralized applications (DApps) and decentralized finance (DeFi) projects. While Ethereum currently operates on a Proof-of-Work (PoW) model, it is transitioning to a Proof-of-Stake (PoS) model, similar to Cardano’s Ouroboros consensus.

Cardano’s PoS mechanism, Ouroboros, is designed to be more energy-efficient than Ethereum’s current PoW model. Furthermore, Cardano focuses on a phased development approach, aiming for a systematic rollout of features, which is why it’s still so far behind it’s “big brother”.

Cardano vs. Binance Coin

Binance Coin and Cardano’s ADA both serve as utility tokens within their respective ecosystems. BNB is primarily associated with transactions and fees on the Binance exchange, whereas ADA is integral to Cardano’s network, participating in staking and governance. Overall though, BNB is still much bigger than ADA at the moment.

Cardano vs. Polkadot

Polkadot and Cardano share a focus on scalability and interoperability through their multi-chain architectures. Both projects incorporate Proof-of-Stake mechanisms, with Polkadot using Nominated Proof-of-Stake (NPoS). Polkadot is a smaller cryptocurrency compared to Cardano in terms of numbers.

FAQs

How much is 1 Cardano to buy?

The price of 1 Cardano (ADA) can vary based on market conditions and exchange rates. It’s advised to check a reliable cryptocurrency exchange platform for the most up-to-date pricing.

Is Cardano actually safe?

Cardano is designed with a strong emphasis on security. Its development involves academic research, and the blockchain employs a layered architecture to enhance security. However, like any investment, risks exist, and you should exercise caution and stay informed.

Where can I buy Cardano?

Cardano (ADA) can be purchased from various cryptocurrency exchanges. Popular platforms like Binance, Coinbase, Kraken, and others often list Cardano. You can simply create an account on a suitable exchange, deposit funds, and buy ADA.

What wallets can I use to store Cardano?

Cardano can be stored in wallets that support ADA. Some recommended wallets include Daedalus (official Cardano wallet), Yoroi, Ledger Nano S/X (hardware wallets), and others. It’s important to choose a reputable wallet that aligns with your preferences.

Is Cardano environmentally friendly?

Cardano’s proof-of-stake consensus mechanism, which involves less energy consumption compared to proof-of-work systems, contributes to its environmental friendliness. This aligns with the network’s sustainability goals.

Can I participate in the Cardano community?

Yes, Cardano encourages community engagement. You can join forums, and social media groups, and contribute to the development of the ecosystem. The Cardano community plays a vital role in discussions, feedback, and network governance.

The post Cardano appeared first on Cryptonews.

Basic Attention Token is a digital advertising token which runs on the Ethereum blockchain. The BAT ecosystem is a decentralized open-source platform for advertisers, publishers and users who feel that the modern-day digital advertising is rigged in favor of intermediaries and large players such as Facebook or Google. The BAT project was launched in response to what its creators saw as increasing monopolization of the advertising business which leaves publishers and users on the receiving end.

At the same time, it aims to correct others issues related to digital advertising, such as compromised user privacy and an increasing number of ad frauds. The BAT token aims to do this by allowing the users to be compensated for the “attention” they give to the ads shown online, while the publishers can have more direct access to their earnings with the removal of the intermediaries. The final piece in this chain are the advertisers within the BAT ecosystem which provides them with insightful analytical data for better management and targeting of their ad campaigns.

BAT Wants to Change Current Digital Advertising Landscape

Key issues with the digital advertising market the BAT aims to fix actually affect three main parties in this market. These are:

• Users
• Advertisers
• Publishers

In the case of the users, the main identified problem is the erosion of their privacy and unsolicited tracking of their activities online. The reason for this is the fact that intrusive ad placements had initially failed to deliver the goods when it comes to revenues. These ads kept annoying the users since they were frequently irrelevant to their interests and hard to avoid. As the numbers of clicks on these ads dropped together with the revenues, the businesses responded by starting to gather the users’ private data and checking their browsing histories without prior approval.

In addition to being borderline illegal, this approach led to an increase in the use of mobile data for ads and trackers, rise in tracking malware, longer loading times for mobile users and decreased phone battery life due to ads. All of this contributed to increasing resistance to this approach from the current generation of ad-blind users who are now less likely to provide private data and frequently resort to installing ad blockers.

The state of modern day digital advertising can be described as hurtful for the content creators and publishers as well. Illegal tracking of data and excessive advertising has led them to face difficulties in using online ads to monetize their content. As the users try to avoid the ads that accompany content, they inadvertently hurt the sole source of income for many publishers. Revenues in this segment are now actually increased by having the ads removed, while the market faces the long-term duopoly of Facebook and Google as the main middlemen in this process. Just in the UK, these giants are forecast to collect over 70% of the total digital advertising spending. At the same time,frauds involving ads caused USD 6.5 billion in damage in 2017 alone.

BAT Token’s Integration with Brave Browser

To counter this, the Basic Attention Token platform was designed with a comprehensive approach in mind, aiming to help all the parties in the digital advertising industry chain. The process starts with the tracking of the level of engagement the users have while interacting with digital ads, and the storing of the related data in a distributed ledger on the BAT platform. The main unit of measurement here is the user’s mental engagement or “attention” invested in viewing digital advertising content.

To make the attention tracking possible, the initial stage of the BAT platform implementation involved its integration with the Brave browser which was developed by the BAT team. Brave is an open source browser built with the primary goal of delivering advanced privacy and speed to its users. This is supposed to be achieved by having Brave automatically block all malware and unwanted trackers used by the advertising middlemen. Simply put, Brave will go above & beyond the call of duty when it comes to ad and web tracker blocking, aiming to outperform even dedicated ad blockers with its zero-tolerance policy approach to ad filtering. In addition to this, Brave attempts to make each visited website use HTTPS protocol to provide the users with an even higher level of browsing security.

Brave will still anonymously track the user’s engagement (i.e. attention) in an anonymous and secure manner with the help of blockchain, but this type of “tracking” will not involve leaking this data to third parties which seek to profit from it. Instead of this, the user’s private information and the data gathered on where their attention is spent the most will be kept on the user’s device only. Brave is the first browser-based integration of the BAT technology, while the ultimate aim of the developers is to have the BAT system integrated with every mainstream browser such as Chrome or Firefox.

BAT Ads Ecosystem Aims to Benefit Users

The data which is stored locally plays a key role in the BAT system, particularly its component called the “BAT ads”. The BAT ads’ engine includes attention measurement and analytical systems as well as machine learning capabilities. These features allow for the measurement and evaluation of the “attention value” on the BAT platform. This value is calculated for each ad and it represents the measure of incremental time which the user spends in interacting with a particular ad, as well as the proportion of the visibility of the ad pixels compared to the content which is being viewed.

This is the point at which the browser’s machine learning algorithms can kick in, as they effectively “instruct” the Brave (or any other browser) to show only the advertisements which hold relevance to the users and customize their showing based on the stored data. At the same time, the ads can be displayed without the possibility to link them with the identity of any particular user. As this is done locally, i.e. on a single device, there is no need for the services of third-party tracking software which would forward private data to the advertising middlemen.

How Can BAT Help Advertisers and Publishers?

Rather than acting as an intermediary, the BAT platform attempts to link the advertisers with users in an arrangement which has the potential to be mutually beneficial. Advertisers can use BAT tokens to buy advertising space and pay the users for their attention. The process starts by providing the interested advertisers with the opportunity to use the BAT’s smart contract system to show ads which feature locked BAT token payment to the user. Whenever a user interacts with or views the ad, a portion of this token payment is distributed to them as compensation for the time they spend in viewing an ad.

In return, the advertisers can increase their return on investment by having access to the analytical data which are gathered by the BAT’s machine learning and attention measurement systems. Based on these data, the advertisers can have an impartial insight into the performance of the specific ads in the field. This allows them to tailor their campaigns more easily, as the data on the user’s attention can inform their approach to creating more personalized and user-tailored ads in the future. In addition to more streamlined targeting, the BAT platform aims to use this system to reduce ad-related frauds.

In addition to users and advertisers, another potential beneficiary in the BAT system are publishers or content producers which host ads. They can retain ad revenue in proportion to the user attention value they create. In fact, the more efficient a publisher’s content is in drawing constant attention from the users, the larger the allocated revenue will be. Based on the BAT’s profit-sharing model, up to 70% of ad revenue goes to the publishers. At the same time, Brave keeps 15% and leaves the users with an option to keep their 15% share or donate it to their favorite publisher. In addition to receiving a larger piece of the advertising pie usually reserved for the middlemen, the publishers using the BAT platform would be incentivized to create more engaging content on diverse publishing platforms and thus secure access to a wider range of both advertisers and users.

Finally, the BAT gives them the opportunity to select the particular ads which will be shown alongside their content, helping them create and offer better user experience for the content consumers. The list of BAT’s verified publishers is growing, with its system accepted by The Washington Post, Guardian, Vimeo, Vice and others.

Brave Payments Program

Integration with the Brave platform allows the BAT platform to implement an additional feature which is closely related to the functionality of its token. Once fully implemented, the Brave Payments program will make it possible for the users to provide support to their favored content producers. This system works like this: from the total balance of tokens they receive for their time spent on ads, the users will be able to set aside a specific amount of BAT tokens and send them to their favorite publishers, content creators or websites in form of a donation, similar to the system which is being used on Patreon. To make this possible, the BAT developers developed a BAT wallet which is embedded with the Brave browser in order to allow for the easy transfer of tokens for this purpose.

In addition to sending donations and tips, the BAT system allows the users to spend their tokens on the platform to gain access to the restricted content or premium products, or value-added features such as photos in high resolution or data services. Another planned implementation of the token transaction system on the BAT foresees using these tokens to pay for the selected quality comments on forums or voting for them. To keep track of these transactions, users will have access to the Brave Payments dashboard which will give them information on their account balance, incoming contributions and the overview of the websites or content creators they have “tipped” with their earned BAT tokens.

BAT Token Availability and Development History

Due to its highly specific purpose and use, BAT tokens cannot be mined. The tokens were offered as part of the ICO which took place in May 2017, with their total supply fixed at the amount of 1,500,000,000 BAT. One third of the tokens were kept by the BAT team to be used as grants for the promotion of the token and the development of the user growth pools. No more tokens will be created once these pools are exhausted. In February 2018, BAT team launched the referral scheme which rewards publishers with BAT tokens if they manage to bring new users to the platform.

As of November 2018, the BAT’s market cap has reached the value of USD 328 million, while the currency recorded its current all-time high in early 2018 when it had the value of USD 864 billion. BAT can be bought through its partner Uphold.com or by using the Brave wallet to convert the BTC or ETH cryptocurrency to it. At the same time, BAT is an ERC-20 token which means that it can be stored in ERC20 compatible wallets.

BAT tokens are available for trading on crypto exchanges such as Coinbase and Poloniex.

The history of the BAT token starts with the Brave Software company which was established in 2014. The mastermind behind this project is Brendan Eich, founder of Mozilla and Firefox and the inventor of the JavaScript programming language. Other important team members are security engineer Yan Zhu and Marshall Rose, inventor of the Simple Network Management Protocol. The BAT team also features advisors who are household names in the crypto scene, such as Zooko Wilcox, founder and CEO of Zcash and Ankur Nandwani, Product Manager at Coinbase.

The post Basic Attention Token appeared first on Cryptonews.

What is ARK?

Billed as the “All-in-One” blockchain solution, the Ark platform is all about linking various chains and customizing them for a broader range of use cases. To make this possible, its creators focused on creating a decentralized ecosystem focused on empowering its users to design and deploy their own blockchains without too much hassle. This is supposed to reflect the platform’s aim to become a flexible solution for the real-life problems which are solvable by blockchain, instead of “theoretical” ones. Let’s see which features are promoted by the ARK team in response to this general goal:

• Full decentralization is a shortcut to bringing as many users to the blockchain as possible. The ARK platform has implemented a modified Delegated-Proof-Of-Stake (DPoS) consensus mechanism. It features a strictly limited number of delegates who are in charge of keeping the network operational in exchange for block rewards, resembling those received by miners with other cryptocurrencies. The Ark’s DPoS version features an adaptive voting system and is said to incorporate some improvements over previous DPoS implementations.
• The ARK team sees lacking speeds as yet another obstacle to implementing blockchain as a solution suitable for frequent transactions. With its current 8-second block generation time, ARK aims to become one of the faster solutions in the crypto industry. According to its developers, shortening the time the users need to spend on transaction processing should bring the ARK closer to becoming a full-blown transaction platform.
• ARK wants to keep blockchain technology both “lean” and scalable with the help of its SmartBridge technology. ARK’s Smart Bridges are a customized technology which supports offloading of the non-essential functions to other side-chains. In addition to keeping the ARK blockchain fast, this technology is supposed to resolve the issue of scalability i.e. the ability of blockchain to deal with the increasing size of its user base.
• SmartBridge technology is also supposed to promote building connections among various blockchains which are in use today. One of the features of the ARK project is to help with building an ecosystem consisting of as many interlinked blockchains as possible. Blockchains which are said to be “bridged” in this manner can establish communication and perform common tasks and advanced functions. In addition to incorporating various chains, ARK will offer support for a broader range of coding languages to be used with the platform.
• ARK platform seeks to enforce open source principles among its users: Recognizing that the needs for blockchain within individual projects may differ, ARK developers allowed the platform users to launch their own blockchains based off the Ark main net. By being effectively “cloned” from the ARK model, these offshoot chains can be made compatible with the Ark’s SmartBridge technology for reaping additional benefits of using the platform.

How Does Ark Work?

Operation of the Ark platform is based on the implementation of three main components:

• SmartBridges
• Support for alternative programming languages
• Push button deployable blockchains

With SmartBridges, the ARK team seeks to unify features of various coins used across different chains, as well as make each application on them more accessible to a larger audience. The proposed advantages of this approach should be more significant compared to what could be achieved by relying on one chain alone. This is to be done by focusing on seamless communication between otherwise incompatible chains and enabling triggering of various events across them. To make it possible, the Ark’s SmartBridge model relies on the implementation of the Encoded Listener technology paired with data sets called Vendor Fields.

What Are the Ark’s Encoded Listeners?

An Encoded Listener node functions as a “listening post” for transactions taking place across multiple chains. They are created by inserting several lines of code into a single blockchain, allowing it to connect to the Ark blockchain as the hub and use listener nodes to track inputs on several blockchains. Their implementation should be easy as it is not supposed to have an impact on the regular operation of the blockchain. Chains involved in this type of collaboration allow their designated listener nodes to communicate with their counterparts via the Ark blockchain.

This is where the Vendor Fields come into play, as these specialized data sections contain information on tasks which a particular encoded listener nodes can perform. The nodes regularly check the vendor field data in order to find out what the can “do”, while the setting of a dedicated node remains an option for any party wanting to help the network run better.

The encoded listener nodes can be particularly beneficial for exchange platforms such as Changelly or Shapeshift. In this case, the encoded listeners would help them identify a transaction type as the one involving exchange. In this case, these nodes effectively become intermediaries for transactions taking place with the help of SmartBridges, with the added opportunity for the exchanges to charge their regular transaction fees for exchange operations and maintenance of the data flow.

How Could SmartBridge Work in Practice?

While the SmartBridge technology is still in the early stages of its deployment, the Ark team has already offered support for some of the major chains, such as Bitcoin and Ethereum. In practice, its workflow may unfold along these lines:

• If the user wants to trigger an event on one blockchain by means of another one, the first thing to do is to verify if that chain is compatible with SmartBridge.
• If everything checks out, the user can forward the SmartBridge transaction to any compatible blockchain with the help of the Ark wallet. For example, having a SmartBridge connecting Ethereum and Ark chains allows for the management and execution of the Ark-based transactions via the interface used to access Ethereum and vice versa.
• In the case of exchanges, the SmartBridge would allow a user to send a certain amount of ARK tokens to the wallet they have with a particular exchange. At the same time, the exchange would identify the transaction and provide for automatic conversion of ARK tokens into the desired cryptocurrency before the funds end up in the user’s wallet.

How Can Ark Offer Better Accessibility?

Providing support for a wide range of programming languages is the approach by which the Ark platform hopes to reach a broader base of software developers. Included support for 18 mainstream and “alternative” languages, including Python, Elixer, RPC, Java,.NET and others, should make the Ark a more accessible solution not just for devs, but for the users who want to create their home-brew blockchains.

With this in mind, the Ark team also hopes to work on a user-friendly interface, with which the deployment of blockchain can be reduced to interacting with a push button. In fact, Ark wants to support an easier development of individual projects by allowing its users to create their own blockchains which are, in essence, forked from the Ark chain. Forks created in this manner should be a viable option for startups, since they would still offer the key features of the Ark “parent” chain, such as SmartBridge technology.

Ark’s Delegated Proof-of-Stake

The Ark platform runs a modified Delegated Proof-of-Stake (DPoS) consensus mechanism. Instead of having miners secure both the transactions and the network they run on, the Ark achieves this by relying on delegates. While the number of prospective delegates is virtually limitless, only the holders of the ARK tokens are ultimately designated as such through the use of the voting system.
The number of active delegates who can be voted on is capped at 51. The 51 nodes which receive the highest number of votes become eligible to forge ARK blocks. This system is supposed to reduce the risk of having large ARK holders or organizations take over the network by constantly voting for their favored forging nodes.

The underlying system works as follows:

• Token holders can vote for a single delegate at a time only. There is a related voting fee to be paid in the amount of 1 ARK. The same fee applies to “unvoting” a delegate, whenever that right is exercised. The team behind the platform plans to further reduce the fees on the network.
• While the Ark users are encouraged to vote regularly, not all votes are born equal: the more ARK tokens one possesses, the more weight his/her vote has. Registering as a delegate costs 25 ARK.
• The blocks on the Ark network are forged every 8 seconds, with each delegate receiving 2 ARK tokens for the block they forge. Upon the launch, the Ark platform featured 125 million ARK tokens in the genesis block.
• Delegate candidates involved in the voting process can try to secure their election by preparing written proposals detailing their plan of operations and the ways im which the platform could be made more secure.
• In addition to this, the delegates can try to secure votes by offering participation in profit sharing schemes. These are related to the rewards they get for forging new blocks, with potential voters being able to get their cut in forms of dividends which are distributed over time.
• Another popular option for the delegates is to promise to fund a development project oriented towards promoting the better operation of the Ark platform. The voters may be offered an equity stake in the proposed project or given access to freely provided services.

How Does Delegate Voting Work with Ark?

Voting for delegates as part of the Ark’s DPoS system is possible only after one picks out one of the available wallets for storing ARK tokens. The process encompasses several basic steps:

• First, one needs to set aside some tokens which are to be transferred. Tokens can be purchased on cryptocurrency exchanges such as Binance and Bittrex. The full list of exchanges trading in ARK is available here.
• Tokens purchased from an exchange are sent to the public address found with the user’s wallet.
• One of the more practical wallet options is to use those offered on the Ark’s website. They include a desktop wallet, paper wallet and web lite wallet together with Android wallet and iOS wallet.
• Sending ARK is made possible based on the network’s existing dynamic fee system which replaced the earlier one running on fixed fees. Delegates can determine their own minimum acceptable fee involving various transaction types. Fees are paid to the forging delegate in charge of processing blocks which feature these fees. The larger the fee set by the user, the faster the inclusion of the transaction in a block will be.

As of February 2019, more than 108 million ARK tokens were in circulation, out of 139 million of the total planned supply. In the same period, the currency itself had the market cap of USD 52 million, down from its historic high of USD 910 million in January 2018.

Transaction Processing with Ark

The current iteration of the Ark platform is capable of processing 18.75 transactions per second i.e. 150 transactions per block. For 2019, the team promises to offer support for four new transaction types, with these being:

1. Timelock, as a simplified smart contract function that restricts the spending at particular addresses unless a particular time or block height requirement is met.
2. Multipayments, with its ability to combine payments with the goal of reducing the payload on the blockchain and handling larger transaction volumes.
3. Delegate resignation, with the option for the delegate to resign their position and preventing the community to vote for the delegate in question.
4. IPFS, as the way to secure easier timestamping, verification and encryption of files via a dedicated interface.

The ARK plans to control currency inflation from the outset, with planned reduction going from 6.31% in the first year to 4.02% percent in the tenth year of its launch.

Project History and Competition

The Ark project came into existence in October 2016. Two months later, its test net was launched while the first version of the main net went live in March 2017. The project’s current President and CEO François Thoorens is one of the industry veterans involved in the development of Lisk. Together with Bitshares, Lisk served as one of the role models for the design of the current version of ARK, only to become one of its main competitors.

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Lisk was designed as a platform and decentralized network whose main task is to make working with blockchain much easier for developers. Its designers Max Kordek and Oliver Beddows saw blockchain building as being burdened by the need to stay up to date with basic coding at its foundation. Lisk provided the platform which streamlines application development by focusing on the Javascript programming language. The goal here was to open the way for a larger number of programmers to start working on custom dapps and independent blockchains under the umbrella of a single system. In 2016, an open-source blockchain app platform called Crypti was forked, creating Lisk as we know it today.

Lisk’s aim to bring a broader range of developers into its fold is supposed to help it face the competition from the likes of Ethereum and NEO, which also operate as platforms focused on dapps among other things. To bring this vision closer to reality, Lisk gives its users access to its Software Development Kits (SDKs) and sidechains. In essence, sidechain works as a separate blockchain linked to the main blockchain via two-way pegging system. In this manner, digital assets on several chains effectively become interchangeable, with no negative impact on their speed or performance. At the same time, tokens on these chains can be easily transferred and synchronized. For the developers, the use of sidechains allows for a higher degree of customization when working with asset tracking, consensus mechanisms or network scaling.

Lisk operates its own core chain called Mainchain, with its team and 101 delegates being in charge of its security. Developers can freely set up their own blockchain networks as sidechains, without the risk for the Mainchain to be affected by the bugs which can appear on them. The consensus algorithm is based on Delegated Proof-of-Stake (DPoS), while sidechains act as databases needed for the operation of the developed apps. The LSK tokens on the network are used for voting for the nodes which verify transactions and create new blocks.

The total supply of the coins is currently 127,136,218 LSK, with 111,901,077 of them in circulation as of November 2018. Their market cap value currently stands at USD 315 million, down from more than USD 4 billion it had in early 2018. LSK coins are available for buying/selling on major crypto exchanges such as Poloniex.

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The QTUM (pronounced “quantum”) project was launched in Singapore in 2017 based on a vision to unite the best segments of Bitcoin and Ethereum technologies on a unified hybrid platform. Members of the Qtum Foundation (Patrick Dai, Neil Mahi, Jordan Earls and others) running this project included individuals who were active in both of these crypto communities. By making it possible to run the Ethereum Virtual Machine (EVM), the runtime environment for smart contracts in Ethereum, on QTUM’s own blockchain which was based on Bitcoin, the founders hoped to enable fast programming of smart contracts combined with the innate stability of this blockchain for the best results.

As QTUM primarily targeted businesses and institutions, this system aims to eventually improve the automation of entire smart contract technology and bring down the costs associated with its use. To make these contracts faster to build as well as execute, QTUM platform comes together with a range of smart contract templates, pre-built contracts and tools for streamlined development of new decentralized apps (dapps).

These will allow companies to create their own coins for the products and services they offer, as well as automate management of their supply chains. The QTUM founders considered Ethereum platform as having unresolved stability issues, prompting them to combine its smart contract functionality with a more stable Bitcoin blockchain. To make these two work together, QTUM implemented the Account Abstraction Layer technology which allows for the conversion of its blockchain data into the account system used by Ethereum.

Instead of Bitcoin’s proof of work mechanism, QTUM uses its proof of stake consensus model paired with Bitcoin’s UTXO (unspent transaction outputs) system for verifying transactions. This allows it to process transactions simultaneously without being dependent on their sequence. Another benefit of the UTXO system for the QTUM is that it enabled it to run light client nodes on its network, which keep records of only the most recent or the most important blocks for the transaction verification. This made it possible to manage one’s smart contracts from mobile phones which often have to deal with slower connections or lower storage capacity.

With its focus on making smart contracts “smarter” and more readily available, QTUM will arguably compete with the likes of Ethereum or NEO. Back in early 2018, its market value went over USD 7 billion, less than a year after its introduction. In November 2018, QTUM had a market cap value of USD 351 million. The total amount of coins in circulation at the time of writing is 89,015,652.

QTUM coins are available for trading for other cryptocurrencies on crypto exchanges such as Binance or Bittrex.

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What is Veritaseum (VERI)?

Veritaseum is a blockchain-based fintech software company which delivers global access to peer-to-peer capital markets through its decentralized platform, digital asset research, and transfers.

At heart, the project seeks to level the economic playing field by creating software which enables participation in P2P capital markets without intermediates like banks, brokers, financial advisors, and other mediators. Anyone with an internet connection can sign up for these capital markets using Veritaseum.

The Difference Between Veritaseum and Veritas
Veritaseum is a software company, while Veritas (VERI; not to be confused with Veritas Mining or VeriCoin (VRC)) is a crypto token used to pay for Veritaseum’s products and services.

• The official ticker symbol for Veritaseum token: VERI
• Token type: ERC20
• Total token supply: 100 million VERI
• Circulating Supply: 2,036,645 VERI
• Veritas Paper – a brief introduction to Veritaseum products and services.

What Is The Veritas (VERI) Token?

The Veritas (VERI) are ERC-20 tokens issued on Ethereum blockchain. They can be stored in any Ethereum wallet (MetaMask, MyEtherWallet, Ledger Nano S, Trezor, Parity, etc.). It also implies that miners verify all VERI transactions, and token holders are protected by the advanced security of the Ethereum network.

Nevertheless, Veritaseum’s website states that its products are not dependent on any particular blockchain and can be moved to different blockchains. Such a move would require some engineering efforts, but the company expects most new blockchains to be backward-compatible with most Ethereum applications.

The use case of VERI token is to redeem with Veritaseum software for advisory services, research and to gain entry into Veritaseum’s autonomous financial machines, P2P value trading system, and P2P letters of credit.

The company also warns users that Veritas tokens are not an investment, but rather an essential part of the software. However, the company cannot prevent token holders from speculating on its value.

How Veritas (VERI) Works?

Veritaseum offers tools and software to participate in peer-to-peer capital markets. The platforms utility token VERI is used to purchase access to the platform’s products and services, which range from asset tokenization to financial research data and even self-custody escrow services.

At the moment, the company offers both centralized and decentralized solutions.

Veritaseum’s Centralized Solutions
The centralized Veritaseum’s solutions are for institutions which are not yet ready to take part in decentralized capital market systems. It runs on servers that are controlled by the client organization. The centralized services include:

• A digital exchange made for prime brokerages and exchanges.
• Smart arbitrage system which provides cross-platform liquidity for trading digital assets.

A simple example would be an institution like Jamaican Stock Exchange, which can utilize Veritaseum’s centralized solution for trading immutable digital assets like Bitcoin, Ethereum or other cryptocurrencies.

Veritaseum’s Decentralized Solutions
Veritaseum’s decentralized software runs on top of Ethereum blockchain. It allows individuals and organizations to trade digital assets without expensive brokerages and intermediaries.

Veritaseum’s smart contracts enforce transactions on mutually agreed terms. Therefore, the agreements cannot be broken, and both parties are bound to deliver under all and any circumstances. Such use of blockchain technology enables Veritaseum’s users to deal at much lower costs compared with traditional financial services.

In total, six distinct products constitute Veritaseums distributed services: VeADIR, VeRent, VeResearch, VeExposure, VeManagement, VeTokenizaton and VeAssets.

VeADIR
VeADIR stands for Veritaseum Autonomous Distributed Interactive Research. It is the core component of the platform. It gives exposure to vetted research subjects and serves opportunities to grow its asset base through positive risk-adjusted returns. For instance, if someone wants to invest in an ICO and needs comprehensive information to weigh the risks, they can submit a query via VeADIR, pay with VERI and receive the requested information from Veritaseum. Research results then are fed back into the VeADIR system, and the cycle continues. All information is transmitted in machine learning language and needs to be translated to common vernacular using smart contracts.

Also, VeADIR allows purchases based on previous research. Everyone can purchase constructed model portfolios built on the research findings.

Users can order entire research reports or choose to pay-per-query. Whenever you request information on the specific organization, VeADIR contacts it and compensates with VERI for the answers. This information exchange also works the other way around – any organization can request VeADIR to be analyzed and receive compensation in VERI, too.

At the moment, the application is still in beta. The future ambition is to make VeADIR 100% autonomous with AI, so it can handle user requests automatically instead of sending the queries to be verified by the Veritaseum team.

In order to use VeADIR you need to:

1. Set up a MetaMask account using your browser (Chrome, Safari or Firefox).
2. Choose whether you want to sign up as an individual or entity.
3. Pass AML/KYC verification and get verified as a real person or organization.
4. Obtain VERI tokens to submit queries to VeADIR.

Business and not=for-profit entity level AML/KYC now available in the VeADIR. Now businesses can sign almost as quickly as individuals. Who is YOUR favorite, fully functional DAPP!!! See https://t.co/Yr2m1GKqIU pic.twitter.com/ym4Pt4Feia

— ReggieMiddleton (@ReggieMiddleton) October 18, 2018

VeRent
VeRent is the platforms rent component for peer-to-peer, over-the-counter VERI token exchange. Here, exposure buyers and seekers can rent or acquire Veritas tokens if they want to use VeADIR software suite services. The platform creators stress the fact that VeRent is not an exchange nor a marketplace to buy or sell securities.

VeExposure
According to the company’s website, WeExposure “offers direct access to VeADIR for users that are able to provide both VERI and Ether for an exposure.” In other words, it is a unique facility made for assisting people with available VeADIR access opportunities.

VeResearch

_{Source: Veritas.veritaseum.com}

VeResearch is the platforms human-made research counterpart to VeADIR. The team has a proven track record of fundamental, forensic and macro analysis and has been studying economics and valuation of distributed systems since 2013. VeResearch offers users a chance to obtain investment models for any crypto asset analyzed by the platform. These models are meant to supplement those built by VeADIR, but interested parties can also purchase the valuations separately.

VeManagement
VeManagement is Veritaseum’s portfolio management app and back-end administration tool for the VeADIR portfolio. Here, platform users can preview and manage the model portfolio made with VeResearch by signing them with their private keys.

VeTokenization
An automated system designed to create custom Veritas tokens with new assets, opportunities or exposures at VeADIR. It consists of an admin web app, asset configuration sheet, and an Ethereum registry contract.

VeAsset
VeAsset module is one of the latest developments in VeADIR’s ecosystem. It’s a module for transacting fully redeemable, secured and insured VeGold, VeSilver, and VeSTB tokens. Each of these tokens is 100% backed by their assets (0.999% Gold, Silver, and a mixture of precious metals). These tokens represent the title to ownership of these assets and can be traded on the platform.

How Can You “Veritize” An Asset?

To “Veritize” an asset means assigning a customized VERI token to a particular asset. Think of token with unique properties which are bound to it via smart contract. That way you can Veritize almost any asset. For example, take a building lease, tokenize it and trade it on the digital asset exchange.

Here’s a more elaborate explanation of the process.

Token Sale & Controversy

Veritas token sale lasted from 25 April 2017 until 26 May 2017. During one month, the company has managed to raise from $6,480,882 to $12 million (varies per source) in Ether. 30 VERI were issued for 1 ETH.

However, the ICO didn’t go without blunders, as hackers stole more than 36,000 VERI. The tokens were taken out of the project team’s wallet, thus causing little harm to the ICO participants.

Perhaps the most obvious point of discontent is VERI token supply. Out of 100 million issued tokens, only 2 million were distributed to the token sale participants. Together with the 36,000 stolen tokens, they make the total circulating supply of 2,036,645 VERI. The rest 97.9% sit in a wallet held by the CEO Reggie Middleton, causing an outstanding concentration of influence over the remainder of the tokens. Even the slightest token sell-off by the team could result in plummeting prices, which dissuades many seasoned crypto investors.

According to Reggie Middleton, most of the held Veritas tokens are for over-the-counter bulk purchases to private investors. Likewise, all the fees collected by VeADIR go back to the team’s wallet, too.

How to Get Veritaseum?

As of 2018, Veritaseum trades on HitBTC, Mercatox, EtherDelta (ForkDelta), LATOKEN, Fatbtc, and Tokenomy exchanges.

Besides, there is a possibility to rent VERI tokens via the VeRent app. At this moment it’s not possible to buy VERI tokens directly with fiat currencies

Current State of the Project

Veritaseum’s ever-growing team has developed a functioning dApp, although most of its components (except for VeResearch and VeManagement) are still in beta. Besides, the team has been on track with their roadmap, completing most of the scheduled tasks by the end of 2017. The remaining venture is a peer-to-peer OTC direct value trading, which is expected to launch in the 4th quarter of 2018.

In the most recent news, Veritaseum has announced the expansion to Africa continent and opened its operations in Lagos, Nigeria, and Kampala, the capital city of Uganda and seems to have ambitious plans for further Africa expansion.

Unfortunately, Veritaseum doesn’t have a complete whitepaper, so most users and interested parties have to gather information scattered throughout the project’s blog, website, Twitter and YouTube channel. Due to an unclear picture of how Veritaseum was conceived, its roadmap and code development progress reports, many people have developed skepticism towards the project.

Conclusion
Veritaseum is an ambitious project which has faced numerous scam allegations. It presents a unique opportunity to tokenize one’s assets (like real estate, precious metals or government bonds), buy and sell digital assets on the blockchain and gain exposure to various trading opportunities. Despite that, the public allegations and communication issues cast a shadow over the team’s efforts and progress.

VeADIR software suite is still in beta, but people can already try it, which can be a sign of more exciting things to come for Veritaseum. As with most blockchain projects, it has plenty of potential, but for now, it’s anybody’s guess what will come out of it.

Similar projects
DigixGlobal – tokenizing gold on Ethereum blockchain.

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While the Stratis platform has changed its scope and tech over time, it never strayed too far from its main goal: helping the enterprises reap the benefits of the blockchain technology in a highly streamlined manner. The main idea is to combine the model of cloud computing with blockchain in order to reduce the pressure on the businesses to provide support for running a full-blown blockchain with their own resources.

Technologically, this is to be achieved by combining the cloud computing with the following tools:

• Lite clients
• Sidechains
• Application programming interfaces (APIs)

While Stratis started out as the platform for the provision of logistical support to the companies wanting to deploy blockchain, it soon shifted its focus on becoming a blockchain development network which allows for the speedy creation of custom blockchains and simplified development of apps on it. With this goal in mind, the Stratis team promises to resolve the following issues with the existing blockchain technology:

• Implementation of blockchain technology can be desirable and profitable for businesses, but it often comes with huge price tags relating to the deployment of infrastructure, maintenance and security. Cloud-based blockchain services come at a lower cost as they are provided via web interfaces using remote infrastructure maintained by Stratis, instead of being maintained by the businesses which need those services.
• Even when companies have access to the blockchain, tailoring it to the needs of individual businesses comes off as a demanding process which the Stratis wants to simplify. With the Stratis platform, the organizations have an opportunity to get access to their own private chains which are customized based on their needs and available resources while being linked to the parent Stratis chain.
• Running a blockchain means that businesses often do not have full control over its features and that they are unable to ensure continued development of appropriate apps on it. With Stratis, the process of application development is simplified by allowing the use of C Sharp (C#) programming language, Microsoft .NET framework and other more frequently used systems compared to, for example, C++ in the Bitcoin Core. In addition to this, the Stratis personnel is available as a consultant in the process of building and hosting dApps and smart contracts with the help of the Stratis technology.

How Does Stratis’ BaaS Model Work?

The Stratis platform encompasses various components:

• Blockchain-as-a-Service (BaaS) platform
• Private chains
• Stratis Smart Contract platform
• One-Click Deployment system
• ICO Platform
• Stratis Identity solution

Starting out as the BaaS platform gave Stratis enough time to align its implementation of blockchain with the features of the cloud computing model. Users who subscribe to its BaaS model, such as companies, are relieved of the need to maintain costly full client nodes if they need access to the blockchain. Instead of this, Stratis will be in charge of managing blockchain networks and distributed ledgers via cloud computing. This entails providing the company with access to:

a) Blockchain infrastructure
b) The platform it runs on
c) Software needed for its management.

The advantages of this approach supposedly lie in the fact that this approach allows the companies to refocus the time and resources they would spend on running blockchain on improving their daily business instead. At the same time, there is no need for them to hire expert personnel needed to run blockchain and pay attention to issues issues such as scalability. While the financial companies were the initial target group for its BaaS model, Stratis has since expanded its scope to target any business which wants Stratis to customize its ledger to its specific needs via APIs or lite clients. In 2018, the Stratis solution was made available in the BaaS segment of the Microsoft Azure’s marketplace.

How Can Stratis’ Private Chains Help Businesses?

Apart from offering blockchain as a service, Stratis aims to become the turnkey solution provider for businesses that want to create their own personalized blockchains or the sidechains. While these private blockchains are launched by third parties (companies, institutions or organizations) they are fully anchored to the main blockchain provided by Stratis. The sidechains are developed with the assistance provided by Stratis and the clients are able to access them via clients and APIs.

While the use cases for these private chains may vary, they should help the businesses with the following:

• Sidechains allow for the deployment of apps without the need for the maintenance of an entire network, as this option is often rather costly for businesses. In addition to lower costs, this option lends itself as an arguably more secure and stable solution, since the sidechains are linked to the main Stratis chain.
• Sidechains are presented as easy-to-use platforms for companies to test their applications running on the blockchain. In addition to learning more about their creations’ performance and familiarizing themselves with the blockchain technology, the companies can shorten the time needed for their applications’ deployment.
• Sidechains can have their own currencies. These currencies can be used as a means to acquire gas which is used for running smart contracts. These assets can also be exchanged for the STRAT token with the help of the system which enables the withdrawal of deposits.
• Sidechains are compatible among themselves, making it easier to manage the transfer of assets and values between them.

Whatever their specific implementation may be, all Stratis users will have an opportunity to customize various operational aspects of their sidechains. This includes changes to their block sizes (if a businesses need to process a higher volume of transactions, for example), methods of transaction management and approaches to the storage of the metadata. While sidechains can operate almost independently, their security is derived from the Stratis parent chain as they run on the base code this chain was built on.

Another important characteristic of the private chains is their autonomy from their counterparts, i.e. the Stratis platform makes it possible to introduce changes to one’s custom chain without this having impact on other chains on the same platform.

What is One-Click Deployment System?

In order to make the access to blockchain features easier and compete more efficiently with the likes of Ethereum, Lisk and Ark, Stratis had to implement a fast tool for the blockchain deployment, literally with a single click. The system named “one-click deployment” allows for the out-of-the-box functionality of deployed sidechains, together with the features of the Stratis parent chain.

With its one-click node provisioning system, the Stratis users can also deploy sidechains to other crypto platforms (such as Bitcoin, Ethereum, BitShares and Lisk) and get access to the features that are not part of the Stratis package. In fact, the Stratis team invites its users to test different platforms they want to combine with their own solution, with the goal of bringing their use in line with their specific business goals. Newcomers in this field are also invited by the Stratis to use its consultancy services to make this transition to the most appropriate blockchain as smooth as possible.

Stratis as the Smart Contract and ICO Platform

In addition to its focus on the blockchain and its business implementation, Stratis developers push their solution as a smart contract and ICO platform.

Smart contracts developed on the Stratis platform are primarily aimed at the users who want to deploy their own enterprise blockchain. These contracts are written in C# and present themselves as fully .NET framework compatible systems. Smart contract development with Stratis comes with the promise of the following benefits:

a) The Stratis’ use of sidechains is described as a means to prevent the bloating which takes place when the number of smart contracts on a single blockchain gets too high.
b) Security of smart contracts is also ensured by the separation of sidechains and the main blockchain which is protected from the various negative impacts a smart contract may have.
c) Smart Contracts in C# undergo comprehensive verification during their deployment and before they are activated on the blockchain.
d) Due to the fact that all tokens developed on sidechains are pegged to the Stratis token, the gas used for running smart contracts is provided by them.

The Stratis team has also created an ICO platform for launching initial coin offerings on its blockchain. This service is separated into various packages (the entry-level one is free to use) with customizable layouts and integration with the Changelly exchange for better currency support.

What Is the Stratis Identity App?

Another offshoot of the Stratis technology is the Stratis Identity app which is used for identity management and storage on the blockchain. The customers can use it to confirm their identities and verify personal information with the help of the blockchain. The app is supposed to find the following business and non-business uses:

• Verification of identities prior to financial transactions
• Checking employment history and records
• Getting insight into the users’ identities prior to meeting them in person (for business or private reasons)

What Is Stratis’ Architecture Built On?

The architecture of the Stratis platform runs on three main components:

• Stratis Bitcoin Full Node. This segment is the “engine” of the platform and it runs its interface, infrastructure and node policy layers. It is also in charge of running the Proof-of-Stake algorithm which ensures the consensus on the Stratis network. Full Nodes on this platform hold a copy of the Stratis blockchain, with the support being provided for the Bitcoin blockchain as well. These nodes ensure autonomous validation of transactions and blocks on these two chains. The C# Full Node was launched in December 2018.
• LibConsensus is the library in which the Bitcoin Core provides a portion of the Consensus Layer code. In turn, the Consensus Layer manages the validation of blocks.
• NBitcoin is part of both the Consensus Layer and the Network Layer on the Stratis network. NBitcoin is a cross-platform Bitcoin implementation developed in C# which also uses Microsoft .NET framework. It is involved in the messaging between the nodes which exist as parts of the Network Layer.

How Does Stratis Approach Scalability?

Scalability is one of the frequently mentioned issues related to blockchain platforms. Stratis aims to address them in three main ways:

• Private blockchains on the Stratis platform are configurable, which means that businesses and individual users can determine the size of its blocks based on their needs and resources.
• Scalability should be more manageable based on the platform’s elimination of a single ledger and support for the deployment of individual ledgers on a host chain.
• The proof-of-stake model is seen as balancing the interests of end-users and the full nodes in charge of securing the platform.

Which Industries May Profit from Implementing Stratis?

The Stratis team has identified specific industries which may be the prime targets for the use of their technology. These are:

• Medicine. This is primarily related to the medical research field, as the results of these endeavors will be stored in the databases as immutable records available for perusal by researchers, reviewers and publishers.
• Product verification. Here, the Stratis blockchain aims to become the platform for the storage of information on verified and authentic products, thus reducing the chance of them being counterfeited and helping with their tracking.
• Financial industry. Stratis is seen as the technical foundation for the future fintech systems which would manage settlements, clearance, escrows, identities, know-your-customer practices etc.
• Supply chains. Verticals such as transport and tourism are increasingly relying on the Internet of Things which profits from fast and real-time consensus on their supply chain networks. Stratis is supposed to make these interactions less dependent on human interactions.

The STRAT Token

The Stratis Token (STRAT) is the currency which ensures the transfer of value on the Stratis platform. The token holders reap rewards for staking the STRAT, provided that they have met the tier value required to run a node. The token also serves as the gas on the platform and is available as a means of payment for transactions on the network. In addition to this, the users can also invest in it by buying it on crypto exchanges such as Binance, Bittrex and Poloniex. The tokens can be stored in various ways, with the recommended one being the use of the officially supported wallets such as Stratis Core and Breeze Wallet.

The ICO for Stratis took place between June and July 2016, raising 915 Bitcoin in total or approximately USD 675,000. As of December 2018, its market cap stood at more than USD 147 million, down from the historic spike of just above USD 2 billion from early 2018.

The Stratis Team

The Stratis project is the brainchild of Chris Trew, an IT industry veteran with a background in finances. He joined forces with Nicolas Dorier, a key developer behind the NBitcoin which was incorporated into the Stratis platform, and one of the developers of the Bitcoin Core. The team has headquarters in the UK, while its members reside in various parts of the world.

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What Is IOTA?

Launched in June 2016, the IOTA platform betrays its main purpose in the name itself, with it being the short form for the “Internet of Things Application”. In short, the Internet of Things (IoT) is the concept involving the extension of internet connectivity to include as many physical devices within a single ecosystem. As such, it is found at the heart of many hi-tech concepts such as smart homes and smart cities which feature connected devices capable of exchanging data with the purpose of achieving operational synergy.

Supported by its MIOTA token, the IOTA platform’s main task is to enable instantaneous and feeless transactions between devices which are parts of the IoT network, no matter how big or small it is. In addition to this, IOTA offers immutable data history tracking and computing resource sharing, with plans to eventually expand its role to become the payment settlement and data integrity layer of smart cities, energy grids, infrastructure, financial industry, etc.

The IOTA platform does not rely on the blockchain technology by virtue of its removal of blocks, central ledger and miners which would be otherwise required to run it. Instead of a blockchain, IOTA relies on its own distributed ledger solution called the Tangle, which is supposed to overcome the shortcomings of blockchain related to rising transaction fees and processing scalability. The platform emerged as the joint work of Sergey Ivancheglo, David Sontesbo, Serguei Popov and Dominik Schiener.

What is IOTA Trying to Achieve?

Despite being largely focused on the Internet of Things, the IOTA developers hope to see their platform aligned with some of the broader goals of the current generation of crypto technologies:

• The Internet of Things is an emerging technology whose pairing with cryptocurrency such as IOTA should offers benefits to the global economy. Making the machine-to-machine (M2M) transactions on the IOTA platform both automatic and more efficient should help with the adoption of the Internet of Things technology which is already a force to be reckoned with on a global scale. With more than 26 billion IoT devices being in use as of 2019, their everyday use becomes more prominent as various sensors and cameras are now being used to keep track of conditions in manufacturing and agricultural facilities, along the transport lines, roads and bridges as well as in stores and homes. IOTA is designed to help these devices share their resources in a more efficient manner, thus optimizing their allocation.
• IOTA’s new transaction model comes with a promise of free and fast transactions with a focus on micropayments, all functioning as the foundation of future “machine-based” economy. The IOTA’s Tangle system theoretically allows for supporting faster and more numerous transactions. Yet, if these would come with the obligatory charging for transaction fees, this could lead to the situation in which the devices in the Internet of Things network would be often required to pay a fee which is higher than the amount of value which is being transferred. To counter this, IOTA takes the fee payments out of the equation altogether. Based on this, IOTA can promise that some micropayments, for example those relating to water and electricity bills can be paid instantly by individual devices, without relying on annual subscription models or middlemen. In this manner, both the individual users and devices would pay only for what they actually consume instead of focusing on when they need these resources.
• With its transaction system, IOTA promises to resolve the issue of scalability and security which are often the scourge of various blockchain-based systems. The computing power of the IOTA network is designed in a manner that it should increase with the larger number of devices that become parts of its ecosystem. All of the devices connected as parts of the IoT network require support for dozens of transactions they make in short intervals, as they are required to purchase stuff such as utilities, bandwidth or storage whenever these resources are required. To support this, IOTA’s transactional chains are interconnected so that the more transactions take place on it the more the network should become equipped to deal with their increasing number. Also, constant internet connectivity is not a requirement to participate in the IOTA network, which should promote savings on costs of electricity or the internet. The enormous amount of mutual verifications taking place on the Tangle is supposed to protect IOTA from double spending and other security issues.

How Does Tangle Work?

Instead of relying on blocks and chains found with the standard blockchain architecture, the IOTA’s unique take on the transaction processing is based on having the transactions streamed and “entangled” as part of its Tangle consensus-creating system. It works in the following manner:

• Instead of a global blockchain, IOTA uses the verification methodology known as Directed Acyclic Graph (DAG) or Tangle. Based on it, M2M transactions on the IOTA platform rely on a novel model of verification in which the submitted transaction depends on the verification of two other earlier transactions.
• Transactions are issued by nodes and stored in the ledger called the tangle graph. The graphs consist of edges which are created by having a new transaction approve two previous transactions.
• For each instance of approval, the verifier needs to connect the transactions in question into the general Tangle mesh. This means that consensus is reached based on a web of verifications. Over time, each transaction will become linked to both the transactions it verifies and the future transactions that will verify it.
• Even if there is no direct edge between two transactions, transaction A can indirectly approve transaction B if there is at least a directed path leading from A to B.
• The genesis transactions are approved directly or indirectly by all other transactions. When a tangle is created, there is an address with reference to the address with relevant tokens which are created as part of the genesis transaction. They are sent to other genesis addresses. Based on this, IOTA wants to get rid of the need to create new tokens in the future, removing the reliance on mining from its mode of operation.
• All that is required for participation in the IOTA network is to have a user perform a symbolic amount of computing aimed at verifying two earlier transactions. Their reward is the future verification of their own transactions as part of an incoming transaction-based validation.

Is the IOTA Project Financially Sustainable?

Considering the unique feeless system of transaction processing (with the only costs being those related to electricity), there is a legitimate question of how to make the IOTA project self-sustainable in the long run.

For starters, the IOTA platform runs on an open-source namesake protocol which is mainly tasked with ensuring transaction processing and data transfers in a secure and highly decentralized manner. Being of an open nature, the IOTA protocol is sometimes described by the developers as an equivalent of the Hyper-Text Transfer Protocol (HTTP) for distributed and collaborative information systems at the heart of the modern internet.

This allowed the IOTA developers to claim that their protocol has no inherent profit model but that it rather functions as a set of rules for sharing common information and transferring value. The development of the protocol has been left in charge of the IOTA Foundation which is tasked with promoting its adoption and handling future development. Being a non-profit enterprise, the IOTA project had to rely on the IOTA community and its token donations. As the MIOTA supply shall remain fixed, the project will continue to be funded by relying on the tokens’ increased value over time, as well as on potential grants and contributions from companies and individuals.

MIOTA Availability and Partnerships

Considering that IOTA is built to service devices of diverse manufacturers by design, it’s no wonder that the project is big on building partnerships. Having received praise from the likes of Deutsche Bank back in 2017, the IOTA team also managed to score a strategic partnership with the Japanese electronics giant Fujitsu back in 2018. The partnership involves the development of IOTA as a data storage medium, with a focus on its immutability, trust and data security across the supply chain.

In 2019, IOTA entered the partnership with yet another global player, Jaguar Land Rover, as part of the joint effort to test a service that will allow drivers to earn tokens and make payments on the move. Drivers will be able to earn credits by enabling their cars to automatically report road condition data, such as traffic congestion or pothole locations, to navigation service providers or local traffic authorities. As a reward, drivers will be able to use earned tokens to pay for coffee, tolls, parking fees or charging of electric vehicles.

As of May 2019, the token’s market cap stood at USD 823 million, down from its historic peak value of USD 14 billion which was reached in early 2018. Total supply of the tokens is capped at 2.5 billion units.

Acquired MIOTA tokens can be stored in the IOTA wallet which is recommended by the developers themselves, while the Trinity wallet remains another popular option.

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The Aeternity platform was launched in 2017 as a smart contract and dapps platform focused on correcting what its designers identified as scalability-related problems faced by these technologies. Upon the launch of its testnet and the Aeternity token back in 2017, the Aeternity project garnered enough attention of the crypto community to have it rank among the top 40 currencies by market capitalization as of November 2018. Its future, however, will arguably depend on what it manages to deliver on its promise to increase the scalability of smart contracts, connect them with the external data sources and reduce the mining requirements.

In order to achieve this, Aeternity plays the card of implementing an array of different technologies working towards its stated goals. These are its state channel technology as a solution for the scalability problem, a hybrid consensus model combining the Proof of Work and Proof of Stake systems and a decentralized oracle-based system tasked with connecting real-world data with smart contracts. Let’s see how these work at individual level and which specific issues they aim to tackle.

Smart Contract Scaling Problem Aeternity Wants to Bypass

Scalability is the issue that has plagued the blockchain since the outset and it only became more pronounced with its increased adoption. In the context of smart contracts, scalability refers to the ability of this technology to handle the growth in the number of its users and manage to offer satisfactory efficiency in the face of increased demand.

Take, for example, Ethereum platform which uses its blockchain to allow for the development and deployment of smart contracts. In its current version, each smart contract on the platform is assigned to each full node. If users want to interact with their smart contracts, these programs are executed on every full node they are deployed to and this happens throughout the network. The issue came to prominence with the increasing traffic rates on the network which went in parallel with the rising popularity of this platform. Not too long ago, Ethereum faced a network-wide slowdown brought about by a simple game involving breeding of virtual pets, CryptoKitties.

As the Ethereum blockchain developed, the size of its blocks grew in parallel. The reason for this lies with its architecture i.e. the fact that Ethereum runs on the node network, with each of them storing information on the whole of transaction history as well as the data on the state of smart contracts and account balances. Considering that the number of transactions rises with each new block in the interval of 10 to 12 seconds, it is easy to see how this limitation made the management and handling of transactions and smart contracts an increasingly complex and prolonged process which could take hours. The pool of users often includes businesses that carry out their transaction on the Ethereum network whose blockchain is also the home to various cryptocurrencies. Put together, all of these factors contributed to the drop in the transaction processing rates on the Ethereum blockchain which, in turn, endangered its capability to scale together with an increasing number of its users. At the same time, the same users increasingly demand at least the same level of functionality and efficiency they became used to when using popular online payment processing systems.

Aeternity Moves Smart Contracts Off Chain

Initially, blockchain platforms tried to approach the problem of scalability by increasing the sizes of blocks on their networks. The goal was to allow for the execution of the higher number of transactions per second on each block, based on the knowledge that time period needed for block verification is largely dependent on the complexity of cryptographic computations involved in it. Yet, there were some issues with this approach. Making the blocks larger in order to have them handle more transactions meant putting more demands on the mining resources one needs to have to manage them. The centralization of power as a byproduct of this would mean the removal of the users who can verify transactions from the network, leaving the enlarged blocks in the few hands of large players (such as companies) that have sufficient resources to actually run them.

Instead of this, Aeternity platform opts for moving smart contracts off its blockchain and having them executed with the help of the state channel technology. This technology involves the use of the communication channels which run between the contracting parties. State channels are run off the Aeternity’s blockchain, meaning that they do not get involved with it, except in the cases which entail the need for the resolution of disputes or transfers of value. In case of disagreements related to smart contracts, the problems which need adjudication are handled by using the main blockchain to send the announcement on the last known commonly agreed interaction which took place off-chain. At the same time, the blockchain is invited to pass the judgment related to the contested issue, acting as an equivalent of an impartial judicial authority. This is further ensured by using the zero-knowledge proof method in relation to the contents of the smart contract in question, thus protecting its privacy.

The procedure ends with the settlement and the closing of the contract which are both handled on the chain. Since all other procedures related to smart contracts are managed off-chain, the throughput capacity of the Aeternity remains largely unaffected by these standard operations.

At the same time, transactions themselves are processed in more expeditious manner since they do not take place on the blockchain. The state channels take care of the management of fast micropayment transactions, bringing down their cost and the drain on resources. The reason for this is the fact that only the parties to a smart contract or those who are involved in the transfer or value actually have access to the information on the particular transactions which take place between them. In addition to avoiding the burdening of the network resources with unneeded information, this approach also improves the level of privacy offered to the contracting parties. This is particularly important for corporations whose smart contract can contain confidential business data, as well as for regular users who need to manage their sensitive information on the Aeternity platform.

Aeternity Applies Functional Approach to Smart Contract Development

Moving the communication segment of the smart contract management off the chain does not mean that Aeternity will have easier time facing what its competitors offer as their solutions to the problem of scalability. Zilliqa, for example, opts for the implementation of the sharding technology as a response to this issue. Some of competitors such as Decred employ seemingly similar approach in handling transactions on tis network off-chain (via micropayment channels). Aeternity’s competitor Ethereum focuses on stateful programming as the basis for the development of smart contract applications.

“Stateful” here means that its platform will keep tabs on what happens with interactions relating to smart contracts (their “state”), as opposed to the “stateless” approach which keeps no evidence of earlier interactions. In case of Aeternity, its “functional” approach means that only the contracting parties remain in charge of the state of their contract, in the sense that they create inputs for it and validate them upon their execution. In separating the stateful from the functional programming, Aeternity hopes to improve the smart contract scalability, while allowing for their easier coding and storage with the help of the Chalang language which is optimized for the state channels on blockchain.

Aeternity also competes with others as the decentralized application platform. Its dapps are called “aepps” and these are being developed as open source creations which serve as a preview of what the Aeternity platform is capable of ahead of the launch of its mainnet. Aepps developed on Aeternity focus on a mobile-first approach and streamlined mobile-desktop connection as part of the platform’s aim to drive its adoption based on broader accessibility.

Aeternity’s Oracle Machine

Smart contracts built on the Aeternity platform are not designed to become closed or isolated systems. Instead of this, Aeternity provides technology which will allow them to receive inputs from the outside world. These can take the form of external data which can be relevant for the execution of a smart contract. The examples include checking the information on the prices of various products or goods, monitoring election results or keeping up to date with the weather conditions.

To that effect, Aeternity integrates oracles as agents that identify real-world events and forward information on them to the blockchain the smart contracts exist on. Machine oracles act as sensors that gather and forward digital information in the format which smart contracts can read, while user oracles confirm the veracity of these information or report their own data. Each user can ask questions related to what happens in the “external world” of smart contracts and the oracles provides them with an answer. Aeternity also uses prediction market protocol which allows users to bet on the incoming data the oracles provide.

Since the oracles can request and be given access to the external data sources, they can pose a security risk to the blockchain and become a vulnerable point because of their central status in the data management. Aeternity attempts to avoid this pitfall by making the information contained in the oracle data feeds immutable as soon as they arrive on the Aeternity platform.

Hybrid Consensus Model

To make centralized data streams such as oracles less of a security problem, it is also necessary to determine if the facts they supply are “true” or “false”. At the same time, malicious attacks can make the data sources give false values, making it necessary to implement a consensus mechanism that checks the oracles and activates in case there is a disagreement. In order to achieve this, Aeternity implemented a hybrid proof of work and proof of stake consensus mechanism on its platform. Proof of work handles the consensus on the platform while the proof of stake manages the governance. While those who mine the AE coins verify new blocks based on the PoW system, Aeternity has implemented its Cuckoo Cycle variant which allows for better scalability in terms of dynamic RAM requirements of the system. The algorithm also offers better energy efficiency and instant verification. All of this points to Aeternity’s ambition to streamline mining on easily available devices such as mobile phones in the future. Owners of the AE tokens use these as proportionate stakes based on which they vote on proposals to change and further develop the platform.

AE Token Availability

As the Aeternity is still in the testnet stage (as of November 2018), its Aeon token was launched as an ERC-20 token running on Ethereum. After the launch of the mainnet, these tokens will be exchanged for Aeternity coins. The tokens are used to pay the fees for transactions which take place on the Aeternity platform as well for the settlement of its smart contracts, similar to Ethereum’s gas.
The initial coin offering (ICO) for the AE took place in mid-2017 and it eventually raised USD 24 million. The coin’s current market cap (November 2018) stands at USD 280 million, down from its historic high of just over one billion USD in May 2018. The number of tokens in circulation is 233,020,472 AE. The tokens are available for trading on crypto exchanges such as HitBTC.

The Team behind Aeternity

The Aeternity project is based in Lichtenstein. The CEO and founder of Aeternity is Yanislav Malahov who describes himself as the godfather of Ethereum due to his early collaboration with Vitalik Buterin, co-founder of Ethereum. The Aeternity team has grown since its inception and it now comprises more than 40 individuals with backgrounds in blockchain, Erlang programming and business development.
The Aeternity Starfleet is the set of business incubator and investment programs organized as part of the Aeternity project in order to stimulate development of the platform and the blockchain in general.

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