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BINANCE – A CRYPTO EXCHANGE ANALYSIS – Binance Review

8 minutes to read
Binance Review

Binance Review, Binance is a cryptocurrency exchange that was founded in Hong Kong in 2017, and has rapidly grown into the world’s largest crypto exchange based on trading volume. The initial growth and popularity of the platform were so impressive that they had to temporarily suspend registrations in January 2018 so that they could keep up with demand. Today, it offers customers a highly well-established range of more than 40+ fiat currencies and 300+ cryptocurrencies with no deposit fees and highly competitive trading fees (up to 0.1%), all of this applies worldwide – where applicable.

The most important features and benefits of Binance

It has so many features that make it one of the most popular crypto exchanges in the world. Here’s a list of Binance’s best features:

  • Extremely low 0.1% fees, with discounts if you pay with BNB;
  • More than 300+ different cryptocurrencies for purchase, sale or trade;
  • Android and iOS mobile apps are available;
  • Advanced, classic and basic trading platforms to suit your needs
  • Do more with Binance Earn – increase your crypto;
  • Binance Visa Card – spend your cryptos anywhere with a card
  • P2P exchange – trade directly with others on your own terms
  • Binance Loan allows users to borrow crypto
  • NFT marketplace for buying and selling NFTs
  • Margin trading with leverage of up to 10x
  • Futures and derivatives trading

BINANCE REGISTRATION

What services does Binance offer?

If you’ve done some research on the best crypto exchanges, you’ve probably found that there are many options, making it difficult to decide which exchange platform to choose. With this in mind, we’ll help you work out the suitability of Binance by explaining the best services it has to offer to see if this is the right exchange for you.

More than 300+ different cryptocurrency purchases, sales or trades

Binance offers over 300+ different cryptocurrencies, making it one of the most comprehensive offerings in the world. As the world’s largest cryptocurrency exchange based on trading volume, you know liquidity will be high, so you will be able to buy and sell (almost)any coin on their platform with ease. The native token here is Binance Coin (BNB).

Below are the latest figures:

Binance Review,
$BNB Chart

Android and iOS mobile apps

Binance has an excellent application, making everything easy for beginners. The ease that this platform affords its users also suits advanced traders by simplifying processes. Within their corresponding app, there are two versions that you can switch between at the touch of a button, these are as follows:

There is Binance Lite, which is excellent for beginners, and Binance Pro, which gives you access to many advanced features and trading tools. Further to this, according to the Google Play store, the app has more than 10 million downloads, with a high user rating of 3.7/5 stars – This rating is based on 617,000 user reviews.

Advanced, classic and basic trading platforms

Binance serves customers of all levels, from complete beginners to experienced day traders in the crypto investing world. If you want the easiest way to buy crypto, you only need to select the basic “Convert” option, which creates a straightforward interface.

Those who are more comfortable with the traditional market interface can choose the Classic method of buying crypto, which has much more information than the basic version. Experienced traders who want full access to all trading instruments can choose the Advanced option under the Trade tab.

Use Binance Earn to grow your crypto portfolio

Binance offers users various options to increase their crypto while leaving it on the stock exchange. If you plan to hodl (withhold/hold onto) your crypto, this is a potential investment opportunity. Instead of it lying dormant as available funds in your portfolio, you can work with it. The following sections below, explain the different bidding options.

Binance Visa Card

Binance works with Visa to offer a card that lets you spend your crypto with 60 million merchants worldwide. In addition, the card is free, has no administration or processing fees, and you can even get up to 8% cash-back on eligible purchases! This is undoubtedly a significant step in the right direction to make crypto a mainstream payment method.

P2P Replacement

Binance offers a peer-to-peer exchange that allows users to trade cryptocurrency directly with each other between their portfolios, on their own terms – in virtually any country!

Binance Credit

Anyone registered as a Binance user can access a loan if they wish to take one out on the platform. There are several credit conditions that you can choose from when borrowing; It is possible to make an early repayment and pay only for borrowed hours. The interest rate is calculated at 0.001667% (0.04%/day) per hour.

NFT Marketplace

NFTs have taken the crypto world by storm and are continuously gaining popularity. Binance has seized the opportunity to take part in the movement. Binance has its own NFT marketplace, where NFTs can be minted, bought and sold.

Margin trading with leverage of up to 10x

Margin trading is only available for a select few trading pairs; further to this, with some trading pairs, users can acquire leverage as high as 10x. Cross margin trading can be hazardous as users risk their entire account, while isolated margin trading only poses a risk to that trading pair.

Futures and Derivatives Trading

A relatively new feature is Binance Futures, which allows users to speculate on the price of Bitcoin and altcoins such as Ethereum, Ripple, Litecoin, Bitcoin Cash and others. When trading futures, users do not actually buy or sell cryptocurrencies, but only take advantage of the price rise/fall to make money.

The futures interface is very similar to the trading platform itself. The only difference is features, such as the ability to view open positions and features that allow traders to control leverage. Binance Futures fees are up 0.04% for each trade. Fees are lower for traders with a huge monthly trading volume or, subsequently, if their trades often increase liquidity in the order book before they are executed.

Binance awards

It has extremely low fees, and it is in fact possible for them to be reduced further.

Deposit fees

If you put cryptocurrency in Binance, there is a zero fee. If you deposit fiat currency into Binance, the fee will vary depending on how you deposit and the currency. For example, if you pay Australian dollars (AUD) using PayID/OSKO, it’s free. However, if you deposit Hong Kong dollars (HKD) by credit card, the fee is 3.50%.

Payment Fees

The withdrawal of cryptocurrency from the Binance account comes with a flat fee that covers the transaction costs of transferring crypto to the wallet. The fee varies depending on each coin. In the case of fiat currency withdrawals, the fee varies depending on the withdrawal method and currency. For example, taking the Australian dollar (AUD) by bank transfer is free. Paying the pound sterling (GBP) by credit card comes with a 1% fee.

Transaction Fees

Fees for spot trading (buying and selling cryptos) start at a low 0.1% and you can get a 25% discount if you pay the fees with Binance’s own coin (BNB). This means that you only pay 0.075% for each trade!

Trading Fees Compared to Other Popular Exchanges

Binance – 0.075%

KuCoin – 0.10%

Coinbase – 4.5%

Bybit – 0.10%

If you’re a large-scale trader and hold a lot of BNB tokens, you can reduce fees even further, with the lowest fees with a 0.015% maker fee and a 0.03% taker fee, including a 25% discount using BNB.

Binance security

As a platform, Binance is a secure cryptocurrency exchange that keeps most of its digital assets offline in cold storage and also gives its users tips on ways to increase security. In line with their strong security ethics, there are account settings to enable 2FA (two-factor authentication), the whitelisting of devices, payment address management, the enablement of anti-phishing codes, and even U2F (universal factor 2 authentication) – which requires physical access to hardware to access the account.

Despite all of these efforts to keep the exchange safe in 2019 Binance fell victim to a cybersecurity breach and lost more than $40 million worth of Bitcoin. However, they reacted commendably to the situation; The resulting losses were fully subsidised and so users did not suffer any actual losses. Four months after the incident, they received ISO 27001 certification after passing an audit of information security management. This shows how committed Binance actually are to maintaining a secure platform for all customers. Further to this, Binance is constantly investing in ways to improve their cybersecurity protection.

Summary

In the world of cryptocurrency, Binance is certainly a big and popular name, this is no  accident. Based on trading volume, it is the largest crypto exchange with competitive fees and a platform designed for both novice investors and experienced traders. With over 300 different coin offerings and extra features like bets, margin trading, futures, and even an NFT marketplace, it’s an excellent platform to rely on for your blockchain activities.

Don’t have an account of your own? If you want to open one follow the link to get started: 

Binance registration >>

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Key Crypto Market Trends for 2022

7 minutes to read
Key Crypto Market Trends for 2022

In this article, we use examples of some of the important cryptocurrency milestones of 2021, in order to preface and help explain the key crypto market trends for 2022 that we expect to see great development in. This will also include how cryptocurrency, and the DeFi community as a whole, has already surpassed simply ‘making a mark’ with the wider population and brand marketing.

The volatility of the cryptocurrency market ran high in 2021. The year had begun with a strong rally, which pushed the exchange rate to an all-time high, for some tokens, in the spring. Following this, in May the crypto market collapsed, throughout the summer it then tried to recover. Then, in November, Bitcoin reached a new all-time high. Unfortunately, this then turned around in December when a bear market ensued, despite previous predictions showing that it should have continued to rise.

Despite the decentralized finance (DeFi) sector’s development really picking up pace as early as 2020, adoption and innovation really started to pick up by 2021.

New DeFi applications (DApps) and services have allowed crypto users to begin to use their tokens in many diversified ways, such as taking out loans and earning returns using their coins. Non-Fungible Tokens (NFTs) have swarmed both the online marketplaces that were curated purely for digital art collections, as well as traditional auction houses.

 In November, the total crypto market capitalization reached $3 trillion. This is when Bitcoin and Ether reached their peak, which later slipped back to $2.5 trillion in December.

Key trends and forecasts for 2022

High volatility can sometimes make it more difficult to accurately predict crypto prices, but there are clear trends that affect the acceptance of cryptocurrencies and tokens, which in turn will effectually help to determine the direction that the prices will take.

Here are seven key topics that could dominate our cryptocurrency markets in the duration of 2022, building on developments that we had seen in 2021.

1. Web3 brings decentralization of the Internet

For those that may not know, Web3 refers to an ecosystem of next-generation Internet applications that will run via blockchains.

The first version of the Internet focused on static content, and the current version of the World Wide Web (Web2) is dominated by large companies that use the personal data of users in order to shape experiences for personalized advertising. However, Web3 is said to promise to return an individual’s control over their own personal data through decentralized applications. These will reward users’ attention with cryptocurrency tokens.

2. Financial service providers build ‘on-chain’

DeFi is one of the first decentralized applications to get off to a great start this year, as the blockchain infrastructure is well-suited for processing financial transactions. Several cross-border payment service providers, especially in developing countries, began switching their transfer services to blockchain platforms in 2021, and this trend is set to continue throughout the rest of 2022.

3. Tokenization of NFTs and real assets

As most will already know, in 2021, Collectible NFTs became one of the hottest topics and gained a lot of popularity very quickly. Collections of these digital arts, such as CryptoPunks and Bored Ape Yacht Club, have sold at neck-breaking prices. For example, Bored Ape #8585 at current is officially the most expensive of the BAYC collection, selling for $2.7M, and was sold via the digital art platform OpenSea.

Some of the most popular NFT collections add unique features through airdrops and additional token sales that allow users to further develop their artwork and build communities around them through various meetups, as well as social media and discord groups.

As the value of some NFT collections skyrocketed in secondary resale markets, they have also become popular with investors looking to profit from future sales.

It is even thought that it will also be possible to use NFTs in order to tokenize real assets (such as real estate or physical works of art) for sale, purchase, or to use as collateral for loans.

4. Multi-chain scaling

Multi-chain scaling will greatly promote the widespread adoption of NFTs. Most blockchains are independent networks designed to serve specific network uses. However, as the spread of blockchains increases, there is a growing need for different chains to work in tandem, i.e. interoperability.

There are already many blockchain interoperability projects (such as Matic and Polygon, or Polkadot and Cosmos) that work on ways to improve the communicative ability of different chains. Inter-chain functionality will allow users to transfer assets between various chains.

Further to this, due to Ethereum blockchain transaction fees remaining high, some applications and NFT developers are moving towards alternative blockchains such as Solana and Avalanche. However, with the emergence of Layer 2 solutions on the Ethereum blockchain, Ethereum continues to remain the dominant platform for smart contracts.

5. Play-to-earn increases among crypto games

Video game cryptocurrencies such as AXS and SLP (Axie Infinity), SAND (Sandbox) and ILV (Illuvium) skyrocketed in 2021. This created a huge amount of liquidity. In play-to-earn NFT-based games, players can use NFT-based characters to acquire cryptocurrency tokens as rewards in-game, which can then be converted into fiat currencies via exchanges.

As such, games like Alien Worlds, Axie Infinity, Sandbox and Splinterlands all became very popular in 2021 and in 2022 new games such as Illuvium, MicroPets and Star Atlas will have their official launches respectively.

As the number of players in these games gradually increases, in turn, the demand for tokens used to buy, sell and search for NFT characters will increase also. This in itself will support the rise in stock prices. The continuing development of the metaverse in 2022 will also increase the popularity of unique metaverses within games.

6. The Rise of the Metaverse

It wouldn’t be too farfetched to ponder the “Would the next ‘big’ cryptocurrency in 2022 be a metaverse coin?”

In 2021, technology companies and big-name brands had already begun to enter the world of the metaverse. For example, Facebook had announced in October that it was changing its company name to Meta, in reference to the metaverse. Then, in November, the government of Barbados made it the first country to establish a metaverse embassy in the virtual world of Decentraland.

Furthermore, MetaverseGroup.com – a vertically integrated real estate firm and a subsidiary of Tokens.com – has purchased $2.4 million worth of real estate in Decentraland. This was the largest metaverse land purchase to date and they aim to develop digital fashion shows and various dealerships here.

The trend around the metaverse could really intensify further in 2022. For example, Microsoft plans to introduce a workplace service, Mesh, as part of its Teams software. VR headsets will allow users to control their avatar and how they interact during the time they spend in the Metaverse. Games like Fortnite and Roblox have also evolved into virtual worlds where users can interact with each other in the digital space while playing.

Different brands also now have new and unique opportunities to expand their advertising activities which the Metaverse has afforded them. Nike, for example, has acquired the virtual fashion platform RTFKT, which was originally formed by Benoit Pagotto, Chris Le and Steven Vasilev in 2020. Also, Ralph Lauren launched a digital collection on the Roblox platform.

Prices of metaverse-related cryptocurrencies such as Decentraland MANA, THETA, ENJ, AXS and SAND rose nicely at the end of November, whilst high-market-capitalized coins, such as Bitcoin and Ether, were losing value.

7. Layer 2 networks accelerate Layer 1 blockchains

Layer 1 blockchain networks provide the infrastructure on which other networks, protocols, and applications can build. These blockchains include Ethereum, Solana, and Algorand. Layer 1 networks use native cryptocurrencies for transactions, increasing liquidity as their use increases. The different consensus mechanisms used by Layer 1 networks have varying levels of security, speed, and decentralization.

As we mentioned, Layer 2 networks build on this, improving the functionality that is offered by increasing speed, reducing fees, and enhancing security measures. For example, using a Layer 2 network like Polygon helps developers reduce transaction fees and latency on the Layer 1 Ethereum network.

Layer 2 networks, such as Polygon, Lightning Network, and Starknet, use different scaling solutions. An example of such a solution would be zero-knowledge (ZK) rollups. These use a side block-chain to initiate transactions, this chain would then send these transactions, in batches, to the main blockchain in order to increase efficiency. Because of this, the value of cryptocurrencies of Layer 2 networks using ZK rollups is expected to increase greatly throughout 2022.

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Key Bitcoin Charts and Indicators Every Investor Needs

8 minutes to read
Key Bitcoin Charts and Indicators

Raw data and never-ending numbers can be difficult, or even boring, to conceptualize even for the cryptocurrency investors who are very prominent in the market already. but there’s no reason to rush through or skip any crucial research or analysis steps. There are some key bitcoin charts and indicators every investor needs to simplify these tasks, whilst also giving a much more tangible picture of the movement of the price of bitcoin (this does also apply to other cryptocurrencies). Essentially, these tools do the “dirty work”, providing a stable analysis foundation, and making it easier to understand and recognize individual patterns from visual representation. 

When it comes to entering successful trades being able to accurately read charts is important. Therefore, it is worth investing time in your knowledge of graphs and how to properly use them. We have added the most important bitcoin diagrams throughout this article to help with this.

Bitcoin’s Logarithmic Regression Model

Linear and logarithmic graphs are no longer new to most stock market traders, and since they are used by them, we have probably already encountered these models.

The logarithmic graph is based on a short, concise change in the exchange rate, in percentage form. The model shows the evolution of bitcoin’s price over the past ten years on a logarithmic scale: every “bubble” that bursts and every cycle that ends with a new historical high can be easily read from it.

As for linear graphs, they are not really suitable for price analysis of exponentially growing assets, since the model is highly distorted. Therefore, if we are looking at the analysis of the price movement of cryptocurrencies, it is worth looking at logarithmic models, since we can easily mislead ourselves or draw inaccurate conclusions by using them.

Bitcoin Charts and Indicators
Bitcoin 10 years log chart

To find out more about the difference between these two types of chart format, check out Investopedia’s article which gives more of an indepth comparison.

Bitcoin charts and indicators -The Candlestick Chart; A Common Preference

One of the oldest charts known to stock traders, candlestick charts allow us to more easily assess the possible outcome of price movements. This type of chart format allows us to analyse trends and establish probabilities when observing the market. Candles practically wrap around bitcoin’s opening and closing prices, as well as showing its highest and lowest prices within a given time. It would be a good idea to pay close attention and focus on the lowest possible time frame when analyzing a chart of this format. You should pay attention here because in many cases we are unable to see some information regarding the market, such as what happens between opening and closing. Therefore, when using this type of chart, it is advisable to take into account several different models and indicators.

candlestick chart
candlestick chart

RSI – The Relative Strength Index

The RSI generally intends to predict the expected rise and fall in the exchange rate, and the graph also shows support and resistance levels, which are worth watching. However, you will more often hear about support and resistance. This is because most analysts rely heavily on the graph breaking through supports or resistance as strong indicators of another price peak or low occurring, respectively.

Therefore the RSI shows the strength of a given protocol in relation to itself and measures the ratio of the given exchange rate movement as a percentage. If the strength of the index hits 70, you would expect the exchange rate to reach one of its peaks, or the exchange rate will show a downward trend; However, if it falls below 30, an increase is likely. Overall, RSI is a forward-looking indicator, and if you observe it carefully, you can quite easily get information about an asset’s future performance projections.

bitcoin relative strength index
relative strength index

Bollinger Bands –  The Bollinger Tape Indicator

It is perhaps one of the most popular indicators among analysts, which is essentially based on the volatility of exchange rates and reacts extremely quickly to the movement of the price of a particular protocol, stock or cryptocurrency. High volatility causes the tape to expand, which is otherwise divided into three sections: middle, top and bottom. However, when using this it is worth using other technical signals also, if you want to be able to see more accurate, forward-looking signals.

bitcoin boilinger bands
Boilinger Bands

MA – The Moving average

If you are familiar with the majority of different indicators out there, you have most likely already come across the MA. It won’t be surprising if you have, as it is fairly simple to operate. It allows you to get information through the average exchange rate of any given period: you can use any moving average, whether it’s 14 days or 141 days. However, keep in mind that since the moving average draws observations from past data, it isn’t all that reliable when calculating data on future expectations.

bitcoin Moving averages
Moving averages

MVRV – Market Value to Realised Value

The term HODL (Meaning ‘to hold onto and not sell any  positions in a given asset despite what market movements show’) – a golden rule to most bitcoin believers – plays a significant role here. When the exchange rate reaches a level where an investor it is worth selling there positions, they easily sell and give up their cryptocurrency – this is known as realized value.

The MVRV number shows when an asset is overvalued — when the number rises — or is undervalued.

LTH-SOPR for Long-term Strategies

The LTH-SOPR (Standing for Long Term Holder-Spent Output Profit Ratio – That’s quite a mouthful!) is an indicator that shows the level of profit or loss resulting from unspent outputs of Bitcoin transactions no younger than 155 days, or UTXOs*.  A LTH-SOPR above 13 shows a profit, while below 1 indicates a downward trend or a loss-making investment.

*What Is UTXO? The term UTXO refers to the amount of digital currency someone has left remaining after executing a cryptocurrency transaction such as bitcoin. The letters stand for unspent transaction output. Each bitcoin transaction begins with coins used to balance the ledger. Source: Investopedia

MACD – Moving Average Convergence/Divergence

The technical analysis indicator shows the extent of the exchange rate change, as well as the momentum perceived by the trends and its future durability. It monitors the movement of the exchange rate for a short period of time and draws conclusions from it. That’s why it’s less useful when it comes to looking at the price of assets that move without a trend – fortunately, cryptocurrencies aren’t like that.

bitcoin MACD
MACD

TVL – Total Value Locked

This indicator will show how much interest there is in a particular asset or DeFi protocol. It also provides an excellent opportunity to compare two cryptocurrencies, or their possible vision. Of course, the larger the TVL of the given protocol, the more interest there is around it, and the more worthwhile it would be to consider trading with it.

CCI – Identification of cyclical rounds

This indicator was developed in 1980 and since then its use has been identifying cyclical turns. It takes into account the cyclical movement of specific devices. If the CCI exceeds the top +100, an increase is expected in the market, and if it moves to the bottom -100 line, we can expect a rain trend. In order to get an accurate forecast, it is worth using a 10- and 30-day time band, from which we can filter out whether the exchange rate is at an extreme high or even a depth compared to the previous period.

Bitcoin CCI
CCI

MoE or SoV, which one is it?

All sorts of rumors about Bitcoin are written in two different tones: they refer to our beloved cryptocurrency as either a Medium of Exchange (MoE), which is something with a value which is agreed upon among peers, or a Store of Value (SoV), essentially meaning a treasury. Many believe that Bitcoin should first act as a store of value before it takes over the U.S. dollar. Many stock market investors base their aforementioned thinking on bitcoin volatility, since a currency that can drop as much as 30 percent in a matter of seconds is not generally considered suitable as a medium of exchange. It’s seen as being too risky, impractical, not to mention the possibility of even bread prices changing daily. It is of general consensus that volatility needs to be reduced before Bitcoin can reach MoE status.
The good news is that the graph below shows a downward trend in volatility. This is possible as Bitcoin becomes more valuable and it becomes more and more difficult to move the exchange rate. In 2021, we reached a market capitalization of $1 trillion, which is an undeniably nice result compared to the $11 trillion market capitalization of gold built up over a long period of time. From now on, the sky is the limit.

BTC historical volatility
BTC historical volatility

The operation of DeFi protocols differs and corresponds to the interpretation of each exchange item at the same time. In the case of price-to-sale ratio, for example, we take market capitalization instead of prices and divide it by revenue.A special form of observation is the number of addresses that have interacted using the respective token, which essentially shows the acceptance of that token. But whether it’s the indicators mentioned above or other more well-known analyses, it’s worth considering several indicators at once, given the recent “demise” of PlanB’s S2F model.

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BITCOIN IS 13 YEARS OLD! HERE’S A SUMMARY TO CATCH UP QUICKLY

22 minutes to read
bitcoin

October 31st is an illustrious date for Bitcoin believers, as it was on this day that Satoshi Nakamoto published the Bitcoin white paper, which essentially marked the birth of the leading cryptocurrency. We’ve gathered a wealth of information you need to know about Bitcoin, its birth and the last 13 years.

OUR BITCOIN SUMMARY;

TABLE OF CONTENTS

  • About Bitcoin in brief
  • How does Bitcoin and the blockchain work?
  • 51% Attack, i.e. Weaknesses in the blockchain?
  • Satoshi Nakamoto and the birth of Bitcoin
  • Bitcoin’s highlights from the past 13 years
  • Bitcoin; Purchasing and storage
  • What do you need to know about Bitcoin and cryptocurrency mining?
  • So, how green is Bitcoin mining now?
  • What does ‘DEFI’ mean?
  • How do NFTs work?
  • El Salvador is an ambassador for Bitcoin!

ABOUT BITCOIN IN BRIEF!

Bitcoin can also be seen as a digital currency created as a demand for the modern age. In essence, it is an electronic money that can be transferred independently of national borders and can be held without restrictions, which is safely available 24 hours a day.

On 26.10.2020, 88,857 Bitcoins were transferred using a single transaction with a value of $11.5 billion (at that time), all with a transaction cost of just $3.54.

Unlike “fiat” money issued by nations, it is an important feature that it exists and operates without central bank involvement. It runs on a distributed network, maintained by thousands of computers around the world, they are the miners of certain. Bitcoin is actually the world’s first truly open financial network run by a predefined program code. In other words, users rely on the rules of exact mathematics and programming instead of politicians.

bitcoin

Bitcoin’s most important innovation lies not only in the development of an efficient payment system it invented, but also in the creation of a completely new industry. The leading digital currency uses blockchain technology that can be used for a variety of tasks other than payment. Blockchain records and validates all transactions and ensures network integrity. These transactions are grouped as a system of linked blocks, which thus create blockchain.

So Bitcoin enables fast, transparent and inexpensive transactions in a decentralized, centralized way with the help of blockchain technology.

Bitcoin is seen by many not only as a simple currency, but as a value-for-money investment that has made fabulous returns over a decade. Indeed, the predetermined characteristics of the programme in the code are significantly positioned as an alternative to gold. Many refer to Bitcoin as “digital gold.”

HOW DOES BITCOIN AND THE BLOCKCHAIN WORK?

Blockchain technology is often compared to the Internet and it may not even be foreseeable how it will transform our future world. Just as you weren’t sure what the future was like when you created a simple Internet protocol. We also had no idea that over time it would spread to our daily lives. Bitcoin, as the digital currency of the modern world, is one of the most well-known and perhaps easiest forms of implementation of Blockchain technology.

Blockchain is a digitally shared ledger of information, unique copies of which can be found in all nodes of the blockchain system. In blocks, we may store any information that is the sum of a transfer, the address of the recipient and sender in the case of Bitcoin, for example. All participants in the system can check previous transactions and add new ones. Transactions are arranged in blocks because of ease of processing, and these blocks are chained together. This is the blockchain name.

The relationship between the contents of the blocks and each block is protected by the cryptographic tool. This guarantees that the transactions carried out are irreversible and indestructible. In this way, you can create a ledger and transaction network where no third party is required to complete the transaction. This brings us to one of the most important features of the blockchain system: decentralisation.

The decentralised nature of the system not only ensures that no intermediary is needed, but also records transactions in a way that is transparent to anyone. This is the guarantee that the stored data will be irrevocable. The data is linked as links and cannot be changed retroactively. After all, the integrity of the system would be compromised in relation to the block that follows.

51% ATTACK, I.E. WEAKNESSES IN THE BLOCKCHAIN?

However, in the case of Bitcoin, we cannot only talk about benefits. Shared data, information stability, decentralised characteristics and transparency are all groundbreaking advantages, but there are potential disadvantages. This could be the possibility of a risk factor called a 51% attack, which is highly unlikely due to the size of bitcoin’s network, but it may be feasible for smaller projects.

There may also be a problem with a hosting issue. Finally, the immutability of the data must also be mentioned here. It has already been mentioned as an advantage, but in some cases it can also be a disadvantage. For example, if you mistakenly send Bitcoin to the wrong address, there is no one who can undo or compensate for it. At the same time, the areas of use of the technology are quite wide. We can see examples in the fields of logistics, health, financial sector, IT and even education – examples can be classified indefinitely.

SATOSHI NAKAMOTO, AND THE BIRTH OF BITCOIN

With regard to Bitcoin, the question may legitimately arise as to how it was created and who might be behind it. There are many mysteries and legends associated with the creation of Bitcoin, but it is certain that after a little research, the name of Satoshi Nakamoto will be mentioned. It is widely believed that Satoshi Nakamoto’s name is likely an alias – otherwise known as a made-up name. Satoshi means “wise” in Japanese, and nakamoto is a common family name, one meaning “origin.” And you don’t have to be a linguist to read the “origin of wisdom” composition in the context of bitcoin.

In fact, no matter what the motivation of the unknown programmer was to create Bitcoin, he certainly didn’t want to reveal his identity. With this fact, Satoshi Nakamoto says that the idea of the “product” is important, not the identity of the creator or programmer. Over the past 13 years, it has been suggested that he may be the mystery developer, but in the end we could appreciate the desire of those individuals to come into the limelight rather than reality.

Satoshi Nakamoto, by his own admission, started working on the bitcoin protocol in 2007. On 31 October 2008, he published a white paper on the operation of the electronic cash system, and on 3 January 2009 Nakamoto mined the first genesis block to launch the bitcoin network.

To date, it hasn’t been revealed who the mysterious creator of Bitcoin was.

Satoshi Nakamoto worked on coding himself until 2011, before disappearing completely from the world’s eyes in April. At the same time, he handed over the work he started to Gavin Andresen and the Bitcoin development community that has since emerged. Although not much is known about Nakamoto himself, his emails with programmers suggest his eccentric character.

László Hanyecz, a Programmer of Hungarian descent, also worked with Nakamoto. However, they never met in person, but based on their email exchanges, he is portrayed as a rather strange figure. According to László, there was something strange about working together and in the person of Nakamoto. He was bossy when there wasn’t an official working relationship between them. On the one hand, he seemed to be part of the development team in terms of work, but he consistently did not reveal anything about his personal side. He rigidly refused to do so and didn’t even answer questions about it, almost patiently guarding his incognito status.

However, given Bitcoin’s future and the main purpose of the project, this was understandable and certainly necessary. Bitcoin might not exist today if Satoshi hadn’t kept so much secrecy about the foundations of the system.

BITCOIN’S HIGHLIGHTS FROM THE PAST 13 YEARS

2008:

  • September: the U.S. bank known as Lehman Brothers goes bankrupt, resulting in a global crisis;
  • October 31st: The white paper of a new decentralised currency, Bitcoin, is published.

2009:

  • January 3rd: The Bitcoin blockchain is started with the creation of the Genesis block;
  • January 12th: The first Bitcoin transaction (from Satoshi Nakamoto to Hal Finney) was completed;
  • October 12th: The first exchange rate was set, this was 1 dollar = 1309.03 BTC.

2010:

  • 22 May: Hungarian born László Hanyecz is the first person to buy a product for Bitcoin; a $25 pizza for 10,000 BTCs;
  • July: Mt. Gox, which was created as a collectible trading card game, became Bitcoin’s first stock exchange at $7:06 per BTC;
  • October 28th: the first short transaction was made;
  • November 1st: Bitcoin’s capitalization value exceeded $1 million and the price of 1 BTC had reached 50 cents.

2011:

  • February 9th: The cost of one BTC token continues to grow, now reaching a 1-2-1 rate (1 BTC = $1);
  • February 14th: Adoption of Bitcoin slowly begins to develop further and a used car is offered at sale for 3000 BTC;
  • March 27th: It is now possible to trade Bitcoin for not only USD but now also GBP;
  • April 16th: TIME magazine writes an article about Bitcoin;
  • June: The Wikileaks platform becomes one of first organizations to accept Bitcoin donations
  • July 22nd: the first Bitcoin app is published for iPad.

2012:

  • March 1st: The biggest theft in Bitcoin history happens early, with almost 50,000 BTC being stolen.

2013:

  • February 28th: The exchange rate reached a new high of 31.91 USD/BTC;
  • March 28th: The total value of Bitcoins market capital exceeded 1 billion USD;
  • April 1: BTCs exchange price exceeds $100 per token (1 BTC = $100>).

2014:

  • February 28th: Mt. Gox, the largest stock exchange at that time, fails

2017: 

  • June: BTC exchange rate reaches $3,000 (1 BTC = $3000);
  • August: Bitcoin cash from BTC fork;
  • October: BTC exchange rate reaches $6,000 (1 BTC = $6000)
  • November: BTC exchange rate reached $10,000 (1 BTC = $10,000);
  • December: BTC reaches a peak of $19,783 for the first time (1 BTC = $19,783).

2018:

  • Twitter CEO Jack Dorsey predicts that Bitcoin would grow to be bigger than the US dollar and will become the world’s primary currency.
  • October; China and South Korea are the first states to restrict or even ban bitcoin trading altogether

2020:

  • More and more institutional investors have put their savings into Bitcoin
  • In Maj, the new Bitcoin halving has taken place. From 12.5 Bitcoins to 6.25 Bitcoins, block rewards are reduced
  • Competitive thanks to the widespread spread of the digital currency (PayPal, Revolut, etc.).
  • Bitcoin’s price has also broken its previous peak of $20,000 and ends 2020 at a record high of $29,110

2021:

  • April 14th: BTC’s price has set a new high of $64,800;
  • May 19th: BTC’s price plummets to $30,000, thanks in part to news that Tesla is selling its Bitcoin stock
  • June 4th: The world’s largest Bitcoin conference is held in Miami, here El Salvador President Nayib Bukele announces his country plans to soon recognize Bitcoin as legal tender;
  • September 7th: In El Salvador, in addition to the dollar, Bitcoin is finally accepted as legal tender;
  • October 19th: The first Bitcoin ETF appears on the New York Stock Exchange
  • October 20th: BTC’s price has set a new all-time high of $66,974.

BITCOIN; PURCHASING AND STORAGE

Especially during the bull market period, in the case of a parabolically rising exchange rate, many people ask where I can buy cryptocurrency and what to do with it. Fortunately, the answers to these questions are now considerably simpler than it was 13 years ago when the White Paper was first published. Since then, we have been able to buy Bitcoin for cash almost anywhere in the world. This can be presented with the help of a special ATM located in several parts of the world. And the process is just like using your favorite ATM. Only in this case will the bitcoin you purchased get to your previously created wallet through a QR code. 

A more favorable way to buy is to do so through an exchange.

One of the most well-known and safest is Binance, but some other big names include Coinbase, Bitstamp, OKEx and Kraken or Crypto.com. In these cases, we can buy Bitcoin either by bank transfer or by credit card purchase. The latter is a faster, but mostly more costly, solution. Some exchanges accept PayPal or you can buy cryptocurrency with Paypal itself.

STORING OUR DIGITAL CURRENCIES

The other extremely important question is where to keep the cryptocurrency that you have purchased. If we bought it on the stock market, it is perfectly reasonable to store it there for certain periods. However, if someone isn’t actively trade these tokens, it isn’t recommended to keep them on the stock exchange for a long time. Even with market leaders users have fallen victim to hackers, or a stock market provider has simply been shut down. Therefore, it is recommended to store the purchased Bitcoin, or other cryptocurrency, in a suitable individual wallet.

Essentially, the crypto wallet is intended to connect the user to the blockchain through it. They don’t actually store money, they just keep information and thus provide a means to receive the cryptocurrency. This information includes public and private keys. The portfolio therefore contains an address that is an alphanumeric identifier, generated from public and private keys. Money can be sent to this address, but the money does not actually remain on the blockchain, it is only transferred from one address to another.

There are several types of crypto wallets based on these. Hot wallets are connected to the Internet and cold wallets aren’t, these “Offline” wallets are obviously significantly safer. But wallets can be software on your computer or smartphone, or it could be a wallet with a piece of paper. The point is, in the case that we buy, we are responsible for our own safe storage. It is important to note that the only way our money will actually be ours is if we also control the private key.

WHAT YOU NEED TO KNOW ABOUT BITCOIN AND CRYPTOCURRENCY MINING?

Cryptocurrency mining is the process by which transactions between users are checked and added to the public ledger of the blockchain. The task of the mining process is to introduce new coins into the stock that is already in circulation. A network of distributed computers and mining allows cryptocurrencies to function as peer-to-peer decentralized networks without the central control of a third party.

That is, miners operate transactions on the network of cryptocurrencies and verify their authenticity. To do this, they solve complicated mathematical tasks with the help of their machines, in exchange for which they receive digital currency, this is known as block closure. To do this, they provide strong computer hardware and energy supply, in exchange for which they receive digital currency (Bitcoin, Ethereum, etc.).

BITCOIN MINING THEN AND NOW

In the beginning, it was enough to have a traditional laptop or an average computer with which bitcoin (BTC) could be mined. Due to the low competition between miners at that time, the computer’s processor was used to solve the operations. Nowadays, however, the level of difficulty has increased so much that it requires some much more serious hardware. If you have more powerful computers, the more digital currencies you can get. Therefore, in countless parts of the world, huge mining farms have been created, whose function is to specifically specialize in the mining of cryptocurrencies.

The cheaper someone can get their electricity supply, the more profit they can make from cryptocurrency mining. For this very reason, mining activity is usually concentrated in areas where miners can get electricity cheaply. The combined resources of the many distributed computers ultimately make the Bitcoin network extremely secure. Because in order to cheat and manipulate mining, you would need to have more computers and power than all available resources combined.

Mining capacity has already grown to such an all-time high that it is now almost impossible to be able to achieve such levels of personal resource. Another beauty of the matter is that the otherwise huge energy consumption is covered by renewable energy sources due to efficiency and higher profits. Nevertheless, there are many attacks on Bitcoin mining questioning the extent of how environmentally friendly it is.

SO, HOW GREEN IS BITCOIN MINING NOW? 

Higher energy consumption does not automatically mean that the user has a negative environmental impact, just as lower energy consumption is not necessarily environmentally friendly. With this in mind, the question isn’t how much energy should be used to run and operate the system, but instead what is the source from which the energy comes from and how efficiently is it used. However, based on the importance of the mining activity as detailed above, the following relationship can be observed. Miners are in constant competition with each other, which in economic terms could mean perfect competition.

FIGHTING FOR COST-CUTTING

On this basis, everyone is looking for ways to gain a competitive advantage over others. There are basically three ways of doing this, and this leads us towards positive environmental impacts. One way to increase your profit is to increase the price of Bitcoin. However, this is not influenced by miners and does not represent a different competitive advantage for individual miners.

The other solution is to use and develop more efficient tools. This is partly due to physical constraints, as development is slowing down today. Increasing the number of transistors in chips is becoming more difficult and costly over time, and thus the rate of development of more efficient devices is slowing down. Technically speaking, the only solution is to use more efficient cooling solutions to reduce the power consumption of devices.

Because it is common for data center cooling to reach 30-40 percent of the total energy cost, there is a legitimate need to reduce power consumption in this way; for example, by moving to colder, more northern areas. The third option for a competitive advantage is to explore cheaper energy sources and operate the system on this basis. This is where environmentally friendly, renewable energy sources such as water, solar or wind power plants come into view.

It is clear from the past that the energy cost is what miners can save the most on, so in both the medium and long term they are definitely forced to constantly seek out and operate on cheaper solutions.

WHAT DOES ‘DEFI’ MEAN?

The simple answer to this question is that ‘DeFi’ is purely a broken down rendition of the term ‘decentralized finance’.

A more broad explanation to this would be that DeFi projects first exploded in 2020 and, in a sense, Bitcoin was also born from a DeFi project. The aim was not to have a centrally regulated financial system, but to work with the help of a decentralized, open source program. Decentralization means that there is no central manager, but instead the community resolves the important decisions together.

Today, DeFi is more about the opportunities offered by smart contracts than it is just about the meanings of the words.  Smart contracts include, in addition to interest on deposits and borrowings, insurance, yield farming and decentralized exchanges. This list is actually almost endless and is constantly expanding from month to month.

BITCOIN AND ETHEREUM: THE BASICS OF DEFI 

With the advent of Bitcoin, global money transfer became available without any central organization, company or government having a say in the movement and properties of money. This was not possible before, it was the first decentralised digital payment option.

A big fan of Bitcoin was Vitalik Buterin, who later created Ethereum in 2015. This attracted even more programmers, as many saw potential in it. The new network was programmable, smart contracts and decentralised applications (DApps) were created. DApps are essentially based on Ethereum’s network, consist of smart contracts and have a web user interface.

Decentralised financial services also require decentralised exchanges. Decentralized exchanges (DEXs) are online exchanges that allow users to exchange a particular currency for another cryptocurrency. DEX connects users directly, so they can trade cryptocurrencies without leaving their money to an intermediary.

WHAT DOES THE FUTURE OF DEFI HOLD?

 The market capitalisation of the DeFi sector is currently somewhere around $157 billion, and its future has a lot to offer. Innovation is spreading rapidly, programmers are looking for opportunities every day, developing their software. Ethereum 2.0 will also have a positive impact on the market, with a faster, cheaper network and even more opportunities. 

In the long term, DeFi can compete with the banking sector, the problem lies in the complexity of technology. It cannot reach a wide range of users for this reason, and the unregulated market is also a part of it.

WHAT GOOD IS NFT?

With the creation of Bitcoin, blockchain technology has taken practical meaning, and the natural result of its development is the discovering of new uses. In 2021, more attention was paid to Non-Fungible Tokens (NFTs), i.e. “Non-Replaceable Tokens”.  

Digital products have existed before. You can send email, e-book, or mp3 files. However, the principle of digital scarcity could only be understood with the creation of Bitcoin. A product has been developed that, through blockchain technology, guarantees that the ownership of the data (money, works of art, etc.) sent from user A to user B will actually be transferred to the other user and that user A will no longer have any copies left. Moreover, this did not require a third party, as blockchain became the intermediary medium between the seller and the buyer.

The concept of NFT goes one step further than the above idea. While for cryptocurrencies tokens may have finite numbers (see BTC), all tokens are the same. Until then, for NFTs, each token is unique and finite in number. Naturally, this feature has stirred the imaginations of professionals in many sectors and is being experimented with in areas such as the toy industry, digital identity or even art. Due to the nature of the technology, it is even possible to buy a share in higher value works. Based on the above, NFT can be a fully digital device or even a digitized version of a physically existing product.

HOW DO NFTs WORK? 

To answer this, let us first explain what ‘NFT’ means; this stands for Non-Fungible Token. In short, this can be broken down to mean something that cannot be officially replicated or replaced. When it comes comes the initial creation of NFTs, there are several operational frameworks that can define the creation and publishing of individual Non-Fungible Tokens.

One of the most popular is the ERC-721 standard which features on the Ethereum blockchain. It differs from ERC-20 standard in that each token is unique and non-substitutable as mentioned above. The ERC-1155 standard represents an improved framework in the same area. As a multi token standard, it is possible to place tokens that can be replaced and not substitutable in the same smart contract. This greatly facilitates the transmission of NFTs between different applications.  Recently, in addition to Ethereum, Solana and Polygon have been providing technology funds to an increasing number of NFTs.

NFT tokens are becoming more and more popular in crypto communities. Prices are rising rapidly, with the most sought-after NFT collections selling for millions of dollars. Recently, the five largest NFT projects collectively generated more than $300 million in revenue. Like any unique work of art, NFTs usually carry cultural significance and social value. Another reason for NFTs becoming so popular is because returns made from the sale are paid directly to the respective creators. Not only this but creators can also continue to earn revenue from their works after the primary sale if they choose to apply creator royalties on their pieces.

EL SALVADOR IS AN AMBASSADOR FOR BITCOIN!

One of the most important milestones in Bitcoin’s history is likely to be 7th September 2021. Why you asking, this is because it was on this day that the digital currency became an accepted legal tender of a country for the first time in the world. Nayib Bukele, the president of the central American country El Salvador, announced his ambitious plans at the Bitcoin conference that was held in Miami in June 2021.  In a prerecorded video, he said he would present to Congress a bill recognizing Bitcoin as legal tender in his country. The second half of the statement could hardly be understood by the rousing applause and ovation that ensued after.

NAYIB BUKELE, A BITCOIN BELIEVER?

The President of El Salvador has always been committed to becoming the first official country to have Bitcoin accepted as true currency. Although analysts and experts have warned the government that the move could lead to economic bankruptcy, the country’s first man was irrefutable. Among the benefits, he said, residents will have the opportunity to instantly switch their cryptocurrencies once Bitcoin is recognized as legal tender.

However, it was said in a statement on Twitter that 4.5 million adult citizens will have the opportunity to hold or withdraw cash (USD) from any of 200 ATMs placed around the country. According to the president, there will also be 50 accounts that can convert fiat currency into Bitcoin to keep residents’ savings in the cryptocurrency.

Presumably, apart from a few enthusiastic foreign journalists and a small number of locals, there is no mass demand to pay with Bitcoin yet. The Lightning Network, which handles payments, was also set up to speed up transactions. However, as the years go by, it looks like while the leading cryptocurrency may have become an excellent safe depository, it has remained limited in its ability to make everyday payments – even if Nakamoto’s original idea was to think of it as electronic money. 

But if we think of El Salvador as a kind of “pilot country,” then the situation is certainly more than remarkable. There is no precedent for such widespread acceptance anywhere else and, in the very least, it will be a true example of how it works in practice. This will be likely to lead the whole sector to new innovative solutions. Either way, the country’s dedication and commitment to cryptocurrency is exemplary, for example it is true to say that 500 BTC were purchased in preparation for the mass release.

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What is PANCAKESWAP and CAKE good for? A Complete Guide

6 minutes to read
pancakeswap

Despite the frivolous name, PancakeSwap and Cake is no joke; the platform is one of the most significant dApps of all time and regularly attracts $100 million worth of daily traffic. In less than a year, it became the largest DEX on the Binance Smart Chain, beating Binance DEX. Not only this but its native token, CAKE, is keeping itself stable among the top DEX coins.

WHAT IS PANCAKESWAP COIN (CAKE)?

KEY DETAILS*:

Available at: PancakeSwap, Binance, KuCoin.

Competitors: Biswap, UNI; BAKE; SUSHI

Highest price: $42 / $0.00033 BTC

Lowest price: $0.5/ $0.0000135 BTC

*information correct at the time of writing and research

CAKE IS PANCAKESWAP’S OWN COIN

PancakeSwap is the Binance smartchain’s most popular decentralized exchange. Over the past year, PancakeSwap has made an amazing run-up to the blockchain world, building a huge user base with its extensive toolkit being a great attraction to users. The advantage of BSC in DEX compared to Ethereum-based platforms is the low network fee, so it is more economical to immerse oneself into DeFi on PancakeSwap with less money than, for example, UniSwap.

The platform allows you to trade Binance Coin (BNB), and other BEP-20 tokens, directly from the wallet in a peer-to-peer manner. The trades completed by PancakeSwap are finalized and executed by a smart contract without a stock exchange or other traders. The team behind PancakeSwap are completely anonymous, but the smart contract and platform have audits from Certik and Slowmist.

Since its launch in September 2020, PancakeSwap has incorporated all major DeFi trends into its system. There’s token farming, pools, NFTs, sweepstakes, and all you need is one thing – some of the native CAKE token. CAKE is also a governance token, so important Pancakeswap related improvements and decisions are also the collective responsibility and voting rights of token owners.

WHAT HAPPENS ON PANCAKESWAP?

One type of decentralized exchange is AMM (Automated Market Maker), where trading is not conducted directly between buyers and sellers, but customers buy tokens from one (or more) pools and send the other token to the same place to pay for it. There are two tokens in a pool, just as currency pairs consist of two currencies. Without the offer book, there are no opposing offers to buy and sell.

Tokens sold (submitted) and purchased (withdrawn) during trading will shift the ratio of the two tokens in the pool, and the exchange rate that moves in the opposite direction balances the pool in value from both directions. This mechanism is very similar to a depth chart of trading on centralized exchanges, where the relative differences between bids and offers move the exchange rate.

The tokens available in the pool are provided to traders who have temporarily exchanged their BSC-based tokens for liquidity provider (LP) tokens. It requires two different tokens, both of which must be sent to the pool, and the total value of the two is given an LP token that channels the pool’s profits to the LP holders in proportion to their tokens. The profit here is a fixed 0.25% fee for pool-related trades, which is spread among those who allow AMM trading.

pancakeswap and cake

For it to be accessible, PancakeSwap requires a Web3 supported wallet. The most popular ones being Metamask, TrustWallet, or WalletConnect. All you have to do is reconfigure the network on these wallets, besides BSC we can connect to similar DEX’s on other blockchains, such as Ethereum, Polygon and AVAX this way. The revenues and costs of the development are all publicly shared, 15% of the trading fees go to a treasury, which is a fund for the cover of expenses, maintenance of the platform, etc.

PancakeSwap has undergone a lot of innovations in a very short space of time, respectively. V2 developed the syrup pools that are now accessible and also introduced their referral program. At the same time, the trading fee jumped from 0.2% to 0.25% – 0.05% of which is then used to repurchase the CAKE token on the open market, these purchased tokens are then burned, thus reducing inventory. Currently there is no specific roadmap that has been released, instead though there is a publicly published to-do-list which doesn’t feature any deadlines. These to-dos include a tied staking product, a loan facility, and NFT prizes for completing tasks and leveling up.

HOW DOES THE CAKE TOKEN RELATE TO DEX?

Like Binance, PancakeSwap has platforms linked to popular forms of investments. DEX links them in some form to the spending or possession of CAKE tokens, thus generating traffic to their own cryptocurrency.

YIELD FARMS

The liquidity shown above is provided with LP (Liquidity Provider) tokens, on PancakeSwap we can also stake these LP tokens and receive a CAKE token as a reward. During stakes, the transaction fee earnings for LP tokens will continue to be retained. Annual interest varies from farm to farm, and, in some places, it can certainly reach several hundred per cent. There is always another side to yield, especially if it looks unrealistically high, in the case of yield farm-to-farm interest, this is the impermanent loss that you can read more about in our other article.

SYRUP POOLS

The Syrup pool at PancakeSwap is the stakes corner. A wide range of BEP-20 tokens can be staked here as a community. Reward can be that token, or it can be CAKE. The interest rate on the stake is variable according to the rules of the given token, and the exchange rate movements of the tokens converted to stakes are included in the actual investment result.

LOTTERY V2

Tickets can be purchased with CAKE token, which is discounted in large batches, and the prize pot is made up of even more CAKE.  40% of ticket revenue will be allocated by the smart contract to ticket holders with all six matching numbers.

BET ON EXCHANGE RATE

It is also a simple feature. The price of the BNB coin can be accepted in a five-minute perspective. The returns made from those who lost the bet is distributed among those betting on the winning side.

NETWORK MANAGEMENT WITH CAKE TOKEN

Also on PancakeSwap is the site where the votes on important issues affecting the ecosystem take place. The right to vote is linked to the CAKE token or indirectly to its owner. Like a board meeting of a public limited company, most CAKE tokens are implemented here.

The proposals can be published by anyone who undertakes to promote their idea, not just the founders and leading developers. The community thus seeks, at its discretion, to introduce changes that benefit everyone because they depend on each other. Liquidity insurers will not vote for unrealistic trading fees, because if traders turn away from the pools, there will be no trading fees to share.

WHAT DOES THE THETA NETWORK “YOUTUBE BLOCKCHAIN ALTERNATIVE” KNOW? A complete guide

5 minutes to read

Theta Network is the largest blockchain-based video sharing portal the Theta network. It’s cheaper and decentralized, as we like for a blockchain project. It’s a promising initiative, and Samsung and Sony have already backed it.

WHAT IS THETA NETWORK (THETA)?

Available at: Binance Huobi KuCoin, OKEx

Competitors: BAT, HIVE

Highest price: $14 / $0.00026 BTC

Lowest price: $0.04 / $0.0000094 BTC

(at the time or writing)

You can find up-to-date market information from THETA coin here.

WHAT’S WRONG WITH TRADITIONAL VIDEO SHARERS?

Sharing video content is not an easy business. One problem is that when materials are stored in one place, access is extremely slow. To eliminate this, video portals use many servers around the world, so streaming is hassle-free, an infrastructure called the Content Delivery Network (CDN) is utilized.

However, the operation of the CDN is very expensive, and since data centers charge the video website based on data traffic, if a portal becomes popular, the costs will multiply. On YouTube, for example, we either pay for a premium account or watch ads. If you’re not completely IT illiterate, you can use an adblocker or Brave browser. Although, given that YouTube still generates huge revenue, apparently this is not universal.

That’s where Theta.tv comes in.

WHAT IS THETA NETWORK?

Theta Network aims to reduce the costs that well-known video-sharing platforms pay for their operations. This is achieved by channeling some of the data stored on the CDN to Theta’s peer-to-peer network. The principle is similar to that of BitTorrent, where content is shared directly by users, but content producers are paid here. Theta Network does not seek to replace YouTube or Twitch, it merely offers an infrastructure where sharing works in more of a decentralized manner at lower costs.

If you watch a video on a streaming site that uses the Theta Network, you will get the data through a combination of two channels. The video comes partially directly from the website’s divisive platform and partly from Theta’s network. Although Theta Network is cheaper than centralized solutions, some costs have to be taken into account, which is what Theta cryptocurrencies are for.

THETA NETWORK WORKS WITH TWO COINS

Those who share video material using Theta Network will receive a payment, which is paid for by the platforms themselves, not by end users. To pay for streamed content, the network uses a standalone token called TFUEL.

Another cryptocurrency running on Theta Network is THETA. The main role of this token is network management. Basically, THETA owners can vote on the direction of development, so the community has the fate of Theta Network in their hands. For now, this process is still in its infancy, but it is planned to play a greater role in the future.

There is a fixed stock of THETA coins on the market, which is 1 billion coins, and no more is generated from that.  Stacking THETA, on the other hand, can yield TFUEL, of which 5.3 billion exists, 5% per year going to stake THETA holders, so that’s inflation.

WHAT YOU NEED TO KNOW ABOUT THETA BLOCKCHAIN

Theta’s own blockchain is fast and designed for smaller transactions. This is a great way for content providers to get their TFUEL tokens right away, which never gets to be a bigger amount all at once. In the background, the infrastructure is based on a proof of stake consensus mechanism that delivers the staking model using the Tendermint blockchain code. During stakes, THETA coins are tied up at network nodes who are responsible for validating the transaction.

Validation of non-consensus blocks is protected by the system losing some of the stacked THETA coins, so it is in the interests of all involved in the process to operate authentically. As long as the stakers go with the shared ledger, they search the blockchain, but in case of fraud they lose anyway, which makes the transmission of the blockchain and transactions reliable.

In the logic of validation, there is another important thing that ensures safety. The Blockchain has two levels. First of all, there are validating nodes that are high-performance computers and can authenticate a lot of transactions very quickly. There are not many of them and they are typically operated by companies that have taken on the hardware and technical background needed to provide blockchain, e.g. Samsung or Sony. They have the capacity to keep transactions running on a global blockchain in order, both in terms of validation and general ledger entry.  The validator node also has another task: to stack 1 million THETA coins.

The other level on blockchain is made up of the community nodes. Their job is to monitor these validator nodes. There are thousands of community nodes, immediately indicating if a validator deviates from the consensus with a bad block, and they shut down the suspicious or malicious validator. The community node stakes 1000 THETA coins.

WHO IS WORKING ON THE DEVELOPMENT OF THETA NETWORK?

The company to which Theta is credited is Theta Labs, whose CEO is Mitch Liu, the owner of Theta.tv. Compared to the size of the project, the team is small, there are only 25 people overall, in the San Francisco – Bay Area area, but they also recently opened an office in Seoul.

The company’s chief strategy manager claims Theta Labs generates just a token amount of revenue, but Theta.tv generates some profit. Financially, they rely mostly on investors, including Samsung and the Sony innovation fund, along with a range of additional equity funds. They run the validator nodes, four of which have announced that they will be working on a $100 million THETA coin that they had bought earlier at a much lower price than now.

the theta network

The advisory team includes executives from major media companies, such as Steve Chen, YouTube co-founder; Justin Kana, co-founder of Twitch and Jonathan Wong, director of product development at video streaming company Rakuten Viki.

Theta Labs has registered three patents with the U.S. Patent Office, all three describing technology innovations in video streaming on decentralized networks.

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Coinbase Futures? A huge move forward for the platform

3 minutes to read

Coinbase has already registered with NFA to be able to offer Coinbase futures products

Is Coinbase now aiming for new markets?

On September 15th 2021, as stated on the NFA’s (the National Futures Association) own website, the application – whose status is still set as ‘pending’ – was made under the name “Coinbase Global Inc.”.

This is proof in and of itself that the exchange has aspirations to be able to go further than only offering simple spot trading and also wants to now be a part of the lucrative business of derivative trading.

Coinbase announced on Twitter on September 16 that “this is the next step in expanding our offerings and offering futures and derivatives on our platforms.  Objective: Further growth of the crypt economy.

What is Derivative Trading?

Most usually, derivative contracts would come in the form of futures and options contracts:

Futures allow people to buy and sell contracts at a predetermined price, for example, Bitcoin (or other cryptocurrencies) at a set time in the future; Option contracts work similarly, in the way that traders will buy or sell at a predetermined price, only here they can sell at any time, so long as it is before or when the contract expires and no later than that. Perpetual contracts — otherwise known as non-expiring futures — are yet another popular form of trading.

Why Did Coinbase Register With The NFA?

In the United States, there is a law stating that if a company wishes to sell to individuals, registration must be made with the official federal regulator known as CFTC (the Commodity Futures Trading Commission) which controls regulation in both commodities and all derivatives. Although the registration process is delegated to the NFA, meaning that any entity that wishes to be recognised by CFTC must first be an NFA member.

Coinbase futures
Cryptocurrency Versus the Derivative Market

In the more traditional financial markets, as well as in cryptocurrency, derivative trading is big business. Crypto derivatives markets are dwarfed by the size of spot markets.  Binance futures are up 3-1 in spot-to-spot searches. Inequality is even greater than the FTX. Coinbase has so far only watched as these competitors have created a market for crypto derivatives to the worth of nearly $150 billion, according to data found on CoinGecko.

After a lawsuit threat was given from the Securities and Exchange Commission (SEC) where they stated one would be filed if USDC’s plans for a loan product went ahead, Coinbase is hoping for a much smoother transition than theirs into the world of futures and derivatives contracts.

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