Where possibilities begin

We’re a leading marketplace platform for learning and teaching online. Explore some of our most popular content and learn something new.

Latest blogs

How does a blockchain work?

Created by - shera academy

How does a blockchain work?

 The blockchain is a database that allows you to add information but not edit it, therefore making it the go-to place for accurate information. In the digital world, we live in, it is very easy to manipulate information. In fact, it's getting harder and harder to know what's real and who to trust. This is where blockchain comes into play.A blockchain is essentially a database that allows information to be recorded in it, shared, and made available to everyone, but makes the information uneditable. This means that once the information is on the blockchain, it cannot be changed, misinterpreted, or deleted. In this way, the blockchain acts as a source of truth.To understand how blockchain works, let's assume you're moving and start by packing your kitchen utensils.How blockchain works in different industries:health care. Medical records are added to the blockchain so doctors can view accurate health records in real time.music industry. Songwriters put their creations on the blockchain, so true ownership of the work is recorded and other artists cannot copy their work.aerospace industry. NASA uses blockchain to keep its space shuttle information accurate and protect its information from hackers.As you can see, blockchain technology is spreading beyond cryptocurrencies and helping us create a safer, more transparent and more secure world. It is used where the risk is high and the information should not be manipulated. This is what makes blockchain powerful.

More details

Published - Thu, 28 Apr 2022

How do I buy cryptocurrencies?

Created by - shera academy

How do I buy cryptocurrencies?

 “Cryptocurrency exchanges” are platforms that allow you to buy, sell and trade cryptocurrencies. The most common way to buy cryptocurrencies is through online platforms that allow you to buy, sell, and trade cryptocurrencies, known as "cryptocurrency exchanges" or simply "exchanges." The exchange usually behaves like your online broker.Canadian exchanges like ours at Netcoins allow you to deposit Canadian dollars directly into your Netcoins account via Interac electronic transfer, online bill pay, or wire transfer.That's it! It's that simple, fast, and painless. While this is great, it's still important to be aware of the other options available to you when buying cryptocurrencies.Bitcoin ATM.A Bitcoin ATM is similar to a regular ATM, but it does not require a PIN. Instead, it uses a QR code from your cryptocurrency wallet app. This code requires the ATM to send bitcoins directly to your wallet. Of course, the first step is to deposit cash into a Bitcoin ATM.Buy Bitcoin in person.Some people prefer human interaction. Because of this, some Bitcoin companies offer brick-and-mortar stores where you will meet someone from their team who will walk you through the buying process from start to finish.Buy Bitcoin in person.Some people prefer human interaction. Because of this, some Bitcoin companies offer brick-and-mortar stores where you will meet someone from their team who will walk you through the buying process from start to finish.Buy bitcoin privately.People who value privacy can meet friends they trust to buy bitcoin from them. LocalBitcoins.com also offers a marketplace where you can set your own bitcoin buying and selling prices and meet in person to complete your purchase.Whatever you like, make sure you do your research and know what you're investing in. If you are meeting with strangers in person, it is recommended that you meet at a police station or bank with guards and cameras (for security reasons).

More details

Published - Thu, 28 Apr 2022

What are cryptocurrencies?

Created by - shera academy

What are cryptocurrencies?

 Cryptocurrencies are digital money not owned or controlled by banks or governments.Shells, livestock, wine, cigarettes, and gold have all played the role of money (and "means of exchange") throughout the history of money. Today, this role is replaced by banknotes and coins issued, controlled, and managed by governments and banks. This new type of currency is called fiat currency.So what is cryptocurrency?Invented in 2008, cryptocurrencies are a relatively new addition to the monetary system. It is a digital currency and therefore does not exist in physical form (no coins or banknotes!). Instead, it exists only online. Unlike fiat currency, it is a currency that is not controlled by a central bank or government.Fiat currency, on the other hand, was invented in 1971, marking the first time in history that money was controlled by a central bank or government (or “central authority”). Before that, money was created and managed by the market and the people themselves. With cryptocurrencies, we come back to who decides what should be currency and how it should be governed.The problem with currency control is that the central authority can make all decisions about money and print as much money as possible to benefit them, regardless of how it affects the rest of society.Cryptocurrencies, on the other hand, are like democracy. They are run by a group of people who believe in the same philosophy: fair money and fair access to money. Then, a group of developers is working to create an online decentralized system that will allow cryptocurrencies to be sent back and forth (called a "peer-to-peer network"). This allows people to send cryptocurrency to each other without going through banks or governments that charge fees or interest rates or delay people's access to funds.Fiat currencies and cryptocurrencies share some similarities:(1) They are used to buy and sell goods and services. For example, you can pay for an Air Canada flight with Bitcoin.(2) One cryptocurrency can be exchanged for another cryptocurrency. You can exchange bitcoin for ether just like you can exchange Canadian dollars for euros.(3) Cryptocurrencies can be used as a form of investment. You can cash out and profit when the price goes up.Cryptocurrencies are considered the currency of the people and the next step in the evolution of money. As our world becomes more and more digital, the role of cryptocurrencies will only grow.

More details

Published - Thu, 28 Apr 2022

How are cryptocurrencies stored, sent and received?

Created by - shera academy

How are cryptocurrencies stored, sent and received?

Cryptocurrency wallets are an essential part of storing, sending and receiving cryptocurrencies.It is similar to your bank account. You can access your online bank account (crypto wallet) and see all the numbers, but your money doesn't actually exist. Instead, your money is stored somewhere in the bank's database (blockchain).Likewise, no cryptocurrency is actually stored in a crypto wallet. Instead, what is stored is a set of related information, called your private and public keys, that point to your crypto assets on the blockchain. It's your crypto wallet that interacts with the blockchain to track ownership and give you access to your cryptocurrencies.hot and cold walletThere are two main types of crypto wallets you should know about - hot wallets and cold wallets. Hot wallets are basically always connected to the internet, while cold wallets are not (this is usually hardware that looks like a USB drive).A simplified way of thinking is to compare it to a safe (cold wallet) and an online bank account (hot wallet). Finding and accessing a safe can be more difficult than hacking your online bank account. Therefore, cold wallets are generally considered more secure.However, most beginners just start with a hot wallet as they find it more convenient and accessible. However, it is always recommended that you transfer your funds to a cold wallet for added security.How is encryption sent and received?Encrypted transactions are only possible through the use of public and private keys. Here is an analogy:exchange walletWhen you buy cryptocurrencies from an exchange or deposit platform like Netcoins, there is often an option to store your digital currency directly in your account – this is called an exchange wallet.Most beginners keep their assets in their exchange wallets as it makes it easier for them to buy and sell cryptocurrencies without having to make multiple transfers between wallets.If you want extra security and complete control over your funds, it is always recommended to keep your cryptocurrencies in your personal crypto-wallet rather than an exchange wallet.This means that every time you buy cryptocurrency on an exchange, you have to manually send the cryptocurrency to your external wallet. Vice versa, if you want to sell, you need to transfer the cryptocurrency from the external wallet back to your exchange wallet before you can trade it.do you know? For security reasons, the private and public keys are encrypted. So they are a randomly generated set of letters and numbers. Something like this: 1A1zP1EpSIGaoi2DMPQfTL5S (please don't send encryption to this phrase).

More details

Published - Thu, 28 Apr 2022

What is Play-to-Earn in Crypto?

Created by - shera academy

What is Play-to-Earn in Crypto?

The game is a distraction after a long, hard day. At least that's been the case in video games for the past 50 years. However, a new generation of video games is emerging. This generation uses blockchain technology such as non-fungible tokens (NFTs) to reward players with cryptocurrencies. These games, also known as Pay-As-You-Go (P2E), have recently become popular. But what exactly are P2E games and which ones are the most popular?What is Earn Money Games (P2E)?Play-to-earn (P2E) crypto gaming involves earning cryptocurrency by playing games. You can earn in-game currency by completing missions, winning battles, or completing other challenges. Typically, you can exchange this in-game currency for Ethereum or other tokens through a decentralized exchange.The money earned by playing these games comes in the form of cryptocurrencies. This means you can trade it or just use HODL on it. Additionally, they can also be used to buy NFTs. In some cases, NFTs are the in-game currency. This indicates that the user owns in-game items and can sell or trade them in exchange for other things.The P2E industry is booming as the financial rewards of these games provide huge incentives for players. These events are part of the GameFi movement, which combines gaming with decentralized finance (Defi).GameFiGameFi, dubbed "play-to-earn," combines gaming with blockchain-powered financialization. Such games allow users to acquire digital assets for in-game activities through quests, transactions, and other means. While traditional games allow players to collect and exchange digital assets, their investment remains with the game itself, while GameFi games distribute assets across the network. As such, they operate independently of any single organization, significantly reducing the risk of digital assets.Top Play-to-Earn GamesAxie InfinityAxie Infinity quickly became one of the largest blockchain games in the world by leveraging GameFi features like quest completion and property trading.To continue the game, players must collect, train and fight creatures known as Axies. Axie Infinity can offer serious rewards to dedicated players. The best players can make hundreds of thousands of dollars a month. However, even mediocre players can make around $400 during the same period. Players earn these rewards in the form of AXS - an emerging cryptocurrency with a market cap of over $8 billion.Town StarTown Star is a farming simulator similar to the classic game FarmVille on Facebook. In this farming simulator, players can buy trucks or barns as NFTs to farm their virtual land more efficiently and faster. Townstar Tokens (TOWN) are rewarded for achievements and can be used to purchase NFTs. However, in November 2021, the game got its own node, which required further licensing. At the November auction, all the licenses sold out within five minutes. Additionally, TOWN licenses start at $14,000 for the second license cycle this January.Phantom GalaxiesPhantom Galaxies is an open world, third person space sim, mech shooter, RPG. Players take on the role of a Space Ranger piloting a mechanized space fighter. These ships are combat-style ships that can also transform into mechanical robots.During the game, players engage in missions, the game's in-depth storyline, and missions, which are once-in-a-lifetime experiences. Operations (daily quests) and raids (team-based objectives) are also available. The farther you are from the center, the greater the risk of the task and the greater the reward.The first launch of Phantom Galaxies was on the Polygon blockchain. Long-term ideas include supporting multiple chains, each with its own home galaxy, but still allowing players to connect. The closed alpha is already accessible, and the early access beta is scheduled to begin in Q3 2022.Blankos Block PartyBlankos Block Party is an open-world multiplayer crypto game for money. The game is one of the most popular using blockchain technology, with components comparable to Minecraft and Roblox.In the game, users can design unique avatars and environments for other players to use. Additionally, player-created characters are non-fungible tokens. This way you can buy, sell and view them exclusively.Blanks Block Party lets you explore and play games with friends. Additionally, players can design their own rules and personalize their experiences. Although Blankos is just over a year old, it is one of the most popular crypto games.The future of games for making moneyPlaying money-making games could become an exciting part of a decentralized ecosystem.With their fascinating developments and enticing economic incentives, they can be some of the most popular games out there. Therefore, time will tell if P2E gaming will gain popularity in the long term. However, this seems to be the current situation in the crypto market.TakeawaysThe gaming industry was one of the first to adopt NFT tokens.Play-to-Earn (P2E) crypto gaming involves earning currency by playing games.Money won by playing these games can be transferred to a Bitcoin wallet.GameFi is a combination of gaming and blockchain-powered financializationAxie Infinity is the biggest blockchain game. Revenue is supported by AXS.Blankos Block Party is a famous game similar to Minecraft and Roblox.Due to its fascinating development and economic incentives, the future of P2E is very bright.

More details

Published - Wed, 27 Apr 2022

Metaverse – What is the Metaverse?

Created by - shera academy

Metaverse – What is the Metaverse?

Metaverse is a concept that most people are familiar with, or at least have heard of. If you like technology, you must have heard Facebook (now META) talk about the future of life, which they call the Metaverse, a living, shared, timeless virtual environment.The Metaverse is a virtual world that connects people through social networking, digital games, augmented reality (AR), virtual reality (VR), and cryptocurrencies. Virtual elements such as visual, audio, and other sensory inputs can enhance the user's experience in this reality.What is Metaverse?It is often used to represent a vision for a future version of the Internet after the implementation of Web 3.0, consisting of a permanently shared 3D virtual location connected to a virtual world. The term "metaverse" is a combination of the prefixes "meta" (meaning the future) and "universe".Well, take part in every activity you can think of, such as shopping, messaging, video chat, travel, and gaming, and imagine doing all of them with just a swipe of your fingertips. You can do whatever you want, whenever and wherever you want if you want.However, the metaverse does not exist, at least not yet. Currently, there is no active account on the Metaverse that everyone agrees on.Who created the Metaverse?Before Meta built itself, the term "Metaverse" was well known. It was originally used in Neil Stephenson's book Avalanche, in which he described a 3D virtual environment in which people communicated using virtual avatars. Stephenson was the first to use the term, which he used to describe virtual reality-based internet proxies.Stephenson's concept of a virtual world inspired 3D game developers to try to implement the world through current video games. Neil Stephenson isn't the first to come up with the idea of ​​a three-dimensional virtual world, though. In 1993, Bruce Bethke coined the term "metaverse" to describe the cyberspace in which the events of his novel would take place. This was also mentioned in William Gibson's 1984 book Neuromancer.It was Mark Zuckerberg himself and his company that announced that Facebook would now be called Meta and that Meta would be responsible for implementing the new revolutionary technology."We believe that the Metaverse will be the successor to the mobile web and we will be able to feel a presence - as if we were in a crowd, no matter how far apart we actually are," he said.However, we have to mention that meta is not the only metaverse. There are several metaverses in development, Meta is just one of them.Why create a metaverse?Simply put, the purpose of the metaverse is to give you the power to live out your fantasies. You might engage in hand-to-hand combat while slaying opponents in your favorite online game; watch a basketball game in Los Angeles or fish in the icy Antarctic winds. All this happens with an exceptionally realistic look; at the same time, you can enjoy the comfort of your own home.You are also free to express your wishes. Instead of a profile picture, you'll get a fully 3D, real-time avatar of yourself. Such avatars are likely to use non-fungible token (NFT) technology. To be clear, your avatar will not resemble a cartoon character in any way in the long run. However, the reality is that Meta is also working on technology that will allow them to build fully realistic avatars.This is true for users. And, honestly, the realism combined with the ability to choose your appearance will give you the impression that you are not limited by the body you were born with. Take, for example, someone born with a walking disability or incapacitated by an unfortunate event; in Metaverse, users can not only walk but also fly.The pros and cons of Metaverse.Metaverse is good and bad, let's take a look.benefitFor gamers, Metaverse lets you experience the game you're playing by acting as a character, not just controlling it.While visiting a doctor in real life can be lengthy, in the Metaverse you can easily have a virtual chat with your doctor. While this can be a physical health concern, its psychological component may be better than individual therapy.With Metaverse, traveling will be a walk in the park; you can visit the pyramids in Egypt and after that the Statue of Liberty in New York, all from the comfort of your own room.shortcomingMetaverse just joining this virtual environment is expensive. However, Metaverse hopes to reduce prices in the future to allow more people to enter Metaverse.As you can imagine, users will misuse it and end up becoming addicted.Still, in development, it will take a long time to achieve a perfect metaverse. Creating a new digital environment is not easy. In addition to production, the new digital world will require other components. Additionally, it requires seamless interaction between avatars, collaboration with other parts, and various other factors.The Metaverse Advantage for Learning and ProductivityThe metaverse will benefit not only our daily lives but also our educational activities. While Google is the primary source for learning and learning new topics, Metaverse allows us to learn intuitively. This means that you can go to any area at any time. such as the industrial age, the Roman age,  ancient Egypt, and even dinosaurs. It will be just as though you were traveling through time. Discover the history by being present and experiencing it.Visual learning is very efficient, which means you can learn faster with Metaverse. If you learn faster, you can also complete tasks faster. Metaverse might make us more efficient. Given the current situation with Covid-19, we are already familiar with working from home and will be doing the same in the Metaverse. However, it can also mean that users always find themselves in the most ideal circumstances. Of course, this could mean being surrounded by people or being totally alone. You can even do this in the spaceship's office or sitting on the beach by the sea. So the choice is entirely yours.Metaverse and surrounding areasWith what is happening in our environment, our planet is becoming increasingly unstable due to rapid climate change. Our emissions do not appear to be falling fast enough to prevent runaway warming, and we may be approaching a tipping point that could lead to the collapse of ecosystems and societies. While scientists, campaigners, and a large portion of the younger population call for action, the Metaverse may, strangely, assist in this.You see, making physical products in the real world has a huge negative impact on the environment. For example, a car can easily emit 20 tons of CO2, but a digital product will emit 100 times less. Speaking of which, the need for transportation in a virtual world is basically unnecessary, so why drive when you can teleport anywhere you want?What Metaverse is trying to achieve is that as more people join Metaverse, more users will turn to acquiring digital products, thereby reducing the use of planes, trains, vehicles, and ships, and thus reducing our impact on the planet.Is it possible for the metaverse to create new economies?When we spend all of our time in this virtual environment, the way we visually represent ourselves becomes even more important, which opens up new opportunities to make money. If you're curious, how could you possibly buy a product without other users copying it? This is where blockchain technology comes into play. A blockchain works like a database in that it stores data in a digital format. Blockchain is known for its critical role in maintaining a secure and decentralized record of transactions and transactions. Such transactions use the same technology as NFTs.The currencies in these metaverses are likely to be cryptocurrencies, which you can use for various transactions. This means that Metaverse will encourage decentralization, which means that only buyers and sellers are responsible for transactions.The world's greatest metaverseThere are several cryptocurrency projects classified as Metaverse. Also, most of them have native tokens that can be traded on major exchanges. Some of the biggest are:Axis Unlimited (AXS)Axie Infinity is a Pokémon-themed virtual environment where anyone can earn tokens by playing the game and contributing to the ecosystem. Players can use their pets to fight, acquire, grow and develop a land-based empire.Third parties can easily access all of Axie's artwork and genetic data. This allows community developers to create their own tools and experiences in the Axie Infinity space.Decentralization (MANA)Decentraland is a 3D virtual world platform accessible via a web browser. Users can purchase virtual land in the form of NFTs on the platform using MANA, a purchasable cryptocurrency based on the Ethereum blockchain.Encrypted Tank (TANK)CryptoTanks is a money-making metaverse game where users collect NFT tanks to play the classic 90s 8-bit game hit CryptoTanks. In the DeFi ecosystem, you can sell or trade any NFT from CryptoTanks.My Neighbor Alice (ALICE)Alice, also known as My Neighbor Alice, is a multiplayer game developed on the Ethereum network. In the virtual world, players stay on a huge island where they can buy and sell parts of the land.Sandbox (SAND)Sandbox is a Metaverse project built on the Ethereum blockchain, and Sandbox is the native token of Sandbox. SoftBank, one of the largest investors in the world, is backing the project.Everdome (dome)You may have heard of Metahero; a project that attempts to use 3D scanning technology to transform actual objects, including people, into ultra-high-definition avatars. A few months ago, they announced their new real-world virtual world, Everdome.Negative Effects of MetaverseI want to dig deeper into the negative aspects of Metaverse. While it's still in development, Metaverse has shown quite a few flaws; we can't help but mention the internet's take on the concept of Metaverse.Data Security - It is reasonable to conclude that entering Metaverse we are not adequately protected. This is because Facebook struggles to sell personal data to marketing organizations for profit. The only data we provide today are basic photos and information, which is easy. However, when we start living in this virtual world, it's hard not to show many other things.Reality vs Fiction - Metaverse's biggest issue right now is the idea of ​​digital changing our lives. As mentioned before, in life in this virtual world, your appearance, your behavior, and the relationships you make there will gradually become more important than your real life. The question is, if Metaverse comes into life, what will happen to life, the reality that we are leaving behind?Moderation – A difficult and unfavorable element of moderation is that it is difficult to maintain. While Metaverse aspires to follow in the footsteps of a decentralized system, it is reasonable to state that without rules and individuals to keep an eye out for hate speech, bullying, and even hacking, utilizing Metaverse may become very difficult.It's too early to predict whether the metaverse will be the future or the end of virtual reality idealism. We'll just have to wait and see what the Metaverse has in store for us.Takeaways:Metaverse is used to describe the Web 3 concept of permanent, shared 3D virtual sites. Compared to the current internet, these places are said to be associated with the perceived virtual world.In the term "metaverse," the prefix "meta" refers to the future, while the word "universe" refers to the present.According to scientific evidence, visual learning is more effective than auditory learning; therefore, with Metaverse, you learn faster, and if you can learn faster, you can complete tasks faster.Stephenson first coined the term to describe a virtual reality-based internet alternative that would replace the internet.Stephenson's idea of ​​a metaverse led 3D game developers to create a world similar to that of contemporary video games.On the other hand, Neil Stephenson is not the first to come up with the concept of 3D virtual reality.

More details

Published - Wed, 27 Apr 2022

Popular blogs

What is cryptocurrency?

Created by - shera academy

What is cryptocurrency?

 Chapter 1 - Cryptocurrency 101What is cryptocurrency?Cryptocurrency (or cryptocurrencies) is a form of digital cash that allows individuals to transfer value in a digital environment.You might be wondering how this type of system is different from PayPal or a digital banking app on your phone. On the surface, they appear to serve the same use case—paying a friend, shopping on your favorite site—but behind the scenes they are very different.What makes cryptocurrencies unique?Cryptocurrencies are unique for a number of reasons. However, its main function is to act as an electronic payment system that does not belong to any party.A good cryptocurrency will be decentralized. No central bank or group of users can change the rules without consensus. Network participants (nodes) run software that connects them to other participants so they can share information with each other.On the left is what you expect from the bench. Users must communicate through a central server. There is no hierarchy on the right side: nodes are connected to each other and pass information between each other.The decentralization of cryptocurrency networks makes them highly resilient to shutdowns or censorship. On the other hand, to shut down a centralized network, all you have to do is interrupt the main server. Tracking user balances would be very difficult if banks wiped their databases and didn't have backups.In cryptocurrency, nodes keep a copy of the database. Each effectively acts as its own server. Individual nodes can go offline, but their peers can still retrieve information from other nodes.Therefore, cryptocurrencies operate 24 hours a day, 365 days a year. They allow value to be transferred anywhere in the world without the intervention of a middleman.Why is it called cryptocurrency?The term "cryptocurrency" is a combination of cryptography and money. This is simply because cryptocurrencies make extensive use of cryptography to secure transactions between users.What is public-key cryptography?Public key cryptography supports cryptocurrency networks. This is the basis for users to send and receive funds.In a public-key encryption scheme, you have a public key and a private key. A private key is essentially a huge number that no one can guess. It is often difficult to understand how large this number is.With Bitcoin, guessing a private key is about as likely as correctly guessing the outcome of 256 coin tosses. With current computers, you can't even crack someone's key before the universe's heat death.As the name suggests, you must keep your private key private. But you can generate a public key from this key. The public can be safely distributed to anyone. It's almost impossible for them to reverse engineer the public key to get your private key.You can also create digital signatures by signing data with your private key. This is similar to signing documents in the real world. The main difference is that anyone can determine if a signature is valid by comparing it to the matching public key. This way, users don't have to reveal their private key, but can still prove that it belongs to them.In cryptocurrencies, you can only spend money if you have the corresponding private key. When you make a transaction, you tell the network that you want to transfer your currency. This is announced in a message (i.e. a transaction), which is signed and added to the encrypted database (blockchain). As mentioned, you need your private key to create the digital signature. And since anyone can see the database, they can check that your transaction is valid by checking the signature.Who invented cryptocurrency?There have been some attempts at digital cash systems over the years, but the first cryptocurrency was Bitcoin, which was released in 2009. It was created by a person or group of people under the pseudonym Satoshi Nakamoto. To this day, her true identity is unknown.Bitcoin spawned a plethora of follow-on cryptocurrencies—some designed to compete, others to integrate features that Bitcoin didn’t have. Today, many blockchains not only allow users to send and receive funds but also allow users to run decentralized applications using smart contracts. Ethereum is probably the most famous example of such a blockchain.What is the difference between a cryptocurrency and a token?At first glance, cryptocurrencies and tokens look the same. Both are traded on exchanges and can be sent between blockchain addresses.Cryptocurrencies are designed to be used only as money, whether as a medium of exchange, a store of value, or both. Each unit is functionally fungible, meaning one coin is worth as much as another.Bitcoin and other early cryptocurrencies were considered money, but later blockchains tried to do more. For example, Ethereum does not only provide currency functions. It allows developers to run code (smart contracts) on a distributed network and create tokens for various decentralized applications.Tokens can be used like cryptocurrencies, but are more flexible. You can mint millions of the same or a few with unique properties. They can be used for anything from digital receipts representing business ownership to loyalty points.With protocols that support smart contracts, the base currency (used to pay for transactions or applications) is separate from its token. For example, with Ethereum, the native currency is ether (ETH), which must be used to create and transfer tokens within the Ethereum network. These tokens are implemented according to standards such as ERC-20 or ERC-721.What is a crypto wallet?Essentially, a cryptocurrency wallet is something that holds your private keys. It can be a dedicated device (hardware wallet), an app on a PC or smartphone, or even a piece of paper.Wallets are the interface most users rely on to interact with cryptocurrency networks. Different types offer different types of functionality - obviously paper wallets cannot sign transactions or display current prices in fiat currency.For simplicity, software wallets such as Trust Wallet are considered the best choice for everyday payments. For security reasons, hardware wallets are almost unmatched in protecting private keys from prying eyes. Cryptocurrency users tend to store funds in both types of wallets.Chapter 2 - How does blockchain work?What is blockchain?A blockchain is a special type of database where data can only be added (not deleted or changed). Transactions are periodically added to the blockchain within so-called blocks (consisting of transaction information and other important metadata).We call this structure a chain because each block's metadata contains the information linking it to the previous block. In particular, it contains the hash of the previous block, which you can think of as a unique digital fingerprint.The probability that two pieces of data will produce the same output from the hash function is very small. So if someone tries to change an old block, their hash will be different, which means the hash of the next block will also be different, and so on. Therefore, it is obvious when a block is changed, because all subsequent blocks must also be changed.The blockchain is completely downloaded by network participants. Remember when we said anyone can verify transactions and signatures using public-key cryptography? When a node receives a block, it performs a series of checks. If anything is invalid, the block is rejected.When a node receives a valid block, it makes its own copy and then passes the block to other nodes. Then they do the same thing until the block is propagated to the entire network. This process also applies to unconfirmed transactions—those that have been sent but have not yet entered the blockchain.How to add blocks to the blockchain?The integrity of the blockchain is compromised when false financial information can be recorded. At the same time, in a distributed system, there is no administrator or leader to maintain the ledger, so how do we ensure that participants are acting honestly?Satoshi Nakamoto proposed a proof-of-work system that allows anyone to propose a block that is attached to the blockchain. In order to render a block, users must sacrifice computing power to guess the challenges set by the protocol.Proof-of-work is the most mature solution for reaching consensus among users, but it is far from the only one. Alternatives such as proof-of-stake are increasingly being explored, although their true form has not been properly implemented (although hybrid consensus mechanisms have been around for a while).How does crypto mining work?The above process is called mining. If miners find a solution, the blocks they build will extend the chain. As a result, they will receive rewards denominated in the blockchain's native currency.The cryptographic puzzles that miners have to solve involve hashing data repeatedly to produce numbers below a certain value. Using one-way function hashing means that given the output, it is nearly impossible to guess the input. However, given the input, checking the output is trivial. This way, any participant can verify that the miner created a "correct" block and reject invalid blocks. In this case, the miner gets no reward and wastes resources trying to forge an invalid block.This leads to an interesting game theory that makes it expensive for actors to try to cheat but profitable to act honestly. No malicious entity has the resources to attack a powerful network indefinitely. Therefore, we expect those with resources to make a return on their investment by participating correctly.Can cryptocurrencies scale?As you can probably see, distributed networks are not very efficient. Unfortunately, cryptocurrencies can only be secure and censorship-resistant if all nodes can synchronize a copy of the blockchain. The lower the requirement to keep up, the easier it is for people to join.You can see why a blockchain that only adds a small block every ten minutes is preferable in this regard to a blockchain that adds a large block every five minutes. The latter requires nodes to run high-performance computers to stay in sync, and forces low-power computers to go offline. This will lead to more centralization as there are fewer peers in the network.But for smaller blocks, we cannot achieve multiple transactions per second (TPS). This also means that during busy periods, it can take a while for a transaction to be added to the blockchain. It's inconvenient when you want to pay quickly, but it's the price to pay for decentralization.We call this problem the scalability dilemma. A well-scalable system is one that is easy to scale to accommodate increased throughput with minimal cost. Blockchains don't scale well - as we explained, simply increasing throughput with larger blocks defeats the whole purpose of a distributed network.To increase TPS without compromising network decentralization, off-chain scaling appears to be a viable approach. This includes a wide range of solutions - both centralized and decentralized - allowing transactions to take place without being recorded on the blockchain.Who Makes Crypto Software Decisions?A Cryptocurrency network is optional. No one is forcing you to run the software you don't want. In a good protocol, the code is completely open-source, and users can rest assured of the fairness and security of the system.Generally speaking, cryptocurrencies allow everyone to participate in their development. New features or code changes are reviewed by the developer community before they are agreed upon and released. From there, users can review the code themselves and decide whether to run it or not.Some updates are backward compatible, which means that newer nodes will continue to communicate with older nodes. Others are not backward compatible - old nodes will be "kicked" off the network if not updated. For instructions, see Hard Forks and Soft Forks.Chapter 3 - How do I invest in cryptocurrencies?Which cryptocurrency should I buy?This is a decision only you can make - you should do your own research (DYOR) and make a decision based on your own analysis. That being said, there are many tools that can help you make better decisions. For example, Binance Research provides excellent market insights and analysis, as well as comprehensive reports on individual projects.When evaluating which cryptocurrency to buy, it is absolutely necessary to first understand how Bitcoin works. Good news, this is exactly why we have what is Bitcoin? guide!What should I learn before investing in cryptocurrencies?Where do we even start? There are many ways to analyze financial markets, and in general, most professional investors use very different strategies. At a high level, however, there are two main ideas for evaluating investments: Fundamental Analysis (FA) and Technical Analysis (TA).Fundamental analysis is a method of evaluating asset valuations based primarily on economic and financial factors. Analysts using this approach focus on both macroeconomic and microeconomic factors, industry conditions or the underlying business of an asset if any. For cryptocurrencies, they can also view public blockchain data, sometimes called on-chain metrics.This can include looking at transaction counts, addresses, top holders, network hash rate, and countless other information. The goal of this analysis is to create a valuation for the asset and compare it to the current valuation. Ultimately, this method is designed to determine whether an asset is currently undervalued or overvalued.In conclusion, it is important to remember that cryptocurrencies are an emerging and thriving asset class. The fundamental analysis leaves little leeway in determining its valuation. In short, without a standardized framework for determining cryptocurrency valuations, most existing models cannot be trusted to a large extent. The success or failure of a cryptocurrency project can depend on many different factors that cannot be explained by the current framework.Technical analysts take a different approach. Unlike fundamental analysts, technical analysts do not attempt to determine the intrinsic value of an asset. Instead, they evaluate deals and investment opportunities based on historical deal activity. They assess market strengths and weaknesses by focusing on price action, chart patterns, indicators, and various other charting tools. In essence, technical analysts believe that the previous price movements of an asset can be valuable to try to predict its future price movements.Technical analysis is widely used by cryptocurrency traders as it can be applied to almost any market with historical data.So what should you learn? Well, why not have both? Most market analysis tools work best when combined with other tools. Regardless, it is absolutely necessary to understand financial risk and risk management, and never invest more than you can afford to lose.where to buy cryptocurrenciesThere are many ways to buy cryptocurrencies. However, the first thing you need to do is convert fiat currency to cryptocurrency. You can then choose to HODL, trade with other cryptocurrencies, or lend and earn interest. Let's take a look at the different types of cryptocurrency exchanges.Centralized Exchange (CEX)You may find the concept of a centralized exchange a bit confusing, as cryptocurrencies are often referred to as decentralized. Simply put, a centralized exchange is an online platform that facilitates transactions by connecting buyers and sellers.The way this is done is that users deposit their fiat or cryptocurrencies into exchanges and trade them within their internal systems. If you are familiar with how cryptocurrency wallets work, you know that in this case, your cryptocurrency is held by an exchange. However, it should be easy for you to withdraw funds and keep them in your wallet if you want.Some people may prefer to keep their funds on exchanges because they trade regularly or for convenience. However, user funds may be at risk if the exchange is hacked.Decentralized Exchange (DEX)The situation is different with decentralized exchanges. When using a DEX, there is no custodian involved. In fact, a more accurate way to refer to this type of exchange is an exchange without escrow.This is what happens when you trade a DEX. Instead of depositing funds into an exchange's wallet, trade directly from your own wallet. When a transaction is executed, funds are transferred directly to the blockchain using the magic of smart contracts.Since no entity acts as a custodian, some believe this is a safer option than CEX. Another advantage may be that most DEXs do not require you to provide any personal information other than your blockchain wallet address. At the same time, holding your own funds requires a certain level of technical expertise and is entirely at your own risk.P2P ExchangePeer-to-peer (P2P) exchanges are also where buyers and sellers are connected, but it is different from CEXs and DEXs. In this case, the exchange itself simply connects buyers and sellers who can settle transactions in the way they agreed. This allows buyers and sellers to decide how each transaction is deposited and settled.How to buy cryptocurrencyHow to buy cryptocurrencies on BinanceIf you don't have an account yet, log in to Binance or sign up.Go to the buy and sell cryptocurrency portal.Choose the cryptocurrency you want to buy and the currency you want to pay for.Choose a payment method.If prompted, enter your card or bank details and complete authentication.you are done! Your cryptocurrency will be credited to your Binance account.How to buy cryptocurrencies on Binance DEXUsing a DEX is a bit more complicated than the other options available.Before you start, here's what you need:A wallet that can connect to Binance DEX (we recommend Trust Wallet).Some BNBs pay transaction fees.Once you receive them, follow the instructions in our detailed Binance DEX guide:How to Buy Cryptocurrencies on Binance P2PSign up for Binance or sign up if you don't have an account yet.Go to the Binance P2P Portal.Choose whether you want to buy or sell.Filter by currency, payment method, or other transaction requirements.Choose the entry that suits your needs or publish your own.Chapter 4 - Frequently Asked Questions About CryptocurrenciesAre cryptocurrencies legal?Few countries completely ban the purchase, sale, and storage of cryptocurrencies. Bitcoin and other virtual currencies are completely legal in the vast majority of the world. But before you start, you should check if your jurisdiction allows it.It is important to remember that each country has a different approach to regulating cryptocurrency activity. Make sure you are not violating any tax or compliance related regulations.Is cryptocurrency dead?Over the past decade, the media has declared the death of cryptocurrencies hundreds of times. But it works the same way it did in 2009. That doesn't mean it won't fluctuate -- prices fluctuate a lot. For those who just want to make money, bear markets can be intimidating.However, it would be wrong to call cryptocurrencies "dead." It continues to attract new users, and the technology and infrastructure have become increasingly complex.The core innovations of Bitcoin and Ethereum will undoubtedly play an important role in changing our existing monetary system to be more suitable for the current era. Immutability, censorship resistance, lack of trust, or near-instant transactions using public monetary systems could revolutionize the mechanics of economic activity on the Internet.Is cryptocurrency safe?Cryptocurrencies come with some risks. If you forget your password to access your bank account, you can easily reset it through customer service. However, if you forget or lose the private key that allows you to access your cryptocurrency, no one can help you. Using a reputable exchange might be a more forgiving option - it requires trust, but you don't risk losing your private keys.Public key cryptography has not yet been cracked. With good security measures in place, one of your other online accounts may be more likely to be hacked than if your money was stolen. Best practices include being aware of common scams (social engineering, phishing, etc.), keeping your private keys offline at all times, and backing them up in a safe place.Are cryptocurrencies anonymous?Your name has nothing to do with your cryptocurrency address - they look like random strings of numbers and letters on the blockchain. However, if you think this will make you anonymous, be careful. They are pseudonymous - you still have some kind of on-chain identity, just not the one you use in real life.There are ways for people to associate IP addresses with your activity. In this regard, things like dusting attacks and other analytical techniques can be used to de-anonymize you. Remember that blockchains are essentially large public databases. If you are concerned about your privacy, you should try to make it difficult for others to associate your transactions with your name. Cryptocurrencies like Bitcoin are not private by default, but methods like coin mixing and CoinJoins can make analytical heuristics unreliable.A small number of cryptocurrencies, known as privacy coins, are able to obfuscate the source, destination, and amount of funds in a transaction using methods such as confidential transactions. By default, they have stronger privacy protections but are not completely resistant to deanonymization.Are cryptocurrencies valuable?In the financial system, value is a shared belief. As with anything of value, value is not inherent in cryptocurrency itself - it is assigned by humans. In other words, when people believe in something, it has value. This is true whether the valuable item is a precious metal, a piece of paper, or a few bits in a database.Nonetheless, some believe that cryptocurrencies and Bitcoin are analogous to scarce digital commodities. Due to its predictable issuance rate and monetary policy, some believe that Bitcoin could serve as a gold-like store of value in the future. Since Bitcoin has only been around for over a decade, it’s yet to be seen whether it will stand the test of time in this regard.Are all digital currencies cryptocurrencies?No. You may have heard that many countries and central banks are working hard to create their own versions of digital currencies. However, these are just digital currencies. In fact, they are often collectively referred to as Central Bank Digital Currencies (CBDCs). These are essentially digital versions of fiat money, and they don't enjoy most of the benefits of cryptocurrencies. They are issued and declared as legal tender by the central government, usually without the use of distributed ledgers such as B. Blockchains that record transactions.You may also have heard of Facebook Libra, another digital currency. On the plus side, it plans to be built on an open-source blockchain system. However, it won't be permissionless like Bitcoin or Ethereum, meaning participants need more than a basic internet connection to use it. What’s more, the project and the activity on it would be run and managed by an association made up of a few selected members.So while CBDCs and other forms of digital currencies use blockchain or cryptography, they are very different from cryptocurrencies like Bitcoin.What is the market capitalization of cryptocurrencies?When you look at the price of a cryptocurrency, you only see part of the picture. An equally important metric is how many individual units of this cryptocurrency exist, known as the supply.More specifically, to assess the valuation of a cryptocurrency network, you need to know how many individual entities currently exist. This is called circulating supply. Different cryptocurrencies can have different issuance plans, so it is important to understand how issuance works with each network.Market cap (or market cap) is the price of a single unit multiplied by the circulating supply.As you might imagine, the market capitalization of a cryptocurrency network is a more accurate representation of the value on the network than the price of a single unit. A network with a cheaper token but a higher circulating supply may have a higher overall valuation (market cap) than a network with a more expensive token but a lower circulating supply. In some cases, the opposite may also be true.It's worth noting, however, that market capitalization does not represent how much money has entered a particular market. For example, a common misunderstanding among newbies is that the Bitcoin market cap represents the total amount invested in Bitcoin. But it doesn't make sense because market capitalization depends on price and supply. Why do I have to pay transaction fees?If you send bitcoins to a different address, you will find that the address receives slightly fewer bitcoins than you sent. That's because you pay a small fee to reward miners for adding your transaction to the blockchain.Many cryptocurrencies use similar mechanisms to encourage users to secure the network. In a proof-of-work system, transaction fees are often tied to newly minted coins (block subsidy) to form block rewards.You can adjust the fee based on the urgency of the transaction. Rational miners will always try to generate as much revenue as possible, so they will prioritize transactions with higher fees. You can view your current pending transactions to see the average fee and set your own accordingly.I lost my keys. Can I get my money back?If you're sure you've lost your keys, chances are you'll never be able to get them back. The biggest benefit of cryptocurrencies is that it free custodians and middlemen from managing financial transactions. However, the downside of this is that the responsibility is now entirely in your hands. Therefore, you must be very careful not to lose your private keys as they give you ownership of your funds.What is the future of cryptocurrencies?The future of cryptocurrencies will all depend on who you ask. Some believe that Bitcoin will replace gold and disrupt the existing financial system in the digital age. Others argue that cryptocurrencies will always be secondary systems that exist as niche markets. We also have people who believe that Ethereum will become a kind of distributed computing that will be the backbone of the new internet.Skeptics predict the industry will eventually collapse, while zealots are content that cryptocurrencies remain a niche monetary system. There are many possible outcomes - it's too early to tell what will happen a year from now. But we cannot deny that there is huge growth potential.

More details

Published - Sun, 17 Apr 2022

What Is BNB?

Created by - shera academy

What Is BNB?

BNB was launched via an initial coin offering (or ICO) between June 26 and July 3, 2017, 11 days before Binance Exchange opened for trading. The issue price is 2,700 BNB for 1 ETH or 20,000 BNB for 1 BTC. Although BNB was launched through an ICO, BNB does not entitle users to Binance profits and does not constitute an investment in Binance.BNB was originally issued as an ERC-20 token running on the Ethereum network with a total supply of 200 million. The ICO provided 100 million BNB, but the current total supply is less due to periodic burn events and real-time burn mechanisms. If you want to learn more about token burns and why BNB is permanently burned, read What is Token Burn?Although initially based on the Ethereum network, ERC-20 BNB tokens were later exchanged for BEP-2 BNB at a 1:1 ratio. BEP-2 BNB is the native currency of the Binance Chain, and the mainnet launch was announced on April 18, 2019.In September 2020, Binance launched the BNB Smart Chain (BSC, formerly Binance Smart Chain), a blockchain network running in parallel with the BNB Beacon Chain. This means you can now find three different forms of BNB:BNB BEP-2 on the BNB Beacon Chain (formerly Binance Chain).BNB BEP-20 on BNB Smart Chain (formerly Binance Smart Chain).BNB ERC-20 on the Ethereum network.What is BNB used for?As mentioned, BNB has many use cases in the BNB chain ecosystem and elsewhere, so it's up to you to decide how to use your BNB. For example, you can use BNB to pay for travel, buy virtual gifts, and more. We estimate that users consume millions of BNB for travel expenses, purchases, earning credits, rewards, creating smart contracts, and other transactions.Many also use BNB to pay transaction fees. On Binance alone, around 2 million users paid over 40 million BNB in ​​transaction fees using BNB, with over 127 billion transactions. Let's take a look at how BNB can help you deal with transaction fees.When trading cryptocurrencies on Binance, there is a standard fee of 0.1% per trade (transaction fees are determined by your monthly trading volume and BNB holdings). You can pay transaction fees with the assets you trade, or you can pay for them with BNB. If you choose to pay in BNB, you will get a special discount.So, if you trade a lot on Binance, you should consider getting BNB and using it to cover your fees. Remember that transaction fee deductions follow a specific schedule, so be sure to check the current spot transaction fee schedule. It’s also worth noting that the Binance Futures platform follows slightly different fees.In addition to transaction fee discounts, BNB powers hundreds of applications running on Binance DEX (on the Binance Beacon Chain) and BNB Smart Chain (BSC), meaning you can also use BNB outside of the Binance exchange platform. In fact, more than 180 digital assets have been issued on BSC, and millions of users use BNB for practical purposes related to BSC.Where can I get BNB?Most BNB purchases are made on the secondary market. This means you can buy and sell BNB on Binance.com and other crypto platforms. How to buy BNB now!

More details

Published - Sun, 17 Apr 2022

How Does Blockchain Work?

Created by - shera academy

How Does Blockchain Work?

What is blockchain?Simply put, a blockchain is a list of records as a decentralized digital ledger. Data is organized in blocks, which are arranged in chronological order and protected by cryptography.The earliest blockchain models were created in the early 1990s, when computer scientist Stuart Haber and physicist W. Scott Stornetta used cryptography on blockchains to protect digital documents from data tampering.The work of Haber and Stornetta has undoubtedly inspired the work of many other computer scientists and cryptography enthusiasts - culminating in Bitcoin being the first decentralized electronic payment system (or simply the first cryptocurrency).Although blockchain technology predates cryptocurrencies, its potential was not recognized until after the launch of Bitcoin in 2008. since then, the interest in blockchain technology has been growing gradually and cryptocurrencies are now being acknowledged on a larger scale.Blockchain technology is primarily used to record cryptocurrency transactions, but can be used for many other types of digital data and can be applied to a variety of use cases. The oldest, most secure, and largest blockchain network is the Bitcoin network, whose design is a clever combination of cryptography and game theory.How does blockchain work?In the context of cryptocurrencies, a blockchain consists of a stable chain where each block stores a list of previously confirmed transactions. Since the blockchain network is managed by a large number of computers distributed around the world, it acts as a decentralized database (or ledger). This means that each participant (node) maintains a copy of the blockchain data and communicates with each other to ensure they are all on the same page (or block).Thus, blockchain transactions take place in a global peer-to-peer network, which makes Bitcoin a decentralized digital currency, borderless and censorship-resistant. Furthermore, most blockchain systems are considered trustworthy because they do not require any type of trust. There is no single authority that controls Bitcoin.A core part of almost every blockchain is a mining process based on a hashing algorithm. Bitcoin uses the SHA-256 algorithm (Secure Hash Algorithm 256 bits). It accepts input of arbitrary length and produces output that is always the same length. The resulting output is called a "hash" and in this case, always consists of 64 characters (256 bits).So no matter how many times the process is repeated, the same input will lead to the same output. However, when the input changes slightly, the output changes completely. Therefore, hash functions are deterministic and in the cryptocurrency world, most of them are designed as a one-way hash function.Because it's a one-way function, it's nearly impossible to compute the input from the output. One can only guess what the input was, but the chances of it being correct are very small. This is one of the reasons why the Bitcoin blockchain is secure.Now that we know what the algorithm does, let's demonstrate how the blockchain works with a simple transaction example.Imagine we have Alice and Bob and their bitcoin balances. Suppose Alice owes Bob 2 bitcoins.In order for Alice to send these 2 bitcoins to Bob, Alice sends a message to all miners in the network containing the transaction she wants to make.In this transaction, Alice gives miner Bob the address and the amount of bitcoin she wants to send, along with a digital signature and her public key. The signature is created using Alice's private key, and miners can verify that Alice is indeed the owner of these coins.Once miners determine that a transaction is valid, they can put it into a block along with many other transactions and try to mine that block. This is done by running the block through the SHA-256 algorithm. The output must start with a certain number of zeros to be considered valid. The number of zeros required depends on the so-called "difficulty", which varies according to the computing power in the network.To initially produce an output hash with a desired number of zeros, miners add so-called "random numbers" to blocks before running through the algorithm. Because a small change in the input can completely change the output, miners try random nonces until they find a valid output hash.Once the block is mined, the miner sends this newly mined block to all other miners. They then verify that the block is valid so they can add it to their copy of the blockchain and the transaction is complete. But in the block, the miner must also include the output hash of the previous block so that all blocks are connected, hence the name blockchain. This is an important part because trust works in the system.Each miner has their own copy of the blockchain on their computer, and everyone trusts the most computationally expensive and longest blockchain. If a minor changes a transaction in the previous block, the output hash of that block will change, causing all subsequent hashes to change as well because blocks with hashes are popular. Miners have to redo all the work for everyone to accept that their blockchain is correct. Therefore, if a miner wants to cheat, he will need more than 50% of the network processing power, which is very unlikely. This type of cyber attack is called a 51% attack.The model of making computers work to produce blocks is called Proof of Work (PoW). There are other models, such as Proof of Stake (PoS), which don’t require much processing power and are said to consume less power while being able to scale for more users.

More details

Published - Sun, 17 Apr 2022

What Is Staking?

Created by - shera academy

What Is Staking?

introduceYou can think of staking as a less resource-intensive alternative to mining. It involves depositing funds in cryptocurrency wallets to support the security and operations of the blockchain network. Simply put, staking is locking up cryptocurrency for rewards.In most cases, you can stake your coins directly from your crypto wallet such as Trust Wallet. On the other hand, many exchanges offer staking services to their users. Binance Staking is an easy way to earn rewards - all you have to do is leave your coins on the exchange. More on that later.To better understand what staking is, you first need to understand how Proof of Stake (PoS) works. PoS is a consensus mechanism that can make blockchains more energy efficient while maintaining a reasonable level of decentralization (at least in theory). Let’s dive into what PoS is and how staking works.Proof of Work has proven to be a very powerful mechanism for facilitating consensus in a decentralized manner. The problem is that it involves a lot of arbitrary computation. The puzzles miners are racing to solve have no other purpose than keeping the network safe. One might argue that this in itself justifies this over computation. At this point, you may be wondering: Are there other ways to maintain decentralized consensus without the significant computational overhead?Enter proof of stake. The main idea is that participants can lock up coins (their "stakes"), and the protocol randomly assigns one of them to validate the right to the next block within a certain time interval. Generally, the probability of being selected is proportional to the number of coins - the more coins locked, the higher the chance.That way, it doesn't depend on which participants created a block on their ability to solve the hash challenge, like proof-of-work. Instead, it depends on how many collateral tokens they hold.Some might argue that producing blocks by staking increases the scalability of the blockchain. This is one reason why the Ethereum network will migrate from PoW to PoS in a series of technical upgrades collectively known as ETH 2.0.Who Created Proof of Stake?One of the early appearances of Proof of Stake can be credited to Sunny King and Scott Nadal in their 2012 Peercoin article. They describe it as "a peer-to-peer crypto-currency design derived from Satoshi Nakamoto's Bitcoin".The peercoin network is launched with a hybrid PoW/PoS mechanism, where PoW is mainly used to mint the initial supply. However, it is not necessary for the long-term sustainability of the network, and its importance gradually decreases. In fact, most cybersecurity relies on PoS.What is Delegated Proof of Stake (DPoS)?Another version of this mechanism, developed by Daniel Larimer in 2014, is called Delegated Proof of Stake (DPoS). It was originally used as part of the BitShares blockchain, but other networks soon adopted the model. These include Steem and EOS, also created by Larimer.DPoS allows users to set their coin balances to vote, with voting power proportional to the number of coins held. These votes are then used to elect a group of representatives who will govern the blockchain on behalf of their constituents, ensuring security and consensus. Typically, the staking rewards are distributed to these elected delegates, who then distribute a portion of the rewards to their constituents in proportion to their individual contributions.The DPoS model makes it possible to reach a consensus with a smaller number of validating nodes. Therefore, it tends to improve network performance. On the other hand, it can also lead to a lower degree of decentralization, as the network relies on a small selection of validator nodes. These validating nodes handle the operation and general governance of the blockchain. You participate in the process of building consensus and determining important governance parameters.In short, DPoS allows users to demonstrate their influence through other participants in the network.How does staking work?As we discussed earlier, proof-of-work blockchains rely on mining to add new blocks to the blockchain. In contrast, proof-of-stake chains generate and validate new blocks through a staking process. Staking is about validators locking their tokens so that the protocol can randomly choose them at certain intervals to create a block. In general, participants with larger bets are more likely to be elected as the next block validator.This allows blocks to be produced without relying on special mining hardware such as ASICs. While ASIC mining requires a significant investment in hardware, staking requires direct investment in the cryptocurrency itself. So instead of competing for the next block with computational work,  PoS validators are selected based on the amount of coins they hold. What encourages validators to maintain the security of the network is the "stake" (coin inventory). If they don't, their entire mission could be in jeopardyWhile each proof-of-stake blockchain has its own staking currency, some networks use a dual-token system where rewards are paid in a second token.On a very practical level, staking simply means keeping funds in a proper wallet. This essentially allows anyone to perform various network functions in exchange for staking rewards. It could also involve adding funds to the staking pool, which we'll get to shortly.How are equity dividends calculated?There is no short answer here. Each blockchain network may use a different method to calculate staking rewards.Some are adjusted in blocks, taking into account many different factors. This can include:How many coins the validator has pokedHow long validators are actively stakingHow many total tokens are staked in the networkInflation rateother factorsSome other networks set staking rewards as a fixed percentage. These awards are distributed to examiners as a form of inflation compensation. Inflation encourages users to spend their coins instead of holding them, which can increase their use as a cryptocurrency. But with this model, validators can calculate exactly how many staking rewards they can expect.A predictable reward schedule, rather than the probability of getting a block reward, may seem advantageous to some. Since this is public information, it can encourage more participants to participate in staking.What is a staking pool?A staking pool is a group of token holders who pool their resources to increase their chances of validating blocks and earning rewards. They combine their stakes and share the rewards in proportion to their contribution to the mining pool.Setting up and maintaining a staking pool often requires a lot of time and expertise. Staking pools tend to be most effective on networks with relatively high barriers to entry (technical or financial). Therefore, many mining pool providers collect fees from staking rewards distributed to participants.Having said that, pools can provide additional flexibility for individual players. Typically, bets must be locked for a certain period of time and often have an exit or grace period specified by the agreement. Furthermore, a considerable minimum balance is almost certainly required to prevent malicious behavior.Most staking pools require a low minimum balance and no additional withdrawal time is attached. Therefore, joining a staking pool rather than staking individually may be ideal for new users.What is a cold pile?Cold staking is the process of staking on a wallet that is not connected to the internet. This can be done with hardware wallets, but also with air-gapped software wallets.A network that supports cold staking allows users to stake while being safe offline. Notably, if a stakeholder removes their coins from cold storage, they will no longer receive any rewards.Cold staking is especially useful for large stakeholders who want to support the network while ensuring maximum protection of their funds.How to Stake on BinanceIn a way, you can put your tokens on Binance just like adding them to a staking pool. However, there are no fees and you can also enjoy all the other benefits that come with holding your tokens on Binance!All you have to do is deposit your PoS tokens on Binance and all the technical requirements will be handled for you. Staking rewards are usually distributed at the beginning of each month.You can view previously distributed rewards for a specific coin in the "Historical Earnings" tab of each project's staking page.final thoughtsProof-of-stake and staking provide more opportunities for anyone interested in participating in blockchain consensus and governance. Also, earning passive income just by holding coins is a very easy way. As staking becomes easier, the barriers to entry into the blockchain ecosystem are getting lower and lower.However, it is worth remembering that staking is not without risk. Locking funds in smart contracts is error-prone, so it is always important for DYOR to use a high-quality wallet like Trust Wallet.

More details

Published - Mon, 11 Apr 2022

The Complete Beginner's Guide to Decentralized Finance (DeFi)

Created by - shera academy

The Complete Beginner's Guide to Decentralized Finance (DeFi)

What is Decentralized Finance (DeFi)?Decentralized Finance (or DeFi for short) refers to an ecosystem of financial applications built on a blockchain network.More specifically, the term Decentralized Finance can refer to a movement aimed at creating an open-source, permissionless, and transparent financial services ecosystem that is available to all and that operates without a central authority. Users will retain full control over their assets and interact with the ecosystem through peer-to-peer (P2P) and decentralized applications (dapps).The main benefit of DeFi is easy to access to financial services, especially for those isolated from the current financial system. Another potential advantage of DeFi is the modular framework on which it is built—interoperable DeFi applications on public blockchains could potentially create entirely new financial markets, products, and services.This article introduces DeFi, its potential applications, promises, limitations, and more.What are the main advantages of DeFi?Traditional finance relies on institutions such as banks as intermediaries and courts as arbitration.DeFi applications do not require intermediaries or arbitrators. The guidelines set out the resolution of all possible disputes and users are always in control of their funds. This reduces the costs associated with deploying and using these products and makes the financial system smoother.Since these new financial services are provided on the blockchain, a single point of failure is eliminated. Data is recorded on the blockchain and distributed across thousands of nodes, making censorship or the potential shutdown of services a complex undertaking.Since the framework for DeFi applications can be built ahead of time, deployment becomes less complex and more secure.Another major benefit of this open ecosystem is that financial services are easily accessible to those who otherwise would not have access. Because the traditional financial system relies on intermediaries for profit, there are often no intermediaries in places in low-income communities. However, with DeFi, costs are significantly reduced, and even low-income people can benefit from a wider range of financial services.What are the potential use cases for DeFi?Borrowing & LendingOpen credit protocols are one of the most popular types of applications in the DeFi ecosystem. Open, decentralized lending has many advantages over traditional credit systems. These include instant transaction processing, the ability to stake digital assets, no credit checks, and potential future standardization.Since these lending services are built on a public blockchain, they minimize the trust required and ensure cryptographic verification methods. Credit markets on the blockchain reduce counterparty risk, making borrowing cheaper, faster, and available to more people.Money Banking ServicesSince DeFi applications are by definition financial applications, money banking services are an obvious use case for them. These may include issuing stablecoins, mortgages, and insurance.As the blockchain industry matures, there is growing interest in the creation of stablecoins. They are cryptoassets that are often tied to real-world assets but can be transferred digitally with relative ease. Since cryptocurrency prices can sometimes fluctuate rapidly, decentralized stablecoins can be introduced into everyday use as digital cash, rather than being issued and overseen by a central authority.Largely due to the number of intermediaries involved, the process of obtaining a mortgage is expensive and time-consuming. By using smart contracts, underwriting and legal costs can be significantly reduced.Insurance on the blockchain can eliminate the need for intermediaries and allow many participants to share risks. This can result in lower premiums for the same quality of service.Decentralized MarketThis type of application can be difficult to value because it is the part of DeFi that provides the most room for financial innovation.Some of the most important DeFi applications are arguably decentralized exchanges (DEXes). These platforms allow users to trade digital assets without the need for a trusted intermediary (exchange) to hold their funds. Transactions are made directly between users' wallets with the help of smart contracts.Because they require far less maintenance, decentralized exchanges typically have lower transaction fees than centralized exchanges.Blockchain technology can also be used to issue and enable ownership of various traditional financial instruments. These applications will operate in a decentralized manner without administrators and single points of failure.For example, security token issuance platforms can provide issuers with the tools and resources to launch tokenized securities with customizable parameters on the blockchain.Other projects may allow the creation of derivatives, synthetic assets, decentralized prediction markets, etc.What role do smart contracts play in DeFi?Most existing and potential decentralized finance applications involve the creation and execution of smart contracts. Ordinary contracts use legal terminology to specify the terms of the relationship between parties, while smart contracts use computer code.Because their terms are written in computer code, smart contracts also have the unique ability to enforce those terms through computer code. This enables reliable execution and automation of numerous business processes that currently require manual monitoring.Using smart contracts is faster, easier, and reduces the risk for both parties. On the other hand, smart contracts also introduce new types of risk. Because computer code is prone to bugs and bugs, the value and confidential information locked in smart contracts is at risk.What challenges does DeFi face?Poor performance: Blockchains are inherently slower than their centralized counterparts, which carry over to applications built on top of them. DeFi application developers must take these constraints into account and optimize their products accordingly.High risk of user error: DeFi applications shift responsibility from intermediaries to users. This can be a negative aspect for many people. Designing a product that minimizes the risk of user error is a particularly difficult challenge when the product is deployed on an immutable blockchain.Poor user experience: Currently, using DeFi apps requires extra effort from users. For DeFi applications to become a core element of the global financial system, they must provide tangible value and incentivize users to switch from traditional systems.Overloaded Ecosystem: Finding the best application for a given use case can be a daunting task, and users need to be able to make the best choice. The challenge is not just developing applications, but thinking about how they fit into the wider DeFi ecosystem.What is the difference between DeFi and Open Banking?Open banking refers to a banking system where third-party financial service providers securely access financial data through APIs. This enables accounts and data to be linked between banks and non-bank financial institutions. Essentially, it enables new types of products and services within the traditional financial system.However, DeFi proposes a whole new financial system independent of the current infrastructure. DeFi is also sometimes referred to as open finance.For example, Open Banking could allow all traditional financial instruments to be managed in one application, securely retrieving data from multiple banks and institutions.Decentralized finance, on the other hand, can govern entirely new financial instruments and new ways of interacting with them.final thoughtsDecentralized finance focuses on building financial services that are independent of traditional financial and political systems. This would allow for a more open financial system and potentially prevent precedents for censorship and discrimination around the world.While this is a tempting idea, not everything benefits from decentralization. Finding the use case that best fits the blockchain properties is critical to building a useful stack of open financial products.If successful, DeFi will take power from large centralized organizations and put it in the hands of open source communities and individuals. Once DeFi is ready for mainstream adoption, it will be decided whether this will create a more efficient financial system.

More details

Published - Mon, 11 Apr 2022

What is a smart contract?

Created by - shera academy

What is a smart contract?

introduceSmart contracts were first described by Nick Szabo in the 1990s. At that time, he defined a smart contract as a tool for formalizing and securing computer networks by combining protocols with user interfaces.Szabo discussed the potential use of smart contracts in various areas involving contractual agreements - such as credit systems, payment processing, and content rights management.In the cryptocurrency world, we can define a smart contract as an application or program that runs on a blockchain. Typically, they act as digital protocols enforced by a specific set of rules. These rules are predefined by computer code that is replicated and executed by all network nodes.Blockchain smart contracts support the creation of trusted agreements. This means that two parties can make commitments through the blockchain without needing to know or trust each other. You can be sure that if the conditions are not met, the contract will not be executed. Other than that, the use of smart contracts can remove the need for intermediaries, reducing operational costs significantly.Although the Bitcoin protocol has supported smart contracts for years, they were popularized by Ethereum founder and co-founder Vitalik Buterin. However, it is worth noting that each blockchain can represent a different approach to smart contract implementation.This article focuses on smart contracts running on the Ethereum Virtual Machine (EVM), an integral part of the Ethereum blockchain.How do you work?Simply put, a smart contract is a deterministic program. It performs a specific task if certain conditions are met. Therefore, smart contract systems usually follow the "if...then..." statement. But despite the popular terminology, smart contracts are not legal contracts, nor are they smart. They are just a piece of code running on a distributed system (blockchain).Basically, an Ethereum smart contract consists of a contract code and two public keys. The first public key is the public key provided by the contract creator. The other key represents the contract itself and acts as a digital identifier unique to each smart contract.Smart contracts are deployed through blockchain transactions and can only be activated when called by an EOA (or other smart contracts). However, the first trigger is always caused by the EOA (user).main featureEthereum smart contracts usually have the following characteristics:Decentralized. Smart contracts are replicated and distributed across all nodes in the Ethereum network. This is one of the main differences from other centralized server-based solutions.deterministic. Smart contracts will only do what they are designed to do as long as the requirements are met. Also, no matter who runs them, the results will always be the same.autonomy. Smart contracts can automate various tasks and work like automated programs. However, in most cases, if the smart contract is not triggered, it stays "sleep" and does nothing.Immutable. Once a smart contract is deployed, it cannot be modified. They can only be "removed" if specific functionality has been implemented beforehand. Therefore, we can say that smart contracts can provide tamper-proof code.customizable. Smart contracts can be coded in a number of different ways before deployment. As such, they can be used to build many types of decentralized applications (DApps). This is because Ethereum is a complete Turing blockchain.Trustless. Two or more parties can interact via smart contracts without knowing or trusting each other. In addition, blockchain technology ensures that data is accurate.Transparent. Since smart contracts are based on public blockchains, their source code is not only immutable but also visible to everyone.Can I modify or delete smart contracts?It is not possible to add new functionality to an Ethereum smart contract after deployment. However, if its creator built a function called SELF-DESTRUCT in the code, he could "delete" the smart contract in the future - and replace it with a new one. However, if the function was not in the code before, it cannot be removed.In particular, so-called updatable smart contracts allow developers greater flexibility in terms of contract immutability. There are many ways to create scalable smart contracts with varying levels of complexity.For a simplified example, let's assume a smart contract is divided into several smaller contracts. Some of them are designed to be immutable, while others have deletes enabled. This means that parts of the code (smart contracts) can be removed and replaced, while other functions remain.Benefits and Use CasesAs programmable code, smart contracts are highly customizable and can be designed in many different ways, providing many types of services and solutions.As decentralized and self-executing programs, smart contracts can provide greater transparency and lower operating costs. Depending on how they are implemented, they can also increase efficiency and reduce bureaucracy.Smart contracts are especially useful in situations where funds are transferred or exchanged between two or more parties.In other words, smart contracts can be designed for various use cases. Some examples include token asset creation, voting systems, crypto wallets, decentralized exchanges, games, and mobile applications. They can also be deployed alongside other blockchain solutions addressing healthcare, philanthropy, supply chain, governance, and decentralized finance (DeFi).ERC-20Tokens issued on the Ethereum blockchain follow a standard called ERC-20. This standard describes the core functionality of all Ethereum-based tokens. As such, these digital assets are often referred to as ERC-20 tokens and represent a significant portion of existing cryptocurrencies.Many blockchain companies and startups use smart contracts to issue their digital tokens on the Ethereum network. After the launch, most of these companies distributed their ERC-20 tokens through an initial coin offering (ICO) campaign. In most cases, the use of smart contracts enabled the exchange of funds, and distribution of tokens, in a trustless and efficient way.limitationSmart contracts consist of computer code written by humans. This presents many risks as the code is exposed to bugs and bugs. Ideally, they should be written and deployed by experienced programmers, especially when dealing with sensitive information or large amounts of money.Having said that, some believe that a centralized system can provide most of the solutions and functions provided by smart contracts. The main difference is that smart contracts run on a distributed P2P network rather than on a central server. And because they are based on blockchain systems, they tend to be immutable or hard to change.Immutable can be great in some cases, but terrible in others. For example, when a decentralized autonomous organization (DAO) called "The DAO" was hacked in 2016, millions of ether (ETH) were stolen due to errors in its smart contract code.Because their smart contracts are immutable, developers cannot fix the code. This eventually led to a hard fork that resulted in a second Ethereum chain. In short, a chain "reset" the hack and returned the funds to the rightful owner (which is part of the current Ethereum blockchain). Another chain decided not to participate in the hack, saying that what happened on the blockchain should never change (this chain is now called Ethereum Classic).It’s worth noting that the issue did not originate with the Ethereum blockchain. Instead, it was caused by a flawed smart contract implementation.Another limitation of smart contracts is related to their uncertain legal status. Not only because it is a grey area in most countries, but also because smart contracts do not fit into the current legal framework.For example, many contracts require both parties to be properly identified and at least 18 years old. The pseudonyms provided by blockchain technology coupled with the lack of intermediaries could jeopardize these requirements. There are solutions to this, but the legal enforceability of smart contracts is a real challenge — especially when it comes to borderless distributed networks.criticizeSome blockchain enthusiasts see smart contracts as a solution that will soon replace and automate much of our business and bureaucratic systems. While this is a possible reality, it may be far from the norm.Smart contracts are certainly an interesting technology. However, since they are distributed, deterministic, transparent, and to some extent immutable, they may be less attractive in some cases.The criticism is largely based on the fact that smart contracts are not a suitable solution to many practical problems. In fact, some organizations are better off using traditional server-based alternatives.Compared to smart contracts, centralized servers are easier and less expensive to maintain, and tend to be more efficient in terms of speed and communication (interoperability) across the network.final thoughtsThere is no doubt that smart contracts have had a major impact on the cryptocurrency world, and they have undoubtedly revolutionized the blockchain space. While end-users may not interact directly with smart contracts, in the future these may support a wide range of applications from financial services to supply chain management.In conclusion, smart contracts and blockchain have the potential to disrupt almost every aspect of our society. But only time will tell if these breakthrough technologies can successfully overcome the many barriers to mass adoption.

More details

Published - Mon, 11 Apr 2022

Search
Popular categories
Latest blogs
How does a blockchain work?
How does a blockchain work?
 The blockchain is a database that allows you to add information but not edit it, therefore making it the go-to place for accurate information. In the digital world, we live in, it is very easy to manipulate information. In fact, it's getting harder and harder to know what's real and who to trust. This is where blockchain comes into play.A blockchain is essentially a database that allows information to be recorded in it, shared, and made available to everyone, but makes the information uneditable. This means that once the information is on the blockchain, it cannot be changed, misinterpreted, or deleted. In this way, the blockchain acts as a source of truth.To understand how blockchain works, let's assume you're moving and start by packing your kitchen utensils.How blockchain works in different industries:health care. Medical records are added to the blockchain so doctors can view accurate health records in real time.music industry. Songwriters put their creations on the blockchain, so true ownership of the work is recorded and other artists cannot copy their work.aerospace industry. NASA uses blockchain to keep its space shuttle information accurate and protect its information from hackers.As you can see, blockchain technology is spreading beyond cryptocurrencies and helping us create a safer, more transparent and more secure world. It is used where the risk is high and the information should not be manipulated. This is what makes blockchain powerful.

Thu, 28 Apr 2022

How do I buy cryptocurrencies?
How do I buy cryptocurrencies?
 “Cryptocurrency exchanges” are platforms that allow you to buy, sell and trade cryptocurrencies. The most common way to buy cryptocurrencies is through online platforms that allow you to buy, sell, and trade cryptocurrencies, known as "cryptocurrency exchanges" or simply "exchanges." The exchange usually behaves like your online broker.Canadian exchanges like ours at Netcoins allow you to deposit Canadian dollars directly into your Netcoins account via Interac electronic transfer, online bill pay, or wire transfer.That's it! It's that simple, fast, and painless. While this is great, it's still important to be aware of the other options available to you when buying cryptocurrencies.Bitcoin ATM.A Bitcoin ATM is similar to a regular ATM, but it does not require a PIN. Instead, it uses a QR code from your cryptocurrency wallet app. This code requires the ATM to send bitcoins directly to your wallet. Of course, the first step is to deposit cash into a Bitcoin ATM.Buy Bitcoin in person.Some people prefer human interaction. Because of this, some Bitcoin companies offer brick-and-mortar stores where you will meet someone from their team who will walk you through the buying process from start to finish.Buy Bitcoin in person.Some people prefer human interaction. Because of this, some Bitcoin companies offer brick-and-mortar stores where you will meet someone from their team who will walk you through the buying process from start to finish.Buy bitcoin privately.People who value privacy can meet friends they trust to buy bitcoin from them. LocalBitcoins.com also offers a marketplace where you can set your own bitcoin buying and selling prices and meet in person to complete your purchase.Whatever you like, make sure you do your research and know what you're investing in. If you are meeting with strangers in person, it is recommended that you meet at a police station or bank with guards and cameras (for security reasons).

Thu, 28 Apr 2022

What are cryptocurrencies?
What are cryptocurrencies?
 Cryptocurrencies are digital money not owned or controlled by banks or governments.Shells, livestock, wine, cigarettes, and gold have all played the role of money (and "means of exchange") throughout the history of money. Today, this role is replaced by banknotes and coins issued, controlled, and managed by governments and banks. This new type of currency is called fiat currency.So what is cryptocurrency?Invented in 2008, cryptocurrencies are a relatively new addition to the monetary system. It is a digital currency and therefore does not exist in physical form (no coins or banknotes!). Instead, it exists only online. Unlike fiat currency, it is a currency that is not controlled by a central bank or government.Fiat currency, on the other hand, was invented in 1971, marking the first time in history that money was controlled by a central bank or government (or “central authority”). Before that, money was created and managed by the market and the people themselves. With cryptocurrencies, we come back to who decides what should be currency and how it should be governed.The problem with currency control is that the central authority can make all decisions about money and print as much money as possible to benefit them, regardless of how it affects the rest of society.Cryptocurrencies, on the other hand, are like democracy. They are run by a group of people who believe in the same philosophy: fair money and fair access to money. Then, a group of developers is working to create an online decentralized system that will allow cryptocurrencies to be sent back and forth (called a "peer-to-peer network"). This allows people to send cryptocurrency to each other without going through banks or governments that charge fees or interest rates or delay people's access to funds.Fiat currencies and cryptocurrencies share some similarities:(1) They are used to buy and sell goods and services. For example, you can pay for an Air Canada flight with Bitcoin.(2) One cryptocurrency can be exchanged for another cryptocurrency. You can exchange bitcoin for ether just like you can exchange Canadian dollars for euros.(3) Cryptocurrencies can be used as a form of investment. You can cash out and profit when the price goes up.Cryptocurrencies are considered the currency of the people and the next step in the evolution of money. As our world becomes more and more digital, the role of cryptocurrencies will only grow.

Thu, 28 Apr 2022

All blogs