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What is Etherscan and how is it used?

Created by - shera academy

What is Etherscan and how is it used?

Etherscan is a blockchain explorer for the Ethereum network. The website allows you to browse transactions, blocks, wallet addresses, smart contracts, and other on-chain data. It is one of the most popular Ethereum blockchain explorers and it is free to use.Using Etherscan can help you understand exactly how you interact with blockchains, other wallets, and DApps. This knowledge can also help you stay safe and spot suspicious behavior.To use Etherscan, you need a wallet address, transaction ID (TXID), contract address, or other identifiers that can be pasted into the search box. The information displayed depends on what you're viewing, but most include the relevant transaction, address, timestamp, and amount.You can also interact directly with smart contracts to make transactions, check gas fees and search for airdrops via Etherscan.IntroductionLearning how to navigate the blockchain is very beneficial if you are using Ethereum for more than HODLing or sending some transactions. Etherscan is one of the most popular options, so it's a great place to start learning the basics. You can use most of the features without connecting your wallet or even opening an account. Let's take a look at the most common ways to use Etherscan and what you can do with the information you find.What is Etherscan?Etherscan is a block explorer that allows you to view public data about transactions, smart contracts, addresses, and more on the Ethereum blockchain. All interactions on Ethereum are public and Etherscan allows you to search them like a search engine. You can use the transaction hash (transaction ID) to verify all relevant activities, including tokens, smart contracts, and wallet addresses.You don't have to sign up for Etherscan, but you can create an account for other features. For example, you can set up alerts to be notified of incoming transactions, access developer tools, and create data feeds.Etherscan does not provide you with an Ethereum wallet to use or store any of your private keys. You also cannot use it for transactions. It only acts as a source of blockchain information and a database for smart contracts. To trade or store cryptocurrencies, you need a crypto wallet such as Trust Wallet, MetaMask, Math Wallet or Binance Chain Wallet.Why use Etherscan?Etherscan is one of the most trusted and popular block explorers for Ethereum. However, it is more important to understand why a block explorer like Etherscan should be used to verify on-chain information. Learning more about how to interact with the blockchain can help you better understand what's going on with DApps and transactions. This knowledge can also protect you and help you spot suspicious blockchain activity.For example, whale alerts will notify you when a large amount of cryptocurrency has been transferred to an exchange. While not always the case, this information could indicate a major sell-off. You can also see how the creators of the project spend their project's tokens. This can help you spot potential scams or places where developers abandon their projects and sell their coins.How to Search Transactions and Wallets on EtherscanAn essential function of Etherscan is to track transactions. Knowing how to track your cryptocurrency is the key to unlocking all other information on the blockchain. For example, let's say you send 0.025 Ether (ETH) from your wallet to the following public address: 0x480bbcb368197d44c6f54a738e59c33eff004b6a.You also paid a transaction fee of 0.001559212674537 ETH. After the transaction is complete, your wallet will display this TXID:0x80a3cc0f344651b3de745b2f1efbe8d35d4f348e95b345c8a840ebf955414fa5Suppose you want to check the confirmation count of a transaction to see if it was sent successfully.1. Go to the Etherscan home page and look for the search box at the top of the page.2. Next, copy the transaction ID (TXID), paste it into the search box, and press the search icon.3. Now you can see all the details related to your specific transaction:4. You can also click the [Click to view more] button to view more detailed information, but we first display it by default:Transaction HashThe string of numbers and letters (TXID) associated with your particular transaction.StatusWhether your transaction has failed, is in progress, or was successful.BlockThe block number your transaction was included in. You can also see how many times your transaction has been confirmed. This is the number of blocks added to the chain after your transaction's block.TimestampThe timestamp of the block your transaction was added to.FromThe wallet address that made the transaction..ToThe receiving address or smart contract.ValueThe amount sent in the transaction.Transaction FeeThe fee paid for making the transaction.Gas PriceThe cost per unit of gas for the transaction.TXN TypeInformation on whether a transaction was conducted under the old legacy gas system (1) or the new EIP-1559 block fee system (2).From the data above, it is easy to see that the transaction was successful and received enough confirmation. You can also check the status of your transaction by viewing the receiving wallet.To do this, you need to go back to the search bar and paste the receiving wallet address:0x480bbcb368197d44c6f54a738e59c33eff004b6aAt the bottom of the page, we can see a list of all transactions associated with the address:How to search for smart contracts on EtherscanIf you frequently interact with smart contracts in DApps, it's a good idea to learn how to find them on Etherscan. This way you can verify that you are sending money to the correct contract.If you need to add a new token to your wallet, you will need to find the token's contract address. The smart contract address contains the logic of the token, such as B. how to perform the token transfer, among other behaviors.To find the token address, you can go to CoinMarketCap, CoinGecko or the project's official website. You can also check out https://etherscan.io/tokens.Always make sure to add the correct token address by verifying with the above website. Let's take a look at the Uniswap ERC-20 token on Ethereum:0x1f9840a85d5af5bf1d1762f925bdaddc4201f9841. Copy and paste the smart contract address into the search box.2. You will now see contract balance details and other general information about the Uniswap (UNI) token contract.3. Below we have more options to see, including transactions, comments section, and the smart contract itself. Click next to [Contract] to see options for interacting with and reading Uniswap rules.4. The [Read Contract] tab displays general contract information. For example, you can use it to query the account balance of specific addresses or wallets that have access to the tokens in your wallet.If you click [Write Contract], you can directly interact with the contract. This is useful when DeFi platforms and DApps are unavailable, possibly due to technical issues or website downtime. In some cases, you can try to interact with smart contracts without using the project API.By clicking [Connect to Web3], you can connect to crypto wallets such as MetaMask or Binance Chain wallet and interact with the contract.The easiest operation here is to transfer coins. You can use [transferFrom] to transfer tokens from an address you have access to to another address.Using [transfer], you can transfer tokens allocated to contracts from a connected wallet. The following transaction will send 1 UNI from our connected wallet to the inserted wallet receiving address. You must also make sure to enter the correct number of decimals for the amount you wish to send.Most users will never need to use these features. However, if you need to access funds stored in smart contracts, it is still useful to know their location.How to Check Gas Prices on EtherscanGas prices are part of Ethereum transaction fees. These fees vary based on the block that contains your transaction. Each block has a fixed fee that varies based on network traffic. The gas tracker on Etherscan will show you the price and time difference at different gas prices. This is a useful tool to roughly predict how congested the network will be and how much it might cost to send a simple transfer or interact with a more complex smart contract.How to Find Airdrops on EtherscanEtherscan also acts as a database for ongoing airdrops on the Ethereum network. Each airdrop has its own entry rules, which you can see in the [Details] column. You can find a list of airdrops at https://etherscan.io/airdrops.final thoughtsEtherscan is free and easy to use, and it's a great tool when you need more information than your wallet or exchange can display. You can quickly learn the most basic functions in a short time. Etherscan is also the basis for other block explorers like BscScan, allowing your skills to be easily transferable. Etherscan is a great place to start, whether you want to confirm transaction status or check out your favorite DApp's smart contracts.

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Published - Sun, 13 Mar 2022

Introduction to Binance Smart Chain (BSC)

Created by - shera academy

Introduction to Binance Smart Chain (BSC)

You may have heard of Binance Chain, the birthplace of the BNB currency. It is optimized for super fast transactions. To achieve this, it has to make certain tradeoffs - one of which is that it is not as flexible as other blockchains from a programmability perspective.Well, Binance Smart Chain will change that, a new blockchain with a mature environment for developing robust decentralized applications. It is designed for cross-chain compatibility with Binance Chain to ensure users the best of both worlds.IntroductionBinance Chain was launched by Binance in April 2019. Its main focus is to facilitate fast, decentralized (or non-custodial) transactions. Perhaps unsurprisingly, the largest decentralized application (or DApp) on it is Binance DEX, one of the friendliest decentralized exchanges out there. You can use it through the web interface on binance.org or through its native integration with Trust Wallet.However, due to the inherent limitations of the blockchain system, the chain does not have much flexibility - smart contracts in a system optimized for fast transactions can severely overload the network. Do you remember CryptoKitties? At the peak of its popularity, it destroyed the Ethereum blockchain.Scalability remains one of the biggest obstacles to blockchain development. This is where Binance Smart Chain comes in.What is Binance Smart Chain?Binance Smart Chain (BSC) is best described as a blockchain that runs in parallel with Binance Chain. Unlike Binance Chain, BSC offers smart contract functionality and compatibility with the Ethereum Virtual Machine (EVM). The design goal here is to keep Binance Chain's high throughput intact while introducing smart contracts into its ecosystem.Essentially, two blockchains work side by side. Notably, BSC is not a so-called Layer 2 or off-chain scalability solution. It is an independent blockchain that can function even if Binance Chain goes offline. However, from a design perspective, both chains show strong similarities.Due to its compatibility with EVM, the launch of BSC supports a wealth of Ethereum tools and DApps. In theory, this allows developers to easily port their projects from Ethereum. For users, this means that applications such as MetaMask can be easily configured to work with BSC. Seriously - it's just a matter of tweaking some settings. Check out Using MetaMask with Binance Smart Chain to get started.How does Binance Smart Chain work?consensusBinance Smart Chain achieves a block time of about 3 seconds using the proof-of-stake consensus algorithm. In particular, using something called Proof of Stake (or PoSA), participants stake BNB as validators. If they propose a valid block, they get transaction fees from the transactions in it.Note that, unlike many protocols, there is no block subsidy for newly minted BNB as BNB is non-inflationary. Conversely, the supply of BNB decreases over time as the Binance team conducts regular token burns.Cross-chain compatibilityBinance Smart Chain is designed as an independent but complementary system to the existing Binance Chain. It uses a dual-chain architecture where users can seamlessly transfer assets from one blockchain to another. In this way, one can enjoy fast transactions on Binance Chain while building powerful decentralized applications on BSC. Through this interoperability, users are exposed to a vast ecosystem that can cover a variety of use cases.Binance Chain’s BEP-2 and BEP-8 tokens can be exchanged for the new standard BEP-20 token introduced by Binance Smart Chain. Have you read the introduction to ERC-20 tokens? Then you already know the format of BEP-20. It uses the same functionality as its Ethereum counterpart.To move coins from one chain to another (i.e. BEP-2 to BEP-20 and vice versa), perhaps the easiest way is to use the Binance Chain wallet available in Chrome and Firefox. For instructions on how to do this, see Extending Your Wallet with Binance Chain.Decentralized Finance on Binance Smart ChainAs you probably know, many digital assets - such as BTC, LTC, ETH, EOS or XRP - already exist on Binance Chain as "Peggy Coins". These are tokens associated with assets on their native chain. For example, you might decide to lock 10 BTC on Binance Chain to get 10 BTCB. You can exchange your 10 BTCB for 10 BTC at any time, which means that the price of BTCB should be very similar to native BTC.In this way, you can effectively port these assets to Binance Chain. Interested in how to achieve something like this? Check out Tokenized Bitcoin on Ethereum explained.Due to the flexibility provided by Binance Smart Chain, assets from multiple different chains can be used in the growing DeFi space. For example, applications like PancakeSwap allow users to trustlessly exchange assets (similar to Uniswap), perform yield farming, and vote on proposals. Similar projects include BurgerSwap and BakerySwap (if you’re new to crypto, hello! We’re big fans of decentralized exchanges named after food).final thoughtsBinance Smart Chain greatly expands the capabilities of the original Binance Chain, incorporating a suite of cutting-edge protocols designed to bridge the gap between different blockchains. While still in its infancy, the promise of BNB staking and EVM compatibility makes the platform an ideal engine for developers to build robust decentralized applications.

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Published - Mon, 14 Mar 2022

What Is a Decentralized Exchange (DEX)?

Created by - shera academy

What Is a Decentralized Exchange (DEX)?

You may be familiar with cryptocurrency exchange exercises. Log in with your email address, create a strong password, verify your account and start trading cryptocurrencies.Decentralized exchanges are just that, minus the hassle of signing up. In most cases, there are no deposits or withdrawals of cryptocurrencies. Transactions take place directly between the wallets of the two users, with limited (if any!) input from third parties.Decentralized exchanges can be a bit difficult to understand, and they may not always have the assets you want. But as the technology and interest in it grows, they are likely to become an integral part of the cryptocurrency space.introduceSince the early days of Bitcoin, exchanges have played a vital role in bringing together buyers and sellers of cryptocurrencies. Without these forums attracting a global user base, we would be less liquid and unable to agree on the correct asset price.Traditionally, centralized players have dominated this space. However, with the rapid development of available technologies, more and more decentralized trading tools have emerged.In this article, we’ll dive into Decentralized Exchanges (DEXs), i.e. trading venues that do not require intermediaries.Definition of Decentralized ExchangeIn theory, any peer-to-peer exchange can constitute a decentralized exchange (see, for example, atomic swaps explained). But in this article, we are mainly interested in platforms that emulate the functionality of a centralized exchange. The main difference is that their backend lives on the blockchain. No one keeps your money, If anything, you don't have to trust exchanges as much as you do with centralized products.How Centralized Exchanges WorkOn a typical central exchange, you deposit funds - fiat currency (via bank transfer or credit/debit card) or cryptocurrency. When you deposit cryptocurrency, you relinquish control of it. Not from a usability standpoint, because you can still trade or withdraw it, but from a technology standpoint: you can't spend it on the blockchain.You do not hold the private key of your funds, which means when you withdraw, you are asking the exchange to sign the transaction on your behalf. When you trade, the transaction doesn't happen on-chain - instead, the exchange distributes funds to users in its own database.The entire workflow is very streamlined as the slow speed of the blockchain does not hinder transactions and everything is done within the system of a single entity. Cryptocurrencies are easier to buy and sell, and you have more tools at your disposal.This comes at the expense of independence: you have to trust the exchange with your money. As a result, you expose yourself to some counterparty risk. What if the team ran away with your hard-earned BTC? What if a hacker shuts down the system and withdraws the funds?For many users, this is an acceptable level of risk. They just stick to reputable exchanges with good track records and precautions to reduce data breaches.How Decentralized Exchanges WorkDEXs are similar in some ways to their centralized counterparts but notably different in others. First, let us point out that there are several different types of decentralized exchanges available to users. The common theme among them is that orders are executed on-chain (using smart contracts) and users never sacrifice custody of their funds.Some work has been done on cross-chain DEXs, but the most popular work revolves around assets on a single blockchain (like Ethereum or Binance Chain).On-chain order bookFor some decentralized exchanges, everything is done on-chain (we'll discuss hybrid approaches shortly). Every order (along with modifications and cancellations) is written to the blockchain. This is arguably the most transparent method, as you don't trust any third party to pass the commands to you, and there's no way to obfuscate them.Unfortunately, this is also the least practical. Since you require every node in the network to record orders permanently, you end up paying a fee. You have to wait for miners to add your message to the blockchain, which means the experience can also be cumbersome.There are claims that the front-end running this model is flawed. Front-running occurs in the market when insiders learn about a pending transaction and use that information to trade before the transaction is processed. As a result, leaders benefit from the information that the public does not know. Generally speaking, this is illegal.Of course, when everything is published on a global ledger, there is no progress in the traditional sense. However, another type of attack can be deployed: a miner sees the order before it is confirmed and makes sure to add its own order to the blockchain first.Examples of on-chain order book models are Stellar and Bitshares DEX.Off-chain order bookOff-chain order book DEXs are still decentralized in some ways, but there is no denying that they are more centralized than previous entries. Instead of sending every order to the blockchain, they are hosted somewhere.from where? depending on. You can have a centralized entity fully responsible for the order book. If the entity is malicious, it may deceive the market to some extent (for example by front-running or misrepresenting orders). However, you can still benefit from unmanaged reservations.The 0x protocol for ERC-20 and other tokens deployed on the Ethereum blockchain is a good example. Rather than acting as a single DEX, it provides a framework for parties called “relayers” to manage off-chain order books. Using 0x smart contracts and a few other tools, hosts can access combined liquidity pools and route orders between users. Transactions are not executed on-chain until both parties agree.From a usability standpoint, these methods outperform those that rely on an on-chain order book. They don't have the same limitations in terms of speed as they don't use blockchain very often. Still, transactions have to go through it, so off-chain order book models are still not as fast as centralized exchanges.Off-chain order book implementations include Binance DEX, IDEX, and EtherDelta.Automated Market Maker (AMM)Tired of reading the term "order book"? Great, because the automated market maker (AMM) model completely eliminates this idea. It doesn't need a maker or taker, just users, game theory, and some formulaic black magic.The specifics of AMMs depend on the implementation - typically they string together a series of smart contracts and offer clever incentives to ensure user participation. We won't describe these implementations in detail, but take a look at what is Uniswap and how does it work? An example of how the Uniswap DEX works.Currently available AMM-based DEXs are generally relatively user-friendly and integrate with wallets such as MetaMask or Trust Wallet. However, as with other forms of DEXs, on-chain transactions are required for transaction settlement to occur.Projects working on this include the aforementioned Uniswap and Kyber Network (using the Bancor protocol), both of which facilitate ERC-20 token trading.Advantages and disadvantages of DEXIn the previous sections, we have spoken extensively about some of the pros and cons of DEXs. Let's dig a little deeper.Advantages of DEXno KYCKYC/AML (Know Your Customer and Anti-Money Laundering) compliance is the norm for many exchanges. For regulatory reasons, individuals are often required to provide identification and proof of address.It's a privacy issue for some, an accessibility issue for others. What if you don't have valid documents on hand? What if the information is leaked in some way? Since DEXs are permissionless, no one will verify your identity. All you need is a cryptocurrency wallet.However, when the DEX is partially run by a central authority, there are some legal requirements. In some cases, the host must remain compliant when the order book is centralized.No counterparty riskThe main attraction of decentralized cryptocurrency exchanges is that they do not hold customer funds. So even a catastrophic breach like the 2014 Mt. Gox hack would not compromise users' funds or reveal sensitive personal information.unlisted tokensTokens not listed on centralized exchanges can still be freely traded on DEXs, subject to supply and demand.Disadvantages of DEXsUser-friendlinessIn reality, DEXs are not as user-friendly as traditional exchanges. The centralized platform provides real-time transactions independent of block time. For newbies unfamiliar with non-custodial cryptocurrency wallets, CEX offers a more forgiving experience. If you forget your password, you can easily reset it. However, if you lose your mnemonic phrase, your funds are irretrievably lost in cyberspace.Volume and LiquidityTrading volume on CEXs is still dwarfed by DEXs. Perhaps more importantly, CEXs also tend to have greater liquidity. Liquidity is a measure of how easy it is for you to buy or sell an asset at a reasonable price. In a highly liquid market, there is little price difference between buyers and sellers, which indicates that there is a lot of competition between buyers and sellers. In an illiquid market, you will find it harder to find someone willing to trade an asset at a reasonable price.DEXs are still a relatively niche market, so the crypto assets you want to trade are not always supply and demand. You may not be able to find the trading pair you want to use, and if you do, the asset may not be able to trade at a fair price.costDEX fees are not always higher, but they can be, especially when the network is congested or using on-chain order books.final thoughtsA number of decentralized exchanges have sprung up over the years, each building on previous attempts to simplify the user experience and build stronger trading venues. Ultimately, the idea seems highly aligned with the ethos of self-sovereignty: like cryptocurrencies, users don’t have to trust any third party.With the rise of DeFi, the use of Ethereum-based DEXs has exploded. If this momentum continues, we may see an increase in technological innovation across the industry.

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Published - Mon, 14 Mar 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.

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Published - Mon, 11 Apr 2022

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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

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