Today’s Global Financial infrastructure has a big communication problem. There are a lot of different currencies and a lot of different Payment Systems each one speaks a different language. So they have a hard time understanding each other which makes moving money slow and expensive and a lot Gets Lost in Translation. Stellar’s vision is to unite the world’s Financial infrastructure. So money can flow quickly and cheaply between Banks businesses and people
The Internet connected the world’s computer. So information could be shared globally. Stellar is doing the same for money to accomplish this vision and ensure integrity and neutrality Stellar is not a bank or a business instead. It’s a decentralized open network supported by a non-profit Foundation that handles every currency and speaks to every payment system in its native language. That means businesses can move money globally and seconds no matter what bank they use back home and people all over the world.
You Stellar to send money to family overseas to convert one currency to another or to make payments that are too small to cover fees traditionally charged by today’s institutions in the future Stellar hopes that you won’t have to use traditional infrastructure to get your money where you want it to go instead. You’ll just use stellar.
Let’s talk about another cryptocurrency and blockchain platform called Tron
As always, everything said here is my personal opinion and I am not a financial advisor.
Now, let’s get to the brief summary of what Tron is! Tron is a blockchain based decentralized aims to construct a worldwide free content entertainment system with the blockchain and distributed storage technology.
The protocol allows each user to freely publish store and own data and in the decentralized autonomous form decides the distribution subscription and push of contents and enables content creators by releasing circulating and dealing with digital assets. Thus forming a decentralized content.
Ecosystem Tron has established the singapore-based Tron Foundation a nonprofit organization that mainly engages in operating the Tron Network in the principles of openness fairness and transparency and supporting tron’s development team. The Tron Foundation is set up with the approval of the accounting and corporate regulatory Authority and under supervision and regulation of the company law of Singapore.
Trons official currency is Tronics. Tronics is the basic unit of accounts introns blockchain. The value of all other tokens are derived from the value of Tron Tronics is pre mind. So there’s no mining involved like in Bitcoin
Next we will discuss some good reasons Tron is a good investment. Justin son is the CEO of Tron with a great background. He founded payroll app, which already has 10 million users in 2017 Forbes listed him as 30 under 30 in Asia. He is the protégé of Jack ma who is the founder of the Alibaba group. Also, he is the former Chief representative in Great China of Ripple.
Overall Tron is another Block Chain technology platform similar to others. So do your own research before investing. Do you have any thoughts on Pros or cons of Tron? If so, please leave a comment down below if you like these types of videos, don’t forget to like.
EOS is aiming to become a decentralized operating system that can support industrial-scale decentralized applications.
That sounds pretty amazing knowing what we know about the scalability of public blockchains.
EOS claims that they’ll have the ability to conduct millions of transactions per second all without transaction fees. So how could they possibly offer this? They claimed to have solved the biggest problem in the blockchain space scalability in comparison to traditional payment channels.
Visa manages 1667 transactions per second while Bitcoin managers about seven. As for second the reason for this is that public blockchains, like Bitcoin currently require total consensus across notes. The office is solution to this is called delegated proof of steak or dpos to understand the following. You should probably have a good grasp on regular proof state check out our video at this annotation. If you need a refresher in typical proof of stake algorithms a block producer is chosen from a pool of stagers based on various selection algorithms that typically take into account the amount of token State or the amount of time the tokens have in state in the dpos system the block users are chosen instead by a vote.
Anyone that holds me US tokens can vote on who the block producer should be for each block 21 blocks are produced in each round of voting 20 or made by the top 20 producers voted for and the 21st is made by a random selection based on the number of votes other producers have received. So if there are two producers remaining after the top 20 or selected they each have a chance to produce the final block based on their final counts. This is a way to ensure that block producers are not always the same few people block producers are incentivized to act honestly because they can be voted out by the users on Any given cycle? So instead of competing with other nodes, they work together to validate transactions as quickly and efficiently as possible block producers are also required to be active in order to keep the chain moving any producer that has introduced a block in the last 24 hours is removed from voting consideration in this way instead of reaching consensus across every node in the network.
Like Bitcoin, it also uses a democratically selected pool of 21 validators to achieve consensus much faster this does of course come at the cost of some decentralization to take control of the EOS consensus mechanism. You would only need to gain full of more than 50% of the producers in this case that’s 11 notes on the Bitcoin Network. You need to gain control of millions and millions of dollars worth of mining power to successfully attack.
The network dpos is a key part of delivering the revolutionary speed and efficiency that EOS Promises by explaining how it works. We’ve already covered a major part of what makes us unique and effective but there’s much more to learn. So let’s delve into a bit of that. Now the office has a five percent yearly inflation rate and 1% of that is used to reward its block producers a producer share of that 1% is based on their number. Of blocks produced as well as voting reward. The other four percent is put into savings for a worker proposal fund that can be used to invest into anyone willing to improve the EOS infrastructure one huge and final difference between EOS and other debt platforms.
Like etherium is that EOS runs on an ownership model similar to an operating system the theory among the other hand can be thought of as renting out computation power in exchange for the transaction fees what this means is that anyone on the network is entitled to an amount of resources proportional to the number of tokens. They hold so the amount of tokens you home is effectively how the network you own and can use this in a sense remove transaction fees as you could always use the part of the network you own to process your transactions. It does however mean that there’s a barrier to entry to use the network effectively.
If you own very few coins. You have very little access to the network capabilities. It can be tough to use the blockchain as a hobbyist for casual user. If several tokens are required to interact with the chain. If you are someone that owns a higher number of points, you can use the network more efficiently, but you also have a larger amount of money invested. This means that you’re more exposed to any price swings of Acting the token. It also means that to use the chain to its full potential one has to have a higher level of purchasing power. He has has both interesting technology and a strong team behind them. They have every opportunity to do something special. Well, they’re mechanisms in philosophy certainly have potential holes all blockchains do it’s great to see drastically different systems working in the space and we’re excited to see what EOS is unique Vision brings to the table.
Travela.com is offering one last chance to get in on the ground floor of one of the world’s number one block chain based travel booking platforms.
We connect Travelers with one of the world’s largest selection of incredible places to stay with prices up to 40% cheaper than mainstream travel booking platforms. All booking options can be paid for using traditional payment options and popular crypto currencies such as Bitcoin, Etherium and ripple as well as AVA. Say the native cryptocurrency of travela.com with a team consisting of over 35 members. We have the right combination of experience startup Founders travel industry experts and blockchain Specialists. We’ve come a long way since launching in 2017 and our last round of fundraising and we’re just getting started here are some highlights of the progress. We’ve made since our last round of fundraising we’ve made significant improvements to our product. We’ve added to our list of payment options. Our growing list of Partnerships now includes online travel Giants Expedia Agoda and Viator a TripAdvisor company on top of our previous strategic partnership with booking.com travel a.com is partnered with the world’s biggest and best travel suppliers. We’ve also added our homes vertical We’re now offering flights from more than 600 Airlines globally our most recent partnership gives us access to over 400,000 experiences around the globe and More Travel verticals are on the way. We’ve released apps for Android and iOS. So now it’s even easier to get the best deals on travel bookings travelok-dot-com is now officially backed by Finance the world’s leading crypto currency exchange Co marketing activities and want
Login with Finance locking and connect means millions of Finance members are now directly exposed to traveler.com and with more upcoming Integrations. It will be easier than ever for finance members to use crypto currency to pay for bookings on travel.com more and more Travelers are taking advantage of the perks of booking travel with travelok.com our Innovative loyalty program offers up to 10% in discounts and givebacks on every booking and most importantly Italy Travelers are making bookings despite the pandemic and with minimum marketing spend we’ve seen phenomenal organic growth. We are expecting a massive Rebound in travel demand as covid-19 travel restrictions ease.
So what’s next that’s easy. We keep building. Our mission is to enhance the travel booking experience with blockchain technology. Now that the foundations of the travel.com platformer laid out. It’s time to supercharge growth of travelok.com. We do that by adding more human capital kick-starting Global Marketing efforts and leveraging the true power of blockchain supportive decentralization will be bringing on additional talent to expand our technology development.
Making the booking experience even better. We’re going to compliment our unpaid marketing efforts with paid ones to accelerate user growth. Lastly. We’re going to add cutting-edge decentralized business models to travel a.com Wild web 3.0 online travel agency with our adoption of Finance smart chain, and with direct support from Finance industry leading Engineers, we’re confident we can fully integrate these powerful features. Ultimately you’re supporting this funding round will allow us to attract new users. Others ramp up our Revenue growth to create bigger and better travelok.com. So join us and together. Let’s benefit from unleashing the power of blockchain Technology on the Travel industry.
What is Liquidity pools? How do they work and why do we even need them? It is centralized finance. Also, what are the differences between liquidity pools across different protocols such as Municipal balancer or Curve will be going through all of this in this video before we start if you’re new to Defi, you may want to watch my introduction to decentralize finance video first. Also, you may want to subscribe to this channel for more detail. Related content.
All right. So let’s talk about liquidity pools because it’s a pores in essence are pulls off tokens that are locked in a smart contract. There are used to facilitate trading by providing liquidity and are extensively used by some of the decentralized exchanges AKA, Texas. One of the first projects that introduced liquidity pools was Banker, but they became widely popularized by uniswap before we explain how liquidity pulls work under the hood. And what automated market-making is let’s try to understand where we even need them in the first place. If you’re familiar with any standard crypto exchanges, like coinbase or by nuns you may have seen that they’re trading is based on the order book.
This is also the way traditional stock exchanges such as New York Stock Exchange or NASDAQ work in this order book model buyers and sellers come together and place their orders buyers AKA bidders try to buy a certain asset for the lowest price possible. Whereas sellers try to sell the same assets for us high as possible for trays to happen both buyers and sellers. Have to converge on the prize this can happen by either a buyer bidding higher or a seller lowering their price. But what is there is no one willing to place their orders at a fair price level. What is there not enough coins that you want to buy. This is where market makers come to play.
In essence market makers are entities that facilitates trading by always willing to buy or sell a particular asset by doing that they provide liquidity. So the users can always trade and they don’t have to wait for another counterparty to show up. Okay, so why we can just reproduce something like this in this centralized Finance. The answer is we can it would be just really slow expensive. Pretty much always result in poor user experience. The main reason for this is the fact that the order book model relies heavily on having a market maker or multiple market makers willing to always make the market in a certain asset without market makers and exchange becomes instantly illiquid. It’s pretty much unusable for normal users on top of that market makers usually track the current price of an asset by constantly changing their prices, which
In a huge number of orders and Order cancellations that are being sent to an exchange. It cerium is a current throughput of around 12 to 15 transactions per second and the block time between 10 and 19 seconds is not really a viable option for an order Book Exchange on top of that every interaction with a smart contract cost. The gas fee. So market makers would go bankrupt by just updating their orders. How about the second layer scaling them some of the second layer scaling projects like Loop ring look promising, but even they are still dependent on market makers and they can face liquidity issues on top of that if a user wants to make only a single trait, they would have to move their fans in and out of the second layer which adds two extra steps to their process.
This is exactly why there was a needs to invent something new that can work. Well in the decentralized world and this is where liquidity pools come to play. Okay. So now that we understand why we need the liquidity pools in the centralized Finance. Let’s see how they actually work in Spacek form a single liquidity pool holds two tokens and each pool creates a new market for that particular pair of tokens.
Dy eat can be a good example Said popular liquidity pull on uni swap when the new poor is created. The first liquidity provider is the one that sets the initial price of the Assets in the pool. The liquidity provider is incentivised to supply an equal value of both tokens in the pool. If the initial price of the tokens in the pool diverges from the current global market price, it creates an instant Arbitrage. Petit that can result in Lost capital for the liquidity provider this concept of supplying tokens in a correct ratio Remains the Same for all the other recruit easy providers that are willing to add more funds to the pool later when liquidity is supplied to a pool the liquidity provider LP receive special tokens called LP tokens in proportion to how much liquidity they supplied to the pool.
On the trade is facilitated by the pool 0.3% C is proportionally distributed amongst all the lp token holders. If the liquidity provider wants to get their underlying liquidity back plus any activities, they must burn their LP tokens each token swap that illiquidity pull facilitates results in a price adjustment according to a deterministic pricing algorithm.
This mechanism is also called an automated Market maker amm and Equity pools across different protocols may use a slightly different algorithm. Basically quiddity pools such as those used by unique swap use a constant product Market maker algorithm that makes sure that the product of the quantities of the to supply tokens always Remains the Same on top of that because of the algorithm Cool can always provide liquidity no matter how large a trade is the main reason for this is that the algorithm asymptotically increases the price of the token as the desired quantity increases the math behind the constant product Market maker is pretty interesting. But to make sure this video is not too long. I’ll save it for another time. The main takeaway here is that the ratio of the tokens in the pool dictates the price? Sighs so if someone lets Say by seized from a diet pool, they reduce the supply of either and add the supply of dye which results in an increase in the price of eith and a decrease in the price of die how much the price moves depends on the size of the trade in proportion to the size of the pool. The bigger the pool is in comparison to a trade the lesser the price impact.
AKA sleep Edge occurs. So large pools can accommodate bigger trades without moving the price too much because larger liquidity pools create less slippage and result in a better trading experience some protocols like balancer started incentive izing liquidity providers with extra tokens for supplying liquidity to certain pools. This process is called liquidity mining. And we talked about it in our yield farming video the concepts behind liquidity pools and automated market-making are quite simple yet extremely powerful as we don’t have to have a centralized order book anymore and we don’t have to rely on external market makers to constantly keep providing liquidity to an exchange.
The liquidity pools that we just described are used by uni Swap and they are the most basic forms of liquidity pools other projects iterated on this concept and came up with a few interesting ideas care. For example realized that the automated market-making mechanism behind Union. Schwab doesn’t work very well for us assets. That should have a very similar price such a stable coins or different of the same coin like WETH or SETH. curveballs by implementing a slightly different algorithm are able to offer lower fees and lower slippage when exchanging these tokens.
The other idea for different liquidity pools came from balancer that realize that we don’t have to limit ourselves to having only two Assets in a pool and in fact balancer allows for as many as Eight tokens in a Eagle liquidity pool and of course like with everything in this side, we have to remember about potential risks besides our standard Desai risks, like smart contract bugs. Admin keys and systemic risks, we have to add two new ones in permanent loss and the liquidity pull hacks more on this in the next videos.
Hi, I’m Nate Martin from 99 Bitcoins.com and welcome to crypto whiteboard Tuesday where we take complex cryptocurrency topics break them down and translate them into plain English before we begin don’t forget to subscribe to the channel and click that Bell. So you will immediately get notified when a new video comes out.
Today’s topic is stablecoins most cryptocurrencies were meant to serve as a medium of exchange and not just a store of value. The problem is that due to their relatively small market cap even pillar crypto currencies like Bitcoin tend to experience wide fluctuations in price. Usually the smaller a market cap an asset has the more volatile its price will be imagine throwing a rock into a small pond now take the same Rock and throw it into the ocean. Clearly The Rock will have a much more of an effect on the pot then on the ocean in the same manner. The crypto currency market cap is a small pond for now and is more affected by every day buy and sell orders then say for example, the US dollar this creates a major issue since You can’t enjoy the benefits of cryptocurrencies which include the decentralisation of money and a free-for-all payment system without the value of volatility that accompanies it.
Imagine how hard it is to use Bitcoin or any other cryptocurrency for day-to-day transactions and trading purposes when one day is worth X and the next day it’s worth half that just think what it feels like to be the guy who bought two pizzas for 10,000 Bitcoins eight years ago. That’s exactly where stable coins come in. Simply put stable coins are an attempt to create a currency that isn’t volatile a stable coins value is pegged to a real-world currency also known as a fiat currency, for example, the stablecoin known as tether or USDT is worth one US dollar and is expected to maintain this Peg no matter what stable coins allow for the convenience of cryptocurrency, which means fast Selman and fewer regulatory hurdles along with the stability of Fiat currencies, like most coins the most obvious use case would be to use them as a medium of exchange for Day-to-day purchases but since these coins aren’t very popular at the moment.
No one really accepts them as a payment method. So the main usage of stable coins today is actually on crypto currency exchanges using stable coins Traders can trade volatile cryptocurrencies first stable cryptocurrencies when they want to lower their risk, for example, if I’m invested in Bitcoin, and I don’t want to risk the price of Bitcoin falling against the US dollar. I can just exchange my Bitcoins for USD tea and retain my dollar value once I
To get back into the game and hold Bitcoins. I can just exchange my USD T back to BTC. This method is extremely popular with crypto only exchanges that don’t Supply their users with the option to exchange Bitcoin for Fiat currencies due to regulation another great advantage of stable coins is that you can move funds between exchanges relatively quickly since crypto transactions are faster and cheaper than Fiat transactions the option for such a fast settlement between exchanges makes arbitraging more convenient and close. Has the price gaps that you usually see between Bitcoin exchanges. So for now stable coins are more of a utility coin for Traders than an actual medium of exchange. But how are they made possible what keeps their price from the volatility that other cryptocurrencies experienced? Well, there are several ways a company can try and maintain its table coins Peg to a fiat currency. The first way to maintain a peg is by creating trust that the coin is actually worth what it is pegged to for example, if the market doesn’t believe that 1 USD
Is really worth $1 people will immediately dump all of their us DT and the price will crash in order to maintain this trust the company backs his coins with some sort of asset. This collateral is basically proof that the company is good for its word and that is coins should actually be worth the pegged amount for example in tethers case each u.s. DT is said to be backed by an actual US dollar that tether holds as collateral a different example for collateral is the DGX token that is said to be backed by A gold another version of a collateralized stable coin is one that is backed by one or more cryptocurrencies. This form of collateral is much easier to audit since a company’s balance can be viewed on the blockchain the second way to maintain a peg is by manipulating the coin Supply on the market also known as an algorithmic Peg an algorithmic Peg means the company writes a set of rules and also known as a smart contract that increases or decreases the amount of a stable coin in circulation, depending on the coins price. Let me
Flame imagine we have a stable coin that is pegged to the u.s. Dollar through an algorithmic. Act assuming a lot of people were to start buying the coin its price would rise and the peg will be broken to prevent this from happening new coins are issued this increase in Supply alleviates the price pressure created by the demand and maintains the coins value. If on the other hand many people start selling the coin coins are removed from the overall Supply in order to hold the price tag to one US dollar to be clear algorithmically Peg stablecoins. Don’t hold any assets as collateral the smart contract. That manages the coin acts as a central bank it tries to manipulate the price back to the peg by changing the money supply.
There are pros and cons for each pegging method Fiat collateralized pegs transmit. The highest degree of certainty to stable coin holders that the coin is indeed worth the asset. It is backed by however Fiat collateralized pegs have some major cons for one from the company standpoint. The acid is frozen and can’t be used for anything else. Also. There’s always the risk of embezzlement.
The closing of the company’s bank account which can ruin the trust in the stable coin. Another issue with Fiat collateralized stable coins is that it’s hard to actually prove the company owns enough of the asset to relieve back the amount of coins in circulation tether for example has suffered severe criticism and audit request from Skeptics claim in the company doesn’t have enough collateral to back the USDT in circulation crypto collateralized coins on the other hand may have the benefit of viewing the collateral on the blockchain but the collateral itself is extremely volatile. And that’s why a premium is needed in many cases that company will hold a hundred and fifty percent or even more of the collateral needed to make up for possible drops in the crypto currency prices algorithmic taking benefits from the fact that the company doesn’t need to hold any asset on hand. However, many will argue that algorithmic pecking Theory doesn’t really work in real life since manipulating the money supply isn’t a guarantee the peg will hold with all of the complexities and maintaining a stable coins Peg.
You might be wondering what’s the incentive to create able to win in the first place. What’s the business model? Well for each company, there’s a different incentive. Some companies can charge a fee for trading their coin other companies use their stable coin as a marketing channel to raise awareness to the company and other services it offers OB Gemini coinbase and circle our exchanges that have created their own stable coins in order to attract more users to their trading platforms and allow easier transition of funds within and between exchanges. Let’s take a moment to go over some examples of the more popular stable coins in use today. Today USDT or USD tether, which I’ve already mentioned is a Fiat collateralized stable coin that is pegged to the u.s. Dollar. The coin was created by the company tether and has remained relatively stable since its introduction in 2015
TUSD not to be confused with USDT stands for True USD and is a relatively new Fiat collateralized stable coin that attempts to address the criticism directed at tether collateral US dollars are held in the bank accounts of multiple trust companies. These bank accounts are published every day and are subject to monthly audits.
USDC which stands for USD coin is a Fiat collateralized stable coin issued by Circle and coinbase and finally Dai is a stable coin created. By maker doll that is crypto collateralized.
There’s a lot of criticism going on about the creation of stable coins. The most common one is related to the inability of actually maintaining the peg in the long run. This could be due to any one of the reasons I’ve mentioned before on top of that a quick look at history tells us that all pegged currencies are doomed to fail due to the cost of maintaining them, especially when that Peg comes under attack some well known examples where pegs were broken are the Swiss franc pegged to the euro in 2015. The US dollar in 2005 the Thai baht pegged to the u.s. Dollar in 1997 and the most famous of them all the gold standard pegging the US dollar to gold in 1971.
But the bigger question here is the issue of governance stable coins are considered by many to be centralized due to the fact that there is a company behind them that maintains the peg whether it be algorithmic or collateralized. Therefore stable coins aren’t really cryptocurrencies in the sense that they aren’t decentralized another issue is that the coins seem to be providing a solution to something that is just a growing pain and not a constant problem. Once cryptocurrencies achieve a higher market cap, their volatility will reduce dramatically and there will be no real use for stable coins stable coins are trying to get the best of both worlds the stability of an established currency with a large market and the flexibility of a decentralized free-for-all cryptocurrency. The problem is that they also get the worst of Both Worlds a centralized coin with a sort of Central Bank controlling it and the question.
Nation will Regulators allow companies to create an asset that mimics legal tender without any oversight one example for such an issue is basis and algorithmically Peg stable coin that raised over a hundred and thirty million dollars for its project just to shut down due to regulatory issues down too long ago. It seems like stable coins are some sort of a temporary utility for exchanges allowing Traders a Haven out of volatility without needing to supply them with a regulated Fiat option in the long run. It’s hard to be sure how or whether these coins will have a place in. The crypto ecosystem especially with so many question marks surrounding them. Well, that’s it for today’s episode of crypto whiteboard.
Cardano is without a doubt one of the most interesting cryptocurrency projects in the market today.
Bitcoin gave us decentralized payments, Etherium gave us smart contracts and cardano aims to improve upon the cryptocurrencies that came before it. Here’s how this is your first time here and you want to learn all about cryptocurrency start now by subscribing and clicking on the belt. So you don’t miss anything.
Question, is it possible to create the centralized money a digital asset that you can send and receive that is scarce and tradable without any third party involved Satoshi Nakamoto answered these questions when he created bitcoin, we finally had a decentralized monetary system, which can transfer money from one person to another however, there was a problem with Bitcoin which is a problem with all first generation blockchains. They only allowed for Oh, Terry transactions. There was no way to add conditions to those transactions. These conditions would need extremely complicated programming. Something was required to make the process more seamless. That’s where the second generation comes in. It brought a programming language to the blockchain and suddenly money was programmable and smart contracts were born smart contracts help you exchange money properly shares or anything of value in a transparent.
And concert for you way while avoiding the services of a metal man metallic glitter ins ethereum is the clear standout of this generation, etherium showed the world how blockchain can evolved from simple payment system to something far more powerful etherium was created with the very serious purpose of revolutionising the financial system with smart contract technology. However, this generation had its own issues as it didn’t have a good response to skill ability. T the first decentralized application to go viral and capture the imagination of the etherium network participants was the collectible token known as crypto kitties during the bull market of 2017 crypto kitties caught fire with more than two million dollars worth of daily volume traded at the height of the kitty Mania at that point crypto kitties were responsible for 12% of all, aetherium transactions and single-handedly managed to put the entire.
Serum Network to a screeching halt further highlighting the scalability bottleneck of current platforms Additionally the governance system of these block cheese. We’re not really that well thought out a good example being the etherium and etherium classic split followed by Bitcoin and Bitcoin cash and most recently the controversial hash War induced Bitcoin cash and Bitcoin SV hard Fork is a classic example of bad governments this This is where the third generation comes in by combining the positive elements from the first two generations of blockchain what came out as a result was cardano the three elements that car Donna wanted to solve or scalability interoperability and sustainability what really sets cardano apart from the competition is the process by which it is being developed with more than 2,000 cryptocurrencies in existence and new ones popping up all the time. It’s hard to stay.
Now but cardano has many advantages over rival coins. So many that it appears destined to be one of the most dominant cryptocurrencies over the long term. You might be surprised to know that the brains behind card Otto is one of the cofounders of Etherium– Charles hoskinson. The initial design brief was can you build a Japanese version of aetherium, we realized that we could create something that was an intersection of Congress computation in compliance. You can use it on a cell phone. It’s very natural and very easy, and it’s actually a better. Then somebody would encounter with PayPal or credit card. We wanted to iterate the vole the etherium model as well as explore adding new cryptographic techniques. What really makes cardano remarkable is the sheer amount of care that goes into its upkeep. There are three organizations which work full-time to develop and take care of Cordon of the cardano foundation is a not-for-profit regulated entity. Their main function is to standardize protect and promote the cardano protocol technology. I ohk is a software research and development company have been contracted to build design and maintain Cardinal until 2020. Finally. We have a Virgo emergo is a Japanese company that develops supports and incubates Commercial Ventures who want to revolutionize their Industries using blockchain technology much of ioh case funding comes from a five-year contract with emergo these three organizations work in Synergy to make sure that
Donald Development is going on at a good Pace unlike most cryptocurrencies. Cardano didn’t start as a white paper instead the project started as a set of design principles engineering best practices and avenues for exploration the code that resulted from the team’s research was made open source and subject to peer review just as with any serious scientific Endeavor that’s unheard of among cryptocurrencies which too often consists of code car. Copied from other coins by a handful of anonymous developers cardano’s code by contrast was built completely from scratch. It’s built in a programming language called Haskell an advanced system in which code can be written more precisely reducing errors and making the platform more secure Ada is the digital currency which feels the cardano platform. Its primary motive is to provide quick and safe currency exchange and allow users to operate.
Smart contract and application seamlessly cardano uses proof of stake and which holding a turtle can skips you a stake in the network and the stakeholders receive rewards for validating the blocks and secure the network or Donna hopes to achieve sustainability by using an Innovative version of the proof of stake consensus mechanism called Ouroboros. This is a crucial part of the infrastructure that supports the Ada cryptocurrency and isn’t Major Innovation and blockchain Technology Ouroboros eliminates the need for an energy hungry proof-of-work protocol which stands as a barrier to block chain scaling up for much wider. Use Ouroboros is the first proof of stake protocol that has mathematically been shown to be provably secure level of security demonstrated by Ouroboros compares to that of Bitcoins blockchain, which has never been compromised One Way cardano improves on
Currency design just by separating its two main functions into two distinct layers one for the transfer of value and one for the storage of data limiting the duties of the settlement layer makes it more secure and preserves privacy for basic transactions that don’t require metadata having a separate control layer is better for cardano as a platform. It’s used for smart contracts decentralized applications and even as a foundation for Official coin offerings it allows the control layer to be optimized for these uses while ethereum single layer system must do double duty. Best of all the 2 layer design means each layer can be upgraded separately as needed in the way of soft Forks s cardano executes on its road map. The platform will gradually add in features. According to the roadmap. Cortana will be released in five phases. Byron was all about creating a bulletproof.
It’s the first layer of the cardano platform and the Heart of the system aka the cardano settlement layer that allows users to send and receive Aiden tokens. Shelley is focused on turning cardano into a fully decentralized and autonomous system starting with staking Staples and delegation goguen brings different computation layers that enables smart contracts for financial transactions such as hedging the X term deposits credit swaps. Ending as well as complex the Is that applications the features and fascial are focused on performance and scalability similar to BitTorrent? The system will gain more resources with every new user Voltaire is focused on sustainability and self Sovereign identity. There will be a treasury model and a mechanism to contribute to card on Oviya Improvement proposals one interesting aspect of the cardano project is quantum resistant signatures. This will protect funds Held on the cardano blockchain from being compromised using quantum computers quantum computers are major existential threat to cryptocurrencies. That’s because they have the capacity to break the cryptographic algorithms that are used in blockchain. They never really get much attention in the crypto sphere because it is widely assumed that the quantum technology is still far off. However, these computers may actually be a reality sooner than most people think. Fact the quantum resistance signatures aspect of the cardano project could actually end up being its biggest strength going forward first. It could become the backbone that aids in the adoption of cardano by institutional investors. That’s because for institutional investors looking to put money into crypto security is an absolute concerned with Quantum resistance businesses should also be more confident in developing their systems of the cardano blockchain. That’s because it offers an element of long-term sustainability in a few years Quantum resistance could very well be a key issue and on this basis alone businesses, especially those dealing with sensitive data can Leverage The cardano blockchain is the first blockchain project to be developed from a scientific philosophy and the only one to be designed and built by a global team of leading academics and Engineers her Dano is secured.
It has been developed the same scientific rigor applied to Mission critical systems such as Aerospace and banking a major innovation of Gerdau is that it will balance the needs of users with those of regulators and in doing so combine privacy with regulation the vision of cardano is that its new style of regulated Computing will bring greater Financial inclusion by providing open access for all to Fair Financial Services. Has if you made it to the end of this video, let me know in the comments if you’re bullish or bearish on cardano in 2019.
This is a blockchain blockchains can be useful for all sorts of things from improving open access to financial services to providing a better safer way to manage our data online block chains are used to build applications for gaming supply chain Logistics social media the internet of things and more but up until now protocol limitations have made blockchain technology impractical for most real-world use cases.
Networks composed of a single block chain, for example can only process a limited number of transactions if too many transactions are submitted at once a bottleneck occurs causing delays and increase transaction fees that won’t work what’s needed is a way for blockchains designed for specific purposes to work together efficiently and securely at scale.
This is polkadot. a sharded chain protocol that unites an entire network of diverse blockchains into a single decentralized ecosystem polka dot makes it easier than ever for software developers startups and Enterprises to make efficient use of blockchain technology in precisely the way that’s best for their project.
Polka dot makes blockchains scalable and customizable. It also unlocks cross chain communication transparent governance. And for the first time ever a way to seamlessly upgrade blockchains. How does it work meet the polka dot real a chain? This is the heart of the polka dot Network all blockchains on polka dot are connected here like spokes connected to the hub of a wheel.
Each Block Chain connected to the relay chain can be optimized for a specific use case. This allows teams to incorporate exactly the functionality. They need and offers greater efficiency and security than building on a general-purpose blockchain. Teams can also drastically reduce the build time of their custom Block Chain by building it with substrate are modular development framework the real a chain allows polka-dot to process transactions from all chains in the network at the same time drastically increasing scalability. This simultaneous transaction processing also called parallel processing is why blockchains on polka dot are called para chains the real a chain also.
Sides is secure way for chains to communicate with each other polka dots cross chain messaging scheme allows chains to exchange any type of data. For example, a token an account balance or even information from The Real World like a stock price or the final score of a sporting event this interoperability promotes Innovation on new types of services that leverage the specific capabilities of different chains. For example for Decentralized Finance applications
So what about governance are the blockchain protocols often have a small group of stakeholders making crucial decisions in an opaque way for the entire network? Polka dot is governed transparently on Chain by all stakeholders who wish to participate by proposing and voting on referenda using polka dots native token the DOT. Individual para chain teams are completely Sovereign and free to govern their own blockchains in any way. They see fit. When it comes to upgrades the process for updating conventional blockchains can cause a hard Fork a Divergence in the chain that can take months of work and risk splitting a community into Polka dot is the first protocol to enable foreclosures on chain upgrades. This capability means teams can bring new features to their blockchain on polka dot easier and faster than with any other protocol. Polka dot also enables Bridges to other networks like Bitcoin or Etherium for cross Network functionality and communication never before has there been a protocol for connecting diverse blockchains together and allowing them to communicate safely with each other at scale in a decentralized way polka dot makes blockchain technology accessible and practical for teams innovating real world applications for a better future. This is blockchain. It are you ready to start building?
Hope you are doing great today in this video. We are going to be talking about chain link and why everybody is referring to it as the internet of blockchain have you looked into?
Yeah, are you confused by what it is or how you can use it or what? It means for the crypto space as a whole. Well, don’t worry, whether you’re new to crypto or you’ve been around for a while and just haven’t looked into this one project yet. I will be breaking down and explain it to you as simply as I can. So sit back relax grab yourself a beer whilst I explain chainlink.
510 first for Big Country beginners, we’re all about sharing informative easy to follow and enjoyable content without showing any one particular project just our research and honest opinions. If you’re interested in doing your due diligence into this project, I’ve included all the links that I’ve used for research in the description below. If you enjoyed this video, please do give us a thumbs up whilst you’re there why not subscribe to the channel and hit the Bell icon to receive notifications of when we upload content. Okay, so I’m going to By giving you a brief overview of the chain the project so we’ll start with what is chain-link wealth. It’s basically a decentralized network of oracle’s and we’re probably all pretty familiar with the decentralized network part, but some of you may be confused by what an oracle is. Well an oracle is similar to a bridge crossing over from The Real World to the blockchain. So an inbound Oracle will be taking information from The Real World and passing that over to block. Check and enough chain Oracle would be doing the same but it would be taking information from a blockchain and transmitting it to real world entities over 80 percent of potential smart contract use cases require real world data in a present smart contracts are unable to access this data previously the inability to connect real world data to the blockchain has limited smart contracts to tokenization and the movement of tokens backwards and forwards this ability to
Access real world data and integrated into the blockchain will hopefully result in a smart contract version 3.0 possible future use cases could be Bank patrons retail payments utilization of events data web apis Market data as well as blockchain interconnectivity. Pretty much anything could be linked to the Oracle Network at present. The only other project that could be considered a competitor is Mobius. So there’s actually ample room for Both of these projects to succeed in the market. Let me know in the comments below if you can think of any other projects that you would consider to be a competitor to link. So while smart contracts and the blockchain have an inherent level low security to them that make it difficult to tamper with data on the blockchain. This is not the case for real-world data chain-link are well aware of this inherent security floor and have implemented Tes or trusted executable environment to combat this
Security ways either of chain environments where computational processes can happen whilst the data and the code can be protected from the outside environment. Now, this is a far more complex process than I can explain. What a good analogy that comes to mind would be a secure lock box and this secure lock box can process information without anybody being able to view what’s going on inside. The only difference being that even the owner of the lock box isn’t able to access the information and Temple with it another process that Chain-link have implemented is something called threshold signatures these allow the oracles to talk to one another to reach consensus before broadcasting it to a blockchain this system to bring the cost down. So rather than having thousands of individual transactions each recorded with the same outcome, the Oracle Network reaches consensus and only broadcast one final consensus to the network. There’s a lot of complex math involved and you can if you wish read further information on threshold signature, sir.
That you can have a better understanding of them. So now let’s talk about the team changing was founded by the company smart contracts, which is the brainchild of Sergei never ours and Steve Ellis team consists heavily of software engineers and Business Development experts, each of their individual career history is is easily discovered by just checking them out on LinkedIn if you’re inclined to do so the advisors for the project include the founder of DocuSign Tom Gardner who’s completely revolutionized Digital contracts ever It was co-founder of llvm who are responsible for generating the low-level machine code. Well in almost every Apple device as well as much of Intel Google and the video is also the director of engineering at Facebook as well as these two there are several well-known and highly respected researchers that are currently advising the project the list of projects partnering and implementing chain link is constantly grow and at present stands at 44 projects. These include Swift game decks one chain. Are you OST gold chain mattock and most recently silica the seems to be quite a bit of optimism about chain link from other projects existing in the space. So I’m going to briefly run through the token omics for you. For those of you that aren’t aware chain-link sticker is linked. It has a total supply of 1 billion tokens with 350 million tokens being in circulation at the moment. It’s market cap of nine hundred and five million u.s. Dollars results in a price of Nonsense, which at the time of recording was 22,000 satoshi’s this placed it at number 17 on coin market cap and with its IPO price of 11 cents. It means investors who bought it at the Ico price of made 1553 percent return. Although this is not Financial advice because I’m not financial advisor to me this project kind of feels like a no-brainer. There’s huge huge Community Support in it. There’s a lot of excitement. From other blockchain projects in the Spade want to implement this project into their own business models. It’s a working main there that works with the etherium network now, but we know that in the future they are looking to implement other blockchains as well. The potential use cases are kind of only limited by the imagination of the people wanting to utilize the project with that said there are certain things that are concerning although they are kind of minor the technology is relatively new.
And with test Nets and Main Nets being only just implemented we can expect to see hiccups. There are going to be flaws within the code. They’re going to be flaws within business models and team and all of this with cryptocurrency being a hyper volatile market like it is is going to just reflect tenfold in the price of Link. There’s no road map to check the progress of the developers against you know, what their targets are and where they’re at now this Is because the technology is relatively new and then they’re not sure how long it’s going to take for them to put these things out and I kind of see it only as a minor issue. I’d like to know what you guys think. Are you hopeful about this project or do you think there’s any red flags that I’ve missed? Let me know your thoughts in the comments below. Well, that’s it for this video. I hope you’ve enjoyed the content or the time and effort that I put into creating it for you guys. If you have leave us a like below if you’d like to see more videos.
I’m Nate from 99 Bitcoins and welcome to bitcoin whiteboard Tuesday. Every few weeks were going to send you a cool new video just like this one explaining some basic concepts around Bitcoin this way you can learn about Bitcoin yourself or forward these videos to friends or family members who have questions today’s topic is altcoins and icos in this episode. We’re going to go over some of the different cryptocurrencies out there and explain what our icos so let’s get started altcoins or alt for short are crypto currencies that are not Bitcoin. The word altcoin is an abbreviation for alternative coins. So Litecoin, triple Dash or any other non Bitcoin cryptocurrency all fall under the category of all coins. Now, you may ask yourself. Why do we even need all the coins in the first place? Well, the answer is simple Bitcoin is not perfect usually altcoins will try to create a better or different version of Bitcoin.
For example, Litecoin is an ALT that transactions faster than Bitcoin – and mineral are altcoins that focus on the anonymity aspect making transactions virtually impossible to trace each altcoin has its own unique thing. It does best altcoins can also vary for Bitcoin in the way. They are mind.
For example Bitcoins mining algorithm is called a sha-256 while Litecoins mining algorithm is called script different mining algorithms require different types of Hardware to my another NG to keep in mind is that if an old coin is relatively new or not that well-known it will probably be harder to buy and we’ll have fewer wallets that supported until today thousands of old coins have been introduced to the market but only a handful have managed to gain a significant following like Bitcoin has one way to figure out which altcoins are gaining popularity is by measuring their market cap. Market cap kept being short for capitalization means how much money or capital is invested in an asset?
Measured in dollars. It’s calculated by taking the number of coins in circulation and multiplying it by the dollar exchange rate. If for example There are 16 million Bitcoins in circulation, and the price of one Bitcoin is $2,500, then the market cap for Bitcoin would be forty billion dollars for a long time Bitcoins market cap accounted for 90% of the total crypto currency market cap today though, as more altcoins are gaining attention and appreciating in price Bitcoin shear. The market cap makes up less of the total crypto currency market cap, which has managed to surpass a hundred billion dollars in 2017. So how do you actually decide in which all Coy to invest first and foremost I suggest you read about the altcoin you’re interested in make sure you understand what makes it unique and see if it makes sense to you most importantly don’t invest in a coin just because of the buzz surrounding it many coins out their employee. What is known as a pump and dump scheme well,
It means that the coins creators generate a lot of hype about a specific coin in order to get people to invest in it and inflate the coins price. Once the coin appreciates in value the Creator sell all of their coins at a profit while crashing the price due to the massive sell-off. This leaves the majority of investors with a bunch of useless coins and no one to sell them to other stuff. You should look into include the coins market cap. This will give you an idea of how well this altcoin has been received in the community. I would also suggest getting a Involved in the coins Community usually most major coins have an official Forum a Facebook group a subreddit and other places of gathering where you can ask the developers of the coin specific questions a strong Community is an important predictor for a coin success. Now, you know, what altcoins are and we can move on to our next topic which is closely related ico’s. So what is an IC o IC o stands for initial Point offering the turn derives itself from the traditional
Nance term IPO or initial public offering an IPO is used to describe the launch of a new company on the stock exchange also known as going public. The purpose of an IPO is to sell stock in the company in order to raise capital from the public eye sales on the other hand sell coins also known as tokens as a way to fund a specific project. The general idea is that if you believe the project will succeed You by The Tokens that power the project beforehand at a discount and then you will be able to sell them later. I run at a profit once their project succeeds a let’s break this process. A little bit further when a cryptocurrency company wants to launch a new project through an icy. Oh, it creates a white paper. The white paper is a document that states what the project is about what needs the project will fulfill how much money is needed for the project and how long the Ico for this project will run form after the Ico is set up the public can start investing in the ICU by sending money to the project and receiving project tokens or coins in return if the money raised by the Ico does Does not meet the minimum funds required by the white paper. The money is returned to the backers and the Ico is deemed to be unsuccessful. If the funds requirements are met within the specified time frame. The founding team will now get to work and bring the project to life through the use of the funds raised to sum it up. I see o tzar like Kickstarter for crypto projects the best example of a highly lucrative I co was the pre-sale of etherium tokens in mid-2014 one either token also known as eat. Eh,
For around 40 US cents. If you bought a hundred dollars worth of e th back then you would have the equivalent of $75,000 in 2017 today more and more projects are trying to mimic the success of etherium. Zai CEO ico’s are conducted over the etherium platform. And that’s why you’ll need to buy the etherium token known as ether in order to participate in them. The recent high volume of ico’s caused a theorems price to spike and also overwhelmed the etherium network. Well, This cause delayed or failed transactions leading to the suspension of etherium trading on several exchanges and problems with I co-funding the worst example of a disastrous Ico is the Dow the Dow or decentralized autonomous organization project managed to raise a hundred and fifty million dollars worth of ethereum. However, shortly after the Ico ended a hacker managed to drain a third of the amount raised due to a bug in a therians code this crisis and the
Front opinions on how to handle it led to a split in the ethereum network and the creation of both ethereum and etherium classic altcoins just like with any other Financial instrument where there is the possibility for great reward. There is great risk as well. And I cos contain a huge amount of risk ico’s can be considered as high-risk Gamble’s on cryptocurrency Startup companies many people today invest in icos not because they believe in the project but because they just want to make a quick profit this Turn creates a general height before the project launches. But as the buzz Fades away project creators and early investors want to take the money off the table. So they start selling massive amounts of the token and this can cause the price to sharply drop. Another thing to consider. Is that the bar for creating an IC o—- today is pretty low while conducting an IPO requires to comply with a lot of Regulation Ico. Skip this entire burdensome procedure by raising money, exclusively in the cryptocurrency, which has yet to be regulated.
I want to create an IC o—- just create a shiny new website outlining your concept create a digital asset get some crypto celebs to say nice things about it and sell your projects assets directly to people around the web. You don’t even have to have a working product these low barriers to entry bring about a massive amount of low quality projects that will never see the light of day. This could be due to the fact that the founders lack the skills required to execute the project or that the Ico is just a plain scam to begin with as You can imagine this is a scammers dream come true with minimal investment of time and money. They can get tons of people to send them money without any legal exposure or liability to the public in order to emphasize the absurdity of how much dumb money is spent on icos one developer went so far as to create a site called useless ethereum token the website stays you’re literally giving your money to someone on the internet and getting completely useless tokens in return. There are no white papers. No products and no
It’s just you me and your hard-earned ether and my shopping list amazingly enough. Even the useless etherium token project managed to raise over 60,000 US dollars in some cases. You may lose money in an IC o—- not due to an intended scam but due to a hacker manipulation. For example, not long ago a hacker managed to hack in Ico website and change the etherium Ico deposit address to his own etherium address. This caused over seven million dollars to Be sent to him, of course that money is now. Lost forever to sum it up. I see o should be considered as risky as gambling due to the irreversible and unregulated nature of cryptocurrency. You have virtually no recourse if an IC o—- turns out to be a complete scam or goes bust. So how do you know if you should invest in Nico? Well, first of all, you need to know what you’re investing it. This means you should take the time to actually read the ico’s white paper research the project and Founders and get involved with the community around it. Also, make sure you understand how the tokens for the project will be distributed ico’s, which hold a Lion’s Share of tokens for the founders may end up selling these tokens in order to make a quick profit after the Ico ends. Another important question to ask is how much money is being raised and for what purpose if there’s no cap on the amount being raised the project me get overfunded getting more money than you need can also hinder project development as laziness and no clear Focus may arise as a result.
Millions of dollars before the first line of code was even written most importantly don’t ever invest in something. You don’t understand. To sum it up. I see o tzar a new form of crowd funding which very few people understand if you’re just getting started with cryptocurrencies, and I cos you probably should do a fair amount of additional research before committing your money to any project as exciting as it may sound that sums it up for today. I hope you’ve enjoyed this lesson of Bitcoin whiteboard Tuesday, and I’ll see you in a bit.