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Crypto News Updates

How BTSE Creates Additional Value for Cryptocurrency Users with Earn Feature

The new BTSE Earn feature is undoubtedly the right step in the right direction for both users and exchange owners. With the new BTSE Earn, crypto-asset holders can earn interest on their assets. There is a range of Earn products the preferred assets of users. The new Earn feature on the BTSE cryptocurrency exchange will allow users to earn yield from their crypto assets.

The implication is that you can earn interest on your idle assets on the BTSE exchange without trading your assets. It is a new approach in the crypto space and certainly a welcome development for platform users. With the new BTSE Earn feature, the ecosystem caters to both traders and savers. Currently, there are flexible and fixed-term deposits available for crypto-assets like ETH, BTC, and some popular stablecoins. In the near future, BTSE is likely to release additional currencies for its teeming platform users.

Before we go further to explore the benefits of the BTSE Earn feature to asset owners, let’s understand the BTSE ecosystem.

The BTSE Cryptocurrency Exchange

BTSE exchange was co-founded in 2018 by Jonathan Leong, the CEO, and Brian Wong, the Chief Product Officer. Other team members include Joshua Soh (Chief Operating Officer) and Yew Chong Quak (Chief Technical Officer). Together, they created the BTSE ecosystem that offers a one-stop service to crypto traders worldwide. BTSE is the first exchange to introduce Monero (MXR) futures.

The platform witnesses more than $10 million volume worth of transactions as a result of the BTC/USD trading pair. Although the platform has had a low trading volume compared to Binance and Coinbase, it has maintained a low spread of 0.01%. Some of the top features of BTSE include:

  • Near-Zero Downtime with its real-time hot upgrades.
  • More than one million order requests per second, utilizing an institutional-grade matching engine.
  • 99.9 % of all the funds are in cold storage, maintained with BTSE’s top security and unlimited daily withdrawals.

BTSE introduces institutional-grade crypto trading to the cryptocurrency industry. It acts as a go-between for the traditional financial system and digital assets of tomorrow. It is a platform that traders develop for both traders and savers. Some of the services provided by BTSE include asset management, OTC, lending, Defi, exchange, etc.

How Traders and Savers will Benefit from BTSE Earn Feature

Crypto asset traders and savers stand to gain a lot from the BTSE Earn. The flexible option that BTSE Earn introduces will allow users to unstake whenever they feel like it. Also, it will enable traders to earn interest on their idle assets. However, locked asset deposits mandate that tokens be staked for an extended period. The extended time for staked tokens offers a higher annual percentage yield (APY).

Users are not required to pay any deposit fee, and there is no minimum benchmark for deposits. The compatible cryptos include USD-pegged stablecoin Tether, USD Coin (USDC) and True USD (TUSD), and BTC and ETH. Users start to earn interest with BTSE Earn on their staked assets once they have determined the time period

Conclusion

The BTSE Earn feature will certainly attract more users to the platform and increase liquidity. This is a welcome development, but BTSE needs to incorporate additional features to compete favorably in the crypto exchange market.

Disclaimer: The information presented here does not constitute investment advice or an offer to invest. The statements, views, and opinions expressed in this article are solely those of the author/company and do not represent those of Bitcoinist. We strongly advise our readers to DYOR before investing in any cryptocurrency, blockchain project, or ICO, particularly those that guarantee profits. Furthermore, Bitcoinist does not guarantee or imply that the cryptocurrencies or projects published are legal in any specific reader’s location. It is the reader’s responsibility to know the laws regarding cryptocurrencies and ICOs in his or her country.

Source: Bitcoinist News

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Crypto News Updates

OKEx Promises Exciting Promotions To Support Launch Of Algorand Stablecoins

As demand has spiked all across the cryptocurrency board, especially stablecoins, leading spot and derivatives trading platform OKEx has announced support for two of the most market’s most popular stablecoins on the Algorand protocol.

The move is in response to users searching for more options related to stablecoins and alternative protocols to avoid rising transaction fees.

OKEx Introduces USDTa and USDCa, Coming In Days

The Bitcoin market has been booming over the last twelve months, reviving the interest surrounding cryptocurrencies. The resurgence of development activity and users led to an explosion of new DeFi applications with incredible use cases.

Users have flocked to DeFi applications, many of which are built on Ethereum, causing related ETH gas fees to soar. When it comes to DeFi projects, it is a necessary cost associated with doing business. However, stablecoins on the Ethereum protocol have also been impacted by substantial transactions, discouraging users from sending stablecoins at such a high cost.

The beauty of the free market of crypto is that stablecoins can also run on other protocols, such as Algorand. Crypto exchange platform OKEx is often ahead of the curve when it comes to responding to consumer trends, and the latest move is no different. OKEx is providing users with the alternatives they desire.

Why Support Stablecoins On Algorand Protocol? OKEx CEO Explains

OKEx has introduced both USDTa and USDCa, running on the Alogrand protocol and offering the same benefits as their ERC-20 counterparts, but at only a nominal fee. OKEx CEO Jay Hao said that the platform had seen “such high demand” for the stablecoins, and because “user experience” is the platform’s “number-one priority,” they have begun to “offer users the chance to transact quickly and cheaply by providing a safe alternative to Ethereum while a solution is found for its rising gas fees and network congestion.”

Rising gas fees have benefited Ethereum holders, as it is driving up the prices per ETH. However, stablecoin transaction fees have reached an average of $25 in fees each, bringing to light the sudden need for suitable alternatives.

“Algorand is a technically sound protocol that provides the scalability essential to furthering crypto adoption that Ethereum doesn’t currently have,” Hao added.

Algorand-based stablecoins USDTa and USDCa will become available on OKEx in the next few days. OKEx has teased a variety of promotions to support the launch, with more information.

Disclaimer: The information presented here does not constitute investment advice or an offer to invest. The statements, views, and opinions expressed in this article are solely those of the author/company and do not represent those of Bitcoinist. We strongly advise our readers to DYOR before investing in any cryptocurrency, blockchain project, or ICO, particularly those that guarantee profits. Furthermore, Bitcoinist does not guarantee or imply that the cryptocurrencies or projects published are legal in any specific reader’s location. It is the reader’s responsibility to know the laws regarding cryptocurrencies and ICOs in his or her country.

 

Source: Bitcoinist News

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Crypto News Updates

OKEx Utility Token OKB Blasts Off To New ATH As Crypto Trend Continues

Cryptocurrencies are experiencing a bullish phase in a major way. Across the entire market, coins are setting new all-time highs with every new passing day. Bitcoin and Ethereum are in full price discovery mode, and profits from them have flooded into other value projects such as utility coins and other top altcoins.

As a result, OKEx’s utility token OKB has set a new all-time high. Here’s why (both fundamentally and technically) OKB’s uptrend is only just getting started.

OKB Sets New All-Time High Alongside Massive Crypto Capital Inflows

According to the Dow theory, efficient markets will price assets effectively by being a direct reflection of all available information currently. And right now, all the information (public and private) is pointing towards going all-in on value projects in the crypto industry.

Investing in Bitcoin early has paid off handsomely, and other cryptocurrencies are following suit. The potential is there, but only for projects with lasting power that have both fundamental strength and technicals to back up their price momentum.

The overall crypto trend has caused coins everywhere to perform well, but certain categories have benefited more so than others, including DeFi tokens, and exchange utility coins like OKB.

OKEx’s native utility token recently rose along with the greater crypto price trend, reaching a new all-time high of over $23 per coin. The number is a 4,000% increase from the bear market bottom, and a nearly 400% increase in 2021 alone, making it one of the most successful coins in the space.

But investors are becoming aware of the value of utility tokens only now. OKB is only beginning its uptrend, according to technicals, and has the fundamentals to back it up.

Technical And Fundamental Factors Driving The OKEx Utility Coin Bull Run

The Average Directional Index is a trend strength measuring tool that can provide clues to where an asset is in its current trend. On higher time frames, the bullish trend is the strongest it has ever been historically for OKB and has only just started to blossom.

OKB in 2020 broke through its bear market resistance and confirmed it as support. After the critical bullish retest took place, it was clear skies ahead for OKB. With resistance flipped as support, and strong fundamentals to support longevity, OKB has only just begun to soar.

OKB allows OKEx customers to enjoy a discount on trading fees, access token sales, and much more. The token is also central to the OKExChain ecosystem and can be used or spent in a number of ways and applications already. Few cryptocurrencies can claim such utility and prices will appreciate accordingly and have already been doing so for some time.

OKEx trading volumes are also soaring as the greater crypto market trend stays magma hot. With token turns keeping the already limited supply shrinking, the asset’s value is designed to stay high and increase steadily over time, with less volatility than assets like Bitcoin and others.

 

 

Source: Bitcoinist News

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Crypto News Updates

Hashbon Provides Zero-Commission B2B and B2C Crypto Payment Services

Driving crypto payment adoption to new heights requires competitive solutions. Hashbon focuses on empowering small and medium-sized businesses through a 0% commission approach. Its native HASH token, to be listed on an exchange soon, will also provide certain benefits. 

An All-Encompassing Crypto Payment Service

As cryptocurrencies’ appeal grows globally, more and more people see the merit of using Bitcoin or altcoins for payments. While the number of companies accepting this form of payment remains low, Hashbon has the tools to change this narrative. As a cryptocurrency payment service platform for both individuals and businesses, it provides global payment solutions to everyone.

Established in 2016 in the Czech Republic, the Hashbon team focused on building its crypto payment service from the ground up. With a strong focus on ease of integration and a frictionless user experience, the platform supports over 30 currencies today. Individuals and companies can accept payments in Bitcoin, Litecoin, Ethereum, Dash, and many others. All of this functionality is part of Hashbon’s all-encompassing payment service platform.

Any business aiming to establish a global presence will need to experiment with universally-used payment solutions. Outside of traditional solutions such as payment cards and mobile options, cryptocurrencies are the next option on the list. By lowering the barriers to entry and adoption, Hashbon paves the way for global crypto payment adoption. 

Core List Of Features And Benefits

For small and medium-sized businesses, integrating support for alternative payment methods is often a costly endeavor. Hashbon acknowledges this aspect and ensures their solution can help decrease costs associated with handling payments. More importantly, the acceptance of cryptocurrencies can help any business or individual tap into new markets that would otherwise remain off-limits. 

Hashbon will never charge a commission for processing transactions in cryptocurrencies. Recipients will receive the full amount paid by the customer, minus the network’s transaction fee. Putting more money into the hands of those who accept these cryptocurrency payments is an essential priority for the team.  

Integrating this crypto payment solution only requires one line of code. Compared to other payment processing options on the market – either traditional or otherwise – the ease of integrating Hashbon is unprecedented. No technical knowledge is required to introduce this alternative and commission-free payment method to clients and customers. 

Other crucial benefits include:

  • Mass-payouts (an excellent tool for companies dealing with overseas or freelance workers).
  • Electronic billing (including WhatsApp supporting).
  • The acceptance of traditional payment systems alongside cryptocurrencies.

More specifically, businesses and individuals can equally accept SEPA, PayPal, Payoneer, credit card, or Sofort. Having the ability to customize payment options for yourself or your business is worth its weight in gold. 

The HASH Token Explained

Hashbon launched its native HASH token in February of 2021, and the first exchange listing will take place on Coinsbit come February 26. As a utility token, HASH is designed to be stable and transparent. It will exist on the Ethereum and Binance Smart Chain blockchains.

Launching this token has allowed Hashbon to grow its community to over ten thousand members. Every holder of the token will gain special features – including lower exchange rates within the Hashbon payment system. 

Closing Thoughts

As a crypto payment service that caters to both B2B and B2C clients’ needs, Hashbon can help expand the appeal of global cryptocurrency payments. With an initial focus on Europe and Asia and its compliance with applicable laws, the projected market share of 30.2% by 2025 is within reach. Its language localization, partner program, and ease-of-use interface are crucial aspects of convincing B2B and B2C clients of the importance of alternative payment solutions. 

If you want to find out more about Hashbon, join their Telegram Chat and News Channel, follow the team on Twitter, and check out the Reddit community.

Disclaimer: The information presented here does not constitute investment advice or an offer to invest. The statements, views, and opinions expressed in this article are solely those of the author/company and do not represent those of Bitcoinist. We strongly advise our readers to DYOR before investing in any cryptocurrency, blockchain project, or ICO, particularly those that guarantee profits. Furthermore, Bitcoinist does not guarantee or imply that the cryptocurrencies or projects published are legal in any specific reader’s location. It is the reader’s responsibility to know the laws regarding cryptocurrencies and ICOs in his or her country.

Source: Bitcoinist News

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Crypto News Updates

Data Shows Decentralized Perpetual Swap Protocols Are “Lacking”

DeFi is a revolutionary concept in which traditional financial products and services can be operated without intermediaries like banks. The emergence of Uniswap created alternatives for traders to access liquidity, and since then there’s been an explosion of decentralized exchanges and quite a lot of decentralized perpetual swap protocols have been developed.

However, data shows that although decentralized perpetual swap protocols should be seeing about $4.7B in trading volume based on Uniswap’s daily average, combined, they don’t even come close. Here’s why decentralized perpetual swap protocols are so currently “lacking” despite a “50x” growth potential claimed by the same data.

CEX And DEX Platforms Rise In Tandem During Crypto Market Uptrend

A rising tide lifts all boats, and the latest cryptocurrency market uptrend has brought an increase in trading volume across nearly every type of cryptocurrency exchange in the market. Several platforms have been unable to keep up with the demand.

According to the latest research from Huobi, there is one type of option that is, unfortunately, “not applicable to many traders” and, as a result, has fallen behind the rest of the space.

The research begins with a comparison of centralized exchange Huobi Global, which offers spot and derivatives trading under the same roof. Internal data shows that when spot volumes increase, derivatives volumes typically also rise in tandem.

The data is then used to compare Uniswap as a decentralized spot ecosystem and decentralized perpetual swap protocol dYdX. Interestingly, while Huobi Global’s spot trading volume represented only 19% of the total derivatives trading, Uniswap beat out dYdX by 331% during the same period.

Decentralized Perpetual Swap Protocols Are Lacking, Despite 50x Growth Potential

Further demonstrating how decentralized perpetual swap protocols are “lacking” currently, the report looks at five different centralized exchanges. The average across the grouping saw roughly five times the derivatives volume over spot, projecting that the total decentralized derivatives market should represent $4.7 billion in trading volume. The figure is found by taking the average daily trading volume of Uniswap across the past 30 days and multiplying by a factor of 4.82x.

The analysis shows that although the total should be somewhere around $4.7 billion according to projections, instead, the actual average daily trading volume across the four currently launched decentralized perpetual swap protocols is only a meager $67.7 million, or only 1.4% of the projected estimate.

dYdX, DerivaDEX, Perpetual Protocol, FutureSwap, and AlphaX are four of the currently live or about to go live platforms available and used in the data. While these platforms do replicate some of the experience found on centralized exchanges, liquidity is severally lacking. That’s where established CEXs like Huobi Global really shine – ensuring instant order execution and minimal slippage.

Given the potential of DeFi, there’s no surprise that everywhere you turn in the cryptocurrency industry, there’s a new development, product, or platform. And while almost all of them do offer promise in the long-term, traders should be wary that the lack of liquidity, among other issues, means that these decentralized perpetual swap protocols aren’t currently “applicable” for traders who might want to stick to proven centralized platforms until more growth is achieved.

You can read the full report and analysis here.

 

Source: Bitcoinist News

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Crypto News Updates

PIVX | Everything You Need To Know About The Next-Gen Privacy Coin

Bitcoin and Ethereum might be capturing the most mainstream media attention as the two largest cryptocurrency networks by market cap. But unfortunately, their market size can get in the way of investors discovering a world of innovation around in the rest of the blockchain space. 

Here’s why PIVX is a coin you might have heard about before but will soon be hearing a lot more as its value proposition is brought to the forefront of finance in the future ahead. 

The Backwards Battle Of Blockchain Intelligence

Blockchain is being heralded as the most disruptive technology of the modern age, following the internet itself. In addition to the network of data, the value lies in the transparency and immutability of the underlying distributed ledger technology. 

Cryptography, more so related to the assets that transact across these ledgers, adds a layer of pseudo-anonymity to cryptocurrencies but falls short of providing complete privacy for the end-user. 

Through blockchain intelligence and on-chain analysis, governments have begun to utilize the data to trace Bitcoin and other cryptocurrency wallets back to individuals through bank accounts, KYC, and more. If governments possess this ability, then cybercriminals can also do so, ten times more efficiently.  

As blockchain adoption goes mainstream, the need for financial privacy and to conceal user data related to transactions will become a crucial fight. 

Governments have demonized privacy coins in the past for their illicit uses. However, their application for specific industries, especially finance or anything related to personal privacy, will become critically important in the all-digital future. 

For instance, banks keep personal data private so that criminals don’t target the wealthy. Another example involves cybercriminals following a blockchain-based shipment waiting to intercept a rare luxury item that utilizes a blockchain-based RFID tag for supply chain transparency. Or imagine if blockchain is used for voting – an ideal application for the technology – yet every vote was made public. Removing all aspects of privacy from blockchain would destroy its potential in most situations. 

PIVX And The Unrealized Value Of Privacy

Protecting innocent users in the all-digital world will become so critical, governments will have no choice but to rethink the benefits of privacy coins and potentially adopt aspects of privacy protocols for the proposed central bank cryptos like the digital dollar and euro. One of the benefits of using cold hard cash is that no one knows what you did with it after.

Just as there was once a time when no one could imagine Bitcoin or other cryptocurrencies as money or a worthy investment, they are now the talk of the financial world. However, another cryptocurrency with a deep-rooted history in the blockchain space with an introduction in 2015, PIVX, is even more revolutionary. 

PIVX solves the issues with current privacy coins by letting the user and use case dictate if the transaction data should remain obfuscated or not. The groundbreaking technology powering PIVX retains all the initial value of blockchain and DLT transparency while preserving privacy for any and all parties that desire it. 

Solving Cryptocurrency’s Notorious Volatility Problem

Another reason for Bitcoin’s recent emergence has been the claim that the cryptocurrency is a hedge against dollar inflation due to its limited supply. Pundits argue some inflation is necessary for economic expansion, while others look to deflationary assets to preserve wealth. 

What is really broken in terms of the current monetary system is that although quantitative easing was a necessary evil to save the economy, there’s never been any plan to remove excess money from circulation for balance. And while Bitcoin does bring some balance to how inflationary the dollar has become, it is too volatile ever to be used as a currency. 

Here’s yet another way that PIVX raises the bar for crypto projects. PIVX solves the volatility issue with a dynamic coin supply. When trading volumes are high, coins are burned to encourage saving. When volumes are low, coins are minted at a higher rate, and transaction fees are burned to encourage spending instead. This constant cycling toward equilibrium enables steady growth in the PIVX price, rather than volatile and unpredictable price action. 

 Even Ethereum 2.0 Tries To Catch Up With PIVX Protocol

We now know how PIVX solves the Bitcoin volatility problem and tears down the barriers surrounding privacy coins, but even Ethereum cannot keep up with PIVX and is now trying to catch up. Features that are native to PIVX are now slated for the Ethereum 2.0 upgrade. PIVX operates on the SHIELD protocol, a customized zk-SNARKs sapling deployment compatible with PoS. 

By relying on PoS while retaining the most essential aspects of privacy coins, PIVX achieves efficient scaling and prevents critical issues such as 51% attacks. Ethereum 2.0 will implement this solution, and the altcoin’s founder Vitalik Buterin has shared his positive thoughts about the technology with the development community. 

PIVX also features a comparable staking system to what Ethereum is planning, providing masternode operators with as high as 9% annually in rewards as well as one vote per masternode. PIVX puts governance in the hands of masternode operators who can shape the future of the treasury, upgrades, and much more. 

PIVX, like many other coins that debuted years prior, are now bearing the fruits of the labor of the development teams and supporters. Technical issues are now solved, and soon PIVX will bring to light the value of privacy as it pertains to blockchain data and transform the face of financial data for the future. 

To learn more about PIVX, check out the official website

Disclaimer: The information presented here does not constitute investment advice or an offer to invest. The statements, views, and opinions expressed in this article are solely those of the author/company and do not represent those of Bitcoinist. We strongly advise our readers to DYOR before investing in any cryptocurrency, blockchain project, or ICO, particularly those that guarantee profits. Furthermore, Bitcoinist does not guarantee or imply that the cryptocurrencies or projects published are legal in any specific reader’s location. It is the reader’s responsibility to know the laws regarding cryptocurrencies and ICOs in his or her country.

 

 

 

Source: Bitcoinist News

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Crypto News Updates

Bitcoin, PlanB and The Saylor Super-Cycle

With Bitcoin trading above $55,000 USD, a common question is whether Bitcoin is now too expensive to buy. While the answer primarily depends on one’s investment goal, time horizon, risk appetite and so forth, it really also depends on our understanding of Bitcoin. 

Apart from the original Whitepaper by Satoshi Nakamoto, the work by PlanB can be instructive. PlanB’s Stock-To-Flow Model has been getting a lot of attention these days, mostly due to the consistent precision of its price projections, but with institutions moving in, could we be on the verge of breaking through the model? 

PlanB & The Stock-To-Flow Model 

In true crypto fashion, it is not yet clear who PlanB is exactly, but he introduces himself as a Dutch institutional investor in his late 40s. In his narrative, his now former daytime job as an investor in traditional markets is ‘Plan A’, while his interest in Bitcoin represents ‘Plan B’.

PlanB is best known for his Stock-to-Flow model (S2F), a simple but profound model that looks at how much new Bitcoin is minted, the available amount in circulation and what this means in terms of price. 

In March 2019, as Bitcoin struggled to climb above $5,000 USD, critics found it difficult to take the model seriously, but two years later it turns out that PlanB’s prediction that Bitcoin would reach $55,000 USD by early 2021 had been spot on.

It seems counterintuitive for a model to be so accurate when there are a myriad of factors that can impact price. Skeptics might argue the model is simply a self-fulfilling prophecy, but this is a weak argument that overestimates the influence the model might have on millions of traders around the world. 

In his own explanation, PlanB has mentioned that the model’s accuracy might have something to do with the fact that Bitcoin uniquely introduces a constant into economics.  

Land, real estate, gold, diamonds; we might say these are scarce assets, but it’s easy to imagine scenarios where such scarcity loses meaning. Equally, scarcity can be manufactured. It is well-known, for example, that diamonds are not as scarce as the industry would have us believe, and while diamond connoisseurs are keen to point out that ‘real diamonds’ differ from artificially created ones, we all know that’s just branding. 

Bitcoin, on the other hand, has a fixed maximum supply, hardwired into code. If demand were to rise significantly, miners cannot simply decide to mine more Bitcoin. This mathematically enforced discipline baked into Bitcoin is powerful and keeps the market on track.

The 100 Trillion Dollar Thesis

Since developing the Stock-to-Flow model, PlanB has released a modified more extensive version (S2FX). The main difference is that in the first model, ‘time’ provides the framework for analysis while in the latest model it’s all about ‘transitions’. 

Just as water comes in various forms that each exhibit different characteristics (frozen, liquid, gaseous etc), and just as the US dollar changed in nature when, say, it was decoupled from gold, so Bitcoin’s horizon changes as it transitions. 

Over the years, PlanB argues, Bitcoin has shifted from proof of concept (Whitepaper), to payment vehicle (USD parity), to E-gold (after 1st Halvening, almost gold parity), to where we are today, with Bitcoin constituting a global financial asset. 

In each phase, Bitcoin is capable of higher orders of disruption – potentially able to absorb the monetary energy currently held in stores of value such as gold, silver, bonds and real estate. In PlanB’s estimation, the price of Bitcoin is set to reach a valuation of $288,000 USD in the period between 2020-2024. 

In an interview, he furthermore states that while the model can plot price discovery until Bitcoin’s market cap reaches $100 trillion USD, there is no telling what might happen after that. All bets are off, so to speak. 

The Saylor Super-Cycle 

In a recent podcast, MicroStrategy’s CEO, Michael Saylor, said that crypto traders are at risk of reading Bitcoin’s charts with the presumption it will behave as it has done in the past. Basically, a few months after the Halvening, the asset is expected to skyrocket to a new all-time high at the upper band of the long-term trend on the logarithmic, and then we will see an 80% drop, leading to a long, cold crypto winter. 

The point is, once you’re out of the earth’s orbit, everything we know in terms of seasonality loses value and we have to learn how to navigate cosmic seasons instead. Everything we know, all our previous experiences with Bitcoin, Saylor argues, are meaningless now. Since the stock market crash in March 2020, the world has changed forever, Saylor says, and all models are out the window. 

However, while Saylor’s perspective makes sense, PlanB’s Stock-To-Flow model still completely accounts for any movements we’ve seen so far – even after Tesla’s $1.5 billion allocation to Bitcoin and MicroStrategy’s over-attended Bitcoin for Corporations conference. 

Interestingly, PlanB welcomed Saylor’s perspective and sees the link with his model, saying that there is a possibility that as people start to realize the inevitability of Bitcoin, we could see people front running the Stock-To-Flow model, en masse, kicking off a super cycle – or, as some might call it, the Saylor Super-Cycle.

Adoption of The Bitcoin Standard 

We live in a fast-paced world, focused on instant gratification and quick gains. The biggest mistake now, might be to approach Bitcoin in terms of a get-rich-quick scheme, with the goal of selling the top. Instead, if we are to see a Saylor Super Cycle where everyday people, retail and institutional investors, corporations and central banks cannot but ditch inferior assets for Bitcoin, not to get rich quick, but to redenominate wealth in general, in such a case, selling the top means settling for less. 

It makes sense for people to be skeptical about a ‘digital currency’, but nothing about cash makes any sense, and instead of looking to sell Bitcoin’s top, perhaps we ought to change our perspective and sell cash at the top (too late now). 

Bitcoin is indeed volatile, but the case for an anti-inflationary asset is strong, and as evinced by PlanB’s Stock-To-Flow, it’s on the right track.  

About the Author

Ben Caselin is head of research and strategy at AAX, the first cryptocurrency exchange to be powered by London Stock Exchange Group’s LSEG Technology 

 

Source: Bitcoinist News

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Crypto News Updates

Polkadot vs. Polygon: Understanding Two Prominent Second Layer Ethereum Blockchain Solutions

The meteoric rise of decentralized finance across 2020 exposed numerous vulnerabilities with the Ethereum network. While the Ethereum blockchain is one of the most secure and ‘battle-hardened’ infrastructures, high gas costs and scalability issues have led some projects to innovate instead of waiting for the long-desired Ethereum 2.0.

Second-layer solutions have gained notoriety lately as companies endeavor to reduce gas fees and foster Ethereum scalability by shifting transactions to sidechains

Polygon, a recent rebrand of Matic Network, intends to build a “multi-chain system” utilizing solutions like Optimistic Rollups, xkRollups, and Validium. Some advisors describe Polygon’s approach as part of a strategy to function as a “Polkadot on Ethereum” and compete against the open-source project founded by the Web3 Foundation

A price surge in February 2021 drove Polkadot’s DOT token to sit as the fourth-largest by total market capitalization, according to CoinMarketCap. The surge began after Polkadot released a para chain rollout map and noted it was in the Rococo testing phase.

Matic Network’s rebrand places Polygon and Polkadot as two of the most prominent Ethereum-based layer-two solutions focused on shifting the Ethereum ecosystem. 

Understanding the history, focus, and structure of both projects is vital for those curious in learning more about the “complex narrative” of Ethereum. 

Polkadot & Polygon: History & Background 

Polkadot relies on a sharded multichain network – known as parachains – to process transactions in parallel on smaller chains. Many Polkadot projects are built on the Substrate framework, heralded for its ability to let dApp developers focus more on the business side of projects rather than building and operating a blockchain. 

Gavin Wood, a co-founder and former core developer of Ethereum, says the idea for Polkadot hit in early 2016 as he waited for Ethereum 2.0 sharding specifications to solidify. Wood left Ethereum in January 2016 and finished Polkadot’s first white paper draft by October of the same year. Polkadot’s initial October 2017 token sale accrued around $145 million.

Polkadot announced its first Proof of Concept and successful on-chain protocol upgrade in 2018. The proof-of-stake network officially launched in May 2020, leading Wood to remark how the project is the “biggest bet in this ecosystem against chain maximalism.” 

Polygon, formerly Matic Network, was started in 2017. The team writes about a vision to “help create a better, open world, primarily by improving Ethereum infrastructure.” 

Since 2017, the team has onboarded more than 80 applications, including Polymarket, Neon District, and Skyweaver, overall powering around 7 million transactions across 200,000 user addresses. 

Along the way, Matic Network implemented Mactic PoS Chain, a PoS-secured Ethereum sidechain and Matic Plasma Chains – a “production-ready Ethereum Layer2.” 

Upon the February 2021 rebrand to Polygon, the team explains in a blog post how the recrafted entity is “the first well-structured, easy-to-use platform for Ethereum scaling and infrastructure development.” 

Polygon SDK underpins Polygon. The flexible framework supports building secured (Layer 2 chains). The protocol is ideal for applications requiring high security and teams who find it challenging to establish a decentralized and secure validator pool. 

The SDK also supports the construction of stand-alone chains, offering a high level of independence and flexibility and the ability to partially inherit Ethereum security. 

Overall, Polygon “effectively transforms Ethereum into a full-fledged multi-chain solution.” 

Despite the rebrand, existing Matic solutions and implementations remain fully functional, according to the Polygon team. The team notes structures like Matic PoS Chain and Matic Plasma Chains will continue to be developed and grown as essential Polygon components. 

Polkadot & Polygon: Understanding Multi-Chain Functionality 

Matic and Polygon co-founder Sandeep Nailwal explains the new approach with Polygon incorporates a variety of mechanisms related to interoperability, like asynchronous messaging systems and a potential ‘overlay rollup’ combining Layer 2 platforms. 

A rollup-centric roadmap espoused by Polygon would involve layer-two solutions tethered by shards. Easy interoperability with Ethereum would greatly benefit dApps desiring easy composability and who are looking to scale. 

Gavin Wood explained in an interview how Polkadot’s interest is functioning as a meta protocol “with a lower level abstraction than Ethereum, i.e. smart contract level… that are much more about say, off-chain on-chain cooperation than interactions in a smart contract.”  

The upside with Polygon’s construction as an integral part of the Ethereum ecosystem is it is able to benefit from the network effects of Ethereum while reaping the rewards of the protocol’s inherent security. Polygon maintains the ability to incorporate any Ethereum (already the largest multi-chain system in the world) infrastructure or scaling solution. 

Looking At Second Layers As DeFi Continues To Boom 

Ether’s (ETH) value continues to grow as decentralized finance builds steam. The growing adoption of Layer 2 solutions opens up large amounts of space in the cryptocurrency ecosystem to improve applications and infrastructure. 

As Ethereum 2.0 remains far off (with Phase 1.5 already looking at a 12+ month timeline), projects like Polkadot and Polygon represent effective Layer 2 solutions to remedy Ethereum’s major stumbling blocks. 

When it comes down to a head-to-head comparison, Polygon’s multi-chain infrastructure and ability to fully benefit from Ethereum’s network effects rather than serving as a competing ecosystem gives the project significant upside in comparison to other systems.

 

 

 

Source: Bitcoinist News

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Crypto News Updates

Radix Teams Up With Industry Giants to Bring DeFi to 100 Million

Decentralized finance applications have seen massive growth in the last year, currently storing over 50x times more value than at the start of 2020. The DeFi journey may just be beginning, however, as Radix has partnered with several of the most prominent names in crypto to launch the Goodfi Alliance, a DeFi growth initiative. In collaboration with AAVE, Chainlink, Messari Capital, and mStable, the dynamic group will be working to get 100 million people worldwide to put at least $1 into DeFi applications within the next four years.


Power to the People – 100 Million of Them

Goodfi is a non-profit alliance created and launched by Radix, a layer one blockchain protocol tailored specifically for DeFi applications. Through this initiative, Goodfi hopes to further education, research, and usage in a field that has the opportunity to empower millions directly. Decentralized finance allows for permissionless, borderless, and simple access to financial markets, something previously inaccessible to vast swathes of society. DeFi goes further, enabling the opportunity to lend or receive a loan, deposit assets to gain interest, take out or supply insurance, and stake digital assets to generate yield.

All of these possibilities are accessible with a smartphone and internet access, with both becoming cheaper and more accessible, especially in areas that are traditionally considered the most financially excluded. For many, DeFi will be their first access to financial services, as billions of people remain unbanked due to misaligned corporate incentives. This will provide them with vital services that will give them the opportunity to preserve their wealth against inflation and generate passive income through financial transactions.

How Goodfi Will Accomplish Its Goals

The teams behind the Goodfi Alliance understand that many hurdles currently prevent average users from accessing DeFi services, but they plan to tackle this problem head-on. Goodfi will focus on education, research, and awareness in order to promote DeFi to a wider user base. Goodfi and its members understand that users need assistance when buying their first digital assets and using dApps, so they will produce educational content that is agnostic to any particular chain, explaining the DeFi process as a whole. They will also create additional material so users can better understand the risks and opportunities that DeFi presents, as well as how to navigate the ecosystem more generally.

Many people reading this will have years of experience in the cryptocurrency space, putting them lightyears ahead of those who have never even heard the term ‘decentralized finance’ before. Better research will also better DeFine, as well as challenge, the assumptions currently surrounding the DeFi economy.

The final aspect of Goodfi’s data dissemination strategy is promoting widespread awareness. Retail investors involved in traditional markets were recently rocked by a potential conspiracy involving wealthy hedge funds and centralized market operators, instantly making the case for DeFi. More people need to understand that there is a non-manipulatable alternative that is readily accessible in DeFi, allowing for equal opportunities regardless of status or wealth. Goodfi plans to promote the industry and attract a broader user base from all spheres and sectors.

Room to Grow

This is just the beginning for Goodfi, with more companies and organizations poised to join in as they realize their shared objectives in the space. With plentiful resources contributed in the form of time and money, and the focus on active efforts from all participating and future companies, Goodfi has a lot of gas in its engine. They plan to grow, which will involve gaining a better understanding of these applications’ target audiences and highlighting the importance of learning about and using DeFi applications.


Disclaimer: The information presented here does not constitute investment advice or an offer to invest. The statements, views, and opinions expressed in this article are solely those of the author/company and do not represent those of Bitcoinist. We strongly advise our readers to DYOR before investing in any cryptocurrency, blockchain project, or ICO, particularly those that guarantee profits. Furthermore, Bitcoinist does not guarantee or imply that the cryptocurrencies or projects published are legal in any specific reader’s location. It is the reader’s responsibility to know the laws regarding cryptocurrencies and ICOs in his or her country.

Source: Bitcoinist News

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Crypto News Updates

The Dark Side of Ethereum

For the last six years, Ethereum has dominated the smart contract landscape and has been arguably the only viable platform for launching decentralized applications (dApps) — due to its sizeable developer community and first-mover advantage.

But in the last year, Ethereum’s limitations have begun to show, leading to an exodus of sorts among its once fervent developer community. Here, we take a look at three of the main reasons why developers are migrating from Ethereum to alternative platforms.


The Fees Are A Major Barrier

If you’ve used Ethereum more than a few times recently, then you may be aware that it has been experiencing something of a gas price pandemic in the last few months.

As decentralized finance (DeFi) and stablecoin usage on the platform have skyrocketed in the last year, so too has the average Ethereum transaction fee — which recently reached over $25 a pop and potentially several times higher when invoking a smart contract function.

Ethereum gas fees are becoming a serious bottleneck to growth. (Image: fees.wtf)

Understandably, developers are generally trying to build platforms and applications that are accessible to a wide audience — not just those that can stomach a $25+ fee with each transaction.

As a technology designed to empower the many, rather than the few, these high transaction fees are posing a significant barrier to entry for users looking to interact with dApps.

To circumvent this problem, developers are now migrating to more advanced platforms with much lower fees. Arguably the most prominent of these is Metaverse, a platform that uses a hybrid consensus system to keep fees down to a bare minimum while remaining speedy.

Metaverse’s compatibility with the Ethereum Virtual Machine (EVM) is another major reason why solidity developers are jumping ship in preparation for the release of the hyperspace mainnet.

Interoperability Is On the Agenda

Right now, interoperability is a buzzword in the crypto space. As more projects begin to realize the merits of producing cross-chain applications, there has been a major push to develop bridges between blockchains — helping to provide a seamless experience across blockchains and power a new wave of interoperable applications.

Though Ethereum has seen some improvement in this area, with the development of numerous token wrapping protocols, layer 2 swapping platforms, and bridges, it still offers only limited interoperability with other blockchains.

But with true interoperability promising to bring assets from one blockchain to any other, and enabling new, ever more powerful decentralized applications and use cases, developers have begun taking matters into their own hands — by adopting platforms built with interoperability at the core.

In recent weeks, the substrate-powered Polkadot blockchain has emerged as a major focus for these developers — as its novel relay chain and bridge technology make it easy to build cross-chain applications without enforcing uniformity across blockchains.

Likewise, platforms like Metaverse and Binance Smart Chain have also seen an influx of developers looking to build interoperable applications due to their advanced interoperability capabilities.

Doubling Down on Efficiency

Several years after Bitcoin launched, something became painfully obvious — though massively secure, Bitcoin’s consensus mechanism was also incredibly wasteful when it comes to energy usage.

Though this wasn’t a major problem in its early days, when the Bitcoin mining network was small, it has become increasingly problematic in recent years, as its energy usage (and hence its effect on the environment) now rivals that of a small country.

Ethereum isn’t much different. With one of the most extensive proof-of-work (PoW) mining networks currently operating, Ethereum requires an incredible amount of energy to maintain the security of its network. And although Ethereum 2.0 is set to resolve this with its transition to a mixed proof-of-stake and proof-of-work consensus system, it has been a long time coming — and it’s still not ready.

But developers generally don’t have the time to wait around. Because of this, they have begun looking for more efficient alternatives.

Generally, this search leads them to one of the numerous proof-of-stake blockchains, which are able to achieve consensus by using a network of validators — which consume far less energy but achieve similar levels of security.

Platforms built on Parity Technologies’ substrate technology are currently garnering much of this attention, due to the possibility of combining the security of proof-of-work with the efficiency of proof-of-stake in a hybrid consensus mechanism.

 

Source: Bitcoinist News