What is tether used for?

Tether

7 min reading

Heard about Tether before? Here is vital information for you.

WHAT IS TETHER USED FOR?

History

Introduced in 2014 by Tether limited, Tether corresponds to the value of the dollar. The main idea of the company was to create a stable cryptocurrency that could be used as the equivalent of the US dollar. Tether is a cryptocurrency, based on blockchain technology. Also, it is backed by an equivalent amount of traditional fiat currencies such as the Dollar, Euro, and Japanese yen. Tether is backed by fiat currency as 1 USD is equivalent to 1 USDT. This currency belongs to a type of cryptocurrency called stablecoins that aim to keep the cryptocurrencies stable.

Technical features

The majority of Tether operates on the Ethereum blockchain and is backed by physical reserves whose value is equal to or greater than the amount of issued cryptocurrency. Since cryptocurrencies are highly volatile, they can be exchanged for a USDT making the equivalence identical to avoid the risk of losing the value of a bitcoin, for example. Important to note that Tether was specifically developed to fill the gap between fiat currencies and cryptocurrencies in order to offer stability, transparency, and low transaction fees.

Moreover, Tether was the first stablecoin to gain a foothold in the cryptocurrency industry. Interesting fact: its original name was Realcoin before it was later changed to USDT. Stablecoin’s potential has grown significantly since its inception, allowing Tether to quickly climb the ranks.

How does it work?

As mentioned above, Tether holds fiat currencies in reserve in an amount equivalent to a U.S. dollar in circulation. Therefore, Tether eliminates the complexity of auditing fiat currency and cryptocurrency and does not affect the transparency or security of the audit. More so, Tether works as a relay between fiat and cryptocurrencies. For instance, some exchanges do not accept some cryptocurrencies but have the option where users could use USDT for transactions.

In addition, USDT is used at different points and for different reasons like easy market accessibility. When the price of a cryptocurrency is declining, it is much easier to use USDT to trade rather than cash out the available cryptocurrency and users can also move their funds quickly between different exchanges. Using USDT gives you access to cryptocurrency exchanges that do not accept cash payments meaning users can purchase the required USDT and then trade in crypto.

Benefits of using Tether

Tether transactions take place within minutes and are beneficial to everyone, including traders who want to trade instantly.

Since other cryptocurrencies are known to be very volatile, many exchange platforms are switching to use Tether as their currency of exchange. Express transactions are usually very expensive and commissions can be very high when you exchange crypto to fiat currencies. But transfers between Tether wallets involve no fees.

Investing in USDT is as easy as buying other cryptocurrencies. You will need to create a wallet where your crypto-currencies will be stored. However, the demand for the asset is growing steadily and shows no signs of slowing down.
Role of Tether

Given the fluctuation in prices in the crypto market, traders tend to either make a profit or lose. However, tether acts as an exit strategy in that when there is a change in the crypto market either in favor of bull or bear traders, crypto traders have the tendency of either selling the coins they have for-profit or incur the loss that comes with them. Tether provides an option where instead of a trader losing, he can convert his cryptocurrency to Tether and avoid the fees and volatility.

Also, Tether facilitates payments especially for companies that take payments in cryptocurrency. payments done in cryptocurrency are sometimes challenging because of their volatility. Knowing its exact exchange value was somewhat difficult given its high volatility. Tether, however, eliminates this because its exchange rate is equivalent to its fiat counterparts.

However, it is worth noting that Tether also plays the role of a transit cryptocurrency because it can convert real cash to digital cash. It is certain that converting cryptocurrency to fiat currency is not really easy. This is because not all countries have welcomed cryptocurrency as a medium of exchange and purchase. The use of USDT will be a wonderful alternative since it can easily be converted to US dollars before converting to any other currency.

Conclusions

6 min reading

Airdrop

Have you ever wondered how new cryptocurrencies attract traders to their network? Let’s consider it together.

July 21, 2021December 6, 2021

Cold Storage

5 min reading

Ever thought about how crypto assets are stored. Interesting, isn’t it? Find vital information in this article.

Cold Storage

Crypto wallet

A cryptocurrency wallet is an app that allows users to store and retrieve their digital assets, just like a traditional bank. The difference is that you don’t need to spend the money in your digital wallet, but it allows you to store it in one place. Digital currency can be stored in a cryptocurrency wallet for other transactions. There are two types of wallets. Hot wallets and cold wallets. We’ll talk about cold storage. Cold storage is an offline wallet used to store bitcoins and because it is offline, it is protected from unauthorized access, cyber hacks, and vulnerabilities. Understanding cold storage is fairly simple. Let’s start by looking at the drawbacks of a digital wallet. With traditional banking, when a savings account is tampered with, the bank is able to refund the money to the account holder.

But with a crypto-currency wallet, if the coins in it are tampered with, there is no way to get them back due to the decentralized nature of digital currencies. This is a bit risky as everything can be lost in one go due to the lack of offline backup.

How transaction is conducted

A transaction normally involves two people, a private key and a public key. Both parties will have to share their public keys in order to complete the transaction. Once everything necessary to complete the transaction has been done, and the payment has been delivered to the appropriate address, the seller can only access the funds using a private key. If the private key is lost, the user’s coin could be accessed without authorization.

In addition, private keys solve the problem of signing transactions with private keys in an offline environment. Here’s how it works. Once a transaction has been initiated online, it is temporarily transferred to an online wallet and then stored on a device. A paper wallet is used for offline transactions. This is a document on which public and private keys are written. The paper wallet is then printed with an offline printer. It also has a QR code that can easily be scanned and signed to complete a transaction.

The downside of this method is that if the paper is lost, the user may never have access to the address where the funds are stored.

The examples of Cold storage:

Ledger Nano S is a cryptocurrency hardware wallet that supports a variety of coins like Monero, Binance, ERC-20 tokens, and a lot more. It was introduced in 2016 and is called the original hardware wallet. Nano integrates a secure chip and allows users to store other applications. When the wallet is initially set up, a seed will be generated which will be used to generate every key that will be used on the device. During the setup process, a 24-word password is given which you will have to write down and keep safely. In case you lose the key, you can use the password to access your funds. Note that this mnemonic code will be displayed only once on your hardware wallet screen, not the desktop screen for fear that it could be hacked. The disadvantage with this cold wallet could only be found in the physical looks, like the buttons being too small and the fact that it does not have the Bluetooth option.

Ledger Nano X, still one of Ledger’s creations, is a second-generation hardware wallet. It is quite similar to the ledger Nano S. They have the same interface yet they differ in that Nano X has been designed for mobile use as opposed to Nano S. The integration of the Bluetooth app enables it to be used wireless via smartphones. However, this Bluetooth integration could be a threat to the wallet because it can become a potential vector for cyber attacks.

The advantage of cold storage is that you have coins with you wherever you go. The device is compact, which allows for convenience and discretion. It is important to remember that, regardless of the type of “cold” wallet selected, it is imperative to make and keep separate backups of wallets and all important data, so that there is always an opportunity to restore them on different media.

In conclusion, with cold storage, coins can be easily retrieved and found in case of a hack. Hot wallets on its part, though they can be easily accessible over the internet for rapid transactions, could be subject to attacks like cyber-attacks for fear that they could be hacked. the reason why it is always preferable to keep just a small amount for online emergency transactions. Note that hot wallet applications are downloadable and are also not directly linked to any particular exchange platforms. This allows you to have access to your private keys as well as cryptocurrency assets.

Conclusions

5 min reading

STOP LOSS

Discover how to prevent possible losses on the crypto market.

July 21, 2021December 6, 2021

Airdrop

6 min reading

Have you ever wondered how new cryptocurrencies attract traders to their network? Let’s consider it together.

Airdrop

Every company has a marketing strategy that it usually applies to retain its customers. Some companies go as far as asking influencers to give their product a positive review because when this is done, it increases sales of a company’s product. That said, an airdrop is a form of crypto-currency marketing in itself. How does it work? This and many other aspects will be explained in this article.

What is an airdrop?

Airdrop is a marketing strategy of sending coins to wallets for promotional purposes, carried out by blockchain-based startups, with the aim of priming their virtual currency. It is also a practice whereby holders of an existing crypto-currency receive free tokens as a reward. Loyal customers are rewarded simply for staying subscribed to a particular blockchain platform. This is simply a marketing strategy to spread the word about the existing token or coin.

How to participate in the airdrop?

However, before receiving an airdrop, the recipient must qualify. That’s quite simple, the recipient will have to hold a minimum amount of crypto-currencies in their wallet. In addition, he or she may also be required to perform certain tasks such as posting on social media platforms about the said currency as well as connecting with a particular member of the blockchain project.

Note that a legitimate crypto airdrop does not require any capital investment. Therefore, anyone wishing to receive an airdrop should be wary of pump-and-dump schemes, a system that attempts to drive up the price of a stock through false recommendations and hyperbolic statements.

Advantages and disadvantages of the airdrops

As mentioned earlier, a legitimate drop never seeks a capital investment. However, users should be vigilant when unsolicited deposits are made into their crypto-currency wallets, as some scams involve sending micro amounts of crypto-currencies to unsuspecting recipients. As it is often said, everything has an advantage and a disadvantage and Airdrop is no exception. The pros and cons of Airdrop are as follows. All you have to do is perform a small task and the recipient gets a free token. Who on earth won’t like receiving this since crypto-currencies are volatile, the value of the crypto-currency will increase over time.

Second, launching an initial coin offering (ICO) seems very expensive. Initial Coin Offering is the issue of a project of coupons, or tokens, intended to pay for the site’s services in the future – in the form of cryptocurrency. Or in other words, it is another implementation of the crowdfunding model, when participants finance the development of a company now in order to get some benefits from it in the future.

With the advent of airdrops, it is easier to advertise coins. Thus, with the use of campaigns, the crypto-currency is able to attract the attention of the community and these projects are featured on a majority of social media platforms. As for the downside of airdrops, scammers can use them to obtain the private keys of the recipients and before they know it, they are robbed of their funds. Any legitimate airdrop does not ask for the private key of the recipient’s public key.

For example, in September 2020, the decentralized exchange Uniswap issued UNI tokens and distributed some of them to users. As a result, eight traders received from 95 thousand to 245 thousand coins. At the rate of the asset at the time, it was from $250 thousand to $750 thousand. About 50 people received from 10 thousand to 95 thousand coins, that is, $25 to 250 thousand. Other well-known Airdrop projects are Simdaq, Ontology (ONT), 1inch, HYDRO, Seda, Bittube, SwissBorg, Okex, Brave, and many others.

In addition, investors who receive airdrops tend to sell these tokens. This is not beneficial for the crypto-currency because when these tokens are sold, the price of the token tends to drop significantly. In a nutshell, airdrops are benefits that recipients receive and despite the fact that free funds are good, it is however advisable to always double-check the project behind each airdrop just to be sure of its authenticity.

Conclusions

5 min reading

BUY CRYPTO

Discover how to buy some crypto assets with our article

July 21, 2021December 6, 2021

What are Blockchain Oracles?

6 min reading

What are Blockchain oracles and how do they work? Keep reading and learn lots of useful information about it.

What are Blockchain Oracles?

Introduction

You must have certainly heard and read about blockchains and it seems like you’ve already heard the last word and then now you hear about Blockchain Oracles. That’s what’s interesting about crypto-currencies. You learn about exciting developments in the crypto-currency market every day. In this article, we will talk about Blockchain Oracles and how they work. A blockchain is a technology that allows a collective group of participants to share data.

Blockchain and oracles

Remember that the blockchain is to bitcoin what the internet is to email. It stores information in a way that makes it impossible to alter or mislead the system. The data is divided into blocks and chained together with unique identifiers. But a Blockchain oracle is a device that connects the blockchain with data outside the blockchain. Since blockchains and smart contracts cannot access data outside the network, blockchain oracles provide smart contracts with external information. In summary, blockchain oracles provide information of the external world to execute the agreement.

Since the blockchain has distributed data in which each node in the network must be able to provide the same results from the same input, and when one node seeks to validate a transaction that another node has performed, it would get a different result. This is where the blockchain’s oracles come in, which link data on the blockchain to data of the blockchain.

Oracles are very important because they expand the scope of smart contracts. Without blockchain oracles, smart contracts will be limited because they will only have information within their network. Remember, oracles are not data as one might assume, but only pose queries, verify and authenticate external data sources, and then relay the resulting information. Oracles relay information such as prices and payment success.

How oracles function

Here is a very simple example of how oracles work. Let’s say Hayley and Savanna are making a bet to see who will take the winner of this week’s Shopping Queens. From the contestants, they each pick one.

They agree on an amount and place the funds into a smart contract that will release the funds to the winner based on the outcome. Since smart contracts cannot access information outside of their network, they will have to depend on the blockchain oracle to get the information they need. At the end of the week, the oracle queries an API (application programming interface) to find out who actually won, so it can pass the funds on to the winner. Without the oracle, it would not have been possible to settle the wager without one of them ahead of the other. The different types of oracles are: Software and hardware Oracles, Inbound and outbound Oracles, Centralized and decentralized Oracles, Human Oracles, and Contract-specific Oracles.

Oracle Networks. Chainlink (LINK)

Chainlink network is an oracle network that leads decentralised oracle solutions with large DeFi projects relying on its data. It comprises independent node operators that gather and deliver information to middleware applications. This middleware combines the data collected into a single output and sends out to the blockchains to be read by smart contracts depending on them. Chainlink is widely used by Ethereum based apps and its core software can be adapted to connect with any blockchain.

Band Protocol

This is a secure scalable blockchain-agnostic that connects real world data and API smart contracts.In a world where data is priceless, Band Protocol fills the role of providing verifiable data to these decentralized apps and smart contracts. Band connects on-chain data to off-chain and makes data available for blockchain query. Band protocol was created because it needed to fill the gap of cross-chain communication. Blockchains were unable to share data with smart contracts.

In conclusion, having a reliable mechanism that ensures communication between smart contracts and the outside world is very interesting; however, despite this advantage, it also has its drawbacks. One of them is the fact that they are not part of the security mechanisms set aside by public blockchains. The third-party issue could be a flaw since hackers can gain access to the data stream through these oracles. However, blockchain oracles will have to be one of the building blocks to be implemented in a secure, reliable, and trustless manner for the blockchain ecosystem to grow.

Conclusions

5 min reading

ARE BLOCKCHAINS SECURE?

Using blockchain technology, you wonder how safe this technology is. Let's find the answer.

July 21, 2021December 6, 2021

Scarcity for cryptos

scarcity for cryptos

6 min reading

Are you therefore a newbie in the crypto world, why not sit back while we widen your understanding through this article.

Why are we talking about scarcity for cryptos?

What is scarcity?

According to the Oxford dictionary, scarcity is defined as the state of being in shortage of supply whatsoever. In the first instance, one would quickly think of lack or inadequacy. But with cryptocurrency, scarcity is not equal to lack. Are you therefore a newbie in the crypto world, why not sit back while we widen your understanding through this article.

Scarcity and cryptocurrency

There is some evidence that there is a correlation between scarcity and price. Cryptocurrency is in short supply when demand exceeds available supply. The scarcity of cryptocurrency is not due to its finite nature but to its potentially endless demand. Note that scarcity is not unique to cryptocurrencies as all assets are lacking. If there is no deficit, then there is no price either. Anything that has a price is rare.

Things anyone can have are free, even if they have objective value to people. This is due to the number of digital coins in circulation. One of the main drivers of cryptocurrency supply is the interaction between supply and demand in the cryptocurrency market.

The demand for cryptocurrency is primarily driven by its value as a medium of exchange, and the supply is determined by the supply of a cryptocurrency in circulation, which is known and predetermined in the long term.

What is price and how it is formed?

Thus, price is the mechanism by which markets balance supply and demand for rare items. When demand is high, the price increases until the demand decreases enough for the supply to be sufficient. Conversely, when the supply of a product exceeds demand, its price automatically drops until demand rises to absorb the excess. It is also impossible to conclude that there is a shortage of a product if there is no demand for it, regardless of its price.

Supply and demand

Like any asset, a cryptocurrency is considered in short supply when the demand for that commodity exceeds the available supply. When demand falls, it cannot be said that a cryptocurrency is in short supply, even if there is no demand for a certain period. However, cryptocurrency supply algorithms affect the price because they prevent supply from meeting demand.

Bitcoin scarcity

For example, Bitcoin price drops from $100 to $20. With this drastic drop in the price, we will notice that many traders will want to purchase more Bitcoins in the future. However, BTC owners will not want to sell their coins because for them it is a huge loss. They then keep their Bitcoin anticipating that eventually, the price will go up. During this period where traders want to buy and Bitcoin owners do not want to sell, we say that there is scarcity. Scarcity does not outrightly mean that there are no coins available but it’s simply because the price at which the digital currency is sold does not favor the asset owners.

Hence, cryptocurrencies are likely to evolve not because of their scarcity, but because of their inflexibility. As the market size increases, prices are also likely to fluctuate, becoming less frequent but much higher. As long as cryptocurrencies remain inelastic, their prices are subject to change without prior notice. However, you will be interested to know that cryptocurrencies have a unique quality that no other currency has, namely the almost perfect inelasticity of supply. This means that no matter how great the demand is, cryptocurrencies will always be mined at the same rate.

In conclusion, cryptocurrency cannot be said to be scarce, it is only volatile due to its inflexibility. As the size of the market increases, there is an increase in the demand for cryptocurrencies and because of this, we find that the prices begin to fluctuate. Having a static price for a cryptocoin does not solve the issue because cryptocurrency in its nature is volatile.

Conclusions

6 min reading

BITCOIN HALVING

It's the right time to learn more about halving and its main purpose.

July 21, 2021December 6, 2021

What is Bitcoin halving?

Bitcoin halving

6 min reading

It's the right time to learn more about halving and its main purpose.

What is Bitcoin halving?

Halving is a bisecting of the remuneration paid to miners for adding a new block to the Blockchain. At the moment, each new block brought 12,5 Bitcoins to the miner. Each new block is lined up in a chain with the previous blocks. Hence a distributed ledger is called Blockchain. Each block contains information about all transactions that were processed in a 10-minute period of time, including the hash of transactions, amounts, and addresses of wallets from which and where Bitcoins were transferred.

Halving or halvening? How is it correct?

Both terms refer to the same process. The original name is halving, but sometimes the word “halvening” (as an alias) is used instead. It was created as a result of the words “to halve” and “to happen”.

The main purpose of halving

The main task of halving is to control cryptocurrency, prevent inflation, stimulate the growth of the Bitcoin exchange rate and provide time for development. In 2012, the first halving was held. The creator of Ethereum Vitalik Buterin explained why it is necessary and compared Bitcoin with gold: “The world’s gold reserves are limited, and with every produced gram, it becomes more and more difficult to get the remaining gold.

Because of this limited supply, gold has maintained the international medium value of exchange and saving for more than six thousand years, and it is hoped that bitcoin will do the same.”

Advantages and disadvantages of halving

It is believed that halving has a few positive effects on the network. This process extends the reward system life. It also creates a shortage, which increases the cost of coins, and we perfectly know that the less BTC is produced for a certain period of time, the more expensive they are. It is worth noting that halving increases revenue twice for the production of each Bitcoin. The more complex the network is, the lower the reward and the more expensive the mining becomes. However, there are some disadvantages of halving. The most significant of them is when a lot of miners lose interest in the currency, considering it unprofitable. Today, we can observe a trend that only large organizations can make a profit from mining. Despite the facts, halving has already occurred twice in bitcoin history. Fortunately, it did not bring any bad consequences.

Conclusion

However, halving is considered to be one of the key innovative ideas that allowed Bitcoin to reach its current level of development. It clearly demonstrated the absence of the need for a centralized authority to control the issue and distribution of money. Halving prevents inflation and supports cryptocurrency functioning for a long time. At the same time, it is considered one of the most important factors that determines the growth of the BTC price in the market. Besides, halving is stressful for miners, as new investments in equipment are needed with the development of the cryptocurrency.

Conclusions

7 min reading

THE ENVIRONMENTAL IMPACT OF CRYPTOS

Crypto-currencies are becoming more popular each day. However, what impact does it have on the environment?

July 21, 2021December 6, 2021

The environmental impact of cryptos

the environmental impact of cryptos

7 min reading

Crypto-currencies are becoming more popular each day. However, what impact does it have on the environment?

Is the environmental impact of cryptos really harsher than that of the functioning of the banking system?

Introduction

Cryptocurrencies, although new to the world, have evolved over the years into an industry that has impacted the entire world. The introduction of cryptocurrencies as a medium of exchange, allowing people to have complete control over their assets and wealth, is, in a sense, a threat to our traditional centralized banks. Despite massive growth in the digital industry, there have been some concerns about the environmental impact of cryptocurrency mining.

Facts about mining

The computers used to mine cryptocurrency must be powerful enough to solve complex math problems, but too complex to be solved manually. The number of bitcoins issued is halved every four years, which over time makes the currency more valuable, but more expensive and more durable for miners, which affects its energy consumption.

If you are considering the mining process, for example, mining bitcoin requires a lot more energy than producing billions of Visa cards. The energy required to mine BTC is equal to the energy required to launch a Boeing 747.

Another issue is related to ASIC devices, e-waste that becomes obsolete after two years and cannot be used for any purpose other than mining. Until now, the method of burning coal and fossil fuels has been used to generate electricity. However, burning coal has had a significant impact on climate change. On the other hand, if we consider traditional banking systems, the energy supplied by the utilities is sufficient to carry out all the necessary operations. It follows from this analysis that traditional banking systems do not consume as much energy as cryptocurrencies.

Statistics

According to the analytical platform Digiconomist, the amount of electricity required for mining is comparable to what an entire country consumes in a year. Mining generates 36.95 megatons of carbon dioxide per year, roughly the same as in New Zealand. The carbon dioxide emissions that accompany electricity production, in turn, increase the greenhouse effect on the planet.

What studies say about mining

Bitcoin mining and its connection to the environment is a topic of global university interest. Cambridge conducted a study in which they found the amount of energy that is spent each year to generate the cryptocurrency. The results showed that even some countries use less electricity per year. The mining equipment is very powerful, so it wastes a lot of energy. The researchers found that the number of terawatt-hours for mining is about 121.36. Even Argentina and the Netherlands use less electricity per year than goes into mining bitcoin. Norway came close to cryptocurrency in terms of energy consumption. Bitcoin proponents claim that mining is increasingly using electricity from renewable sources because it is becoming cheaper and uses much less energy than other sources.

However, despite the put forward reasons why cryptocurrency mining is harmful to the environment, these claims have been counter-analyzed. Miners have highlighted new strategies to reduce the dependence of mining operations on massive amounts of energy. We cannot conclude to a large extent that cryptocurrencies have a negative effect on the environment. Just as it was mentioned earlier, electricity is one of the setbacks of cryptocurrency that has found a mode for equilibrium. The fact that there are miners and the great financial benefits which come with crypto mining does not cloud the miner’s sense of judgment. That is why miners will always locate countries where electricity is comparably cheap thus reducing the impact it will have on the entire public.

Network performance

To determine the exact power consumption of cryptocurrencies, the researchers used interviews and surveys and performed calculations based on network performance. Digiconomists also rely on the amount of electricity bills. Determining the number of greenhouse gas emissions from the production of cryptocurrencies is not entirely easy, given that their amount changes daily and cannot be tracked. In conclusion, despite these points, the effectiveness of cryptocurrency payments and their ability to help people avoid inflation outweighs their environmental performance. The issue raised about the harmful nature of the mining process to the environment, miners have resorted to going to open space far away from the population in order to avoid mishaps.

Conclusions

5 min reading

Can I mine myself?

Don’t want to trade or invest? Discover if mining crypto by yourself is profitable!

May 5, 2021December 8, 2021

Can i mine myself ?

Can I mine by myself?

5 min reading

Don’t want to trade or invest? Discover if mining crypto by yourself is profitable!

Can I mine by myself?

The mining of cryptocurrency gets more popular because of the development of the technology industry. As mining allows getting coin rewards, crypto enthusiasts are interested in the facilities required and how to become a cryptocurrency miner. The article is dedicated to the mining problems, gives an answer to whether mining is profitable and what is needed for it.

What is cryptocurrency mining?

Mining is the process of producing new digital coins that require powerful computer equipment. Since many cryptocurrencies are based on blockchain technology, miners around the world maintain the system and generate new blocks of digital assets by validating transactions. For example, to get a block of bitcoins, a miner must do complex mathematical calculations with processing power, combine transactions into blocks and add them to the blockchain.

It is important to know that the reward will be received only if you are the first miner to make the calculation. The information in the block is decoded by the selection method. It requires colossal computing power. So far, solo mining of bitcoins is hardly possible because the generation of digital currency has become too difficult. Also, the halving of bitcoin happens every 4 years and makes mining more complex by reducing the reward per block. Thus, miners cooperate and form a mining pool. They also distribute their computing power and share tasks. Collaboration in pools for mining increases the chances of finding a block and getting a reward, which will then be divided among all the participants of the server.

What is needed for mining

Nevertheless, cryptocurrency mining is still possible and profitable when it comes to younger and less popular currencies such as Gridcoin or Dogecoin. If you want to try your hand as a miner, it’s time to know what you need to do. The most popular coins are now obtained using video cards (GPU mining) or special devices (ASIC). In the early days of the cryptocurrency market, CPU-based mining was popular and widely used. On the other hand, the graphics processor (GPU) can handle much more complex mining tasks than the CPU.

Considering the price of GPUs, upgrading your equipment is advisable when you become a more experienced miner. After that, ASIC (Application-specific integrated circuit) is a good investment, given that the more powerful the hardware, the higher the chance of getting a reward per unit. On the other hand, the complexity of algorithms is increasing and specialized equipment is becoming obsolete. Thus, the technical equipment needs to be constantly updated.

Now let’s talk about the cryptocurrencies that can be mined using such equipment. Bytecoin, this cryptocurrency is based on the CryptoNote protocol, providing it with anonymous transactions. Bytecoin is ASIC-mining resistant, so it can only be mined using a standard computer’s central processing unit (CPU) or graphics card. Monero (XMR/USD), this cryptocurrency is highly valued for its transaction anonymity. It is based on CryptoNote and is ASIC-mining resistant, so it can be mined on a regular computer. Ethereum is a decentralized computing platform with support for smart contracts and is mined using GPUs. Electronium – compared with others, it is a completely new cryptocurrency. Electroneum is based on an advanced version of the CryptoNote algorithm and is resistant to ASIC mining. Zencash (ZEN) is a cryptocurrency based on the Zcash zero-disclosure protocol. It can be mined on a CPU or GPU. Webchain (WEB) is a cryptocurrency based on the CryptoNight PoW consensus algorithm. This makes WEB resistant to mining on ASIC chips. Dogecoin is based on the Scrypt hashing algorithm, so it can be mined on ASIC equipment.

However, regardless of the mining method, it is important to assess its profitability. In order to make the necessary calculations, you will need to figure out the hash rate of your mining device and conclude whether the rewards will cover your initial and monthly expenses. There are several services and platforms that provide all the necessary information. If you are satisfied with the result, start mining cryptocurrency.

Conclusions

6 min reading

Invest savings in Bitcoin

You want to increase your savings with cryptocurrency? How to do it and not to lose money? We will help you to understand it.

May 5, 2021December 6, 2021

What information circulates through the nodes ?

Information through the nodes

5 min reading

You are already familiar with cryptocurrencies, but what are nodes, and what information circulates through them?

What information circulates through the nodes?

Nodes and their types

After you have installed the wallet on your computer, it starts synchronizing with the entire blockchain network. A node is a computer that is connected to a blockchain network. The blockchain system is built on the P2P (peer-to-peer) protocol, where all network nodes are equal. Depending on the type of node, it can be a full node, mining node, masternode, lightweight SPV node. They all use the same consensus protocol to stay compatible with each other.

The type of node determines whether it can store only a part of or all of the blockchain data. A full node is a computer that is connected to the network 24/7 and is fully synchronized with it. Full nodes also store a separate copy of the blockchain on the hard disk, which is regularly updated using special software. These nodes guarantee the viability of the cryptocurrency network by participating in the processing of transactions and relaying data in the ecosystem.

Functions of nodes

It stores all blockchain data: information about the network checks whether new transactions comply with all the rules, confirms or rejects them when trying to include a transaction in a new miner block. Full nodes work for free. Nodes are the backbone of every blockchain. Not a single pairing network can do without full nodes. Since it is they who keep all full copies of the ledger and, when synchronized with each other, update all the data.

Nodes and blockchain

The blockchain as a whole can be implemented by a single node, but since it will be stored on a single device, it will be extremely vulnerable to situations such as power outages, hacker attacks, or system failures. The more full nodes are running on the blockchain, the better their ability to recover in such situations. Even if the majority of the nodes are lost, one node is able to keep the whole chain of blocks in working order. Even if all the nodes are disabled, only one node with the complete history of the blockchain is needed to go online and return all the data.

However, while nodes are not a means of obtaining cryptocurrency, are an obligatory part of the system. By connecting to the network, the user gains access to the nodes through which transactions take place. Answering the question of what information circulates through the nodes, we can say that it is a protocol that enables the exchange of information and the transfer of blocks.

Conclusions

5 min reading

Nodes

Discover what are nodes in terms of crypto-currency mining!

May 5, 2021December 6, 2021

Are blockchains secure ?

Are blockchains secure?

5 min reading

Using blockchain technology, you wonder how safe this technology is. Let's find the answer.

Are blockchains secure?

With the popularity of cryptocurrency, interest in blockchain grew. Thus, distributed ledger technology that is blockchain began to be used in multiple areas such as the IT industry, banks, and government. These are the areas where safety is very important. Blockchain is a technology that processes, stores information, and identifies the customer.

This leads to the question: how safe blockchain technology really is?

In order to answer this, you would need to understand basic concepts and mechanisms that provide reliable protection. Hence, there are two important functions that play an important role in the security of the blockchain system.

Consensus and immutability

Consensus reconciles the true state of the network and the validity of transactions. Immutability is characterized by the fact that the blockchain prevents the modification of transactions that have already been confirmed. As a result, these two functions provide the foundation for data security. Data is protected by isolation, encryption, and authentication. Due to decentralization and immutability, the security level of the blockchain is very high.

Security

Another very important role in the preservation and security of data is provided by cryptography. Hashing is very important in cryptography. A hash is a set of symbols that carry a unique imprint. It is formed on the basis of transactions and the quantity of each block of stores. When a transaction is processed, the hashes are constantly checked and according to the pyramid principle the check is carried out until the last hash, and then the integrity and correctness of all data is confirmed so that the block would be closed.

Thus if someone illegally wants to take possession of funds and tries to change something, then the transaction will be invalid. And, the blockchain will recheck everything. Therefore, the network consists of blocks that cannot be changed if they are closed. Maintaining a network requires the continuous and uninterrupted operation of several powerful computers. Blockchain has the most computing engagement on the planet today.

Decentralized blockchain

The data storage system in the blockchain is decentralized. So, this means that the data is saved on all computers of the network participants. If someone wants to hack that data, then such a hack has to be done on all computers.

However, the entire system is completely decentralized and does not have control nodes. Every day more and more such nodes are formed, and the chances of hacking are constantly being reduced. As a result, the more people use blockchain, the more powerful and secure it becomes. In conclusion, it’s safe to say that Blockchain offers very high-level security standards if implemented properly.

Conclusions

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