Category and versionsubmitted by Ill_Preparation_2814 to u/Ill_Preparation_2814 [link] [comments]
The Blockchain system is divided into 3 main categories:
Public: Anyone has the right to read and write data on Blockchain. The process of validating transactions on this Blockchain requires thousands or tens of thousands of nodes. Therefore, to attack this Blockchain system is impossible because the cost is quite high. For example: Bitcoin, Ethereum ...
Private: User is only allowed to read data, not write because this belongs to an absolutely trusted third party. This organization may or may not allow users to read data under certain circumstances. The third party has the sole discretion to decide any changes on the Blockchain. Since this is a Private Blockchain, the transaction confirmation time is quite fast because only a small number of devices are required to validate the transaction. For example, Ripple is a Private Blockchain, this system allows 20% of the nodes to be fraudulent and only the remaining 80% to operate stably.
Permissioned: Also known as Consortium, a form of Private but adds a certain number of features, combining "belief" when participating in Public and "absolute trust" when participating in Private. For example: Banks or joint venture financial institutions will use Blockchain for themselves. I believe this site can give you more knowledge: Bitcoin exchange.
In the present, Blockchain is divided into 3 versions:
Blockchain 1.0 - Currency and Payment: The main application of this version is cryptocurrency: including currency conversion, remittances and the creation of digital payment systems. This is also the area most familiar to us that sometimes quite a lot of people mistake Bitcoin and Blockchain as one.
Blockchain 2.0 - Finance and Market: Application of financial and banking processing: to scale up Blockchain, bring in financial and market applications. Assets include stocks, checks, debt, title and anything related to an agreement or a contract.
Blockchain 3.0 - Designing and Monitoring Operations: Bringing Blockchain beyond financial borders, and into fields like education, government, health, and the arts. In these areas, there will be multiple types like physical, digital or human in nature.
Blockchain consensus algorithm
The consensus mechanism in Blockchain can be understood as the way that Byzantine generals can reach consensus to win together. The following are common types of consensus mechanisms:
Proof of Work: Common in Bitcoin, Ethereum, Litecoin, Dogecoin, and most cryptocurrencies. Consumes quite a lot of electrical energy.
Proof of Stake: Popular in Decred, Peercoin and in the future, Ethereum and many other cryptocurrencies. More decentralized, less energy consuming and not easily intimidated.
Delegated Proof-of-Stake: Popular in Steemit, EOS, BitShares. Cheap transaction costs; extendable; high energy efficiency. However, there is still a bit of focus because this algorithm selects a trusted person to authorize.
Proof of Authority: This is a centralized model commonly seen in POA.Network, Ethereum Kovan testnet. High performance, good scalability.
Proof-of-Weight: Popular in Algorand, Filecoin. Customizable and good scalability. However, the development process will be a big challenge.
Byzantine Fault Tolerance: Popular in Hyperledger, Stellar, Dispatch, and Ripple. High productivity; low cost; extendable. However, it is still not completely reliable. This algorithm has 2 versions:
Practical Byzantine Fault Tolerance (Anti-fraud consensus / Byzantine General surrounded Blockchain in practice)
Federated Byzantine Agreement (Byzantine Alliance by Consensus)
Directed Acyclic Graphs (Topological Algorithm): Commonly found in Iota (Tangle technology), Hashgraph, Raiblocks / Nano (Block-lattice technology), is a competitor of Blockchain.
Why is Blockchain supported?
The 3 main properties of Blockchain technology that have helped it to achieve a widespread welcome are:
Before Bitcoin and Blockchain came along, we were used to centralized services. Specifically, you have a centralized entity that stores all of the data, and you must interact with this entity to retrieve the requested information.
Another example of a centralized system is banking. They store all your money, and the only way you can use it is through the bank.
The traditional client-server model is a good example of centralization:
What is Blockchain technology?
When you go to Google to search for something, you will send a query to the server and the results will return to you with the relevant information. It's also the simple client-server model.
Although centralized systems have been so familiar to us for many years, they do have some flaws:
In year 2008, POW mining machine is revolutionizing the distribution system from traditional currency which was created at the time of BITCOIN creation. In POW mining, If the work capacity for mining labor is larger, the higher chance to unlock Blocks will get, which purpose is to produce Bitcoins. POW 's birth was starting the first decentralized encrypted currency, digital currency has started to cut a striking figure rise in the financial market. According to the progress and development of Blockchain techniques, more and more people are participating in Bitcoin's investment and usage. POW mechanism's disadvantages are starting to emerge.submitted by AITDBlockchai to u/AITDBlockchai [link] [comments]
First, POW consensus mechanism is requiring mining labor to continuously using mining machine to do computing during mining process, this process will consume large capacity of electricity and mining machine usage cost, which will cause resources waste. As we mentioned in the previous class, purchasing more lotteries will improve the possibility of winning a prize, but it will cost a lot of money; Second, POW consensus mechanism is requiring all nodes to record processes for every production, transaction, transfer process on chain, which is causing time confirmation process slow for on-chain transaction. According to these two disadvantages, industry starts to continuously update based on POW consensus mechanism.
The nearest consensus mechanism for POW is POS, which is called legal rights prove. Unlike work capacity prove, POS mechanism do not need users to process massive calculation to unlock Blocks, but it is distributing Blocks according " Coin existing time from its generation", which is also called "coin age”. So called "Coin Age "is actually means that the product (times function)of the amount of coin users hold and times. Users can start exploring new Blocks when they get certain amount of "Coin Age". The longer of user's "Coin Age", the higher chance to discover new Blocks will get.
POS consensus algorithm is following "holding coins will produce profits" principle，Although current funds setting possess different approaches but equally satisfactory results, this setting is avoiding the resources waste problem which is causing by mining labors' mining process. Allowing digital currency production procedure to be simper, but the disadvantages are still existing in POS,User who possess older "coin age" will have higher chance to unlock Blocks and get rewards , those users who do not have coins can hardly unlock the Blocks. In the long term, " Poor people will be poorer, rich people will be richer”, This phenomenon is totally against the decentralization concept in digital currency.
DPOS was created after POS, which is stock authorized prove mechanism. This mechanism is coming up with a new concept based on the previous two mechanisms, the witness. Witness is the result of votes from on chain nodes, the mission is generating new Blocks within requiring times and gaining certain benefits for the works we did, EOS is the typical project which is based on DPOS. This rule is kind of like US congress, everyone has the right to vote, members from congress will use the power as the placement of civilian.
The birth of DPOS is further improving on-chain transaction confirmation speed, resources consuming problems during Blocks generating processes are resolved. At the meantime, this mechanism is transferring the digital currency processes from decentralization to weak centralization and half centralization. Witness failed to fulfill his duty is seriously influencing the operation procedure for the system.
Except the 3 mechanisms above, there is a more convenient, energy reduced consensus mechanism. POC.POC is being called capacity prove, the essence of POC is considering as one of the "contribution force algorithm, it replaces mining machine algorithm in POW mechanism by disc capacity. In POC algorithm, the larger capacity of user's mining machine discs, the higher chance will get Block reward, at the same time, the capacity of these discs can be used twice. Comparing to the previous 3 mechanism, POC mechanism possesses low barrier, resources exploitable and also possesses distribution traits advantages.
The star project IPFS in Block chain industries is using POC mining mechanism, but it has not grounded until now. Although POC mechanism possesses multiple advantages, its popularity is not positive. On one hand, it is because Blockchain techniques are under developing phase, the difficulty to achieve this type of technique is high. On the other hand, the popularity of POC mining and Bitcoin mining will need massive mining labor participation in order to run the system safely, therefore it will need certain amount of user’s numbers accumulation.
Overall, consensus mechanism is transferring to more convenient, more energy efficient, multiple directions. From this year, Blockchain industry is becoming focus point for the society, due to multiple projects are starting at the same time phenomenon, there will be more new consensus emerging in the future.
Next Episode: What is the public chain in Blockchain.
When we were a much smaller society, people could trade in the community pretty easily, but as the distance in our trade grew, we ended up inventing institutions such as banks, markets, stocks etc. that help us to conduct financial transactions. The currencies we are operating with nowadays are bills or coins, controlled by a centralized authority and tracked by previously mentioned financial institutions. The thing is, having a third party in our money transactions is not always what we wish for. But fortunately, today we have a tool that allows us to make fast and save financial transactions without any middlemen, it has no central authority and it is regulated by math. Sounds cool, right? Cryptocurrency is this tool. It is quite a peculiar system, so let’s take a closer look at it.submitted by Stealthex_io to StealthEX [link] [comments]
Layers of a crypto-cake
Layer 1: BlockchainFirst of all – any cryptocurrency is based on the blockchain. In simple words, blockchain is a kind of a database. It stores information in batches, called blocks that are linked together in a chronological way. As the blockchain is not located in one place but rather on thousands of computers around the globe, the blockchain and the transactions thus are decentralized, they have no head center. The newest blocks of transaction are continuously added on (or changed) to all the previous blocks. That’s how you get a cryptocurrency blockchain.
The technology’s name is a compound of the words “block” and “chain”, as the “blocks” of information are linked together in a “chain”. That’s how crypto security works – the information in the recently created block depends on the previous one. It means that no block can be changed without affecting the others, this system prevents a blockchain from being hacked.
There are 2 kinds of blockchain: private and public. Public, as goes by its name, is publicly available blockchain, whereas private blockchain is permissioned, which only a limited number of people have access to.
Layer 2: TransactionIn fact, everything begins with the intention of someone to complete a transaction. A transaction itself is a file that consists of the sender’s and recipient’s public keys (wallet addresses) and the amount of coins transferred. The sender begins by logging in into his cryptocurrency wallet with the private key – a unique combination of letters and numbers, something you would call a personal password in a bank. Now the transaction is signed and the first step which is called basic public key cryptography is completed.
Then the signed (encrypted) transaction is shared with everyone in the cryptocurrency network, meaning it gets to every other peer. We should mention that the transaction is firstly queued up to be added to the public ledger. Then, when it’s broadcasted to the public ledger, all the computers add a new transaction to a shared list of recent transactions, known as blocks.
Having a ledger forces everyone to “play fair” and reduce the risk of spending extra. The numbers of transactions are publicly available, but the information about senders and receivers is encrypted. Each transaction holds on to a unique set of keys. Whoever owns a set of keys, owns the amount of cryptocurrency associated with those keys (just like whoever owns a bank account owns the money in it). This is how peer-to-peer technology works.
Layer 3: MiningNow let’s talk about mining. Once confirmed, the transaction is forever captured into the blockchain history**.** The verification of the block is done by Cryptocurrency Miners – they verify and then add blocks to the public ledger. To verify them, miners go down on the road of solving a very difficult math puzzle using powerful software, which is that the computer needs to produce the correct sequence number – “hash” – that is specific to the given block, there is not much chance of finding it. Whoever solves the puzzle first, gets the opportunity to officially add a block of transactions to the ledger and get fresh and new coins as reward. The reward is given in whatever cryptocurrency’s blockchain miners are operating into. For example, BTC originally used to reward miners in 50 BTC, but after the first halving it decreased to 25 BTC, and at present time it is 6.25 BTC. The process of miners competing against each other in order to complete the transactions on the network and get rewarded is known as the Proof-of-Work (PoW) algorithm, which is natural for BTC and many other cryptocurrencies. Also there are another consensus mechanisms: Proof-of-Stake (PoS), Delegated Proof-of-Stake (dPoS), Proof-of-Authority (PoA), Byzantine Fault Tolerance (BFT), Practical Byzantine Fault Tolerance (pBFT), Federated Byzantine Agreement (FBA) and Delegated Byzantine Fault Tolerance (dBFT). Still, all of them are used to facilitate an agreement between network participants.
The way that system works – when many computers try to verify a block – guarantees that no computer is going to monopolize a cryptocurrency market. To ensure the competition stays fair, the puzzle becomes harder as more computers join in. Summing it up, let’s say that mining is responsible for two aspects of the crypto mechanism: producing the proof and allowing more coins to enter circulation.
Types of cryptocurrencyIn the virtual currency world there are a bunch of different cryptocurrency types with their own distinctive features.
The first cryptocurrency is, of course, Bitcoin. Bitcoin is the first crypto coin ever created and used. BTC is the most liquid cryptocurrency in the market and has the highest market cap among all the cryptocurrencies.
AltcoinsThe term ‘altcoins’ means ‘alternatives’ of Bitcoin. The first altcoin Namecoin was created in 2011 and later on hundreds of them appeared in crypto-world, among them are Ravencoin, Dogecoin, Litecoin, Syscoin etc. Altcoins were initially launched with a purpose to overcome Bitcoin’s weak points and become upgraded substitutes of Bitcoin. Altcoins usually stand an independent blockchain and have their own miners and wallets. Some altcoins actually have boosted features yet none of them gained popularity akin to Bitcoin. More about altcoins in our article.
TokensToken is a unit of account that is used to represent the digital balance of an asset. Basically tokens represent an asset or utility that usually are made on another blockchain. Tokens are registered in a database based on blockchain technology, and they are accessed through special applications using electronic signature schemes.
Tokens and cryptocurrencies are not the same thing. Let’s explain it more detailed:
• First of all, unlike cryptocurrencies, tokens can be issued and managed both centralized and decentralized.
• The verification of the token transactions can be conducted both centralized and decentralized, when cryptocurrencies’ verification is only decentralized.
• Tokens do not necessarily run their own blockchain, but for cryptocurrencies having their own blockchain is compulsory.
• Tokens’ prices can be affected by a vast range of factors such as demand and supply, tokens’ additional emission, or binding to other assets. On the other hand, the price of cryptocurrencies is completely regulated by the market.
Tokens can be:
• Utility tokens – something that accesses a user to a product or service and support dApps built on the blockchain.
• Governance tokens – fuel for voting systems executed on the blockchain.
• Transactional tokens – serve as a unit of accounts and used for trading.
• Security tokens – represent legal ownership of an asset, can be used in addition to or in place of a password.
Tokens are usually created through smart contracts and are often adapted to an ICO – initial coin offering, which is a means of crowdfunding. It is much easier to create tokens, that is why they make a majority of coins in existence. Altcoin and token blockchains work on the concept of smart contracts or decentralized applications, where the programmable, self-executing code is ruling the transactions within a blockchain. By the way, the vast majority of tokens were distributed on the Ethereum platform.
ForksGenerally a fork occurs when a protocol code, on which the blockchain is operating, is being changed, modified and updated by developers or users. Due to the changes, the blockchain splits into 2 paths: an old way of doing things and a new way. These changes may happen because: a disagreement between users and creators; a major hack, as it was with Ethereum; developers’ decision to fix errors and add new functionality. The blockchain mainly splits into hard forks and soft forks. Shortly speaking, coin hard forks cannot work with older versions while soft forks still can work with older versions.
Hard fork – after a hard fork, a new version is completely separated from the previous one, there’s no connection between them anymore, although the new version keeps the data of all the previous transactions but now on, each version will have its own transaction history. In order to use the new versions, every node has to upgrade their software. A hard fork requires majority support (or consensus) from coin holders with a connection to the coin network. If enough users don’t update then you will be unable to get a clean upgrade which could lead to a break in the blockchain.
Soft fork – a protocol change, but with backward compatibility. The rules of the network have been changed, but nodes running the old software will still be able to validate transactions, but those updated nodes won’t be able to mine new blocks. So to be used and useful, soft forks require the majority of the network’s hash power. Otherwise, they risk becoming set out and anyway ending up as a hard fork.
StablecoinsAs it comes from the name, stablecoins are price-stabilized that are becoming big in the crypto world. Still enjoying most of the “typical-cryptocurrency” benefits, it is standing out as a fixed and stable coin, not volatile at all. Stablecoins’ values are stabilized by pegging them to other assets such as the US Dollar or gold.
Stablecoins include Tether (USDT), Standard (PAX), Gemini Dollar (GUSD) which are backed by the US Dollar and approved by the New York State Department of Financial Services.
ConclusionNow that we hacked into cryptocurrency, you probably understand that it is much less mysterious than it first seemed. Nowadays, cryptocurrencies are making the revolution of the financial institution. For example, Bitcoin is currently used in 96 countries and growing, with more than 12,000 transactions per hour. More and more investors are involved, banks and governments realize that these cutting edge technologies are prone to draw their control away. Cryptocurrencies are slowly changing the world and you can choose – either stand beside and observe or become part of history in the making.
And remember if you need to exchange your coins StealthEX is here for you. We provide a selection of more than 300 coins and constantly updating the cryptocurrency list so that our customers will find a suitable option. Our service does not require registration and allows you to remain anonymous. Why don’t you check it out? Just go to StealthEX and follow these easy steps:
✔ Choose the pair and the amount for your exchange. For example BTC to ETH.
✔ Press the “Start exchange” button.
✔ Provide the recipient address to which the coins will be transferred.
✔ Move your cryptocurrency for the exchange.
✔ Receive your coins.
Follow us on Medium, Twitter, Facebook, and Reddit to get StealthEX.io updates and the latest news about the crypto world. For all requests message us via [[email protected]](mailto:[email protected]).
The views and opinions expressed here are solely those of the author. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Original article was posted on https://stealthex.io/blog/2020/09/29/how-does-cryptocurrency-works/
Written by SatoshisAngelssubmitted by CoinExcom to btc [link] [comments]
Published by read.cash
On August 5th 2020, Satoshi’s Angels hosted an AMA for CoinEx on “How BCH and Avalanche Are Bringing Financial Freedom to 6 Billion People” on a Chinese platform Bihu. During the 100-minute event, Haipo Yang of ViaBTC and CoinEx, and Emin Gun Sirer of AVA Labs shared their in-depth views on such topics as different consensus mechanisms, community governance, IPFS, Defi. And Haipo explained why he wants to fork BCH. This is the full text.
You can check out the full AMA here (mostly in Chinese with some English translation).
Cindy Wang (Satoshi’s Angels): There are news saying that you are to fork BCH. Is it a marketing makeover? Are you serious about it?
Haipo Yang: It’s definitely not a marketing makeover. But the details are not decided yet.
Over the past three years, the BCH community has gone through multiple discussions from reducing block time, changing mining algorithms, adding smart contracts, etc. But none of these disputes have been well settled.
BCH is a big failure in terms of governance. A lack of good governance has made it fall in disorder. It is too decentralized to make progress.
You may know that the first BCH block was mined by ViaBTC. And we gave a lot of support to it indeed. But we didn’t dominate the fork. The Chinese community in particular thought I had a lot of influence, but it was not true.
I think the whole community is very dissatisfied with Bitcoin ABC, but it is difficult to replace them or change the status quo. So I am thinking of creating a new branch of BCH. The idea is still in early stage. I welcome anyone interested to participate and discuss it with me.
Wang: Professor Emin, what’s your attitude to fork? Do you think it’s a good timing to fork BCH?
Emin Gun Sirer: I am a big fan of BCH. It adheres to the original vision of Satoshi Nakamoto. I like the technical roadmap of BCH. But just like what Haipo mentioned, BCH lacks a good governance mechanism. There are always something that can cause BCH community to divide itself.
But I think it’s not enough to just have a good governance mechanism. There are many good proposals in the community but failed to be adopted in the end. I think BCH needs social leadership to encourage discussion when there are new proposals.
Wang: We are all curious to know How Avalanche got its name?
I know that Avalanche doesn’t mean well in Chinese. But in English, it’s a very powerful word. Avalanche represents a series of algorithms piling together like a mountain. When decisions slowly form, the ball (nodes in the network) on top of the mountain starts going down the hill on one side, and it gets bigger and bigger, and like an avalanche and it becomes unstoppable, making the transaction final.
Wang: Prof. Emin, I know that you are a big blocker. Have you ever considered implementing Avalanche based on BCH? Why create another chain?
Sirer: Of course I considered that. Satoshi Nakamoto consensus is wonderful, but the proof-of-work mechanism and Nakamoto consensus base protocols have some shortcomings, such as network latency, and it is hard to scale. Avalanche, instead, is totally different, and is the new biggest breakthrough in the past 45 years. It is flexible, fast, and scalable. I’d love to implement BCH on top of avalanche in the future, to make BCH even better by making 0-conf transactions much more secure.
Wang: As an old miner, why did CoinEx Chain choose to “abandon” POW, and turn to POS mechanism?
Haipo: Both POW and POS consensus algorithms have their own advantages. POW is not just a consensus algorithm, but also a more transparent and open distribution method of digital currency. Anyone can participate in it through mining.
POW is fairer. For a POS-based network, participants must have coins. For example, you need to invest ICO projects to obtain coins. But developers can get a lot of coins almost for free. In addition, POW is more open. Anyone can participate without holding tokens. For example, as long as you have a computer and mining rigs, you can participate in mining. Openness and fairness are two great features of POW. POS is more advanced, safe and efficient.
POS is jointly maintained by the token holders, and there is no problem of 51% attacks. Those who hold tokens are more inclined to protect the network than to destroy the network for their own interests. To disrupt the network, you need to buy at least two-thirds of the token, which is very difficult to achieve. And when you actually hold so many coins, it’s barely possible for you to destroy the network.
POW has the problem of 51% attack. For example, ETC just suffered the 51% attack on August 3. And the cost to do that is very low. It can be reorganized with only tens of thousands of dollars. This is also a defect of POW.
In addition, in terms of TPS and block speed, POS can achieve second-level speed and higher TPS. Therefore, CoinEx Chain chose POS because it can bring a faster transaction experience. This is very important for decentralized exchanges. Both POW and POS have their own advantages. It’s a matter of personal choice. When choosing a consensus mechanism, the choice must be made according to the characteristics of the specific project.
Wang: Ethereum is switching to ETH 2.0. If they succeed, do you think it will lead the next bull market?
Sirer: If Ethereum 2.0 can be realized, it must be a huge success.
But I doubt it can be launched anytime soon considering that it has been constantly delayed. And even if it comes out, I am not so sure if it will address the core scaling problem. And the main technology in Ethereum 2.0 is sharding. Sharding technology divides the Ethereum networks into small parallel groups, but I think what will happen is everyone wants to be in the same “shard” so the sharding advantages might not be realizable in Ethereum 2.0.
Avalanche supports Ethereum’s virtual machine, and Avalanche can realize 1 second level confirmation, while with sharding finalizing confirmation takes 5–6 seconds at best. Avalanche approach to make Ethereum scale is superior to Ethereum 2.0. There are many big players behind Ethereum 2.0, and I wish them success. But I believe that Avalanche will be the fastest and best Smart Contract platform in the crypto space, and it is compatible with Ethereum.
Wang: Why is Avalanche a real breakthrough？
Sirer: Avalanche is fundamentally different from previous consensus mechanisms. It’s very fast with TPS surpasses 6500, which is three times that of VISA. Six confirmations can be achieved in one second. Compared with the POW mechanism of Bitcoin and Bitcoin Cash, Avalanche’s participation threshold is very low. It allows multiple virtual machines to be built on the Avalanche protocol.
Avalanche is not created to compete with Bitcoin or fiat currencies such as the US dollar and RMB. It’s not made to compete with Ethereum, which is defined as the “world’s computer”. Avalanche is positioned to be an asset issuance platform to tokenize assets in the real world.
Wang: How do you rank the importance of community, development, governance, and technology to a public chain?
Sirer: These four are like the legs of a table. Every foot is very important. The table cannot stand without strong support.
A good community needs to be open to welcome developers and people. Good governance is especially important, to figure out what users need and respect their voices. Development needs to be decentralized. Avalanche has developers all over the world. And it has big companies building on top of Avalanche.
Yang: From a long-term perspective, I think governance is the most important thing, which is the same as running a company.
In the long run, technology is not important. Blockchain technology is developed based on an open source softwares that are free to the community. Community is also not the most important factor.
I think the most important thing is governance. Decentralization is more about technical. For example, Bitcoin, through a decentralized network method, ensures the openness and transparency of data assets, and the data on the chain cannot be tampered with, ensuring that the total amount of coins has a fixed upper limit.
But at the governance level, all coins are centralized at some degree. For example, BCH developers can decide to modify the protocol. In a sense, it is the same as managing a company.
Historically, the reasons for the success and failure of companies all stem from bad governance. For example, Apple succeeded based on Steve Jobs’s charisma, leadership and the pursuit of user experience. When Jobs was kicked out, Apple suffered great losses. After Jobs returned, he made Apple great again.
Issues behind Bitmain is also about governance. Simply put, governance requires leaders who have a longer-term vision and are more capable of coordinating and balancing the resources and interests of all parties to lead the community.
In the blockchain world, many people focus on technology. In fact, technology is not enough to make great products. User experience is most important. Users don’t care about the blockchain technology itself, but more concerned about whether it is easy to use and whether it can solve my problem.
We need to figure out how to deliver a product like Apple. The pursuit of user experience is also governance in nature. And governance itself lies in the soul of key leaders in the community.
Realize tokenization of assets in.
Wang: Speaking of asset tokenization, I would like to ask Haipo, do you think the market for assets on the chain is big?
Yang: It must be very big. We need to see which assets can be tokenized.
Assets that can be tokenized are standardized assets, sush as currencies and securities.
There may be only tens of thousands of stocks currently traded globally. There are also tens of thousands of tokens in the crypto space. I believe that millions or more of assets will be traded and circulated in the future. This can only be realized through decentralized technology and organization.
The market for assets tokenization will be huge. And at present, the entire blockchain technology is still very primitive. Bitcoin and Ethereum only have a few or a dozen TPS, which is far from meeting market demand. This is why CoinEx is committed to building a decentralized Dex public chain.
Wang: Avalanche’s paper was first published on IPFS. What do you think of IPFS?
Sirer: I personally like IPFS very much. It is a decentralized storage solution.
Yang: There is no doubt that IPFS solves the problem of decentralized storage, and can be robust in the blockchain world, and can replace HPPT services. But there are still three problems:
Wang: What do you think of Defi?
Yang: I want to talk about the concept first.
Broadly speaking, the entire blockchain industry is DeFi in nature. Blockchain is to realize the circulation of currency, equity, and asset value through decentralization.
So in a broad sense, blockchain itself is DeFi. In a narrow sense, DeFi is a financial agreement based on smart contracts. DeFi, through smart contracts, can build applications more flexibly. For example, before we could only use Bitcoin to transfer and pay. Now with smart contracts, flexible functions such as lending, exchange, mortgage , etc. are available. The entire blockchain industry is gradually evolving under the conditions of DeFi. DeFi will definitely get greater development in the future.
Sirer: I think Defi will definitely have a huge impact. DeFi is not only an innovation in the cryptocurrency field, but also an innovation in the financial field. Wall Street companies have stagnated for years with no innovation. Avalanche fits different DeFi needs, including performance and compliance. In the future, not only will Wall Street simply adopt DeFi, but DeFi will grow into a huge market that will eventually replace the traditional financial system.
Questions from the community:
1. How does Avalanche integrate with DeFi?
Sirer: At present, all DeFi applications on Avalanche have surpassed Ethereum. What can be achieved on Ethereum can be achieved on Avalanche with better user experience. We are currently connecting with popular DeFi projects such as Compound and MakerDao to add part of or all of their functions.
At present, Avalanche is working on decentralized exchange (DEX). The current DEXs are limited by speed and performance but when they are built on top of Avalanche it will be real-time and very fast.
2. How many developers does BCH have?
Yang: I think it does not matter how many developers there are. What matters is what should be developed. I watched Jobs’ video the other day, and it inspired me a lot. We are not piecing together technology to see what technology can do. It’s we figure out what we want first and then we use the technology we need.
The entire blockchain community worship developers. Such as they call Vitalik “V God”. It’s not necessary to treat developers as wizards. Developers are programmers, and I myself is also a programmer.
ViaBTC has a development team of over 100 people, including core members from Copernicus (a dev team formerly belonged to Bitmain). Technically we are very confident to build faster, stabler, and better user experience products.
submitted by QuarkChain to quarkchainio [link] [comments]
In which direction should DeFi develop in the next step?
The market is changing dramatically. The past few days have been like riding a roller coaster. But after several rounds of fluctuations, the DeFi segment in the stock market is still unabated. However, the hidden worries lurking under the surface are always existing.
Almost all resources in the DeFi ecology are on Ethereum. However, there are problems with the DeFi network built by Ethereum, such as the single system performance brought by the foreseeable homogeneous sharding in the future, high gas fee, low security, and low scalability, etc. These vulnerabilities make the many applications hard to use on the DeFi network, including high-frequency trading and the transaction matching modes (We use the Uniswap asset pool model today.)
The problem with ETH1.0 is that the performance is limited, and all the transactions are mixed without any organization. Although there is composability for the DeFi applications, the network needs to operate both DeFi applications and other transactions or DApps.
Network congestion and skyrocketing gas feesAs we all know, Ethereum relies on the consumption of GAS to run its economic operation. Every step of the chain requires the consumption of GAS. Bitcoin plummeted by almost 50% to $3,800, and ETH fell as much as 65.2% just on March 12 and 13, 2020. The plummet caused a run, the Ethereum miner fees that carried a large number of DeFi and DApps skyrocketed, and the network was also congested. The Ethereum GAS fee increased to 10 times of the usual, and the GAS fee was once as high as 1 ETH to successfully package transactions. After that, because the lending operations of DeFi applications require frequent interaction with contracts, the gas fees on Ethereum have also remained high.
Problems inherited from ERC20 tokens are affecting the DeFi products on Ethereum.If you use Ethereum’s native token ETH, the operation is simple. As long as the ETH is transferred to the contract of the target DeFi application, the contract operation will be the same as when we use cash to invest in stocks or wealth management products. No other operations are required.
However, the operation of tokens minted using ERC20 contracts is very different from native ETH, regardless of whether the tokens minted by these ERC20 contracts are well-known. Before trading, the ERC20 contract first authorizes the DeFi platform’s contract to transfer a specified number of ERC20 tokens on the account, such as USDT, USDC, or WBTC. After approval, the DeFi contract is called to transfer money. The intuitive understanding is to avoid frequent password input in small transactions, we authorized Paypal to open a password-free payment, so that the payment can be directly deducted during consumption. It sounds convenient, but is it that good?
There is a crucial problem here: if the DeFi contract is malicious during the approval process, this DeFi contract has the right to transfer all the ERC20 tokens on our account to any account. It is similar to that we authorize Paypal to perform a password-free operation of the balance, but if a hacker attacked Paypal successfully, this hacker could transfer all our money to his account. Similar things have happened before.
There is a famous project called Bancor, which used to rely on the type of authorization contract for ERC20 processing. However, there was a bug in the contract that allowed the contract to transfer the tokens in the user’s wallet to any hacker designated address after the user was authorized, which caused a loss of almost 100,000 US dollars.
The loss was not so significant because it occurred in the early stage of DeFi development. If it happens today that the DeFi asset scale on Ethereum already reached hundreds of millions, it would cause severe damage to the entire Ethereum ecosystem and the development of DeFi.
Cold shard and hot shardDeFi needs composability, convenience, and a stronger capability of anti-run. If the throughput is insufficient, sharding technology can be introduced, which is what ETH2.0 does. However, due to the combinability of DeFi, these applications tend to aggregate into one shard, which is prone to clustering effects. This will result in different shards gathering different contents. This is called hot shards and cold shards, which are analogous to different types of cities such as metropolises as New York and Tokyo, and other places like Kyoto and Alaska. Some places have become Wall Street, while other places may become scenic or living areas. Because of the aggregation of different functions, different shards will have different features.
It is quite unwise to develop algorithms to forcibly redistribute load balancing on shards. This is equivalent to using a simple system to determine the development of a complex system, much like a planned economy. However, we can design different features in advance to make them more capable to display their own features, just as humans transformed and utilized the natural resources based on their understanding of nature, thereby improving efficiency. That means, to set up some shards with different performance and even different consensus algorithms (e.g., the features of PoW and PoS are different).
Maybe there will be a major financial shard, like London, or two other special shards with their own features, like New York City and Chicago. Financial shards require high throughput and high cost. These are called hot shards, which carry large-value transactions, otherwise, the gas fee may be too high. Most people will live in the countryside, which means cold shards here. When you need the hot shard features, you don’t need to live in Manhattan, nor do you need to travel to Manhattan occasionally. Most of the time, you will live well on another shard. When one really needs to run on a DeFi shard, it only takes a few minutes of cross-shard transactions.
But the problem generated from this is that since each shard has its own features, it may cause the shards to be independent. What we need is that shards can be harmonious but keep their differences, that is, cross-sharding DeFi needs to be achieved. Today’s multi-chain heterogeneous technology can contribute to solving this problem. Only by solving these problems can more DeFi applications be stimulated.
In our opinion, a mature DeFi platform must have the following features:
Higher Efficiency: Have faster concurrent processing capabilities, i.e., high TPS.
Lower Gas Fee: Lower gas fee can stimulate the enthusiasm of DeFi users and even catalyze the development of high-frequency trading.
More Secure: There are fewer interactive processes in the contract, at least structurally to avoid the problems ERC20 caused due to the different permissions, which leads to complicated interactions and lengthens the operation chain and increases loopholes.
Easier to Use: Various multi-native tokens can be used to pay gas fees during transactions, and thus no need to use designated tokens to pay gas fees.
Easier Combination: It can support the combination of a wide range of contracts, including the combination of different consensus in the same chain, ledger structure, and other elements, and even cross chains, making DeFi a real “Lego”.
Multi-chain heterogeneous + DeFi, one unhindered currency is helping to reach the perfectMulti-chain heterogeneity has formed “cities” and “villages”, and DeFi has become the financial center among the cities. Since we use cities for comparison, how can we avoid each city’s independent governance and link up the chains of urban interests to form a greater network? The answer is the same as in real life, that is, the so-called currency everywhere.
Ethereum also provides currency, but this currency is not only inefficient, but also indirectly causes security risks. If you want long-term development, such a design is unreasonable.
In the QuarkChain mainnet, multi-native tokens are our primary function for building the next generation of DeFi. Multi-native tokens have basically the same status as QKC in the QuarkChain system. They can call contracts, perform cross-chain operations, and pay gas fees under certain conditions. Native tokens can achieve all of QKC’s functions, including cross-chain transactions, except participating in QKC governance. Most of the non-native asset inconvenience problems faced by Defi can be solved. In the future contracts, the functions of native tokens will be exactly the same as QKC, with the last barrier to the application of multi-native tokens being removed. This also avoids the problem of reducing the security of the entire DeFi system due to the ERC20 token’s authority issue. Next, we will launch our DEX, and then users will have the true feeling of the unimpeded DeFi platform on QuarkChain. Thus, the last piece of the puzzle of multi-chain heterogeneous + DeFi + multi-native tokens has been fulfilled, which brings cost efficiency, user easiness, and security to a new level.
Ethereum’s performance and contract security restrictions have affected development. After our repeated introduction and numerous testing, the multi-native token function is ready to be officially delivered to the community. Soon, community members can mint their own tokens and use them to transfer funds (including cross-sharding), pay gas fees, directly call smart contracts, etc. In conjunction with the DEX that we will launch in the next step, users can actually experience the convenience and innovation brought by multi-native tokens to the blockchain system.
To verify the validity of this theory, we recently launched the Game of DeFi Campaign. In the last stage of the campaign, we launched a simple DEX application and a game: QSwap — the multi-native token version of Uniswap, and Element Miner — a fun mining trading game. This is the new value that DEX and game-based mining will be able to bring to DApp and DeFi applications based on the verification of multi-native tokens with the game format. Because the gas fee is low enough, every step of the operation will be on the chain to ensure security. Meantime, instead of ETH’s high gas fee, which made users either high-cost and low-efficiency, or low-cost and low-security, the multi-native token proves the real security and convenience.
Our Game of DeFi Campaign has already entered the final stage. There are still millions of QKC reward pools waiting for the users to share. Users can download QPocket wallet to participate in this event.
Phase III: King’s Landing — Dex and Liquidity MiningIn this phase, all the community members can have the experience to use our two new products:
QSwap: Multi-native token version UniswapUnlike Uniswap, which can only support ERC20 tokens, QSwap supports multi-native tokens. Thus, no extra pre-authorized approval is required in the process, and any multi-native token can be used to pay gas fee ( not only QKC ). Users will get a better experience and maintain more security by avoiding granting unlimited authorization. Moreover, there will be a much lower gas fee due to sharding technology provided by QuarkChain infrastructure.
Element Miner: Interesting mining and trading DApp gameThe player’s goal is to collect 5 elements to join the reward pool. However, since these elements are reinforcing to each other (just like the mining throughputs from different projects are different), using QSwap will be the most efficient approach.
One last question: This DeFi campaign uses test tokens. What if the network uses tokens with real value?
submitted by QuarkChain to quarkchainio [link] [comments]
The picture from COINDESK related reports
On Aug. 2, Ethereum Classic Labs (ETC Labs) made an important announcement on ETC blockchain. ETC Labs said due to network attack, Ethereum Classic suffered a reorganization on August 1st. This has been the second attack on the Ethereum Classic Network this year.
Did renting-power cause the problem again?
In this ETC incident, one of the miners mined a large number of blocks offline. When the miner went online, due to its high computing power, and some versions of mining software did not support large-scale blockchain mergers, the consensus failed. Therefore, the entire network was out of sync, which produced an effect similar to a 51% attack. Finally, it caused the reorganization of 3693 blocks, starting at 10904147. The deposit and withdrawal between the exchanges and mining pools had to be suspended for troubleshooting during this period.
Media report shows that the blockchain reorganization may be caused by a miner (or a mining pool) disconnected during mining. Although it has been restored to normal after 15 hours of repair, it does reflect the vulnerability of the Proof of Work (PoW) network: once the computing power of the network is insufficient, the performance of one single mining pool can affect the entire network, which is neither distributed nor secure for the blockchain. Neither does it have efficiency.
At present, most consensus algorithms of blockchains are using PoW, which has been adopted over 10 years. In PoW, each miner solves a hashing problem. The probability to solve the problem successfully is proportional to the ratio of the miner’s hash power to the total hash power of mainnet.
Although PoW has been running for a long time, the attack model against PoW is very straightforward to understand, and has attracted people’s attention for a long time: such an attack, also known as double-spending attack, may happen when an attacker possesses 51% of the overall network hash power. The attacker can roll back any blocks in the blockchain by creating a longer and more difficult chain and as a result, modify the transaction information.
Since hash power can be rented to launch attacks, some top 30 projects have suffered from such attacks. In addition to this interference, the main attack method is through the computing power market such as Nice Hash. Hackers can rent hashpower to facilitate their attacks, which allows the computing power to rise rapidly in a short time and rewrite information. In January of this year, the Ethereum Classic was attacked once, and it was also the case that hackers can migrate computing power from the fiercely competitive Bitcoin and Ethereum, and use it to attack smaller projects, such as ETH Classic.
The picture shows the cost of attacking ETH Classic. It can be seen that it costs only $6,634 to attack ETH Classic for one hour.
The security of one network is no longer limited by whether miners within the main net take more than 51% of the total hash power, rather it is determined by whether the benevolent (non-hackers) miners take more than 51% of the total hash power from the pool of projects that use similar consensus algorithm. For example, the hash power of Ethereum is 176 TH/s and that of Ethereum Classic is 9 TH/s. In this way, if one diverts some hash power from Ethereum (176 TH/s) to Ethereum Classic, then one can easily launch a double-spending attack to Ethereum Classic. The hash power ratio for this attack between the two projects is 9/176 = 5.2%, which is a tiny number.
As one of the top 30 blockchain projects, Ethereum Classic has been attacked several times. Therefore, those small and medium-sized projects with low hash power and up-and-coming future projects are facing great potential risks. This is the reason that many emerging public chain projects abandon PoW and adopt PoS.
Proof of Stake (PoS) can prevent 51% attack but has problems of its own
In addition to PoW consensus, another well-adopted consensus algorithm is Proof of Stake (PoS). The fundamental concept is that the one who holds more tokens has the right to create the blocks. This is similar to shareholders in the stock market. The token holders also have the opportunities to get rewards. The advantages of PoS are: (i) the algorithm avoids wasting energy like that in PoW calculation; and (ii) its design determines that the PoS will not be subjected to 51% hash power attack since the algorithm requires the miner to possess tokens in order to modify the ledger. In this way, 51% attack becomes costly and meaningless.
In terms of disadvantages, nodes face the problem of accessibility. PoS requires a permission to enter the network and nodes cannot enter and exit freely and thus lacks openness. It can easily be forked. In the long run, the algorithm is short of decentralization, and leads to the Matthew effect of accumulated advantages whereby miners with more tokens will receive more rewards and perpetuate the cycle.
More importantly, the current PoS consensus has not been verified for long-term reliability. Whether it can be as stable as the PoW system is yet to be verified. For some of the PoW public chains that are already launched, if they want to switch consensus, they need to do hard fork, which divides communities and carries out a long consensus upgrade and through which Ethereum is undergoing. Is there a safer and better solution?
QuarkChain Provide THE Solution: High TPS Protection + PoSW Consensus
For new-born projects, and some small or medium-sized projects, they all are facing the problem of power attack. For PoW-based chains, there are always some chains with lower hash power than others (ETC vs. ETH, BCH vs BTC), and thus the risk of attack is increased. In addition, the interoperability among the chains, such as cross-chain operation, is also a problem. In response, QuarkChain has designed a series of mechanisms to solve this problem. This can be summed up as a two-layer structure with a calculation power allocation and Proof of Staked Work (PoSW) consensus.
First of all, there is a layer of sharding, which can be considered as some parallel chains. Each sharding chain handles the transactions relatively independently. Such design forms the basis to ensure the performance of the entire system. To avoid security issues caused by the dilution of the hash power, we also have a root chain. The blocks of the root chain do not contain transactions, but are responsible for verifying the transactions of each shard. Relying on the hash power distribution algorithm, the hash power of the root chain will always account for 51% of the net. Each shard, on the other hand, packages their transactions according to their own consensus and transaction models.
Moreover, QuarkChain relies on flexibility that allows each shard to have different consensus and transaction models. Someone who wants to launch a double-spending attack on a shard that is already contained in the root chain must attack the block on the root chain, which requires calling the 51% hash power of the root chain. That is, if there are vertical field projects that open new shards on QuarkChain, even with insufficient hash power, an attacker must first attack the root chain if he or she wants to attack a new shard. The root chain has maintained more than 51% of the network’s hash power, which makes the attack very difficult.
As illustrated in the diagram, if the attacker wants to attack the QuarkChain network, one would need to attack the shard and the root chain simultaneously.
PoW has achieved a high level of decentralization and has been verified for its stability for a long time. Combining PoW with the staking capability for PoS would make use of the advantages of both consensus mechanisms. That is what QuarkChain’s PoSW achieves exactly.
PoSW, which is Proof of Staked Work, is exclusively developed by QuarkChain and runs on shards. PoSW allows miners to enjoy the benefits of lower mining difficulty by staking original tokens (currently it’s 20 times lower). Conversely, if someone malicious with a high hash power and does not stake tokens on QuarkChain, he will be punishable by receiving 20 times the difficulty of the hash power, which increases the cost of attack. If the attacker stakes tokens in order to reduce the cost of attack, he/she needs to stake the corresponding amount of tokens, which may cost even more. Thus, the whole network is more secure.
Taking Ethereum Classics (ETC) as an example, if ETC uses the PoSW consensus, if there was another double-spending attack similar to the one in January, the attacker will need at least 110Th/s hash power or 650320 ETC (worth $3.2 million, and 8 TH/s hash power) to create this attack, which is far greater than the cost of the current attack on the network (8Th/s hash power) and revenue (219500 ETC).
Relying on multiple sets of security mechanisms, QuarkChain ensures its own security, while providing security for new shards and small and medium-sized projects. Its high level of flexibility also allows the projects to support different types of ledger models, transaction models, virtual machines, and token economics. Such great degrees of security and flexibility will facilitate the blockchain ecosystem to accelerate growth of innovative blockchain applications.
Learn more about QuarkChain
Author: Gamals Ahmed, Business Ambassadorsubmitted by CoinEx_Institution to u/CoinEx_Institution [link] [comments]
One of the key themes in 2020 is the rise of decentralized financing (DeFi), a new type of financing that works on decentralized protocols and without the need for financial intermediaries. Lately, the number of DeFi apps has increased significantly, but many have not been seen or heard by many of us.
In this Article I will be building a list of the best DApps, which will likely lead the next phase. DeFi apps can be categorized into different subcategories such as:
Note: Some of the projects in the report categorized into more than one section in the types of dApps.
The rise of DeFi Bitcoin (BTC) was the first implementation of decentralized financing. It enabled individuals to conduct financial transactions with other individuals without the need for a financial intermediary in the digital age. Bitcoin and similar cryptocurrencies were the first wave of DeFi. The second wave of DeFi was enabled by Ethereum blockchain which added another layer of programmability to the blockchain. Now, at the beginning of 2020, individuals and companies can borrow, lend, trade, invest, exchange and store crypto assets in an unreliable way. In 2020, we can expect the amount of money held in lending protocols to increase as long-term investors diversify into interest-bearing offers, especially if the market fails to rise towards the 2017/18 highs. On the other hand, active crypto traders are becoming increasingly interested in decentralized trading offers. The increasing level of money security offered by decentralized trading platforms should not only see an increase in trading of DApp users, but also in the number of non-custodial trading and exchange platforms available.
Lending: DeFi allows anyone to obtain or provide a loan without third party approval. The vast majority of lending products use common cryptocurrencies such as Ether ($ ETH) to secure outstanding loans through over-collateral. Thanks to the emergence of smart contracts, maintenance margins and interest rates can be programmed directly into a borrowing agreement with liquidations occurring automatically if the account balance falls below the specified collateral. The relative benefit gained from supplying different cryptocurrencies is different for the asset and the underlying platform used.
Compound is a money market protocol on the Ethereum blockchain — allowing individuals, institutions, and applications to frictionlessly earn interest on or borrow cryptographic assets without having to negotiate with a counterparty or peer. Each market has a dynamic borrowing interest rate, which floats in real-time as market conditions adjust. Compound focuses on allowing borrowers to take out loans and lenders to provide loans by locking their crypto assets into the protocol. The interest rates paid and received by borrowers and lenders are determined by the supply and demand of each crypto asset. Interest rates are generated with every block mined. Loans can be paid back and locked assets can be withdrawn at any time. While DeFi may seem overwhelming complex to the average individual, Compound prides itself on building a product that is digestible for users of all backgrounds. Compound is a protocol on the Ethereum blockchain that establishes money markets, which are pools of assets with algorithmically derived interest rates, based on the supply and demand for the asset. Suppliers (and borrowers) of an asset interact directly with the protocol, earning (and paying) a floating interest rate, without having to negotiate terms such as maturity, interest rate, or collateral with a peer or counterparty. Built on top of that principle is cTokens, Compound’s native token that allows users to earn interest on their money while also being able to transfer, trade, and use that money in other applications. OVERVIEW ABOUT COMPOUND PROTOCOL Compound Finance is a San Francisco based company, which raised an $8.2 M seed round in May of 2018, and a $25M Series A round in November of 2019. Financing rounds were lead by industry giants including but not limited to Andressen Horowitz, Polychain Capital, Coinbase Ventures and Bain Capital Ventures, Compound Finance is a sector-leading lending protocol enabling users to lend and borrow popular cryptocurrencies like Ether, Dai and Tether. Compound leverages audited smart contracts responsible for the storage, management, and facilitation of all pooled capital. Users connect to Compound through web3 wallets like MetaMask with all positions being tracked using interest-earning tokens called cTokens.
Compound recently introduced a governance token — COMP. It holds no economic benefits and is solely used to vote on protocol proposals. The distribution of COMP has absolutely exceeded expectations on all fronts. Compound is now the leading DeFi protocol both in terms of Total Value Locked and in terms of COMP’s marketcap relative to other DeFi tokens. COMP was recently listed on Coinbase — the leading US cryptocurrency exchange and has seen strong interest from dozens of other exchanges including futures platforms like FTX. Compound’s new governance system is well underway, with close to close to 10 proposals being passed since it’s launch. What’s unique about COMP’s governance model is that tokenholders can delegate their tokens to an address of their choice. Only those who hold more than 1% of the supply can make new proposals. Besides earning interest on your crypto assets, which is a straightforward process of depositing crypto assets on the platform and receiving cTokens, you can also borrow crypto on Compound. Borrowing crypto assets has the added step of making sure the value of your collateral stays above a minimum amount relative to your loan. Compound and DeFi more broadly wants to help people have more access and control over the money they earn and save. While the project has had its criticisms, the long-term goal of Compound has always been to become fully decentralized over time. The Compound team currently manages the protocol, but they plan to eventually transfer all authority over to a Decentralized Autonomous Organization (DAO) governed by the Compound community. For following the project:
DEXs: Decentralized exchanges allow users to switch their assets without the need to transfer custody of basic collateral. DEXs aim to provide unreliable and interoperable trading across a wide range of trading pairs.
Kyber is a blockchain-based liquidity protocol that allows decentralized token swaps to be integrated into any application, enabling value exchange to be performed seamlessly between all parties in the ecosystem. Using this protocol, developers can build innovative payment flows and applications, including instant token swap services, ERC20 payments, and financial DApps helping to build a world where any token is usable anywhere. Kyber’s ecosystem is growing rapidly. In about a month, the team got an investment and partnered with some of the best projects. ParaFi Capital, a blockchain-focused investment company, has made a strategic purchase of KNC codes. The company will assist the DeFi project by qualifying new clients and improving professional market manufacture. The project’s recent partnerships seem impressive. Includes Chainlink, Chicago DeFi Alliance, and Digifox Wallet.
An important DeFi integration was also made with MakerDAO. KNC can now be used as a DAI warranty. The project has reached a milestone worth $ 1 billion of total turnover since its inception. More importantly, volume on an annual basis is moving and accelerating from $ 70 million in the first year to more than $ 600 million in 2020. Recently five million KNC (about 2.4% of total supply) were burned, improving Kyber’s supply and demand ratio. In July, the Kyber network witnessed a Katalyst upgrade that will improve governance, signature, delegation and structural improvements.
When Katalyst hits the main network, users will be able to either vote directly or delegate tokens to shareholder groups led by either companies like Stake Capital or community members. The KNC used to vote is burned, and in turn, voters get ETH as a reward. This setting creates a model for staking an uncommon contraction for the Kyber network. KyberDAO will facilitate chain governance, like many other projects based on Ethereum. An interesting partnership with xToken has been set up to help less-participating users stake out via xKNC. xKNC automatically makes specific voting decisions, making it easier for users to join and enjoy the return. The pool was created to draw BTC to Curve. Users who do this are eligible for returns in SNX, REN, CRV, and BAL. The more BTC lock on Synthetix, the more liquid it becomes, and the more attractive it is for traders. The project plans to continue expanding its products and move towards more decentralization. Synthetix futures are scheduled to appear on the exchange within a few months. The initial leverage is expected to be 10 to 20 times. The team aims to neglect its central oracle and replace it with one from Chainlink during the second stage of the migration. This will significantly increase the decentralization and flexibility of the platform. For following the project:
Derivatives: In traditional finance, a derivative represents a contract where the value is derived from an agreement based on the performance of an underlying asset. There are four main types of derivative contracts: futures, forwards, options, and swaps.
Synthetix is a decentralized artificial asset issuance protocol based on Ethereum. These synthetic assets are guaranteed by the Synthetix Network (SNX) code which enables, upon conclusion of the contract, the release of Synths. This combined collateral model allows users to make transfers between Compound directly with the smart contract, avoiding the need for counterparties. This mechanism solves DEX’s liquidity and sliding issues. Synthetix currently supports artificial banknotes, cryptocurrencies (long and short) and commodities.
SNX holders are encouraged to share their tokens as part of their proportionate percentage of activity fees are paid on Synthetix.Exchange, based on their contribution to the network. It contains three DApp applications for trading, signature and analysis: Exchange (Synths at no cost). Mintr (SNX lock for tuning and fee collection). Synthetix Network Token is a great platform in the ethereum ecosystem that leverages blockchain technology to help bridge the gap between the often mysterious cryptocurrency world and the more realistic world of traditional assets. That is, on the Synthetix network, there are Synths, which are artificial assets that provide exposure to assets such as gold, bitcoin, US dollars, and various stocks such as Tesla (NASDAQ: TSLA) and Apple (NASDAQ: AAPL). The whole idea of these artificial assets is to create shared assets where users benefit from exposure to the assets, without actually owning the asset.
It is a very unique idea, and a promising project in the ethereum landscape. Since it helps bridge the gap between cryptocurrencies and traditional assets, it creates a level of familiarity and value that is often lost in the assets of other digital currencies. This will make Synthetix take his seat in the next stage. On June 15, BitGo announced support for SNX and on June 19, Synthetix announced via blog post that Synthetix, Curve, and Ren “collaborated to launch a new stimulus group to provide liquidity for premium bitcoin on Ethereum”, and said the goal was to “create the most liquid Ethereum — the BTC-based suite available to provide traders with the lowest slippage” In trade between sBTC, renBTC and WBTC. “ For following the project:
Wallets: Wallets are a crucial gateway for interacting with DeFi products. While they commonly vary in their underlying product and asset support, across the board we’ve seen drastic improvements in usability and access thanks to the growing DeFi narrative.
It is the startup for consumer game-changing financial technology, which makes decentralized web access safer and easier. The company has built a smart and easy-to-use mobile wallet for Ethereum, which gives users the ability to easily retrieve their encrypted currencies on the go.
Asset Management: With such a vast amount of DeFi products, it’s crucial that tools are in place to better track and manage assets. In line with the permissionless nature of the wider DeFi ecosystem, these assets management projects provide users with the ability to seamlessly track their balances across various tokens, products and services in an intuitive fashion.
It is a smart wallet for DeFi that allows users to seamlessly manage multiple DeFi applications to maximize returns across different protocols in a fraction of the time. With InstaDapp, users can take advantage of industry-leading projects like Compound, MakerDAO and Uniswap in one easy-to-use portal. Instadapp currently supports dapps MakerDAO and Compound DeFi, allowing users to add collateral, borrow, redeem and redeem their collateral on each dapp, as well as refinance debt positions between the two. In addition to its ease of use, InstaDapp also adds additional benefits and use cases for supported projects that are not already supported. The project focuses on making DeFi easier for non-technical users by maintaining a decentralized spirit while stripping many of the confusing terms that many products bring with them.
InstaDapp has launched a one-click and one-transaction solution that allows users to quadruple the COMP Codes they can earn from using quadruple borrowing and lending. A good timing feature for sure, but this kind of simplification is exactly why Instadapp was created. Its goal is to create a simple interface into multiple DeFi applications running on the Ethereum Blockchain and then automate complex interactions in a way that enables users to maximize their profits while reducing transactions and Ethereum gas charges. To use Instadapp you will need Ethereum wallet and you will also have to create what is called Instadapp smart wallet in which token you want to use. For following the project:
Savings: There are a select few DeFi projects which offer unique and novel ways to earn a return by saving cryptocurrencies. This differs from lending as there is no borrower on the other side of the table.
Dharma is an easy-to-use layer above the compound protocol. It introduces new and non-technical users to transaction encryption and allows them to easily borrow or lend in DeFi markets and earn interest in stable currencies. You can start by simply using a debit card. Funds are kept in a non-portfolio portfolio, which constantly earns interest on all of your deposited assets. The value of Dharma’s DeFi lending experience is:
To raise money, recipients simply download the Dharma app. After creating a Dharma account, users connect their Twitter account to receive access to the money sent. They can choose to transfer money to US dollars and withdraw to a bank account, or leave DAI in a Dharma account where it will earn interest like all Dharma deposits. The submitted DAI will gain interest even before the receiving user requests it while waiting for the claim. In her ad, Dharma demonstrated a number of ways in which the new social payments feature can be used, including tips for your favorite Twitter personalities, accepting payments for goods or services in a very clear way, charitable donations across borders or transfer payments. The Dharma app is available for both Android and iOS. Dharma and Compound
Dharma generates interest by DAI signing the Compound Protocol. Dharma also appeared in the news recently after the release of a specification outlining a Layer 2 expansion solution allowing the platform to expand to handle current transaction volume 10x, ensuring users can transfer their money quickly even in times of heavy congestion on the Ethereum network. Dharma is developing its “core” and “underwriting” contracts within the company. Underwriting contracts are open source and non-custodian, while each loan contract is closed source. This means that the receiving address contains nodes that interact with a script on a central Dharma server.For following the project:
Insurance: Decentralized insurance protocols allow users to take out policies on smart contracts, funds, or any other cryptocurrencies through pooled funds and reserves.
Nexus Mutual uses blockchain technology to return mutual values to insurance by creating consistent incentives with the smart contract symbol on the Ethereum blockchain. It is built on the Ethchaum blockchain and uses a modular system to aggregate smart Ethereum nodes, allowing to upgrade the system’s logical components without affecting other components.
The way Nexus works is members of the mutual association by purchasing NXM codes that allow them to participate in the decentralized independent organization (DAO). All decisions are voted on by members, who are motivated to pay real claims. It sees plenty of opportunities in a gradual transition of Ethereum to Eth 2.0, which is expected to start later this year. Eth 2.0 moves the network from the power-hungry Proof-of-Consensus (PoW) algorithm to Proof-of-Stake (PoS), a way to sign cryptocurrency in order to keep the network afloat. Having a steady return on signature from the Ether (ETH) can be somewhat compared to the way in which insurance companies invest in the real world the premiums they collect.
By setting a strong set of conditions for Nexus Mutual, anyone will be able to bring in and acquire a new form of risk for mutual coverage — assuming that members are willing to share NXM. With this design, the mutual discretion will be able to expand into much broader fields beyond smart contracts. In addition to defining multi-layered term agreements, Nexus Mutual also has some other advantages needed to achieve this visualization. For following the project:
Disclaimer: This report is a study of what is happening in the market at the present time and we do not support or promote any of the mentioned projects or cryptocurrencies. Any descriptions of the jobs and services provided are for information only. We are not responsible for any loss of funds or other damages caused.
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The Federal Reserve and the United States government are pumping extreme amounts of money into the economy, already totaling over $484 billion. They are doing so because it already had a goal to inflate the United States Dollar (USD) so that the market can continue to all-time highs. It has always had this goal. They do not care how much inflation goes up by now as we are going into a depression with the potential to totally crash the US economy forever. They believe the only way to save the market from going to zero or negative values is to inflate it so much that it cannot possibly crash that low. Even if the market does not dip that low, inflation serves the interest of powerful people.
The impending crash of the stock market has ramifications for Bitcoin, as, though there is no direct ongoing-correlation between the two, major movements in traditional markets will necessarily affect Bitcoin. According to the Blockchain Center’s Cryptocurrency Correlation Tool, Bitcoin is not correlated with the stock market. However, when major market movements occur, they send ripples throughout the financial ecosystem which necessary affect even ordinarily uncorrelated assets.
Therefore, Bitcoin will reach X price on X date after crashing to a price of X by X date.
Stock Market CrashThe Federal Reserve has caused some serious consternation with their release of ridiculous amounts of money in an attempt to buoy the economy. At face value, it does not seem to have any rationale or logic behind it other than keeping the economy afloat long enough for individuals to profit financially and politically. However, there is an underlying basis to what is going on which is important to understand in order to profit financially.
All markets are functionally price probing systems. They constantly undergo a price-discovery process. In a fiat system, money is an illusory and a fundamentally synthetic instrument with no intrinsic value – similar to Bitcoin. The primary difference between Bitcoin is the underlying technology which provides a slew of benefits that fiat does not. Fiat, however, has an advantage in being able to have the support of powerful nation-states which can use their might to insure the currency’s prosperity.
Traditional stock markets are composed of indices (pl. of index). Indices are non-trading market instruments which are essentially summaries of business values which comprise them. They are continuously recalculated throughout a trading day, and sometimes reflected through tradable instruments such as Exchange Traded Funds or Futures. Indices are weighted by market capitalizations of various businesses.
Price theory essentially states that when a market fails to take out a new low in a given range, it will have an objective to take out the high. When a market fails to take out a new high, it has an objective to make a new low. This is why price-time charts go up and down, as it does this on a second-by-second, minute-by-minute, day-by-day, and even century-by-century basis. Therefore, market indices will always return to some type of bull market as, once a true low is formed, the market will have a price objective to take out a new high outside of its’ given range – which is an all-time high. Instruments can only functionally fall to zero, whereas they can grow infinitely.
So, why inflate the economy so much?
Deflation is disastrous for central banks and markets as it raises the possibility of producing an overall price objective of zero or negative values. Therefore, under a fractional reserve system with a fiat currency managed by a central bank – the goal of the central bank is to depreciate the currency. The dollar is manipulated constantly with the intention of depreciating its’ value.
Central banks have a goal of continued inflated fiat values. They tend to ordinarily contain it at less than ten percent (10%) per annum in order for the psyche of the general populace to slowly adjust price increases. As such, the markets are divorced from any other logic. Economic policy is the maintenance of human egos, not catering to fundamental analysis. Gross Domestic Product (GDP) growth is well-known not to be a measure of actual growth or output. It is a measure of increase in dollars processed. Banks seek to produce raising numbers which make society feel like it is growing economically, making people optimistic. To do so, the currency is inflated, though inflation itself does not actually increase growth. When society is optimistic, it spends and engages in business – resulting in actual growth. It also encourages people to take on credit and debts, creating more fictional fiat.
Inflation is necessary for markets to continue to reach new heights, generating positive emotional responses from the populace, encouraging spending, encouraging debt intake, further inflating the currency, and increasing the sale of government bonds. The fiat system only survives by generating more imaginary money on a regular basis.
Bitcoin investors may profit from this by realizing that stock investors as a whole always stand to profit from the market so long as it is managed by a central bank and does not collapse entirely. If those elements are filled, it has an unending price objective to raise to new heights. It also allows us to realize that this response indicates that the higher-ups believe that the economy could crash in entirety, and it may be wise for investors to have multiple well-thought-out exit strategies.
Economic Analysis of BitcoinThe reason why the Fed is so aggressively inflating the economy is due to fears that it will collapse forever or never rebound. As such, coupled with a global depression, a huge demand will appear for a reserve currency which is fundamentally different than the previous system. Bitcoin, though a currency or asset, is also a market. It also undergoes a constant price-probing process. Unlike traditional markets, Bitcoin has the exact opposite goal. Bitcoin seeks to appreciate in value and not depreciate. This has a quite different affect in that Bitcoin could potentially become worthless and have a price objective of zero.
Bitcoin was created in 2008 by a now famous mysterious figure known as Satoshi Nakamoto and its’ open source code was released in 2009. It was the first decentralized cryptocurrency to utilize a novel protocol known as the blockchain. Up to one megabyte of data may be sent with each transaction. It is decentralized, anonymous, transparent, easy to set-up, and provides myriad other benefits. Bitcoin is not backed up by anything other than its’ own technology.
Bitcoin is can never be expected to collapse as a framework, even were it to become worthless. The stock market has the potential to collapse in entirety, whereas, as long as the internet exists, Bitcoin will be a functional system with a self-authenticating framework. That capacity to persist regardless of the actual price of Bitcoin and the deflationary nature of Bitcoin means that it has something which fiat does not – inherent value.
Bitcoin is based on a distributed database known as the “blockchain.” Blockchains are essentially decentralized virtual ledger books, replete with pages known as “blocks.” Each page in a ledger is composed of paragraph entries, which are the actual transactions in the block.
Blockchains store information in the form of numerical transactions, which are just numbers. We can consider these numbers digital assets, such as Bitcoin. The data in a blockchain is immutable and recorded only by consensus-based algorithms. Bitcoin is cryptographic and all transactions are direct, without intermediary, peer-to-peer.
Bitcoin does not require trust in a central bank. It requires trust on the technology behind it, which is open-source and may be evaluated by anyone at any time. Furthermore, it is impossible to manipulate as doing so would require all of the nodes in the network to be hacked at once – unlike the stock market which is manipulated by the government and “Market Makers”. Bitcoin is also private in that, though the ledge is openly distributed, it is encrypted. Bitcoin’s blockchain has one of the greatest redundancy and information disaster recovery systems ever developed.
Bitcoin has a distributed governance model in that it is controlled by its’ users. There is no need to trust a payment processor or bank, or even to pay fees to such entities. There are also no third-party fees for transaction processing. As the ledge is immutable and transparent it is never possible to change it – the data on the blockchain is permanent. The system is not easily susceptible to attacks as it is widely distributed. Furthermore, as users of Bitcoin have their private keys assigned to their transactions, they are virtually impossible to fake. No lengthy verification, reconciliation, nor clearing process exists with Bitcoin.
Bitcoin is based on a proof-of-work algorithm. Every transaction on the network has an associated mathetical “puzzle”. Computers known as miners compete to solve the complex cryptographic hash algorithm that comprises that puzzle. The solution is proof that the miner engaged in sufficient work. The puzzle is known as a nonce, a number used only once. There is only one major nonce at a time and it issues 12.5 Bitcoin. Once it is solved, the fact that the nonce has been solved is made public.
A block is mined on average of once every ten minutes. However, the blockchain checks every 2,016,000 minutes (approximately four years) if 201,600 blocks were mined. If it was faster, it increases difficulty by half, thereby deflating Bitcoin. If it was slower, it decreases, thereby inflating Bitcoin. It will continue to do this until zero Bitcoin are issued, projected at the year 2140. On the twelfth of May, 2020, the blockchain will halve the amount of Bitcoin issued when each nonce is guessed. When Bitcoin was first created, fifty were issued per block as a reward to miners. 6.25 BTC will be issued from that point on once each nonce is solved.
Unlike fiat, Bitcoin is a deflationary currency. As BTC becomes scarcer, demand for it will increase, also raising the price. In this, BTC is similar to gold. It is predictable in its’ output, unlike the USD, as it is based on a programmed supply. We can predict BTC’s deflation and inflation almost exactly, if not exactly. Only 21 million BTC will ever be produced, unless the entire network concedes to change the protocol – which is highly unlikely.
Some of the drawbacks to BTC include congestion. At peak congestion, it may take an entire day to process a Bitcoin transaction as only three to five transactions may be processed per second. Receiving priority on a payment may cost up to the equivalent of twenty dollars ($20). Bitcoin mining consumes enough energy in one day to power a single-family home for an entire week.
Trading or Investing?The fundamental divide in trading revolves around the question of market structure. Many feel that the market operates totally randomly and its’ behavior cannot be predicted. For the purposes of this article, we will assume that the market has a structure, but that that structure is not perfect. That market structure naturally generates chart patterns as the market records prices in time. In order to determine when the stock market will crash, causing a major decline in BTC price, we will analyze an instrument, an exchange traded fund, which represents an index, as opposed to a particular stock. The price patterns of the various stocks in an index are effectively smoothed out. In doing so, a more technical picture arises. Perhaps the most popular of these is the SPDR S&P Standard and Poor 500 Exchange Traded Fund ($SPY).
In trading, little to no concern is given about value of underlying asset. We are concerned primarily about liquidity and trading ranges, which are the amount of value fluctuating on a short-term basis, as measured by volatility-implied trading ranges. Fundamental analysis plays a role, however markets often do not react to real-world factors in a logical fashion. Therefore, fundamental analysis is more appropriate for long-term investing.
The fundamental derivatives of a chart are time (x-axis) and price (y-axis). The primary technical indicator is price, as everything else is lagging in the past. Price represents current asking price and incorrectly implementing positions based on price is one of the biggest trading errors.
Markets and currencies ordinarily have noise, their tendency to back-and-fill, which must be filtered out for true pattern recognition. That noise does have a utility, however, in allowing traders second chances to enter favorable positions at slightly less favorable entry points. When you have any market with enough liquidity for historical data to record a pattern, then a structure can be divined. The market probes prices as part of an ongoing price-discovery process. Market technicians must sometimes look outside of the technical realm and use visual inspection to ascertain the relevance of certain patterns, using a qualitative eye that recognizes the underlying quantitative nature
Markets and instruments rise slower than they correct, however they rise much more than they fall. In the same vein, instruments can only fall to having no worth, whereas they could theoretically grow infinitely and have continued to grow over time. Money in a fiat system is illusory. It is a fundamentally synthetic instrument which has no intrinsic value. Hence, the recent seemingly illogical fluctuations in the market.
According to trade theory, the unending purpose of a market or instrument is to create and break price ranges according to the laws of supply and demand. We must determine when to trade based on each market inflection point as defined in price and in time as opposed to abandoning the trend (as the contrarian trading in this sub often does). Time and Price symmetry must be used to be in accordance with the trend. When coupled with a favorable risk to reward ratio, the ability to stay in the market for most of the defined time period, and adherence to risk management rules; the trader has a solid methodology for achieving considerable gains.
We will engage in a longer term market-oriented analysis to avoid any time-focused pressure. The Bitcoin market is open twenty-four-hours a day, so trading may be done when the individual is ready, without any pressing need to be constantly alert. Let alone, we can safely project months in advance with relatively high accuracy. Bitcoin is an asset which an individual can both trade and invest, however this article will be focused on trading due to the wide volatility in BTC prices over the short-term.
Technical Indicator Analysis of BitcoinTechnical indicators are often considered self-fulfilling prophecies due to mass-market psychology gravitating towards certain common numbers yielded from them. They are also often discounted when it comes to BTC. That means a trader must be especially aware of these numbers as they can prognosticate market movements. Often, they are meaningless in the larger picture of things.
Trend Definition Analysis of BitcoinTrend definition is highly powerful, cannot be understated. Knowledge of trend logic is enough to be a profitable trader, yet defining a trend is an arduous process. Multiple trends coexist across multiple time frames and across multiple market sectors. Like time structure, it makes the underlying price of the instrument irrelevant. Trend definitions cannot determine the validity of newly formed discretes. Trend becomes apparent when trades based in counter-trend inflection points continue to fail.
Downtrends are defined as an instrument making lower lows and lower highs that are recurrent, additive, qualified swing setups. Downtrends for all instruments are similar, except forex. They are fast and complete much quicker than uptrends. An average downtrend is 18 months, something which we will return to. An uptrend inception occurs when an instrument reaches a point where it fails to make a new low, then that low will be tested. After that, the instrument will either have a deep range retracement or it may take out the low slightly, resulting in a double-bottom. A swing must eventually form.
A simple way to roughly determine trend is to attempt to draw a line from three tops going upwards (uptrend) or a line from three bottoms going downwards (downtrend). It is not possible to correctly draw a downtrend line on the BTC chart, but it is possible to correctly draw an uptrend – indicating that the overall trend is downwards. The only mitigating factor is the impending stock market crash.
Time Symmetry Analysis of BitcoinTime is the movement from the past through the present into the future. It is a measurement in quantified intervals. In many ways, our perception of it is a human construct. It is more powerful than price as time may be utilized for a trade regardless of the market inflection point’s price. Were it possible to perfectly understand time, price would be totally irrelevant due to the predictive certainty time affords. Time structure is easier to learn than price, but much more difficult to apply with any accuracy. It is the hardest aspect of trading to learn, but also the most rewarding.
Humans do not have the ability to recognize every time window, however the ability to define market inflection points in terms of time is the single most powerful trading edge. Regardless, price should not be abandoned for time alone. Time structure analysis It is inherently flawed, as such the markets have a fail-safe, which is Price Structure. Even though Time is much more powerful, Price Structure should never be completely ignored. Time is the qualifier for Price and vice versa. Time can fail by tricking traders into counter-trend trading.
Time is a predestined trade quantifier, a filter to slow trades down, as it allows a trader to specifically focus on specific time windows and rest at others. It allows for quantitative measurements to reach deterministic values and is the primary qualifier for trends. Time structure should be utilized before price structure, and it is the primary trade criterion which requires support from price. We can see price structure on a chart, as areas of mathematical support or resistance, but we cannot see time structure.
Time may be used to tell us an exact point in the future where the market will inflect, after Price Theory has been fulfilled. In the present, price objectives based on price theory added to possible future times for market inflection points give us the exact time of market inflection points and price.
Time Structure is repetitions of time or inherent cycles of time, occurring in a methodical way to provide time windows which may be utilized for inflection points. They are not easily recognized and not easily defined by a price chart as measuring and observing time is very exact. Time structure is not a science, yet it does require precise measurements. Nothing is certain or definite. The critical question must be if a particular approach to time structure is currently lucrative or not.
We will measure it in intervals of 180 bars. Our goal is to determine time windows, when the market will react and when we should pay the most attention. By using time repetitions, the fact that market inflection points occurred at some point in the past and should, therefore, reoccur at some point in the future, we should obtain confidence as to when SPY will reach a market inflection point. Time repetitions are essentially the market’s memory. However, simply measuring the time between two points then trying to extrapolate into the future does not work. Measuring time is not the same as defining time repetitions. We will evaluate past sessions for market inflection points, whether discretes, qualified swings, or intra-range. Then records the times that the market has made highs or lows in a comparable time period to the future one seeks to trade in.
What follows is a time Histogram – A grouping of times which appear close together, then segregated based on that closeness. Time is aligned into combined histogram of repetitions and cycles, however cycles are irrelevant on a daily basis. If trading on an hourly basis, do not use hours.
Evaluating the yearly lows, we see that BTC tends to have its lows primarily at the beginning of every year, with a possibility of it being at the end of the year. Following the same methodology, we get the middle of the month as the likeliest day. However, evaluating the monthly lows for the past year, the beginning and end of the month are more likely for lows.
Therefore, we have two primary dates from our histogram.
1/1/21, 1/15/21, and 1/29/21
2:00am, 8:00am, 12:00pm, or 10:00pm
In fact, the high for this year was February the 14th, only thirty days off from our histogram calculations.
The 8.6-Year Armstrong-Princeton Global Economic Confidence model states that 2.15 year intervals occur between corrections, relevant highs and lows. 2.15 years from the all-time peak discrete is February 9, 2020 – a reasonably accurate depiction of the low for this year (which was on 3/12/20). (Taking only the Armstrong model into account, the next high should be Saturday, April 23, 2022). Therefore, the Armstrong model indicates that we have actually bottomed out for the year!
Bear markets cannot exist in perpetuity whereas bull markets can. Bear markets will eventually have price objectives of zero, whereas bull markets can increase to infinity. It can occur for individual market instruments, but not markets as a whole. Since bull markets are defined by low volatility, they also last longer. Once a bull market is indicated, the trader can remain in a long position until a new high is reached, then switch to shorts. The average bear market is eighteen months long, giving us a date of August 19th, 2021 for the end of this bear market – roughly speaking. They cannot be shorter than fifteen months for a central-bank controlled market, which does not apply to Bitcoin. (Otherwise, it would continue until Sunday, September 12, 2021.) However, we should expect Bitcoin to experience its’ exponential growth after the stock market re-enters a bull market.
Terry Laundy’s T-Theory implemented by measuring the time of an indicator from peak to trough, then using that to define a future time window. It is similar to an head-and-shoulders pattern in that it is the process of forming the right side from a synthetic technical indicator. If the indicator is making continued lows, then time is recalculated for defining the right side of the T. The date of the market inflection point may be a price or indicator inflection date, so it is not always exactly useful. It is better to make us aware of possible market inflection points, clustered with other data. It gives us an RSI low of May, 9th 2020.
The Bradley Cycle is coupled with volatility allows start dates for campaigns or put options as insurance in portfolios for stocks. However, it is also useful for predicting market moves instead of terminal dates for discretes. Using dates which correspond to discretes, we can see how those dates correspond with changes in VIX.
Therefore, our timeline looks like:
Qtum has proposed a new consensus algorithm, called SCAR, that could massively reduce transaction times. It would additionally lighten demands on the blockchain’s underlying network. In the context of cryptocurrency, consensus algorithm is an essential element of each blockchain network, since they are responsible for maintaining the integrity and security of these distributed systems. The first cryptocurrency consensus algorithm that was created was Proof of Work (PoW), developed by Satoshi Nakamoto and implemented on Bitcoin as a method to overcome Byzantine errors. ICON, the largest public blockchain network of South Korea, has recently announced its new consensus algorithm. On the 8th of April 2020, ICON revealed the Loop Fault Tolerance 2.0, or LFT 2.0 ... A consensus algorithm like PoW thus ensures that the next block in the blockchain is always the only true one, thus keeping the blockchain together as a decentralized, distributed database. PoW has helped the Bitcoin blockchain grow into a robust network that has not yet been hacked. Proof of Work (PoW) is the first consensus algorithm used in the blockchain. This proof was introduced with the Bitcoin blockchain. It is a consensus algorithm that checks a block by asking the machines, also called miners, to do a very complex job. The objective of this work is to eliminate the potential proliferation of inappropriate ...
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