Part 1 — Blockchain 101Welcome the BLOCKCHAINNever like in the few years we have come across this term, and it suscitates both curiosities (covered in a layer of mystery) and, to certain extents, concern for a technology that yet, many struggles to comprehend.Although become mainstream in recent years, it is worth mentioning that the concept of Blockchain bases itself on the concept of a “LEDGER,” aka a book or collection of accounts in which account transactions are recorded.Therefore is correct to state that blockchain is tied with the story of accounting.With the progression of time and the further advancement of the technology during history, blockchain met with the already established and widely used “CRYPTOGRAPHY,” aka the practice and study of techniques for securing communication in the presence of adversarial behavior.This method of securing messages was developed during ancient times and most notably was used during conflicts to create secure channels in which messages could travel across safely and with minimal risks even if they were to fall into the hands of the rival party/ies. (In modern times — militaries with their encrypted communication channels and encrypted messages).CRYPTOGRAPHY is an evolution of an old tried-and-true technology— a particular mention goes to Rose Greenhow, a spy for the Confederate Army during the American Civil war: she developed her own method to encrypt data and send those data to the confederate army to reveal the plans of the Union.But it was in 2008, hence the Financial Crisis, looming on all of us, that a pioneering individual or group of individuals, named “Satoshi Nakamoto” released the White Paper (a document) where it was highlighting and envisioning a PEER-TO-PEER form of electronic cash, named “Bitcoin.”Initially a niche for internet “punks” and visionaries that envisaged Satoshi’s vision, Bitcoin started its remarkable journey to become the global…
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“What is Cryptography?”
Part 2 — Blockchain 101In the previous part, we had a broad view of blockchain technology and how it is structured.We identified the key, core elements that make the blockchain such an interesting technology and so disruptive for so many fields, for its potential use cases and transparency.One, and perhaps the most important core component is the Cryptography (derived from the Greek word kryptos, which means hidden) and is nothing less than the science of sending messages back and forth from one party to another in the presence of ADVERSARIES or BAD ACTORS participants who wish to CORRUPT the content of the message.There are five primary functions of cryptography:. Privacy/confidentiality: Ensuring that no one can read the message except the intended receiver;. Authentication: The process of proving one’s identity;. Integrity: Assuring the receiver that the received message has not been altered in any way from the original;. Non-repudiation: A mechanism to prove that the sender really sent this message;. Key exchange: The method by which crypto keys are shared between sender and receiver.It is closely associated with encryption, which is the act of scrambling ordinary text into what’s known as ciphertext and then back again upon arrival.Cryptography is therefore, a 2-way function with 4 key components:the SECRET = the data which we are trying to protect;the KEY = a piece of data used to encrypt and decrypt the secret;the FUNCTION = an algorithmic function (called “hash”) used to encrypt the message;the CIPHER = the encrypted secret data (aka the output of the function).Ancient Egyptians were known to use these methods in complex hieroglyphics, and Roman Emperor Julius Caesar is credited with using one of the first modern ciphers.In today’s computer-centric world, cryptography is an indispensable tool for protecting information in computer systems, and the simplest method of cryptography uses the…
“Trust and Security in the Blockchain”
A smart contract is nothing more than computer code thought as a set of rules that get executed every time a type of event happens.They come with a peculiar set of valuable features such as:1) AUTONOMY: can be developed by anyone with no need for intermediaries, lawyers, brokers, or auditors;2) EFFICIENCY & COST SAVINGS by removing intermediaries (efficiency gains);3) BACKUP: providing a permanent record by allowing auditing, insight, traceability even if the creator is no longer in business;4) ACCURACY by replacing human intermediaries with EXECUTABLE CODE (hence the process is ALWAYS PERFORMED THE SAME WAY);5) PROCESSING SPEED: smart contracts can improve the processing speed of business processes that run across multiple enterprises.Despite the name, smart contracts are not legally binding contracts. Their main function is to programmatically execute business logic that performs various tasks, processes, or transactions that have been programmed into them to respond to a given set of conditions.If the code for the smart contract needs an external source to determine if it has met its restrictions, it will use an ORACLE (a source of knowledge).This would be useful if the smart contract were executing an insurance contract for crops. Following this example, the contract would look something like this: “If the temperature drops below 32 degrees for more than one hour, release $5,000 to John.”for a more in-depth look at oracles, here’s a comprehensive and well-written article by Patrick Collins: https://betterprogramming.pub/what-is-a-blockchain-oracle-f5ccab8dbd72
“Consensus Mechanism”
We now learnt that Blockchain is a distributed decentralized network that provides immutability, privacy, security, and transparency. There is no central authority present to validate and verify the transactions, yet every transaction in the Blockchain is considered to be completely secured and verified.In the previous articles, we learnt how transactions are grouped into blocks and added to the network. However, this only happens once the network participants have reached an agreement, or CONSENSUS, on the validity of the transactions.The word consensus comes from Latin meaning, “agreement, accord.”This ensures that all participants are working based on the same ledger containing the same set of historical transactions hence they are incentivized to “play by the rules,” boosting the security of the whole system and preventing the corruption of files.Essentially, the consensus protocol makes sure that every new block that is added to the Blockchain is the one and only version of the truth that is agreed upon by all the nodes in the Blockchain.Let’s now have a look at the two most used and developed consensus algorithms and how they work:
On Ethereum the First NFT magazine: Collectible Covers and top 10 Industry Leaders
Today sees the announcement of the launch of The NFT Magazine, the first online magazine in NFT form to be collected and read on Ethereum.The magazine will be on OpenSea12 issues per year on a monthly basis, featuring rankings of crypto players, market trends, interviews and advice from industry experts. Every month there will be special features dedicated to digital art, collectibles, cryptocurrency, fintech and blockchain.Copies of the magazine can only be purchased on OpenSea, collecting the covers in the form of NFT. By buying this non-fungible token, the user will be able to read the magazine, joining the so-called Readers Club. Each cover will be created in collaboration with leading international crypto artists, whose exclusive interviews will also be featured in the issue.The project will give a lot of space to the community who will be able to enjoy discounted pre-sales to buy The NFT Magazine, participate in the decisions of the editorial staff and have numerous benefits in terms of events, merchandise and much more.The price for the first issue of the NFT Magazine will be 0.05 EthereumWith NFT Magazine, users will be able to create a secondary marketThe price for the first issue will be 0.05 Ethereum, while the pre-sale price will be 0.03 ETH. Each user can decide to resell their copy, thus setting up a secondary market. If a user decides to sell their copy, they will lose access to the benefits of participating in the community and reading the magazine.The first issue will be 500 copies, with the number increasing by 200 copies each month, and will go on sale on OpenSea on November 2. Gradually the covers and all the protagonists mentioned in the different issues of the magazine will be revealed on the project’s social networks. Unsold copies will be burned.Benefits include…
GETTING STARTED ON YOUR CRYPTO JOURNEY
Investing advice for newbiesEven for experienced investors, investing in cryptocurrencies may be perplexing. Here are a few pointers for those who are just getting started with cryptocurrencies.Newbie Crypto TraderRESEARCH IS ESSENTIAL IN THIS CASEIf you just use the information you already have, you’ll never be able to develop. If you want to do more, you’ll have to increase your level of knowledge. And in order to learn more, you must do industry research and keep learning new things on a continuous basis. It’s a no-brainer to stay on top of the latest developments in blockchain and cryptography. Why should it be any different if you did it the same way in any other job?For information and updates, you should always use reliable sources, listen to what industry professionals have to say about market shifts, and develop your own plans based on what you learn. There have always been competing viewpoints on crypto, and the environment varies throughout the sector. They may agree on the result, but they may not agree on everything else. Put the knowledge you’ve gained through your studies to good use, and you’ll always come out on top. Only by deciding to improve your knowledge will you be able to profit from crypto trading.VOLATILITY SHOULD BE RESPECTEDAny trader, no matter how skilled or terrible they are at it, should make an effort to take into account a cryptographic currency’s high degree of volatility and its worth. Investments in digital currencies are by far the most volatile, and there are no laws dictating how their values should fluctuate. If you’re going to trade, you should base your choices on research as well as the patterns of various currencies and their price fluctuations.DIVERSIFY YOUR PORTFOLIOIt’s a bit of a cliché, but it still works, so pay attention. In order…
Bitcoin ETF Speculations Spreading in Crypto Community — Analysis, 18 Oct
In the middle of last week, speculations about the potential launch of Bitcoin ETFs spread in the crypto community. First, most crypto-related forums and social media platforms published a copy of the pre-approval notice of Valkyrie Bitcoin Strategy ETF by Nasdaq:Source: TwitterSecond, asset manager ProShares filed an updated prospectus of its potential Bitcoin ETF with the U.S. Security and Exchange Commission — a signal that the launch of this ETF will happen very soon:Source: TwitterThe cryptocurrency enthusiasts expect these Bitcoin ETFs to start trading on Monday or Tuesday this week:Source: TwitterThe beginning of the launch of Bitcoin ETFs in the U.S. may turn out to be a game-changer for the whole crypto industry. Millions of investors from the traditional centralized financial world will receive access to cryptocurrency investing via these ETFs. According to Statista.com, the New York Stock Exchange and Nasdaq (the two largest exchanges in the U.S.) have a combined market cap of over $50 trillion or almost 20x the crypto market cap as of August 2021:Source: Statista.comThe positive news relating to the potential launch of the Bitcoin ETFs was the principal market price driver this past week. Most of the top cryptocurrencies recorded a decent price increase. Bitcoin has surpassed the psychological level of $60,000 for the first time since April-May.Now, the Monday market starts with mixed price dynamics, undergoing a small intra-day consolidation. According to Coin360.com, one Bitcoin costs €53,359.77 (+1.82%), one Ethereum — €3,300.64 (-1.72%), one DOGE — €0.2052 (+6.49%), and one UNI — €22.17 (-4.49%):Source: Coin360.com (Daily crypto market performance)Now, let us look at the price charts of the leading cryptocurrencies against the euro in the most noteworthy time frames.In the weekly chart (1W), after the Bullish Engulfing, BTC/EUR has formed Three White Soldiers — a typical bullish pattern:This candlestick formation confirms the change in…
Best Cryptocurrency Wallets in 2021 for Bitcoin and Blockchain Assets
TECHNOLOGY TRENDSA curated list of some of best Cryptocurrency wallets.Cryptocurrency wallets provide users with a digital solution for securely storing and managing blockchain assets and cryptocurrencies. These wallets allow users to send, receive, and trade cryptocurrencies. While some cryptocurrency wallets may only provide support for a single cryptocurrency, many are multi-asset solutions, allowing users to hold multiple…
Options To buy After The Approval Of The First Cryptocurrency Market Exchange Traded Fund
It was surprising to see how the speculative news of the approval of the first exchange traded fund (ETF) made Bitcoin radically break the resistance of $ 60,000.In the midst of this heat of buyers and big players placing their positions at stake, we want to recommend some options that you can buy to generate good profits in the medium and long term. Above all, this article will serve to warn of the possibility of a movement against which many are predicting.Two things can happen this new week. One of them is that with the launch of the investment fund, some try to make the primary trend of Bitcoin go to the bottom of the well. The other, that the demand for purchases rises and manages to break the historical maximum price and well above those of $ 64,000.The truth of the case is that, weekly, Bitcoin has most of the indicators in favor of the trend. We can translate that as a positive signal towards the search for a near historical maximum.Many at this point wonder whether or not they should buy. Our most sincere answer is that we must warn that we are at a decision point and wait where there is a high risk but with some follow-up for those who made the early purchases.For those who have not yet decided what to do, we recommend making average prices between $ 59,000 and $ 62,000.For those who think about continuing to buy Ethereum, we see that weekly it will enter a phase of constant price oscillation between the current price of $ 3800 and $ 5000. The latter as a maximum price and important resistance in case the volume of purchases continues to increase.Weekly indicators for Ethereum show positivism towards a possible price accumulation but with low…
What are KYC and AML, and Why Do They Matter in Crypto?
Financial service providers such as crypto exchanges and trading platforms face significant pressure to fight illicit activities related to transfers of fiat currencies and digital assets. Enter Know Your Customer (KYC) and Anti-Money Laundering (AML). KYC and AML are regulatory requirements that safeguard customers’ information and funds within exchanges, wallets, and service providers.When users create an account on any exchange, they need to complete KYC verification. It allows the platform to verify the customer’s identity by collecting necessary information like official identification or bank statements.Following KYC regulations is a proactive measure. Financial service providers take customers’ details beforehand to make sure the person is legitimate. Institutions do not allow customers to make financial transactions without meeting KYC requirements. Even if they enable users to create an account without KYC, they do not get full access to all the functions and benefits of the platform.Apart from customer identity verification, KYC combats fraudulent practices within the system, which provides several additional benefits:By establishing customers’ identity and financial history, lenders can assess their risks, which leads to responsible lending and risk assessment.KYC fights identity theft and other financial fraudsAs KYC is a proactive measure, it minimizes the risk of money laundering.It increases the trust, security, and accountability of financial service providers.AML is a set of regulations designed to prevent the movement and laundering of illegal funds. AML measures target terrorist financing, tax fraud, and international smuggling.AML is closely associated with the Financial Action Task Force (FATF) to encourage international cooperation. AML regulations differ from country to country, but there is currently a global effort to align the standards.With the progressive technological developments in the financial sector, methods to launder illegal money have also evolved. The AML software recognizes patterns of suspicious behavior to prevent transfer of money for illicit practices such as terrorism.The…