It can unquestionably be stated that the increased adoption of smart contracts demands strong security guarantees. Unfortunately, it is challenging to create smart contracts that are free of security bugs. As a consequence, critical vulnerabilities in smart contracts are discovered and exploited every few months.
Significance of Smart Contract Security Audit
The rise of Decentralized Finance is inevitable. The DeFi market is growing at an incredibly exponential rate.
However, this year has quite clearly proved that it’s indispensable to consider the best security practices while developing the Smart Contract or building an entire Decentralized Application with so much at stake.
Most importantly, it’s high time for us to understand that Smart Contract Audits can no more be neglected.
With a significant dependency on smart contracts, DeFi audits become crucial where a third party reviews every line of code and helps to identify the bugs and bottlenecks.
If left unaudited, the DeFi contracts may result in setbacks that include loss of funds and manipulation of the system. Sometimes, it may also lead to the shutdown of the company.
Therefore, it becomes necessary to check the team’s quality auditing your DeFi contract and get acquainted with their auditing process.
Vicious Smart Contract Vulnerabilities that can Wipe Out Millions
- External Calls — Although external calls have their own significance but are extremely risky since they can technically shift the control over execution to any malicious actor.
dForce, a decentralized finance protocol lost around $25 million in April 2020. The attack took place when LendFi, the lending app of dForce, was exploited because of an external call that led to a reentrancy attack.
Note: It is crucial to ensure that no state changes take places after an external call is made. Read more about external calls and their vicious side here.
2. Reentrancy Attack ( DAO Fiasco )
The Dao Hack on June 17, 2016. This was the hack where the attacker could steal 3.6 million ETH in the first few hours of the attack by sampling the reentering the contract again and again.
3. Price oracle Manipulation
The year 2020 witnessed some massive price oracle manipulation attacks. Renowned DeFi protocols like bZx hack, Harvest, Cheese Bank hack faced huge losses due to manipulation of price oracles.
While bZx lost $350,000 in the first attack(12 Feb 2020), it lost around $650,000 in the second attack(18 Feb 2020). On the other hand, Harvest finance lost approximately $24million due to an oracle manipulation attack using flash loans.
Read more about flash loan & oracle manipulation attacks here.
4. Ownership of the deployed contract
Parity Multisig wallet lost 150,000 ETH, which was around 30M USD back then.
5. Timestamp Dependence
Note: If the contract function can tolerate a 15-second drift in time, it is safe to use block.timestamp
6. Storage injection vulnerability in NEO Smart Contracts (which allows anyone to change the token’s total supply limit by transferring their tokens to an unspecified address.)
We keep ourselves always updated in smart contract auditing technology, try our best to keep us most up to date with the latest security practices. I am writing this blog to share our checklist and framework to audit every contract. This checklist can be applied to any smart contract, but we use other strategies to ensure smart contract’s security based on the contract’s business logic.
Imperative Checkpoints a Contract must go through
To ensure your code is easily followable by auditors, team members, automated tools, and the wider community, you should follow the style guide based on Solium’s standards. Having a set and automatically enforced style guide will additionally make it easier to spot the erroneous code.
1. Correct Functions Visibility:-
Functions in solidity can have four visibility specifiers:
private, with the
public being the default. State variables can be
internal being the default. Explicitly specifying the visibility of functions and state variables is a security best practice.
Absent specifiers can be dangerous, especially in the case of functions where the default is public accessibility. If such a function has critical logic, then it can be triggered from any external address to misuse the contract potentially. The first hack on the Parity multisign wallet exploited such missing function visibility specifiers leading to the attacker stealing $31M worth of Ether.
2. Data Storage:-
In solidity, data can be stored in memory which is non-persistent and less expensive, or in storage that is persistent and very expensive. While writing smart contracts, one should properly analyze where the data should be stored. By default state variables and local variables are stored in storage and function parameters are stored in memory.
3. Prevent overflow and underflow:-
An overflow is when a number gets incremented above its maximum value. Solidity can handle up to 256-bit numbers (up to ²²⁵⁶-1), so incrementing by 1 would result in 0.
Likewise, when the number is unsigned in the inverse case, decrementing will underflow the number, resulting in the maximum possible value.
Underflow and overflow can be prevented by using SafeMath library to perform math operations in smart contracts.
4. External Calls — Every external contract call is a risk:-
External calls to untrusted contracts can bring certain risks and errors. External calls may execute malicious code in that contract or any other contract that it depends upon. As such, every external call should be treated as a potential security risk. When it is not possible, or undesirable to remove external calls, use the recommendations.
5. Check for re-enterancy and ensure the state committed before the external call.
The Reentrancy attack, probably the most famous Ethereum vulnerability, surprised everyone when discovered for the first time. It was first unveiled during a multi-million dollar heist which led to a hard fork of Ethereum. Reentrancy occurs when external contract calls are allowed to make new calls to the calling contract before the initial execution is complete. For a function, this means that the contract state may change in the middle of its execution as a result of a call to an untrusted contract or the use of a low-level function with an external address.
Loss: estimated at 3.5M ETH (~50M USD at the time)
6. Don’t delegate the call to untrusted code.
delegatecall the function is used to call functions from other contracts as if they belong to the caller contract. Thus the caller may change the state of the calling address. This may be insecure.
7. Save Gas on smart contracts.
Saving gas is necessary to build an efficient smart contract. It is one of the main issues that the developers face because not all of them know how to do it correctly. Auditors at QuillAudits understand well which instructions consume more gas and how we can avoid or minimize them.
8. Timestamp Dependence
If the contract function can tolerate a 15-second drift in time, it is safe to use
9. Compiler warnings
All the compiler warnings are serious issue sometimes developer ignores warnings and deploys contract without considering them as a significant threat to their smart contract, we recommend necessary action to be taken to remove all the warnings.
10. Ownership of the deployed contract
It is very important to provide ownership to a contract at the time of deployment or a restriction to function calls else attacker may call those function or transfer ownership function before you or if you are required to give ownership of a contract later, most famous bug of this kind is oyster-pearl because ownership of smart contract was open attacker transfer ownership to himself and able to mint tokens of worth ~$300,000.
11. Oracle calls
Blockchains cannot access data outside their network. An oracle is a data feed provided by a third-party service designed for use in smart contracts on the blockchain.
Oracles are third-party services which are not part of the blockchain consensus mechanism. The main challenge with oracles is that people need to trust these sources of information.
12. Lock pragmas to specific compiler version:
pragma solidity ^0.4.4; this is bad pragma solidity 0.4.4; this is good
13. Security Tools
After manual and unit testing, your smart contract undergoes automation testing that is done using many open source security tools.
Static and Dynamic Analysis:
Linters and Formatters:
Linters improve the code quality.
We use multiple in-house automated tools in addition to the tools listed, to secure your smart contract and to find whether your smart contract can fulfil your business requirements. apart from automated tools your smart contract code goes under multiple testing phases like static testing which is done manually by our expert audit team thereafter smart contract comes under unit testing which is done using truffle, the test suite is prepared for each and every function in your smart contract to know whether your function is capable of handling overflow, underflow condition, reflected variable in that function should maintain their value properly, then Solidity-coverage is used to know how much our test cases are penetrating your smart contract functions, final report after reviewed at multiple levels is delivered to the client including all the possible suggestions and severity issues raised during the audit.
Some recent Audit reports, Audited by us are :
We welcome feedback on the procedures so we can keep iterating and improving.
Thanks for reading. Also, do check out our earlier blog posts.
QuillAudits is a secure smart contract audits platform designed by QuillHash
It is an auditing platform that rigorously analyzes and verifies smart contracts to check for security vulnerabilities through effective manual review with static and dynamic analysis tools, gas analysers as well as simulators. Moreover, the audit process also includes extensive unit testing as well as structural analysis.
We conduct both smart contract audits and penetration tests to find potential
security vulnerabilities which might harm the platform’s integrity.
For further discussion and queries on the same topic, join the discussion on
Telegram group of QuillHash —
To be up to date with our work, Join Our Community:-
Ultimate Guides To Buy Bitcoins
This guide explains how to buy Bitcoin from anywhere in the world and connect you to payment options. In this article, you will learn how to buy Bitcoins with a service that allows you to invest in Bitcoins with sterling.
There are several options to buy Bitcoins and dollars on exchanges, but if you want to buy Bitcoin or other cryptocurrencies on the Exchange you choose, you have several platforms to choose from. You can also buy Bitcoins or other cryptocurrencies at any of your choice exchanges, such as Coinbase, Bitfinex, Mt. Gox and others.
Another way to buy Bitcoin and US dollars is to choose a platform that accepts bank transfers and deposits. By linking your bank account to your wallet, you can buy or sell Bitcoins and deposit money directly into your account. You can also use nairaex.com, a popular platform for buying Bitcoins by bank transfer and buying coins with a debit card or Paga.
You can also send Bitcoins to anyone who has Bitcoins in their wallet, receive Bitcoin money, and send them to other users. AbRA users can buy Bitcoins through the app, convert other assets into Bitcoins via Abras and then transfer them into an external Bitcoin wallet. You can use the AbaRra app to send Bitcoins to other Areas users and use it to buy Bitcoins, convert other assets into Bitcoins and convert them into AbrA ™ and then transfer them to external Bitcoin wallets.
If you want to buy Bitcoin in the US, you must first verify your identity on most exchanges. If you prefer to keep your Bitcoin transactions anonymous and not have the hassle of banking problems, or if you happen to live in another city, direct trading with a local seller would be an easy way to buy Bitcoins.
Most exchanges accept credit and debit cards, and these are generally the fastest way to buy Bitcoins. Once you have checked your ID, you can buy Bitcoins with a credit card or any other payment method.
Of course, buying bitcoins is fast and usually cheap, and you can buy them quickly and conveniently, but credit card providers earn money from currency spreads and fees. Bitcoins can be purchased with credit cards, debit cards or other payment methods as long as they are within the Bitcoin ecosystem, referring to the network of bitcoin exchanges, purses, exchanges and other exchanges worldwide.
That’s all you need to know about buying bitcoin and other cryptocurrencies with your iPhone. The easiest way to buy Bitcoin on the iPhone using the Coinbase app (or cash app) is probably the easiest of them all. Just download the Coinbase app and you can start buying and trading bitcoin.
Buying Bitcoin directly from Coinbase is as easy as buying something from Amazon, but Coinbase makes it much easier and more convenient than Amazon. You can buy and sell Bitcoins directly on Coinbase, which makes it incredibly easy to use, and you can also buy Bitcoin daily, making Coinbase one of the most popular Bitcoin exchanges in the world.
For 1 euro, it is possible to buy a whole BTC, but you don’t need to buy it with a credit card. You can also buy Bitcoins from other Bitcoin owners, just like an item on Craigslist. Some ATMs allow you to buy only Bitcoins, while others allow you to sell your Bitcoins and get cash in return.
If the price of a Bitcoin is $20,000 and The Bitcoin buyer has only 10 dollars to send or invest, the user can buy 10 Bitcoins. This means you can buy an entire Bitcoin, not just a BTC or even a single Bitcoin. Once you have bitcoin, you could buy a tablet-like Nano that stores bitcoin offline, away from hackers.
If you want to buy Bitcoin, it is strongly recommended that the Bitcoins you buy are not stored in the Exchange once purchased, but in a wallet created by the buyer. When you buy Bitcoins on most exchanges, you have the option to transfer your coins into a Bitcoin wallet. Once you have your wallet, you can buy Bitcoins on the Bitcoin exchanges through a bitcoin exchange that you interact with, such as Coinbase or Bitfinex.
If you are serious about buying and using Bitcoin, you may want to get your own BTC wallet, which you control and sit offline on a USB stick. When you buy your first Bitcoins or any other cryptocurrency, you should consider moving your money to a more secure wallet that is only yours to control.
It’s a bit like Bitcoin, but you’re transferring your holdings digitally, not digitally. The process of buying Bitcoins through PayPal is the same as buying them with a credit card. You need a credit card or bank account to make the payment and you transfer money from your wallet to your PayPal account.
To Buy Bitcoins
This guide explains how to buy bitcoin and how to finally buy your first bitcoin or start investing today. We have gathered information from over 300 cryptocurrency exchanges worldwide and created a quick guide to help you choose the best cryptocurrency exchange and a list of the best places to buy Bitcoins.
The first step is to choose a wallet or exchange provider, so we’ve chosen a place where you can buy and store your Bitcoins. If you have a Bitcoin wallet, you must exchange your bank account details before you choose another exchange, and if you choose another exchange, your credit card information.
By linking your bank account to your wallet, you can buy or sell Bitcoins and deposit money directly into your account. Once you have linked your bank account to your wallet, you can sell or buy Bitcoins or deposit the money directly into your account and keep it in a safe place.
However, buying Bitcoins through PayPal also has a downside: you can’t send them to others or move them into your wallet.
After setting up your Bitcoin wallet, you can go directly to a machine that functions essentially like a normal ATM. This machine allows users to buy and sell Bitcoins anonymously, but the potential problem is that you have to find the machine that does what you want, and the machines that do it are rare.
Bitcoins can be exchanged for cash, withdrawn or used to buy and sell Bitcoins. None of the best-known bitcoin exchanges on the market is currently, so I went through the process of buying bitcoins from the majority of the other companies mentioned on this list.
If you prefer to keep your Bitcoin transactions anonymous and not deal with banking problems, or if you happen to live in another city, direct trading with a local seller would be the easiest way to buy Bitcoins. To buy Bitcoin with cash on LocalBitcoins, you must travel to the seller and send the money.
Another option is to buy Bitcoins directly from the seller, who is likely to pay much more commission than elsewhere. Some ATMs allow you to buy only Bitcoins, while others allow you to sell your Bitcoins and get cash in return.
More experienced investors should consider this option, as it involves buying Bitcoins directly from a dedicated cryptocurrency exchange. Bitcoins can be exchanged for another cryptocurrency, BTC, which is equivalent to buying BTC. If the Exchange does not allow you to purchase BTC by bank transfer or credit card, you can pay BTC into the Exchange.
If you’re interested in buying bitcoin just to understand how it works, check out Coinbase Pro. While Coinbase alone allows you to buy and sell Bitcoin, it is important to log in to Coinbase before linking to the exchange platform, which gives you greater control over your purchases. Use your Coinbase account without logging in first and use it to log in first.
The price of Bitcoin is constantly changing, so your goal should be to buy Bitcoin at the cheapest price. But if you want to use this, you first need to know how to buy bitcoin and what to do with it if you have it.
This last step is the easiest, as you can link your Bitcoin wallet to the Bitcoin exchange of your choice and decide how much Bitcoin you want to buy. Since this is your first Bitcoin purchase, choose an amount that will not affect you if it falls to zero.
When you decide where to buy your Bitcoin, you pay a conversion fee that you must consider all currency things. If you transfer your Gbp to a stock exchange that trades only in US dollars, you will be charged conversion fees.
It is quicker and usually cheaper to buy Bitcoin using a payment method such as a cash app or cell phone. P2P exchanges facilitate this type of transaction, as is the case with the private purchase of Bitcoin by another person (LocalBitcoins).
Anyone buying Bitcoins from a Bitcoin ATM or privately buying them remains anonymous. If you bought Bitcoin in cash, the Bitcoin ecosystem, known as the “Bitcoin ecosystem,” works much like the real world.
If you buy Bitcoin on an online exchange, you can purchase Bitcoin through a standard broker account. It is easy and safe to buy and trade bitcoin and other cryptocurrencies from the Exchange you choose and connect to payment options. If you bought Bitcoin in cash, it is easier and safer because you would buy Bitcoin with the credit card or bank transfer.
You can also buy or exchange Bitcoin (or other cryptocurrencies) from any exchange as long as you are connected to a payment option. Your choice of Exchange: Choose an exchange or connect to any payment option.
Guides To Know Before Spending Bitcoin
When Bitcoin first entered the mainstream a few years ago, it was believed it could replace cash and credit cards as a means of payment. You may know Bitcoin is a revolutionary digital currency. Still, you may have been misled by those who use Bitcoin only as an alternative to traditional payment methods such as cash, credit cards and debit cards.
Blockchain is an important technology, but Bitcoin is also meant to help pay for things without banks even getting involved.
Bitcoin is captured in an ever-expanding public register shared on the Internet, which contains information about where and when bitcoins were sent, what happened, who sent them, and why.
Unlike a spreadsheet, which involves logging in when moving coins, Bitcoin’s blockchain works without the need for banking software to process electronic transfers. All transactions are recorded on the blockchain, so it is very difficult to copy Bitcoins, make counterfeit ones or make spending that you do not own.
You can also use it to clean up your Bitcoin using a cryptocurrency – and previously using a mixed service such as Coinbase, Bitstamp or Bitfinex.
Bitcoin Cash Map is a handy app that shows you all the brick-and-mortar shops that accept Bitcoin in your area. You can link your credit card to the app, and it will award you free Bitcoins when you shop at one of the participating shops or restaurants.
If you’re just going for a walk and looking for local Bitcoin purchases, look no further than Bitcoin Cash, a crypto-debit card that makes it easy and convenient to spend Bitcoin anywhere.
Visa has teamed up with Mastercard for cryptocurrency exchange and wallet and Coinbase, Bitstamp and Bitfinex to accept normal Visa debit cards. Any place that accepts Bitcoin can have a sign in the window saying, “Bitcoin accepts here.”
If you’re willing to look closely enough, you can also spend bitcoin in many local online shops. As the mainstream payment processing systems jump on board, we have found many ways to spend Bitcoins in local shops, restaurants, hotels and other local businesses.
You can even spend your Bitcoin online at online stores such as Amazon, eBay, Google, Amazon Prime and many other online retailers if you are willing to pay for Topps, PayPal, Mastercard, Visa, American Express and PayPal.
If you buy something and use Bitcoin to add money to your online account, the process is similar to Bitcoin, Litecoin, Gemini or Dollar without any problems. The next easiest way to spend Bitcoin in Canada is to trade directly with an exchange. You can still buy whole groceries and groceries with Bitcoin using traditional methods such as PayPal, Mastercard, Visa, American Express, and Visa.
You can buy and spend your Bitcoins in the Bitcoin Buys and Sales and Bitcoin Spending Apps to get as much of a start as possible. For example, if you use the spend app and use Bitcoins, you could buy an entire grocery store for just $1.00 at a local grocery store.
When you purchase Bitcoins from a Bitcoin cash tap, you will be asked to provide your Bitcoin address. Bitcoin wallets force you to cut out and paste your Bitcoin address if you want to send Bitcoins there. The only way the Bitcoin network knows if an address has new Bitcoins is if all Bitcoin network members agree that you do, and this is the only way for them to know if it has new Bitcoins.
As Bitcoins become more and more long-term investments and websites are designed specifically for them, it will be much easier for Bitcoin owners to buy goods online than they used to be.
The Flexa Spend app makes it easy to use Bitcoin to buy everything from food, clothing, electronics, jewellery and other goods and services. You can do without Bitcoin, but is there anything that makes people stop hoarding Bitcoins?
In some ways, Bitcoin transactions are more transparent and traceable than cash, but transactions become more irreversible as the number of confirmations increases. Bitcoin can be used anonymously.
Bitcoin users can protect themselves from duplication and fraud by not waiting for confirmation when a payment has been received on the blockchain. Geminis’ partnership with Flexa makes it super easy to pay with Bitcoin, removing some of the friction traditionally associated with Bitcoin payments.
However, if you try to use Bitcoin in your local supermarket, try to place your order on time. Because of the high volatility of Bitcoin, some Bitcoin traders only give you a 10-minute window to complete your purchase. If you try to use Bitcoin or even buy something online, Bitcoin transactions can take a long time to complete, which can work against you even if you place an order and make it to your destination.
Price volatility, combined with long transaction times and a busy blockchain, makes it harder for companies to accept Bitcoin payments. However, if Bitcoin continues to survive and reach even higher peaks, we could see websites and retailers start to consider expanding and allowing you to use Bitcoin.
To Spend Bitcoin
Before you start spending Bitcoin, you should know how to use it to buy goods and services. In this article, we have compiled a list of products purchased with Bitcoin and some of the best services available.
If you buy bitcoin to spend, you want to know what you spend it on, not just to exchange. In this guide, you will learn how to spend bitcoin and other cryptocurrencies for everyday purchases. Bitcoin can also be spent in various other ways, such as online, in person or the bank and, in some cases, even at home.
If you are on the move and want to look for a local Bitcoin purchase, you can do this by looking for an ATM, a Bitcoin ATM or a Bitcoin store near you. A “Bitcoin ATM” is where Bitcoins can be purchased with cash or your bank card. Some places that accept Bitcoin may have a sign in the window that says, “We accept Bitcoins here.”
To pay with Bitcoins, the customer must select “Pay” from a list of payment options such as PayPal, MasterCard, Visa or Mastercard. Nor can you send Bitcoin via PayPal to something that keeps Bitcoin purists on their toes: Bitcoin wallets force you to cut out and insert your Bitcoin address if you want to send Bitcoins there. If you purchase Bitcoins via a Bitcoin cash tap, you will be asked to provide your Bitcoin address.
There is no doubt that Bitcoin does not have the same degree of penetration as the fiat currency when it comes to everyday spending. Still, fortunately, there are several ways to spend Bitcoins that allow anyone to make daily purchases with the crypto.
While you can use a credit card to purchase cryptocurrencies, this should be avoided due to the volatility of cryptocurrencies. BTC can be held in a bank account or issued to bank accounts – issued debit or credit cards. Bitcoins to a place where you can pay to buy them, such as a store, bank or online store.
If you want to spend anywhere that Bitcoin does not accept, you can use a service that converts to the cryptocurrency. Of course, there is no need to buy Bitcoin from a merchant who does not accept payments in cryptocurrencies when buying a gift card with cryptocurrencies.
If a company doesn’t accept Bitcoins directly, there are gift cards that can be bought with Bitcoins and used anywhere.
If you want to convert your Bitcoins into real cash, you will need to use ATMs built in Canada for Bitcoins. If you can’t find a place to accept Bitcoin, BTC can be converted into cash in minutes. Bitcoins are bought and sold on behalf of foreign exchanges or sent directly into your Bitcoin wallet.
There is even an AUD / BTC exchange on the checkout page, and you can book online and pay with credit cards, PayPal or Bitcoin.
Bitcoins can also be bought and sold on exchanges such as Coinbase, making it easy to buy and sell bitcoins in different ways. Amazon, the largest online retailer today, accepts Bitcoin directly, but there are a few ways to buy things from Amazon using Bitcoins. Unfortunately, Amazon does not yet accept Bitcoins directly as a means of payment, but you can still use Purse.io to shop on this site or pay with Bitcoin, even if it is not accepted directly by Amazon.
Bittrefill makes it easy to issue Bitcoin (BTC) and other cryptocurrencies to retailers and websites that do not accept the cryptocurrency directly as a means of payment. Shopify, which operates online stores, accepts Bitcoins and numerous other digital currencies and switches this feature on and off to crypto users’ delight
Accepting Bitcoins instead of cash carries risks, and even the organization itself is still considered experimental. Bitcoins can be used anonymously, but there is a sense that Bitcoin transactions are more transparent and traceable than cash.
With that in mind, here are a few tips on using Bitcoin in the way Satoshi Nakamoto intended. We will go through some of the best Bitcoin practices that travel sites accept in handling the cryptocurrency and some of the best ways to use the digital currency to help you decide whether it is the right payment method for you. Bitcoin can be spent on a variety of websites, from online shops to online travel agents.
The Bitcoin Cash Map is a handy app that shows you where to spend Bitcoin in the UK and which brick-and-mortar shops accept Bitcoins near you. Bitcoins are accepted in various places, from online shops to online travel agents and online merchants.
The easiest way to get Bitcoin is to buy it with money from a cryptocurrency exchange, but the next easiest way to spend Bitcoins in Canada is to trade directly with an exchange. Another popular way to issue cryptocurrencies is to use old coins to buy Bitcoin or its fraction.
Bitcoins can be spent as you like, buying, selling or spending them, using a full app if possible. The traditional method of using traditional bitcoin exchanges such as Coinbase, Bitfinex and Mt. Gox is the same as trading directly with the exchanges.
NextGen Blockchain Platforms Self-Organize to Win Government Contracts
Over the past year, blockchain development communities have turned their attention towards winning government contracts.
Washington, DC. There is a huge opportunity presented by increased government spending on blockchain projects. According to Bloomberg Government BGOV200 Report, federal government spending reached $597 Billion in 2019. However, since new businesses face barriers gaining direct access to government contracts, many have joined the Government Blockchain Association (GBA) to introduce their cutting-edge blockchain platforms to the public sector.
Traditionally government program managers choose to work with the same few legacy companies. For example, there are currently over 4.1 million US Federal government contractors but of the $597 billion in prime contracts awarded in FY19, the top 10 government contractors received $173.4 billion according to Bloomberg Government. However, the COVID-19 Global Pandemic was a catalyst that necessitated governments from around the world look at bold and innovative new ways to solve problems from a more diverse community.
In March of 2020 the US Department of Health and Human Services hosted a virtual Pandemic Response Hackathon. This hackathon idea completely changed the former process of government acquisitions. The slow pattern of the past was rewritten to adopt to the chaos, uncertainty, and urgency of COVID. Government contracts went from a centralized channel to open and decentralized solutions coming in from completely new sources. A new way of doing business was introduced to the world stage, and in November 2020 the Indian Ministry of Electronics and Information Technology (MeitY), National Informatics Centre (NIC) held their own up a GovTech Hackathon. Throughout 2020, countless examples of crowdsourcing solutions contested the traditional procurement processes.
Along with new paradigms in acquisitions, 2020 brought explosive growth of decentralized development communities and platforms. Decentralized communities operate on independently run servers, rather than on a centralized server owned by a business. Initially, most blockchain solutions were private-permissioned blockchains dominated by a single vendor. One of the most popular government blockchain solutions is Hyperledger Fabric. Though it is technically an open-source project, almost 80% of software changes to Hyperledger Fabric came from IBM, demonstrating an ongoing dependence on IBM to maintain the code.
Lately, next gen blockchain solution providers have been self-organizing into working groups and communities to compete in the contracts space. The largest and most engaged of these decentralized communities is the Government Blockchain Association, with members in over 500 Government Offices, thousands of public and private sector members in 120 Chapters, and more than 50 Working Groups, and 25 Communities of Interests. They also host regular online and in-person events to introduce blockchain solution providers to government officials, promoting this new diverse community.
Some of these next gen blockchain leaders include:
- DragonChain – DragonChain is an enterprise and start-up-ready platform to build flexible and scalable blockchain applications. It has business-ready applications and developer-friendly integrations that support many applications including learning management systems, decentralized identity, and anti-fraud and compliance solutions.
- NEM – A community that has developed two blockchains. They are NEM NIS1 and Symbol. NEM NIS1 is the original blockchain offering from NEM, created by the community, and optimized to be a developer’s sandbox. With zero downtime or major outages since 2015, NIS1 is the blockchain you can trust for all your project needs. Symbol is the next-generation enterprise-grade blockchain solution from NEM, purpose-built to help businesses cut costs, reduce complexities, and streamline innovation. With major upgrades in flexibility, security, speed and ease of use, the Symbol platform is the best-in-class blockchain enterprise solution.
- Simba Chain – SIMBA Chain is a cloud-based, blockchain-as-a-service (BaaS) platform, enabling users across a variety of skill sets to implement decentralized applications (dapps). These apps allow secure, direct connections between users and providers, eliminating third parties. The easy-to-use platform is tailored for users, developers, government, and enterprises to quickly deploy blockchain dapps for iOS, Android, and the web.
- TON Labs – TON Labs is the core developer of Free TON, comprised of a decentralized team focused on developing the infrastructure and free software for TON OS. TON OS is a full-fledged, vertically integrated technology stack that helps developers work easily with the blockchain and makes it simple and intuitive for users.
Decentralized blockchain projects include the Government Business Blockchain Platform (GBBP). This multi-blockchain platform allows solutions built on any blockchain to connect and become available to governments around the world. Sub-set eco-systems include Emergency Management, Healthcare Delivery, and Citizen Services. Blockchain applications can interconnect on the GBBP, providing identity management, logistics, asset management, payments, and many other blockchain services.
These examples demonstrate how blockchain providers are working together, self-organizing into decentralized entities to build public-facing blockchain solutions. GBA groups regularly host online meetings to discuss their projects. Anyone interested in joining the discussion can find out more on the GBA Events Calendar or Events List. Later this year the GBA will be bringing World-Class Leaders to Washington, DC for Government Blockchain Week on Sept 27 to Oct 1, 2021.
PancakeSwap Review: Leading AMM on Binance Smart Chain
PancakeSwap is a fairly new decentralized exchange (DEX) that’s been created on the Binance Smart Chain (BSC). The automated market maker (AMM) offers users a number of innovative ways to create income streams from their cryptocurrencies. In the following review we’ll go into more detail about what makes the PancakeSwap exchange work, and how you might be able to benefit from it yourself.
What is PancakeSwap?
Launched on September 20, 2020 PancakeSwap is a DEX on the BSC using permissionless liquidity pools that are automated and run completely by algorithms. This use of algorithms to run the pools makes PancakeSwap an automated market maker.
Why the name PancakeSwap? Well it is simply following the trend in decentralized finance that uses food tokens. First there was SushiSwap, then BakerySwap, and now we have PancakeSwap. There are many other food-themed projects and tokens in the DeFi space too.
As for PancakeSwap they use the deliciously named CAKE token, which is a BEP-20 token on the BSC, and the just as deliciously named SYRUP pools. The PancakeSwap exchange boasts fast transactions and lower fees than the DeFi projects built on Ethereum. As the number one AMM platform on the BSC PancakeSwap can be considered in the same league as the ERC-20 based AMM’s like SushiSwap and Uniswap.
If you haven’t used an AMM yet they are exchanges that allow users to trade digital assets against liquidity pools and collect yields. This is more like a dividend bearing stock or a bond than a traditional exchange where an order book matches buyers and sellers and profits are only made by selling your assets. In the AMM a user loans their digital assets to liquidity pools and in return they receive liquidity tokens that they can then stake to earn more digital assets.
What can you do on PancakeSwap?
As you might already be guessing based on the explanation above, PancakeSwap allows users to exchange BEP-20 tokens. It also allows them to use their cryptocurrencies to provide liquidity for the exchange pools, and thus earn additional tokens. It’s also possible to stake tokens on PancakeSwap and earn more tokens from that method.
PancakeSwap allows for all the following:
- Trade BEP20 tokens
- Provide liquidity to the exchange and earn fees
- Stake your LP (liquidity provider) tokens to earn CAKE token
- Stake CAKE to earn more CAKE
- Stake CAKE to earn tokens of other projects
There are some obvious advantages to PancakeSwap, and then there are the behind-the-scenes advantages that aren’t as well known, but are no less important for that.
Let’s look at these advantages:
Earn more Tokens
PancakeSwap, like many DEXs, has its own native token called CAKE. Users can stake CAKE or use it in the SYRUP pools of PancakeSwap in order to earn more CAKE tokens, or even tokens of other projects built on the Binance Smart Chain such as DODO, UST (Terra USD), or LINA (Linear Finance) just to name a few. There are currently 16 pools listed and more are added all the time.
Low Fees and Fast Transactions
One of the growing complaints about projects built on Ethereum are the high fees and slow transactions from the network. PancakeSwap doesn’t use the Ethereum network though, it uses the BSC network and BEP-20 tokens. As a result the fees paid are much lower, typically ranging from $0.04 to $0.20, and transactions take less than 5 seconds on average. Compare that with Ethereum, where fees have been above $20 for much of 2021 and transactions take up to 5 minutes to confirm.
No KYC Requirement
Every centralized exchange we know about follows the requirements for Know Your Customer and Anti-Money laundering (KYC/AML) which removes users’ privacies by requiring them to provide extensive documentation to prove their identity.
As a decentralized exchange under no regulatory authority users are able to transact with privacy at PancakeSwap. Anyone anywhere in the world is able to trade in the hundreds of assets available at PancakeSwap with over $600 billion in liquidity.
Audited and Secured
PancakeSwap has gone through the time and expense of receiving an audit from the cyber-security firm CertiK.
It has also integrated with CertiK to receive all the following protections:
- Security Oracle
- CertiK Shield
- The CertiK Virtual Machine
Trading on PancakeSwap
The majority of CAKE tokens are traded on PancakeSwap as you might imagine. However there is also a decent level of trading volume in CAKE tokens on Binance, and you can even buy them directly on Binance and then transfer them to a wallet that supports CAKE and BEP-20 assets in order to stake your CAKE tokens at PancakeSwap.
If you don’t have a Binance account you can easily open one by clicking on this link
If you’re familiar with other AMM’s like Uniswap and Sushiswap you’ll recognize the system whereby users provide liquidity to pools and receive LP (liquidity provider) tokens in exchange.
These LP tokens give holders the right to collect a portion of the trading fees generated on the platform. The trading fee at PancakeSwap is a low 0.2%, with 0.17% going to the liquidity providers and the remaining 0.03% going to the PancakeSwap Treasury, where they are burnt to keep supply lower.
PancakeSwap Supported Wallets
PancakeSwap has support for a number of popular wallets, including Trust Wallet, TokenPocket, WalletConnect, MathWallet, and MetaMask. While MetaMask is an ERC-20 wallet it is also able to store BEP-20 assets when set up properly. Binance provides instructions on how to do this here.
CAKE Token Distribution
CAKE tokens can be bought or earned as a liquidity provider and through staking CAKE tokens. The current emission rate for CAKE tokens is as follows:
Reward per block — 40 CAKE, however 15 CAKE per block are burned, making the effective reward per block 15 CAKE.
Daily emission (Based on 30k blocks per day) — 1.2 million CAKE, but with 450,000 per day burned the effective daily emission is 750,000 CAKE per day.
- Farmers — 60% of the rewards per block (15 CAKE)
- CAKE holders — 40% of the rewards per block (10 CAKE)
- Farmers daily — 450,000 CAKE (based on 30k blocks per day)
- CAKE holders daily — 300,000 CAKE (based on 30k blocks per day)
There are additional deflationary measures currently in place as follows:
- 09% of CAKE harvested from farms is sent to the dev address, then burned
- 10% of CAKE spent on lottery tickets is burned
- 100% of CAKE raised in IFOs is burned
All of these rates are subject to change in the future through governance proposals. Any CAKE holder is able to participate in governance of PancakeSwap by voting on existing proposals or creating their own proposals.
How to stake CAKE?
In order to stake some CAKE tokens you first need to buy some CAKE tokens along with some BNB and transfer them both to a wallet that’s supported by PancakeSwap. The BNB can be transferred to your BEP-20 BSC address for paying your transaction fees.
To begin staking CAKE you first need to connect a wallet to PancakeSwap. Once that’s done you can go to the “Pools” tab on the left side of the PancakeSwap site. That will present you with the available pools where you are able to stake your CAKE and earn more CAKE or other BEP-20 tokens.
One of the excellent features is the low transaction fees you’ll enjoy working with the BSC, which means you won’t have to second guess each and every transfer to decide if it’s worth paying the transaction fee. On the Binance Smart Chain you won’t even think about the small fees for each transaction.
Using PancakeSwap isn’t difficult once you understand what’s going on in each areas of the site. When you first visit the website it can be difficult to get a handle on what’s happening, but that’s because many of the features remain locked until you connect a wallet and unlock it.
Once that’s taken care of you’ll see loads of additional information that was missing before you had an unlocked wallet connected to the site. You’ll see all the different returns offered in the various farms and pools and you’ll have the chance to add liquidity and to stake tokens yourself.
If you’ve experienced using an AMM you know how this works. It’s not really difficult, but we know some people balk just because they aren’t familiar with the process. So, the first step to take when using PancakeSwap is to add liquidity to the exchange.
Find “Trade” in the left sidebar and click it to drop down the menu. Next click on “Liquidity” and then click “Add Liquidity”. Next you’ll select the token pair you’re interested in depositing to provide liquidity. You have to choose each side of the pair, and if it is a completely new pair the ratio of tokens you provide will set the price for the pool. It’s also important that before you begin the process of adding liquidity you understand the risks of impermanent loss
This is where the magic begins and I’m sure this is why so many of you reading this are interested in PancakeSwap. The yields available from farming are simply mindblowing, whether compared to traditional bank interest rates or not.
So you have some LP tokens from the previous step and now it’s time to stake them and earn yourself some CAKE. First thing you’ll need to do is navigate to the “Farms” tab in the left sidebar. Next you want to select the option that matches your LP tokens.
You’ll see that there are a number of ways to earn yield on PancakeSwap. As of late February 2021 there are 69 different liquidity pools where you can stake and earn yields that range from 23.52% to 378.19% APY for supplying the pools with liquidity.
When you supply liquidity to the pools you’ll be required to approve moving the tokens to the pool. Your approval is what allows the smart contract to withdraw the tokens on your behalf. When you connect your wallet you’ll have the chance to stake your LP tokens by clicking to Approve Contract. When you do click the button you’ll see a popup asking you to confirm the transaction and informing you of how much the fee will be for this transaction.
At that point select the amount you’d like to stake and confirm it. Once staked you can leave the page and any time you come back you’ll be able to see how much CAKE you’ve earned. You can click Harvest at anytime to harvest your rewards and move them to your wallet.
Just to give you an idea here are just some of the pools available for farming:
- CAKE-BNB LP
- SUSHI-ETH LP
- DODO-BNB LP
- SWINGBY-BNB LP
- BRY-BNB LP
- ZEE-BNB LP
- LTC-BNB LP
- DAI-BUSD LP
All of the rewards from the LP are in CAKE tokens. You can also use CAKE for governance votes, it can be staked and earn more CAKE or other coins, or it can used to participate in a deflationary lottery at PancakeSwap. It is very important that you understand how these AMM pools work, and the arbitrage opportunities provided.
It’s also important that you understand that the LPs are being at risk of impermanent loss in some circumstances. This can be exceptionally risky when pooling un-correlated assets and have high volatility, so it is essential to understand the risks associated.
In addition to using the LP tokens to farm yield, the CAKE tokens can be staked in SYRUP pools that are yielding 43.33% to 275.12% APY at the time of writing. You can also use these SYRUP pools to earn in other coins when you stake CAKE. For example you can earn UST, LINA, SWINGBY and many other tokens. You can even add your own token if you like.
As mentioned above there is a deflationary lottery held at PancakeSwap and anyone with 10 or more CAKE can participate.
Each lottery session lasts for 6 hours, so there are 4 lotteries daily. Each ticket for the lottery costs 10 CAKE and gives the buyer a random combination of four digits, each ranging from 1 to 14. For example you might get 14 – 8 – 4 – 1 as your four numbers. To win the jackpot, which is half the lottery pool, your four numbers need to match the four numbers in the winning ticket, including the position of the numbers. So in the example given you would only win of the winning ticket was 14 – 8 – 4 – 1. If it was something like 14 – 8 – 1 – 4 you would lose because the numbers aren’t in the same order.
You also win smaller rewards if you have two or three numbers in the same position as the winning ticket. Three numbers wins 20% of the total jackpot, and two numbers wins 10% of the total jackpot. Of course the winnings do need to be shared if there is more than one winner. So for example at the time of writing the total jackpot is 24,276 CAKE. That means you can win as follows:
4 numbers – 12,139 CAKE
3 numbers – 4,855 CAKE
2 numbers – 2,428 CAKE
In the last drawing there were no tickets with 4 numbers, but there were 15 tickets matching three numbers and 320 tickets matching two numbers. That means each person with three matching numbers received 323.67 CAKE, and each person with two matching numbers received 7.5875 CAKE.
There’s even more you can do at PancakeSwap besides simply farming yield, staking CAKE, and buying lottery tickets. You can also win special non-fungible tokens created by the exchange.
If you do win one of these unique NFTs you can choose to keep it in your wallet as a memory of your luck, or you can trade it immediately for the CAKE value it represents.
In order to participate you need to register for the chance to win. All winners are chosen at random. New opportunities to register and win the newest NFT are posted to the Collectibles page of PancakeSwap. And you can go there to see what nifty NFTs have already been produced and given away.
Teams & Profiles
Just in case you don’t think that the exchange has been gamified enough you can also create a public profile and join teams in order to show off your personal stats and to compete for team achievements.
Note that this feature is still in development, but when released there will be tasks available that will generate points for the teams involved.
Initial Farm Offering
An Initial Farm Offering (IFO) is a way that newly launched tokens are distributed to new users who are yield farming at PancakeSwap. Users can get access to IFO tokens by committing LP tokens from one of the supported pools in order to gain access to the sale of a token that’s just been launched.
There’s an IFO tab in the left sidebar of the PancakeSwap website where you can check on upcoming IFOs and the terms for purchasing any newly launched tokens.
The CAKE Token
The CAKE token got out of the oven at a price near $1.37 just after PancakeSwap was launched in September and after some initial volatility it dropped and settled around the $0.25 level. After spending roughly two months there however it began climbing as the altcoin rally of 2021 picked up steam.
After reaching an all-time high of $21.41 on February 19, 2021 it sank as quickly as it rose and a week later it was trading at nearly half its all-time high at $11.72. The quick drop was part of a larger selloff in the cryptocurrency market, which continues as this is being written. That said, there’s no telling where the token might settle in a week, a month, or a year from now. Considering the growing popularity of DeFi platforms and yield farming we would guess it will be higher.
Is PancakeSwap safe?
PancakeSwap has been oprating without any issues for 5 months as of the time of this writing, and as a decentralized exchange it seems completely safe. The team behind the DEX has gone as far as to have it audited by CertiK and the results found that all the code is secure. Of course one audit doesn’t mean the exchange is completely safe and you should always take care with funds you plan on committing to any of the new DeFi applications.
Ok, it isn’t really a roadmap, it’s more like a to-do list. Whatever you want to call it the team at PancakeSwap has done an excellent job in checking items off over the five months the DEX has been in existence. As of February 2021 the following items remain:
- Lending & Borrowing: Lend and borrow BSC and LP tokens – CAKE provides rate discount
- Margin Trading: Trade BSC tokens with leverage on-chain — periodic CAKE buyback and burn
- NFT-based Gamification: Complete tasks, level up etc. to earn NFTs — use CAKE to mint
- Binary Options
- Fixed-term Staking
On the Binance Smart Chain PancakeSwap is the largest and most heavily used AMM for yield farming and staking. With over $650 million in daily trading volume it is over double the traing volume of SushiSwap and nearly as large as Uniswap (v2). It is by far the largest project running on BSC, and as DeFi continues to grow in popularity it would be surprising if it didn’t continue to grow as well.
Truthfully adding a DeFi dApp to the BSC is a major step as it gives users the ability to participate in DeFi without being stuck with the massive fees of the Ethereum network. At just 5 months old it’s very likely that PancakeSwap has some massive growth in its future. Binance has been helping that along by including PancakeSwap in the Binance Accelerator Fund, which provides funds that help the project grow more rapidly.
Overall it’s clear that DeFi is continuing to grow, both on Ethereum and on the BSC, and PancakeSwap is creating a name for itself as the place to come for yield farming. The team has done an outstanding job in both launching and improving the DEX during its short existence and we expect they will bring an increasing level of innovation to the DeFi space.
PancakeSwap is a project worth using for yield farming, and worth watching to see what developments are made in the coming months and years.
Featured Image via Shutterstock
The post PancakeSwap Review: Leading AMM on Binance Smart Chain appeared first on Coin Bureau.
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