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Top 20 Coins: Uncommon Core Podcast Episode 15

Throwing this up for discoverability: I enjoy the Uncommon Core podcast and this is a helpful episode for those looking to get a quick summary of the top coins by market cap as at December 2020, as discussed by prominent crypto trader Su Zhu of Three Arrows Capital and prominent researcher Hasu of Deribit. Errors … Continue reading Top 20 Coins: Uncommon Core Podcast Episode 15

The post Top 20 Coins: Uncommon Core Podcast Episode 15 appeared first on Bits on Blocks.

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Throwing this up for discoverability: I enjoy the Uncommon Core podcast and this is a helpful episode for those looking to get a quick summary of the top coins by market cap as at December 2020, as discussed by prominent crypto trader Su Zhu of Three Arrows Capital and prominent researcher Hasu of Deribit.

Errors in summary notes are my own. I haven’t fact-checked. Assume the podcasters may have long or short positions in any of these coins. I note the the podcasters are quite diplomatic about how they describe these coins.

Note: This was broadcast on Dec 11, before Bitcoin reached its all time high and before the SEC lawsuit against Ripple and its cofounders.

20) 1:10 Compound DAI (cDAI)
19) 5:55 Tezos (XTZ)
18) 12:26 NEM (XEM)
17) 13:56 Tron (TRX)
16) 17:11 Wrapped Bitcoin (WBTC)
15) 21:59 Monero (XMR)
14) 29:46 EOS (EOS)
13) 35:04 USD Coin (USDC)
12) 40:48 Bitcoin SV (BSV)
11) 46:26 Stellar (XLM)
10) 50:24 Binance Coin (BNB)
9) 56:50 Polkadot (DOT)
8) 1:03:09 Cardano (ADA)
7) 1:05:25 Chainlink (LINK)
6) 1:08:44 Bitcoin Cash (BCH)
5) 1:19:32 Litecoin (LTC)
4) 1:24:40 Tether (USDT)
3) 1:28:03 XRP (XRP)
2) 1:33:35 Ethereum (ETH)
1) 1:46:51 Bitcoin (BTC)

20) 1:10 Compound DAI (cDAI)

  • An interest-bearing claim on DAI held at Compound (a borrow/lend platform).
  • DAI is a USD stablecoin MakerDAO creates, overcollateralised by ETH and other cryptocurrencies.
  • High market cap ($1.5bn) because Compound incentivises borrowers and lenders with COMP tokens (as well as any interest rate on lent DAI). People farm COMP by simultaneously borrowing and lending DAI, and the COMP earned more than compensates for the interest rate differential from being both a borrower and a lender.
  • Some folks got stopped out on this trade when DAI traded above $1.20, forcing some liquidations due to being undercollateralised.
  • Could cDAI be used as money? Some issues with using an interest bearing token. Different theories on this.

19) 5:55 Tezos (XTZ)

  • First chain-based proof of stake, with longest chain rule, like Bitcoin. Different from other proof of stake implementations. Also first to do on-chain governance where proposed code changes are recorded on-chain and voted on-chain.
  • Layer 1, competes with Ethereum with their own Virtual Machine, uses a unique smart contracting language.
  • Got a lot of early interest from bitcoiners due to having on-chain governance, but now on-chain governance is less trendy.
  • Struggle to find application and use-case fit, especially competing with Ethereum, given the advantages that Ethereum has.
  • Investors contributed BTC and ETH to the crowdsale, Tezos guarded their treasury well.
  • Smart committed team.
  • Doesn’t have grass-roots participation of smart contract devs. Tough adoption play. Has a staking element though – exchanges have to buy it so that they can stake on behalf of their customers.

18) 12:26 NEM (XEM)

  • Don’t really know about this one. Popular in Japan, top 10 coin at one point, very 2017 coin. Asian Ripple? Website mentions payments, settlement, clearing.
  • Haven’t seen much adoption. Don’t hear about it much a lot these days. May fall out of top 20 soon.

17) 13:56 Tron (TRX)

  • Fork / rip-off of Ethereum. Has copies of Ethereum tools eg a copy of Metamask. Makes it familiar and easy to use.
  • Not a ghost chain. Have used it for SUN liquidity mining in the peak of DeFi summer.
  • There’s a lot of USDT (Tether) on Tron. Could just be Tron whales.
  • OTC and exchanges will use USDT-on-Tron when Ethereum fees are high.
  • “Cheaper Ethereum” use case. Saw some gambling Dapps in 2018-19. Precursor to DeFi.
  • Definitely have a community in China and the US.
  • May struggle to compete on technological innovation and mindshare, as people realise they just copy, there’s no novel thinking.
  • Bittorrent (acquired by Justin Sun, the founder of Tron, in July 2018) excited some people but turns out it’s not really helping Tron that much.
  • It surprised people by not disappearing yet… Sticks around but not innovative.

16) 17:11 Wrapped Bitcoin (WBTC)

  • An ERC20 claim on Bitgo for BTC. The sole custodian of the underlying BTC is Bitgo.
  • $2.3bn value of BTC moved onto the ETH as an ERC20. Bitgo has proof of reserves using Chainlink.
  • Popularity due to primacy in key DeFi apps – eg you can use it collateral in MakerDAO, you can lend/borrow it on Compound & Aave. It was one of the first 4 incentivised pools on Uniswap.
  • Tokenised BTC-on-Ethereum needs a network effect. wBTC and renBTC done well, but other wrapped BTCs no one knows how to use.
  • Single custodian isn’t as bad as people make out – USDT, USDC are also custodial (where a company controls the fiat in bank accounts).
  • Shows the power of Defi and the ease of transacting on-chain. Market is willing to take the risk.
  • Can a newer more decentralised wrapped BTC overtake wBTC? No, because liquidity is the most important, and wBTC is winning this. More likely that wBTC snd renBTC find a way to decentralise, than for new decentralised wrapped BTCs to gain share from wBTC and renBTC.

15) 21:59 Monero (XMR)

  • Getting more attention from financial regulators than BTC. Privacy be default (unlike Zcash). Hides the sender, recipient, and amount.
  • Surprised by how well it performed this year.
  • Do you need a privacy coin? Or a privacy solution for existing coins (eg ETH)?
  • Privacy coins were popular in 2017, seemed like they would be an investment class to themselves. 2018 was bad for all non-BTC coins.
  • They are proof of work, so tough for their price to go up, due to constant selling from miners (proof of stake less so)
  • There was an argument to say that privacy coins would struggle to get listed on legit exchanges due to regulatory issues, so therefore hard to become widely used money.
  • Monero is often compared with Zcash:
    • If you really value privacy, it’s pretty much only Monero at this point (used compete with Zcash which has opt-in privacy).
    • Zcash almost a meme how poorly it has performed since launch. But it has delivered on its promise of opt-in privacy. You can now mine directly into a shielded address. But not many people use the privacy features yet. A lot of crypto is people buying in the hope that other people will use it.
    • The large founders reward, a large percentage of emissions, impacted its narrative negatively.
    • If you have emissions modelled after BTC, you will have a lot of miner dumping. Miners play energy arb all day and mine and dump the most profitable coins.
    • Would want to see Zcash go up as confirmation, before buying it.

14) 29:46 EOS (EOS)

  • Designed to compete against Ethereum – an Ethereum killer.
  • Mainnet in May 2018, ongoing crowd sale for months before. Raised a ton.
  • Coin started as ERC token by investors contributing ETH. Something like 11% of all ETH went towards this crowdsale.
  • Had a lot of developer adoption in 2018, but struggled with lots of economic incentive issues between the actors. Rising complexity increased potential attack vectors. Turned devs off.
  • Still got a strong community, block producers are mainly the exchanges now (this centralisation is a risk for all proof of stake coins). Wide distribution, still work being done on it. Hasn’t delivered as much as people had hoped.
  • Largest ICO ever, huge treasury, would have expected them to have done more. Mainly treasury is in BTC, over 140k BTC which could be the largest ICO foundation.
  • Might be biding their time for a killer use case, don’t count them out.

13) 35:04 USD Coin (USDC)

  • More heavily regulated stablecoin than Tether, which is regulated in the US but more lightly. Tether doesn’t offer proofs of reserve that USDC does.
  • USDC done well vs the USD onshore-US stablecoins (vs PAX, GUSD). PAX has gone to a whitelabel model: BUSD (BinanceUSD) and HUSD (HuobiUSD) run on PAX infrastructure.
  • USDC’s main source of strength has been the strong brand of Circle and ties with Coinbase being an easy place to mint and redeem. DeFi has also helped USDC (USDT (Tether) has also benefited a lot from DeFi)
  • Stablecoin pools tend to use USDC and DAI. You can mint DAI with USDC with very low haircut.
  • USDC used in OTC trading now instead of bank cash. Faster and cheaper and easier. USDC is the proxy for bank transfer.
  • USDT is like offshore dollars (“Eurodollars”), USDC more like onshore USD.
  • Could USDC be the official CBDC of the US? Non-zero chance. Official sector could partner with USDC. Don’t think US CBDC would run on Bitcoin or Ethereum rails – you’d be paying for censorship resistance that you don’t need.

12) 40:48 Bitcoin SV (BSV)

  • Still alive! Forked off BCH in late 2018, and flippened BCH (ie had a higher market cap) for a couple of moments.
  • BSV wanted a much bigger blocksize, whereas BCH wanted an adaptive blocksize. The BSV folks wanted their own coin all along, so this gave them the incentive.
  • They are pushing through a lot of transactions, but they are not meaningful, a lot of them are unnecessary.
  • They have pivoted to early 2017 Ethereum based arguments and narrative. But why are they doing this on a Proof of Work fork of a fork?
  • Endgame feels like it’s different to what they say it is. You shouldn’t go around shorting it just because you don’t think it’s a good idea, because the endgame is unclear.
  • Tons of BCH hasn’t been claimed since the fork, neither has the BSV that forked off the BCH. So the circulating supply of BSV is less than people think – maybe 3m coins. The market cap is overstated, and a lot of BSV has been dormant for various reasons (could be tax, could be they don’t want to dox their BTC account).
  • If the price rises, some dormant volume could activate to be sold to pay tax.
  • Don’t think a hobbyist can run a node any more. They’re proposing to remove the P2P network, so wallets connect directly to mining nodes. So then they can get rid of Proof of Work. And then it’s fully client-server and BSV has lost everything that made it different form the existing internet infrastructure!

11) 46:26 Stellar (XLM)

  • A fork of Ripple (XRP). A codebase fork, not a coin distribution (blockchain) fork.
  • Jed McCaleb, the founder of Stellar, was also at Ripple, so he has loads of both.
  • Stellar is more interoperable than most with Bitcoin. It can in theory run a lightning network.
  • In early 2017, Stellar did a huge airdrop to BTC holders, which got some Bitcoiners to back Stellar. It’s like a Ripple fork that Bitcoiners hold more of.
  • Wouldn’t rule out some of these micropayment coins to support the CBDC proposals. But you don’t need censorship resistance.
  • Hasu: I wouldn’t buy for this reason though. I’ve never been more bearish on Ripple, and by extension Stellar, than I am today.
  • Stellar, like Ripple, has a ton of the market cap not active. A few months ago they announced they’d burn some of their escrow. Made their price go up briefly then back down. The coin supply isn’t well defined – in that sense it’s centralised (lots of coins held by few actors).
  • Burning could be seen as bullish or bearish – bullish in that it increases scarcity, bearish in that they can’t find any productive uses for the coin other than burning it.

10) 50:24 Binance Coin (BNB)

  • Binance has done tons of trading volume, some days they did $30bn of volume.
  • Binance has done really well in the offshore market vs their competition, especially after withdrawal issues at OKEX (took a month to withdraw), and Huobi has 3 key staff in prison.
  • Binance focused on their users doing well, eg their Launchpad and IEOs. Brought on reputable projects, negotiated good terms for BNB holders and Launchpad users. The direct-to-client model really helped them and set them apart.
  • Sam (CEO of FTX) is playing that accessibility game well too nowadays.
  • Binance was one of the first exchanges to have a good token, and so their userbase, especially early ones, are very loyal, as they made money, and BNB holders get value accrued back.
  • People trust Binance because the BNB token did well. They’ve nailed how to accrue value to BNB holders, much better than other exchanges who issued coins, then basically forgot about the holders (eg LEO, Bitfinex’s coin, and Huobi’s coin). Binance was able to pull off this vision.
  • BNB allowed people to participate in Binance’s success in a democratic way. It behaves like Binance equity. Some people don’t like the “buy and burn” model, which is better than dividends for tax, but it means holders don’t get cashflow unless they sell the BNB. Psychologically, people prefer more tokens than the value of their tokens going up even if financially equivalent. This happens in MakerDAO too.

9) 56:50 Polkadot (DOT)

  • (Polkadot is a Layer 1, competitor to Ethereum)
  • Most inclined to own this coin after BTC and ETH. We’re big fans of Polkadot. Unparalleled approach by the team (Gavin Wood, who also founded Parity). Parity launched Ethereum and built the community and bootstrapped developer adoption.
  • Polkadot is the highly engineered approach to smart contract applications. Analogue would be Cosmos which has a slightly different approach.
  • Polkadot popular in Asia, large grassroots community.
  • Next few weeks and months will be key for adoption.
  • Look at Kusama, which is kind of the Litecoin of Polkadot. Had 4x faster block speeds, faster governance modules. Has had loads of grassroots support, its price has outperformed DOT.
  • Will see a lot of DeFi applications plant a flag on Polkadot in the coming months. Eg Compound.
  • Polkadot has a lot of EVM compatible tools now.
  • Case for Polkadot is very strong.

8) 1:03:09 Cardano (ADA)

  • Has existed as long as Polkadot. Funny one for the top 10. Proof of stake coin… this is a complete mystery.
  • Charles Hoskinson, founder, was also early in Ethereum. They raised 50,000 BTC in Japan in other countries.
  • Has done well price wise, still 85% vs all time high.
  • This was on Bitmex, it has futures. People see it representing or as a proxy for Alt coins, so will buy when they think alt season is coming. Large market cap, low price, also moves a lot. People like trading it. Only coin except XRP below $1 in the top 10.
  • Product roadmap is unclear.

7) 1:05:25 Chainlink (LINK)

  • Has done extremely well price wise. Highly dedicated community. Has best memes beside BTC. Good engineering. Good partnerships and real integrations.
  • This is the poster-boy of application thesis – how apps (rather than the underlying layer 1 coin) can accrue value (LINK has 10% of the value of ETH)
  • Where will value accrue? Layer 1s? Applications? Oracles?
  • If Application thesis is correct, many DeFi coins will appear in top 20 over the coming months, because they are actually used. If it’s wrong, maybe base layers will perform.
  • Link is definitely the best oracle solution, has the credibility, everyone is forced to use it else they get harassed.

6) 1:08:44 Bitcoin Cash (BCH)

  • Has lost a lot of value vs BTC but is still there.
  • Proves you can’t just fork BTC and invalidate BTC’s scarcity. Could even say its failure has generated value to BTC.
  • Negative Lindy effect – the longer it doesn’t succeed, the harder it will be to succeed.
  • Has OG support from wealthy crypto folks.
  • Been damaged from ETH too – some BCH fans went to Ethereum. It lost the Bitcoin network effect and investor community, and also lost the utility mantle to Ethereum.
  • If BCH forked off earlier in eg 2016 it could be worth more now – it could be what we think of as Bitcoin now. It could have been the winner. Eg today’s Ethereum is actually a fork of Ethereum Classic, as today’s Ethereum was the more aggressive act. Ethereum is actually the fork; Classic is the original chain.
  • Hard to determine what the real Bitcoin or Ethereum is – it’s whatever we say it is.
  • BCH’s struggle now is the roadmap and adoption. How to create a larger community and bring new people in. They tried to do a bunch of things in 2016 but it’s too little too late.
  • BCH didn’t give BTC owners any reason to own it. Spent too much time arguing and too little time delivering the roadmap.
  • Their playbook was merchant adoption (rather than store of value), but stablecoins damaged that playbook.
  • You need a reason for people to own it – a niche to be best at. In the meantime it’s proof of work which means it’s constantly being sold.
  • Bitcoin in its current form has no competition. It’s the only store of value narrative, it is pristine collateral, and other chains want to import it. Other chains are better than BCH in terms of utility (eg Ethereum), stablecoins beat BCH for payments, centralised chains beat BCH on confirmation times. BCH doesn’t have an edge / niche. In this space it only matters to be the best at something, to carve our your niche.
  • BCH’s price could do well though in the next few years. Devs can get more of a say, the disillusioned investors have sold and and quit; supply is more centralised. Can BCH track BTC as it goes up, as a philosophical hedge? Maybe BCH can move in a ratio (say 0.01 to 0.1) to BTC as a hedge.
  • Forks are a bit like options – there’s a time decay, that the longer a fork doesn’t deliver on its aims, the less likely it will be to succeed. The competing effect is the Lindy effect which is that the longer something has been around, the more likely it will be to continue to be around. So which force prevails is what’s important.

5) 1:19:32 Litecoin (LTC)

  • This is like BCH. How is this still around? This is the second most Lindy coin as it was created very early after Bitcoin. Also the gold/silver meme is strong in the traditional markets and they have applied that here – LTC is the silver to BTC’s gold.
  • They’ve aligned with the BTC community well, never threatened to flippen it. They’re like the kid brother.
  • Have captured retail interest, as it is (unit) priced lower than BTC. Litecoin is the ultimate beneficiary of the unit bias effect (if something is cheaper “per coin”, people might buy it preferentially). Even more so than XRP which needs you to believe a different narrative about payments. Litecoin’s only meme is that it’s digital silver to digital gold.
  • It’s also definitely not a security – no premine, got proof of work. Also has all the on-ramps eg exchanges, Paypal.
  • LTC functions as the testnet for BTC innovation eg Segwit, lightning network.
  • Some traders see LTC as the Alt vs BTC. They will only flip between BTC and LTC. Some also like XMR (Monero).
  • It’s a money crypto rather than a utility crypto.

4) 1:24:40 Tether (USDT)

  • Reached $20bn market cap – insane growth.
  • In 2019 everything thought Tether would die / get busted. People trust it more now.
  • People underestimated the network effect. A few exchanges that don’t do fiat eg Binance, Huobi, need USDT to exist as a trading pair and to get stable money in and out, and the stablecoin should be neutral, not the exchange’s branded one.
  • USDT benefited when the markets go up, people sell into USDT, as people have the confidence they can use USDT to buy back in (compared with eg there are no meaningful USDC trading pairs).
  • USDT is so big you don’t need to create/redeem it into bank account money.
  • They’ve sorted out their banking issues, moved to the right jurisdictions, using the right partners.
  • USDT is 6x bigger market cap than USDC but more than 6x more liquid, as much of USDC is locked up in DeFi.
  • A hybrid of different narratives. Got Lindy effect, it was early.
  • For a long time it appealed to traditional financial people who first learnt about crypto: no proof of work, cheap unit bias, done a bunch of partnerships and they parlay them into announcements that makes it look like adoption.
  • Whether it can deliver its roadmap (banks using XRP to move value to do remittances and payments) remains to be seen.
  • With CBDCs and other stablecoins, the Ripple narrative is hard to sell. The markets get smarter over time.
  • A bit anti-Lindy too – the longer you talk about adoption and the longer it’s not adopted, the worse for you. Fresh narratives might do better this cycle. Old narratives have to pivot into fresh narratives eg Ripple’s Flare network.
  • Flare: Gives XRP holders SPARK coins on the Flare network. The idea is you can use DeFi on Ripple, or XRP on Ethereum. Feels like a capitulation of narratives. You’re saying there’s nothing compelling on the XRP roadmap, so just use this on DeFi. Even retail will catch on to this.
  • Had some big supporters from traditional finance, believers in digitisation, XRP to replace SWIFT or whatever, but increasingly don’t see the case for this. The burn can be regarded as capitulation. Wouldn’t want to hold it.

2) 1:33:35 Ethereum (ETH)

  • ETH price is hot headed topic because its price did so badly in 2018. So a lot of the community feel PTSD.
  • Bullish Ether vs 90-95% of coins. It’s the only smart contract chain that definitely has adoption. You can earn a living on Ethereum, everything else is a promise and a whitepaper.
  • People underestimated ERC20 and Metamask network effects. Even with its high fees and transaction ordering issues. Doesn’t matter, as it has composability, developers and users.
  • We might go to a power-law world 80% BTC 20% ETH.
  • Don’t buy into the flippening narrative that ETH will overtake BTC’s market cap. ETH already beats BTC on most metrics, so why hasn’t it already flippened BTC?
  • ETH holders tend to understand that BTC as a store of value requires a high degree of trust minimisation. Hard to imagine ETH as a digital money as it hard forks often, and has an ill defined monetary policy. Hard to even describe the process of monetary policy in ETH, making it relatively less appealing as “money”.
  • ETH has unit bias, with BTC at all time highs and ETH at 40% of all time highs. Despite ETH2.0 deposit contracts hitting 1m ETH, DeFi coins breaking all time highs, still 40% of all time high. Shows you that the crypto inflows is all USD -> BTC.
  • Not useful for the average person to debate BTC vs ETH. Just own a basket. Ambitious to bet on ETH flippening BTC, but you’d probably still make money in USD.
  • If you mainly own ETH, should consider that DeFi apps (Aave, Sushi, YFI) benefit from ETH network but also want to accrue value to their own token holders and users (not necessarily to ETH itself). So there is a divide: Molly (founder of Hedgic) said “I don’t care if you think ETH is money or not; I’m using Ethereum because it’s permissionless and I can put my app there”.
  • Maybe after Proof of Stake and EIP1559 it will increase fees generated on the network, and make ETH more useful as collateral (bullish for ETH). ETH is being challenged as collateral by BTC-on-Ethereum which keeps growing. BTC could flippen ETH as collateral across the Ethereum ecosystem.
  • People underestimate reflexivity in crypto. If ETH breaks through all time highs, it’d be a good buy, entering price discovery. ETH is the most reflexive asset in the space. At $80-100 people say there’s no need for it to have value; at $800-1000 people say it could flippen BTC. But it only lasts a few weeks at those price points. It’s still very hot money driven.
  • It has inherited the Bitcoin Cash (hedge against BTC) mantle. This gives it a price floor that other tokens don’t have.
  • Hasu: 100% sure it’s not going away, but probably won’t flippen BTC. I recommend to my friends to buy BTC and ETH and hold for at least a year. Bullish on the existence of both.

1) 1:46:51 Bitcoin (BTC)

  • Almost reached all time highs. Was super quiet on the run up, then media machine will turn on.
  • Most people buy BTC on the second time they hear about it – first time they think it’s a bubble or a scam. Then a year later they realise it hasn’t gone away, so they might buy some on second look.
  • 2019 was when BTC got more respectability, 2020 it got social proof and prestigious.
  • The social prestige of BTC has never been higher than now, even when you speak with traditional bankers. Respectable traditional finance people coming out in support of BTC.
  • Seeing a lot of high net worth and family offices buying. For them it’s about keeping up, not outperforming. If this is about digital scarcity, then I need my own piece: If owned x basis points of total wealth in my city, I need to own x basis points in BTC to get to my original wealth distribution. That’s how many of them are thinking about it. It’s 100% BTC now, not other cryptos.
  • They’ve been tracking it for years, seen it fend off the forks & get regulatory clarity. It has all come together, in the backdrop of heavy monetary easing and printing. No surprise we are at all time highs now, and the thesis for BTC as a store of value has never been stronger.
  • Career risk: There used to be career risk from owning or recommending BTC, now career risk is from not owning BTC 😂 People underestimate how fast this is happening.

Source: https://bitsonblocks.net/2021/01/02/top-20-coins-uncommon-core-podcast-episode-15/

Blockchain

Ethereum in Blockchain Software Development

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In the connected digital era, technology is expanding in leaps and bound leaving no space for businesses to cope up. Every day there is an advancement in technology that makes businesses amazed at how easy it would be for their business to adopt that technology. The most common buzzwords of the Information technology sector are the Internet of Things, Automation, Blockchain Machine learning, and other significant technology trends. Specifically, if we talk about Blockchain, then blockchain has been imprinting a higher success ratio in almost all the industry domains. Multiple businesses want to leverage blockchain as a service but aren’t sure about its operations and functioning. So, with the same thought let’s get deeper into the fundamentals of blockchain, ethereum development, building apps on ethereum, blockchain software development, and apps developed around blockchain services. 

 

To start with, what is blockchain as technology or blockchain as a service?

 

What is Blockchain?

Blockchain is an overarching technology that is a hallmark of security and trust that has revolutionized the way information can be exchanged on the internet. Blockchain also assures that the data stored in the blocks as a transaction ledger cannot be tampered with or deleted by anyone. 

 

In comparison to a conventional centralized network, blockchain is a decentralized network that comes with many advantages, including improved system stability and privacy. Furthermore, such networks are much easier to scale and have no single point of failure. This connected decentralized nature of Blockchain is due to mutual networking and distributed computing.

 

It is an emerging technology that has enticed multiple users to securely access data in a flexible manner that mitigates risks of data breach and confidentiality of information. The name of blockchain is easily decodable like it means blocks formed in a chain. These blocks are chained together and were thus introduced with the initiation of Bitcoin in the year 2008. And probably that’s the reason why most of the businesses misinterpret Blockchain with bitcoin, ethereum cryptocurrency, and other similar terms. 

 

To understand the concept in detail, we will be unraveling all these terms that create ambiguity and restrict users from using Blockchain. Here is the simplest meaning of all the terms

 

Bitcoin

A decentralized blockchain dedicated to the exchange of tokens between accounts. Bitcoin is authentically built using the blockchain cryptocurrency concept.

 

Cryptocurrency

 

Cryptocurrency is a method where cryptography is used to create evidence of ownership for digitally transmitted and traded currencies all across the globe.

 

Ethereum 

Ethereum is an advanced version of Blockchain that is also decentralized. Ethereum now uses a Proof-of-Work (PoW) consensus algorithm, but future protocol updates will most likely move to a more scalable algorithm based on Proof-of-Stake (PoS).

 

Blockchain

The data in a blockchain is stored in discrete parts (blocks) that are connected in this system. Invalid data is rejected by blockchains, which specify parameters for what data should be stored in a block and which should not.

How are Ethereum and blockchain interlinked?

To understand the interconnection between ethereum and blockchain, we need to understand what exactly ethereum is. Ethereum has a strong association with smart contracts. Smart contracts are another important term used in this process and often create confusion with blockchain. 

Smart contracts are legal contracts that are created between two parties and with a blockchain element that makes the method secure and strong. In some smart contracts,ethereum are inserted and those contracts can be specifically identified. Developing with Ethereum allows open-source networking and hence the overall process becomes transparent yet secure. The coding in smart contracts is done based on If, Then, or Else conditions. As per the satisfying predefined conditions, the contract gets automatically executed. These are non-decodable and tamper-proof.

 

Now, what is Ethereum in Smart contracts? 

As we know that ethereum is a cryptographic asset that has a definite address that redirects as per the predefined conditions. Ethereum is an advanced-level blockchain that stores the information of smart contracts in a decentralized blockchain network.

 

The blockchain developers using Ethereum are well-skilled with two major types of languages- Solidity and Vyper language. 

Ethereum as a software development tool

Ethereum is a shared distributed network of nodes that handle transactions and add them to an increasing database known as the blockchain. Since it is an open-source network, anybody can have access to it. Smart contracts are applications that can be written by developers and hosted on the Ethereum network. Anyone with Ethereum access will perform write and read operations on the blockchain. In this way, you can easily create blockchain software development of applications.

 

Ethereum in software development using multiple languages that work in software development using ethereum. When you decide to develop an app using ethereum, you need some access points in the blockchain, and other than that some knowledge of some programming languages such as Solidity, web3.js,infura.io ethereum networks, and more. 

 

It would just take a few minutes to set up your Ethereum development setup or environment. Before we start writing code, we need to have a clear understanding of a few general principles that contribute heavily to the development process using ethereum. 

 

Web3.js 

It is a JavaScript library for developers to write codes for web browsers in an ethereum blockchain. 

Infura.io 

It is a company offering different types of API for simple ethereum networks with the help of HTTP and WebSockets. You can host your ethereum network using Infuras API.

Cloudflare’s Ethereum Gateway 

Cloudflare, a well-known DNS and web-infrastructure provider, offers a free Ethereum Main Net API. Cloudflare’s portal, unlike Infura’s, does not require an account or an API to use.

Ganache CLI 

It is a command-line GUI for running an Ethereum instance locally. On your local computer, we can build a blank Ethereum blockchain or a fork of a public network’s blockchain. Truffle

Truffle

Truffle, Ganache, and Drizzle are examples of Ethereum creation tools created by this company- Truffle. We can successfully install Ganache CLI so we can run our Solidity and Web3.js code locally during production.

Solc

It is a compiler for Solidity. It can convert  Ethereum bytecode into human-readable Solidity code. 

MetaMask 

It’s a tool that allows end-users to use ETH, Ethereum-based cryptocurrency tokens, and monitor their Ethereum wallets by using decentralized Web3 apps (a.k.a. DApps). A web browser plugin that allows you to call Ethereum smart contracts directly from a webpage.

 

Pros and Cons of Ethereum 

Numerous benefits are offered by ethereum and with the demonstrated results in the market, every business is keen to adopt that. Here are some of the benefits that ethereum offers in terms of using it in any type of software development process. These are special characteristics of ethereum plus are perks of using it too. Here is a list of five advantages of using ethereum in the development

Immutable

Ethereum is blockchain comes with sure-shot surety of no tampering or changing of data. Even if you don’t lock your database with a passcode, it will still be protected under the blockchain. There is no way to change or amend data in Blockchain; the data stored there is permanent; it cannot be deleted or undone.

Decentralized

It is not a centralized system and hence it doesn’t work like one. The primary aspect of blockchain is decentralization which offers simpler usage, transparency, and interconnectivity. This indicates how each block is closely linked but non-decodable. 

 

Transparent

Blockchain is a distributed ledger technology that takes up total accountability. Organizations and businesses may use blockchain technologies to create a completely decentralized network that eliminates the need for a centralized entity, increasing the system’s visibility.

Highly Secure

One of the major benefits of ethereum is security. The initiation of blockchain as a service promises the most secure network without any tampering or deletion of data. Also, the transaction made by the blocks stores encrypted data that is not hackable. 

Traceable

This is one of the simplest reasons why businesses choose to take up blockchain because it can easily show desired search results even with millions of records stored in the blockchain.

 

Cons

Flexibility is an important factor to consider.

 

Though Ethereum offers strong decentralized encryption, the network does not scale well enough to meet the demands of an ever-growing user base.

Lack of understanding

Like we started blockchain is a buzzword and most of the business wants to leverage the benefits of blockchain but are unable to do so because of lack of knowledge and implementation skills.

Final Thoughts

Blockchain Software development of Blockchain as technology serves as a driver for profitability for all types of businesses with its fundamentals and demonstrated expertise in authenticity, security, and legitimacy. This open public ledger fills in all the holes, allowing businesses to monitor microtransactions with pace and agility. Ethereum is one of the largest blockchain development networks that has given a boost to business streamlining with protection to their essential data, information, and apps. It has been a flag-bearer of change for many businesses, it’s the turn of your business now to look for change.

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Bitcoin Preis bald bei 68.700 USD?

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Der Bitcoin Kurs hat am 14. April 2021 ein neues Allzeithoch bei 64.854 USD erreicht. Kurze Zeit später fiel er ziemlich schnell.

Nachdem Drop validierte der Bitcoin Preis das ehemalige Widerstandslevel bei 61.500 USD als Support. Seitdem steigt er wieder allmählich an.

Bitcoin Preis Tageschartanalyse 

Am 13. April 2021 ist über Bitcoin Kurs über das Widerstandslevel bei 61.500 US-Dollar ausgebrochen. Am 14. April 2021 erreichte der Bitcoin Kurs das letzte Allzeithoch bei 64.854 USD.

Allerdings fiel er noch am selben Tag auf das letzte Low bei 61.301 USD. Danach ist der Bitcoin Kurs wieder nach und nach gestiegen. Der Bitcoin Kurs konnte also den Widerstandsbereich bei 61.500 USD erfolgreich als Support validieren.

Die technischen Indikatoren liefern uns überwiegend bullische Signale. Sowohl der RSI als auch der „Stochastic Oscillator“ steigen weiter an. Außerdem befindet sich der MACD wieder fast im positiven Bereich. Der Bitcoin Preis wird also wohl erstmal weiter ansteigen. Das nächste Widerstandslevel liegt bei 68.724 USD.

Bitcoin Kurs Tageschart 15.04.2021
Bitcoin Preis Tageschart By TradingView

Bitcoin Preis kurzfristiger Ausblick

Lass uns einen Blick auf den 2-Stunden-Chart werfen. Dort siehst du, dass der Bitcoin Kurs nach dem gestrigen Drop (in Grün eingezeichnet) die aufsteigende Trendlinie als Support validiert hat. Der MACD hat zwar immer noch kein Plateau erreicht. Allerdings befindet er sich nach wie vor im positiven Bereich. Außerdem ist der RSI wieder über 50 angestiegen.

Der Bitcoin Preis wird also voraussichtlich bald auf das zuvor erwähnte Widerstandslevel bei 68.724 USD ansteigen.

Bitcoin Preis 2-Stunden-Chart 15.04.2021
Bitcoin Preis 2-Stunden-Chart By TradingView

Bitcoin Kurs Wellenanalyse

Laut unserer Wellenanalyse befindet sich der Bitcoin Kurs gerade in der fünften und letzten Teilwelle (Orange) eines bullischen Impulses, der im März 2020 begonnen hat. Der Hochpunkt der letzten Teilwelle liegt wahrscheinlich zwischen 83.000 USD und 90.500 USD. Wir erhalten das Preisziel, indem man ein externes Fib-Retracementt auf den Tiefpunkt der vierten Welle einzeichnet bzw. eine Fib-Projektion auf die ersten drei Teilwellen anwendet.

Die Teilwellenzählung der orangen Teilwellen ist in Schwarz eingezeichnet. Die noch kleinere Teilwellenzählung der zweiten schwarzen Welle in Rot. Sobald die fünfte Orange Welle abgeschlossen ist, werden wir voraussichtlich erstmal eine Korrekturphase sehen.

BTC Wave Count
Bitcoin Kurs Chart By TradingView

Fazit

Der Bitcoin Preis wird sich wahrscheinlich erstmal auf das Widerstandslevel bei 68.425 USD ansteigen. Sobald der Bitcoin Kurs das Level durchbrochen hat, wird er sich der nächste Top nähern, die wohl zwischen 83.500 USD und 90.500 USD liegt.

Hier geht es zur letzten Bitcoin-Analyse von BeInCrypto!

Eine interessante Krypto-Exchange für das Krypto-Trading und Investment in die verschiedenen Kryptowährungen: Stormgain.

Ein Bild von BeInCrypto.com Krypto-Bull
Ein Bild von BeInCrypto.com

Übersetzt von Maximilian M.

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Valdrin ist ein Kryptowährungs-Enthusiast und Finanzhändler. Nach seinem Master-Abschluss in Finanzmärkten an der Barcelona Graduate School of Economics begann er im Ministerium für wirtschaftliche Entwicklung in seinem Heimatland Kosovo zu arbeiten. Im Jahr 2019 beschloss er, sich ganz auf Kryptowährungen und den Handel zu konzentrieren.

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Source: https://de.beincrypto.com/bitcoin-preisf-68-700-usd-ansteigen/

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Ethereum Berlin Upgrade: Fix für die Gas-Gebühren?

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Das Ethereum Berlin Upgrade ist das erste Upgrade seit Istanbul vor 15 Monaten. Ethereums Berlin Upgrade fällt mit einem neuen Allzeithoch ETH Preis bei etwa 2.326 US-Dollar zusammen.

Ethereum Preis: Ein Bild von CoinMarketCap
Ethereum Preis: Ein Bild von CoinMarketCap

„Nach Monaten der Planung ist Berlin endlich da! Das Upgrade, das auf die Upgrades für Istanbul und den Muir-Glacier folgt, soll im Ethereum-Mainnet in Block 12 244 000 live gehen. Wir gehen davon aus, dass dies um Mittwoch, den 14. April 2021, geschehen wird, jedoch aufgrund der Variabilität der Blockzeit, kann sich das genaue Datum noch ändern.“

So lautet die Einleitung zum Berlin Upgrade auf dem Ethereum Blog.

Während die Ethereum Blockchain viele neue Anwendungsbereiche eroberte (DeFi, dann NFTs), wurden auch die Schwachstellen der Ethereum Technologie immer deutlicher spürbar: Die Gebühren schossen in rekordverdächtige Höhen und die Transaktionszeiten stellten so manchen Nutzer auf die Geduldsprobe. Nun kommt das Ethereum Berlin Upgrade genau richtig, um die Technologie an die wachsenden Anforderungen anzupassen. Für die Nutzer soll das Upgrade aber zunächst keine spürbaren Hürden mit sich bringen:

„Wenn Sie einen Exchange (wie Coinbase, Kraken oder Binance), einen Web Wallet-Dienst (wie Metamask, MyCrypto oder MyEtherWallet), einen Mobile Wallet-Dienst (wie Coinbase Wallet, Status.im oder Trust Wallet) verwenden, oder eine Hardware-Wallet (wie Ledger, Trezor oder KeepKey) müssen Sie nichts tun, es sei denn, Sie werden von Ihrerm Exchange- oder Wallet-Service über zusätzliche Schritte informiert.“

Ethereum Berlin Upgrade: Ein Bild von BeInCrypto.com
Ethereum Berlin Upgrade: Ein Bild von BeInCrypto.com

Ethereums Killer Nummer 1: Transaktionsgebühren

Ende Februar 2021 erreichten die Transaktionsgebühren bei Ethereum einen Durchschnittswert von fast 40 US-Dollar. Somit war der Transfer von kleineren Mengen ETH kaum sinnvoll. Langfristig hätten diese hohen Transaktionsgebühren die Adaption der Plattform einschränken können. Schließlich muss eine Plattform attraktive Nutzungsattribute für die Anwender mitbringen.

Das Ethereum Berlin Upgrade soll dieses Problem nun lösen, damit Ethereum gegenüber aufstrebenden Plattformen wie Cardano wettbewerbsfähig bleibt. Einige der Protokolle des Upgrades:

  • EIP-2565 = Reduktion der Kosten für die ModExp-Vorkompilierung. Dies hilft bei der Berechnung der Gaspreise.
  • EIP-2929 = Erhöht bestimmte Gaskosten, wenn sie zum ersten Mal in einer Transaktion verwendet werden.
  • EIP-2718 = Führt ein neues Transaktionsmodul ein, das mehrere Transaktionen unterstützt.
  • EIP-2930 = Transaktionsart mit optionalen Zugriffslisten. Diese besondere EIP wird dazu beitragen, einige der neu auferlegten Gaspreise aus EIP-2929 zu senken.

Das Berliner Upgrade ist ein Schritt in Richtung der Ethereum 2.0-Metamorphose der Ethereum Foundation. Die neue Hauptkomponente ist eine vollständige Änderung der Art und Weise, wie das Netzwerk Transaktionsgebühren verarbeitet. Allerdings sind nicht alle Ethereum Miner zwangsläufig begeistert von dieser Entwicklung. Denn die Gebühren gehen dann nicht mehr an die Miner, sondern werden verbrannt. Fraglich ist, ob das Mining so langfristig für die Community attraktiv bleibt.

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Alex hat ihren Bachelor in Orient- und Asienwissenschaften an der Friedrich-Wilhelms Universität Bonn absolviert, danach Deutsch als Fremdsprache am Goethe Institut studiert und ihren Master in Arabistik an der Freien Universität Berlin absolviert. Seit 2017 ist sie als Krypto-Journalistin tätig.

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Source: https://de.beincrypto.com/ethereum-berlin-upgrade-fix-fuer-die-gas-gebuehren/

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Binance wird Coinbase Aktie anbieten

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Die Kryptowährungs-Exchange Binance kündigte an, dass sie eine tokenisierte Version der Coinbase Aktie rausbringt. Die Coinbase Aktie ist die zweite tokenisierte Aktie, die Binance anbietet.

Vor kurzem kündigte die Exchange Binance an, dass sie digitale Anteile der Coinbase Aktie anbieten wird, nachdem diese auf dem Nadaq gelistet worden ist. Seit der Börseneröffnung vom 14. April 2021 kann man die COIN-Aktie offiziell kaufen. Seit kurzem kann man außerdem eine tokenisierte Version der Tesla-Aktie auf Binance handeln.

Binance Stock Token

Binance lancierte diese Woche die erste tokenisierte Aktien. Die Nutzer müssen keine Kommission für den Handel mit dem Token zahlen. Jeder Aktien-Token entspricht einem Unternehmensanteil. Jeder Token ist außerdem 1:1 mit einer Aktie hinterlegt. Die Aktien werden in einem speziell dafür angelegten „Depository-Portfolio“ hinterlegt. Binance arbeitet mit der Investmentfirma CM-Equity AG und der Asset-Tokenization-Plattform Digital Assets AG zusammen, um die neuen Aktien-Token anbieten zu können.

Die Mindestpositionsgröße beträgt ein Hundertstel des Wertes des Aktien-Tokens. Die Kunden müssen zudem den Stablecoin BUSD (Binance USD) verwenden, um mit den Token handeln zu können.

Seit dem 12. April 2021 kann man die tokenisierten Tesla-Aktien auf Binance handeln. Tesla ist bei vielen Krypto-Tradern sehr beleibt.

Binance Art
Ein Bild von BeInCrypto

Coinbase Aktie

Coinbase wurde heute auf der NASDAQ-Börse gelistet. Die Exchange Coinbase kündigte ihren Börsengang bereits im Dezember 2020 an. Coinbase beantragte dann im Februar 2021 eine öffentliche Notierung bei der US Securities and Exchange Commission (SEC). Kurz darauf wurde der vorläufige Preis der Coinbase-Aktien bei einem privaten Verkauf auf 350 US-Dollar pro Stück festgelegt. Die Gesamtbewertung des Unternehmens lag damals bei 90 Milliarden US-Dollar.

Nach einer leichten Abänderung des Antrags genehmigte die SEC den Antrag von Coinbase. Coinbase ist die erste Krypto-Exchange, die an die Börse gegangen ist. Viele Investoren betrachten diesen Schritt als einen Meilenstein für die Krypto-Branche. Viele Experten rechnen allerdings mit einer äußert hohe Volatilität der COIN-AKTIE. Wir werden sehen, wie sich der Preis der COIN Aktie in den kommenden Tagen entwickelt. Zum Zeitpunkt der Veröffentlichung ist der Kurs der COIN-Aktie auf über 400 US-Dollar angestiegen.

COIN Aktie Quelle: nasdaq.com

Übersetzt von Maximilian M.

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The opinion of BeInCrypto staff in a single voice.

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