Crypto Market

Cryptocurrencies

Cryptocurrencies have gained significant mainstream attention in recent years, with many people becoming interested in the potential of these digital assets. Among the many cryptocurrencies available, Bitcoin and Ethereum are two of the most well-known and widely accepted. In this article, we'll discuss why these two coins are considered the top cryptocurrencies in the market.<h2>I. First Mover Advantage:</h2>One reason that Bitcoin and Ethereum are considered the top cryptocurrencies is due to their first mover advantage. Bitcoin was the first decentralized cryptocurrency to be created, launched in 2009. It has since become the most well-known and widely accepted cryptocurrency in the world. Ethereum, on the other hand, was launched in 2015 and has quickly risen to become the second-largest cryptocurrency by market capitalization. Both Bitcoin and Ethereum have a strong brand recognition and a large user base, which gives them a significant advantage over newer cryptocurrencies.<h2>II. Network Effects:</h2>Another reason that Bitcoin and Ethereum are considered the top coins is due to their strong network effects. The more people that use a cryptocurrency, the more valuable it becomes. This is because the more people that use a cryptocurrency, the more merchants will accept it as a form of payment, and the more secure the network becomes. This creates a virtuous cycle where the value of the cryptocurrency increases as more people use it, which in turn attracts even more users. Both Bitcoin and Ethereum have a large and active user base, which creates a strong network effect for these coins.<h2>III. Utility:</h2>In addition to their first mover advantage and strong network effects, Bitcoin and Ethereum have real-world utility and are being used for a variety of purposes. Bitcoin is primarily used as a store of value and a medium of exchange. It has become a popular asset for investors and is often used as a hedge against inflation. Ethereum, on the other hand, is a decentralized platform that enables the creation of smart contracts and decentralized applications (dApps). This has made Ethereum a popular choice for developers and has led to the creation of a large ecosystem of dApps built on the Ethereum platform.<h2>IV. Innovation:</h2>Both Bitcoin and Ethereum are continually innovating and improving their protocols in order to maintain their position as the top coins in the market. Bitcoin has undergone several upgrades to its protocol, including the introduction of SegWit and the Lightning Network, which have made it faster and cheaper to use. Ethereum, on the other hand, is working on a major upgrade to its network called Ethereum 2.0, which aims to increase the scalability and efficiency of the network. These continuous improvements to the protocols of both Bitcoin and Ethereum help to ensure their long-term success.<h2>V. Adoption by Institutions:</h2>In recent years, Bitcoin and Ethereum have seen increasing adoption by institutions and mainstream businesses. This includes the likes of PayPal, Visa, and Mastercard, all of which now allow their customers to buy and sell Bitcoin. Ethereum has also seen increasing adoption, with major companies such as JPMorgan, Microsoft, and Intel joining the Ethereum Enterprise Alliance, a consortium of companies working to promote the adoption of Ethereum in the enterprise space. This increased adoption by institutions further solidifies the position of Bitcoin and Ethereum as the top cryptocurrencies in the market.<h3>Conclusion:</h3>In conclusion, Bitcoin and Ethereum are considered the top cryptocurrencies in the market for several reasons. These include their first mover advantage, strong network effects, real-world utility, continuous innovation, and adoption by institutions. While there are many other cryptocurrencies available, Bitcoin and Ethereum have established themselves as the industry leaders and are likely to remain so for the foreseeable future.

Why Bitcoin and Ethereum are considered the top cryptocurrencies in the market. It covers the first mover advantage of these coins, their strong network effects, real-world utility, continuous innovation, and adoption by institutions. The article concludes that Bitcoin and Ethereum have established themselves as the industry leaders and are likely to remain so for the foreseeable future.

Why Bitcoin and Ethereum are considered the top cryptocurrencies in the market. The strong network effects, real world utility, continuous innovation, and adoption by institutions.

Why Bitcoin and Ethereum are Considered the Top Cryptocurrencies

<h2>Meta is already at a disadvantage!</h2>However, the most important signal coming from the markets is this: the metaverse will be the next big thing, the next thing to boom in the blockchain industry. Facebook's initiative (now Meta) will help make this new way of interacting online popular, but protocols like Decentraland and The Sandbox have already accumulated such a technological advantage that it will be very difficult for Facebook to close the gap (even with its huge users base, which is demographically less relocatable within the metaverse). For this very reason, it's no surprise that many VIPs, wanting to be among the first to enter these "digital universes", have opted for Decentraland and The Sandbox, rather than waiting for a primitive and immature version created by Facebook. But how many people are currently part of these projects?<ul><li>The Sandbox: more than 80,000 wallets and more than 30,000 active users in its metaverse monthly</li><li>Decentraland: more than 150,000 wallets and about 300,000 active users in its metaverse monthly</li></ul>But let's take a closer look at how many new people enter these metaverses every day. According to an analysis of the official data of opensea.io (the most important platform in the trade of LANDs and assets) about every hour there are between two and six sales of LANDs (which I remember to be 96x96 meters large for "The Sandbox and 16x16 meters for "Decentraland"). Each LAND of Decentraland is currently sold at an average price between 3.5 and 4 Ethereum while the portions of the metaverse of The Sandbox, although larger, are sold only between 3 and 4 Ethereum. Here are some of the “craziest” sales:<ul><li>Transaction hash: 0x53628ca3cc92ccf39eb9603dea2553a5594f9f09ca658528b00f00d484873f78 (Decentraland LAND sale)</li><li>Transaction hash: 0x52489121347591c6d54f0c2278c4383adaa61b33659c7afa06da9dbf2e0bc864 (The Sandbox LAND sale)</li><li>Transaction hash: 0x18e9a7ec14f5a82afe3edb3f12bbb5b77b210f6e19fda8c812a979b6f70dc2fd (Decentraland LAND sale)</li><li>Transaction hash: 0x7b61afffd39b14d571c19776d40241c2afe98e67b42d5c640b99aad7e14b9662 (The Sandbox LAND sale)</li></ul><h2>Fashion industry join the metaverse</h2>The metaverse business is not all about LAND sales. In order to personalize your character in the metaverse, both “Decentraland” and “The Sandbox” offer a long list of in-game assets, including clothes, accessories and gadgets. First among all to move in this direction were Nike and adidas. The company of the swoosh, in recent weeks, has registered some of its brands (Nike, Air Jordan, Converse and RTFKT) to use in virtual contexts and has announced that it has acquired RTFKT Studios, specialized in the creation of NFT (Non Fungible Token) and which has distinguished itself in the sneakers business. The aim should be to be among the first to develop a real line of virtual clothing (earlier this year RTFKT was one of the first companies to design and sell virtual shoes combined with a line of real shoes). "This acquisition is another step that accelerates Nike's digital transformation" said John Donahoe, CEO and president of Nike, "and will enable us to serve athletes and creators in the marketplace that sits at the intersection of sports, creativity, gaming and culture. We've acquired a very talented team of creators with an authentic, connected brand. Our plan is to invest in the RTFKT brand, grow their innovative and creative community and extend Nike's digital footprint and capabilities." Nike previously won a "private lot" on Roblox (a virtual worlds platform) with the creation of NIKELAND, a sort of citadel of sports that recreates the Beaverton headquarters. The same thing was done by Adidas, which decided to create its own little virtual world within The Sandbox, one of the most famous platforms within which to create buildings and activities in virtual reality. The German company made the announcement through a video showing the three collaborators next to the iconic shamrock-shaped logo: "Today we are jumping into the metaverse... it's time to enter a world of unlimited possibilities". Adidas is also close to launching an NFT line of real-world suits and sweatshirts that can only be purchased by those in possession of the tokens. There is a dedicated webpage called Into the Metaverse where all the details about their NFTs will be shown. The collection is already available on the most famous NFT exchange (opensea.io). "The Metaverse is where anyone can express their most original ideas and most authentic selves, in whatever form that may take" said Adidas' Senior Director of Digital Growth, Tareq Nazlawy. As you can see from the speeches of the executives of the two brands, there are a lot of expectations about the "metaverse" theme, and considering the improvements made daily to the two current main metaverses, it could prove to be a winning choice in the long and short term.<h3>And Institutional too!</h3>Barbados, the small Caribbean island of 280,000 inhabitants will become a full-fledged republic by the end of the month. The former British colony will replace Queen Elizabeth with a new president, a woman, Sandra Mason. At the same time, at the end of January, another revolution will take place, equally unexpected: the Ministry of Foreign Affairs and Foreign Trade has announced an agreement with Decentraland, one of the most famous digital worlds, for the opening of a virtual embassy. Thanks to the metaverse, Barbados would be able to relate, also in an environmentally friendly way (fewer flights) with the almost two hundred countries recognized by the UN. The first country in the world to open an embassy in a virtual world was the Maldives in 2007. Maldives then followed by Sweden, Estonia, Colombia, Serbia, North Macedonia, Philippines, Albania, Israel and Malta.

Will be the metaverse the new 'boom' in the blockchain industry? Read more about the other direct Meta competitors!

Will be the metaverse the new 'boom' in the blockchain industry?

The Metaverse: It Is Getting More Serious Every Day

Note that ETH 1.0 is now called an execution layer and ETH 2.0 a consensus layer.After everything we have discussed, we should talk about one last thing – Ethereum’s Roadmap&nbsp;Ethereum’s Roadmap consists of several phases:<h2 class="ql-align-justify">Beacon Chain</h2>It is a Proof of Stake blockchain that went live on Dec 1 2020. It does not handle transactions or Smart Contracts and it runs parallel to Ethereum Mainnet or execution layer (ETH 1.0). It is the foundation of the consensus layer (ETH 2.0)<h2 class="ql-align-justify">London Hard Fork or an Ethereum Improvement Proposal 1559</h2>Went live on August 5 2021. An upgrade of Ethereum Mainnet. Remember the Block Reward for mining?Block Reward = 2 ETH + Transaction Fees (Gas) + Inclusion of an Uncle Block (0.0625 ETH, max 0.125 ETH (2 Uncle Blocks))Well, that has changedBlock Reward = 2 ETH + Inclusion Fees + Inclusion of an Uncle Block (0.0625 ETH, max 0.125 ETH (2 Uncle Blocks))Transaction fees will instead be burned forever (etherscan.io/chart/dailyethburnt), which means that Ether is a deflationary asset (<a href="https://etherscan.io/chart/ethersupplygrowth" rel="noopener noreferrer nofollow" target="_blank">https://etherscan.io/chart/ethersupplygrowth</a>). Unlike Bitcoin, with its fixed supply cap of 21 million, Ether’s supply does not have a cap. The only cap there is – a maximum of 18 million Ether can be mined per year.&nbsp;The Inclusion fee is sort of a tip. Users pay a premium to ask miners to prioritize their transactions over other ones.For example, before the London upgrade transaction fees were calculated like this:Ellie sends Joel 1 ETH, gas limit as we already know is 21,000, gas price at the time was 100 gweiTotal fee = 21,000 * 100 = 2,100,000 gwei or 0.0021 ETHSo, 1.0021 ETH would be deducted from Ellie’s wallet, Joel would receive 1 ETH, the miner would receive 0.0021 ETHAfter the London upgrade:Every block has a base fee or the minimum transaction priceEllie sends Joel 1 ETH, gas limit is 21,000, the base fee is 100 gwei and the tip (inclusion fee) is 1Total fee = 21,000 * (100+1) = 2,121,000 gwei or 0.002121 ETHSo, 1.002121 ETH would be deducted from Ellie’s wallet, Joel would receive 1 ETH, the miner would receive 0.000021, 0.0021 ETH would be burned.<h2 class="ql-align-justify">Altair Hard Fork</h2>Went live on October 27 2021. An upgrade of the Ethereum Beacon Chain. We already discussed the slashing penalty, when the validator validates a fraudulent block and we also discussed types of nodes in mining, one of which are light nodes. So, the Altair upgrade brings light nodes to the Beacon Chain and inactivity + slashing penalties.<h2 class="ql-align-justify">The Merge</h2>Planned to ship in Q2 2022. Beacon Chain will merge with Ethereum Mainnet → the end of the Proof of Work consensus mechanism.

Migration of Ethereum from 1.0 to 2.0 and the upcoming roadmap changes in the next couple of years starting from 2023

ETH 1.0 to ETH 2.0 Migration

Smart Contracts are powering the applications and programs built on Ethereum Protocol. They are the same as real-world contracts, except they are digital. So, it is best to say that Smart Contracts are digital contracts in the form of computer programs.The best metaphor for a smart contract is a vending machine.You create some inputs (money + number of the snack on the vending machine) and get a certain output (snack). This is programmed into the vending machine. Smart Contract works the same way. The vending machine removes the need for a vendor employee, smart contracts remove intermediaries in many industries. <h2 class="ql-align-justify">Characteristics of Smart Contracts:</h2><ul><li class="ql-align-justify">Immutable</li></ul>Just like blocks in the blockchain, smart contracts, once deployed, cannot be changed. The only way to modify it is to create a new one.&nbsp;<ul><li class="ql-align-justify">Deterministic</li></ul>Doesn’t matter who runs it, the outcome will always be the same for everyone.<ul><li class="ql-align-justify">Decentralized</li></ul>Nobody owns a Smart Contract. It belongs to everybody, as everything else is in the decentralized network.&nbsp;&nbsp; <h2 class="ql-align-justify">Advantages of Smart Contracts:</h2><ul><li class="ql-align-justify">A higher degree of security</li><li class="ql-align-justify">Automatic agreement enforcement and the ability to turn legal obligations into automated processes</li></ul>Smart contracts are written in Solidity programming language. It is a high-level language that can be understood by humans. For Ethereum Protocol to understand it, it has to “translate” it to another “language” called bytecode. The Google Translator of Ethereum is Ethereum Virtual Machine. After the translation is completed, a smart contract is deployed on the Ethereum platform using a special contract creation transaction.&nbsp;Smart Contracts have their own Ethereum address (Public Key), but no Private Key. They are identified as Contract Accounts.&nbsp;&nbsp;These programs run on one condition – only if they are called by a transaction. They never run on their own, only if an Externally Owned Account initiates a transaction to the Ethereum Address of the Smart Contract. Once called, Contract Account initiates a transaction on its own or calls another contract, which can call another one, and so on.

Ethereum Smart Contracts. Security and use case of one of the most complex features on a blockchain

Ethereum - Blockchain Smart Contracts

The author is not a financial advisor. Hence, he is not qualified to give a financial advice. Everything in the article is for educational and entertainment purposes only. <h2>What is the Maiar Exchange?</h2>It is an automated market maker (a type of decentralized exchange (DEX) protocol) like Uniswap or PancakeSwap running on the Elrond Network.&nbsp; <h2 class="ql-align-justify">The difference between Maiar Exchange and exchanges like Binance, Coinbase, and Kraken</h2> Binance, Coinbase, and Kraken are known as centralized or traditional exchanges. They have an order book, which requires a buyer and a seller. The fees that the buyer pays to buy an asset and the fees that the seller pays are the profit of the exchange. Additionally, you must register an account on the exchange by providing an ID, proof of address, etc.&nbsp;In contrast to a decentralized exchange, such as Maiar, there is no need for an account, therefore you keep your data to yourself, and by being an automated market maker (AMM) there is no need for a counterparty.&nbsp; <h2 class="ql-align-justify">How does an AMM work?</h2>If you want to buy or sell an asset, you interact with a smart contract (same as a traditional contract, but written in code). So, a trade happens between users, and contracts and the price is determined by a formula.&nbsp;Token A Quantity * Token B Quantity = ConstantImagine, Token A is Bitcoin and Token B is a stablecoin – USDC.&nbsp;BTC Quantity * USDC Quantity = ConstantThe liquidity pool must always have 50/50 of each cryptocurrency.&nbsp; If 1 BTC is $10, then for each BTC we must provide $10 of USDC or 10 USDC tokens.&nbsp;10 BTC * 100 USDC = 1000 Scenario: A user bought 2 BTC for a certain amount of USDCConstant must stay at 1000(10 BTC – 2 BTC) * (100 USDC + x) = 10008 BTC *(100 USDC + x) = 1000100 USDC + x = 1000/8100 USDC + x = 125x = 25The user bought 2 BTC for $25 and the liquidity pool will look like this8 BTC * 125 USDC = 1000Now, the price of 1 BTC rose from $10 per BTC to $15.625. At this moment, another user (an arbitrageur) finds an opportunity on Binance:1 BTC = $10He buys 2 BTC on Binance and sells them on the DEX(8 BTC + 2 BTC) * (125USDC – x) = 100010 BTC * (125USDC – x) = 1000125USDC – x = 1000/10125USDC – x = 100x = 25He bought 2 BTC for $20 on CEX and sold them for $25 on DEX, netting $5 of profit.&nbsp;The liquidity pool will look like this:10 BTC * 100 USDC = 1000

All the benefits of using Elrond as a blockchain and the features brought to us via the decentralized Maiar exchange in 2022

Elrond, Maiar exchange and the power of a blockchain based decentralized exchange in 2022

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