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Ruth Kise

Ruth Kise

15 Articles

Ruth Kise is an enthusiastic crypto explorer and anime fan. Graduated from the Faculty of Linguistics. "In word I trust!"

Crypto Mixers and the Story of Tornado Cash

Crypto Mixers and the Story of Tornado Cash

Ruth Kise 8 min read
All transactions in the network of Bitcoin and many other cryptocurrencies are recorded in the blockchain, so this system is as transparent and public as possible. But at the same time, such transparency is a significant drawback for cryptocurrency holders who want to remain completely anonymous. Bitcoin addresses (to a certain extent) can be tracked and associated with real personalities. Thus, investors risk disclosing their data and tracking their account transaction logs. To solve this problem, mixers were developed. In this article, we will consider the concept of a cryptocurrency mixer, the principles of its work, why it is needed, as well as its vulnerabilities through the example of Tornado Cash . What Is a Crypto Mixer? A crypto mixer or bitcoin tumbler is a service created to increase the privacy of transactions in cryptocurrency networks. When the user makes a transaction through a coin blender, it is divided into tens or even hundreds of small transactions and mixed with the transactions of other users. This is designed to completely hide the original tracking and confuse all subsequent ones as much as possible. In addition, custom logs are automatically and permanently deleted within 24 hours of successful blending. Types of Crypto Mixers All mixers fall into two categories: Centralized. They are managed by a specific person or company. Such mixers are of high quality, and have an excellent design, but alas — the user is forced to be depending on their honesty and the severity of the performance of obligations. They charge large commissions to run the cryptocurrency, roughly 3%. And you have to take into account the chance that the resource can save operation logs for technical purposes. This increases the risk of hacking and leaking transaction data to third parties. That is, there is still a risk to anonymity. Decentralized or peer-to-peer. That is, transactions are mixed without the participation of an intermediary and use only special smart contracts . They guarantee the privacy of users, do not record data, and their creators cannot escape with assets. But technically, they are more difficult to use, especially for beginners. One of the most important conditions for the operation of peer-to-peer crypto blenders is a large number of customers. How the Mixing of Coins and Its Features Take Place The pace of coin mixing depends on several factors, such as the chosen cryptocurrency, for example, Bitcoin, and the amount of the transaction. After you leave the order, your crypto will head to the pool and wait for confirmation from the miners. And then go to the indicated wallets in a cleaned form. The number of bitcoin addresses and the number of transactions should be taken into account. This is 5 – 6 translations. To further increase anonymity, mixers use deferred transaction technology. Almost all mixers, in order to maintain privacy, delete logs after a day, and also allow you to delete them by yourself. The bitcoin address generated by the blender usually works for 24 hours and is applicable only for transfers within the service. Usually, bitcoin mixers prohibit accepting crypto at the previously used address. And of course, KYC verification is not required here. When conducting a transaction, the service gives out various important information: a letter of guarantee, confirming codes, addresses of wallets. It is important here not to accidentally close the tabs with important information, since they will be useful for obtaining currency for other wallets. Already cleared money will go into them. Be careful if the coin number is below the lower threshold for a mixer: it can go to developers as a donation. Why Should I Mix Coins Many people believe that crypto mixers are needed only to launder illegally received money. Of course, there is some truth in this. But there are other reasons, for example, hiding their income from other people. For instance, bitcoin is a cool tool for online purchases and p2p transactions, with which you can make trade transactions bypassing the banking system. But again, all transactions are stored on the blockchain. It turns out that if someone knows the address of your wallet, they can track the movement of the funds. Where is the promised anonymity? Such transparency seems outrageous to many. So bitcoin mixers are a good way to hide data on your wallet. No one will be able to watch your beats.  Talking about legality, the legislation of many countries has not yet reached the cryptocurrency regulation, and even more other projects related to it. Therefore, the use of mixers is now legal there. Crypto Tumbling Cons The story of privacy at the expense of mixers is far from ideal. In 2022, decryption of mixers is possible, yes. Experts have already calculated the likelihood of decrypting the bitcoin tumbler. It is about 95%, and the decoding itself became possible thanks to the analysis of clustering. Two projects Bitfury and Chainalysis have developed algorithms to identify related bitcoin addresses with high accuracy. Of course, this exposes mixer users to certain danger. These algorithms can calculate a person, and besides, demonstrate to the public who uses the coin blender. And another significant problem is a large number of scammers in this sector. In addition to the fact that there are many fake pages and spoof sites, there is a risk that the crypto recipient will get "dirty" coins, as a result of mixing the sender's funds with illegal bitcoins of other customers.  It is the movement of illegal money that attracts the attention of the government. Feeling vulnerable, the state cannot but follow the action in the cryptocurrency market and anyway takes measures to resolve and counteract crime. What Happened to Tornado Cash One of these steps was the imposition of sanctions on the Tornado Cash mixer. On August 8, the US authorities imposed sanctions on a smart contract for a popular privacy application, which launched a real chain reaction and led to the arrest of one of the developers in the Netherlands. TC was considered the safest mixer on the Ethereum blockchain, which gained its popularity among users. What to hide, it was used by both hackers from North Korea and very respected and public personalities. Unlike many other mixers, in terms of communication with the outside world, Tornado Cash was a fairly open and public protocol that positioned itself as a tool for ensuring financial privacy. The founders and developers of TC were also well known in the crypto community . Unfortunately or not, the lack of legislation regarding crypto mixers does not mean that they have some kind of immunity and can exist without regard to regulators. According to the Financial Crimes Enforcement Network of US (FinCEN), mixers are money transmitters under US law and have a number of duties, including in the AML/KYC area. Moreover, there are a number of precedents: October 2020: FinCEN imposed a $60 million fine on the founder and operator of Helix and Coin Ninja mixers. April 2021: The US Department of Justice arrested a 32-year-old citizen of Russia and Sweden, who was the creator of one of the first bitcoin mixers. May 2022: OFAC has sanctioned Blender.io, a TC-like bitcoin mixer. Taking this into account, it is difficult to call the imposition of sanctions on Tornado Cash very unexpected. So the U.S. Department of the Treasury added the TC service and the associated crypto wallet addresses to the sanctions list, justifying its decision by the fact that the platform was used to launder illegal crypto assets. What Was Next Immediately after the publication on the OFAC website, a press release on sanctions was followed by a cascade of events and outbreaks from where they were not expected. First, the site tornado.cash was blocked. Then the open TC repository on GitHub was deleted. The same fate awaited the developers of TC: GitHub blocked their accounts. Then the Discord server and forum on Discourse fell. By and large, at the moment all traces of Tornado Cash on the Internet were erased. The reaction of individual crypto protocols was just surprising, namely recalling that the decentralized Internet and sovereign money are not so decentralized and sovereign. The first to add fuel to the fire was Circle, the operator of the most popular stablecoin USDC , freezing $75,000 in stables. The crypto exchange dYdX did the same, even though the company has always shunned American jurisdiction, and positioned itself as outside its perimeter. Next, MakerDAO got excited. Recalling that his reserve of 50% consists of USDC, one of the founders of MakerDAO, Rune, spoke up about the worsening regulatory climate — and among other things, offered to prepare for a break from the dollar. If so, the guys will have to convert USDC $3.5 billion into ETH . Perhaps it was this news that cheered up this week's ETH course. Examples of Circle and dYdX were followed by other DeFi platforms, which started to add blocked addresses to their blacklists. But the most shocking was the news of August 12 about the arrest of one of the developers of Tornado Cash. After all, it's one thing to impose sanctions on a protocol that, to be cunning, was really used by North Korean hackers, but another thing is to arrest a developer who created this protocol without any criminal intent. A smart contract is a binary code that is stored on the Ethereum blockchain. Anyone who knows the smart contract address can interact with its functions by initiating transactions. The TC smart contract was fully autonomous. There was not a single person who could stop or interrupt its work. In turn, sanctions are usually imposed on criminals or political enemies. This time, sanctions were imposed on a neutral technology or tool. To Sum Up Undoubtedly crypto blenders are a useful tool that advocates the idea of anonymity. However, nothing stands still, and even as it would seem, new technologies become vulnerable to scammers. It is also worth remembering that in addition to honest crypto users, the market is attractive to criminal structures. This means that you are at risk of being with "dirty" crypto on your hands or having a run-in with the law. One way or another, be vigilant.
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People of Crypto in 2022

People of Crypto in 2022

Ruth Kise 11 min read
Blockchain's innovative ideas, ever-changing rules, extremely risky market movements, and crypto-sphere fraud make understanding cryptocurrencies really challenging. No matter what level you are in, you can and should learn more and draw valuable insights from the most influential people called crypto influencers. Influencers are network personalities who have gained prominence in certain areas and a huge amount of followers, effectively influencing their communities as part of their area. Some of these people have extensive experience and a public image in the industry, and their actions can cause fluctuations in the value of digital currencies . At the same time, they add human contact to the blockchain theme, making cryptocurrency more understandable. The Most Famous Crypto Influencers on Twitter Here's a list of the ten major cryptocurrency influencers having Twitter accounts that traders need to keep an eye on to stay up to date in this very dynamic market. Anthony Pompliano Anthony Pompliano, commonly known as "Pomp," is one of the most active influencers on many platforms. He is well versed in finance and technology and is one of the first investors in Bitcoin. In addition to Twitter, he runs a YouTube channel where he posts discussions about cryptocurrencies with different personalities from the industry. In addition, Pompliano sends daily newsletters known as "The Pomp Letter" to more than 210,000 subscribers to share his analysis of businesses, foundations, and industries. Roger Ver One of the first preachers of blockchain, Roger intended to widely spread the word "bitcoin". He was far from being just an ideologist: his desire to achieve universal recognition led him to invest in several bitcoin companies and travel the world to convert people. Since losing patience with Bitcoin's leadership in 2017, he has become a firm supporter of the Bitcoin Cash hardfork . Alex Gladstein Despite his audience of fewer than 200,000 followers, Alex Gladstein has a fairly diverse following: Anthony Pompliano, Michael Saylor, Dogecoin creator Billy Marcus, and Ethereum co-founder Joseph Lubin are all subscribed to him. As an ardent proponent of human rights, Gladstein offers substantive material on why Bitcoin is an innovation for monetary equality and an alternative to the current financial system. Brad Garlinghouse With more than half a million subscribers, Brad Garlinghouse shares information about every little detail of the cryptocurrency sphere — from policies and rules to updates inside Ripple. It's important for many to keep abreast of the SEC's case against Ripple as it will set an authorized precedent across the cryptocurrency, especially if the SEC wins. And Brad Garlinghouse is the primary source of information on this topic. Brian Armstrong Those looking to learn more about crypto policy and regulation should sign up for Brian Armstrong. Armstrong's work as CEO of the Coinbase cryptocurrency exchange did not prevent him from taking a radical position on issues related to cryptocurrencies, which brought him admiration not only from Coinbase customers but also from many community representatives. Changpeng Zhao Changpeng Zhao, also known as CZ, is the co-founder and CEO of the world's largest cryptocurrency exchange, Binance. CZ was a software developer to buy and sell futures for Bloomberg Tradebook. He also pursued numerous cryptocurrency projects and startups until Binance was founded in 2017. In addition to publishing a series of FAQs on Binance blogs, he publishes other industry information and market offerings (usually life offerings). CZ has actually come a long way since making burgers at a fast food restaurant as a teenager/ Elon Musk Elon Musk, the CEO of Tesla and SpaceX and the richest man on the planet , is responsible for numerous fluctuations in value in the cryptocurrency market. His tweets had such an impact on assets that the term "Musk Influence" was coined. After Musk's statement that he supports Bitcoin, its value grew to $32,000. As a staunch supporter of Dogecoin, the CEO has also raised the value of the token several times. One tweet from Musk could lead to the growth or collapse of the investor's favorite cryptocurrency, depending on his temperament. Michael Saylor Michael Saylor, CEO of Microstrategy, is considered one of the most important Bitcoin whales in the cryptocurrency world. While most of his tweets relate exclusively to Bitcoin, Saylor's optimistic sentiments, combined with his scientific forecast and scientific view of Bitcoin, earned him the respect of others. Plan B Unlike others on this list, PlanB is an anonymous account. Nevertheless, PlanB definitely allows his 25 years of experience in institutional investment to come to the top. Since it entered the cryptocurrency world, PlanB’s Twitter has become popular because of its outlook that Bitcoin ( BTC ) will reach $250,000 sooner or later. Its bold market forecasts are sometimes based mainly on the Bitcoin Stock-to-Flow (S2F) model — software that, as mentioned, was created by PlanB and is one of the right tools for traders and sellers. The influencer is a supporter of using Bitcoin's supply and demand elasticity to ensure future market value. Vitalik Buterin The Canadian-Russian founder of Ethereum has been involved in blockchain and cryptocurrency since its inception. As Ethereum's most famous founder, he is passionate about the community and any blockchain-related tasks. The Most Popular Crypto Influencers on YouTube YouTube's cryptocurrency channels are another way to learn about the venture and keep abreast of blockchain trends. A variety of content can be found here, from trading strategies to interviews with blockchain industry leaders. Next, we selected the top 10 crypto YouTubers by subscribers worldwide. Coin Bureau Subscribers: 2,060,000 Mike Jenkins is the man behind the channel. Here, he provides his audience with educational and informational videos about blockchain. Its detailed explanation and comprehensive list of selected cryptocurrencies made the channel YouTube's most popular cryptocurrency channel in 2022. Coin Bureau provides information on many types of cryptocurrencies, such as Cardano , Polkadot , Solana , Ethereum, and many others. BitBoy Crypto Subscribers: 1,450,000 BitBoy Crypto AKA Ben Armstrong, whom we mentioned above, publishes the latest news and opinions on the cryptocurrency market, project reviews, and trading tricks you can use to make high profits and significantly limit losses. People can also learn about various altcoins , historic bitcoin cycles, and get the latest on Ethereum on its channel. Altcoin Daily Subscribers: 1,230,000 Altcoin Daily is run by brothers Aaron and Austin Arnolds. The Altcoin Daily channel is established as a source of news, market analysis, education, viewpoints and opinions. Aaron and Austin Arnold are clear bitcoin fundamentalists, and they use the altcoins trade as a way to build their bitcoin stack. On their YouTube channel, they publish the latest crypto universe news daily and interviews with prominent members of the crypto community from time to time. Brian Jung Subscribers: 1.171.000 In 2015, Brian Jung made significant progress in financial influence, training young investors in business, lending and personal wealth management. He is an experienced entrepreneur who has successfully started companies such as The Credit Society. JRNY Crypto Subscribers: 661,000 JRNY Crypto launched its channel in 2017 and quickly gained prominence as a reliable source of investment in new altcoins. It brought popularity to coins such as Sparkpoint and Uniswap . CruptosRUs Subscribers: 641,000 CryptosRUs, also known as George, has been operating in crypto space since 2013. He first began sharing his knowledge by answering questions at Quora, but later decided to create his own YouTube videos explaining the know-how in the crypto universe in 2017. On his account, he often discusses the latest news related to cryptocurrency and analyzes graphs. He recently released its own NFT called I am George, releasing 1,000 unique items that are now available. Ellio trades in cryptocurrency Subscribers: 587,000 The well-presented Ellio Trades Crypto videos and detailed analysis of altcoins were key factors in the rapid growth of his channel. Ellio tends to focus on small-cap cryptocurrencies with a higher risk-reward profile. On his channel, Ellio presents his well-worked videos, which bring solid profits to the market. Crypto Banter Subscribers: 572,000 Crypto Banter is a YouTube channel that often provides its audience with live streams, news, educational content about bitcoin, Defi , NFT, blockchain, and other cryptocurrency-related content. The Crypto Banter team interviewed the industry's biggest guests, billionaires, thought leaders and professional traders. The channel’s purpose is for its audience to keep their finger on the pulse to learn. The channel’s owners want their viewers to make better trade and investment decisions and become part of this rapidly growing community. Lark Davis Subscribers: 488,000 Lark Davis, host and founder of one of these acclaimed crypto channels on YouTube, successfully presents his videos in a light-hearted manner. Lark's funny style uses humor to breathe life into his articulated analysis of technological upheaval and blockchain solutions. Lark Davis is a crypto sensation from New Zealand and his YouTube channel offers a good mix of skills and guidance. He helps his audience learn how to trade, make passive income and make money in bitcoin. Lark also offers in-depth Q&A with leading cryptocurrency figures, political posts on market trends, and cryptocurrency news. Ivan on Tech Subscribers: 494,000 Ivan on Tech is another crypto YouTuber widely known for his videos. He serves as a blockchain lecturer, data scientist, and international speaker. In fact, his channel has an entire academy dedicated to educating people about blockchain trading and how to make a career out of it. He has also addressed countless workshops on tech stocks and similar topics. Ivan is a popular crypto YouTuber because he does not complicate the situation. In fact, just the opposite — he is doing everything possible to easily disseminate information about cryptography, blockchain, and the events that affect them. Don’t Trust Bloggers Unfortunately, not all media influencers should be trusted, because many of them do not understand the topic or simply want money. Yes, most of them are paid to advertise and mention products on their accounts, this is a well-known marketing scheme. Scammers use it and pay for the promotion of unstable coins. Often bloggers are not embarrassed by this. They use parasocial relationships to benefit themselves in the first place. Nothing personal. Ice Poseidon (Paul Denino) The big YouTuber was once a Twitch star, but in 2017 he received a ban on the platform, after which he switched to YouTube. And recently, he turned on a fraudulent scheme with cryptocurrency, as a result of which he stole about 500 thousand dollars from fans, leaving himself most of the funds in cryptocurrency. Ice Poseidon has tricked its fans into investing in CxCoin, a platform created by a streamer for content creators to get donations in cryptocurrency. As a result, he simply collected the invested funds, out of 500 thousand dollars he appropriated 300 thousand dollars. FaZe In June 2021, gamers from the FaZe association became the first esports players to be printed on the cover of Sports Illustrated. The team has so many fans that in 2020 it received more than $40 million in donations. At the same time, they promote altcoins — for example, one of the founders of FaZe posted a tweet with a draw of $10 thousand for subscribing to a cryptocurrency Twitter account BankSocial .io. By the end of June 2021, the cost of BankSocial.io fell by 90%. The peak came into the FaZe advertising campaign, and now the currency costs $0.0000015. Soon FaZe deleted all tweets about this altcoin and stopped answering questions from fans about the draw. Adin Ross Twitch streamer with 4 million subscribers, Adin Ross advertised the MILF Token altcoin in one of his broadcasts — the advertising block lasted about 20 minutes, and the cryptocurrency developers promoted the broadcast. "Damn it, I'm sponsored by cryptocurrency today! They need three mentions an hour and I did. And I'll also play $20 thousand in this currency among you guys”, Ross said on the air. As with BankSocial.io, the value of the MILF Token fell by 90%. And three weeks after the broadcast, Ross first commented on his ad: "I told you I was paid. Yes, I don't care. I hope none of you bought this crap". To Sum Up Anyone can make predictions and share their opinions about every little thing about crypto coins. However, no one can become an influencer unless they have a large following and a large historical past in the industry. Only some of the many interesting personalities of the crypto world are mentioned in our list. As a rule, influencers pay attention to a certain direction — from market features to specific tokens and tasks. Crypto influencers have also been excellent partners for marketers in promoting their currencies, NFTs, apps, and other cryptocurrency-related businesses. Information from bloggers makes the situation in the cryptocurrency market clearer and inspires confidence in actions, but always check the information and do not suck in easy money just because your favorite YouTuber told you about it. Always do your own research.
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Blockchain Companies and Stocks: Traditional Finance in the Crypto World

Blockchain Companies and Stocks: Traditional Finance in the Crypto World

Ruth Kise 5 min read
2022 is in full swing, and it is already clear to everyone that the cryptocurrency world is alive, will live, and, in general, is still developing. Time has shown that the crypt market is growing, pushing the idea as well as attracting large funds. But how to put your own skin into the game, and where to start to earn money — is still difficult to figure out for many. Actually, there are no clear answers on where you can earn and how to advance (and of course, we don’t give financial or investment advice!), but we tried to convey some information in a concentrated and understandable way. Direct Investing in Cryptocurrency One of the most common and understandable strategies for interacting with cryptocurrency includes the purchase and storage of spot cryptocurrency assets. To do this, users can use centralized or decentralized exchanges , but in any case, you will have to go through the exchange of crypto for fiat money and back. Therefore, it is important to monitor the current regulation. However, if you do not like buying coins, but the crypto world still attracts you, then there are other ways to join the conversation. Investing in Cryptocurrency Infrastructure Mark Twain said it best: "During the gold rush, it's a good time to be in the pick and shovel business". In this case, indirect and direct investment is similarly possible. Direct investments in infrastructure are mining , investing in the creation of trading platforms (crypto exchanges), as well as services and technologies around them. Such investments should be considered long-term, strategic investments. Investing in publicly traded stocks of the basic technology needed to create a crypto service is also a way to enter the market, especially if you don't want to worry about specific tokens . The Web 3 concept is attracting more and more large investors, so the value of companies whose activities are aimed at developing infrastructure is growing. There are many options for investing here, and you can start with your own vision of the development of the crypto world. For example, if you are a proponent of the idea of crypto flow regulation and believe that the future lies with centralized exchanges, then the assets of Coinbase, the largest cryptocurrency exchange in the United States by trading volume, are traded publicly on the NASDAQ exchange. The platform held an IPO in April 2021 and its COIN shares are openly traded. If you are interested in the blockchain technologies themselves, then the next option is the shares of ConsenSys, Ethereum blockchain software technology company. Let's recall that ConsenSys, which was valued at $3.2 billion in the last round of funding in November, joins a growing list of crypto companies whose estimates have jumped in recent months due to an explosion of interest in Web3. Investing in Companies with Cryptocurrency Assets Alternatively, you can use indirect investment strategies. Since some publicly traded companies have cryptocurrency assets, it is possible to buy publicly traded stocks of these companies, thereby taking advantage of cryptocurrency without necessarily owning it. For example, MicroStrategy is a company engaged in the development of software and mobile applications. In August 2020, MicroStrategy invested $250 million in Bitcoin as a reserve asset. Later, the company made several more additional large purchases of Bitcoin, totaling more than $2 billion. After Bitcoin's price fell to about $20,800 in June 2022, the company said it had not received a margin call and that it had enough capital to withstand further volatility. Also, you can turn your attention to Block (Square Inc until 2021), an American technology company that develops solutions for accepting and processing electronic payments. In October 2020, the company placed about 1% of its total assets ($50 million) in Bitcoin (4,709 bitcoins), citing Bitcoin's "potential to become a more ubiquitous currency in the future" as the main reason. In February 2021, the company acquired another $170 million in Bitcoin (roughly 3,318 bitcoins), bringing Square's total assets to nearly $500 million in BTC (roughly 8,027 BTC in total). On December 1, 2021, Square announced its rebranding: the company was named Block. The new name is associated with the desire to reflect the growth of the company in the field of blockchain technology. Investing in a Cryptocurrency ETF Cryptocurrency ETFs are gradually being implemented, providing ETF shareholders with the possibility of indirect investments in cryptocurrency. For example, ProShares has launched a BITO — a bitcoin ETF that does not directly invest in bitcoin. Instead, it is based on futures contracts tied to the asset. The BITO ETF allows users to invest directly from their brokerage accounts instead of opening a wallet . Copy Trading: Passive Investing Next, we want to mention another way to increase capital — copying. The essence of the method is to copy the transactions of another trader. This means that many small or not very experienced traders willingly invest in new projects supported by the industry's largest and most successful investors. This way you can start trading in stock markets, even without knowledge of how it all works. You can choose a "role model" on a special platform using filters, or seek help from Quantum AI artificial intelligence, which analyzes the market and offers the best deal options. P.S. Goes Without Saying — But Don't Get Scammed Attention! No matter which way of earning money you choose, always double-check the platforms on which you plan to earn extra money. Sites must be reliable and, all about, genuine!
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Various Kinds of Crypto Hacks and Why They Happen

Various Kinds of Crypto Hacks and Why They Happen

Ruth Kise 7 min read
Let’s remind ourselves that the cryptocurrency financial system is still under development and is far from ideal. Many of the DeFi pros turn into cons that scammers are always happy to use. So recently, there is more and more news like 'platform hacked in a flash-loan attack' without explanation or with technical explanations. In the article, we will try to clarify this type of attack and other ways how blockchain can be hacked. Flash-Loan Attack Although the topic of flash loans is still developing, a number of large-scale attacks have already been carried out. Because flash loans have no limits on amounts and require no collateral, millions of dollars in ETH can be borrowed to make a significant profit. To better understand the process, let's consider the very phenomenon of a flash loan, the principles of its operation, and its usage. Flash Loan is a tool by which DeFi users can borrow a large amount of funds in digital assets without collateral for a period of time. A loan without collateral means that members do not have to provide proof of income and other liabilities. Such a risk-free loan works somewhat like this: the lender lends you as much money as you like, but only for one particular transaction. By the end of this transaction, you must return to the lender as much as you have borrowed. If you are unable to do so, the transaction will be automatically canceled! In other words, a loan is atomic: if you cannot repay it, everything goes back, as if there was no loan. The most common method of using flash loans for profit is arbitration. This is a process that uses the difference in asset prices in two different markets. Another method of making a profit is a "wash trade". This type of trading involves making purchases and selling an asset to increase trading volume. In traditional markets, such a procedure is prohibited. Flash Loan attacks can be successful if an attacker can manipulate the market to a certain extent. These attacks are carried out by arbitrating pumps and dumps and/or manipulating oracles . They are cheap to execute since attackers do not take on monetary obligations. Typically, these attacks are complex, multi-step processes executed by highly experienced DeFi users. In many cases, they involve depleting liquidity pools that ordinary users have invested in, causing many people to incur significant losses. Next, let's look at several more common attacks on the blockchain. 51% Attack   The most commonly known threat to the blockchain network. The name of the attack is an analogy with a controlling stake in the business sphere. The problem lies in the Proof-of-Work protocol, which is used by projects such as Bitcoin , Litecoin , Monero , and others. Its essence is that several miners with significant hashrate can get a "controlling stake" in the network, that is, they will have more than a half of all the network’s hashrate. Such conditions allow a hacker to carry out a double-spending attack, in which he can spend a larger amount than he has in his wallet. As a result, the blockchain is seized, and all the participants' funds are transferred to the ownership of hackers. In large networks, the chance of such an attack is several times lower due to the large number of participants and expensive equipment. Finney Hack The first recipient of the bitcoin transaction was Hal Finney and he was the first to talk about launching bitcoin. He was also the first to suggest the possibility of a double attack on the network. For this reason, the attack was named Finney Hack or Finney Attack in his honor. Finney Hack is a type of double-spending attack, which can happen when a person accepts an unconfirmed transaction online. Finney explained that the miner could generate a block in which he would include a transaction from address A to another address B, where both addresses belong to him. You will then make another payment in the same currency by sending from address A to address C (which belongs to another user). If the specified user accepts a transaction without confirmations from the network, a scammer can free the block in which his original transaction is included. This invalidates the transaction committed by the trader, allowing the attacker to double the cost. Race Attack  Another type of double consumption. Inexperienced and hasty traders can give the goods, even if the transfer failed, since there was a transaction attempt. Some sellers use "express payments" without the necessary confirmation for small amounts. In the wallet of the receiving party, such a transaction will be "in processing," and the addressee will have "not confirmed." A fraudster can convert such a transfer: send the transaction both to the seller's node and to his address on the network, broadcasting to the blockchain only the second one. The last transaction will be considered valid during the check, and the first transfer will be invalid. To prevent such an attack, it is not recommended to accept incoming connections to the node and wait for several transfer confirmations (3 confirmations for the amount from $1000 to $10,000, 6 — from $10,000 to $ million, and for even larger transactions — up to 60 confirmations). Eclipse Attack A special type of cyber attack, when a hacker forms an artificial area near one node to control his actions. The attacker redirects outgoing and incoming data from the target node to its own, separating the deceived user from the real network. The isolation of the target node allows confirming illegal transactions on its behalf and cut it off from messages with neighboring nodes — the hacker does not need to hack the entire network, it is limited to a small set of nodes. To block the node, a botnet or a phantom network is used to fill the node with IP addresses for synchronization on the next connection. The consequences of an eclipse attack are usually double-spending attacks, which have already been mentioned above, as well as a miner power failure when a hacked user spends electricity and time solving problems of artificial blocks that do not exist in the real blockchain network. Cryptographic Vulnerability Attacks Cybersecurity experts say as one that the most vulnerable place in any system is a person and scammers use this fact. Another consequence of the human factor is called errors in the code, having discovered which, an attacker can break the entire network. As an example, on Ethereum , a fraudster discovered a security loophole in the source code and assumed about $50 million in the coins, which amounted to about 30% of the total coin volume at the time. Because of the incident, the community split into two groups. The first, led by the creator of Ether, was outraged by the theft, offering to make a hard fork and return the coins to the legal holders. Their opponents were convinced that the real owner of the coins was now a hacker ("The code is the law"). As a result, the community came to an agreement to create a soft fork.  Social Engineering Crypto: Phishing These techniques rely on human vulnerabilities, not the technical prowess of a potential hacker. It is used to gain (unauthorized) access to sensitive data, cryptocurrency wallets or accounts, or to induce victims to download malware onto computers and networks to enact further damage. Such techniques include phishing, baiting, quid pro quo attacks, pretexting, and tailgating. Phishing is one of the most popular of them. It is used to steal private keys , card numbers, bank accounts and other confidential data. The simplest version of cryptocurrency phishing is the good old spam mailings of emails allegedly sent by this or that web service. In this case, letters are sent on behalf of cryptocurrency wallet sites or exchanges.  Such fake messages look noticeably more detailed and neatly written than phishing messages on average. For example, this may be a security alert that says that recently someone tried to log into your account from such and such and such a browser — follow the link to check if everything is in order. The user himself could configure and accept the reception of such messages on the wallet website — and he will not notice anything unexpected or even more wrong. Conclusion As you can see, the crypto market is full of danger. In the article, we described only a few types of potential fraud. Creators are constantly working to improve security protocols. But while the system is not ideal, it is worth remembering the possible risks and not taking the bait. 
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10 Craziest Stories in Crypto History

10 Craziest Stories in Crypto History

Ruth Kise 6 min read
The cryptocurrency market is one of the most attractive economic areas. This most dynamic industry to date has experienced many ups and downs in its rather brief years of existence. In this article, we will talk about the most remarkable events in the history of crypto, people who got rich on it (and who were one step away from it), as well as projects that may seem strange. They Paid Attention in Time Eric Finman The youngest cryptocurrency millionaire in the world. Now he is 19 years old and has 403 BTC , which at the current exchange rate is $2.8 million. He bought bitcoins when he was only 12 years old. His grandmother gave him $1,000, which he was supposed to set aside for college, but he chose the path of a cryptocurrency investor. As time has shown, he made the right choice. The Winklevoss Brothers These are the very brothers who sued Mark Zuckerberg for $65 million for stealing their idea and creating Facebook on his own. They took $11 million of the total amount of compensation and bought bitcoins on them. At the time of purchase, the coin was trading at $120 apiece. That is, they purchased approximately 91,666 BTC, at the current rate it is 641 million dollars. There are quite a few people who have made an impressive fortune on cryptocurrencies. Therefore, in order not to stretch the already large material, let us move on to those poor people who were one step away from wealth, but lost it. Right Up There Bitcoin Pizza On May 22, 2010, the software developer under the nickname Laszlo bought two of the most expensive pizzas ever sold. At that time, the cost of bitcoins was nominal, and the first miners simply did not know where to put their "funny money". And Laszlo on one of the bitcoin forums said that he would pay 10 thousand coins to whoever delivered him two pizzas. At that time, the deal looked completely ordinary, at that rate Laszlo did not overpay for his fateful dinner, but already in August of that year, two pizzas cost him $600. As of today, Laszlo has bought two pizzas for $70 million. Every year on May 22, Bitcoin pizza day is "celebrated." Mark Frauenfelder  US journalist Mark Frauenfelder lost access to a wallet that stored bitcoins purchased in early 2016 for three thousand dollars, a little more than seven bitcoins in total. Observing that the dollar equivalent of bitcoins is growing immeasurably, he happily purchased the Trezor hardware wallet. The journalist wrote the 24-word password on a piece of paper and placed a desk in a secluded drawer. On duty, Mark had to fly to Japan and took his wife with him. Being a suspicious person, he decided to put the words of access to the wallet under the pillow of his daughter in case something happens to the spouses, then let the bitcoins go to the children. Upon returning home, he did not find the cherished words under his daughter's pillow and realized that the houses were cleaned, and the note was thrown into the trash. Mark, no matter how he tried, could not remember the password. It was possible to make a combination of cherished words after six months, and during this time three thousand dollars turned into thirty (!). By the way, 20% of existing bitcoins are stored in wallets whose owners do not have access to them. According to estimates by the analytical company Chainalysis, which studies blockchain technology, there are now more than 18.5 million bitcoins in the world. However, 20% of them for a total of $140 billion are on lost or blocked wallets.  Weird Crypto Projects The phenomenon of cryptocurrencies is enabling people to make money or raise funds for just about everything. Several cryptocurrencies in the market have strange and fancy names, but were created for a cause and are still in circulation in the market. However, others just show how obsessed we have become with cryptocurrencies. Dogecoin A virtual currency based around the hugely popular internet meme of a Shiba Inu . Originally made to mock the alternative currencies that hoped to compete with Bitcoin, Dogecoin is now one of the biggest around. Its market cap recently broke through $2bn as investors seek out the next crypto-trend. Part of Dogecoin’s success is due to its vast and vibrant community , members of which created the Dogecoin Foundation, a nonprofit organization dedicated to using Dogecoin to fund goodwill projects. In 2014, the Foundation sent the Jamaican bobsled team to the Winter Olympics. It also funded the development of two clean water wells in east Kenya via a Twitter campaign. Bongger and Potcoin Those are cryptocurrencies promoting the cannabis revolution. These two are social projects that aid humanity in various aspects as a currency and act as a funding asset for the weed industry. Bongger also provides support for the medical, pharmaceutical, and basic scientific research on cannabis and its uses. Potcoin is not the only marijuana-themed currency. However, it gained notoriety due to its sponsorship deal with basketball star and unlikely North Korean diplomat Dennis Rodman. Kitties as Currency Such is the hype surrounding cryptocurrencies that anything built on blockchain technology is instantly a big deal. Take, for example, CryptoKitties, collectible digital artworks of cats and one of the first NFTs . The sort of digital version of Pokémon that can only be purchased with internet money. Users spend Ethereum in order to “breed” new kitties. Each kitty is unique and some devoted CryptoKitties players are willing to pay huge sums to own the best ones. The highest price paid currently stands at $117,700.  While a little weird, CryptoKitties is hugely popular. Over $12m has swapped wallets in kitty sales. Likewise, the game is now reportedly responsible for 11 percent of all traffic on the Ethereum Blockchain according to Motherboard. Fastfood Crypto! Is it reasonable to wait for your burger or chicken till a bitcoin transaction will be confirmed? No matter what you think, it seems cryptocurrency is a big deal in the fast-food world, and restaurants are keen to keep up with the latest trends. While McDonald’s has been tipped to start accepting cryptocurrency payments by as early as 2019, KFC has hopped on the bitcoin bandwagon. KFC offered up a limited edition Bitcoin Bucket, containing 10 pieces of chicken, fries, a medium side, gravy and two dips. All for a reasonable price of 20 CAD. KFC saw the viral bargain bucket sell out. At present, it’s unclear whether they will run the promotion again, but the fast-food chain might be convinced by its bitcoin balance (once the payments clear)… Living Crypto Life In addition to the striking stories of ups and downs, there are a lot of examples of when people are ready to fully involve cryptocurrency in their lives. For some, this is a great path to enrichment, while others are attracted by the cryptocurrency as a new stage in everyday life on the way to the formation of the Metaverse. Life on Bitcoin To date, there are an awful lot of merchants accepting BTC and cryptos as payment, so, the feat is far from impossible. But that wasn’t the case in 2013.  By then, the newlywed couple Beccy and Austin Craig decided to run a bold experiment: live and travel solely with Bitcoin as a payment method for 90 days. They called it “Life on Bitcoin”. The journey started from Utah and across the United States, and they also flew overseas to Stockholm, Berlin, and Singapore. Of course, they had difficulties in those months. But they did it nicely, and, two years later, they launched a documentary to prove this crazy crypto story. The Policeman Tony Vaughn, a police officer from the Kentucky provincial town of Vicco, was asked by the United States to pay his salary to the BTC. In 2013! When few knew about bitcoin at all. What can be said about paying with it? After conducting their own research, the city commission nevertheless agreed to such conditions. All his salary began to be converted into bitcoins and automatically transferred to a wallet. This was probably the first time that a public servant was paid in crypto. The average Police Officer salary in Kentucky is around $54,000 per year, and the Bitcoin price was over $1,000 then. So, any crypto savings that Vaughn kept has been revalued by around 5,300% so far. Not bad. Conclusion To sum up, the cryptocurrency world embodies the formula "new technologies + big money". By itself, this can drive many crazy. Until recently, cryptocurrency seemed to be something unimaginable. But humanity doesn't stand still. So keep your head cool and be hands-on, perhaps you will enter the top stories of crypto.
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What Is Web3?

What Is Web3?

Ruth Kise 6 min read
Web3 is the concept of a new stage in the development of the Internet, the basics of which are decentralization, blockchain-based work, and the economy of tokens . So far, there has been no complete transition to a new stage in the evolution of the web, and it seemed that it would take more years. However, now we are already on the verge of a completely new concept of the Internet. Evolution of Web3  There are a few details that we need to remember when studying Web3. First, the concept is not new. Jeffrey Zeldman, one of the first developers of Web1 and 2, wrote a blog post about his support for Web3 back in 2006. And conversations on this topic began back in 2001. The Internet is not something stable or an end product. Over the past decades, it has undergone several stages of change . For a better understanding of technologies, let's consider the features of each: What is Web1? Web1 was the first iteration of the web. Most of the participants were content consumers, and the creators tended to be developers who created websites containing information submitted primarily in text or graphic format. Web1 lasted from about 1991 to 2004. Web1 consisted of sites serving static content instead of dynamic HTML. Data and content were provided from a static file system rather than a database, and sites didn’t have much interactivity. What is Web2? We can say that most of us have encountered the Internet in its current form of Web2 (or Web 2.0 as it used to be called often). Advances in web technologies such as Javascript, HTML5, and CSS3 have made it possible to create interactive and social web platforms like YouTube, Facebook, or Wikipedia. At this stage, it is not at all necessary to be a developer to participate in the creation process. If you have an idea — or anything at all, — you can project it and share it with the world. But the downside of this broader online engagement is that by creating content, users also provide personal information and data to the companies that control those platforms. This leads to the following issues: Security and Privacy The exploitation and centralization of user data are the basis of the functioning of the Internet, as we know it and use it today. In Web2 applications, you have no control over your data or how it is stored. There are constant data leaks. Moreover, companies often track and store personal user data without their consent. All of this data is then owned and controlled by the companies responsible for these platforms. Censorship Despite the fact that Web2 is the Internet for users, absolute freedom cannot be found here. Centralization is reflected in all areas, be it social networks, search systems, or even operating systems. Each application has its own content permission policy, e.g. the browser will issue "correct" information and ads, or Youtube can declare a ban for an unwanted statement. Monetization of Apps At first, many software companies are not worried about monetization. They focus solely on growing and attracting new users, but ultimately they have to start making a profit. Think about the time when LinkedIn, Youtube, or Instagram were freshly baked: how much have they changed? For many Web2 companies like Google, Facebook, Twitter, and others, more data leads to more personalized ads. This leads to more clicks and ultimately more ad revenue.  All this indicates the imperfection of today's web. Benefits of Web3 The obvious plus of Web3 is decentralization, but this is not the only advantage. For example, all interactions and all data on the network can be tokenized. This allows: marking content so that it is unique. This will allow you to fight numerous copies of the same information, it is easier to find the original source and save time in search of original content; taking advantage of new online earning opportunities. This applies both to receiving fees by authors of articles, videos, etc., and to reward users for watching and reading content only. maintaining privacy on the network. Content creation doesn’t require the provision of personal data. increasing the overall speed of the network. A multisite network makes it possible by sharing the power of its devices with other users. Web3 applications do not exist on the same server but work either on the blockchain or in decentralized networks of many peers — nodes. At the same time, modern blockchains allow you to deploy nodes and manage them for everyone. Such applications are called dapps. As an example, we can name the Theta network — a service for creating, publishing, and exchanging video content. In this network, content is stored in nodes, and users can even share part of the power of their device, receiving native network tokens for this. There is also the IPFS (InterPlanetary File System) project — a decentralized open-source file-sharing network. A network is a peer-to-peer communication protocol, that is, a communication protocol without any central authority (server). Summing up, we can speak about the following advantages of decentralized internet: lack of central apps regulation; accordingly, less censorship and more freedom in user speech; higher fault tolerance, since applications are located in decentralized nodes — they are almost impossible to hack and they do not depend on the operation of one physical server: the ability to monetize its presence on the network, both for application operators and for the users themselves. Blockchain and Web3 As Web3 networks will operate through decentralized protocols, and foundational blocks of blockchain and cryptocurrency technology, we can expect strong convergence and symbiotic relationships between these three technologies and other areas. They will be functionally compatible, easily integrated, automated through smart contracts , and will be used to deliver anything from microtransactions, censored P2P-resistant data storage, as Filecoin suggests, to a complete change in familiar company management and business practices. Who is creating/created Web3? As with previous versions, Web3 is not a single creator product. This is the joint work of people and organizations. In general, you can say this: those who participate in blockchain crypto projects such as Ethereum , EOS , and TRON are recognized as leaders in the field of Web3. One of them, Gavin Wood, is the co-founder and chief technology officer of Ethereum and the creator of Polkadot and Kusama . Dr. Wood developed and directed the Solidity language for writing smart contacts and created the Web3 Foundation, whose main goals are "delivering Web 3.0, a decentralized and fair internet where users control their own data, identity and destiny" and "to nurture cutting-edge applications for decentralized web software protocols". Future of Internet The future of the Internet is clearly planned. It is already happening and we are already dealing with its evolved forms based on blockchain. The concept of a decentralized web is very promising, but it will take time to implement it. And the point is not only in the development of technologies and capacities but in its participants. Yes, more and more people are captivated with the decentralized meta world, but many will need time to get used to greater integration of the Internet into our lives, with it earning complete trust. However, this is obviously inevitable.
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How Big Is the 2022 Crypto Crash? A Historical Perspective

How Big Is the 2022 Crypto Crash? A Historical Perspective

Ruth Kise 6 min read
This year started with a significant decline in the cryptocurrency market, which did intensify because of the geopolitical situation. Since the fall of 2021, crypto has been passing through the bear market and this trend continues to this day. And over the past one and a half to two months the main cryptocurrency has collapsed in price by almost 60%. Are Crypto Market Crashes Really Bitcoin Crashes? The correlation between cryptocurrencies has always existed to various extent. Altcoins depend upon Bitcoin because of the formation of primary demand for digital currency around it. Almost half of all coin investments are in BTC . Large investment portfolios include Bitcoin as a core asset. All large exchanges hold the bulk of liquidity in Bitcoin, as the largest volumes of transactions occur in trading pairs with BTC. Although the dominance index has shown steady growth in altcoins investment since 2017, Bitcoin still holds 40% of the entire market. The closest competitor, Ethereum , is 2 times behind it. Thus, when Bitcoin collapsed from $48.2 thousand to $28.9 thousand, it dragged down all the altсoins. Ether is down 52% since January 2022 and now costs $1,800, Solana is down 74% to $45.87, Cardano is down over 64% and costs $0.4909. If you're a newbie, then you might feel like it's a complete collapse of cryptocurrency. And seemingly with a good reason, because such a sharp and long drop in prices was a long time ago. However, the market has already faced crashes more than once. So we will look at the most important cases of bitcoin drops: The Largest Bitcoin Drops to Date It should be mentioned that any drop in prices is associated with their growth, and vice versa: a kind of swing that leaves no investor indifferent. 1: The Rollercoaster of 2011 The very first shock caused an unexpected rise of Bitcoin from $1 to $30 in early 2011. However, this wave of growth was followed by a staggering drop in the asset price in June 2011. During the period from June 8 to 11, the price of BTC fell by almost 50%, reaching $14.65. Such a sharp jump is explained by the sudden increase in the hashrate to unprecedented values. Also, mentions in some mainstream media played their role. On June 19, 2011, the Mt.Gox exchange was hacked , bringing down the price of Bitcoin to $0.01. It affected the accounts of 60 thousand users totaling more than $8.7 million. One week later, trade on Mt.Gox recovered, and the fall in prices after the hack became the largest in the history of Bitcoin. 2: The New Heights of 2013 The next shattering experience awaited investors for two whole years. In 2013, the volatility of major cryptocurrencies set new records. BTC set a new historical high of $1,147. Against the background of general euphoria among crypto investors, the coin did not stay above $1000 for long — very soon a bear trend began, during which the BTC fell to $694. The next time the cryptocurrency was able to overcome resistance again at the level of a thousand dollars only in January 2017. 3: The Final Misadventure for Mt. Gox In February 2014, the Mt.Gox site was hacked again, this time 744 thousand bitcoins were stolen . It is an absolute record and the biggest hack in the trade to date. As a result of the hack, Mt.Gox filed for bankruptcy and closed, creating panic in the bitcoin market. From that time on, the first prolonged fall of Bitcoin began, which is commonly known as the "cryptocurrency winter." 4: The Time When Even Your Grandma Learned About Crypto The end of 2017 is remembered for euphoria due to the achievement of a new peak in the price of Bitcoin. True, in the same month, the value of the main digital asset began to fall rapidly — a week after the formation of the historical maximum on the line of $20.000, BTC dropped to $13.000. 5: The Comedown of 2018 The fall continued into 2018 and marked a new crypto winter. In January, the coin fell to $9,800. The lack of centralized regulation left the question of safety open. In the first nine months of 2018, $927 million worth of cryptocurrencies was stolen from platforms of different countries, according to a CipherTrace report. Also at the beginning of the year, phishing mobile applications of larger exchanges were distributed, which stole customer data.  Great interest in cryptocurrency and the ICO market has led to the emergence of many scam projects. It all ended with the biggest social networks — Facebook, Instagram, Google, Twitter, Snapchat, Baidu, Weibo — rolling out a ban on any ICO ad, no doubt a blow across the industry. So on the 14th of November, BTC cost $6,359, and already on November 25, the rate was $3,729. 6: The Great Expectations (vs Reality) Another memorable crypto drop took place in late 2019. The main topic in the community was legal issues, the struggle of the US Securities and Exchange Commission (SEC) with bitcoin-ETF, and hopes for the launch of the institutional bitcoin service Bakkt.  In September, Bakkt finally launched but did not attract much attention among institutional investors, triggering a drop from $10,036 to $6,657 in just a couple of months. To Sum Up High inflation in the US stock market and general global economic instability were naturally reflected in a decrease in risk interest among investors. In addition to the situational panic against the background of the fall of UST , the tightening of the monetary policy of the FRS and the end of the "bull" trend in the technology sector, which includes cryptocurrencies — the main current reasons for the fall of the market. The current market crash is not the largest in history, although due to large capitalization, absolute numbers are really large. The price of Bitcoin has been able to increase by several hundred to 60 thousand dollars, so you should not worry about short-term calendar cancellations.  On the other hand, there are some coins that have less correlation to BTC and it could be a fine new trend. For example, BNB  with a well-built all-in-one ecosystem and Launchpad. BNB began to actively master one of the largest markets — the American one. As a result, the position of the currency will only strengthen, which makes it extremely promising for investment.  Clearly, the cryptocurrency will deal with all fluctuations — both minor changes during the day and severe monthly collapses.
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(Arguably) Top 5 Crypto Exchanges

(Arguably) Top 5 Crypto Exchanges

Ruth Kise 6 min read
No matter what, the cryptocurrency market doesn't lose its interest and draws plenty of customers, and investors increase their assets. If you are ready so far to operate with your digital currency , the next step is to open an account with a cryptocurrency exchange. To help you choose the right account for your needs, SwapSpace selected the best 5 crypto exchanges available today. Binance The world’s largest cryptocurrency exchange offers an extensive array of digital assets and trading pairs and also has lower fees than other exchanges. With Binance, you can do trading, withdrawals, and deposits without passing KYC and can do up to 0.006 BTC withdrawals every day. However, users who transact large volumes of BTC will need to complete the KYC procedures so that they can transact on the platform. Plus, US users would need to use Binance.US, and passing KYC for them is compulsory. The exchange also renders access to derivatives trading, lending, mining pools, Margin, and Future trading, and branded crypto debit cards. Trading Fees Spot: 0.1000% – 0.1000% / Futures : 0.0200%/0.0400% + Discounts Payment methods Bank transfers, credit cards, or crypto deposits Withdrawal Limits Without KYC: 0.06 BTC / With KYC: 100 BTC / 24 hours Supports Android and iOS Coinbase Probably the most beginner-friendly platform with the same mobile app. It comes with an easy-use interface, a massive variety of altcoin choices, and very high liquidity. The crypto exchange also seems to be highly secure. They insure the digital funds and store US dollar balances in Federal Deposit Insurance Corporation and have no scam mentions. What’s more, the platform features its users' insured custodial wallet for storing cryptocurrency, which is also very easy to use for newbies. But the convenience costs its money - the transaction fees are high. And remember, that you don’t control the private keys , the platform owns it. On the other hand, there is a Pro version with a non-custodial wallet, lower fees, and more options in charts and indicators. Trading Fees 2% Payment methods Bank account, USD wallet, debit/credit card, ACH transfer, Wire transfer, and crypto conversion Customer Service Coinbase help page, emailed support tickets, an automated phone system, and a chatbot. Supports Android and iOS KuCoin This platform is another partial KYC exchange that is said to be one of the best alternatives for Binance as it provides a bigger range of altcoins at relatively lower fees than others. For users who pay with native KCS stablecoin , trading fees are decreased by 20%.  Speaking about cons, trading relies on US dollar stable coins, not fiat currency. Trading Fees Spot: 0.1% – 0.1% / Futures: 0.02% – 0.06% + Discounts Withdrawal Limits Without KYC: 5 BTC / With KYC: 100 BTC / 24 hours Payment methods Bank account, USD wallet, debit/credit card, ACH transfer, Wire transfer, and crypto conversion Daily trade volume $100 million Supports Android and iOS Interlude: Why do I need an exchanger aggregator? To make the right choice of an exchange platform, it’s clear you should study all directions from the position of the rate, reserve, number of payment methods, etc. For all these purposes, there are exchange aggregators, such as SwapSpace . Using it, you can see top crypto exchanges all at once, quickly analyze the situation and choose the best option from the entire available list.  The algorithm of actions in all cases is identical. the choice of the direction of exchange, review effective offers from exchange rate position, reserve, conversion type, etc., platform Feedback Control, etc. So there are two best swap cryptocurrency services. Changelly Changelly is a centralized altcoin swapping service that does not require its users to complete the KYC. Exposing the idea of privacy for its users, the exchange doesn’t even verify your submitted email address. The most anonymous platform allows instant transfers from one crypto wallet to another across various cryptocurrencies. As it said on its landing page, its main positive features are the fast speed of purchasing experience and high-level security. Trading Fees 0.5% Payment Wire transfer, credit card, PayPal Supports Android and iOS SimpleSwap We pick another swapping platform that allows instant transactions through exchanges. Without charging KYC verification, they typically deposit the funds within a few moments. The company has also launched a light crypto wallet that also supports a wide variety of crypto assets. The instant swap exchange is also easy-to-use for newcomers and has a 24/7 live chat feature, through which users’ issues can be resolved quickly, which is confirmed by a great number of positive user feedback. Trading Fees Floating Rate : 1.00% Fixed Rate : 5.26% Payment Credit card Supports Android and iOS Conclusion It is essential to choose the best crypto exchange according to your specific needs. So if low fees are important to you, Binance may be a good choice. Coinbase can be the best new user-friendly crypto app. KuCoin will become perfect if you want to trade some uncommon coins. When you are looking for extra privacy, swap services such as Changelly is the best exchange, while SimpleSwap could be perfect with its outstanding customer service. When combing through a list of leading platforms, it’s important to look at factors such as supported assets, fees, payment methods, and security. But right before opening an account, it is highly recommended to check their terms and policy documents.
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The Most Interesting NFT Examples: May 2022 Edition

The Most Interesting NFT Examples: May 2022 Edition

Ruth Kise 4 min read
NFT collections are digital objects created according to a single principle. These can be art, virtual land plots, music, and in general everything that can be stored in digital format. We have collected five (actually more) NFT collections of digital art that make up the top among the number of buyers on OpenSea and Looksrare NFT marketplaces. In the article, you will find out about what is in these collections, who their creators are, and how much the lots cost. Prices are relevant in mid-May, 2022. 1. Otherdeed for Otherside Otherdeed is the key to claiming land in Otherside — a 3D metaverse in the spirit of Dungeons and Dragons, that appears to offer a gaming format for Bored Ape or Mutants NFT holders. Each plot of land has a unique blend of environment and sediment — some with resources, some home to powerful artifacts. And on a very few, a Koda roams. As it’s claimed on the platform, there will be 200,000 Otherdeeds in total. The first 100,000 were available on April 30, 2022. The second 100,000 will be exclusively awarded to Voyagers who hold Otherdeeds and contribute to the development of Otherside. For those with Bored Apes or Mutants, Otherdeeds await their claim. For other adventures, it will be available for sale with ApeCoin . Creator: Yuga Labs Items: 97.9 K Owners: 34.4 K Floor price: 2.78 ETH Volume traded: 255.1 K 2. Azuki / BEANZ official Azuki starts with a collection of 10,000 avatars that give you membership access to The Garden —  a corner of the internet where digital and physical worlds are blurred. Artists, builders, and web3 enthusiasts are creating this metaverse brand. By choosing one of the avatars, you choose your identity and get access to exclusive streetwear collabs, additional NFT drops, eventual live events, and much more.  Creator: TeamAzuki Items: 10.1 K Owners: 5.2 K Floor price: 8.66 ETH Volume traded: 231.1 K BEANZ (also created by TeamAzuki) are small species that sprout from the dirt in the Garden. Minted as a great friend to an Azuki, they're earnestly driven by the desire to help. However, peas are self-contained to a full degree and ready to pave their own path... Creator: TeamAzuki Items: 20.0 K Owners: 7.5 K Floor price: 1.05 ETH Volume traded: 57.5 K 3. PXN: Ghost Division One of these NFTs would be your login to the new dark side world, where every holder is a ghost. 100 Ghosts comprise one of 100 Regiments under the Phantom’s charge. All members are called to stand side by side to make a revolution and resist the shadow.   The collection of PXN (the underbelly of web3) counts 10,000 avatars and gives access to exclusive clubrooms for onboard NFT communities, and unique ways to interact with the community in web3. Creator: PhantomNetwork Items: 10.0 K Owners: 6.3 K Floor price: 3.59 ETH Volume traded: 25.5 K 4. Bored Ape Yacht Club/ Mutant Ape Yacht Club One of the most famous NFT collections of 10,000 unique Bored Apes— unique digital collectibles living on the Otherside, Ethereum blockchain. Your Bored Ape doubles as your Yacht Club membership card and grants access to members-only benefits, the first of which is the access to THE BATHROOM, a collaborative graffiti board. Future areas and perks can be unlocked by the community through roadmap activation. Creator: BoredApeYachtClub Items: 10.0 K Owners: 6.3 K Floor price: 92 ETH Volume traded: 565.5 K The MUTANT APE YACHT CLUB is a collection of up to 20,000 Mutant Apes that can only be created by exposing an existing Bored Ape to a vial of MUTANT SERUM or by minting a Mutant Ape in the public sale. Creator: MutantApeYachtClub Items: 19.1 K Owners: 12.4 K Floor price: 19 ETH Volume traded: 395.3 K 5. Doodles Doodles are a collection of exciting hand-drawn designs by Burnt Toast. The Doodles universe is ever-expanding and new experiences like Space Doodles are only now available to collectors. Each Doodle allows its owner to vote for experiences and map activations paid for by the Doodles Community Treasury — Doodlebank with $5 million USD . Creator: Doodles_LLC Items: 10.0 K Owners: 5.0 K Floor price: 14.5 ETH Volume traded: 127.2 K Of course, these are not all popular collections. Today there are many interesting offers of NFT tokens of very different formats, whether it's art objects, music, clothes, lands, or the opportunity to book a table in a secluded restaurant. Despite all the ups and downs, the great idea of being a member of Metaverse and the ability to convert literally everything to NFT continues to arouse audience interest and increase market demand. Choose what you like, join like-minded communities, or be the first in the worldwide implementation of the Metaverse.
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What Is a DAO And How Does It Work?

What Is a DAO And How Does It Work?

Ruth Kise 12 min read
Until recently, the concept of blockchain was only known in the context of cryptocurrencies, but today this technology is actively used in business. What's more, the new acronym DAO is entering the mainstream. So the "untraditional" business model appears along with JSC and attracts the attention of business enthusiasts more and more. DAO Definition and Key Features DAO (decentralized autonomous organization) is a company that is based on blockchain technology, managed using smart contacts. It does not have owners in the traditional sense, as well as controlling and governing bodies like the board of directors. In other words, decentralized autonomous organizations lack a hierarchical structure, and all participants in the ecosystem have the same rights and can vote for changes in the protocol on an equal basis with other participants. Main features of DAO: In contrast to JSC, the «command and control» structure in formal union of groups of people is not applicable in this case. There are no executive boards and the company is managed by the community by voting on any relevant matter relating to the activities of the organization; Instead of traditional hiring, a person receives a smart contract based on the project. After that, the members of the community discuss the offer and vote. After its adoption, the work of the executive begins directly; Quitting is also becoming a consensual issue. So, if a person does not cope with the tasks set for him, token owners who voted to hire him can withdraw their votes, leaving the employee "overboard." Thus, possible conflicts are excluded in the DAO due to lobbying for the interests of certain persons; Agility and flexibility to innovate. This is due to the fact that companies are organized not around people, but around values​ and smart contracts . In a peer-to-peer system, much faster. In a "flat" organization, the community can rally faster and "fund" the best and most promising idea. As noted above, decisions are made by vote; Absence of meetings and colleagues in the traditional sense. DAO organizational policy Note that DAO is also characterized by the presence of internal company policies, but it has a number of differences. In classic business, in particular, management determines the actions of the entire organization. In the case of DAO, the value is the main factor on which all efforts will be focused. Therefore, every community member, who decides the future of the compound protocol, is motivated to bring the maximum benefit without looking back at the leader’s wishes. Since the DAO model does not involve a centralized hierarchy, it relies on alternative approaches, such as token-based memberships. Typically, such governance tokens can be freely purchased and filed on decentralized exchanges , or earned by providing liquidity or computing power for mining or staking. In any case, by holding governance tokens, you become a kind of shareholder and gain access to voting, which determines the organization's development strategy. Managing the DAO: What Are Governance Tokens? Governance token — a token that allows its owner to take part in the management of an organization. Thanks to governance tokens, users can propose, discuss and make changes to the project, and they do not need to rely on the project team or require its participation. "DAO is an organization that can operate on its own, using code, without anyone's responsibility for decision-making," explains blockchain enthusiast Travis Miller. "Imagine a corporation without a CEO." In addition, participants can use tokens to delegate voting rights to other users and monitor the distribution of funds allocated to support the project. DAO in Crypto: Examples The first thing you should note is that the meaning of the DAO economy is to attract users to actively manage and develop the ecosystem of a particular platform. As a rule, users who participate in voting can receive a reward. Thanks to Ethereum , the built on smart contracts infrastructure of DAO has appeared in the crypto industry. There are few examples of DAO including Maker, Compound, Forth ( Ampleforth ). DAO Maker DAO Maker — is a decentralized platform based on Ethereum. It was the first who made it possible to create DAI stablecoins , and various other cryptocurrency assets are accepted as collateral. One of the main features of the DAO Maker platform is that the DAI stablecoin is always equal to US $ 1 per 1 DAI unit.  Since this is DAO on the platform uses governance tokens — MKR , a million of which were distributed between the first users of the platform. In the DAO Maker ecosystem, MKR tokens are used as the "fuel" of the entire system, just as gas is used in Ethereum. As soon as the commission is paid, the received MKR tokens are destroyed (burned). New MKR tokens are released as needed, so the system is constantly in a certain balance. Compound Another of the largest credit protocols in the DeFi. In addition to interest on issued loans secured by cryptocurrency, it charges creditors COMP tokens to motivate the community to issue more crypto loans. COMP tokens allow their owners to make decisions about changes to the Compound protocol. When the user enters tokens into the Compound pool, in return he receives cTokens. These cTokens represent the depositor's share of the pool and can be used at any time to redeem the underlying cryptocurrency originally deposited in the pool. For example, when deposited in an ETH pool, in return you will receive a cETH. Over time, the exchange rate of cTokens of the underlying asset increases, which means that you can exchange them for a larger amount of the underlying asset than you originally invested — this is how the interest distribution occurs. Ampleforth This is an Ethereum-based cryptocurrency with an algorithmically regulated number of tokens in the circulating offering. It is intended for use as the base currency of the new decentralized economy and is an asset that is not subject to demand inflation and remains independent of the price movement of other cryptocurrencies, in particular bitcoin ( BTC ). Besides AMPL the platform has governance tokens FORTH . Ampleforth has a 6-step protocol change process. When the proposal successfully passes the first five stages, the FORTH holders vote for the proposed change. If a majority is reached during voting, then the change is automatically made to the protocol. DAO Pros and Cons Pros: There is no hierarchical ladder, so a separate group or control center cannot make decisions that ignore the interests of the rest of the participants. Decentralized management system. With this approach, the actual power passes into the hands of only those persons who are really interested in this and are ready to develop the project. All rules, requirements and conditions for working with the DAO platform are known in advance and can only be changed with the approval of most owners of control tokens. As a result, only really useful offers "pass." All transaction records are publicly available, eliminating asset fraud. Cons: Slow response to threats. If something atypical happens, you need to vote among all governance token holders to solve the problem. At the same time, the decision must first be prepared by someone, which also requires certain costs. As a result, the reaction is very slow, which threatens potential problems. The development also requires a vote. Moreover, you need not only to offer a further way of development, but also to find an executor who will be ready to do the work. It slows down the development of the DAO platform. Despite the high potential of blockchain in managing systems, it hides many risks associated with protocol security. And history knows the hard chapter with the first DAO case in 2016, when the platform was hacked . But it connected with the organization of decentralized and open platforms. Anyway DAO attracts a lot of enthusiasts from different business areas, and has been already realized in such spheres as art, culture, gaming, automatizing and so on.
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The State of Play-to-Earn Crypto Games in 2022: Metaverse NFT’s

The State of Play-to-Earn Crypto Games in 2022: Metaverse NFT’s

Ruth Kise 6 min read
The concept of the virtual world is hardly new. Online and offline games with their infinite worlds are its dramatic confirmation. However, the metaverse is bursting in popularity today. Why? Blockchain mainstreaming and... cryptocurrency! The idea of ​a virtual world existence cannot be without the presence of virtual currency in it. Because, as in reality, any participant wants to have value, identity, and so on. This means, there is the popularity of the NFTs . NFT — non-fungible tokens , they can represent ownership of practically anything, video, art, sports, virtual real estate, and even gaming. They cannot be exchanged from one to the other. Hence, each is unique and accrues value independently. By the way, Mark Zuckerberg took up metaverse realization and renamed Facebook to Meta . The company is working on merging digital and physical worlds within a single platform, an ecosystem of blockchain, and has already created VR glasses, for example, for a virtual meeting with friends or colleagues. Your avatar, which will be present there, can be created and owned as NFT. While we are at an early stage in the generalized metaverse development, local virtual worlds are gaining traction — crypto games. They are a blockchain, decentralized, open-source platform with smart contract functionality, whose task is to transform the gaming experience of users by giving players true ownership of their in-game items through the use of NFT. Their gamers can claim, buy, sell, and trade all assets as NFTs and, thereby – earn.  There are different options on which blockchain crypto game is the best, but judging by their rates in 2021 and 2022, there are 3 at the moment. Let's overview these top ones: All are based on the Ethereum blockchain and are partnering with Polygon (fitting Ethereum second-level blockchain) to solve issues around scalability, speed, and transaction costs. All have similar opportunities and exciting worlds that you can create. And if you're going to dive in, you should get any Ethereum compatible wallet to store all your crypto. Still, there are some gaps between these three. Decentraland   • Runs on PC and Mac. There is no mobile version yet, but it’s in progress. • Crypto: MANA ($2.15), LAND. • You can convert your MANA assets from the Ethereum blockchain to Polygon’s Matic Network. • Plenty of games to enjoy. Some need you to pay according to the creator’s design, but lots are free of charge. • The navigation is as usable as it could be. Just move your avatar around a terrain of adjoining games to see your experiences. Sandbox • Runs on PC and Mac, Android and iOS. OS support coming soon. • Crypto: SAND ($2.81). • SAND can be staked on Polygon. • All games are user-created, and anyone can make them for free. Also, you can create assets as NFTs and sell them to other users. If you want to build metaverse experiences, you need to buy the limited LAND resource.   • Both free and paid games where you can earn SAND and use it to enter paid experiences. GALA Games • Runs on PC and Mac. The mobile version isn’t even planned. • Crypto: GALA ($0.2021). • Main position — "Fun first". There are 5 simple to play games in various stages of development, and no need for Blockchain pro to enjoy them. • Free-to-play games with play-to-earn mechanics allow you to unlock real rewards and start making money. Looking at the market cap growth of cryptocurrency of these play-to-earn games is hard to imagine something that could bring down an investment interest in the crypto-economic sector.  Taking on the psychological human desire to escape from external reality, to have fun, and find a better world, where you are a creator, not a ponce, it is difficult to refuse the opportunity to be in a metaverse. And if in addition to creating and entertaining, you can earn money – it is a win-win long-lasting ecosystem.
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How to Buy And Trade Crypto (And Why)

How to Buy And Trade Crypto (And Why)

Ruth Kise 15 min read
The world’s recent events are causing more and more people to think about the safety of their savings. More and more of them choose to invest in cryptocurrency. Here, for example, your wallet belongs to you only, and no one can freeze your assets; on the other hand , the responsibility of the safety and all operations rests only with you. Therefore, you should first understand the following points. What You Need to Know Before Going into Crypto Getting acquainted with the world of cryptocurrencies is better to start with a choice of strategy. Investing or trading are the main ones. The first implies the acquisition of an asset and long storage. The second is short-term speculation. A trader makes many transactions with digital assets, trying to benefit in a short period. Strategy 1: Investments There are a few types of investments in crypto: Buy and hodl You can buy Bitcoin , Ether, or any other coin for fiat and wait for its rate to increase. If handled properly, such an investment will bring a big profit after a certain time. However, no one canceled the negative scenario for cryptocurrencies, and their value can fall sharply, up to a complete depreciation. Besides, such an investment method means investing not even for months, but for several years or more. Put in a trust This way, you invest in a trader who makes transactions on a cryptocurrency exchange and receives your interest. But still, there is a high risk of loss of invested funds because no trader is secure from damages. ICO You can invest in a cryptocurrency company and become its “stockholder”. The disadvantage of this method of crypto investing is the choice of a valid company as well. Strategy 2: Exchange Trading Trading cryptocurrency is an extremely risky craft. The price of altcoins is volatile, on a day it can fluctuate by 10–20%, sometimes by 50% or more. For this reason, it is better to try trading cryptocurrency from a training account first. The largest cryptocurrency exchanges, such as Binance, Coinbase, Huobi, OKEx, and others, allow users to open demo accounts for transactions without making a deposit. This will allow you to get acquainted with the market and the structure of the trading platform, and practice. Then you can deposit a small amount on the exchange. This will help the user understand his psychology: is he able to suffer losses and not make panic, erroneous transactions, control himself and decide with a cold head. In addition, it is necessary to study the theory, listen to lectures on this topic, take courses, and get acquainted with technical and fundamental analysis. All this will help not only to see in the charts the ups and downs of assets but also to predict them. Other Considerations: Fees Transaction fees are an integral part of most blockchain systems. They perform two important functions. They reward miners or validators, who help confirm transactions, and protect the network from spam attacks. Depending on the activity of the network, the transaction fee can be small or high. Its size is also derived from market conditions. Getting Ready to Take Part in the Crypto Market When you are ready with the strategy, ‌choose the best altcoins to buy. Today there are 2290 coins. Some of them are junk, but some can be very advanced. To make the right decision first you must make an analysis of it validity. It is best to start with Coinmarketcap – there is a rating of all cryptocurrencies by capitalization and a lot of useful information. No matter how reliable the crypto is, you can't trust it with 100% of the investment. It is better to distribute money to several tools, so you can reduce the risks of loss. For long-term investments, experts often say that you should choose cryptocurrencies that are in the top 30 at least. They are more stable, traded on many exchanges, and the probability of a sudden scam is minimal. Less popular coins also can be considered for investment. But it is worth understanding that, besides the risks of the fall in rate, there is also a risk of the slip-off. Follow all social media and forums, and monitor its activity: the more useful news on the topic, the better. If you see the developers do nothing, there is no news, then this means that they have lost interest in their project. It's better not to buy such a coin. It is also important to know if there is activity from investors. Also, some coins can operate only on one blockchain, and some you can use on different. So if you are going to trade your funds, ‌keep it in mind and learn about the cross-chain process.   Storing Crypto When you are ready to buy crypto , you must choose the type of its storage. Cryptocurrency wallet – an app, program, or separate device for sending, receiving, or storing electronic money. They are also can be “hot” and “cold”. A hot wallet connects to the internet and could be vulnerable to online attacks, but it’s faster and makes it easier to trade or spend crypto. A cold wallet typically has no online connection, so while it may be more secure, it’s less convenient. Below there are five types, with a brief description of their advantages and disadvantages: Software Wallet (Bitcoin Core, Exodus). These wallets store crypto funds right on your computer. And you usually need quite a lot of space for this. For example, for a minimum installation of Bitcoin Core, you need at least 145 GB on your hard drive - and this is for only one currency; Online Wallet (Blockchain, Wirex). These wallets keep your coins in the cloud. You can use them from any device, even from your phone. But you need to choose the wallet carefully. If someone hacks it, you will lose all. Hardware/ Cold Wallet (Trezor, Ledger). These wallets are separate devices, so they are much more difficult to hack than a regular computer. But you need to carry them constantly, as well as remember the PIN. Mobile Application (MyCelium, Breadwallet). An IOS or Android app that allows you to manage your tools. Convenient, easy, and fast storage, but with low security. In addition, if your phone was lost, the finder will get full access to the wallet. Paper Wallet (WalletGenerator.net, MyEtherWallet.com).  A special site generates private and public keys , that can you can print or record. Also, remember that except for a sheet of paper on which the keys are recorded — they are nowhere else, so the loss is equivalent to the loss of all the money. For investment, cold wallets are better. Thus, you can keep cryptocurrency on a computer or flash drive. Plus — security, no one can steal funds without direct access to it. For trading, the exchanges are the best. Using it, the client can sell or buy crypto and use additional options. Crypto Exchanges When choosing a cryptocurrency exchange, a novice investor needs to focus on some indicators. Such as: Financial turnover of the crypto platform. Large financial turnover shows enough money in the closures of the exchange, meaning that many traders use such a platform. So, such an exchange is high quality and the trader will not have any problems with it. The reputation of crypto exchange. Fees, which are not the same everywhere. For residents of different countries, crypto exchanges can also set geographical limits. The number of trading pairs on the cryptocurrency platform and their market rate. Payment options: find out how and how quickly you can transfer money to a crypto exchange account, and then withdraw it to your account or card. All cryptocurrency exchanges are divided into: Centralized Cryptocurrency Exchanges ( CEX ): Coinbase, Gemini, Kraken Platforms, where users can trade cryptos and ordinary fiat. They coordinate cryptocurrency, trading on a large scale, using a similar business model to traditional stock exchanges. Centralized exchanges usually offer their customers support, various trading pairs, and gateways for receiving and withdrawing, as well as additional services, for example, stealing , storage capabilities, IEO or DeFi services. Decentralized Cryptocurrency Platforms (DEX): WavesDex, Bancor, Besk, Uniswap Unlike traditional CEX, on such platforms, transactions and trades are automated by using smart contracts and decentralized applications. This type of crypto exchange is much safer since a well-written smart contract will not allow hackers to hack it. There are also aggregators like SwapSpace, where you can look at several offers and choose the crypto exchange that suits you best.  Swapping Crypto If your end goal is not just to put the purchased crypto in a stash, then you can exchange it for another coin. Swapping is a similar process to trading but with more flexibility. You can exchange any cryptocurrency for another even if the pair is not live on-the-spot market. This eliminates paying transaction fees more than once. In most cases, if you’re only swapping a small amount, convenience is the bigger concern here. That said, crypto swapping applies to any level of volume. Buying Crypto with a Credit Card The fastest way to buy crypto is to use a credit card. The process for buying crypto with a credit card is fairly straightforward: Find an exchange that allows credit card transactions. Your first step is signing up for a crypto exchange that allows you to use a credit card. And be ready to pass the KYC . Double-check that your card issuer allows crypto purchases. Enter your payment method. Set up your transaction. Pay off your balance as soon as possible. Pros and Cons of Buying Crypto With a Credit Card Pros Investing without cash on hand. Potentially earning rewards on your investment. Cons Purchases are often treated like cash advances. Higher fees. Your credit score could take a hit. Even more risk. Bottom Line Digital asset trading needs to be taken seriously, calculated every step, and thought about possible negative consequences. The beginner should first decide whether to invest or trade. Then study the theory, take some courses, and practice with test mode. Then choose the cryptocurrency to buy and be ready to lose. There is no game of luck. Don’t neglect crypto education. Crypto trading is hard work. It may take years to understand how the price of assets behaves in a particular situation. Don’t trust anyone and don’t hurry – do your own research before deciding. Choose the proven platforms for transactions and do not fall for fraudsters' ploys.
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