Crypto Academy

What is Tezos

Tezos

4 min reading

Interested in Tezos? Discover its creation history and how it operates in the crypto-currency market.

Whats tezos

What is Tezos

Tezos is a multifunctional decentralized blockchain platform for hosting smart contracts, applications, and creating tokens. Its cryptocurrency is Tez, or Tezzie (XTZ). This currency is not subject to mining, so users who have a certain amount of Tezzie are rewarded in the form of tokens when participating in the proof–of–stake (PoS) consensus. Block producers are called “bakers”, and the process of baking is called block validation. Bakers perform the same function as miners they protect and manage the network, verify and validate transactions, and distribute block rewards. But instead of expensive mining equipment, everything operates with the help of the Proof of Stake (PoS) consensus.

History of Tezos

Tezos (XTZ) appeared on the crypto market in July 2017 and managed to raise 230 million dollars. The owners of this currency are Arthur and Kathleen Breitman. 

Preparations for the crypto network launch began in 2011. But the full development team was able to assemble only 3 years later. After that, the work on the project became progressive, a technical basis was created, legal documentation and a WhitePaper were prepared. As a result, Tezos achieved huge success in the market.

How does Tezos work?

On the basis of Tezos, the goal is to expand the functionality of Bitcoin with the help of smart contracts. The Tezos team focuses specifically on creating a blockchain that facilitates adaptation and changing through community consensus with minimal disruption to the network. Tezos runs on an algorithm Proof of Stake (PoS). Technically, the network uses one of the PoS variants, which is called Delegated Proof of Stake (DPoS). The Tezos architecture allows users to update the network without performing hard forks. 

The system is divided into three modules: Consensus module; Transaction module; Network module.

Importance of Tezos 


Firstly, Tezos has several distinctive features that differ it from other platforms that also use smart contracts in their blockchain space. Secondly, The Tezos protocol supports the ability to update the network without splitting it into two different blockchains. In this context, we can recall the Bitcoin hard fork, which resulted in the Bitcoin Cash cryptocurrency. Finally, it facilitates Tezos to adapt to the ever-changing regulatory and technological environment. The Tezos protocol provides for the possibility of making amendments and continuing to work in such cases without problems.

Advantages and disadvantages of Tezos

First of all, we cannot help but mention the fact that the Tezos blockchain is self-regulating, which provides a high level of security. There are also no hard forks in the Tezos system.  According to the disadvantages, there is low network bandwidth in the Tezos platform. Among other disadvantages, we can also mention that the possibility of inflation is quite high as there is an unlimited issue of tokens. Also, many well-known personalities, such as Vlad Zamfir, Vitalik Buterin, Hasib Qureshi, and Dean Eigenmann wrote review articles about the project, some of them criticized the startup. It is said that someone agrees that the concept of the project is pretty questionable. According to the white paper of XTZ, its governance system can give every Tezos user a voice, but the centralization of wealth and user apathy can cause the system to become inefficient in the same places as Bitcoin, Ethereum, and EOS. In addition, no management system can meet the needs of all users. In this case, the only decision is made, and there is a high possibility of a fork due to dissatisfied users.

However, with its unique approach to the process of updating and collecting votes, the platform can be more flexible than some competitors. It’s potentially proving to be a big advantage in the long run. Tezos has come a long way before launching and gives us hope that XTZ will become useful for both government and common users. 

Conclusions

What is Stellar?

Stellar

3 min reading

The world of cryptocurrency is growing and developing! In this article, we will look at another cryptocurrency such as Stellar.

What's Stellar

What is Stellar?

Today is Bitcoin, tomorrow Ethereum and the next minute another cryptocurrency. Yes, all of these have one aim, which is to perfect the aspect of the decentralized nature of these cryptocurrencies. However, as time goes by, and as the world is evolving, new currencies are bound to surface. Have you heard about the Stellar crypto-currency? Well, in this article you’ll find out all the main information about it. 

Stellar is a digital currency developed by the Stellar Development Foundation. Thanks to the success of Bitcoin, one of the first crypto-currencies launched since 2009. As we mentioned earlier, it’s a digital currency similar to Ripple. Both crypto-currencies were created by Jed McCaleb, but there are significant differences in that stellar lumens are meant to help people, not institutions, to make money.

Why was Stellar invented?

Stellar was created to solve the problem of cross-border transactions. Having found that long transactions lead to late execution as well as higher fees, Lumens is looking to simplify and accelerate the experience of retail users around the world. The developers realized that not everyone has easy access to financial services, and even if they did, not everyone could afford the amount demanded by these financial institutions.

For this reason, these developers are dedicated to providing financial systems to people all over the world, provided they have the basic hardware and an active Internet connection. Therefore, Stellar aims to enhance the ability of people in Third world countries to interact in the global economy through near-instant and highly affordable transactions. Stellar also allows direct exchange of fiat currencies during high activity, but only converts the sender’s money to lumens and lumens to the recipient’s currency.

How does Stellar work?

Stellar runs on a network known as the Stellar Consensus Protocol that synchronizes, and reaches the consensus. To ensure network security over a decentralized network, Stellar consensus algorithm is used.

Ripple vs. Stellar

Despite the fact that these technologies were created by one person, it cannot be said that they are all alike. There can be similarities and differences. We will take a look at their similarities and differences.

Similarities

Both Stellar and Ripple make sending and receiving funds fast and affordable. A Critical study of other cryptocurrencies shows that the exchange rates are a little higher making it somewhat difficult for low-scale crypto traders to invest. Secondly, given that the founder of stellar is also a co-founder of Ripple, it can be assumed that the knowledge obtained from the creation of ripple was the same idea and knowledge applied with stellar thus explaining the reason why they have similar encoding. Finally, just like Ripple, Stellar’s objective is to provide free and instant transactions and this makes them ideal for international payments and transfers. Stellar’s transaction currency is Lumen (XLM).

Differences

Stellar and Ripple have different target audiences. While Ripple was created specifically for banks and large markets with great profit potential, Stellar was created to expand financial services to the entire planet. They have different consensus algorithms, with one consensus protocol for Stellar and proof of correctness for Ripple. At the coin level, Lumens coins are inflationary while XRP is deflationary. It is clear that they increase and decrease blood circulation accordingly. Finally, while both cryptocurrencies are more decentralized than traditional currencies, Ripple is more centralized than traditional currencies.

In conclusion, despite their similarities and contrast, the crypto community seems to have adopted both currencies. If you, therefore, desire to invest in cryptocurrency, there are a lot of varieties at your disposal. But it will always be good to try the mother cryptocurrency, Bitcoin while learning about the other cryptocurrencies in the crypto market.

Conclusions

TRON

tron

5 min reading

Let’s improve your knowledge about the crypto world by finding out what the TRON is, its origins, and how it works

what's Tron

What is TRON?

TRON is a decentralized, open-source blockchain platform that uses the TRX token (Tronix). It is designed for entertainment content that users can share without intermediaries. It focuses primarily on online games, virtual casinos, and other interactive applications. TRON also offers tools for creating new custom applications. The platform is also able to support blockchains and smart contracts of other projects. It also allows each user, and each computer to support the network operations, creating a convenient payment system. The Tronix cryptocurrency (TRX) was created in 2017 and is currently the 20th largest in the market.

History of TRON

TRON was founded by Chinese entrepreneur Justin Sun. His activity greatly affects the market and the price of TRX, so he is often called a marketing genius, and the project itself is criticized in the aspect of centralization. Justin Sun began his introduction to cryptocurrency in 2012. 

He founded the platform intending to give people a place where content can be distributed for free. In July 2017, the TRON Foundation was founded in Singapore. From August 31 to September 2 of the same year, the company held an ICO to attract investment. TRON Whitepaper articles were created for this purpose. During the ICO process, the company raised about $70 million.

In December 2017, the source code of the Tron protocol was published. Then on May 31, 2018, the MainNet public network was released. This was the first step of the project towards creating a real decentralized social network. Same year but in October, the company launched a decentralized store for gaming and non-gaming applications. Today, the company continues to develop and test the financial system.

How does TRON work?

To understand how the TRON system works, you need to know what smart contracts, blockchain, tokens, ICO, transactions are. Let’s explain everything in simple words. The entire platform is based on a blockchain – a distributed database with complete duplication of information. It is a continuous sequence of blocks with information. The blocks follow one by one, forming a single branch with single blocks. Each block has a header with a link to both: the previous one and the next one. So, the information in the database is protected from forgery and hacking. The block stores information in the code form — smart contracts. This is an algorithm that allows participants of the TRON network to make automated transactions. The main principle of functioning is similar to transactions in the Bitcoin network but has some distinct features. The token transfer agreement takes effect when both parties sign the contract. Only if there are more than 50% of signatures, the contract comes into force. To implement smart contracts, the following conditions are required:

    • Full mathematical description or Turing completeness;
    • Using EDS methods with public and private keys for encryption;
    • Storing contracts in decentralized, public, and reliable databases, such as blockchain;
    • Reliability of the digital data source using an SSL certificate or other methods;
    • A decentralized smart contract execution network, such as TRON and Ethereum.

ICO is a standard method of implementing smart contracts. During the TRX token ICO, depositors created a smart contract, according to which they sent money or cryptocurrency to the account of this contract, and received Tronix tokens in return. Thus, the Tron issue was partially produced.

Advantages and disadvantages of TRON

During the existence of the project, many crypto-enthusiasts and experts of the online entertainment market have spoken positively about the TRON platform. They say that transactions are carried out quite quickly on this platform and it has a large community. They also noted that the platform has good security, an honest ISO, and an excellent perspective. But since the successful launch of the ISO, the TRON project has also been criticized. Experts have not spoken about the platform in a negative light, but many of them note that it is too early to talk about the prospects. Most users note that the platform is developed rather slowly, has technical unreasonableness, and does not have a special demand for the service. Also, the disadvantage of TRON is that the developers are entitled to too much reward.

However, by market value, this coin has managed to leverage mutual interest and particular technological characteristics to become one of the most prominent cryptocurrencies. The growing portfolio of partnerships has built trust in the platform, and its collaboration with a branch of the Chinese government is likely to bear great results. The aim of this project is to create a platform for storing decentralized user-generated content. For developers, this is a unique proposition, offering enough to suffice.

Conclusions

What is NEO?

NEO

4 min reading

Discover another cryptocurrency! In this article, we will talk about NEO.

Whats NEO

What is NEO?

NEO is an open-source, decentralized blockchain-based application platform created in 2014 by Da Hongfei and Eric Zhang. The vision of the project is to realize a smart economy using blockchain technology, as well as smart contracts for the issuance and management of digital assets. As well as  Ethereum, NEO is powered by a decentralized Byzantine Fault Tolerant Consensus Mechanism (dBFT) and can handle up to 10,000 transactions per second.

The NEO’s core is based on tools that enable developers to effectively launch and manage smart contract applications on the NEO blockchain, taking advantage of the inherent strengths of blockchain technology to achieve an optimized digital future world.

History of NEO

Previously called Antshares, NEO was founded by Da Hong Fei and Eric Zhang in 2014. And an official document about it was published in 2015. This crypto-currency was officially switched from Antshares to NEO in June 2017 with the idea of merging the past and the future. The word “Neo”, however, comes from the ancient Greek word “Veo”, which means “new”, “modern” or “young”.

How does NEO work?

The smart economy consists of digital assets, digital identity, and smart deals (you can also read our other articles on these subjects for a better understanding). When these three elements work together, they form the so-called smart economy. NEO is launched to promote the transfer of traditional assets to digital assets.

These assets will be decentralized and the transfer of these assets will be done with the help of smart contracts. However, it is important to note that a smart contract is activated when certain criteria are met. They are very useful in asset allocation as they eliminate the need for a third party. Thus, using smart contracts, you can create a truly decentralized transaction that does not require any element of trust. There are two tokens, operating on the NEO platform. 

The first is a token that we can actually buy, but it is indivisible. This means that its smallest unit is and always will be 1. The second token is known as the GAS token and is used to pay for transactions on the network, as well as to execute digital apps. Unlike the first token, GAS is split and generated by a proof-of-burn algorithm.

Benefits of NEO

NEO is an important part of the smart economy. The digitization of traditional assets is already making it great. With NEO, you can write code in many languages. Creating a smart contract does not involve learning a new programming language because it is already set up for most programming languages. In addition, you enjoy fast transactions. NEO has the capacity to process over 10,000 transactions in one second. However, despite the attractive nature of NEO, it still cannot match Bitcoin in terms of supply or market capitalization. 

But, most investors agree that it is a very promising cryptocurrency that could grow significantly in value. The NEO platform uses smart contract technology, in that experts see the future of the entire blockchain.

Conclusions

Litecoin

Litecoin

4 min reading

Have you heard about Litecoin? If no, then keep reading to improve your knowledge in crypto.

What's litecoin

What is Litecoin

Are you new to the world of cryptocurrencies and would like to know more about the different crypto-currencies that exist? The most popular crypto is as you may know Bitcoin, it has been the leading crypto asset for years. However, in this article, we won’t focus on BTC but on Litecoin

What is Litecoin?

It’s a decentralized virtual currency that was created two years after bitcoin (2011) by a former Google engineer named Charlie Lee. From the beginning, it was a serious competitor to BTC since it has almost the same characteristics as the latter, but with the creation of other crypto-currencies, its popularity has decreased. Litecoin is a purely virtual online currency, not backed by physical goods or sovereign bonds; instead, it relies on a combination of cryptographic safeguards. It is based on blockchain technology that performs transactions every 2.5 minutes, and in this blockchain, all participants (miners) are equal.

This block is verified by mining software and is visible to all members. Once a block has been successfully verified, the miner receives bonuses for it.  Successful mining of crypto-currencies requires enormous processing power. However, with litecoin, miners are able to mine on their personal computers, with the understanding that the capacity of the computer will determine the value of the miner.

What is Litecoin (LTC) mining?

Litecoin (LTC) mining is the process of checking sent transactions and network performance using special computer equipment, and the process itself is based on the Scrypt algorithm. Nowadays the most effective way of mining Litecoin is using ASIC-miner.  To start mining LTC the following steps should be done. First, you need to download and install Litecoin Core software from the official website, then create your own crypto wallet. Then, download and install a mining program that supports Litecoin mining. The next step is to choose the right equipment and calculate the potential profit through an online calculator. After this, you need to buy the hardware for mining. Finally, decide on a mining pool, join it and set up the equipment. Now you can start mining LTC. Profit in the process of getting Litecoin directly depends on the power of the computer, the installed video card, the experience and knowledge of the user, as well as the time spent on operations.

Similarities and differences between bitcoin and litecoin

Since litecoin is considered the lighter version of bitcoin, this means that there are similarities between these currencies. First of all, bitcoin and litecoin are decentralized currencies and, unlike other traditional currencies, they do not depend on any third party for a transaction to take place. 

They rely on the cryptographic integrity of the network. Litecoin and bitcoin use Proof-of-stake ecosystems. This is a decentralized mechanism that requires members of a network to spend themselves solving an arbitrary mathematical puzzle to prevent anyone from hacking the system or performing a double transaction. With this ecosystem in place, crypto-currencies can process transactions securely without third-party intervention.

Both crypto-currencies can be purchased and mined using a mining platform. They also require the use of a cold and hot wallet in order to be stored safely between transactions. They are also volatile depending on factors ranging from investor interest to government regulations. The differences that exist between these crypto-currencies are in the cryptographic algorithms employed. Bitcoin uses the SHA-256 algorithm while litecoin uses a newer algorithm called script. Furthermore, the main objective of bitcoin was to improve the speed of transactions per trade. Bitcoin’s average transaction confirmation time is 9 minutes, while litecoin is about 2.5 minutes due to its shorter block generation time.

Despite these similarities and differences, bitcoin still has a larger market capitalization than litecoin. The estimated value of all bitcoins in circulation is about $1 trillion, while litecoin is about $18.5 billion. This just proves that no matter how hard other crypto-currencies try to be better than bitcoin, its market capitalization outperforms them all.

Conclusions

What is Chainlink?

Chainlink

4 min reading

There are a lot of cryptocurrencies on the market today. Now we are going to talk about Chainlink.

Whats Chainlink

What is Chainlink?

Chainlink is a decentralized network of nodes supplying data and information for blockchain smart contracts. One of its goals is to increase the number of computer networks for delivering real data to smart contracts running on blockchains. Smart contracts, if you don’t already know, are programs that are stored on the blockchain and run at a predetermined time, subject to the required conditions.

They are especially used to automate and execute an agreement so that everyone involved has immediate confidence in the outcome, and without the involvement of a third party, which saves time. 

Creation of Chainlink
You will be interested to know that the Chainlink network was created by the co-founders of the smart contract development company Steve Ellis and Sergey Nazarov in 2017, who, together with Ari Jules, published a white paper that same year.

How does Chainlink work?

It all starts with the blockchain with smart contracts when it needs data. These smart contracts send information requests, which are then recorded by the Chainlink contract, which then creates the corresponding smart contract. Smart contracts send a request for information. Three sub-contracts are generated from the chain-to-chain service agreement contract: chain reputation, order reconciliation, and aggregation.

How do these different subcontracts work Aggregate contracts collect data from oracles and associate them with the most precise smart contract. Order set contracts are in accordance with a smart contract service level agreement (SLA) with the best oracles. Reputational contracts validate the integrity of Oracle by checking its track records such as the total number of requests executed, the average response time, and the number of LINKs in crypto that Oracle has delivered.

In order to facilitate communication between Chainlink users and external data sources, Chainlink broke down the execution process into three phases: Oracle selection, data exchange, and aggregation of results. How do these steps work? The first step is at the Oracle Selection tier, where Chainlink users create a Service Level Agreement (SLA) that specifies the desired data requirements. The software then uses this data to match users and oracles that can provide the data. Data reporting is a platform where oracles connect to external sources to get the data requested by the SLA. This data is then processed by oracles and sent back to the contracts running on the Chainlink blockchain. The aggregation of the results is the final step, which involves adding the results collected by the oracles and sending them to the aggregation contract.

Chainlink Token
The Chainlink network uses the ERC677 token, which almost exactly adopts functionality from the ERC-20 standard and allows tokens to be transmitted as an initiative to support data turnover. It is also used to pay blockchain data providers. This data is subsequently paid for by the data buyer. Prices for their services are determined both by the data providers themselves and by oracles when they publish offers on the platform.
In addition to directly earning tokens for supplying data, it is also possible to purchase Link on cryptocurrency exchanges. Although Chainlink initially launched only on the Etherium blockchain, oracle services are now available on other blockchains as well. Data buying and selling can be done by independent developers as well as large companies.

In conclusion, LINK is built on Ethereum according to the ERC-20 standard for tokens. In addition, Chainlink allows financial institutions and businesses to use smart contracts through the Chainlink network without having to switch to smart contracts themselves, thereby allowing them to get all the benefits of decentralization, trust, and immutability without the cost of building a new system or network.

Conclusions

What is BitTorrent?

BitTorrent

4 min reading

In this article, we will tell you about BitTorrent and how it works.

What’s BitTorrent

What is BitTorrent?

This is a very interesting part of bitcoin that anyone who deals with BTC would like to know about. By name, the first thing that comes to mind is Utorrent. However, we will tell you what BitTorrent is and how it works. Even if you don’t use BitTorrent, the information we’re going to share will help you to learn the principles of cryptocurrency.

Definition

BitTorrent is not a program, but a method of distributing files using a peer-to-peer file-sharing system. It is widely known as a hacking method, but in reality, it is not, as it is a very useful decentralized peer-to-peer protocol that has significant advantages. One of these important aspects of BitTorrent is that it distributes files to all users who have downloaded or downloaded the file. Once a user has a file to share, they can start sharing without having to wait until the file is fully downloaded before sharing. 

The traditional method of uploading or sharing a file requires the home server to download the file, and then other servers can connect to it and retrieve the file. But with BitTorrent, file transfers are possible without a central server. There are different categories of people in the BitTorrent protocol, namely: Seeders, leeches, trackers, and indexers. Let’s consider each point.

Seeders and cleaners

Seeders are those who download files and share them with others, while leeches are those who download and disable sharing. The risk of a leech is that the tracker can ban you. It is recommended that you allow others to receive the file you uploaded. 

Trackers

A tracker is a server that directs peers, initiates downloads, and keeps statistics. Private trackers are membership-based and public trackers do not require registration. The downside of a public tracker is that you only have access to a limited number of files. An indexer is a community of users with rules binding them. This is the platform you go to if you want to upload, share or request files.

How does BitTorrent work?

That said, how then does BitTorrent work? How can you go about downloading, sharing, or requesting files? First and foremost, and just like every other software, you will need to download and install your desired BitTorrent client, for example, Utorrent. Once you have your torrent file in a well-organized location, double click on the torrent file to load in your client. You will notice a Utorrent dialogue box requesting the option for the specific download. Choose the desired location where the torrent will download into. After that has been done, click OK.You will notice from the main download dialogue box other options like pause, stop, play, etc. You can then choose to navigate and enjoy the program. 

BitTorrent and cryptocurrencies

Let’s talk briefly about BitTorrent and the cryptocurrency TRON, what makes them related. BitTorrent, Inc. – a US private company headquartered in San Francisco, was founded on September 22, 2004, by Bram Cohen and Ashwin Navin. At the peak of its popularity, BitTorrent had an audience of up to 150 million monthly active users. In June 2018, Justin Sun, the billionaire creator of the cryptocurrency TRON, bought the company. The protocol allows for the transfer of any file type. It helped to combine the BitTorrent network and the TRON blockchain, and so the Atlas project and the BTT cryptocurrency were created. The cryptocurrency BTT (BitTorrent Token) first became available for sale on 28 January 2019 on the Binance exchange. In just 15 minutes, 60 billion BitTorrent tokens were sold out. This generated about $7 billion for the team. Now the BitTorrent issue (number of coins in circulation) is 990,000,000,000. BTT can be obtained through an exchange for other currencies, or through an airdrop. An airdrop, planned for six years, is being produced for owners of the cryptocurrency Tron (TRX). To get BTT coins for free, all you need to do is keep any number of TRX tokens. But the more there are, the more BTT you will receive for the airdrop.

In conclusion, BitTorrent is a whole platform that enables you to explore and share information between users. Not all has been done on the program so far given that the BitTorrent team is still improving on the functionality of the product. However, with the information provided in this article, one is tempted to try it out.

Conclusions

What is Bitcoin Cash?

Bitcoin Cash

5 min reading

Are you new to Bitcoin Cash and don't know what currencies exist and how they work? In this article, we will explain what it is and how it works.

What's Bitcoin cash

What is Bitcoin Cash?

As Bitcoin becomes more popular, the time it takes to complete a transaction is increasing. Bitcoin was created by an anonymous person or group of people named Satoshi Nakamoto. Because of the reason that bitcoin miners and developers were worried about the future of cryptocurrency, they launched bitcoin cash. It was created to address the transaction latency problem that Bitcoin has already begun to face.

As we mentioned above, the idea of creating bitcoin cash only came about when some miners and developers noticed the delay in bitcoin transactions. This technology was released in 2017. Like BTC, bitcoin cash is used to send and receive money, with the only difference being that transactions with bitcoin cash are faster than bitcoin.

How does Bitcoin Cash work?

The main reason for creating any product is that a problem has been identified and this product offers a solution to it. Bitcoin Cash was created for a reason, but before we talk about how it works, it’s important to have some understanding of the Bitcoin downturn.

At some point, Bitcoin became relatively slow. The blockchain for a block could only be created once every ten minutes because the block size is limited to 1MB. As the number of users on the network increased, the network became more and more congested. We started to experience problems with scaling.

Bitcoin Cash, on the other hand, operates using a larger block size, significantly larger than BTC, to process transactions faster. Transactions are so fast that you can make a purchase quickly with BCH (Bitcoin Cash).

Bitcoin Cash (BCH) mining is a complex process of solving certain mathematical problems that allow miners to control transactions and make networks of blocks from them. It is implemented using a special SHA-256 algorithm. To get Bitcoin Cash without investing fiat money you can use such methods as mining with video cards (the most effective), mining coins with the help of CPU power, and cloud mining. Video card mining is the most productive and efficient. To get even more coins, several modules can be installed on a farm. The equipment pays off quickly, after which you get a good profit. Mining BCH coins with the help of a processor involves less profit, but this method has its advantages such as minimal heat of the system, lower energy costs. If you do not have the opportunity to purchase your own equipment for mining cryptocurrency, you can use an alternative solution – cloud mining. Large companies purchase installations and sell their power to users. It is enough to connect to the system to start mining Bitcoin Cash.

Difference between Bitcoin (BTC) and Bitcoin Cash (BCH)

BCH and BTC have different functions. Let’s list some of the differences between them. The first is that because of the difference in block sizes, transactions in BCH are faster than in BTC. With BTC, a transaction can take several minutes or more. This has resulted in a longer waiting period as more transactions need to be processed without changing the underlying technology that processes them. And the next is that the cost of processing BCH is lower than BTC.

In conclusion, despite the advantages that BCH has over Bitcoin, there are still many people who have yet to master the use of BCH for transactions. It just means that BTC stays on top. Well stay tuned with us for further developments. 

Conclusions

What’s Polkadot?

Polkadot

4 min reading

What’s Polkadot? In this article, we will explain all the details considering it.

What_s Polkadot

What’s Polkadot?

Cryptocurrency has existed for some time with bitcoin being the earliest and the most lasting digital currency. This digital cash is built on a mechanism known as bitcoin technology. If you have heard about bitcoin, we believe you must have come across this word. This technology creates a faster and more efficient way for businesses to transmit, receive and track orders using secure data. However, over the years, other cryptocurrencies have been created in a bid to fill the lapses found in bitcoin, the reason why Polkadot was created. What is Polkadot, and how does it work? This article will throw more light on this technology. 

Polkadot (DOT) is a software that seeks to motivate a global network of computers to operate a blockchain where users can handle their blockchain, and it connects different specialized blockchains into a unified network. It was founded in 2016 by Garvin Wood, co-founder of Ethereum, alongside Peter Czaban and Rober Habermeier. It is commonly referred to as a multi-chain network because it joins networks together. It allows cross-blockchain transfers of any type of data, not just tokens, thus allowing users the ability to exchange with a wide variety of blockchains in the Polkadot network, thereby saving money and resources. 

Why it was created?
Polkadot was created as a scaling solution for blockchains whose transaction process required that every node validates each transaction and it scales through parachains whose nodes need only to validate the transaction on the parachain. Independent transactions can be validated on different parachains thereby increasing transaction capacity with each parallel parachain. Note that, parachains are connected to the central chain that stores the main parachain blocks, thereby allowing communication across parachains.

In addition, Polkadot’s pooled security grants access to the launching of new parachains without having to find new validators to secure them. There is therefore maximum understanding among users since they will not have to compete for exclusive validator resources. 

Polkadot’s consensus mechanism
More so, Polkadot’s consensus is accomplished on two consensus high techs which comprises one for block productions and the other for finality. This is because of the scalability limitations found in the instant finality consensus protocol that allows for fast production of blocks and, at the same time, a great number of validators are permitted to participate in the consensus. One of which is the genesis from all valid and available parachains wherein the right to create a relay chain block for a time slot is randomly assigned to a validator while the other consensus requires that instead of voting on a single block, each validator rather votes the highest block he deems valid. Since multiple blocks can be finalized simultaneously, validators can take longer than one block time to attain finality.

Polkadot’s creation
In summary, given that Polkadot was created by a co-founder of Ethereum, one might be tempted to think that they have the same properties. However, they are similar in that both networks operate the main blockchain where transactions are finalized and allow for the creation of many smaller blockchains that leverage their resources. In addition, both technologies also use staking instead of the mining process as a means of keeping the network in synchrony. Also, developers can use Polkadot’s development framework to simulate a copy of the Ethereum blockchain that can be used in custom blockchain designs.

Conclusions

Zcash

Zcash

3 min reading

Did you hear about Zcash? In this article, we will explain in detail what it is.

What’s z cash

What's Zcash?

You could have heard about Zcash on the Internet. But now you still have no idea how this relates to crypto-currency, probably because you think that when we talk of cryptocurrency, it is equal to Bitcoin. If this is the case, then we are going to explain what Zcash is, its history, and much more interesting information in this article.

Zcash is a privacy-protecting currency, a privacy-focused blockchain, and cryptocurrency developed in response to the shortcomings of Bitcoin. A fair and open currency that can be spent, sent and received via smartphones, computers, or digital wallets. It is also quite interesting to know that anyone can have access to Zcash, irrespective of social status or demography. Although it uses the same algorithm as Bitcoin, it enhances it by allowing semi-transparent processing. It simply means that transaction data is selectively disclosed.

History of Zcash

Zcash has its origins in Zerocoin, which was developed in the 1980s by Matthew Green, a graduate student. Zerocoin used a sophisticated new mathematical technique called “zero-knowledge proofs” for transactions on the blockchain. However, Zerocoin had its drawbacks. In 2013, as a professor at Johns Hopkins University, Green recruited some of his graduate students to the Zcash development project. This development was completed by the commercial company Zcash, led by Zuko Wilcox. Zcash was initially hacked at the end of October 2016. 

On March 1, 2018, Ariel Gabizon discovered a weakness in the Zcash source code. Fortunately, the development team was successful in eliminating this problem, and no one could mine Zcash illegally.

How does Zcash work?

As mentioned earlier, Zcash is a privacy-protecting digital currency with a solid scientific foundation. A transaction with Zcash is efficient and secure, with low fees. Zcash addresses are identified by “Z” and “T”. A Z-to-Z transaction appears on the blockchain but the amount and memo field is encrypted. A T-to-T transaction is publicly visible. The two Zcash addresses are interoperable. Funds can be transferred between the Z and T addresses, but users will need to understand the privacy implications of shielding and deshielding information in these transactions.

Zcash uses a cryptographic tool called zk-SNARKS (Zero-Knowledge Proofs). This tool allows users to conduct transactions without either party revealing their payment address. Thanks to this, Zcash transactions are untraceable on its blockchain. Since the payment addresses stored on the blockchain are not the actual addresses of the users, it is impossible to trace the transaction.

One of its advantages is that it places a greater emphasis on privacy. This network truly preserves anonymity, allowing users to send and receive funds in such a way that the only information the public can see is the date and time of the transaction. Zcash can also be mined using less energy, making it a realistic option for smaller miners.

In conclusion, even though Zcash seems to be one of the leading cryptocurrencies, Bitcoin remains the leading crypto-currency. In addition, it is important to note that Zcash prices will depend greatly on supply and demand with the supply steadily increasing while demand remains uncertain. However, the speculation about its volatility has created opportunities for traders who might want to invest in Zcash.

Conclusions