Ivan on Tech Academy provides latest insights and reports about the blockchain industry.
Blockchain technology first came about with the launch of Bitcoin in 2008 and the technology has, over the years, predominantly been associated with cryptocurrency, ICOs (initial coin offerings), and, more recently, decentralized finance.
The nature of the technology boasts apparent advantages to the traditional financial sector; however, now other industries are beginning to recognize the uses and applications of blockchain, they too are starting to integrate this technology.
Many businesses are finding benefits with the technology's use cases across different sectors. In this article, we will discuss a variety of business models using blockchain in various industries, and how these help shape the fourth industrial revolution, a.k.a. "Industry 4.0".
Blockchain technology, sometimes known as distributed ledger technology (DLT), is a relatively new form of a database for transaction information, stored in a decentralized and transparent manner.
Aave is a decentralized money market protocol that enables users to lend and borrow cryptocurrencies in a trustless manner. There is a wide variety of cryptocurrencies to choose from, and Aave offers both stable and variable interest rates to its users.
We’re looking closer at Aave today because it is quickly establishing itself as a market leader in the lending and borrowing sector of decentralized finance (DeFi). Like other DeFi protocols, there are no lengthy registrations to contend with, nor any KYC (Know Your Customer) or AML (Anti Money Laundering) documents required.
To transact on Aave, lenders must deposit funds into liquidity pools, and users can then borrow from these pools. Each pool sets assets aside as reserves to hedge against volatility. These reserves also help ensure that lenders can withdraw their funds when they’re ready to exit the protocol.
Aave has close to 20 different cryptocurrencies available for...
Altcoins have been stirring up a lot of noise within the crypto community lately. Alts appear to be setting the scene for this coming bull market, with Bitcoin recently pumping back up to its highest price seen since 2017.
In this article, we're going to explore the different types of altcoins on the market, but more importantly, key factors to help you learn what makes an altcoin valuable, including tips and strategies commonly used to yield high returns on altcoin investments. Firstly, let's start with the basics:
Simply put, an altcoin is an umbrella term for any alternative coin to Bitcoin.
You may see or hear coins being referenced by another category name such as tokens, stablecoins, scamcoins, or shitcoins, but fundamentally they are all different types of altcoins.
Bitcoin was the original cryptocurrency created using blockchain technology. Although the protocol is uniquely valuable, some people thought that Bitcoin was too slow...
Derivatives are one of the most sophisticated and mature instruments in the financial market. One of the most exciting things about DeFi is that it allows developers to recreate traditional financial instruments in a decentralized context. The DeFi derivatives market has garnered a lot of steam.
As per DeFi Pulse, DeFi derivatives applications have >$500 million locked up, with Synthetix being the clear market leader. If properly executed, DeFi derivatives can bring a whole new class of investors and institutions. But before we do so, let’s look into the definition of financial derivatives.
In finance, a derivative is a contract that derives its value from an underlying entity's performance. The contract specifies the exact conditions under which two parties can transact with each other. These conditions include:
A warm welcome to any and all crypto newcomers! We understand that many of you are probably at the point of wanting to get your hands on some Bitcoin at this exciting time. Still, perhaps you're not exactly sure how cryptocurrency exchanges work - and would like to know a little bit more before converting your beloved fiat currency into invisible magical coins.
In this article, we'll explain the uses and applications of different centralized and decentralized exchanges and take a look at what actually happens on the blockchain when you make a transaction. By the end of this article, you should have the confidence and the knowledge to venture out into the wild, wild land of crypto.
The first thing to note is that there are several different types of exchanges that operate alongside one another, shifting toward a new financial paradigm of digital finance on the blockchain bringing together fiat currency and cryptocurrencies. Some exchanges...
To understand the real value and revolutionary properties Bitcoin can bring to the economy, we must first understand the concept and properties of money. If you're researching for your next investment and stumble across Bitcoin vs. gold vs. stocks, this article will help you understand where and how your money moves, allowing you to compose the best investment strategy hard-earned cash.
Why do we have 'Money'?
Before money was invented, people would transact with one another through the system of bartering. In essence, this a form of negotiating for something you want in exchange for something you already had. For example, "I will give you five apples for your five potatoes."
However, this proved tricky when you only had cows, and you needed to get some apples. "How many apples is a cow worth?" was probably once a legitimate question for a farmer who had to barter with other farmers to eat that night.
Naturally, people began to use 'currency' to...
Synthetix is the name of a decentralized, synthetic-asset exchange. “Synthetics,” on the other hand, are financial instruments that simulate other instruments. They play a big role in the world of traditional finance. And this is what the company, Synthetix, aims to bring to the world of decentralized finance (DeFi)
But, before we dig into the role that Synthetix plays in the DeFi space, let’s look at the traditional role that synthetics have always played. We’ll start with derivatives.
A derivative is a security that derives its value from an underlying asset (or group of assets). Futures, swaps, and options are all examples of derivatives. The derivative holds no value in and of itself. Its value is based on its underlying asset(s).
Underlying assets can be things like stocks, bonds, and currencies. Bitcoin could be an underlying asset. Thus Bitcoin’s intrinsic value could drive the price of a derivative.
A decentralized exchange, or more commonly a “DEX”, is one of the most fascinating aspects of the DeFi revolution. As you may already know, DeFi, is a movement wherein developers create decentralized alternatives of various traditional legacy financial institutions and products. The DEX is the decentralized version of an exchange, such as a crypto exchange. Before we answer the “what is a decentralized exchange” question, let’s learn about traditional exchanges and its many flaws.
Centralized cryptocurrency exchanges are often the first point of contact that people have with the crypto world. The chances are that if you have cryptocurrency, you must have bought it from one of these exchanges. The exchanges act as a portal between the “real” world and the crypto world.
Now, don’t get us wrong. While they have plenty of flaws, they certainly have some advantages, as well.
The DeFi lending space plays the same role as any traditional bank giving loans to a user or business. But as with any other blockchain application, DeFi lending has much more to offer than its conventional peers.
The DeFi crypto lending platforms offer crypto loans to anyone in a trustless manner, i.e., without intermediaries. Any user can enlist the crypto coins they own in the DeFi lending platforms for lending purposes. A borrower will directly take a loan from the platform, which can also be called DeFi P2P lending. The lending protocol enables the lender to earn interests.
Out of all the other DApps available in the decentralized finance space, the DeFi lending growth rate is highest, making it the most significant contributor to locking crypto assets. According to crypto research company Messari, the DeFi lending space is the top-performing section in terms of ROI (return of investment), followed by decentralized exchanges (DEX) and DeFi payments.
Commonalities And Differences Between Blockchain And Dlt: “Non- Identical Twins”
Blockchain and Decentralized Ledger Technology (DLT) are interrelated however they are not completely the same thing.
Blockchain is a branch of DLT whereby DLT is a subset of a blockchain. For instance - the block explorers associated with Ethereum, Bitcoin or any other blockchain for that matter are live examples of a distributed ledger.
DLT is a part of blockchain whereas DLT is a specific breed of blockchain technology. They are non- identical twins!
The above expressions explain why it is so easy for people to make interchangeable and erroneous use of the two terms. Perhaps we could turn to a more eloquent expression to help you draw conclusive distinctions – “DLT is a decentralized database managed by multiple participants, across multiple nodes. Blockchain is a type of DLT where transactions...