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Ethereum Overtaking Bitcoin Soon?

Experts and researchers are now predicting that Ethereum overtaking Bitcoin in the Blockchain Market is turning out to be accurate. The main reason behind this prediction is Ethereum is moving towards Ethereum 2.0. It involves switching to a drastically less energy-consuming method of validating transactions known as Proof of Stake (PoS).

Ethereum is the first among other Blockchains to move from Proof of Work (PoW) to Proof of Stake (PoS). This could be a giant step for Ethereum but this will revolutionize Blockchain completely. In the beginning, it will reduce the global energy consumption required for mining.

Ethereum Overtaking Bitcoin Or Not?

Some experts and researchers are already recommending people who invested in Bitcoin to start selling them as soon as possible. Ethereum can revolutionize the complete Blockchain Industry with the change to Proof of Stake, which is expected to happen at the end of this month.

One of the other factors behind the leading Blockchains is the massive energy consumption involved. With “The Merge” happening with Ethereum’s switch, the energy costs will be down by 99.95%. It means that 10 million GPUs worldwide could be narrowed down to just a few thousand, resulting in a reduced energy crisis globally.

Indeed, Ethereum will be taking over Bitcoin if “The Merge” happens. With the cut in energy costs, this will result in Ethereum coming up front in the Blockchain Market due to the transaction costs going even cheaper than before.

Is Ethereum The Future of Blockchain?

Yes, it is more likely that the future will favor Ethereum overtaking Bitcoin. Ethereum’s merge with Proof of Stake (PoS) could open up the Blockchain industry towards an inward investment from traditional finance, which remained quite cautious in the past due to the carbon footprint associated with Proof of Work (PoW).

In Ethereum 2.0, ether will become a deflationary cryptocurrency, with the annual issuance of the cryptocurrency being slashed down by almost 90%. Investors are already lining up many ether call options for a possible bull run on Ethereum if The Merge goes through. With only over a month left, many crypto analysts are predicting the changes to come just after The Merge.

Ethereum will completely revolutionize the Blockchain Industry if The Merge goes through without complications. Apart from resolving the Global Energy Crisis due to mining, it will also reduce the other transaction cost that Ethereum had to bear.

Can Ethereum Flip Bitcoin Over?

The flipping can occur due to various causes and ways. With a limited amount of Bitcoin, some of its value is derived from its rarity and can also serve as an inflation hedge.

Comparing it to cash processors like VISA, which can handle around 60,000 transactions per second. On the other hand, Bitcoin’s Blockchain can handle roughly seven transactions per second. So, Bitcoin is too reluctant to function as a suitable means of exchange. Thus resulting in forcing people to look for a faster and more efficient system.

Ethereum has made it quite feasible to develop and build new valuable products and services. As a means of exchange, these developments on the Ethereum Blockchain will need some ether coin. This will indirectly raise the price and demand of the cryptocurrency.

Ethereum Overtaking Bitcoin: Final Thoughts?

All experts and researchers have pointed toward a major increase in the prices of Ethereum by the end of this year. The projected growth of Ethereum should be seen shortly after The Merge is launched. Many critics still think it is to create hype in the Blockchain Market, but that’s entirely wrong.

Users and Investors are more likely to shift towards Ethereum than Bitcoin after Ethereum’s transition. Only time will tell us if this is true, but the stakes are pretty high. There is little wait left to guarantee full insurance of this significant evolution of the Blockchain Industry.

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Ethereum switching to Proof of Stake (PoS)?

The NFT market tokens representing Digital Art, Music and Videos soared to a whopping price of $44 Billion last year. This increased attention to the Ethereum Blockchain, where most of the NFTs were bought and sold. Hence, Ethereum came up with the idea to change from Proof of Work to Proof of Stake.

Unlike a banking system, a Blockchain network doesn’t have a central gatekeeper to verify the transactions. Instead, Bitcoin and Ethereum, two of the largest cryptocurrencies, both rely on a mechanism called “Proof of Work (PoW)” to maintain the ledger of transactions.

What is Proof of Work (PoW)?

It is the algorithm that helps secure many cryptocurrencies like Bitcoin and Ethereum. The concept behind its creation was to control third parties like banks or states involved in the financial ecosystem. Participants maintained a shared ledger, which is why Blockchains like Bitcoin and Ethereum moved their systems entirely to PoW.

Even more specifically, PoW solves the “double-spending” problem. If, for instance, the users double-spend their coins, this will cause inflation in the overall supply, resulting in the devaluation of everyone else’s coins and making the currency worthless. Hence, the Blockchain networks shifted completely to PoW, making doubling digital currency very difficult.

What is Proof of Stake (PoS)?

The problem was quite clear for Ethereum developers regarding the limitations with PoW. So, they are almost in the final stages of building the new solution, “Ethereum 2.0”. This upgraded version of Ethereum will produce a faster, intensive mechanism called “Proof of Stake (PoS)”. It will not only maximize the speed and efficiency but also lower the existing fees.

In Proof of Stake, staking is similar to a proof of work’s mining. It’s the process through which a network participant gets to select the latest batch of transactions to the desired Blockchain and, in exchange, earn some crypto back. The details may vary, but PoS Blockchains generally deploy a network of “validators” who contribute or stake their personal crypto in exchange to get a chance to validate new transactions, update the Blockchain and earn themselves a reward.

How does Proof of Stake work?

Basically, in PoS, the algorithm selects a pool of validators based on the number of funds each validator has. If you’ve chosen and the committee of “attesters” accepts your block. Ethereum claims that the critical advantage behind switching from Proof of Work to Proof of Stake is the economic incentive to play by the rules. If a node picks up a bad block or transaction, the validators face “slashing”, which technically means that all their ether is “burned”.

Proponents have claimed that Proof of Stake is far more secure than Proof of Work. Attacking a PoW chain, you only need half the computing power in the network. Whereas, for PoS, you need to control more than half the coins of the system. It is pretty tricky to achieve this with PoW.

A Risky Move for Ethereum?

Moving the Blockchain network from Proof of Work to Proof of Stake comes with risks. Thousands and thousands of Smart Contracts operate entirely on the Ethereum chain, with billions of dollars of assets at stake.

Proof of Stake has still not been proven onto our existing Proof of Work platforms. Ethereum has been among the top Blockchain networks, and it will be difficult for them to transit from PoW to PoS. The vulnerabilities would surface once the new system is widely released.

Future of Ethereum?

With Ethereum’s transition to this new protocol, we are still unsure how it will affect the Blockchain market. If this plan for Ethereum succeeds, then this will increase the price of Ethereum to booming numbers in the Blockchain market.

However, Ethereum will be launching its “Ethereum 2.0” mid-next month. Only a few days left as Ethereum is working on the final touches of their Proof of Stake model. With the crypto market being uncanny, no one is still sure what the future of Ethereum holds after their new model implementations. Let’s hope it goes the right way, as it will completely revolutionize the Blockchain market.

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5 Things You Need To Know About The Metaverse

If you are a regular Internet user, then you have most likely heard about the term “Metaverse” especially from the recent Facebook rebranding to Meta. You might have heard about it from Fortnite creator Epic Games about their $1 billion funding to focus on their “long-term vision for the Metaverse”.

What is The Metaverse exactly?

The Metaverse is an immersive digital reality that allows users to participate in social activities from the comfort of their own homes.  The basic concept of the Metaverse is quite optimistic that is by working to replicate the real-world environment and enable interactive activities by combining augmented and virtual reality.

It garnered interest since its inception especially after the world pandemic due to COVID-19 as many people participated in a variety of virtual events whilst staying at home.

Its unique feature of it is that it focuses on the concept of presence to make all users feel like they are having a face-to-face interaction with this new iteration of the Internet. The concept may seem all daunting but here are 5 things about the Metaverse that will help you to understand it better:

1- Is The Metaverse a completely New Technology?

Just imagine that you could fully experience and participate in any sort of concert, business event or gaming by simply wearing a headset. You’ll feel like you’re physically present there just because of the 3D features the Metaverse has.

The question remains “Is Metaverse a completely new technology or not?”. Realistically, it is just a combination of two previous technologies: Augmented Reality (AR) and Virtual Reality (VR). Both these technologies are combined to create an exciting 3D environment that can be simulated through glasses, headsets or watches. Not only these but it can also be accessed through other existing technologies like computers, gaming consoles or even cell phones.

2- What type of Businesses will be in The Metaverse?

Several business opportunities are available in the Metaverse. Some of the possibilities are endless and will involve multiple industries like:

– Virtual Concerts, Events and Meetings

– Shopping Experiences

– Virtual Augmented workspaces to offer a more collaborative connection between employees

– Better learning experience through Virtual Institutions

– Social Media Platforms that will allow users to interact using their 3D avatars

3- Blockchain Technology in The Metaverse

Everyone is quite familiar with Blockchain nowadays and its effect today in the modern world of digital transactions. It is a system for recording all trackable assets and financial transactions within any business network. Any sort of valuable asset whether it is tangible or intangible can be traced in Blockchain Technology to minimize the risks of any third-party involvement. Incorporating Blockchain Technology into the Metaverse is still an ongoing process. Two of the most well-known cryptocurrency platforms, Bitcoin and Ethereum are working and helping to establish Blockchain technology in the Metaverse which provides digital transactions in that virtual reality.

4- No Ownership of The Metaverse

The idea of the Metaverse is entirely a shared concept even though Facebook changed its name to Meta. Facebook couldn’t be considered to take complete credit for developing this new technology. A lot of companies are exploring new features to enhance their own pockets with this technology. Big Tech companies like Microsoft, Roblox, Unity, Nvidia and others are all building their ideas of a better virtual world to develop new digital experiences.

5- Is The Metaverse Safe?

Many users have already sparked conversations about safety concerns and analyzed if it could be a responsible & secure immersive environment. Qualified experts on digital privacy have explained the activities in the Metaverse will be monitored and under surveillance to ensure user safety & privacy. It will also have a legal framework of guidelines that will help focus on prevention and implement consequences of the action in case of any sort of virtual harassment is to occur. The Metaverse will take all precautionary measures and help users to trust the technology. By the end of 2024, there will be 1.7 billion AR mobile users worldwide. Accessibility, cost and safety are the top three factors cited by Extended Reality (XR), industry experts as driving the AR market past the VR market.

The Conclusion?

The Metaverse is a catalyst of the future that will add to the next generation of the Internet. If you look back historically at the existing major tech trends, no one had envisioned it as it is today. While everyone knows it’s a game changer in the future, no one is exactly sure where it will end up. We would all have to wait and see what exactly the Metaverse holds for everyone in the future. Most likely, Metaverse is the future and will revolutionize the way we see the world right now.

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New Ethereum Token Standard ERC-4907?

As technology continuously evolves, a new concept is introduced every day. An exciting concept in the world of NFTs is rentable NFTs. According to ERC-4907, an NFT owner may provide permission to a third party to use their NFT for a certain amount of time. The user will lose access to the NFT after that period is over.

P2E video games are still a relatively recent trend in both gaming and cryptocurrency. Despite this, the sector has tremendous development potential since it successfully combines two things that everyone wants: money and fun.

Entry into the P2E market has been increasingly simpler with the continued growth of NFT rental services. They allow gamers to rent an NFT without conditions and pay lenders a percentage of their profits. In turn, owners of non-fungibles have the opportunity to earn additional passive income.

What are NFT Rentals?

NFT Rentals operates similarly to other rentals in the real world. Let’s say you desire a premium automobile for a few days. The most economical option is to hire a car for the necessary number of days and return it without fail to the owner when your rental period is up rather than purchasing a new vehicle. Like renting a car for a few days, the goal is to return the NFT to its rightful owner when your rental term is up.

The Importance of NFT Renting

There are several advantages to renting to NFTs, and they can have a wide range of utilities.

Both owners and tenants gain from NFT rentals. The renter offers a chance to interact with the NFT community or utilize an NFT’s service that they otherwise wouldn’t be able to afford, even temporarily. The owner can monetize their NFT and get passive revenue from a static asset that would otherwise gather virtual dust in their digital wallets. These advantages of NFTs renting in the gaming industry are unquestionably beneficial to casual and high-net-worth players.

NFT rentals have enormous potential. You may rent digital artwork, metaverse territory, and many gaming materials. With the widespread adoption of blockchain games, guilds, and metaverse in the upcoming years, the NFT rental industry will prosper. As a result, users, guilds, and projects will hold vast quantities of idle NFTs. To lower the cost of participation and encourage continued usage among current users through rental income, it is essential to maintain a thriving rental market.

Current NFT Rental Methods

NFTs may now be rented out in one of two ways:

  • Collateralized Renting
  • Collateral-free Renting

In both cases, the owner will provide the user access to the NFT in exchange for a security deposit or other agreement to return the NFT to the owner when the rental time is over. Once rented out, the original owner loses control of the NFT, which raises several dangers. Additionally, the owner must manually retrieve their item when the rental period is up, which is a complex and expensive operation, especially when renting many assets concurrently.

The separation of the roles of owner and renter with an expiration date made possible by the introduction of ERC-4907 implies that the privileges of the leaseholder expire automatically without the need for any further on-chain actions.

NFT Rental Dual Role Standard ERC-4907

By differentiating who is the owner and who is the user of the NFT, ERC-4907 introduces a new position and makes it feasible to “rent” the NFT. The renter can use the NFT up to the end of the loan period, at which point it immediately reverts to its owner.

The ERC-4907 standard, which adds the dual roles of “owner” and “user” at its application layer, expands ERC-721. Through an automatic “expires” feature that enforces the user’s time-limited role, ERC-4907 optimizes NFT rentals. This ground-breaking feature makes NFTs rentable by default and prevents yet another on-chain transaction by removing the need for owners to withdraw user rights actively.

It is simple to implement ERC-4907 by adding a small amount of code. The ecosystem for NFTs may develop and innovate more quickly if this paradigm becomes the norm.

The Protocol Offers:

Simple implementation: Backwards compatibility and easy to implement.

Functions for the NFT: It is much simpler to control what lenders and borrowers can and cannot do with the NFT when there are separate “owner” and “user” roles.

On-chain time management (expires): After the rental period has expired, the “user” of NFT is immediately revoked.

Simple Third-Party Integration: The NFT owner may rent the NFT to some users and simultaneously utilize the NFT in a mortgage platform. The “user” role of the NFT is used in renting, whereas the “owner” role is used in mortgages.

Increasing access to NFT: Renters can use the NFT but cannot transfer it or alter its user-ship, which is automatically revoked upon expiration; hence renting an ERC-4907 NFT does not need OC or any collateral at all. This increases the options for people to rent NFTs and use them.

Increasing market liquidity: As The Metaverse and Web3 grow, more and more individuals will choose to rent NFTs to enjoy their advantages, including those who cannot afford to buy in-game items or virtual property or who do not choose to do so. Over time, this will significantly enhance NFT market liquidity.

Conclusion

We discussed the NFT Rental Standard ERC-4907, its operation, and the rationale for the renting system. An essential standard known as ERC-4907 does away with the requirement for collateral when lending and borrowing NFTs. NFT owners, buyers, markets, and artists will access safer and more profitable opportunities if it becomes accepted as the norm for NFT production and programming.

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How Are NFTs Impacting The Art World?

Non-fungible tokens, or NFTs, have recently piqued the interest of international artists and collectors, generating new economic activity. But much of the discussion neglects to include how NFTs change the conventional art market. The consequences of purchasing and selling fascinate collectors, galleries, museums, auction houses, and artists.

A brand-new class of crypto assets, NFTs are distinct from Bitcoin, which is fungible or interchangeable. An NFT is often an exceptional digital depiction of a good, such as a work of art, in the context of art and collectibles. It is saved on a “blockchain,” a digital database that frequently acts as a decentralized public ledger and resembles a certificate of authenticity. Artwork, music, collectibles, and other digital assets, whether tangible or digital, can serve as the foundation for NFTs. So, where do NFTs fit into the current environment of the art market? NFTs may be viewed as a fad by some, but they have intriguing ramifications for both the development of digital art in the present and the future.

NFTs Profit for Artists

Artists and their artwork follow a well-worn road, starting with galleries, which put the art with museums and collectors, then the secondary market focused on auction houses. Museums, collectors, and artists buy and sell art in galleries and auction houses. NFTs and associated marketplaces allow artists to sell directly to buyers.

NFTs affect artwork price and how galleries and artists are compensated. As new art is made and sold, the gallerist decides the price. A secondary market may develop for a seasoned artist’s work over time, increasing liquidity. When an artwork sells on the secondary market, the revenues go to the owner. The artist doesn’t benefit from price rises after the original sale. NFT contracts may contain royalty terms, so artists get a portion of any upside. Big NFT exchanges like OpenSea obey these rules, but private deals are murkier. Given that NFTs are freely launched and tradeable, a collapse of primary and secondary markets may imply buyers have more influence on market pricing.

This democratization of the art market means more buyers and sellers from within and beyond the conventional art world are trading across different platforms, so it’s more crucial than ever to be attentive and educated.

Accessibility and Cost

Blockchain technology and NFTs are altering how people view art and art ownership. NFTs frequently refer to some type of artwork, whether it be digital or tangible. Ownership of an NFT, however, does not entail ownership of the actual work of art. Non-fungible tokens are occasionally sold alongside the actual artwork and occasionally not.

With his collection of 10,000 NFTs, “The Currency,” by British artist Damien Hirst, Hirst explored the issue of ownership by having each NFT represent a different tangible piece of art. NFTs are sent to buyers, who choose between actual artwork and digital non-fungible tokens. One is destroyed, the other. Additionally, museums are considering how to employ non-fungible tokens. To raise money to restore the same masterworks, some institutions have produced NFTs of the masterpieces in their collections. As museums see NFTs as distinct forms of art, new issues about their acquisition, storage, and curation arise.

NFTs might create a new category of art purchasers. Blockchain enhances these possibilities by making fractionalized art ownership more popular and simpler to acquire and sell, even if owning art through art funds is not a new concept. Through a higher minimum commitment, traditional art funds provide each investor with proportionate participation in a collection of works of art. Blockchain makes it easier to acquire partial ownership of one or more art pieces, allowing for free secondary market trading for less money.

Communities and Collectibles

Non-fungible tokens affect more than just great art. Minting NFTs works for collectibles like baseball cards. NBA Top Shots is an early NFT in this category that lets users gather highlight videos of their favorite athlete’s dunks or jump shots.

This group of NFTs has an intriguing trait in that they might potentially benefit from a sizable fanbase or collector base that supports one another’s tastes. New artistic communities are being created by offering artists new, more direct means to communicate with their fans through non-fungible tokens. The firm Yuga Labs’ 2021 release of a collection of NFTs featuring cartoon apes called The Bored Ape Yacht Club caused a stir in the art and business realms, generating millions of dollars and attracting the attention of famous people. Members of the “Club” get access to exclusive chat rooms, receive “airdropped” deals (new NFTs sent straight to their wallets), and the ape images even serve as a virtual coat of arms for social media accounts. Historically, art communities have been established through galleries; however, NFTs also support the development of online and virtual communities.

NFTs and Art World: Conclusion

NFTs are upending the art market by altering how art is traded. Through websites like OpenSea and Foundation, digital art creators may sell directly to collectors, bypassing brokers and galleries. Understandably, auction houses would like to participate in this significant upheaval. In October, Sotheby’s, selling NFTs valued at $100 million in 2021, debuted Sotheby’s Metaverse, a specialized, exclusive NFT market. In the future, this will develop to encompass a complete range of market characteristics, such as leading offers, dynamic auctions, open editions, and the ability to mint generative artworks.

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DApps: Decentralized Application | What Is It?

DApps are true innovation that masterfully uses the benefits of decentralization to provide end users with the utmost security and sensitivity. Decentralized applications created on top of blockchain are referred to as DApps.

What are DApps?

The backend software of a dApp runs on a decentralized peer-to-peer network. Compare this to a typical app, where the backend code runs on centralized servers.

The sole difference between blockchain-powered decentralized apps and the mobile or web apps we now use daily is how you conduct transactions or connect with other users through the blockchain network. The data being transacted in this case is dispersed throughout a decentralized network of millions of nodes, keeping user records and identity secure and impermeable rather than being under the jurisdiction of a single large corporation, intermediary, or company.

It’s Unique Characteristics:

The extraordinary qualities and attributes that DApps possess are what set them apart. Let’s mention some of them and quickly go over them.

Censorship Proof: 

If you utilize a decentralized app, no one in the blockchain network can restrict your profile or account since it is not under the jurisdiction of a central organization or owner.

Let’s examine it with yet another example:

Suppose you use a dApp similar to Facebook and post messages to the app network. No one, not you, can take those messages down after they’ve been published.

Open Source: 

DApps must be open-sourced, and the developer community must have access to the code base. However, any improvements in the open-sourced DApp code must be made by a consensus method that essentially amounts to a majority vote rather than a developer.

Decentralized: 

Because a DApp is decentralized, its anonymous data must be kept on an immutable, public blockchain.

Dapps provide complete data integrity and are cryptographically secured. Thanks to cryptographic primitives, everything saved on the blockchain is unchangeable and incontrovertible, preventing hackers and attackers from forging your transaction without your permission. Your credentials are kept secure by using your wallet to approve DApp operations with your DApp user account.

Maintain Anonymity:

As a dApps user, you may maintain anonymity throughout any transactions in the DApp.

Get Incentivized: 

Tokens produced in DApps are used in the blockchain ecosystem to reward validators.

Zero Downtime DApps: 

DApps are hosted on decentralized blockchain platforms like Ethereum and polygon, guaranteeing high availability around the clock. It is exceedingly unlikely for a blockchain technology like Ethereum to be compromised or experience downtime.

The Function of DApps

The backend code for DApps is stored and executed on a decentralized network, such as the Ethereum blockchain, where smart contracts are used for the app logic and data storage.

In this case, smart contracts are a collection of protocols that are publicly available on the blockchain and may be seen and executed in accordance with those protocols. As a trustworthy intermediary, smart contracts facilitate agreements and transactions. The intelligent smart contract that stores the logic to regulate the DApp’s transactions is the main reason DApps can be decentralized on a specific blockchain network.

Use Cases and Examples:

It includes running decentralized finance (DeFi) lending services, games, NFT, collectibles, and marketplaces. 

DApps Case Study:

Decentralized Trading Protocol: UniSwap

Open-sourced liquidity protocol: (AAVE)

Most Effective aggregator of DeFi: 1-inch

Everyone can broadcast, share, and earn money from audio with Audius.

Rarible is both a marketplace for these assets and an Ethereum-based distributed network that facilitates direct exchange.

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What Is Blockchain Trilemma? How Can We Solve It?

Blockchain, a leader in innovation, is one of the most exciting sectors in the world, driving the development of new technologies and frequently changing the paradigm. The blockchain trilemma is one of the most well-known obstacles that developers and innovators in the cryptocurrency sector have worked tirelessly to solve as the industry has grown.

The Blockchain Trilemma: What Is It?

We must first examine the blockchain concept to understand the blockchain trilemma. Blockchain is a public, shared, immutable database or ledger where the transactions recorded are unchangeable. The three most important characteristics of blockchain are decentralization, scalability, and security.

By being decentralized, a blockchain allows for equal participation from all parties in its creation and verification. Blockchain administration is divided among members throughout the whole network, making it more decentralized and secure than if a single body managed it. The decentralized network is more open and accessible than the conventional Internet.

Blockchain security entails that it should be able to fend off efforts by wrong parties to gain control of it. The price of maintaining complete blockchain system control is typically used to gauge security. A blockchain is considered more secure if it is more expensive to manipulate.

Scalability describes the capacity and speed of the blockchain to handle transactions. The fundamental functionality of a blockchain is scalability, and the most crucial indicator for assessing a blockchain’s scalability is transaction per second (TPS). It is essential to raise the TPS and enhance the scalability of blockchain since it is generally acknowledged that a relatively low TPS is one of the primary reasons that blockchains like Bitcoin have not been widely embraced in the first place.

Security, decentralization, and scalability—the three properties mentioned above—are the fundamental core of blockchain technology. Even though the technology constantly evolves, everyone agrees that an “ideal” blockchain should simultaneously be decentralized, safe, and scalable. However, industry producers and developers frequently discover that it is exceedingly challenging to address all three problems simultaneously. When building a blockchain, it is often necessary to sacrifice one feature to benefit the other two; this situation is known as the “blockchain trilemma.”

A Perfect Example Of The Trilemma Of Blockchain; Bitcoin

An illustration of the blockchain dilemma is the scalability of bitcoin. Although Bitcoin is a fantastic invention, its platform is not the most scalable. However, the Bitcoin platform is among the internet’s most secure and decentralized. Due to its less than optimum transaction speeds, it has regrettably developed a bad image regarding scalability. It is less than ideal if you want to utilize it as money. Since the competition processes transactions in milliseconds, card processors like Visa and Mastercard outperform Bitcoin in this regard. Although the Lightning Network has helped to resolve this issue, this Layer 2 scaling method still has several drawbacks. In the end, any cryptocurrency that wants to function as a fiat currency must be scalable enough.

Many raised whether or not all three traits could be accomplished in a single network. Developers have concluded that it is impossible to achieve all three aspects and that the only option is to make do with what is now technologically feasible while working out how to make the necessary trade-offs in a practical setting. While every project works to optimize its network, every blockchain architecture will have certain flaws. Therefore, developers must determine how much of each attribute they are ready to give up to attain maximum performance.

Different Approaches to the Blockchain Trilemma Solana(SOL) 

Solana uses enterprise-grade servers and a Proof of Stake (PoS) technology to attempt to resolve the blockchain trilemma. It relies on synchronization and a limited number of servers to accomplish blockchain decentralization. There are issues with blockchain decentralization despite this, nevertheless. The server cost is often around $10,000, and joining the processing cluster requires staking thousands of dollars, which is typically only an option for large companies and wealthy people. As only a few people can fund SOL, this hinders decentralization initiatives.

Polkadot (DOT)

With the capacity to quickly establish a customized blockchain, Polkadot provides a revolutionary data availability and validity scheme to enable various blockchains to interact.

This implies that you obtain both interoperability and security. To achieve energy efficiency, it makes use of a next-generation POS platform. The Relay Chain and Parachain are the fundamental components of this blockchain. It is a significant advance on Solana because it uses validators to guarantee network consensus.

Cardano (ADA)

One of the most ecologically friendly protocols, Cardano has this to offer. Because it employs the Ouroboros secure blockchain system, it has built-in security. However, processing speed is sacrificed for security. Therefore, the network doesn’t handle transactions as quickly as some others. However, because it lacks the enormous processing needs necessary for a network like Solana, joining the network is much simpler.

Fantom (FTM)

According to Fantom, the blockchain trilemma problem has been resolved. One of the most popular crypto coins, its network provides more than 200 DApps. The network can attain the claimed speed, security, and dependability thanks to Fantom’s aBFT consensus technology. The validator nodes of Fantom, which assist in establishing it as a trustless and leaderless system, are another element of the company’s approach to the blockchain trilemma. With Fantom and FTM, blockchain decentralization is therefore greatly enhanced.

Avalanche (AVAX)

The Avalanche network has yet another effective strategy for controlling the blockchain trilemma’s restrictions. They mainly achieve their blockchain’s decentralization by rewarding users who stake and manage validator nodes. The fact that these benefits are such great means that potential validators don’t need to invest a lot of tokens to get started.

Avalanche has impressively low hardware requirements, too. For less than 1/100th the cost of the gear required to start as a validator on the Solana network, one can start with less costly hardware.

The scalability and decentralization of the blockchain depend on validators. But few individuals are motivated to work as validators. In many cases, doing so is too expensive or difficult to do, restricting its advantages to a select few.

The Blockchain Dilemma: Is It Solvable?

When considering how to resolve the blockchain trilemma, there is no one solution. The Holy Grail cannot be attained, in theory. The most we can do right now is to maximize each blockchain’s potential to fulfill its declared purpose. Future generations may access networks with exponentially greater network transfer speeds and almost unlimited computing capacity. The blockchain trilemma might be resolved relatively quickly in that situation. Transaction speeds would be accelerated “to the moon,” which would solve the issue.

Conclusion

For most developers, the blockchain trilemma is currently a significant issue. Like everything else, we have a considerably higher chance of solving a problem if we know its exact nature. We should share their optimism as many developers are working on the blockchain trilemma’s difficulties.

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Top 5 Blockchain Development Companies in 2022

It is not surprising that the market for blockchain technology is expanding quickly, given how quickly technology advances. The blockchain market is anticipated to increase from USD 3 billion in 2020 to USD 39.7 billion in 2025, with a CAGR of 67.3%. This surge will be spurred by businesses’ growing desire to simplify their operations, promoting the expansion of blockchain development services.

Are you unsure whether your business should adopt blockchain technology? Naturally, you should consider managing the network and infrastructure more smoothly since this will increase income. However, there has recently been a plethora of blockchain app development businesses offering this service owing to rising demand, making it challenging to choose the best one.

To assist you in comparing and choosing the finest blockchain development company for your needs, we have created a list of the top 5 companies.

1) Cubix

Cubix is a blockchain development firm with over 12 years of expertise in creating software solutions. It has extensive experience developing and integrating unique blockchain applications. The company offers end-to-end services, from product development to technical advice and blockchain potential evaluation.

Cubix creates dependable and scalable blockchain solutions for fintech, commerce, banking, and logistics companies. They provide the following services:

Blockchain advisory

creation of smart contracts

Cloud-based blockchain services

E-wallet services

Blockchain supply chains for businesses

In addition to having operations in Pakistan and the UAE, Cubix has its main headquarters in the US.

2) SoluLab

Clients have given SoluLab a great review, and the blockchain development business has received excellent marks from Clutch (4.8/5), GoodFirms (5/5), and Design Drizzle.

Established in 2014, it currently serves clients in all time zones and operates in India, the US, and the UAE. The team at SoluLab is particularly interested in blockchain technology. The business offers full-circle development services in a variety of markets, including:

Cryptocurrency protocols

Smart contracts for enterprise blockchain

Decentralized software

Metaverse solutions 

Games

NFT markets and games

Cryptocurrency exchanges and wallets

In addition to Ethereum, SoluLab supports the following blockchain networks: Binance, Polygon, Solana, Cardano, EOS, Avalanche, Fantom, Near, and MoonBeam.

3) Aspired

Aspired is a blockchain development company with a solid online presence and positive customer feedback. They have a 5/5 rating on Clutch and GoodFirms. The firm operates in the UAE and Pakistan, and its US headquarters is in West Palm Beach, Florida.

To work with customers, Aspired employs a specialized development team engagement approach. After obtaining project specifications, they determine the essential roles and narrow their talent pool to the most qualified applicants.

The team’s developers have a lot of expertise working on blockchain development projects and are prepared to provide their skills in areas like the creation of:

NFT games

Blockchain wallets

DApp 

Smart contracts

Multichain Solutions

DeFi

4) Kryptomind

With a primary focus on NFT and DeFi solutions and more than five years of combined expertise in the IT industry, Kryptomind is a multi-award-winning blockchain development company. Numerous reputable ranking and review organizations, including Clutch, GoodFirms, and HackerNoon, have acknowledged it as one of the best blockchain services.

Kryptomind offers services in all of the most well-liked blockchain development areas while focusing on cutting-edge technologies:

NFT marketplace & NFT games

Decentralized software (DApps)

DeFi (including exchanges, a custom platform accelerator, staking, wallets, lending and borrowing platforms, and smart contracts)

Private and Public Blockchain

Blockchain track-and-trace solutions

Cryptocurrency exchanges and wallets

Kryptomind offers end-to-end development services as one of the leading blockchain development businesses. Kryptomind has amassed many effective blockchain development products over the years. The most distinguishing characteristic of kryptomind is its exclusivity to blockchain technology. GWallet exchange, CryptoKara, Dafi, Senoa, FitScript, and the HOGI ecosystem are their most accomplished projects.

5) Labrys 

Labrys is an Australian blockchain development company offering services in this area since 2017. Labrys works with companies of all shapes and sizes, from start-ups to established corporations and governments. They may help customers that require development assistance in the following areas:

NFTs

Smart contracts

Tokens

Enterprise blockchain

Blockchain integration

Labrys offers consultancy and proof of concept (POC) development services in its capacity as a leading blockchain development business. Its staff can help clients with various tasks, including UI/UX design, product definition, MVP development, and more.

Clutch has given Labrys a high rating of 5/5, while GoodFirms has a rating of 5/5. Clients laud the team’s output quality, adaptability, and communication.

Conclusion

Blockchain is being used by many companies in many sectors, including education, gaming, and finance. Hire a qualified team of engineers if you’re ready to use blockchain to boost your company’s performance. Consider the team’s experience, services, and portfolio when selecting the finest blockchain development firm for your project.

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Proof Of Authority: What you Need to Know About it!

Proof of Authority is a variation on the Proof of Stake consensus process in which network users stake their identity and reputation rather than tokens. Proof of Authority, first proposed in 2015 by Ethereum co-founder Gavin Wood, has recently emerged as one of the more popular consensus methods as the blockchain community looks for alternatives to Proof of Work. PoA, or Proof of Staked Authority (PoSA), aims to address some problems of existing PoW alternatives, including Proof-of-Stake.

To Begin With, Why Replace PoW?

The groundbreaking notion of Satoshi Nakamoto, which gave rise to Bitcoin and ignited the blockchain revolution, may be characterized as the ideal union of decentralization and cryptography. The Proof of Work algorithm, the brilliant idea that underpins the Bitcoin network and ensures its immutability and resistance to hostile operations, was at the core of this union.

PoW became the default consensus algorithm for most blockchain protocols that appeared after Bitcoin since it looked to serve the function. But blockchain technology gained popularity, making several PoW limits that weren’t initially clear. Many people in the blockchain community began seeking alternatives due to these shortcomings.

The Drawback of Pos That Proof of Authority Seeks to Address

Proof of Stake algorithms has been one of the most often used consensus solutions with the movement away from PoW. The benefits of PoS are apparent: it gives network validators an even greater financial incentive to act responsibly; it doesn’t require a lot of processing power or specialized equipment; and it allows for sharding, which increases the scalability of a blockchain network.

Given all these benefits, it is not unexpected that Proof of Stake (PoS) is now being implemented on Ethereum, the second-most popular blockchain network in the world. But the PoS also has a critical flaw that is frequently ignored.

Proof of stake algorithms assumes that participants in a network who have staked tokens will be motivated to act in the network’s best interest or risk losing their investment. Therefore, it seems sensible to think that a person will be more driven to ensure the network’s success if they have a more significant interest in it. This presumption, however, ignores the possibility that, despite identical stakes potentially having equal financial worth, their holders may not view them similarly. For instance, regardless of the actual stake level, a person with 20% of their entire possessions placed in a network is likely to be far more committed to that network’s success than a person with 1% of their holdings staked.

The algorithm’s premise is that network users stake their identities rather than using tokens. As a result, validators in PoA systems are well-known entities who stake their reputations on the line for the privilege of validating the blocks, in contrast to the majority of blockchain protocols where anybody may join without identifying their names. This modification to the PoS paradigm assures that all network members are equally motivated to contribute to the success of their network by eliminating the need to take into account any financial inequalities between the validators.

Proof of Authority: Benefits and Drawbacks

PoA is not feasible for public blockchains like Bitcoin and Ethereum, which include hundreds or even thousands of validating nodes because of the identification requirement. PoA networks are less decentralized since they often have a small number of validating nodes. They also have a high throughput capacity, which is good.

Proof of authority is similar to PoS because it takes little computing work and no specialized hardware. However, PoA networks often only use entities with a solid reputation as their validators, making it difficult for the average person to fill that position.

The Future of Proof of Authority

In the end, PoA will probably flourish in the corporate sector. PoA-based algorithms are unlikely ever to power public platforms with hundreds or millions of users. They are excellent at creating compact and lean networks suited to a small number of known stakeholders. Proof of Authority is where it is most likely to have a significant effect.

The Kryptomind team has considerable expertise collaborating on some of the most well-known protocols for creating private blockchain solutions. Contact kryptomind right now if you need a skilled developer to assist you in using the potential of blockchain technology to grow your company.

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All You Need to Know About the Solana Hack 2022!

One of the strangest hacks in the crypto world occurred yesterday, The Solana Hack. Over $6,000,000 in Solana and USDC was stolen from over 8,000 Solana wallets. The hacker exploited private keys to steal user monies, making it one of the most puzzling thefts in the crypto sector to date. 

The reason for the attack and the degree of the damage is still being investigated; however, on Wednesday afternoon, the “Solana Status” Twitter account disclosed that the vulnerability appears to be connected to Slope wallets, a particular kind of bitcoin wallet platform created for Solana. And rather than a Solana blockchain compromise, private key (or password) information for such wallets “was accidentally provided to an application monitoring provider” at some time.

Phantom posted a tweet late on Wednesday afternoon stating that it believes the exploits are the result of “complications related to importing accounts to and from Slope” and that it is “still actively working to identify whether there may have been other vulnerabilities that contributed to this incident.”

Slope acknowledged that “a cohort of Slope wallets were compromised in the breach” in a statement but hasn’t disclosed the reason. “We have some hypotheses as to the nature of the breach, but nothing is yet firm… We are actively conducting internal investigations and audits, working with top external security and audit groups,” Slope wrote.

 

Here’s How The Solana Hack Happened

It all began when several people on Solana detected odd fund withdrawals from phantom wallets. As a result, several news stories of individuals mass-transferring money from their wallets surfaced on social media. This was addressed by Phantom, which said in a statement that it wasn’t a “Phantom-specific issue.”

Developer and auditor 0xfoobar discovered the theft of Solana and USDC from Slope and Phantom wallets a short while afterward.

El33th4xor, a co-founder of VAX, immediately said that the attacker was able to transfer the funds because they had access to private keys. There are two conceivable explanations in theory: One possibility for the hackers was to execute a “supply chain assault.” They have to break into the JS library and grab the private keys to do this. The alternative would be to use a browser vulnerability. However, this appears implausible given that several Internet systems would need to be impacted. In this hack, Solana was the only intruder. Emin Gün Sirer also acknowledged that coins on centralized exchanges and hardware wallets are not in danger.

 

Unreasonable Solana RPC Node Failures

Additionally, when specific RPC nodes began ping offline, the exploit worsened. This suggested that the Solana network was down, which increased the heated tone on Twitter.

A purported counter-attack on the hacker is the cause of this. The argument states that to slow down the hack, the developers need to have launched many DDos assaults against the nodes. The precise reason for the failure is yet unknown, though it is concerning.

 

Cryptocurrency Hacks Are Increasing; How Can You Protect Yourself?

The Solana exploit no longer an exceptional circumstance. Yesterday saw the fourth-largest breach in cryptocurrency history. More than $190 million was taken from the Nomad Bridge due to an upgrade issue. As a result, hackers are increasingly targeting the cryptocurrency business. 

The fact that hardware wallets are almost immune to hacks is awe-inspiring. That is why the phrase “Not your keys, not your coins” became popular in the cryptosphere. Therefore, you should consider using a hardware wallet if you want to be completely safe and shield your money from hacker assaults or bankruptcy. Only those who store their monies secretly will have a reasonable likelihood of avoiding such occurrences.