Connect with us

Crypto News

Learn How To Defi Part 2

Published

on

Let’s continue learning Defi in part 2 and also reference my Notion page here. 

TL;DR

Here is the layout:

CeFi vs. DeFi 

How to determine Defi?

DeFI Infrastructure

Blockchain and Cryptocurrency

Before Bitcoin (Pre-2008)

Before Defi (Pre – 2013): Proof of Work (PoW) vs. Proof of Stake

Defi (2013 – Present)

CeFi vs. DeFi 

CeFi is permission, custodial, centralized trust and governance and requires real identity.

DeFi is permissionless, non-custodial, decentralized trust/trustless and governance, pseudonymous 

How to determine Defi?

To determine if it is Defi, ask 3 questions:

  • are the financial assets controlled by the user?
    • no → CeFi (Centralized Finance)
    • yes → move to the next question
  • can someone single-handily censor a transaction execution?
    • yes → CeFi Intermediary, DeFi Settlement (i.e. BlockFi)
    • no→ move to the next question
  • can someone single-handily censor the protocol execution?
    • yes → Centrally governed DeFi (i.e. Tether)
    • no → DeFi

DeFI Infrastructure

Blockchain and Cryptocurrency

Blockchain is DeFi’s backbone which makes DeFi decentralized.

Blockchain is a technology/software protocol to transfer digital information (no necessary money) among multiple parties under shared assumptions and data without trusting each other.

Before Bitcoin (Pre-2008)

The original PoW idea was to fight for Junk Mail through Denial-of-Service-Attack (DDoS) in 1993. But the term Proofs of Work was mentioned in the paper published in 1998.

One possible test run of the blockchain system before Bitcoin is HashCash that invented by Adam Back.

HashCash was eventually failed in 2004 due to a lack of financial feasibility to spend more than preventing spamming emails and waste a huge amount of CPU power after cycle 1,000 times.

Satoshi Nakamoto invented Bitcoin in 2008 through his Bitcoin White Paper that utilized PoW through its trustless and distributed consensus mechanism.

According to Satoshi Nakamoto himself, Bitcoin works only because its valuation has been increased enough to be worth mining for.

Before Ethereum (Pre – 2013): Proof of Work (PoW) vs. Proof of Stake

After Bitcoin was released, many argued that Proof of Work is not sustainable in the long term when the input of energy will eventually cost more than its own valuation to produce.

After the Bitcoin price collapsed in 2011, another pseudo-author Sunny King proposed a solution so-called Proof of Stake in 2012 and released its own token named PPCoin or PeerCoin. The author pointed out that the solution to a cryptocurrency long-term energy-efficient is to remove energy consumption dependency and replace it with Proof of History or even Proof of Excellence.

The following year of 2013, Sunny King proposed another solution for Bitcoin to transit from its Proof of Work into Proof of Stake called Primecoin. The key takeaway is that it will keep the Proof of Work mechanism through improvement on searching for prime numbers to complement the Proof of Stake design.

We all knew that both coins (Peercoin and Primecoin) were still existed today but less known in public. However, those ideas were borrowed by Ethereum and its future to move forward. Also, Proof of Stake may become a solution of sustainability for cryptocurrency in the future (source).

Ethereum/Defi (2013 – Present)

A key ingredient of DeFi is Ethereum’s smart contract platform that pushes beyond a simple payments network that Bitcoin was proposed in 2008 by Satoshi Nakamoto.

Ethereum introduced Smart Contract in 2013 and it is a code that allows users to trustlessly encode rules of any type of transition and create scare assets with specialized functionality. Of course, the smart contract goes beyond finance (here).

A bit of smart contract history, the idea came from Nick Szabo’s article in 1996 but he had an idea back in 1994 and created a Bit Gold in 1998. People widely believed he might be Satoshi Nakamoto and Bit Gold was the most closed form of Bitcoin which later widely successfully adopted and become a mainstream cryptocurrency.

Stay tuned for the next cheatsheet!

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Crypto News

Paraguayan Cryptocurrency Law Shelved After Presidential Veto – Regulation Bitcoin News

Published

on

paraguay crypto law veto paraguayan


The cryptocurrency and mining law that the Paraguayan Congress passed in June was finally shelved on Dec. 5. The document, which sought to bring order to crypto mining and exchange activities in Paraguay, was ultimately dropped after failing to obtain the votes needed to reject the presidential veto it received.

Paraguayan Crypto Law Dropped After Support Wanes

The Paraguayan cryptocurrency law that was introduced in Congress in 2021 was finally shelved after not receiving the support it needed in the Deputy Chamber. The project, which was vetoed in September by President Mario Abdo, failed to gather the votes needed in order to reject this veto.

The veto had previously been rejected by the Paraguayan senate, which aimed to approve and pass the law without presidential support. The veto had the support of the Commission for Industry, Commerce, Tourism, and Cooperatives; while the Economic and Financial Affairs, and the Fight against Drug Trafficking, Related and Serious Illicit Activities commissions rejected the motion.

Some deputies questioned the veto, stating that the cryptocurrency issue must be studied and regulated due to its importance. In this vein, deputy Sebastian Garcia criticized this outcome, stating that with this move, the cryptocurrency subject will remain in an “absolute informality.”

Reasons for Supporting the Veto Motion

One of the biggest reasons wielded by President Mario Abdo and other deputies to exert a complete veto on this bill has to do with the determinations it makes about the power delivered to cryptocurrency miners. Abdo stated that cryptocurrency mining was an activity featuring “high consumption of electrical energy, but little use of labor.”

Also, the law established limits for the fees that crypto miners pay for the power delivered to their operations. This would clash with the method of determining power tariffs by the National Power Administration (ANDE), an organization that also supported the veto measure after having found several cryptocurrency farms that were connected illegally to the power network.

Deputy Arnaldo Samaniego argued that rejecting the veto motion would put ANDE in a tight spot, facing potential losses of up to $30 million. Deputy Jose Rodriguez also supported this position, explaining that the organization could not operate with losses derived from this law.

This development puts the cryptocurrency regulation efforts in Paraguay back at square one, with legislators having to once more propose and discuss a hypothetical new cryptocurrency law.

What do you think about the final destiny of the cryptocurrency and mining law in Paraguay? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

(function(d, s, id) {
var js, fjs = d.getElementsByTagName(s)[0];
if (d.getElementById(id)) return;
js = d.createElement(s); js.id = id;
js.src=”https://connect.facebook.net/en_US/sdk.js#xfbml=1&version=v3.2″;
fjs.parentNode.insertBefore(js, fjs);
}(document, ‘script’, ‘facebook-jssdk’));



Source link

Continue Reading

Crypto News

Orbeon Protocol (ORBN) Envisioned To Spring Up Alongside Crypto Majors Like BNB

Published

on

Orbeon Protocol (ORBN) skyrockets in presale; could outpace Cronos (CRO) and Monero (XMR)


Advertisement


&nbsp

&nbsp

Orbeon Protocol (ORBN) and crypto majors are all predicted to ascend in value in 2023. Analysts expect ORBN to shine the brightest and have net returns of up to 60x. Orbeon Protocol is changing the game since its features will enable everyone to participate in early-stage acquisitions. After a rise in demand, ORBN’s presale has reached its third round.

Orbeon Protocol is a unique crowdfunding and venture capital project that aims to change the way crowdfunding and venture capital are usually done. Orbeon Protocol makes it easy for companies and startups looking for funding to connect and build communities.

Orbeon Protocol uses blockchain technology to mint NFTs representing investments based on a business opportunity. By dividing the NFT into smaller pieces, it lowers the barrier to entry so that anyone can buy into startups for as little as $1. This makes it easy for people to invest in new and exciting projects.

This has generated significant interest from both retail and institutional investors. ORBN token has rallied since its presale started, with its current price at $0.0302. Experts believe the token’s value will climb due to its various use cases and the increasing demand for equity-based NFTs.

ORBN token will let people get rewards for participating in the network. Orbeon Protocol has several benefits, such as staking, community governance, access to VIP investor groups, lower trading costs, and early access to funding rounds.

Advertisement


&nbsp

&nbsp

Binance has consistently been one of the top exchanges in daily trading volume and has a strong reputation in the crypto community. Binance gained significant attention from traders due to its strong performance and wide range of trading options.

BNB is the native token of the Binance cryptocurrency exchange. The token is used to pay transaction fees on the Binance platform and can be traded on the exchange like any other cryptocurrency.

Experts believe that Binance’s strong performance and focus on customer experience will continue to drive the demand for the BNB token in 2023. The current price of BNB is $288.5, and many believe it will continue to rise in value as more and more users turn to Binance for their cryptocurrency trading needs.

Find Out More About The Orbeon Protocol Presale

Website: https://orbeonprotocol.com/

Presale: https://presale.orbeonprotocol.com/register 

Telegram: https://t.me/OrbeonProtocol


Disclaimer: This is a sponsored article, and views in it do not represent those of, nor should they be attributed to, ZyCrypto. Readers should conduct independent research before taking any actions related to the company, product, or crypto projects mentioned in this piece; nor can this article be regarded as investment advice.



Source link

Continue Reading

Crypto News

Starbucks Launches Beta of Web3 ‘Odyssey’ Loyalty Program

Published

on

Starbucks Launches Beta of Web3 'Odyssey' Loyalty Program



The popular coffee chain opened up the Web3 extension to its Starbucks Rewards program to a “small group of waitlist members,” including employees and customers, allowing them to engage in interactive “Journeys” that earn “Journey Stamps” in the form of Polygon-based NFTs. In addition, users also get “Odyssey Points” that will open access to new benefits and experiences in the future, including virtual espresso martini-making classes, exclusive events and trips to Starbucks roasteries and coffee farms.



Source link

Continue Reading

Trending