What are storage tokens and how do they work?

What are Storage Tokens?

Storage tokens are digital assets that prove ownership of data stored on a decentralized storage network. Similar to how an account confirms ownership of a purchased product, storage tokens confirm your right to access and use the stored data. This means that you can retrieve your data at any time and even sell or transfer ownership to another person. Like other cryptocurrencies, storage tokens can be bought and sold on different exchanges, and their value depends on the demand for storage space.

Source: cointelegraph

How to get storage tokens?

You can acquire storage tokens in several ways through decentralized storage platforms. One way is to provide your own storage space to the network, which you can do by running a node on your computer or server. To get started, you need to download the platform’s app, register, and connect your storage device, such as a hard drive, to the network. Once set up, the platform starts using your storage space, and in return, you get storage tokens to store other users’ data.

Another way to acquire storage tokens is to participate in the platform’s governance process. This can include voting on future decisions or contributing to the development of the platform, which often earns users rewards in the form of tokens.

Source: cointelegraph

What is decentralized storage and how does it work?

Decentralized storage distributes data across multiple computers or servers instead of relying on a single centralized server. This approach increases the privacy, security, and resilience of the system, reducing the risk of glitches or censorship.

However, there are also some drawbacks. If a large number of computers on your network stop working or become unresponsive, access to data can become difficult. In addition, because it is necessary to communicate with multiple computers, retrieving data can sometimes take longer.

Blockchain technology plays a key role in the functioning of decentralized storage. It secures data by encrypting it and organizing it into cryptographically linked blocks, making it secure and immutable. This makes it almost impossible for unauthorized access or modification of data.

Source: cointelegraph

Decentralized storage compared to traditional cloud solutions

Businesses and individuals often use centralized services to store large amounts of data. Traditional cloud platforms such as OneDrive or Dropbox store data on one or more servers managed by centralized organizations. While such solutions are practical, they come with certain risks.

Millions of users can lose their data in the event of technical problems or cyberattacks on these platforms. In addition, users’ privacy can be compromised if service providers sell or use their personal information without permission.

Decentralized storage platforms, which use blockchain technology, offer solutions to these problems. Distributing data across multiple nodes in a network reduces the risk of data loss and increases security. Users retain complete control over their information, without fear of being sold or altered by a centralized organization.

Some decentralized platforms also allow users to earn cryptocurrencies by sharing unused storage, making them a more secure and cost-effective alternative. While centralized storage has its benefits, decentralized storage is becoming increasingly popular among those looking for greater security, privacy, and financial rewards.

Fun fact: Decentralized platforms can reduce the environmental footprint of traditional cloud solutions by using pre-existing, unused storage space on individual devices.

Source: cointelegraph

Use a storage token

Storage tokens are widely used in various industries, which is why they have attracted a lot of attention in recent years. Here are some of the most common use cases:

File storage – Storage tokens like Filecoin allow users to store data securely and efficiently without relying on centralized providers. This ensures data integrity and easier access to information.
Data monetization – Tokens like Ocean Protocol and Arweave allow for more secure and transparent data sharing. At the same time, they give individuals and companies the opportunity to make money from their own data while maintaining control over it.
Decentralized applications (DApps) – Tokens like Holo (HOT) help DApp developers by providing a secure infrastructure for storing application data.
Supply Chain Management – Tokens like OriginTrail (TRAC) improve the transparency of supply chains by allowing for the secure storage of product origin data.
GameFi – Tokens like Chiliza (CHZ) allow players to securely store virtual items within games and exchange them with other players.

In summary, storage tokens have the potential to reshape the way we store and exchange data and offer more efficient solutions across a variety of industries.

Source: cointelegraph

How to Invest in Storage Tokens

Before investing in storage tokens, it is important to note that there is no completely safe investment and that this is not financial advice. As with all cryptocurrency investments, there is a risk of losing capital, so thorough research is recommended before making decisions.

Step 1: Market Research

The first step in investing in storage tokens is to understand the market. When choosing the right token, consider factors such as network activity, price growth potential, and ease of use. Each storage token has specific characteristics and is based on different technologies, so it is important to familiarize yourself with its application and the problems it seeks to solve.

When researching projects, pay attention to:

Team and development – Check the development team, their previous work and plans for the future.
Community and ecosystem – An active community often indicates a healthy project with a higher chance of success.
Partnerships and integrations – Strong collaborations with established companies can increase the credibility and market value of a project.

Step 2: Choosing an investment strategy

Depending on your financial goals and risk tolerance, you can choose from several investment strategies:

Long-term holding (HODL) – Buying and holding tokens with the expectation that their value will increase over time.
Active trading – If you have trading experience, you can take advantage of short-term price changes to make a profit.
Staking and yield farming – Some platforms offer the ability to lock tokens in exchange for rewards, earning you passive income.

Step 3: Participating in the ecosystem

In addition to classic investments, you can earn storage tokens by actively participating in their ecosystem:

Become a host or node – By providing additional storage space to the network, you can earn tokens, while validating transactions as a node contributes to the stability of the network.
Participate in governance – Some projects allow token holders to vote on the future development of the network, which can increase the value of your investment.

Fun fact: Some decentralized platforms allow you to earn tokens not only by providing storage space but also by sharing files with other users. The more people access your data, the more tokens you can earn.

Source: cointelegraph

Should you start using decentralized storage and earn storage tokens?

With the growing popularity of blockchain technology, users around the world can efficiently rent out their excess storage space. Decentralized storage, protected by encryption and based on peer-to-peer networks, not only increases global data storage capacity but also allows individuals to make money from unused hard disk space.

However, before deciding to participate, it is important to carefully consider the potential risks and benefits. Setting up and managing decentralized storage can be technically challenging, and the value of storage tokens varies depending on market demand and available storage space.

Still, if you have extra storage space and are comfortable working with decentralized storage technologies, joining the network can be a good way to generate additional income.

Ultimately, the decision to use decentralized storage depends on your personal goals, risk tolerance, and technical knowledge.

We hope you enjoyed reading today’s blog, and that you learned something new and useful. If you have any questions, you can always contact us on our social networks ( Twitter , Instagram ).

Confirm Bitcoin transactions

Simple understanding of Bitcoin certificates

In the traditional financial system, the process of confirming Bitcoin transactions can be compared to processing and settling checks. When you deposit a check, the bank temporarily credits the funds to your account, but they are not immediately available. The bank must first verify the validity of the check and ensure that the issuer has sufficient funds. This process involves multiple steps and can take several days, as the check goes through different banking institutions. Only after all the steps have been completed, the transaction is considered final, and the funds are fully available.

Similarly, when a Bitcoin transaction is initiated, it is broadcast to the network but remains unconfirmed until miners include it in the block. Each new block added to the blockchain brings additional confirmations, further ensuring the validity of the transaction. Just as a check requires multiple steps in order to be processed, a Bitcoin transaction needs multiple confirmations to be final and secure.

Did you know? Bitcoin transaction fees are paid by the sender and are determined by the size of the transaction data rather than the amount being sent. This means that sending 1 BTC can have the same fee as sending 100 BTC, provided that the size of the transaction data is identical.

Source: cointelegraph

Bitcoin Wallet Verification Process

When a user initiates a Bitcoin transaction through a wallet, the entire process from creation to confirmation goes through several key steps:

Creating a transaction: The user enters the recipient’s Bitcoin address and the amount they want to send. The wallet software then constructs a transaction that includes inputs (the user’s unspent Bitcoin) and outputs (the recipient’s address and possible balance that is returned to the sender).
Digital signature: The wallet uses the user’s private key to digitally sign the transaction, ensuring its authenticity and preventing unauthorized modifications.
Broadcasting to the network: The signed transaction is sent to the Bitcoin network and enters a pool of unconfirmed transactions known as a “mempool”.
Verification by nodes: Bitcoin nodes check the transaction structure, signatures, and ensure that inputs have not already been used. Valid transactions remain in the mempool until they are included in the block.
To join the block: Miners select transactions from the mempool, prioritize them (often based on the transaction fee), and try to include them in the next block by solving a complex mathematical problem to find the appropriate hash.
Confirmation: When a miner successfully adds a block with a transaction to the blockchain, the transaction receives its first confirmation. Each subsequent block that is added to the chain brings additional confirmations, further securing the transaction.

Throughout this process, Bitcoin wallets provide users with updates on the status of the transaction. The most common indicators include:

Pending/Unconfirmed: The transaction has been created and sent to the network, but it has not yet been included in the block.
Confirmed: The transaction is included in the block and has received at least one confirmation.
Number of certificates: Most wallets display the number of confirmations a transaction has received – the more of them, the more secure and final the transaction.

Did you know? Users can track the progress of their transactions using the Unique Transaction Identifier (TXID), which is provided by the wallet. By entering the TXID into the blockchain explorer, it is possible to see detailed information about the transaction, including its status and confirmation number.

Source: cointelegraph

Blockchain Validations vs Blockchain Finality Explained

In the Bitcoin network, certificates indicate the number of blocks added to the blockchain after the block in which a particular transaction is located, thus increasing its security. On the other hand, the finality of a transaction refers to the moment when the transaction becomes irreversible and permanently recorded.

It is important not to confuse these two terms.

On the Bitcoin network, certificates are probabilistic – each new confirmation makes it even more difficult to reverse the transaction, gradually increasing its finality. For example, a Bitcoin transaction is generally considered final after six confirmations, which usually takes about an hour.

However, there are other forms of finality that are characteristic of different blockchain networks:

Deterministic (absolute) finiteness: Some blockchains achieve immediate and irreversible finality of transactions through consensus mechanisms that allow for instant confirmation. Once a transaction is validated and added to the blockchain, it can no longer be modified or undone. This approach is used in networks with algorithms such as practical Byzantine fault tolerance (pBFT). For example, Algorand uses such mechanisms to ensure instant and irreversible confirmation of transactions.
Economic finality: In proof-of-stake (PoS) systems, economic finality is achieved by making the return of transactions financially unprofitable. Validators must stake a certain amount of cryptocurrency as collateral. If they try to confirm fraudulent transactions, they risk losing the amount invested, which deters them from engaging in malicious behavior. This economic protection ensures that once confirmed transactions remain valid permanently.

Source: cointelegraph

Bitcoin Transaction Confirmation Time in 2025 |

The average confirmation time for Bitcoin transactions depends on several factors, including network congestion, block size, transaction fee dynamics, and network scalability.

Factors affecting confirmation time:

Network congestion: The increased popularity of Bitcoin leads to a higher number of transactions, which can cause network congestion. This results in unconfirmed transactions lagging and longer wait times for confirmation.
Block size limits: Bitcoin blocks have a size limit of 1 megabyte, which limits the number of transactions that can be included in each block. During periods of high traffic, this limitation can contribute to delays in processing and confirming transactions.
Dynamics of transaction fees: Miners often prioritize transactions with higher fees. Users who attach lower fees to their transactions may experience longer confirmation times, especially during network congestion when competition for block space is more intense.
Scalability Challenges: The design of the Bitcoin network faces scalability challenges. The combination of fixed block sizes and 10-minute intervals between blocks limits the system’s capacity to efficiently process an increasing number of transactions, leading to an increase in confirmation time.

Source: cointelegraph

Strategies for Fast Bitcoin Transaction Confirmation

Sometimes it is important that Bitcoin transactions are confirmed as soon as possible – for example, when trading or time-sensitive purchases. In other cases, such as personal transfers, longer waits are not a problem. Understanding when speed is key can help you plan your transactions better.

Set the appropriate fee or risk delays

Miners prefer transactions with higher fees. If you don’t include enough compensation, your transaction can stay in the mempool for hours or even days. In extreme cases, it can remain unconfirmed and never enter the block. Most wallets offer fee recommendations based on current network conditions, so it’s helpful to keep track of them.

How to Speed Up Slow Transactions with Wallet Options

If you’ve already sent a low-fee transaction and it’s stuck, there are ways to speed it up:

Replace-by-Fee (RBF): This option allows you to resend the same transaction for a higher fee, increasing the chance of faster confirmation.
Child-Pays-For-Parent (CPFP): If you have a stuck transaction, you can send a new (so-called “child” transaction) with a high fee. Miners will then process both together to earn more fees.

Source: cointelegraph

The Future of Bitcoin Transaction Confirmation

The Bitcoin community is actively working to solve the problem of increasingly long transaction confirmation times. In addition to the already implemented Layer-2 solutions, such as the Lightning Network, and significant upgrades, such as SegWit, the Bitcoin network is expected to receive even more advanced scalability mechanisms in the future.

Possible solutions for faster confirmations:

Rollup technologies: Rollups process multiple off-chain transactions and then group them into a single transaction on the main Bitcoin blockchain. This significantly increases throughput and reduces fees, while security is maintained by the final settlement on the main chain.
New State Channels: State channels allow two parties to perform numerous transactions outside the blockchain, with only the initial and final transactions recorded on-chain. This reduces network congestion and speeds up the transfer of funds.
Sidechain solutions: Sidechains work in parallel with the main Bitcoin blockchain, allowing funds to be transferred between networks. They make it easy to experiment with new features and can process a greater number of transactions without burdening the main network.

While Bitcoin is evolving to remain relevant in the world of new blockchain solutions with an extremely fast and deterministic finality, only time will tell if these improvements will be enough to maintain its dominant role.

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Layers of the blockchain

What is the difference between Layer 1 Layer 2 and Layer 3 blockchain?

The difference between Layer 1, Layer 2, and Layer 3 blockchains lies in their role and functionality within the blockchain ecosystem. Layer 1 (L1) represents the basic layer of infrastructure, i.e. the blockchain network itself, such as Bitcoin or Ethereum. This layer is responsible for key functions such as the consensus mechanism, security, and on-chain transactions. Layer 2 (L2) is an upgrade to L1 that improves scalability and transaction processing speed without changing the underlying architecture. An example for L2 are solutions such as the Lightning Network on Bitcoin or zk-rollups on Ethereum. Layer 3 (L3) refers to the application layer, where decentralized applications (dApps) and various blockchain tools provide end-users with functionality, relying on L1 stability and L2 efficiency.

Source: cointelegraph

Layer 1 (L1)

Layer 1 (L1) blockchains are the base layer where blocks are added and transactions are finalized, this layer provides a secure foundation for the entire network. These decentralized networks rely on consensus mechanisms such as proof-of-work (PoW) or proof-of-stake (PoS) to validate transactions. L1 blockchains are independent of any other network, making them the underlying infrastructure of the blockchain. While they ensure the security and validation of transactions, they often face the problem of overload due to the large number of transactions. In addition, they face the so-called blockchain trilemma, where it is difficult to achieve an optimal balance between scalability, decentralization, and security.

Source: cointelegraph

Layer 2 (built on top of Layer 1)

This layer is a secondary protocol that enhances the functionality of the base layer without the need to function as a separate blockchain. These solutions, such as state channels, rollups, and sidechains, are designed to mitigate Layer 1’s scalability issues. Through off-chain calculations and periodic confirmation of transactions on the main chain, Layer 2 enables faster transaction processing and reduced costs, without compromising on security. While it significantly improves scalability, L2 may be limited by interoperability issues between blockchains and the ability to customize specific solutions.

Source: cointelegraph

Layer 3

This layer functions as an application layer that uses the functionalities of the core Layer 1 and the upgrades of Layer 2. Layer 3 enables even greater scalability, increasing the number of transactions, enabling custom applications, and encouraging efficient and cost-effective financial transactions by combining various consensus algorithms such as proof-of-stake (PoS) and proof-of-authority (PoA), while ensuring network performance, decentralization, and security. Its key feature is to enable communication and interoperability between different blockchain networks without intermediaries. With advanced protocols and cross-chain bridges, Layer 3 opens the door to decentralized finance (DeFi), asset tokenization, and cross-border payments. Although Layer 1 provides the highest degree of decentralization, Layer 3 inherits moderate decentralization from Layer 2, with an emphasis on communication between different blockchains through interoperable protocols.

Source: cointelegraph

How does layer 3 work?

Layer 3 blockchains use off-chain computations and new consensus mechanisms to achieve scalability and interoperability for decentralized applications (dApps). They rely on the security and transactional capabilities of Layer 1 and Layer 2, and add advanced smart contract features. Scalable solutions like state channels and sidechains allow Layer 3 to perform complex off-chain computations while maintaining the security of the underlying blockchain. Layer 3 improves interoperability by enabling communication between different blockchains through protocols such as inter-blockchain communication (IBC), facilitating the interaction of dApps, including decentralized finance (DeFi) and non-fungible tokens (NFTs) developed on different blockchains. Within the Layer 3 architecture, virtual machines enable multiple dApps to be run through smart contracts, while Validium uses zero-knowledge proofs to validate off-chain transactions, reducing transaction costs and time. Rollups, on the other hand, group multiple transactions into a compressed structure and periodically send them to Layer 1, improving scalability without compromising security. Innovative consensus mechanisms, such as proof-of-stake (PoS) and delegated proof-of-stake (DPoS), further improve the efficiency and scalability of Layer 3.

Source: cointelegraph

What is Layer 3 used for?

Layer 3 blockchains are widely used in various industries where they enable scalability, interoperability, and low transaction costs. In gaming applications, Layer 3 enables the processing of a large number of transactions per second, reducing costs for users and developers, which is crucial for games with frequent transactions. In the DeFi sector, Layer 3 fosters liquidity and innovation by connecting different DeFi protocols, enabling secure and decentralized asset exchanges between blockchains. Layer 3 also improves supply chains by enabling product tracking through data sharing and verification between blockchains. In business applications, L3 offers scalability and optimized transactions, making it suitable for high volumes of low-cost transactions. The development of decentralized applications (dApps) on Layer 3 allows developers to build multichain applications with more advanced functionalities and a better user experience. For NFT applications, Layer 3 facilitates multichain markets, allowing NFTs to be traded across different blockchains. In security applications, Layer 3 offers a unique identity layer that reduces the risk of attacks and simplifies fraud detection, especially in the DeFi sector. In short, the scope of application is huge.

Source: cointelegraph

The Future of Layer 3

As the adoption of innovative technologies expands, Layer 3 blockchains face challenges in integrating and compatibility with the existing layered blockchain architecture. The development of interoperability solutions and the creation of common standards will be key to further adoption and innovation. While Layer 3 offers greater scalability, challenges remain in maintaining security and decentralization, especially as transaction volumes and the number of users grow. Maintaining a balance between decentralization and performance will be critical to the stability and durability of Layer 3. Layer 3 regulation at the international level is also an obstacle, so cooperation with regulators will be key to creating transparent and flexible frameworks that support innovation. The future success of Layer 3 will depend on addressing scalability and interoperability issues and its potential to transform various industries and advance decentralized ecosystems. Educating users and developers about the benefits and challenges of this technology will be key to driving adoption and further innovation, especially in the DeFi sector.

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What is a USB Bitcoin miner and how does it work?

How does Bitcoin USB miner work?

USB Bitcoin miners are compact devices that connect directly to your computer’s USB port.
They are actually scaled-down versions of the larger ASIC miners used in traditional setups, but with much less power and processing capabilities.
When you connect a USB miner to a computer, it begins a trial-and-error process to encode transaction data into a hash (a process known as mining) that meets specific length requirements — the same task that larger miners perform.
Once a suitable hash is found, other miners on the network validate it, thereby adding a new block to the blockchain.
In return, the miner receives bitcoin as a reward.
In short, a USB miner works like any other (usually an ASIC machine), the only difference is that it has much lower power consumption, but also less processing power.

Source: cointelegraph

Profitability of Bitcoin USB Miner

When studying the profitability of USB Bitcoin miners, it is important to analyze the numbers to understand how realistic making a profit is.
One of the more popular USB miners on the market is the GekkoScience Compac F, which offers a hashrate of around 200 gigahashes per second (GH/s) and costs between $120 and $150.
Although it is affordable, its profitability is modest.
For example, with a hashrate of 200 GH/s, an electricity cost of $0.10 per kilowatt hour (kwh), and a current Bitcoin price of $58,000, the daily earnings are approximately $0.275, while the daily electricity costs are around $0.024, leaving a net daily profit of only $0.251.
According to these calculations, it takes almost a year and a half to recoup the money invested, provided that the complexity of mining does not increase and the price of Bitcoin remains stable, which is unlikely due to its volatility.
If we compare this to ASIC miners like the Antminer S19, which costs thousands of dollars but offers a hashrate of over 100 terahashes per second (TH/s), it’s clear that USB miners lag far behind in terms of earnings.
While an ASIC miner can bring in hundreds of dollars per month, the payback period is often under a year, depending on the cost of electricity and the price of Bitcoin.
From this, we can conclude that a USB miner like the GekkoScience Compac F is more of a hobby or educational tool than a serious source of income.

Source: cointelegraph

Best Ways to Use Bitcoin USB Miner

Apart from joining a mining pool, there are other best methods that you can apply to successfully use USB Bitcoin miners, which are beneficial not only for USB mining but for the entire industry.
One of them is to use multiple USB miners at the same time to increase the overall hash power.
While this won’t drastically increase profitability, it can increase your earnings slightly.
It is essential to ensure that your computer or USB hub can handle the energy and cooling needs of multiple devices.
Optimizing electricity costs is also crucial.
Although USB miners consume little electricity, any savings are important.
Start mining during periods of lower electricity prices if you have variable tariffs or use renewable energy sources to reduce costs.
Also, ensure adequate cooling, as USB miners can become surprisingly hot during continuous operation.
Good airflow and additional fans can help keep the temperature low, which extends the life of your devices.
Regular firmware updates are another important item, as manufacturers periodically release updates that can improve the performance or stability of the device.
If you use multiple USB miners, invest in a quality USB hub with enough power for each miner, avoiding cheap and unreliable versions.
Finally, be aware of the security risks.
Use proven mining software, watch out for phishing attacks, and protect your computer with an up-to-date antivirus program.
These methods will help you get the most out of your USB Bitcoin miner, whether you’re doing this as a hobby or just starting your mining education.

Source: cointelegraph

How to set up a Bitcoin USB miner?

Once you’ve acquired your USB Bitcoin miner, setting it up is pretty simple.
Here are the steps to follow:

Hardware: connect the USB miner to an available USB port on your computer.
If you are using multiple miners, it is recommended to use a powered USB hub, as these devices can consume a significant amount of power.

Software: You’ll need mining software like CGMiner or BFGMiner.
Download and install software that is compatible with your miner.
Most miners come with instructions on which software to use.

Configuration: after installing the software, configure it to connect to the selected mining pool.
You’ll need the pool URL, worker ID, and password.
The software will also look for settings like your miner’s hashrate.
You can find this information in your device’s specifications.

Cooling: The USB miner can get very hot.
Consider adding a small fan to keep temperatures low and ensure optimal performance.

Overclocking: Some miners allow overclocking for better performance, but this can increase heat output, so be careful.

Some USB miner devices may experience recognition issues or reduced performance.
To avoid these problems, make sure your USB port or hub is working properly.
Try plugging the miner directly into your computer to rule out hub issues.
If the hashrate is less than expected, double-check the settings and make sure your computer isn’t overloaded with other tasks.

Source: cointelegraph

Conclusion

As we have explored, USB Bitcoin mining represents a niche within the wider crypto market, attracting mainly people who decide to pursue it as a hobby and those who are interested in the technical side of mining.
As technology advances, USB miner devices are likely to experience incremental improvements in efficiency and hashrate.
However, their role in the overall mining ecosystem is likely to remain limited due to their lower power compared to larger ASIC miners in an ever-growing market.
Looking to the future, USB miners could continue to serve as educational tools, offering a practical introduction to the world of Bitcoin mining.
Whether they will integrate with other devices — perhaps even as add-ons to existing technologies like smart home systems — is still uncertain.
So, while you won’t make a huge amount of money with USB Bitcoin mining, this type of mining provides a fascinating insight into the world of cryptocurrencies and the opportunity to participate in the Bitcoin network, no matter how small your contribution.
We certainly hope that you have learned something new in this blog, and that we have interested you in the topic of Bitcoin mining. If you have any questions, you can always contact us on our social networks ( Twitter , Instagram ).

What is Ethereum’s “Pectra” upgrade?

What is the Ethereum Prague-Electra (Pectra) upgrade?

Ethereum’s “Pectra” upgrade is a combination of two separate upgrades: “Prague” and “Electra”.
While the “Prague” upgrade focuses on changes within the main execution layer of the network, the “Electra” upgrade affects the consensus layer.
This joint upgrade, known as “Pectra,” follows the “Dencun” hard fork, which was successfully implemented in March 2024 and aimed to reduce transaction costs and improve Ethereum’s scalability. “Pectra” is planned to become a new key step in the development of Ethereum during the first quarter of 2025.
year, with the aim of further improving the user experience by introducing some new features.

Source: cointelegraph

Features and Benefits of Pectra Upgrade

The Pectra upgrade brings a number of minor but significant improvements to the consensus and execution layer of the Ethereum network.
One of the key changes is the introduction of EIP-7251, which increases the maximum stake for validators from the current 32 ETH to 2048 ETH.
This change allows staking providers to consolidate their roles into a smaller number of validators, which reduces the number of transactions that must be sent through the network, thereby reducing the pressure on the network’s communication layer and potentially improving its efficiency and performance.
In addition, the Pectra upgrade brings PeerDAS and improvements for rollups, which expand the possibilities of optimizing data storage in Ethereum layer-2 networks.
This includes the use of “blobs”, introduced through EIP-4844, to increase block space and reduce transaction costs.
Advancements in the Ethereum Virtual Machine (EVM), such as EOF, will further enhance the user experience as well as the developer experience, improving performance on layer 1 and layer 2, making Ethereum more efficient and secure for all users.

Source: cointelegraph

What are EIPs (EIPs)? Ethereum Improvement Proposals?)

EIPs (Ethereum Improvement Proposals) are a key part of the development of the Ethereum network and how upgrades are implemented.
An EIP is a proposal or standard that describes potential new features, improvements, or processes for the Ethereum blockchain.
It contains technical specifications for proposed changes and, according to Ethereum.org, serves as a “source of truth” for the community.
Upgrades to the Ethereum network begin as proposals in the form of EIPs, which are then discussed and developed by the developer community.
Any member of the community can create an EIP, and the author of the proposal is responsible for reaching an agreement with the community and documenting any opposing opinions.
If the proposal is accepted, it is implemented in network upgrades, such as Dencun and Pectra, which consist of a series of EIPs that must be implemented by all Ethereum clients on the network.

Source: cointelegraph

Ethereum Development Plan

Ethereum’s development after switching to a proof-of-stake (PoS) consensus mechanism in September 2022.
It takes place through five phases: Merge, Surge, Verge, Purge and Splurge, according to the plan presented by Vitalik Buterin.
Following the Dencun upgrade in March 2024, the next step in this development trajectory is Pectra, which is scheduled for 2025.
year.
Although Pectra is considered a relatively minor upgrade, the Ethereum development team decided not to rush its release before Devcon in November 2024.
to enable more effective monitoring and evaluation of changes.
After the Pectra upgrade, the implementation of “Verkle trees”, a new data system that will allow Ethereum nodes to store large amounts of data with reduced hardware requirements, is expected.
This upgrade, planned for later in 2025, will be part of the “Verge” development phase and will bring significant changes to the efficiency and user experience of the Ethereum network.

Source: cointelegraph

Conclusion

Ethereum’s development continues according to a set five-stage plan, which aims to advance the network and improve the user experience.
The Pectra upgrade, scheduled for 2025, represents an important step in that process, bringing key improvements to the consensus and execution layer.
Although it is relatively smaller compared to upcoming changes such as Verkle trees, Pectra will allow you to optimize the staking process and improve the scalability of the network.
These upgrades continue Ethereum’s journey towards greater efficiency, security, and accessibility, preparing it for future challenges and user demands.
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Genesis block – the fundamental block of every blockchain

What is the Genesis Block and what is its significance?

The genesis block, is a key element of any blockchain that runs the network by establishing ground rules, and linking all future blocks to a starting point. In proof of work (PoW) blockchains, a genesis block is the first block ever mined and serves as the foundation for all subsequent blocks, usually embedded in the protocol and created by the creators of the blockchain. This block does not go through the traditional mining process because there are no previous blocks to refer to. On the other hand, in proof of stake (PoS) blockchains, the genesis block is created by developers and/or validators who run the network according to specific protocol criteria. Historically, the first genesis block was created by Satoshi Nakamoto in 2009. year at the launch of the Bitcoin network, thus establishing the foundations for the most valuable cryptocurrency in the world. The Genesis block is crucial for the initialization of the blockchain because it cryptographically connects all subsequent blocks, allowing trust in an immutable ledger of transactions. It sets initial parameters such as mining difficulty and block rewards, thus ensuring a secure and reliable start of the blockchain network. Without it, the blockchain would not have a stable foundation for permanently recording transactions.

Source: cointelegraph

Bitcoin Genesis Block

Bitcoin’s genesis block, known as block 0, represents the fundamental block of all blockchain technology. Created by an anonymous creator, Satoshi Nakamoto, this block was mined on 3. January 2009. years and does not contain a reference to previous blocks, which makes it unique. It contains a message that probably served as proof that the bloc was created after that date, but also as a commentary on the instability caused by fractional banking: “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks”. This message reflects the initial vision and purpose of Bitcoin in response to financial crises and the systems that made them possible, and offers Bitcoin as a decentralized alternative. The reward for mining the first block was 50 BTC, but due to the specifics in the code, this reward is not expendable. The Bitcoin Genesis block not only ushered in a new era of digital currency, but also laid the groundwork for the development of decentralized systems that are changing the world of finance today.

Source: cointelegraph

Genesis Block in other cryptocurrencies

Although the concept of genesis block is universal for all cryptocurrencies, each of them has its own unique story or hidden message within its genesis block. For example, Bitcoin’s genesis block contains the famous message: “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks”, which reflects the reasons for the creation of Bitcoin during the 2009 financial crisis. Year2. Similarly, other cryptocurrencies are using their genesis block to send messages or lay the groundwork for their vision of a decentralized financial system1. The Genesis block is, therefore, more than a technical element; It is a symbol of the beginning of a new era of digital economy and data autonomy.

Source: cointelegraph

Genesis Block Structure

The genesis block lays the groundwork for the blockchain by establishing a format for data and a structure that all future blocks will follow. It contains basic information such as timestamp, block hash, previous block hash, nonce, and block reward address. The timestamp indicates when the block was created, while the previous block hash is zero because the previous block does not exist. In PoW blockchains like Bitcoin, the nonce is changed to find a valid block hash that satisfies the target weight of the network. The address for the block reward indicates where to send the block reward, although this works differently in the initial block compared to later blocks. The block structure includes the block header and body. The header contains metadata like version, timestamp, target weight, Merkle root hash, and nonce. The body contains all the transactions in that block, which is only a reward transaction for the creator of the initial block in the newly launched networks. This standard structure forms a template for the chronological sequence of blocks that follow, establishing the principle for validating transactions, adding new blocks, reaching consensus, and growing the chain. It is also not uncommon for the initial blocks to carry encrypted messages or references, adding symbolic or commemorative meaning to the block.

Source: cointelegraph

What after the Genesis Block?

The Genesis block launches the network, after which confirmations, incentives, and weight adjustments allow decentralization to grow, consensus, and mining so that the blockchain can evolve. Once the block is established, the blockchain network can be formally launched. This milestone opens up public participation and triggers a process of consensus and decentralization. After the launch, the blockchain begins to build on the basis of the genesis block. As an inaugural block, the genesis block is automatically accepted by network nodes as valid, but does not require confirmations in the traditional sense as transactions or later blocks do. The following blocks reference the hash genesis of the block, establishing an unbroken chain that connects to the starting point of the network. With the confirmation of the genesis block, miners compete to add new blocks. As blocks are added, additional confirmations are collected for previous blocks, thereby solidifying the durability and security of the blockchain. New coins are issued through block rewards, and transactions are confirmed. The weight of the network is dynamically adjusted based on activity to maintain the rhythm of block creation. More miners and higher participation increase competition and weight, while lower activity reduces the target weight. This fluctuation ensures the self-regulation of the blockchain. After the genesis block, the blockchain grows organically through decentralization, consensus mechanisms, and incentive mining. The number of transactions increases rapidly as the network grows. In the case of cryptocurrencies, the value rises as trust in the network strengthens. Coins acquire monetary value according to the market dynamics of supply and demand. Speculation, trading, and real utility drive investment and participation, all of which were driven by genesis block. We hope you enjoyed it and learned something new, if you have any questions or suggestions, you can always contact us on our social networks (Twitter, Instagram).

Blockchain Scalability and Block Size

What is block size and why is it important?

Block size is a key factor in optimizing the storage, speed, and cost of transactions in blockchain technology. Block size refers to the amount of data that is processed or transmitted in a single segment within a computer system or storage device, serving as the fundamental unit for storing and accessing data. In context, smaller blocks reduce unused space, thereby increasing memory usage efficiency. In contrast, larger blocks can speed up data transfer, which is especially useful when working with large files. In the blockchain world, block size has a significant impact on the performance and structure of the network. Blocks contain a set of transactions, and their number depends on the size of the block. Larger blocks allow multiple transactions to be processed at once, thereby increasing the bandwidth of the network. However, this can also lead to higher resource requirements and longer verification times, which reduces the decentralization of the network. On the other hand, smaller blocks can encourage decentralization, making it easier for more nodes to access the network due to their lower resource requirements. Because of this, block size is a subject of debate in the blockchain community, where developers seek to strike a balance between security, decentralization, and scalability.

Source: cointelegraph

What is Scalability?

Scalability in blockchain refers to the network’s ability to adapt and efficiently manage an increased number of transactions and users, while maintaining its key characteristics such as decentralization and security. This concept is essential because it allows the blockchain to maintain a high level of performance despite the growing load, which is crucial for its wider adoption and adoption. Mismatches in scalability can lead to issues such as network bottlenecks, slower transaction confirmation, and higher transaction fees, which can limit the practical use of blockchains. Therefore, solutions that improve scalability, such as Level 2 (L2) solutions, play a critical role in overcoming these challenges. L2 solutions, lighten the load on the main chain, enabling faster and cheaper transactions. Especially on platforms like Ethereum, where high transaction prices and congestion are common problems, L2 solutions are essential to improve scalability. They enable wider adoption of blockchain technology through various decentralized applications (DApps), making the user experience more efficient. Scalability, therefore, is key to the sustainability and evolution of the blockchain ecosystem.

Source: cointelegraph

The link between scalability and block size

In blockchain technology, block size and scalability are interrelated and together affect the network’s ability to process an increasing number of transactions. For example, Bitcoin originally had a block size limit of 1MB, which has become too small over time due to the increased demand for transactions. To improve scalability, Bitcoin Cash, which originated as a fork of Bitcoin, increased the block size to 8MB, allowing for more transactions to be processed per block. However, increasing block size also comes with certain trade-offs, such as the need for more bandwidth and storage capacity, which can lead to centralization as only nodes with adequate resources can efficiently process larger blocks. Therefore, the challenge lies in finding the right balance between block size and preserving the decentralized nature of the network. Ethereum introduced the concept of sharding, which involves dividing the network into smaller parts, or shards, that autonomously process transactions. This approach decentralizes transaction processing and reduces dependence on the performance of individual nodes, thereby increasing the overall efficiency and scalability of the network. In such a model, the size of a single block becomes less important, while scalability is achieved through the combined bandwidth of multiple shards that together contribute to a higher transaction processing capacity of the network. This allows the blockchain to scale horizontally, which is crucial for supporting a wider range of applications and a larger number of users. However, in terms of decentralization itself, Bitcoin has reached the highest degree and it seems that we will never create a blockchain with a greater degree of decentralization.

Source: cointelegraph

Finding the optimal block size

Finding the optimal block size in the blockchain requires a multi-layered approach that balances the technical needs and preferences of the community. Development teams implement adaptive block size algorithms that automatically adjust according to current network conditions, increasing or decreasing the block size depending on demand. This dynamic adaptation ensures efficient use of resources and keeps the network functional. R&D is continuously working on innovations such as scaling solutions on Layer 2 (L2) networks, such as L2 networks for Ethereum or the Lightning network for Bitcoin. These methods allow for a large number of transactions without burdening the main chain, preserving decentralization and improving scalability. Community involvement is key; Decentralized governance models allow users to participate in decision-making about protocols, including block size. Open dialogue and consensus building ensure that decisions reflect the different interests within the community. Finally, data-driven analysis and continuous monitoring are essential to adjust the block size. Blockchain networks use user feedback and performance indicators for quick and timely adjustments, ensuring that changing user needs and technological advances are adequately adapted.

Source: cointelegraph

Conclusion

Achieving the optimal block size on the blockchain requires a complex approach that mostly involves technical factors. Technical solutions such as adaptive block size algorithms can dynamically adjust the block size according to the state of the network, ensuring efficient use of resources. At the same time, exploring new technologies such as second-level scaling solutions is important to address scalability issues without compromising decentralization. Community involvement through decentralized governance models allows users to collectively decide on changes to the protocol, including block size. Through open dialogues and data analysis, blockchain networks can continuously adjust block size to respond to changing user and technology demands. This comprehensive approach is crucial for achieving optimal block size that enables scalability, efficiency, and maintaining decentralization in blockchain systems. We hope that in today’s research on the correlation of block size and scalability, if you have any questions related to this, or any other topic, you can always contact us on our social networks (Twitter, Instagram).

Things you need to know about crypto exchanges

Introduction to crypto exchanges

Crypto exchanges are online platforms that enable buying and selling of cryptocurrencies. There are numerous types of crypto exchanges, from those that support fiat currencies (such as dollars or euros) to those that only offer crypto-on-crypto transactions. Some of the most famous and largest are Binance, Coinbase, Kraken, Huobi… However, exchange offices carry many risks. Over the years, numerous exchanges have experienced hacks, thefts, scams or bankruptcies that have resulted in the loss of billions of dollars in the value of user cryptocurrencies. Some of the most famous examples are QuadrigaCX, which is 2019. In 2022, it collapsed after the death of its founder, who was reportedly the only one with access to keys with $190 million worth of cryptocurrencies and FTX, which in 2022. In 2004, he filed for bankruptcy after experiencing a major liquidity crisis. These cases show that exchanges are not a safe place to store cryptocurrencies, and that users should put their money in their wallets, where only they themselves have access to money. In this blog, you will learn a few things you need to know about crypto exchanges. We will explain how to protect yourself from possible losses, choose the right exchange and how to properly store your cryptocurrencies on your own wallet. We hope that this blog will be useful and interesting, and that you will enjoy reading and learn something new.

Source: cointelegraph

third-party risk; Is the money not yours?

The first thing you need to know about crypto exchanges is that when you sign up for them, you agree that the money you keep on them is not yours, but belongs to the exchange office. This means that the exchange office can use this money as it pleases, whether it invests, borrows or spends it. It also means that there is a possibility that when you ask for your money, the exchange does not have it on it, because it lost or spent it. This is called a third-party risk and represents one of the biggest risks associated with crypto exchanges . That’s why it’s important not to keep too much money on exchanges, but only as much as you need to trade, and when you’re done trading, you withdraw money on your wallet. Third-party risk is particularly high in the crypto world, as exchanges are not regulated or supervised like traditional financial institutions. This means that they are not obliged to provide their funds, conduct audits, adhere to standards, which still do not exist, security and transparency are also at a low level, and exchangeoffices are still not obliged to compensate users in case of loss of money.

Source: cointelegraph

Frequent hacks

Hacking is one of the biggest problems and risks facing exchanges. Hacking is an unauthorized access or attack on the system or data of an exchange, with the aim of stealing, destroying or manipulating cryptocurrencies or other information. This can lead to huge losses for exchange users and owners, as well as to erode trust and reputation in the crypto industry. Over the years, a number of exchanges have been victims of hacking, which have resulted in the theft of billions of dollars in cryptocurrency value. According to an analysis, since 2012. by 2022 In 2001, at least 48 exchange offices were hacked, and a total of about $2.85 billion were stolen or lost. Only in 2022. In 2001, more than 20 hacks took place in which at least $10 million per attack were stolen. Some of the biggest and most famous are:

Gox (2014) – the first and largest exchange to lose about 850,000 bitcoins (about 7% of all bitcoins at the time), which was then worth about $450 million. The hack caused the price of bitcoin to fall and the exchange bankruptcy.
Binance (2019) – the largest and most popular exchange that lost about 7,000 bitcoins (about $40 million at the time), after hackers exploited vulnerabilities in security systems and user accounts. The exchange was able to compensate for the loss from its reserves and continue to operate normally, but it could have ended in a complete loss of money for the exchange office, the same as for users.
KuCoin (2020) – one of the latest victims of hacking, who lost about $280 million in various cryptocurrencies, after hackers gained access to her private keys. The exchange managed to recover most of the stolen funds by cooperating with other exchange offices and projects.

These hacks affect the price, volatility and perception of cryptocurrencies, as well as trust and security in the crypto industry. Also, they show the need for better regulation, monitoring and standardization of exchangeoffices, in order to ensure their transparency, accountability and protection.

Source: cointelegraph

How to choose the right exchange office

Choosing the right exchange to buy, sell and exchange cryptocurrencies is an important decision that can affect your experience and security in the crypto world. There are many different exchanges that offer different services, functionalities and pairs, so it is necessary to research and compare well before deciding on one. Here are some factors you should consider when choosing an exchange office:

Reputation: one of the most important factors when choosing an exchange office, because it shows how reliable, safe and high-quality the exchange office is. Before you register on an exchange office, check what other users say about it on the Internet, especially on forums, social networks and reviews. Also check if the exchange has a physical address, license, certificates or other evidence of legitimacy. Avoid exchanges that have a bad reputation, hack ing history, scams, or other problems.
Security: another key factor when choosing an exchange office, because you want to make sure that your data and assets are protected from theft, loss or damage. Check what security measures and technologies the exchange uses, such as HTTPS connection, two-factor authentication, cold wallet storage, encryption, audit, etc. Also check how the exchange resolves any incidents or disputes, and whether it has insurance or guarantee for its users. For example Binance and KuCoin successfully recouped money lost in the hacks.
Fees: Fees are the costs that an exchange charges for its services, such as trading, withdrawing or converting cryptocurrencies. Fees may vary depending on the type of transaction, amount, market or payment method. It is important to compare the fees of different exchangeoffices and find the one that offers the best price-quality ratio.
Liquidity: a measure of how easy it is to buy or sell a cryptocurrency on an exchange without affecting its price. Liquidity depends on the number and volume of users and transactions on the exchange. Higher liquidity means faster and more favorable trading, while lower liquidity means slower and more expensive trading. Liquidity can be checked by looking at the depth of the market (number of supply and demand) and the price range (the difference between the highest and lowest price) on the exchange.
Markets: Markets are pairs of cryptocurrencies that you can trade on an exchange. For example, BTC/USD is a market where you can buy or sell bitcoin for the US dollar. Different exchanges offer different markets, depending on which cryptocurrencies they support and which currencies they accept. It is important to choose an exchange office that offers markets that interest you and that have good liquidity. It is also important to check whether the exchange has restrictions or conditions for trading in certain markets, such as minimum or maximum amounts, identity verification or other procedures.
User experience: a measure of how easy and comfortable it is to use an exchange office. This includes design, functionality, speed, customer support and other aspects of the exchange. It is important to choose an exchange that offers you a simple and intuitive interface, a stable and fast platform, customer support and assistance, and additional features and tools that can make your trading easier and better. It is also important to check if the exchange has a mobile app or website that is adapted for different devices and browsers. You can check this by examining users of a particular exchange on reddit or some other place on the Internet.

These are some of the most important factors that you should consider when choosing an exchange office. However, no exchange is perfect and risk-free, so it is always advisable not to keep too much money on the exchange, but to transfer it to your own wallet, which gives you more control and security over your cryptocurrencies.

Source: cointelegraph

Cryptocurrency storage

Cryptocurrency storage is the process of storing and managing cryptocurrencies in a secure and convenient way. For storage, it is necessary to use a wallet, which is a device, application or service that provides access to and control over private keys for cryptocurrencies. Private keys are secret codes that prove ownership and allow cryptocurrencies to be sent and received. A wallet is like your personal cryptocurrency bank account, so it’s important that you choose it and use it carefully. There are many types of cryptocurrency wallets, which differ in security, functionality and availability. Some of the most common types of wallets are:

Paper wallet – a wallet consisting of a printed or written private key on paper. The paper wallet is very safe, because it is resistant to hacking and theft, but it is also very impractical, as it requires manually entering the key for each transaction.
Hardware wallet – a wallet consisting of a physical device that stores private keys on a secure chip. The hardware wallet is very secure, because it is isolated from the Internet and other devices, and is also very practical, because it can be connected to a computer or mobile phone for quick and easy use.
Software wallet – a wallet consisting of an application or program that stores private keys on a computer, mobile phone or website. It is very practical, because it allows easy and fast access and management of cryptocurrencies, but it is also less secure, because it is susceptible to hacking, viruses or data loss.

If you want to learn more about cryptocurrency wallets, you can read our blog special for the topic of wallets, where we will explain in more detail the advantages and disadvantages of different types of wallets, as well as give you tips on how to choose and use the best wallet for your needs. However, no matter which wallet you choose, remember that it is always better to keep your cryptocurrencies on your own wallet than on an exchange, as this will give you more control and security over your funds.

Source: cointelegraph

Conclusion

In this blog, you learned the most important things you need to know about crypto exchanges, platforms where you can buy, sell and exchange cryptocurrencies. Crypto exchanges are an indispensable part of the crypto world, but also very risky, so it is important that you be careful and informed before you start trading. We also gave you tips on how to choose and use the right exchange for your needs, as well as how to save your cryptocurrencies in a safe way, using your own wallet. We hope that this blog was useful and interesting to you, and that you learned something new about exchangeoffices. If you want to learn more about cryptocurrencies, you can follow our blog and visit us on our social networks (Twitter, Instagram), where you are free to ask questions.

Blockchain tools; How to make life easier in the crypt

What are crypto tools?

Crypto tools are different programs or websites that facilitate the use of cryptocurrencies and blockchain technology. Crypto tools have many opportunities and goals, such as securely sending and receiving money, obtaining data and insights, helping to build decentralized applications, facilitating monitoring trends… Some of the crypto tools you can use are mempool, defills, bitcoin explorer, and in today’s blog we will try to introduce you to the basic functions of these tools to make your journey in the world of cryptocurrencies easier for you.

Source: cointelegraph

Bitcoin explorer (blockchain.com)

Bitcoin explorer, is a key tool for exploring the depth and transparency of the Bitcoin blockchain. This explorer allows users to explore every transaction, block, and address within the Bitcoin network. Blockchain.com, it provides a comprehensive insight into the Bitcoin network. Users can track the journey of individual transactions, check the status of transaction confirmation, check the status of the address, and track the activity of miners, the overall speed of the network and much more. In addition to basic information, the explorer also provides a graphical representation of the entire block chain, monitoring of security and network activity. The usefulness of this tool extends beyond investors and traders. Developers, researchers, and enthusiasts often use Bitcoin Explorer to study network behavior, analyze transactions, and track various statistics. For example, analysts can track changes in activity over time, researchers can analyze the flow of Bitcoin between different addresses to detect specific trends, while developers can use these tools to track performance and discover the most active applications associated with the Bitcoin network. Ultimately, Bitcoin explorer enables transparency and blockchain records.

Source: cointelegraph

Defillama

DefiLlama is a decentralized analytics panel that monitors DeFi platforms and their decentralized applications, and uses TVL (Total Value Locked) to display information about which DeFi protocols are the largest and how they evolve over time. DefiLlama is one of the most basic and trusted web tools that allows you to learn more about DeFi protocols and blockchains, their growth and liquidity, so that you can make investment decisions based on real data. DefiLlama checks all data and is constantly developing new tools to help keep track of a lot of information. Some of the possibilities are:

View the state of the DeFi network in real time, including price, market capitalization, number of transactions, average fee and wait time.
Searching and analyzing individual blocks, transactions and addresses on different blockchains, such as Ethereum, Binance Smart Chain, Solana, Polygon…
Tracking the history and statistics of DeFi networks and protocols, such as TVL, number of users, number of decentralized applications, number of tokens, etc.
Comparing different DeFi protocols and categories, such as lending, exchange, derivatives, assets and others.

DefiLlama is a useful tool for anyone who is engaged in decentralized finance or are willing to learn and venture into the world of the same. Through this tool, you can get a lot of information about the status and functioning of decentralized networks and protocols, so that you can further verify your investment decisions with reliable data.

Source: cointelegraph

Coingecko or coinmarketcap

Coingecko and CoinMarketCap are indispensable tools in the world of cryptocurrencies, these sites provide deep insights and key information to everyone involved in cryptocurrencies. The sites are designed to provide a complete overview of thousands of different cryptocurrencies, including not only popular ones such as Bitcoin and Ethereum, but also those lesser known (over 10,000 cryptocurrencies). The main purpose of these pages is to display data from different sources and present users in the form of simple-to-understand charts. On Coingeck and CoinMarketCap, you can find information about cryptocurrency prices in real time, market capitalization, total trading volume, price changes over time, and more. In addition to basic data, these platforms offer detailed profiles of each cryptocurrency, its purpose, technological characteristics, the team behind the project and related resources such as white paper (Eng. white paper) and the official website. Why should we use this site? Well, access to the latest cryptocurrency prices and market information is crucial for investors, traders and anyone who follows this dynamic sector. These pages allow users to quickly track changes in the market and identify trends, which is of great importance for making informed decisions. Also, investors can use these platforms to explore different cryptocurrencies and gain a deeper understanding of their characteristics before deciding to invest. All these features make these platforms indispensable resources for anyone who wants to be well informed and successful in the world of cryptocurrencies.

Source: cointelegraph

Mempool

Mempool is a set of pending transactions pending confirmation in the Bitcoin network. Mempool.space is a website and application that allows visualization, research, and analysis of mempools and other aspects of the Bitcoin ecosystem. This tool offers a variety of options, such as:

Real-time view of mempool status, including size, number of transactions, average fee, and wait time.
View details about individual blocks and transactions, including height, timestamp, reward, fees, and number of transactions.
Display mempool history and statistics on fees, receipts, weight and hashrate.
View charts and tables on different indicators of the Bitcoin network, such as price, market capitalization, inflation, stocks and new coin emissions.
Display information about different types of Bitcoin scripts, such as multisig, timelock and taproot.
Display information about different types of Bitcoin protocols, such as BIPs, soft forks and hard forks.

Mempool.space is a useful tool for anyone who is dealing with Bitcoin or want to learn more about it. Through it we can find out a lot of information about the state and functioning of the Bitcoin network, as well as about ways to optimize our transactions. This tool is also an open project, as is Bitcoin, and is being developed and maintained for the benefit of the Bitcoin community.

Source: cointelegraph

Conclusion

In this blog, we talked about crypto tools, what they are, how to use them and what are their advantages. We mentioned some of the most popular and useful crypto tools that can help you better understand and monitor the state and functioning of crypto networks and protocols. These tools are useful for anyone who independently wants to deepen their knowledge of cryptocurrencies, or check the legitimacy of data on certain networks, that is, protocols. We hope you enjoyed reading today’s blog, and that you learned something new. We would like you to share your experience with crypto tools with us on our social networks (Twitter, Instagram), or to contact us if you have any other questions.

How a Bitcoin transaction works

What is a Bitcoin transaction?

A bitcoin transaction is a way of transferring value between users using bitcoin as a digital currency. A transaction consists of one or more inputs and outputs, which determine who sends and receives bitcoins, how much and under what conditions. These transactions are sent to the Bitcoin network, where they are processed and confirmed by computers involved in the maintenance and security of the network, the so-called Bitcoin miners. After the transaction is confirmed, it is written down in a block, which is part of the block chain . Blockchain is a public and irreversible record of all Bitcoin transactions ever made. Given that these transactions are public, they can be viewed on websites like [blockchain.com] or [blockexplorer.one].

Source: cointelegraph

What data does a Bitcoin transaction contain?

The Bitcoin transaction contains the following data:

The amount of bitcoin to be sent, expressed in satoshi (the smallest unit of Bitcoin)
Sender’s address, which is a string of 26 to 35 characters representing the sender’s public key
Recipient address, which is a string of 26 to 35 characters representing the recipient’s public key
Transaction fee, which is the amount of bitcoin paid to the network, i.e. the miner added by the block to the blockchain, for processing and confirming the transaction
Digital signature, which is cryptographic proof that the sender has the right to dispose of the bitcoin it sends
Other information, such as transaction version, creation time, number of receipts, transaction size, transaction weight, transaction ID and other technical details

Source: cointelegraph

How does a Bitcoin transaction work?

A bitcoin transaction is a data structure consisting of four parts: versions, inputs, outputs and inferences. A version is a number that indicates the format of the transaction. The entries are a list of references to previous transactions that were consumed as sources of bitcoin. Each entry contains the hash of the previous transaction, the output index in that transaction, the unlocking script, and the sequence. An unlock script is a series of instructions that prove that the sender has the right to spend bitcoins from a previous transaction. A sequence is a number that can be used to change the time of confirmation of a transaction. Exits are a list of addresses to which bitcoins are sent. Each output contains an amount of bitcoin in satoshi and a locking script. A locking script is a series of instructions that determine the conditions under which bitcoins can be spent in future transactions. A conclusion is a number that serves as proof-of-work and as an unpredictable factor that makes a transaction unique. The Bitcoin transaction is sent to the Bitcoin network, where it is processed and confirmed by computers involved in the maintenance and security of the network. These computers are called nodes and miners. Nodes are computers that receive, verify, and send transactions to other nodes. Miners are a special type of nodes that solve a cryptographic problem called a hash and create new blocks. Each block contains a header and body. The header is a set of block information, such as the version, the hash of the previous block, the hash of the Merkle tree containing all transactions in the block, the time of creation, the weight and the conclusion. The body is a set of transactions that are involved in a block. This new block is added to the end of the blockchain chain, and this process occurs every 10 minutes. For their work, miners receive a reward in the form of new bitcoins + a transaction fee paid by users to make their transaction acceptable. If you want to learn more about how bitcoin transactions work, you can read the Bitcoin whitepaper, which is the original document that presented the concept and technical details of Bitcoin.

Source: cointelegraph

How is the price determined for a Bitcoin transaction?

The price for a Bitcoin transaction is the amount of bitcoin paid to miners to process and confirm the transaction. The price is determined based on supply and demand in the market, as well as based on the size and complexity of the transaction. A transaction that has multiple inputs and outputs, or that uses more complex scripts, takes up more space in the block and therefore has a higher price. The price also changes depending on the state of the network and the number of transactions awaiting confirmation. When the network is congested, the price rises as transactions compete to enter the next block. When the network is free, the price drops because there is enough space for all transactions. The price is usually expressed in satoshi per byte (hour/w), where satoshi is the smallest unit of Bitcoin (0.00000001 BTC) and byte is a measure of transaction size. The average price for a Bitcoin transaction in the past 24 hours was about 25 hours/w. This means that a 250-byte transaction would cost about 6,250 satoshi, or about 0.0000625 BTC, or about 1.65 euros at the current exchange rate. The price may also vary depending on how quickly you want your transaction to be confirmed. If you want your transaction to be confirmed in the next block (which is created approximately every 10 minutes), you will have to pay a higher-than-average price. If you are willing to wait longer, you can pay a lower price than average.

Source: cointelegraph

Conclusion

In this blog, we explained what a Bitcoin transaction is, how it is sent, how it is confirmed and how its price is determined. Bitcoin transaction is an interesting and innovative way of transferring value through a decentralized and secure network called blockchain. We hope you found this blog useful and interesting. Thank you for reading and feel free to share your opinions and questions with us on our social networks (Twitter, Instagram).