ASIC miners vs quantum computers

What are ASIC miners?

ASIC miners, or “application-specific integrated circuits,” are the pinnacle of mining technology for Bitcoin and various altcoins. These computers are specifically designed to perform only one specific function — unlike universal processors that are designed for a variety of tasks. ASIC miners are optimized for cryptocurrency mining with exceptional accuracy and efficiency. Compared to CPUs and GPUs, ASIC chips provide much more speed and power because they are programmed to do one thing exclusively: mining. This specialization allowed them to revolutionize the mining industry when they emerged around 2013. years. However, their high energy consumption and centralization of mining have drawn criticism, despite the fact that, for anyone looking to mine Bitcoin competitively, they are still the only real option.

Fun fact: ASIC chips are so specific that they can only mine certain algorithms, such as SHA-256 for Bitcoin, which means that they become useless if that cryptocurrency loses its value or ceases to be profitable for mining, because the same machine cannot mine cryptocurrency on another algorithm.

Source: cointelegraph

What are quantum computers?

Quantum computers represent a new era of technology that could cause major changes in the approach to cryptocurrency mining. Based on the principles of quantum physics, these computers theoretically have the potential to process data in a way that far surpasses today’s best ASIC miners. Unlike classical computers that work with bits, quantum computers use qubits, which allows them to perform complex calculations exponentially faster. Although quantum devices have not yet fully come to life in practice, their potential suggests a future in which they could significantly disrupt the currently most powerful cryptocurrency mining methods.

Source: cointelegraph

Fundamentals of Quantum Computers

Quantum computers are based on principles that are far removed from traditional binary computing. The key terms to understand are qubits, entanglement, and quantum interference. The building blocks of a quantum computer are qubits. Unlike classical bits, which can only be 0 or 1, qubits can be in a state of superposition, which means that they can represent both 0 and 1 at the same time. This capability allows quantum computers to process multiple capabilities simultaneously, giving them enormous computing power. The second key concept is complexity. When qubits become entangled, the state of one qubit is related to the state of the other, regardless of the distance between them. This connectivity allows quantum computers to perform complex calculations efficiently because they can react to multiple variables instantly. The finite element is quantum interference. This phenomenon allows quantum computers to direct their calculations towards the most likely solution by adjusting the probabilities of different outcomes, allowing them to quickly solve complex problems. In summary, quantum computers can explore many computational paths simultaneously, while classical computers must go one step at a time, which gives quantum computers an advantage in solving cryptographic problems, such as those used in cryptocurrency mining.

Source: cointelegraph

What is a quantum miner?

A quantum miner is conceived as a device that uses a quantum computer to mine cryptocurrencies, potentially revolutionizing the way cryptographic problems are solved. While ASIC miners work by sequentially going through millions of calculations to solve puzzles like the SHA-256 algorithm for Bitcoin, quantum computers can test many potential solutions in parallel thanks to superposition and quantum interference. This allows them to solve problems exponentially faster than traditional ASICs. In practical terms, a quantum miner could solve a problem that an ASIC takes minutes or hours to solve, in just a few seconds. If quantum technology were fully developed, it could obsolete current mining technology almost overnight, allowing quantum devices to far surpass the speed and efficiency of classical miners.

Fun fact: quantum miners wouldn’t require the same physical resources as large ASIC farms — a few quantum devices could theoretically outperform an entire farm of hundreds of ASIC machines.

Source: cointelegraph

The beginnings of quantum computers

While quantum crypto miners are still not a reality, this is mainly because quantum computing is still in its infancy. Quantum computers like Google’s Sycamore have shown some potential, but they are still experimental machines with serious technical limitations. Qubits, the fundamental units of quantum computing, are highly sensitive and error-prone due to quantum decoherence, making them unreliable for longer computations like those required for cryptocurrency mining. In addition, today’s quantum computers have too few qubits — most only support tens or hundreds of qubits, while mining or breaking algorithms like SHA-256 would require thousands or millions of stable, error-corrected qubits. In addition to technical challenges, quantum computers require a very specialized and expensive infrastructure, such as cooling systems that keep temperatures close to absolute zero. This makes them extremely expensive to use compared to traditional ASIC miners, which while energy-intensive, are relatively easy to use. Also, there is currently no quantum algorithm optimized for block mining more efficiently than ASICs, as most research in the field of quantum computing is focused on cryptography, materials science, and optimization problems. The high cost, technical limitations, and efficiency of existing ASICs mean that there is no urgent need to develop quantum miners. For now, the focus is on developing crypto-resistant quantum to protect blockchain security from future quantum threats, rather than using quantum computers for mining.

Fun fact: In 2019, Google’s Sycamore processor achieved quantum supremacy by performing a complex task in 200 seconds, which would take the world’s most powerful supercomputer 10,000 years.

Source: cointelegraph

Quantum computers and their impact on blockchain

Quantum computers pose significant challenges to today’s blockchain technology, with the main problems being centralization and the threat to cryptographic algorithms.

  • Centralization: Quantum miners could far surpass ASIC miners in terms of the speed of solving mining puzzles. A problem that takes ASICs about 10 minutes could be solved by quantum devices in a matter of seconds. While Bitcoin’s difficulty adjustment algorithm responds by increasing the complexity of mining to keep the time between blocks at 10 minutes, quantum devices could still remain significantly faster than ASICs. This could lead to a situation where quantum miners constantly maintain an advantage, pushing ASIC miners out of the process and concentrating mining power in the hands of those who can afford quantum technology. This increases the risk of centralization and a potential 51% attack or collusion among miners.
  • Threat to cryptographic algorithms: An even greater threat to quantum computers relates to the security of the blockchain itself. Bitcoin and many other cryptocurrencies rely on elliptic curved cryptography (ECC) to secure transactions. Although ECC is secure against classical computers, quantum computers with Shor’s algorithm could crack this encryption exponentially faster. This would allow malicious actors to steal private keys, access wallets without passwords or seed phrases, and manipulate the blockchain by re-signing past transactions, which could allow transaction histories to be reversed or changed. They would also enable double spending, where quantum computers can override the network verification process and destabilize the system.

Source: cointelegraph

The Future of Bitcoin Mining

Looking ahead, quantum computing will almost certainly have a transformative impact on cryptocurrency mining, but its application is still nowhere near reality. Quantum miners, with their incredible computing power, could vastly outperform ASICs, compromising the very structure of mining. But technical challenges such as qubit stability, error correction, and huge infrastructure costs mean that quantum mining is likely at least a decade away. Meanwhile, ASICs will continue to dominate the mining scene. Their specialized efficiency keeps them at the top as essential hardware for competitive mining, while quantum technology is slowly maturing. Nevertheless, the crypto community must prepare for the inevitable arrival of quantum miners by developing quantum-resistant cryptography and exploring alternative consensus mechanisms to protect blockchain security and decentralization. As quantum technology advances, both ASICs and blockchain developers will need to constantly innovate to ensure the sustainability and security of decentralized networks in a future powered by quantum computers.

We hope you enjoyed reading today’s blog, if you have any questions or suggestions you can always contact us on our social networks (Twitter, Instagram).

Traditional bank account compared to Bitcoin

How does a bank account work?

Bank accounts operate on the principle of fractional reserves, which means that banks hold only part of their customers’ deposits, while using the rest to grant loans. This system increases the amount of money in circulation and stimulates economic growth by allowing greater access to capital. While this model supports economic activity, it also exposes depositors to the risk of bank insolvency. Historical examples, such as the Great Depression of the 1930s, show how vulnerable this system is in the event of mass withdrawals. In the US, the Federal Deposit Insurance Corporation (FDIC) partially reduces this risk, but customers should be aware that their money is not just “in the safe”, but is used by banks to generate income, which can lead to liquidity problems in unforeseen situations.

Source: cointelegraph

What is Bitcoin Storage and How Does It Work?

Bitcoin storage refers to the use of software solutions, known as wallets, that allow users to access their digital assets stored on blockchain networks. Users can choose between two types of storage: hot and cold wallets. Hot storage uses online platforms, such as centralized exchanges or software wallets, which allows for easier and faster access, but is subject to risks such as hacking. Cold storage, on the other hand, keeps Bitcoin offline, using devices like hardware wallets, thereby providing more security but reducing availability. In addition, there is a difference between custodial wallets, where a third party manages the private keys, and self-custodial platforms, where users control their own keys, giving them greater autonomy but also responsibility for the security of their funds. Of course, it is always advisable to store the keys yourself (self-custodial) and be aware of all the risks.

Source: cointelegraph

Comparison of Storing Bitcoin and Bank Account

A comparison of bank accounts and Bitcoin storage reveals key differences in security, transaction speed, cost, and affordability. Bank accounts offer security through multi-factor authentication and encryption, while Bitcoin wallets use cryptographic techniques and decentralized blockchain technology for added protection. Although banking systems are subject to slower transaction processing, especially international transactions, Bitcoin allows for faster and cheaper transactions without intermediaries. Bitcoin also provides greater global availability of funds, allowing users to manage them at any time. While bank accounts can be hit by inflation, Bitcoin is deflationary, with limited supply, although its volatility also carries risk.

Source: cointelegraph

Which is a better option?

The choice between a traditional bank account and Bitcoin storage depends on the individual’s personal preferences and financial goals. Bank accounts offer stability through regulation, fund insurance, and a wide range of services, but they come with drawbacks such as centralized control, fees, and inflation, which reduces your return on “investment.” On the other hand, Bitcoin storage allows for greater privacy and potentially higher returns thanks to Bitcoin’s decentralization, but it carries the risk of high volatility and limited acceptance. In the end, the best option depends on the risk appetite, technological readiness and long-term financial plans of the user, but always the best option is of course diversification, in which case you keep a certain amount of money in a bank account, part perhaps in stocks and part in bitcoin and other cryptocurrencies. How much your stake in bitcoin and cryptocurrencies will be depends on your risk appetite. 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).

Consumer Price Index (CPI)

What is the Consumer Price Index (CPI)?

The Consumer Price Index (CPI) is a tool that measures the average change in prices over time for a specific set of goods and services that households typically buy. It can be thought of as a label that shows the cost of living. The CPI tracks how much the prices of everyday things — such as food, clothing, housing, and transportation — increase or decrease. When the CPI rises, it means that the total cost of these items increases, indicating inflation. If it falls, prices generally fall, which is rare but possible. CPI is crucial because it helps us understand how much more (or less) we are paying for the same things compared to the previous period, giving a clear picture of inflation.

Source: cointelegraph

How is CPI calculated?

To calculate the Consumer Price Index (CPI), economists first create a “basket” of goods and services that represents what the average household buys. This cart includes categories like food, housing, transportation, healthcare, and entertainment. Each category was selected based on surveys that track spending habits in different regions and among different income groups. Once the basket is defined, each product or service within it is assigned a weight, which reflects its importance in the average household budget. For example, housing tends to carry more weight because people spend a large portion of their income on rent or mortgages, while categories like entertainment carry less weight. These weights ensure that the CPI accurately reflects the impact of price changes on the total cost of living. A simple formula is used to calculate the CPI. For example, if the basket cost €500 in the base year and €550 in the current year, the CPI would be:

Source: cointelegraph

This means that prices have risen by 10% compared to the base year, which serves as a reference point when calculating economic indices such as the CPI.

Types of Consumer Goods Indices

There are several types of Consumer Price Index (CPI), and the most commonly used in the world is the CPI for All Urban Consumers (CPI-U). This index reflects the consumption habits of urban households, including the employed, the unemployed, and the retired. It is the broadest measure often used to track overall inflation trends. Another important index is the CPI for Urban Workers and Administrative Workers (CPI-W), which focuses on households where at least 50% of income comes from administrative work, and at least one household member works 37 weeks or more per year. The CPI-W often better reflects the consumption patterns of working families. In addition, there is the so-called Core CPI, which excludes volatile items such as food and energy. These indices often fluctuate due to factors such as weather or geopolitical events, so Core CPI provides a clearer view of underlying inflation trends without being affected by these fluctuations. Policymakers often rely on Core CPI to make decisions about interest rates and other economic policies because it offers a more stable picture of inflation.

Source: cointelegraph

The importance of CPI for cryptocurrencies

The Consumer Price Index (CPI) has a significant impact on cryptocurrency markets. When the CPI shows rising inflation, it can affect investor sentiment, encouraging investors to look for assets that could protect their wealth. In such situations, cryptocurrencies, especially Bitcoin, come into focus. In traditional markets, higher inflation, as shown by the CPI, often leads to a decline in the value of bonds and can increase stock volatility, as companies face rising costs. Investors may react by moving money into assets that they perceive as safer or that could grow during inflationary periods, such as gold. Recently, Bitcoin and other cryptocurrencies have often been considered “digital gold”. The idea is that the limited supply of Bitcoin makes this cryptocurrency less vulnerable to inflation, which is why some see it as a hedge against rising prices. For example, in June 2021, inflation in the US reached around 5.4%, well above the Federal Reserve’s target of 2%. This was in response to the introduction of trillions of dollars into the economy during the pandemic. During this period, Bitcoin experienced significant growth. However, when the Federal Reserve began to gradually change monetary policy, including plans to reduce its bond purchase program and raise interest rates, Bitcoin had fallen to around $35,000 by January 2022. These fluctuations clearly show how the CPI can affect the dynamics of the crypto market.

Source: cointelegraph

How Does CPI Affect Cryptocurrency Prices?

Higher inflation, as shown by the Consumer Price Index (CPI), can lead to increased investments in cryptocurrencies like Bitcoin. However, changes in monetary policy resulting from the CPI data may lead central banks to increase interest rates, which could reduce liquidity in financial markets and potentially reduce the value of Bitcoin. Higher interest rates make borrowing more expensive, which can reduce the flow of money into speculative assets like cryptocurrencies. Additionally, cryptocurrency price volatility can be amplified by market movements caused by CPI. Unlike traditional assets, cryptocurrencies are highly sensitive to changes in investor sentiment and global economic conditions.

Source: cointelegraph

The future role of the CPI in the world of cryptocurrencies

The future role of the Consumer Price Index (CPI) in the world of cryptocurrencies promises an interesting development. One of the possible advances is the creation of crypto indices or tokens based on CPI. These digital tokens could directly track inflation, allowing investors to hedge against inflationary pressures within the crypto space. Regulators could also consider CPI data when shaping future policies on cryptocurrencies. As the market matures, governments could use the CPI as a reference point to introduce or adjust regulations that ensure that crypto assets remain aligned with broader economic conditions. For example, the CPI could be used to set guidelines for the taxation of cryptocurrency profits, with tax rates that adjust according to inflation, or to set a threshold for the issuance (“printing”) of inflation-related digital currencies by central banks, known as central bank digital currencies (CBDCs). Additionally, as cryptocurrencies continue to gain wider acceptance, the CPI could become a reference point for assessing the actual utility of digital assets. For example, if a cryptocurrency is promoted as a stable asset of value, its performance could be measured against inflation rates to assess the preservation of purchasing power over time. In summary, the future of CPI in the crypto economy is likely to involve a key role in shaping new financial instruments, guiding regulatory frameworks, and providing benchmarks for assessing the stability and utility of digital assets. 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).

Is Ethereum a security, currency, or commodity?

Ethereum is everything?

Regulators can’t agree on a single classification for Ethereum — technically, it’s a security, currency, and commodity.
This creates a dilemma of sorts for the world’s second-largest cryptocurrency by market capitalization.
Ether’s versatility and wide functionality set it apart from the crowd, although this makes it difficult to define.
Despite this, it does not suffer from an unclear classification, even while the United States Securities and Exchange Commission (SEC) may still lay claim to regulate it.
Without a strict classification, Ether potentially avoids extensive securities, commodity, or currency-specific regulations, which could slow its adaptation in the world of innovation.

Source: cointelegraph

Ethereum – Security

In the United States, the Howey test determines whether an asset is a security by assessing whether it meets the criteria for “investment.” The test consists of four conditions: money investment, joint venture, profit expectation, and profit based on someone else’s work. If a transaction meets all of these criteria, it is classified as a security and is subject to appropriate regulations. Looking through this test, Ether meets these requirements during its initial public offering (ICO) in 2014. Investors invested money, shared resources were managed by the Ethereum Foundation, and the expectation of profits was high. But as the network became more decentralized, the SEC changed the classification in 2018, concluding that Ether was no longer dependent on a centralized entity and therefore no longer had to be considered a security, even though it met all the requirements of the Howey test.

Source: cointelegraph

Ethereum – Currency

Currencies are used as a means of payment and have legal recognition within the financial system.
In Japan, Ether is a legally accepted means of payment, but the question arises – does this make it a currency in the traditional sense?
According to the standard definition, a currency must meet several conditions: be a medium of exchange, a unit of account, a store of value, and legal tender.
Ether is used as a medium of exchange in transactions within numerous DApps (decentralized applications) and platforms, and is used to assess the value of services and goods within its ecosystem.
Also, many hold it as an investment, which gives it the role of a store of value.
However, Ether is not legal tender in most countries, which distinguishes it from traditional currencies such as the dollar or the euro.
Although Ether is used similarly to a currency, the lack of government recognition limits its full integration into traditional definitions of currency.

Source. Cointelegraph

Ethereum – commodity

While Ether is often classified as a security or currency, it is also classified as a commodity, particularly by the Commodity Futures Trading Commission (CFTC) in the US.
While this may seem unusual at first glance, it is completely in line with the approach that the CFTC applies to certain digital assets like Bitcoin.
Ether meets the key requirements for commodities – it is fungible, holds value and is actively traded on global exchanges.
Its lack of a central issuer also distinguishes it from securities, as Ether operates on a decentralized network.
Trading Ether on futures markets further cements its status as a commodity.
However, while Ether meets current regulatory frameworks, the future development of the crypto market could trigger changes in this classification due to challenges in regulating decentralized digital assets.

Source: cointelegraph

So what is Ethereum?

At its core, Ether can fit all or none of these definitions at the same time.
The key problem lies in the lack of a comprehensive global regulatory framework for cryptocurrencies, which forces regulators to adapt existing laws to these new digital assets.
Considering the pros and cons of each classification – security, currency, or commodity – the closest definition to Ether is currently a commodity.
While not perfect, this framework allows for market regulation, investor protection, and integration with traditional markets.
Nevertheless, Ether has more functionalities, but its primary role corresponds most closely to the characteristics of the commodity.

Source: cointelegraph

The Future of Ethereum Classification

Until a complete, globally applicable regulatory framework tailored to the unique characteristics of digital assets is in place, the classification of Ether as a commodity will have to be a satisfactory solution. This approach provides a structured regulatory but temporary solution until more comprehensive regulations are adopted. An example of such a new regulatory framework is the European Crypto-Asset Markets Regulation (MiCA), which classifies crypto-assets into different categories, and Ether would belong to the group of “other crypto-assets.” This approach allows for a balance between innovation, market stability, and consumer protection, which helps the development of the Ethereum ecosystem while ensuring the necessary security measures are in place. While not a perfect solution, MiCA is an important step forward that other countries could follow in the future. We hope you enjoyed today’s blog, and that you learned something new. If you have any questions or suggestions, you can always contact us on our social networks (
Twitter, Instagram).

What are bonds and how do they work in crypt?

Types of traditional bonds

Traditional bonds can be divided into several main categories.
Government bonds are issued by governments when they need to raise funds, rather than relying solely on banks.
As an investor, by buying these bonds, you are lending money to the government, which pays you back the bulk with interest.
These bonds are considered low-risk because they are backed by the government.
Corporate bonds are issued by companies to raise capital for various purposes, such as refinancing debt or expanding a business.
They usually offer higher interest rates due to a higher level of risk.
Municipal bonds are issued by local governments to fund infrastructure, such as hospitals, schools, and roads, and are often attractive because they offer tax breaks on interest.

Source: cointelegraph

How do traditional bonds work?

When you buy a bond, you secure a fixed interest rate that is paid regularly, usually semi-annually, until the bond expires.
This amount of interest is called a coupon.
On the maturity date, the bond issuer returns your initial investment, i.e. the principal.
Bonds are attractive to many investors because of the predictability of returns.
You can count on regular interest payments and the return of the principal at the end of the maturity period.
However, lower returns compared to stocks or other high-risk investments are a trade-off for this stability.
Traditional bonds are often the backbone of investment portfolios, offering stable income with relatively low risk but not large returns.

Source: cointelegraph

What are crypto bonds?

Crypto bonds represent a modern version of traditional bonds, with the difference that they are associated with cryptocurrencies or blockchain technology, rather than companies or governments.
By investing in crypto bonds, you are supporting projects or businesses within the crypto industry, rather than banks or governments.
The appeal of such investments lies in the potentially higher profits if the project succeeds.
However, as with all cryptocurrency investments, the level of risk is significantly higher.
Given that this is a relatively new concept, thorough research and understanding of risk are crucial, despite the possibility of enticing rewards.
Crypto bonds blend traditional financial ideas with blockchain innovation, contributing to the growth of digital finance.

Source: cointelegraph

How to buy crypto bonds?

Buying crypto bonds is usually done through crypto exchanges such as Binance or some specialized bond services.
Here’s how you can buy crypto bonds step by step:

Choose a crypto exchange: choose a reliable crypto exchange that offers crypto bonds.

Set up a secure wallet: Provide a secure crypto wallet to store your digital assets.

Search for available bonds: Explore available bonds on the stock exchange and choose one that matches your investment goals.

Buy bond: buy your chosen bond using your preferred cryptocurrency.

Understanding the terms of the bond: The terms of the bond, such as the interest rate and maturity date, will be managed through a smart contract that automatically processes interest payments and the return on your investment at maturity.

Research and risk assessment: Thoroughly research and understand the risks associated with the crypto market before investing.
Crypto bonds bring new opportunities, but they also require careful analysis before deciding to invest given the large amount of risk they carry.

Source: cointelegraph

How do crypto bonds work?

Crypto bonds operate on a decentralized network, combining the traditional concept of bonds with the benefits of blockchain technology.
Instead of being tied to governments or financial institutions, these bonds are issued and maintained through smart contracts.
These self-executing contracts automatically manage interest payments and principal returns, eliminating the need for intermediaries like banks.
Investing in a crypto bond involves buying a bond using cryptocurrency.
The structure of the bond determines whether the interest rate will be fixed or variable, and all transactions, including your investment performance and payout time, are transparently tracked on the blockchain.

Source: cointelegraph

Are crypto bonds a good investment?

Crypto bonds offer an interesting opportunity to profit from blockchain transparency and potentially high returns.
However, with such opportunities comes an increased risk, which is important to carefully evaluate.
If you love the thrill of high-risk investments with the possibility of big rewards, crypto bonds may be the right choice for you.
However, if you are a more conservative investor or are not familiar with the risks of cryptocurrencies in detail, it is recommended to exercise caution or consult with an experienced crypto investor before deciding to invest in crypto bonds.

Source: cointelegraph

Conclusion

Crypto bonds bring novelty to the world of finance, offering the potential to stabilize and diversify the often volatile cryptocurrency market.
While bonds may look like a traditional financial instrument, their integration into the crypto sector opens up new opportunities for managing risk and return on investment.
This type of bond allows investors to better balance their portfolios, but it also requires caution due to the volatility of cryptocurrencies and the lack of regulation.
Despite potentially higher profits, thorough research and careful decision-making are essential to protect against unexpected losses in this dynamic sector.
We hope that you enjoyed reading today’s blog, and that you learned something new. If you have any questions or suggestions, you can always contact us on our social networks (Twitter, Instagram).

Bitcoin Name Service (BNS)

What are we talking about today?

Cryptocurrencies are becoming more and more present in everyday life, for this very simple reason there is a need for simpler and more intuitive ways to interact with our digital wallets. This is why Bitcoin Name Service (BNS) was created, an innovative service that is transforming the way we use Bitcoin. BNS allows users to connect their Web3 wallet to an easy-to-remember .btc domain name, eliminating the need for long and complicated addresses that are difficult to remember, or easy to make mistakes when entering them. This blog will walk you through the basics of BNS, explain how .btc domains work, and provide you with helpful tips on how you can get your own .btc domain.

Source: cointelgraph

What is Bitcoin Name Service?

Bitcoin Name Service (BNS) represents a revolutionary step in the world of cryptocurrencies, what it offers is a decentralized database of names that is secured on the Bitcoin blockchain. This service allows users to register Web3 usernames through the Stacks platform, creating a bridge between human language and the complex world of crypto addresses. BNS acts as a directory for Web3, providing a clear mapping between readable names like “unchained.btc” and corresponding alphanumeric wallet addresses. Similar to how the Web2 Domain System (DNS) allows for easy search and access to websites, BNS offers an interface for buying, registering, managing, and searching .btc domains. In short, this means that you can replace your long and incomprehensible Bitcoin address with something simple like “kriptomat.btc”. However, unlike centralized DNS, BNS relies on a peer-to-peer network of servers, making it more secure and censorship-resistant. The names that BNS provides are universally unique, easy to understand by humans, and allow for strong domain ownership. By leveraging the security and resilience of the Bitcoin network, BNS enhances the user experience within the Stacks ecosystem, allowing users to not only send and receive STX, but also interact with tokens and NFTs that are based on Stacks. This system opens the door to simpler and more secure Web3 communication, and lays the foundations for the future of digital interaction.

Source: cointelegraph

How do .btc domains work?

.btc domains are an innovative addition to the Bitcoin blockchain, as they provide users with the ability to register unique names that are stored on the Bitcoin network as NFTs. These domains are managed through the Bitcoin Name Service (BNS) and registered using smart contracts on the Stacks platform. Thanks to its integration with Bitcoin’s security features and the use of the Clarity language for smart contracts, BNS creates a decentralized name registry that is secure and tamper-proof. Each .btc name has its own unique hash written on the Bitcoin blockchain, which ensures transparency and undisputed ownership. In addition, each domain and subdomain has its own Decentralized Identifiers (DIDs), which serve as persistent identifiers for public keys and enable compatibility with other systems that use DIDs. The registration of a .btc domain is done by transacting with a BNS smart contract on Stacks, thus ensuring that all BNS domains are synchronized and replicated, that is, stored on all Stacks nodes globally. This process not only simplifies the management of digital identities, but also encourages greater security and decentralization.

Source: cointelegraph

How to buy a .btc domain?

Before you buy a .btc domain, you’ll need a wallet that supports .btc domains, such as Hiro Wallet or Xverse. Also, you will need STX in your wallet to buy a Bitcoin domain on BNS. New domains cost 2 STXs. These costs do not include transaction fees, so expect to need a little more than 2 STXs. You can buy STX at an exchange and send it to your Stacks-compatible wallet. The steps to buy a Bitcoin domain are as follows;

Source: cointelegraph

Search for a .btc domain

Go to btc.us and type the name you want to register in the search bar on the homepage. A pop-up window will appear telling you if the name is available, what the prices are in STX, and how long you’ll have it (5 years for 2 STX).

Source: cointelegraph

Create an account

Once you have confirmed that the name is available, you need to create a Stacks account linked to Bitcoin to start your purchase. Connect your Stacks-compatible wallet to the website to sign up.

Source: cointelegraph

Finalize your domain purchase

When you log in, you will receive a prompt to purchase the .btc domain you have chosen. Submit 2 STXs, and you will be entitled to the domain for five years. The transaction will involve a small transaction fee. Once the transaction is complete, the Bitcoin domain name will appear in your Stacks wallet.

Decentralized Autonomous Organizations (DAOs)

What is a Decentralized Autonomous Organization?

A decentralized autonomous organization (DAO) is a form of legal structure that does not have a central governing body and whose members share the common goal of acting in the best interests of the entity or organization. The most popular and prevalent are with crypto and blockchain enthusiasts, and are used to make decisions when managing an organization. In short, DAO is a form of organization that does not have a central governing body, but decisions are made on the basis of decentralized mechanisms, often through blockchain technology. DAO members often share a common goal and work together through smart contracts or other decentralized tools to achieve these goals.

Source: cointelegraph

What is the purpose of decentralized autonomous organizations (DAOs)?

One of the main characteristics of cryptocurrencies is that they are decentralized. This means that they are not controlled by one institution such as the government or the central bank, but are instead divided among various computers, networks and nodes. In many cases, cryptocurrencies use this decentralized status to achieve levels of privacy and security that are usually inaccessible to standard currencies and their transactions. Inspired by the decentralization of cryptocurrencies, a group of developers came up with the idea of a decentralized autonomous organization, or DAO, in 2016. years. The concept of the DAO is to promote the supervision and management of an entity similar to that of a corporation. However, the key to the DAO is the lack of a central authority; where a collective group of leaders and participants acts as an administrative body.

Source: cointelegraph

How does DAO work?

DAOs rely heavily on smart contracts. Based on the outcome of the decision, a particular code can be executed to increase supply in circulation, burn selected reserve tokens, issue selected rewards to existing token holders, or finalize some other decision. The voting process for DAOs is published on the blockchain. Users often have to choose between mutually exclusive options. Voting power is often distributed among users based on the number of tokens they own. For example, one user who owns 100 DAO tokens will have twice the weight of voting power compared to a user who owns 50 tokens. The theory behind this practice is that users who are more financially invested in DAO are encouraged to act in good faith. Imagine a user who owns a total of 25% of the voting power. That user can participate in bad actions; however, by doing so, the user will compromise the value of its stake of 25%. DAOs often have vaults that contain tokens that can be issued in exchange for fiat currency. DAO members can vote on how to use these funds; for example, some DAOs with the aim of acquiring rare NFTs may vote on whether to give up treasury funds in exchange for that NfT or some other asset.

Source: cointelegraph

Advantages of DAOs

There are several reasons why an entity or collective group of individuals might want to implement the DAO structure. Some of the benefits of this form of management include:

Decentralization: Decisions that affect an organization are made by individuals instead of by the central government. Instead of relying on decisions of a single individual (CEO) or a small group of individuals (Board of Directors), a DAO can decentralize authority across a significantly larger range of users.

Participation: individuals within an entity may feel more powerful and connected to the entity when they have direct opinion and voting power in all matters. These individuals may not have strong voting power, but the DAO encourages token holders to vote, burn tokens, or use their tokens in ways they deem best for the entity.

The public: within the DAO, voting is made via blockchain and everything is publicly visible. This requires users to act in a way they deem best, as their voice and their decisions will be publicly visible.

Source: cointelegraph

Disadvantages of DAOs

However, not everything is perfect when it comes to DAOs. There are serious consequences of improper installation or maintenance of daos, and these are just some of the limitations of the structure:

Speed: If a public company is run by an CEO, it may only take one vote to decide which direction the enterprise will take. With the DAO, every user is given the opportunity to vote. This requires a much longer voting period, especially taking into account time zones and priorities outside the DAO.

Education: similar to speed issues, DAO has a responsibility to educate many more people regarding ongoing entity activities. One CEO is much more knowledgeable about enterprise development, while DAO token holders may have different educational backgrounds, understanding initiatives, incentives, or resource availability. A common challenge of DAOs is that, although they bring together a diverse set of people, this diverse set of people must learn how to grow, strategize and communicate as a whole, and it can happen that not everyone understands how to achieve it all in the most effective way.

Inefficiency: partially summarizing the first two positions, DAOs carry a high risk of inefficiency. Because of the time it takes to educate voters, communicate initiatives, explain strategies, and introduce new members, dao will easily spend a lot more time discussing changes than it implements. Daos can get stuck in trivial, administrative tasks due to the need to coordinate many more individuals.

Source: cointelegraph

How does DAO make money?

Dao initially raises capital by selling its token. This basic token represents voting power and ownership share among members. If the DAO achieves success, the value of the base token will increase. DAO can then issue future tokens at a higher value to raise more capital. The DAO may also invest in assets if members choose to approve such measures. For example, a DAO can buy companies, NFTs, or other tokens. If these assets increase in value, the value of the DAO, that is, its treasuries, also increases.

Source: cointelegraph

Conclusion

Decentralized autonomous organizations (DAOs) are an innovative form of organization that relies on blockchain technology and smart contracts to transform the way decisions are made and managed by entities. Although they bring a number of advantages such as decentralization, greater member participation, transparency and global connectivity, DAOs are not without disadvantages. Problems such as the speed of decision-making, the need to educate members, potential inefficiencies and safety issues are often present. Despite these challenges, DAOs remain an intriguing concept with great potential to transform different industries and create new economic models. Continuous learning and adaptation is key to reap the benefits of the DAO model and minimize risks, which will be key factors for their long-term success. We hope that you enjoyed reading today’s blog, and that you have learned something new, if you have any questions or suggestions you can contact us on our social networks (Twitter, Instagram).

Artificial Intelligence and Blockchain

What are we talking about today?

Lately, we’ve seen a huge rise in popularity of artificial intelligence (AI), a technology that is completely changing the way we live and work. AI is not just a tool for automating routine tasks; it has become a key player in the innovations that shape the future. When AI merges with blockchain technology and cryptocurrencies, the potential for transformation becomes even greater. This compound can lead to faster and higher quality growth of both industries, enabling the creation of new business models and markets. Today we will explore how integrating AI with blockchain can improve the security, transparency and efficiency of transactions in the world of cryptocurrencies, and how these technologies together can contribute to creating a better and smarter digital ecosystem.

Source: cointelegraph

Advantages of artificial intelligence with blockchain

  1. Security and transparency: blockchain technology provides a high level of security and transparency. When used in combination with Artificial Intelligence, it allows the creation of decentralized systems for storing and processing data. This approach ensures that data is protected from unauthorized access, and each transaction is recorded and visible to all participants.
  2. Data integrity: AI often requires large amounts of data to further develop models. By using blockchain to store this data, its integrity is ensured. Blocks in the chain contain the hash of previous blocks, thereby preventing manipulation of data. This would ensure that the data entered earlier cannot be falsely changed.
  1. Smart contracts: blockchain allows you to create smart contracts that automatically execute certain conditions. Artificial intelligence can use these smart contracts to automate business processes and reduce administrative costs.
  2. Data sharing: AI requires the exchange of data between different entities. Blockchain enables secure sharing of data between participants in the network, without the need for intermediaries, who can potentially manipulate information.
  3. Reliability and fault resistance: A blockchain is a distributed network that does not rely on central authority. This makes it resistant to breakdowns and attacks. Artificial intelligence that uses blockchain can rely on this reliability for its operations, and a prime example is Bitcoin, a network that was last offline in 2013. He has been working continuously for more than 10 years. Such distributed networks would allow AI to work continuously, without any difficulties that are often visible with other centralized services.

Source: cointelegraph

Shortcomings of artificial intelligence with blockchain

  1. Scalability: Blockchain, while extremely secure, has limitations in scalability. As the number of transactions increases, so does the time it takes to process these transactions. This can pose a problem for Artificial Intelligence, which requires fast and large amounts of data.
  2. Costs: Maintaining a blockchain network can be expensive, especially for smaller organizations. Each transaction requires compensation, and costs can accumulate. This can affect the accessibility of artificial intelligence using blockchain.
  3. Transaction speed: although blockchain ensures security, transaction speed is not always optimal. Artificial intelligence that requires instant responses or high transaction frequency can face speed limits.
  4. Energy consumption: mining cryptocurrencies on the blockchain requires large amounts of computing power and energy, and just maintaining the distributed databases used by the blockchain is a very expensive process. This can have a negative impact on the environment and increase overall energy consumption.
  5. Privacy: Data privacy is not always guaranteed on the blockchain. Transactions are visible to all participants on the network, which can pose a problem for Artificial Intelligence, which sometimes shares confidential and private information for individual users.

Source: cointelegraph

Cryptocurrencies and Artificial Intelligence

In the world of cryptocurrencies, as everywhere, the popularity of artificial intelligence is growing, and several projects that have decided to implement AI or work on developing their own AI systems have attracted numerous investors and thus recorded tremendous growth. Among them stand out:

SingularityNET (AGIX) – a platform that enables the creation, sharing and monetization of AI services globally.

Fetch.ai (FET) – a project aimed at building a decentralized network for autonomous economic agents using AI to optimize transactions.

Ocean Protocol (OCEAN) – enables secure data exchange and monetization and integration of AI algorithms for better analysis.

These projects have demonstrated significant advances in integrating AI with blockchain technology, providing innovative solutions that improve security, user experience and scalability. AI tokens, such as these, are used for a variety of purposes, including automation and building trust or efficiency in crypto systems, and as a result the total market value of all AI tokens has grown to nearly US$25 billion. This indicates the growing interest and potential that AI brings to the world of cryptocurrencies, but also the interest of users in the services these AI projects offer.

Source: cointelegraph

What can we expect in the future?

There is an obvious rise in the popularity of artificial intelligence around the world, and not just in the circles of people dealing with cryptocurrencies. In the same way, the application of AI in an increasing number of areas is inevitable, so it is to be expected that AI projects will continue to receive financial support in the form of investors, and that this will drastically accelerate development. We cannot say with certainty what the future holds, but it is certain that the application and development will accelerate from day to day.

Source: cointelegraph

Conclusion

In today’s blog, we went through some of the most important points of artificial intelligence, blockchain technology and cryptocurrencies, i.e. the junction of all three areas. We have seen what are the biggest advantages of applying blockchain technology to artificial intelligence, but we also mentioned some of the disadvantages that arise when integrating. We also talked about some of the most successful Projects dealing with AI, and how further capital flow by investors will affect the growth and development of Projects dealing with Artificial Intelligence. We hope you enjoyed today’s blog, and if you have any questions or suggestions you can always contact us on our social networks (Twitter, Instagram).

The most wanted jobs in the crypto industry

What are we talking about today?

Cryptocurrencies are becoming more and more popular, the crypto industry is experiencing unprecedented growth, and so we’ll take a look at the most in-demand jobs in crypto, explore what the future holds for these careers, consider how you can educate yourself and navigate this exciting and dynamic field. From developing blockchain technologies to managing digital assets, etc., the opportunities are many and varied, and we will guide you to the most interesting and promising careers in the crypto industry.

Source: cointelegraph

Blockchain developer

In the world of cryptocurrencies, blockchain developers are key players who develop the foundations for new ways of trading, investing and exchanging value. They most often work on the development of smart contracts – stand-alone applications that are executed on the blockchain when predefined conditions are met. Blockchain developers are expected to master various programming languages, such as Solidity (the language of Ethereum ), Java, JavaScript, Python and others, in order to be able to create complex and secure applications. The average annual salary of a blockchain developer hovers around $120,000, with a range that varies depending on experience. For those just entering this career, salaries can start at $60,000, while more experienced developers can earn up to $250,000 per year. When it comes to education, there are many online resources and courses that allow you to acquire the necessary knowledge from the comfort of your own home. From certificates to full courses, a wide range of learning and development opportunities are offered. This enables flexibility and accessibility of education, which is especially important in the rapidly changing world of blockchain technologies. However, on the job itself, the most important thing will be resourcefulness and logical thinking, which is mostly acquired through years of experience.

Source: cointelegraph

Crypto investment fund manager

Managers of crypto investment funds stand at the forefront of fund management, and try to maximize the earnings of crypto investors. These experts must possess knowledge in the field of finance, market analysis, and an understanding of blockchain technology and cryptocurrencies. They are expected to be familiar with the legal and regulatory framework that shapes cryptocurrencies, as well as with risks and portfolio management strategies. Education in this direction can include specialized courses and certificates in the field of cryptocurrencies and digital assets, as well as programs that offer practical knowledge of finance. Many of these programs are available online, allowing flexibility and access to knowledge from anywhere. In terms of income, expectations may vary depending on experience and the size of the fund being managed. However, the average annual salary for crypto fund managers ranges from $80,000 to $120,000, while the most experienced professionals in this field can expect much higher incomes.

Source: cointelegraph

Data analyst

Data analysts play a key role in interpreting vast amounts of market data. These experts must be adept at collecting and analyzing data from a variety of sources, including blockchain networks, stock exchanges, and social media. Knowledge of advanced data analysis tools and numerous technological know-how is required to identify patterns and trends that can help business entities and investors make decisions. For education in this field, at least a bachelor’s degree in computer science or information security is recommended, and some jobs may require a doctorate. In terms of salary, the average annual salary for a data analyst in the crypto industry globally is around $70,000, with the range varying depending on experience and job specifics. At the low end, salaries can start at $20,000, while at the high end they can reach up to $120,000 per year. In the United States, the average salary for a data analyst in the crypto industry is currently $140,000.

Source: cointelegraph

Head of Cryptocurrency Marketing

Marketing leaders play a key role in shaping perceptions and attracting investors to cryptocurrencies and projects. These professionals must have a deep understanding of consumer psychology, strategic planning, and the ability to manage content and social networks. Given the fast-growing Web3 space, marketing leaders need to be at the forefront of innovation and creative marketing campaigns that attract and retain customers. Education in this direction is mostly based on many years of experience in digital marketing, and knowledge of blockchain and cryptocurrencies. If we look at income, the average annual salary for marketing managers in the crypto space hovers around $80,000, while the top 10% can expect an average salary of around $150,000. This shows that marketing in the crypto industry is not only challenging and exciting, but also very rewarding.

Source: cointelegraph

Crypto UI/UX designer

UI/UX designers are essential for creating intuitive and engaging digital products. They are responsible for designing user interfaces and experiences that allow users to easily and securely manage cryptocurrencies. Crypto UI/UX designers should have knowledge of design principles, user psychology, blockchain technology, and security aspects related to crypto transactions. Education in this direction may include the study of design, computer science or similar disciplines, with a little less knowledge of the crypto industry. Also, it is important to continuously learn and follow the latest trends in technology and design. Of course, we’re all interested in income again, so here’s the data, the average annual salary of a crypto UI/UX designer in the US is around $110,000, with a range of $80,000 to $140,000. These salaries can vary depending on the experience, location and size of the company the designer works for, but generally they are in the mentioned range.

Source: cointelegraph

Conclusion

In today’s blog, we presented some of the most sought-after jobs in the crypto industry. It is very noticeable that the incomes of these professions are extremely high, and the main reason for this is the lack of labor in the crypto industry. The simple reason for this is the lack of education about cryptocurrencies. There are too few people who are thoroughly versed in the crypto industry, and thus possess too little knowledge to be employed in the crypto world. That is exactly why education about cryptocurrencies and some additional knowledge that crypto companies can use is very profitable. It’s up to you to decide what you’re going to study, that is, what you find interesting, and eventually try to get a crypto job, if you think it’s something you’re interested in. We hope you enjoyed it and learned something new. If you have any questions, you can always contact us on our social networks ( Twitter , Instagram ).

Why exactly 21 million bitcoins

What are we talking about today?

In the world of cryptocurrencies, one of the most intriguing aspects of Bitcoin is its limit of 21 million bitcoin units. This limit is not just a number; it is a key design element that differentiates Bitcoin from traditional currencies and encourages thinking about value and sustainability. In today’s blog, we will reveal the secrets behind this number. We will explain why a limit was set on the amount of Bitcoin that will exist in the first place and explore the main theories that try to explain why the number 21 million was chosen. From economic logic to technical limitations, we will explain the basics of this digital currency to understand what this limit means for the future of Bitcoin and the entire crypto world.

Source: cointelegraph

Why is there a limit at all?

When Satoshi Nakamoto created Bitcoin, he didn’t just launch the first cryptocurrency – he laid the foundations for a completely new economic system. Unlike the traditional monetary system where central banks can “print” money without limits, which can lead to inflation, Bitcoin is designed as a currency with a fixed limit. This limit of 21 million Bitcoins represents a vision of money whichem offer cannot be artificially increased and whose value is protected from devaluation through inflation. The limited amount of Bitcoin also reflects the principle scarcity which is present in nature – like gold, whose value is partly derived from its rarity. This digital rarity creates a perception of value among users and investors, much like rare works of art or antiques retain a high price on the market. Additionally, a fixed limit encourages transparency and predictability in the flow of currency, two key elements that have often been lacking in traditional financial systems. Satoshi may have had technical aspects in mind as well – given the limits on block sizes and the time it takes to process transactions, setting a limit helps keep the network efficient and scalable. Ultimately, the 21 million Bitcoin limit symbolizes a new era of monetary policy—one based on mathematical principles and decentralization, rather than the decisions of individuals or institutions. It is an economic experiment that year after year continues to defeat traditional concepts of value for money based on central planning .

Source: cointelegraph

The first theory

The replacement theory of money supply represents the first thinking about limiting Bitcoin to 21 million units. Satoshi Nakamoto , the creator of Bitcoin, intentionally slowed the rate at which new Bitcoins come into existence, with the intention that each individual unit, or satoshi, gains in value over time. This vision is reflected in the supposed communication between Nakamoto and Mike Hearn , where Satoshi expressed the opinion that if a small part of the world economy used Bitcoin, the value of 0.001 BTC (1 mBTC ) could be about 1 euro. This prediction came true in 2013. year, when Bitcoin first exceeded the price of €1,000, and today the value is mBTC– and even bigger. Interestingly, at the time of Bitcoin’s creation, the total world money supply, known as M1, was estimated at approximately $21 trillion. If Bitcoin became the world’s sole currency, replacing all the currencies that make up M1, each BTC would be worth $1 million, making the value of each of satoshi was set to $0.01. This almost perfect correlation between the numbers suggests that the setting of the 21 million limit was not accidental, but deliberate, with the goal of creating a currency whose value is stable and predictable, contrary to the inflationary trends that characterize traditional monetary systems. However, since 2009 M1 money supply has changed, and it is unlikely that Satoshi he could not have predicted this. So it is unlikely that this is the correct theory about dialing the number 21 million.

Source: cointelegraph

An alternative theory

Another, and according to many more likely, theory about the origin of the limit of exactly 21 million bitcoins lies in the very structure of the Bitcoin network. This alternative theory suggests that the 21 million BTC figure is the result of mathematical logic that controls the supply of the currency, rather than random Choice. Parameters set by Satoshi Nakamoto ensure that blocks are mined at regular 10-minute intervals and that block rewards decrease as we approach maximum supply. These parameters inevitably lead to the final figure of 21 million BTC. Each four-year mining cycle has a total of 210,000 blocks, and the block reward is se halves after each cycle. Starting at 50 BTC per block, the reward decreased to 25 BTC, then to 12, 5 BTC, and currently stands at 6 ,25 BTC per block. If this trend continues, the sum of the block rewards for each cycle will be 100, which multiplied by the number of blocks per cycle gives a maximum supply of 21 million BTC. This theory emphasizes the mathematical precision behind Bitcoin, suggesting that the 21 million limit may be less of a philosophical choice and more the result of mathematical rules that shaped Bitcoin’s protocol. Regardless, just Satoshi Nakamoto knows the real reason for choosing this number, and the secret will forever remain undiscovered .

Source: cointelegraph

Conclusion

Throughout this blog, we’ve explored the topic of bitcoin supply limits and the reasons behind the specific number of 21 million. We explained why Satoshi Nakamoto, the creator of Bitcoin, set the limit in the first place, emphasizing his vision of money that cannot be endlessly printed, which stands in stark contrast to the current economic system. Also, we considered two main theories that try to explain why the number 21 million was chosen. The first theory relies on the idea that the limit was put in place to ensure the deflationary nature of Bitcoin, while another theory suggests that the number is the result of mathematical logic built into the Bitcoin protocol. Regardless of which one is the theory true , it is clear that the limit of 21 million bitcoins is crucial for the survival of Bitcoin, because this limit is very likely the most unique characteristic of Bitcoin and distinguishes it from any other asset in the world. We hope you enjoyed the reading today’s blog, if you have any questions or suggestions feel free to contact us on our social networks ( Twitter , Instagram ).