Boxmining v2

Author: Angela Wang

  • Starly.io ($STARLY) global listing and staking program

    Starly.io ($STARLY) global listing and staking program

    STARLY listing on KuCoin

    Starly ($STARLY) will be launching on KuCoin with STARLY/USDT trading pair. Details are as follows:

    • Deposits open from 16 February 2022 (Supported Network: BEP20)
    • Trading: 10:00 on 17 February 2022 (UTC)
    • Withdrawals: 10:00 on 20 February 2022 (UTC)

    The total supply of STARLY will be 100,000,000 with a market cap of US$4,756,784.

    The circulating supply will be 5,945,980 STARLY at US$0.8.

    Starly token staking: How to guide

    Staking your STARLY tokens helps support the development of Starly, in return, token stakers can receive rewards. Staking Starly requires 2 simple steps:

    1. Add STARLY tokens to your wallet; and
    2. Stake STARLY

    How to add STARLY tokens to your wallet

    To add STARLY onto your wallet, you must be on the Flow blockchain. For those who participated in Starly’s Blocto IDO, your tokens are already on Flow.

    On the other hand, if your STARLY is on Binance Smart Chain (BSC), you will need to use the Blocto teleport to bridge your STARLY from BSC to Flow by connecting your wallets. On the Blocto teleport:

    1. Select the STARLY token;
    2. select BSC blockchain in the “from” field;
    3. select Flow blockchain in the “to” field; and
    4. select “connect BSC”.

    How to stake STARLY tokens

    On the Starly website, go to the “Staking” tab and enter the amount of STARLY you would like to stake (Tip: you can stake your STARLY in several batches so that you can unstake them separately later on).

    After you have staked your tokens you would be able to see the amount staked, unlock date, and annual interest. Staked tokens are locked for 30 days- afterward you can claim your tokens and STARLY rewards at any time. Of course, the longer you stake your STARLY tokens, the more additional tokens you can earn. To unstake your Starly, simply click “unstake”. (https://www.disabilityhelpcenter.org/)

    Staking STARLY will yield a guaranteed 15% annual percentage rate. However, for a limited time only, Starly is offering a special 20% APY on all tokens staked before 15 March 2022.

    Learn more about staking STARLY here.

    About Starly

    Starly ($STARLY) is a launchpad and marketplace for creators and collectors to expand their economies around gamified NFT collections. Collecting NFTs on Starly will be an immersive experience with different NFT rarity classes, distribution of NFTs in sealed packs along with features such as limited editions, rewards, collector scores, and game-like mechanisms.

    NFT collectors on Starly can experience the excitement of pack opening, marketplace trading, all whilst being rewarded for achieving key milestones. Starly aims to transform NFTs into a social experience and create a one-of-a-kind relationship between the creators and their community.

    Find out more

    Website: https://starly.io

    Twitter: https://twitter.com/StarlyNFT

    Discord: https://discord.com/invite/starly

    Telegram: https://t.me/starly_chat

  • 60,000+ Participants in Travel ($TRVL) Token Launch

    60,000+ Participants in Travel ($TRVL) Token Launch

    Dtravel ($TRVL) are thrilled update on the community support received over the last week. The launch events for TRVL — the token powering the Dtravel platform — have had over 60,000 participants across MEXC’s launchpad, Bybit’s launchpool, Gate’s Startup program and Polkastarter’s IDO.

    The excitement from the community toward a shared vision of a community-led and community-owned home sharing economy has been incredible, and Dtravel can’t wait to start building the ecosystem.

    If you didn’t get a chance to participate in the MEXC, Gate or Polkastarter events, the Bybit launchpool is still ongoing until 28 November 2021 at 7:59AM UTC.

    TRVL will be available from 26 November 2021 at 1:00PM UTC on the following exchanges:

    Once again, a big thank you to the Dtravel community for your spectacular support! More updates coming soon!

    About Dtravel

    Dtravel is a decentralized, global home sharing community that facilitates seamless short-term accommodation discovery, bookings and payments, with much lower fees than other home sharing platforms. Conceived by former executives of global technology companies such as Airbnb, Expedia and more, Dtravel aims to empower its members — including hosts, guests and token holders — to participate in the growth and decision making of a new type of home sharing economy through community governance.

    Website | Medium | Twitter | Telegram | Telegram Announcements

  • MetaWars Launches With Successful Results, Discusses Future Plans

    MetaWars Launches With Successful Results, Discusses Future Plans

    MetaWars, the next-generation sci-fi strategy game, has officially launched the $WARS token. MetaWars successfully developed the best tokenomics for its ecosystem with the help of marketing partners that led to the release of the $WARS and $GAM tokens on the blockchain.

    A Quick Recap About MetaWars

    MetaWars is a sci-fi focused strategy game that enables players to earn through gameplay. Players can embark on their journey in a highly-realistic space environment during the game with the help of NFTs in the form of resources and mechas. The game’s play-to-earn feature enables players to fight, trade, and play while earning NFTs and additional rewards. For more information check out our full Metawars guide.


    The Legacy So Far

    MetaWars released their pre-launch NFT auction from the 21st to the 27th of October, which allowed buyers to purchase valuable in-game assets and supplies. The event garnered huge success, nearing a total of 1,000 bids by the end of the auction.

    The project continued their impressive feats on the day of their launch on the 27th of October, with an initial listing price of $0.008 on PancakeSwap skyrocketing over 100x.

    The staking pool and dapp also went live recently for the community to stake $WARS tokens. Players, in turn, earn $GAM tokens, an in-game utility token that will play a vital role in the MetaWars universe.

    Launch Highlights

    • The pre-launch NFT auction successfully obtained close to 1,000 bids and raised a total of 2,000 BNB.
    • MetaWars’ $WARS tokens were sold out in a flash on all three launchpads — Polylauncher, GameFi and Red Kite — within minutes.
    • The very first MetaWars game trailer and demo was released to the public in order to show a glimpse of the immersive gameplay — interested parties can view the clip here.
    • Staking of $WARS and $WARS-BUSD LP went live on MetaWars’ dapp, access it here.
    • MetaWars’ Discord server remains active with more than 22,000 members to date and an invitation contest is currently underway that will enable participants with the most invites to earn limited in-game asset NFTs.

    Future Plans 

    Following a hugely successful launch, MetaWars is currently working on its adventure game, with plans to release it later this month. The NFT staking feature is also currently in the works and will be announced to the public in the near future.

    More details about the game will be announced soon. To follow up with MetaWars’ updates and developments, follow their social media channels below.

    About MetaWars

    MetaWars is a play-to-earn next-generation blockchain gaming experience. Explore and battle throughout the universe. Fight, trade, and earn robots, ships, and planetary terrain backed by in-game NFTs. The $WARS token will become the anchor of an entire universe up for grabs.

    Website | Twitter | Telegram | Reddit | Discord

  • Ethereum 2.0 London Hard Fork Roll Out

    Ethereum 2.0 London Hard Fork Roll Out

    (as of August 24th, 2021)

    This is an update of an older article on Ethereum 2.0. Click here to read the previous version.

    London Hard Fork

    The highly anticipated Ethereum London Hard Fork upgrade went live on August 5th, 2021, which sent the price of ETH rallying to above $2,800 for the first time since June 7th on bullish sentiment. 

    The upgrade includes a fee reduction feature called EIP 1559, which burned more than 3,000 ETH in only a few hours since taking effect.

    The latest backward-incompatible upgrade to the Ethereum blockchain introduced five new Ethereum Improvement Proposals (EIPs), ushering in a new era for the transition to Ethereum 2.0. 

    EIP 1559, EIP 3554, EIP 3529, EIP 3198 and EIP 3541 are code upgrades that aim to improve the network’s user experience and value proposition.

    It is fair to say that the London upgrade received more media attention than previous upgrades, but rightfully so as this upgrade represents an important step forward for the cryptocurrency, proving that the Ethereum ecosystem is able to make significant changes. 

    That’s in stark contrast to Bitcoin, which is so decentralized that changes to its blockchain network are incredibly difficult.

    The Ethereum blockchain still has major changes ahead, most notably its transition to a proof-of-stake (POS) system from a proof-of-work (POW) system. One of the biggest criticisms faced by Ethereum is its heavy energy usage and carbon emissions released during ether mining through proof-of-work.

    A proof-of-work system relies on a network of computers around the world constantly running to solve complex problems to support and validate the blockchain. A proof-of-stake platform, which does not incentivize heavy energy consumption, allows users to put up their own tokens as collateral to support the blockchain network.

    According to its founder Vitalik Buterin in an interview with Bloomberg, the change to proof-of-stake will reduce carbon emissions related to the mining of ether by 99%. Buterin expects the merge to Ethereum 2.0 to take place in early 2022 but it could come as early as late 2021. 

    The London hard fork “definitely makes me feel more confident about the merge.” Buterin told Bloomberg, going on to add that the transition to a proof-of-stake system would eventually change the economics of ether, such as a supply cap similar to bitcoin’s 21 million coin limit.

    EIP 1559 – Making Ethereum less inflationary

    The EIP 1559 upgrade is the most discussed code change of the London hard fork, altering the transaction fee structure for the Ethereum network. Instead of fees going directly to the miners that process and validate transactions, a base fee would instead go to the miners and to the network before being burned and removed from circulation.

    EIP 1559 removed the first-price auction as the main gas fee calculation, where users typically bid a dedicated amount of money to pay for their transaction to be processed on the Ethereum blockchain. 

    Gas fees are fee payments required from users who create transfers or transactions on the Ethereum blockchain. Previously, users paid these fees without knowing the exact price to pay beforehand. In order to make sure the transaction gets processed, some users overpaid to ensure the transaction went ahead smoothly. Other users who paid less faced the uncertainty of whether the transaction will get processed in a timely manner.

    The EIP 1559 changed the method by which transactions are processed on the blockchain by enabling clear pricing on a base transaction fee paid to miners in ETH to validate the transfers. A small amount of the tokens will be burnt and taken out of the circulating supply permanently. Users may also choose to include an optional tip, a “priority fee,” along with their base fee to incentivize miners for a quicker process if desired. 

    As a result of its activation, EIP 1559 improved user experience by automating transaction prices and taking the guesswork out of an opaque auction process, while still allowing miners to earn from tips and block rewards.

    EIP 3554 – Defusing the difficulty bomb

    EIP 3554 delays the “difficulty bomb” that is coded to make mining more difficult, essentially “freezing” it in preparation for Ethereum’s transition away from a proof-of-work model. 

    Also called the “Ice Age,” the difficulty bomb is intended to disincentivize miners from using proof-of-work once Ethereum 2.0 is ready by making block rewards much harder to come by. EIP 3354 pushes the Ice Age back to December 1st, 2021, hinting that the merge with Ethereum 2.0 may happen at the end of the year. 

    This is the fourth time that the difficulty bomb has been delayed, and unless the network is finally ready to move to proof-of-stake by the end of the year, it’s likely to be delayed once again in yet another network upgrade.

    EIP 3529 – Reducing impact-less refunds

    EIP 3529 reduces gas refunds, which were typically used to incentivize developers to reduce or delete unused smart contracts and addresses on Ethereum. 

    “Gas tokens” like Chi and GST2 gamed the system by taking up space on the network when gas fees were low and reaping the benefits by deleting their data when gas fees were high. With the implementation of EIP 3529, these tokens will become obsolete.

    EIP 3198 – Improving smart contract UX

    EIP 3198 improves the user experience of smart contracts by adding an operation code (opcode) that gives the EVM (Ethereum Virtual Machine) access to the block’s base fee.

    The base fee is a small amount of Ether paid for each block created which can help with gas efficiency and reduction in transaction costs. Some applications will be able to use this fee, and other applications may choose not to use this opcode in their smart contract code if they do not need it. 

    This improves the user experience of smart contracts by increasing the security for state channels, plasma, optimistic rollups and other solutions that prevent fraud. 

    EIP 3541 – Making future updates easier

    EIP 3541 sets up future upgrades to the Ethereum Virtual Machine (EVM) by removing the ability to start new contracts with “0xEF or Executable Format.” 

    Although it won’t have an immediate effect on the network, it sets up future changes and restricts the EVM from consuming specific data types. 

    ETH 2.0 Becomes The Leading Holder of Ether

    At present, the staking contract of Ethereum 2.0 has become the largest holder of Ether (ETH).

    According to blockchain analytics provider Nansen, the ETH 2.0 staking contract has surpassed Wrapped Ethereum (wETH) to become the single largest holder of ETH. Unlike Ether, Wrapped Ether adheres to the ERC-20 standard, making it the favored representation of ETH among decentralized finance protocols that use ERC-20 tokens.

    Alex Svanevik, the CEO of Nansen, put up his findings on Twitter on August 16th, 2021. According to the available data, the Beacon Chain’s deposit contract holds 6.73 million ETH – worth roughly $21.5 billion at current prices.

    nansen analytics data Ethereum 2.0
    Nansen analytics data

    By contrast, Nansen’s data suggests the Wrapped Ethereum contract holds 6.7 million ETH ($21.4 billion), followed by Binance with 2.29 million ETH ($7.3 billion).

    The quantity of Ether locked and staked on ETH 2.0 currently represents 5.7% of Ethereum’s circulating supply, according to CoinMarketCap. There are now 210,000 validators for the ETH 2.0 network, according to Beaconcha.in.

    Currently, Ether staked on ETH 2.0 is locked up and cannot be withdrawn from the contract until Ethereum’s forthcoming chain merge, which will meld the Ethereum and ETH 2.0 networks.

    According to Staking Rewards, ETH 2.0 is currently the third-largest proof-of-stake network by staked capitalization, ranking behind Cardano’s $49 billion and Solana’s $27.5 billion.

    FAQ

    What is the London hard fork?

    Ethereum’s London hard fork is an irreversible network upgrade consisting of five Ethereum Improvement Proposals (EIPs), all of which are code upgrades paving the way for the network’s transition in the future from proof-of-work to proof-of-stake.

    What is EIP 1559?

    EIP 1559 changes how transaction fees work on the Ethereum blockchain in two ways. First, it adds a base fee to every transaction that takes place on Ethereum. This base fee aims to lower overall costs to the user, because it will improve gas fee estimations.

    Second, transaction fees will no longer go to miners, but to the Ethereum network itself, before being burned and taken out of circulation.
    These base fees are set using an algorithm and there will be an additional option to pay a tip to the miners to prioritize a transaction.

    Burning base fees could result in a decreased supply of Ethereum, making ETH a deflationary currency.

    What are the other key takeaways from the London hard fork?

    The upgrades will provide a better smart contract use experience. Future updates of the network will become easier with the new proposals.

    The network delayed the difficulty bomb to provide more time for the transition towards Ethereum 2.0.

    Did the London hard fork create another token?

    No. Often hard forks will lead to the creation of another token (such as the fork that created Ethereum Classic in 2016). However, in this case, the London hard fork can be considered as a network upgrade. Ethereum protocols will change, but it will still be the one and only Ethereum.

    When is the transition to Ethereum 2.0?

    The merge to Ethereum 2.0 is expected to take place in early 2022 or possibly in late 2021.

    Sources:

    https://www.fxstreet.com/cryptocurrencies/news/over-9-million-ether-burned-following-ethereum-london-hard-fork-as-network-gears-up-to-eth-20-202108060156

    https://markets.businessinsider.com/news/currencies/ethereum-london-hard-fork-eip-1559-vitalik-buterin-carbon-emissions-2021-8

    https://www.coindesk.com/ethereum-hotly-anticipated-london-hard-fork-is-now-live

    https://cointelegraph.com/news/eth2-staking-contract-ranks-as-single-largest-ether-hodler-with-21-5b

    https://www.coindesk.com/valid-points-eip-1559-hasnt-affected-miner-revenue

    https://www.fxstreet.com/cryptocurrencies/news/what-is-ethereum-eip-1559-and-how-will-it-affect-eth-price-202108030445

  • OpenSea: Peer to peer NFT marketplace

    OpenSea: Peer to peer NFT marketplace

    OpenSea sees itself as an industry-leading decentralised exchange (DEX) for peer to peer trading of Ethereum-based non-fungible tokens (NFTs). NFTs are tokens that are one of each kind thanks to specific features or signatures that differentiate them from those in related packages. As a result, many secondary markets have developed solely for the trading of unique assets, which became popular following the rise of NFT collectors.

    What is OpenSea?

    OpenSea is a global market for buying and selling digital items. Items include digital goods based on digital art, crypto-collectables, gaming items, digital art, and other digital assets built on the Ethereum ERC-721  and ERC-1155 standards. On OpenSea, you can purchase, sell, and exchange all of these tokens with anyone in the world. At present, OpenSea is the largest decentralized marketplace for digital goods with over 700 different initiatives, including trading card games such as Gods Unchained and CryptoSpells, collectable games such as Axie Infinity and CryptoKitties.

    These goods have multiple categories and are 100% tokenized and digital. As the proof of ownership and transactions are stored permanently on the blockchain, you get to become the valid owner once you pay for them. And unlike physical items, they cannot be “stolen” from you and sold elsewhere as the record of your ownership and any subsequent chain of ownership is permanently recorded on the blockchain.

    Trading on this platform occurs through a smart contract, meaning that your NFTs are never held in custody by any central authority. It also means that parties can trust that the trade will occur as per their agreement without needing to rely on a middleman. NFTs can be stored in a software wallet such as Enjin wallet, Coinbase Wallet or Opera Touch, and even an in-browser chrome plugin like MetaMask.

    Background

    Alex Atallah and Devin Finzer laid the foundation of the OpenSea platform in January 2018. Both have expertise from their backgrounds in Palantir, UC Berkeley, Google, Stanford, Facebook, and Pinterest to form a strong team with experience.

    Major OpenSea partners are Quantstamp, BlockStack, Blockchain Capital, Trust Wallet, Combinator, Coinbase, Founders Fund, and 1C. The platform has raised more than $4 million, with $2.1 million led by Animoca Brands, David Pazdan of MetaMask, and Stanford StartX.

    OpenSea platform
    OpenSea platform

    OpenSea Marketplace guide and tutorial

    How to use the OpenSea marketplace?

    Initially, you need to install MetaMask on your computer.  Furthermore, you must create an account with the necessary details. Learn how to install and use a MetaMask account.

    Once your account is live, you can start using OpenSea by clicking on the person icon on the top right-hand corner of the page and connect your MetaMask. OpenSea can search your wallet automatically for any collectables you have and the money you need to purchase products on the market (like Ether).

    You can also read posts or check for something unique on the platform, and even participate in an auction or design items for your own auction. Most items prices are valued at a set price, whilst auctions typically market rare or unsold goods at a higher cost.

    The price of the goods varies widely based on the kind of item, what discounts are available, etc. You will be able to purchase or sell intangible properties on the platform, which ensures that after you have acquired the rights to their possession, you will be able to sell them again at a later day if you so wish.

    How to purchase or bid on NFTs in OpenSea?

    You can browse the various NFTs offered for sale on the platform. On the front page, the NFTs are organised by categories such as digital art, and virtual worlds and collectibles for various blockchain games etc. You can also see the sales history for the NFTs and see how much others have paid for the same item.

    The platform uses Wrapped ETH (WTH) for bidding as it allows the user to bid on multiple items on the same Ether pool.

    To start bidding, go to your bids section of your OpenSea account and follow the below steps :

    1. Select the item of your choice: Firstly, select the item you desire and hit “Make an offer” to initiate a bid. Then, enter the amount that you would be willing to pay for it. (https://www.visitinfinity.com/)
    2. Wrap your ETH: Once you click on  “Continue”, ETH will be upgraded to WETH via WETH station. In order to make more bids, the platform upgrades .05 WETH.

     It is worth noting that you’ll need to make two transactions the first time you upgrade your ETH.

    1. Place a bid: Once both the transactions are confirmed,  add the offer amount, and click “Confirm Offer”. Now your Bid is posted.
    2. Share your Email: Finally, you need to submit your email so you could get a notification once your bid is accepted.

    To purchase an NFT, users have the option to enter a bid for the listed goods by using the “make offer feature”. Alternatively, some sellers have a fixed price for their items.

    How to list NFTs for sale on OpenSea

    To post a listing, first, find the item on your Account page located on the top right-hand corner. Then click on “My Items”, find the desired item and click “Sell”. Here, one can select the price and duration of the deal and form of bid.

    Listing an item is free of charge, but note that OpenSea can charge a 2.5% fee on the final selling price if goods are sold successfully.

    Conclusion

    As NFTs are still relatively new, its use cases are still an area that is constantly being explored. However, if the crypto community steps into more innovation in the NFT ecosystem, they have a high chance of attracting vast audiences from gamers and collectors. OpenSea is the biggest global marketplace in the world for crypto-collectibles and NFTs, including assets such as ERC-721 and ERC-1155.

    OpenSea has a good track record as a secure platform for specific blockchain-based assets. For many large games like My Crypto Heroes, Etheremon Adventure, CryptoVoxels, ChainBreakers, CryptoBeasties, Ether Kingdoms, etc., OpenSea has served as the key marketplace. In particular, one of the most popular NFT assets is Etheremon. Etheremon is another game based on Ethereum that is quite similar to Pokemon. The minimum cost for an Etheremon is 0.04 ETH and some can even go as high as 0.3 ETH for one of these NFTs.

    Overall, the platform is playing a valuable role in the crypto sector by providing an easy-to-use marketplace that allows the NFT ecosystem to thrive.

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • Filecoin: What is it and why is it so popular in China?

    Filecoin: What is it and why is it so popular in China?

    Filecoin ($FIL) is created by Protocol Labs and aims to provide a real use case for blockchain technology outside of finance. As the name suggests, it’s all about files. But, since the system is decentralized, how does it guarantee security and availability? Also, are those storing files paid? Here, we look at what Filecoin is, plus the reasons why it has become quite a sensation in China.

    Summary

    • Filecoin is a decentralised file storage network. Users pay for their files to be stored whilst those that help with storage are rewarded with $FIL tokens.
    • The project raised USD$200 million in its Initial Coin Offering (ICO) in 2017. Mainnet launch will be around 3:00pm (UTC) on 15th October 2020.
    • Filecoin has already been on the Chinese radar since 2018 where Chinese firms have started marketing Filecoin cloud mining services. It is considered easier to mine because specialised mining devices are not required.
    • Filecoin is also popular in China because of speculation on the price of $FIL tokens. Some exchanges already offer $FIL trading on an IOU basis.

    What is Filecoin ($FIL)?

    Filecoin is a decentralised file storing network that rewards users who store files. Those who keep files are referred to as storage miners. Users pay for their files to be stored while storage miners are rewarded for their work.

    Its distributed nature allows for peer-to-peer file storage and retrieval design. The platform has a native virtual currency called FIL, which is used to reward miners.

    The network is inspired by Web3, an advanced software development architecture that eliminates centralization. Filecoin can provide file storage services to other decentralized platforms as well. Furthermore, the network projects a way to enable transaction interaction with other blockchain platforms promoting interoperability.

    What is Filecoin Token $FIL?

    Filecoin token $FIL is the platform’s native virtual currency which is used to reward miners. Note that Filecoin mainnet has not launched yet and FIL tokens are not in circulation. However, as will be seen below a few exchanges are already trading FIL on an IOU basis. This means that users will only receive FIL tokens in the future. However, this has not deterred enthusiasts, with FIL having more than USD$100 million in trading volume every 24 hours and prices seemingly on an upward trajectory.

    Upon the Filecoin mainnet launch (see below), Huobi Global will launch $FIL and open trading, deposits and withdrawals. Other exchanges have also rushed to list one of the most talked-about Chinese projects since 2017 such as Binance and FTX exchanges.

    Filecoin Mainnet Launch

    Protocol Labs spearheaded the project’s ICO in 2017. Backed by top names in venture capital like Sequoia and Andreessen Horowitz, $200 million was raised.

    The ICO was followed by testnet postponement until 2019. Protocol Labs initially promised the mainnet launch in the first quarter of 2020.

    Filecoin mainnet has now launched at epoch 148,888- at around 3:00pm (UTC) on 15th October 2020. You can check the status of the chain here.

    How Filecoin works

    For users

    Users on the platform are charged for file storage. However, storage charges vary depending on whether a user chooses speed over redundancy and vice versa. Also, storage prices are affected by availability and demand.

    For storage miners/providers

    On the Filecoin protocol, a storage provider can either be an individual or an organization. And the only criteria for becoming a miner is having a free hard disk space and an internet connection. Miners will also have access to the entire pool of Filecoin users.

    For smooth usage, the network provides a standard application programming interface for miners and advertises their availability. Without individual marketing, storage providers rely on speed, storage space, and reliability to woe users and attract rewards.

    Filecoin has a self-healing feature that automatically checks if files on the blockchain are stored correctly. Additionally, the feature enables the network to detect faulty miners and their loads to be distributed to other miners.

    The process of self-healing generates tracks showing a miner’s history on the network. A good reputation earns them more storage opportunities hence more rewards. The system uses proof-of-file and proof-of-storage mechanisms that are not energy-intensive, like the proof-of-work mechanism employed by Bitcoin (BTC).

    Apart from general storage miners, there are also retrieval miners. These type of miners need to have a strong internet connection as they pre-fetch the most downloaded files and deliver them to users who are in close proximity. Afterward, they are rewarded for facilitating a smooth traffic flow on the network.

    China is all-in on Filecoin

    Miners are seriously considering Filecoin

    Although the protocol does not require specialized mining devices for access, China is eyeing developing Filecoin mining hardware. Furthermore, Chinese investors are already speculating on FIL’s price. In fact, the Chinese have already been into Filecoin since as early as 2018, and with the mainnet launch being potentially weeks away, the hype is only getting stronger.

    For example, when Protocol Labs announced an incentive program in early June 2020, Chinese firms started marketing cloud mining services that users can contract and use to provide storage to Filecoin users.

    With the popularity of cryptocurrency mining in China, it is not surprising that these firms attracted a minimum of $500,000 in sales in the first few days. In addition, data from blockchain explorers revealed that the leading storage miners on Filecoin are located in China. Cumulatively, these miners account for over 80 percent of the network’s testnet storage mining power at roughly 15 petabytes (15,000 terabytes).

    However, the tremendous uptake of storage mining in the Asian country can be attributed to the country’s love for Bitcoin and other cryptocurrency mining activities. Although Bitcoin trading is banned in China, most of Bitcoin’s mining power is still concentrated in the country at approximately 65 percent.

    Also, even before Filecoin went live, mining hardware companies were already hyping their products in anticipation. Andy Tian, the co-founder of 1475, a hardware manufacturing company, thinks that China’s Filecoin mining hype is partly driven by the fact that the idea behind the mining is simpler to retail miners compared to mining BTC where ASICs are used.

    The anticipation in China is so high that more than $15 million worth of Filecoin mining software and hardware has been stashed by mining pools waiting for investors and self-mining. Other large BTC mining companies like RRMine reportedly sold $15 million in cloud computing contracts “within minutes.” RRMine is also accumulating FIL mining hardware.

    Unfortunately, it’s not the amount of free space you provide to the network that matters more, but the amount of sealed data. While accessing the FIL protocol does not require massive processing power, sealing data on a hard drive does.

    The sealing can be done by harnessing power from a CPU or a GPU hardware. However, throwing a piece of specialized equipment in the mix makes it faster, allowing miners to seal more data in a day. In return, they also get more rewards.

    Chinese Companies are also speculating on Filecoin

    But it does not stop at mining. Close to 50 cryptocurrency exchanges in the Southeastern Asian country, including Biki Exchange and MXC Exchange, have FIL futures served with Tether (USDT) on their menu. Note however that this is only an IOU, as the token hasn’t actually been released yet.

    Cryptocurrency data aggregator platforms like CoinMarketCap, Feixiaohao, recorded roughly $100 million in trading volume in 24 hours. The price of Filecoin futures, however, has been fluctuating from $11 to $28 to $18 within days.

    Some firms dealing in cloud contracts, e.g., Mars Finance, project a 300 percent annual return for FIL miners without providing the amount of FIL tokens each terabyte of contracted space can bring.

    Conclusion

    Although the mainnet and the rules governing storage mining are yet to be released, the Chinese community has long gravitated towards Filecoin. Some of the reasons behind this craze can be because of China’s uneven domestic investment landscape that has alienated middle-class individuals looking for attractive investment opportunities.

    Also, China’s rigid stand on capital controls has led Chinese investors to seek reputable cryptocurrency or blockchain-based projects that can facilitate financial interaction with the rest of the world. Filecoin’s association with leading venture capital firms makes it attractive to the Chinese community. Also, its storage mining tag makes it simple for retail miners and investors.

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • REVV: Animoca Brands’ racing games go crypto

    REVV: Animoca Brands’ racing games go crypto

    REVV is the currency of purchase, utility and action for Animoca Games‘ motorsports games. Animoca Games is a blockchain gaming firm and global game developer which leverages popular brands such as Power Rangers, Masterchef etc., together with gamification, AI, blockchain and mobile technology to create gaming apps.

    Check out my debate with Co-Founder and CEO, Yat Siu where we debated whether Non-Fungible Tokens (NFTs) are the NEXT BIG THING, and I did NOT hold back playing Devil’s Advocate:

    Background

    Animoca Brands released its own utility token called REVV to power its blockchain-based gaming platform. The goal of the team is to build an ecosystem that will link the economies of their company’s games together.

    Animoca believes that REVV’s presence in all its blockchain games will help attract more people to their platform and add value to the token for accessing a larger consumer base. REVV is designed to be the “currency of purchase, utility, and action” for the ecosystem’s gaming titles.

    According to recent reports in July 2020, Animoca has already reached over $4 million in revenue, with $1.8 million from their assets kept in cryptocurrency holdings.

    “Revv can be used right now for our time trial games and soon also to buy and trade our NFT and game assets,” said Yat Siu, co-founder of Animoca Brands.

    Here’s our video on NFTs and what they can do for gaming.

    Non-Fungible Tokens Explained (ERC 721, ERC 1155)

    What is REVV?

    REVV is a non-fungible cryptocurrency token based on the Ethereum blockchain. It is utilized as a medium of exchange for REVV’s ecosystem, as well as Animoca Brands’ gaming platforms like F1 Delta Time.

    REVV is already available on Uniswap, one of the biggest exchanges in the DeFi space today. Trading began against ETH last September 4, with an initial token price of $0.00666.

    REVV is one of the latest additions to projects aimed at improving the adoption of NFTs, which many consider to be a hundred million dollar market. A similar project named SAND, established under The Sandbox, a mobile gaming platform, was also recently listed on Binance.

    REVV ecosystem

    The REVV ecosystem is a collection of games whereby players can use the REVV token and the NFTs across their games. Their first games will be F1 Delta Time (an official product of the FIA Formula One World Championship) and its upcoming MotoGP title. F1 Delta Time is expected to be released in November 2020, whilst the MotoGP title will be released in Q4 2020. REVV is also planning a third blockchain game soon and it is expected to also be based on a global racing franchise.

    Furthermore, with REVV’s partnership with Atari, Atari’s classic motorsport video games Night Driver and Fatal Run will also be joining the REVV ecosystem.

    REVV token

    REVV token acts both as a utility token as well as the in-game currency of the motorsports games produced by Animoca brands. There are two features of the REVV token:

    Play Utility: REVV can be used by players to enter Grand Prix and Time Trial game modes. There is a set fee for the Time Trial, with the Grand Prix priced on a tier-basis. Higher tier games require more REVV, which also secures more rewards for the best performers.

    The Tyre Durability systems also require REVV. To maintain the durability of a player’s tyres in the game, they have to pay in REVV for restorations depending on their condition.

    Purchase Utility: REVV can be used to buy F1 Delta Time 2020 Collectibles.

    REVV NFTs

    REVV is already selling their NFTs for F1 Delta Time. On the F1 Delta Time NFT marketplace on OpenSea, there are already 11,427 items listed and 571 owners.

    F1 Delta Time NFTs
    Some of the NFTs available on OpenSea

    Once the F1 Delta Time game is launched, the NFTs will become usable in the game for example to upgrade their cars, drivers, racetracks etc. Once more games under REVV are released, it is expected that the NFTs can be used in these other games too. In addition, these NFTs have value as collectables since Animoca Brands holds the licenses to both Formula One and Motor GP brands.

    REVV Pools

    REVV keeps a pool of tokens created to support the F1 Delta Time ecosystem. The allocation in REVV pools, however, can still be changed in the future depending on the outcome for other titles.

    • Reserve: 200,000,000 REVV is kept for future use as a back-up fund as the ecosystem continues growing.
    • Game Operations: 273,980,000 REVV is allocated to the primary pool of the game. It will be used to support the reward mechanism of the platform.
    • Staking: 6,020,000 REVV is allocated for its 2019 staking run, but the staking pool for 2020 can include REVV allocated in the Game Operations Pool, Reserve Pool, or both.
    • Marketing and Promotions: 20,000,000 REVV is allocated from promotional airdrops.

    Staking

    Staking on Animoca Brand’s game, F1 Delta Time will be available from 15th September 2020 onwards. Users who stake their F1 Delta Time car NFTs will enable them to earn REVV tokens. How many tokens you would be entitled to is determined mainly by how rare the NFT is, with rarer items being able to generate greater returns.

    30mil REVV tokens have been allocated to the staking pool for users to claim. From 15th September 2020 (HKT), the first round of staking will begin for 4 weeks. A total of 2.04mil REVV will be available for claim. After this, there will be a further 12 week period of staking where 10mil REVV is up for grabs.

    More details on the staking feature are available here.

    Rewards: how to earn REVV

    There are two ways to receive REVV. One is by participating in its sale, another is by playing the game.

    Promotional: Verified accounts on the F1 Delta Time will receive 50 REVV upon joining the game. Those who also participated in the game’s 2019 Crate Sale will be given REVV based on the category of the crate they are holding.

    The cut-off period for this set of rewards is yet to be announced but will be published soon.

    Play-to-Earn: REVV will also be given as a reward for players depending on their race car NFTs and other gaming features. Gaming modes such as Time Trial and Grand Prix also entitles players to some REVV rewards, especially those who are included in the game’s Leaderboards.

    Another opportunity to earn comes in the form of dividends doled out to Track owners since these are also considered “ownable NFTs.” These owners will be given a proportion of their share in the total amount of REVV spent by players to race in that Track.

    Recent Updates

    From the time that they announced the sale of REVV on Uniswap, seven million tokens were sold out in just 20 minutes.

    Included in their roadmap are plans on expanding their ecosystem to GAMEE and QUIDD, both of which are gaming and collectible companies that they have acquired in July this year and August last year, respectively.

    Partnership with Atari

    On 12th October 2020, REVV announced its partnership with iconic video gaming company Atari. Atari owns and/or manages a portfolio of over 200 games and franchises such as Asteroids, Pong and RollerCoaster Tycoon.

    The partnership was in the way of a token swap whereby the 2 companies have agreed to swap USD$625,000 worth of each others’ tokens. Specifically, Animoca will provide 5mil REVV tokens at USD$0.025 per token, in exchange for 7,812,500 ATRI tokens, along with its other tokens it is in the process of being listed. 90% of REVV and ATRI will be locked for 18 months from the delivery date, whilst the remaining 10% will be unlocked on the first day the tokens list on an exchange.

    Conclusion

    It is definitely good to see that the expansion of use cases for the blockchain has already reached a lot of individuals. Real-life or digital activities tapping into the power of blockchain does not merely stimulate more innovation, but also help facilitate mass adoption.

    The first step in mass adoption is to convince the public about the ease of transactions that can be made in crypto, as well as the capacity of these digital currencies to be used as a store of value.

    And we have made enormous progress so far in the last decade. Innovations like REVV give people the opportunity to make crypto transactions with utmost convenience and security, which is exactly what blockchain has promised since its inception. It is also bringing cryptocurrency into the world of gaming, which most people have been hotly anticipating as the most likely route to mass adoption.

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • PlotX ($PLOT): Putting prediction markets on the blockchain

    PlotX ($PLOT): Putting prediction markets on the blockchain

    PlotX allows people to plot the next possible outcome and are rewarded for correct predictions. This whole concept originates from prediction markets. Prediction markets such as sports betting are expected to reach a valuation of $155.49 billion in the United States by 2024. The markets have also been supported by the uptake of online casinos and betting sites. In some cases, more than a few players have tapped into the power of blockchain technology to provide transparency in a market that has been kept in secrecy and under unfair setups.

    With the growing popularity of open finance (OpFi), blockchain-based platforms are helping users to predict the direction of the market and, just like in the traditional prediction market, be rewarded if their prediction is correct. PlotX is one such platform.

    Check out my interview with Ish Goel, Co-founder of PlotX:

    Background: Who is behind PlotX?

    The project lives by the popular mantra by Abraham Lincoln that the future can only be predicted by visualizing it in the present. PlotX has a dedicated team led by Ish Goel, Nitika Goel, Kartic Rakhra, and Satheesh A. Furthermore, the team’s vast experiences are spread across various sectors.

    For example, Ish Goel has been involved with Ethereum since 2016 and won the London Blockchain Week Hackathon in 2017. Meanwhile, Nitika Goel led the development of Nexus Mutual and co-founded GovBlocks. PlotX’s key partners also include GovBlocks, Matic, and Venrai.

    PlotX team
    PlotX team

    What is PlotX?

    Built on the Ethereum blockchain, PlotX is a network that seeks to make trading in decentralized finance (DeFi) “simple and fun!” by powering a prediction market with cryptocurrency traders in mind.

    At the heart of the platform is a decentralized application (Dapp) that enables virtual currency traders to forecast the future of Bitcoin (BTC), Ether (ETH), among other cryptocurrencies in a weekly, daily, and hourly basis. The project also takes decentralised finance (DeFi) platforms such as Uniswap that use an automated market maker model into consideration.

    Notably, the decision to provide market predictions stems from somewhere, i.e., the problems found in centralized platforms offering prediction services. The major problems include the high cost of using conventional systems, assuring fairness, and counterparty risks.

    Tried but failed, time to do it again

    Although the creation of cryptocurrency-centric prediction markets has been tried on decentralized systems, the time was not ripe. Therefore, it saw little, if any, adoption.

    Being a DeFi-focused prediction platform, PlotX aims to power crypto-based predictions using distributed ledger technology. It enables on-chain market creation using smart contracts. PlotX enables participation mining via a gamified experience by drawing inspiration from yield farming or liquidity mining as used in DeFi protocols.

    Additionally, PlotX seeks to provide instant rewards, short market cycles, and employ a mechanism that spreads the risks. Spreading risks enables a user to tailor his exposure to mitigate losses emanating from wrong predictions. With this option, users lose roughly 20% of their total prediction stake.

    PlotX platform
    PlotX platform

    However, the staked amount can be customized to mirror the users’ risk appetite starting from 1x, 2x, 3x, 4x, and 5x. Note that the higher the risk, the higher the reward and potential loss.

    Governance on PlotX

    The protocol employs a community-based governance model through the use of a decentralized autonomous organization (DAO) that votes and initiates proposals regarding changes to the system.

    This approach plays a vital role in providing on-chain governance in a blockchain-based prediction market. However, for non-blockchain dispute resolution, the platform has an advisory board. The board does not have any rights to funds, and its roles grow weaker as the community grows stronger.

    To power this model, the platform mirrors the approach used by Nexus Mutual. In addition, it incorporates smart contracts built on the GovBlocks network to strengthen community involvement.

    The platform also uses smart contracts that allow decision points to be edited, token holders to raise issues, as well as enable the token holders to reach an agreement.

    PlotX’s components of a healthy DeFi prediction protocol

    How does PlotX create a healthy DeFi prediction protocol? This is through several features in the PlotX protocol as follows:

    Market creation – This handles the network’s creation of different cryptocurrency pairs for prediction. A typical market on the platform can be, “What will be the price of ETH/BTC on October 17 at 1800hrs GMT.”

    Market positioning and pricing – A position can range from neutral, to bullish, to bearish and can only be influenced by a user’s experience on digital currency trading. A formula is used to calculate a position price on-chain. The odds are changed in regards to participation.

    Position buying – Buying into a position requires a user to stake crypto such as ETH. A user can buy into more than one position depending on the amount of token’s staked, the amount required for each position, etc.

    Positions trading – Here, users can trade positions in a decentralized way and exit positions before they expire.

    Market settlement – Closing prices are calculated from data provided by distributed oracles such as Chainlink.

    Market reward claims – Rewards are distributed once the market closes. However, the distribution of rewards is halted in case of a dispute until the dispute is resolved. However, a dispute can only be raised within the cooling period, given after the market closes.

    PlotX Alpha and PlotX Token ($PLOT) use cases

    Alpha is a version of PlotX existing on Ethereum’s Kovan testnet network. Although the system largely uses ETH when making predictions, it has a native token called PLOT. The token allows for:

    ·         P2P commissions.

    ·         Referral mining – Existing users can invite friends and family and be rewarded.

    ·         Community mining – Attracting more people into the platform using mineable airdrop rewards.

    ·         Play mining – Users are rewarded for staking PLOT before participating in market predictions.

    ·         Governance mining – The voting strength depends on the amount of PLOT staked.

    ·         Liquidity mining via staking.

    PlotX ($PLOT) mainnet launch and listing

    On 13th October 2020, PlotX will be launched on the Ethereum mainnet. Upon launch, BTC/USD and ETH/USD trading pairs will be available for users to predict on using PLOT and ETH.

    On the same day at 1:00pm (UTC), its native token PLOT will be listed on Uniswap.

    Conclusion

    Being a non-custodial protocol, PlotX users access the platform using their MetaMask wallet or any of their mobile wallets. The network’s users can also sign in using their email addresses. However, they have to integrate centralized finance bridges to enjoy the benefits of a prediction market in the DeFi world.

    The project’s reliance on the Ethereum blockchain and the ETH token allows its users to optimally interact with OpFi protocols since most of them are built on the same chain. With online prediction markets gaining traction in the centralized space, PlotX provides a superior service for those in the decentralized world.

    Decentralised Finance (DeFi) series: tutorials, guides and more

    With content for both beginners and more advanced users, check out our YouTube DeFi series containing tutorials on the ESSENTIAL TOOLS you need for trading in the DeFi space e.g. MetaMask and Uniswap. As well as a deep dive into popular DeFi topics such as decentralized exchanges, borrowing-lending platforms and NFT marketplaces

    The DeFi series on this website also covers topics not explored on YouTube. For an introduction on what is DeFi, check out Decentralized Finance (DeFi) Overview: A guide to the HOTTEST trend in cryptocurrency

    Tutorials and guides for the ESSENTIAL DEFI TOOLS:

    More videos and articles are coming soon as part of our DeFi series, so be sure to SUBSCRIBE to our Youtube channel so you can be notified as soon as they come out!

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • 0x ($ZRX) guide: The future of cryptocurrency exchanges?

    0x ($ZRX) guide: The future of cryptocurrency exchanges?

    0x ($ZRX) is an open protocol for developers to build their own decentralised cryptocurrency exchanges on the Ethereum blockchain. 0x came about as an answer to the problems inherent in centralised exchanges (CEX) and decentralised exchanges (DEX). For CEXs, approximately USD $1.1 billion has already been lost through security breaches on these platforms. Thus cryptocurrency enthusiasts have become wary for fear of losing their funds. Decentralised exchanges were meant to be an answer to this, but they have also issues of increased friction and increasing transaction costs. In this guide, we will explore what 0x is already offering in today’s market, and take a look at their recently released version 3 of the protocol.

    Background

    0x is a brainchild of its CTO, Amir Bandeali, and its CEO, Will Warren. Other key individuals behind the project include their blockchain engineers, product designers, researchers, and business strategists. They also have a strong list of advisors including Fred Ehrsam, Co-founder of Coinbase and David Sacks, former COO of PayPal.

    What is 0x?

    0x is a protocol built on the Ethereum blockchain to create and power decentralized exchanges. Its aim is to be interfaced with other systems to power high-end decentralized applications (dapps).

    The protocol seeks to inspire the movement of assets across the financial sector by eliminating third parties that have been making the process complicated and costly. The presence of smart contracts has also helped push third parties further to oblivion.

    The advent of DEXs comes to safeguard users’ funds and prevent government censorship. These exchanges place the security of users’ funds onto the users themselves instead of trusting centralized platforms, which are prone to hacks.

    Due to the Bitcoin blockchain scalability issues and lack of smart contract flexibility, dapp developers have flocked to Ethereum to build decentralized solutions such as exchanges. Unfortunately, with everyone looking to build a specialized dapp, Ethereum has been flooded with applications that cannot communicate well with each other.

    Furthermore, these applications have varying degrees of security and quality. 0x came to solve this user fragmentation issue, as well as reduce the cost of using dapps.

    How does 0x work?

    Although it is built on top of Ethereum, its orders are dealt with off-chain as relayers are used to match the orders. The orders are only uploaded on the Ethereum blockchain after the process is complete. Off-chain signing reduces the amount of gas used in a particular transaction while also reducing the load on the main chain.

    A relayer on the platform can be thought of as a decentralized exchange that has both public and private order books. Orders are broadcasted through these order books to make a suitable match.

    Apart from reducing the gas fees involved, this approach also allows users to have control over their funds. An important feature of a relayer is that it only facilitates but does not conduct trades.

    To allow this, the relayer needs to be supplied with the order maker’s signature, which is then delivered to the DEX’s smart contract. Relayers are rewarded using the protocol’s native token, ZRX, though this has been changed along with several other features in version 3 of 0x.

    0x version 3: A new protocol with enhanced features

    In August 2020, the decentralized protocol released a new version 3 that enables users to develop a more interconnected DeFi ecosystem. There are 3 major upgrades in this new version: staking ZRX tokens, liquidity bridges and flexible fees.

    0x staking features

    Version 3 of 0x introduced a staking mechanism which allows trading fees to be accepted in any token. Market makers that provide liquidity are seen as crucial for 0x’s long-term growth since they bring in liquidity. Hence a new staking feature was introduced whereby market makers on 0x are given monetary rewards. This means that any ZRX holder can join a market maker’s staking pool and be entitled to a share of the liquidity rewards. Meanwhile, it is in the best interests of the market maker to entice stakers to join their pool because it increases their potential liquidity rewards payouts and their voting power on governance issues since stakers are required to delegate half their voting power to the market maker.

    Liquidity bridges

    Liquidity bridges is an exciting upgrade for decentralised finance (DeFi) developers who are building dapps that will benefit from accessing more liquidity. This is because the feature will enable them to source liquidity not only from the 0x network itself, but other DEXs such as UniSwap or Kyber from a single point of integration, known as 0x API (more on that below). In short, allowing users access to liquidity in other DEXs, thereby ensuring that orders are being filled to reach higher volumes, and thus attracting even more users onto the platform.

    Flexible fees for Relayers

    Previously, 0x only allowed Relayers to receive fees in ZRX only. This was problematic because sometimes Relayers may not want to receive fees in ZRX. It also led to a poor experience for Relayers since it created more additional steps in DEX trading, for example one of the largest 0x DEXs by volume didn’t have fees. And there is speculation that this is because of the limited ways in which fees could be paid out. This has been fixed in version 3, where Relayers can choose to have their fees paid in any Ethereum-based token or even in the token currently being traded.

    ZRX Token: What is it?

    The ZRX token is built based on Ethereum’s ERC-20 standard. Apart from being used to pay relayers for facilitating trades, it is also utilized for governance on the 0x protocol. In line with this, the amount of ZRX held determines the power a governor has when contributing to governance issues such as protocol upgrades.

    The ZRX token supply is hard-capped at one billion. During its launch in 2017, half of the tokens were released and distributed to developers (15%), 0x (15%), founding team (10%), and advisors (10%).

    ZRX is listed on Binance, Coinbase, Huobi, HitBTC, and other leading exchanges. For storage, the token is supported by Ledger (both the Nano X and Nano S), Enjin, Exodus, and any other cryptocurrency wallets primed for ERC-20 tokens.

    As mentioned above, the 0x team has recently introduced staking features for ZRX which gives more incentives for both liquidity providing market makers and ZRX holders.

    Other products powered by 0x

    0x has a whole suite of products aside from its open protocol. These are:

    ·         0x Instant– This offers a way to buy cryptocurrency on any app or website.

    ·         0x mesh – Allows access to a global P2P order book for tokens.

    ·         0x API – Can be used to accumulate liquidity from platforms built on the protocol such as UniSwap, and Mesh. It can also be used to swap tokens based on price.

    ·         Matcha – A platform to find the best prices across exchange networks.

    ·         0x Extensions – For use with relayers to incorporate new trading types.

    ·         0x OTC – This is a consumer-based exchange that allows for a P2P exchange of ETH tokens without a relayer. Unlike the other P2P exchanges, 0x OTC enables the seller to send a link to the buyer on any platform, including social media, and its results are recorded on the Ethereum blockchain.

    Even with numerous advantages, the protocol uses multi-signature smart contracts that could be exploited since they are still based on code. Also, since the DEXes are still a work in progress, they may not have the liquidity needed to fill orders for lesser-known tokens.

    Conclusion

    As blockchain technology matures, so should the applications run on top of it. However, as more dapps flood the scene, we need a standard quality and security setting to ensure that these systems operate as they are intended. Thankfully, with 0x, the standard is already set.

    Furthermore, dapp developers also need to embrace the system for users to benefit from low transaction fees.

    The 0x protocol can be used in prediction markets such as sports betting, which require untampered results of outcomes of physical events.

    The platform’s vast use cases are also capable of bringing real change in the decentralized world while leveraging off-chain mechanisms to drastically enhance scalability.

    Decentralised Finance (DeFi) series: tutorials, guides and more

    With content for both beginners and more advanced users, check out our YouTube DeFi series containing tutorials on the ESSENTIAL TOOLS you need for trading in the DeFi space e.g. MetaMask and Uniswap. As well as a deep dive into popular DeFi topics such as decentralized exchanges, borrowing-lending platforms and NFT marketplaces

    The DeFi series on this website also covers topics not explored on YouTube. For an introduction on what is DeFi, check out Decentralized Finance (DeFi) Overview: A guide to the HOTTEST trend in cryptocurrency

    Tutorials and guides for the ESSENTIAL DEFI TOOLS:

    More videos and articles are coming soon as part of our DeFi series, so be sure to SUBSCRIBE to our Youtube channel so you can be notified as soon as they come out!

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • Hedget ($HGET): Does it live up to the hype?

    Hedget ($HGET): Does it live up to the hype?

    Hedget is conquering one area that decentralised finance (DeFi) projects have yet to fully explore- options trading. DeFi is in all honesty still in its infancy, and there is still plenty of infrastructures which could be built to solve problems relating to contract security, liquidation risks, and speed and cost of transactions. Hedget in collaboration with Chromia aims to become the default options trading platform for DeFi tokens.

    Background

    Hedget rides on the background of DeFi applications. With DeFi assets growing parabolically and reaching $8.77 billion as of August 2020, it is, without doubt, an area that is rapidly on its way to dominating the crypto market. 

    Unfortunately, the volatility of cryptocurrency prices is likely to curtail further growth. On the flip side, the risks involved can be minimized by embracing options trading.

    The project is headed by Malcolm Lerider, a former Research & Development Manager for NEO blockchain. Others include Serge Lubkin, Ex-marketing lead at Chromia, and Riccardo Sibani, who, among other things, developed concepts and proof of works in Ethereum and has a double degree in Cloud Computing. The protocol’s advisors are Roger Lim, NGC Ventures’ founding partner, and Alex Mizrahi, the founder of several academic papers about Bitcoin. The protocol’s partners include NGC Ventures, FBG Capital, and Chromia.

    What is Hedget?

    Hedget is a blockchain-based platform focusing on options trading, with a specific focus on safeguarding users from the fluctuating prices of digital currencies. Options are a unique trading venue since they allow traders to interface with the underlying asset without owning them.

    Trading involves buying and selling assets at a predetermined future date and price. Options can either be a call or put. Call options enable the user to buy while put options give users the right to sell. Options traders can bet on the price either going up or down. 

    The bets can be spread over a period of time, with each having different prices, commonly known as strikes.

    Three things are needed when creating an option: (1) the asset being tracked; (2) option type; and (3) maturity/expiry date. The options maturity date on the platform is every Friday at 8:00 UTC+5. A major point to note is that the system applies European options rules. With these rules, an option’s settlement can only be done at expiry and not in-between strikes regardless of whether the price is favorable.

    The protocol works with Ethereum smart contracts, Chromia-based decentralized apps (dapps), and client-side wallets.

    Hedget options protocol

    Other aspects of the Hedget protocol include collateral and settlement mode.

    Collateral

    Here, users have to provide the full collateral for both call and put options. For example, those creating a call option for 20 ETH will be required to provide 20 ETH as collateral while those placing a put option will need to provide an equivalent amount of USDC (USD Coin), or any other supported stable coin.

    Settlement mode

    The network supports options settlement in either cash or physical. For physical settlement, the underlying asset, e.g., ETH, is converted to its fiat equivalent at the maturity date. In an ETH call option, the writer swaps ETH for USDC from the holder.

    Cash settlements allow the writer to calculate the profit and transfer it to the holder. Settling in cash is advantageous since it can save on transaction fees.

    Use cases of Hedget

    The Hedget network is an excellent addition to the world of DeFi, from guarding options traders against the fluctuating prices of cryptocurrencies to increasing capital efficiency for both customers and businesses to hedging lending risks.

    Furthermore, the platform can be used:

    As a non-centralized price hedge

    Here, users can use the network to hedge against their virtual currency holdings in a decentralized way. They can do this by buying a put option that protects them against reducing the underlying asset prices.

    As protection on lending platforms

    Hedget is primed for use by other lending networks to provide security against position liquidation by users. DeFi platforms champion for over-collateralized lending to cover losses in case they occur.

    For example, on DeFi platforms such as MakerDAO, users need to put up collateral of 150% in order to borrow. During liquidation, more collateral is auctioned to stabilize DAI prices. Unfortunately, the loss is only reflected on users and not on the platform. 

    When Hedget is used in combination with MakerDAO, for example, users can select at a time that loans are generated to pay a premium for automatic liquidation.

    To power leveraged trading

    The protocol is ideal for traders who don’t flinch at the thought of leveraged trading. Using the protocol, leverage traders benefit from low prices associated with acquiring options compared to directly associating with the tracked asset.

    Hedget token ($HGET)

    HGET is an ERC-20 token that Hedget that is used for governance and utility. As a governance token, it settles transaction fees and fund’s asset reserves and general functions. Also, it’s used to avert order book manipulation through order spamming. This, however, requires staking HGET tokens.

    HGET tokens have a total supply of 10 million tokens. The usage of these tokens is controlled by the Hedget DAO (Decentralized Autonomous Organization).

    Hedget token auction

    On 1st September 2020 at 13:00 UTC, Hedget will have their public auction for 423,000 HGET tokens (i.e. 4.23% of the total supply). There will be 2 separate auctions with 211,500 HGET in each auction, one auction will have all bids denominated in USDT (ERC20) and the other in Chromia’s CHR (ERC20) token.

    Both auctions will have a starting price of USD$1 and run for 11 days in a Convergence Auction format. The Convergent Auction format requires participants to gradually disclose information about their pricing decisions.

    The auction timeline will be as follows:

    Registry phase (6 days): Apply for the auction on their website, go through the KYC process and register your wallet for the token sale. Then, signal your initial bid price and desired amount of HGET you want to purchase. Participants can change their bid price and quantity for an unlimited number of times though this will incur transaction fees.

    Main phase (5 days): Participants can only raise their bid prices or lower the desired token quantity. Note that updating your bid will incur transaction fees and you may be required to deposit additional collateral to support your updated quantity. For an increase in bid prices, they can only increase a specified percentage each day during this phase: Day 1- 90%, Day 2- 70%, Day 3- 50%, Day 4- 30%, Day 5- 10%. During this phase, Hedget will calculate and update participants on the temporary threshold price for the HGET tokens. This is the lowest price where bids which are equal to or above this price are sufficient to buy all the tokens in the sale. So participants can refer to this price and decide if they want to update their bids.

    Fulfilment phase (immediately after end of auction): Hedget will finalise the threshold price. For successful bidders, HGET tokens will be sent to them accordingly. If a participants’ bid was below the threshold price or only part of the bid was fulfilled, the collateral/ remaining collateral (as the case may be) will be returned.

    For more details on the auction see the guide published by Hedget.

    Hedget and Chromia partnership

    Chromia is a blockchain network meant to power a new breed of dapps that would scale beyond what’s currently available. The network brings together blockchain and traditional databases to create a “relational blockchain.”

    Hedget exists as a layer on top of Chromia. The “relational blockchain” acts as a second layer on top of the popular blockchain system, Ethereum. A combination of the two platforms leads to Hedget performing settlements on Ethereum, while the trading is done on Chromia.

    For example, suppose a user sells call options on Ethereum using Hedget. In that case, Chromia will require the user to deposit and lock funds. After this, they can create several options with varying expiry dates and strikes. However, this will appear as a single transaction on the ETH blockchain.

    Read more about Chromia in their White Paper.

    Hedget and Alameda Research

    Hedget has formed a strategic partnership with quantitative trading firm Alameda Research, who is also the team behind FTX exchange and Serum decentralised exchange. Alameda Research made a strategic investment of USD $500,000 for 100,000 $HGET out of Hedget’s “Reserve” tokens.

    This strategic partnership obviously caused a lot of hype, especially with Alameda’s strong background and the success of FTX Exchange. This in turn boosted people’s positive perceptions on Hedget and is causing a lot of people to fear that they will miss out on getting themselves some HGET tokens.

    Hedget IEO on FTX Exchange

    As part of the strategic partnership, Hedget will have an Initial Exchange Offering (IEO) listing on FTX Exchange on 4th September 2020 at 1:00pm (UTC) for 120,000 HGET tokens.

    Participants must be at least KYC level 2 and hold tickets for the IEO. Each person has 1 ticket but those with higher average trading volume or FTT holdings may be entitled to more tickets. (manafort.com) Each ticket entitles you to bid for 100 HGET tokens with a minimum bid of $100 USDT ($1 per HGET) and a maximum bid of $500 USDT + 56 FTT ($5 per HGET +56 FTT).

    There will be a total of 1,200 accepted tickets who will get the allocation of HGET tokens. If there are more than 1,200 tickets that made the maximum bid, FTX will allocate randomly between these bidders.

    For more details check the participation guide.

    Conclusion

    With the volatility and the rigidity of current DeFi platforms, Hedget brings much-needed relief. And when used with blockchain-based lending systems, it can prevent automatic liquidation. Hedget’s application in leveraged trading, as well as its ability to hedge against price swings removes the need for trusted third parties. The fact that it is one of the projects Alameda Research had invested into also gives the public some confidence, considering Alameda’s history of success.

    Decentralised Finance (DeFi) series: tutorials, guides and more

    With content for both beginners and more advanced users, check out our YouTube DeFi series containing tutorials on the ESSENTIAL TOOLS you need for trading in the DeFi space e.g. MetaMask and Uniswap. As well as a deep dive into popular DeFi topics such as decentralized exchanges, borrowing-lending platforms and NFT marketplaces

    The DeFi series on this website also covers topics not explored on YouTube. For an introduction on what is DeFi, check out Decentralized Finance (DeFi) Overview: A guide to the HOTTEST trend in cryptocurrency

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    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.