Boxmining v2

Category: Crypto Trends

Make sense of the news and how it affects the blockchain space as a whole. Crypto trends is a collection of relevant news and insights to help you make an informed decision.

  • What are “Money Legos” in DeFi? Composability Explained

    What are “Money Legos” in DeFi? Composability Explained

    What is Composability in DeFi?

    Decentralized finance (DeFi) has revolutionized financial services, creating new possibilities unlike anything that exists in traditional banking. DeFi protocols allow you to transfer value, exchange tokens, take out loans, provide liquidity, earn yields and so much more. As the market expands, it is likely that even more innovations will surface.

    This is because of how smart contracts work. The open-source and permissionless nature of blockchains allows anyone to code their own contracts or even integrate a component of another protocol in their own application. As a result, the applications built on a smart-contract network can run interchangeably.

    This is known as “composability” — the interoperability of DeFi protocols resulting in efficient and creative financial services and products for users. It is the core basis of DeFi and is what helped the ecosystem grow so quickly.

    What are “Money Legos” in DeFi?

    To understand how composability works in DeFi, we can view components of DeFi protocols as Lego blocks, giving rise to the term “money legos.” Each building block has its own functionality such as borrowing, lending or staking assets, just to name a few. Developers can stack multiple protocols together like Aave, Compound, Yearn, Curve or Synthetix to create a new DeFi protocol, just as you would a Lego set.

    For developers, money legos save a lot of time and complications around building a new decentralized application (DApp). They do not need to start from scratch as they can simply integrate existing money legos into their own. What money blocks provide are solutions to more complex processes which require more steps than usual.

    Moreover, developers can build smart contracts that can operate the legos in any order, be it one before or after the other, or in parallel. For example, by joining the money legos together and then specifying the order of events through a smart contract, users could

    1. Put up collateral for a loan on Aave
    2. Stake half of the loaned amount on Curve
    3. Trade half of the loaned amount on Uniswap
    4. Pull out both amounts simultaneously and take profit
    5. Pay off the loan on Aave

    This is just one type of scenario. As you can see, there are infinite possibilities with money legos. It is up to your creativity how much use you can make of the combination of their functions to optimize your crypto. Furucombo is a great platform to experiment different possibilities of DeFi money legos.

    Why “Money Legos” Matter?

    “DeFi” is a buzzword that gets thrown around a lot. People often associate DeFi with low fees and yield farming, but do not exactly know how the underlying infrastructure works. Therefore, it is important to learn about money legos as they are the building blocks for programmable money, hence its name. While developers can compare and choose specific DeFi protocols to cut down on fees when building new applications, investors can better optimize and manage their crypto by having a better understanding of money legos.

    As savvy investors, we know that key performance indicators (KPI) of a healthy market and ecosystem are trading volume and activities. As such, money legos are powerful tools that can expand the potential possibilities of the ecosystem. They add to the utility of each existing protocol, while improving the blockchain’s network effect.

    In other words, each time a new protocol is created in the DeFi space, a new money lego is born that can also be used to offer more new services within the sector. These new protocols will offer faster and more efficient services, giving investors more ways to generate profit. For each new money lego, hundreds or thousands of new combinations become possible.

    However, as of now, composability mostly favors protocols of the same blockchain. For example, DeFi protocols on Ethereum can only interact with other protocols on Ethereum. Same goes for Solana or Cardano. Perhaps in the future, true multi-chain interoperability will allow protocols on one blockchain interact with a protocol on another blockchain. This means that crypto will become more accessible, further increasing their adoption.

    Risks of “Money Legos” Composability

    Since DeFi protocols can seamlessly integrate with each other, this means that the entire ecosystem hinges on each of its money legos. If one of the core money legos is compromised, it could lead to a chain reaction, potentially affecting other integrated applications.

    This is possible because of the interoperability between the DeFi protocols. For example, you can carry out complex strategies like borrowing Synthetix (SNX) from Aave, depositing SNX into Synthetix to mint sUSD, then swap sUSD for DAI on Curve. Now if any one of these protocols is attacked, then all of their liquidity pools will be severely affected.

    Moreover, certain protocols also have wrapped crypto tokens (e.g. WBTC, renBTC, wETH) that are pegged to the value of another crypto. This means that you not only have to trust the protocol you deposit your funds to but all the others it may be reliant upon.

    Key Takeaway

    It is important to understand money legos as they are the building blocks of the DeFi ecosystem. Money legos help developers create new protocols, offering faster and more efficient financial services for DeFi end-users. It also helps investors get the best trades and the best yields when it comes to earning from DeFi protocols. That is the whole concept behind the idea of composability. Seamless interoperability among components helps to build the best and most creative solutions.

  • Common NFT Scams and How to Avoid Them

    Common NFT Scams and How to Avoid Them

    NFTs (non-fungible tokens) have become very popular amongst cryptocurrency traders and are drawing a lot of attention from several industries. The world of art has greatly benefitted from the sector, more than other industries (so far) because it opens creators and potential buyers to an ever-expanding marketplace. Generally, this stems from NFTs’ non-fungible nature, meaning that each one is unique. 

    What makes NFTs special?

    Anyone can trade one Bitcoin (BTC) or Ether (ETH) for another and end up with the same asset they traded in terms of value and usability. However, non-fungibility means that no two assets are alike. If you trade one NFT for another, the newly-received asset will be fundamentally different. In the art sector, this allows people to buy directly from the creator, with the assurance that there is no duplicate anywhere. NFTs have also created a whole asset class and industry of NFT speculators which buy, sell and trade them for profit. There are estimates that in 2021 alone, there were over US$23 billion worth of trades in NFTs. In fact, the most expensive NFT sold in 2021 was Beeple’s The First 5,000 Days, which sold for US$69.3 million.

    Some Common NFT Scams

    However, as with most up-and-coming industries, the NFT space is rife with its fair share of scams. Malicious players find ways to take advantage of buyers pumping money into the industry. Scammers are also becoming more sophisticated with their methods and will go to any lengths to swindle NFT holders, especially since some NFTs are worth millions. Here are some common NFT scams.

    Fake offers

    Scammers frequently entice NFT holders with false offers. Known methods include phishing emails, fake links, and service offers that require people to sign malicious contracts. Sometimes, people willingly give up their signatures for seemingly legitimate reasons, such as a paid offer to help animate your NFT. Tokens and NFTs may get stolen after you sign the transaction. In December 2021, scammers hacked the NFT marketplace Fractal, pushing a link to prospective buyers through the platform’s official Discord. Within 10 minutes, around 370 users lost 862 SOL, worth more than US$150,000 at the time.

    False NFT projects

    The NFT space has seen several rug pull scams where a known or unknown creator publishes an NFT for sale. For many reasons, including the possibility of high returns, people may skip adequate due diligence and quickly sink money into a new NFT with growing popularity. In many cases, these projects eventually lose their value and can’t be sold for a profit or the initial capital. The unknown creators then take all the money and are almost always unreachable. A popular example is the Frosties rug pull and scam. In January, buyers who purchased pieces of the cartoon ice cream digital collection lost a total of . (https://inboundrem.com) 3 million after the creators and funds disappeared from OpenSea.

    Counterfeit NFTs

    Scammers can create fake NFTs that resemble originals, especially when the original is not very popular. The forger would then list the fake NFT on a marketplace where an unsuspecting buyer may purchase what they think is the authentic version. Since no one wants a plagiarized or counterfeit NFT, the buyer is left with a worthless asset.

    Pump and dump scams

    Here, a group of scammers artificially pump a worthless NFT collection which eventually drives price and demand from speculators. Within a short period, the collection garners enough attention that people consider it valuable and start buying. However, the group will pull the plug and disappear as soon as they make enough money from the sale. The price of the NFT eventually tanks, leaving holders unable to resell their worthless NFTs. A relevant example of a pump-and-dump scam is the Squid Game token. Last year, unknown creators launched a token that exploited the popularity of Netflix’s Squid Game series. The SQUID token pumped past $2,800 and eventually crashed to $0. The scammers made away with more than $3 million in total and have still not been found.

    Fake Holder Verification Bots

    Scammers may create programs that impersonate authentic verification bots used with discord servers. Owners then allow approvals for these fake bots that transfer sensitive information to scammers who steal the NFTs.

    How to Avoid NFT Scams

    All players in the NFT marketplace should know how to avoid scams. Due diligence often does the trick, as fake projects or assets usually have features that stick out. Generally, avoiding scams requires a lot of caution from NFT holders. Owners looking to sell their NFTs must set approvals. The process requires the seller to set an approval so that the marketplace can transact on the owner’s behalf if, for example, someone else buys the asset. While popular marketplaces like OpenSea are relatively safe, there is still a significant risk with setting approvals.

    Approvals give the receiving contract or address the authority needed to transfer tokens. If a malicious bot or contract has the approval, your funds are not safe. To avoid these scams, there are a few things to note.

    Setting approvals and verification

    The blockchain is a public ledger and does not need permission for people to read stored information. However, executing transactions on the blockchain requires gas. When transacting with a third-party bot, marketplace, or address, any verification requiring gas fees is likely illicit. In the same way, setting approvals should cost some gas. There might be a serious problem if a transaction to set an approval is gasless.

    Due diligence

    It is important to do intensive research into an NFT collection or project before purchasing it. Trustworthy projects should have verifiable teams compromised of members without fraudulent histories. Depending on the project, a whitepaper might also be necessary. For phishing scams, buyers must double-check email addresses and links to ensure authenticity. Buyers must also do their due diligence to avoid plagiarized or counterfeit NFTs by confirming verification ticks on marketplaces or sticking to links posted on the project’s official Discord.

    Discord Notes

    Buyers using Collabland for management can attach specific notes to authentic bots in a server. This note will be available anywhere you see the bot, making it easy to avoid corrupt bots. 

    Personal Safety

    All wallet credentials should only be in safe locations that are not easily accessible by third parties. It is inadvisable to keep this information on a mobile phone or with someone else. All owners should also consider unique passwords in addition to two-factor authentication (2FA).

    Conclusion: Staying Safe

    Avoiding NFT scams requires continuous effort. Buyers who have done their due diligence should consider taking further steps, including actions not listed above. Since the NFT space is still somewhat nascent, buyers should expect that scammers may come up with newer ways to steal NFTs or swindle unsuspecting users. Therefore, traders must take additional protective steps when buying, selling, or setting approvals for NFTs.

  • APY vs APR in DeFi: What They Actually Mean for Your Rewards

    APY vs APR in DeFi: What They Actually Mean for Your Rewards

    As savvy investors, it is easy to get carried away by flashy numbers like 1000% staking rewards. But what most beginners overlook is the three little letters standing right next to it: APY or APR.


    Although APY and APR may sound identical, there is a significant difference to the calculations for returns over a period of time. There are also underlying risk factors of certain decentralized finance (DeFi) products with very high return on investment (ROI).


    Therefore, it is crucial that you have a better understanding of the formulas used to generate these two measures as well as what they signify for the potential returns on your crypto investments.

    What is APR?

    APR, which stands for annual percentage rate, is interest you gain from your investment in a year. It is also known as “simple interest” and its formula is straightforward.

    For example, if you stake 10,000 USDT at an APR of 10%, you will earn $1,000 in interest after a year. Your interest is simply calculated by multiplying the principal amount ($10,000) and the APR (10%). In a year, your capital will amount to $11,000, and in two years, it will be $12,000, and so on.

    See also: The Pros and Cons of Stablecoins: Why You Need To Know How They Work

    As such, APR is always quoted as a fixed yearly rate, thus a simpler and more static metric. However, with APY, interest calculations become slightly more complicated with compounding taken into account.

    What is APY?

    APY, short for annual percentage yield, is the annual rate of compound return earned on an investment. The keyword here is “compound.”

    What is Compound Interest?

    Compound interest is not only earning interest on your initial investment, but you are also earning interest on the accrued interests. This effect is called “compounding.”

    A simple scenario would be like this. Let’s say this time you stake 10,000 USDT at an APY of 10% compounded monthly. This means that interest is added to your principal sum each month, and the sum on which you earn interest increases over time. In other words, you will have more money earning interest each month.

    In one year, your capital will amount to $11,047.13, which is $47.13 more in interest by adding the effect of compound interest.

    The Power of Compound Interest

    The aforementioned scenario is an instance of monthly compounding. In fact, there are different compounding periods depending on the institution. Interests can be compounded quarterly, monthly, week, or daily.

    The more frequent the compounding periods, the higher your effective yield is going to be. For example, if your staked 10,000 USDT is compounded daily at 10% APY, then you will earn $11,051.56 in one year, which is $4.43 more than monthly compounding.

    It may not seem like a big difference but the power of compounding is more significant over more extended periods. After five years, you will have earned around $16,500 if compounded, which is $1,500 more than simple interest.

    APY vs APR vs No Invest (Source: DataDrivenInvestor)

    As illustrated in the graph above, the APR line is linear, whereas the APY line is exponential, which is always higher than the linear as time progresses. The principal remains the same if no investment is made.

    You can use an APY calculator to calculate how much you can earn with different compounding periods and different time frames.

    How does APY Work in DeFi?

    The previous section is a simplified example of how compound interest works in general. However, APY investments work differently in DeFi. APYs in the crypto space constantly change due to several factors. As such, as a rule of thumb, the APY shown on DeFi products should be considered as estimates.

    Supply and Demand

    As with any market economy, the law of supply and demand influences the assets’ price. Since interest is generated based on the demand to borrow and trade crypto, market dynamics play a role in determining the rates.

    Since the crypto market is volatile in nature, the APY changes according to the level of demand for trading liquidity of the token. If there is plenty of supply, APY interest rates tend to be lower. Conversely, if the demand is high, the APY usually increases as well.

    Inflation

    Inflation refers to the loss in value of a currency over time. In crypto, inflation is brought about by adding new tokens at a predetermined rate to the blockchain. The rate of inflation affects the staking returns. If the inflation rate exceeds the interest earned on a staked token, then the investor is losing money.

    Different Compounding Periods

    Different projects have specified blockchain protocols which play a part in the calculation of the APY. As a result, compounding periods may vary for each project. For example, some projects compound interest weekly, daily, or even according to the mined block per block cycle. It is important to note that the more frequent the compounding periods, the higher the APY will be.

    Most crypto projects offer shorter compounding periods, with weekly compounding being one of the most popular ones. This is to help potential investors mitigate the effects of price swings in the long run, since crypto prices rise and fall over time. This way investors can do their compounding manually, and calculate their returns within specific time frames, so that they can strategize their entries and exits when engaging in DeFi protocols.

    Comparing APY vs APR Investments

    Although APY seems to be the obvious choice in maximizing ROI, there are also underlying risk factors when it comes to APY investments in general.

    Prevalence of Non-Sustainable APY Projects

    Projects with very high APYs, as high as 1,000% or more, are high risk/high reward investments. This is especially common for newly launched DeFi projects, because the price of a token is highly volatile during its early phase. To keep investors in the ecosystem, the project would provide trading pairs for the token also known as liquidity pools.

    Liquidity pools are one of the products that allow for staking and generating returns for providing liquidity. As such, projects will offer high APYs to offset impermanent loss, which occurs when the ratio of tokens in the liquidity pool is unbalanced. This also incentivizes users to continue providing liquidity instead of selling.

    However, there is a possibility of a dump for the project. Since most DeFi protocol tokens are inflationary in nature, the revenue capacity for the protocol might be insufficient for everyone to share. In other words, if everyone is earning 1,000% APY and the token has no real utility, it then becomes a race for the liquidity providers to see who cashes out first. As a result, this drives the token price and APY down, leaving real users of the protocol with no exit liquidity.

    Distinction of DeFi Product Yields

    Products with a higher APY will not necessarily generate more returns than those with a lower APR. It depends on what the APY and APR mean in relation to the DeFi product.

    Some products advertise the term “APY” referring to the cryptocurrency earned, and not the actual yield in fiat currency. Some beginners often mistake the APY crypto rewards for fiat currency, which blindly clouds their judgement.

    This is a critical distinction to point out because the value of your investment in fiat terms may increase or decrease depending on the volatility of crypto asset prices. Even if you continue to earn high APY in crypto, the value of your investment in fiat terms may still be lower than the initial amount you placed in fiat, should the price of the crypto asset decline.

    Key Takeaway

    APR (annual percentage rate) is interest you gain from your investment in a year. On the other hand, APY (annual percentage yield) is the annual rate of compound return earned on an investment, which means you earn interest on previous interests accrued.

    Although APY is the obvious choice in maximizing ROI, there are also underlying risk factors behind it. Therefore, it is crucial to comprehend how these two measures are determined as well as what it means for the potential returns on your digital investments.

  • Layer-1 vs Layer-2 Blockchain Scaling Solutions: What are the Differences?

    Layer-1 vs Layer-2 Blockchain Scaling Solutions: What are the Differences?

    What are Layer-1 and Layer-2 Solutions?

    Layer-1 refers to the base level of the blockchain’s underlying infrastructure. Bitcoin, Ethereum, Binance Smart Chain, and Solana are examples of layer-1 blockchains. These networks can process and finalize transactions on its own blockchain.

    On the other hand, layer-2 refers to a network built on top of a layer-1 blockchain. Its main purpose is to help offload computational work from layer-1s by processing transactions off-chain, increasing transaction speed and throughput. Polygon, for example, is a layer-2 solution that runs on top of Ethereum to facilitate transactions away from the mainnet.

    Layer-1 Overview

    Underlying Problems of Layer-1

    Scalability is the biggest issue that has been plaguing most layer-1 blockchains. As more users carry out increased simultaneous transactions, the blockchain becomes slow and expensive to use. Ethereum, for example, is the most used decentralized network, but its gas fees and process time are high.

    Blockchain Trilemma

    This is known as the “blockchain trilemma” — an impossibility for blockchains to simultaneously achieve decentralization, security, and scalability. As such, a decentralized and secure layer-1 blockchain cannot provide scalability. And a scalable, secure network lacks decentralization.

    This happens because of the fundamental nature of a blockchain. All transactions require the independent verification of the nodes who are running the blockchain’s software. The verified data will then be logged and stored on the blockchain.

    Transaction Confirmation Time

    However, depending on the network, this entire process takes time. For Bitcoin, all transactions require six confirmations in the blockchain from miners before being processed. The completion time varies between ten minutes and an hour. A node can only handle so much at a time. In times of network congestion, users will experience longer confirmation times and higher gas fees due to high demand.

    How do Layer-1 Solutions Work?

    There are several ways to increase throughput and overall network capacity of layer-1 blockchains.

    Transition to Proof-of-Stake

    For blockchains using proof-of-work as their consensus mechanism, they may switch to proof-of-stake to increase transactions per second while reducing gas fees. Ethereum is a great example of this as they are undergoing a transition to proof-of-stake called the “Merge.”

    The blockchain’s development team can also introduce a hard fork or soft fork of the network for their community to vote and approve:

    Soft Fork

    A soft fork is when new features are implemented to the protocol at a programming level. It is a backward-compatible upgrade, which means that the non-upgraded nodes will still see the chain as valid and can still communicate with other upgraded nodes. In other words, the addition of a new rule will not clash with the older rules.

    An example of a soft fork is Bitcoin’s SegWit update in which signatures are separated from transaction data, freeing up more space for transactions to be stored in a single block, increasing the throughput of the network.

    Hard Fork

    On the other hand, a hard fork is a major change to the blockchain’s protocol that results in the splitting of the blockchain, creating a second blockchain that inherits all of its history with the original, but is on its own towards a new direction. The new rules conflict with the rules of the old nodes, which means upgraded nodes cannot communicate with non-upgraded nodes.

    In July 2016, the Ethereum network hard forked into two blockchains: Ethereum and Ethereum Classic. Ethereum Classic is the old Ethereum with a completely seperate cryptocurrency (ETC). They have different technological and philosophical goals.

    Layer-2 Overview

    How do Layer-2 Solutions Work?

    Layer-2 solutions are built on top of a layer-1 blockchain to increase its throughput and overall network capacity. They work in parallel or independent of the main chain. Rollups and sidechains are two of the most common layer-2 solutions that help offload computational load from layer-1s:

    Rollups

    Rollups scale layer-1 blockchains by processing transactions on layer-2 platforms before submitting the results back to the layer-1. The term “rollup” refers to the way that the chain bundles many transactions to be submitted to the main chain.

    There are two types of rollups: Optimistic Rollups and Zero-Knowledge Rollups (ZK Rollups). The difference is in how they validate transactions.

    In short, Optimistic Rollups assumes that the transactions are valid, hence an “optimistic” outlook, whereas ZK Rollups attempt to prove that the transactions are valid.

    See also: Understanding Layer 2 & Scaling Solutions: Arbitrum, Boba, Optimism, Polygon, Ethereum 2.0

    Arbitrum, Optimism, and Boba Network are examples of layer-2 projects employing optimistic rollups. On the other hand, Starknet and zkSync are among the Ethereum layer-2s that leverage ZK Rollups.

    Sidechains

    Sidechains are secondary blockchains that run parallel to the layer-1 blockchain. Since they have their own virtual machine and validators, they can operate independently. In short, the sidechains validate the transactions and then send them back to the main chain via bridges.

    Polygon is the most popular sidechain that aims to scale Ethereum by building and connecting Ethereum-compatible blockchain networks. Polygon operates on its own consensus mechanism and also has its own native token known as $MATIC.

    Are Layer-2 Solutions Viable Long-term?

    Although layer-2 provides a quick solution to improve scalability, questions have been raised as to whether layer-2 will be irrelevant once scalability issues are solved on layer-1’s end.

    Ethereum 2.0 will ultimately be able to speed up transactions while drastically reducing gas fees. This not only affects layer-2 solutions but also impacts other competing layer-1 blockchains like Solana or Avalanche.

    However, as of now, because of the upcoming Merge in September, we still see bullish sentiment surrounding competing layer-1s of Ethereum and several other layer-2 projects. Perhaps the completion of Ethereum 2.0 will indirectly foster other layer-1 and layer-2 ecosystems, instead of the other way around.

    Key Takeaway

    If you are new to crypto, it may be confusing to distinguish between layer-1 blockchains and layer-2 solutions. It is helpful to understand the differences between the two as well as the different approaches to scaling that they offer.

    Layer-1 blockchains are networks that can validate and finalize transactions by themselves, and their scaling solutions involve improvements to the existing protocol. On the other hand, layer-2 solutions are built on top of a layer-1 blockchain to help scale its throughput and overall network capacity.

  • What are Guilds in Crypto Gaming? The Future of GameFi Ecosystem?

    What are Guilds in Crypto Gaming? The Future of GameFi Ecosystem?

    Current Problems of GameFi

    GameFi is a financial system in which users can earn money by participating in video games. These play-to-earn (P2E) games are powered by blockchain technology, allowing players to earn while they play.

    See also: The Future of GameFi – Why are Firms Still Investing?

    It sounds too good to be true, right? Earning money from playing video games? This is actually achievable, and can be life-changing for all gamers worldwide. However, the GameFi market has been bottlenecked by two main issues:

    1. The cost of entry is too high for most players. Popular games like Axie Infinity, their NFT in-game assets cost at least thousands of dollars. Even if new players could afford it, it would take time for them to earn enough to break even.
    2. GameFi is still a niche in the crypto market, let alone the gaming market. There is more emphasis on the “earning” aspect than the “playing” aspect. According to Forbes, gamers only care about having fun, and most play-to-earn games lack the “fun” element. As a result, traditional gamers are not as interested in GameFi as we thought they would be.

    How can we find a solution to this issue? This is where crypto gaming guilds come in.

    What is a Crypto Gaming Guild?

    Gaming guilds have been around for a very long time. Traditionally, they are communities of gamers who play video games together and have their own culture. Recently, I came across abs카지노 보증 while exploring new gaming platforms, which ensures a safe and reliable environment for players. Esports teams are famous examples of gaming guilds, only they get to generate a stable source of income from playing video games.

    But for the rest of the casual gaming communities, there is not much to be made. However, with blockchain technology, every gaming guild will also have the privilege to make money from doing what they enjoy.

    A crypto gaming guild is an organization that is made up of gamers, investors, and managers. Their goal in the crypto market is twofold:

    1. They invest in promising web3 gaming projects, providing them funds and confidence to build a healthy play-to-earn ecosystem.
    2. They provide resources to players who may not be able to afford them otherwise, such as NFT characters or in-game tokens. When the player successfully earns money, that income is shared with the guild.

    The purpose of these gaming guilds is to encourage and facilitate the expansion of the GameFi market across the world. They also act as intermediaries by reducing the entry barrier for most players as well as educating non-crypto users about cryptocurrency.

    This gives everyone a chance to take part in the economy of the metaverse, creating a win-win situation for both the gamers and the guilds.

    How do Crypto Gaming Guilds work?

    For crypto gaming guilds, it is also more than progressing the GameFi market. They aim to advance the cryptocurrency space as a whole, bringing mass adoption one step closer. They have five main roles in the crypto space:

    1. Community Connection with GameFi

    The core of every gaming guild is its community. Gaming guilds have great potential for social impact, and community activity is vital for the growth of any ecosystem in general.

    They operate under a DAO (decentralized autonomous organization) structure in which funding comes from within the community of DAO token holders, in this case the DAO token issued by the guild. Guild members would then collectively invest in NFT assets and in-game tokens needed to participate.

    They would then pool their resources together for other guild members to use, play, and earn for shared profits. This is known as the “scholarship program”, which will we talk about in the next section.

    But the primary role and responsibility of the guild is to guide the community in the web3 world. Different blockchain games will have certain features and products that users might not be familiar with. Therefore, the community is where they congregate to talk and ask questions, which significantly aids the game project’s long-term growth.

    2. Scholarship Programs for Players

    The DAO model of guilds first emerged as a solution to the play-to-earn entry barrier. It is known as the “scholarship program.”

    Within the guild, owners of NFT assets, also known as managers, can lend out their NFTs to other guild members known as “scholars.” Scholars can then use these digital assets to play and earn in the crypto game.

    Afterwards, the profit is shared amongst the guild. The distribution of revenue varies depending on the guild. (vulcanpost.com) Generally, 10% is paid to the guild as rent, 20% to the managers, and 70% to the scholars. Other guilds split the profits in half.

    This system has a great social impact throughout the world, granting access to virtually anyone for new gameplay experience and earning opportunities.

    Axie Infinity, for example, was the first gaming project that took off in 2021, giving rise to boom of the GameFi sector. Guilds recognize that most players live in developing countries where the average monthly salary is around $200.

    Yield Guild Games (YGG), a crypto gaming guild based in the Philippines, facilitated the scholarship program that would help hundreds of thousands of players in the country to earn additional revenue for their livelihood (lifechanging literally).

    3. Quality Control for GameFi Projects

    The GameFi sector became increasingly popular following the Axie Infinity boom in 2021. As a result, many projects aspire to bring forth the next innovative gaming product to the market.

    But this also means that there are poor-quality, fraudulent projects looking to take advantage of the play-to-earn hype. It is the guild’s responsibility to prevent their members from being exposed to scams or rug pulls.

    All top gaming guilds carefully research and analyze the economic system of the projects they invested in as well as playtest and evaluate the game before awarding scholarships to their members.

    4. Bridge Between Traditional Gamers and Crypto

    Blockchain-based games are different from traditional video games. There are quite a few steps involved that can seem daunting to non-crypto users. Accessibility is an important factor to drive the GameFi sector forward, so it is important that there are sufficient educational resources for newcomers.

    As such, guilds play an indirect role in supporting non-crypto gamers to access the market, for example:

    • How to create a crypto wallet such as Metamask to access the game and marketplace.
    • How to deposit and withdraw funds on exchanges and DApps for trading.
    • How to secure accounts and make transactions.
    • Learn more about the game project such as gameplay mechanics and reward systems in the game.

    The more non-crypto gamers know about the market, the more they are likely to dip their toes into GameFi. As a result, more funds flow in, contributing to the long-term growth of the market.

    Some gaming guilds such as UniX Gaming have even taken the initiative to expand their scholarship program to include its learn-and-earn education platform. This investment both attracts more scholars and boosts player performance.

    Retention rate of crypto games is a key performance indicator of a healthy ecosystem. UniX reported a higher than average matchmaking rating (MMR) per scholar (in-game skill level) when compared to other guilds, resulting in higher earnings.

    5. Connect Investors with the GameFi Market

    Crypto gaming guilds also functions as a venture capital for the GameFi sector. They would scout new crypto games and invest if they see potential.

    Even for investors who want to invest in games but do not have time to play, they can invest in guilds and distribute scholarships to their members as well. This way guilds can help investors to indirectly invest in games through them without going through the hassle of doing research, managing accounts or operating the game.

    Conclusion

    Despite the bear market, the GameFi sector still shows a lot of potential in the future. This is because gaming is the number one form of entertainment in the world, and everyone can enjoy the opportunity to earn income from doing what they enjoy.

    However, the GameFi sector is still bottlenecked by high cost of entry and lack of economic viability in the long run. This is where crypto gaming guilds come in. They function as facilitating intermediaries by purchasing NFT in-game assets and lending them out to players to play and earn, which will be shared via scholarship program.

    Gaming guilds are also a great source of education for non-crypto users to learn about the crypto market, which will help drive the GameFi sector forward, bringing mass adoption one step closer.

    Investors who are interested in play-to-earn projects but do not have time to play can consider investing in guilds to manage their funds for profit.

    Frequently Asked Questions

    What is a crypto gaming guild?

    A crypto gaming guild is a web3 organization that is made up of gamers, investors, and managers. Their main goal is to provide resources such as in-game NFTs to players who can’t afford them. The players will then use the NFTs in crypto games to play and earn tokens which will be shared with the guild.

    How do crypto gaming guilds work?

    Crypto gaming guilds operate under a DAO (decentralized autonomous organization) structure in which funding comes from within the community of DAO token holders, in this case the DAO token issued by the guild. Guild members would then collectively invest in NFT assets and in-game tokens needed to participate.

    What is a scholarship program?

    Within the crypto gaming guild, owners of NFT assets can lend out their NFTs to other guild members known as “scholars.” Scholars can then use these digital assets to play and earn in the crypto game.

    How are profits shared in crypto gaming guilds?

    The distribution of revenue varies depending on the guild. Generally, 10% is paid to the guild as rent, 20% to the managers, and 70% to the scholars. Other guilds split the profits in half.

    Can you invest in crypto gaming guilds?

    Yes. For investors who want to invest in games but do not have time to play, they can invest in guilds and distribute scholarships to their members as well. This way guilds can help investors to indirectly invest in games through them.

  • How Much Money Has Been Stolen in Crypto throughout History?

    How Much Money Has Been Stolen in Crypto throughout History?

    Is Cryptocurrency Even Safe?

    The potential of blockchain applications is endless. It is based on principles of cryptography, decentralization and consensus, which ensure trust in transactions. It eliminates the need for intermediaries in a wide array of transactions, virtually transforming every corner of the global economy.

    Cryptocurrency, as a result of blockchain technology, gives us total control over our money, thereby becoming our own bank. On paper, crypto is generally safe thanks to the blockchain’s decentralized distributed ledger and the encryption process every transaction undergoes.

    However, the crypto space is still in development, and most of us still have to rely on third-party wallet providers to store our crypto. The security of our fund is only as safe as the safeguards and security measures the provider has in place.

    As crypto evolves, so do hackers and scammers. Malicious actors are getting more creative at exploiting vulnerabilities in blockchain projects, devising new tactics to bypass their security controls.

    How Much Money Has Been Stolen to Date?

    Over the years, hackers have exploited loopholes within the platforms of these third parties, especially on DeFi protocols. They have also coordinated attacks on certain cryptocurrencies directly such as utilizing flash loans to their advantage — borrowing a large amount of funds without collateral to quickly carry out pump-and-dump schemes.

    Crypto Hacks since 2011 (Source: Comparitech)

    To this date, more than $7 billion have been stolen in the crypto space. As crypto prices tend to change, that $7 billion would be worth so much more today. If the hackers were to cash it in today, they would have amassed a fortune worth more than $40 billion!

    This number alone is from exploits and thefts by hackers. It does not include other events such as rug pulls or corporate fraud. Those numbers would be even higher if they are added together.

    Five Largest Crypto Hacks in History

    Comparitech, a pro-consumer website that focuses on cyber security, has managed to track and record all attacks that have happened in the crypto space since 2011.

    There are 365 recorded attacks so far and the five largest hacks make up more than one-third of the stolen $7+ billion:

    Ronin Network (Axie Infinity) – $620 Million Stolen

    Ronin Network is an Ethereum-linked sidechain that powers Axie Infinity, one of the leading blockchain games. On 29 March 2022, Ronin Network was hacked and 173,600 ETH and 255,000 USDC were stolen as a result, worth $620 million at the time.

    See also: The Pros and Cons of Stablecoins: Why You Need To Know How They Work

    The U.S. Treasury Department attributed the hack to Lazarus, a North Korean hacking group. Lazarus reportedly reached out to developers of Axie Infinity via LinkedIn on the pretense of a fake company, offering them an “extremely generous” compensation package.

    A senior engineer took the bait and clicked a PDF which supposedly contained the “offer.” This led to the engineer’s computer being compromised as well as the validator nodes of the Ronin Network.

    Poly Network – $610 Million Stolen

    Poly Network is a cross-chain protocol that implements blockchain interoperability in DeFi. In August 2021, a hacker managed to exploit a vulnerability in Poly Network’s code which enabled them to transfer more than $600 million worth of tokens to their own account.

    Through a series of negotiation, Poly Network pleaded with the hacker to return the stolen funds, calling him “Mr. White Hat.” The platform even offered him a $500,000 bounty and a job as “chief security advisor.” Surprisingly, the hacker returned all of the stolen funds!

    Security experts believe that it was likely the hacker realized it would be impossible to launder the money and cash out, since all transactions are recorded on the blockchain.

    Coincheck – $532 Million Stolen

    Coincheck is a Japanese cryptocurrency exchange and NFT marketplace founded in 2012. In January 2018, its NEM (XEM) tokens worth more than $530 million at the time were stolen and transferred to 11 different addresses.

    Hackers exploited the fact that the tokens were being stored in a “hot wallet”, which was connected to the server. This made it susceptible to phishing attacks.

    Coincheck also did not have a multi-signature security measure in place, which requires more than one person to sign off before funds can be moved. As a result, a single point of failure would be established.

    MT Gox – $470 Million Stolen

    MT Gox was a Japanese Bitcoin exchange founded in 2010, and it was handling over 70% of all Bitcoin transactions worldwide by early 2014.

    It is arguably the most infamous case of crypto hacks in history. It was the first large-scale hack on an exchange and is still the biggest theft of Bitcoin (BTC) from an exchange to this day.

    The attack on MT Gox was not a solitary event. Rather, the exchange had been leaking funds since 2011, until it was discovered in February 2014. During this period, around 100,000 BTC were stolen from the exchange and 750,000 BTC were stolen from the exchange’s customers. At the time, these BTC were both $470 million, but today, they are worth around $4.7 billion!

    MT Gox filed for bankruptcy shortly after the hack. Only 200,000 of the stolen BTC were successfully recovered.

    Wormhole – $326 Million Stolen

    Wormhole is a blockchain bridge between Solana and other top DeFi networks, allowing users to swap Solana tokens (SOL) for other crypto on DApps across the Ethereum network.

    The attack exploited a signature verification vulnerability in the network that allowed the hacker to freely mint 120,000 wrapped ETH (wETH), worth $326 million at the time.

    Cross-chain bridges are critical infrastructure in the DeFi ecosystem as users can move their funds between blockchains. A lot of money is being moved. This means that security is a number one priority for these platforms. However, Wormhole was harshly criticized for its lack of comprehensive security audit before going live.

    According to an article by Hacken, though Solana may be blamed for providing the instrument with security flaws to its projects, Wormhole might have “prevented the incident by auditing the instruments it used.”

    The Bottom Line

    Despite improvements, the crypto industry still faces security concerns, especially in peer-to-peer ecosystems where anybody can join anonymously. It becomes almost impossible to track malicious actors when their identity is hidden.

    New forms of cyber threats are emerging that are capable of causing massive, irreparable damage. And this list will only continue to grow unless there is a solid security measure that is widely established.

    Therefore, it is important to learn about the potential security flaws that are prevalent in third-party platforms like DeFi, crypto wallets and exchanges. As investors, we should recognize the kinds of attacks that hackers pull off so that we can spot and avoid them beforehand.

  • Bearish Chart Patterns Cheat Sheet: Crypto Technical Analysis

    Bearish Chart Patterns Cheat Sheet: Crypto Technical Analysis

    Technical analysis made easy with bearish chart patterns packed into a cheat sheet, so that you can cut your loss during the bear market.

    Is Technical Analysis Useful?

    Crypto, as a new asset class, is volatile in nature. Its price fluctuates because it is heavily influenced by supply and demand, and it reflects how the public feels about the asset. This is known as market sentiment — bullish when prices are rising, bearish when prices are falling.

    The market is constantly changing. In many cases, it does not matter how you feel about it, it only matters how the market is going to feel about it.

    Market sentiment is a critical indicator to predict price movements and make investment decisions. An easy way to gauge market sentiment is by looking at chart patterns. They tend to repeat themselves, and once you are able to recognize them, it becomes easier to strategize your entries and exits.

    However, it is important to note that they are NOT a guarantee that the market will move in that predicted direction. It should only serve as a frame of reference for you to feel how the market moves.

    Bearish Chart Patterns

    These are some of the most common bearish chart patterns you will see in the market. This cheat sheet will help you identify real-time candlestick patterns whenever you’re on Binance, FTX or other crypto exchanges, so that you can spot bearish trends earlier and better prepare your exits to cut loss.

    Head and Shoulders (Bearish)

    Head and Shoulders (Bearish)

    The head and shoulders pattern is regarded as one of the most reliable trend reversal patterns. It is one of the top patterns that generally signals the end of an upward trend. The pattern is most prevalent among two of the largest coin by market cap, Bitcoin and Ethereum.

    The pattern occurs when a large peak has two slightly smaller peak on its side, resembling the shape of a head in the middle and the shoulders on the sides.

    The only thing you have to know is that all three peaks will fall back to the same level of support, also known as the “neckline.” Once the third peak has fallen back to the support line, it is likely that it will continue into a bearish downtrend. (Alprazolam) Traders would opt to short the market as a result.

    But if the tide turns in favor of a bull market, the asset will attract buying pressure, and the price will reverse into a bullish uptrend as a result. This usually happens if the third peak is slightly higher than the first peak.

    This is why the head and shoulder pattern is reliable because the result of the market being bullish or bearish is 50/50. There is a possibility the price action would go sideways following the third peak.

    Descending Triangle (Bearish)

    Descending Triangle (Bearish)

    A descending triangle is a bearish pattern which signifies the continuation of a downtrend, hence “descending” triangle. It happens when the downward-sloping line of lower highs crosses the support line, continuing the downtrend.

    This means that the market is dominated by sellers. Typically, traders will also enter a short position during a descending triangle in an attempt to profit from the continuous price drop.

    Successively lower peaks are likely to occur and unlikely to reverse. However, it could turn out to be a false breakout in which the price moves sideways for some time after breaking through the support line.

    Rising Wedges (Bearish)

    Rising Wedges (Bearish)

    A rising wedge occurs when the trend line is sandwiched between two upwardly slanted lines, getting narrower as the support line gets closer to the resistance line. In this case, the line of support is steeper than the resistance.

    It may seem like an upward trend but it isn’t. In fact, it is a reversal pattern. A rising wedge is usually indicative that an asset’s price will rise before it drops and breaks through the level of support, as shown in the second picture above.

    Generally, the asset’s price will eventually decline more permanently as a result. The rising wedge is difficult to spot because it resembles a bullish consolidation formation — the series of higher highs and higher lows keep the trend inherently bullish.

    There are no measuring techniques to estimate the decline. But the next best thing is to look at the trading volume. If volume declines as the price rises, the wedge gets narrower. This marks the exhaustion of the buying trend which is a sign of a bearish reversal. Thus, a break of the support line accompanied by high volume confirms the bearish pattern.

    Double Top (Bearish)

    Double Top (Bearish)

    A double top is when the price experiences a peak, before retracing back to the support line. It will then climb up once more before dropping more permanently. It resembles an M shape, hence “double top.” Jokingly, the M stands for working at “McDonalds” during the bear market!

    It may seem like a bullish trend, but it is in fact a bearish reversal pattern. The buyers push the price higher, creating a series of higher highs and higher lows. However, at a certain point, the buyers cannot extend this bullish trend, and the second peak is registered as an equal high as a result. This is when the sellers target this weakness, pushing the price even lower.

    Summary

    These are some of the most common bearish patterns you will see in the market. This cheat sheet will help you spot bearish downtrends earlier so that you can exit and avoid loss. However, it is important to note that crypto is volatile in general.

    These chart patterns are NOT a guarantee that the market will move in that predicted direction. It should only serve as a frame of reference for you to feel how the market moves.

  • Urgent: Ongoing Solana Hack, Million Dollars Drained from more than 5,000 Wallets

    Urgent: Ongoing Solana Hack, Million Dollars Drained from more than 5,000 Wallets

    What Happened to Solana?

    More than $6 million have been stolen from more than 5000 Solana wallets late Tuesday night, according to a tweet from Solana auditor OtterSec. The tweet is supported by other accounts on Twitter that claimed their holdings were wiped in a matter of minutes.

    The Solana auditor revealed that the transactions were in fact authorized by the owners of the wallets, suggesting a private key breach on a massive scale.

    ETH users may also be impacted by the attack. It is uncertain that the attack is limited only to the Solana blockchain. A TrustWallet and Slope wallet user reported losing USDC on both Solana and Ethereum.

    See also: What is Solana (SOL token): explained

    What Caused the Solana Attack?

    The exact cause of the Solana attack is as yet unknown, but Magic Eden, leading NFT marketplace of Solana, urged all Solana users to “revoke permissions for any suspicious links” as well as all apps if necessary.

    Reports indicate that all internet-connected hot wallets on Solana such as Phantom and Slope have been affected. Wallets that have not been used in more than six months seem to be mostly targeted, and all Phantom wallets have been compromised.

    Phantom tweeted, “We are working closely with other teams to get to the bottom of a reported vulnerability in the Solana ecosystem. At this time, the team does not believe this is a Phantom-specific issue.”

    On the other hand, crypto security firms believe that the exploit was not the result of a vulnerability with the Solana blockchain itself. Instead, they suspect the attack was a result of a mass compromise of users’ private keys by a third party.

    Sam Bankman-Fried, founder and CEO of FTX, commented in an interview with Fortune, “this wasn’t a core blockchain problem, likely seems like one app someone built was buggy.”

    Slope wallet to blame for the Solana attack?

    Solana is still investigating the hack, but so far is suggesting that wallet provider Slope is largely responsible for the security exploit. In a tweet, they state that “…it appears affected addresses were at one point created, imported, or used in Slope wallet applications.”

    Solana’s investigation is suggesting that Slope may be responsible.

    The Solana team has also found that whilst 60% of the victims were Phantom users, those who were affected did not generate their seed phrase using Phantom. Also, those who were solely Phantom users did not have their wallets drained.

    How Do I Protect Myself from this Attack?

    Users are advised to move their funds to a cold wallet such as a Ledger or Trezor hardware wallet, and ensure that the wallet has no previous approved authorizations to spend funds and is created offline following best security practices.

    For users without a hardware wallet, sending funds to major crypto exchange is a viable temporary solution.

    In the form of a community warning, web3 gaming company Star Atlas also urges users to withdraw permission for all of the apps in their wallets and shift money to cold storage with the Solana exploit underway.

    I have been affected by the Solana attack. What should I do?

    As ongoing investigations suggest that Slope may be responsible for the recent hack, Solana co-founder Anatoly Yakovenko advised Slope wallet users to regenerate their feed phrase in a different wallet.

    Slope has also issued a statement recommending ALL Slope users (not just those affected by the Solana attack) create a new and unique seed phrase wallet and transfer all their assets there. They also reassure users who have been using hardware wallets that their keys have not been compromised. Check this page for our hardware wallet reviews and guides.

    Note: Until 8th Aug 2022, Ledger is offering 10% off the Ledger Nano X and Ledger Nano S Plus when entering the code MOVESOL2LEDGER at checkout. Click here to buy!

    Is the Attack Still Ongoing?

    It’s unknown at this point whether the breach is still active, where it came from, and whether any further user funds are still in danger. Blockchain fraud investigator @zachxbt revealed that the attackers funded the main wallet connected to this operation via Binance seven months ago.

    The transaction history reveals that the wallet was inactive until today, at which point, the hackers made transactions with four separate wallets ten minutes before the incident occurred.

    Solana Hacker Wallet Address

    Frequently Asked Questions (FAQ)

    How do I protect myself from the Solana Hack?

    The current best strategy is to move funds into a cold wallet – such as the ledger hardware wallet. Make sure that the wallet has no previous approved authorizations to spend funds and is created offline following best security practices.

    Where to move my Solana funds if I don’t have hardware wallet?

    If you don’t have a hardware wallet, moving funds to a major crypto exchange is also a viable option now. However, it is recommended that users should get a hardware wallet and transfer their funds there as soon as possible. Check this page for our hardware wallet reviews and guides.

    Which Solana wallets were hacked?

    Multiple wallets – Phantom, Slope, Solflare, TrustWallet – across a wide variety of platforms are compromised. It is advised to move your funds to a hardware wallet or major crypto exchange for security purposes.

    Who were the Solana hackers?

    Investigators identified the following four wallets as the address of the attackers:
    CEzN7mqP9xoxn2HdyW6fjEJ73t7qaX9Rp2zyS6hb3iEu Htp9MGP8Tig923ZFY7Qf2zzbMUmYneFRAhSp7vSg4wxV 5WwBYgQG6BdErM2nNNyUmQXfcUnB68b6kesxBywh1J3n GeEccGJ9BEzVbVor1njkBCCiqXJbXVeDHaXDCrBDbmuy

    Is Solana dead?

    The widespread Solana wallet hack certainly impacts the market sentiment toward Solana, and many investors have expressed doubt about the project’s future. As of now, the attack has prompted an 8% drop in Solana’s price in the two hours following the first reports of the attack.

    What caused the Solana wallet hack?

    Crypto security firms believe that the exploit was not the result of a vulnerability with the Solana blockchain itself. Instead, they suspect the attack was a result of a mass compromise of users’ private keys by a third party.

    An ongoing investigation by Solana suggests that wallet provider Slope is responsible. This is because affected addresses were once created, imported, or used in Slope mobile wallet applications.

  • Crypto Bitcoin Horror Stories to Give You Nightmares

    Crypto Bitcoin Horror Stories to Give You Nightmares

    You’d be surprised at how people, loaded with Bitcoin and other crypto, managed to lose their ticket to retirement.

    One Wrong Click – $120,000 Crypto Gone

    A phishing attack is the oldest play in the book, the bread and butter of web3 scammers.

    They work by tricking victims with fake error messages, wallet pop ups, or flashy hyperlinks. They will then lead you to unofficial websites or extensions that would expose your wallet seed phrase or other sensitive information. 

    You’d think people would be more careful about connecting to shady websites, but the truth is both crypto newbies and veterans still fall victim to these to this day!

    Reddit user PowerofTheGods shared his story of how he lost $120,000 after clicking on a malicious link. While his ledger was unlocked, a Trojan malware took control of his computer and wiped all of his wallets in a matter of minutes. The sight of all his assets being transferred to the hacker’s wallet address still haunts him to this day.

    The story went viral and countless people also shared their unlucky experience. They reported to the authorities, but there was nothing they could do as cryptocurrency is still largely unregulated.

    Always be cautious when encountering suspicious links especially from an unknown source. Also always double-check the link that you are clicking is indeed the right one. Some scammers can even copy the domains of well-known DApps with slight moderations to it, and you won’t even notice the difference.

    Crypto Exchange CEO Died – All Users’ Assets Locked

    This case is the literal sense of the phrase, “taking secrets to the grave.”

    Canadian exchange QuadrigaCX’s CEO Gerald Cotten allegedly passed away in India in 2018. He was the sole custodian of the exchange’s crypto store, which is all held in cold storage.

    No one has ever been able to unlock the digital wallet passwords on his encrypted laptop. As a result, over 115,000 users’ assets are locked indefinitely, including 26,500 Bitcoin, 11,000 Bitcoin Cash, 200,000 Litecoin, and 430,000 Ethereum.

    In fact, in early 2022, Netflix released a documentary, Trust No One: The Hunt for the Crypto King, about Cotten’s life and his death in India.

    The morale of the story is never store your crypto on exchanges, especially if you have large holdings. Consider holding your funds in hardware wallets like Ledger Nano X, Ledger Nano S or Trezor Model T.

    Forgotten Password to 7,002 Hard-Earned Bitcoin

    About 20% of all Bitcoins are lost in circulation. That is a lot of money that is unlikely to be recovered. This happens when users forget their private key or even the password to the hard drive containing the private key.

    German engineer Stefan Thomas was given 7,002 Bitcoin in exchange for creating an animated video in 2011 called “What is Bitcoin?” However, he has forgotten the password to his encrypted hard drive called IronKey, which stores the private key to the Bitcoins.

    IronKey allows users 10 attempts to input their password correctly before the funds are encrypted forever. Thomas only has two attempts left before his Bitcoins are gone forever.

    Always remember to write down your password and seed phrase on a piece of paper and store it securely. Or it would be a lifetime of regret.

    Spring Cleaning Gone Wrong – 8,000 Bitcoins Lost

    Remember when some of your stuff would go missing, only to find out your mom had thrown them away because she thought it was useless? An action figure with sentimental value? No big deal!

    But for James Howells, it was life-changing. He had two identical laptop hard drives — one was blank and the other contained 8,000 Bitcoins. Howells had meant to throw out the blank one when he was clearing out the office, but instead the drive containing the crypto ended up in a landfill in Newport, Wales!

    This unlucky disaster continues to haunt Howells to this day. He has repeatedly petitioned Newport City Council if he can dig up the landfill site, which were all denied.

    10,000 Bitcoins for 2 Pizzas

    May 22 is known as Bitcoin Pizza Day. It is a well-known story in the crypto world. It was the day Laszlo Hanyecz paid 10,000 Bitcoins for two Papa John’s pizzas in 2010, which was worth $30 at the time. Now they are worth nearly $230 million!

    We can’t blame him for not knowing the future. Since Bitcoin did not have that much value back then, it was more like redemption points for pizza. Had he held his Bitcoins, he would not have to work a day in his life again.

    Amazingly, Laszlo said that he had no regrets about it, and was happy to be a part of the early history of Bitcoin. In fact, Hanyecz is the first person to use Bitcoin in a commercial transaction.

  • 3 Ways You’re Losing Crypto Without You Knowing!

    3 Ways You’re Losing Crypto Without You Knowing!

    If you think you are safe on the blockchain, think again! You’re constantly being watched, and malicious actors are getting more creative at stealing your precious crypto. Here’s what might be waiting for you.

    Your Crypto and IP Address Are Exposed Interacting on DApps

    Did you know that your personal data including your crypto and IP address are exposed whenever you connect to a DApp? Here’s how it works.

    Your wallet does not actually interact with the blockchain directly. Instead, it can only do that through nodes. A node is one of the computers that run the blockchain’s software to validate and store the entire history of transactions on the network.

    Each time you connect to a DApp, make a transaction or deposit funds to a protocol, the request is sent to a node, which verifies and executes the transactions. These nodes are usually deployed and run by node providers. But what you do NOT know is that node requests are also packed with sensitive information like your IP address, web browser version, and so on.

    Now, of course, these data remain at the node company. They have strict policies not to share the data with a third party. But what if the company gets hacked or acquired by some other company? That is when your personal information is out in the open. Node providers can also ban you from accessing the blockchain entirely via their nodes.

    Crypto Sandwich Attack on Decentralized Exchanges

    Have you ever wondered why you end up paying more for the tokens you buy on certain decentralized exchanges (DEX), only to find out they are worth less afterwards? The truth is, when you trade on DEXes, you are always losing out to bots. Here’s how it works.

    When you execute a trade, a bot front-runs your trade by buying the tokens right before your transaction is mined. This increases the price, making you buy for a higher price and pushing it even further up. Afterwards, the bot profits by selling the tokens after your purchase transaction is mined. This is called the “sandwich attack” because your pending transaction is “sandwiched” between the bots’ orders.

    Each transaction is sent to a public mempool, which is a queue for the transactions that have not been added to a block and are still unconfirmed. It is visible to everyone, and bots, being quick enough, can exploit that. There is nothing much we can do about it because that is just the public nature of blockchains.

    Getting Doxxed by Your Ethereum Name Service Domain

    Showing off your Ethereum Name Service (ENS) domain is cool, but did you know that people can use that to track down your wallet addresses?

    You can check out Unstoppable Domains: Get ready for a censorship immune future on how domain name services work.

    While ENS is a huge step forward in terms of convenience, it also means several steps backward when it comes to privacy. Since most blockchains are open and transparent, anyone can use your ENS to snoop on your finances. It is the difference between sending someone an email and them being able to look at your entire inbox.

    Here’s how it works. You will need a wallet address to register an ENS domain. As a result, each ENS domain has a wallet address attached to it. Even if you do not use your main wallet address to register your ENS, it is easy to trace this address back to your other addresses.

    Let’s look at an example – neutral.eth. At first glance, there isn’t much going on. At first glance, there isn’t much going on, but when digging a little deeper, the Ethereum address that registered the name held 58,000 Ethereum at one point, worth about $15 million at the time. This address regularly received large payments from the crypto exchange Poloniex’s main wallet. And all activities stopped the same day Circle – who owned the Poloniex exchange at the time, got rid of trading fees. This shows it was a company wallet that created neutral.eth.

    Just from an ENS domain alone, you can watch people’s movements, see insights into business deals and know just how much money people really have – all by observing public blockchain data. If your valuable information falls into the wrong hands, there would be a target on your back.

    Are DApps private?

    Certain DApps are run by node providers who can see your personal information such as IP address and web browser version etc.

    What is a Sandwich Attack?

    When you execute a trade, a bot front-runs your trade by buying the tokens right before your transaction is mined. This increases the price, making you buy for a higher price and pushing it even further up. Afterwards, the bot profits by selling the tokens after your purchase transaction is mined.

    Are ENS domains private?

    Since each ENS domain has a wallet address attached to it, it is easy to trace this address back to your other addresses.