Explore the latest updates from ATAIX and the blockchain industry
Despite the bumpy ride that this remarkable technology has endured in the past year, blockchain is still one of the most important and profound inventions of the modern era.
Many startups have failed but even more have succeeded in attempting to bring value to this industry. The most important sign that Bitcoin and its underlying technologies are still going strong and gaining momentum is the fact that big companies are pushing its innovation and overall value creation.
That being said, here are some of the most important trends that everyone should know about when it comes to blockchain today:
Real value vs hype
Practically any industry in the world that could bring innovation where there previously wasn’t, will naturally open huge possibilities for wealth creation, and can attract a lot of positive but also negative attention. For the blockchain industry, this has kind of gone over the edge. There has been an overwhelming number of scammers promising all sorts of get-rich-quick schemes that have fooled a lot of people. But despite that black hole of scams, the industry will see the light of day with the introduction of regulations that promise a lot less of these money grabbers. In any case, a little research and caution can go a long way.
The IOT - Blockchain story is just starting
The interoperability between the blockchain technology and IOT has doubled in 2018. This means that this trend is very far away from its peak and it’s just starting to show the endless possibilities that come from merging these two technologies. With expectations of over 26 billion connected devices in 2019, experts say that this year IOT will see an explosion of use cases and blockchain will push the numbers even further.
Breaking new ground in the financial industry
As it has become obvious by now that there is no stopping the revolution in the traditional finance industry induced by the Bitcoin and its underlying technologies. Many companies in the field have decided to stop resisting and start working on their own solutions that will improve the old inefficient and broken ways of doing business. ICE, the operator of the New York Stock Exchange, has already put their plans in motion with Bakkt – a Bitcoin-based futures trading platform. This represents one of the first steps towards implementing blockchain in many spheres of the current financial system that is just starting to improve the way we go about our finances.
Ever-increasing investment opportunities
With the implementation of blockchain technology, the entry bar for larger investments like real estate, for example, is significantly lower and continues to decrease. This requires a bit more regulation in order to allow everyday traders to take part in, but as things are moving along in that direction, in time we will surely see the doors open for the masses. Digital “shares” will become a common thing in all traditional investment markets and with the help of smart contracts, all of the unnecessary costs and the middlemen like lawyers and brokers will be eliminated.
Innovative projects utilizing blockchain is something we’ve already covered in depth, as well as the great possibilities that blockchain has opened for many existing companies from various industries. The use of smart contracts, improving supply chain management, quality assurance, voting processes, improving trust in transactions, accounting- the uses for blockchain seem endless. Now it seems, blockchain and its potential is starting to seep into the mainstream.
As it stands now, only smaller companies and startups have a firm grip on the use of the blockchain as a prominent part of their workflow. Many big companies have been doing research and testing the waters, but are not quite there with full implementation. The biggest problem that enterprise companies seem to have when it comes to blockchain is privacy. It’s just not enough for big companies to have pseudonymous blockchain as they have huge numbers of customers and customer data. If somehow an address used for private business from a company is made public, then all of that address transaction history will be publicly available forever. This creates a big problem for companies that have privacy regulations like GDPR and the California Privacy Act hanging right above their heads.
However the future isn’t all doom and gloom and despite certain concerns, some companies are attempting to build the necessary bridges between blockchain and their existing enterprise infrastructure. For investors interested in the blockchain technology who believe in its potential, this provides an interesting opportunity. Here’s a few companies who are looking into blockchain implementation:
Hyperledger Fabric is the name of the standard used by IBM that looks to provide a solution to the problems enterprises may have when it comes to confidential transactions. Hyperledger is hosted by The Linux Foundation and at the moment has the cooperation of hundreds of companies.
A statement from the company issued says:
“Data confidentiality mechanisms ensure that individuals or organizations are prevented from accessing data that they are not authorized to access, such as classified information of other organizations’ transactions. Anonymity requires that participants of transactions are concealed.”
IBM is actually one of the biggest companies out there that is an active proponent of blockchain use. They have created IBM Blockchain to implement blockchain use and are “transforming blockchain’s promise into bottom-line business results.”
Together with the startup Kaleido, Amazon and its Web Services (AWS) have joined forces to offer businesses the power of distributed ledgers with the introduction of Hyperledger and Ethereum templates.
AWS statement goes as follows:
“Introducing Kaleido to AWS customers is going to help customers move faster and not worry about managing blockchain themselves. Kaleido offers a full-stack SaaS for creating, operating and scaling enterprise blockchain solutions.”
This company has been doing an awesome job of working on a solution that will enable different blockchains to communicate with each other. Their main goal is to use smart contracts to make a transaction of data and assets between chains a simple process. The so-called “parachains” will play a big role in Polkadot’s product. They will be used for gathering and processing information and then sending it off to a relay chain. In the end, the data will be passed along to “bridges” that will connect to a base-blockchain like Ethereum.
This blockchain-based storage network has been developing two very interesting solutions that would hopefully suit the big enterprise companies. The first one is Provable Data Possession (PDP) and the other one is Proofs of Retrievability (POR). The idea behind this is to create an immutable and secure solution for storing, accounting for and exchanging large volumes of data between multiple parties. Access control will be implemented via multi-authority attribute-based encryption (MA-ABE).
When the first Bitcoin was mined back in 2009, it silently marked the start of something big. At that time the mining process didn’t really mean anything in particular other than “simply” creating a virtual currency. It was a niche that was shrouded in mystery, much like its founder.
At first, this revolutionary technology was supported and mined only by the enthusiasts and developers of Bitcoin. In order for it to become what it is today, it took many years of building its network’s foundation of miners that now comprises of thousands of people and companies around the world contributing to the most famous online payment system of all time.
Seeing as there’s been many advances in the crypto mining industry in this last decade, we wanted to briefly go over a handful of some of the more interesting methods people use today.
Number 1: Doing the right way. Legally.
At the beginning, like we mentioned, mining cryptocurrencies was reserved for the enthusiasts, developers, and entrepreneurs with some small capital to invest into mining rigs. Soon after, it became incredibly competitive with companies buying all of the latest gear, stacking it up in mining farms all over the world where the electricity is cheaper. But nevertheless, the Bitcoin crash dawned upon the industry and endangered the ability to make at a profit. Despite this huge downturn event this still is the most secure way to mine some crypto: simply upgrading your machine or buying a separate mining machine and getting to work.
Number 2: Using excess power
In some places there is surplus electricity that is generated, more than is demanded. In Washington for example, electrical power generated by the dams has been in overwhelmingly high numbers. More precisely, it is six times higher than what the whole population including the companies will ever need to use. This represents a great chance for miners as the local price for excess power in Washington has been dirt cheap which makes this region a worthwhile mining investment opportunity.
Number 3: Cryptojacking - Interesting but illegal (and completely unendorsed by us here at ATAIX).
This mining method has been very popular and pretty much on the rise from the moment it was created. What cryptojacking is practically doing is injecting a malicious code into an app, website or a computer in order to use the victim’s computer processing power to mine cryptocurrencies. Many people are using various web pages that offer them ready-to-mine code that they can just copy-paste into their own website or application so when someone is using their app or browsing their blog the processing power of the device is used to mine cryptocurrencies without the user knowing. Though certainly fascinating, this is nevertheless highly illegal.
Number 4: Using unregulated markets
Countries like Iran and North Korea that have been under sanctions imposed by most of the world are a pretty safe haven for miners. In Iran, they are using the high rates of the world traditional currency market between the US dollar and the Iranian Rial so they can still make more money at an extremely low crypto market value. An additional plus is the cheap electricity in the country so even if Bitcoin goes as low as 2000 dollars combined with the high fiat rates, they can still make a profit.
We are very pleased to announce the listing of the EURT coin on our platform. The EURT coin is the newest project of Tempo France, a Paris based company that specializes in bridging the gap between crypto and cash. Tempo Crypto provides people with a safe and convenient way to exchange their cash for any crypto they wish from anywhere in the world. Their latest product is an app bundling three services: worldwide remittances, a Stellar-backed Visa/MasterCard, and a Crypto Exchange.
Tempo is a regulated French établissement de paiement and bureau de change (money transfer company and currency exchange) whose team is highly experienced in the remittance and banking industries, providing people with an easy way of transferring both fiat and crypto currencies. They comply by EU standards.
EURT is a stable coin on the Stellar network which is valued one-to-one with Euros. Stable coins are very useful as a medium of stability and certainty in an otherwise very volatile market. Generally they’re used to trade for other cryptocurrencies or as a hedge against volatility.
Tempo also has its own native token Tempo ICO, which unlike the EURT is a utility token. Tempo is an extremely convenient service with more than 100,000 service centers in 80 countries worldwide. Sign up now to begin trading EURT and several other coins on ATAIX today!
Since the inception of blockchain, some people saw its potential beyond its traditional use as a payment system. With the astronomical rise of Bitcoin’s popularity, which has gone from the depths of the web to a household name, many more began looking into the technology it’s based on. As time goes by, the number of companies in many different industries that try to implement this unique technology in their day to day workflow constantly increases.
One of the most important industries, the healthcare industry, has been experimenting with blockchain implementation for some time, and has recently gotten the approval of the state to go ahead full steam. The US Department of Health and Human Services have received approval to start working on a system that will utilize blockchain and AI technologies.
This system will extract information from 100,000 contracts that are representing around 24.8 billion dollars of annual spending from five different contract systems in the Health Department. It will do an analysis on the expenses and terms of those contracts and eventually use all of that processed information as a guide for new purchases.
As the associate deputy assistant secretary for acquisition, Jose Arrieta, stated:
“We believe there are significant savings and significant price negotiation power that will come with having full visibility into prices paid and terms and conditions.”
With this solution, the US government will cut short the months-long process of doing market research and then extrapolating the data for analysis. In this scenario, all of the purchasing data will be updated in real-time making it available right away so that it can be used for planning as well as negotiating.
As mentioned before, blockchain is not the only technology that is going to be used in this new solution, as robotic process automation and machine learning will have a role too. They will be used for data cleansing as soon as that data is extracted from the contract system. Natural language processing will be used in order to analyze the terms and conditions but also the pricing information of the contracts.
The initial results of this new process are expected to be delivered in the first couple of months of 2019. With all of the feedback info from the teams that are going to be using it, it will be gradually improved over time.
There are also other examples of blockchain use by the medical industry. The Massachusetts General Hospital, which is one of the top five hospitals, in the US are working together with a Korean blockchain startup called MediBloc in order to find better methods to store and share their patient’s data.
As the director of the Laboratory of Medical Imaging and Computation of the Massachusetts General Hospital and Harvard Medical School, Synho Do, has said:
“In collaboration with Medibloc, we aim to explore potentials of blockchain technology to provide secure solutions for health information exchange, integrate healthcare AI applications into the day-to-day clinical workflow, and support data sharing and labeling platform for machine learning model development.”
Innovating and utilizing blockchain technology is happening simultaneously in all fields as we speak. It’s something we’ve monitored closely and are extremely excited about. Seeing blockchain be utilized not only in a professional field, but also a field that works to better the lives of everyone is a massive leap for the healthcare industry and also for blockchain technology.
We all remember the old days when everyone was getting their cell phones and SMS messaging became not only a trendy, but incredibly convenient, method of communication because you could instantly reach anybody, anywhere for a small fee, making voice calls a bit of an afterthought.
Sometime later the smartphone revolution started which marked a new chapter. Now paired with the internet, the smartphone started to increase its significance in people’s lives. Its messaging feature evolved passed many limits that were previously unimaginable, doing so without necessarily being connecting to the same cellular network as the whole planet was. Most importantly, smartphone messaging did so without incurring any of the fees that came with SMS messaging.
Applications like Facebook, Viber, WhatsApp, Telegram (among many others) emerged, and in time they were able to bring new features like group chats, image sharing, and longer message support for virtually no cost. Apple even converted its traditional SMS application to iMessage, which provided all the features these applications did between any two iPhones.
Seeing as things are constantly evolving, we can come up with many other uses for this SMS technology. Cryptocurrency transactions are increasingly becoming an everyday tool that are being implemented on a global scale. For example, Facebook, among other companies that pioneered the messaging technology, has an active dedicated cryptocurrency team. Some reports claim they are working on cryptocurrency that would enable users to send payments via their subsidiary company and messaging app WhatsApp.
Now there are also other companies like the Swiss based startup Zulu Republic that has developed their own service called Lite.im. Their service will use Facebook Messenger and Telegram and utilize their messaging abilities to send, receive, and manage cryptocurrencies. Additionally, they have a feature to use traditional SMS messages that will not only support their own native token ZTX but also some of the more popular cryptos out there like Bitcoin, Ethereum and Litecoin. Using the RSA encryption algorithm, this company will make sure nobody from Facebook or any other cell service company will be able to have access to users’ passwords and private keys.
As the CEO of the startup Zach Cavanaugh stated:
“Litecoin, Bitcoin – it’s portable money that transcends borders. Crypto can’t be stolen if you follow best practices. You can’t get locked out of it. It can’t be censored or mismanaged by governments. If we had a widely accepted self-sovereign identity system it could simplify the process of applying for asylum, getting financial aid, accessing legal and health services.”
Solutions like this one that allow anyone with a basic smartphone without an internet connection to send cryptocurrencies with a simple SMS message can provide an alternative to those that might need it (in situations without WiFi or data or otherwise).
A very simple but ultimately effective use of this could be philanthropists or charitable organizations helping people by easily sending them aid without worrying about corruption or middlemen.
By combining new emerging technologies with old existing technologies, we are seeing a potential to do some incredible things. Borders that were previously untouched will now be broken and new technological precedents can be set.
As the world is heading towards a larger adoption of cryptocurrencies, governments are catching up and are trying to push on regulations. There has been an ongoing battle for some time now between crypto exchanges and Denmark’s authorities, who were trying to get an approval to start collecting private users’ information. The battle came to an end this month when tax collectors got permission to start gathering sensitive information such as names, addresses, associated wallet information, and trading history data belonging to three unnamed crypto exchanges spanning from 2016 till 2018.
The statement for this decision mentions that all foreigners who have used a Danish crypto exchange will have to provide their personal details to their respective country’s authorities. Karin Bergen, Skattestyrelsen (SKAT) Tax Agency of Denmark Director said: “With the permission of the Danish Tax Council, we will, for the first time, gain access to the trades made via the Danish Stock exchanges. This gives us completely new opportunities in relation to control in the area.”
Considering the fact that one of the main purposes of cryptocurrencies is to provide anonymity with there being no law that mandated to give out any kind of data in Denmark, it has been very easy for the users to hide information from the tax authorities. According to SKAT, this action will “ensure that citizens who have traded cryptocurrencies have paid the right tax.”
This is one of the rare cases where a country has made such a decision that, despite how negative it appears, will definitely help to legitimize the crypto landscape. It will also play a role in terms of changing the public’s view about Bitcoin and the technology behind it as a tool for criminals and all sorts of illicit activities. The cryptocurrency community in Denmark, as expected, took the news wrongly. They firmly defend the anonymous nature of the virtual coins and will most probably start to avoid their country exchanges.
The earlier decision by the Denmark tax authorities published on March 2014 stated that no profit on cryptocurrency trading will be accounted for tax is set in stone and it’s all safe water for traders. Relying on this statement, the crypto community was let down. Towards the end of 2018, all directions pointed to the opposite direction when the tax agency of Denmark performed an investigation on 2,700 Danes that were trading in secret on a Finnish crypto exchange.
Many countries around the globe are now rapidly looking for ways to implement measures that will allow them to tax crypto trading activities. This would further push the need for truly decentralized exchanges that would bring the ultimate freedom to everyone who wishes to participate in these new trading markets.
Users of ATAIX as well as casual followers of the program may have noticed that we recently listed Noah Coin on our exchange. Those who are familiar with the Noah Coin are likely just as excited as we are that we are working with such an ambitious project. The Noah Foundation is the non-profit of the future, utilizing modern technology to find modern solutions to issues in the modern world.
Our listing article on Noah Coin briefly went over the project, its operations, and its goals, but the Noah Foundation is a great testament to how blockchain can be used for things outside its own immediate industry. We’ve talked in depth about how blockchain has the potential to lead us into a new age of internet, but it can be utilized to address a multitude of real-world issues as well.
The Noah Foundation is doing just this, by supporting projects in developing countries, encouraging economic development through blockchain technology. The foundation operates between the Japan and the Philippines, currently working on several economic projects in the Philippines. There are two main projects in the works right now. The first is a “Noah City,” located in the Horizon Manilla. Horizon Manilla is a reclamation project that will be the Philippine’s biggest business district, and Noah City plans to have its own city within Horizon Manilla, which will use Noah Coin as currency. There is a similarly planned resort in Zamboanga del Norte, one of the most beautiful provinces in the Philippines. This resort will also use Noah Coin for every feature on the resort, from activities to meals. The foundation has already found professional experts to partner with to help realize both of these projects.
Both of these projects, and any future ones, will utilize Noah Coin as its main payment method, however the Noah Foundations is open to working with other cryptocurrencies in their projects. These projects are definitely ambitious, but the foundation is taking all necessary steps to help make them come to life. And with the growing acceptance of cryptocurrencies as valid tender throughout the world, it seems like blockchain-based economic enhancement is a valid course of action for any developing countries.
Innovative usage of blockchain in this manner is becoming increasingly common. We’re already seeing all sorts of projects based on blockchain technology spring up. All conventional forms of internet websites now have their safer, less centralized blockchain counterparts, and the Noah Foundation is quickly proving that blockchain can provide an alternative to real world issues as well.
The Noah Project, started in 2016, is a cryptocurrency platform focused primarily on enhancing the Japan-Philippines trade and market.
Noah want to provide real value to millions of people by enabling a blockchain powered cost efficient remittance system for delivering financial support to their families. Thanks to the decentralized nature, the technology facilitates rapid and guaranteed cross-border transfers.
Thе Nоаh Prоjесt аіmѕ tо facilitate ѕосіаl іnnоvаtіоn for ѕоlving global есоnоmіс problems with the help of thе blосkсhаіn technology and mаkе mаnаgіng оnе’ѕ fіnаnсеs easier, fаѕtеr, сhеареr аnd more іmроrtаntlу, ѕаfеr. Find out more about the Noah Project here.
Join ATAIX now to begin trading with Noah or any of the other coins we have listed on our site. Follow our updates closely to be among the first to know when we list more coins in the future or to be notified of any other important changes we make.
Sign up with ATAIX and begin trading Noah Coin as well as all the other coins we have listed on our platform right away!
The first five coins we chose to list were chosen so intentionally since they are five reputable and trusted coins, each with their own unique aspects. Whether you're a newbie to the crypto trading game or a seasoned vet, we hope this quick overview of our first five listed coins will help you learn how you can use them on our platform!
Ethereum is the second largest cryptocurrency by market capitalization. Unlike Bitcoin, which is primarily a peer-to-peer digital currency, Ethereum is both a cryptocurrency and a blockchain platform for developers. The platform allows developers to build and deploy decentralized applications on top of the Ethereum blockchain. It’s native digital currency is Ether (ETH). It was launched in 2015 by Vitalik Buterin.
The Ethereum platform provides developers with the code and technical tools needed to build decentralized applications. On the platform, Smart Contracts are used to build and run Decentralized Applications (DApps).
One of the salient features of Ethereum is the Ethereum Virtual Machine, a Turing complete software that runs smart contracts. The EVM allows developers to easily and efficiently build DApps without having to create a new code from scratch. Using the ERC20 and the eRC721 standard, developers can also launch their own cryptocoins on the Ethereum blockchain. Since its launch, the platform has hosted hundreds of ICO projects. Some ERC20 standard projects have gone ahead to become high value tokens with practical use cases, like EOS.
Like Bitcoin, Ethereum uses the puzzle-solving Proof of Work algorithm. Known as Ethash, this algorithm safeguards the network from centralized mining, essentially locking out expensive, specialized mining rigs from the mining process. Miners compete with each other to confirm and verify transactions. They are rewarded with 5 Ether every time they generate a block. Mining is important as it fights fraud in the Ethereum blockchain. Although the Proof of Work consensus seems to work for Ethereum, it has its own flaws, including excessive use of electricity. Ethereum developers are keen on adopting other consensus mechanisms like Proof of Stake, to overcome the challenges of the current consensus mechanism.
How the wallet works
If you’ve mined some Ether, you’ll need a secure place to store them and that’s where a wallet comes in. Ether can be stored in a number of wallets, although the most popular one is MyEtherWallet. The wallet doesn’t store data or private keys on its servers but on your computer. It’s popular because of its enhanced security features and ease of use. Other wallet options for Ether include hardware wallets like Trezor and Ledger Nano S. One thing that is of great appeal about Ethereum wallets is that you can store as much ERC20 coins as you wish as these wallets support those. Whichever wallet you chose to store Ether, you’ll quickly notice that they work in a similar way. Despite their different features, their main mission is to secure your coins.
When you login to the ATAIX website, head over to your wallets. Click on “Deposit” on the top-right corner of the screen. In the “Choose Currency” dropdown, select Ethereum. If you’re sending Ether from a wallet, open the wallet and paste the address as the destination address. Alternatively, you can scan the QR code on the screen from your wallet. In case your Ether is locked up in an exchange, log in into the exchange, and paste the address as the withdrawal address. The transaction shouldn’t take long before it’s completed. The withdrawal process is similar, only that you’ll need to input your destination wallet address. Once you’ve withdrawn ether from ATAIX, you will be sent a confirmation email with a link on the email address that you used to register on the website. You will need to open this email and click on the link to confirm that the withdrawal process was indeed initiated by yourself. Once this is done, the ether will be sent to your destination wallet.
As the oldest and first cryptocurrency to emerge, Bitcoin is the most popular blockchain project. It was introduced as an alternative to fiat currencies by an anonymous inventor, Satoshi Nakamoto.
Since its launch in 2009, it has evolved to become the financial behemoth that it is today. At its peak in December 2017, a unit of Bitcoin (BTC) was trading at a historic price of $20,000. Because of its high value, Bitcoin is known more as a store of value than as a means of payment.
Bitcoin’s main goal was to decentralize the global financial sector. The underlying technology is the blockchain. Blockchain keeps a digital ledger of all transactions and is distributed to many computers, meaning that it cannot be altered by anyone and is not controlled by any central authority, like a central bank. Bitcoin’s white paper promises to deliver fast, low-cost, global payments that are safe and secure.
Bitcoin uses a consensus mechanism known as Proof of Work algorithm. In its basic form, this mechanism enables users to verify and confirm all transactions on the blockchain to prevent double spending of coins.
The process of verifying and confirming transactions is commonly known as mining. Basically, miners solve hard mathematical puzzles to create blocks of transactions which they attach to the blockchain. They get rewarded with Bitcoins every time they generate a block. Usually, the reward is given to the miner who runs the longest chain in the blockchain.
How the wallet works
Cryptocurrencies like Bitcoin are digital assets and are stored in digital wallets. To store Bitcoin, you’ll need to install a digital wallet that’s compatible with BTC. The default wallet for BTC is Bitcoin Core. Digital wallets come in different kinds but serve the same purpose. Some are physical devices, while others are paper, software, mobile or online wallets. The wallets keep your private key that enables you to use the BTC address of your coins in the Bitcoin blockchain. The private key essentially allows you to sign off your transactions, or, to spend your coins.
When you login to the ATAIX website, head over to your wallets. Click on “Deposit” on the top-right corner of the screen. In the “Choose Currency” dropdown, select Bitcoin. If you’re sending BTC from a wallet, open the wallet and paste the address as the destination address. Alternatively, you can scan the QR code on the screen from your wallet. In case your BTC is locked up in an exchange, login in to the exchange, and paste the address as the withdrawal address. The transaction should take about an hour to confirm on the blockchain. Once it is confirm, the funds will appear on your ATAIX wallet. The withdrawal process is similar, only that you’ll need to input your destination wallet address. Once you’ve withdrawn BTC from ATAIX, you will be sent a confirmation email with a link on the email address that you used to register on the website. You will need to open this email and click on the link to confirm that the withdrawal process was indeed initiated by yourself. Once this is done, the BTC will be sent to your destination wallet.
Stellar is a cryptocurrency that allows anyone to make cross-border payments using any pair of currencies. The platform forked from Ripple and kick started its blockchain journey with a $3 million loan from Stripe. Stellar’s native cryptocurrency token is Stellar Lumens (XLM). The cryptocurrency is known for fast transaction speeds of between two to five seconds. It uses distributed ledgers to connect banks, people, and payment systems. Launched in 2014 by Jed McCaleb and Joyce Kim, the project is backed by Stellar.org, a nonprofit.
The Stellar cryptocurrency is based on an open source, distributed ledger system that’s maintained by the Stellar Consensus Protocol (SCP). The consensus mechanism allows for flexible trust, decentralized control and enhanced security. The SCP is built around a unique Federated Byzantine Agreement model that allows it to support over a billion accounts and 1000 transactions per second. Stellar’s consensus model differs from other Byzantine models because it allows for open network participation to drive the growth of the network. One thing about Stellar Lumens is that they are not mined like Bitcoins. Instead, all Lumens were pre-mined in a genesis block, and a total of 100 billion XLM exist.
How the wallet works
Stellar Lumens are stored in digital wallets that are compatible with the Stellar blockchain. A wide range of wallets, including desktop, mobile, hardware and web-based wallets support Stellar Lumens. Unlike most other wallets that are free to use, Stellar wallets need every user to have at least 20 Lumens before they can be allowed to create a wallet. They say this safeguards the platform from spammers. You cannot use fiat currencies to buy Stellar Lumens so you’ll need to first buy BTC or ETH and exchange it later with XLM at an exchange. There are many services that allow you to directly buy BTC or ETH using Fiat currencies, Coinbase is a prime example of those.
When you login to the ATAIX website, head over to your wallets. Click on “Deposit” on the top-right corner of the screen. In the “Choose Currency” dropdown, select XLM (Stellar). If you’re sending XLM from a wallet, open the wallet and paste the address as the destination address. Alternatively, you can scan the QR code on the screen from your wallet. In case your XLM is locked up in an exchange, login in to the exchange, and paste the address as the withdrawal address. The next step is inputting the destination tag. XLM has a little nuance in that for this cryptocurrency, rather than having a wallet for each user registered on ATAIX, we have one wallet for our entire user-base. The destination tag serves to differentiate transactions done by each user and that the XLM held in the shared wallet is properly assigned to its rightful owners. Hence, the next step in the deposit process is to copy the destination tag from ATAIX and paste it in your wallet, in the Destination Tag section. Once this is done, you can hit send from your wallet and the XLM should appear in your ATAIX account in absolutely no time.
Withdrawing XLM to your own XLM wallet from ATAIX is very similar, except you don’t have to worry about Destination Tags. You can leave that field empty, or put any random number. You’ll get your XLM anyways, as long as the withdrawal address is entered correctly.
Like Ethereum, Cardano is a smart contract-based blockchain platform. Based on peer-reviewed research and scientific philosophy, the platform allows developers to build secure decentralized applications. Looking at the enhanced security and privacy features that Cardano brings to the table, it’s easy to see that the platform was built with the end-user in mind. The Cardano blockchain runs the ADA cryptocurrency. Cardano’s vision is to take banking systems to the developing world, where majority of people lack a basic bank account. This explains why its developers are keen on building a project that adheres to global financial regulations as they seek to reach the unbanked in all corners of the world. The Cardano project was created by Charles Hoskinson and Jeremy Wood in 2015.
The Cardano team minted 45 Billion ADA when the project kicked off. Unlike Bitcoin or Ethreum which use the Proof of Work protocol to add new coins into the ecosystem, Cardano uses a unique consensus algorithm known as Ouroboros, a Proof-of-Stake mechanism. Their consensus model revolves around nodes which have to confirm transactions to generate new blocks. In a proof of stake protocol, coin holders set aside coins which they “stake” to be allowed to confirm transactions. Cardano miners earn ADA for their work in the blockchain.
How the wallet works
Daedalus is the official and the only wallet for ADA coins. It’s an open source multi-currency digital wallet that was created by the Cardano team. Available for both MacOs and Windows operating systems, this wallet allows users to freely exchange between different currencies that the wallet supports. With the Daedulus wallet, you won’t need to worry about the security of your ADA coins. The Cardano team is also expanding the wallet to support Bitcoin and Ethereum Classic.
Storing your coins in this wallet is easy and straightforward. You only need to download and install it in your PC. Mobile users will have to wait longer as there’s currently no mobile wallet for ADA. One of the key benefits of the Daedulus wallet is that you get access to tons of applications that have been built by the Daedulus community. Like with most altcoins, there’s no way to directly buy ADA using fiat currencies. You’ll need to first buy BTC or ETH and exchange them for ADA.
When you login to the ATAIX website, head over to your wallets. Click on “Deposit” on the top-right corner of the screen. In the “Choose Currency” dropdown, select ADA (Cardano). If you’re sending ADA from a wallet, open the wallet and paste the address as the destination address. Alternatively, you can scan the QR code on the screen from your wallet. In case your ADA is locked up in an exchange, login in to the exchange, and paste the address as the withdrawal address. The transaction shouldn’t take long before it’s completed. The withdrawal process is similar, only that you’ll need to input your destination wallet address. Once you’ve withdrawn ADA from ATAIX, you will be sent a confirmation email with a link on the email address that you used to register on the website. You will need to open this email and click on the link to confirm that the withdrawal process was indeed initiated by yourself. Once this is done, the ether will be sent to your destination wallet.
Ripple presents itself as both a cryptocurrency and a platform. The Ripple platform is an open source software that allows for fast and low cost transactions. Ripple runs a network of financial institutions like banks and payment service providers that use the Ripple network to offer frictionless payment solutions. XRP is Ripple’s native cryptocurrency. Ripple was first released in 2012 by Jed McCaleb.
Most cryptocurrencies tend to use the two most popular consensus algorithms; Proof of Work or Proof of Stake. But ripple uses none of these. Instead, it uses its own unique algorithm known as Ripple Protocol Consensus Algorithm. It’s a technically different protocol compared to that of Bitcoin or Ethereum. Essentially, there’s no mining involved as all the 100 billion XRP coins were mined at the launch of the project. Ripple validates transactions and recommends to its users a list of trusted nodes that can validate their transactions.
How the wallet works
From software, hardware to paper, mobile and web-based wallets; you’ll be spoilt for choice when it comes to storing your XRP coins. There are many wallets out there that support XRP. Unlike Bitcoin wallets which are free to use, XRP wallets aren’t. Ripple requires all users to have a minimum of 20XRP to book their wallet. It’s a security feature that they say prevents spam. The XRP wallet functions about the same way as any other cryptocurrency wallet. They secure your private key, allowing you to use the public key, or address of your coins on the Ripple blockchain.
When you login to the ATAIX website, head over to your wallets. Click on “Deposit” on the top-right corner of the screen. In the “Choose Currency” dropdown, select XRP (Ripple). If you’re sending XRP from a wallet, open the wallet and paste the address as the destination address. Alternatively, you can scan the QR code on the screen from your wallet. In case your XRP is locked up in an exchange, login in to the exchange, and paste the address as the withdrawal address. The next step is inputting the destination tag. XRP has a little nuance in that for this cryptocurrency, rather than having a wallet for each user registered on ATAIX, we have one wallet for our entire user-base. The destination tag serves to differentiate transactions done by each user and that the XRP held in the shared wallet is properly assigned to its rightful owners. Hence, the next step in the deposit process is to copy the destination tag from ATAIX and paste it in your wallet, in the Destination Tag section. Once this is done, you can hit send from your wallet and the ripple should appear in your ATAIX account in absolutely no time.
Withdrawing XRP to your own XRP wallet from ATAIX is very similar, except you don’t have to worry about Destination Tags. You can leave that field empty, or put any random number. You’ll get your XRP anyways, as long as the withdrawal address is entered correctly
Anonymity and decentralization are the imperative concepts which cryptocurrency is based on. Shockingly, it isn’t as anonymous as people thought it would be. Data leakage by web merchants is common nowadays. The deals signed with their clients are exposed to the public, which involves the risk of linking individual keys. Government intelligence agencies have come to the rescue by using AI to trace such activities taking place in the dark web.
It’s now confirmed that cryptocurrency is no longer private as there are forensic tools which authorities use to track the entire transaction leading to the formation of blocks. These tools are used to uncover all traded, sent and received addresses that can be linked to people interested in tracing certain individual details. A UK-based think-tank startup called Elliptic that deals with preventing and detecting criminal activity in cryptocurrencies discovered large-scale illegal operations where Bitcoin and Ethereum were involved.
It is possible for cryptocurrency to remain anonymous and untraceable as it was in the past. However, Sarah Meiklejohn together with her colleagues at the University of California has discovered a technique called clustering which is used to monitor and record all the activities occurring on a blockchain. The clustering process assists in scrutinizing operations which makes it possible to track Bitcoin transaction. The clustering formulates a pattern that can easily be recognized by any person who isn’t necessarily a programmer or computer scientist. Crypto is great for providing privacy and security, but it is always encouraged to keep transactions with cryptocurrencies legal and safe. It is also imperative to keep records of crypto exchanging and trading for taxes.
So, is cryptocurrency as private as they claim to be? No. But is it private enough? Yes. With the help of AI and clustering, steps are being taken in order to resolve the issues encountered. Cryptocurrency transactions are remarkably more secure than that of fiat.
ATAIX has opened a new Subreddit for both our users and those interested in our platform or cryptocurrency trading in general. Have a look and don’t be afraid to join any active discussion or start your own.
We’ll have people moderating and following our Subreddit to make sure we address any discussions pertaining to our platform when necessary. Whether you’re a crypto pro or someone who is just curious on the topic, we welcome anyone to give our Subreddit a follow and start talking crypto right away!
Though we encourage all sorts of relevant and appropriate discussions, we would like to note that very common or user-specific questions pertaining to the platform can be addressed over in our FAQ section on the site. Here we have answers to all the most common questions we receive as well as have a direct line of contact for any ATAIX users with inquiries.
With more and more cryptocurrencies coming into existence, our options of cryptocurrency investments are also multiplying. Since each cryptocurrency has its specific distinctiveness, it’s hard to decide which one to invest in. Each can be applied in different areas to serve for different purposes. Obviously this can be a bit overwhelming and confusing for beginners, so we decided to highlight some of the most popular cryptocurrencies and their appealing peculiarities.
1. Bitcoin (BTC): Launched in 2009, Bitcoin is the father of all cryptocurrencies. As the most popular one on blockchain, it is a time tested, secure, and profitable crypto coin.
2. Ether (ETH): Ether is the native cryptocurrency of Ethereum, a platform which facilitates P2P contracts and applications. These P2P contracts are called smart contracts that have the ability to revolutionize how people and businesses interact.
3. Ripple (XRP): Released in 2012, its purpose wasn’t to compete with Bitcoin, but to complement it. Ripple was created for large financial institutions and quick transactions that include different currencies.
4. Bitcoin Cash (BCH): When blockchain and the Bitcoin cryptocurrency split into two as a result of a hard fork in 2017, Bitcoin generated a “spin-off” cryptocurrency which was named Bitcoin Cash. It has a larger block size which allows faster transaction times.
5. Litecoin (LTC): Launched in 2011, Litecoin is similar to Bitcoin in its technical aspect. Litecoin can produce up to 84 million coins, whereas Bitcoin’s maximum is 21 million. Transaction time is 2.5 minutes when using Litecoin, while Bitcoin’s is a little over 10 minutes.
6. Cardano (ADA): Released in 2017, Cardano’s distinctive feature lies in its transaction. This cryptocurrency allows you to add extra info and details to each transaction you make. Although it sounds similar to other cryptos, Cardano keeps the transaction and information in separate layers. You decide to fill the details whenever you find it necessary.
7. Neo (NEO): A decentralized, open-source cryptocurrency and blockchain platform launched in China in 2014. Neo focuses on smart economy and offers digital identity, smart contracts, DApps and GAS.
8. Dash (DASH). This cryptocurrency is also forked from the Bitcoin protocol. Created in 2014, Dash is a lot more decentralized than other coins and its privacy features are solid. Dash has a unified and detailed roadmap on exactly how to be able to offer cheap and instant transactions at a rate of 4,000 or more per second.
The best cryptocurrency for investments depends on what your needs are. Before taking any risky steps, you need to conduct thorough research on the available coins and see which one fits your requirements best. Some want to trade regularly and quickly, while others need more stability for long term investments. These are only 8 of the 1,658 cryptocurrencies out there, so manage your time effectively before managing your crypto-investments.
Remember that we are continuously adding cryptos to our exchange list so stay tuned to see which one of these (or any other coins) we might add next.
If you're ready to trade or just wanna try it out, join ATAIX today to start doing so immediately.
We are happy to announce that we have now listed Ripple’s XRP on our exchange list! Ripple is the third cryptocurrency we’ve listed on our platform, following Bitcoin and Ethereum. As we continue to develop our site, Ripple will undoubtedly bring a lot of possibilities to the platform.
The Ripple cryptocurrency (XRP) is the native to the Ripple protocol, an innovative payment system built on blockchain technology. The platform works for payments and currency exchanges internationally, and supports anything from crypto to fiat currency as well as many other units of value.
Ripple is the first blockchain protocol that is seeing widespread and mainstream adoption among banks and other payment networks. In fact, in 2017, Ripple doubled VISA’s transaction speed, a huge milestone for the platform.
ATAIX is very excited to list such a reputable and popular cryptocurrency on our platform. Join ATAIX to start trading XRP quickly, safely, and conveniently.
As ATAIX always strives to provide our users with the best experience possible, we’ve added a new Voting List function to take into consideration our users’ opinions. As we continue to grow our token and coin list, we want to know which ones you would like to see listed next.
The Voting List already has several candidates that we’re considering listing, and we need the help of our users to see which one is most demanded. Once you register with us, you can vote for as many of the coins you see listed once every 24 hours. Come back every day to vote for your desired coin and help it become the frontrunner!
If you don’t see your favorite coin listed on there, feel free to apply to get it up on our Voting List and get fellow traders to vote for it.
We want to ensure our platform is designed with the user in mind, and this is one of many steps we’re taking to maintain this goal. Register with ATAIX and begin trading with your preferred coins and tokens now.
We are happy to announce that we have officially listed Stellar’s Lumens (XLM) cryptocoin on our site, and ATAIX users can now begin trading with Lumens. Lumens is the sixth coin ATAIX has listed, joining Bitcoin, Ethereum, Dash, Monero, and XRP on our list of trusted and reputable cryptocurrencies users can trade and exchange with.
Stellar is among the most trusted protocols to exchange fiat currency to cryptocurrency with. Their site helps users transfer money across borders in a safe and secure manner using blockchain technology and their native currency, Lumens. Lumens have since become one of the most popular cryptocurrencies on the market.
ATAIX is happy to provide users with the opportunity to begin or continue trading with one of the most reputable and popular cryptocurrencies on the market. Join ATAIX now to begin safely and quickly trading with Lumens or any of the other coins we have listed on our site. Follow our updates closely to be among the first to know when we list more coins in the future or to be notified of any other changes we make.
At ATAIX, we strive to always provide our users with the best experience at maximized convenience while simultaneously ensuring a secure environment with reliable exchanging and trading. To make a more seamless experience, we are happy to offer users our new One-Click Exchange tool, which makes exchanging between different cryptocurrencies easier than ever before.
ATAIX is dedicated to continuously improving our site and all of its technologies and capabilities, while making trading both an easy and safe experience for users. The One-Click Exchange tool makes exchanging as easy as it gets, while still ensuring that security is a priority. Join ATAIX now to begin exchanging quickly, safely, and conveniently, whether you’re at home or on the go. As soon as you join, you will be able to use not only our innovative One-click Exchange tool, but all the other tools we have to offer as well, all designed to make crypto trading and exchanging quick, easy, and safe.
To be up to date on all our changes and to be notified first of any tools we will add in the future, subscribe to our newsletter now.
Eurotoken OU, ATAIX’ digital asset exchange operator in Europe, was recently granted two currency exchange licenses. The licenses were for fiat-to-crypto and crypto-to-crypto transactions, enabling ATAIX to be fully certified in Europe for these two kinds of exchanges. This, along with our thorough proprietary technology, advanced security solutions, and continuous updates, ensure that traders and crypto businesses can trust ATAIX with their transactions as one of the most reliable exchange partners for the European market.
We are already engaged in negotiations with potential partners currently considering listing their coins and tokens on ATAIX, as well as those looking into exchanging, trading, and fundraising activities on our platform. Join ATAIX now to begin trading safely, securely, and quickly.
For anyone who wants to trade cryptocurrencies, the obvious first step is purchasing some crypto coins/tokens to begin with. Luckily, purchasing cryptocurrency with a credit card has become much more convenient in recent years. The problem of chargebacks has been mitigated through anti-fraud companies, and more exchanges allow credit/debit cards as a valid payment option for purchasing cryptocurrency.
What exchanges allow cryptocurrency purchases with a credit or debit card?
Coinmama: Coinmama specializes in crypto purchases through credit/debit cards for over 180 countries worldwide. They have some of the most popular cryptos available for purchase on their site and users can buy them quickly and safely with their cards. Crypto purchased on Coinmama is received instantly and they do not limit the amount users can buy at once. It should be noted, however, that Coinmama does tend to charge more than other services and only allows users to buy cryptocurrencies, not sell them.
CEX.IO: CEX.io is a multifunctional cryptocurrency exchange established in 2013. It serves the United States, Europe, and some countries in South America, and is a reputable platform with over 2 million users. CEX.io allows users to purchase and sell cryptocurrency.
Coinbase: Coinbase is the largest crypto exchange platform worldwide. It serves 32 countries and has a whopping 20 million users in those countries. Coinbase transactions may take a few days based on the bank’s processing time, but they do allow both the purchase and sale of cryptocurrencies on their platform. Coinbase also has a great referral program, wherein users can get $10 when someone they referred makes a purchase or sale of at least $100.
Bitstamp: Established in 2011, Bitstamp is one of the oldest and most reputable Bitcoin exchanges and is fully licensed by the Luxembourg ministry of finance. Bitstamp allows both the purchase and sale of cryptocurrencies with a transparent progressive rate. Though Bitstamp was initially a EU centric platform, it has recently expanded to almost 60 other countries around the globe.
General steps of purchasing cryptocurrencies through the exchanges mentioned above.
Visit the exchange’s website or webpage and sign up for an account, most platforms require some form of ID verification for security.
Complete the signup process and go through all the requirements of the site. Once you sign up, you should now have a wallet address.
After signing up, go to the purchase option on the site and select the coin/token and the quantity you want to purchase.
Provide the wallet address for the coin/token you’re purchasing.
Some platforms require a secondary ID verification during each purchase, and you may need to do this once more.
Provide/confirm your credit/debit card information
The coins or tokens will appear in your wallet after the processing time has passed.
Once you have these cryptos in your wallet, you can deposit them into ATAIX and start trading!
Buying cryptocurrency using your credit card is a rather straightforward process as long as you have done your research and have settled on the right exchange. Of course, everyone’s needs are different and depend on various factors (country, quantity, coin/token), so not everyone will choose the same platform. See which one is your preferred option and start trading today!
The word “cryptocurrency” is being thrown around more and more often these days. Looking it up in a dictionary, it’d be described as a “digital or virtual currency that uses cryptography for security”, i.e., it’s a sort of an alternative and digital currency. The core of cryptocurrency is blockchain, which serves as a public financial transaction database. Why opt for blockchain instead of central banking systems if both essentially perform the same function? The main reason is that the latter is centralized, whereas blockchain is decentralized. The data provided isn’t stored in a central location, but is distributed among countless groups, making it infinitely more secure.
Bitcoin, one of the biggest names in the cryptoworld, was introduced 10 years ago by Satoshi Nakamoto, the anonymous programmer behind the first cryptocurrency. It was only a matter of time before others followed his footsteps and created other alternatives. Ether, Bitcoin Lite, Ripple, Bitcoin Cash were quickly introduced to the cryptoworld, providing users with more cryptocurrency options.
The rapid growth of its popularity has started to threaten the traditional ways of transacting money. Cryptocurrency is now becoming the norm. The reasons why people are more inclined to opt for virtual currency are A) reduced transaction fees, B) a safer ecosystem, C) peer-to-peer transactions with no third parties involved. Since its creation, 18% of US citizens have adopted the usage of cryptocurrency. Malta is in the process of possibly becoming the first country to have Bitcoin as their national currency. If cryptocurrencies continue growing and expanding at the current rate, crypto-analysts have deduced that by 2050, cryptocurrencies will become mainstream.
Why aren’t we ready to fully adopt cryptocurrencies yet?
Although it’s been around for almost a decade now, cryptocurrency is still a new concept to the world. Although it is a safer option than fiat currencies, it does have its cons. As a complex notion, people have difficulties understanding how it works. Its market volatility can, at times, lead to unstable and unregulated cryptocurrencies. Other risks include illegal activities through the dark web. However, these are all problems that traditional fiat currencies face as well.
Since cryptocurrencies provide decentralized alternatives to fiat currencies, financial institutions tend to oppose it. But, with its accelerated development, more and more cryptocurrencies are emerging, bringing along more opportunities to the cryptoworld. The issues encountered are being addressed and cryptocurrencies are becoming increasingly more stable as more people begin to use them. Perhaps not tomorrow, but it’s only a matter of time until we adopt cryptocurrencies as a replacement for fiat.
Profits made off of cryptocurrency trading and investing are taxed in most countries around the world. It’s important to be aware of these laws follow them accordingly. Here is a brief rundown on how cryptocurrency trading gains are taxed in the biggest markets around the world
United States: In the US, cryptocurrencies are legally considered to be property, not tender, as per the IRS. When trading crypto, the IRS views it like they view trading stocks.
“General tax principles applicable to property transactions apply to transactions using virtual currency.”
Canada: In Canada, gains from cryptocurrency trading are treated like gains from any investment. It is considered capital gains, and is subject to a 50% tax. Canadian traders can find more information and tips on this helpful article.
European Union: There is no general consensus for taxing cryptocurrency trading in the entirety of the European Union as of now, and each country has an individual approach. However, it seems that Brussels is working on coming to a decision regarding crypto taxing, and traders in the EU should be attentive in the coming months.
That being said, most nations within the EU are treating cryptocurrency gains as capital gains and are taxing them as such. Check the laws for your specific country to make sure you report your gains accordingly. More information can be found at this bitcoin.com article, which goes over how some of the nations within the EU are approaching crypto trading.
Japan: Japan treats gains from stock investments/trading and gains from cryptocurrency investments/trading differently. In Japan, cryptocurrency trading is considered miscellaneous income, and should be filed and reported as such. A progressive tax put on miscellaneous income means in Japan gains from cryptocurrency trading can be taxed anywhere from 5%-45% as per Japan’s National Tax Agency.
We understand that there are various other markets around the world and we have traders outside the four we have listed here. Our goal here was to make sure everyone is aware that cryptocurrency gains are generally taxed and traders should be aware of this in order to report their gains accordingly. Make sure you keep records of all trades and exchanges to be able to do this. For more information on how cryptocurrencies are legislated and taxed around the world, please visit this page, which covers a comprehensive list of countries.
As it stands now, we are in the middle of an internet revolution. Who’s we? Everyone on the internet: website owners, users, posters, bloggers, and anyone in between. This is because the internet as we know it is changing and users are slowly taking back ownership of the web. How? Through gradual decentralization.
Back in the early days of the internet, websites weren’t very interactive, and often were just static pages for users to browse. But strangely enough, the internet in those days was decentralized.
What does this mean? It means that anyone who wanted to start a website had to buy their own server and host the site on it. All the files were stored on this individual server. Of course, there were many technological changes from then until now as well, but that is a natural consequence of time. From a retrospective point of view, Web 1.0’s most important aspect was that it was an even playing field between all users.
Web 1.0 was basically a massive network of dispersed and decentralized servers wherein nobody had any more value than anyone else and everyone owned their own data. During the dot-com bubble, however, everything changed.
Entrepreneurs eventually realized how revolutionary the world wide web was, and began opening websites dedicated to all sorts of different things. Investors provided capital and technological advances were made that changed the nature of the internet. Websites were no longer static pages for merely observing and interaction on the user’s end now became intrinsic to the system.
The shift to Web 2.0 was gradual. There is no clear date on when Web 1.0 ended and 2.0 began. For users, the shift was part of the organic evolution of the internet. Websites didn’t become what we know them as today overnight, and improvements were made to the system step-by-step. These improvements, however, led to a mass centralization of data.
This network of individual, decentralized servers was replaced with massive cloud computing companies like Amazon Web Services and Microsoft Azure that provided a cheaper and more convenient alternative to anyone who wanted to host a website. And thus, we found ourselves sacrificing privacy and security for convenience.
As user interaction became critical to how sites began to operate, their data became a coveted and valuable part of the platforms they were using. Sites such as Amazon, Google, and Facebook created massive networks of servers to store this data on in order to better tune their own platforms and personalize them for users based on their information. This made the user experience much better and far more convenient, but it also meant users were giving up their data (and hence, their security) to these websites for free in exchange for this benefit.
Web 2.0 is a double-edged sword. We’ve received all the wonders of a fully interactive and personalized network of websites that seem to operate with their users in mind, but we’ve also sacrificed our privacy for it. The thought of massive servers storing all our data is a bit unsettling in and of itself, but it’s proven to be downright disastrous when this data has been compromised. And as we continue to move forward, these data breaches have only gotten bigger and more catastrophic, affecting more and more people.
Looking back on the shift from 1.0 to 2.0, such a centralization was necessary. There was really no other way to create and operate the platforms we’ve all grown to love so much without these companies collecting and utilizing our data. And, as with everything, it’s been a give-and-take relationship with a clear set of risks we’ve put up with to receive certain rewards. Now, however, it doesn’t have to be this way. These risks and rewards are no longer interdependent, and we are now able to reap all the benefits of this system while leaving behind all of its drawbacks.
With Bitcoin’s astronomical rise in popularity, blockchain has hit the mainstream. And blockchain is an integral part of Web 3.0 and the decentralization of the web. With blockchain, there is no need for a central data processing or storing service. Using any blockchain-based applications means your data is encrypted and stored on a network of thousands of independent servers around the globe.
Blockchain has come about due to a demand for any two parties to be able to transact with each other in a climate of trust, but without any intermediaries like banks, payment processors, or notaries. Such big, consolidated intermediaries exist because they are universally trusted to guarantee and sign off on transactions then put them into a database. However, this leads to all this data becoming centralized and thus extremely volatile. So we need a new way to achieve trust in a decentralized fashion, which is where blockchain comes in.
It’s vital to note that blockchain is not only decentralized and without intermediaries, but also infinitely safer. Any blockchain is a DLT (Distributed Ledger Technology), which means that the ledgers (databases of records and transactions) within its system are distributed and stored amongst thousands, if not millions, of computers, which are continuously updated and maintained through a consensus mechanism. Without a central owner collecting all the data, it becomes nearly impossible to hack into, because if a ledger is maliciously altered on one computer, the system automatically rejects it. A hacker would need the capabilities to hack into all of the hundreds of thousands of computers on the network, which at the moment is technically impossible.
Many platforms around the world are already beginning to implement this technology for uses that range from financial transactions to social media to journalism. People are putting their faith into blockchain, not only because there’s virtually no risk in doing so, but also because they’re sick and tired of large online conglomerates tracking and storing their information then using it for their benefit or selling it to others. With blockchain, your information is secured and only shared with your permission.
Of course, outside of decentralization, Web 3.0 will have many other benefits. There will be security, not only from data breaches, but also in reducing errors and service failures. Applications and devices will be more interoperable, working seamlessly with each other. Everything will be connected, but in a much safer manner.
The best part about all of this is that the transition from 2.0 to 3.0 will be painless. Just as we saw with 1.0 and 2.0, it will happen gradually and users will slowly find themselves using blockchain based platforms, sometimes without even realizing it. There are already platforms around the world that are recreating all the existing platforms we’ve grown accustomed to, but building it on blockchain technology. Slowly but surely, we’re taking back our information and decentralizing the web to make it work for our benefit.