Autor Cointelegraph By Max Moeller

What is Solana (SOL) Pay, and how does it work?

What is Solana (SOL) Pay, and how does it work?

Uverejnil používateľ | mar 13, 2022 |

PayPal was a massive innovation in the payments processing industry. The financial brainchild of Peter Thiel, Max Levchin and eventually, Elon Musk aimed far ahead of its time, facilitating instant payments between customers, businesses and more while utilizing the internet.Solana (SOL) Pay is considered by many to be the next innovation in the payments processing arena, facilitating payments while taking nonfungible tokens (NFTs) and Web3 into account. Some are going so far as to call Solana’s new payment protocol the Visa or PayPal of Web3. This post will break down Solana Pay and how it works so you can decide whether the project is all it’s cracked up to be.But first, it’s vital to understand Solana before getting into the digital payment platform Solana Pay.Related: What is Web3: A beginner’s guide to the decentralized internet of the futureWhat is Solana?Solana was founded in 2017 by Anatoly Yakovenko, a software engineer with a background at Dropbox and other big tech companies. Yakovenko believed that while other blockchains are efficient or at least working toward efficiency, many of them fail to factor in time. Instead of every block relying on a standardized clock, each block runs on the local time of their relevant node. Why is this a problem? Without a standardized clock, transaction timestamps will vary for each block and the time of confirmation is yet another factor that all nodes must validate. The more factors a node has to validate, the slower the transaction time.On Solana, all nodes run on the same clock, removing one validation factor and speeding up the network as a result. Yakovenko refers to this consensus method as proof-of-history (PoH) — a modified version of proof-of-stake (PoS) that factors in time for verification purposes. Validation works similar to proof-of-stake in Solana’s case. Solana is just using time as a historical record of proof on top of the proof-of-stake method. As a result, Solana can process an average of 65,000 transactions per second with minimal fees. Solana is also a smart contract decentralized finance (DeFi) platform competing with Ethereum (ETH). Both platforms offer all sorts of decentralized finance DApps, some with their cryptocurrencies as well. Instead of Ether at the center of it all, the Solana token is SOL.SOL is used to transact within the Solana network, to stake for governance purposes and is given as a reward to validators. Otherwise, Solana has its own decentralized exchanges to trade the various tokens built on top of its platform. Every DApp built on Solana is sure to have its own SOL-compatible token, and on-chain decentralized exchanges provide an accessible way to buy said tokens Now, because Solana’s PoH consensus allows it to process tens of thousands of transactions per second without fees, Solana Labs is building Solana Pay to provide that transaction power to the masses.History of Solana PayWhile Solana Labs were a big part of the Solana Pay development process, other companies were involved as well. According to Shere, Circle, Checkout.com, Citcon, Phantom, FTX and Slope all played a part in establishing the foundation for the digital payment platform Solana Pay. Team Circle states that “73% of businesses believe accepting digital payments is fundamental to growth in 2022,” according to a study by Visa. That same study revealed that 59% of those businesses “already are, or plan to, use only digital payments within the next two years.” These statistics were part of the foundation for Solana Pay, as Solana Labs, Circle and their other partners want to be ready for these early adopters. Shere joined Solare Labs in 2021 to work on Solana Pay.How does Solana Pay work?Digital payment platform Solana Pay offers businesses and customers immediate, fee-free transactions that allegedly have zero effect on the environment by harnessing the power of the Solana blockchain network. The network claims to support 65,000 transactions per second and provides an easy-to-implement software development kit for businesses to integrate the product.Developers building DApps on Solana can integrate Solana Pay for easy transactions, just as traditional retailers can implement it if they have a Solana wallet. That accessibility is why many compare Solana to PayPal, stating that Solana can do for crypto payments what PayPal did for traditional online payments.Related: What is Solana (SOL) and How Does it Work?Advantages of Solana PayOf course, Bitcoin (BTC), ETH and other cryptocurrencies claim to provide a near-instant crypto payment, but these networks (especially Ethereum) are costly and not as instant as they might claim. For instance, Bitcoin features an average of seven transactions per second, while Ethereum averages thirteen transactions per second. Both Bitcoin and Ethereum are harmful to the environment as well. Solana’s network is faster and cheaper, which is attractive to businesses and customers. Solana Pay allows its users to pay in real-time in SOL or any other supported Solana token, such as real-time payments in USD Coin (USDC), without involving a third-party such as a bank or payments processor. Moreover, Solana Pay doesn’t allow for chargebacks, removing a costly issue that traditional merchants often face. Also ideal for merchants, Solana Pay offers detailed reports on every transaction such as wallet destination, currency type, the transaction amount and text fields for the merchant to describe the said transaction. These details are kept entirely private from the rest of the network, ensuring that both the customer and the merchant can transact without prying eyes.As the head of payments at Solana Labs, Sheraz Shere, states in his blog post announcing Solana Pay, the Solana team wants the world to look at Solana Pay as something bigger than allowing users to “pay with crypto.” Instead, Shere views Solana Pay as a platform where “all currencies are on-chain and used for a wide range of transactions,” he says.Disadvantages of Solana PaySolana Pay, alongside the Solana network, itself, is in an early stage of development. Businesses who switch over to Solana Pay run the risk of losing their assets due to a programming error or attack on the network, for instance. It’s possible to lose assets due to basic user errors if the business isn’t crypto-knowledgeable, as managing a crypto wallet doesn’t come naturally to everyone.Also, while Solana is faster than many of its competitors, Ethereum is still a much bigger platform overall. Ethereum has many more DApps and a larger user base than Solana, and Ethereum’s eventual move to Ethereum 2.0 could prove problematic for Solana as well.Solana Pay for merchantsWhile Solana Pay might sound complex, integration for merchants is pretty simple. To start, a merchant must establish a Solana wallet, which they can do individually or through the FTX exchange. From there, the merchant must implement some Solana Pay code into their website and encode their subsequent crypto payment request link into a QR code. Now, customers can pay for goods and services both digitally and in person by simply scanning a QR code within their SOL-supported wallet. Solana Pay for developersWhile Solana Pay has its base use case in offering merchants a way to accept crypto easily, the Solana community can propose changes and present new use cases. Solana Pay’s documentation invites users to open up a Github issue if they want to propose changes and updates. In his blog post regarding Solana Pay, Shere notes that Solana Pay could facilitate physical and digital transactions via NFTs. His example revolves around buying a pair of shoes. A customer might buy a pair of shoes using Solana Pay, and walk out of the store with two NFTs. The first NFT allows her to use those shoes in the metaverse, and the second is a receipt for her purchase. That receipt doubles as entry into the retailer’s exclusive club of NFT holders that receive discounts and other bonuses from the retailer.Wallets that support Solana PaySolana Pay is currently supported in three wallets: Phantom, Crypto Please and FTX. Phantom is a Solana-only wallet for buying, holding, and swapping crypto and NFTs. Crypto Please is another Solana-focused wallet enabling users to send crypto over Telegram, Whatsapp and more. Finally, FTX is an exchange that supports all types of cryptocurrencies including Solana. More wallets that support Solana Pay are coming soon.

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Why bandwidth needs a layer-1 blockchain, explained

Why bandwidth needs a layer-1 blockchain, explained

Uverejnil používateľ | mar 1, 2022 |

Users will be able to tokenize their bandwidth and sell it in a decentralized trading marketplace to help provide low-cost access to the internet. PKT is the only layer-1 blockchain that is designed to support bandwidth trading marketplaces and high-speed internet service. PKT uses the world’s first bandwidth-hard proof-of-work (PoW) mining solution to create an economic incentive while building a high-speed data network. Forked from Bitcoin (BTC), PKT replaces the SHA-256 PoW standard with the collaborative PacketCrypt mining protocol.  Within the PKT Network, users with unused bandwidth earn PKT Cash (PKT) coins by directing their excess bandwidth and compute resources to mining. The act of connecting bandwidth to the PKT Network is called announcement mining. Announcement mining utilizes the miner’s CPU to produce small packets of data and uses upload bandwidth to move this data to different PKT mining pools all around the world. PKT mining pools pay announcement miners because having more announcements allows the pools to mine blocks more efficiently. Initially, miners are just proving they have the bandwidth, but also use cases, such as bandwidth trading marketplaces and bandwidth sharing, are being developed. Because pools ingest so many announcements from around the world, they require a very high network capacity of at least 40Gb/s internal connections. These infrastructure requirements build and scale the high-speed, high-throughput PKT Network as more people connect their unused bandwidth. PKT is a completely decentralized blockchain project that follows in the path of Bitcoin, with no company, no investors and no pre-mine. The PKT Network is entirely built by the people who connect to it, with the focus on making use of excess bandwidth that would otherwise go to waste and to help get people access to low-cost, high-speed internet connections worldwide. Learn more about PKT Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you with all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor can this article be considered as investment advice.

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How to trade crypto using BTC dominance?

How to trade crypto using BTC dominance?

Uverejnil používateľ | feb 28, 2022 |

Bitcoin (BTC) is both the first and the most prominent cryptocurrency in the world when it comes to market capitalization as well as trading volume. These factors are quite significant, considering that all cryptocurrencies trade against Bitcoin and Bitcoin’s dominance can actually serve as a valuable indicator when trading all different types of cryptocurrencies.This post will offer insight on how to trade cryptocurrency while utilizing the Bitcoin dominance indicator and how to read the Bitcoin dominance index chart overall.What is the BTC dominance chart?Bitcoin dominance is uncovered by comparing Bitcoin’s market capitalization to the capitalization of the entire crypto market. The higher Bitcoin’s market capitalization the more Bitcoin dominance is at play, and we have the answer to the question: What percentage of the crypto market is Bitcoin?The BTC dominance TradingView chart showcases these numbers in a clear percentage format where one can take a quick glance and understand if BTC dominance is at 40% or 60%, for example.That said, users can also view the Real Bitcoin Dominance Index, which calculates BTC dominance only against proof-of-work (PoW) coins aiming to become a form of money.The logic behind the Real Bitcoin Dominance Index is that many altcoins such as stablecoins aren’t aiming to compete with Bitcoin and, so, it may paint a more realistic long-term view on Bitcoin’s dominance.This indicator even gives users the option to exclude Ethereum, as it’s debatable whether or not Ether (ETH) is meant to be a currency rather than a utility token.How does BTC dominance affect altcoins?BTC dominance can directly affect altcoins, as it showcases how much of the market’s trading volume is in BTC vs. how much of the trading volume is in altcoins.Generally, if Bitcoin dominance is up, then traders recommend one has more of their crypto holdings in BTC than in altcoins. If BTC dominance is down, traders recommend one holds more altcoins than they do Bitcoin.While it’s wrong to say Bitcoin dominance is an exact representation of a bear or bull market, there are correlations between these definitions. For example, bull markets might lead to lower BTC dominance, as funds are typically pouring into altcoins at that time.Conversely, bear markets might see higher BTC dominance, as traders may be pulling their funds out of altcoins and putting money into Bitcoin since it’s more of a reliable asset.Some enthusiasts might say that lower Bitcoin dominance is a good thing, as it means the crypto market is expanding and funds are flowing through all sorts of projects instead of just Bitcoin. But, it’s also worth noting that the total crypto market capitalization will take pre-mined and forked coins into its value, meaning altcoin counts might be artificially inflated.One should also consider the fact that Bitcoin dominance can decrease even when the asset’s price increases. This can occur when money is pouring into the crypto market with Bitcoin included, though more money might be moving into altcoins than the world’s largest cryptocurrency.The point is, while Bitcoin dominance might paint the crypto market a certain way on a surface level, there are various factors to consider to gather an informed view.Sometimes dominance might be down due to a short-term altcoin boom while other times, the entire market might be bleeding money. It’s always best to do additional research before making an investment decision.How to trade Bitcoin dominance?There are multiple factors to consider when attempting to trade Bitcoin dominance. First, understand that Bitcoin dominance can go down if interest is high in even one altcoin. This interest in a single altcoin doesn’t mean that every altcoin will experience upward trends. The market may take some time to correct itself.It’s also best to consider the intent of some popular altcoins and whether or not that intent will translate into a lasting impact on the altcoin market. For example, we might see a stablecoin experience a significant uptick in volume for the time being.However, users might invest in said stablecoin simply to move those funds over to Bitcoin, as stablecoins can be an easy way to onramp funds into the crypto industry.As a result of this activity, Bitcoin’s dominance could quickly drop and rebound, impacting short-term trades negatively. Another factor that could lead to unpredictable short-term drops or rises in Bitcoin dominance is fear of missing out (FOMO).New coins enter the crypto market all of the time. Some of these new altcoins entering the market generate a ton of hype that results in hundreds of thousands of dollars flowing into the altcoin side of things and disproportionately lowering Bitcoin’s dominance.However, many new altcoin projects often lose their hype or even end up being a scam, causing users to pull out their holdings as fast as they input them. In that case, Bitcoin’s dominance might rise back to its original place.One should also consider the extremes of Bitcoin’s dominance ratio. For example, Bitcoin’s dominance used to be at over 90% before altcoins entered the market. However, enthusiasts note that Bitcoin’s dominance is unexpected to hit that number again due to the prevalence of altcoins in today’s market. But, it’s impossible to say for sure, as if countries follow El Salvador implement Bitcoin as legal tender BTC’s dominance may rise once again.In fact, Bitcoin’s dominance is much more likely to hit new lows than new highs as altcoin projects continue to gain popularity across the mainstream.As a result, traders should note when Bitcoin dominance is trending toward an all-time high, as that could mark a good threshold in which BTC dominance may see resistance. Conversely, users should keep an eye on BTC dominance reaching toward new lows and how the altcoin market is reacting as a result.What happens when Bitcoin dips?Bitcoin’s price dip could mean a lowered dominance in that users are moving funds away from BTC into other altcoins, but a price dip can also have little to do with dominance as a whole. If Bitcoin dominance drops, users might certainly expect an altcoin bull run and can trade accordingly.That said, a Bitcoin price dip could occur if users are pulling funds out of all cryptocurrencies, resulting in a lower crypto market capitalization overall. In this case, Bitcoin dominance may remain at a certain percentage despite traders’ anticipation of a potential bear market.This example is an essential reminder that Bitcoin dominance shouldn’t be the only tool at a trader’s disposal, rather one of many to examine before making a trade.The impact of a Bitcoin crash on the crypto marketDominance aside, a significant Bitcoin price crash has historically often led to an overall market crash, though few exceptions exist. This correlation between Bitcoin and a market crash is simply because Bitcoin is the world’s first cryptocurrency and all crypto assets trade against it.Look at it this way: If a country considers banning Bitcoin and the price drops significantly as a result, traders and speculators might lose confidence in altcoins as well and pull their funds from these alternative investments.That said, a Bitcoin crash doesn’t always mean an overall market crash. There are multiple occasions where Bitcoin suffers a significant price drop while Ether remains more stable. It’s important to remember that different assets serve different purposes, and the downtrend of one may not correlate to the downtrend of another.In fact, as time goes on and altcoins break into the mainstream consciousness, future Bitcoin crashes might have less and less of an effect on the overall market. Bitcoin dominance matters now because it’s still the most popular cryptocurrency in the world. If other coins begin to take that mantra away from Bitcoin, dominance will matter less and less.

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Why real estate investors are going crazy over virtual lands?

Why real estate investors are going crazy over virtual lands?

Uverejnil používateľ | feb 26, 2022 |

The value proposition of virtual land works similarly to the real world. High-value properties are often near shops and activities, in which people will pay higher rent to live by.  Of course, the value of virtual land only increases if areas develop and people get involved in the metaverse. This prospect is why there are many skeptics of such an investment. The millions of dollars worth of investments into virtual land is all a risk, but it’s not an unfounded one. After all, celebrities and stars are buying virtual land for all sorts of reasons. Some celebrities, like Snoop Dogg, are buying land to get ahead of the trend or because they think it’s fun. Others, such as the Winklevoss Twins, invest in land for educational purposes — to build exhibits that teach others about crypto and the metaverse as a whole.  From there, fans have the opportunity to buy metaverse properties next to their favorite stars and will pay top-dollar to do so. Those interested in virtual real estate investing are betting on the possibility of their land becoming more valuable over time, hence their bullishness toward virtual land as a whole. If you’re wondering why some believe metaverse is the biggest investment opportunity, appreciation in land value is one of them.  In fact, in some realms such as PolkaCity, property owners are earning passive income through annual interest rates. Unfortunately, to some, passive income isn’t a feature in all metaverse projects, and it’s always a risk to invest in an asset expecting profits later on. This variety of income methods is all the more reason to do in-depth research before investing.

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Blockchain assessment: How to assess different chains?

Blockchain assessment: How to assess different chains?

Uverejnil používateľ | jan 18, 2022 |

With so many blockchain networks appearing all the time, new or even experienced crypto enthusiasts may feel overwhelmed when it comes to deciding which are the best to invest in.In this guide, we’ll outline the most important aspects of any blockchain project, and why one should pay close attention to such details when assessing the different chains on the crypto market.Use caseArguably the most important part of any blockchain project is its use case. What is the project’s reason for existing? Is the project here to enhance payment processing? To improve on a business supply chain or to entertain users?There’s technically no such thing as an invalid use case, but some are certainly more applicable than others. For example, a project meant to assist millions in acquiring food is likely to earn more support than a meme coin. If one decides that a project is valuable to them and that this value can translate over to a wide audience, then that’s a point in the project’s favor.When examining use cases, it’s best to look at the project’s white paper. For example, we can take a look at Polygon’s whitepaper, which details potential use cases associated with the platform.CommunityA project is nothing without its community. Blockchain technology is an open-source and user-driven solution, after all. When assessing a blockchain, it’s often best to check into the community and see how much power they have. Reliable projects are generally as decentralized as possible, providing users from all over with the ability to hold tokens and have their say in governance. These users are usually outspoken, with public conversations happening on platforms like Reddit, Twitter and Discord. It’s usually best to join a project’s Discord server to gauge both the size and contributions of its community.Transaction speeds and scalabilityOne’s blockchain project of choice might have the best intentions, but if the technology can’t scale or reliably process transactions, it’s at a severe disadvantage. What good is a platform that can’t serve the hundreds of thousands of customers it hopes to gain?When assessing a blockchain, it’s best to examine the network’s typical transaction speeds alongside how it intends to scale en masse. Is it possible to implement upgrades down the line? Will it, or does the network already utilize a layer-two solution? Does the solution sound realistic in the long term?The Ethereum website contains extensive documentation on its current and future scalability methods. One can pair this factor alongside the community one, as dedicated community members would have public discussions surrounding their favorite project’s use cases and potential upgrades, as well as how it’s currently running.Consensus and governanceThe two most common blockchain consensus methods are proof-of-work and proof-of-stake. Proof-of-work (PoW) networks require miners that are users who dedicate their computing power to solve complex equations and validate transactions. Miners are paid for their efforts with each block mined, though the computer power required is harmful to the environment.Proof-of-stake (PoS), on the other hand, provides power to users who hold and stake, or lock in, their digital assets. Generally, the more assets a user stakes, the more power they have within the network. By staking, users typically become validators who then validate transactions, removing the need for miners. This process is more environmentally friendly than mining and rewards users in interest for their efforts. While both PoS and PoW have their pros and cons, many believe PoS is the future of blockchain and that PoW networks are on their way out. After all, PoS is the more scalable option and Ethereum, the second-largest cryptocurrency in terms of market capitalization, is making the upgrade to PoS over the coming months. Consensus directly affects network governance and is something to consider when assessing different blockchain networks.TeamThe team behind the project is just as important as the technical aspects of any blockchain. Projects should be very open regarding who’s developing a project, as well as the history and skillset of the team. Failing to disclose the details about the development team can be a significant warning sign while assessing blockchains, as a lack of information could mean they’re looking to scam users. While this isn’t always the case, it’s recommended to stick with projects that are open about their development process.The Polkadot project has some of its key members available on its website, including their real names and history. That said, it could be improved by including relevant social links to the team’s profiles so that users can conduct their own research to verify the project and the team behind it. RoadmapNot only should a blockchain have a solid reliable use case, but it should have a roadmap planned out regarding future developments and product feature additions. A thorough roadmap generally means that the team has thought long-term about their project and how it can benefit the world. It also provides users with more knowledge about what they’re investing in, and whether or not the network aligns with their values.The Cardano roadmap features detailed sections for each part of its roadmap, ensuring that all users can understand what to expect in the network’s future.Market capitalization/total value locked (TVL)When it comes to decentralized finance (DeFi) projects specifically, one vital factor to consider is its total value locked (TVL) and its market cap.The TVL represents the total amount of all funds locked into a DeFi platform’s smart contracts. The higher a TVL, the healthier a platform’s ecosystem, as more users are taking advantage of its offerings. Alternatively, a project’s market capitalization constitutes the value of existing assets within its ecosystem, serving as an indicator of the project’s growth potential. This number constitutes not just those utilizing the platform’s tokens, but also those holding assets in a passive way.One can consider market capitalization to be the indicator of the popularity of a project, while TVL can mark how much money is actually being moved around within its various protocols. Both statistics are important, but it’s important to understand what each means relevant to a project’s competition. DeFi Pulse details the TVL of all sorts of DeFi projects, while CoinMarketCap lists the market capitalization of nearly any chain on the market.LongevityFinally, take a look at how long the project has been on the market. If it has been available for years, what has the project accomplished? Has it stuck to its roadmap and been reliable, or suffered from consistent delays and failing to deliver? A project’s reliability can be a great indicator of its longevity. Alternatively, if a project is new to the market, consider observing it for a few months and seeing how things play out. If development appears smooth and the group is making a fair amount of progress and announcements, it might mark a more reliable long-term investment.

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