dingoininc - Tumblr blog

[dingoininc]

𝐖𝐡𝐚𝐭 𝐢𝐬 𝐁𝐥𝐨𝐜𝐤𝐜𝐡𝐚𝐢𝐧?

Blockchain is a public ledger for recording and tracking crypto assets such as cryptocurrencies.

It stores data and information electronically in digital format. As a database, it's shared across nodes of a computer network.

The public ledger is immutable meaning recorded data, and information is difficult and impossible to change or hack.

Each node on the network contains a block of the database that records transactions. So, every time a new transaction occurs on the blockchain, a record of that transaction is usually added to the distributed ledger.

[dingoininc]

𝐇𝐨𝐰 𝐃𝐨 𝐂𝐫𝐲𝐩𝐭𝐨𝐜𝐮𝐫𝐫𝐞𝐧𝐜𝐢𝐞𝐬 𝐃𝐫𝐢𝐯𝐞 𝐓𝐡𝐞𝐢𝐫 𝐕𝐚𝐥𝐮𝐞𝐬?

of fiat currencies in existence. This number will keep growing largely because there is an increasing demand for cryptos, and it's easy to develop a new token.

The way a crypto coin is developed and for what purpose has a massive influence on its value.

While there are thousands of cryptos in existence, the top 20 cryptos constitute around 99% of the crypto market by volume.

[dingoininc]

𝐖𝐡𝐚𝐭 𝐀𝐫𝐞 𝐂𝐫𝐲𝐩𝐭𝐨 𝐀𝐬𝐬𝐞𝐭𝐬?

As a blanket term, crypto assets aren't limited to cryptocurrencies.

This tokenized asset issued in a public ledger does not derive its value from the blockchain.

Also, its application is not centralized to payments or as a medium of exchange.

As we all know, an asset functions as a store of value, an investment, access to goods and services, and a means of exchange.

Crypto assets leverage cryptography, and peer-to-peer technology to function as a store of value.

[dingoininc]

𝐖𝐡𝐚𝐭 𝐀𝐫𝐞 𝐅𝐥𝐚𝐬𝐡 𝐋𝐨𝐚𝐧𝐬?

A flash loan is an unsecured or uncollateralized loan in decentralized finance. It was first introduced in 2018 by an open-source bank called Marble.

Flash loans arrived on the Ethereum network in January 2020 courtesy of Aave, a decentralized lending platform.

Based on the Ethereum network, flash loans use smart contracts. Since they run on the blockchain network, they do not allow funds to change hands unless the borrower meets certain rules.

In traditional lending, the lenders usually want collateral of some kind from the borrower. The collateral could be a car, property and others.

Once the borrower provides the collateral, the lender takes a while to approve the contract. Once approved, the borrower receives the funds.

[dingoininc]

𝐔𝐬𝐞 𝐨𝐟 𝐁𝐥𝐨𝐜𝐤𝐜𝐡𝐚𝐢𝐧 𝐓𝐞𝐜𝐡𝐧𝐨𝐥𝐨𝐠𝐲 𝐢𝐧 𝐒𝐮𝐩𝐩𝐥𝐲 𝐂𝐡𝐚𝐢𝐧 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭

The global supply chain market will experience a CAGR of 11.2% from 2020 to 2027.

This means its value will increase from $15.85 billion in 2019 to $37.41 billion in 2027 thanks in part to blockchain and smart contracts.

Bitcoin is the earliest implementation of blockchain. Since its introduction, there has been widespread experimentation of the technology.

As the technology gains popularity, corporations are exploring more uses of blockchain to fulfill a range of needs.

[dingoininc]

𝐖𝐡𝐚𝐭 𝐀𝐫𝐞 𝐃𝐞𝐅𝐢 𝐓𝐨𝐤𝐞𝐧𝐬?

It's quite clear that DeFi tokens are gaining momentum.

The foremost reason for this is how DeFi tokens are transforming financial reasons.

In a few years, DeFi, DeFi tokens, blockchain, and cryptos will dominate the future of finance.

If you want to capitalize on DeFi tokens, start learning about them today!

[dingoininc]

𝐓𝐫𝐚𝐧𝐬𝐢𝐭𝐢𝐨𝐧 𝐢𝐧𝐭𝐨 𝐚 𝐅𝐮𝐥𝐥𝐲 𝐃𝐢𝐠𝐢𝐭𝐢𝐳𝐞𝐝 𝐄𝐜𝐨𝐧𝐨𝐦𝐲

In 2018, digitally transformed businesses accounted for $13.5 trillion of the global nominal GDP. Experts forecast that by 2023, they will account for $53.3 trillion.

This is more than half of the overall nominal GDP. What this signal is that digital supremacy is near.

However, emerging technologies such as Blockchain and DeFi are already disrupting economic models.

This includes the digital economy. Blockchain is an impressive technology that supports the decentralized tracking of cryptos.

While it allows for digital currencies to work, its functionality extends to other applications.

From insurance to crowdfunding, the technology has numerous applications outside cryptocurrencies. One of those applications is in the banking sector.

[dingoininc]

𝐂𝐚𝐧 𝐁𝐥𝐨𝐜𝐤𝐜𝐡𝐚𝐢𝐧 𝐏𝐫𝐨𝐭𝐞𝐜𝐭 𝐓𝐫𝐮𝐭𝐡 𝐢𝐧 𝐭𝐡𝐞 𝐀𝐠𝐞 𝐨𝐟 𝐌𝐢𝐬𝐢𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧?

Currently, the New York Times is exploring this approach through their News Provenance Project.

It uses Hyperledger Fabric’s blockchain to store metadata. This data includes when and where they shot a video or photo, how and when they edited and published it.

This provides readers with genuine and transparent information. Another way blockchain can verify if the news is real or fake is through Safe.press.

Launched in 2019, Safe.press acts as a badge of trust for online news. It helps online media to protect their brand against disinformation.

[dingoininc]

𝐖𝐡𝐚𝐭 𝐈𝐬 𝐚 𝐑𝐞𝐛𝐚𝐬𝐞/𝐄𝐥𝐚𝐬𝐭𝐢𝐜 𝐓𝐨𝐤𝐞𝐧?

A rebase token is a cryptocurrency whose supply is dynamically adjusted. Also known as elastic tokens, their supply is algorithmically adjusted to control their value or price.

Similar to stablecoins, these tokens are usually pegged to other assets. The supply of an elastic token can be highly volatile. However, its price will remain steady.

Traditionally, the code behind every crypto usually specifies the coin’s supply. This simply means that the cryptos can be minted or burned.

But you cannot adjust their supply to control their price. A good example of a rebase token is Ampleforth(AMPL).  

[dingoininc]

𝐈𝐦𝐩𝐚𝐜𝐭𝐬 𝐨𝐟 𝐂𝐫𝐲𝐩𝐭𝐨𝐜𝐮𝐫𝐫𝐞𝐧𝐜𝐲 𝐀𝐝𝐨𝐩𝐭𝐢𝐨𝐧 𝐛𝐲 𝐓𝐫𝐚𝐯𝐞𝐥 𝐂𝐨𝐦𝐩𝐚𝐧𝐢𝐞𝐬

The idea behind accepting cryptocurrencies was to capitalize on alternative methods of payment.

With the popularity of Bitcoin rising in 2014, customers requested Expedia to start accepting Bitcoin as a form of payment.

The company listened to its customers and went ahead to partner with Coinbase.

They then started accepting Bitcoin as payment for their hotel bookings.

However, in 2018, Expedia stopped accepting Bitcoin and other cryptocurrencies as payment.

Years later, Expedia partnered with Travala and began accepting cryptos as payment again.

Expedia is not the only company in the travel industry that accepts cryptocurrencies as payment for goods and services.

[dingoininc]

𝐂𝐚𝐧 𝐂𝐨𝐮𝐧𝐭𝐫𝐢𝐞𝐬 𝐔𝐬𝐞 𝐂𝐫𝐲𝐩𝐭𝐨𝐬 𝐭𝐨 𝐆𝐨 𝐀𝐫𝐨𝐮𝐧𝐝 𝐔𝐒𝐀 𝐒𝐚𝐧𝐜𝐭𝐢𝐨𝐧𝐬?

As Moscow faces a financial meltdown, economic experts speculate the country may turn to cryptos to work around the sanctions.

Roughly 80% of Russia’s foreign exchange and international trade are usually conducted in US dollars.

The US announced that it's limiting Russia’s use of its $630 billion in foreign reserves.

Experts speculate that Russia could find loopholes thanks to the decentralized nature of cryptos. By doing so, Russia could circumvent global sanctions pressed upon by the US and Europe.

[dingoininc]

𝐇𝐨𝐰 𝐃𝐨𝐞𝐬 𝐂𝐫𝐲𝐩𝐭𝐨 𝐅𝐚𝐜𝐢𝐥𝐢𝐭𝐚𝐭𝐞 𝐄𝐜𝐨𝐧𝐨𝐦𝐢𝐜 𝐋𝐢𝐛𝐞𝐫𝐚𝐭𝐢𝐨𝐧?

As you can see, blockchain and cryptocurrencies can facilitate economic liberation. 

As a matter of fact, it can help to build better functioning countries in the modern world. Today, so many countries do not have economic freedom. 

However, cryptos and blockchain are forces of good that can encourage countries and their people to imagine a free economy. 

[dingoininc]

𝐒𝐡𝐨𝐮𝐥𝐝 𝐈𝐑𝐒 𝐒𝐭𝐨𝐩 𝐓𝐚𝐱𝐢𝐧𝐠 𝐂𝐫𝐲𝐩𝐭𝐨 𝐓𝐫𝐚𝐝𝐞𝐫𝐬?

There is a huge tax gap, and the only way to close it is to tap new taxable sources. Over 99% of taxes due on wages are usually paid to the IRS. 

This is not enough to close the tax gap. In the US, there is nothing like a free lunch. This means, if you grow richer tomorrow than you were today, it means you evaded tax. 

The IRS has already issued clear instructions that cryptos are property for federal tax purposes. 

The crypto holdings of the American people are not treated as currency that can generate foreign currency gain or loss. 

So, if you buy, sell, send, receive or exchange cryptos, that’s a taxable event according to the IRS. 

Based on no reporting of income, the IRS rules provide for a failure to penalty for late penalty at 0.5% of the unpaid tax. 

Though it's capped at a maximum of 25% of unpaid taxes, it's still a high figure.

[dingoininc]

𝐖𝐡𝐚𝐭 𝐢𝐬 𝐂𝐫𝐲𝐩𝐭𝐨 𝐘𝐢𝐞𝐥𝐝 𝐅𝐚𝐫𝐦𝐢𝐧𝐠?

Yield farming is a process where cryptocurrency holders earn rewards on their holdings.

As one of the hottest trends in DeFi, yield farming allows cryptocurrency holders to stake their cryptos and earn interest. 

Basically, the practice is similar to earning interest on fiat currency in your savings account. In traditional banking, when banks loan you money, you repay with interest.

In this case, the banks are the “crypto holders.” With yield farming, the concept is similar. 

Instead of your cryptos sitting in your digital wallet, DeFi providers lend it out and from the interest paid, you generate returns. 

[dingoininc]

𝐖𝐡𝐚𝐭 𝐢𝐬 𝐌𝐞𝐭𝐚𝐯𝐞𝐫𝐬𝐞?

The metaverse is not a blockchain, but the technology (blockchain) will play a crucial role in the virtual environment. 

According to many predictions, Non-fungible tokens or NFTs will have an important role in the metaverse. 

Put simply, users will use NFTs to access different places of the metaverse. Metaverse crypto items such as digital real estate represent different types of metaverse tokens.

Their ownership is usually recorded on the blockchain. As such, users can exchange them for other cryptocurrencies such as Bitcoin. 

Meta has already launched early versions of its metaverse. However, it's unclear if the company will incorporate blockchain and cryptos in its metaverse. 

[dingoininc]

𝐖𝐡𝐲 𝐁𝐢𝐭𝐜𝐨𝐢𝐧 𝐖𝐢𝐥𝐥 𝐁𝐞 𝐭𝐡𝐞 𝐍𝐞𝐱𝐭 𝐆𝐨𝐥𝐝?

Traditionally, investors hold a portion of their portfolio in gold.

 This provides a hedge against losses from stock market volatility which occurs due to the downward economic trend.

For years, this has proven effective, but things are changing.  

Financial experts, investors and crypto enthusiasts are witnessing the meteoric rise of a new “gold.” 

The digital gold, which scaled all-time highs and broke several records is one of the most popular cryptocurrencies to date. 

We are talking about Bitcoin, the cryptocurrency that has everyone talking. So, is Bitcoin the next gold? 

[dingoininc]

𝐇𝐨𝐰 𝐈𝐧𝐭𝐫𝐨𝐝𝐮𝐜𝐭𝐢𝐨𝐧 𝐨𝐟 𝐚 𝐂𝐫𝐲𝐩𝐭𝐨𝐜𝐮𝐫𝐫𝐞𝐧𝐜𝐲 𝐂𝐚𝐧 𝐑𝐞𝐯𝐨𝐥𝐮𝐭𝐢𝐨𝐧𝐢𝐳𝐞 𝐭𝐡𝐞 𝐆𝐥𝐨𝐛𝐚𝐥 𝐒𝐡𝐢𝐩𝐩𝐢𝐧𝐠 𝐚𝐧𝐝 𝐓𝐫𝐚𝐧𝐬𝐩𝐨𝐫𝐭𝐚𝐭𝐢𝐨𝐧 𝐈𝐧𝐝𝐮𝐬𝐭𝐫𝐲?

Blockchain technology has the capability of optimizing shipping schedules, and others in real-time. 

This is because the technology enables the tokenization of documents, letters of credit, and much more. Just think about it. With blockchain, buyers can place funds in escrow that are visible to the seller. 

Immediately the seller delivers goods to the buyer, the funds get released to the seller. Normally, this process takes 7 to 10 days. But with blockchain, it would be less than 3 hours.

This shows that blockchain and smart contracts reduce costs in maritime trade by a factor of 10.