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Cryptocurrency Knowledge

Top Trends in Cryptocurrency to Follow in Late 2020

The trends in cryptocurrency are changing. It’s almost a year-end and we are come up with the latest crypto trends that are going to affect businesses soon.

People have been embracing digital currencies since the launch of Bitcoin. As they become more familiar with the crypto world, the crypto industry is also blooming up.

Every month this industry comes with more opportunities for businesses. 

Let’s get on this quickly to check out what’s new?

Expanding Crypto Payments:

As more and more people began to accept crypto, which resulted in the impact of cryptocurrency on large/small businesses.

The Investments in cryptography have soared. Now that more people are using cryptocurrencies than ever before, customers will continue to expect from more companies to accept them.

This is a trend that is now at its peak to grow, such as the big billion company Facebook is also moving into crypto spaces.

It is very vital for every business in late 2020 and beyond to stay updated in the crypto world. 

By accepting crypto payments they can take their businesses to the next level. With the growing demand of crypto users, companies will have to give another payment option for their users.

Merchants can start accepting crypto payments with the Coinremitter: crypto payment gateway, that will help the business to grow, stand out from the competition, and bring more potential users from around the globe.

Global Market Improvements:

This is considered to be one of the MOST important cryptocurrency developments in its rising adoption by the government.

For example, China has already started to work on its first digital currency. As the digital Yuan sees broader use, foreign corporations may have to adapt to the use of cryptocurrencies.

The most renowned food companies like Subway and Mcdonald’s are participating in the trial of this currency.

This national support for crypto gives the cryptocurrency incredible credibility and publicity. As a consequence, digital currencies could soon become the standard for international trade.

Cryptocurrency support would have to be embraced by businesses who want to protect their international future.

Latest Rules From the Government:

This is another major one from the recent trends in Cryptocurrency.

With the rise of cryptocurrencies, authorities have imposed NEW tax rules on cryptocurrencies and their valuation. Crypto-asset firms will have to react to these latest legislative trends.

Indeed, the SEC classifies crypto tokens as securities, but some state legislation is modifying them.

Companies may take advantage of these shifting regulations and implement crypto without significant tax disruptions. These regulations could also make crypto investment a safer choice for more companies.

Most businesses were hesitant to invest in the concerns about uncertain regulations. 

Businesses may feel more comfortable adopting crypto now that governments are taking a firmer position on the matter.

Banking with Blockchain:

As crypto has accumulated more strength, similar innovations have emerged more commonly in banking.

In order to validate transactions and handle financial data, more banks are using blockchain technology these days.

Businesses out there may encounter technology more often because of the higher popularity of blockchain banking.

Moreover, banks are explaining the benefits of blockchain to the public, so the public can embark to demand in other fields.

It could mean more security and upward mobility for crypto firms, with big players investing in crypto.

Some Vital Trends in Cryptocurrency

Consider these trends which are going to elevate businesses, as well as help grow the crypto market.

DeFi:

Defi (decentralized finance) has become one of the most popular trends in the crypto world since last year.

The companies already in the field of blockchain have launched their DeFi products.

Investors who are looking for deep liquidity, varying risk-reward ratios, and exciting, affordable advanced financial tools have a whole new world of crypto opportunities.

Because of these popular protocols like Compound, Balancer, Curve, and other platforms have opened the door for them.

The role of Ethereum in the evolution of decentralized finance is once again shifting the paradigm of the blockchain.

This could affect not only the interest levels of both retail and institutional investors; technical considerations could also be affected.

In particular, as the ecosystem migrates to Ethereum 2.0 the underlying technology is undergoing a deep transformation.

Stablecoins:

It is commonly believed that rates on fiat-based stablecoin are never relevant to the underlying currency (like the dollar).

This is just a misconception, they are linked to a fixed unit, but their market prices fluctuate around that level.

This is where the arbitrage opportunities come into play. In which investors can buy at a low cost and sell at a high price. Eventually, they earn an adequate amount of revenue.

Derivatives:

After the advent of derivatives, It has become one of the key occupations of many market seekers.

The demand for derivatives has seen the evolution from equity to commodities to currency to futures of interest rates.

Derivatives derive their meaning from the underlying value. Yet, there are times when derivatives position perception would suggest a possible trend in the underlying.

Conclusion:

These are some of the popular trends in cryptocurrency in late 2020 that businesses should consider.

Let us know which trend did you find the most prominent and will be helping the businesses in the future.

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Knowledge

Bitcoin vs Ethereum: What is the Exact Difference in 2020

Today we are going to discuss Bitcoin vs Ethereum (huge currencies in the market), like what are the similarities, the differences, etc.

There are thousands of cryptocurrencies in the market and new ones are coming day by day, yet these two currencies still stand on TOP.

However, if we talk about the blockchain of Ethereum then it is totally different from bitcoin’s blockchain.

Bitcoin was exclusively developed as a digital currency while the Ethereum blockchain is a more general blockchain technology implementation.

Both coins allow anonymous transactions and there is no government involvement in managing or controlling the currency. 

What is Bitcoin?

Bitcoin (BTC) is a decentralized cryptocurrency that allows people to send and receive money around the world. It is the main cryptographic capital ever to exist. Read everything about Bitcoin here.

What is Ethereum?

Ethereum is an open platform for blockchain, allowing everyone to create and use decentralized apps running on blockchain technology.

It is an open-source project created by many people around the globe. It is the same as a Bitcoin no one owns or handles the Ethereum.

However, Ethereum is totally different from the Bitcoin protocol, Ethereum was designed to be flexible and scalable.

Moreover, Ethereum allows users to build their own operations of whatever complexity they choose, rather than giving users a collection of predefined operations (for example, Bitcoin transactions). 

Ethereum allows smart contracts and decentralized applications (dApps) to be deployed and run without any third party downtime, fraud, control, or intervention.

Ethereum’s potential applications are wide and driven by its native cryptographic token, ETHER.

Ether is like the fuel on the Ethereum platform for running commands and is used by developers to create and run applications on the platform.

Ether is primarily used for two purposes. First, it is used as a digital currency exchange in the same way as other cryptocurrencies and second, it is used to operate applications on the Ethereum network.

Now let’s dig in straight to the Bitcoin vs Ethereum.

Bitcoin vs Ethereum: Comparison

Bitcoin and Ethereum both have been gaining great hype these days.

Moreover, Bitcoin has become a globally famous and well-known cryptocurrency. it still has the largest market value compared to all of the cryptocurrencies available right now.

Conversely, Ethereum did not have a groundbreaking influence like Bitcoin, but its developer learned from Bitcoin and created more features based on Bitcoin principles.

Ethereum is actually the second-most-value cryptocurrency on the market.

Let’s understand the difference by considering the various aspects.

Purpose:

Bitcoin is a digital currency or also it can be considered as an alternate currency. Whereas, Ethereum enables peer-to-peer contracts and applications via its own currency vehicle.

That’s why Bitcoin has emerged as a digital currency which is more secure, while Ethereum is more about smart contract apps.

By serving as a building platform for DApps/smart contracts, Ethereum also differs, allowing it to submit tokens that represent values.

Other than digital currencies, these values can be stuff, making it distinct from Bitcoin.

Price predictions:

As per the investing purpose, let’s first talk about the price prediction of both ETC & BTC. 

BTC closely follows the pattern of the previous two halves, as per the stock-to-flow price model. 

The model indicates that, over this four-year halving period, BTC could hit $288,000.

Likewise, data research firm Econometrics recently released a $41,000 price target for BTC by the end of 2020.


All in all, both cryptocurrencies may be interesting opportunities for investment and have a position in an investment portfolio.

Mining:

In Bitcoin, with the method known as work proof, miners can verify transactions. The same process goes with the Ethereum.

However, Ethereum is going to switch to proof of stake. Now, what is proof of stake, well with proof of stake, a person can mine or validate the transaction in a block based on how many coins he owns. 

In the case of Bitcoin, each time a miner adds a block to the blockchain, he will be rewarded with 12.5 Bitcoins. The next time the payout will be cut in half in 2020.

For Ethereum, any time a block is added to the blockchain, a miner or validator obtains a value of 3 ether in Ethereum, and the reward will never be halved.

Fees:

Starting with Bitcoin, for each and every transaction, miners charge certain transaction fees.

If you want to process your transactions more efficiently, you can apply larger fees to your transaction which can then attract miners.

On the other hand, Ethereum does not use transaction fees, but it has a gas system. Gas is a device that calculates the amount of machine effort needed to conduct such operations.

Solidity is used to code all the smart contracts that run in the EVM. A certain amount of gas is required for each line of code in solidity to be computed.

Block Size:

One of the most asked question is the “block size”. 

In comparing Bitcoin versus Ethereum, the block size is significant. It plays a key role in the determination of a blockchain’s transaction costs, confirmation times, and scalability.

Currently, blocks are 1 MB on the Bitcoin network. Disagreements about the size of the block finally led to Bitcoin Cash produced as Bitcoin’s fork.

Whereas talking about Ethereum, the size of the block measured in gas, with each block limited to 12.5 million gases.

As recently as June 2020, the gas limit was raised from 10 million to relieve the burden on the network, improve processing capacity, and minimize the fees.

Daily Transactions:

Bitcoin has been handling more than 25k+ transactions per day. The last record on 29 Sept 2020 was 297814. 

As cryptocurrency interest grew and cryptocurrency market caps hit peaks during the crypto boom of 2017-early 2018, regular transactions on December 14, 2017, also grew to a total of 490644 transactions.

On the contrary, the daily amount of transactions done on the Ethereum network is represented by Ethereum Transactions Per Day.

Ethereum Transactions Per Day is at a current level of 1.088M on 29 Sept 2020. It was the highest recorded at 1.35 million transactions on January 4, 2018.

Time:

As for the average amount of time, it takes 10 minutes for Bitcoin to add a block to the blockchain and It just takes about 12 to 15 seconds for Ethereum.

Check out our guide on which cryptocurrency offers the fastest transaction speed.

Hash Algorithms:

Hashing algorithms mean how these systems can protect their privacy and ensure safety. 

Bitcoin uses an SHA-256 hashing algorithm, whereas Ethereum uses a cryptographic algorithm called Ethash.

Technology:

In terms of technology, Ethereum takes the prize. Here are the reasons why Ethereum is better at technology than Bitcoin. 

  • In 2015, the Ethereum blockchain was released. In contrast to the Bitcoin blockchain (released in 2009), it is 6 years younger and further established.
  • Ethereum brought smart contracts. Moreover, you can use smart contracts for a lot many things compared to Bitcoin uses.
  • A more advanced edition of Bitcoin’s blockchain is Ethereum’s blockchain. It solves some of its problems and adds new functionality, such as smart contracts.
  • Ethereum’s transactions cost much less, yet they are faster too.
  • Last but the least, The transaction fees of Ethereum are far lower than the transaction fees of Bitcoin.

Bitcoin vs Ethereum: which currency is better

Though, both currencies Bitcoin and Ethereum have their own advantages. 

Bitcoin has a smaller supply of coins and is more liquid than Ethereum, but Ethereum has stronger technology than Bitcoin and offers more benefits.

Moreover, if we talk about the peer-to-peer transaction system, then Bitcoin works better. And Ethereum works well when you need to develop and build distributed applications and smart contracts.

Now the decision is on your own!

Conclusion:

Both Bitcoin and Ethereum are highly important and useful

Even if you are not a serious investor/merchant in cryptography, by buying BTC or ETH tokens, you will not go wrong. 

They both add enormous value to the world of crypto.

Ethereum has unlimited use cases, whereas Bitcoin just solves problems with transfers and banking.

No doubt, Bitcoin has a better value and position in the market, but Ethereum has improved technology and greater ability.

If you want either of these currencies to use on your website as a payment option you can consider the reliable payment gateway “Coinremitter”. Which can seamlessly handle all your transactions.

SO, what are your thoughts on Bitcoin vs Ethereum? Have you figured out which currency works best for you?

Share your thoughts in the comments, we would love to hear.

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Knowledge

Understanding DeFi And It’s Way Of Work

The new technology called DeFi (Decentralized Finance) has been taking its place in between the market of cryptocurrencies and blockchain-based decentralized firms.

This particular object refers to smart contracts, digital assets, and decentralized applications on the Ethereum.

To understand DeFi in simpler terms, it is a financial software built on a Blockchain. In the year 2019 DeFi has quickly become the topic of conversation as the big thing coming out from the Ethereum network.

Since the digital era has started subsequently, everything has now gone digital. From product purchase meant to demand service.

Many technologies are exponentially changing the way of living then how could currencies be excluded from it?

However, To understand DeFi we must go through from the beginning of it, and understand the way of its work.

What Is DeFi? 

As stated above, it is a financial tool built on the blockchain on the network of Ethereum. One of the main things for DeFi is to make financial service open for everyone.

Moreover, it makes to short the people’s trust, central agencies. These following things like cryptography and specifically blockchain are building trust between the individuals. Where they can safely store their private data, transactions, or amount in the digital wallet without any involvement of Centralized firms.

On the network of blockchain, You can verify data by becoming an individual entity or any transaction which supposedly occurs on the blockchain.

In contrast, this is an open service to anyone. In the term of DeFi applications, they are called Dapps (Decentralized Apps).

They are likely a Peer 2 Peer financial framework and their work is to lure to trade and hold financial assets with the least involvement of third parties. They are structured on the fundamental design of a Blockchain.

All the DeFi applications are mainly built on Ethereum Blockchain Network.

Smart Contracts:

On the Ethereum network, the system can maintain a digital value of ledger. The users or developers can run applications on the Ethereum blockchain simultaneously to create or maintain digital coins, or assets.

This however is called smart contracts. These smart contracts are waged by the Ethereum blockchain network.

One of the notable things is that these contracts are invariant and can be created without the involvement of third parties.

DeFi has the ability to make the financial service even simpler and fetch the transparency in the financial service.

As this is an open-source material, therefore, anyone can make their own smart contract and can use some of the information from the existing smart contracts with this functionality user/developer can compare both contracts and choose the appropriate service for them to use.

What Are The Benefits Of DeFi?

By eliminating the involvement of the third person it does provide the low cost & less transaction time.

Although, it gives freedom to those who don’t have permission to access financial services. The following benefits are:

  • Like centralized governance, you don’t have to take the form of capital in Decentralized finance.

  • More in that, it can allow you to put your money on individual work and maintain a stable value for your money.

  • You’ll conjointly have full control of your finance. In general, Dapps let you deposit your digital cryptocurrency without letting anyone stand in front of you.

  • Not only normal users but also owners who are creating financial products are seamlessly accepting DeFi service in order to create a futuristic financial service.

  • Since the decentralized currencies have introduced to the world moreover, they have no obstacles to in between the border. Just like this DeFi has been working on the same concept conversely, with better ways.

Last Words

In conclusion, there are so many new things that have yet to come out in the DeFi service.

All we can do is to wait until the service gets even better and sophisticated for individuals.

Understanding DeFi can be convoluted sometimes but one thing to keep in mind is that it allows you to enter into a finance world with having the least knowledge about it.

Regardless, seeing the future of DeFi, it looks bright, and showing the popularity of Blockchain is clearly inevitable for the future of financial service.

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Cryptocurrency Knowledge

How Ethereum Helps Financial System to be Decentralized

In recent times, Ethereum has become the most widely known platform based on blockchain technology. Furthermore, its aim is to create an alternative protocol that will create decentralized applications. Ethereum makes highly programmable digital money, allowing distributed users to execute code in the form of smart contracts.

In addition to speculation and value storage, Ethereum allows many aspects of traditional finance to run on open networks, with on- and off-ramps allowing for greater compatibility with fiat currencies, other cryptocurrencies, and conventional resources.

To understand it briefly…

You must have an idea of DeFi (Decentralized finance). Moreover, it is a combination of traditional banking services with decentralized technologies like blockchain.

Many of us now have a well understanding of ethereum, bitcoin, and other cryptocurrencies. However, there are very limited people out there who do not know that it can also be helpful to use it as a decentralized system.

Decentralized finance Ethereum is one of the identities that assisted to make the essence of mainstream open finance.

Ethereum can also be used as a portal for payment, simply implementing the ether payment gateway helps to expand the business and attract potential customers.

What’s the Importance of DeFi?

DeFi continues to play an important role in financial sector development for a variety of reasons. Moreover, the potential for expanding the global economy is huge. 

As a result, analysts see this sector as one of the crypto space’s most important currently under development.

It is easy to recognize that commitment to developing a DeFi ecosystem. Certainly, it is the fastest-growing blockchain sector.

Moreover, since this period depicts the start of this stage of integration, the market now has the unique opportunity to see a completely new industry blossom.

Know the Difference Between Traditional vs Decentralized Finance

Decentralized Finance (DeFi) is just an advanced version of the finance system with the same root of work in obtaining and giving capital.

Here, we’ve outlined some of the major differences:

  1. A centralized governing body manages conventional financial institutions. Moreover, DeFi apps, run on smart contracts, ensuring that dApps operate without any human barrier.
  1. A public blockchain is permitless, that means the ecosystem doesn’t have gatekeepers to keep track of who gets to create dApps and who doesn’t. However, DeFi dApps can be developed and used by anyone.
  1. The dApps is another form of blockchain application used in the DeFi environment, and it has been built from day one to function globally. Regardless of the geographical area to which you belong, the DeFi network and service connectivity are the same.
  1. The app is based on a public blockchain and its code is transparent and open for everyone to see. Moreover, this is in sharp contrast to mainstream financial institutions. Though, in a DeFi ecosystem, everyone can help make the software bug-free & smooth.
  1. The fact that decentralized funding is more open and transparent than conventional finance, is still a factor. Moreover, the lack of entry barriers means anyone with programming skills can participate in building financial services and tools alongside public blockchains.

What Decentralized Applications Offer?

Ethereum dApps communicate with the blockchain to create entirely new ways of quality exchange and collaboration on the network.

Moreover, DeFi users can borrow, lend, exchange, invest, and make payments nowadays without the need to serve as an intermediary for a financial institution. Instead, it replaces the position of financial institutions with decentralized smart contract protocols.

So, let’s understand what are the services that DeFi offers.

Lending:

Crypto holders can lend on decentralized lending platforms to earn additional income via interest charges paid by borrowers on their holdings.

However, this is an enticing option for lenders, as they are able to earn relatively low-risk interest on their current holdings without entrusting their private keys to a centralized third party service.

Here are the dApps that provide the lending facilities.

Investing:

Investment tokens are in accordance with SEC regulations on financial securities. While this module won’t dive into regulation and compliance, the simple thing to understand is that these tokens provide the token holder with an array of financial rights.

Payments:

DeFi payment applications, protocols, and solutions concentrate on developing an open financial ecosystem that addresses institutional requirements as well as underbanked and unbanked populations.

Insurance:

Insurance is a procedure or agreement whereby a company offers compensation assurance for a defined loss, damage, illness, or death in return for a premium payment.

Prediction Markets:

Prediction markets make it easier to exchange event securities. They have been around since the 1990s and are also sometimes referred to as markets for knowledge, futures ideas, and markets for decision making.

Synthetics:

A synthetic is a financial asset that imitates other tools. In other words, any financial instrument’s risk-reward profile can be simulated using a mixture of other financial instruments.

DeFi Dashboards:

It is a Dashboard that assists you to analyze and track all of your Decentralized Finance activity. Furthermore, add an Ethereum address to track! It lets you track your activity across the various dApps that you are using.

Tokenized Securities:

Security tokens are virtual assets that are subject to federal security rules. Moreover, in layman terms, to simply, the intersection between digital assets (tokens) and conventional financial products.

The Bottom Line:

To sum up, this blog comprises every information regarding the role of Ethereum that helps the financial system to be Decentralized. Moreover, DeFi differs from the traditional finance system by providing value, security, and much more. 

At Coinremitter, merchants and every business owner can give the facility to its users by implementing the Ether payment gateway on the website. It helps users to make payments through cryptocurrencies as well as, business owners can get potential consumers from worldwide.

NOTE: 

Coinremitter doesn’t endorse anything. However, it only provides information for the user to better understand the fundamentals of DeFi and dApps.

Investors are advised to check and verify all information on their own.