Month: March 2022

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What is Web 3.0? Metaverse?

What is Web 3.0 or the Metaverse? Sure, you’ve probably already heard that Facebook changed it’s name to “Meta”, but what does that really mean?

In order to understand this concept, let’s take a quick look at the history of the internet or the world wide web! The nascent days of the internet were basically from the early 90’s until the early 2000’s, as we watched the start of email (my first email account was dan@aol.com !!) and the creation of the first web sites. These sites were basicly static pages which contained information, but not yet e-commerce capabilities. This is referred to now as Web 1.0.

As the internet developed, along with bandwidth access speeds, applications, and services, we watched the evolution and migration towards Web 2.0. In fact, we are still in the Web 2.0 stage today! This included a new world of user-created content (social media) and blogs, as well as the idea of the Web as a platform.

While some industry titans like Elon Musk believe Web 3.0 is simply a buzzword, most of the crypto/defi/blockchain world is ready to prove him wrong! So What is Web 3.0? It is the next iteration of the world wide web which utilizes the underlying technology of the blockchain to provide users with a truly decentralized access to technology vs the centralized (stored and controlled) system in Web 2.0.

To take an excerpt from a recent Forbes article…”Web 3.0’s decentralized blockchain protocol will enable individuals to connect to an internet where they can own and be properly compensated for their time and data, eclipsing an exploitative and unjust web, where giant, centralized repositories are the only ones that own and profit from it.”

How does this definition compare to the Metaverse? Well, the metaverse is an extension of Web 3.0 creating a virtual world, or worlds, where the users can participate in the virtual world through the use of virtual and augmented reality headsets. While most of you think this means gaming or shopping, it’s so much more.

Let’s look at what happened during the Covid pandemic. Many people in the world learned that they could continue productive employment from the comforts of home. Zoom became an verb just like the word Google where daily lives transformed from the office to the couch, kitchen table, or backyard! Now imagine several years in the future where instead of commuting for an hour to the office, you simply slip on your headset, fire up your computer, and walk into the office (virtually!) to participate in your first meeting of the day with your other colleagues whom are already in the room! You take turns providing updates on recent product changes and sales, and then the Manager shows a five minute presentation about upcoming new product launches and sales objectives. Anything you can imagine in the course of your daily life can be transformed to the Metaverse world of the Web 3.0!

Does that apply to manufacturing, the service industry (restaurants and bars, etc.)? Of course not! But is has been estimated that the inclusion of Artificial Intelligence (AI) into the development of Web 3.0 will have a dramatic increase in the efficiency of Web 3.0 rollout compared to Web 2.0 (we are about 20 years into Web 2.0). So, if Moore’s Law** is accurate ((**Moore’s Law states (in layman’s terms) that the computing power of chips and processors will increase very couple of years, and we will pay less for them)) is it reasonable to expect a functional transition to Web 3.0 in 10 years?

Bringing artificial intelligence and natural language processing together with Web 3.0, businesses of all sizes across the globe can use this powerful combination to give their customers faster and more relevant results. Stay tuned if you want to learn more about AI!

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What is Cardano?

Cardano is a Proof-of-Stake Blockchain platform

Cardano (ADA) is a third-generation, decentralized proof-of-stake (PoS) blockchain platform designed to be a more efficient alternative to proof-of-work (PoW) networks. Scalability, interoperability, and sustainability on PoW networks like Ethereum are limited by the infrastructure burden of growing costs, energy use, and slow transaction times.

Yes, Cardano is a form of cryptocurrency. It can be purchased on most crypto exchanges. When evaluating the use of crytpo and the underlying technology, I like to first understand What does it do, and What is it used for? Like most crypto, ADA can be used to true peer-to-peer transactions where there is no use of a middleman (a credit card, a bank card, etc. all act as a middleman, and collect a fee for the service they provide).

Cardano is an ambitious project, and there are many potential uses for its technology across a variety of industries.

For a current, real-world example, we have Cardano’s partnership with the Ethiopian Ministry of Education. Cardano’s blockchain will store tamper-proof records for five million Ethiopian students. When those students pursue higher education and jobs, they’ll have their records and achievements available on the blockchain.

Here are other use cases for Cardano in different sectors:

  • Health care: Cardano’s blockchain can authenticate pharmaceutical products to avoid the risk of buying counterfeit medications.
  • Finance: Cardano can be used in developing countries as a record of people’s identities and to demonstrate their creditworthiness.
  • Agriculture: Blockchain technology can provide reliable supply chain tracking for farmers, hauliers, and merchants.

Charles Hoskinson, the co-founder of the proof-of-work (PoW) blockchain Ethereum, understood the implications of these challenges to blockchain networks, and began developing Cardano and its primary cryptocurrency, ada, in 2015, launching the platform and the ada token in 2017

The Cardano platform runs on the Ouroboros consensus protocol. Ouroboros, created by Cardano in its foundation phase, is the first PoS protocol that not only was proved to be secure, but also was the first to be informed by scholarly academic research. Each development phase, or era, in the Cardano roadmap is anchored by the research-based framework, incorporating peer-reviewed insights with evidence-based methods to make progress toward and achieve the milestones related to the future directions of the use applications of both the blockchain network and the ada token.

As of the writing of this, 73% of the Cardano token supply is staked* (see my prior post on staking). The total circulating supply of ADA is only 33.26 billion coins, meaning that only less than 10 billion are not staked.

Ouroboros is the first peer-reviewed, verifiably secure blockchain protocol, and Cardano is the first blockchain to implement it. Ouroboros enables the Cardano network’s decentralization, and allows it to sustainably scale to global requirements without, crucially, compromising security.

The protocol is the culmination of tireless effort, building on foundational research, and is propelled by a vision for more secure and transparent global payment systems, and a means to redistribute, more fairly, power and control.

Remember, Cardano is a software platform ONLY and does not conduct any independent diligence on, or substantive review of, any blockchain asset, digital currency, cryptocurrency or associated funds. You are fully and solely responsible for evaluating your investments, for determining whether you will exchange blockchain assets based on your own judgement, and for all your decisions as to whether to exchange blockchain assets with Cardano. In many cases, blockchain assets you exchange on the basis of your research may not increase in value, and may decrease in value. Similarly, blockchain assets you exchange on the basis of your research may fall or rise in value after your exchange.

Past performance is not indicative of future results. Any investment in blockchain assets involves the risk of loss of part or all of your investment. The value of the blockchain assets you exchange is subject to market and other investment risks

If you would like to read more about Cardano, click this link.

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What is Crypto Staking?

What is staking? Image Credit Motley Fools

If you’re a crypto investor, or just starting out in crypto, staking is a concept you’ll hear about often. Staking is the way many cryptocurrencies verify their transactions, and it also allows participants to earn rewards on their holdings.

But what is crypto staking? Staking cryptocurrencies is a process that involves committing your crypto assets to support a blockchain network and confirm transactions.

It’s available with cryptocurrencies that use the proof-of-stake model to process payments. This is a more energy-efficient alternative to the original proof-of-work model. Proof of work requires mining devices that use computing power to solve mathematical equations.

Staking can be a great way to use your crypto to generate passive income, especially because some cryptocurrencies offer high interest rates for staking. Before you get started, it’s important to fully understand how crypto staking works.

With cryptocurrencies that use the proof-of-stake model, staking is how new transactions are added to the blockchain.

First, participants pledge their coins to the cryptocurrency protocol. From those participants, the protocol chooses validators to confirm blocks of transactions. The more coins you pledge, the more likely you are to be chosen as a validator.

Every time a block is added to the blockchain, new cryptocurrency coins are minted and distributed as staking rewards to that block’s validator. In most cases, the rewards are the same type of cryptocurrency that participants are staking. However, some blockchains use a different type of cryptocurrency for rewards.

If you want to stake crypto, you need to own a cryptocurrency that uses the proof-of-stake model. Then you can choose the amount you want to stake. You can do this through many popular cryptocurrency exchanges.

Your coins are still in your possession when you stake them. You’re essentially putting those staked coins to work, and you’re free to unstake them later if you want to trade them. The unstaking process may not be immediate; with some cryptocurrencies, you’re required to stake coins for a minimum amount of time.

Staking isn’t an option with all types of cryptocurrency. It’s only available with cryptocurrencies that use the proof-of-stake model.

Many cryptos use the proof-of-work model to add blocks to their blockchains. The problem with proof of work is that it requires considerable computing power. That has led to significant energy usage from cryptocurrencies that use proof of work. Bitcoin in particular has been criticized over environmental concerns.

Proof of stake, on the other hand, doesn’t require nearly as much energy. This also makes it a more scalable option that can handle greater numbers of transactions.

How to Stake

As previously noted, not all cryptocurrencies offer staking. You need a cryptocurrency that validates transactions with proof of stake. Here are a few of the major cryptocurrencies you can stake and a little bit about each one:

  • Ethereum was the first cryptocurrency with a programmable blockchain that developers can use to create apps. Ethereum started out using proof of work, but it’s transitioning to a proof-of-stake model.
  • Cardano is an eco-friendly cryptocurrency. It was founded on peer-reviewed research and developed through evidence-based methods.
  • Polkadot is a protocol that allows different blockchains to connect and work with one another.

Start by learning more about any proof-of-stake cryptos that catch your eye, including how they work, their staking rewards, and the staking process with each one. Next, you can look for the crypto you want and buy it on cryptocurrency apps and exchanges. More on that topic will be coming soon!

Where to Stake?

Many of the cryptocurrency websites support staking directly through their site. You can also conduct research online, and find the most reputable sites and staking opportunities with the least amount of risk compared to the reward you are seeking. One example is a site called Looks Rare. Looks Rare is an NFT trading platform that, as of the time of this article, provides over 200% interest paid in WETH (Wrapped Ethereum) and their own tokens called LOOKS. (This is NOT an endorsement of Looks Rare*)