Tag: Florida Dan

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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*)

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Crypto ABC’s Part IV

Credit and thanks to Nick Black!

Market cap: The total value of all the coins of a particular crypto. Calculated by multiplying the current price per coin by the total number of coins in circulation. Typically used to rank cryptos, such as on the website CoinMarketCap.com. As of this writing, the total market cap for the entire crypto space is $1,958,973,106,141.

Maximalist: A person who believes in the primacy of one cryptocurrency over all others. Most frequently applied to adamant Bitcoin advocates: “He’s such a Bitcoin maximalist.”

MetaMask: A browser-based crypto wallet that is installed as an extension. Allows you to send Ethereum to individuals and businesses, store Ethereum and ERC-20 tokens, and store non-fungible tokens (NFTs) and collectibles.

Metaverse: A virtual world where people gather to live, work, and shop. First coined in the 1992 science fiction novel Snow Crash by author Neal Stephenson, the metaverse has gone from a means of “escaping” the real world to a lucrative market that Goldman Sachs and Morgan Stanley are projecting could reach $8 trillion over the next two decades. By using special hardware and software – such as a smartphone or a dedicated headset like the Oculus – users can have an immersive experience where it actually feels like you’re inside the virtual environment. Corporations are already staking their claim in the metaverse.

Microcurrencies: Microcurrencies refer to a new class of “penny cryptos.” These coins sell for pennies on the dollar but have racked up some of the biggest gains we’ve seen anywhere, even crushing gains made by Bitcoin by 75X, 211X, even 5,567X more in the same time frame.

Mining: The process of using hash rate power to solve a math problem, then verifying the most current transactions and adding a block of data to that cryptocurrency’s blockchain. Mining is used in cryptocurrencies that employ proof of work, such as Bitcoin. The miner that solves the block receives a mining reward of a set amount of the cryptocurrency being mined. Mining success depends on having hardware with a high combined hash rate.

Monero (XMR): This cryptocurrency was designed with a focus on privacy features. It’s extremely difficult, if not impossible, to trace transactions on the Monero network.

Moon: A way of expressing optimism that a cryptocurrency’s price will skyrocket/is skyrocketing, as in “To the moon!” Another popular variant is “When moon?” (See Lambo.)

Mt. Gox: In Bitcoin’s early days, Tokyo-based Mt. Gox was by far the biggest exchange, handling more than 70% of all trading. The name is actually an acronym for Magic the Gathering Online Exchange, as it had started out as a way to trade the digital playing cards for that well-known game. But the exchange was poorly run and subject to hacks that depleted its reserve of bitcoins. Mt. Gox went dark in February 2014, and days later reported the loss of 850,000 customer bitcoins. About 200,000 bitcoins were later found. But with the case moving slowly through the Japanese legal system, former customers have so far received no compensation.

Multi-sig: Short for multi-signature, it means more than one digital signature is required to authorize a transaction. Adds another layer of crypto security. Also can play a role in smart contracts that involve more than two parties.

N

Nakamoto, Satoshi: The pseudonym used by the person or group of people who wrote the Bitcoin white paper as well as the original code that runs the Bitcoin network. This person or group remains anonymous, as all attempts to uncover Nakamoto’s identity have failed. Australia native Dr. Craig S. Wright claims to be Nakamoto but so far has been unable to prove it.

Nifty Gateway: An online marketplace for non-fungible tokens (NFTs) where people can buy and sell digital goods such as collectibles, gaming items, and digital art. This is Nick’s favorite platform to use and the one he would recommend to beginners.

No-coiner: A person who owns no cryptocurrency. Term is typically used to describe a cryptocurrency skeptic.

Node: Any computer that connects to the Bitcoin network is a node. A computer that maintains an up-to-date copy of the blockchain and is able to verify all the rules of a cryptocurrency is a full node. To run a full node requires a copy of that cryptocurrency’s network software. Any type node can also serve as a wallet.

Non-custodial: This term refers to the private keys that control who can spend or move crypto in a wallet. Non-custodial means the user has the crypto in a wallet they control directly, as opposed to keeping coins on an exchange.

Non-fungible token (NFT): A unique token on a blockchain that cannot be replicated. NFTs can be used to represent digital art or even real-world assets. The sale of an NFT grants ownership of the asset it represents to the buyer. NFTs can be bought and sold like any other asset.

O

OpenSea: The current leading NFT marketplace.

Oracle: An oracle is an online trusted source of data used by a smart contract to settle the contract. Some crypto projects, such as Chainlink (LINK), were created to serve as oracles.

P

Paper hands: The tendency to panic sell your crypto at the slightest sign of trouble. The opposite of diamond hands.

Paper wallet: A piece of paper that contains a private key and a Bitcoin address. Somewhat of a misnomer since a paper “wallet” can’t actually store any cryptocurrency.

Peer-to-peer: The exchange of data – or in this case, cryptocurrency – between parties over a network without the need for a third party like a bank.

Pizza Day: The anniversary of the very first commercial transaction with Bitcoin, May 22, 2010. A programmer named Laszlo Hanyecz bought two pizzas for 10,000 bitcoin.

Pre-mine: When the supply of a cryptocurrency is created in advance of its launch, as opposed to the creation of supply over time by some method such as mining. Frequently used by ICOs.

Private key: A very long password used to unlock your cryptocurrency so you can withdraw it from your wallet to spend, sell, or send to another address. Losing or forgetting your private key means permanently losing access to your crypto. Anyone who gains access to your private key can steal your cryptocurrency. Never, ever, ever share your private key with anyone ever under any circumstances.

Proof of stake: An alternative system for securing a network and maintaining a blockchain. In proof of stake, users put up collateral tokens of a crypto (their “stake”) in return for becoming a “validator” of its blockchain – the same function as miners in a proof-of-work system. For each block, the network chooses a validator at random to record and verify the data. The chosen validator earns fees for performing that task; the larger the stake, the higher the odds of being selected to validate a block. Ethereum has plans to move to a proof-of-stake system.

Proof of work: As computers mine cryptocurrency, they expend computing power (measured by their hash rate) in an effort to be the first to solve a math problem. The winner verifies the next block in the blockchain and receives a reward. The computing power expended is the “proof of work” that tells the network the winning miner has earned that reward.

Protocol layers: Think of these as the roads and highways that connect the entire cryptocurrency space. Cryptos like Polkadot (DOT) and Algorand (ALGO) fall into this category.

Pseudonymous: Most cryptocurrencies, including Bitcoin, are only partly anonymous. Because a cryptocurrency address is simply long string of numbers and letters, it offers some level of privacy. But it is often possible, with some effort, to link those addresses to individuals. Privacy-oriented cryptocurrencies such as Monero have additional code to make it virtually impossible to link addresses to individuals, and are considered truly anonymous.

Public key: The wallet address (the alphanumeric string of letters and numbers) you give to others in order to receive cryptocurrency.

R

REKT: A phonetic spelling of “wrecked.” This term was borrowed from the online gaming community, where it describes a person who suffered an especially bad beat. In cryptocurrency, it means a severe financial loss: “When Bitcoin crashed in 2018, I got REKT.”

Ripple: A source of constant confusion outside of the crypto community (and sometimes within it). Ripple is the company that created the XRP cryptocurrency in 2012. It incorporates XRP into its business of facilitating payments between financial institutions. But XRP should not be referred to as “Ripple,” which is a common mistake. And XRP advocates will call you out on it.

Rug pull: A scam crypto project that “pulls the rug out” from investors by enticing them to swap a valuable crypto like Ethereum for a new token that promises massive gains. The scammers then drain liquidity for the coin from its trading pools on DeFi exchanges, making it near impossible to sell and leaving victims with worthless tokens. Also known as “getting rugged.”

S

Satoshi: The smallest unit of Bitcoin. One satoshi is equal to 0.00000001 bitcoins (one hundred-millionth of a bitcoin). Also referred to as “sats” for short. Named in honor of Bitcoin’s creator, Satoshi Nakamoto.

Scamcoin: Cryptocurrencies with no real purpose other than to fool investors, thus enriching the coin’s creators at the expense of the investors. Most often found among ICOs. Sometimes used derisively by crypto enthusiasts for a coin they dislike, regardless of whether it is an actual scam.

Security token: A cryptocurrency backed by an asset such as gold, real estate, or other investable assets such as ETFs. A security token must comply with the Howey test. Allows for a single physical asset to be subdivided digitally among many owners (one gold could be split into 100 security tokens owned by 100 different people). The initial sale of this variant is called an STO (security token offering). Considered a safer, better-regulated alternative to ICOs.

SegWit: A portmanteau of the phrase “segregated witness,” a technology introduced to the Bitcoin protocol in July 2017. By changing how the data is stored, SegWit makes it possible to squeeze more transactions into each Bitcoin block, thus helping to address Bitcoin’s scaling problems. SegWit also fixed an issue called transaction malleability, which opened the door to second-layer technologies such as the Lightning Network.

Sharding: A process of slicing up a large blockchain into smaller pieces to make it easier for the network’s nodes to manage. Instead of each node storing the entire blockchain, it need only process a part of it. Sharding allows less powerful computers to participate in a cryptocurrency network and aids scaling. Sharding is expected to be implemented on the Ethereum network by 2021.

Silk Road: An online market on the dark web (invisible to search engines like Google) that the FBI shut down in 2013. On Silk Road, people could use Bitcoin to buy and sell legal products as well illegal drugs. The association with the illegal activity created a cloud over Bitcoin that lasted for years.

Slippage: On a crypto exchange, a change in the price of a market order between the time it is placed and the time it is executed. The likelihood of slippage increases during times of high market volatility.

Smart contract: A “self-executing” contract that uses cryptocurrency as both the defining and the enforcement mechanism. The contract executes when the software determines that the conditions set forth in the code (and agreed upon by the participants) have been met. Often data from an oracle is used to determine if the contract conditions are met. Once executed, the smart contract is recorded as part of that cryptocurrency’s blockchain database – thus creating a permanent record of the contract.

Stablecoin: A cryptocurrency designed to have constant value relative to some other asset or group of assets. Most stablecoins are pegged to the U.S. dollar, though some are pegged to gold or other commodities. In theory, the administrators of a stablecoin should hold an amount of the pegged asset equal to the value of all the units of that stablecoin. So if there are 10 million units of a stablecoin backed by the U.S. dollar, the administrators should have $10 million in an account to back it.

Staking: Crypto staking involves committing some or all of a particular crypto you hold to help validate transactions on as well as maintain that crypto’s blockchain network. In return, stakers earn rewards at regular intervals. Usually your crypto must be “locked” on the network for as long as you keep it staked.

T

Token: A digital asset distinct from a cryptocurrency (like Bitcoin), although the terms are often confused. There are three basic types: a utility token, which provides access to a product or service offered by the company that created it; a security token, which represents an asset; and an equity token, which represents ownership in a company (like a share of stock does). Token projects are usually built on top of an existing crypto network such as Ethereum.

Tokenomics: The details of how a specific cryptocurrency works. It includes how the coins are created, the maximum supply, the means of distribution, how many coins are retained by the project’s creators as well as the conditions under which they might be released or sold, and, if applicable, how coins are “burned” (destroyed) as part of supply management.

Total value locked: The aggregate value of all the assets staked in a DeFi platform (usually expressed in U.S. dollars).

Transaction fee: A payment associated with a cryptocurrency transaction. Fees usually go to those who maintain the network (in the case of Bitcoin, miners get the fees). Fees can vary widely depending upon the cryptocurrency, but are usually very small.

Transactions per second (TPS): The number of transactions a cryptocurrency’s underlying network can process in one second. The higher the TPS, the better the network’s ability to handle surges in activity.

Trustless: A quality of most cryptocurrencies in which no party need trust another, a product of having no central authority. With crypto, the network processes a transaction and writes it into the blockchain (the digital ledger) for all other nodes to verify. This eliminates the need for a trusted third party such as a bank to process and verify transactions.

Turing complete: A programmable system capable of solving any computational problem. Some cryptocurrencies, such as Ethereum, are considered Turing complete – programs (known as dApps) can be executed on the network itself.

U

UniSwap: One of the most popular decentralized crypto exchanges where user can simply “swap” one crypto for another. See decentralized exchange.

Utility token: A type of cryptocurrency token designed to provide access to a particular product or service offered by the company that created it.

UTXO: Unspent transaction output – how a network tracks cryptocurrency ownership. Each time a person receives crypto into their wallet, it creates a new UTXO in that amount. All of the UTXOs in a wallet, and the amounts of crypto they represent, adds up to how much crypto that wallet holds in total.

V

Validator: On a proof-of-stake network, a participant tasked with verifying transactions on the network. Validators typically must “stake,” or lock, a certain amount of the crypto asset to qualify as a validator. Validators typically earn rewards for performing this role. Validators are the equivalent of miners on a proof-of-work network.

Ver, Roger: One of the earliest investors in Bitcoin, Ver became a tireless evangelist for the cryptocurrency and earned the nickname “Bitcoin Jesus.” Since siding with the faction that advocated for the Bitcoin Cash fork in 2017, Ver has maintained that Bitcoin Cash is the “real Bitcoin” and his influence in the crypto community has waned.

W

Wallet: A software program or hardware device that receives and stores cryptocurrency. Moving or spending the stored crypto requires the user have their private key. See hot wallet, hardware wallet, paper wallet, cold storage.

Weak hands: Owners of crypto who panic sell on pullbacks.

Whales: People or institutions who hold and trade large amounts of cryptocurrency. It is widely assumed that whales manipulate crypto prices.

White paper: A document prepared by a developer team to describe the purpose, structure, and roadmap of a proposed cryptocurrency. Typically used to entice investors into a new project.

Winklevoss, Tyler & Cameron: Twins who became known for suing Mark Zuckerberg for stealing the idea for Facebook from them while all three attended Harvard University. The “Winklevii” invested part of their $65 million settlement into Bitcoin, and have since founded a crypto-related enterprise, the Gemini Exchange. Their Bitcoin holdings are believed to exceed $1 billion.

Wright, Dr. Craig S.: An Australian-born computer scientist who claims to be Bitcoin’s creator, Satoshi Nakamoto. However, Wright has failed to prove that he has control of any Bitcoin that Nakamoto is known to have mined. Wright remains a controversial figure who also helped drive the creation of the Bitcoin “Satoshi’s Vision” (BSV) hard fork, which he maintains is the “real Bitcoin.”

X

XRP: See Ripple.

Y

Yield farming: A way to earn more crypto on your existing crypto by lending it to a DeFi operation like Uniswap. In return for supplying liquidity, yield farmers earn fees and usually rewards in the form of crypto tokens. Yield farmers will move their money frequently as they search out the highest returns. Also known as liquidity mining.

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Crypto ABC’s Part III

Credit to Nick Black and the Crypto and Coffee Team!

Game theory: The process of modeling the strategic interaction between two or more players in a situation containing set rules and outcomes, often employed by Nick Black to determine the best strategy for profiting from a crypto investment.

Gas: The unit used to calculate the computational effort required to execute a transaction on the Ethereum network; in essence, the amount of gas required sets the transaction fee. The Neo cryptocurrency also uses the gas method to calculate fees.

Genesis block: The very first block of data created in a blockchain.

Ghost chain: A cryptocurrency with a high market cap but little to no real-world usage. Frequently used as an insult, often without justification.

Halving or halvening: An event in which the block reward given to miners for solving a block is cut in half. Bitcoin has had three halving events so far. The first reduced the mining reward from 50 bitcoins to 25; the second reduced it to 12.5 bitcoins; the third reduced it to 6.25. This type of event only applies to cryptos that use a proof-of-work (PoW) system.

Hardware wallet: A physical device designed specifically to store the private keys of your cryptocurrency offline (in cold storage). These devices are sold commercially.

Hash rate: The speed at which a computing device (e.g., mining hardware) can convert a set of data into a “hash” – an alphanumeric string of characters. It’s described in hashes per second. So a “megahash” is 1 million hashes per second, and a “gigahash” is 1 billion hashes per second. The power of mining hardware is determined by its hash rate – the higher the better. The higher the hash rate of your mining equipment, the more likely you are to solve a block and receive the block reward.

HODL: A term that describes a crypto investor’s determination not to sell regardless of price action. A person who does this is called a “HODLER.” Originally a misspelling of the word “hold” in a Bitcoin forum post in 2013, it is invoked often by crypto enthusiasts on social media. Also understood to stand for the phrase “hold on for dear life,” as derived from the component letters.

Hot wallet or hot storage: A cryptocurrency wallet connected to other networks or the Internet, and thus considered more vulnerable to hackers.

Hoskinson, Charles: Co-founder of Ethereum and founder of the Cardano (ADA) cryptocurrency.

Howey test: A test created in 1946 by the Supreme Court to determine if an investment fits the definition of a security. Using the Howey Test, the Securities and Exchange Commission (SEC) views most Initial Coin Offerings as securities – meaning they were sold to the public illegally. The criteria are: 1) whether money was invested; 2) whether the investor has an expectation of profits; 3) whether the invested funds are pooled in a common enterprise; and 4) whether any profits made derive from efforts and operations outside the investor’s control.

ICO: Stands for initial coin offering, a form of crowdfunding done in which an organization creates a cryptocurrency and then offers a portion of the total for sale to buyers. The money raised is used to fund the project, much as capital raised in a stock IPO is used to fund a new company. Some ICOs were later revealed to be scams that simply stole investors’ money. Also, the format used by most ICOs runs afoul of the Howey test, making most of them illegal.

Lee, Charlie: Lee is the computer scientist responsible for the creation of Litecoin (LTC), which he based on the open-source Bitcoin code. He sold nearly all of his Litecoin in 2017 to avoid the appearance of a conflict of interest. He remains the managing director of the Litecoin Foundation. His brother, Bobby Lee, founded the Chinese cryptocurrency exchange BTC China.

Lightning Network: A second layer on top of a blockchain network that enables near-instant, low-cost, secure transactions by creating payment “channels.” Plans are for the fully developed networks to allow for millions of transactions per second (a credit card system like Visa can process 45,000 per second). When fully developed and deployed, Lightning will solve Bitcoin’s scaling issues. Lightning also facilitates atomic swaps between different cryptocurrencies.

Litecoin (LTC): A cryptocurrency derived from Bitcoin’s code base by Charlie Lee and released in October 2011. Employs faster block generation times than Bitcoin (2.5 minutes rather than 10 minutes), a larger maximum number of coins created (84 million rather than 21 million), and a different hashing algorithm.

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Crypto ABC’s Part II

Again, with Special Thanks to Nick Black and the Money Map team!

dApp: Short for decentralized application, a kind of application that runs on a distributed, decentralized network, such as the Ethereum network, rather than a device such as a smartphone or PC.

Decentralization: The concept of having no central authority such as a company, a government, or a central bank in control of a blockchain (only the code governs the system) as well as having dispersed infrastructure (nodes and miners) to prevent any one entity or group from gaining too much influence.

Decentralized exchange (DEX): A crypto exchange that allows for peer-to-peer cryptocurrency transactions (often called “swaps”) without the need for an intermediary. Part of the DeFi ecosystem. See Uniswap.

DeFi: Short for decentralized finance. It’s a catch-all term for a digital ecosystem of smart contracts, decentralized exchanges, and special-purpose tokens built mostly on the Ethereum network.

Deflationary: A condition in which a currency gains value (i.e., buying power) over time. Some cryptocurrencies, most notably Bitcoin, are designed to be deflationary by gradually constricting the supply until it reaches a hard cap, after which no more coins will be created.

Diamond hands: Owners of crypto who refuse to sell no matter what’s happening in the markets. The opposite of paper hands. Also see HODL.

Difficulty: On a proof-of-work network like Bitcoin’s, the difficulty is a number representing how much mining power (hashrate) is required to solve a block. The Bitcoin network adjusts the difficulty every 2,016 blocks to try to keep the rate of new blocks steady at one every 10 minutes. As more mining power is added to the network, the difficulty rises. If mining power leaves the network, the difficulty falls.

Digital Fiat Currency (DFC): See Central Bank Digital Currency.

Discord: A popular communication platform within the cryptocurrency community that gives investors a way to chat with other investors directly or even create a larger community where you can share information instantly through direct messages (DMs).

Dollar-cost averaging: Borrowed from the world of conventional investing, DCA is buying a specific amount of a particular investment at regular intervals. Usually this buying is automated, with the investor setting up the parameters at their brokerage or exchange.

ERC-20: A standard for building new cryptocurrency tokens based on the Ethereum network, ERC-20 tokens are created via Ethereum’s smart contract capabilities. Most ICOs have been ERC-20 tokens.

Ethereum (ETH): A cryptocurrency created by Vitalik Buterin in 2015, Ethereum is second only to Bitcoin in market cap and influence. Built as a platform, Ethereum can run as a global, shared computer, making it Turing complete. That makes it capable of running specialized apps, known as dApps. In addition, hundreds of separate cryptocurrencies based on the ERC-20 standard run on top of Ethereum.

Exchange: A business or website that facilitates the trading of cryptocurrencies for fiat money (such as U.S. dollars), as well as trading between cryptocurrency pairs. Can be centralized (a company like Coinbase) or decentralized (an automated market maker like Uniswap).

Faucet: A website that dispenses tiny amounts of cryptocurrency for free. Visitors earn crypto by playing simple games or performing some other task such as watching videos. Popular in the early days of crypto. Generally not worth the time or the effort now.

Fiat currency: Money created by a central bank, such as the U.S. Federal Reserve (U.S. dollar) or the Bank of England (pound sterling). Many cryptocurrency enthusiasts believe fiat currencies will someday fail and be replaced by crypto.

Five Ts: A framework created by Nick Black in order to evaluate a new crypto investment, the 5Ts include team, technology, tokenomics, timing, and the problem.

Flippening: The unseating of Bitcoin as the dominant cryptocurrency by another crypto. The term became popular in mid-2017, when Ethereum’s percentage of the combined market capitalization of all cryptocurrencies rose to within seven percentage points of Bitcoin’s. Since then, Bitcoin reasserted its dominance. The Bitcoin percentage of the total crypto market cap typically hovers at about 60%.

FOMO: Short for “fear of missing out,” this describes the anxiety investors feel watching the price of a cryptocurrency skyrocket while they sit on the sidelines. Typically leads to poor investment decisions (buying at or near the top), but adds fuel to a strong rally.

Fork: Changes to the software that runs a blockchain – the software run by miners and people operating nodes – that creates a new version of the cryptocurrency. Soft forks tend to be benign, either used to launch a new crypto project (for example, Charlie Lee used Bitcoin’s codebase to create Litecoin) or to fix errors in a cryptocurrency’s codebase (no new crypto is created). A hard fork usually creates a new, competing version of a cryptocurrency, such as the Bitcoin Cash fork from Bitcoin. In a hard fork, the resulting two cryptos share a common transaction history prior to the fork. In addition, people who hold any amount of that crypto before a hard fork own equal amounts of both after the hard fork.

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Crypto ABC’s

It’s been a while since I’ve posted on the blog, as I’ve used social media (IG and Twitter) for the past year as my primary means of sharing info. The markets are changing quickly and so now its time to get back in the blog, and see where it goes!

The reason that cryptocurrencies are called cryptocurrencies is that they all have the commonality of being a digital asset that uses a decentralized ledger secured by public-key cryptography. Cryptocurrency is a digital unit of value that belongs to a private key. Users send and receive funds through public addresses, which are supported by cryptocurrency wallets (interfaces that allow for easy interaction with a blockchain) system for generating public addresses and private keys.

Most of the questions I see lately revolve around Crypto. With the help of a few friends at Money Map Press and Nick Black, I have assembled this basic list of terms and definitions to familiarize yourself with! Good luck! Come back soon for more!

Address: A long string of letters and numbers (in the case of Bitcoin, 26 to 35 characters) that represents a destination for one or more payments. The network ensures all addresses are unique. Payments received to an address are visible in the public ledger.

Airdrop: Cryptocurrency distributed for free based on some particular criteria. For example, to receive some airdrops, you had to prove you owned Bitcoin; how much you received was based on how much Bitcoin you owned. In other cases, airdropped coins are “earned” through tasks such as sharing news or downloading an app. Crypto projects often use airdrops to generate interest in a new coin.

Altcoin: Any cryptocurrency that is not Bitcoin. That includes such top cryptocurrencies as Ethereum (ETH) and Cardano (ADA).

Atomic swap: A trade of one cryptocurrency for another made outside of an exchange and without the use of a trusted third party. Instead, it uses the “smart contract” feature built into most cryptos to ensure each party receives their coins (and can’t cheat their counterparty). The Lightning Network is a platform that supports atomic swaps.

Automated Market Maker (AMM): A system that provides liquidity for automatic crypto trading without the need for an order book or third party. Used by decentralized exchanges like Uniswap.

Bitcoin (BTC): The cryptocurrency that started it all launched in January 2009. Trades under the ticker BTC.

Bitcoin/Crypto ATM: A physical machine similar to a bank ATM where a person can exchange fiat money, such as U.S. dollars, for Bitcoin and sometimes other cryptocurrencies. Coin ATM Radar tracks the locations of crypto ATMs worldwide.

Bitcoin Cash: Created in 2017 by a hard fork of the original Bitcoin protocol. The main difference from the original Bitcoin is that it allows for larger-sized blocks in its blockchain (and thus for more transactions). Trades under the BCH ticker.

Bitcoin Core: The name for the full node software that runs the Bitcoin network. Has also become a nickname for the original Bitcoin in the wake of multiple hard forks that have created multiple versions of Bitcoin, including Bitcoin Cash (BCH), Bitcoin Gold (BTG), Bitcoin Diamond (BCD), and Bitcoin SV (BSV).

Bitcoin.com: A website run by Roger Ver that purports Bitcoin Cash is “the real Bitcoin” and sells both BCH and BTC.

Bitcoin.org: An open-source website created by Satoshi Nakamoto and maintained by the Bitcoin developers. It’s dedicated to raising awareness about Bitcoin as well as providing resources and information to general users.

Bitcoin ETF: A Bitcoin exchange-traded fund (ETF). A Bitcoin ETF makes it easier for both retail and institutional investors to invest in Bitcoin by providing a way to gain exposure to the asset without holding it. The first Bitcoin ETF – the ProShares Bitcoin Strategy Fund (NYSE: BITO) – launched in October 2021 and made for the second-most heavily traded debut ETF in history.

Block height: In a blockchain, as the blocks are created sequentially, each block is assigned a number according to its place in the chain. Events like forks can be scheduled to occur at a particular block height, such as 478,559.

Block reward: The amount of cryptocurrency a miner receives for “solving” a block. Often, as is the case with Bitcoin, the rewards are halved at regular intervals (“halving”).

Block size controversy: A fight within the Bitcoin community that raged from 2015 to 2017. One side wished to keep the size of the blocks at 1 megabyte; the other felt that the block size needed to increase to accommodate scaling of the network. The fight ended with the fork of Bitcoin Cash, giving each side the version of Bitcoin it desired. Later, the Bitcoin Cash group had its own split over further increases to the block size, creating Bitcoin SV (Satoshi’s Vision) in November 2018.

Blockchain: The public digital ledger of all of a cryptocurrency’s transactions, made up of individual blocks of data created either through mining or another process. It secures the transactions on the network and prevents double spending.

Blockchain-as-a-service: A cloud-based service, based on blockchain technology, offered by a company, usually to other companies. Both IBM and Microsoft have blockchain-as-a-service products.

Buterin, Vitalik: The Russian-Canadian computer programmer who created Ethereum. He remains one of the most prominent figures in the cryptocurrency community.

Central Bank Digital Currency (CBDC): A digital currency created and maintained by a central bank such as the U.S. Federal Reserve or the People’s Bank of China. These blockchain-based digital tokens would represent the fiat currency of that central bank. Most of the world’s central banks are studying CBDCs but none has yet launched one. Sometimes referred to as a Digital Fiat Currency (DFC).

CoinMarketCap.com: A website that tracks the value by market cap of all cryptocurrencies and tokens. Includes basic info on each coin, price charts, and the markets where it trades.

Coinbase: A major United States-based cryptocurrency exchange, largely considered the easiest way for beginners to buy crypto. It is a publicly traded company under the stock ticker COIN. (There are MANY exchanges to choose from and this is not an endorsement of Coinbase)

Cloud mining: The purchase or rental of a set amount of crypto mining power operated by another (typically a commercial enterprise such as Genesis Mining). In this way, a person can mine crypto without owning or operating any mining equipment themselves.

Cold storage/wallet: A cryptocurrency wallet not connected to the Internet. Includes hardware wallets and paper wallets. Recommended as a more secure way to store crypto.

Consensus: On a crypto network, a condition in which all the participants (nodes and miners) agree on the order of the blocks in the blockchain as well as the veracity of the transactions contained in those blocks. This the “normal” state of a properly functioning crypto network.

Cryptocurrency: A digital medium of exchange secured by strong cryptography.

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What is an NFT?

Phunky Ape Yacht Club NFT

An NFT is a digital asset that represents real-world objects like art, music, in-game items and videos. They are bought and sold online, frequently with cryptocurrency, and they are generally encoded with the same underlying software as many cryptos.

Although they’ve been around since 2014, NFTs are gaining notoriety now because they are becoming an increasingly popular way to buy and sell digital artwork. A staggering $174 million has been spent on NFTs since November 2017.

NFTs are also generally one of a kind, or at least one of a very limited run, and have unique identifying codes. “Essentially, NFTs create digital scarcity,” says Arry Yu, chair of the Washington Technology Industry Association Cascadia Blockchain Council and managing director of Yellow Umbrella Ventures.

This stands in stark contrast to most digital creations, which are almost always infinite in supply. Hypothetically, cutting off the supply should raise the value of a given asset, assuming it’s in demand.

But many NFTs, at least in these early days, have been digital creations that already exist in some form elsewhere, like iconic video clips from NBA games or securitized versions of digital art that’s already floating around on Instagram.

For instance, famous digital artist Mike Winklemann, better known as “Beeple” crafted a composite of 5,000 daily drawings to create perhaps the most famous NFT of the moment, “EVERYDAYS: The First 5000 Days,” which sold at Christie’s for a record-breaking $69.3 million.

Anyone can view the individual images—or even the entire collage of images online for free. So why are people willing to spend millions on something they could easily screenshot or download?

Because an NFT allows the buyer to own the original item. Not only that, it contains built-in authentication, which serves as proof of ownership. Collectors value those “digital bragging rights” almost more than the item itself.

How Is an NFT Different from Cryptocurrency?

NFT stands for non-fungible token. It’s generally built using the same kind of programming as cryptocurrency, like Bitcoin or Ethereum, but that’s where the similarity ends.

Physical money and cryptocurrencies are “fungible,” meaning they can be traded or exchanged for one another. They’re also equal in value—one dollar is always worth another dollar; one Bitcoin is always equal to another Bitcoin. Crypto’s fungibility makes it a trusted means of conducting transactions on the blockchain.

NFTs are different. Each has a digital signature that makes it impossible for NFTs to be exchanged for or equal to one another (hence, non-fungible). One NBA Top Shot clip, for example, is not equal to EVERYDAYS simply because they’re both NFTs. (One NBA Top Shot clip isn’t even necessarily equal to another NBA Top Shot clip, for that matter.)

*Source Credit – Forbes

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I Didn’t Have Time for Breakfast

I was running late because of the kids. I did an extra 15 minutes of cardio and didn’t have time. I overslept and didn’t hear the alarm go off. How many times have you said these things to yourself and justified the reason to skip breakfast, arguably the most important meal of the day? Even worse, have you convinced yourself that lowering your caloric intake will help you lose weight and stay healthy? Guess again!

            Intermittent fasting has become one of the latest fads in the dietary world of health and fitness. I am not a doctor so I am not giving you medical advice; I’m sharing my thoughts in exchange for what you paid to read them – nothing! That being said let’s walk through some common thoughts regarding to eat, or not to eat!

            People who skip a healthy breakfast will consume between 200 and 400 calories LESS in a day. TRUE. But does this lead to a hungry feeling which results in mid-morning snacks or eating a bigger lunch? PROBABLY!  Scientific studies and researchers agree that your brain functions BETTER when given the proper nutrients to function at its peak. Compared to fasting, the results are conclusive.

            Can you kick start your metabolism by consuming a healthy breakfast? YES! Again, studies have shown that your body will metabolize carbohydrates more efficiently DURING the day and LATER in the day if your metabolic process begins in the morning instead of mid-day. Think of your body like a power plant – once you turn those burners on and the plant is running, your entire body is ready to function at full capacity instead of running on fumes until you reach lunchtime.

            The key factor is recognizing the words I have used throughout this article – a HEALTHY breakfast! A sticky bun or bear claw, three donuts and a coffee, or biscuits smothered in gravy and bacon is probably 800-1000 calories of inefficient food your body doesn’t need. Instead, take the time to understand healthier options that give your brain, and your body, the fuel you need to start your day off right! Here are just a few of the healthy options I like to rotate through my morning routine. All of these are 300 calories or less!

  • 1 Cup of steel cut whole Oatmeal, 1 sliced pear or banana, 2 tbsp honey, 1 tbsp chopped almonds
  • 1 egg omelet with 2 egg whites, 2 tbsp organic salsa or Pico  de Gallo, ½ cup baby spinach
  • 1 large avocado, slice in half and fill opening with egg white, drizzle olive oil, shred cheese on top of both halves and bake at 350 for 15 minutes
  • Whole Grain Cereal (I prefer bran!), almond milk or soy milk, sliced fruit or blueberries
  • Waffle Sandwich – I like the low carb protein waffles – with 2 tbsp honey, one slice of cheese OR 2 tbsp skim ricotta cheese
  • 1 ½ Cup Greek yogurt, 1 tbsp honey, ½ cup granola, ½ cup blueberries or strawberries
  • Protein Smoothie – 1 cup almond milk, 1 cup blueberries, flax seed, chia seed, MCT oil, 2 cups ice cubes, 1 cup spinach, 1 tbsp ghee butter, 1 scoop of your favorite protein powder
  • PB Bagel Sandwich, 3 tbsp all natural peanut butter, 1 granny smith apple sliced on the bagel
  • Wrap Sandwich, 2 egg whites, ½ sliced avocado, 1 slice low-fat Swiss or mozzarella cheese, 3 slices of turkey bacon or fake bacon

Thanks for taking the time to read this article. Keep a lookout for more article on health and nutrition as I share my journey to health and wellness over the age of 50!

https://medium.com/@danlouns/i-didnt-have-time-for-breakfast-e51cc91fc062