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Cryptocurrency Cosmos (ATOM) – mining and wallets, where can I buy and sell?

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Over the last month, ATOM cryptocurrency has risen in price by 89%, and for April 22 it has risen in price by 31%. This simultaneous growth of cryptocurrency was facilitated by the almost simultaneous listing of the ATOM coin on the four leading cryptocurrency exchanges:

First of all, ATOM became available for sale on Poloniex. It happened on March 14, 2019. On April 22, I / O and redemption of ATOM ICO tokens became available.

The almost simultaneous listing of ATOM on the four leading cryptocurrency exchanges raised investors' interest in this coin and contributed to the increase in its price. And although now, against the background of a general fall in cryptocurrency prices, prices rebounded, investors started talking about ATOM cryptocurrency, but traders also began to study its features.

In March 2019, representatives of the company Tendermint Inc. said they raised $ 9 million for the development of the Cosmos ecosystem. The main investor was Paradigm hedge fund, which is managed by Coinbase co-founder Fred Ersam.

In March, ATOM coins began to trade on BitForex and Hotbit. And on April 22, 2019 in the leading media publications devoted to cryptocurrency , information appeared about the listing of ATOM on four leading exchanges.

Currently ATOM is actively trading on cryptobirds. A complete list of shopping pairs and platforms can be found on the CoinMarketCap website.

Features Cryptocurrency Cosmos

The Cosmos project is a decentralized ecosystem of independent parallel blockchains . Each blockchain has its own settings and options. Blockchains can have different consensus algorithms based on the BFT consensus algorithm, the Byzantine consensus on resiliency, which solves the problem in which way trust can be achieved in an environment where no one trusts anyone.

A feature of the platform is the ability to make payments not only inside blockchains, as it happens in all cryptocurrencies, but also between blockchains. At the moment, direct payments between blockchains are only test character. The number of blockchains between which direct payments can be made is limited, primarily by the consensus used in mining cryptocurrency .

The Cosmos project offers a technology that allows you to make direct payments between blockchains of various cryptocurrencies without the participation of exchanges. Thus, the Cosmos platform itself is a decentralized exchange platform.

Thanks to Cosmos, interaction between blockchains within a single ecosystem has become possible. The technology used allows not only making payments between blockchains, but also sharing any information and content between different blockchains within the platform.

What problems does the Cosmos platform solve?

In the modern world, blockchain technology is developing. Thanks to the blockchain, it became possible to create various projects and decentralized applications on them. The number of cryptocurrency is constantly growing.

The increasing number of cryptocurrencies and tokens creates a problem of exchange between them. There is a huge number of exchanges. However, most decentralized exchanges suffer from a lack of liquidity, as well as the ability to work with a limited number of tokens, for example, decentralized exchanges can only support tokens on the Ethereum blockchain .

Centralized exchanges have big security and regulatory problems with state authorities. At any time, accounts of the exchange and traders can be frozen by the regulators, and the centralized exchanges themselves can be closed by the decision of the state authorities.

Decentralized exchange, in contrast to the centralized can not be closed. But the more cryptocurrency appears in the world, the more they have problems with the exchange. It turns out that a coin or a token can circulate only inside the project platform, and when entering the stock exchange there are problems with liquidity.

The thing is that in all cryptocurrencies, payments and information exchange can be made only inside the blockchain. Different blockchains cannot communicate with each other. Each blockchain is a closed ecosystem that is unable to communicate with other similar systems. The only means of interaction is the exchange. But exchanges can only exchange cryptocurrencies and tokens between themselves.

Blockchains can be used in a much wider way than just making payments. You can store any information on the blockchain and record a huge variety of transactions. The interaction between blockchains is necessary first of all to exchange information stored on each of these blockchains. In this case, the data exchange should be secure and in no way affect the integrity of each of the blockchains in order not to break the chain of blocks and ensure the safety and integrity of the transmitted information.

The Cosmos project plans to become “blockchain internet”. Just as the TCP / IP protocol suite provides Internet compatibility, Cosmos has developed mechanisms that allow different blockchains to interact within the Cosmos ecosystem.

The principle of the blockchain Cosmos

The Cosmos platform consists of autonomous independent blockchains called “Zones” and the main blockchain called “Hub”. Zones are built using the Tendermint protocol. To create a blockchain, you can use any programming language. Each of the existing blockchains has different flexible settings and capabilities.

To simplify the creation of your own blockchain, a modular system is used. Cosmos developers are planning to prepare a base of basic modules for creating a blockchain, so that creating your own blockchain is as simple as possible, using only the basic mechanisms, without special programming knowledge. This will allow startups in the Cosmos ecosystem, using base modules to independently create blocs and customize them to fit their needs.

Zones can interact with the central Hub, as well as with each other within the Cosmos holistic ecosystem. In the future, the possibility of interaction of Zones with third-party blockchains outside the Cosmos platform, such as Ethereum, Neo and other blockchains that can support smart contracts, is envisaged.

In the future, ways of interacting with Bitcoin and other blockchains that do not work with smart contracts are being worked out. But here the technology will be much more difficult. Therefore, at the moment this possibility is considered solely as a theoretical one.

Cosmos project history and key stages of development

  • In 2014, Tendermint Inc. was created. Based on a study of the consensus capabilities of the Byzantine Fault-tolerance (BFT), the Tendermint consensus algorithm was created, which is a hybrid of the PoS algorithm using the principles of BFT.
  • In 2015, the opportunity was developed to connect the Tendermint core to applications written in any language via the Application Blockchain interface (ABCI). Due to this, it became possible to create independent blockchains using any programming languages, as well as basic modules.
  • In 2016, the Interchain Foundation (ICF) was created to develop the Cosmos ecosystem. An agreement was concluded with Tendermint Inc. on cooperation and further cooperation in the framework of the Cosmos project.
  • In 2017, for 30 minutes of the sale of tokens, the necessary amount was collected to implement Cosmos ideas in the amount of $ 16.8 million. 2017 was characterized by large amounts of fees during the ICO, so the amount of funds raised is not something unusual or rare. In this case, the timing of the ICO is much more impressive. The first Cosmos SDK prototype was launched.
  • In 2018, the Inter-Blockchain Communication (IBC) concept was developed, which is a data transfer mechanism between blockchains within the Cosmos ecosystem. The development of the specification begins. More than 20 public test networks launched.
  • In 2019, the world's largest cryptocurrency exchange, Binance, announces the Binance Chain, which is based on Tendermint Core and Cosmos SDK technologies.

Cosmos features – mining and transactions

Cosmos solves scalability problems by creating stand-alone blockchains and using the Tendermint hybrid mining algorithm. The operations processed inside blockchains do not affect the overall network load. Only information exchange operations and transactions between blockchains affect the total network load. Therefore, the issue of scalability is important for the Cosmos project and is achieved through the use of Tendermint hybrid mining.

The mining algorithm Tendermint is a kind of mining using the PoS consensus algorithm in combination with the Byzantine consensus on the pBFT fault tolerance (BFT protocol). The network is supported and processed by all transactions of 100 validators (network miners) with the largest deposits in ATOM. According to the principles of pBFT operation, as long as more than a quarter of the voting nodes are fair, the protocol will work without problems.

ATOM coins are a way to ensure fair transaction processing validators. If it detects that a node is acting with malicious intent, the validator will be removed from the system, and its broken-down ATOM coins will be burned.

This way of ensuring the smooth and fair operation of validators ensures that they have no malicious intent in the processing of transactions. Otherwise, they will lose all the ATOM coins in their wallets. It is assumed that such security is a reliable guarantee of the fair observance of the rules by the validators and the absence of abuse.

When performing transactions between blockchains, synchronization with the main blockchain occurs – the Hub. The transaction is frozen until confirmation is received. After that, the tokens are credited to the blockchain – the recipient of the coins and destroyed in the blockchain – the sender of the coins. This system avoids double spending.

The hub performs the role of a decentralized exchanger, controlling the entire movement of tokens between different blockchains.

ATOM Tokens

Mining ATOM is carried out using the Tendermint algorithm, which is a hybrid version of the PoS mining algorithm .

ATOM coins are required for transactions between blockchains and payment of commissions.

ATOM also serves as a means of ensuring the fulfillment of obligations by miners – validators. The more money in a validator’s accounts, the more bets he has and more chances to become a validator. For the duration of the validator’s duties, all ATOM tokens on his accounts are frozen.

Payment validators for maintaining the network operability and transactions are carried out with ATOM tokens.

Summing up

Cosmos offers a platform for making payments and exchanging information between blockchains.

The problem of interaction between blockchains is relevant. Its solution allows not only to make payments between blockchains, but also to exchange information in full.

However, there are problems:

  • Low capitalization of ATOM cryptocurrency. According to the capitalization, ATOM takes 1805 place. This means that the cryptocurrency rate is extremely unstable and various course manipulations are possible.
  • Lack of democracy. Validators can only be investors, on whose accounts most ATOM tokens have been frozen. And this means that in order to get the right to process transactions and pay for maintaining the network operability, the validator must constantly increase the amount of funds in the accounts. Otherwise, it may lose the right to perform the functions of a validator. This will lead to the fact that large sums will be concentrated on the wallets of 100 validators.
  • There is a lot of competition among projects that are trying to find a solution for the interaction between blockchains. Among the competitors of Cosmos, there are such startups as Polkadot, AION, Penta.
  • In the early stages of development, it will be necessary to integrate existing projects into the Cosmos infrastructure in order to be able to make payments between blockchains within the framework of the existing Cosmos infrastructure.
  • The success of the Cosmos platform, as well as the success of any other crypto startup, will depend on the number of applications located on the platform, their size and the activity of users of these applications.

Publication date 04/30/2019
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Robert Kiyosaki: Bitcoin will be the future of finance, unlike real estate and gold

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Robert Kiyosaki, author of the best-selling book Rich Dad, Poor Dad, said real estate and gold investments cannot be the future of finance, as cryptocurrency has come into the spotlight. The entrepreneur, who several times this year called the ideal investment portfolio to invest in gold, real estate and bitcoin, now believes that only cryptocurrency will strategically win.

In an interview with Anthony Pompliano, managing partner of cryptocurrency investment company Morgan Creek Capital, Kiyosaki said that you really need to look “beyond the horizon” of the current financial situation. He admitted that it was not easy for him to understand the phenomenon of cryptocurrencies, but nevertheless he made an effort, conducted an analysis and made certain conclusions.

According to Kiyosaki, bitcoin will reach the level of 75 thousand dollars within three years.

“It is very important to understand how cryptocurrencies work, as the financial world is already starting to change. Those investors who will continue to rely on gold and real estate will find themselves outside the main changes in the sphere of global finance. ”

The entrepreneur made his forecast while on July 9 a troy ounce of gold reached almost a 9-year high (about $ 1800), if we do not take into account the accumulated inflation in the US dollar.

Meanwhile, the precious metal has not reached the historical maximum of 2011, since for this formally a troy ounce it is necessary to rise above $ 1900, but in fact – it is sure to overcome the mark of $ 2050, given the accumulated devaluation in the US currency.

Recall that entrepreneur Kim Dotkom and billionaire Mike Novogratz declared their investment preferences in the form of gold and cryptocurrencies .

Date of publication 07.15.2020
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Staking and cryptocrediting – which is more profitable than stablecoins or PoS cryptocurrencies?

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In this article, we will consider the prospects of cryptocurrency staking as a new way of passive earnings, about the differences between staking and cryptocrediting, as well as about the main platforms designed for this.

If you have not been interested in staking before, then a variety of coins and platforms that support this type of passive income can make you dizzy. And with the advent of stablecoins, the choice has become even wider. What type of coins is better in terms of profit and risk?

Cryptocurrency Staking in 2020

A year ago, cryptocurrency staking was much simpler than now. The cryptocurrency market was attended by only a few specialized platforms, a pair of popular cryptocurrencies and approximately the same rate of return.

But these times have passed: in 2020, staking has grown into a serious segment of the crypto industry for several reasons.

  • Firstly, the market now has more than 30 PoS coins that support the possibility of staking.
  • Secondly, many kriptobirzh now there own PoS-nodes – an interesting alternative to special steykingovym platforms.

Moreover, now investors are provided with staking and deposit accounts in stablecoins, which allow minimizing risk and getting profitability at the level of PoS-coins or even higher. What to choose?

To find out, you need to compare the two main options on the market (PoS coins and stablecoins), according to a number of clear criteria. However, an important reservation must first be made about the nature of staking.

Staking and cryptocrediting are not the same thing

Coins that use the Proof-of-Stake (PoS) consensus algorithm – Tezos, Cosmos, BIP, and LOOM – initially support staking. While the value of stablecoins is tied to a specific asset – for example, to the US dollar.

Stablecoins are not available for styling, but loans – coins are issued as a loan to another user who pays a deposit in response. However, for investors there is no particular practical difference between staking and lending. That is why one can hear on the cryptocurrency market, for example, about “USDC staking”.

Real ROI and Volatility

Let us compare the return on investment in PoS coins and stablecoins and how this indicator is affected by the volatility inherent in the crypto market.

  • PoS coins . Each coin has its own nominal rate of return built into the algorithm. For example, for Cosmos (ATOM) it is 8.35%. However, a really important value is the real profitability, which is calculated on the basis of price changes for any period. For example, if you invested $ 10,000 in the stake of ATOM coins on January 1 of this year, then by June 1 you would have received a nominal income of about 3.5%. Instead of 2309 coins, you would have 2390. However, over the same period of five months, the price of a coin fell by more than 30%: from $ 4.33 to $ 2.96. The cost of the steak, along with interest, would be only $ 7075, and the real ROI would drop to -30%.
  • Stablecoins . Everything is simple with them: what rate is declared, the investor receives such ROI, minus the platform commissions. On cryptocrediting platforms, the rates are quite stable and allow you to predict income: for example, if you pay 1.94% per annum for USDC deposits on Fulcrum platform, then your profit in dollar terms will also be 1.94%, unless something out of the ordinary happens the USDC coin will not lose its peg to the US dollar.

Verdict: on average, the real ROI of stablecoins is higher and more predictable, as there is almost no volatility. A PoS coin can suddenly increase in price and bring profitability of 20% or more, but it can also lose half its value.

Number of platforms available and conditions

Next, we compare the number of available platforms for staking PoS coins and stablecoins and the conditions that they offer to holders.

PoS Coins

Dozens of platforms offer staking popular coins like Tezos and Cosmos. These sites can be divided into two categories:

  • Specialized sites are Staked, Staking Lab and Dokia Capital, among others.
  • Crypto exchanges – Bitfinex, Kraken, and KuCoin are among the smaller platforms.

Of course, platform competition is good for investors, but such a wide choice also means that you have to spend more time searching for information.

Having chosen a coin, it will be necessary to study the rates of return taking into account the commission at different sites, as well as assess the risks of each of them. Moreover, commission rates on different platforms can vary greatly, which affects the investor’s income. For example, for the ATOM coin, the Binance exchange promises a yield of 6–9% per annum, while on Stakin this figure will be 9.1%, and on Gate.io – only 6.1%.

Stablecoins

This type of digital asset can be deposited on various lending platforms:

  • Centralized – BlockFi, CoinLoan, Nexo, as well as a number of exchanges – Binance , Bitfinex, Poloniex.
  • Decentralized – Compound, Nuo, dYdX, Aave and others.

It should be borne in mind that different lending platforms can offer completely different rates for the same coin. For example, deposit income in USDC ranges from 1.25% to 8.6%.

Verdict: by the number of platforms, ordinary staking coins win. However, in the case of staking or lending in stablecoins, choosing a platform is easier: you do not have to compare so many options.

Risks: interest in the project

We have already mentioned volatility as a key risk factor. When staking stablecoins, the investor receives a reward in cryptocurrency , which can often be exchanged for fiat. But staking PoS-coins can lead to losses due to volatility. Another factor by which it is worth evaluating the profitability of investing in a PoS coin is the level of interest in a particular coin.

Stablecoins have a significant advantage: they were originally created as a reliable way to store and transfer funds between participants in a transaction. In the current crisis, investor interest in stablecoins can only grow. On the other hand, each PoS coin is a cryptocurrency of some kind of blockchain project , which can both succeed and fail. If the founders do not launch the product, then the price of the token may fall.

Another risk factor is the platform on which staking takes place. Both for stablecoins and for PoS-coins, both centralized (custodial) and decentralized (non-custodian) platforms are available. A cryptocurrency exchange like Binance is a classic example of a custodial solution: you transfer coins to the exchange for storage. If she is attacked by hackers, your steak may disappear.

In the case of non-custodian platforms, the risk of theft or fraud is quite low. It doesn’t matter which asset to use when staking or depositing and where: USDC – on Compound, USDN – on Waves․Exchange, XTZ – on P2PValidator.

And vice versa: on custodian platforms, the risks are higher, both in the case of providing stablecoins on credit, and in the case of PoS-coins staking. And since the bulk of PoS staking passes through exchanges such as Bitfinex and Binance, we can conclude that, on average, the risks of owners of PoS assets are more serious.

Verdict: PoS coins are more risky, because their price is highly dependent on both interest in the blockchain project itself and market sentiment. It is safer to choose non-custodian platforms for both types of coins.

Output

Nominal rates of return for PoS coins are often very attractive, but price fluctuations can lead to negative profitability. In the case of stablecoins, a positive result is almost guaranteed. At the same time, you should not expect earnings on stablecoin more than 15-17%, although it is possible with a PoS asset.

Ultimately, the choice should depend on your personal attitude to risk. Investors who are willing to take risks in the hope of earning super-high returns should invest in a classic PoS coin – for example, Tezos .

If it is important for you to keep the investment (especially in the case of large amounts), then stablecoins are definitely preferable due to the better risk-to-ROI ratio.

As the global economic crisis deepens, more and more investors will acquire crypto assets. This will undoubtedly change the market balance in the segments of staking and cryptocredit. How exactly? We will find out soon.

Date of publication 09.07.2020
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Binance Exchange added the ability to purchase cryptocurrency from Mastercard

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This Friday Binance Exchange announced the addition of the possibility of buying cryptocurrencies using bank cards in the Mastercard system.

The service covers 19 countries, including Russia and Ukraine. There are no other CIS countries on the list yet.

To use the option, you must log in to your personal account at https://www.binance.com/ , go to the “Buy Cryptocurrencies” tab and select payment using a bank card. Bitcoin, Ethereum, XRP, Binance Coin, USDT and some other assets are available for direct purchases from Mastercard cards.

Previously, users already had the opportunity to buy cryptocurrency on Binance using Russian Visa cards.

Also this morning, Binance CEO Changpen Zhao hosted another live broadcast at Periscope. Zhao’s speech mainly covered the latest achievements of the exchange, including the launch of the Binance Card , mining pool , Binance KR, OTC portal, as well as cooperation with Brave and the acquisition of CoinMarketCap . In addition, Zhao recalled the need to maintain social distance.

“We have completed the initial development of platforms, and now I think it is important for us to support mining , since bitcoin mining is now centralized. We want more players to take part in it, as well as support existing players, ” he said.

In addition, on his Twitter, Zhao shared a screenshot testifying to the preparation of the exchange for the launch of option trading.

He left no comments on this subject. In the main Twitter account of Binance, a list of tasks for testers that was “publicly available” was posted. Among other things, it includes the item “test option trading”.

Publication date 04/04/2020
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