Bitcoin 

Differences Between Tokens, Coins and Virtual Currencies, Explained

1. In short: Yes, there is. There are indeed differences between all of these terms, both major and minor. For instance, when JPMorgan Chase released its JPM Coin, it presented it as a “digital coin,” while Facebook’s Libra was introduced as a solid “cryptocurrency” — and, ironically, that could be part of the reason why regulators around the world got so worked up about the latter.  Nevertheless, while JPM Coin and Libra are different by design, in both cases, decentralization pundits were quick to discard them as not “cryptocurrencies,” but…

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Bitcoin 

Bitcoin Block Size, Explained | Cointelegraph

3. Over the years, Bitcoin has seen numerous proposals advocating that an increase is needed in order to reduce fees, process more transactions per second and allow Bitcoin to scale to compete with mainstream payments technologies.   On May 4, 2015, Gavin Andresen published an article titled “Why increasing the max block size is urgent,” further escalating the perceived gravity of the block size debate, despite the average BTC block then being only 30-40% full. Andresen warned: “If the number of transactions waiting gets large enough, the end result will be…

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Blockchain 

Noncustodial Crypto Exchanges, Explained | Cointelegraph

3. There are a number of advantages that make NCEs an appealing alternative to both centralized and decentralized cryptocurrency exchanges. User control: Firstly, users maintain control of their own crypto wallets, private keys and holdings. Some platforms allow users to remain anonymous by not requiring any documentation for account creation, others require customers to complete Know Your Customer (KYC) verification. Variety of crypto trading pairs: NCEs essentially act as aggregators of cryptocurrency trading pairs. They do not require users to deposit funds or crypto holdings and provide a wide range…

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Bitcoin 

Derivatives in Crypto, Explained | Cointelegraph

4. Cryptocurrencies are increasingly gaining popularity, and there are more traders who want to benefit from price fluctuations.  Bitcoin’s rate has had a wild ride over the past two years — surging to its all-time high around $19,800 and then losing one-third of its value in just a few days, continuing to drop throughout 2018 to as low as $3,200. However, in April 2019, things started to change again, and the current price of Bitcoin — over $12,171, as of press time — is far from pessimistic.  Bitcoin futures trading…

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Bitcoin 

Blockchain and AI Bond, Explained

5. Even with these challenges ahead, several companies and organizations are already introducing AI into blockchain to produce results. There are already several promising projects merging the technologies that span a variety of fields. Recently, blockchain-based Cortex has announced the launch of an AI-based network for decentralized applications (DApps), which can help optimize financial services. The company hopes to use the technology to generate credit reports for decentralized financial services, construct better anti-fraud systems, and even assist in gaming and esports. Other companies, such as Endor, have taken a narrower approach. The organization,…

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Blockchain 

How Blockchain Improves Daily Health Care Routine, Explained

1. The data stored on a blockchain is transparent and immutable, which is extremely important for the health industry. Some insiders even call it the “ultimate use case” for the technology.  In fact, there are several reasons behind this hype. As Cointelegraph previously explained, one of the core characteristics of blockchain is its decentralization. Each move is publicly recorded, time-stamped and nearly impossible to edit. The blocks that contain data are protected by advanced cryptography. If the information on the block has somehow been altered, the users of the network…

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Blockchain 

Sharding, Explained | Cointelegraph

3. To explain sharding, let’s use the Ethereum blockchain as an example. The Ethereum blockchain is made up of thousands of computers, aka nodes — currently 8,622, according to ethernodes.org — each lending a certain amount of hash power to the network. It is this hash power that allows the Ethereum Virtual Machine (EVM) to function — i.e., to execute smart contracts and run decentralized applications (DApps). At the moment, Ethereum works on a sequential execution basis in which every single one of these nodes has to calculate every single…

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Bitcoin 

DEX, Explained | Cointelegraph

4. The distributed architecture of decentralized exchanges and full user control over their own funds entails a number of difficulties. Inability to restore access: For example, due to lack of a KYC process and the ability to cancel a transaction in the event of a broken passwords or loss of a private key, the user cannot recover his or her data and return the assets. Chargeback and refund procedures are incompatible with a distributed registry. Users who have committed an operation by mistake or have lost control over their keys…

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Bitcoin 

Crypto OTC Trading, Explained | Cointelegraph

1. Generally speaking, over-the-counter (OTC) trading is a deal that happens directly between two interested parties — that is, without the supervision of exchanges. OTC deals involve a wide range of assets — from commodities to financial instruments like stocks and derivatives. Unlike traditional exchanges, the OTC market is decentralized and has no physical location, and trading is done via dealer networks. Traders are not necessarily involved in the process directly, as they can seek assistance of middlemen, like brokers, or OTC desks. OTC desks are mostly trading securities that…

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Bitcoin 

Tokenization, Explained | Cointelegraph

3. In short: It’s on a blockchain. But let’s dive a little deeper and see what “token” even means in our case. Of course, as with many other crypto-related terms, there is no single, agreed-upon definition. At the most basic level, a token is a representation of a particular asset or utility. Sound too abstract? Let’s outline three types of tokens you might come across on a regular basis and break them down: Currency tokens These are the most obvious ones. Just think of classic cryptocurrencies. Bitcoin. Currency tokens are…

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