lockck

What is NFT?

2022-07-05T21:49:31.322Z

In general, this is my least favorite topic so far, since I am a grandfather and do not always understand how a jpeg can cost hundreds of thousands of bucks. But still, I was deepened into this topic and in this article we will analyze it.

In our usual format, let's start with an introduction. The NFT has become a threshold for entering crypto for a huge audience. Almost everyone was discussing pictures for millions or sneakers for tens of thousands, which pay off in a month. There are really many such stories, but few of this crowd even understand that this is not jpeg, this is a whole technology that deserves attention.

NFT (non fungible token) is how you can transfer non-fungible tokens. That is, by exchanging one $Bitcoin for the second, you exchange two bills, which simply mean that you have 1 bitcoin. In the case of the NFT, it is not just a token that can be exchanged for another and it will not mean anything. It means ownership of something, that is, you have ownership of this picture, by selling it, you are selling the right to it to a greater extent.

I understand that at this stage, NFT is just pictures, but in the future, this is the exit of crypto from finance to the real sector. Think about it, by selling a car, you're just exchanging your NFT with car rights for X USDC. Or you follow the same procedure with a house or apartment, this in fact replaces a third party, which in these cases is usually played by a notary.

Since many factors in terms of at least security are lame, NFT cannot yet perform such functions, but I am sure that this is the vector of this technology. In the meantime, we can be content with pictures of monkeys for hundreds of thousands of dollars. True, the rate of $ETH fell under and we can see prices at a nicer, but nevertheless, very expensive for cards.

In terms of jpeg, the technology has advanced further and the ICO mechanism described in the previous article was invented. It is referred to as a mint. That is, you already know what the picture looks like, it has a price for which you can create it and a limited edition. Usually the hype for good collections is about the same, they are sold out in 0.000001 seconds. You get a generated picture of random rarity (if there is one in the project) and at the end of the sale you can put it on the secondary market, where you can inflate the price. Why does it work like this? That is because there may be 100,000 applicants, and a circulation of 2,000 NFTs. And, accordingly, some of these 100k people believe in the project and are ready to buy it for a higher price. Yes, the honesty of mints suffers because of scripts that can be made and endure all mints, but that's a completely different story.

Accordingly, we get a real ludomania, which has even more risks than ICO, as well as more profit. But it is always difficult to determine a fair price, since if ICO startups can be somehow evaluated. In NFT, the picture changes very much and it becomes extremely difficult to determine this. Understanding which collection will succeed is much more difficult than understanding which project. I’m generally silent about a fair price, but most mints shoot, which is why it’s profitable. But as I said at the beginning, I am a grandfather and for me it is a complete gamble, where I have not yet climbed in depth, which I would advise you too. But you must study this topic in more detail and decide for yourself.

What is ICO?

2022-07-05T20:56:22.470Z

Quite often, everyone discusses investing in cryptocurrency. Can buy $Bitcoin now or better to wait, they will give it lower. Then I'll sell it at a higher price, somewhere five times higher than I bought - I'm a genius. Yes, it is a true investment, for the long haul. But did you know that you can also invest at those stages when the project does not even have a coin, maybe nothing, just an idea.

Yes, such investments exist, in particular, they are one of the directions. Since the project can evaluate itself and set a price for investors, and they choose taking the risk. To invest or not, it's up to everyone, if you have the opportunity and you see that the project is underestimated relative to competitors, then this is your gem.

But what am I talking about, we have already gone into the depths of the concept, but I still have to give you the meaning of ICO.

ICO (initial coin offering) is the first placement of the price of a project to the public with a designated price and entry threshold. As a rule, it is difficult to get into good projects, but it is possible. And by investing a few hundred dollars in a project without a token, but at this stage already with a working or almost working product, you can get a good profit.

With such sales, the project itself determines the conditions for unlocking your coins, this can be immediately on the TGE (token generation event) - the initial placement of coins, or after a certain time. It can be weeks, months or even years.

Quite a large number of the community chooses this direction for making money. Since long searches and research projects, many projects, over time, make it possible to find your gem. For example, a fairly popular project that anyone could join is $Flow. By investing $1,000 in it, which was the maximum limit, you could exit the first half at 150x. That is, with $1,000 it turned out $75,000, which you could fix only in a year. In the beginning, the price was 300x, which is a lot, an incredible amount. The other half could also be sold for an average of 80x. That is, from the second half of $ 40,000. In total, you could easily get $115,000 for one investment. How do you like that? It also seems to me that it’s even very good - it deserves a brand new BMW, doesn’t it?)

But the choice of projects must be approached carefully. Since the case of 1 per 1000 projects was shown above. The other side of this story is that a poorly chosen project can divide your investment by 2, 3, 4, 5, 10 times or nothing. Which, as you understand, is not very pleasant, well, there are most of such projects, or rather, about 9 out of 10 unsuccessful ones on a bear, this means that your profit is lower than the invested funds. And in the bull market, this ratio is 4 to 6, that is, as many as 6 projects will allow you to break even at least.

That is why this area deserves hard work, 24 on 7. From looking for projects early and very early stages and picking out opportunities to put money into the project there. Perhaps in the future I will write an article in which I will describe this process in detail, but this is not about that now. The main thing is that you understand that this is not just a separate direction, but a whole separate work in the field of crypto. I strongly recommend that you delve deeply into this area, since the profit there is much greater than in the usual investment in bitcoin or other shit coins. But your risk is also very high.

What is DeFi?

2022-07-05T15:28:46.023Z

An ordinary user of the Binance exchange or a beginner may not even know about the existence of DeFi. But this is a very important component of the whole crypt that you need to know and be able to use.

I think the same newbie heard about decentralization quite often. The fact that the crypto is decentralized, but at the same time trading on Binance, he does not even understand that at this stage there is only centralization.

It's time for us to understand a little bit about crypto terminology. What does the term centralization mean? Centralization is when something or someone is at the mercy of one body. This can be any example, for example, a company with a staff of 100 employees is in the hands of one, most often a group of managers. These managers can decide how much their employees will receive, who to fire, where to keep the development vector, and so on. That is, all the decisions and money that employees will receive are in the hands of several people.

Whereas decentralization means there is no intermediary between salary and employee. That is, there is no third link - managers. So we can understand that centralization is a three-way relationship and decentralization is a two-way relationship. But I agree that if an employee pays himself a salary, then this salary will be many millions per hour, this is how he will evaluate it. Therefore, there must be some kind of limiter for this. In crypto, this constraint is a smart contract. In which all the rules and conditions that the user must comply with are spelled out, but this smart contract does not interact with the employee’s salary in any way, but only limits the employee’s impossible actions.

Now we come to the main one. What is DeFi.

DeFi is a direction of Decentralized Finance, which allows you to use all the services of the banking system, but without the participation of third parties. In DeFi, you can borrow, lend, deposit, trade, invest, hedge positions, and so on.

In order to use DeFi you need to have your own wallet. You can use many different variations by also choosing the blockchain you are interested in. But I will consider for example the Ethereum blockchain, for it, you can choose the most popular option - MetaMask. When creating it, you need to save a seed phrase consisting of 12 or 24 words, the loss of this phrase will mean the loss of the entire wallet, so I recommend saving it in a very safe place.

After that, you can replenish your wallet with any amount in any coin. And you can start popular dApps built on the blockchain. In the case of Ethereum, these are Uniswap, Ribbon, Compound, Aave, and so on.

You can track all transactions in the blockchain explorer, each one is different. For example, for Ethereum, this is Etherscan. There you can track not only transactions, but also which coins are on the wallet, from where they were sent, the status of the transaction and other technical details. I advise you to take a look at this.

That is, to sum up, you can use banking services without identification, since the wallet does not require any data about users. And even expand their capabilities with the help of DeFi. I think that after this article, it has become more clear to you what DeFi is, why decentralization is important, and what is behind it. I advise you to read more information in the book from CoinGecko about DeFi.

What is WEB 3?

2022-07-05T09:36:30.252Z

At the moment, there is no specific established meaning of what WEB 3 is. But in order for us to figure out what it is and why the crypt is important here. I propose to analyze all stages of the development of the WEB. We are currently on WEB 2.

WEB 1.0 (1991 - 2004)

Web 1.0 as such a concept appeared only after Web 2.0 appeared. Therefore, everything that was before Web 2.0 was marked as Web 1.0.

Web 1.0. will also be commemorated as a read-only. Since at that time there were no logins, editing, authorizations and other things. That is, the user could only go to the site to read the content and exit. In addition, the sites were concentrated in the hands of the owners, that is, you could only get what you were served. This can be compared to a huge library where you can take a read - close it and that's it.

WEB 2.0 (2004 - now)

The emergence of the concept of Web 2.0 is usually associated with Tim O'Reilly's article "What is Web 2.0?" dated 30.09.2005. In this article, the author has linked a large number of sites united by common principles with the general trend of the development of the Internet.

One of the breakthrough differences of Web 2.0 was the advent of social networks. Social networks allowed posting content not only to webmasters and site owners, but also to ordinary users. We started creating YouTube and Instagram accounts and posting content there. We started registering accounts, making purchases, thereby indicating bank details. We make millions of requests to Google for confidential information.

In turn, the owners use the information left for their own purposes for advertising statistics and further promotion. Therefore, the era of Web 2.0 has been called targeted advertising and a lack of privacy.

Thoughts on Web 3.0 came about because of the shortcomings and problems of Web 2.0. Namely: since the architecture of Web 1.0, the client-server architecture has been preserved. In this case, your request may be rejected or your publication may be blocked for non-compliance with the established rules by the owner himself. Another problem is the collection and storage of sensitive data, since they are located on centralized servers, they can easily be hacked or sold to another company that uses it for its own purposes.

WEB 3.0

Web 3.0 is taking shape right now. Roughly speaking, this is a new stage of the Internet, which is likely to use blockchain technology and other tools like DAO. It is not yet clear whether this will be blockchain technology, as we are at too early a stage of formation to say anything.

It is also worth noting that Web 3.0 goes far beyond and fully penetrates the real world. This is an attempt to change the financial system and the principles of interaction between people.

Features of Web 3.0 that are already known to us. First, Web 3.0 will not live on centralized servers that belong to specific people or companies. It will be a distributed database, which will be stored on special nodes, while everyone can become the owner of the node. At the same time, not one company will be able to delete the content, because the database will be stored by thousands of users.

Secondly, applications will turn into decentralized applications. That is, they will be managed by the DAO, without the CEO and directors' advice, which will be managed by the community. And the rules will be set by the community as well.

Thirdly, all your content, that is, photos or videos, articles will be tokenized. This does not mean that they will be sold, but simply that this article or photo belongs to you.

Fourth, Web 3.0 will have an updated identity. This will allow you to browse the pages, download, buy something without identification.

Also in web 3.0 it becomes possible to spread the metauniverses and make them fully functional. Complementing with VR and AR technologies, this gives a very strong boost to launch really good metaverses.

The transition to Web 3.0 is a very long and difficult journey. Since it is necessary to revise the entire stack of technologies, to rework the principles on which the whole world works. Users need time to switch to daps.

What is crypto?

2022-07-04T20:42:48.214Z

Very often I hear whether it is worth buying $BTC at the current price and how best to do it. Most often, these are people not from the crypto, of course, people from the sphere usually do not have such questions. But I think that it is best to understand the area where you invest and know the base. Therefore, let's start with what is the same crypt.

A person who has been in the field of crypto for a short time might think that transactions are very slow, but this is not so. Imagine you need to urgently send it to your foreign friend who has a bank card of another country, in which case the transfer will take place in 4 days at best. In the case of crypto, this transfer will take up to 10 minutes and up to $1 commission. Unlike a bank, the commission for a foreign bank payment will require much more funds.

Crypto is decentralized money that you cannot touch, but only see on your screen. Built on blockchain technology, which is the killer feature of the financial industry.

Since I have already mentioned that crypto is decentralized money. What is this money and what are they? There are three types of the same money in the crypt: Coin, Token, Stablecoin. And now we will go over each.

A COIN is the main money in the blockchain, there is no significant difference between a coin and a token. Only that a coin is a blockchain coin, which is the number one in the ecosystem of this blockchain. For example, Bitcoin - $BTC or Ethereum - $ETH.

Whereas a TOKEN can be issued by an application built on the blockchain. For example, a decentralized exchange can be built on the Ethereum blockchain - UNISWAP($UNI), and now its coin serves only to protect and governance the protocol itself, but not the chain.

A STABLECOIN is a coin that is pegged to a fiat currency and backed by real assets, most often the fiat that the coin represents, but there can also be stocks. Coins always come with a 1 to 1 peg. That is, one USDT will always be 1 USD. This particular coin is not fully backed by the fiat dollar, but in large quantities by it.

In addition to coins, a lot of tokens complement the work of a coin. In a generalized version, many projects built on the blockchain help it to function.

But also my friend, in addition to this concept, the crypto has one more thing. It is decentralization, I am sure you know about the Binance platform, where you can trade, borrow, and so on. This concept refers to CEX(centralized exchange). At the moment when the above-mentioned Uniswap is built on the Ethereum blockchain, DEX(decentralized exchange) is.

To use the centralized habitat, you simply need to create an account. In the case of decentralization, for those who do not understand, this implies that you do not trust the funds to a third party, as with Binance. To do this, you need to create a wallet, the most popular multi-chain wallet is MetaMask. To create, you will need to save the seed phrase, usually it is from 12 or 24 sets of unrelated words. The loss of this set is a complete loss of the wallet and the inability to restore it.

With your wallet and funds on them, you can make exchanges, borrow funds, lend them, stake and much more. All this is done on decentralized platforms built on blockchains. For example, I mentioned the UNISWAP platform above - this is a decentralized platform where you can at least exchange funds, and your money does not fall into the hands of third parties. In fact, you can do more on it than just the exchange, but that's not now.

I understand that one small article cannot contain the completeness of the concept of what a crypt is. Since each area has tons of information, like trading, many books have been written on it. There are also books on DeFi that can't fit in an article. Therefore, this was an introductory article about the crypt, I have not said much yet, but with further publications of my articles, you will realize more and more. And when I form all my dozens, maybe hundreds of articles and tell you that you know everything or almost everything about the crypt and are able to become a confident market participant, only then will you be able to understand what a crypt is to the fullest. This is a concept that cannot be fully described in two lines, as I did at the very beginning. I wrote a generalized value, but under it the depths of the world's oceans are hidden, so I will be glad to write the next article for you.