Ethereum (ETH)
Launched in July 2015 by Vitalik Buterin, a Russian-Canadian cryptographer, Ethereum is a distributed computing platform capable of executing smart contracts written in Solidity coding language. Many decentralized applications (dApps) utilize the Ethereum platform to deploy and run their project code.
The migration to Ethereum 2.0 is expected to scale the capabilities of the platform and may allow Ethereum to reliably handle over 100,000 transactions per second, far surpassing the capabilities of large centralized payment networks and truly realizing the vision of a world computer.
The migration to Ethereum 2.0 is expected to scale the capabilities of the platform and may allow Ethereum to reliably handle over 100,000 transactions per second, far surpassing the capabilities of large centralized payment networks and truly realizing the vision of a world computer.
Stable Coins
As ether (ETH) is by nature, an expendable gas created to manage Ethereum network resources, there is significant demand for stable stores-of-value to save, lend, and transact within the Ethereum ecosystem. The first solutions were ‘stable coins,' which focus on pegging a token's value to a fiat currency or commodity and design centralized systems to minimize volatility (USDT).
Companies such as Circle (USDC) and Tether (USDT) have leveraged the Ethereum network to create centralized stable coins. These companies retain total control over use of their tokens, including the ability to freeze / blacklist illegal assets.
For a decentralized stable coin to function, a large on-chain collateral source must exist to back the liquid stable coin supply. MakerDAO currently utilizes ether (ETH) and other cryptocurrencies as collateral sources for creating DAI, which is pegged to the US dollar. Other projects such as Synthetix work similarly to create USD stable coins.
Learn how to earn rewards keeping stable coins stable.
Companies such as Circle (USDC) and Tether (USDT) have leveraged the Ethereum network to create centralized stable coins. These companies retain total control over use of their tokens, including the ability to freeze / blacklist illegal assets.
For a decentralized stable coin to function, a large on-chain collateral source must exist to back the liquid stable coin supply. MakerDAO currently utilizes ether (ETH) and other cryptocurrencies as collateral sources for creating DAI, which is pegged to the US dollar. Other projects such as Synthetix work similarly to create USD stable coins.
Learn how to earn rewards keeping stable coins stable.
DAO / Dapp Equity
A decentralized autonomous organization (DAO) is a new type of entity run entirely via rules encoded onto a blockchain. Essentially a system of modular 'smart contracts' containing program rules are publicly available for any able user to analyze and test on their own.
DAOs run with zero down-time. By existing solely as code on the blockchain, these organizations significantly reduce operating costs, increase visibility, and are open for business 24/7 in any jurisdiction. In the future it may even be possible for DAOs to interact with each other in order to conduct trade, a vision of the Internet of Things (IoT). Another main advantage of commerce via smart contract is removing the need for a bilaterally-accepted, trusted third party in transactions of any kind.
DAOs run with zero down-time. By existing solely as code on the blockchain, these organizations significantly reduce operating costs, increase visibility, and are open for business 24/7 in any jurisdiction. In the future it may even be possible for DAOs to interact with each other in order to conduct trade, a vision of the Internet of Things (IoT). Another main advantage of commerce via smart contract is removing the need for a bilaterally-accepted, trusted third party in transactions of any kind.
Identity, NFTs & Virtual Worlds
Civic is a bitcoin wallet which also offers a promising solution for securely verifying real-world identities for on-chain activity. By securely uploading, verifying, and storing government ID documents within the Civic Network, users can than confirm various personal attributes without revealing all their personal identifiable information. For instance, an automated vending machine could utilize the Civic Network to confirm a user is above legal drinking age before disbursing alcohol. There is also the potential to upload vaccine documentation to confirm vaccinations needed for large event attendance in the future. Perhaps certain zones of virtual worlds may require age-verification via Civic in the future.
Decentraland is a virtual world built on Ethereum which is owned by its users / communities and is built upon the MANA cryptocurrency and LAND ownership. Decentraland is already beginning to support economies within its ecosystem. Examples include various gambling DAOs and Atari launching its own ERC-20 token which can be utilized within Decentraland along with Decentraland's native currency MANA. Non-fungible tokens (NFTs) are also adding to the virtual world's beauty and allure.
MakersPlace is an on-chain art marketplace for creators and collectors to display and trade NFT artworks. Each artwork is backed by a unique ERC-721 token which validates its scarcity and ownership history. Once an NFT is owned within the MakersPlace contract, owners have the ability to display it in virtual worlds within Ethereum.
Decentraland is a virtual world built on Ethereum which is owned by its users / communities and is built upon the MANA cryptocurrency and LAND ownership. Decentraland is already beginning to support economies within its ecosystem. Examples include various gambling DAOs and Atari launching its own ERC-20 token which can be utilized within Decentraland along with Decentraland's native currency MANA. Non-fungible tokens (NFTs) are also adding to the virtual world's beauty and allure.
MakersPlace is an on-chain art marketplace for creators and collectors to display and trade NFT artworks. Each artwork is backed by a unique ERC-721 token which validates its scarcity and ownership history. Once an NFT is owned within the MakersPlace contract, owners have the ability to display it in virtual worlds within Ethereum.
Inter-blockchain Liquidity
Projects such as Ren Protocol are bringing other cryptocurrencies such as bitcoin and zcash onto Ethereum via custodial bridges. By sending crypto to the project's wallet, users can receive place-holder tokens on the Ethereum blockchain (i.e renBTC for BTC and renZEC for ZEC). Ren has the potential to offer other store-of-value protocols, such as Bitcoin, a decentralized gateway into the world of 'yield farming' powered by Ethereum.
The Ren Protocol is supported by a network of darknodes which will gradually take over full responsibility of network functionality. To setup and run a Ren darknode, a user must acquire 100,000 REN and run an instance of the networks software. As a reward for locking up capital and running network software, darknode holders receive pro rata shares of fees generated from network use, collected in the native cryptocurrencies transacted.
The Ren Protocol is supported by a network of darknodes which will gradually take over full responsibility of network functionality. To setup and run a Ren darknode, a user must acquire 100,000 REN and run an instance of the networks software. As a reward for locking up capital and running network software, darknode holders receive pro rata shares of fees generated from network use, collected in the native cryptocurrencies transacted.
Ready to learn how all this collateral is utilized in yield farming?