6 Types of Crypto Assets You Need to Know About

6 Types of Crypto Assets You Need to Know About

The cryptocurrency world is full of jargon; acronyms and futuristic words that could be straight out of the latest sci-fi flick.
Along with cryptocurrencies lik After the launch of Codefi today both Zcash (ZEC) and Dash, two of the best-known privacy coins, have partnered with Chainalysis. Bitcoin sideways trading has entered the new week after dominating the weekend session. It has become unviable to attempt a breakout above $10,000 because the I had the pleasure to attend some sessions from the Mainnet 2020 event last week. Ryan Selkis`s guitar playing as an alternative signal to wrap up the talk or the panel, was one of my favorites. Efi Pylarinou is the founder of Efi Pylarinou Advisory and a Fintech/Blockchain influencer – No.3 influencer in the finance sector […]

The cryptocurrency world is full of jargon; acronyms and futuristic words that could be straight out of the latest sci-fi flick.

Along with cryptocurrencies like Bitcoin and Litecoin, there are many other different types of crypto assets that can be found on the blockchain:

As the name suggests, stablecoins are designed for stability. These are cryptocurrencies that are directly pegged to real-world assets. These assets could be precious metals like gold, oil, or silver, or national currencies like the dollar and euro. Regardless of the asset, the value of each individual stablecoin aims to remain the same as the asset it represents: A dollar-backed stablecoin, for example, should be worth one dollar.

By tapping into the relative stability of real-world assets, stablecoins are designed to bring consistency to the cryptocurrency ecosystem. When volatility hits, traders can quickly swap cryptocurrencies back to a stable currency without the bother of converting to fiat.

Although most people refer to Ethereum as a cryptocurrency, the actual currency powering the Ethereum network is called Ether. As a currency, Ether lets users pay for processing power to run smart contracts on the network, or buy products and services within Ethereum like ICO tokens.

As a blockchain platform, Ethereum is designed to run smart contracts that form the infrastructure for a range of projects, like Microsoft’s Ethereum on Azure, and the Amazon Web Services blockchain framework.

Newcomers to Bitcoin often mistakenly think that transactions with the cryptocurrency are private. But, Bitcoin only offers pseudonymity rather than anonymity. All Bitcoin transactions are recorded on a public ledger under a code that can be traced back to a real-world identity with a little detective work.

>> Why Goldman Sachs is Wrong About Bitcoin

Anonymous cryptocurrencies—like ZCash and Monero—aim to provide all the benefits of Bitcoin in a completely private package. This means that, theoretically, no record is kept of the transaction.

Basic Attention Token (BAT) is an example of another category of cryptocurrencies: Utility Tokens. These cryptocurrencies aim to fulfill a specific need within a blockchain platform.

Unlike security tokens, utility tokens are not intended as an investment. Instead, they are more similar to a coupon offered by a store to be used specifically for their products, or a pre-ordered token that promises access to a service that is still in development. BAT, for example, is used as payment within the Brave Browser.

Similar to stablecoins, tokenized assets are digital representations of real-world assets on the blockchain.

These tokens represent ownership of the underlying asset. If the asset was an apartment, for example, each token might represent a room. Ownership rights to that specific room would be written into the token smart contract, and the tokens can then be traded on a crypto exchange.

This has the advantage of providing liquidity, making it easier to trade traditionally illiquid assets like real estate, and also immutability, with the blockchain guaranteeing that ownership information cannot be easily changed.

Security tokens are traditional securities, transposed to the blockchain. Just like ordinary shares, these represent the purchase of a small percentage of a company and might pay holders a share of the company profits, and confer certain rights—like the ability to vote on the future direction of the company.

Unlike Initial Coin Offerings, which are unregistered, security tokens should be fully compliant with SEC regulations.

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Source: bitcoinslate.com

Author: admin


Zcash and Dash at risk for privacy?

Zcash and Dash at risk for privacy?

Today both Zcash (ZEC) and Dash, two of the best-known privacy coins, have partnered with Chainalysis.

By the way, after the launch of Codefi today, which allows tracking transactions with the well-known KYT (Know Your Transaction), the community went wild and realized that this tool may also track crypto assets that are privacy-focused, such as Zcash and Dash.

The position of the Electric Coin Company (EEC), however, is very clear and explains how shielded transactions will not be tracked by Chainalysis because, due to their anonymous nature, they cannot be traced.

The Dash crypto offers an optional solution, the PrivateSend no-fee, which allows to mix transactions and then blur them.

This is a feature that the user can decide to use or not, which is not set by default.

A similar argument can be made with the Zcash (ZEC) blockchain which gives the possibility to carry out normal, partially shielded and fully shielded transactions, so only those who use fully shielded transactions would be safe from tracking systems.

In any case, the data related to Zcash are encouraging and play in favour of this blockchain which has recently seen a 70% increase in shielded transactions, although criticism is not slow to come from users such as Whale Panda and Riccardo Spagni from Monero who have harshly criticized the Zcash blockchain for having paid the exchanges to list ZEC.

Certainly Monero (XMR) is one of the crypto assets that guarantee a high level of privacy for making transactions protected from prying eyes.

Lastly, to overcome privacy problems, it is also possible to always use a different address or use transaction mixer systems such as Wasabi, which is so reliable that even Europol had to intervene to check its work.

Source: en.cryptonomist.ch

Author: By Alfredo de Candia
– 9 Jun 2020


Cryptocurrencies Price Prediction: Bitcoin, IOTA & EOS – European Wrap 8 June

Cryptocurrencies Price Prediction: Bitcoin, IOTA & EOS – European Wrap 8 June

Bitcoin sideways trading has entered the new week after dominating the weekend session. It has become unviable to attempt a breakout above $10,000 because the last two spikes resulted in extreme dips. For now, Bitcoin has broken the weekend consolidation range at $9,700 and is teetering at $9,674. On the upside, I anticipate resistance at $9,800 and $10,000 respectively.

IOTA is the 24th largest digital asset with the current market value of $665 million and an average daily trading volume of $15 million. The coin is changing hands at $0.2380, mostly unchanged both on a day-to-day basis and since the beginning of Monday. Currently, the coin is moving within a short-term bearish bias within a tight range.

EOS is changing hands at $2.77, down 1.4% since the start of the day. The coin takes the 9th place in the global cryptocurrency rating with the current market value of $2.6 billion and an average daily trading volume of $2.0 billion.

Source: elevenews.com

Author: Published 1 day ago


Ten highlights from Mainnet2020 by Messari

Ten highlights from Mainnet2020 by Messari

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I had the pleasure to attend some sessions from the Mainnet 2020 event last week. Ryan Selkis`s guitar playing as an alternative signal to wrap up the talk or the panel, was one of my favorites.

Efi Pylarinou is the founder of Efi Pylarinou Advisory and a Fintech/Blockchain influencer – No.3 influencer in the finance sector by Refinitiv Global Social Media 2019.

Messari, looks like a data, news, research business in the cryptocurrency, blockchain space. But what is not evident (yet) to everyone is their vision and how they are executing on it. They are very much focused on Transparency and an open-source approach. Ryan said Messari wants to become the Edgar in the new economy.

EDGAR is the Electronic Data Gathering, Analysis, and Retrieval system used at the U.S. Securities and Exchange Commission (SEC).

The Messari Disclosures Registry has been launched already. It is an open source disclosure database that aims to become a central repository for project information, freely accessible.

Messari is API centric because the vision is to become an enabler for different players in the new economy to build tools, analyze and educate through the Messari APIs.

My Ten highlights from 4 hours of attending Mainnet2020

1-One of the top objections to cryptocurrencies – volatility – got taken care of from COVID19.

2- On top of that, in this no-yield macro-environment, another objection got taken care of. And the Irony is that staking is on the rise and we are moving towards POS (proof-of-stake) as a preferred consensus mechanisms. Staking grew 1300% in 1.5 years.

3- Stablecoins may seem at first site just an alternative to digital payments. They are actually much more. Their use case is relevant to advertising and to e-commerce.

Also, if we look 5-10yrs into the future, there will be no fees in digital payments. So, what is the business model of the Transferwise`s of the world? Digital payments will no escape the zero-fee spiral.

5- The digital assets space continues to receive endorsements and oppositions; and this will not change soon. The wealth management division of Goldman Sachs put out a presentation that advised clients to avoid Bitcoin in their portfolio holdings. Cryptocurrencies are not an asset class.

At the same time, Rentech (the hedge fund that continues to be able to charge 4/40) is stepping into Bitcoin futures; coupled with the endorsement of billionaire Paul Jones who publicly stated allocating 1% of his wealth.

6- Ark Invest, the first publicly traded ETF that allocated to Bitcoin early on, is launching a private alternative offering dedicated to cryptocurrencies. Their investment thesis is that a few cryptocurrencies will capture the majority of value.

7- Paxos is a regulated financial institution, unlike other issuers of stablecoins. PAX, is their own USD backed stablecoin that is self-regulated. Paxos wants to be enabler for others to issue stablecoins. Binance has chosen them for their own stablecoin.

8 – The smart contract market is very crowded. The current reality is that blockchain projects are competing for developers and users.

9- The Bitcoin blockchain is being continuously improved to make sure that it remains robust. The philosophy is that is should become a very simple base chain, so that it is very robust. So, that means minimizing what is on chain.

10 – And I have to finish with the reason that Market Capitalization of cryptocurrencies is NOT a reliable measure these days. Several speakers agreed on this and called for more transparency in the block creation process. There is a need to audit the ledger because in many blockchain the block creation is an opaque process.

Notes

EDGAR is the primary system for submissions by companies and others who are required by law to file information with the SEC. 

Containing millions of company and individual filings, EDGAR benefits investors, corporations, and the U.S. economy overall by increasing the efficiency, transparency, and fairness of the securities markets. The system processes about 3,000 filings per day, serves up 3,000 terabytes of data to the public annually, and accommodates 40,000 new filers per year on average.

EDGAR® and EDGARLink® are registered trademarks of the SEC.

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Source: dailyfintech.com

Author: Efi Pylarinou


6 Types of Crypto Assets You Need to Know About


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