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CONSENSUS MECHANISMS - PoW vs PoS Hey, Alkalites! If you want to invest in cryptocurrencies and know how to recognize long-term opportunities, you should start learning the technology behind them. Do you know what a consensus mechanism is? Consensus decision-making is a process in which group members agree to support a decision in the best interest of the whole. In other words, this mechanism is used to govern the blockchain behind each asset. Usually, this consensus is necessary to confirm the validity of the transactions that take place in that network. The most common consensus mechanisms are PoW (Proof of Work) and PoS (Proof of Stake). PoW is used to determine how the network can be sure that the transaction is valid and that someone is not corrupting the network, for example, with double-spending. The Proof of Work is based on advanced mathematical formulas called “cryptography”. That is why the name "cryptocurrency" was invented. All miners compete looking for a solution to the mathematical problem. The first miner (or pool of miners) to solve the block problem receives a reward, the block is created and transactions are included. Examples are BTC and ETH. PoS uses a process by which contributors to the system earn commissions from transactions. To validate the transactions, the user must put their coins in a wallet that freezes the coins. The more you stake, the more you earn. If someone tried to hack the network or process malicious transactions, he would lose all of his participation, since it would affect the integrity of his wallet. Also, it encourages holding the tokens, which is good for the value. Examples are Algorand and Cardano. Do you have any question? Let me know! Have a great Sunday, Alkalites!
COINBASE:BTCUSDEducation
by CryptoAlkaline
3
Deep dive: Proof of Work v/s Proof of Stake v/s Proof of HistoryIf you find the analysis useful, please like and share our ideas with the community. Any feedback and suggestions would help in further improving the analysis! Today, we thought we would explore the different consensus mechanisms that form the backbone of the underlying Blockchain technology. We have attempted to briefly cover the following: Proof of Work Proof of Stake Proof of History These are consensus mechanisms that validate the transactions on the Blockchain. Each of these mechanisms work differently. These differences result in different transaction speed, fees and efficiency. In order to discuss these 3 mechanisms, we have used three different cryptocurrencies corresponding to the mechanism they follow. Bitcoin → Proof of Work Cardano → Proof of Stake Solana → Proof of History Proof of work: Transactions need to be verified on the network and this verification is done via solving complex mathematical problems, called cryptography. The digital currencies therefore came to be known as ‘Cryptocurrencies.’ It was described in the original whitepaper by Satoshi Nakamoto, Verifiers, also known as miners are rewarded for participating and validating the network transactions. This was considered a game-changer when it emerged in the original whitepaper by the pseudonymous Satoshi Nakamoto. The idea existed earlier than the publication in the white paper and was known as the Nakamoto consensus. According to Satoshi Nakomoto, “the longest chain not only serves as proof of the sequence of events witnessed, but proof that it came from the largest pool of CPU power.” However, there are several drawbacks to this mechanism. It uses huge amounts of electricity, and emits significantly large amounts of carbon into the environment. Another major drawback is that transactions are slow and inefficient on a large scale. It limits the scalability of the Proof of Work mechanism to mainstream finance. Proof of Stake: It came into existence in 2012 after its founders pointed out the inefficiencies of the Proof of work mechanism. In blockchains that use proof-of-stake, nodes in the network engage in validating blocks, rather than allocating their computing resources to “mine” them. Within these networks, security and consensus is achieved by participants committing a stake — their private or collective capital — to the enterprise in the form of the network’s native tokens. Ether (ETH) has been indicating to move away from the energy draining proof-of-work mechanism to the energy efficient proof-of-stake for quite some time. Proof of history: Proof of History is a sequence of computation that can provide a way to cryptographically verify passage of time between two events. As per official newsletter of Solana Labs, “the Proof of History solution was presented by the Solana project in order to finally eliminate an issue of the validity of timestamps in distributed networks. Unlike using the established method with timestamps, one can make certain that the action is performed at a distinct point in time after one action, but before another. Through Proof of History, we can ensure that a certain action took place at a certain point in time, before or after another action. This is made possible without the use of timestamps or external synchronizing structures. Confirmation of history is a high-frequency verifiable delay function. This means that the function requires a sequence of steps in order to obtain and evaluate the uniqueness and reliability of the published value. Solana’s implementation executes the function that uses a sequential hash system that is resistant to pre-images (images of previously prepared hashes). Thus, the output of the transaction appears as the input of the subsequent transaction. Subsequently, the current counter, status, and output are periodically recorded. The clear advantages are scalability and the eradication of the timestamps validity problem. At the moment, it is rather difficult to single out the obvious shortcomings of the protocol due to the novelty of this solution.” Please note: This post is not a recommendation to buy/sell any particular crypto. The technology surrounding each of the above three cryptos are different. There is continuous advancement happening in this space. Interesting things are continuously happening in the crypto space. ---------------------------------------------------------------------------------------- Keep supporting:) -Mudrex
BITSTAMP:BTCUSDEducation
by Mudrex
9
Watch this major support level on Ethereum to see if it holdsETH has been getting absolutely crushed this week, both in dollar terms and in Bitcoin terms. As you can see, ETHUSD is now testing whether it can hold the 200 EMA, which in my experience is a really key support level. If ETHUSD can't hold this level, then the next stop is about 1440, with additional supports at 1115 and 730. The Ethereum/Bitcoin ratio is also testing a key support at the 50 EMA: Ethereum has strongly outperformed Bitcoin this year partly because there was a bit of a speculative bubble in ETH-based coins traded on Uniswap, and partly because ETH is expected to go proof-of-stake before the end of the year. The proof-of-stake merge would make Ethereum dramatically more environmentally friendly and would dramatically reduce transaction fees. Bitcoin has (rightly) been getting lots of bad publicity because of how horrible the proof-of-work consensus mechanism is for the environment. Bitcoin basically destroys the planet by design, and personally I think the sooner it gets utterly trounced by the competition and utterly wiped from the face of our polluted planet, the better it will be for everyone. Even Elon Musk has recently come around to how awful Bitcoin is for the environment (although I suspect his motives in denouncing Bitcoin really had less to do with environmental impact than with the hole that Bitcoin left in Tesla's balance sheet because Tesla can't book Bitcoin as profit). We're seeing a significant regression to the mean right now, though, with Bitcoin greatly outperforming ETH. The "cryptocrash" has of course been driven by the Chinese government's crackdown on cryptocurrencies and by the US government's efforts to impose regulatory oversight on the market. A trillion dollars of crypto market cap were wiped out this week. The news is bad enough and crypto is overvalued enough that I suspect ETH ultimately won't hold its 200 EMA support here, though we're likely to get a short-term bounce. We may see a prolonged period of weakness in crypto as traders wait to see how the regulatory crackdowns shake out, but we won't see the same rapid downward momentum we did this week. ETH is likely to return to strength against Bitcoin, however, as the ETH2 proof-of-stake merge progresses. Bitcoin will eventually die of a terminal failure to innovate. I also expect that Cardano will continue to outperform Bitcoin, and possibly also ETH. Cardano is already proof-of-stake, and like ETH, it has a lively developer community. Cardano was created by academics and has been the subject of something like a hundred whitepapers. The Cardano community has raised several rounds of funding for development, the most recent in excess of a million dollars. Most alts will eventually go to zero, but Cardano is robust enough that I think it has a real chance of challenging the market leaders. Another coin I'm keeping an eye on is Nano. Nano is a feeless proof-of-stake coin with extremely fast speeds and extremely low energy demands. However, the Nano network operates on a completely volunteer basis, with no compensation for running a node. This is the coin you invest in if you're optimistic about the human race, and you believe that people will do work without getting paid. Nano has recently struggled because its volunteer network isn't robust enough and has been getting shut down by a barrage of spam. The cryptocrash has reduced crypto's market cap from about $2 trillion to about $1 trillion. Ultimately I think that's still way too high a valuation for what is basically a glorified wire transfer service. But the crypto hype isn't over yet, and we will almost certainly see some strong rallies later this year as the technologies continue to progress. I do think it's time to be very selective about which coins to buy, though, because the technology is maturing and we're seeing the emergence of clear technological and market leaders, and the coins that experience the worst government crackdowns moving forward from here will be the ones with the largest environmental costs.
BITSTAMP:ETHUSD
by ChristopherCarrollSmith
100
FTM: Cycle-End Target $28The $28 is a special Fib-confluence I found and it coincides interestingly enough with the slope of the trendline that FTM has found itself bumping along the entirety of the bull market. The tentative end-cycle macro top will be in late September which would meet our $28 target for FTM. On the Fundamental side, this coincides with a justification of the TA - FTM is growing its network exponentially. Their transactional growth of 3 million to 10 million in a matter of 2 weeks in unfathomable. Nothing is growing this fast - governments are adopting FTM left and right and ETH volume is shifting over to FTM as it is basically feeless and instantaneous.
Long
by ich1baN
14
MATIC Fundamentals + Bull Flag Play - PT $1.50Recently, energy has been cited as a concern for cryptocurrencies (IMO just FUD, but it only matters what people think), and Proof of Stake networks like ADA are in the spotlight for being eco-friendly. MATIC is just as eco friendly, being proof of stake, while supporting smart contracts along with a bit of ETH's network effect as a result of being a sidechain (AAVE, 1inch). MATIC could benefit from this out of the blue concern for the environment with respect to cryptocurrencies, as well as being a nice preview of ETH2. Additionally, a nice clean bull flag has practically confirmed on MATIC with a price target of $1.53. MATICETH has been moving up in surges recently, and this could be another leg up.
MLong
by Slip1244
3
Tezos - another proof of stakesezos is a blockchain network that’s based on smart contracts, in a way that’s not too dissimilar to Ethereum. However, there’s a big difference: Tezos aims to offer infrastructure that is more advanced — meaning it can evolve and improve over time without there ever being a danger of a hard fork. This is something that both Bitcoin and Ethereum have suffered since they were created. People who hold XTZ can vote on proposals for protocol upgrades that have been put forward by Tezos developers. Tezos XTZ Rank #30 Coin On 170,492 watchlists Tezos Price (XTZ) $6.14
Long
by doqstrader
Big Forecast For Ethereum for AutumnYesterday, ETH confidently broke through the resistance at $440 and quickly headed up. Its price reached $488, and is now consolidating at around $ 470. After a two-week correction, we saw explosive growth, and there are serious fundamental prerequisites for this - the hype around DeFi. A similar situation with Ethereum was in 2017 during the ICO bubble. Its price rose almost non-stop. Both of these situations are very similar. In this regard, Ethereum has a good chance of showing new large- scale growth. If you look at the ETH chart in 2020, you can see 3 uptrends. The first was in January-February 2020, the second - from March to May, and the third began in mid-July which continues to this day. Moreover, the last uptrend is much stronger if you look at the structure of the candlesticks. Therefore, getting into a long-term short now can be extremely risky, we know that it is likely to stay with the trend. In the coming days, we will likely see a short sideways trend and a slight correction in the region of $440 - $450. After that, the new target for the coin will be at the $500 level. If it breaks out, the price will go straight to the $600 mark. The endpoint should be at the $750 - $800 range. We expect these goals by the end of November. Why don't we believe in $1,000 ETH now? All because of the notorious scalability of the network, which practically hasn't changed for the better since 2017. Commissions are already at $19, and this is incredibly huge for cryptocurrencies. Also, in November, a transition to the PoS algorithm is expected, which could trigger a price drop. It should be understood that even a successful transition within the specified time frame will not allow an immediate increase in scalability and a large number of new problems may appear due to a large number of projects on the platform. Another option is that the transition to PoS will not take place in November, which will also provoke a fall. DeFi's explosive growth now takes little into account, concerning the current state of the Ethereum platform. Everyone is already beginning to hope that the transition to PoS will be a salvation for such projects. However, we have already been convinced that the general opinion can be deceiving. Let's see where the price will be for the winter.
Long
by Crypterium_Analytics
2
Will the Ethereum go to correction?Yesterday, at 13.00 UTC, the Ethereum test network switched to the PoS algorithm. This event was expected for several months. However, the market reacted very calmly. Ethereum's price remained at around $390. Now ETH has entered a phase of consolidation, which was badly needed after growing by 50% over the past 10 days. However, we have not yet seen a real correction of the current growth. The short squeeze that occurred on August 2 cannot be taken as a full-fledged correction. Because of this, our expectations is short in the near future. We expect to see a price of around $320. Only after that, it will be possible to talk about further growth. Now, according to most indicators (such as RSI, STOCHASTIC), Ethereum is in the overbought zone.
COINBASE:ETHUSDShort
by Crypterium_Analytics
2
Ethereum. It's time to sellToday, the Ethereum test network is to be switched to the PoS algorithm. In this regard, high volatility is expected. 1. We see that a rising wedge has formed on the chart, which usually signals a further decline. 2. In addition, we see that the RSI and Stochastic indicators are in the overbought zone. 3. MACD also shows signs of a trend reversal. All of this is perfectly in line with the well-known proverb: Buy on rumors, sell on the news. Therefore, we expect a decline of at least 0.032 BTC per coin.
Short
by Crypterium_Analytics
Ethereum Macro iH&S + Fundamental DriversEthereum looks to be retesting a key level at around $230, coincidently this is the neckline of a macro inverse head and shoulders. BTC pair also looking particularly strong and dominance looks like it will continue to be strong as the altcoin markets slowly wakes up. Fundamentally, Ethereum is transitioning to a Proof of Stake (PoS) protocol over the course of the next year which will ad further deflationary pressure to network due to staking. As hyperinflation sets in and negative interest rate proposals continue to be discussed as a legitimate resolution, cryptocurrency and open finance will the be lifeboat for a new generaation of savers. Decentralised Finance (DeFi) protocols will continue to provide attractive yield opportunities which traditional banking will not be able to compete with. Wether Bitcoin maximalists want to believe it or not, a new wave of adoption will come through the gates of Ethereum and it will make the ICO boom of 2017 look like childs play. The Age of the Ether is here.
COINBASE:ETHUSDLong
by TheETHWhisperer
Cardano (ADA) Analysis & News Today, nearly a decade after Bitcoin’s controversial emergence, the world is taking a closer look at exactly how to regulate digital currencies. Governments want to protect their citizens and of course, maintain the integrity of their own economic systems. They implore the world to wait to buy into digital currency until the market has stabilized and more research has been done. One platform has stepped up to the plate doing their homework, researching the past, coming to a consensus and claiming to have found the key to serving regulators, marketers, and consumers while furthering the development of blockchain technology. According to their white paper, their method includes “learning from the nearly 1,000 altcoins by embracing features that make sense.” At the moment market cap for this coin is $8,957,673,236 USD and on Coin Market Cap it holds the 7th rank. Just today IOHK tweeted about Cardano’s influence on the potential for blockchain technology to emerge in Africa. This news comes just 3 days after the announcement of a Memorandum of Understanding between Cardano and the Ethiopian government covering how “Ethiopian developers (will) apply blockchain technology to the country’s agritech industry.” Trading on the 1-Day chart ADA is sitting between horizontal support and resistance well above the .618 after wicking through a couple significant resistance lines a few days ago. Volume has begun to taper off across this chart however on the 4-hour chart price action looks likely to remain above the cluster of support seen just below its last low. This could indicate a bull movement is about to happen, potentially reaching that yellow resistance again within a week or two with the potential to break through if positive news keeps rolling out from Cardano.
Long
by theJadeCrow
Cup and Handle on POA networkPOA network is one of the coins I am post passionate about. Also, I believe will do really well during this next altcoin rally. POA token is attractive to investors because they are a platform token with a brand new consensus mechanism, Proof of Authority. Proof of Authority, or POA puts identity up at stake instead of holdings. since everybody has only one identity, POA is very decentralized when it comes to their validators. Since other platform tokens with old consensus methods are evaluated in the billions, I believe there is huge potential for POA. Yesterdays volume was the most since the coin ICO. Since the coin went to the upside, I think this is a big indication of a rally. Also, POA is holding its short term gains very well, which shows investors are not eager to sell anytime soon. A cup has formed after yesterdays rally and i believe a handle too. The Project idea, the Volume, and the teacup pattern all indicate signs of a rally soon. I am hodling POA token for the altcoin rally, lets see where this ride takes us!
PLong
by CryptoColm