Start investing now! 5 ethically correct investment applications for you

Investing is inevitably the wisest way to take advantage of the extra money. Even a small amount of money can gradually generate a lot of wealth for you after the maturity period and increase your net worth. So, never miss an opportunity to invest your cash in successful investments and today, with mobile technology, you can start investing instantly. There are many investment applications that get higher returns with lower savings in ethically correct ways. In addition, many applications grow from the gross concepts of finance, trading, and the stock market and help interested investors engage in real stock market investments.

Here is a list of few popular and early investment applications for traders and investors of the new era and of course ordinary people to start increasing their wealth portfolios.

Robin Hood

If there is one app that allows users to start getting involved in the investment game with the need for a lot of money, then it is Robinhood. With it, users can buy and trade US listed stocks as well as ETFs without paying any commission. So it’s very different and better than any other stock broker that charges $ 10 for every purchase.


In addition to an investment app, Stash offers an educational guide for beginners on how to save money tactfully for higher returns. It provides a rulebook to users on how to improve and manage their wealth portfolio. Fractional stocks, minimum account balances, and value-based investments are some of its key features.


Aglas is the best option for those who want to contribute regularly instead of one-off investments. Users only need to link their debit or credit cards and round each transaction to the next dollar and reverse the “spare exchange”. Spend the most profitable and well-managed ETF portfolios. Fees for the account are also minimal, that is, $ 1 per month for a balance of less than $ 5,000. So acorns help you save a lot with a small amount of dollars and sometimes with a fraction of a dollar.


It comes with a unique approach to make stock market players eager to buy and sell stocks. Users can purchase fractional shares of any listed organization or company through the app. With no monthly charges, it offers 1000 investment options that include ETFs and individual stocks. Specially designed to encourage younger people to get involved in the stock market game, Stockpile facilitates the gift of stock and the transfer of stock basket to the account of others.

M1 Finance

One of the great apps that allows beginners to create a portfolio to start trading for free. Users can create and maintain an active portfolio of both stocks and ETFs. While users can create a diversified portfolio or a “custom pie” on their own through M1 Finance, they can also get fractional shares with it.

Conventionally, to engage in investments you need a broker or at least a financial advisor who prudently invests your hard-earned money. So nothing is better than having one of these apps that offer a consistent approach to investing and trading stocks with or without minimum commissions.

If you are interested in the app business, try coming up with an investment app idea that will help beginners, adults, and retirees wisely allocate their cash flow and grow wealth over time.

Nano Coin compared to Nexty Coin – Crypto

Nano and Nexty: Are These Real and Practical Cash Alternatives? Let’s find out!

Blockchain is no longer a modern geek talk! Bitcoin revolutionized the way many of us saw currencies, ledgers, fund transfers and transactions. The beauty of all virtual currencies is that almost every one of them tries to solve a problem. And this is where our currency of interest, Nexty, comes into play. During the writing, the similarity of the Nexty platform with Nano – XRB will be compared to get a better understanding of this platform.

In very simple terms, the Nexty platform is presented as a transaction system that will eliminate the concept of transaction fee while ensuring ultra-fast transfers to facilitate its users. Apart from that, transfers are ultra fast because transactions do not require miners to make a confirmation as in the case of other virtual currencies like Bitcoin and so on.

However, according to the white paper published by the creators of Nexty, the main use of Nexty is intended for start-up e-commerce companies to help generate public funding. Because there are no transactions, ultra-fast transfer (2 seconds! And that’s pretty much real-time) and commission confirmation, fundraising will be less complicated. The currency is surgically targeted at e-commerce stores because this will cultivate an ecosystem where these stores will accept NTY coins from shoppers.

The concept behind NTY makes daily online operations a fluid experience. The team behind NTY is made up of Blockchain developers and established vendors. Some of the team members have ten to 12 years of experience in full stack development and marketing.

Some of you might argue that Nano, formerly known as Railblocks, XRB, already does the same functions as NTY. The XRB currency is a bit unique because it uses its patented block lattice data structures. That’s why each Nano account has its own blockchain that reduces latency for a fast transfer. Other than that, the XRB is efficient in power and resources and does not need a high-end GPU system for executing transactions. However, Nano does not include a smart contract capability. Smart contracts are meant to exchange activators for any crypto currency. These contracts help to exchange funds, real estate, shares or any tangible or intangible entity of financial value. Smart contracts also eliminate the need for brokers as they lead our cryptography to seamless asset exchange. Apart from this difference, NTV and XRB (Nano) are more or less identical. Another important capability of the Nexty platform is its integration with existing e-commerce applications such as Joomla. According to NTY developers, the integration takes a maximum of 3 to 4 hours.

In order to strike a balance between NTY demand and supply, the platform includes an integrated smart staking program. This program offers bonuses and credits for buying, selling and owning Nexty. The system is designed for investors and everyday users at the same time.

The capacity of the Nexty and Nano platforms is huge. Imagine a world where cryptography replaces conventional wallets and transactions are fast! For example, if a merchant accepts BitCoin, they may not transfer the goods and service to you until the transaction is confirmed by a number of minors. And now re-imagine the payment for goods and services using a currency that is quickly transferred with zero transaction fees independent of any minor verification.

5 Interesting Trends to See Mobile Apps: The Next Big Thing?

More than half a year passed in 2016 and tweets, assumptions, research (even at Gartner are not spared) on the lively topic of mobile app development trends had their rumors and speculations almost perfect . Saying, what trends will come out and what won’t! How many trials landed?

Well, the laser dots of beginners we do not talk about here, but according to developers and expert opinions, we have reduced the most interesting and unexpected trends that are always moving in unpredictable lines. Let’s take a look:

Mobile application development trends Developers should consider:

• Mobile applications for on-demand delivery:

Uber’s business model has driven a surge in demand and has begun to gain strength in the mobile apps landscape. Whether it’s the food industry, daily travel and commuting, health, beauty, or service booking, on-demand delivery applications have taken center stage.

• Smart devices to master:

Although the market for smart watches and portable fitness equipment has been low in recent months, but the rate of adoption of portable devices in the market is much higher than predicted by experts a few years ago and we believe they are a novelty and that will definitely capture the people who know what to use them for. The biggest advantage of this segment that developers have is that portable devices have plenty of room for improvisation and this trend will definitely not fade.

• Switch to mobile application security:

Data is the golden dollar that, when lost, can lead to vulnerabilities. Developers should adopt the latest security practices and take strict measures to protect their application infrastructure and data. If we look back, iOS has always been a platform that has been recognized to provide maximum security to your applications without leaking confidential customer information and this is probably why it is considered one of the smartest and gadgets which companies charge. a very high price on their phones.

• World domination IoT (Internet of Things) continues:

We haven’t been far from hearing the concept of smart car, more or less, devices like Apple Watch and Google Glass have shown that the Internet of Things will include more opportunities to add advanced features to mobile apps. With rapid market penetration of IoT applications and portable devices, IoT will take mobility to the next level in the coming months.

• Be attached to the design of materials:

Last but not least, materials design, also known as UI / UX design trends, was, is and will be the perennial trend that maintains its eccentricity in the applications market. The beginnings or roots of material design lie in the concept of flat design, which has now become the standard of UI / UX design. The actual shape of the material designs can be felt in Google Drive, Gmail, YouTube, Google Maps, as well as in upcoming and existing versions of Android.

These were the most popular mobile app development trends that developers are predominantly hooked on and will definitely not sink in the following year. So go beyond conventional limits and explore what’s yet to come.

The best books on cryptocurrency

The Sovereign Individual ~ by James Dale Davidson and William Rees Morg

The Sovereign Individual is one of those books that forever changes the way we see the world. It was released in 1997, but the degree to which it predicts the impact of blockchain technology will cause you chills. We are entering the fourth stage of human society, moving from the industrial age to the information age. You should read this book to understand the scope and scale of how things will change.

Because it becomes easier to live comfortably and earn an income anywhere, we already know that those who truly thrive in the new information age will be workers who are not tied to a single job or career and are location-independent. Attention to choosing where to live based on price savings is already more appealing, but this goes beyond digital nomadism and independent concerts; the foundations of democracy, government and money are changing.

The authors predicted Black Tuesday and the collapse of the Soviet Union, and here they predict that the increase in the power of individuals will coincide with the decentralized technology that will sting the power of governments. The death toll for nation states, they predicted with an extraordinary presence, will be private digital cash. When that happens, it will change the dynamics of governments as stationary bandits who steal taxes from working citizens. If you have become someone who can solve problems for any part of the world, you are about to enter the new cognitive elite. Do not miss it.

Choice offer: “When technology is mobile and transactions take place in cyberspace, as they will increasingly do, governments will no longer be able to charge more for their services than the people who pay them are worth.”

Sapiens: A Brief History of Humanity ~ by Yuval Noah Harari

Whenever I want to impress someone with how good this book is, I ask, “Do you want to know the fundamental difference between humans and monkeys? A monkey can jump up and down on a rock, shake a stick and yell at his friends. seen as a threat is targeted. “Danger, danger! Lion! “A monkey can also lie, it can jump up and down on the rock, shake a stick around and squeal on a lion when, in fact, there is no lion. It is simply doing the ridiculous. But what a monkey all he can do is jump up and down, shake a stick and shout, “Danger! Danger! Damn it! “

Why is that? Because dragons are not real. As Harari explains, it is the human imagination, our ability to believe and talk about things we have never seen or touched that has elevated the species to cooperating in large numbers with strangers. There are no gods in the universe, no nations, no money, no human rights, no laws, no religions, no justice outside the common imagination of human beings. We are the ones who make them like this.

All in all it’s a pretty magnificent preamble to where we are today. After the Cognitive Revolution and the Agricultural Revolution, Harari guides you to The Scientific Revolution, which began only 500 years ago and can start something completely different for humanity. The money, however, will remain. Read this book to understand that money is the greatest story ever told and that trust is the raw material from which all kinds of money are minted.

Quote of choice: “Instead, sapiens live in a three-layer reality. In addition to trees, rivers, fears, and desires, the world of sapiens also contains stories about money, gods, nations, and corporations.”

The Internet of Money ~ by Andreas M. Antonopoulos

If the two books mentioned above help us understand the historical context in which Bitcoin first appeared, this book expands the “why” with contagious enthusiasm. Andreas Antonopolous is perhaps the most respected voice in the cryptographic space. He has been traveling the world as a Bitcoin evangelist since 2010 and this book is a summary of the talks he gave on the circuit between 2013 and 2016, all hardened for publication.

His first book, Mastering Bitcoin, is a technical immersion in technology, aimed more specifically at software and systems developers, engineers, and architects. But this book uses some eligible metaphors to explain why Bitcoin can’t be banned or turned off, how the scale debate doesn’t really matter, and why Bitcoin needs the help of designers to block mass adoption.

“When you drive your new car for the first time in a city,” he writes, “go on horse-drawn roads with infrastructure designed and used for horses. No light signals. No road rules. No paving. “And what happened? The cars got stuck because they had no balance or four feet.” But moving forward a hundred years and cars that were once ridiculed are absolutely the norm. If you want to swim in the philosophical, social, and historical implications of Bitcoin, this is your starting point.

Choice offer: “Bitcoin is not just money for the Internet. Yes, it is perfect money for the Internet. It is instant, secure, free. Yes, it is money for the Internet, but it is much more. Bitcoin is the Internet of money. Currency is just the first application.If you understand it, you can look beyond price, you can look beyond volatility, you can look beyond fashion.At its core, Bitcoin is a revolutionary technology that will change the world for always. Join us. “

Online stock trading application: the 4 best applications for different types of investors

Since you can literally do anything with your phone or tablet right now, it’s no wonder you can also make investments and trade stocks with apps. Why spend a fortune paying a broker to do trades for you when you can do it yourself? Even if you don’t have a lot of experience or knowledge, the best online stock trading application platforms include tips and resources to help you educate yourself better.

You only need one or two good apps to make all your investments. It also depends on your level of experience and trading style.

Here’s a quick overview of some of the most popular business apps:

Robin Hood

This one was launched even before the Robinhood website. It’s free to start using, although you won’t have access to the full range of investments. Recently added support for Bitcoin. The application interface is intuitive and the information you need to make decisions is easy to understand and grasp. Robinhood uses only the best security and privacy measures to protect the data and personal assets of investors.


This is a great option for beginners. College students can take advantage of the free management feature and some retailers can even get a “cash refund”. There are no free surprises and you can do small trades for only $ 1 to $ 3.

Acorns is not for everyone, especially for the more active and versatile traders who want a larger portfolio.


The best thing about Stash is that it’s not just an online stock trading app, it’s also an educational app designed to help you learn as you go. It allows users to start investing with as little as $ 5 and offers tips on what actions may be right for you as you go along. The investments are for individual / EFT actions, which are used in various topics, such as “environmental” or “innovation”.

Handy Trader

This tool is created by Interactive Brokers and is available to Zacks Trade members. If you are unfamiliar with Zack’s Trade, it is an excellent platform for active traders and those interested in foreign stock exchanges. There are a variety of investment options to choose from, including options, EFTs, bonds, mutual funds, and more. To help you make decisions, Handy Trader supports real-time charts and market data and allows you to place orders instantly or via an order ticket.

In addition to offering the best online stock trading app, Zacks Trade and Interactive Brokers offer a web platform for those who prefer to manage trades on a PC.

What is a cryptocurrency ICO?

ICO is the abbreviation for the initial supply of coins. When launching a new digital currency or cryptocurrency, developers offer investors a limited number of units in exchange for other major cryptocurrencies such as Bitcoin or Ethereum.

ICOs are amazing tools for rapidly pouring development funds to support new cryptocurrencies. The tokens offered during an ICO can be sold and exchanged on cryptocurrency exchanges, assuming there is sufficient demand.

Ethereum’s ICO is one of the most notable achievements and the popularity of the initial currency offerings grows as we speak.

A brief history of ICOs

Ripple is likely to be the first cryptocurrency distributed through an ICO. In early 2013, Ripple Labs began developing the Ripple payment system and generated approximately 100 billion XRP tokens. These were sold through an ICO to fund the development of the Ripple platform.

Mastercoin is another cryptocurrency that has sold several million tokens for Bitcoin during an ICO, also in 2013. Mastercoin aimed to symbolize Bitcoin transactions and execute smart contracts by creating a new layer on top of the existing Bitcoin code .

Of course, there are other cryptocurrencies that have been successfully funded through ICOs. In 2016, Lisk raised approximately $ 5 million during its initial coin offering.

Still, Ethereum’s ICO that took place in 2014 is probably the highlight so far. During its ICO, the Ethereum Foundation sold ETH for 0.0005 Bitcoin each, raising nearly $ 20 million. With Ethereum harnessing the power of smart contracts, it paved the way for the next generation of initial coin offerings.

The ICO of Ethereum, a recipe for success

Ethereum’s smart contracting system has implemented the ERC20 protocol standard that sets the ground rules for creating other compatible tokens that can be traded on the Ethereum blockchain. This allowed others to create their own tokens, which meet the ERC20 standard which can be exchanged for ETH directly on the Ethereum network.

The DAO is a notable example of successfully using Ethereum smart contracts. The investment company raised $ 100 million in ETH and investors received DAO tokens in return that allowed them to participate in the governance of the platform. Unfortunately, the DAO failed after being hacked.

Ethereum’s ICO and its ERC20 protocol have described the latest generation of blockchain-based crowdfunding projects using Initial Coin Bids.

It also facilitated investment in other ERC20 tokens. Simply transfer ETH, paste the contract into your wallet, and the new tabs will appear in your account so you can use them as you wish.

Viously, obviously, not all cryptocurrencies have ERC20 tokens that live on the Ethereum network, but virtually any new blockchain-based project can launch an initial coin offering.

The legal status of ICOs

When it comes to the legality of ICOs, there is a bit of jungle. In theory, tokens are sold as digital assets and not as financial assets. Most jurisdictions have not yet regulated ICOs, so assuming the founders have an experienced attorney on their team, the entire process should be paperless.

However, some jurisdictions have become aware of ICOs and are already working to regulate them in a similar way to stock and stock sales.

In December 2017, the U.S. Securities and Exchange Commission (SEC) classified ICO tokens as securities. In other words, the SEC was preparing to stop ICOs that they believe are misleading investors.

There are some cases where the testimony is only a useful testimony. This means that the owner can only use it to access a certain network or protocol, in which case it may not be defined as financial security. Nevertheless, equity tokens whose purpose is to appreciate their value are very close to the concept of security. The truth is that most tile purchases are made specifically for investment purposes.

Despite the efforts of regulators, ICOs still persist in a gray legal framework and until a clearer set of regulations is imposed, employers will try to benefit from the initial Currency Offers.

It should also be mentioned that once the regulations reach their final form, the cost and effort required to comply with them could make UCIs less attractive compared to conventional funding options.

Final words

For now, ICOs are still an amazing way to fund new cryptography-related projects and there have been many successes and many to come.

Still, keep in mind that everyone launches ICOs today and many of these projects are scams or don’t have the solid foundation they need to thrive and make the investment worthwhile. For this reason, you will need to do a thorough research and research the equipment and background of any cryptography project you want to invest in. There are several websites that list ICOs, just do a Google search and you will find some options.

How "Crypto" Coins work: a brief overview of Bitcoin, Ethereum and Ripple

“Crypto” or “crypto currencies” – are a type of software system that provides transactional functionality to users over the Internet. The most important feature of the system is yours decentralized nature – usually provided by the blockchain database system.

Blockchain and “cryptocurrencies” have recently become the main elements of the global zeitgeist; usually as a result of the “price” of Bitcoin soars. This has led millions of people to participate in the market, and many of the “Bitcoin exchanges” have come under great pressure on infrastructure as demand increased.

The most important point to keep in mind about “cryptography” is that while it really has a purpose (cross-border transactions over the Internet), it does not provide any other financial benefit. In other words, its “intrinsic value” is firmly limited to the ability to transact with other people; NOT in value storage / dissemination (which is how most people see it).

The most important thing to keep in mind is that “Bitcoin” and the like are payment networks – NO “coins”. This will be discussed in more depth in a second; the most important thing to realize is that “getting rich” with BTC is not about giving people a better economic situation: it is simply the process of being able to buy “coins” at a low price and sell them more highly.

To that end, when you look at “cryptography”, you must first understand how it really works and where its “value” really lies …

Decentralized payment networks …

As mentioned, the most important thing to remember about “Crypto” is that it is predominantly one decentralized payment network. Think Visa / Mastercard without the central processing system.

This is important because it highlights the real reason why people have really started to delve deeper into the “Bitcoin” proposal; gives you the ability to send / receive money from anywhere in the world, as long as they have your Bitcoin wallet address.

The reason this attributes a “price” to the various “currencies” is due to the misconception that “Bitcoin” will somehow give you the chance to make money by virtue of being a “cryptocurrency” asset. It doesn’t.

He NOT MORE the way people have made money with Bitcoin is due to the “rise” in its price: buying the “coins” at a low price and selling them for a MUCH higher one. While it worked well for many people, it was actually based on the “theory of the biggest fools,” essentially stating that if you manage to “sell” the coins, it’s for a “bigger fool” than you.

This means that if you want to get involved in the “cryptographic” space today, you basically want to buy any of the “coins” (even the “high” coins) that are cheap (or cheap) and assemble them. increase the price until you sell them later. Since none of the “currencies” are backed by real-world assets, there is no way to estimate when / if / how it will work.

Future growth

To all intents and purposes, “Bitcoin” is a spent force.

The December 2017 epic rally indicated mass adoption, and while its price is likely to continue to rise to $ 20,000 more, buying one of the coins today will basically be a huge bet for this to happen. .

Smart money is already contemplating most “high” currencies (Ethereum / Ripple, etc.) that are relatively small in price, but that are constantly growing and adopting. The key aspect to consider in modern “cryptographic” space is the way in which the various “platform” systems are actually used.

Such is the rhythm of the space of “technology”; Ethereum and Ripple resemble the following “Bitcoin,” with a focus on how they can provide users with the ability to actually use “decentralized applications” (DApps) at the top of their underlying networks for functionality in to work.

This means that if you’re seeing the next level of “cryptographic” growth, it’s almost certain to come from the various platforms you can identify.

How cryptocurrency works

Simply put, cryptocurrency is digital money, designed to be secure and anonymous in some cases. It is closely related to the internet making use of cryptography, which is basically a process where readable information becomes code that cannot be decrypted in order to address all transfers and purchases made.

Cryptography has a history dating back to World War II, when there was a need to communicate in the most secure way. Since then, it has evolved and today it has been digitized where different elements of computer science and mathematical theory are being used to secure online communications, money and information.

The first cryptocurrency

The first cryptocurrency was introduced in 2009 and is still well known around the world. Many more cryptocurrencies have been introduced since then in recent years and today you can find so many available on the Internet.

How they work

This type of digital currency makes use of a decentralized technology to allow different users to make secure payments and also, to store money without necessarily using a name or even going through a financial institution. They run primarily on a blockchain. A blockchain is a public record that is publicly distributed.

Cryptocurrency units are typically created through a process known as mining. This usually involves the use of a computer. Doing it this way solves the math problems that can be very complicated in coin generation. Users can only buy coins from brokers and then store them in cryptocurrencies where they can spend them very easily.

Cryptocurrencies and the application of blockchain technology are still in their infancy when they are thought of in financial terms. More uses may arise in the future, as it is not possible to say what else will be invented. The future of stock transactions, bonds and other types of financial assets could be traded with cryptocurrency and blockchain technology in the future.

Why use cryptocurrency?

One of the main features of these coins is the fact that they are safe and offer a level of anonymity that you may not get anywhere else. There is no way a transaction can be reversed or falsified. This is by far the main reason why you should consider using them.

The fees charged in this type of currency are also quite low and this makes it a very reliable option compared to the conventional currency. Because they are decentralized in nature, anyone can access them, unlike banks where accounts are only opened with authorization.

Cryptocurrency markets offer a new form of cash, and sometimes the rewards can be excellent. You can make a very small investment only to find that it has become something fantastic in a very short period of time. However, it is still important to keep in mind that the market can also be volatile and that there are risks associated with buying.

The multilayer cryptocurrency

Questions have arisen as to whether bitcoin is becoming a multilayer system. Well, the answer is yes. This article aims to outline the different layers on which bitcoin is located. It’s all yours!

Have you heard of those who refer to bitcoin as digital gold? It is clear that cryptocurrency is rapidly gaining popularity and acceptance in the cryptocurrency world. It is estimated that the value of the currency will increase further. However, it is also observed that the currency can gain or lose 50% of its value overnight. This provokes speculation among investors, but the currency is nevertheless a ” digital gold ”. And when faced with the question of whether bitcoin is a multilayer system, it is important to know that bitcoin exists in two main layers. These are the mining and semantic layers.

The mining layer

This is the layer where the coin is created. In addition to bitcoins, ether is also created in this layer. After the coins are created, the valid bitcoin blocks are transferred to the ledger. This is where currency generation takes place. It should be noted that currency is generated from transactions contained in bitcoin blocks. Blogs are known as transaction fees. The currency can also be generated from the network itself, or it can be said “from the core”. The main advantage of generating money from the net is that it offers incentives to miners.

The semantic layer

This provides a very important platform. The semantic layer is the layer in which bitcoins are used as a means of payment. It also provides a platform for bitcoins to be used as a store of value. The layer looks very important, right? Holders of the bitcoin currency sign valid transactions indicating the start of the transfer of bitcoins between the nodes of the semantic layer. Transfer can also be made possible by creating smart contracts. Smart contracts transfer currencies between different accounts.

The lightning network

You’ve probably not heard of the lightning network. This is the latest invention that the bitcoin community is developing. This layer will have the ability to work on bitcoin. With this invention, there will be an application layer that is at the top of bitcoin. It will be so exciting. The most interesting aspect is that its value can also be used to make payments. This will be possible by transporting its value between people. With the invention of the lightning network, bitcoin will become a transport layer and also an application layer.

As of today, the value of bitcoin is estimated at about US $ 9 billion. It is also known that bitcoin is a decentralized cryptocurrency. This means that it works without the control of a bank or an administrator. Bitcoin is surely taking over the crypto world.

It is also important that the technology used during bitcoin mining is called blockchain technology. It works by allowing the distribution of digital information, not copying. Cryptography is really an exciting topic and in the near future bitcoins could outperform our major currencies.

Crypto TREND – Fifth edition

As we expected, since the publication of Crypto TREND we have received many questions from readers. In this edition we will answer the most common.

What kind of changes will occur that could change the game in the cryptocurrency sector?

One of the most important changes that will affect the world of cryptocurrency is an alternative method of block validation called Proof of Stake (PoS). We will try to keep this explanation at a fairly high level, but it is important to have a conceptual understanding of what the difference is and why it is an important factor.

Remember that the underlying technology with digital currencies is called blockchain, and most current digital currencies use a validation protocol called Proof of Work (PoW).

With traditional payment methods, you need to rely on a third party, such as Visa, Interact or a bank, or a check clearing house to settle your transaction. These trusted entities are “centralized,” that is, they maintain their own private ledger that stores the transaction history and balance of each account. They will show you the transactions and you must accept that it is correct or start a dispute. Only the parties to the transaction ever see it.

With Bitcoin and most other digital currencies, ledgers are “decentralized,” meaning everyone on the net gets a copy, so no one has to rely on a third party, like a bank, because anyone can verify. directly the information. This verification process is called “distributed consensus.”

PoW requires that “work” be done to validate a new transaction for entry in the blockchain. With cryptocurrencies, this validation is done by “miners”, who have to solve complex algorithmic problems. As algorithmic problems become more complex, these “miners” need more expensive and more powerful computers to solve problems ahead of everyone else. “Mining” computers are usually specialized, typically using ASIC (application-specific integrated circuits) chips, which are more skillful and fast to solve these difficult puzzles.

Here is the process:

  • Transactions are grouped into a “block”.
  • The miners check that the transactions within each block are legitimate by solving the hashing algorithm puzzle, known as the “working test problem.”
  • The first miner to solve the “work test problem” of the block is rewarded with a small amount of cryptocurrency.
  • Once verified, transactions are stored in the public blockchain across the network.
  • As the number of transactions and mining increases, so does the difficulty of solving hashing problems.

While PoW helped pull the blockchain and decentralized and untrusted digital currencies out, it has some real shortcomings, especially with the amount of electricity these miners consume trying to solve “work test problems” as quickly as possible. possible. According to Digiconomist’s Bitcoin energy consumption index, Bitcoin miners are using more energy than 159 countries, including Ireland. As the price of each Bitcoin increases, more and more miners are trying to solve the problems, consuming even more energy.

All this energy consumption just to validate transactions has motivated many in the digital currency space to look for an alternative method to validate blocks, and the main candidate is a method called “Participation Testing” (PoS).

PoS is still an algorithm, and the purpose is the same as in the job test, but the process for achieving the goal is quite different. With PoS, there are no miners, but we have “validators”. PoS is based on the trust and knowledge that all people who are validating transactions have their skin on the game.

Thus, instead of using energy to answer PoW puzzles, a PoS validator simply validates a percentage of transactions that reflect their ownership stake. For example, a validator that owns 3% of the theoretically available Ether can only validate 3% of the blocks.

At PoW, the chances of solving the job test problem depend on how much computing power you have. With PoS, it depends on how much cryptocurrency you have in “play”. The higher your bet, the more likely you are to settle the block. Instead of earning cryptocurrencies, the winning validator receives transaction fees.

Validators enter their participation by “closing” a portion of their background tokens. If they try to do something malicious against the network, such as creating an “invalid lock”, they will lose their share or security deposit. If they do their job and do not infringe the network, but do not earn the right to validate the blog, they will regain their share or deposit.

If you understand the basic difference between PoW and PoS, this is all you need to know. Only those who plan to be miners or validators need to understand all the advantages and disadvantages of these two validation methods. Most of the general public who want to own cryptocurrencies will simply buy them through an exchange and will not participate in the actual mining or validation of block transactions.

Most of the crypto industry believes that for digital currencies to survive in the long run, digital tokens need to switch to a PoS model. At the time of writing, Ethereum is the second largest digital currency behind Bitcoin and its development team has been working on its PoS algorithm called “Casper” for the past few years. We expect to see Casper implemented in 2018, putting Ethereum ahead of all other major cryptocurrencies.

As we have seen earlier in this sector, important events such as a successful implementation of Casper could make Ethereum prices much higher. We will keep you informed in future issues of Crypto TREND.

Stay tuned!