How to

Thinking about making your side-chain your main chain? You’ll probably want to know a little more about Layer 2 (L2) solutions are and how they work in conjunction with their Layer 1 (L1) counterparts. Layer 2 solutions are becoming more common, and in many cases necessary to help create secure scalability for some of the most widely used blockchain networks like Bitcoin and Ethereum. So what does L2 mean for you and why should you care? Layer 2 Solutions in Their Natural Habitat In this guide, we’ll talk about what Layer 2 solutions are, why L2s are necessary, some benefits and drawbacks of L2 solutions, and go over some examples of some of the more common L2s like Polygon, Optimism, and Arbitrum and where you might encounter them. Layer 2 solutions make the blockchain more accessible to more people, and are very often considerably less expensive to use than their Layer 1 counterparts. So if you’re thinking about leaving your main chain for your side chain, keep reading to learn more! Peeling Back the Layers Some preliminaries before we dig in: in this article we assume the reader has at least some basic familiarity with L1 tech like Bitcoin and Ethereum. If you’re brand new to crypto and blockchain, consider checking out some of our introductory learning resources here. This also assumes you’ve had some experience transacting and interacting with the blockchain.   What are L2 Blockchain Solutions? One of the main challenges with blockchain technology is that it can be slow and expensive to process transactions. This is because each transaction needs to be validated and recorded on the blockchain, which can take time and incur fees. Layer 2 solutions are a way to address this scalability issue by allowing some transactions to be processed of-chain, without needing to record them on the main blockchain. This means that transactions can be processed much faster and cheaper, without sacrificing security or decentralization. Succinctly, L2s help to address some of the issues posed by the blockchain trilemma while creating a fast, secure, and decentralized solution for users. Why are L2 Blockchain Solutions Necessary? The need for L2 solutions arises from the fact that most current blockchain networks have limited scalability. For example, Bitcoin can only process around 7 transactions per second (tps), while Ethereum can handle around 15-45 tps. This is far lower than traditional payment networks like Visa, which can process thousands of transactions per second. As the number of users and transactions on blockchain networks grows, this scalability issue becomes even more pronounced. This can lead to slow transaction times and high fees, which can make blockchain-based applications less practical and less user-friendly. L2 solutions provide a way to overcome these scalability limitations by processing some transactions off-chain, while still maintaining the security and decentralization of the underlying blockchain. Benefits and Drawbacks   There are several benefits to using L2 solutions. First, they can significantly increase the scalability of blockchain networks, allowing for faster and cheaper transactions. This can make blockchain-based applications more practical and user-friendly. L2 solutions can reduce congestion on the main blockchain, which can improve overall network efficiency. This is because off-chain transactions do not need to be validated and recorded on the main blockchain, freeing up space for other transactions. Third, L2 solutions can enable new use cases for blockchain technology, such as micropayments and real-time applications, which may not be feasible on the main blockchain due to scalability limitations. However, there are also some drawbacks to using L2 solutions. For example, there is an increased risk of centralization, as L2 solutions may be run by a smaller number of nodes or providers. This could potentially compromise the security and decentralization of the underlying blockchain network. Second, L2 solutions may require additional trust assumptions, such as trusting the operators of the L2 solution to properly execute transactions and maintain security. Finally, L2 solutions may introduce additional complexity for users, as they may need to interact with multiple layers and protocols to use blockchain-based applications. Some Examples of Layer 2 Technology   There are several L2 solutions currently being developed and deployed for various blockchain networks. These examples include some of the types of Layer 2 technology being developed as well as some actual Layer 2 solutions. Some examples include: How to Use L2   If you’re interested in using an L2 solution for the first time, the process will depend on the specific solution you want to use. However, in general, here are some steps you might follow: Layer 2 solutions offer a promising way to address the scalability limitations of blockchain technology. They can significantly increase transaction speeds and reduce fees, while maintaining the security and decentralization of the underlying blockchain. However, there are also potential drawbacks to using L2 solutions, such as increased complexity and risk of centralization. If you’re interested in using an L2 solution, make sure to do your research and choose one that fits your needs and preferences.

First time outside of Coinbase? This guide will explain some of the basics of Decentralized Finance so you can yield farm, swap, lend (decentralized, of course), or provide liquidity with more confidence. Using a Decentralized Exchange (or DEX) for the first time can be scary and a little intimidating. It’s a little less overwhelming if you know a thing or two before making your first non-custodial swap. Ready to learn more about DeFi? Keep scrolling… Can you refi your defi? DeFi stands for “decentralized finance,” which refers to a rapidly growing ecosystem of decentralized applications (dApps) built on blockchain technology that provide financial services to users without the need for intermediaries like banks or other centralized financial institutions. DeFi applications use smart contracts to automate financial transactions and allow users to interact with them directly using cryptocurrency wallets. Remember ‘not your keys, not your crypto?’ DeFi lets you utilize your crypto as a financial vehicle in ways that custodial centralized exchanges can’t. Here’s What You Need to Know About DeFi?   In this article, we’ll take a look at a few of the most popular DeFi dApps that cover a good chunk of the spectrum of DeFi including swapping, decentralized lending, and yield farming. There are other DeFi tools and protocols, most of which are beyond the scope of this article.    DeFi dApps DeFi dApps are becoming increasingly popular due to their potential to provide faster, cheaper, and more transparent financial services compared to traditional finance. Some of the most popular DeFi dApps include: Uniswap: Uniswap is a decentralized exchange (DEX) that allows users to trade Ethereum-based tokens without the need for an intermediary. It uses an automated market maker (AMM) system to provide liquidity to traders, and users can earn fees by providing liquidity to liquidity pools. Aave: Aave is a decentralized lending platform that allows users to borrow and lend cryptocurrency without the need for an intermediary. It uses smart contracts to automate lending and borrowing, and users can earn interest by lending out their cryptocurrency. Compound: Compound is another decentralized lending platform that allows users to borrow and lend cryptocurrency without intermediaries. It also uses smart contracts to automate lending and borrowing, and users can earn interest by lending out their cryptocurrency. Yearn Finance: Yearn Finance is a DeFi platform that automates yield farming strategies across different DeFi protocols. It optimizes yield for users by automatically moving funds between different yield farming protocols. Most of these DeFi dApps and protocols are Ethereum-specific. While several DeFi protocols now have bridging mechanisms and cross-chain protocols to bridge assets, for the most part, each blockchain has it’s own DeFi products. Binance for example has Pancakeswap, Cardano has Sundaeswap, and LoopNetwork has LoopSwap. Try and find the best protocol for your application and your preferred cryptocurrency on your favorite blockchain network. Benefits of Decentralized Finance Decentralization: DeFi applications are decentralized, meaning that they are not controlled by a single entity or organization. This provides greater transparency, security, and resilience compared to traditional finance. This also means that you have control over your trades, and the protocols in which you wish to participate. Lower fees: DeFi applications can offer lower fees compared to traditional finance because they do not require intermediaries like banks or other financial institutions. Some decentralized exchanges (DEX’s) take a small fee to broker transactions on their platforms, but in many cases, additional costs of your transactions will be limited to the gas required to process the transaction Faster transactions: DeFi applications can process transactions faster than traditional finance because they use blockchain technology, which allows for instant settlement. Centralized exchanges and banks are limited to traditional banking settlement times to fully process transactions and withdrawals. Risks Associated With DeFi Smart contract risk: Smart contracts are still relatively new technology and are not yet fully tested. Bugs or vulnerabilities in smart contracts could potentially lead to the loss of funds. Most smart contracts on the most trusted platforms have been audited and stress-tested to avoid vulnerabilities such as reentrancy attacks, but there are still active bug bounties on some high-value smart contracts. Market risk: DeFi applications are subject to market risk, just like any other financial instrument. Prices of cryptocurrencies and tokens can be volatile, and users can potentially lose money if the value of their holdings decreases. While DeFi does give you a lot of control over how you manage your crypto, it does not give you control over the market itself. Impermanent loss: Impermanent loss is a risk that is unique to liquidity providers in DeFi applications. It occurs when the value of one asset in a liquidity pool changes relative to another asset, causing the liquidity provider to lose money. Which leads to our next section: A Quick Note About Impermanent Loss Impermanent loss occurs when a liquidity provider provides liquidity to a liquidity pool with two different assets, usually in equal value. When the relative value of the two assets changes, the liquidity provider may end up with fewer assets than they started with, even if the overall value of the pool has increased. This is because the liquidity provider must always maintain a balance of the two assets in the pool, even if the price of one asset has gone up or down. Impermanent loss is generally regarded as one of the greatest risks in participating in DeFi. Despite the Risks, People are Interested   Here are some of the reasons why someone might be interested in DeFi regardless of the risks involved:   Access to financial services: DeFi applications can provide access to financial services to people who are underserved by traditional finance, such as those in developing countries or those without access to banks or other financial institutions. Decentralization: DeFi applications offer greater decentralization and transparency compared to traditional finance, which can provide greater security and resilience. Potential for high yields: Some DeFi applications, such as yield farming and staking, can potentially offer high yields offer high yields compared to

If you’re going to be doing anything involving self-custody on web3 or any kind of web3 blockchain development, you’re probably going to need to use a Metamask wallet at some point. This article is intended for educational purposes only, and does not constitute financial, tax, investment, or legal advice. If you are looking for financial, tax, investment, or legal advice, please consult with an accredited professional. We have included a how-to guide for both Metamask browser, and Metamask on mobile as well as some tips for how to stay safe, and how to interact with other EVM blockchains with Metamask. Screenshot Taken from MetaMask.io The Metamask wallet is probably the most popular digital wallet used for transacting on web3. If you’ve never used a Metamask wallet before, getting started can be a little confusing. Getting a handle on how to use Metamask will make navigating the rest of web3 a lot easier and more intuitive. Whether you do the majority of your crypto-exploring on mobile or on your PC, there is a Metamask browser plugin as well as a mobile app to meet your needs. Metamask is compatible with several hardware wallets as well, so you can get both ease of use and great security from this platform. Let’s take a look! Install and Setup Metamask on Your Web Browser 1.) Go to the Metamask website: https://metamask.io/ 2.) Click on the “Get Started” button on the homepage. 3.) Choose your browser by clicking on the appropriate button: Chrome, Firefox, Opera, or Brave. 4.) You will be redirected to the respective web store for the browser. Click “Add to Chrome/Firefox/Opera/Brave” to install the Metamask extension. 5.) After installation, click on the Metamask icon on your browser to launch the wallet. 6.) Click “Create a Wallet” to create a new Metamask wallet. 7.) Read and accept the terms and conditions. 8.) Choose a strong password for your wallet. Keep in mind that your Metamask password is not the same as your seed phrase. 9.) Click “Create” to create your wallet. 10.) Metamask will provide you with a seed phrase. Write this down on a piece of paper and keep it in a safe place. This seed phrase can be used to restore your wallet if you lose access to it. 11.) Confirm your seed phrase by selecting the words in the correct order. You have now successfully set up your Metamask wallet on web! Connecting to a dApp Online with Metamask 1.) Go to the dApp you want to use. 2.) Click on the “Connect Wallet” or “Connect Metamask” button. 3.) A Metamask window will appear, asking you to allow the dApp to connect to your wallet. Click “Connect”. 4.) You are now connected to the dApp and can use it with your Metamask wallet. “You’ve just taken your first steps into a larger world.” – Obi-Wan Kenobi Install and Setup Metamask on Mobile Using a web browser at a desktop computer is not always accessible. Crypto moves fast, and if you’re planning on keeping your finger on the pulse of what’s happening, or closely following projects, you’ll probably want to consider the Metamask mobile app. Here’s how to get started: 1.) Go to the App Store or Google Play Store on your mobile device. 2.) Search for “Metamask”. 3.) Download and install the Metamask app. 4.) Launch the Metamask app. 5.) Click “Get Started” to create a new Metamask wallet. 6.) Read and accept the terms and conditions. 7.) Choose a strong password for your wallet. Remember that your password is not your seed phrase. Your password will allow you to access your wallet on your device, so you may want to consider enable two-factor authentication or biometrics as an extra layer of security. 8.) Click “Create” to create your wallet. 9.) Metamask will provide you with a seed phrase. Write this down on a piece of paper and keep it in a safe place. This seed phrase can be used to restore your wallet if you lose access to it. 10.) Confirm your seed phrase by selecting the words in the correct order. 11.) You have now successfully set up your Metamask wallet on mobile! Connecting to a dApp on Mobile with Metamask 1.) Open the Metamask app on your mobile device, and click on the “browser’ tab in the app. 2.) Navigate to the dApp you want to use on your mobile device. Make sure you have the correct information for the dApp you want to use. This could be either the correct URL to the dApp website, or the correct smart contract address if you’re interacting directly in the block explorer. 3.) Click on the “Connect Wallet” or “Connect Metamask” button. 4.) Metamask will automatically launch and ask you to allow the dApp to connect to your wallet. Click “Connect”. 5.) You are now connected to the dApp and can use it with your Metamask wallet. That’s it! You have now successfully installed and set up a Metamask wallet on both web and mobile, and connected it to a dApp. How do I Connect to a Different Blockchain? Metamask has support for all EVM compatible blockchains. The default network is Ethereum, but you may decide you want to transact on Binance Smart Chain, Polygon, Harmony, Fantom, Avalanche, Arbitrum, Optimism, LoopNetwork or others. This also means that you can also use new blockchains that may not be well-developed, so use caution. Adding a new blockchain can be a little tricky at first, but here are the steps involved; 1.) Open your Metamask wallet by clicking on the icon in your browser, or by opening the app on your mobile device. 2.) Click on the network dropdown menu in the top right corner. 3.) Click on “Custom RPC” at the bottom of the network list. 4.) Enter the network details in the fields provided: 5.) Click “Save” to add the network to your Metamask wallet. That’s it! You have now successfully added a compatible blockchain to your Metamask wallet.

Let this post be your introduction to blockchain security and how to keep your coins secure and avoid getting scammed while navigating the world of crypto and web3. Taking steps and precautionary measures to protect your digital assets from theft and fraud are important when it comes to navigating crypto. Storing your private keys securely, interacting safely with dApps and smart contracts, and avoiding scams are all critical components of personal blockchain security. We’ve compiled a list of some of the best practices that can help ensure the safety and security of your digital assets so you can explore crypto and web3 with confidence. This basic guide will help you keep your coins secure by protecting your private keys, interacting with dApps safely, and taking steps to avoid scams. Personal blockchain security is essential in the cryptocurrency world, and it is important to understand how to protect your digital assets from theft and fraud. In this post, we will explore the best practices for personal blockchain security, including how to store private keys, how to interact safely with dApps and smart contracts, and how to avoid scams. Make sure you check out these steps and follow them if you want to keep your digital assets safe. Before We Get Started…   A private key is a long string of characters that allows you to access your digital assets on the blockchain. It is important to keep your private key secure to prevent unauthorized access to your funds. There are several ways to store your private keys, including on paper, digitally, or with a hardware wallet.   Storing Private Keys: Not Your Keys, Not Your Crypto A private key is a long string of characters that allows you to access your digital assets on the blockchain. It is important to keep your private key secure to prevent unauthorized access to your funds. There are several ways to store your private keys, including on paper, digitally, or with a hardware wallet. Paper Wallets One of the safest ways to store your private keys is on paper. You can generate a paper wallet by using a website or software that allows you to create a random private key and corresponding public address. You then print out the private key and store it in a secure location, such as a safe or a safety deposit box. It is important to keep the paper wallet safe from fire, water damage, and theft. Digital Storage Digital storage of private keys can be risky if not done correctly. You can store your private keys on your computer, mobile device, or in the cloud. However, these methods are vulnerable to hacking and malware attacks. If you choose to store your private keys digitally, it is important to use a secure and reputable wallet provider and to enable two-factor authentication. Hardware Wallets Hardware wallets are physical devices that store your private keys offline, making them much more secure than digital storage. They come in various forms, such as USB drives or small handheld devices, and they are designed to be used with a computer or mobile device. To access your funds, you simply connect the hardware wallet to your device and enter your PIN or passphrase. Some popular hardware wallet brands include Ledger, Trezor, and KeepKey. There are benefits and drawbacks to using each type of wallet. Some offer ease of access while compromising on security a bit, others are heavier on security, but are more difficult to use. The important thing is to select the best type of wallet for your use case to keep your crypto secure. Interacting With dApps and Smart Contracts: Always Proceed with Caution Decentralized applications (dApps) and smart contracts are becoming more popular on the blockchain, but they can also be a source of security risks. Here are some tips for interacting safely with dApps and smart contracts: Research Research the dApp or smart contract before using it. Look for reviews, ratings, and feedback from other users. Wallet Security Use a trusted wallet provider. Some dApps and smart contracts may require you to connect your wallet to their platform. Make sure you are using a secure and reputable wallet provider. Review the Contract Check the smart contract code. Smart contracts are code-based, and errors or vulnerabilities can result in significant losses. Review the code or seek the advice of a professional if you are not confident in your ability to do so. Use Caution Use caution when entering your private key or signing. Some dApps and smart contracts may require you to enter your private key or wallet signature to access your funds. Make sure you are on a secure and trusted platform before entering your private key. How to Avoid Scams   Scammers are prevalent in the cryptocurrency world, and it is important to be vigilant to avoid falling victim to their schemes. Here are some basic tips for avoiding scams: Be wary of unsolicited offers. Scammers may try to entice you with offers that seem too good to be true. If it sounds too good to be true, it probably is. Do not share your private key. Never share your private key with anyone, and do not enter it into any website or platform that you do not trust. Use caution when clicking links on Twitter, Discord, Telegram, or any other platform you use to interact with other people in the space. Scammers may even send phishing emails or create fake websites that look legitimate. Always check the URL and verify it is the correct URL for the site or dApp you want to interact with before entering any sensitive information. Use two-factor authentication. Two-factor authentication adds an extra layer of security to your account. Make sure you enable it on all of your accounts. Conclusion   Personal blockchain security is essential in protecting your digital assets from theft and fraud. Storing your private keys securely, interacting safely with dApps and smart contracts, and avoiding scams are all critical components

Etherscan, polygonscan, avascan, bscscan… there are so many block explorers, but they all basically work the same way. This guide will cover the basics of what you absolutely need to know about using and interacting with a block explorer. Understanding how to use and interact with a block explorer is crucial in understanding crypto at a higher level or if a user ever plans to interact on-chain (anything crypto outside of a centralized exchange). The Etherscan landing page. Explore Ethereum blocks here. A blockchain explorer is a powerful tool that allows you to view and analyze the contents of a blockchain. Whether you’re a blockchain developer, an investor, or just someone curious about the technology, a blockchain explorer can be an invaluable resource. In this post, we’ll focus on how to read and use a blockchain explorer like etherscan or bscscan. What is a Blockchain Explorer? A blockchain explorer is a web application that allows you to view and search the contents of a blockchain. It provides a way to view transactions, account balances, and other information stored on the blockchain. Each blockchain explorer is specific to a particular blockchain, so you’ll need to use a different one for each blockchain you want to explore. Some examples of EVM-compatible block explorers include polygonscan, avascan, arbiscan, and loop explorer. Non-EVM block explorers include cardanoscan, and btcscan. How to Use a Blockchain Explorer To use a blockchain explorer, you’ll need to know the address of the blockchain you want to explore. For example, if you want to explore the Ethereum blockchain, you’ll use etherscan.io. If you want to explore the Binance Smart Chain blockchain, you’ll use bscscan.com. Once you’ve navigated to the blockchain explorer, you’ll be presented with a dashboard that provides various information about the blockchain. Here are some of the key elements of a blockchain explorer: “There’s so much going on in the crypto space that it’s hard to zoom out and see the progress.” – Vitalik Buterin Here’s a quick snapshot of etherscan and where to find some of the block explorer functions listed above: Reading Transactional Information When you click on a transaction hash in the transaction list, you’ll be taken to a page that provides detailed information about that transaction. Here’s what you can expect to see: Everything listed above can be seen in this etherscan transaction. In addition to these details, you’ll also see a “View Contract” button if the transaction involved a smart contract. Etherscan will have additional information about the smart contract like when it was deployed, how much $ETH the contract holds, and how many token holders for that contract there are if the contract is a token. Filtering Data by Contract or Wallet Address You can use the search bar on the blockchain explorer to find and filter information by contract address or wallet address. For example, if you want to view all the transactions that have occurred for a specific wallet address, you can enter the wallet address in the search bar and click the “Search” button. You can also filter the results by transaction type, such as buy or sell orders. Similarly, if you want to view all the interactions that have taken place with a specific smart contract, you can enter the contract address in the search bar and click the “Search” button. You can also filter the results by interaction type, such as buy or sell orders. Determining if a Smart Contract Is Safe or Malicious Smart contracts are self-executing contracts that run on the blockchain. They allow for the creation of decentralized applications (dApps) and the automation of certain tasks. However, smart contracts can also be vulnerable to attacks, which is why it’s important to be able to determine whether a smart contract is safe or malicious. To determine if a smart contract is safe, you should look for the following: It’s important to conduct some basic checks to make sure a smart contract is safe before interacting with it. Because blockchains are decentralized, anyone can deploy a smart contract and the only thing preventing a scammer from draining someone’s wallet are the warnings and stopgap message on the wallet and the block explorer, along with an individual’s common sense. Proceed with caution. Smart Contract Interactions on the Block Explorer You can interact with a smart contract directly on the blockchain explorer by clicking on the “View Contract” button on the transaction page. This will take you to the contract page, where you can view the contract details, interactions, and transactions. To interact with the contract, you’ll need to connect your wallet to the blockchain explorer. This can usually be done by clicking on the “Connect Wallet” button and selecting your preferred wallet provider. Once your wallet is connected, you can interact with the smart contract by sending transactions. For example, you can send cryptocurrency to the contract to buy tokens or you can send tokens to the contract to sell them. Summary A blockchain explorer is a powerful tool that allows you to view and analyze the contents of a blockchain. By using a blockchain explorer, you can view transactional information, determine if a smart contract is safe or malicious, find and filter information by contract address or wallet address, and interact with a smart contract directly on the block explorer. Whether you’re a blockchain developer, an investor, or just someone curious about the technology, a blockchain explorer can be an invaluable resource for exploring and understanding the blockchain. If you found this helpful, don’t forget to drop us a like, share this post, and check out some of our other write-ups to help people be more successful with crypto.

Artificial intelligence is rapidly developing. AI tools are commonly used in the household now. More and more people are calling upon AI to automate mundane tasks and quickly synthesize data or conduct analysis, and AI’s relationship with blockchain technology is fledgling, but very real. The rapid development of artificial intelligence has demonstrated the power that current technology has to improve life and help people, and it has shown no sign of slowing down. It is no surprise then, that we’re starting to see the intertwining of crypto and AI . As if it didn’t already evolve fast enough, the crypto space is once again changing. In fact, AI made th What Crypto is Involved with AI Several Crypto AI tokens have been on the market for some time. Most of these projects have been in steady development, but as Artificial Intelligence technology continues to improve, the backbones of these Crypto AI ecosystems will continue to improve as well. Let’s take a look at a few of the more popular tokens and talk a little about what each of them does.   The Graph The Graph is an ecosystem designed to optimize complex blockchain data for indexing, filtering, and readability. This is accomplished by implementing mechanisms designed to map data to develop clear relationships. The way in which The Graph accomplishes this is quite complex since it must read blockchain bytecode data and map the relationship between that data and another non-trivial piece of data. To the lay person, this might sound horrendously complex, but in simpler terms, it’s a lot like a family tree. Suppose a person meets another person who claims to be their fourth cousin. The two of them talk about their parents, aunts, uncles, grandparents, great aunts and uncles, etc. until they determine the root relationship that establishes their familial connection. Since blockchain data is, by nature, complex and computationally expensive, clearly defining these relationships natively on chain is not efficient. That’s where The Graph comes in. The Graph learns what and how to index Ethereum data based on subgraph descriptions, known as the subgraph manifest. The subgraph description defines the smart contracts of interest for a subgraph, the events in those contracts to pay attention to, and how to map event data to data that The Graph will store in its database. -From “How The Graph Works” Since many of the analytical tools in development for crypto trading and NFTs relies on the ability to quickly, effectively, and sensibly query blockchain data for analysis, the demand for good blockchain data will not likely slow down. At the time of writing, The Graph, or $GRT is trading at $0.1114 with a market cap of $1.015 Billion. Injective Injective protocol aims to improve the landscape of decentralized finance. The Injective blockchain claims to be the “fastest blockchain built for finance” and touts a library of plug-and-play web3 modules reducing shoddy and error-prone smart contracts that come from traditional development. Granted, many smart contract developers are highly capable and write remarkable code, but the level of skill required to code a secure, reliable smart contract from scratch creates a substantial barrier to entry for any would-be web3 dApp developer. The Injective mainnet launched in November of 2021. While it is unclear how, precisely, Injective leverages AI in its ecosystem, Staking Rewards talks about how Injective solves liquidity issues through a process called liquidity aggregation. In traditional DeFi, a smart contract manages a liquidity pool, where one token is paired with another token, like $ETH and $USDT for example. As more $USDT enters the pool and more $ETH leaves, the price of $ETH goes up, conversely, if there is an outflow of $USDT, and an inflow of $ETH, the prices goes down. This is an oversimplification, but basically how it works. A major ‘problem’ with DeFi is that there are multiple liquidity pools, and the ratio of the token pair can vary from pool to pool, meaning the price of an asset between several different liquidity pools can vary. This gets more complex when the asset is traded on multiple blockchains, so now there are exponentially more pools across exponentially more ecosystems. To try and solve these liquidity issues, DEX liquidity aggregators were created. These aggregators pool together the liquidity of multiple exchanges and run their orders from a central combined order book. -Staking Rewards The aggregation of this liquidity may involve or implement AI, but whether that is the case is unclear. CoinMarketCap has Injective Protocol listed in the AI category, but how Injective uses or leverages AI in its ecosystem is not well-defined or documented on its website. At the time of writing, $INJ is trading at $7.97 with a market cap of $667.8 million. Render Render provides utility through decentralized GPU rendering. The idea behind this is simple: computational power is limited. An individual can use a graphics card on their machine to make better resolution on their pc games, or leverage the power of GPU computing for machine learning. This is not necessarily feasible or accessible to everyone, but a decentralized network of GPU computing makes this possible. Use-cases for $RNDR range from providing decentralized GPU rendering solutions for massive and detailed online games to relieve the user of the processing burden to providing computing power for machine learning and AI applications. Render allows people with idle GPUs to delegate that computing power to people that need it and receive an incentive for doing so. Render believes this provision of utility is greater than that of proof of work blockchain consensus models that often use many GPUs to validate on the network mine cryptocurrency. They believe the use of the GPU computing power for development, gaming, and art is more valuable than mining. Decentralized GPU resources are wasted in ‘proof of work’ cryptocurrency mining. Render unlocks the full productive potential of decentralized GPU computing to power next generation 3D content creation and artificial intelligence. -Render Network The democratization and decentralization of GPU computing power has

If you’re still keeping your coins on a custodial CEX cryptocurrency wallet, you will get #rekt. A non-custodial wallet is the surest way to have the most control over your cryptocurrency. Remember: not your keys, not your crypto. The last few years in the crypto space have seen the rise and fall of many centralized cryptocurrency trading platforms. Most notably and most recently, the collapse of the FTX cryptocurrency trading platform resulted in many people’s assets being lost or inaccessible as the company worked through its legal proceedings. Many users sidestepped this by offboarding their assets onto non-custodial wallets. While they may have suffered unrealized losses from the decrease in the value of coins following the event, those coins were still accessible to them. People always say: “Not your keys, not your crypto.” With so many centralized exchanges coming onto and leaving the market, it’s vital to have as much control over your own coins as possible. In this article, we will explain cryptocurrency wallets, why you should have one, and some of the wallets used in different cryptocurrency ecosystems. We hope this information provides helpful tools and resources for anyone who wants to keep and maintain custody of their own assets. What is a Cryptocurrency Wallet? The term “wallet” is interesting in this context since a cryptocurrency wallet doesn’t actually hold cryptocurrency. In the realm of cryptocurrencies, a wallet is not a physical object but rather a digital tool used to store, manage, and interact with your digital assets. Think of it as a secure vault that holds your keys (private and public) and allows you to send, receive, and monitor your cryptocurrency holdings. Your coins live on a ledger on the blockchain, and your wallet is the mechanism that keeps your private keys private so the control over your cryptocurrency transactions remains yours. Cryptocurrency kept on exchanges in custodial wallets gives control to someone else to process transactions (hypothetically, this is done with the user’s consent when the user wants to, for example, make a trade). This technology, by design, is supposed to be a trustless, decentralized system for a reason. Different Types of Cryptocurrency Wallets Not surprisingly, there are lots of crypto wallet buzzwords like cold wallet, hot wallet, hardware wallet, software wallet, paper wallet, burner wallet, multi-sig, gnosis safe, and the list goes on. The bad news is most blockchain ecosystems rely on a different type of wallet technology to interact with different types of blockchains. The good news is that there are essentially only three basic types of cryptocurrency wallets, and all others are subsets of one of these three types: “Not your keys, not your crypto, fam.” – Some crypto maxi internet rando 1 – Paper Wallet It seems strange that in the age of non-custodial digital asset ownership, the safest and most secure way to store cryptocurrency is still with a paper wallet. A paper wallet, in most instances, is literally a piece of paper that contains the private key for a blockchain address, which means somebody (a hacker, for example) would need to physically be in possession of the paper wallet to extract the private key and compromise the wallet. Paper wallets are generally best for long-term storage of coins. You can also keep your paper wallets in a safe or safety deposit box for additional security. The high security comes at the expense of ease of use. Initially, setting up a paper wallet is relatively straightforward. However, it can be cumbersome to manually key in a private key or scan a separate QR code whenever you need to make a transaction. Keeping a paper wallet on hand is also not very secure since it can be lost or stolen. They’re ideal for long-term, set-it-and-forget-it storage but not for everyday use. If it’s good enough for Vitalik, it should be good enough for anyone, right? 2 – Hardware Wallet Hardware wallets are physical devices designed specifically for storing cryptocurrencies offline. Examples include Ledger Nano S, Ledger Nano X, and Trezor. Some of the benefits of hardware wallets are that they are high security since the offline storage of private keys makes them resistant to online threats. The private keys get stored on the device, so like a paper wallet, there is a layer of separation that reduces the likelihood of compromise and mitigates the risk of malware attacks that could compromise your assets. Two of the most common hardware wallets. Some of the downsides of hardware wallets are that they can be costly. Some hardware wallets can cost more than $200. Since it is a physical electronic device, it can be lost, damaged, or stolen. We’ve also recently learned that because they are electronic devices, they are not impervious to being compromised. While it doesn’t happen often, it is still possible to hack a hardware wallet, and malicious attackers can exploit hardware wallet ecosystems. In short, hardware wallets are a secure intermediary step between a paper wallet and a software wallet that offers some added security without the burden of keeping keys on paper. Click here to see our review of the best crypto hardware wallets 3 – Software Wallet Software wallets are the most common and accessible type of cryptocurrency wallets. They come in various forms, including desktop, mobile, and web-based wallets. Some common examples include Coinbase, Exodus, and Trust Wallet. Coinbase also has a decentralized wallet! Some benefits of software wallets are that they are easily accessible through most devices with an internet connection, are generally very user-friendly and designed for convenience, and several software wallets like Metamask support many different cryptocurrencies. However, this level of convenience presents the potential for risk. Software wallets are more susceptible to hacking and phishing attacks, so the user must rely on the third-party wallet provider’s security (which could be substandard if a wallet product is not well-developed). It is also easy to get too comfortable with a software wallet, and that could leave users vulnerable to additional risks. Why Get a Cryptocurrency