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One of the largest and oldest dapps in the DeFi (decentralized finance) space, Compound Finance has built a reliable reputation among traders looking for lending and borrowing services. Compound operates using its native ERC-20 COMP tokens which provide community governance as well as other services.

What is the Compound protocol (COMP)?

Built on the Ethereum blockchain, the Compound protocol provides liquid money markets offering services such as lending and borrowing. Supporting a number of crypto assets, the Compound protocol allows users to deposit crypto into lending pools providing capital for borrowers on the network and allowing them to earn interest in return.

After depositing funds into the lending pool, lenders are issued "cTokens" (cETH, cDAI, cBAT) which represent the deposit made. These tokens can then be traded or transferred within the platform, or redeemed for the original cryptocurrency deposited. This process is conducted by smart contracts and operates entirely automatically with interest rates algorithmically assigned based on the activity in its liquidity pools. 

The Compound protocol also uses the ERC-20 native COMP token which is distributed to traders that utilize the Compound market, i.e. borrowing, withdrawing or repaying the asset. COMP tokens are distributed each time an Ethereum block is mined proportional to the interest collected from each asset. The COMP cryptocurrency grants COMP token holders governance and voting rights.

Following notable investments from the likes of consulting firm Bain Capital Ventures, Andreessen Horowitz, and Polychain, the platform has grown and established a strong reputation within the decentralized finance space and the greater crypto world.

The history of Compound and who created it

Compound was founded in 2017 by Robert Leshner and Geoffrey Hayes, who both previously held high-profile jobs at PostMates, an online food delivery service. Leshner holds the CEO position while Hayes remains the CTO at Compound Labs, Inc, the software development firm behind the Compound protocol. Compound Labs is an open-source software development firm creating cutting-edge tools, products, and services for the innovative DeFi ecosystem.

In 2018, the platform raised $8.2 million from notable venture capital firms Bain Capital Ventures and Andreessen Horowitz. A year later, Compound raised an additional $25 million from many of the same investors along with new ones including Paradigm Capital.

How does Compound work?

The Compound protocol leverages the power of Ethereum smart contracts and cryptocurrency incentives to benefit lenders and borrowers. Lend and borrow services make up the two main use cases for the platform, as outlined below.

Interest rates on Compound are dynamically managed based on the supply and demand of particular crypto assets within the coin pools. The higher the liquidity, the lower the interest rate. Prices are determined by using the Open Price Feed based on Chainlink's oracles which collect the data from numerous exchanges.

In order to use the Compound DeFi protocol to engage in lending or borrowing services, you will need to connect one of the supported crypto wallets. Currently, the app supports MetaMask, Ledger, WalletConnect, and Tally Ho. The interface has been designed to be user-friendly and easy to navigate, perfect for traders new to the space as well as seasoned DeFi participants.

Lending/supplying

The process of lending on the Compound platform is called supplying. Lenders are able to earn interest on their cryptocurrency by depositing cryptocurrencies into the Compound platform. Borrowers are also required to deposit digital assets into the protocol, which can earn interest but cannot be withdrawn for the duration of the borrowing period.

The platform currently supports roughly 20 crypto assets, from Basic Attention Token (BAT) to Wrapped Bitcoin (WBTC), with Ethereum (ETH) and a number of stablecoins (DAI, USDC, and USDT) being the most actively used.

Once users lend assets to the platform, they are issued with ERC-20-based cTokens corresponding to the cryptocurrency deposited (i.e. cETH, cDAI, etc.). These tokens confirm the liquidity providers' deposits and offer a number of other incentives.

Borrowing

After depositing a particular cryptocurrency into the decentralized finance protocol, users are assigned a "borrowing capacity". This is a limit set in USD based on the rate of the crypto asset which is determined by the Open Price Feed. When depositing multiple cryptocurrencies, the borrowing capacity will factor this in.

Users can also borrow cryptocurrencies supported by the protocol based on a coin's collateral ratio. For instance, if DAI has a collateral ratio of 70%, users can borrow DAI up to 70% of the total amount deposited. Typically, collateral ratios are between 60% and 85%.

Similar to the lending process, when borrowing cryptocurrency borrowers are issued cTokens. So when borrowing DAI for instance, borrowers will be issued cDAI tokens, with the interest payable based on these tokens as well.

Withdrawing

After paying back the borrowed debt, users can redeem their deposited funds. Without having to deal with other traders, the protocol seamlessly utilizes a dynamically maintained set of liquidity pools. The platform also does not charge any withdrawal penalties or hold users to minimum investment times.

When users redeem their funds, the cTokens issued are added to the accumulated interest and converted back to the originally deposited cryptocurrency. These funds can then be withdrawn into the connected wallet.

Account Health

The Compound platform uses a system called "account health" to establish whether accounts are in risk of liquidation. This system measures the sum of the deposited funds against the total amount borrowed. If a user's account health falls dangerously low, the account could be liquidated, and some of the collateral forfeited.

This process is managed in a decentralized way where platform users act as liquidators and monitor for risky accounts. Should they liquidate an account they earn a portion of the liquidated funds.

What is the COMP token?

The COMP token is the Compound platform's native token which mainly serves as a governance token, with a built-in incentive for users holding the token. Holders of COMP tokens are able to vote on all important decisions pertaining to the protocol, including interest rates. Much like the cTokens, COMP tokens are based on Ethereum’s ERC-20 token standard. 

Compound tokens have a total supply of 10,000,000 tokens, of which over 70% of Compound coins are in circulation (at the time of writing).

How can I buy COMP tokens?

With Tap's mobile app, users can easily acquire COMP tokens and store them in the integrated wallet with confidence, either to hold long-term, sell, trade or use on other DeFi platforms. Tap provide an effortless way of trading digital assets, but also a safe space to keep your cryptocurrencies stored.

In order to access the mobile app users will need to download the app and create an account. After a quick verification process, users have access to a wide range of cryptocurrencies. Whether you're looking to buy Compound or sell Compound coins, Tap provides a seamless solution to your crypto needs.

One of the first stablecoins to come into existence, Dai was launched in 2017 and is maintained and regulated by MakerDAO. Using a series of smart contracts, Dai maintains a value of $1, or very close to it. Due to the coin’s soft peg to the US dollar, the Dai stablecoin not only provides a stable long-term store of value but also a strong medium of exchange. 

Let’s explore what Dai is and how it contributes to the crypto ecosystem. 

What Are Dai tokens?

Dai is an ERC-20-based stablecoin pegged to the US dollar. While more stablecoins hold the fiat currency to which they are pegged in reserves, the Dai stablecoin instead uses several cryptocurrencies to ensure it holds its peg. 

Supported cryptocurrencies include Ethereum (ETH), (BAT), USD Coin (USDC), Wrapped Bitcoin (wBTC), Compound (COMP), and many more. With a wide range of collateralized cryptocurrencies, user risk is decreased and Dai's price stability is increased.

Dai is issued and operated by the Maker Protocol and the MakerDAO (decentralized autonomous organization). Designed to provide a means of lending and borrowing crypto assets, the Dai stablecoin was at the forefront of the DeFi revolution. 

Holders of Dai can also earn interest. The platform also has another coin, MKR, which allows holders to set the Dai Savings Rate (DSR) and act as guarantors for Dai. This ensures that MKR tokens can be liquidated if the system fails. This structure motivates guarantors to ensure that the Dai system and its collateralized coins operate properly.

How do you generate Dai?

Users can generate Dai by paying collateral assets. Dai is created when users deposit ETH or any supported cryptocurrency as collateral. The equivalent amount of Dai is then issued and the user will receive Dai tokens.

If the Dai holders want the collateral assets back, the borrowed Dai can be paid back (plus a stability fee) and the collateral assets will be released. This Dai is then removed from circulation.

History of the Dai Stablecoin

The MakerDAO was first launched in 2015 by Rune Christensen and is the longest-running protocol on the Ethereum blockchain to date. It holds more than 2.3 million ETH in its protocol, approximately 2% of Ethereum’s total supply.

When first created, only Ether could be used as collateral, however, in 2019 more cryptocurrencies were added to this list. The Dai price has always been soft pegged to the US dollar.

How Does DAI Work?

The Dai cryptocurrency is an ERC-20 token that can be bought on both centralized and decentralized exchanges (DEXs). Users can also generate and borrow Dai by using MakerDAO's Oasis Borrow dashboard to establish a Maker collateral vault and put Ethereum-based assets in as collateral.

In its original use, the Maker protocol stored collateral in smart contracts known as maker collateral vaults. These smart contracts held collateral in escrow until the borrowed Dai was repaid, also known as collateralized debt positions (CDPs). The value of the security you send always exceeds the amount of DAI you receive otherwise the collateral will be liquidated. 

The Dai platform is one of the most integrated digital assets in the blockchain industry and can be utilized across decentralized finance (DeFi) applications and blockchain-based games, among other places.

The Advantages of DAI

No Minimum Amount Required

There is no minimum account balance required to use DAI, as there is with most other types of money. A lot of people around the world do not have the minimal amount of assets needed in order to qualify for a bank account, but there is no minimum balance requirement for utilizing DAI.

Price Stability

DAI can serve as a safe alternative store of money and access to financial inclusion for people who live in places where the economy is unstable.

Decentralized Financial Inclusion (smart contracts)

As DAI is a transparent and permissionless system, it allows users to have greater freedom over their money. Zimbabwe and Myanmar, for example, have been recognized as countries where people are limited in their ability to access fiat currency due to daily or monthly withdrawal restrictions on bank accounts imposed by the government.

Passive Income

Users can use DAI tokens to earn money through lockup and interest generation through the DAI Savings Rate system. Because DAI is based on the Ethereum blockchain, it doesn't have its own staking mechanism.

Owners of DAI tokens, on the other hand, may profit by putting DAI into a MakerDAO smart contract. This unique smart contract system protects the user's money and allows for immediate withdrawal.

Quick And Cost-Effective Transactions

In many cases, international wire transfer fees can be extremely high, and the time it takes to complete a transaction might be inconvenient. Global transactions between two users' wallets are made more transparent and efficient due to DAI's low transfer fees and quick processing times.

Operates 24/7

Traditional financial institutions operate only during "business" hours. As a result, transactions through such organizations may be delayed for days and will only finalize after banking institutions are open and transfers have been completed. Transactions can now be completed at any time of the year and on any day of the week using DAI and the Ethereum blockchain.

Continuously Vetted

The MakerDAO system has been found to conduct thorough checks and studies in order to guarantee the platform's security. Developers formally validate all smart contracts and core protocol elements that make up the system's internal architecture through mathematical analysis. Always DYOR (Do Your Own Research) and fully understand any DeFi protocol before using it.

How to get DAI? 

If you're considering including DAI in your cryptocurrency portfolio, look no further than the Tap app. With the Tap app, you can conveniently manage and trade a diverse range of digital assets, including DAI . Whether you're a seasoned trader or new to the world of cryptocurrencies, our user-friendly interface and intuitive features make it seamless for anyone to navigate and engage in the crypto market.

Decentralized finance, or "DeFi," refers to financial services that provide many of the same features as traditional banks - like earning interest on your money and borrowing from others - but without middlemen who take a fee or charge interest, paperwork, or privacy trade-offs. A chartered accountant and Blockchain do not have much in common, but they are starting to as DeFi and FinTech take over. I

nstead of relying on financial services like banks, users can utilize smart contracts on blockchain. Cryptocurrencies ensuring even more ease of use for DeFi users, providing the hottest speeds, fees, and transparency. Defi and digital currencies are growing in popularity thanks to the perks of Blockchain technology. Let us get more into the concept and how it caters to a larger audience.

The aim and use of DeFi

Decentralized finance is the future of financial services, and it's already here. The aim of DeFi is to provide a decentralized financial services platform that is open and accessible to anyone in the world, using tech like crypto to help advance the everyday life of anyone and any business willing to give decentralization a try.

In the past decade, we've seen a rise in peer-to-peer lending platforms such as Lending Club, Patreon, BTCJam, and an explosion of digital currencies such as Bitcoin and Ethereum.

All of these developments have taken us one step closer to the decentralized future of finance that we've been dreaming about, but there's still more work to be done.

What is DeFi attempting to fix?

Many institutions in the financial sector are slow and expensive when it comes to providing basic services like payments. Online lender contracts can charge interest rates as high as 30 percent, and the global remittance industry charges fees that can be as high as 12 percent.

These fees and delays mean some of the most vulnerable individuals of our society are paying the highest prices for financial services when they need them most. While the traditional financial system can be slow and expensive, it doesn't have to be this way. Decentralized finance (DeFi) is an emerging category of services where trust intermediaries such as banks are replaced with cryptographic code and smart contracts, which reduces costs for everyone involved - especially when it comes to international payments.

DeFi is a new category of services that are globally accessible and built on top of blockchain infrastructure, without any charge or barrier to entry. It's also much more secure than traditional financial systems because the technology used isn't connected to a central server that can be hacked. DeFi users smart contracts applications to ensure ease of use and instant transfers of information and funds.

Your money is always yours; it's just moving from one smart contract to another. No permission from an intermediary is required in order to use it. All you need to do is have a cryptocurrency wallet, computer or mobile device, and internet connection like everyone else using DeFi services today.

DeFi isn't coming, it's already here

When you ask yourself, "where is DeFi going?", the answer is simple: everywhere. DeFi can be used from every corner of the world, and it's already available today. Innovation at its finest.

DeFi services are not just theoretical concepts; they are already being utilized by individuals today to facilitate real-world asset payments, generate yield on their digital savings, and access borrowing options from both acquaintances and strangers. These transactions take place without the need for a traditional financial institution or banking system.

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The adoption of DeFi brings about a fundamental shift in the financial landscape. Whether you are an investor seeking new opportunities, a market maker facilitating liquidity, or an asset holder looking for alternative financial options, the transition to DeFi is becoming increasingly inevitable. Its decentralized nature empowers individuals to have greater control over their financial activities, removing intermediaries and introducing a new level of transparency and efficiency.

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Blockchain technology provides the first-ever opportunity for these separate building blocks to come together in order for the entire financial system to work seamlessly without any intermediaries, so it will only get better with time. From an economic standpoint, DeFi offers better rates and all the perks of FinTech. Cryptocurrency assets like Ethereum have seen plenty of growth opportunities arise as DeFi and Blockchain merge.

DeFi pros and cons

In order to get a complete picture of what DeFi is, it's important to understand all the good and bad parts that we are facing now. So let's dive into the details.

DeFi pros:

• The interest rate on savings and money lending is relatively high, just as it would be without intermediaries.
• Financial services are more accessible than in traditional bank systems because there aren't any barriers to entry, like non-existent internet infrastructure or bank account fees.
• Transaction and disruption times are much faster because DeFi transactions can move directly from peer to peer without having to go through intermediaries.
  

DeFi Cons:

• Some transactions might not be as private due to the public records of smart contracts on a blockchain (keeping that in mind, transparency is always beneficial). This however increases security because fraud or reversal can't happen.
• Access to DeFi services can be limited if you live in a part of the globe where these services aren't supported or don't have high enough adoption rates, as compared to traditional banking systems in developed countries. Regulator issues may also occur.
• There isn't a built-in mechanism for handling consumer disputes between peers because the technology simply wasn't designed with this function in mind.
• It's difficult to understand what you're getting yourself into when joining a DeFi service, since it varies from one application to the next and is based on new technology. This doesn't have to be the case in the future.
  

As of now, the decentralized finance (DeFi) sector is still in its early stages, and there are various challenges that need to be addressed before it can be considered a fully viable alternative. The development and adoption of DeFi technologies require extensive effort and collaboration from the industry.

Cryptography is the process of converting messages into unreadable text so that only the intended recipient will be able to read them. Cryptography is responsible for the security, anonymity, and trust less transactions of digital currency. – entirely without the services of a financial institution.

We'll define cryptography as the study of methods to exchange sensitive information over an insecure channel in such away that only authorized parties can access it. In our case, this will be exchanging ownership of cryptocurrencies (which is represented digitally), or transferring ownership by signing digital messages.

A bit of history:

Cryptography dates back to the time when people began exchanging messages in forms other than face-to-face conversations(e.g., via written letters). The first known use of cryptography can be traced to Egypt, about 2000 years ago, during the reign of Pharaoh Thutmose III. Other known historical uses of cryptography are in the works of Julius Caesar, who used a simple cipher for messages between him and his generals.

The purpose of cryptography in crypto

A blockchain-based cryptocurrency needs some form of encryption to secure its money supply from being stolen by hackers or malicious software. It also allows for the anonymous transfer of funds between individuals without requiring a trusted third party, such as a bank or government institution. Cryptocurrencies are entirely based on cryptographic ideas.

Compared to cash transfers, cryptocurrencies do have another layer of security built into the blockchain: cryptography. The purpose of which is to validate transactions and prevent unauthorized access to the ledger by keeping all information inside a digital file that only authorized people can see. It's kind of like a physical vault (or safe) where you can keep all your money. But, unlike a physical vault, there's also no way to access the safe without a private key or password.

Usage of cryptography in Cryptocurrency

Cryptography is used in several different components of Bitcoin's security model, as well as in other cryptocurrencies.

Bitcoin addresses, which are used to receive and send funds between people on the blockchain, have both public keys and private keys. Only the owner of an address's private key can spend funds sent to the address, and only the owner of an address's public key will be able to receive them.

Every time you send or receive bitcoins, your transaction is signed with the appropriate digital signature using your private key. Since you can't share your private key with the person receiving your bitcoins, they verify that the signature is correct using your public key. The process of sending and receiving bitcoins between addresses is entirely anonymous and doesn't require any personal information (although there are ways to link transactions to identities).

Cryptocurrencies use public-key cryptography in order to prove ownership of addresses and transactions. This is done with a piece of data known as a digital signature, which is obtained using the sender's private key, and attached to the end of every transaction block along with other information about that block. Each new transaction has its own signature, verifying that the sender owns the address that is being used to send the funds. Since only the owner of a private key can create a digital signature for it, this provides a very strong guarantee that nobody else has sent their cryptocurrency to an address other than the one currently being spent from.

In a world where every crypto project claims to be 'revolutionary,' Ethereum actually walks the talk, successfully changing how we think about the internet, finance, and digital ownership.

Conceived by Vitalik Buterin in 2013 and launched in 2015, Ethereum expanded the possibilities of blockchain technology beyond simple currency transactions, introducing a world where apps can run exactly as programmed, without censorship or third-party interference.

While Bitcoin introduced us to digital money, Ethereum brought us programmable money (and much more, for the record). You may have heard it being referred to as the world's computer, this is because it allows developers to build and deploy decentralised applications (dapps) that can transform industries from finance to art, gaming to governance.

In this comprehensive guide, we'll explore what makes Ethereum special, how it works beneath the surface, and why it continues to be at the forefront of the blockchain revolution. Whether you're completely new to the concept or looking to deepen your understanding, we'll break down everything from smart contracts to NFTs, the shift to Ethereum 2.0, and what the future might hold for this groundbreaking technology.

What is Ethereum? Explained simply

Think of Ethereum as a global, open-source platform for decentralised applications. While Bitcoin is primarily designed to be digital money, Ethereum is built to be a development platform, a foundation upon which developers can create new applications that no single entity controls.

The easiest way to understand Ethereum is to compare it to your smartphone's operating system. Just as iOS or Android provides a platform for developers to build mobile apps, Ethereum provides a platform for developers to build decentralised apps. These apps run on a network of thousands of computers around the world rather than on centralised servers owned by Google or Amazon.

Ethereum is often described as a "world computer" because it's essentially a massive, distributed computing system that belongs to everyone and no one at the same time. Unlike traditional computers controlled by individuals or companies, this world computer runs programs (called smart contracts) that execute exactly as written, without the possibility of censorship, downtime, or third-party interference.

As a "second-generation blockchain," Ethereum took Bitcoin's innovation (a decentralised ledger) and added programmability to it. This advancement opened up a universe of possibilities beyond simple value transfer, allowing for complex financial instruments, digital ownership records, and even autonomous organisations to exist on the blockchain.

How Ethereum works

At its foundation, Ethereum builds on the same blockchain technology that powers Bitcoin. A blockchain is essentially a chain of blocks, where each block contains a record of transactions. What makes it special is that this record is maintained by thousands of computers (nodes) around the world rather than by a central authority like a bank.

What are smart contracts?

Where Ethereum truly shines is with smart contracts. Think of smart contracts as digital agreements that automatically execute when predefined conditions are met, like a vending machine that delivers your soda when you insert the right amount of money. These contracts are:

• Self-executing: They run automatically when conditions are met
• Immutable: Once deployed, they can't be changed
• Transparent: Anyone can verify the contract's code
• Trustless: You don't need to trust a third party; the code is the guarantee

What is Ether (ETH)?

Ether (ETH) is the native cryptocurrency of the Ethereum network. It serves two important purposes:

1. As a digital currency that can be sent instantly to anyone, anywhere in the world
2. As "fuel" for running smart contracts and transactions on the network

What are gas fees?

This brings us to gas fees. Just as your car needs gas to run, Ethereum operations need "gas" to execute. Gas fees are small amounts of ETH (measured in “gwei,” a subunit of ETH) paid to network participants who contribute computing power to validate transactions. These fees help keep the network secure and prevent spam or infinitely running programs from clogging the system.

When the network gets busy, gas prices rise because there's limited space in each block, making Ethereum transactions sometimes expensive during peak times.

What are token standards?

Ethereum (truly) revolutionised the cryptocurrency ecosystem with its token standards. These are frameworks that define how digital assets behave on the network. 

Ethereum’s token standards are like architectural blueprints in the sense that they provide a consistent design that developers can follow to ensure every structure (token) integrates seamlessly into the broader city (Ethereum ecosystem).

The 3 main Ethereum token standards:

• ERC-20: Created the template for fungible (interchangeable) tokens, making it easy to create new tokens without building a new blockchain (although adoption still depends on design and demand). This standard powers thousands of tokens, including major stablecoins like USDC and most DeFi tokens.
• ERC-721: ERC-721 was the first standard to define non-fungible tokens on Ethereum,, however today there are additional NFT-related standards, such as ERC-2981 for royalties. This standard made possible the digital art revolution, powering collections like CryptoPunks and Bored Ape Yacht Club.
• ERC-1155: ERC-1155, introduced by Enjin, is ideal for games and metaverse applications where users need both fungible and non-fungible currencies and unique collectibles. 

These standards transformed crypto by creating massive interoperability, all of a sudden tokens built on Ethereum worked instantly with hundreds of wallets and exchanges. This "plug-and-play" functionality dramatically accelerated innovation and adoption.

Ethereum's token standards have become so influential that even competing blockchains implement compatibility with them, essentially making them the industry's universal language for digital assets.

The Ethereum ecosystem

Ethereum's true power lies in its vibrant ecosystem that continues to expand in exciting ways:

Decentralised applications (dapps) 

These are applications built on Ethereum that connect users and providers directly without any intermediary organisations controlling the service. Some popular examples include:

• Uniswap: A decentralised exchange for trading tokens
• Aave: A lending and borrowing platform
• OpenSea: A marketplace for digital assets

DeFi (decentralised finance) 

Perhaps Ethereum's most transformative impact has been in finance. DeFi applications recreate traditional financial services like lending, borrowing, and trading, but without banks or brokers. 

Instead, they use smart contracts to create protocols that operate exactly as programmed. By April 2025, the total value locked in DeFi protocols has grown to tens of billions of dollars, demonstrating significant adoption of these new financial tools.

NFTs (Non-Fungible Tokens) 

NFTs represent unique digital assets - from artwork to music to virtual real estate. Unlike cryptocurrencies, where each coin is identical, each NFT has distinct properties that make it one-of-a-kind. 

This technology has revolutionised digital art by enabling verifiable ownership and scarcity for digital creations, leading to an explosion in creative expression and new income opportunities for artists.

DAOs (Decentralised Autonomous Organisations) 

DAOs are internet-native organisations collectively owned and managed by their members. They operate based on rules encoded in smart contracts: members vote on decisions, and the outcomes are automatically executed by code. From investment clubs to charitable foundations, DAOs are reimagining how we organise and collaborate.

Ethereum 2.0 and The Merge

In 2022, Ethereum underwent its most significant upgrade since launch, transitioning from Proof of Work (PoW) to Proof of Stake (PoS) consensus with an event known as "The Merge." This transformation addressed several key challenges:

• Environmental impact 

The original Ethereum (like Bitcoin) used Proof of Work, requiring massive computing power and electricity consumption. The switch to Proof of Stake reduced Ethereum's energy usage by approximately 99.95%, addressing one of the biggest criticisms of blockchain technology.

• Scalability 

Ethereum's popularity led to network congestion and high transaction fees. The move to PoS laid the groundwork for future scaling solutions, including sharding (a method of splitting the network into parallel segments to increase transaction throughput dramatically).

• Staking opportunities 

Under the new system, users can "stake" their ETH (lock it up as collateral) to help secure the network and earn rewards, typically 3-5% annually. This provides a way for ETH holders to earn passive income while contributing to network security.

Ethereum vs other blockchains

Ethereum vs Bitcoin 

While both use blockchain technology, they serve different purposes:

• Bitcoin: Primarily a store of value and medium of exchange
• Ethereum: A platform for building applications and executing smart contracts

Ethereum killers

Several competing platforms have emerged, each claiming to solve Ethereum's challenges:

• Solana: Offers higher transaction speeds and lower costs
• Cardano: Focuses on academic research and formal verification
• Polkadot: Created by an Ethereum co-founder to enable cross-chain interoperability
• Avalanche: Emphasises high throughput and fast finality

Of course, these benefits can come with trade-offs in scalability and ease of use.

Ethereum's advantages 

Despite strong competition, Ethereum maintains significant advantages:

• First-mover advantage and massive developer community
• Highest security due to its large, distributed network
• Most extensive ecosystem of applications and tools
• Strong network effects and brand recognition

Risks and considerations

While Ethereum offers exciting possibilities, as with anything, it's important to understand the risks:

Price volatility 

ETH, like most cryptocurrencies, experiences significant price swings. Since 2015, it has seen both 90% drawdowns and 1000%+ gains. 

Security concerns 

While the core Ethereum protocol has proven secure, smart contracts can contain bugs or vulnerabilities. High-profile hacks have resulted in hundreds of millions of dollars in losses over the years.

Regulatory uncertainty 

Governments worldwide are still determining how to regulate cryptocurrencies and decentralised finance. Regulatory changes could impact certain applications or use cases.

Technical challenges 

Despite improvements, Ethereum still faces challenges with scaling to meet global demand, maintaining decentralisation, and providing a seamless user experience.

The future of Ethereum

Ethereum's roadmap continues to evolve with several key developments anticipated:

Scaling solutions: "Sharding" is expected to significantly increase Ethereum's capacity by splitting the network into parallel segments, potentially enabling thousands of transactions per second.

Layer 2 growth: Solutions built on top of Ethereum like Optimism, Arbitrum, and Polygon continue to gain traction, offering lower fees and faster transactions while maintaining security by settling transactions on the main Ethereum chain.

Industry adoption: Major companies from finance to entertainment are exploring Ethereum for applications ranging from supply chain tracking to royalty distribution. Enterprise adoption is expected to accelerate as scalability improves.

Web3 integration: The vision of Web3 - a more decentralised internet where users control their own data and digital identities - is being built largely on Ethereum. This could fundamentally change how we interact with online services.

How to buy Ethereum (ETH)

If you'd like to become involved in the Ethereum platform and own the digital asset that fuels the network, you will need to purchase ETH through a trusted crypto exchange platform and set up an Ethereum wallet. 

Offering a secure and convenient solution, buying and selling ETH through your Tap app is easier than you might think. With several payment options and a quick verification check, you can start trading, using or hodling ETH from your unique wallet in a matter of minutes. 

Final thoughts: why Ethereum matters

Ethereum represents one of the most ambitious technological experiments of our time - an attempt to rebuild the very foundations of how we transact, collaborate, and create online. By removing intermediaries and enabling direct peer-to-peer interactions, Ethereum challenges traditional power structures and creates new possibilities for human coordination.

Whether Ethereum ultimately fulfils its vision of becoming the settlement layer for a new, decentralised internet depends on how it addresses its remaining challenges around scalability, usability, and regulation. But its impact is already undeniable, having spawned entire industries from DeFi to NFTs and inspired a generation of developers to rethink what's possible with blockchain technology.

The most fascinating aspect of Ethereum may be that we're still in the early chapters of its story. Like the early internet in the 1990s, we can see the potential but can't yet imagine all the ways this technology will transform our world in the decades to come.

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As all things “metaverse” continue to dominate headlines, the virtual world has established itself as front and centre of mainstream media. Decentraland provides a virtual world where users can buy, sell and trade unique assets and engage in interactive apps and peer-to-peer communication alongside in-world payments. The world of Decentraland has seen impressive growth, and it’s about time you learnt about it. 

At its core, Decentraland is a virtual reality platform that allows users to create, experience, and monetize in-house content and applications. Built on the Ethereum blockchain, Decentraland utilizes two main tokens on the platform, LAND and MANA. 

LAND arenon-fungible (NFT) tokens that provide ownership rights to the digital real estate (land parcels) while MANA is the in-house currency that facilitates the sale of LAND and other goods and services available on the platform, like customising one's avatar, for instance. MANA also allows holders to vote on policy updates, subsidies for new developments, and land auctions. 

Decentraland was designed to provide users access to ​​”new artistic medium, business opportunity, or source of entertainment.” The virtual space is made up of 90,601 individual land parcels, each measuring 16m x 16m (256 square meters), and assigned to particular co-ordinates in its “metaverse”.  Each space is assigned to a LAND NFT which records the ownership. 

LAND owners can then develop the land as they please, with several marked districts varying in size and theme. Holders can then lease out the land or provide paid experiences through the creation of animation and interactions experienced on their particular virtual real estate.

Who Created Decentraland?

Decentraland was created by the Decentraland Foundation, founded by ​​Esteban Ordano and Ariel Meilich in 2015, and holds the intellectual property rights as well as maintaining the platform. Before launching, the foundation, which still holds 20% of the total MANA supply, created a decentralized autonomous organization (DAO) allowing the users to make governance decisions. 

In 2017 the project underwent a successful ICO, raising the equivalent of $26 million at the time. These funds were used to drive future operations. 

How Does Decentraland Work?

The core function of the Decentraland network is to track ownership of land parcels, while users engaging in the platform are required to hold MANA in order to participate. 

Through a system of smart contracts each land parcel is tracked on the consensus layer, with each parcel’s own coordinates, owner, and a reference to the content within the parcel. 

The content layer then holds the specifics for each parcel, including the all static audio and visuals, the placement and behavior of items, as well as P2P interactions such as gesturing, voice chat, and messaging. There is then a real-time layer that facilitates all the social interactions of the user avatars.

Decentraland also hosts a marketplace where users can create scenes and wearables and manage and exchange LAND tokens, priced in MANA. 

What Is MANA?

MANA is the governance and in-house currency for the Decentraland ecosystem. With a total supply of of 2.19 billion MANA, roughly 600 million MANA have been burned in LAND transactions bringing the previous total supply down substantially. 

MANA facilitates the platform’s aim of providing a customizable and shared virtual reality space that connects users around the world.

How Can I Buy MANA?

If you’d like to join the metaverse and become a part of the Decentraland virtual community, you can simply buy, sell or trade MANA directly from your Tap account. Whether you're a seasoned trader or new to the world of cryptocurrencies, our user-friendly interface and intuitive features make it seamless for anyone to navigate and engage with MANA.