Learning the friendly way

Lido's liquid staking service allows users to tap into the benefits of staking rewards without compromising their tokens' liquidity. Lido aims to empower users to put their staked assets to use, supporting a number of PoS cryptocurrencies. The platform offers a liquid staking solution that provides users with a system that allows them to earn rewards on staked coins while also receiving a tokenized version of the staked coins which can generate returns in other DeFi protocols. 

What is Lido (LDO)?

Lido DAO is an innovative decentralized autonomous organization that offers a liquid staking solution on the Ethereum 2.0 blockchain as well as other Proof of Stake (PoS) platforms like Solana (SOL), Polygon (MATIC), Polkadot (DOT), and Kusama (KSM). 

By initially locking up assets, Lido DAO allows users to liquefy their holdings and use them for other protocols - what we call 'liquid staking'. Through this yield-generating process, users are able to receive a tokenized version of their staked tokens on a 1:1 basis when depositing their crypto tokens into the network, which can then be used to participate in other DeFi on-chain activities to gain additional yields.

Since its establishment in December 2020, shortly after ETH 2.0's release, the platform has been overseen by the Lido DAO, with several key members including P2P Capital, KR1 and Semantic Ventures. 

Since then, Lido DAO has gained an impressive reputation for its liquid staking capabilities, and now boasts over $13 billion in staked assets. Its core focus is on Ethereum, yet its horizons are expanding to other blockchain networks including Terra and Solana, both of which launched staking capabilities in 2021, as well as several other layer 1 PoS blockchains.

Lido DAO stands apart from other liquid staking protocols due to its decentralized nature and attractive annual percentage rates (APR). The platform offers 4.8%, 8.1% and 6.6% APR for staking Ethereum, Terra and Solana respectively.

Who created the Lido DAO platform?

Lido was co-founded by Kasper Rasmussen and Jordan Fish, also known as CryptoCobain. Behind the Lido DAO are a number of individuals and organizations that are well-regarded within the DeFi space. 

Lido DAO members include Semantic VC, Chorus, ParaFi Capital, P2P Capital, Libertus Capital, Terra, StakeFish, Bitscale Capital, StakingFacilities, and KR1. Several of the highly esteemed angel investors include Stani Kulechov of Aave, Banteg of Yearn, Will Harborne of Deversifi, Julien Bouteloup from Stake Capital and Kain Warwick from Synthetix.

How does the Lido Protocol work?

Liquid staking services through the Lido protocol allow users to earn block rewards from staking PoS assets while addressing issues like illiquidity, complexity, and centralization. Lido DAO offers an innovative solution that allows users to gain access to the typically locked-up tokens and lowers the barrier to entry and costs associated with staking requirements.

When staking tokens on the Lido DAO platform, users tap into a staking pool smart contract that stakes the tokens on the relevant PoS blockchain. Users will also receive a digitized version of their deposited funds (stAsset tokens), that can be used to bring in rewards from not just the original protocol but also other DeFi protocols and decentralized applications (dapps), like lending and yield farming. This allows users to maximize their earnings potential.

The staking pool smart contract manages the users' deposits and withdrawals, determines the staking reward fees, delegates funds to node operators, and mints and burns tokens as needed.

How tokens can be used

Let's look at ETH for example. With Lido staking, users are rewarded with 1:1 stETH tokens that represent their deposited ETH. Users can use their stETH balance just like regular ETH to earn staking rewards in real-time, updated on a daily basis. There are no lock-ups or minimum deposits when using Lido.

Lido DAO's liquid staking protocol involves three distinctive processes: staking, minting and DeFi.

Staking

Users can choose any amount of ETH to stake, which is then deposited onto the platform. 

Minting

In return for the staked ETH, Lido issues on a 1:1 ratio minted or Lido-native liquid representatives of ERC-20 coin (stETH). 

DeFi

Users can make use of these stETH tokens across the DeFi ecosystem to earn greater yields bypassing the need to "lock up" staked coins. 

With the Lido DAO platform, users can stake any amount of ETH to the Beacon Chain without having to comply with typical lock-up requirements. For providing this staked ETH service, a 10% fee is collected by Lido for each process.

How validator rewards are earned from staked assets

Validator rewards can be earned through staked PoS tokens on the platform. In order to stake ETH, become a validator and earn rewards for validating payments on the Ethereum platform, users are required to stake a minimum of 32 ETH tokens. To bypass this minimum requirement and still earn rewards, Lido allows users to stake a fraction of this amount and earn a proportionate amount of block rewards.

Users will then deposit ETH into the Lido smart contract and receive the same number of stETH (an ERC-20 token representing the deposited ETH). These tokens are minted once the funds have been received and are burned when the users withdraw their original ETH. The staked funds will then be distributed to the multiple validators (node operators) on the Lido network and deposited into the Ethereum Beacon Chain from where they will be secured in a smart contract (and inaccessible).

The Lido DAO will then assign, onboard, support and enter the validators' addresses to the smart contract registry before being given a set of keys for the validation. All ETH that users have deposited on the Lido platform will be split into groups of 32 ETH among the active Lido node operators who will use this public validation key to validate transactions. The block rewards will then be shared proportionately.

This distribution process of sharing staked assets eliminates single-point-of-failure risks common among single-validator staking. 

What is LDO?

The Lido DAO token (LDO) is an ERC-20 token, the native utility token to the Lido protocol used to reward users. The token has a total supply of 1 billion tokens and serves three primary functions. 

The LDO token grants holders with governance rights in the operations of the Lido DAO, as well as the removal or addition of Lido node operators and helping with the management of fee parameters and distribution. 

The more LDO coins a user holds, the more powerful their vote. 

How can I buy the Lido DAO token and earn staking rewards?

If you're looking to expand your digital currencies portfolio, Lido tokens can be a great addition. The Tap app provides an easy and secure way for anyone with an account to add these tokens to their portfolios in no time, making it one of the most effortless trading experiences around.

Utilize the Tap app to access the Lido ecosystem by purchasing LDO tokens with either crypto or fiat currencies. Users can then choose to store their LDO tokens securely in the integrated crypto wallet or transfer them to the Lido platform and engage in the platform's earning potential. All you need to do to get started is download the app and create an account. 

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 MANA directly from your Tap account. As part of a string of newly supported cryptocurrencies, MANA is now available for trade on the Tap app, allowing users to buy, sell and spend MANA as they please. 

The Curve protocol and Curve DAO token form another innovative project to come from the DeFi movement and one that provides a particularly unique and well-designed concept. Improving on functionalities that DeFi platforms like Uniswap and Sushiswap have otherwise neglected, Curve focuses on providing a viable alternative solution to traditional financial platforms in the blockchain industry.  

The Curve Finance platform, launched in January 2020, later released a decentralised autonomous organisation (DAO) alongside the Curve DAO token eight months later. CRV functions as the in-house token of the platform.  

What Is Curve DAO (CRV)?

The Curve platform, formally known as Curve Finance, provides traders with a decentralised exchange on which to swap digital assets. Curve aims to provide minimum price slippage between two tradable crypto assets by focusing on stablecoins or assets of similar value. Through an automated market maker (AMM) and focused smart contracts, the decentralised exchange is able to manage liquidity.  

While the platform can be compared to Uniswap, in reality, it has some key differences and a much higher amount of locked liquidity. The platform and its liquidity providers are more focused on stablecoins and other coins of that nature. CRV tokens fuel the network and are a tradable asset for crypto users.

The Curve DAO provides more decentralised governance to Curve's trading platform. The Curve protocol has grown into a well-respected financial asset within the DeFi ecosystem with its strong DeFi protocol.

Who created the Curve protocol?

The Curve platform was created by a Russian scientist with ample experience in the crypto industry. Michael Egorov both founded the platform and acts as its CEO. He previously co-founded a crypto business focused on building privacy-oriented protocols and infrastructure, NuCypher, in 2015, as well as LoanCoin, a decentralised bank and loans network.

As of August 2020, Egorov holds 71% of the governance tokens after locking up a large amount of CRV tokens in response to yearn.finance’s increasing voting power in the Curve network. In a statement made later, Egorov admitted to “overreacting”.  

How does Curve work?

Launched prior to Uniswap V2, Curve Finance operates similarly to the DeFi platform but has implemented some key differences. The decentralised exchange differentiates itself from the original AMM platform by innovating the liquidity pool trading structure and relevant smart contracts.

The Curve DAO trading platform is managed by a mathematical function called a bonding curve, which is designed to let cryptocurrencies trade for the best possible price amongst each other. Bonding curves are also used by other DeFi trading platforms, like Uniswap.

Due to the Curve DAO platform being primarily focused on stablecoins, its bonding curve is specifically focused on these pegged digital currencies and is able to trade a larger amount of stablecoins with less change in their relative prices in a liquidity pool.

Lending pools

In order for the Curve DAO platform to operate, it requires a group of users who are willing to lock up their cryptocurrencies in order for them to be traded by others. The platform provides a return on their coins plus a portion of the fees from trades when incentivizing liquidity providers.

The platform manages the coins in the liquidity pools by making them more expensive or cheaper, based on their fluctuating amounts, thereby making them more attractive to buyers and sellers using the platform.

On Uniswap, liquidity pools are based strictly on predetermined trading pairs while on Curve DAO the liquidity pools comprise multiple assets. On Curve DAO, entire liquidity pools can also be used as an asset inside another liquidity pool.

How does a trader use the liquidity pools?

Once a trader adds liquidity to a specific pool, through stablecoins or other digital assets, the user will receive a token specific to that pool. 3pool is an example of one of the most popular liquidity pools on the Curve platform.  

While the platform is known to provide trading for stablecoins, it also supports mirrored assets such as renBTC and wBTC. These assets are both built on the Ethereum blockchain and track the price of Bitcoin in a typical derivatives fashion. Since the prices are close in value they can function in the same pool and be traded using the Curve DEX.

What is the Curve DAO token (CRV)?

The CRV token is the utility token and governance token of the Curve DAO platform, providing users with governance rights, an incentive structure for fee payments, as well as providing long-term rewards to liquidity providers. CRV tokens are awarded to users based on their liquidity commitment and length of ownership.  

The Curve DAO token was launched alongside the Curve DAO in August 2020. The maximum supply is 3.03 billion CRV tokens, with 62% of that being distributed to liquidity providers. The rest is allocated between employees (3%), and shareholders (30%), and a small percentage is kept for community reserves (5%). Employee and shareholder allocations work off of a two-year vesting schedule.  

At the time of writing, over 531 million CRV tokens are in circulation, roughly 16% of the total supply.  The market cap at the time was around $365 million, positioning the Curve DAO token network in the top 20 biggest platforms in the DeFi ecosystem.

How can I buy Curve DAO tokens?

If you’d like to buy Curve DAO tokens to include in your crypto portfolio, you can do so easily through the Tap mobile app. Providing a highly secure and equally simple crypto trading platform, users can buy CRV with British Pounds or Euros, or exchange tokens for other cryptocurrencies supported on the platform such as Bitcoin or Ethereum.  

Simply download the app, create an account and follow the steps to get verified through the KYC process. You will then have access to several wallets, and a much simpler crypto trading experience.  

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. Not only does Tap provide an effortless way of trading digital assets, but also a safe space to keep your investments secure over long periods of time.

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 vetted cryptocurrencies as well as fiat wallets where funds can be safely stored or used in the real world. Whether you're looking to buy Compound or sell Compound coins, Tap provides a seamless solution to your crypto needs.

While you’ve likely come across the world of cryptocurrencies, you most probably have stumbled upon the term “blockchain”. But what is the blockchain solution? Blockchain is not only the revolutionary technology behind cryptocurrencies, it also has a large use case outside of the cryptocurrency and even the finance sector.

In the decade since blockchain technologies and digital ledger technology came to light, a host of blockchain networks have been created, most with their own digital currency. As the industry has grown and new blockchain networks have emerged, innovation in the space has increased significantly.

From the Ethereum blockchain providing a platform on which developers can create digital assets and smart contracts to corporate organizations implementing a private blockchain in order to streamline their services, the technology is propelling mankind forward in ways not witnessed in decades.

The blockchain solution provides much more than just digital assets, and industries far beyond just the payment processing ones are catching on. With traditional business networks incorporating the technology, the world of permissioned blockchain is igniting.

What is Blockchain?

Blockchain is a decentralized, transparent, immutable technology that keeps a public record of all information entered. Designed to record and distribute information, not to be edited. Also referred to as a public ledger, a blockchain keeps a record of all information ever inputted and stores it chronologically in blocks.

These blocks are linked to each other through a hashing system, which ensures that no one can ever tamper with the previous records, or try to manipulate the information on them. The “chain” of blocks make up the blockchain database.

The decentralized technology is not typically run by one entity, but rather from a variety of computers (also known as nodes) that make up the network, and work together to validate transactions and all information added to the blocks. Blockchain can be used in two forms, as a public blockchain or as private blockchain networks.

The public version allows anyone to view all information on the network, while the private reserves the information for members granted access.

The Advantages of Blockchain Technology

Powerful Technology

Invented in 2008 alongside Bitcoin by an anonymous entity Satoshi Nakamoto, blockchain is the technology that fueled the new way that money is transacted. Not only that, the technology offers incredible use cases far beyond the financial world. 

Fully Trusted, Fully Automated

One of the key features of blockchain is its ability to function without a central authority. The technology is designed to be maintained by various operating systems on the network, with full autonomy dispersed evenly. Information is stored on the blockchain in such a way that everyone can view it but no one can go back and tamper with it.

Powering Industries

While blockchain is the technology behind crypto, it also offers an incredible backbone to a diverse range of industries outside of this space. Companies like Nestle, Microsoft and Walmart are onboarding blockchain, proving to offer a strong and highly adaptable infrastructure to financial, property, and supply chain management entities. The number of blockchain companies is growing by the day.

The Core Benefits of a Blockchain Network

Decentralized

Blockchain networks are designed to be entirely decentralized meaning that there is no one central authority. The entire network is maintained by nodes (computers) around the world and no single entity has control. 

Immutable

Once the information has been added to a blockchain, no one can tamper, edit, or remove it. As information is verified and added to blocks, this solidifies its presence on the blockchain forever. 

Transparent

Blockchain offers a transparent view of all the activity that takes place on the network. This takes away the need for any checks or balances as all the information is available at any given time, in real-time.

What is the Difference Between a Public Blockchain and Private Blockchain?

When understanding what is blockchain, a common question is whether blockchain is secure. The answer is yes, blockchain is very secure.

Due to its decentralized nature, the technology requires a network of operators (computers) to verify and input all the information. As soon as one tries to input incorrect information or conduct illicit transactions, the network will recognize this and reject it immediately. 

The difference between a public and private blockchain is that public blockchain networks are open for anyone to see, while private blockchains are closed to an organization or a selected group of people.

Cryptocurrency networks are examples of public blockchain networks in that anyone can view all the transaction data. For a private blockchain, however, users will need special permission to access this information.

How is Blockchain Tamperproof?

Each block is made up of three things: the hash code of the previous block, the relevant information, and its own hash code.

When a new block is added, the new block will again have the hash of the previous block, the relevant information, and its own hash. This special sequence of hashes ensures that all blocks are stored chronologically, in a linear fashion, meaning that you cannot tamper with one block's information without tampering with every block after that.

Tampering with blocks would take an enormous amount of computing power and is largely considered impossible. Hence the security of using a digital asset or digital currency.

Blockchain Explained: How Does It Work

At its core, blockchain records and distributes information to a wide network of users that participate in verifying the information and maintaining the network. Let’s take a deeper look at Bitcoin transactions to further explain how blockchain works. 

If one user wanted to send a portion of Bitcoin to another user, they would require the user’s wallet address. Each wallet is made up of two codes, a public and private key, which enable the user to receive BTC (through the public key), as well as access BTC and conduct transactions (through the private key). The sender will then input the receiver’s wallet code and send the amount of Bitcoin they desire. 

This transaction will then enter a pool of transactions waiting to be verified by a miner on the network. The miner will ensure that the sender owns the amount they are sending, and verify the transaction along with a number of other transactions.

On the Bitcoin network, the size of one block is 1MB, which equates to roughly 3,200 transactions able to be stored in one block. When building a blockchain network, the size of the blocks can be increased or decreased to suit the use case. 

Once the transaction has been verified, the miner will record transactions processed and ensure they are added to the chain. The transaction ledger will then be distributed to the rest of the operators on the network. This new version will then override the older versions, and so on as more blocks are added.

Once the block is added to the blockchain and distributed, the funds will reflect in the receiver’s wallet. No need for a bank account or legal contracts, Bitcoin (and other digital currencies) operate entirely separately from traditional banking institutions and allow for the fast, efficient and cost-effective transaction of value.

Fraudulent transactions cannot take place as this will be flagged long before the block is added to the chain. Blockchain work in such a way that network participants can immediately flag ill actors and dismiss fraudulent financial transactions.

Understanding the Difference Between Blockchain and The Bitcoin Blockchain

The burning question: how does blockchain compare to Bitcoin. The answer is that it doesn’t, there are two separate, co-dependent technologies. Bitcoin, the cryptocurrency, is built on blockchain technology and requires it to function. There is no Bitcoin without blockchain technology.

Consider it the backbone of all cryptocurrencies. Blockchain technology, however, is an adaptable technology that can be used outside of the cryptocurrency industry. The technology can be used in any industry, provided that they require a transparent, immutable public ledger. 

One thing the two do have in common is that they were both introduced to the world at the same time. While the concept of blockchain technology was initially invented by researchers W. Scott Stornetta and Stuart Haber in 1991, it was referred to as distributed ledger technology (DLT) and was created purely to store office documents.

The anonymous entity Satoshi Nakamoto built on this and ultimately solved the double spending problem it was plagued with. In 2008, Nakamoto released both blockchain technology and Bitcoin in a whitepaper titled Bitcoin: A Peer-to-Peer Electronic Cash System.

The Bitcoin blockchain refers to the network, while blockchain technology refers to the technology as a whole.

In Conclusion

What is blockchain? Blockchain technology is the transparent, immutable storage of information. As mentioned earlier, this technology has use cases far outside of just the cryptocurrency and financial ecosystems.

Industries like renewable energy, supply chain management, and even farming sectors are now incorporating blockchain technology into their business systems, empowering them with a fully automated and safe means of storing records. 

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Axie Infinity is a blockchain-based trading and battling game that allows users to breed, raise, battle and trade Axie creatures. Inspired by the likes of Pokémon and Tamagotchi, Axie Infinity incorporates blockchain technology and the highly popular NFTs (non-fungible token) into their new-age video game.

In a new wave of supported cryptocurrencies on the Tap exchange, the digital currency AXS was incorporated due to its high trading volume, impressive project, growing community and much-loved user experience. Through combining advanced tech with video game functionality, the Axie Infinity platform has proven to be at the cutting edge of the gaming revolution, for players and investors alike. Discover more about this decentralized asset in the article below.

What Is Axie Infinity (AXS)?

Built on the Ethereum blockchain platform, Axie Infinity is a video game that uses NFTs to represent unique creatures, abilities, land plots and other in-game assets. Through the game, users can earn Axie Infinity Shards (AXS) and Smooth Love Potions (SLP, formerly Small Love Potions).

Proving to be one of the most successful blockchain-based games in the industry, Axie Infinity has built a wide following indicated by its impressive USD market capitalization, price gains and on-chain trading volume.

Each Axie is created unique, with varying attributes that players can choose from. With over 500 body parts available across creature categories like beast, bird, plant, bug, aquatic and reptile, these also fall into rarity scales including common, rare, ultra-rare and legendary. With such a range of options, Axies have become rare commodities within the game and are based on ERC token standards. 

Who Created Axie Infinity?

Axie Infinity was officially founded in 2018 by Trung Nguyen, an accomplished entrepreneur, engineer and CEO of Sky Mavis alongside Aleksander Larsen, an accomplished business developer and COO of Sky Mavis. Sky Mavis is a technology-focused gaming studio based in Vietnam. Another notable name contributing to the development and success of the decentralized gaming tech is Viet Anh Ho, CTO of Sky Mavis and accomplished engineer. 

The company has attracted the attention of notable investors, including Blocktower Capital and Mark Cuban, and has gone through several successful rounds of funding. In the project's final round of funding on the Binance exchange Launchpad, it managed to raise an impressive $2.97 million. 

How Does Axie Infinity Work?

In Axie Infinity players battle their Axies, each based on an ERC-721 non-fungible token (a unique form of digital currency that centres around ownership). Monitoring stats across Health, Morale, Skill, and Speed categories, the Axies play against one another in order to determine the stronger of the lot. 

Axies come in various classes, notably the Aquatic, Beast, Bird, Bug, Plant, or Reptile class or one of the secret classes, Dawn, Dusk, or Mech. Each Axie also has six body parts: back, ears, eyes, horns, mouth, and tail, each category coming with a range of options. 

These unique creatures can then earn SLP for participating in the PVP Arena, Adventure Mode, or quests, and can be bred to create even more unique creatures. The maximum amount of times one Axie can be bred is 7, costing the breeders 4 AXS plus SLP (which varies from 150 SLP for the first round of breeding, reaching 3,150 SLP on the seventh and final round allowed). 

These characteristics and classes all play a role in determining how it will fair in gameplay. At its core, Axie Infinity is a video game based on battles and breeding, however, there is another valuable component to the game: land. Players can purchase and trade homes for Axies, called Lunacias, which are essentially plots of land in the Axie Infinity world. 

There is also the Axie Infinity Marketplace where players can buy and sell Axies.

What are Axie Infinity Shards (AXS)?

AXS are non-fungible tokens based on the ERC-721 Ethereum-based token standard. While used in the game for payments, these tokens also serve as governance tokens, allowing holders to have a say in the development of the project. These digital currencies can also be traded on external exchanges.

On the other hand, SLP is the in-game token used to breed Axies. With increased growth in the community, these tokens have gained investor interest outside of the gaming community.

Can I Earn From Playing Axie Infinity?

The Axie Infinity game is at the forefront of the latest play-to-earn video game economy. Through the game, players are able to earn money through three avenues: selling SLP (smooth love potions), breeding rare Axies, and AXS staking.

Selling SLP

Players can earn SLP in the game by fighting other players in Arena Mode, battling monsters in Adventure Mode and completing a variety of daily missions and quests. These NFTs can then be sold on outside marketplaces.

Breeding Rare Axies

As mentioned earlier, the breeding process can be lucrative as more rare combinations are created. Axies can then be sold in the Axie Infinity Marketplace, usually fetching around $200. In late 2020 an Axie by the name of Angle sold for $120,000.

AXS staking

Coming soon, users will be able to stake AXS in interest-bearing smart contracts.