Learning the friendly way

We are delighted to announce that Tap, your all-in-one assets and payment management platform, and Sweatcoin, the crypto and wellness app, have announced an exciting new partnership aimed at promoting people's financial health and wellbeing. This alliance not only marks the confluence of two innovative industries but is also a testament to the shared values and visions of both companies.

Tap has been at the cutting edge of the fintech industry, offering an all-in-one app for managing crypto assets, fiat on-ramp, and a Mastercard for everyday expenses. Sweatcoin, on the other hand, has been transforming the wellness space by incentivizing physical activity through its unique digital currency. This partnership is not just a sharing of synergies but an embodiment of each company’s commitment to wellness, crypto adoption, and driving the industry forward.

One of the most exciting aspects of this partnership is the reward program. Users of Sweatcoin who join Tap are eligible for rewards of up to $100 in Bitcoin. This is a unique opportunity for users to advance in their journey into the world of cryptocurrencies by simply maintaining they body and finance healthy.

Both companies have a rich history of innovation and social responsibility. Tap cutting-edge financial services are designed to make the transition between fiat and crypto seamless. Sweatcoin has been motivating people to stay active with its digital currency rewards. This partnership is a perfect example of how companies can embody each other’s values and work together towards a common goal.


Tap is making a splash in the fintech sector with its comprehensive app that facilitates crypto management, seamless conversion to fiat currency, and includes a Mastercard for daily transactions. They're deeply committed to empowering individuals to take the reins of their financial destiny. Meanwhile, Sweatcoin has been revolutionizing the wellness space by incentivizing physical activity through its unique digital currency. This alliance is not merely a combination of offerings, but a powerful collaboration that underscores both companies' dedication to all wellness, embracing cryptocurrency, and advancing the industry.

This event signifies not just the collaboration between two industry actors but is also a celebration of the shared vision for a healthier and financially inclusive world.

To hop on board this thrilling rewards train, swing by the rewards section in the Sweatcoin app.

The study of token economics is known as tokenomics. It covers all elements of a cryptocurrency's creation, management, and sometimes removal from a blockchain network. The term "tokenomics" is formed by pairing up the two words "token" and "economics" and is largely used within the crypto ecosystem to project the potential of a cryptocurrency. Tokenomics, simply put, is how token value is determined and what affects its value. 

Tokenomics and cryptocurrencies

Tokenomics and cryptocurrencies are closely connected. Tokenomics refers to the set of rules and principles that govern how cryptocurrencies work. It includes important aspects like how many tokens exist, how they are distributed, and what they can be used for. These rules are crucial for designing and managing cryptocurrencies effectively.

Tokenomics plays a significant role in determining the value of cryptocurrencies. It influences how people perceive and evaluate a cryptocurrency's worth. Factors such as token scarcity (limited supply), the usefulness of tokens in various applications, and the level of demand for them can impact the price and acceptance of a cryptocurrency.

Well-designed tokenomics can foster trust and adoption, and increase the overall value of a digital currency. Conversely, poorly designed tokenomics can hinder adoption and limit the perceived value of a cryptocurrency when traded for fiat currencies or other cryptocurrencies. Therefore, creating a solid and thoughtful tokenomics model is essential for the success and widespread acceptance of cryptocurrencies.

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An example of tokenomics: Bitcoin

Bitcoin operates on a specific set of tokenomics. It has a maximum supply of 21 million coins that will ever enter circulation, ensuring scarcity and value appreciation over time. Ethereum, for example, has an unlimited amount of coins. The issuance of new Bitcoins through mining creates incentives for network security while halving events reduces the rate of new supply.

Additionally, Bitcoin's decentralised nature and widespread adoption contribute to its value, with market demand and utility driving its price in the open market. These tokenomics elements make Bitcoin a deflationary digital asset with a unique economic model within the cryptocurrency ecosystem.

Why is tokenomics important?

Tokenomics is especially important in the crypto space due to the lack of regulation. Since there are no laws governing cryptocurrencies, tokenomics provide an opportunity for cryptocurrencies to be evaluated according to their real-life merit, not just how they are traded on exchanges.

What are the benefits of tokenomics?

Tokenomics offers several benefits within the cryptocurrency ecosystem. Firstly, it establishes clear rules and incentives, ensuring a fair and transparent economic system for participants. Tokenomics can incentivise desirable behaviour, such as staking or contributing to network security, promoting overall network growth and sustainability.

Additionally, tokenomics enables the creation of utility and value for tokens, providing variable economic benefits to holders. It allows for the development of decentralised applications (dapps) and the creation of vibrant ecosystems around cryptocurrencies. Similarly, tokenomics facilitates liquidity and trading opportunities, enabling users to buy, sell, and exchange tokens in various markets.

Overall, tokenomics fosters innovation, incentivizes participation, and contributes to the overall growth and success of the cryptocurrency ecosystem.

What are the negatives of tokenomics?

While tokenomics has numerous advantages, there are some downsides to consider. One downside is the potential for market volatility, as token prices can be subject to rapid fluctuations influenced by various factors, including market speculation and investor sentiment.

Additionally, inadequate or poorly designed tokenomics models may result in economic inefficiencies, lack of token utility, or even vulnerability to manipulation. It's important to note that tokenomics may not guarantee long-term value stability, and investors should carefully assess the risks associated with specific tokens and projects before engaging in the cryptocurrency market.

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The different tokenomics terms explained

Asset valuation

The process of determining the value of a coin or token. This is especially useful for users who want to purchase new coins or tokens. If they can estimate how much a coin or token will be worth in the future, it might be easier to decide whether or not its price is worth tapping into. Coin and token valuation is also important for traders who have made a significant purchase of a coin or token, and want to assess if its price is likely going up or down.

Inflation

In the context of tokenomics, inflation refers to the increase in the token supply over time, resulting in a decrease in the token's purchasing power and value. Inflation can impact the economic stability of a cryptocurrency ecosystem, and its management is crucial to maintain the desired balance between supply, demand, and overall token value.

Deflation

In tokenomics, deflation refers to the decrease in the token supply, leading to a potential increase in the token's purchasing power and value over time. Deflationary tokenomics can promote scarcity, create incentives for holding tokens, and potentially drive price appreciation within the cryptocurrency ecosystem.

Supply and demand elasticity

If a coin has high supply-and-demand elasticity, its price will likely be more affected by changes in demand relative to its supply. This means that if demand for a particular coin rises, the coin will experience more positive price action ($$) than if demand for the same coin fell.

Supply and demand elasticity = (% change in quantity supplied) / (% change in quantity demanded).

Community rewards

When a coin or token has a substantial community surrounding it, it can play a role in contributing to improving the asset’s fundamentals. This is an example of market-based governance that has the potential to lead to a rise in the coin or token's value as it is considered an indicator of trust in the network.

Pump and dump schemes

A pump and dump scheme is a manipulative practice within tokenomics where a group artificially inflates the price of a token through coordinated buying, creating a "pump." This creates a false sense of value and attracts unsuspecting users. Once the price reaches a peak, the group sells off their holdings, causing a rapid price decline, or "dump," leaving other users at a loss. Pump and dump schemes are considered fraudulent and can lead to significant financial losses for those involved.

In conclusion

Tokenomics plays a vital role in the cryptocurrency ecosystem by establishing rules, incentives, and economic principles for cryptocurrencies. It influences the value and acceptance of cryptocurrencies by determining factors such as scarcity, utility, and demand.

Well-designed tokenomics can foster trust, adoption, and increase the overall value of cryptocurrencies. However, it's important to be aware of potential downsides, such as market volatility and poorly designed tokenomics models. Understanding tokenomics helps participants evaluate the real-life merit of cryptocurrencies and make informed decisions.

Near Protocol represents a new generation of blockchain platforms focused on usability and scalability. Launched in 2020, it offers a faster, more efficient alternative to earlier blockchain networks while maintaining robust security.

After several years of implementation, Near Protocol has established itself as a notable player in the layer-1 blockchain space.

TLDR

Scalable & developer-friendly: Near Protocol is a decentralised, layer-1 blockchain designed for high scalability and user-friendly dapp development.

Sharding & low fees: It uses a unique sharded Proof-of-Stake mechanism (Nightshade) to process transactions efficiently while keeping costs low.

Cross-chain interoperability: The Rainbow Bridge enables seamless asset transfers between Near and Ethereum, enhancing blockchain connectivity.

Native token (NEAR): NEAR powers the ecosystem, used for transactions, staking, and governance, with a total supply cap of 1.23 billion tokens.

What is Near Protocol (NEAR)?

Near Protocol is a decentralised blockchain platform designed to be user-friendly and highly scalable. The platform supports the development of dapps (decentralised applications) with a particular focus on usability for both developers and end users. 

The platform utilises a Delegated Proof-of-Stake (DPoS) consensus mechanism called "Nightshade," which implements a technique known as sharding to significantly improve transaction throughput. This approach allows Near to process thousands of transactions per second while maintaining low transaction costs and reducing the environmental impact compared to Proof-of-Work blockchains.

A distinctive feature of Near Protocol is its human-readable account names, eliminating the need for users to interact with long, complex wallet addresses. The platform also incorporates a developer-friendly environment with WebAssembly (WASM) support and tools that make building dapps more accessible.

The platform has gained significant attention for its cross-chain interoperability solutions, particularly through the Rainbow Bridge, which enables asset transfers between Near and Ethereum. The platform has attracted numerous projects across DeFi, NFTs, gaming, and social applications.

Who Created Near Protocol? 

Near Protocol was founded by Erik Trautman, an entrepreneur whose background includes experience on Wall Street and founding Viking Education. 

Trautman partnered with two technical co-founders: Illia Polosukhin, a seasoned software developer with over a decade of industry experience including a three-year tenure at Google, and Alexander Skidanov, a computer scientist whose career path led from Microsoft to memSQL, where he rose to become Director of Engineering. 

This founding team combined financial market knowledge, machine learning expertise, and distributed systems experience to address the scalability challenges facing blockchain technology.

The project was conceptualised in 2018 when the founders recognised the scalability limitations of existing blockchain networks. They set out to build a platform that could deliver the performance needed for mainstream adoption while maintaining security and decentralisation.

The Near team has expanded to include numerous contributors from around the world, with the protocol's development being overseen by the Swiss-based Near Foundation, which provides governance and supports ecosystem growth.

How Does Near Protocol Work? 

Consensus Mechanism and Architecture

Near Protocol operates on a sharded architecture called Nightshade, which divides the network into multiple segments (shards) that process transactions in parallel. This design allows the network to scale horizontally as demand increases and enhances transaction throughput.

This design allows the network to process a high number of transactions per second while maintaining low fees and reducing environmental impact. 

Additionally, Near utilises a mechanism called "Doomslug" for block finalisation, achieving near-instant transaction finality. This means that once transactions are confirmed, they are immediately considered final, unlike some other blockchains that require multiple confirmations.

Near achieves consensus through its unique sharded Proof-of-Stake mechanism, where token holders can stake their NEAR or delegate it to validators who help secure the network. 

Smart Contract Support

The platform supports smart contracts written in Rust and JavaScript, compiled to WebAssembly (WASM) through the AssemblyScript framework. This flexibility enables developers to build complex applications with familiar programming languages.

User-Friendly Features

Near's account model features human-readable account names, simplifying interactions by eliminating the need for complex wallet addresses. The platform also offers account abstraction, allowing for recoverable accounts, multi-signature control, and the ability for users to cover transaction fees on behalf of others, facilitating gasless transactions.

Cross-Chain Interoperability

Near has developed the Rainbow Bridge, enabling seamless asset transfers between Near and Ethereum. This cross-chain interoperability expands the utility of assets and enhances the interconnectedness of the blockchain ecosystem.

What Is NEAR? 

NEAR is the native token of the Near Protocol ecosystem. It serves multiple purposes within the network, including:

• Paying for transaction fees and storage on the blockchain
• Staking to participate in network security and earn rewards
• Voting in governance decisions to determine the future direction of the protocol

The token follows an inflationary model with a maximum supply cap of 1.23 billion tokens, of which approximately 1.18 billion are already in circulation at the time of writing. 

How can I buy and sell NEAR? 

If you're interested in exploring NEAR, you can do so easily through the Tap app. The app supports buying, selling, trading, and storing NEAR tokens, allowing users to manage NEAR alongside other digital assets.

VeChain represents a unique approach to blockchain technology, positioning itself as an enterprise-focused platform that bridges the gap between traditional business operations and decentralised innovation. 

Unlike cryptocurrencies designed primarily for financial transactions, VeChain operates with a dual-token model specifically engineered to solve real-world business challenges, particularly in supply chain transparency and process improvement.

The platform's primary mission centers on bringing trust, transparency, and efficiency to complex business networks. From tracking luxury goods through global supply chains to verifying pharmaceutical authenticity, VeChain has expanded beyond its initial scope to encompass Web3 applications, Internet of Things (IoT) integration, and sustainability initiatives. 

This practical focus has attracted both enterprise adopters seeking operational improvements and investors interested in blockchain technology with demonstrated real-world utility.

What is VeChain (VET)?

VeChain's journey began in 2015 under the leadership of Sunny Lu, former Chief Information Officer of Louis Vuitton China, who founded the project through his company Bitse. This background in luxury retail operations provided crucial insights into the authentication and supply chain challenges that would later define VeChain's core value proposition.

The platform's mission extends beyond simple crypto functionality to address fundamental business needs for transparency, trust, and operational efficiency. VeChain achieves this through a comprehensive ecosystem that encompasses supply chain tracking applications, decentralised apps (dapps), IoT device integration, and sustainability-focused projects.

Central to VeChain's architecture is its innovative two-token system. VET serves as the primary value transfer token and represents the investment asset within the ecosystem, while VTHO (VeThor) functions as the operational fuel for transaction processing. 

This separation allows businesses to predict and control transaction costs while providing token holders with potential value appreciation through VET ownership.

How does VeChain work?

VeChain operates on the VeChainThor blockchain, which uses a Proof of Authority (PoA) consensus mechanism (also referred to as Proof of Authenticity within the VeChain ecosystem). This PoA model relies on 101 Authority Masternodes selected via identity verification and KYC, allowing fast, low-energy, enterprise-suitable consensus. This approach prioritises transaction speed, energy efficiency, and predictable performance over complete decentralisation. 

In 2021, PoA was upgraded to PoA 2.0 (SURFACE) to enhance scalability, security, throughput, and energy efficiency.

How does it work? Authority Masternodes validate transactions and maintain network security, while Economic Nodes and X-nodes provide additional network support and earn rewards based on their VET holdings and node status.

VeChain’s architecture offers clear benefits for businesses:

• Transactions are fast and use very little energy.
• Costs are predictable and low.
• The network performs reliably, even during heavy usage.

These features make VeChain a strong choice for companies that need efficient, dependable, and cost-effective blockchain solutions.

Key features & technology stack

VeChain combines traditional business systems with blockchain technology using several core components. Notably, smart chips, RFID tags, and IoT sensors collect real-time data from physical products and processes. This information is then recorded directly on the blockchain, creating permanent, tamper-proof records.

The platform also offers a full set of tools for developers and businesses. These include smart contracts, data integration APIs, and easy-to-use interfaces for non-technical users, creating space for everything from simple tracking apps to complex, multi-party business solutions.

Governance is then managed through a structured model that balances efficiency and stakeholder input. 

Essentially, the VeChain Foundation sets the overall strategy, while authority node operators help make key network decisions. This approach keeps transaction costs predictable, ensures strong performance, and allows the network to adapt to changing business needs.

Real-world use cases & partnerships

VeChain is used across many industries, showing its flexibility and real-world value.

In pharmaceuticals, companies track medicines from the factory to the pharmacy. This helps ensure authenticity and stops counterfeit drugs from entering the market.

In food production, VeChain gives consumers full traceability - from farm to store shelf - so they can see exactly where their food comes from.

The automotive industry uses VeChain for digital maintenance records and fraud prevention. Partners like Renault and BMW have built systems to log vehicle history, repairs, and ownership transfers on the blockchain. This creates transparent, trustworthy records that help manufacturers, buyers, and sellers while cutting down on fraud in used car sales.

Corporate partnerships have boosted VeChain’s global reach. PwC includes it in their blockchain advisory services, while Walmart China uses it to let shoppers scan products with their phones and confirm origin and safety information.

VeChain has even moved into sports and entertainment - for example, partnering with the UFC to authenticate gloves via NFT technology.

In the public and sustainability sectors, governments and organisations use VeChain to track carbon credits, verify renewable energy certificates, and manage environmental compliance data.

VeChain's tokenomics explained

As touched on earlier, VeChain uses a unique two-token system to separate value storage from transaction costs.

• VET is the main token with a fixed supply. It’s used for transferring value, running smart contracts, and as an investment asset. People who hold VET can take part in network governance and earn VTHO over time.
  
  
• VTHO is the “fuel” for transactions, like gas fees on other blockchains.

The key difference with VeChain’s model is predictability: VTHO is generated at a fixed rate from VET holdings, so businesses can budget for blockchain costs without worrying about token price swings.

This setup is designed to benefit everyone in the ecosystem:

• Developers and businesses get stable, predictable costs.
• Investors have potential for value growth through VET.
• The network stays secure and incentivised for participation.

VeChain price history & market performance

VeChain’s price history has been shaped by both the ups and downs of the wider crypto market and key moments in its own growth. 

Firstly, the native coin started out as VEN tokens, then switched to VET in 2018 with the launch of the VeChainThor mainnet, a big technical step that also set up its current token model.

During the 2021 crypto bull run, VET hit its all-time high as interest in enterprise blockchain and supply chain solutions surged. Like most cryptocurrencies, it later saw sharp drops during market pullbacks.

Also, like most cryptocurrencies, VET’s price has often reacted to news of new partnerships, enterprise adoption, and developments in the blockchain industry. Regulatory discussions around crypto and blockchain in different countries have also played a role.

Today, VeChain is seen as one of the more established blockchain platforms with real-world enterprise adoption, though its market cap is still smaller than bigger general-purpose players like Ethereum and Solana.

How to Buy VeChain (VET)

VET can be bought through platforms that support crypto trading. The process is similar to buying any other digital asset (just ensure that the platform supports VET directly).

First, create an account on a platform that offers VET, then complete the required identity verification, which usually involves providing proof of identity and address. Once verified, add funds using a bank transfer, card payment, or another supported method.

From there, find the VET trading option and place your order. If you’re making a larger purchase, you might consider buying in smaller amounts over time to reduce the impact of price swings.

For long-term storage, VeChain-compatible wallets allow you to manage both VET and VTHO, and some also track VTHO generation. Hardware wallets can provide an extra layer of security.

How to use VeChain

For businesses:
VeChain can be used for things like product verification, protecting data integrity, and connecting IoT devices. It offers APIs and tools so companies can build blockchain solutions without needing deep cryptocurrency knowledge.

For everyday users:
People can interact with VeChain through apps built on the platform, such as NFT marketplaces, supply chain trackers, and sustainability tools. Many of these apps are designed to be easy to use, even for those new to blockchain.

For developers:
VeChainThor supports familiar programming languages and frameworks, with detailed documentation, tools, and a test network for building and testing apps.

For token holders:
Owning VET lets you earn VTHO, join governance discussions, and contribute to network operations by running economic nodes.

Advantages & criticisms of VeChain

VeChain’s strengths lie in its real-world use, enterprise adoption, and operational efficiency. The platform focuses on practical business solutions, leading to partnerships with established companies and measurable results. Its low transaction costs and predictable fees make it appealing for businesses that need to handle large volumes of transactions.

VeChain also emphasises sustainability, supporting corporate goals around environmental responsibility. Its energy-efficient consensus system and applications for carbon tracking and renewable energy verification help achieve these aims.

However, there are some criticisms and risks. VeChain’s Proof of Authority system relies on pre-approved authority nodes, which some say goes against blockchain’s decentralisation principles and could create points of control or failure.

Market volatility is another concern. While the two-token system stabilises operational costs, fluctuations in VET’s price can still affect the ecosystem’s economics.

Finally, VeChain faces competition. Many other blockchain platforms are targeting enterprise use cases, and general-purpose blockchains are increasingly adding enterprise-focused features.

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Litecoin is part of the first generation of altcoins to emerge after Bitcoin ignited the crypto revolution. This peer-to-peer cryptocurrency is a popular option when it comes to transacting in the real world and investors' portfolios, and has been a permanent feature in the top 15 biggest cryptocurrencies by market cap for years. 

What Is Litecoin?

Litecoin was launched in 2011 as an alternative to Bitcoin, providing users with a faster means of transacting money over the internet. While it was never designed to replace Bitcoin, Litecoin was created to complement the original digital money. Litecoin is often referred to as "digital silver" compared to Bitcoin being referred to as "digital gold".

Litecoin is widely considered to be one of the most successful altcoins. Created as a hard fork off of Bitcoin's blockchain, Litecoin holds many similarities in the way it functions, however, the team behind the open-source cryptocurrency incorporated several features to ensure that the network operated in a faster manner.

These include changing the amount of time it takes to process transactions, the maximum total supply, the hashing algorithm, and charging very low transaction fees. Compared to Bitcoin's 21 million total supply and 10-minute transaction processing time, Litecoin has a maximum supply of 84 million LTC and can process transactions in 2.5 minutes. It also opted to use a Scrypt hashing algorithm over the SHA-256 one.

The network is known for pioneering advanced crypto features like the Lightning Network and Segregated Witness, both of which have since been implemented by the Bitcoin network. 

How Does Litecoin Work?

As Litecoin is based on Bitcoin's software, they function in very similar ways. Through the Proof-of-Work consensus, all transactions are executed through mining. When a transaction enters the mempool (pool of pending transactions) it is soon picked up by a miner who will then ensure that all the details are accurate (including valid wallet addresses and available balances).

The first miner to solve a cryptographic puzzle is awarded the task of executing the transactions and in turn, earns a reward. At the time of writing the reward was 12.5 LTC, however, after every 840,000 blocks mined the reward halves in what is known as a halving reward. This mechanism is in place to manage the supply of new tokens entering circulation as each block mined releases minted new tokens.

As mentioned above, transactions are executed in 2.5 minutes, provided there is no congestion on the network, making it attractive to merchants and other service providers. The cost of making a transaction on the Litecoin network ranges from $0.03 or $.04 US cents.

Litecoin vs blockchain technology

Litecoin, like many other cryptocurrencies, is built on blockchain technology. It relies on the blockchain as the underlying technology to facilitate secure and decentralized transactions.

Litecoin transactions are facilitated by the blockchain through a decentralized ledger. When a transaction occurs, it is grouped with other transactions into a block. Miners then validate the transactions and add the block to the Litecoin blockchain. This process ensures the transparency and integrity of Litecoin transactions.

Blockchain plays a crucial role in securing Litecoin transactions by providing a decentralized and immutable record of all transactional activity. Each block is linked to the previous block, forming a chain, making it extremely difficult for malicious actors to alter past transactions. The distributed nature of the blockchain network ensures that no single entity has control over Litecoin transactions, enhancing security and trust in the system.

What gives Litecoin its value?

The value of Litecoin is determined by supply and demand, often determined by trade activity on exchanges. Due to its global liquidity and finite supply, Litecoin is a deflationary currency and has witnessed price gains over the years, making it an attractive option for investors in the global financial landscape over the years. 

What is Litecoin used for?

Litecoin is a peer-to-peer payment system providing both a medium of exchange and a store of value. Due to its fast transaction times and secure network, Litecoin is often favored when making transactions that are time-sensitive, i.e. paying for a coffee or at a restaurant. LTC is widely used by merchants and service providers around the world and has experienced increased crypto adoption and investment over the last decade.  

Who created Litecoin?

The Litecoin project is the creation of a former Google engineer and MIT graduate named Charlie Lee. Two years after creating Litecoin, Lee would go on to become the Director of Engineering at a large cryptocurrency exchange. In 2017, Lee rejoined the team as managing director of the Litecoin Foundation, a non-profit organization dedicated to the development of the blockchain platform and its technology.

Litecoin development and community

Litecoin's development process involves a dedicated team of developers who work on improving the Litecoin software and its functionalities. It follows a transparent and open-source approach, allowing anyone to contribute to its development and propose changes.

The Litecoin software undergoes regular updates and enhancements to ensure it remains secure, efficient, and compatible with emerging technologies. These updates often introduce new features, improve performance, and address any identified vulnerabilities.

Litecoin has a vibrant and active community that actively participates in its evolution. Community members provide feedback, report bugs, and contribute to discussions on Litecoin's future development. Their contributions range from code contributions from developers to community-driven initiatives, fostering a collaborative environment and shaping the direction of Litecoin's growth.

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It's never too late to learn about the new-age financial payment system. Bitcoin has become infinitely more popular with each passing year, and as adoption rates continue to rise, now is the perfect time to become familiar with the world's first and biggest cryptocurrency. 

What Is Bitcoin?

Bitcoin is a peer-to-peer payment system that uses the internet to operate and not a centralised authority like all other currencies. This digital currency cuts out the middleman and instead allows users to send money directly to one another, eradicating high fees, lengthy application processes and time spent waiting for money to clear.

Instead of being operated by a bank, government or financial institution, Bitcoin is run by a network of computers around the world that all follow the same protocol to ensure the network operates smoothly. Blockchain technology forms the backbone of Bitcoin and ensures that all transactions are facilitated in a timely, transparent and immutable manner. 

Bitcoin is a secure, decentralised, borderless payment system and form of digital currency that operates 24 hours a day, 7 days a week. 

Bitcoin is often compared to gold as both assets have proven to be successful investments over the years. While regulation regarding cryptocurrency is still being ironed out, it still remains a widely adopted and heavily used payment system.

What Are The Benefits Of Bitcoin?

Bitcoin brought about an entirely new way to manage one's funds. With the use of blockchain technology and the internet, Bitcoin has become a thriving financial ecosystem over the years. Below we outline several benefits of using Bitcoin.

• Decentralised. The network is entirely free from centralised control, including stopping transactions, freezing accounts and requiring complex paperwork.
• Accessible. Anyone anywhere can tap into the Bitcoin payment system as long as they have an internet connection. The platform is fully inclusive.
• Transparent. While the network is considered to be "pseudonymous", all transactions are still recorded on a public ledger in real time, providing an entirely transparent ecosystem.
• Liquidity. Bitcoin can be traded on hundreds of platforms around the world, ensuring that its liquidity is always in the green.

How Does Bitcoin Work?

Using blockchain technology, the network of computers is able to facilitate digital asset transactions from one peer to another bypassing any middleman. Let's break that down. 

Say Amal wants to send George 1 BTC. She will initiate this through her Bitcoin wallet by entering George's wallet address and the amount. Bitcoin is stored in digital wallets which have two important codes: one is the wallet address (known as the public key) and the other is the private key, a code only the owner of the wallet should know (similar to an ATM pin).

Once Amal has initiated the transaction, it will enter a pool of pending transactions on the network. From there, miners will "pick it up" and compete with one another to be the first to solve a complex cryptographic puzzle. The first one to do so will execute the transaction. 

The funds will then leave Amal's wallet and be deposited into George's wallet. This will be recorded on the blockchain, a transparent digital ledger shared across the entire network, citing the date, time, wallet addresses and amount in a block, which are stored in chronological order. Each Bitcoin wallet's balance will then be updated.

Wallets typically require 3 confirmations before the funds can be spent. This means that three new blocks need to be added to the blockchain, each block representing a confirmation. 

What Gives Bitcoin Its Value?

Bitcoin's value is determined by supply and demand, fluctuating in price when supply decreases and demand increases. When Bitcoin was created it was written into its code that only 21 million BTC will exist. By putting a cap on its total supply, the currency is naturally deflationary in value, the opposite of fiat currencies.

Due to Bitcoin's prominent increase in value over the years many investors have deemed it a strong store of value. This paired with its constant availability and high liquidity makes it an excellent long term investment, known in the industry as "hodling". 

What Is Bitcoin Used For?

With the seamless functionality of cash, its "always open" usability and the fact that it can be transferred anywhere in the world in a matter of minutes, Bitcoin is an excellent medium of exchange. 

Anyone can use Bitcoin as payment for goods and services - many merchants around the world accept the cryptocurrency - or as a store of value. As long as the person has an internet connection, they can send and receive Bitcoin. 

Where Did Bitcoin Come From?

First announced to the world on 31 October 2008, Bitcoin was officially launched in early January 2009. The creator, who remains anonymous to this day, goes by the name of Satoshi Nakamoto and is the pioneer behind the crypto revolution. 

They stated in the project's whitepaper that Bitcoin was created as a response to the global financial crisis. Instead, they wanted to create a currency that was free from government and banks' control, allowing people to take ownership of their funds and be solely responsible for them. 

Somewhere in 2010, Satoshi Nakamoto disappeared and no one has managed to track down their identity since. Many speculate that it was a group of people and not one acting alone.

Since the advent of Bitcoin, a number of new cryptocurrencies have been created. Any new currency that launched was referred to as an altcoin (alternative coin), and this term has stuck. There are over 12,000 cryptocurrencies today, each with its own unique use case. For example, Ethereum was created so that developers could build decentralized applications, while cryptocurrencies like Litecoin were created to improve on Bitcoin's payment system.

How To Invest In Bitcoin

Buying Bitcoin is a lot more straightforward than most people imagine. Simply create an account on the Tap app, verify your identity through the on-screen steps and you'll be able to purchase BTC in no time. Get started here.  Learn how to purchase Bitcoin here

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