Learning the friendly way

We are delighted to announce the listing and support of Compound (COMP) on Tap!

COMP is now available for trading on the Tap mobile app. You can now Buy, Sell, Trade or hold COMP for any of the other asset supported on the platform without any pair boundaries. Tap is pair agnostic, meaning you can trade any asset for any other asset without having to worries if a "trading pair" is available.

We believe supporting COMP will provide value to our users. We are looking forward to continue supporting new crypto projects with the aim of providing access to financial power and freedom for all.

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.

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.

Get to know more about Compound (COMP) in our dedicated article here.

We are delighted to announce the listing and support of Kyber (KNC) on Tap!

KNC is now available for trading on the Tap mobile app. You can now Buy, Sell, Trade or hold KNC for any of the other asset supported on the platform without any pair boundaries. Tap is pair agnostic, meaning you can trade any asset for any other asset without having to worries if a "trading pair" is available.

We believe supporting KNC will provide value to our users. We are looking forward to continue supporting new crypto projects with the aim of providing access to financial power and freedom for all.

Kyber Network is a decentralized multi-chain liquidity hub that provides instant, secure transactions on any decentralized application (dapp). Its main goal is to provide deep liquidity pools that offer the best rates for DeFi dapps, decentralized exchanges (DEXs), and other users. Kyber Network is built on the Ethereum blockchain and makes use of intricate smart contracts.

Kyber Network seeks to solve the liquidity issue in the DeFi industry by allowing developers to build products and services using the platform's protocol, while KyberSwap acts as the trustless trading platform that also provides rewards for liquidity providers. With over $1 billion in total volume from over 1 million user transactions, Kyber Network is a growing player in the DeFi space.

Kyber Network Crystal (KNC) is the native coin for the platform and acts as both a utility and governance token. KNC holders can participate in the DAO and governance proposals by staking their assets or delegating their vote. Users can stake KNC to vote on upgrades and policies or delegate their tokens to other validators and earn a portion of the block reward.

Get to know more about Kyber (KNC) here in our dedicated article.

For all those curious about the crypto industry ready to dip their toe in the water, this one is for you. Below we share a warm welcome to the industry with a range of helpful resources covering everything from what cryptocurrency actually is to how to buy and store it. For individuals and businesses alike, let's get into it. 

What Is Cryptocurrency?

A great place to start for any people who are crypto-curious, let's cover the basics. Cryptocurrency is essentially digital cash that can be transferred from one person to another without having to rely on an authoritative entity (like a bank or government or financial institution). 

This peer to peer cash system is supported by blockchain technology, a technology that facilitates the transactions and essentially acts as a giant public ledger where anyone can view any transactions that have been made on the network. 

Through the use of blockchain, a decentralised network (meaning that no one is in charge, rather everyone follows the same protocol) of computers is responsible for verifying and executing transactions. Depending on the network this can be done in a few seconds or up to a few minutes, causing big waves in the traditional financial sector.

If you take away just four points from the above, let it be 

• Digital cash
• Peer to peer
• Blockchain technology
• Decentralised

Cryptocurrency gets its name from cryptography currency, as it uses encrypted code (cryptography) to secure and maintain the network. 

Each cryptocurrency will have a value, based on what it was last traded for, a market capitalisation, a circulating supply and a ticker symbol. The ticker symbol would be BTC for Bitcoin and ETH for Ethereum. 

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Let's Take A Look At The Three Biggest Cryptocurrencies

You've definitely heard of Bitcoin, but what about the other top cryptocurrencies? Below we give a very quick breakdown of the other big projects on the scene based on the biggest market caps. When learning about new coins we strongly advise that you do your own research before making any purchases.

Bitcoin (BTC)

A digital cash system that facilitates the quick and cheap cross-border transfer of money. 

Ethereum (ETH)

A blockchain platform that allows developers to create their own decentralised applications on top of theirs. 

Tether (USDT)

A stablecoin, meaning that its value is pegged to a fiat currency, in this case, the US dollar. 1 USDT will always be worth $1. Stable coins are a great way to enter the market as they are less volatile than traditional cryptocurrencies. ‍

How To Store Cryptocurrency

Similar to fiat currencies, cryptocurrencies need to be stored in a wallet. As the currencies are entirely digital, so too must the wallet be. Each cryptocurrency operates off a different network, requiring one wallet for each network. 

For instance, you cannot store Bitcoin in an Ethereum wallet as Bitcoin runs off a separate blockchain. Different to fiat wallets, digital wallets are how transactions take place. From your wallet, you will enter the crypto wallet address of the recipient and execute the transaction from there. 

To purchase and accumulate cryptocurrency, you will first need a wallet. There are a few different types of wallets, but let's keep it simple for now. On Tap, a fully regulated crypto app, users are automatically given a range of wallets, one for each supported cryptocurrency on the network. This allows users to buy, sell, trade, store and manage many cryptocurrencies from one secure app. Simply head to the Tap website and conveniently download the relevant app from there.

How To Buy Cryptocurrency

Buying cryptocurrency used to be a complicated endeavor however with new products on the market it has become simpler and easier to do. Tap's mobile app is a classic example. Buying crypto Tap has never been so easy all you need to do is to create an account.

You will then be asked to confirm your identity through a process known as KYC (Know Your Customer). This is a common practice required by any entity facilitating the sale of cryptocurrencies. The process is entirely integrated and will require you to submit a picture of an identification document and a selfie of you, easy stuff.

Once your account is created, you can then deposit funds. This can be done through debit card or bank transfer. Simply load your fiat wallet with the currency of your choice for free, using a debit card or a bank transfer as a payment method of your choice. 

With a loaded fiat wallet, you are then able to go shopping! Under Assets on the home screen, select Crypto, then find the cryptocurrency you would like to purchase. Simply click Options, then Buy once you are on the cryptocurrency you would like to purchase. The process is as simple and easy as it sounds. 

After buying crypto, the funds will be deposited into your wallet in a fraction of a second once the transaction has been confirmed. Not too complicated, was it? Submerge yourself into the world of crypto today with the Tap app, head to your Google Play or Apple app stores to get started straight away. 

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We have all heard older generations complain about the price of products "nowadays", talking about how $1 used to buy them a movie ticket and popcorn, compared to the average cost of $10 for just a ticket today. They aren't complaining about nothing, this is a very real issue the world is currently facing and it's known as inflation.

Although, with the way the economy has been going lately, hyperinflation may feel like a more fitting term. In basic terms, hyperinflation is referring to a very high and accelerating inflation rate. Let's cover what inflation is, and how this differs from hyperinflation.

What is inflation?

Inflation refers to a decrease in purchasing power related to a specific currency. This means a progressive increase in the price of goods and services results in a certain amount of money being able to buy less over time.

As already stated above, what $1 used to buy back in the day is merely a fraction of what the product or service now costs. Usually, inflation occurs at a gradual rate, however, there have been instances where inflation rates have accelerated at much faster speeds. This rapid acceleration rate leads to the value of a country's currency being diminished at an alarming rate. This is then referred to as hyperinflation.

Hyperinflation is measured when the inflation rate increases by 50% or more in one month.

What causes hyperinflation?

You may be wondering how hyperinflation occurs, and that's a great question. From an economic standpoint, there are two main causes, although external factors can also come into play. External factors might include war, natural disasters, a pandemic, and more, however, here we will be covering the two main causes.

Number one is an increased money supply. Most think that an excess supply of money sounds great, but it can have colossal impacts on a currency if not backed by economic growth. Countries usually grow through trading, businesses, and bringing money into the country from outside the borders.

This issue comes into play when countries print money at an accelerated rate, increasing government debt with central banks which they then have to pay back with interest. This additional interest and debt gets placed on citizens, who are then expected to pay more tax and pay more for products. 

The second is demand-pull inflation. This can also be described as supply vs demand. While some small businesses see this as a benefit, being able to increase prices due to their unique products, the same can not be said for common household items. This inflation occurs when the demand for products goes up, especially as capitalism rises, yet the production of said products can not contend. 

This creates a gap within the supply, making it hard for businesses and economies to make money unless they raise their prices. So again, we see product prices rising thus reducing the purchasing power of a currency. 

The effects of hyperinflation 

One of the most common effects of hyperinflation is the devaluation of currencies, moving those who hold them to switch to more valuable assets. Whether it is investing in the stock market or another currency, this takes additional money out of the currencies' economy and proceeds to make hyperinflation worse. Luckily those who have invested in other means of value are not as affected by this additional pressure.

Previously, inflation in Zimbabwe reached such dire levels that the country ultimately wrote off its national currency and switched over to the US dollar. At one point, their currency was so hyperinflated that their $100 trillion Zimbabwe dollar banknote could only buy a few loaves of bread. This impact affected banks, foreign trading, and basic government services, creating another ripple effect leading to further inflation. It's a problem that continues to occur, ravaging countries and livelihoods around the world.

Hyperinflation and monetary policies

Central banks play a vital role in preventing hyperinflation through the implementation of monetary policies.. As they control the money supply, regulate interest rates, and oversee the stability of the currency, central banks are responsible for maintaining a balance between growth and inflation. Done so by carefully monitoring economic indicators to manage and prevent potential risks of excessive growth and inflation.

In order to keep hyperinflation at bay, governments need to practise responsible fiscal policies, avoiding excessive borrowing and uncontrolled spending. Maintaining a stable exchange rate and encouraging foreign investments can also strengthen economic stability.

How to combat hyperinflation

In an attempt to curb the devastating effects of hyperinflation, below are four measures that governments and central banks could implement.

Tightening money supply

An obvious one, central banks can reduce hyperinflation risks by curbing the rapid increase in the money supply. This involves limiting the printing of new money and implementing stringent monetary policies.

Interest rate adjustments

By raising interest rates, central banks can discourage excessive borrowing and spending, which acts as a means of stabilising the currency's value and mitigating hyperinflationary pressures.

Currency controls

Implementing currency controls can be a smart move to stop money from leaving the country and prevent risky speculation, all while keeping the currency strong during uncertain economic times.

Currency reforms

In extreme cases, currency reforms, such as introducing a new, more stable currency or adopting a foreign currency as legal tender, can be considered to tackle hyperinflation and restore economic confidence, as was the case with Zimbabwe mentioned above.

Examples of hyperinflation in history

These instances from the past where hyperinflation wreaked havoc serve as a clear indication of the devastating economic impact it can have on countries.

Germany (Weimar Republic):

During the early 1920s, Germany experienced one of the most infamous hyperinflation episodes. Printing money to cover war reparations led to the German Mark's catastrophic devaluation, resulting in absurd price increases and widespread economic collapse.

Zimbabwe:

Mentioned above, in the late 2000s, Zimbabwe endured a severe hyperinflationary crisis, reaching unimaginable levels. Rampant money printing and political instability eroded the Zimbabwean dollar's value, rendering it practically worthless and forcing the country to abandon its currency.

Venezuela:

Starting in the 2010s, Venezuela suffered a hyperinflationary spiral driven by a combination of political mismanagement, plummeting oil prices, and economic turmoil. This ongoing crisis has caused immense hardships for the Venezuelan population.

Yugoslavia:

In the 1990s, Yugoslavia grappled with hyperinflation as a result of political fragmentation and war. Spiralling prices led to the eventual replacement of the Yugoslav dinar with new currencies in several successor states.

Hungary:

Post-World War II, Hungary faced hyperinflation of unprecedented proportions. Skyrocketing prices and economic instability plagued the country until it eventually switched to a new currency.

These history lessons serve as cautionary tales, showing us just how terrible hyperinflation can be and why it's crucial to have solid monetary policies in place to protect against these economic disasters.

In conclusion

Hyperinflation, rapidly increasing inflation rates, is a serious economic problem with disastrous effects, as seen in historical examples like Germany, Zimbabwe, Venezuela, Yugoslavia, and Hungary. While central banks play a crucial role in preventing hyperinflation through monetary policies, governments must too play their part and practice responsible fiscal policies.

While inflation rates might feel dire, hyperinflation is highly unlikely to ever take effect in the United Kingdom as The Bank of England and government have many tools at their disposal to identify and prevent the onset.

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In this article, we’re exploring the most recent addition to the list of supported cryptocurrencies on the Tap App, one of the highly esteemed top 20 cryptocurrencies based on market cap, Algorand (ALGO).

What is Algorand (ALGO)?

Algorand is a decentralized blockchain platform that supports the development of a wide range of dapps (decentralized applications). The platform has been used to create dapps across industries like real estate, copyright, microfinance and more. Launching the same month as its ICO, the Algorand mainnet officially went live in June 2019. 

The Pure-Proof-of-Stake (PPoS) network was created to improve efficiency and transaction times within the crypto space, as well as reduce transaction costs. With no mining (due to the PPoS consensus), Algorand represents a more sustainable and energy-reserving contribution to the space. 

A unique aspect of the platform is that as new ALGO enter circulation with the creation of each new block, the newly minted coins are distributed to everyone who holds a certain amount of ALGO in their wallets. 

While the project is relatively new, it has received the backing of big names and has seen impressive company interest. In June 2021, Arrington Capital bet $100 million on the platform after launching a fund supporting initiatives building on Algorand, while fintech infrastructure provider Six Clovers launched a cross-border payment system on the platform. 

The platform was also selected to host the Marshall Islands CBDC. 

Who created Algorand?

The blockchain platform was created by Silvio Micali, a highly regarded contributor to the crypto space and recipient of the 2012 Turing Award. The MIT computer science professor was recognised for his fundamental contributions to “the theory and practice of secure two-party computation, electronic cash, cryptocurrencies and blockchain protocols.” 

The Algorand whitepaper was co-authored by Stony Brook University professor Jing Chen.

When first conceptualised in 2017, Micali wanted to create a platform that not only provided digital transactions but also tracked assets like titles and property. The platform also allows for the creation of smart contracts (decentralized digital agreements) and tokens. 

How does Algorand work?

The Algorand platform is divided into two layers: layer 1, responsible for ​​ensuring the network’s security and compatibility, and layer 2, responsible for more complex developments. 

Layer 1 supports asset creation, smart contracts, and atomic swaps between assets while layer 2 is reserved for more compound smart contracts and dApp development. These two layers allow the network to process transactions more efficiently, with simple transactions taking place on layer 1, while more complex smart contracts are executed off-chain. 

Through the pure proof of work consensus, the two-phase block production is conducted through a propose and vote system where users who stake ALGO are randomly selected to validate and approve each block as it is created. Stakers only need to hold 1 ALGO in order to generate a participation key necessary to become a Participation Node. 

These nodes are coordinated by Relay Nodes which are not actively involved in the verification process but are responsible for facilitating communication among the Participation Nodes.

The more of the native cryptocurrency a user holds, the more likely they are to be selected. This consensus ensures that the platform is secure, decentralized and able to process transactions in seconds as opposed to minutes (as on other networks).

Algorand is able to process over 1,000 transactions per second (TPS) and validate transactions in less than five seconds.

What is ALGO?

ALGO is the native token to the Algorand platform. As the newly minted coins are distributed to all users holding ALGO (whether on an exchange or in a non-custodial wallet) and not just the nodes verifying transactions, holders of the token are able to earn a 7.5% annual percentage yield (APY). 

A total of 10 billion tokens were minted, with roughly 6.8 billion in circulation at the time of writing. These tokens are gradually entered into circulation through predetermined distribution channels. The token distribution for ALGO is as follows:

• 3.0 billion. To be injected into circulation over the first 5 years, at first via auction.
• 1.75 billion. Allocated to participation rewards.
• 2.5 billion. Allocated to relay node runners.
• 2.5 billion. Allocated to the Singapore-based Algorand Foundation & Algorand, Inc.
• 0.25 billion. Allocated to end-user grants. 

How Can I Buy ALGO?

If you’re interested in accumulating this leading blockchain token, you can do so effortlessly through the Tap app. As part of a new string of supported tokens, Tap users will now be able to buy, sell, trade and store the cryptocurrency that everyone is talking about. 

When it comes to understanding Bitcoin, an important aspect to get familiar with is the mining of it. As we explore what is Bitcoin mining and how does it work, we aim to empower you with a greater understanding of how the network functions as well as how blockchain technology facilitates the operations on the backend. Adaptable to many industries outside of the cryptocurrency space, blockchain technology is at the forefront of the tech revolution. Understanding how Bitcoin mining works is the first step to understanding the technology too. 

What does Bitcoin mining entail?

Forget about shovels and dark tunnels, Bitcoin mining is the decentralized manner in which transactions are verified and new coins are minted. Mining also plays a vital role in the maintenance and operation of the network, ensuring both the security and integrity of the platform at all times. The actual process of Bitcoin mining involves miners using sophisticated computers to solve complex cryptography problems.

The Bitcoin network is made up of a number of nodes (computers) and miners around the world that communicate with each other and constantly share the updated record of the blockchain. The blockchain stores all transactions in a transparent and immutable manner, allowing anyone to view it from wherever they are, however, no one can make any changes.

How does Bitcoin mining work?

Let’s say someone in Japan wants to send money to someone in America through the Bitcoin network. The user in Japan would initiate a transaction from their chosen wallet, pay a network fee, and execute the transaction. This transaction would then enter a mempool, a pool of transactions that are waiting to be confirmed. Typically mempools work on a “first come first serve” basis, however, users can opt to pay a higher network fee should they want to push their transaction further forward in the que. 

Miners will then pick up a number of transactions in the mempool and attempt to solve the complex cryptographic puzzle that will lead them to mining the block. The first miner to solve the puzzle is rewarded with the task of verifying the transactions and adding them to a block, in turn receiving the network fees as well as the block reward. Each block on the Bitcoin network can hold 1MB of transactional data. 

While many miners will attempt to solve the math problem using their own resources, only one miner will be successful. This has sparked a conversation, largely fueled by Elon Musk’s recent tweet, over the electricity consumption it takes to mine Bitcoin. Tesla, the company that Musk heads, recently withdrew Bitcoin from their payment options due to the un-eco friendly manner in which the network operates, as it goes against their company ethos. 

Once the miner has verified the transactions, ensuring that the wallet addresses exist and that there are available coins in the senders’ account, all the transactions are added to a block. This block is then added to the blockchain after the most recently added block, each block indicating the hash code of that block and the block before. This ensures that no one can tamper with the order or edit the content of any blocks. 

The user in America will then receive a notification confirming that their wallet has received the BTC, however it will need to go through three confirmations (sometimes more) before being accessible. Each confirmation is represented by a new block added to the blockchain following the block with your transaction. 

What is a block reward?

The block reward is a monetary reward given in Bitcoin to the miners for adding a new block to the blockchain. It is also the process used to mint new coins and in the process enter them into circulation. Alongside the block rewards, the miner responsible for adding the new block to the blockchain will also receive the network fees of each transaction verified within that block. 

This makes Bitcoin mining a lucrative endeavour, however, the start up costs are significant and your success rate will depend on the equipment, power, and cost of electricity in your area.

What is the halving mechanism?

As Bitcoin will only ever have 21 million coins released, Satoshi Nakamoto created a mechanism that ensures the slow release of coins over time. This is called the halving mechanism, and it automatically executes every 210,000 blocks. During the halving the block reward is halved, ensuring that the cryptocurrency remains deflationary in nature.

This means that for every 210,000 blocks added to the blockchain, the block reward given to the miners will halve. To date there have been three halvings in Bitcoin’s history, with the last one taking effect in May 2020. The block reward is currently 6.25 BTC for every block added to the blockchain.

Want to enjoy the benefits of Bitcoin without mining?

There’s another way to get in on the Bitcoin action without the use of sophisticated hardware and high electricity consumption. Users can tap into the Bitcoin network by buying BTC directly from their phones through the Tap Global app. The process is simple, takes minutes, and allows you to own your very own BTC. Through the Tap app users can also trade, store and spend their cryptocurrency, with advanced technology facilitating the process on the backend to ensure smooth and secure trading.

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