Learning the friendly way

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

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

A bit of history:

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

The purpose of cryptography in crypto

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

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

Usage of cryptography in Cryptocurrency

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

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

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

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

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

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

The aim and use of DeFi

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

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

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

What's wrong and how can DeFi fix it

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

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

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

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

DeFi isn't coming, it's already here

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

DeFi services are not theoretical. They're already being used by real people today to make real asset payments, earn interest on their digital savings, and borrow money from both friends and strangers, all without ever going through a bank or traditional financial institution. Whether you are investing, a money maker, or an asset holder, the shift to DeFi is inevitable.
Blockchain technology provides the first-ever opportunity for these separate building blocks to come together in order for the entire financial system to work seamlessly without any intermediaries, so it will only get better with time. From an economic standpoint, DeFi offers better rates and all the perks of FinTech. Cryptocurrency assets like Ethereum have seen plenty of investment opportunities arise as DeFi and Blockchain merge.

DeFi pros and cons

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

DeFi pros:

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

DeFi Cons:

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

As of now, it's still the early days for DeFi and there are some challenges to overcome before we can look at it as a real alternative. There's still a lot of work to be done, but it will all pay off in the end.

While the crypto industry continues to grow at a breathtaking pace, one problem continues to run wild. That problem is the fact that blockchains are not interoperable, meaning that they can only exist in their individual nature. Polkadot set out to change this, creating a network that aims to connect multiple blockchains in one simple solution. As a direct competitor to Ethereum, the blockchain network has a different structural approach.

What Is Polkadot (DOT)?

Polkadot is a blockchain network created by one of the Ethereum founders. Through the use of intricate architecture, the platform aims to connect multiple networks through their relay chain and parachain system (more on this below). 

Similar to Ethereum, developers can create their own decentralized apps (dapps) and smart contracts on the network. Referred to as a sharding multichain network, Polkadot aims to provide a platform on which developers can build multiple blockchain networks off a common standard. Traders can then trade a range of products built on the network, similar to how ERC-20 tokens are traded.

Who Created Polkadot?

Founded in 2016, Polkadot was created by one of the Ethereum co-founders, Gavin Wood, alongside Peter Czaban and Robert Habermeier. Woods notably created the Ethereum language Solidity, which allows developers to create dapps on the Ethereum network. 

Wood is also the founder of Parity Technologies and the president of Web3 Foundation. Web3 Foundation is a Swiss foundation that was designed to facilitate a user-friendly, open-source decentralized web. The company's approach to crypto is one of its kind and sets it above any other competitor.

How Does Polkadot Work?

As mentioned above, Polkadot utilizes a relay chain and parachain system. Each parachain is a blockchain in itself, however, they all rely on the relay chain to facilitate transactions. These blockchains work in a "parallel" manner (hence the name) and can each hold their own tokens and individual use cases. The relay chain provides blockchain support to the parachains on the network.

Finalizing the transactions and being responsible for maintaining network security, the relay chain is able to facilitate 1,000 transactions per second (TPS). Utilizing a hybrid consensus mechanism, the enterprise network has created proof-of-stake (PoS) and a nominated-proof-of-stake (NPoS) model. 

Through this variation, anyone can stake DOT in a particular smart contract and perform network roles such as being a :

• Validators (validate data in parachain blocks, vote on network changes)
• Nominators (select validators by delegating their staked DOT to them)
• Collators (nodes with full histories of each parachain, that transfer this information into blocks for the relay chain)
• Fishermen (responsible for monitoring the network and reporting bad behaviour to the validators)

These four roles allow Polkadot to have a highly sophisticated user-driven governance system as each role contributes to maintaining and securing the network while eradicating bad behaviour. 

The network is working on a third blockchain functionality known as a bridge. Bridges will allow blockchains on the Polkadot network to interact with "outside" blockchains, essentially allowing tokens to be swapped directly without needing to go through an exchange. 

Through this intensive structuring, Polkadot aims to solve two problems that the blockchain network is currently plagued with scalability and governance. 

What Is DOT?

DOT is the native cryptocurrency to the Polkadot network and is used as a governance and utility token, allowing users to vote on proposed upgrades and used for gas fees. It plays an integral role in maintaining and operating the network. As a digital currency, it can also be used to execute cross-border transactions.

The platform was launched in 2020 and has already established itself in the top 10 biggest cryptocurrencies. 

Does Polkadot Have A Max Supply Cap?

To answer the question "what is the total supply of Polkadot" the answer is that there isn't one. The network opted to leave the total number of DOT infinite. At the time of writing the circulating supply was just short of 1 billion coins.

What Is The Difference Between Polkadot And Ethereum?

A common question in the crypto community, not just because they share similar use cases but also because the two networks share a founder. Both networks provide a platform on which developers can create their own blockchains, and following the launch of Ethereum 2.0., will both be using a PoS consensus. 

Structurally the Polkadot platform differs in that it makes use of parachains and a relay chain. This is a unique feat in the blockchain industry. Through this structure, the network aims to improve on several of Ethereum's functionalities and deliver a trifactor of governance, scalability and interoperability to the blockchain industry, without compromising security. 

How Can I Buy Polkadot?

If you're looking to incorporate Polkadot (DOT) in your cryptocurrency portfolio, look no further than Tap Global. A recent addition to the exchange's portfolio, users can buy, sell, trade and store DOT directly through the professional app. Whether looking to trade DOT for its technology and smart contract capabilities, or to tap into a new market, Tap allows traders to diversify their cryptocurrency portfolio in one secure location.

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Sitting among the 30 biggest cryptocurrencies by market cap, Stellar is focused on bridging the gap between the business of blockchain and the traditional financial institutions. The platform provides a means for users to send assets and money through the blockchain, utilising a decentralised network of authenticators.

Redefining the financial landscape, Steller presents a digital transformation on the traditional services users have become accustomed to. Merging innovation with a practical application, the network is able to help users around the world, as well as financial industries, achieve a more streamlined service. Let's explore what Stellar is.

What is Stellar (XLM)?

Before we dive into the "what", let's first stipulate that one stellar is known as a lumen and uses the ticker XLM. Stellar launched in July 2014 and soon afterwards changed its strategy to be more focused on integrating blockchain technology into financial institutions. 

The concept behind Stellar is to provide a space in which users can transfer everything from traditional crypto and fiat currencies to tokens representing new and existing assets, increasing their transaction performance by using lumens.

Similar to the Ripple XRP network, Stellar is designed to cater to both payment providers and financial institutions, building a bridge between the blockchain and traditional financial sector. Developing on the Ripple concept, Stellar has also positioned itself as an exchange as its ledger has an inbuilt order book that keeps track of all the assets on the network. 

Who Created Stellar?

The founders of Stellar are Jed McCaleb and Joyce Kim, both previously employees at Ripple. McCaleb, who founded and was acting CTO of Ripple, and lawyer Joyce Kim, decided to create Stellar after they left the Ripple team in 2013 following a disagreement on the direction that Ripple was taking. McCaleb is also credited with creating the first successful Bitcoin exchange, Mt Gox. 

McCaleb described Stellar's aim as giving people a means of moving their fiat into crypto and more seamlessly conducting international payments. The network provides cross border transactions with low transaction fees and fast executions. With leading technology and innovative problem solving, the network has made a healthy impression on both institutions and investors alike.

How Does Stellar Work?

Stellar is a hard fork off of the Ripple network with several similarities in design and functionality, however, the platform set itself apart by building in several key features. The platform is secured through the Stellar Consensus Protocol which revolves around these core business concepts: decentralised control, flexible trust, low latency, and asymptotic security.

The biggest upgrade launch came in 2015 when the platform replaced its consensus mechanism with a concept called federated Byzantine agreement. This required nodes to vote on transactions until quorums are reached. Anyone is able to join the consensus, and there are measures in place to inhibit bad actors operating with ill intent on the network.

The software behind the platform is called Stellar Core and can be altered to adhere to the needs of the operation using it. The nodes making up the network can be created to function as either Watchers, Archivers, Basic Validators or Full Validators. For example, watchers can only submit transactions while Full Validators can vote on which transactions are valid and maintain a ledger of all node activity.

Another element to the network is the Stellar Anchors. These gateways are responsible for accepting deposits of currencies and assets and issuing depictions of these on Stellar.

What Is XLM?

Known as lumens, XLM is the native cryptocurrency to the Stellar platform. XLM acts as an intermediary currency for transactions taking place on the network. With cost-effective experience priorities, every transaction on the Stellar network costs 0.00001 XLM, a fraction of a dollar (at the time of writing). 

When the platform launched in 2014, 100 billion lumens were minted, programmed to increase by 1% annually until the total supply reached 105 billion. Five years later the Stellar uses voted to end this process. 

That same year, in 2019, the Stellar Development Foundation (a non-profit organisation) reduced its share of XLM in order to regulate the Stellar economy. This brought the total supply down to 50 billion. At the time of writing, roughly 49% of this total supply is in circulation. 

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Risk in trading is the chance that something might negatively impact an investment. Before engaging in any trading activities it is important to evaluate your appetite for risk, determining whether you are able to handle more risk or are more risk averse. 

Measuring risk will be dependent on the type of asset you are investing in, the amount of capital you have to use, and the time frames in which you expect to see results. Different assets and trading strategies hold different amounts of risk. 

For example, investing in an index fund is considered a low-risk investment and is better advised to investors looking to make a slow and steady return over a longer period of time. Index funds aggregate the performance of the 100 companies listed on a particular stock exchange and pay back dividends accordingly. Because they are large companies the growth is often more likely to be smaller yet consistent. 

With a little more appetite for risk, in the crypto markets, the same could be said about choosing to invest in an emerging altcoin versus established cryptocurrencies like Bitcoin or Ethereum. An emerging asset would encompass a higher risk higher reward ratio, however, no returns are guaranteed. 

You can speak to a financial advisor to get a sense of your risk appetite.

The world we are living in is constantly evolving, finding new ways to embrace technology and the impact it can have on our future. From struggling to get a man on the moon to billionaires casually flying up into space, we have come a long way from what was once only dreams.

One thing that has been on peoples' minds for a while is our integration into a more VR-compatible world. If you have seen the movie "Ready Player One" then you know what we are talking about. Although augmented reality and VR is not as inclusive as it could be yet, it offers an escape from our realities via the internet.

Buying a VR headset and visiting Japan would be much cheaper than plane tickets, accommodation, and money for food. This once-off price for VR has provided a new dream for many of us, and there are a few companies taking advantage of this demand in the market. 

The Metaverse Explained 

Although Metaverse is closely tied to Facebook, now called Meta, the term was first coined in the 1992 novel Snow Crash by author Neal Stephenson. The novel followed a dystopic future where people spend most of their time in a virtual reality metaverse. Why Facebook would base their project on a dystopian novel is a question we can't answer. Facebook isn't even the first company to embrace a "VR universe", we have seen game providers such as Epic Games host VR concerts on their platforms, such as the Travis Scott performance.

We have also seen games like Second Life become increasingly popular as social contact has become limited in past years due to the pandemic, providing a relatively safe virtual world for people to interact. While these platforms have come close, nothing compares to what the Metaverse has in store. 

"Meta" relates to the Greek origin for the word beyond, while "Verse" is associated with the word universe, meaning beyond universe. The core concept of this idea is to create a virtual reality world, giving us access to everything in our world and beyond. From buying to selling to gaming, to human interactions, and more. There is no limit to how far the Metaverse can go.

The Metaverse could provide a way for humans to experience more at a reduced price and easier access, whether that be school education or leisure activities. In its basic form, the Metaverse is a way for people to integrate into a virtual world and perform complex interactions.

What To Expect 

While Facebook, or Meta, has not definitively laid out their plans for the Metaverse and all the more intricate details, there are some things we can expect. So using some creative freedom, basic expectations, and what has been confirmed, these are 5 things you can expect from the Metaverse: 

Virtual reality: The most obvious feature we can expect from the Metaverse is that it will be based in a virtual reality world, or universe, accessible through VR-compatible devices. 

Workspaces: Another feature to expect is a workspace, whether it be to motivate people, or board rooms designed for teams to have talks, we are sure the Metaverse is making space for work. 

Events: We have already seen other platforms host virtual events, this is surely something we will see popping up in the Metaverse. Expect concerts, conferences, and more. 

Games: There has already been some confirmation of VR games entering the Metaverse, we may not be sure what games yet, but it would be a waste not to include a community already interested in VR gaming. 

Retail purchasing: The Metaverse is geared up and ready to take on retail, whether that be allowing people to buy things through the Metaverse for delivery, or to use on the Metaverse. We can expect VR clothing and merch to be a big feature. 

This is just the basics, we believe, with so much more to still be conceptualized and confirmed. The Metaverse, while exciting, holds more praise in its potential than its progress as of yet. Hopefully we will see more fun additions, maybe some VR Disney Worlds or skiing trips down Mount Everest, who knows? 

Things You Might Still Be Wondering About The Metaverse

Now that you know the basics of what a Metaverse is and what to expect from the Facebook Metaverse let delve into some other topics. These are the most frequently asked questions associated with the Metaverse:

Is Metaverse just VR?

Not necessarily, we have seen Metaverse-adjacent projects run their virtual worlds without the use of VR or VR headsets. In short, the Metaverse offered by Facebook is being launched as a Virtual Reality world, but that doesn't mean all will be. 

Do you need Occulas for Metaverse?

The device of choice, or choices, has not been announced as of yet. We expect the Facebook Metaverse to offer more than one option point for accessibility. 

Is Roblox a Metaverse?

At its core basics, yes, it is a virtual world with a variety of interaction options such as retail, socializing, and gaming. 

Who owns the Metaverse?

No one person owns the Metaverse, there are multiple companies working to launch their versions of a Metaverse. There is currently no patent on the term or concept yet, although we may see features patented in the future. 

Is Decentraland a Metaverse?

At its core basics, yes, it is a virtual world with a variety of interaction options such as retail, socializing, and gaming.  

Why is the Metaverse good?

We have highlighted some points, but let's break them down again. It is generally cheaper for some experiences, it is accessible to the world, it's another way for the world to connect, and it's an advancement of technology. There is more, but these are the main focal points. 

In Conclusion 

The Metaverse, whether that be Facebooks' version or another, is a very exciting thing. There are so many possibilities, and ways it can better the world. Virtual protests anyone can join, recovery programs or groups, being able to go to your favorite artist's concert without flying thousands of miles, and more.

The possibilities truly are endless, and we are privileged to be able to be a part of the building's progress. A virtual world, or universe, may have some risks associated with it, but we also see plenty of potential for good. The positives and negatives of the Metaverse are going to vary, from platform to platform, depending on what the company has in store.

While the Facebook Metaverse may be the most mainstream at the moment, there are and will be better Metaverses such as the Microsoft one rising soon enough. So stay tuned as the Metaverse is brought to reality.