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XTP is back soon: ProBit integration underway

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We want to inform you that XTP trading will be temporarily paused starting today on the Tap app. We’ll be temporarily pausing XTP trading on the Tap app. This short pause will give us the time we need to complete the integration of ProBit, an exchange that continues to support XTP trading.

We sincerely apologise for any inconvenience caused by the Bitfinex delisting. XTP was removed alongside several other major tokens, and the short notice left limited time to implement an alternative solution. We moved quickly, and the integration with ProBit an exchange that supports XTP is already in progress.

Here’s what you need to know:

  • XTP trading will be paused for a few days
  • We’re integrating ProBit into our trading engine
  • Once that’s done, XTP trading will resume as usual in the app
  • We’re also in active talks with several other exchanges to expand access to XTP

We know how important XTP is to many of you, and it’s at the heart of the Tap ecosystem. Thank you for your patience and continued trust. We’ll keep you updated and let you know the moment trading goes live again.

The Tap Team

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NEWS AND UPDATES

Millennials and Gen Z: The Catalysts of the Money Revolution?

Millennials and Gen Z are revolutionizing the financial landscape, leveraging cryptocurrencies to challenge traditional systems and redefine money itself. Curious about how this shift affects your financial future? Let's uncover the powerful changes they’re driving!

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The financial world is undergoing a significant transformation, largely driven by Millennials and Gen Z. These digital-native generations are embracing cryptocurrencies at an unprecedented rate, challenging traditional financial systems and catalysing a shift toward new forms of digital finance, redefining how we perceive and interact with money.

This movement is not just a fleeting trend but a fundamental change that is redefining how we perceive and interact with money.

Digital Natives Leading the Way

Growing up in the digital age, Millennials (born 1981-1996) and Gen Z (born 1997-2012) are inherently comfortable with technology. This familiarity extends to their financial behaviours, with a noticeable inclination toward adopting innovative solutions like cryptocurrencies and blockchain technology.

According to the Grayscale Investments and Harris Poll Report which studied Americans, 44% agree that “crypto and blockchain technology are the future of finance.” Looking more closely at the demographics, Millenials and Gen Z’s expressed the highest levels of enthusiasm, underscoring the pivotal role younger generations play in driving cryptocurrency adoption.

Desire for Financial Empowerment and Inclusion

Economic challenges such as the 2008 financial crisis and the impacts of the COVID-19 pandemic have shaped these generations' perspectives on traditional finance. There's a growing scepticism toward conventional financial institutions and a desire for greater control over personal finances.

The Grayscale-Harris Poll found that 23% of those surveyed believe that cryptocurrencies are a long-term investment, up from 19% the previous year. The report also found that 41% of participants are currently paying more attention to Bitcoin and other crypto assets because of geopolitical tensions, inflation, and a weakening US dollar (up from  34%). 

This sentiment fuels engagement with cryptocurrencies as viable investment assets and tools for financial empowerment.

Influence on Market Dynamics

The collective financial influence of Millennials and Gen Z is significant. Their active participation in cryptocurrency markets contributes to increased liquidity and shapes market trends. Social media platforms like Reddit, Twitter, and TikTok have become pivotal in disseminating information and investment strategies among these generations.

The rise of cryptocurrencies like Dogecoin and Shiba Inu demonstrates how younger investors leverage online communities to impact financial markets2. This phenomenon shows their ability to mobilise and drive market movements, challenging traditional investment paradigms.

Embracing Innovation and Technological Advancement

Cryptocurrencies represent more than just investment opportunities; they embody technological innovation that resonates with Millennials and Gen Z. Blockchain technology and digital assets are areas where these generations are not only users but also contributors.

A 2021 survey by Pew Research Center indicated that 31% of Americans aged 18-29 have invested in, traded, or used cryptocurrency, compared to just 8% of those aged 50-64. This significant disparity highlights the generational embrace of digital assets and the technologies underpinning them.

Impact on Traditional Financial Institutions

The shift toward cryptocurrencies is prompting traditional financial institutions to adapt. Banks, investment firms, and payment platforms are increasingly integrating crypto services to meet the evolving demands of younger clients.

Companies like PayPal and Square have expanded their cryptocurrency offerings, allowing users to buy, hold, and sell cryptocurrencies directly from their platforms. These developments signify the financial industry's recognition of the growing importance of cryptocurrencies.

Challenges and Considerations

While enthusiasm is high, challenges such as regulatory uncertainties, security concerns, and market volatility remain. However, Millennials and Gen Z appear willing to navigate these risks, drawn by the potential rewards and alignment with their values of innovation and financial autonomy.

In summary

Millennials and Gen Z are redefining the financial landscape, with their embrace of cryptocurrencies serving as a catalyst for broader change. This isn't just about alternative investments; it's a shift in how younger generations view financial systems and their place within them. Their drive for autonomy, transparency, and technological integration is pushing traditional institutions to innovate rapidly.

This generational influence extends beyond personal finance, potentially reshaping global economic structures. For industry players, from established banks to fintech startups, adapting to these changing preferences isn't just advantageous—it's essential for long-term viability.

As cryptocurrencies and blockchain technology mature, we're likely to see further transformations in how society interacts with money. Those who can navigate this evolving landscape, balancing innovation with stability, will be well-positioned for the future of finance. It's a complex shift, but one that offers exciting possibilities for a more inclusive and technologically advanced financial ecosystem. The financial world is changing, and it's the young guns who are calling the shots.

Terra, Celsius: The crypto crashes in 2022 explained

2022 was a rollercoaster for crypto investors. Explore the reasons behind the crashes of Terra and Celsius and what the future holds.

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There is seldom a dull moment in the cryptosphere. In a matter of weeks, crypto winters can turn into bull runs, high-profile celebrities can send the price of a cryptocurrency to an all-time high and big networks can go from hero to bankruptcy. While we await the next bull run, let’s dissect some of the bigger moments of this year so far. 

In a matter of weeks, we saw two major cryptocurrencies drop significantly in value and later declare themselves bankrupt. Not only did these companies lose millions, but millions of investors lost immense amounts of money. 

As some media sources use these stories as an opportunity to spread FUD (fear, uncertainty and doubt) about the crypto industry, in this article we’ll look at what affected these particular networks. This is not the “norm” when it comes to investing in digital assets, these are cases of not doing enough thorough research. 

The Downfall of Terra

Terra is a blockchain platform that offered several cryptocurrencies (mostly stablecoins), most notably the stablecoin TerraUST (UST) and Terra (LUNA). LUNA tokens played an integral role in maintaining the price of the algorithmic stablecoins, incentivizing trading between LUNA and stablecoins should they need to increase or decrease a stablecoin's supply. 

In December 2021, following a token burn, LUNA entered the top 10 biggest cryptocurrencies by market cap trading at $75. LUNA’s success was tied to that of UST. In April, UST overtook Binance USD to become the third-largest stablecoin in the cryptocurrency market. The Anchor protocol of the Terra ecosystem, which offers returns as high as 20% APY, aided UST's rise.

In May of 2022, UST unpegged from its $1 position, sending LUNA into a tailspin losing 99.9% of its value in a matter of days. The coin’s market cap dipped from $41b to $6.6m. The demise of the platform led to $60 billion of investors’ money going down the drain. So, what went wrong?

After a large sell-off of UST in early May, the stablecoin began to depeg. This caused a further mass sell-off of the algorithmic cryptocurrency causing mass amounts of LUNA to be minted to maintain its price equilibrium. This sent LUNA's circulating supply sky-rocketing, in turn crashing the price of the once top ten coin. The circulating supply of LUNA went from around 345 million to 3.47 billion in a matter of days. 

As investors scrambled to try to liquidate their assets, the damage was already done. The Luna Foundation Guard (LFG) had been acquiring large quantities of Bitcoin as a safeguard against the UST stablecoin unpegging, however, this did not prove to help as the network's tokens had already entered what's known as a "death spiral".

The LFG and Do Kwon reported bought $3 billion worth of Bitcoin and stored it in reserves should they need to use them for an unpegging. When the time came they claimed to have sold around 80,000 BTC, causing havoc on the rest of the market. Following these actions, the Bitcoin price dipped below $30,000, and continued to do so.

After losing nearly 100% of its value, the Terra blockchain halted services and went into overdrive to try and rectify the situation. As large exchanges started delisting both coins one by one, Terra’s founder Do Kwon released a recovery plan. While this had an effect on the coin’s price, rising to $4.46, it soon ran its course sending LUNA’s price below $1 again. 

In a final attempt to rectify the situation, Do Kwon alongside co-founder Daniel Shin hard forked the Terra blockchain to create a new version, renaming the original blockchain Terra Classic. The platform then released a new coin, Luna 2.0, while the original LUNA coin was renamed LUNC. 

Reviewing the situation in hindsight, a Web3 investor and venture partner at Farmer Fund, Stuti Pandey said, “What the Luna ecosystem did was they had a very aggressive and optimistic monetary policy that pretty much worked when markets were going very well, but they had a very weak monetary policy for when we encounter bear markets.” 

Then Celsius Froze Over

In mid-June 2022, Celsius, a blockchain-based platform that specializes in crypto loans and borrowing, halted all withdrawals citing “extreme market conditions”. Following a month of turmoil, Celsius officially announced that it had filed for Chapter 11 bankruptcy in July. 

Just a year earlier, in June 2021, the platform’s native token CEL had reached its all-time high of $8.02 with a market cap of $1.9 billion. Following the platform’s upheaval, at the time of writing CEL was trading at $1.18 with a market cap of $281 million. 

According to court filings, when the platform filed for bankruptcy it was $1.2 billion in the red with $5.5 billion in liabilities, of which $4.7 billion is customer holdings. A far cry from its reign as one of the most successful DeFi (decentralized finance) platforms. What led to this demise?

Last year, the platform faced its first minor bump in the road when the US states of Texas, Alabama and New Jersey took legal action against the company for allegedly selling unregistered securities to users. 

Then, in April 2022, following pressure from regulators, Celsius also stopped providing interest-bearing accounts to non-accredited investors. While against the nature of DeFi, the company was left with little choice.  

Things then hit the fan in May of this year. The collapse of LUNA and UST caused significant damage to investor confidence across the entire cryptocurrency market. This is believed to have accelerated the start of a "crypto winter" and led to an industry-wide sell-off that produced a bank-run-style series of withdrawals by Celsius users. In bankruptcy documents, Celsius attributes its liquidity problems to the "domino effect" of LUNA's failure.

According to the company, Celsius had 1.7 million users and $11.7 billion worth of assets under management (AUM) and had made over $8 billion in loans alongside its very high APY (annual percentage yields) of 17%. 

These loans, however, came to a grinding halt when the platform froze all its clients' assets and announced a company-wide freeze on withdrawals in early June. 

Celsius released a statement stating: “Due to extreme market conditions, today we are announcing that Celsius is pausing all withdrawals, Swap, and transfers between accounts. We are taking this necessary action for the benefit of our entire community to stabilize liquidity and operations while we take steps to preserve and protect assets.”

Two weeks later the platform hired restructuring expert Alvarez & Marsal to assist with alleviating the damage caused by June’s uncertainty and the mounting liquidity issues. 

As of mid-July, after paying off several loans, Celsius filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York.

Final Thoughts

The biggest takeaway from these examples above it to always do your own research when it comes to investing in cryptocurrency or cryptocurrency platforms. Never chase “get-rich-quick” schemes, instead do your due diligence and read the fine print. If a platform is offering 20% APY, be sure to get to the bottom of how they intend to provide this. If there’s no transparency, there should be no investment. 

The cryptocurrency market has been faced with copious amounts of stressors in recent months, from the demise of these networks mentioned above (alongside others like Voyager and Three Anchor Capital) to a market-wide liquidity crunch, to the recent inflation rate increases around the globe. Not to mention the fearful anticipation of regulatory changes. 

If there’s one thing we know about cryptocurrencies it’s that the market as a whole is incredibly resilient. In recent weeks, prices of top cryptocurrencies like Bitcoin and Ethereum have slowly started to increase, causing speculation that we might finally be making our way out of the crypto winter. While this won’t be an overnight endeavour, the sentiment in the market remains hopeful. 

‍

What is a CBDC?

Unveiling the future of money: Explore the game-changing Central Bank Digital Currencies and their potential impact on finance.

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Since the debut of Bitcoin in 2009, central banks have been living in fear of the disruptive technology that is cryptocurrency. Distributed ledger technology has revolutionized the digital world and has continued to challenge the corruption of central bank morals. 

Financial institutions can’t beat or control cryptocurrency, so they are joining them in creating digital currencies. Governments have now been embracing digital currencies in the form of CBDCs, otherwise known as central bank digital currencies. 

Central bank digital currencies are digital tokens, similar to cryptocurrency, issued by a central bank. They are pegged to the value of that country's fiat currency, acting as a digital currency version of the national currency. CBDCs are created and regulated by a country's central bank and monetary authorities.

A central bank digital currency is generally created for a sense of financial inclusion and to improve the application of monetary and fiscal policy. Central banks adopting currency in digital form presents great benefits for the federal reserve system as well as citizens, but there are some cons lurking behind the central bank digital currency facade.

Types of central bank digital currencies

While the concept of a central bank digital currency is quite easy to understand, there are layers to central bank money in its digital form. Before we take a deep dive into the possibilities presented by the central banks and their digital money, we will break down the different types of central bank digital currencies. 

Wholesale CBDCs

Wholesale central bank digital currencies are targeted at financial institutions, whereby reserve balances are held within a central bank. This integration assists the financial system and institutions in improving payment systems and security payment efficiency. 

This is much simpler than rolling out a central bank digital currency to the whole country but provides support for large businesses when they want to transfer money. These digital payments would also act as a digital ledger and aid in the avoidance of money laundering.

Retail CBDCs

A retail central bank digital currency refers to government-backed digital assets used between businesses and customers. This type of central bank digital currency is aimed at traditional currency, acting as a digital version of physical currency. These digital assets would allow retail payment systems, direct P2P CBDC transactions, as well as international settlements among businesses. It would be similar to having a bank account, where you could digitally transfer money through commercial banks, except the currency would be in the form of a digital yuan or euro, rather than the federal reserve of currency held by central banks.

Pros and cons of a central bank digital currency (CBDC)

Central banks are looking for ways to keep their money in the country, as opposed to it being spent on buying cryptocurrencies, thus losing it to a global market. As digital currencies become more popular, each central bank must decide whether they want to fight it or profit from the potential. Regardless of adoption, central banks creating their own digital currencies comes with benefits and disadvantages to users that you need to know. 

Pros of central bank digital currency (CBDC)

  • Cross border payments
  • Track money laundering activity 
  • Secure international monetary fund
  • Reduces risk of commercial bank collapse 
  • Cheaper
  • More secure
  • Promotes financial inclusion

Cons of central bank digital currency (CDBC)

  • Central banks have complete control
  • No anonymity of digital currency transfers
  • Cybersecurity issues 
  • Price reliant on fiat currency equivalent 
  • Physical money may be eliminated 
  • Ban of distributed ledger technology and cryptocurrency

Central bank digital currency conclusion

Central bank money in an electronic form has been a big debate in the blockchain technology space, with so many countries considering the possibility. The European Central Bank, as well as other central banks, have been considering the possibility of central bank digital currencies as a means of improving the financial system. The Chinese government is in the midst of testing out their e-CNY, which some are calling the digital yuan. They have seen great success so far, but only after completely banning Bitcoin trading.

There is a lot of good that can come from CBDCs, but the benefits are mostly for the federal reserve system and central banks. Bank-account holders and citizens may have their privacy compromised and their investment options limited if the world adopts CBDCs.

It's important to remember that central bank digital currencies are not cryptocurrencies. They do not compete with cryptocurrencies and the benefits of blockchain technology. Their limited use cases can only be applied when reinforced by a financial system authority. Only time will tell if CBDCs will succeed, but right now you can appreciate the advantages brought to you by crypto.

Understanding the crypto Travel Rule's role

You might have heard of the "Travel Rule" before, but do you know what it actually mean? Let us dive into it for you.

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What is the "Travel Rule"?

You might have heard of the "Travel Rule" before, but do you know what it actually mean? Well, let me break it down for you. The Travel Rule, also known as FATF Recommendation 16, is a set of measures aimed at combating money laundering and terrorism financing through financial transactions.

So, why is it called the Travel Rule? It's because the personal data of the transacting parties "travels" with the transfers, making it easier for authorities to monitor and regulate these transactions. See, now it all makes sense!

The Travel Rule applies to financial institutions engaged in virtual asset transfers and crypto companies, collectively referred to as virtual asset service providers (VASPs). These VASPs have to obtain and share "required and accurate originator information and required beneficiary information" with counterparty VASPs or financial institutions during or before the transaction.

To make things more practical, the FATF recommends that countries adopt a de minimis threshold of 1,000 USD/EUR for virtual asset transfers. This means that transactions below this threshold would have fewer requirements compared to those exceeding it.

For transfers of Virtual Assets falling below the de minimis threshold, Virtual Asset Service Providers (VASPs) are required to gather:
  • The identities of the sender (originator) and receiver (beneficiary).
  • Either the wallet address associated with each transaction involving Virtual Assets (VAs) or a unique reference number assigned to the transaction.
  • Verification of this gathered data is not obligatory, unless any suspicious circumstances concerning money laundering or terrorism financing arise. In such instances, it becomes essential to verify customer information.
Conversely, for transfers surpassing the de minimis threshold, VASPs are obligated to collect more extensive particulars, encompassing:
  • Full name of the sender (originator).
  • The account number employed by the sender (originator) for processing the transaction, such as a wallet address.
  • The physical (geographical) address of the sender (originator), national identity number, a customer identification number that uniquely distinguishes the sender to the ordering institution, or details like date and place of birth.
  • Name of the receiver (beneficiary).
  • Account number of the receiver (beneficiary) utilized for transaction processing, similar to a wallet address.


By following these guidelines, virtual asset service providers can contribute to a safer and more transparent virtual asset ecosystem while complying with international regulations on anti-money laundering and countering the financing of terrorism. It's all about ensuring the integrity of financial transactions and safeguarding against illicit activities.

Implementation of the Travel Rule in the United Kingdom

A notable shift is anticipated in the United Kingdom's oversight of the virtual asset sector, commencing September 1, 2023.

This seminal development comes in the form of the Travel Rule, which falls under Part 7A of the Money Laundering Regulations 2017. Designed to combat money laundering and terrorist financing within the virtual asset industry, this new regulation expands the information-sharing requirements for wire transfers to encompass virtual asset transfers.

The HM Treasury of the UK has meticulously customized the provisions of the revised Wire Transfer Regulations to cater to the unique demands of the virtual asset sector. This underscores the government's unwavering commitment to fostering a secure and transparent financial ecosystem. Concurrently, it signals their resolve to enable the virtual asset industry to flourish.

The Travel Rule itself originates from the updated version of the Financial Action Task Force's recommendation on information-sharing requirements for wire transfers. By extending these recommendations to cover virtual asset transfers, the UK aspires to significantly mitigate the risk of illicit activities within the sector.

Undoubtedly, the Travel Rule heralds a landmark stride forward in regulating the virtual asset industry in the UK. By extending the ambit of information-sharing requirements and fortifying oversight over virtual asset firms‍

Implementation of the Travel Rule in the European Union‍

Prepare yourself, as a new regulation called the Travel Rule is set to be introduced in the world of virtual assets within the European Union. Effective from December 30, 2024, this rule will take effect precisely 18 months after the initial enforcement of the Transfer of Funds Regulation.

Let's delve into the details of the Travel Rule. When it comes to information requirements, there will be no distinction made between cross-border transfers and transfers within the EU. The revised Transfer of Funds regulation recognizes all virtual asset transfers as cross-border, acknowledging the borderless nature and global reach of such transactions and services.

Now, let's discuss compliance obligations. To ensure adherence to these regulations, European Crypto Asset Service Providers (CASPs) must comply with certain measures. For transactions exceeding 1,000 EUR with self-hosted wallets, CASPs are obligated to collect crucial originator and beneficiary information. Additionally, CASPs are required to fulfill additional wallet verification obligations.

The implementation of these measures within the European Union aims to enhance transparency and mitigate potential risks associated with virtual asset transfers. For individuals involved in this domain, it is of utmost importance to stay informed and adhere to these new guidelines in order to ensure compliance.

‍What does the travel rules means to me as user? ‍

As a user in the virtual asset industry, the implementation of the Travel Rule brings some significant changes that are designed to enhance the security and transparency of financial transactions. This means that when you engage in virtual asset transfers, certain personal information will now be shared between the involved parties. While this might sound intrusive at first, it plays a crucial role in combating fraud, money laundering, and terrorist financing.

The Travel Rule aims to create a safer environment for individuals like you by reducing the risks associated with illicit activities. This means that you can have greater confidence in the legitimacy of the virtual asset transactions you engage in. The regulation aims to weed out illicit activities and promote a level playing field for legitimate users. This fosters trust and confidence among users, attracting more participants and further driving the growth and development of the industry.

However, it's important to note that complying with this rule may require you to provide additional information to virtual asset service providers. Your privacy and the protection of your personal data remain paramount, and service providers are bound by strict regulations to ensure the security of your information.

In summary, the Travel Rule is a positive development for digital asset users like yourself, as it contributes to a more secure and trustworthy virtual asset industry.

‍Unlocking Compliance and Seamless Experiences: Tap's Proactive Approach to Upcoming Regulations‍

Tap is fully committed to upholding regulatory compliance, while also prioritizing a seamless and enjoyable customer experience. In order to achieve this delicate balance, Tap has proactively sought out partnerships with trusted solution providers and is actively engaged in industry working groups. By collaborating with experts in the field, Tap ensures it remains on the cutting edge of best practices and innovative solutions.

These efforts not only demonstrate Tap's dedication to compliance, but also contribute to creating a secure and transparent environment for its users. By staying ahead of the curve, Tap can foster trust and confidence in the cryptocurrency ecosystem, reassuring customers that their financial transactions are safe and protected.

But Tap's commitment to compliance doesn't mean sacrificing user experience. On the contrary, Tap understands the importance of providing a seamless journey for its customers. This means that while regulatory requirements may be changing, Tap is working diligently to ensure that users can continue to enjoy a smooth and hassle-free experience.

By combining a proactive approach to compliance with a determination to maintain user satisfaction, Tap is setting itself apart as a trusted leader in the financial technology industry.  So rest assured, as Tap evolves in response to new regulations, your experience as a customer will remain top-notch and worry-free.

‍

Millennials and Gen Z: The Catalysts of the Money Revolution?

Millennials and Gen Z are revolutionizing the financial landscape, leveraging cryptocurrencies to challenge traditional systems and redefine money itself. Curious about how this shift affects your financial future? Let's uncover the powerful changes they’re driving!

Read more
Terra, Celsius: The crypto crashes in 2022 explained

2022 was a rollercoaster for crypto investors. Explore the reasons behind the crashes of Terra and Celsius and what the future holds.

Read more
What is a CBDC?

Unveiling the future of money: Explore the game-changing Central Bank Digital Currencies and their potential impact on finance.

Read more
Understanding the crypto Travel Rule's role

You might have heard of the "Travel Rule" before, but do you know what it actually mean? Let us dive into it for you.

Read more
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LATEST ARTICLE

Crypto
James
What are smart contracts on the blockchain ?
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When learning about cryptocurrencies you're likely to come across the term "smart contracts". First popularised by Ethereum, smart contract functionality is now a regular feature among platforms that allow developers to build decentralized apps (dapps).

In this article, we're breaking down what smart contracts are, how smart contracts work, and where they came from.

What is a smart contract?

A smart contract is a digital agreement that executes based on the terms of the agreement. The terms are predetermined and written into the smart contract's code, ensuring that no edits can be made once the smart contract has been executed. As the smart contract is written using blockchain, the transactions are transparent and irreversible.

Due to the nature of these digital agreements, they can be carried out by two anonymous parties without the need for a third party/ central authority.

Smart contracts generally require payment for their creation, as the execution of the smart contract will require energy from the network. Ethereum smart contracts, for example, require gas fees in order to be created and executed, which are paid directly to the platform. The more complex the smart contract, the higher the gas fees. Other smart contracts will require payment in the digital assets utilized by the platform.

Smart contracts work because they are automated and utilize powerful decentralized technology.

Benefits of smart contracts

First and foremost, the biggest benefit of smart contracts is that they are trustworthy as they cannot be tampered with, nor can a third party intervene. So smart contracts cannot be hacked as they use blockchain technology to encrypt the information.

Smart contracts are cost-effective as they eradicate the middleman and save the users both time and fees that would otherwise come with them. Once certain criteria are met, smart contracts automatically execute, requiring no time delays, paperwork, or room for error. A smart contracts accuracy is determined by the accuracy of the coding used to create the smart contract.

many industries including insurance companies are using smart contracts to streamline and automate their business processes, including fulfilling legal obligations and managing financial transactions. By utilizing if-then statements, the insurance company can create smart contracts that automatically execute the insurance payment to policyholders when certain conditions are met. This can be used to process claims, pay out benefits, and manage other contracts in the same way.

How do smart contracts work?

Smart contracts are digital agreements built using blockchain. Developers looking to create a smart contract will need to utilize a blockchain platform that provides such functionality.

Determine agreement terms

Developers will first need to determine what the agreement terms are as well as the desired outcome. For example, one might create a smart contract that stipulates when 0.5 BTC is received by a certain digital assets wallet the code to a keypad on a property will be sent to the renter.

Determine conditions of agreement

Establish the conditions of the smart contract such as payment authorization or shipment receipt.

Write code

Using a smart contract writing platform, developers will write the code. This will then be sent to another team, such as an internal expert, for security testing.

Smart contracts deployed

Once approved, the code is then deployed on the blockchain platform. The smart contract will then be alerted to any event updates.

Smart contracts executed

Once the terms of the agreement are met and communicated to the blockchain through an oracle (a secure streaming data source), the smart contract will then automatically execute the desired outcome.

One might liken a smart contract to a digital vending machine. The terms of the agreement are understood by both parties involved prior to the transaction. Through an automated process, one party will input the initial criteria (the funds) and the predetermined outcome will be executed automatically (the selected goods will be released).

History of smart contracts

Smart contracts were first conceptualized by American computer scientist, Nick Szabo, the creator of the first digital money "Bit Gold", in 1998. He created them with the intention to digitize transaction methods to replace traditional contract and defined these smart contracts as "computerized transaction protocols that execute terms of a contract."

"These new securities are formed by combining securities (such as bonds) and derivatives (options and futures) in a wide variety of ways. Very complex term structures for payments can now be built into standardized contracts and traded with low transaction costs, due to computerized analysis of these complex term structures."

Szabo's concept remained purely theoretical until the invention of public blockchain technology, which provided the necessary infrastructure for storing and executing smart contracts. In recent years, smart contracts have been used in a variety of industries, including finance, real estate, and supply chain management. While there are still some security concerns with the technology, the use of smart contracts could further increase the efficiency and reliability of transactions.

Conclusion

Smart contracts are digital a contracts between two parties that are automatically executed once certain conditions are met without time delay. Built on the blockchain, smart contracts are immutable, irreversible, and transparent, and require no third parties. Smart contracts are written in varying programming languages dependant on the blockchain network on which they are created. This technology ensures that the smart contracts are implemented correctly.

Företag
Ash
What is PaaS ( Platform-as-a-Service )?
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We’ve covered what Proof of Work and Proof of Stake is, but what is PaaS?

In this article, we’re making this rather complicated-sounding term easy to understand as we explore where it came from, what it means, and why it’s likely to keep popping up in the crypto realm. 

What Is PaaS?

PaaS stands for Platform as a Service and refers to a cloud delivery service that uses third-party cloud service providers. “As a service” indicates that the cloud computing service is provided by a third party, rather than the user having to manage their own hardware and software.

PaaS providers offer a range of services, including operating systems, databases, middleware, and other software development tools. PaaS offerings can be used for both cloud-native and hybrid cloud applications.

PaaS solutions are popular among software developers and businesses looking to migrate their applications to the cloud. They provide an application development platform that can be used to build and deploy applications quickly and easily, without the need for specialized hardware or software.

Some of the key benefits of PaaS include reduced costs, faster deployment, and greater flexibility and scalability. PaaS providers offer a range of services, including operating systems, databases, middleware, and other software development tools. This allows users to develop, run, and manage applications without having to worry about the underlying infrastructure.

The History of PaaS

PaaS first appeared in 2005 as Zimki under the company Fontago. Zimki allowed users to build and deploy web services and applications through its code execution platform.

Billing was determined based on the number of JavaScript operations, the amount of web traffic and the total storage used, providing users with a much clearer cost structure than on other platforms. The platform was eventually shut down in 2008 by its parent company.

That same year the Google App Engine was launched allowing users to create web services and applications using languages like Go, PHP, Node.js, Java and Python.

Today, Google remains the biggest PaaS vendor in the world. 

How Does PaaS Work?

Instead of replacing its overall IT infrastructure and running these services in-house, PaaS streamlines access to its key services. This helps to reduce time in deployment as well as minimize startup costs. 

PaaS allows users to tap into resources and functions like capacity on demand, data storage, text editing, vision management and testing services despite being in geographically different locations. All while using a pay-per-use model. 

PaaS Offers Development Tools

PaaS, or Platform as a Service, is a cloud-based platform that provides users with access to the tools and resources needed to develop and run applications. Instead of replacing its overall IT infrastructure and running these services in-house, PaaS streamlines access to its key services, allowing users to easily tap into resources and functions like capacity on demand, data storage, text editing, vision management, and testing services. This pay-per-use model enables users to access the tools and resources they need without incurring the high costs of building and maintaining their own infrastructure.

PaaS technology offers a range of benefits for both developers and businesses, including the ability to easily integrate databases, manage infrastructure, and access data centers. This can provide a range of advantages, such as improved performance, enhanced security, and increased scalability.

PaaS technology providers also offer a range of services and support to their customers, including integration platforms and infrastructure management services. This can help businesses to quickly and easily integrate their applications with other systems and platforms, allowing them to take advantage of the benefits of PaaS without having to worry about the underlying infrastructure.

PaaS vs IaaS vs SaaS

PaaS, IaaS, and SaaS are all different models of cloud computing. PaaS, or Platform as a Service, provides access to the tools and resources needed to develop and run applications, while IaaS, or Infrastructure as a Service, offers access to the underlying infrastructure, including storage, networking, and computing power. SaaS, or Software as a Service, provides access to software applications over the internet.

These models differ in terms of what areas are handled on-site and which are handled by a third-party provider. For example, with PaaS, the infrastructure and operating system are managed by the provider, while the customer focuses on developing and deploying their own applications. With IaaS, the provider manages the infrastructure, while the customer is responsible for the operating system and applications. With SaaS, the provider manages everything, including the infrastructure, operating system, and applications.

Examples of companies that offer PaaS services include Amazon Web Services and the IBM Cloud, while IaaS providers include AWS, Microsoft Azure, and Google Cloud. Dropbox, Salesforce, and Google Apps are examples of SaaS providers.

These models offer advantages to businesses and developers looking to enter the cloud computing space. For example, PaaS offers the ability to focus on app development without worrying about the underlying infrastructure, while IaaS and SaaS provide access to cloud resources and the ability to quickly deploy and scale applications. These models can also be used to build communications platforms and other mobile applications, providing access to the necessary infrastructure and resources.

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PaaS Provider In Blockchain

The use of PaaS technology, or Platform as a Service, within the blockchain industry is becoming increasingly popular. While blockchain platforms themselves are not typically structured in a PaaS way, the concept of BPaaS, or Blockchain Platform as a Service, offers businesses and enterprises the opportunity to focus on the development of software and other services for customers.

BPaaS provides numerous advantages for companies looking to enter the blockchain space. It allows businesses to leverage the power of cloud-based infrastructure and resources to develop and deploy applications without the need to manage their own hardware and software.

PaaS providers like Amazon Managed Blockchain and the IBM Blockchain Platform are leading the way in offering BPaaS solutions to businesses. These platforms offer a range of tools and resources for application development, including integrated development environments (IDEs), code libraries, and APIs. This allows developers to focus on building and deploying their own blockchain-based applications without worrying about the underlying infrastructure.

Overall, the use of PaaS in the blockchain industry offers numerous benefits, including reduced production costs, streamlined deployment, and the ability to easily integrate specific AI capabilities into applications. This makes it an attractive option for businesses looking to enter the blockchain space.

Crypto
Ash
Crypto Lending: How Does It Work ?
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Crypto lending might be the hot new product in the cryptocurrency space, but before you dive in be sure to first understand what it entails. The concept grew great traction with the rise of the decentralized finance (DeFi) movement, with platforms offering users high yields for borrowing crypto assets. 

Let’s get started with what crypto lending is, and then explore how the product works. 

What is crypto lending?

Crypto lending is a traditional banking service curated to the crypto world. With the DeFi space remains largely unregulated, many crypto exchanges and other platforms have started offering these services, with added security. 

Crypto lending involves a user lending crypto assets to a platform in return for interest, which allows other users to then borrow said crypto assets, paying interest on the amount borrowed. The platform will then take a small percentage of the interest paid. 

Depending on the platform and other factors, crypto lending platforms may be centralized or decentralized and offer exceptionally high-interest rates, with annual percentage yields (APYs) of 15% or more. With the interest rates being higher than traditional bank accounts, lenders gain access to much greater yields, increasing their returns. 

Another advantage to crypto lending is that users are still exposed to price gains in the market. Meaning that if you deposit your Bitcoin when it's worth $20,000 and the price rises in value to $50,000, you are still able to realize these returns and earn interest for the duration of the loan. 

Note that interest rates might fluctuate with market conditions on some platforms, increasing when the prices increase and decreasing when markets are down.

How does crypto lending work?

Cryptocurrency lending platforms function as middlemen connecting lenders to borrowers. Lenders deposit their digital currency into high-interest lending accounts, and borrowers utilize the lending platform to acquire loans. These systems then lend money utilizing the crypto that investors have provided them.

The platform controls its net interest margins by establishing the interest rates for both lending and borrowing.

Rates on platforms differ from cryptocurrency to cryptocurrency, some platforms might offer higher interest rates to lenders willing to commit to a certain time frame. There is no standard interest rate for cryptocurrencies, as each platform has its own set of rules.

Centralized crypto lending means putting your money in the hands of a corporation or other entity to manage and make the process easier. Accounts are created for borrowers and lenders, and loans may be requested by applicants.

Lenders and borrowers may connect their cryptocurrency wallets to a decentralized crypto lending protocol, ​​which uses smart contracts to automate the lender-borrower relationship. Smart contracts are automated digital agreements that execute once certain criteria is met. 

The advantages of crypto lending

There are several benefits to crypto lending when comparing it to a regular bank account.

Borrowers have access to these financial services without having to pass a credit check, making it more financially inclusive than traditional banking services. They are also exposed to lower interest rates than regular banking loans.

Lenders that give loans in the form of cryptocurrencies can make a lot more money from their crypto assets than savings accounts. It may also be a more adaptable choice to crypto staking, which requires users to lock up their cryptocurrency and submit it to a blockchain security method. Depending on the platform, lending usually gives users access to their funds.

The downside to crypto lending

The agreement with crypto loan companies is generally made on individual terms by institution borrowers. As interest rates vary across platforms and cryptocurrencies, each company is different.

There have been several cases where lending platforms have been hit by severe liquidity crisis, notably Celsius, Voyager Digital, and BlockFi. Glenn Huybrecht, COO of Cake DeFi, said, “Some lending providers have been very generous with low collateral requirements, which then puts them in hot water when one of their customer's defaults.”

Due to the ongoing regulation battles, these crypto services are also not backed by government safety nets, like the traditional banks are. However, some platforms do hold insurance and the necessary regulatory accreditations so be sure to seek one that has all of the above.

Closing thoughts

Crypto lending platforms differ greatly from one another so be sure to check each platform, their interest rates for all the various currencies supported, and if there are any lock-up periods or fees payable. 

Pressmeddelande
Lizzy
Tap now supports Ankr (ANKR)
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We are delighted to announce the listing and support of Ankr (ANKR) on Tap!

ANKR is now available for trading on the Tap mobile app. You can now Buy, Sell, Trade or hold ANKR 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 ANKR 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.

Ankr is playing an integral role in the adoption of Web3, providing growth and development opportunities for network stakers, app developers, and other participants in the DeFi space.

Ankr is a decentralized Web3 infrastructure provider that facilitates the swift and effortless connection between developers, dapps, stakers, and blockchains. With Ankr's APIs & RPCs you can quickly build blockchain-based applications with confidence, stake on Ankr Earn as well as access custom solutions for any blockchain enterprise needs.

ANKR is Ankr's native cryptocurrency fueling the platform and is used as a payment method within the ecosystem.

Get to know more about Ankr (ANKR) in our dedicated article here.

Crypto
James
What is Enjin (ENJ)?
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Playing an important role in the adoption of Web3, Enjin provides a platform of software products designed to allow anyone to harness the power of NFTs (non-fungible tokens) through the development, trade, monetization, and marketing of blockchain assets. 

What is the Enjin platform?

The Enjin platform is an ecosystem of interconnected, blockchain-based gaming products designed for individuals, game developers and businesses to create, manage and trade virtual goods such as digital art, games, or virtual marketplaces using the Ethereum blockchain. Enjin aims to provide users with the tools to implement smart digital solutions for blockchain games within the gaming environment.

Through the platform's software development kits (SDKs) and APIs, users can build digital assets as well as seamlessly integrate them into their games and applications. 

Under the Enjin umbrella is the Enjin Network, a community gaming platform that allows users to create websites, chat, and host virtual stores. Over the course of a decade, the Enjin platform has accumulated over 20 million users.

Powering the ecosystem is the Enjin Coin (ENJ), a token used to back the value of NFTs and other assets minted on the platform. When an asset is minted it locks ENJ tokens into a smart contract and effectively removes the tokens from circulation.

It’s also worth noting that Witek Radomski, Enjin's co-founder and the brainchild behind the ERC-1155 Ethereum token standard, wrote the code for the first non-fungible token (NFT). By utilizing its cutting-edge technology, Enjin is revolutionizing the future of gaming and digital assets.

Who created Enjin?

Enjin was originally founded in 2009 as a gaming community platform by Maxim Blagov and Witek Radomski. Blagov took on the responsibility of being CEO and in charge of the platform's creative direction while Radomski took on the role of CTO, leading the technical development of the platform's products.

Following Radomski's interest in Bitcoin in 2012, the platform explored incorporating blockchain technology into its business model and embraced the world of tokenized digital assets.

Radomski went on to write the ERC-1155 token standard in June 2018, a token standard used for minting both fungible, semi-fungible and non-fungible tokens using the Ethereum network. This token standard is a critical building block in the platform’s design.

In 2017, the Enjin platform launched an initial coin offering (ICO), raising $18.9 million through ENJ token sales. A year later the project went live and in September 2019, the Enjin Marketplace was launched.

How does Enjin work?

The primary goal of the Enjin network is to facilitate the management and storage of virtual goods for games, anything from in-game currencies to unique in-game items. So, how does Enjin work? The process of creating and destroying these tokens involves five steps, as outlined below. 

  • Purchase
    Developers purchase Enjin Coin. 
  • Minting
    In-game items are designed and effectively minted with the appropriate amount of ENJ locked into a smart contract.
  • Utilization
    Players use these tokens within the game.
  • Trading
    Players trade the tokens between fellow players or on the internal or external marketplace.
  • Melting
    Players sell the tokens for Enjin Coin, referred to as melting. The token is destroyed and Enjin Coin is released from the smart contract.

SDKs (software development kits) come into play here, with kits designed to fulfill certain functions, such as facilitating a payment platform or being wallet-focused. These kits are designed to minimize costs and simplify the process of creating these virtual goods. APIs (application programming interfaces) work alongside the SDKs to integrate these virtual goods (digital assets) into the game.

The Enjin platform utilizes JumpNet which is integrated with other products in the ecosystem, such as the Marketplace, Enjin Beam, and the Enjin Wallet to allow for gas-free transactions for ENJ and NFTs.

The Enjin ecosystem encompasses the Enjin smart wallet that allows players to store and trade their in-game items with ease. The Enjin wallet is designed to connect all the features, from managing inventory to conducting transactions and selling these tokenized digital assets for ENJ. 

What is the Enjin Coin (ENJ)?

Enjin Coin (ENJ) is the native token of the Enjin ecosystem. Built on the Ethereum blockchain and compatible with multiple gaming platforms, the Enjin Coin is an ERC-20 token that allows the in-game items created on the platform to be traded with real-world value. The ENJ token has a maximum supply of 1 billion coins.

The token also allows developers to mint these digital goods. The process requires the users to lock Enjin Coin (ENJ) into a smart contract that automatically assigns value to the in-game item. Players that later use these items can use them in the game, trade them or sell them for ENJ, equivalent to the original minting cost. Once sold, the item is destroyed (known as melting) and the ENJ that was locked in the smart contract is released to the seller.

How can I buy Enjin Coin?

Anyone can tap into the Enjin ecosystem by acquiring ENJ tokens through the Tap mobile app. Simply create an account and complete the verification process in order to gain access to your unique Enjin wallet, from where you can buy, trade and sell Enjin Coin. 

Fully licensed and regulated, Tap provides a secure and convenient means of managing your funds, allowing users to manage and store both crypto and fiat currencies in one location. With a wide range of supported currencies and services, Tap is revolutionizing the financial space.

Take advantage of the power of Enjin Coin on the Tap app - the ultimate platform to buy, sell or hold ENJ. With seamless integration and an intuitive interface, trading Enjin tokens has never been easier. Stay up-to-date with the latest market trends and keep your portfolio on track by monitoring the Enjin Coin price in real-time. 

Crypto
James
Which cryptocurrencies have the lowest transaction fees?
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In this article, we're covering what transaction fees are, and taking a look at which cryptocurrencies offer the lowest transaction fees.

While long-term traders are unlikely to get affected by transaction fees, short-term traders and people actively using cryptocurrencies are often plagued with excessive fee structures.

This complaint has led to layer 2 solutions, where transactions can most quickly and cost-effectively be executed, as well as new blockchain platforms entirely (as was the case when developers migrated away from Ethereum due to high transaction costs).

What are transaction fees?

Transaction fees are fees paid to the miner of the network to execute the transaction. While some networks differ in how they operate, transaction fees are consistent across the board. Looking at Bitcoin as an example, when a user sends BTC the transaction is entered into a pool of pending transactions known as a mempool. 

The miner will then pick up a batch of transactions and validate them, checking to see whether the original wallet does in fact have the funds to send and if the wallet addresses are valid. Once the transaction is executed, the data relevant to the transaction is added to a block, which is added to the blockchain chronologically. 

As compensation to the miner for their time and electricity, they earn a small crypto transaction fee from each transaction as well as a reward for adding the block, known as a miner's reward. This process also ensures the safety and integrity of the network.

When the networks are very busy, the cost of sending a transaction is increased. Users can then choose to add in a higher crypto transaction fee in order to prioritise their transaction in the mempool. 

Transaction fees for smart contracts are based on how much electricity will be needed to complete the task. Typically, transaction fees on smart contracts are much higher.

Generally, the terms transaction fee and network fee can be used interchangeably. They both refer to the transaction fee necessary by the network for the transaction to get processed.

Exchange fees refer to something else entirely. Exchange fees are fees charged by the exchange in order to conduct the service. Be sure to check before conducting a transaction on an exchange as you might be required to pay a transaction fee (or network fees) as well as exchange fees.

How to pay less for transaction fees

A transaction fee is imperative to your transaction getting executed so it cannot be avoided entirely, however, there are ways to reduce the amount you need to pay.

Transaction fees increase when the network is busy, so sending your transaction while the network is quieter is a great way to reduce the transaction fee. Typically the busier periods are during business hours in the United States. 

Look out for the Lightning Network for Bitcoin and layer-2 scaling solutions for Ethereum as these will provide a cost-effective solution to high transaction costs on those networks.

Which cryptocurrency has the lowest average transaction fee?

Let's take a look at some of the most popular cryptocurrencies and the average transaction fee associated with their platforms. 

XRP - $0.0002 per transaction

Developed by Ripple Labs, XRP is optimised for fast, affordable cross-border payments, with a focus on serving financial institutions and remittance providers. Thanks to its unique architecture, XRP has cemented its status as a key player in the payment processing space.

XRP's minimal costs and 4-second transaction times make it a preferred choice for users and institutions alike. 

Solana (SOL) - $0.00025 per transaction

Solana’s transaction fees cost just fractions of a cent ($0.00025), with complex transactions also coming in incredibly cheap. The network stands out for its lightning-fast transactions, typically wrapping up in about 2.5 seconds. Thanks to its scalable design, Solana can handle many transactions simultaneously, making it a hit for dapps and big blockchain projects.

This efficiency, coupled with its rapid speed, has made Solana a favourite among both developers and users, and a permanent feature in the top 10 biggest cryptocurrencies based on market cap (currently number 5).

Litecoin (LCH) - $0.0025 per transaction

Litecoin stands out as one of the cheapest crypto options out there, costing around $0.0025 per transfer. As an early pioneer in the space, Litecoin was designed with fast, affordable payments in mind, borrowing and refining Bitcoin's underlying technology. Litecoin's speedy 2.5-minute transaction times add to this appeal.

The minimal fees on Litecoin are a huge plus, with its efficiency and speed making Litecoin an attractive choice for those seeking a cost-effective crypto.

Bitcoin Cash (BCH) - $0.01 per transaction

Bitcoin Cash makes it onto the list with an attractive $0.01 average transaction fee. As a Bitcoin offshoot, BCH was engineered for faster, more affordable transfers via larger block sizes. 

The cost-effective fees on Bitcoin Cash have made BCH a viable option for those looking for a low-cost market entry and equally impressive low-cost transaction fees. 

Dogecoin (DOGE) - $0.04 per transaction

Dogecoin, born in 2013 as a playful take on crypto, has surprisingly become a significant player in the crypto space. Despite its lighthearted meme-inspired origins, Dogecoin's enthusiastic community and celebrity endorsements have propelled it into the mainstream. 

Its low $0.04 average transaction fees and fast 1-minute transaction times make it practical for frequent micro-transactions like tipping and donations, blending fun and function.

Trade smart, trade with Tap

Users can trade all the tokens mentioned above with equally low exchange fees directly on the Tap app. Adding to the cost-effective nature of the platform, it also offers heightened security and added convenience. It's time to trade smarter, download the Tap app and get started today. 
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