NNF: Breath In, Breath Out, Calm Down! | Crypto Market ended flat
Take a deep breath!
This week on NNF (Navigate with Nord Finance), Let’s dive into markets, news, and Web3 tidbits.
In addition, We’ll dip our toes into $ETH and POS with short knowledge bytes.
Let’s dive in!
NNF of the week:
1 Min Markets:
Breath In, Breath Out, Calm Down!
This week, the Market calmed down and ended flat after the sell-off introduced by the Fed interest rate hike last week.
Catch the Coin
We’re covering the ETH in this week’s Catch the Coin bytes. Ethereum network is the backbone of most Web3 apps.
If you’re optimistic about Web3's future then you must know ETH and what is in the future for ETH.
Ethereum ($ETH):
Ethereum is a playground for developers, courtesy of its computational abilities. Powered by smart contracts i.e. self-executing contracts, Ethereum is the home for DeFi (decentralized finance) products and dApps. Starting as a proof-of-work blockchain, Ethereum transitioned into proof-of-stake at ‘The Merge’.
It was proposed by a group of 8 founders with Vitalik Buterin, the prominent one, in 2014 and Ethereum came to life in 2015. The native currency of the Ethereum blockchain is Ether ($ETH).
Ethereum is the king of DeFi, gaming, metaverse, and other relevant ecosystems. It houses the largest group of developers, dApps, and more. The majority of the NFT market resides in the Ethereum blockchain.
The Ethereum developer community is strong and actively working on making it more scalable and cheaper in the future.
Market Cap:
100 Billion+
*On 30 September 2022
Use Cases
Ethereum’s computational abilities are being used extensively in the areas of finance, gaming, healthcare, and more. Supply chain management is being disrupted using smart contracts.
Community governance in the form of DAOs is being formed using the Ethereum blockchain. The majority of the new dApps and DeFi products are launched as ICOs — Initial Coin Offering on Ethereum.
There is also an Enterprise Ethereum which caters to private corporations and businesses. Firms including JP Morgan, and Microsoft have experimented with Enterprise Ethereum for their business services.
Future of Ethereum
Ethereum is valuable for a developer, builder, creator, investor, and sundry. Hence, there is no doubt that Ethereum will remain valuable and in need — in the coming years.
Blockchain Bytes
Today, we’re demystifying POS (Proof- of- Stake) in this segment. Quickly get a fair idea of POS and its pros and cons to make your investment decision easier.
Proof of Stake (POS) | What is it?
Proof of Stake is a consensus mechanism, popularly employed by the Ethereum blockchain after ‘The Merge’. It allows cryptocurrency owners to stake their holdings and earn the right to check new blocks of transactions, and add them to the blockchain.
The blockchain algorithm chooses validators based on how much crypto they’ve staked to check each new block of data. The more you stake, the more likely you will be chosen to do the work. When the validator’s cleared data is added to the blockchain, they are rewarded with newly minted cryptocurrency.
If a validator submits incorrect data or fraudulent transactions, they may face ‘slashing’. It is a penalty dished out to the validator. Going offline frequently or wrongful validation can get the validator slashed i.e. their staked holdings are rendered useless.
Fact: Apart from Ethereum, Solana, Terra, and Cardano are among the biggest cryptocurrencies that use proof of stake.
Pros
- Energy efficient
- Scaling is more feasible on PoS
- Validators’ entry barriers are low
Cons
- Security risks prevail
- Unfair dominance of large players
- Not truly decentralized
KYCN (Know Your Crypto News)
The Crypto market never has a dull week when it comes down to news. We’ve shortlisted the most interesting and important news that can impact the market in the future. We’ve given simple takeaways that are important for your investment decisions.
Swyftx Crypto Survey: 1 M+ Australians will purchase cryptocurrency for the first time over the next 12 months
- The survey suggests more regulation clarity will only accelerate the growth.
- This suggests new investors will own crypto once the market completes correction and get ready for the next leg of Crypto adopters. (Long-term Bullish for market)
Binance Global Law Enforcement Training Program is live!
- The program is designed to help law enforcement detect financial and cyber crimes.
- A step towards building trust with law enforcement agencies.
- This will help crypto investing and trading platforms build regulation-friendly platforms.
Robinhood Web3 Wallet Goes Live On Polygon!
- This move by Robinhood will bring a new set of users to the DeFi ecosystem.
- Ease of access to DeFi applications will accelerate the DeFi ecosystem’s Growth.
BTS Scoop of the week:
Our NNF (Navigate with Nord Finance) newsletter subscribers have received a sneak peek of our upcoming Crypto Investment Platform.
Next Week, we’ll release a new BTS scoop to subscribers. So, Don’t forget to subscribe.
