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Decentralized Finance in Bitcoin

Decentralized Finance in Bitcoin

DeFi has become one of the great success stories in the cryptocurrency space. Ethereum clearly has the lead, to the point that when we talk DeFi most people associate the concept with the Ether development ecosystem, very few of us think Bitcoin. Yet, there is a vibrant community bringing DeFi to BTC and expanding the possibilities of the first cryptocurrency.  

What is DeFi?

DeFi is short for Decentralized Finance. DeFi then refers to bringing the traditional financial services into decentralization. These include digital assets management, decentralized exchanges, crypto lending, decentralize FIAT ramps, marketplaces, stable coins, and many more which are yet to be invented. 

Given the versatility and a vibrant development community, the Ethereum blockchain is the main choice for the DeFi products and services, but that doesn’t mean it’s the only one.

Bitcoin by itself may be considered the precursor to decentralized finance. Those who use Bitcoin act as their own banks when they control their private keys. This allows BTC to be exchanged with whoever is a willing participant. This is a new form of “permission less” transfer of value. This rudimentary archetype of decentralized finance kickstarted the whole trend and remains at the core of Bitcoin. This positions the cryptocurrency to attract developers and companies to use BTC in a new wave of DeFi. For now, we may associate DeFi with Ethereum, but projects are ready to bridge the gap and we will review a few of them in this article.

Before we begin to analyze some DeFi projects, check out this article on Blockchain Development.   

Asset Management Tools

Asset Management Tools are those that allow a user to store, swap, stake, and many other things their crypto holdings. Here are some examples in the Bitcoin space. 

Bitpie: this is a multi-blockchain mobile wallet. The Dapp enables users to exchange their holding, totally under their control. It works with BTC, ETH, EOS, and TRON.

Joule: this is an open-source Chrome extension that enables the use of the Lightning network right in your browser. Their user-friendly UI promises to be a replacement for the command line. Joule handles payments, invoices, and all of the features of the Lighting Network. 

ZenGo: this is a Bitcoin and cryptocurrency wallet with native UI integrations with DeFi lending protocols and staking providers. It does no use a Private Key to secure assets. Their cryptographic protocols do not use keys and yet they have no custody of the assets secured in their network. 

Decentralized Exchanges (DEX)

Exchanges were the first viable business model in crypto. The early exchanges proved the need and demand for crypto-assets and made the first inroads into adoption. Those centralized exchanges were not without flaws and were the subjects of large hacks and theft of cryptocurrencies. 

In response, a new type of exchange was born, the Decentralized Exchange. These non-custodial spaces to exchange assets are in their early days, yet they still are pushing change in the DeFi world. 

Atomex: this DEX allows the secure and anonymous exchange of Bitcoin, Ethereum, USDT, and Tezos via its own desktop wallet and also provides integration via its low-level APIs.    

Bitsquare: this is a peer-to-peer marketplace for Bitcoins and other cryptocurrencies. It does not require a name, email, national ID nor verification. It is also fully decentralized. 

JellySwap: this is a cross-chain exchange powered by decentralized atomic swap technology.

Although not fully decentralized, the leading peer-to-peer exchange, Remitano is regulated to prevent scams and theft of crypto assets. Check out this article on the various ways to make money online with Remitano.

Bitcoin Lending

Xcoins: this is a P2P lender platform where people lend their BTC, in exchange for monthly PayPal payments at various interest levels.  The interest rates varied between lender to lender and the borrower is free to choose the most convenient.

SALT: A lending and borrowing space designed to allow crypto holders to leverage their crypto-assets by making secure loans.

BTCPOP: it is a platform that offers matching services for lender and borrower. This opens a large pool for crypto lending and borrowing options for entrepreneurs, individuals, and new companies on a global scale.

BlockFi: this platform lets users’ crypto work and earns them monthly interest payments in the asset-type which they have deposited on the BlockFi site.

Constant: this is a P2P lending algorithm that matches investors with borrowers using the lender’s interest rates as criteria.

DeFi Bitcoin Infrastructure

The DeFi revolution would not mean much without the developers out there building the necessary infrastructure to expand the uses of Bitcoin.

RSK: this is the open-source smart contract platform secured by the Bitcoin Network. They are looking to close the distance with Ethereum and other smart contracts friendly platforms by allowing Dapps to be build using the Bitcoin Blockchain. 

MoonPay: this is a fiat money on-ramp which facilitates mobile and web developers the ability to purchase virtual currencies using a credit card. 

REN: this is an open protocol that aims to give access to inter-blockchain liquidity for decentralized applications.

Stable Coins

Wrapped Bitcoin (WBTC): the aim of this project is to standardize Bitcoin to the ERC20 format. Then, smart contracts are able to be written for Bitcoin in the Ethereum Blockchain. WBTC is bringing the liquidity of Bitcoin to the Ethereum ecosystem including decentralized exchanges (DEXs) and financial applications. Moving the trading volume that takes place on centralized exchanges with Bitcoin to Ethereum and its ecosystem of Dapps and DEXs.

Precious Metal Exchanges

There are many comparisons between Bitcoin and gold, so would it be possible to trade one for the other. 

Vaultoro: this is one of the first bitcoin trading platforms which allow swaps between Bitcoin and physical gold. The gold reserves have been extensively audited by professionals and are held within Swiss vaults. They even allow the purchaser to move the gold at a location of their choosing. 

This is a brief review of the decentralized finance ecosystem of Bitcoin. The services and platform mentioned here are but a small sample of an ever-growing offering that expands by the day. Right now, most eyes in the DeFi space sit on Ethereum, but I hope this article has shown that BTC must not be overlooked. There is no better time than now to buy Bitcoin in our platform and try these DeFi products for yourself. 

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The benefits of Ethereum 2.0 will come sooner rather than later according to Vitalik Buterin

The benefits of Ethereum 2.0 will come sooner rather than later according to Vitalik Buterin

Quick take

1 minute read

  • Vitalik Buterin, has recently answered a number of questions from the community as a part of a “ask me anything“ session on Reddit. 
  • The co-founder highlighted many different topics but specifically said that he expects some significant and noticeable network improvements to come for the project sooner rather than later. 

Vitalik Buterin, the co-founder of one of the biggest crypto projects in the industry known as Ethereum has recently answered a number of questions from the community as a part of a “ask me anything“ session on Reddit. The co-founder highlighted many different topics but specifically said that he expects some significant and noticeable network improvements to come for the project sooner rather than later. He further said:

“TLDR: merge happens faster, PoS happens faster, you get your juicy 100k TPS faster.”

Over the years, the network for Ethereum has experienced some significant rounds of high congestion. Three years ago in 2017, the popular CryptoKitties game slowed down the network massively but with the decentralised finance space growing rapidly, the network has been seriously clogged up.

As a result of this, it has led to high fees and longer than average confirmation times.

With Ethereum 2.0 very much just around the corner, there is a significant scaling upgrade solution that is supposedly going to speed up the network rapidly. This will increase the number of transactions per second and it will also move the blockchain to a different consensus algorithm known as a proof of stake. Phase 0 for the upgrade is set to occur on the 1st of December in two weeks!

The co-founder further went on to say that “all of these changes are designed to decrease the time until eth2 becomes useful to people.” 

For more news on this and other crypto updates, keep it with CryptoDaily!

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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The second richest man in Mexico invest 10% of his portfolio into BTC

The second richest man in Mexico invest 10% of his portfolio into BTC

Quick take

1 minute read

  • Ricardo Salinas Pliego is the second wealthiest businessman in Mexico and the 166th richest man in the world. 
  • It was recently announced last week that he has invested 10% of his liquid portfolio into the leading cryptocurrency, bitcoin. 

Ricardo Salinas Pliego is the second wealthiest businessman in Mexico and the 166th richest man in the world. It was recently announced last week that he has invested 10% of his liquid portfolio into the leading cryptocurrency, bitcoin. This came after he shared a video throwing huge amounts of paper money into the garbage. Not only does it show how worthless the government-issued cash is in today’s world but it also shows how important digital assets such as bitcoin could become.

Furthermore, the video indicates the hyperinflation and how bad it got in Venezuela.

Ricardo is worth more than $11 billion at the time of writing and is the only billionaire from Mexico who seems to have benefited from the coronavirus pandemic and the economic crisis that has come as a result.

For more news on this and other crypto updates, keep it with CryptoDaily!

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Coinbase co-founder, Fred Ehrsam set to join Fireblocks as a member of the board

Coinbase co-founder, Fred Ehrsam set to join Fireblocks as a member of the board

Quick Take

1 minute read

  • Fred Ehrsam, the co-founder of the crypto platform known as Coinbase is getting ready to join the digital asset security platform Fireblocks. 
  • It was announced last week that Fred would be joining the board following a recent round of funding.

Fred Ehrsam, the co-founder of the crypto platform known as Coinbase is getting ready to join the digital asset security platform Fireblocks. It was announced last week that Fred would be joining the board following a recent round of funding.

The co-founder of the well-known crypto platform is getting ready to join the company as a board member following a $30 million funding ground to help expand its operations on an international level.

Throughout 2020, Fireblocks has launched a secure asset transfer network which would allow more institutions to efficiently transfer assets on chain. And on top of this, the platform also announced that it has seen more than $150 billion in transferred assets over the course of the past year. Fred has said:

“Fireblocks has become the go-to for any business looking to build new digital asset operations or scale existing ones… The extraordinary growth of the Fireblocks Network and its team in the last year attests to the enormous value they have unlocked for enterprise and institutional customers.”

 

For more news on this and other crypto updates, keep it with CryptoDaily!

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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XRP Price Analysis: XRP Continues Correcting

XRP Price Analysis: XRP Continues Correcting

This analysis brought to you by RoboForex.

On Friday, November 27th, XRP has reached stability but is still correcting and trading at $0.5550.

As we can see in the daily chart, after finishing a quick rising wave, XRP/USD price is correcting to the downside. At the moment, the asset is trading close to 61.8% fibo, a breakout of which will indicate further pullback towards 50.0% fibo. The MACD histogram has broken 0 and is still moving to the upside – it may be another signal in favor of a new rising impulse. The upside target of the completion of the correction will be at 0.6800.

In the H4 chart, the cryptocurrency continues correcting to the downside. Right now, it is testing the support level, a breakout of which will result in further decline towards 50.0% fibo. The Stochastic indicator has formed a “Black cross” inside the “overbought area” and is still falling, which is an additional signal in favor of further decline towards 50.0% fibo. After completing the correction, the asset may test and break 61.8% fibo, and then continue trading upwards. The upside target is similar to the daily chart, 0.6800.

Ripple started its rally on November 20th, together with other cryptocurrencies. There are a lot of explanations of why it happened, from investors’ search for alternatives to fiat instruments to a surge in interest in cryptoassets from institutional players. Indeed, all of this really took place and, of course, expansion of the interest was in favor of cryptocurrencies. The entire market is on the rise but since “trees don’t grow sky-high”, active purchases faded to the correction.

Over this period of time, XRP has managed to update its high reached in May 2018. The asset is still moving like 80% below the highs of January 2018, when it was trading at $3.7, but investors are surely positive about further growth.

At the moment, XRP is back to third place in the list of the strongest and most popular cryptoassets.

By Dmitriy Gurkovskiy, Chief Analyst at RoboForex

 

Disclaimer

Any predictions contained herein are based on the author's particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.

 

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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