While the crypto industry becomes increasingly mainstream with each passing year, its volatility remains constant. One can never be sure how crypto trends change and new technologies emerge to render the previous-gen tech basically useless. Something similar has now happened with the Ethereum Merge.
Being simply regarded as the ‘Merge’ in crypto, Ethereum has moved away from the ‘Proof of Work’ trust model to a ‘Proof of Stake’ work model. The unversed need not get confused with such concepts as we’re here to explain to them in easy terms.
‘Proof of Work’ model
Earlier, Ethereum used to work on the ‘Proof of Work’ which basically meant that all the Ethereum transactions/ownerships were validated by the work of crypto-miners. Cryptocurrency mining is a process that verifies and adds new transactions to a cryptocurrency using a complex global network of computers. The miners ensure that the transactions are added correctly and are legitimate. The PoW model has long been criticized as it requires a complex chain of computers having stacked banks of graphic cards juicing up on an outrageous supply of electricity. The energy-intensive model of crypto mining is known to consume energy higher than in some countries! The Merge is expected to cut down electricity consumption related to mining by 99%.
‘Proof of Stake’ model
In this model, any crypto investor who stakes a minimum of 32 Ether tokens can become a validator. This translates to a group of validators getting selected to mine crypto in a far less energy-consuming process. Users will also have an option to create a ‘Stake pool’ to participate with a smaller stake.
Crypto enthusiasts should note that while the new mining mechanism is more energy-efficient, it does not necessarily make ETH transactions any quicker. According to Ethereum Foundation, the Proof of Stake method only increases the productivity speed by 10%. However, ETH developers do not need to worry as they won’t have to make any changes to their existing code. The technology is designed to be backward compatible, meaning applications built on the previous version will be available with the newer network.
Almost everyone adores cryptocurrency, but only a few dare to invest. When El Salvador became the first country to permit consumers to use cryptocurrency in all transactions, several crypto investors thought it would soon get a legal tag in their respective countries. However, to their surprise, not many other countries followed El Salvador’s footsteps, which deeply saddened crypto investors.
Now, looking at the current happenings around the world, we can say that the future of crypto entirely depends on how much time developed and developing countries take to legalize these currencies officially. The risk involved around the investment in cryptos, such as the risk of money laundering and terror funding, worries every country, and that’s why it is taking forever to legalize.
We can’t predict the future, but we can always work on our present. Thus, investing in a volatile market of cryptocurrencies could be a risk at the time, but if you invest in it systematically by working on implementing proper strategies at the right time, you might not believe it, but you could have a chance to get the benefits from it in the coming years.
Let’s take a look at the top 5 cryptocurrencies:
Bitcoin (BTC)
Market Capitalization – $880 billion
Value of 1 Bitcoin in Indian Rupee (as of 22nd April 2022) – ₹30,92,870.31
Bitcoin was created in 2008 by someone under the pseudonym Satoshi Nakamoto, and over the years, it became one of the most popular cryptocurrencies in the world. It was designed originally as a medium of exchange, but now it is primarily viewed as a store of value.
Ethereum (ETH)
Market Capitalization – $375 billion
Value of 1 Ethereum in Indian Rupee (as of 22nd April 2022) – ₹2,29,731.28
Ethereum was founded by programmer Vitalik Buterin in 2013 along with a few additional founders, including Gavin Wood, Charles Hoskinson, Anthony Di Iorio and Joseph Lubin. Ethereum is a programmable blockchain that finds applications in various areas, such as DeFi, smart contracts, and NFTs.
Tether (USDT)
Market Capitalization – $79 billion
Value of 1 Tether in Indian Rupee (as of 22nd April 2022) – ₹76.44
Tether is a stablecoin, and it’s backed by fiat currencies such as U.S. dollars and the Euro. Due to its non-volatile nature, Tether is preferred by many investors. Tether tokens are issued by the Hong Kong-based company Tether Limited, and the owners of Bitfinex control it.
Binance Coin (BNB)
Market Capitalization – $68 billion
Value of 1 Binance Coin in Indian Rupee (as of 22nd April 2022) – ₹31,384.25
The Binance Coin is a form of cryptocurrency which can be traded or exchanged for other forms of cryptocurrency, such as Ethereum or Bitcoin. Binance offers relatively secure options to invest in and trade cryptocurrencies. It is expected to climb up to the maximum price of $14,800 by December 2030.
Solana (SOL)
Market Capitalization – $45 billion
Value of 1 Solana Coin in Indian Rupee (as of 21st April 2022) – ₹8,293.88
Solana was developed in 2017 by a former executive at Qualcomm, Anatoly Yakovenko, with the current Solana board member and COO Raj Gokal. The native token ‘SOL’ powers the platform, and the coin hit its all-time high of $260.06 in November 2021 but since then it’s struggling somewhere around $100.
Cryptocurrencies are one of the most long-lasted trending topics in the world; from Mike Tyson, who saw the future of cryptocurrency even before it was in trend, to Tesla CEO Elon Musk, many celebrities backed the digital currency, which influences millions of people to invest in the cryptocurrencies. Bitcoin and Ethereum are two of the most popular cryptocurrencies globally, and their trading is legalized in many developed countries, including Japan, the United States, Canada, Australia and a number of European countries.
The Background:
Everyone who invests or wishes to invest in stocks or cryptocurrencies is aware of its unpredictable nature. Recently, Bitcoin and a few other popular cryptocurrencies encountered a dramatic pullback in the market. The flagship cryptocurrency Bitcoin confronted the highest low ($30000 at one point) in the last three months, and Ethereum drained to below $2,000 at one point.
The dramatic collapse created a buzz in the online trading world with negative headlines and raised concern over the future of cryptocurrencies. The future of digital currencies is uncertain, but only if you invest blindly and only if you’re looking for immediate returns. It is currently dealing with the struggling phase because the whole world hasn’t accepted it, but it’ll surely go up when it does.
India and China cover about 35% of the world population; amongst them, more than 50% population predominantly includes young tech-savvy investors who are more flexible to crypto savings. Several countries have already begun real-world trials of their digital coins. So, the day is not far when these two countries legalize crypto, which will ultimately surge the value of digital currencies.
The Latest Move by the Indian Government:
The Indian investment in cryptocurrencies was around $923 million until April 2020, which spiked up dramatically to $6.6 billion (close to INR 50,000 crores) until May 2021. India is currently ranked at number 11 out of 154 nations, who have adopted and invested in cryptocurrencies. However, digital currency is not sanctioned officially by the Indian government yet. According to recent reports, the Reserve Bank of India is planning to introduce its own digital currency dubbed Central Bank Digital Currency (CBDC).
The latest initiative by the RBI might open the gate for the trading of cryptocurrencies in India, but it will take years for final approval, and till then, a large sum of the population would not dare to invest. Still, if you’re looking to invest in crypto and looking for better currencies that will last longer and benefit you after 20-25 years, here’s a list of top cryptocurrencies with the best future.
1. Bitcoin:
Currency Symbol:₿
Market Capitalization: Over $750 billion
Bitcoin is a decentralized digital currency, which works without a central bank or single administrator, and runs on a blockchain system distributed across a network of thousands of computers. Bitcoin or BTC is referred to as the original cryptocurrency, and it was created in 2009 by Satoshi Nakamoto, a fictitious or pseudonym name of the founder whose identity is still unknown to the world.
Bitcoin is a computer file stored in a digital wallet app on a smartphone or computer. It is executed as a chain of blocks, which keeps it secure and safe from fraudsters. Each block contains a hash of the previous block up to the genesis block of the chain. Bitcoin has struggled over the last couple of months, falling about 50% from its peak, but still, today, one Bitcoin is valued at $40k (₹29,80,000).
Glancing at the current status and dramatic downfall of Bitcoin, it might look like investing in digital currency is no longer a good choice. However, if you’re a keen observer of the cryptocurrencies, you’ll notice the price is still up from where it began its parade in late 2020. If you’re looking for a handsome profit through your investment in Bitcoin, you should learn how to keep yourself patient and forget your investment for the next 10-15 years.
According to recent predictions by cryptocurrency experts, bitcoin will overtake the US dollar as the predominant form of global finance by the year 2050, and the value of one Bitcoin will strike $65,000 by the end of 2021 and will overtake the US dollar with the value of $1,50,000 by the end of 2025.
2. Ethereum:
Currency Symbol:Ξ
Market Capitalization: Over $268 billion
Ethereum is a decentralized, open-source blockchain and distributed computing platform that enables smart contracts and decentralized applications. The smart contract functionality of the platform helps in automatic execution when conditions are met along with non-fungible tokens. Ethereum was co-founded by Vitalik Buterin and Gavin Wood in 2015, and ether is the native cryptocurrency of the platform.
Ethereum has experienced a tremendous level of growth; it had started its journey at just $11 and reached over $2,500 in just five years. One Ethereum is currently valued at around $2,300k (₹1,70,000), which seems far away from the current value of one Bitcoin. Ethereum blocks do verification approximately every 12 seconds, whereas Bitcoin does the same every 10 minutes.
When Bitcoin faced a global crackdown, several other cryptocurrencies proved themselves to be a new contender for a top position in the crypto world, and Ethereum was one of them, who grabbed a lot of praise and attention. According to the latest predictions by investment banking company Goldman Sachs, Ethereum could soon make the cryptocurrency the dominant digital store in the world, and it could overtake Bitcoin in the coming years.
The investment banking company also mentioned that gold would remain the first choice for investors despite the conflict between top cryptocurrencies. Ethereum grew over 900% over the past year, while Bitcoin only managed to jump 275%; still, Bitcoin is way ahead of its close rival, Ethereum. Surpassing Bitcoin won’t be an easy game, but looking at the innovation and developer interest, some experts also believe Ethereum might surpass Bitcoin in the near future.
3. Tether:
Currency Symbol:₮
Market Capitalization: Over $61 billion
Tether is the world’s third-largest cryptocurrency by market value, and it is rumoured to be backed by fiat currencies like U.S. dollars and the Euro. Ordinary people haven’t heard of it, but it is considerably popular amongst crypto traders who often use tether to buy cryptocurrencies due to its stable nature.
Tether is referred to as stablecoin because it was initially designed always to be worth $1.00, and that’s why the currency is more favoured by the investors who are cautious of the extreme volatility of other coins. The stablecoin is controlled by the owners of Bitfinex, a Hong Kong-based cryptocurrency exchange.
Along with these three cryptocurrencies, there are more than 10,000 different cryptocurrencies globally, including some of the popular currencies like Binance Coin, Cardano, Dogecoin, XRP and USD Coin. All of these cryptocurrencies hold a total value of more than $1.3 trillion till 28th July 2021, after falling from a career-high of $2.2 trillion in April.
I have been thinking about the smart contract audit process and its cost, so I did some little research. Distributions of smart contract arrangements onto the Ethereum blockchain are increasing. Since late 2017, the figure of effective calls to smart contracts has remained steady at 1.2 million per day. It is convincing to ensure that these smart contracts, often holding significant assets, are not misused. At present, a contract audit before deployment is the most preferable option available to detect subtle vulnerabilities and assessing the security code and quality.
What is a smart contract audit?
I am therefore convinced that smart contract audit is a valuation of the secure growth process. In the cause of a smart contract audit, developers have a chance to learn from Ethereum specialists, denote underspecified areas of their system, and detect gaps in their coding process.
What is smart contract audit cost”
The record shows that over 2 billion USD worth of digital assets safeguarded since it was founded in 2017. Some factors contribute to the cost of a smart contract audit, mention as follows;
“How much does a it cost?”
The record shows that over 2 billion USD in digital assets have been safeguarded since the company’s inception in 2017.
The following factors contribute to the cost of a it:
Complexity
The cost of an audit is affected by the changing complexity of the audit.
A low-cost audit, for example, is a token that strictly adheres to the ERC20 standard.
The ERC20 token standard is one of the earliest patterns in Ethereum smart contract development and is defined by the number of hours spent on it.
When the complexity of an audit increases, it necessitates more engineering hours, resulting in a high audit cohesion.
Clear documentation can also help to reduce the complexity of an inspection.
The cost will rise if there is a lot of time spent.
Timeline
The issue of time arises when clients require smart contracts audits to be completed in a short period. These clients will be asked to pay a premium.
The amount of time spent auditing a project varies according to its complexity.
As a result, the best option is to contact Quantstamp as soon as possible so that you can factor audit time into your development cycle
However, just as smart contract audits cannot replace internal quality assurance, poorer architectures, or overcome complexity or vulnerability, everything in this world has limitations.
Death is inevitable, no matter what you do, you have to face it. Ironically we live our lives as if it’s something that won’t happen to us. Michael Jackson had a team of 50 doctors, physicians, cooks etc. Everything he ate and did was under their consultation as he wanted to live for 150 years. Sadly he died a century short at a ripe age of 50 years.
We all care for our family; even after our death, we want them to live safe and sound, and that’s the sole reason we prepare ‘Will’ for them, which includes our bank balance, cars, assets but have you ever thought about what will happen to your Bitcoins after your death? Or Can you put cryptocurrency in your will?
Bitcoins are a virtual form of money protected by unbreakable cryptography, it is one of the safest ways of investment, but most cryptocurrency exchanges don’t permit you to name a person or a contact as a nominee when you make the investment; in such a case, the first thought that will hit your mind is, what’s the point of investing in a market currently worth about $70 billion if my digital fortune will be out of reach, after my death?
A few of the most popular forms of cryptocurrency include the below, and indeed if you are surprised to read these names, you must have landed from the moon.
Bitcoin
Ethereum
Dogecoin
Presently, there are over 1,500 cryptocurrencies globally, and amongst them, Bitcoin is by far the most widespread digital currency at the moment, with over 8 million active Bitcoin users. The Revised Uniform Fiduciary Access to Digital Asset Act (RUFADAA) sets the rules and regulations surrounding digital account ownership, and if you’re planning to invest in digital currencies or already have invested in, then you must consider and get yourself familiarize with the RUFADAA and update your wills, trusts, and POAs, according to rules, which eventually will help your beneficiary after your demise.
According to expert reports, 2.5 million to 4 million bitcoins have been lost until today, worth between $15 billion to $24 billion in the current market. The worst thing is most of those Bitcoins are from those who’ve died without sharing a private key with their heirs.
Who can access your digital account after your death?
The private key or password is the only option to get into a crypto account, and no one can’t get into it while you are alive. All the cryptocurrencies are stored on highly secure blockchain technology, so before setting your private key, think twice and note it down somewhere safe as there’s no option to recover once you lost the key. A private key is an inevitable password, which is generated when you create a new cryptocurrency account.
The private key allows the account holder access to the account valuables; along with the private key, every individual account uses a sequence of random characters called a public key, apparent to anyone for sending and receiving the cryptocurrency. Overall, the process of accessing your account is not hard to understand if you make sure you’ve shared a private key and all the details of your cryptocurrency wallet with your recipient before your death, but at the same time, it raises a safety concern too.
Currently, Coinbase is the only cryptocurrency that allows access to an investor’s trusted family member after providing several documents, including a death certificate and the last will. Also, Coinbase users can name a recipient on their Coinbase account while creating a new cryptocurrency account.
Where to store the private key?
There are several safety options to store your cryptocurrency account’s private key; for instance, you can keep it somewhere online or write it down on a piece of paper and hide it somewhere safe. But both these options are way too traditional and raise concern over conventional safety. Some banks and trusts allow you to store wallets and private keys on behalf of clients and even assist your beneficiaries. Still, if you don’t trust these banks and trusts, you can just divide your private key into two parts and put it in two different banks or trusts, but just make sure your beneficiaries know about the sequence. The option you choose is completely up to you.
What is the legal status of cryptocurrencies in India?
Cryptocurrencies are not illegal in India, but unfortunately, India does not have a regulatory framework to govern and control the cryptocurrencies network in the country. The government had constituted an Inter-Ministerial Committee (IMC) to study virtual currencies on November 2, 2017, and flagged reservations around its misuse by embedding the security reasons.
However, after several cryptocurrency exchanges urged the Centre to regulate virtual coins rather than banning them, now the government is planning to change their old motto, and maybe soon they’ll set up a panel to control them. So if you plan to keep your billion dollars fortune parked in Crypto, you better tell your next of kin the key for it, or it will lose forever in the mining world.
