Like every other technology, blockchain also has potential for improvement. It’s interesting to note that new solutions-oriented blockchain protocol are in the process of being designed to address the shortcomings that the tech has. For example, Polkadot resolves the issue of interoperability between blockchains. Chainlink facilitates communication between off-chain data and on-chain APIs and data servers. Hathor enhances scalability and lowers transaction costs.

In addition, every new blockchain technology has particular strength, which further increases the efficiency of blockchain technology and makes it more flexible for use in real life.

For this post, we’ll look at a different blockchain-based protocol, called Phala Network. It can be described as a cloud-based computing platform that can provide security in blockchain smart contracts, DeFi and dApps. Phala attempts to address issues of trust within the cloud computing.

What is the significance of confidentiality when it comes to smart contracting?

Blockchain is distinctive because it is an open ledger with a distributed system that records transactions in a safe and transparent manner. Each transaction is recorded publicly. Therefore, anyone can confirm it, however, nobody can alter the information. Blockchain’s transparency Blockchain is a groundbreaking feature that enhances security and user autonomy.
However, some businesses may also possess sensitive or private information they don’t want to expose for all to see. For instance, traders in the stock market are keen to make their information available, but aren’t keen on revealing their orders or their positions. Due to the privacy concerns, those privacy-related DApps on Ethereum are not in compliance in accordance with General Data Protection Regulation. In the end, they could be blocked by the European Union.
Certain blockchains are not appropriate to process confidential information. Bitcoin and Ethereum aren’t. The inability to handle sensitive data or sensitive information for business restricts the use of the Blockchain because it causes trust issues.
A variety of methods address the issue of confidentiality and privacy in Blockchain However, the solutions are only applicable to cryptocurrency and do not expand to smart contracts.

What is the Phala Network?

Phala Network is a new method that aims to provide the security of smart contracts using specialized hardware Trusted Execution Environment (TEE). Its goal is to offer privacy-preserving smart contracts to meet four goals:

• Secure the privacy of managed apps.
• Give computing power that is on level with existing cloud services.
• Keep the security and reliability of Blockchain. All computing operations performed on Phala are secure.
• Interoperable cross-chains without compromising security.

In our insights on blockchain interoperability that cross-chain communication is essential for any blockchain-based smart or dApp, otherwise, its usage in the real world is extremely restricted. The confidential contracts that are powered by Phala can be interoperable, and can be used to interact with other private contracts in a symbiosis.

Phala Blockchain is built upon Substrate which is interoperable to the Polkadot ecosystem. (Read for more information regarding Polkadot interoperability) Additionally, Phala is a Parachain of Polkadot and, by design the Phala blockchain has the capability of being an interoperable blockchain. But, Phala takes Interoperability a step higher by facilitating the transfer of assets to another blockchain while maintaining confidentiality.

What are the major benefits that come with Phala Network?

• Phala is protected against attacks at the system level because sensitive information will be processed and processed by TEE which is an isolated processor
• Only authorized key-protected actions are permitted on the network.
• All off-chain and on-chain communication is encrypted from beginning to end.
• The code off-chain and execution is verified on chain.
• A substrate-based parachain that is akin to Polkadot, Phala is designed to be interoperable and cross-chain compatible.
• Since it is interoperable, Phala is able to offer computing capabilities to other blockchain-related applications.

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Everything you need to know about Hathor NetworkOne of the newest competitors in the field of crypto is Hathor(HTR). It is a blockchain-based proof-of-work digital platform specifically designed for light financial contracts and transactions. Since its introduction in the year 2020, it has been the subject of attention due to its innovative and original structure. Hathor Network has put forward small value propositions to solve the issues of scalability and maintenance of decentralization, both of which are commonplace in distributed ledger systems like the ones for Bitcoin or Etheruem.

What is the reason why something similar to Hathor necessary?

Within a short time after its launch bitcoin’s blockchain was regarded by the business community as a breakthrough technology to meet businesses’ needs. However, while examining it for real-world applications, the bitcoin’s initial design was found to be limited in both capacity and application. As transaction volumes increase on the bitcoin blockchain, it begins to face issues on several levels including storage, bandwidth on the network decreases as well as the consumption of computer power and power to prove of work significantly increases. Mining is restricted to a handful of sophisticated miners. The value of bitcoin decreases gradually. Another issue that is common is excessive transaction costs.
The structure of the Hathor Network overcome these kinds of limitations? If yes, what exactly is it that it does? What are the unique features that aren’t found in other popular blockchains?
This article provides a deep-dive into each aspect of Hathor with a particular focus on the analysis of its comparison with other blockchains that are popular.

What is Hathor Network?

Simply put, Hathor can be described as a user-friendly and scalable distributed ledger that can be used to facilitate simple financial transactions and contracts. It also functions as an open platform for consensus, but its design is unique as it is a hybrid platform that was created by mixing Directed Acyclic Graph (DAG) and blockchain technology. In essence, it’s an electronic blockchain within an DAG and both are interconnected. When the volume of transactions is minimal and the blockchain is secure, it will be able to protect while when the amount is increased, DAG takes over.
This hybrid architecture provides the ideal environment for a variety of scenarios, especially when the need for high-scalability is required. What is the way that DAG and Blockchain when combined can improve the scalability and performance of Hathor’s network Hathor network is to be explored in the near future. Prior to that, let us define some of the characteristics of Hathor that differentiate it from other platforms.

What is it that makes Hathor different?

The creators of Hathor have described it as a “Scalable distributed ledger designed for real-world use. It is created to address many of the issues that are prevalent with current mainstream blockchains like:

• The high cost of transactions for transactions in the Bitcoin Blockchain is one of the most discussed problems. However, transactions made through Hathor are free. Hathor network are free that means that the cryptocurrency is able to be traded and transferred without having to pay any charges.
• Hathor is far more flexible in comparison to Bitcoin or Etherum network, meaning that even when the volume of transactions increase the security and efficiency of the system won’t become affected. It doesn’t mean that the it doesn’t have a central coordinator at any given point in time. Hathor Network is totally uncentralized ledger, and yet it is able to provide long-term security as transactions increase in volume.
• The Hathor network permits merged mining using Bitcoin as well as Litecoin. This means that Bitcoin and Litecoin mining users are able to be part of the mining process of HTR and, by doing so they won’t lose profits made through Bitcoin as well as Litecoin chains. In addition, miners are offered incentives through HTR tokens for free of cost. The miners feel safe and encourages them to work to earn HTR cryptocurrency.
• In just a couple of clicks, anyone can make customized tokens (digital tokens) via the Hathor Network. The official website states that 13-year-olds can make an account to play with.
• The Hathor network is a part of ‘atomic swaps. The advantage for this function is that it permits distinct tokens to be exchanged within the same transaction which improves the efficiency of the network.
• Another significant aspect of Hathor worth mentioning includes the Nano Contract. Nano Contracts are in development currently. They are similar to smart contracts but with smaller computation power and costs. Therefore, it is an alternative to this smart contract. In addition, by incorporating built-in automatic swaps, nano-contracts are designed to reduce transaction costs.
• As mentioned previously the design for Hathor’s architecture Hathor network is unique and distinct. It is constructed by intertwining both blockchains along with DAG technologies to address the issues of scaling and maintenance of decentralization that are prevalent on other ledger distributed networks. According to various sources, there isn’t any other publically-known project that is currently working on this sort of solution.

Here defining how the novel architecture of Hathor functions and achieves high scalability.

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Since Ethereum was introduced into the world of blockchain by its appearance in the year the year 2015 Vitalik Buterin, a Russian-Canadian programmer has created new applications decentralized (dApps). But, the success of Ethereum is significant due to the development of smart contracts.

Many think they are an entirely new concept that was invented by Ethereum, the Ethereum Blockchain Platform. Smart contracts actually date in 1996 when the computer researcher Nick Szabo coined the term “smart contracts” and explained the concept as follows:

I refer to these contracts as “smart”, because they are more useful than their paper-based inanimate ancestors. The artificial intelligence or artificial intelligence are implied. Smart contracts are a set of agreements that are defined in digital format, and includes protocols that allow the parties to fulfill their promises.

His work was later a source of inspiration for other researchers and scientists and also Vitalik who created Ethereum.

Before we get into the creation and implementation of Ethereum smart contract it is crucial to know how to use the Ethereum platform and how it functions.

Ethereum as it is a Blockchain Platform for developing decentralized applications

Blockchain platforms let developers develop and manage smart contracts. Ethereum is also among Blockchain platforms which are able to execute any kind of code to allow you to run any type of program using Ethereum.
The Ethereum Blockchain is a possible distributed infrastructure that allows the completion of projects with smart contracts.

Create your cryptocurrencies

With Ethereum as a platform, you can make an exchangeable token could be used to create an entirely new currency. Tokens created using the Ethereum platform make use of an API for coins that is standard to work with any Ethereum cryptocurrency wallet.

Create virtual organizations

You can create an intelligent contract to create an organization based on blockchain. Then, you can add additional members to your company and set up voting rules. The members of your group can vote , and if the number gets to the minimum number of votes the smart contract will be executed completely.

Build dApps

Ethereum lets developers develop reliable and secure decentralized applications that remove middlemen in addition to offer transparency.

Raise funds

Additionally, you can make use of Ethereum smart contracts to raise funds. With Ethereum you can draft an intelligent contract with an expiration date. If you do not meet your objective then all donations will be returned to donors with no conflicts or commissions.

How does the Ethereum Blockchain Platform performs Smart Contracts?

Before we discuss how to build an intelligent contract using Ethereum, or the Ethereum platform, it is essential to know what is the Ethereum blockchain , and the way it manages smart contracts.
Therefore, let’s look at the context of execution first.

Ethereum Virtual Machine (EVM)

The goal for EVM is to function as a runtime environment to smart contracts created on Ethereum. Imagine it as a supercomputer global which executes all smart contracts.
The name suggests that Ethereum Virtual Machine is not physically based, but is an online machine. The capabilities of EVM is limited to virtual machines. For example, it can’t make calls that are delayed on the internet or generate random numbers. It is therefore as a basic state machine. Writing assembly language programs is not logical Therefore, Ethereum required a programming language to run the EVM.

Gas

The Ethereum Virtual Machine gas is a measurement unit that is used to assign charges to transactions that are made with the use of a smart contract. Every computation that occurs within the EVM requires a certain quantity of gas. The more complex the calculation is, the more gas is needed to run these smart contracts.
Transaction fee equals Total cost of gas used*gas price

Solidity

Solidity is a smart-contract programming language based on Ethereum. Based on the EVM and is similar to the object-oriented language that relies on methods and classes. It lets you perform any kind of computation, however it can be used to transmit and receive tokens as well as keep track of state. In terms of language, Solidity is greatly influenced by C++, Python and Javascript in order to help developers comprehend its syntax in a short time.
It is best to understand the fundamentals the Solidity programming language in order to create the Ethereum Smart Contract.

What is a Smart Contract?

The Smart Contracts are the basis of business logic or a method by which all transactions on the Blockchain occur. The purpose of the smart contract is to fulfill the common contractual requirements, such as creating your an own cryptocurrency on Ethereum. We must develop smart contracts that follow every calculation for our token will take place.
It’s a standalone script that is written using Solidity and then converted into JSON and distributed to a specific account on the Blockchain. Similar to calling an URL endpoint in an RESTful API in order to run some logic via an HttpRequest or a deployable smart contracts similarly to the address of a specific address by entering the correct information and Ethereum to invoke the implemented and compiled Solidity function.
Smart contracts can be deployed to the database that is decentralized for fees proportional to amount of code’s storage. It is also defined as a set of codes stored on the blockchain network. It defines the conditions upon which the parties in the contract have to accept.
We will present an illustration of Ethereum smart contract creation with Solidity. Solidity program language. It is important to know what exactly is Solidity.

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A Ethereum smart contract (smart contract) is form of account which is run by a program that includes software and data acquisition. It is stored at a specific location in the Ethereum blockchain.

As a kind of Ethereum account Smart contracts can store the balance of transactions and transfer them through the network. However, it is notable that they’re deployed to the network and not controlled by the user. They operate according to how they are programmed. users are able to interact with them by sending transactions in line with specific functions of smart contracts.

Just like a regular contract, smart contracts define rules. But the difference lies in the execution. Instead of simply making rules smart contracts implement them with code. Additionally, the interactions made that are made with smart contracts are permanent and cannot be canceled in default.

The complex blockchain software such as Ethereum are extremely exploratory. There are always changes and when new loopholes or bugs are discovered or discovered, innovative best practices get brought into the market. Thus the security landscape keeps changing and can differ from one point to another.

General Best Practices for Ethereum Smart Contracts

Every kind of best practice are essential for ensuring that the smart contract will defend itself from security vulnerabilities and bugs in terms of security. Certain of these best practices depend on the approach and mindset that the developer uses for protecting the smart contract.

1. Be prepared to fail.

Every important contract is vulnerable to errors. Therefore, you need to be prepared for the occurrence of errors and your contract must be able to respond to these. You can do so by:

• Stopping the contract or breaking the circuit’ if problems occur.

• Designing a successful upgrade strategy that includes improvements and strategies to address loopholes, bugs and loopholes.

• Effectively managing amount of money that is at risk by limiting its maximum amount of use and governing the total amount.

2. Make sure you are careful when rolling out.

A careful rollout can allow you to find and eliminate problems before entering the production phase. This can be accomplished by:

• Conducting thorough tests on contracts.

• The contract is being rolled out in stages, with a gradual increase in testing and usage in each phase.

• Offering bug bounties even before the testnet’s alpha versions.

• Testing to discover every new attack pattern.

3. Keep the contract simple.

If you design your contracts to be complicated they are more susceptible to chances of mistakes and bugs. Therefore, keeping them simple is the most effective method to minimize the chance of making mistakes. Keep contracts easy by following these guidelines:

• It is important to ensure you’re using a contract that’s straightforward.

• If you can, make use of tools or code that you’ve written before.

• It is possible to modularize the code to reduce the number of contracts and functions tiny.

• Make use of blockchain only for areas of your system that require decentralization.

• When possible, give priority to simplicity over efficiency.

4. Stay informed and stay on top of any new developments.

You should always be current on any security advancements or updates. You can do so by:

• Always check your contracts for any new errors or bugs.

• Open to new security methods.

• When you use libraries or tools and library, upgrade to the latest release as fast as you can.

5. Be aware of blockchain properties.

Anyone with enough experience in programming are able to master Ethereum programming easily. But, they should be aware and alert to specific pitfalls and properties of blockchain by:

• Be cautious when making contracts that are made outside of the organization as they could be malicious and alter on the control flow.

• Keep in mind that anyone could also access private data contained in smart contracts.

• Being aware that attackers could deliberately make public events appear as they are not public.

• Be aware that in a blockchain system, time stamps are not precise and miners may alter or alter the time of an operation’s completion by the span of a few seconds.

• Be aware of the gas restrictions for block gas and the cost.

• Be aware of the methods used for random numbers on blockchains is generally game-like and not a problem.

6. Take into consideration the tradeoffs that are fundamental to your situation.

Take into consideration thFrom the standpoint of engineering software, a perfect smart contract should be modular, have upgradeable components and reuse code, without duplicates it. But, from a security architecture’s perspective an ideal smart contract could be able to follow the same design. So, when evaluating the security and the structure that you will be using for your it is essential to strike a balance between these two aspects.

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Defi has emerged as a market that is saturated from all aspects, and is based on the possibility of crowdsourcing additional funds through the launch of hundreds of projects within one space, with no visible rules. There are a myriad of loan protocols, decentralized exchanges and platforms of yield farming. Each newly created Defi project is now focused on being different from the others through all ways. In the case of Injective Protocol Injective Protocol, it has developed a plan to target the derivative market using an scalable and decentralized strategy. It’s hard to overlook an organization that boasts of having unlimited acces to DeFi markets with no restrictions, and by utilizing backing from major industries such as Pantera, Binance, and CMS.

What is an Injective Protocol?

Established in the year 2018 by Eric Chen and Albert Chon in the year 2018 Injective Protocol is a decentralized derivatives exchange built on Ethereum supported by an advanced layer-2 solution. The system of Injective Protocol that has a layer-2 solution backup enables investors to quickly and securely access DeFi market. Injective Labs unveiled its first product as the first completely decentralized exchange system for DeFi in the month of April in 2020. The initial goal of the development team was to eliminate the restrictions of the DEXs in the past which restricted users due to relying on trading in order books and excessive latency. They also had insufficient liquidity, and other centralized design.

When we speak of Injective Protocol, we’re not just talking about the DEX which allows you to transfer tokens and yields from farms. We’ll instead explore an DEX which focuses on the market for derivatives. Injective Protocol aims to deliver the benefits of decentralized futures, margins spot trading, permanent swaps to investors in DeFi. Every component that supports the DEX, according to Injective Labs, is constructed in a censorship-resistant, public, and entirely trustless manner. Injective Chain, Injective Exchange along with Injective Futures Injective Futures platform are the three primary components of the project.

Motive

Injective Protocol visions a newly built economy that is decentralized in its nature. The goal of this idea is to create the most secure and secure system for exchange, payments and the transfer of money. Injective is a company which allows crypto exchange and makes the crypto as a public utility that is decentralized in the sense of. The solution to exchange cryptos offered to users by Injective Protocol has assisted the users, giving them and their communities with an advantage in the world of exchange. The forex trading on the blockchain that is cross-chain based as well as derivatives and futures permit participation from any and everyone around the globe with the aid by Injective technology.

Injective Protocol is creating an exchange model that has the potential to change the way trade is conducted in the manner it is currently happening through technological advancements, which accelerates trade and settlement execution speed in a swift and decentralized way without authorization or any censorship.

What is the issue that this Injective Protocol solve?

Injestve Protosol is a teshnologu designed to address the issue of third parties in trading by rroduing the right sequence however, the orders are processed sesurelu and without collision barriers. It was invented to maximize the benefits of DEX liquidity and also eliminate the requirement for third parties in order to coordinate trade transactions within the exact block. It also permits rogue traders to choose an order that is suitable for using it without knowing the particulars of trade orders that belong to other traders. This prevents front-running and guarantee that an abundance of additional orders are fulfilled without difficulties. Injective Protosol is designed to prevent front-running and ensure that orders can be Injective Protosol is made to be able to meet the aggregation agreement of most DEX to ensure liquidity by matching orders to allow for the flexibility and effectiveness.

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The rise of the cryptocurrency era has brought about technological advancement and legal/regulatory tangle. Startups have begun making creative use of cryptocurrency in the form of an Initial Coin Offerings, to create and provide new crypto tokens that can be exchanged for fiat currencies.

Due to its decentralized and unduly regulated nature, cryptocurrency has created legal challenges for various law enforcement authorities, including, US securities law. The most important question is whether cryptocurrencies is covered by US Securities Law.

Many schemes have been developed to raise money to avoid applying for securities law.

The courts have looked into these schemes to determine if they are investment contracts as per Federal definition.

Howey Test was devised to determine if securities are subject to certain rules regarding disclosure or registration.

What is the Howey Test?

One of the most important cases involving the investment contract definition is in the US Supreme Court, SEC v. W.J. Howey Co. under Howey Test declares the definition of an investment agreement is that is a scheme, contract or arrangement in which the participants invest their money in a typical business and hope to earn profits only through actions of an third-party or promoter.

Additionally The U.S., SEC has stated that cryptocurrency that meet the Howey Test are securities and are subject to regulation for securities in addition.

Supreme Court has created the “Howey Test” to identify the extent to which certain transactions are “investment contracts.”

If the transactions qualify in nature, they will be considered securities in the Securities Act of 1933 and the Securities Exchange Act of 1934.

We must have a good understanding of the concept “Security” before discussing the Howey Test in more depth.

How do you define security?

The Securities Act of 1933 and the Securities Exchange Act of 1934 were both enacted over 100 years ago to establish an important portion of U.S government’s strategy for dealing in financial regulatory.

According to section 2(a)(1) in the Securities Act of 1933, transactions that are deemed to be “investment contracts” are referred to as securities, such as books, promissory note bonds, stocks and promissory notes.

Transactions in investment have a significant influence on the way that the finance world views and interacts with securities.

Therefore, it is essential to establish a consistent method to determine whether the transaction is deemed to be investment contracts.

The securities offered are required to be registered with Securities and Exchange Commission (SEC) in the US.

An entity that provides securities that aren’t exempt from registration, must register them.

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