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The finance sector is one of the most sensitive and critical sectors of our time. With increasing numbers of individuals shifting their financial records from paper to digital Finance is constantly seeking out efficient and secure technologies which can be used to simplify processes and improve the security of its customers.

Inspired by the blockchain tech Decentralized finance, also commonly referred to as DeFi is a brand new method to manage finances in a non-centralized way and completely eliminate intermediaries from the process. It is seeing popularity due to its advantages and capabilities. As per DeFi Pulse, the total value that was locked into DeFi was about USD 679 million at the close of 2019. However, today, the total value locked into DeFi amounts to USD 12.45 Billion.

What exactly is DeFi?

DeFi is a term used to describe Decentralized Finance. It is a kind of finance that seeks to the elimination of intermediaries and establishing an economic ecosystem that is:

• Transparent
• open source
• Permissionless
• Not centralized

The decentralized financial system operates independently of a central authority meaning that it’s open to anyone. This means that people are able to:

• Completely manage their assets
• Conduct peer-to-peer transactions and exchanges
• Create and use decentralized applications (dApps)

By eliminating financial intermediaries such as banks, exchanges, and brokerage firms, DeFi uses blockchain technology to help finance. With DeFi users can:

• Each borrows money from the other
• trade cryptocurrencies
• insure against risks
• High interest rates can be earned
• Price speculation on assets

By using decentralized finance, individuals have many advantages. To better understand it we need to know what is the difference between it and centralized finance (CeFi).

What is the difference between CeFi and DeFi?

CeFi stands for central finance. Like the name implies, CeFi is a central financial structure.

There are many distinctions between CeFi and DeFi. To comprehend the differences better Let’s talk about them thoroughly.

The main distinction between CeFi and DeFi is evident from their terms. The DeFi network is decentralized while CeFi has a centralized. DeFi is a non-permissionless network and CeFi is an authorized network. In CeFi, certain actions can only be executed by authorized individuals, while in DeFi there is no central authorities.

DeFi is an open-source software and, therefore, promotes collaboration that is free. CeFi isn’t an open source software, which means that collaboration between users isn’t supported and the decisions are made by designated people. As DeFi is open-source, it is also censorship-resistant, whereas CeFi can be censored.

DeFi is more affordable contrasted to CeFi due to the fact that the majority of costs are network-related. But CeFi can be expensive since intermediaries are charged hefty charges.

Defi is based on blockchain technology, while CeFi operates with conventional techniques.

Decentralized finance shifts the flow of transactions from traditional , centralized financial systems to P2P financing supported by decentralized technology built on blockchains, such as Ethereum as well as Stellar. Centralized finance involves many institutional and central government authorities and intermediaries. DeFi seeks to eliminate them by using smart contracts.

Due to the many promising advantages that it has it has been one of the most popular sectors of the blockchain market with a myriad of use cases and a total value locked of USD 12 billion. Let’s look at the advantages.

What are the benefits of DeFi?

• Immutability

Immutability is “not subject to changes.” Since the decentralized finance system is based on blockchain technology, the data is unchangeable, which means that it can’t be altered. Because the data is impervious to manipulation that makes financial procedures as well as operations extremely secure and easily auditable.

• Transparency

DeFi is transparent. Since it is based using blockchain technology that is, all data, transactions and codes stored that are stored on the blockchain are accessible to all. A level of transparency like this can builds trust among the userssince everyone on the network has the ability to:

know what type of transactions are being conducted.

Learn about and appreciate the code of the smart contract as well as its capabilities.

Therefore, transparency is a guarantee:

• high levels of trust

• Security

• Auditability

• authenticity

• Interoperability

Through decentralized finance developers are able to freely:

• built on top of existing protocols

• Modify interfaces

• incorporate applications from third parties

Due to this adaptability DeFi protocols are frequently called “Money Legos.” Decentralized financial applications are created by combining DeFi products. For instance, Stablecoins, decentralized exchanges, as well as prediction markets are able to be combined to create entirely new and far more advanced marketplaces.

Read More : https://www.leewayhertz.com/decentralized-finance-defi/

NFTs have exploded in popularity. People are more aware of this and their increasing interest in NFTs is driving exponential growth in NFT sales. NFTs’ massive growth is due to the property of scarcity. However, the same property can cause liquidity problems in NFT assets. NFTs’ current horizon is restricted to NFT trading. However, NFTs must be able to adapt to cross-chain and cross-functional adoption in order to maintain their momentum and relevance in real life.

This is all about increasing the utility of NFTs across multiple blockchain-based projects such as Defi platforms and digital games, apps, websites, and apps. Simply put, this is about NFTs being used in multiple universes or multiverses; it’s about expanding NFTs’ purpose beyond one NFT marketplace.

What is Multiverse NFT?

Although trading and purchasing NFTs is possible in the NFT space today, it will soon become a place where NFT users and the rest of the world will require utility for NFTs. NFTs will soon be as boring as JPEG files. People may use NFTs to gain access to new features, connect to content, or unlock other benefits. Multiverse NFTs are also known as cross-usable NFTs.

Why do we need multiverse NFT?

Digital collectibles are possible due to their true digital ownership and scarcity. Numerous artists, creators, and dApps created millions of NFTs.

Multiverse NFTs, however, are more than collectibles. Multiverse NFTs have a superpower that lies beyond their basic NFT attributes. NFTs are rarely used and often provide access to the same entity that created them. dApps allow access to content if the user verifies ownership and identity of the NFT via a blockchain wallet.

In the case of traditional apps, access to content is controlled by centrally managed user accounts. Interoperable NFTs offer untapped potential. Additional permissionless utilities can be found on the third-party dApps through decentralized, user-owned and publicly managed NFTs. NFTs have unlimited access to a wide range of utilities. They make it possible to combine digital products and services in cooperating networks. An ecosystem of collaborating apps can be formed by various communities and projects. This will attract new users and offer new utilities, extended use-cases, and add value to NFTs.

Users can explore the utilities of their NFTs and be notified about new utilities. This helps them stay on top of things.

What is a multiverse NFT-platform?

Multiverse NFT platforms allow NFT creators to connect with utility providers and to share their content across multiple decentralized applications. It’s a content collaboration platform that connects brands, dApps and creators via cross-usable, non-fungible tokens.

Multiverse NFT platforms can contain different types of assets that can be interconnected and managed, such as interoperable NFTs and utilities.

NFTs:

These unique digital entities are often used to represent ownership or access to digital content.

Utility:

Any digital content that can be accessed using an NFT, unique items or characters in a game are considered utilities. A utility can also include a coupon, discount, or any other information that the provider offers via an NFT.

Resources:

This is the third category. These are data needed to create digital content across multiple apps. A utility is access to a particular item in a videogame, while a resource is the 3D model that was used to create it.

What are the key features of an NFT multiverse platform’s core components?

Multiverse NFTs, as the name suggests, are about improving NFT usability across multiple prospects. A multiverse NFT platform allows NFT creators to work with various digital utility providers and other resources to make NFTs more cross-usable. This includes facilitating secure sharing of content through NFT-based content accessibility.

The features of a Multiverse NFT Platform are programmed according to the requirements of the projects. However, some core features of a multiverse NFT Platform can be as follows:

• Manage NFTs, utilities, or digital resources.

• Integrating NFTs into token-based digital content access will help to support this model.

• Give users an opportunity to connect with NFTs, communities, apps and communities.

• Facilitate cooperation between NFTs and digital utilities by facilitating the sending and receipt of cooperation requests for NFT content access.

• Automate the maintenance and management of your asset network

Read More : https://www.leewayhertz.com/multiverse-nfts/

The potential for transformation in the financial services market is huge with crypto assets. While most people are familiar enough with utility tokens, security tokens are a new concept. Before we talk about the launch of Security Token Offering (STO), it is important to first clarify what STO and security token are.

A security token is one that is subject to federal security regulations. It can derive its value by trading an external asset.

Utility tokens cannot be used for accessing specific services. Security tokens however are assets with ownership rights. Security holders can enjoy equity, dividends, voting, and profit share.

Startups launching ICOs need to comply with all legal requirements to give investors more security and credibility.

While it’s true that the process can be complicated, there are many benefits associated with security token issuance. Tokenizing securities can increase liquidity, which can be attractive to more investors.

Security tokens offer other benefits, such as increased market efficiency and lower issuance fees. They also allow for fractionalization of larger assets. A security token offering could be a great way to expand the number of possible applications if the startup meets all the regulatory requirements.

These are the different types of Security Tokens:

Equity Tokens

Equity tokens can be used to show ownership of assets such as stock or debt.

Debt Tokens

Debt tokens work in the same way as a short-term loan at an interest rate to a company. Steem, one of the debt tokens, is required to buy Steem Dollars.

Utility Tokens

Utility tokens give users the ability to access a product or service later. Companies can use utility tokens to raise funds to develop blockchain projects.

Asset-backed Tokens

An asset-backed token can be a token created on the blockchain platform that is associated with a tangible object or intangible object having a certain value.

An ICO is a similar process to launch a Security Token Offering (STO). You must make sure you are prepared, deploy smart contract for different rounds of sales and create a product.

Here are some reasons why security tokens are attractive to founders

Low entry barrier

Security token offering, which are cryptographic tokens that can tokenize any asset, is available for everything from debt to parking spaces. This flexibility allows smaller businesses to raise funds via private capital markets at lower initial costs.

Get more for less

Security Token Offering is a better deal than traditional VC deals. The best part is that the founders don’t have to give up their voting rights and board seats. It gives founders more peace of mind, and allows them to focus on growing their business profits. It allows founders to retain a significant amount of company ownership, while token holders can get dividend rights.

Accessibility to Institutional Capital

Security Token Offering is regulated and security tokens can be used as a gateway for traditional capital to the blockchain. Security Token Offering funds can be internationally funded. Security tokens are a gateway for traditional capital into the blockchain domain. Security tokens allow medium-sized companies to access international financial markets through VCs and family offices around the world.

Blockchain space is not bound by any one jurisdiction, making the post STO liquidity more accessible than tokens that are restricted to a single country.

Read More : https://www.leewayhertz.com/launch-sto-security-token-offering/

 Media coverage has helped to propel the development of Bitcoin and Ethereum in the blockchain world.

One blockchain project has been overlooked by the media, but it is making great strides to improve the lives of developers. The Linux Foundation created the Hyperledger Project in order to standardize and democratize blockchain technology for businesses.

Hyperledger is a cross-industry platform that helps companies to solve problems efficiently. It allows organizations to create custom blockchain apps to address their specific business needs.

What is Hyperledger?

The Linux Foundation founded Hyperledger, an open-source project. It offers a variety of frameworks and projects to developers and businesses to help them build blockchain applications and networks. Hyperledger Project is designed to facilitate collaboration between developers, businesses and enterprises in the field DLT (Distributed Ledger Technology).

Brian Behlendorf, Executive director of Hyperledger, explains:

“Hyperledger is an open-sourced community that benefits from a network of Hyperledger solution providers and users. It focuses on blockchain-related use cases across multiple industrial sectors.”

Hyperledger is supported by more than 250 organizations currently, and this number is growing rapidly. This list includes tech giants like Airbus, Daimler, IBM and SAP, Huwaei and Fujitsu Nokia, Samsung, American Express and JP Morgan as well as blockchain startups such Blockstream and Consensys.

Director quoted:

“You won’t see a Hyperledger currency. By not pushing a currency we avoid so many political difficulties of having to keep a global consistent currency.”

It strengthened the foundation of Hyperledger Project and helped to shape the goals of industrial applications of blockchain, as well as preventing it from getting rich schemes that result from currency-backed blockchains.

Hyperleger Project has enormous potential and features over 28000 participants with 3.6 million lines code. Hyperledger consists of 10 projects that include 6 tools and 6 frameworks. There are two main sections to the Hyperledger project:

• Modular Tools
• Modular Frameworks

We are now clear about Hyperledger. Let’s talk about the different Hyperledger Projects, Tools and Tools that help with blockchain development.

Hyperledger Projects

Hyperledger is a part of the umbrella strategy that promotes and incubates a variety of business blockchain technologies, including smart contract engines and graphical interfaces.

Hyperledger encourages reuse of building blocks and allows for innovation in distributed ledger technology components.

Hyperledger Burrow

Hyperledger Burrow, hosted by the Linux Foundation is one of the Hyperledger Projects. It provides a modular blockchain client that allows you to create a permissible smart-contract machine using the specification of Ethereum Virtual Machine. Burrow’s capabilities include high transaction throughput, transaction finality and proof-of-stake engine.

Burrow is made up of these components:

• Consensus Engine

The Byzantine Fault Tolerant Tendermint protocol is used to order and execute transactions. It offers high throughput for a number of validators and protects blockchain from forking.

• Smart Contract Application

The consensus engine finalizes transactions and they are then validated to the application status. The validator set, name registry, and all accounts make up the application state. The public-private key pair corresponds to Burrow accounts. Smart contract codes are included in the Burrow accounts. The code for an account is run on a permissioned virtual computer when a transaction interacts with smart contract code.

• Application Blockchain Interface (ABCI).

The Application Blockchain Interface allows smart contracts to interact with the consensus engine.

• Application Binary Interface (ABI).

Transactions should be written in binary format to allow the blockchain nodes to process them. Hyperledger Burrow tools allow you to create, link and deploy smart contracts in solidity. You can also execute transactions that call smart contracts on your chain.

• API Gateway

Burrow provides JSON-RPC, REST and other endpoints for communicating with the application state or blockchain network. This includes querying the most recent state of the application and broadcasting transactions.

Read More : https://www.leewayhertz.com/what-is-hyperledger/

Traditional financial services like loans and payments were only offered by banks and financial institutions. It changed with the advent of blockchain technology. As cryptocurrency became more popular, discussions shifted to a new set, which included decentralized and central finance (CeFi).

What is Centralized Finance?

Prior to DeFi, Centralized Finance was used for trading cryptos. It has a strong hold on the cryptocurrency market. All crypto trade orders in centralized finance (CeFi) are processed through a central exchange. The central exchange is responsible for managing funds. This means that you do not have a private key to access your wallet.

The exchange also lists which coins are available for trading and what fees you will need to pay in order to trade with them.

The concept of Centralized Finance states that you don’t own your cryptocurrency when buying/selling through a central exchange. You are also subject to the rules that a central exchange places on you. You are also subject to rules established by the central exchange.

What is Decentralized Finance? (DeFi)

The decentralized exchange does not involve any exchanges. The entire process is made possible by automated applications built on top of blockchain platforms. Decentralized finance also creates an open and fair financial system that anyone can access. This technology allows people who are not banked to have access to financial and banking services using blockchain technology.

DeFi’s goal is to create an open-source, transparent and permissionless financial services ecosystem. Decentralized financial services include borrowing, yield farming and crypto lending. Asset storage is also available.

DeFi has the advantage over CeFi in that you can control your assets and have access to your key pair. Decentralized applications (dApps), which are built on blockchain platforms, are required for users to access DeFi services.

What is DeFi and CeFi different?

DeFi and CeFi have many similarities, but the real question is whether people should trust technology more than technology.

DeFi users can trust that the technology will deliver what is promised for services. CeFi on the other hand, allows users to trust the people of a business to manage the funds and deliver the services.

Both DeFi and CeFi deliver a wide range of cryptocurrency-related financial services. Let’s look at some of the differences between the two ecosystems.

CeFi Features

• Centralized Exchange (CEX).

Users can send money to a traditional cryptocurrency exchange such as Binance, Kraken, or Coinbase to manage their funds within an internal account. Although funds are stored on an exchange, they are not subject to users’ custody and could be exposed to security breaches.

Security attacks have targeted centralized exchanges as a result. As they trust central exchanges, customers who use centralized exchanges don’t mind sharing their personal data or putting money into their custody.

Large exchanges often have departments that offer customer support. Customers feel more comfortable knowing that they are in good hands thanks to the high quality customer support.

• Fiat Conversion: Flexibility

When it comes to converting fiat into cryptocurrency or vice versa, centralized services offer more flexibility than decentralized services. A centralized entity is required to convert fiat and cryptocurrency. However, DeFi services don’t offer that flexibility.

Customers can be enrolled in the Centralized Finance ecosystem (CeFi) quite easily and offer a better customer experience.

• Cross-chain services

CeFi services allow you to trade LTC, XRP and BTC on independent blockchain platforms. DeFi services are unable to support these tokens due to the complexity and latency of cross-chain swaps. CeFi can solve this problem by obtaining custody of funds from multiple blockchains. CeFi can take advantage of this opportunity as many of the most traded and high-market-cap coin are on their own blockchains. They don’t have to implement interoperability standards.

DeFi Features

• Permissionless

DeFi is available to all users without their permission. To access CeFi, users must complete a KYC process. This means that they will need to deposit money or share personal information.

The services can be accessed directly via a wallet without the need to provide personal information or deposit money with DeFi. DeFi is accessible to everyone, without discrimination or barriers.

Individuals who want to build on top a decentralized platform are also allowed to do so freely. It allows for high accessibility and encourages collaboration within the community. The DeFi ecosystem is designed to help each other. DeFi products are sometimes called money legos.

• Trustworthness

DeFi services offer a significant advantage: you don’t have to be sure that they will work as advertised. DeFi service users can verify that they work as advertised by auditing their code. External tools like Etherscan are available to help determine if a transaction was executed correctly.

• Quick Innovation

DeFi’s rapid rate of innovation is another advantage. The Decentralized Finance Ecosystem constantly builds new capabilities and experiments with new ones. DeFi’s build-centric approach has resulted in a rich ecosystem that offers innovative financial services.

DeFi space has worked to find alternative solutions to problems where central financial services thrive. To overcome DeFi’s inability of facilitating the transfer of incompatible cryptocurrencies like BTC, solutions such as tBTC or WBTC that are compatible to decentralized protocols close the gap by acting as tokens pegged at the value of BTC. This allows DeFi users to access Bitcoin through DeFi without the need to use the token. 

Read More : https://www.leewayhertz.com/defi-vs-cefi/

 Blockchain was created with the vision of expanding its application areas and evolving the possibilities. Although we believe that blockchain can revolutionize various industries such as finance and trading, as well capital market, the non-cumulative nature the ecosystem of the technology continues to be a problem. There are many available blockchain platforms, from first-generation ones like Bitcoin to third-generation ones like Avalanche. These blockchains all have their own isolated chains. These chains are unable to cross over or facilitate token trade or token exchange between different blockchain protocols. This poses many challenges to people who use blockchain to exchange tokens on different blockchains. Many Ethereum-based projects, such as Uniswap, Dave and others, can be interoperable to exchange cryptocurrencies, trade assets and perform trades. Cardano created a unique sidechain protocol for moving values between blockchains that support Cardano. These facilities aside, blockchains cannot allow users to freely exchange tokens on different protocols.

The users began searching for technology that could solve the issues of exchanging or swapping between multiple blockchain platforms. Cross-chain Swap was their solution. This is a crucial part of improving the blockchain ecosystem. This article will cover cross-chain Swap in greater detail in order to highlight its importance in the growing blockchain ecosystem.

What limitations did the Siloed Decentralized System face?

Even the most popular platforms, such as Ethereum and Bitcoin, have their own isolated ecosystem. Even though they are decentralized and autonomous, they still require an ecosystem that allows them to exchange tokens. Also, it is not possible to exchange Ethereum’s native tokens using another protocol like Avalanche.

With the advent of advanced blockchains and the growing trend towards decentralization, this limitation has become a problem for both users and businesses who use blockchain. Avalanche is an example of such a network. The platform was launched in September 2020 and more than 225 projects have been built. AVAX tokens also trade on a large scale.

So people began to invest on different blockchains. They eventually needed technology that could support cross-chain token exchange. Cross-chain swap is a way to make it possible. But how do token holders of particular blockchains deploy their tokens to different ecosystems. Let’s dive deeper to learn more about the technology.

What is the cross-chain Swap?

Cross chain swap (also known as Atomic switch) is a smart-contract technology that allows for the swapping of tokens between unique blockchain ecosystems. It allows users to swap tokens directly between two blockchains without the use of an intermediary or central authority. ERC-20 tokens can be exchanged with BSC tokens. A cross-chain swap allows people to exchange tokens among members of the blockchain network. Additionally, the swap takes place directly from the wallet which speeds up the process.

Tier Nolan was the first to propose peer-to-peer exchanges between blockchains. Charlie Lee, a prominent computer scientist and creator Litecoin, was the first to implement this technology. He converted LTC to BTC and explained the cross-chain swap mechanism.

Cross-chain Swap is an atomic method for completing transactions between participants. Computer science has given rise to the term “atomic” which is used to describe indivisible transactions. It refers to the transaction being executed according to the agreement or the entire transaction becoming invalid.

Let’s break this down:

Non-atomic crosschain Swap is when you send one token (say AVAX), and hope to get a different token in return (say Ether). Because the receiver can withdraw from the process after he has received the tokens, this spray-and-pray approach could lead to fraud. An atomic swap on the other hand confirms that the recipient has received valid tokens within the specified time frame or the transaction will become null. The sender will receive the exact amount of tokens he has put into the swap. Cross-chain swap is a way to eliminate manipulation and fraud.

What are cross-chain Swaps?

Cross-chain swaps are made possible by smart contracts. They allow token exchange between parties on different blockchains. These smart contracts are powered using a technology known as Hash Time Lock Contracts. (HTCLs). This locks the transactions with unique combinations to ensure that verification takes place on both ends. The following security features are available with HTCL technology

Hashlock

Hashlock technology is used to secure smart contracts. It allows you to lock your coins with a secret code (the combination of data). Only the swap initiator has access to this secret key. The secret combination is revealed after verification of the deposit has been completed on his side. The receiver can see the combination on his side to unlock the deposit once he has revealed it.

Timelock

The timelock mechanism uses time restrictions to ensure that transactions are completed on the blockchain network. It allows for fast transactions. It states that the transaction must be completed within the specified time frame or funds will be returned.

An example of a practical example:

• Jack deposits his ADA coins into an HTCL account. The HTCL acts as a virtual safe. Jack can unlock it only by using the secret combination he has created and kept confidential.

• Lara will verify that the deposit is in the correct amount of tokens before she can swap it. Jack gave her the cryptographic hash for the unique combination. She can then deposit her tokens, Ether, to the same HTCL address.

• Jack takes the deposit and reviews the amount. He then reveals the secret code to unlock the deposit. Lara will also be able to see the combination once he has disclosed it.

• The cross-chain exchange is completed when each party receives the tokens.

Read More : https://www.leewayhertz.com/what-are-cross-chain-swaps/

The number of fraudsters has increased with the development of technology. Maintaining security protocols is a key task in order to ensure transactions are secure. Blockchain is a promising innovation, but we still need to maintain security in transactions. Zero Knowledge Proof, or ZKP, is a good choice in such situations. Since its inception, cryptography has been closely associated with blockchain. The combination of cryptography and blockchain has been a popular choice since ZKP was launched. To fully secure a transaction on a blockchain platform, cryptographic techniques are used. The combination of cryptography and blockchain has created a secure mode for financial transactions.

What is Zero-Knowledge Proof and what are its implications?

Zero-Knowledge Proof (or Zero-Knowledge Proof) is a cryptographic technique that does not reveal any information during transactions, except the exchange of some value to the prover and the verifiers (the other ends of the transaction). Zero-knowledge proof allows users to prove that they have an absolute value, without having to reveal any additional information.

These are the three intrinsic properties of ZKPs:

Completeness

The transaction’s completeness property indicates that the transaction has been verified and that the prover can proceed with the transaction. If the transaction statement is true, then the verifier can authorize the prover to provide the input he requested earlier.

Soundness

The soundness property indicates that the transaction is true and not part of any fraudulent case. This means that the verifier can’t be convinced if the transaction is different and the statement is incorrect. In such a situation, the verifier can’t certify or allow the prover to request the inputs.

Zero-knowledge

The verifier can only have the current statement and whether or not the authenticity of the statement is true or false. All other information or private data from different parties will be kept secret.

What are the two basic types of Zero-Knowledge Proof proof?

These are the two basic types of ZKPs:

Interactive ZKP

These actions deal with mathematical probability. Interactive ZKP requires that a prover convinces a particular verifier, and then repeat the process for every verifier. Interactive ZKPs require that the prover completes a series actions in order to convince the verifier of a particular fact.

Non-interactive ZKP

Non-interactive ZKPs have no voluntary interaction between the prover and verifier. Non-interactive ZKPs have a prover who creates proof that anyone can verify. The verification process can also move to a later stage. They need specific software to make non-interactive ZKPs more efficient.

Let’s now look at the ZKP concept and how it is used with technology. Zcash is a prominent Zero-Knowledge proof. Zcash is both the first application of zk-SNARKs, and the fundamental form Zero-Knowledge cryptography.

We now need to know what zk-SNARKs is. Zk-SNARKs stands for Zero-Knowledge Success Non-Interactive Argument Of Knowledge. zk-SNARKs refers to a technology that does not use interactive ZKP.

zk-SNARKs is able to work with the following algorithms.

Key Generator

A key generator creates a parameter that will generate a key pair. After generating a public or private key pair, trusted sources can remove the private information. The public information is used to generate another key pair. One pair would be used to prove and one for verification.

Prover

The prover receives the proving key and must prove his knowledge. The prover will verify and receive the private key, then he shall forward the statement.

Verifier

The prover will provide the input to the verifier, who will verify the authenticity of the statement.

Zk-SNARKS must also maintain the following properties.

• The statement will be the only thing that the verifier can learn. A challenge that is short and concise should only take a few seconds to execute.
• Non-interactive: The process should not be interactive.
• The proof must be consistent with the principle of soundness and have zero-knowledge encryption.
• Without a trusted witness, the verification and verification process cannot continue.

Read More : https://www.leewayhertz.com/zero-knowledge-proof-and-blockchain/

 “HBAR-Hedera Hashgraph Cryptocurrency for building and deploying dApps On Hedera Platform”

Leemon Baird is the creator of Swirlds’ revolutionary Hashgraph algorithm. It allows you to reach consensus quickly, in a secure, fair, and fair manner. The Hashgraph algorithm uses the virtual voting mechanism and gossip protocol to create the robust platform.

Hedera Hashgraph framework is designed to address the market needs for distributed applications. It allows micropayments, smart contracts to be built, and file storage.

Developers don’t need any license to use this platform, but they do require the platform token Hbar, which is a utility token that grants token holders access the distributed applications available on the platform.

Hedera Hashgraph cryptocurrency has been designed to be extremely fast. This allows for low network fees and micropayments. Hedera Hashgraph allows users to earn Hbar for managing the node within the network.

This article is meant for innovators and entrepreneurs who are interested in Cryptoeconomics by Hedera Hashgraph.

Hedera Hahgraph’s cryptoeconomics use two types of mechanisms

• Staking
• Proxy staking

Staking

Staking refers to the purchase and holding of crypto-coins in an account. Users can stake coins and receive rewards for running the network.

To achieve transparency and the performance benefits of shardings it is important to allow individuals to become network nodes. Sybil attack prevention is achieved by implementing the system in a way that each node can have an influence on consensus. The amount of Hbar each node owns is proportional.

Hbars are also essential to ensure that the network is running continuously.

The proof-of stake is used by the Hedera ledger. A node must declare which account it controls when joining a network. Every account should also have its own private keys. The stake earns interest by the node acting as a node. It will be paid a proportional amount of Hbars in its account.

Proxy Staking Mechanism

The proxy staking mechanism allows anyone to own the coins and not have any nodes. Proxy staking an account to a node allows users to stake the coins and earn interest. It allows the user to provide additional account credit for their coin and allows a node that has that stake to use it.

The payment made to run the node is split between the owner of the coin and the owner. You can negotiate the percentage of the profit split between proxy stakers or nodes.

Hbars are still being proxy staked and the owner controls them. They can at any moment turn off or redirect proxy staking to another network. They have the right to spend cryptocurrency at anytime, which will reduce the amount they/she receive as payment for staking.

You must have at least one cryptocurrency in your account for the following tasks to be possible:

• Construct consensus
• For operating as a Node, you will receive payment
• To send transactions to the ledger, you will need to pay fees

Proxy staking is a better way to earn interest and not run nodes.

Let’s now talk about the fees and payment methods used to access distributed applications via Hedera Hashgraph.

Payments and fees

Users have to pay fees to the platform, whether they want to add items or transfer crypto coins.

Because the Hedera network offers high throughput, and doesn’t require proof of work (POW), the expected fee for this platform is much lower than those on the market. Hedera nodes get compensated for their bandwidth, computing, and storage services in order to reach consensus or provide services.

Here are the fees and payment options for Hedera Hashgraph.

Node Fees:

The user can access the platform’s services through interaction with the node. This will send the transaction to their account. To transfer Hbar from an account to another user, for example, the user will need to approach the mode to provide the signed transaction.

The node will then add this transaction to an event it creates and tell (gossipout) it to the network for inclusion in the consensus. The node is compensated by the user with a fee. Hedera is not responsible for setting the fees.

Service fee:

Users will pay a fee to use any Hedera services. The fee for the storage of a file will be calculated according the Hedera schedule.

The storage fee is calculated as a combination of fees per file and an amount per byte per minute. If there aren’t enough Hbars in the account, neither the file nor the user’s charge will be applied. However, if sufficient funds are available, the user is then charged and the file is placed.

Network fee:

Each network handles a transaction charge. Each transaction by the network is charged a fee, from the cost to gossip transactions to the storage of it in the memory and the calculation of consensus.

The transaction fee plus the transaction’s byte count are the two factors that determine the fee. If a node includes a transaction in an existing event, the network fee will be charged by that node.

If the user initiates the transaction, the user will then pay the pay node network fee to the node.

Hedera collects network fees and services for the nodes. They process the transactions and perform the services. Hedera collects the fees for two types of payment:

Incentive Payment:

Hedera will make a payment to the node from its account once per day to incentivize them into becoming a node. To be eligible for payment, a node must stay online for at most 24 hours according to Hedera thresholds. A node will receive a proportional amount of Hbar depending on how much it stakes.

Dividend Payment:

Hedera provides payment to the Governing Members for fulfilling their roles in governance. Hedera will divide the fees it collects between dividend payments or incentive payments as determined by Hedera.

Read More : https://www.leewayhertz.com/hedera-hashgraph-cryptocurrency-hbar/

We can help you create your NFT marketplace so that your customers have a seamless purchasing experience. Our NFT developers can create a robust NFT platform that tokenizes any asset, including artwork, software licenses and digital collectibles.

NFT Marketplace Development empowers you to make the virtual assets of tomorrow a reality

We create reliable NFT marketplace platforms that include multiple security layers and all the features necessary to launch a marketplace. Our NFT development services will help you grow your business.

NFT Marketplace Development Services

NFT Marketplace Design and Development

Our team has a deep understanding of ERC-721 standards and ERC-1155 smart contracts, and IPFS protocols. We design and build a user-centric marketplace for NFTs where users can trade and create them.

NFT Smart Contracts Audit

NFT smart contract audits are offered by us to thoroughly test contracts and ensure there are no bugs or breaches.

NFT Marketplace Support and Maintenance

We offer support and monitoring for third-party updates, new OS releases, and make sure nodes are up and running.

NFT Development

As a service to the NFT marketplace, our NFT development team offers a token creation function. This allows users to create tokens on the platform for their assets.

The Features of Non-Fungible Coins

Tradability

NFTs can be traded in virtual environments or marketplaces thanks to their interoperability feature. NFT token holders can benefit from trading capabilities, bundling and bidding, as well as the ability to sell NFTs on markets.

Scarcity

Developers can use smart contracts to place large capital on NFTs, and enforce properties that can’t be modified after tokens are issued. Your asset’s uniqueness is enhanced by the fact that a developer can limit the creation of rare items.

Indivisible

NFTs are not like other currencies and tokens. They cannot be broken down into smaller pieces or fractions. An individual can either pay for an entire item or purchase nothing. NFTs are not able to provide division and remain unique at all times.

Standardization

NFT development allows developers to create reusable, common, and inheritable standards that can be used for all non-fungible tokens. This allows for the standardization and display of collectibles represented by NFTs.

Read More : https://www.leewayhertz.com/nft-marketplace-development-company/

Permanence and invariance are essential parts of the irreplaceable and unique NFT industry. Market capitalization is projected to reach $710 Million by 2021. The non-fungible token market (NFT) is experiencing steady growth. These fundamental flaws in design make it impossible to provide these characteristics for NFTS that are targeted at consumers. Additionally, the increasing number of assets are minted with NFTs at-risk.

NFTs were intended to remain on the blockchain for a lifetime. Due to limited space and cost, NFTs are only stored as an ownership record. However, metadata linking original NFT content is also kept. These links can be fragile and direct users to a particular location (using HTTP protocol), instead of an asset. This implies that the linked content is susceptible to being changed or removed at any time (due to broken links, rug pulls and 404 errors) which can lead to permanent loss of original assets.

Blockchain is an excellent tool for managing minting, bookkeeping and immutable metadata across many nodes. It is also very expensive to replicate large amounts of data using blockchain. This makes it difficult to store data on the platform. This is why the launch of IPFS, or Interplanetary File System (Interplanetary File System), was necessary to store and secure off-chain NFT information.

IPFS is an IPFS that can address these issues and provide NFT data storage in a permanent and accessible manner on a decentralized network. It acts as a peer-to–peer version-controlled data system and hypermedia protocol to store, retrieve and manage the data. IPFS can identify every file in a global NFTs namespace to allow NFTs link the NFT metadata of the digital asset with its content addressing feature. IPFS is more persistent than other centralized services, such as Dropbox and Google Drive.

What is IPFS, and how can it store NFT information?

IPFS, an open-source hypermedia protocol, allows peer-to–peer (p2p), decentralized data storage through:

• Simple sharing

• Censorship Resistance

• It is easy to retrieve

IPFS makes it possible to move data throughout the network and locate what you need using its content address and advanced file versioning data structures.

These three basic steps, which are built upon each other, make up an IPFS ecosystem.

Step 1: Content Addressing via unique identification

When users upload NFT information to IPFS they get an IPFS hash, also known as aCID. CIDs can be described as unique identifiers, or addresses, of NFT data used to refer the content regardless of its location. CIDs are generated from the content. CIDs are used to refer NFT data and prevent issues such as fragile links or rug pulls.

IPFS follows certain data-structure preferences, conventions and IPLD. This IPFS address uniquely identifies content within the IPFS network. The next step is to examine how links between content can be embedded within that content address via a DAG information structure.

Step 2: Content Storage and Linking via DAGs

IPFS offers decentralized data storage options and retrieval methods to keep NFT data long-term. IPFS’s permanence layer is cryptographic and ensures long-term persistence and durability of NFT information.

IPFS uses a Merkle DAG for NFT data link. It is optimized to represent files and directories. You can structure a Merkle DAG many different ways.

IPFS first splits the file into blocks to create a Merkle DAG representation from your NFT data. The ability to split it into blocks allows for different parts of the file to be authenticated quickly and can come from different sources. Merkle DAGs provide another important feature. When you have similar files, Merkle DAGs from different sources can be used to reference the same data subset.

It makes it easier to transfer multiple versions of large datasets (such a genomics research data or weather data). This is because you can only transfer the new parts and not create completely new files each time. Merkle DAG is used to link all NFT data.

Step 3: Content retrieval via Distributed hash tables

IPFS uses a distributed haveh table to identify peers that host NFT data. A hashtable is a database of keys and values. This hashtable is distributed among peers within a distributed network. The libp2p manages connectivity and interactivity among peers.

The libp2p querying the DHT allows you to determine which peers hold each block that makes up the NFT Data. Once you’ve found the content, you will need to connect to it (NFT Data) and retrieve it.

IPFS uses Bitswap for this purpose. It establishes connections with peers to send a wish list (a list containing all blocks containing NFT data) and sends them a connection. After receiving the requested content blocks, you can verify their authenticity by hashing them and comparing their CIDs. These CIDs can also be used to deduplicate blocks.

How does Libp2p support multiplexing?

It’s not easy to establish a connection and manage its expenses. Libp2p enables multiplexing between peers with high interoperability. It also eliminates the need to establish multiple connections for different services. The DHT that libp2p provides is used to retrieve the content. After this, the user can then download it through a multiplexed link. The stack’s middle is what holds it all together, and links them with unique identifiers.

Read More : https://www.leewayhertz.com/decentralized-data-storage-nfts/