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DOT READY TO BOOM AFTER A PULLBACK!! #Polkadot it failing to flip the local resistance into support. We have a monthly POC and the 0.618 fib level below to hold as support. If we can get a bounce there, I would expect PA to push higher to try and flip the blue box into support next! Calculate Your Risk/Reward so you don't lose more than 1% of your account per trade. Every day the charts provide new information. You have to adjust or get REKT. Love it or hate it, hit that thumbs up and share your thoughts below! This is not financial advice. This is for educational purposes only.
by Navitility
1
ETH AT CRUCIAL SUPPORT!!At we take a look at the ETH/USDT, we can see that is is trading in a massive broadening wedge pattern. Every time it touched the trendline, it bounced nicely. Will history repeat itself? Another thing to keep in mind is that the area which it touched is also lining up with the golden pocket for extra confluence. This is still a bullish chart until support fails. Remember we trade based off probabilities and theres a higher probability we get a bounce instead of a drop but since we can't predict the future we must alwasy protect our portfoliio with a stop-loss. Let me know your thought sin the comments below Calculate Your Risk/Reward so you don't lose more than 1% of your account per trade. Every day the charts provide new information. You have to adjust or get REKT. Love it or hate it, hit that thumbs up and share your thoughts below! This is not financial advice. This is for educational purposes only.
by Navitility
#SOL/USDT 1h (OKX Futures) Rising wedge breakdown and retestSolana lost 50MA and is pulling back to that resistance, seems likely to head towards 200MA support next. ⚡️⚡️ #SOL/USDT ⚡️⚡️ Exchanges: OKX Futures Signal Type: Regular (Short) Leverage: Isolated (5.0X) Amount: 4.8% Current Price: 99.17 Entry Targets: 1) 101.77 Take-Profit Targets: 1) 93.28 Stop Targets: 1) 106.02 Published By: @Zblaba CRYPTOCAP:SOL OKX:SOLUSDT.P #Solana #SPL #PoS #L1 solana.com Risk/Reward= 1:2.0 Expected Profit= +41.7% Possible Loss= -20.9% Estimated Gaintime= 2-4 days
Short
by TradingOn
12
Liquid-staking > Bitcoin ETF? Why did some coins do well?Trying to make sense of what happened this week in the markets - glad that Tezos is getting some shine but what made this week interesting is that it coincided with Bitcoin's ETF - news which didn't really help Bitcoin all that much but it helped a *select few* coins, while most of them actually went down. My gut tells me that both $XTZ and NYSE:SUI have something "normal people" want - which is basic, L1 liquid staking that allows people to earn "interest" on their money in a way where they don't have to lock it up. (Don't get me started on ETH on this one, lol.) LSE:TIA might've gotten some attention because they were marketing their liquid staking protocol recently but it's similar to other workaround solutions where you get tokens instead of the actual coin itself. I think it's safe to say that most people won't bother with L2 staking since managing sub-tokens within a currency itself is just too much work, and too much risk. This is mostly just a hunch the hypothesis right now is that some of the money that was supposed to flow into Bitcoin ETFs took a closer look at saw liquid staking as something potentially appealing since it's one of the few things in crypto that's easier to understand. What do you think?
Long
by RyanTanaka
#SOL/USDT 8h (ByBit) Ascending wedge breakout and retestSolana just printed a gravestone doji star which may have marked the local top after such rise. RSI got rejected on overbought territory as well, finally looks like it could correct towards 50MA. ⚡️⚡️ #SOL/USDT ⚡️⚡️ Exchanges: ByBit USDT Signal Type: Regular (Short) Leverage: Isolated (5.0X) Amount: 4.8% Current Price: 92.835 Entry Targets: 1) 94.926 Take-Profit Targets: 1) 79.273 Stop Targets: 1) 102.772 Published By: @Zblaba CRYPTOCAP:SOL BYBIT:SOLUSDT.P #Solana solana.com Risk/Reward= 1:2.0 Expected Profit= +82.4% Possible Loss= -41.3% Estimated Gaintime= 5-10 days
Short
by TradingOn
#AVAX/BTC 1D (Binance) Falling wedge on supportAvalanche printed a morning star, seems likely to bounce back towards 100EMA resistance. ⚡️⚡️ #AVAX/BTC ⚡️⚡️ Exchanges: Binance Signal Type: Regular (Long) Amount: 13.4% Current Price: 0.0003157 Entry Targets: 1) 0.0003101 Take-Profit Targets: 1) 0.0003796 Stop Targets: 1) 0.0002869 Published By: @Zblaba CRYPTOCAP:AVAX BINANCE:AVAXBTC #Avalanche #L1 avax.network Risk/Reward= 1:3 Expected Profit= +22.4% Possible Loss= -7.5% Estimated Gaintime= 3-7 weeks
Long
by TradingOn
$ADA/USDT 2D (#Bybit) Descending trendline breakout and retestCardano is pulling back to 50MA support and seems to be done with the downtrend, let's prepare for mid-term recovery. ⚡️⚡️ #ADA/USDT ⚡️⚡️ Exchanges: ByBit USDT, Binance Futures Signal Type: Regular (Long) Leverage: Isolated (2.0X) Amount: 4.6% Current Price: 0.4051 Entry Zone: 0.4014 - 0.3618 Take-Profit Targets: 1) 0.4798 2) 0.5536 3) 0.6275 Stop Targets: 1) 0.2995 Published By: @Zblaba CRYPTOCAP:ADA #ADAUSDT #Cardano #PoS #L1 Risk/Reward= 1:1.2 | 1:2.1 | 1:3.0 Expected Profit= +51.5% | +90.1% | +128.9% Possible Loss= -43.0% Estimated Gaintime= 3-4 months cardano.org
Long
by TradingOn
IMX is the most underrated L2A LITTLE BIT ABOUT IMX IMX is Ethereum's layer 2 blockchain targeting GameFi. It is a protocol for creating IMX NFTs on the Ethereum blockchain, which allows transactions to be executed quickly and without additional fees. Immutable X uses an optimized Proof of Stake (PoS) algorithm to provide high transaction speed and low cost, while keeping Ethereum secure and decentralized. With zk-rollup technology, Immutable X speeds up transaction validation, providing scalability and reducing commission costs. Immutable X also allows you to create free transactions, making it ideal for games and other applications where multiple transactions are a necessity. HOW IT WORKS AND DISTRIBUTES PROFITS IMX's main revenue, like any L2, consists of commissions for generating transaction batches at the second level, as well as capturing the results of these transactions at the Ethereum level. IMX also takes 2% of all secondary sales on marketplaces that use IMX's order book. IMX has implemented a steaking mechanism, which would more accurately be called pseudo-staking. 20% of the net income of IMX is converted into the native $IMX through the open markets and distributed between all the stakers. Because of that, the IMX project itself maintains demand for its token, in addition to sharing its profits with active users who support the project. In some ways, you could say that IMX is a kind of real yield product, which trend is growing more and more ABOUT THE PROSPECTS IMX is in a narrow GameFi niche, providing unique opportunities for developers and users. Right now, blockchain-based GameFi sector itself is one of the most promising along with zk, RWA and NFTfi. On top of that, IMX has a transparent mechanism to directly influence the price of its native token to holders support. Special mention should be made of the partnership between IMX and Polygon, so developers will be able to implement their products using all existing technologies, relying on Polygon's security. And users will get a better experience with their products. As the entire GameFi sector evolves and the market as a whole continues to grow positively, IMX will take the lead in infrastructure for GameFi, with solutions that are time-tested and proven. Thanks for reading! Share your thoughts about IMX in a comment section
by Samura0x
5
DOGE Reacts to Twitter Acquisition News - Is It Sustainable?Dogecoin had a very good week this week, probably in reaction to the news of the Twitter acquisition that happened as of today. It's still too early to tell, but some reasons to exercise caution regarding the company, especially given its new owner's past history. As we head into a recession, what worked previously may not work now. Also forgot to mention that Jack Dorsey started a new social media company Bluesky, which may directly compete with the idea of social media Web3. Can the Web2 moguls from an earlier era migrate successfully to Web3? Time will tell.
BINANCE:DOGEUSDLong
by RyanTanaka
The End of the Deflationary Asset EraDeflationary assets - aka artificial scarcity - is a product of the mediocre mind. Exponential growth and real social progress comes from the idea of "growing the pie". It's weird how people don't use that phrase anymore since it has become such a foreign concept at this point. Bitcoin  (and now Ethereum), NFTs, real-estate (both IRL and the metaverse), healthcare, education, and the economy as a whole has succumbed to the "scarcity mindset" and is in danger of collapsing on itself since it doesn't know how to grow its ecosystem from its base. Those mythical 100000x returns doesn't come from flipping or nickle-and-diming individuals but from growing the ecosystem as a whole. To keep the good times going, the response should be to increase capacity, not try to ration out your existing stock. Ethereum was particularly disappointing to watch this year because they had the capability to be so much more but chose the mediocre path when they started burning their own supply. Like Bitcoin, they put an expiration date on themselves and can now only expect modest returns from here on out. To be fair, "growing the pie" is very difficult and requires a higher degree of creativity and ability to spot new win-win scenarios from seemingly thin air. But that's why we have geniuses and entrepreneurs to fill that role that typical biz-dev types are unable to do. As the scarcity economies continues to do what it does - shrink - it's unfortunately going to take innocent bystanders with them. We're going to find that most of our tax dollars have been working to keep the illusion of sustainability rather than of real growth. But the silver lining is that as the status quo continues to implode on itself, the opportunity to grow the pie once again becomes possible. It's a cycle that has happened before and will happen again. With that, it's at least possible to navigate through the chaos. Good luck, folks. 🤞
BITFINEX:XTZUSDLong
by RyanTanaka
Too Good To Be True? Staking Rewards and the RecessionAs some analysts have predicted, the public's interest in crypto/Web3 projects have shifted from proof-of-work over to proof-of-stake, following Ethereum's "merge" a few weeks ago. ATOM and ALGO in particular did very well this week (though it did level off eventually) as what seems to be a partial migration of crypto money flowing from one area to the next. The pattern is just starting now so time will tell if it's a trend or a blip, but as we head further into a global recession, the idea of people "abandoning" stocks and other traditional fiat assets becomes more a possibility over time. We can look at some of the predictions being made right now in the industry, and its pros and cons. 1. Crypto Will Go Down With Fiat Given that crypto and the stock market have traditionally moved in parallel for the most part, it will continue to do the same during the downturn. This assumes that the low-interest rates of 2008+ onwards was also fueling the crypto hype and will follow the same pattern of prices plunging as cheap borrowing falls to the wayside. While there's certainly a case there, this assumes that the economy will behave "as normal" during the next downturn - which may bring a different type of risk to the table. 2. Money Will Flow into Bitcoin/Ethereum This is the main mantra of the "maxis" out there - they assume that people will lose faith in fiat as a whole, and convert their stocks/cash into a "reliable deflationary asset" like Bitcoin or (now) Ethereum. Deflationary assets - while some will call "ponzi-like" in its modeling - do objectively favor existing holders over newer ones, and can often cause problems with onboarding and long-term growth since it makes it more difficult for new money to come in. Given the two projects massive media/marketing presence last year, are there any more people out there to onboard? Probably not - but they are holding out for the idea that they will be proven right, one day. 3. Money Will Flow into "Cash-Like" Assets Like Dogecoin Traditional financial wisdom says that during recessions, "cash is king" - and we have seen some indication that money is starting to flow back into cash, especially the USD. (The USD is traditionally seen as the most "stable" and is typically where fiat assets flow into during recessions.) What does this mean for crypto? Well, up until now the narrative has been that out of the well-known coins out there, Dogecoin is the most "cash-like" since it's been actually used to buy and sell things at low costs. While the idea is interesting, DOGE has a few problems associated with it - that it still runs on proof-of-work (which is losing favor over time) and that being a fork of Bitcoin, it's technology is also being rapidly obsolete. (It cannot support NFT minting, for example.) There are plans for DOGE to move over to proof-of-stake eventually, but the timeline is TBD. 4. Money Will Flow into Staking Rewards As with ATOM/ALGO this past week, some lesser-known proof-of-stake coins have made its move - currently coins that offer competitive staking rewards are beating both the banks and the major proof-of-work coins, whom are simply unable to offer those types of rewards. ETH2 is now technically proof-of-stake, but its staking mechanisms aren't "liquid" - i.e. you don't know when you can get your money out. Some coins offer very high rewards (13%+) but is that too good to be true? Time will tell whether or not this model is sustainable or not. 5. Money Will Flow into Coins that Have Utility Arguably crypto's least talked about topic in public - coins that have real-life use-cases and actual products may start to see some gains as utility creates new converts over to particular projects. As the money for hype marketing strategies start to run low, many of the coins that have been running on it will start to drop out, making it easier for coins with real customers and revenue to stand out. Some coins have no value other than "store of value" - some coins have robust DeFi options but basically operates like an accounting firm - but there are a few projects out there that are attempting to expand into the worlds of direct applications. This is probably the most optimistic take on Web3's future as a whole, but the path of getting there isn't likely to be smooth - they don't call it "creative destruction" for nothing, after all. Of the projects out there, Tezos (XTZ) stands out as one of the few projects that have their hands in "everything" - with a diverse portfolio of projects in many sectors and brands across the world. (ETH does too, but their gas-fee problem has slowed technical and partnership development to a halt.) -- The actual outcome will probably some combination of the trends above, and is likely to get very complicated as time goes on, but I do think that it's important to keep an eye out for how key factions and ideas are circulating in the space right now since a lot of things are likely to change very quickly in the near future as we head further into what could potentially be the biggest global recession ever recorded in human history. "Higher numbers = good" has been the main focus of the crypto industry up until now but as time goes on we're likely to see more complex and nuanced takes on how the economy works and how Web3 fits into it as a whole. There might be some growing pains involved but this is how our understanding of economics matures, imo.
BITFINEX:XTZUSDLong
by RyanTanaka
ETH Merge and its AftermathWhat is the Ethereum Merge and why? The Ethereum Merge is the most significant upgrade for the Ethereum Network migrating its consensus algorithm from Proof-of-Work (PoW) to Proof-of-Stake (PoS). It is achieved by running a parallel chain called the Beacon Chain on 1st December 2020, underwent more than 1.5years of extensive testing and bug bounties before merging the Beacon Chain to the Ethereum Mainnet (the ETH we hold and use now). The Beacon Chain is the consensus layer which replaces the existing layer of PoW and the execution layer of Ethereum (Mainnet), along with all its previous transaction records remain unchanged. Under the PoS consensus algorithm, Ethereum will be: 1) More accessible – Anyone can access the network and become a validator node as compared to owning expensive hardware for mining operations under PoW. 2) More scalable – Faster transaction speed, reduced gas fees and upgrades that are not possible under PoW to encourage more adoptions on Decentralised Applications (Dapps) and Decentralised Finance (DEFI). 3) More secure – Increased accessibility and participation makes the network more secure and more decentralized which mitigate the issue of 51% attack on the network that PoW is susceptible to. 4) More sustainable – PoW consumes a great amount of energy and is not sustainable for our environment. PoS is a more energy efficient way to validate transactions and produce blocks on the Ethereum blockchain. Observations after the Merge The Merge upgrade is successfully completed and 2 week after it, I found some interesting observations: 1) ETHW, which is the forked version of the pre-Merge ETH starts to trade actively on major exchanges such as Binance, FTX 2) ETH, ETC and ETHW lost value sharply right after the Merge for 3-4 days straight 3) ETHW moved move violently than the other 2 ETH counterparts 4) At the time of writing, ETH has dropped about 14%, ETC 27% and ETHW 44% You might ask, shouldn't an upgrade makes ETH better, and hence the price should increase? I have some hypothesis myself to explain the price action. ETH is the first blockchain protocol after Bitcoin that enables Smart Contracts. Being the first mover, it gained significant market share and has a large pool of developers / communities working on ETH's ecosystem before other PoS layer 1 projects such as and not limiting to TRX, ADA, NEO, ALGO, XTZ and BNB came into the market to offer comparable blockchain solutions that are faster, cheaper and more scalable. ETH's dominance was affected but not threatened because fundamentally, the consensus layer of ETH is different from the others as ETH relied on miners to validate transactions, which many argued is more secure and decentralized. The closest thing to ETH is ETC, which is a previous version of ETH after a forked that took place in 2016 and ETC made little changes since. However, after the Merge, PoW changed to PoS which in turn changed the very fundamental basis of valuation for ETH - Real world resources such as electricity, mining rigs, manpower, rental and operation cost. ETHW, which was given to ETH holders at a rate of 1:1 also saw large selling pressure after the Merge. Think about it, you have 10 ETH and now you are given 10 free ETHW, coupled with an vibrate marketplace created by existing Exchanges, most people will choose to sell their ETHW because it comes at zero cost for them. This Godsend freebies and also the lack of buyers in the market could explain why price of ETHW dropped notably steeper than ETH and ETC. Moving Forward It is evident to say that ETH miners did not stop their operations and wind down their businesses because of the Merge, it is just not economically sound because the infrastructures are already in place, switching to mine either ETC or ETHW will make more business sense as long as mining remains profitable. As for ETH, their long term roadmap seemed unchanged and carried out as planned. Next upgrade will be the introduction of Sharding and this will greatly increase the Transaction Per Second (TPS), making ETH more scalable. For further reading about this ETH roadmap, you can go to their Ethereum official page. Closing Thoughts.. Overall, I think the switch from PoW to PoS is a sound move as it is in line with ETH's vision of becoming the world's super computer and requires higher scalability. On the short term, I am bearish on the price of ETH until the world is ready to transit and embrace blockchain technology on a wider scale. There are many projects that are direct competitors of ETH and they started off on the PoS route at the very beginning and had went through many improvements and upgrades. Their community validator node bases are also stable and mature, they can seriously contend with ETH. ETHW has dropped much more than ETH and ETC, it could be a leading indication that ETH and ETC still has room of price correction, or ETHW is lagging behind the two after a serious selloff of the free airdrops and looking at a sharp price rebound, which I think the former is a more likely scenario.
by TradeWithWayneYia
The Proof-of-Stake Era is Here. Can ETH Survive the Winter?After Ethereum's "merge" this week, the crypto market continues to sag as a whole, unimpressed. One pattern we see emerging is that coins that have been proof-of-stake since the very beginning (especially ATOM and ALGO this week) have been performing very well relative to the rest of the market. (Coins to keep an eye on in the near future: XTZ, ADA, TRON, MATIC, etc.) As we head further into the recession we're going to start to see some of these patterns get more aggressive. The reason why this is happening should be pretty obvious at this point: people's attentions are switching over to proof-of-stake, and the coins that offer competitive staking rewards (aka interest rates) are starting to attract new customers. Flipping NFTs is too confusing to most people but most people can tell when one rate is higher than another. (Especially since most banks are still stuck in 0-interest rate savings mode at the moment.) The crypto community has largely been down on Ethereum lately as the realization that they've fallen behind the curve starts to settle in. But they're certainly not out of the race yet - the roadmap to make ETH competitive in the proof-of-stake race is pretty clear: 1) Make staking liquid - the fact that it's locked up for an indefinite period of time is pretty ridiculous, possibly illegal. (Probably in their own interest to do so quickly before it turns into a lawsuit, tbh.) As it stands now ETH's staking rewards are too cumbersome and not competitive enough for people to consider. 2) Adopting on-chain governance would make skeptics feel at ease and would quell some of the criticisms coming from the Bitcoin maxis too. The real problem is transparency, not centralization. 3) Fix the issues with scaling to bring gas fees down, finally. They can probably consult people from other chains who have already figured it out. (If they can get over themselves, that is, lol.) They definitely have the resources to do so - that was never in question. Whether they're actually gonna do it, though, that's another story. I didn't exit completely but as a disclaimer I did sell off a pretty big portion of my ETH holdings this year because of concerns over its long-term prospects. Ethereum may be well on its way to becoming Bitcoin 2.0, given that it's now become a deflationary asset. If you're an ETH holder you'll probably be OK since they'll probably continue to burn their supply to make sure that the price doesn't go down too much. Silicon Valley is known for their appeasement of the investor class and we're likely to see the same pattern play out again. But keep in mind that each coin burned just makes it harder for new people to come in - what they've done is basically put an expiration date on their own project since they're actively restricting the platform's growth now. (Crypto NIMBYism, as I like to call it.) Coin supply is a controversial topic in the industry but can be understood in a fairly straight-forward way: The higher the supply, the better it is for newcomers; the lower the supply, the better it is for existing holders. Maxis will repeat whatever marketing slogans they were fed but at the end of the day, it's about who's back you're willing to scratch. Getting returns on your investment requires you to see things as they are and read between the lines of what's being said - are they using that wealth to make genuine improvements on the protocol itself, or are they just hoarding it and promoting the scarcity model behind your backs? More coin supply to attract new talent/investors? Sure, good idea in theory. Just not here - "Not In My Back Yard". NIMBYism is a thing you see in the real-estate markets, and we start to see its ugly head rear in the crypto space, too. I do owe a lot to ETH - it stabilized my finances, paid off my student loans, and gave me the time to do the things I wanted to do, rather than had to do. But it's probably time for me to move on - I'm here for the dream, not just the money. 🔥
Long
by RyanTanaka
ETHW (ETH PROOF OF WORK) 4 hr chart, UPDATE!ETHW (ETH PROOF OF WORK) 4 hr chart just looking bat this chart, I see right away Hidden Bullish Divergence...thats where the RSI (RELATIVE STRENGTH INDEX) charts a higher low and the price charts a lower low. Bc its so new and not alot of Data, that what i see right now quickly. Ill keep it updated. I see its still holding $8.00 which is big support this short into the new POW era, the RSI cannot break down beneath the line i have in the sand listed or its going lower.
E
by bylerzone
Ethereum Completes its "Merge". What's Next for ETH2?The much anticipated "merge" has happened on the Ethereum network as of last night - so far there doesn't seem to be any major shifts, although if you're an ETH holder you may have noticed a sharp drop-off in price as of this morning. (The market is down as a whole, but ETH took a bigger hit than most, as of today.) This pattern can be seen pretty often in the industry, where a technical upgrade or public hype often triggers a short-term rally as it gets close to the date, then a massive sell-off right after. (Dogecoin in particular tends to be very susceptible to this especially on Twitter, I've noticed.) While some attribute this behavior as "whale activity", it's usually a sign that ETH still has downward pressure in terms of price - experienced investors often try to time their liquidations by riding short-term hype cycles of clearly-defined dates, as seen here. While the merge was a momentous occasion for the chain for sure, now that it's over it's going to shift the attention of the project to a number of challenges that will likely determine the viability of ETH2 in the long-term. A few of them are: - Yesterday probably marks the beginning of the proof-of-stake era for the crypto industry, especially as we head further into the recession and staking rewards (interest rates) start looking more appealing as a place for people to park their money, longer-term. ETH has made that transition, but there are also already many competitors out there (Tezos, Cardano, Cosmos, TRON, etc.) that outperforms ETH2's staking rewards by a very large margin right now. (Though to be fair, ETH2 is still beating the banks, which still is trying to stay at near-0, despite the Fed's rate hikes.) - "The merge" is only 1 out of 5 steps (Merge, Surge, Verge, Purge, Splurge) until ETH2 is "fully done", which is estimated to take 6 years or longer. Gas fees won't be affected until their "sharding" upgrade is complete, which doesn't have a deadline as of yet. (Until then, most ETH apps will largely sit idle/abandoned since practical usage is just not possible right now.) 6 years is a very long time to sit idle, really. - ETH2 is currently not liquid (you're not allowed to withdraw from ETH2 accounts until they're "ready"), which makes it much more inflexible and risky than traditional CDs and bonds that have fixed end dates. This is likely to make it very unappealing for most investors out there who will need more clarity and stability in their returns, especially during bear markets. - Though in theory they are supposed to be independent, we don't actually know what sorts of after-effects ETH2 will have on Layer 2s and ERC tokens built on top of the original chain. Time will tell, but if the price continues to drop (which is likely at this point), we may start to see unintended effects start to pop up. (A lot of crypto projects "balance" their economy with the idea of the price always going up - but that strategy has already backfired in a number of projects already.) - ETH doesn't support on-chain governance systems (like Tezos - Vitalik was on record being against the idea for a very long time) so there is no way for people to know whether or not the outcomes of DAO or multi-chain votes were done with due-diligence or not. Many businesses and organizations will not participate in these activities until this is fixed. Until then, ETH holders will have to just get used to big decisions behind done behind closed doors. - What happens with the migration of miners in the ecosystem (ETH was the go-to in terms of mining profitability until now) will be interesting to see since this will be major shift in hash-power allocation in the industry as a whole. Bitcoin mining - due to its fixed supply - has a extremely high difficulty curve and very difficult to turn a profit on so most miners are unlikely to go there, either. It may be an opportunity for a lesser known proof-of-work chains to make its move. (Especially "useful" PoW projects like Gridcoin and Golem.) -- All in all, the merge came and went, as with like most technical upgrades in the past, the market didn't seem too concerned -- at least, not yet. Ethereum has the bigger challenge now of addressing use-cases and business concerns in order to re-attract the talent and resources that had fled the scene since its gas-fee problem started becoming all too apparent. Can it stay competitive among the proof-of-stake league that have had more time to refine their process? Time will tell.
Long
by RyanTanaka
5
Proof of work VS. Proof of StakeBINANCE:ETHUSDT Before Ethereum merge lets dive in little bit in fundamentals At the core of each cryptocurrency is a network of computers that helps keep software safe from hackers and controls how many new units can be made available. The consensus mechanism is the name for this set of rules. Proof of Work (PoW) and Proof of Stake (PoS) are the two most common consensus mechanisms. They both control the way that transactions between users are checked and added to the public blockchain ledger without the help of a central party. Understanding the differences can help you decide which cryptocurrencies to add to your portfolio. For example, cryptocurrencies that use Proof of Stake may come with more responsibilities or benefits. What does PoW (Proof of Work) mean? In the early 1990s, Proof of Work (PoW) was created as a way to stop email spam. It was thought that computers might have to do a little bit of work before sending an email. This job would be easy for someone sending a real email, but sending a lot of emails would take a lot of processing power and resources from users. But Satoshi Nakamoto, the person who made Bitcoin, was the first person to use the technology in a digital money system. He did this in the Bitcoin white paper. Blockchai Blockchain is a system made up of a chain of blocks, which are groups of transactions that are put in order by the time they were done. The software for the PoW blockchain has the genesis block, also called block 0, hardcoded into it. This block doesn't connect to the one before it because that's how it's made. Blocks that are added to the chain always refer to blocks that came before them, and each block has a copy of the whole updated book. Costs of energy PoW algorithms decide who can make changes to the ledger by setting up a race in which some participants (called "miners") are asked to use a lot of computing power to come up with valid blocks that follow the rules of the network. The nodes, which are any computer running the Bitcoin software, then verify the transactions, stop double spending (sending the same amount of money to two different people), and decide if the proposed blocks should be added to the chain. Miners on the PoW network compete to solve hard math problems, which is called "hashing," in order to make a new block. These puzzles are very hard to solve, but the network should be able to easily check that the answer is correct. Participation In the PoW protocol, computing power and cryptography are used together to reach a consensus and make sure that transactions on the blockchain are valid. Miners try to get the right answer to math problems during the hashing process and when making new blocks. To do this, miners try to figure out a string of numbers that seems to be random, called a hash. This, along with the data in the block, should produce a result that meets the conditions set by the protocol when it is run through a computer with a hash function. The winner's hash is then sent to the network so that other miners can check if the answer is correct. If the answer is right, the block is added to the block chain, and the miner gets a block reward. Giving out the prizes The block reward is the new cryptocurrency that is given to the miner by the blockchain for each valid block that the network accepts. After a certain number of blocks have been found, the block reward for some cryptocurrencies, like Bitcoin, goes down. This is to make sure that the total amount of money stays fixed and doesn't keep growing. What does PoS stand for? Proof of Stake (PoS) is a change to Proof of Work (PoW) that was made in 2012 to get rid of the idea that the blockchain's order was based on how much energy was used. Instead of having computers compete to make the matching hash, the PoS protocol is based on the idea that participation is determined by who owns a certain number of coins. Using a set of factors set by the protocol, the Proof-of-Stake (PoS) algorithm chooses a node (anyone who owns the coin) to propose the next block to the blockchain in a way that looks like it was chosen at random. When a node is chosen, its job is to check that the transactions in the block are correct, sign the block, and send it to the network to be checked. Blockchain Order Similar to PoW, a PoS blockchain is a system made up of a chain of blocks that are put in order by the time they were created. The genesis block is the name for the first block in the PoS blockchain, which is also hardcoded into the software. Blocks that are added to the chain always refer to blocks that came before them, and each block has a copy of the whole updated book. In Proof-of-Stake (PoS) currencies, there is no competition for who gets to add blocks. Because of this, blocks are often called "forged" or "minted" instead of "mined." Costs of energy PoS blockchains are different from PoW blockchains in that who can offer blocks is not just based on how much computing power and energy is used. People who like PoS often say that it is a "more energy-efficient" system because each node is in charge of making new blocks instead of competing with other nodes. Since both PoW mining and PoS minting require energy, mining and minting nodes want to use the cheapest form of electricity possible. This is usually from renewable sources like hydroelectric power, wind power, or solar power, not from sources that release greenhouse gases like coal. Also, PoS blockchains need to use specialized hardware (GPUs), which, like PoW mining hardware (ASICs) and other computers, costs money to make. PoS miners also have to keep their internet connections up and running, which takes energy. Participation Users who want to be chosen to add blocks to the PoS blockchain must stake or lock up a certain amount of blockchain currency in a special contract. How likely they are to be the next person to make a block is based on how many coins they bet. If a user does something bad, they might lose their share as a punishment. So that the richest nodes don't always win, PoS may use other factors to decide. These can be things like how long the node staked its coins or just pure chance. Giving out the prizes Similar to the PoW algorithm, the block reward in PoS is the cryptocurrency that the blockchain gives to the user who offers a valid block. But since blocks are chosen based on who owns the coins, exchanges may offer "staking" services that let users stake money on their behalf in exchange for more frequent payouts. Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch! ✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes. * Look at my ideas about interesting altcoins in the related section down below ↓ * For more ideas please hit "Like" and "Follow"!
Education
by Crypto4light
Ethereum Ahead of merge pt.2So the corrective move I illustrated last week is still fairly in play. Now I can imagine these 2 PA to happen next, and as I mentioned I'll be waiting for a considerably nice reaction from my AOV to get into a long setup while having in mind that as we get closer to the merge, the news outcoming from the event will exaggerate any move in the charts. In my opinion, depending on how the merge will take place, it will have a big impact on Ethereum's "perception of value". Thus we shall expect some serious volatility for sure. regardless of the fundamentals, here's what I see as technically possible for Ethereum in the coming days. I'll post an update next Sunday! Cheers.
FTX:ETHPERP
by gotwhatneeded