Tag: cryptocurrency

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Meta sells Diem assets to Silvergate in $200 Million | What happens now?

Diem written with a out sign on Meta with a the Facebook logo in background

Diem, which caught all the eyes of the people since it came out as Libra in 2019 and Mark Zuckerberg defending it in front of the chamber of commerce for a long time, has taken a serious turn, Meta sells Diem.

According to The Wall Street Journal’s report on Tuesday, it is said that Meta(formerly Facebook) is selling its technology assets to the Silvergate capital bank for about $200 million ($180 million). Meta is one of the founding companies of Diem Association (formerly Libra Association) along with 25 other investors.

Later on, Bloomberg also reported that Meta Inc. was considering selling Diem assets to return the capital to their investors, who were backing them through the whole project.

Meta logo in Blue color, founder of Diem Project
Meta sells Diem to Silvergate Capital

Why did Meta step back?

There is still not a proper answer to the question. However, yes, it seems irrational to first step into digital payments while defending it for the longest of two years and then suddenly dropping the pin by accepting defeat in the cryptocurrency world.

But we might get an answer to this question of Meta stepping back if we look at all the previous incidents. Spoiler! Yes, things have been absurd.

First, Meta (at that time Facebook) comes up with this stablecoin known as Libra. Initially, Libra was supposed to be a new coin backed by a bucket of several cryptocurrencies.

Soon after Libra came into the limelight, it got into some serious laws scrutinies. And in the first year, some big investors, such as PayPal, Mastercard, and Vodafone, left the project. 

This was one of the many reasons Libra Association switched to Diem to get a fresh start. However, just name wasn’t the only change that made up to the project.

Diem also switched their backing up reserves idea. Instead of a bucket of cryptocurrency Diem — the stablecoin was only backed up with USD with the association of Diem blockchain. And Meta gave the big news of Pilot Version of Novi Launch in the US and Guatemala with USDP by Paxos, as cryptocurrency and under the crypto custody of Coinbase.

Probably Meta, the Silicon Valley group, sells Diem to save their $85 billion per year advertising business model and digital social media channels that include Facebook, Instagram, and WhatsApp, which have been getting under the shadow of law scrutiny.

What is the Future of Diem?

This big step narrows down to one big question that keeps striking the chord in heads. What would be the future of Diem now? 

It is too soon to claim anything yet, but Silvergate Capital and Diem Association have repeatedly refused to comment on this mutual deal between both parties if we look at the insights. 

This puts the whole Diem project on the radar. However, Silvergate bank has been dealing with major cryptocurrencies in the past, and there are good chances that they will carry on with this Diem project.

Until the next news, we have our fingers crossed to hear more about this project, but one thing is quite certain when Meta sells Diem. As Meta and the whole Diem project have shifted their decisions in the past, investors and users are losing their interest in Diem.

In the comment section, let us know what you think would happen to Diem now or if it was a good step by Meta?

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Can I Mine Diem? | Here is Everything that you Should know

a mining rig on the back with question of diem mining

As the clock is ticking and after the Novi launch in the US and Guatemala, Diem (formerly Libra) is getting into the limelight. With all this attention, many people have been asking one simple question — Can I mine Diem?

I understand the confusion, as Diem is a cryptocurrency, and most of them (such as Bitcoin and Ethereum) can be mined.

But where do we stand when it comes to Diem? Let’s cut to the chase and see whether you can mine Diem or not?

Can I mine Diem?

No, you can not mine Diem because it’s not like any of the regular cryptocurrencies; instead, it is a stablecoin that’s backed by USD. 

But then the question comes — why can’t you mine Diem as the rest of the cryptocurrencies, which can be mined like doodling, right?

Keyfactors of Diem with mining
Key Components of Diem and Mining

Why can’t you mine Diem?

To understand why you can’t mine Diem, you have to understand how mining works! 

Other cryptocurrencies use a distributed ledger called blockchain that verifies all the transactions, and miners are the nodes that help verify the those (and get a reward in return).

In the case of Diem, it is not a regular blockchain. Instead, Diem runs on a permissioned blockchain by the Diem Association. In simple words, this means that only authorized entities such as wallets and exchanges are allowed access through Diem’s blockchain.

This means there is no need for miners to verify the transactions, and it can prevent scams by closely working with local authorities if needed.

Bottom line

Diem is different from the rest of the cryptocurrencies, such as Bitcoin. You can learn about all the major key differences between Diem and Bitcoin. But Diem doesn’t require miners, and there is no way anyone can mine it. 

So, it is better to wait and keep it as an option for transactions and investments.

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What is Paxos Dollar or USDP? Important for Novi

Paxos Dollar written on the a white background with logo

Cryptocurrency marked the rise of decentralized assets. But in the cryptocurrency world, as Novi launched in the US and Guatemala, you will ask What is Paxos dollar or USDP? As you can only use Novi with Paxos dollar for now.

Apart from Novi, you can also invest in USDP. A collateralized stablecoin, created by Charles Cascarilla and Rich Teo for stabilizing the U.S dollar with the help of blockchain technology.

Furthermore, Pax Dollar creates a frictionless network worldwide to enhance the bigger financial ecosystem. Its main goal is to build a future in which you can transfer your digital assets, commodities, and securities anywhere at any time, along with high levels of accessibility and flexibility.

Table of Contents

  • What are Stablecoins?
  • What is Paxos dollar?
  • History of Paxos dollar:
  • Benefits of USDP crypto over other cryptocurrencies
  • Drawbacks of Pax dollar
  • Is the PAX dollar network secured?
  • Where is the PAX dollar available?
  • Conclusion
Paxos dollar with the logo in between.

What are Stablecoins?

Since crypto could not approach their consumer’s concerns, it demanded a mechanism to maintain a moral norm of crypto value that should be fixed.

So experts introduced stablecoins to fix the price of cryptocurrencies and minimize their volatility. As a result, the prices of cryptocurrencies were set to other financial resources like gold and the U.S. dollar.

What is Paxos Dollar?

Paxos dollar is the world’s leading regulated stablecoin, as per Paxos Trust. It is a flat-collateralized blockchain cryptocurrency that was suggested to provide border-free transactions with extremely little volatility rates.

Moreover, Paxos dollar or USDP crypto is an ERC-20 token set up on the Ethereum blockchain technology. According to Ethereum, Paxos is the world’s best programmable cryptocurrency that aids you in sending it to anyone by demanding a modest commission.

History of Paxos Dollar

The history of Paxos Dollar began in September 2018 when the New York-based company Paxos Trust, specializing in blockchain technology, introduced a new stablecoin called the Pax Dollar. It was brought in to meet a reliable substitute for blockchain assets.

Moreover, Paxos was founded in 2012 as the itBit, a Bitcoin exchange. Later on, the company renamed itself Paxos Trust in 2015. During the same period, New York’s Financial Services Department gave it a trusted charter for offering its services and products in the digital asset world.

USDP with a big logo on left side.

Benefits of USDP Crypto over other Cryptocurrencies

As Paxos dollar was constructed on an ERC-20 token, it can be deposited in an ERC-20 wallet, and but they are also part of the pilot program for Novi wallet partnering with Coinbase. 

Additionally, there are multiple advantages of the Paxos dollar over other cryptocurrencies. Out of those, here are the few major ones:

  • Paxos stablecoin can only remain in circulation as long as US dollars are held in reserve.
  • The Ethereum technology stores data in inter-chained blocks; it eliminates the chances of any intervention by the third parties and delivers a much more environmentally safe atmosphere.
  • With decentralized computing and a 24 hours support program, PAX dollar gained better recognition.
  • The New York State department monitors this stablecoin indicating a powerful trust boost to the PAX dollar stablecoin over other crypto coins. 
  • Paxos deals its transactions for 1:1 USD dollars. It means that 1 Paxos equals approximately 1 dollar, conferring to the Paxos company.
  • The Paxos dollar also guarantees 100% cash reserves.
  • PAX is a global digital resource, which means it can carry out local and international transactions.

Drawbacks of Paxos dollar

Alongside the great benefits, Pax dollars also comes with some drawbacks worth considering. 

  • Pax dollar is not available on all exchanges.
  • It is downplayed by the competitor’s stablecoins.
  • Pax dollar may not favor in value.

Is the PAX dollar network secured?

Yes, the USDP crypto is a much safer trading option. Once redeemed from your PAX account, the coins are automatically wiped out.

Also, using the PAX dollar allows for much better and secure transactions. If the PAX smells any security threat, it pauses the transactions and saves your currency.

In addition to that, Paxos is the first crypto company ever to secure the SOC 2 Type 2 certification. Thus, supporting its enterprising customers effectively. 

Grey Paxos logo and PAX USDP.

Where is the PAX dollar available?

USDP crypto can be bought at the following exchanges:

  1. Bittrex
  2. Binance1-inch exchange
  3. Bit thumb global
  4. Dignifex
  5. VCC exchange

Conclusion

USDP crypto is currently one of the most popular crypto stablecoins today. It is the medium to produce low volatility exchanges without worrying about the market variations.

The original strength of the PAX dollar over other cryptocurrencies lies in its full backing of USD. This sole benefit is sufficient to wrestle with other popular cryptocurrencies.

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Is Safemoon Crypto still worth it? Should I Buy Safemoon?

safemoon crypto logo written with white letters and a green logo on a dark background

Cryptocurrencies are not an alien concept anymore. Several crypto investors are always looking to put something in the bucket of the digital currency world.

However, volatility has always been linked with the crypto world, but now things are changing around — a piece of great news for all the crypto enthusiasts out there. A new cryptocurrency that gets into the eyes that might turn the tables another way around is called Safemoon.

Today I will help you with all your questions regarding this new cryptocurrency, whether you should buy Safemoon or let it pass as a spoof. Either way, in the end, you will be all aware of Safemoon, and who knows where your next investment would land?

Continue reading “Is Safemoon Crypto still worth it? Should I Buy Safemoon?”
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What Is Blockchain Technology? Full Guide To Blockchain

A white background with blue colored encrypted locked devices in a network.

Blockchain is a decentralized and distributed ledger that keeps all the cryptography information distributed across the network of computers connected to the blockchain technology.

Additionally, there are different blocks on the chain that represents various transaction information. When a new transaction occurs from anywhere in the world, the record is added to the participant’s ledger.

White colored background with purple links and Blockchain written in center.
A network of Blockchain

Blockchain Technology For Beginners

We know it can be a little complex for beginners to understand the whole blockchain, but don’t worry; we will help you out.

In simple terms, you can consider blockchain as a bank, where everyone can send money without any complications of authorities keeping an eye on you and without any extra bank fees.

Meaning with blockchain, you are your own bank, and you have the authority over your money, and you can perform transactions easily, just like you send emails.

However, it is not that simple as some complex things might seem a little tricky at first, but as you get the hang of it, things would be much straightforward.

The process of blockchain from buyer to the seller.
The process of Blockchain

Blockchain works on blockchain technology, which is an unchangeable and unhackable medium to record your transactions.

On average, there are almost 500 different bitcoin transactions along with the cryptographic information on each “block” of a blockchain. 

The information on these blocks contains the links to the blocks and the information of previous blocks and forms of chain that would be used to proceed with the transactions, Thus termed as the blockchain.

Types Of Blockchain Technology

To understand blockchain in a much better way, you should learn the four different types of blockchains.

  • Private Blockchains
  • Public Blockchains
  • Hybrid Blockchains
  • Sidechains

1. Private Blockchains

The blockchains that are restricted and are not accessible by everyone are called private blockchains. People who want to join such blockchains have to take permission from the system administrator.

A single entity holds these blockchains, and they are centralized.

Ripple (XRP) is a common example of private blockchain.

2. Public Blockchains

The blockchains that don’t require any permission and anyone can access them with their will are called public blockchains. 

These are decentralized, and anyone can request validation for their transaction from miners, who earn rewards for verifying the transaction.

Bitcoin, Ethereum, Litecoin blockchains are examples of a public blockchain.

Ethereum and Bitcoin go toe-to-toe. Follow the link to go through a complete guide.

3. Hybrid Blockchains

The mixture of a public blockchain and private blockchain is called Hybrid blockchain or sometimes as a Consortium. 

They provide some extra features that might not come with them individually, such as Dragonchain and web-foundation.

IBM food trust is an example of a hybrid blockchain.

4. Sidechains

A sidechain is a type of blockchain that works along with the main blockchain. It usually helps in the transfer of information from one chain to another between two blockchains to improve efficiency.

Liquid Network is an example of sidechains.

A purple image with white colored network of different devices.
A network of devices

Final Remarks

Blockchain technology is a little tough to understand at first, but it is totally worth it afterward. We hope this post would be helpful for your understanding, and now your questions related to blockchain are answered.

Apart from Ethereum and Bitcoin, there is a new form of cryptocurrency called stablecoins, which are also getting a lot of attention.

In case we missed something. You are welcome to ask in the comment section below.