There are now over 100 million wallet addresses in the world, and the number of crypto and non-fungible token (NFT) enthusiasts keeps growing every day. The crypto community has economic power, interlinking relationships and seamless communication potential, but why doesn’t it have its own social media? A truly native crypto- and NFT-dedicated social media platform with a high density of fans has not yet been born.
For crypto markets to grow in sizeand participants, there needs to be increased trust. For those who aren’t crypto native, the landscape can be bewildering. There are also dangers from scammers and spammers. It’s hard to fully protect users from these bad actors, but one way is to create a venue where they can get accurate information and not get played — a dedicated public opinion forum and social media platform for crypto communities.
Furthermore, the current model of social media is inherently extractive. The platforms take their customers’ data and sell it on, while serving them increasingly intrusive advertising. As the saying goes: Users aren’t paying for social media; they are the product. This must change, and one way is through a fusion of social and finance (SocialFi), which puts the economics back in the hands of users.
SocialFi aims to deliver benefits and rewards to users through the financialization and tokenization of social influence. Monaco Planet is a next-generation SocialFi platform that successfully completed its first round of multi-million-dollar financing with Three Arrows Capital and IMO Ventures. It goes live on Nov. 28.
Monaco Planet attacks the problem of spammers and scammers by requiring login through wallets such as MetaMask. Because users can showcase their NFT collections on their personal profile page, their level of engagement and dedication identifies true influencers. Users who publish and show their own activities can follow verified key opinion leaders (KOL) throughout the community. The platform can also rank users by net worth and influence of their NFTs, fostering organic connections between KOLs and users.
By introducing the concept of write-to-earn, content creation itself serves as a form of mining. Active content creators and discussion participants on Monaco Planet continuously reap the benefits in the form of native tokens. Most native tokens will be distributed to users who generate content, creating a form of mining that is sustainable, inclusive and genuinely productive.
A true SocialFi platform belongs to its users. And as the vast majority of Monaco Planet’s native currency will be distributed to users as rewards for content creation, Monaco Planet functions as a true decentralized autonomous organization, governed by native token holders who can send in proposals and vote. As a SocialFi platform, the ownership and governance of Monaco Planet are determined by the users themselves. Moreover, holders of native tokens will enjoy the currency appreciation brought by the platform’s growing economic activity.
As early users of Monaco Planet’s SocialFi platform, NFT holders will be the initial beneficiaries of content mining. They will enjoy the first batch of airdrops and act as mining leads during the first month of invitation-only membership. NFT holders will have exclusive quotas and whitelists for participating in popular projects and the privilege of increased visibility of posts, broadcasting and building groups.
Monaco Planet’s SocialFi makes it clear: Influence you can trust is now a currency that can be minted.
You can learn more about Monaco Planet at monaconft.io, follow the project on Twitter and join the conversation on Discord.
Some believe that 2021 will be the year of ‘dogs’ for cryptocurrency. Dogecoin (DOGE) and Shiba Inu (SHIB), the canine combo, lead the meme currency pack in terms of price and market value. DOGE has increased almost 8,000 percent since the beginning of the year and is ranked #9 by market value on CoinMarketCap as of November 2021. SHIB, its opponent, has pumped more than 60,000,000% since January.
Things move quickly in the meme coin world, as they do in most internet jokes because nobody cares about anything they read on social media for more than a few minutes. This means that coins must be generated quickly in order to be classified as a meme currency rather than simply another random coin. In this article, we will discuss Meme tokens, their good side, bad side and their future.
What Are Meme Coins?
Meme coins are cryptocurrencies that have garnered a lot of attention in a short period of time, mainly due to influencers and retail investors pushing them online. People are doing a debate on several meme coins like Safemoon vs Shiba Inu or Shib vs Doge etc.
Dogecoin is the first meme coin, having been developed in 2013 as a joke based on a meme. It gained popularity once Elon Musk began tweeting about it, and regular investors began purchasing it in droves.
Developers have launched a spate of joke currencies after Dogecoin since anybody can build a new cryptocurrency. Many of these currencies are Dogecoin spinoffs, such as Shiba Inu, but there are dozens of additional meme coins to choose from.
Dogecoin Overview
Dogecoin is crypto similar to Bitcoin and Ethereum, but it’s not the same as either of these prominent coins. Dogecoin was named after a once-popular meme and was founded, at least in part, as a lighthearted joke for
Meggie Nahatakyan
cryptocurrency aficionados. Despite its strange genesis story, Dogecoin has skyrocketed in popularity in 2021, becoming the sixth-largest cryptocurrency by market valuation as of writing.
Billy Marcus and Jackson Palmer, two software programmers, invented Dogecoin in late 2013. Palmer created the cryptocurrency’s logo by mistyping the term “doge” to represent a Shiba Inu dog, a popular joke at the time.
Shiba Inu Overview
Shiba Inu is an Ethereum-based altcoin (an alternative cryptocurrency to Bitcoin) using the Shiba Inu, a Japanese breed of hunting dog, as its symbol. Shiba Inu is widely regarded as a viable alternative to Dogecoin; in fact, Shiba Inu supporters refer to it as “the Dogecoin killer.”
Shiba Inu and Dogecoin are meme coins, which are cryptocurrencies connected with a theme, in the instance of Shiba Inu and Dogecoin, the Shiba Inu dog, but they’re more often made as a prank or inside joke than as a legitimate digital product. While Dogecoin was established in December 2013, Ryoshi, an unidentified individual or group, invented Shiba Inu in August 2020.
Cryptocurrency vs Meme Coins
Meme coins are a sort of cryptocurrency, however, there is one significant distinction between cryptocurrencies and meme coins, and that difference is mostly the aim.
Bitcoin and Ethereum, two major cryptocurrencies, were created to answer real-world issues. The ultimate objective is for it to be widely accepted by merchants, resulting in the creation of a new kind of decentralized currency that will revolutionize a range of sectors.
Meme coins, on the other hand, currently serve no real-world use, and the majority of them were established for profit. Many investors sell quickly once their prices rise in order to earn a rapid profit. Because meme coins now have no practical utility.
Meme Coins Good Sides
When Dogecoin originally appeared in 2013, it was thought to be a prank. No one imagined this coin could be anything other than a meme, even in their wildest imaginations. Doge is now worth $100,000 if you purchased it for $1,000 last year. Consider those who bought Dogecoin in 2013 because they thought it was a joke (or simply for fun).
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If you put more than $1,000 into it, you’ll get a better return. Doge has proven to be one of the most profitable cryptocurrencies in history, and it is still bringing money to individuals. This is not a coincidence. Nowadays, investors are pouring money into Meme currencies, with Shiba Inu being the most recent example, reaching an all-time high in November 2021.
Meme Coins Bad Ugly Sides
Meme coins may have experienced exponential growth in 2021, but trading and investing in meme coins, like other cryptocurrencies, entails significant financial risk.
Meme coin tokenomics might be worrisome. Bitcoin has a deflationary tendency, a blockchain, a well-written whitepaper, and an established ecosystem. In comparison to Bitcoin, most meme currencies are inflationary and have no limit on supply. The community’s collective humour frequently determines its ecology, use cases, and basics. Only a handful of meme coins have been created using major cryptocurrency technologies. DOGE, for example, got its technology from Litecoin (LTC), whereas SHIB was constructed on the Ethereum network.
As the meme coin market grows, you should be cautious that certain projects may try to take advantage of the enthusiasm to defraud traders. For example, in only one week, Squid Game (SQUID), a meme currency based on the famous Netflix program of the same name, increased by almost 86,000%. The development team, on the other hand, immediately rug-pulled, causing the price to collapse by 99%. Worse, holders have been barred from selling their SQUID tokens.
Meme Coin Future
It might be difficult to predict if a meme coin will be bullish or bearish. Meme currencies often lack a market value and a high circulating quantity, making them very inexpensive and easy to get. Because meme currencies are frequently inexpensive and easy to obtain, there are several other aspects to consider while predicting the future of any meme currency.
The growing popularity of meme tokens and dogecoins is being fueled in part by social media. Elon Musk is one of the market factors that has frequently been indirectly impacting the price fluctuations of DOGE and Floki Inu (FLOKI) via erratic Twitter updates.
Such an attitude might be immensely destructive to cryptocurrencies in the long term. This might reverse the industry’s overall trajectory toward pushing the financial world towards an even more gloomy future.
Nonetheless, new meme tokens and dog coins join the market on a daily basis, and regular investors tend to purchase them with the aim of replicating the profits made by DODGE and SHIB in the past. In fact, the excitement around dogecoins has developed to the point that it is apparently driving demand for genuine dogs.
Are They Worth the Investment?
Even the most experienced investors face ups and downs while investing in meme coins. However, by finding out and implementing the proper knowledge, one may limit the dangers while maximizing profits. There are thousands of meme currencies to choose from, and the vast majority of them are frauds. As a result, in order to compete in this market, you must be at your best.
The reality is that diamonds may be found amid stones; you simply have to know where to look and how to look. These particular meme coins have the potential to create 1000 for early investors.
Before investing in any meme currency, spend some time researching the token’s community to learn about the creators’ priorities. Do they have a long-term plan for community building and long-term growth? Are they more interested in raising the price and pressuring consumers to buy? The former is a positive thing, whilst the latter is a warning sign. Additionally, it would be helpful if you could find out whether the initiative has a whitepaper outlining its true goal and objective.
Final Thoughts
With new meme currencies hitting the market every day and traders seeking to emulate DOGE and SHIB’s earnings, it is crucial to DYOR before investing in any meme currency. Remember that meme coins are quite volatile compared to other digital currencies. Trading or investing in cryptocurrency is fraught with danger. Meme coins are heavily community-driven and may fall abruptly, so never invest money you can’t afford to lose.
Meggie Nahatakyan, Crypto Analyst at the Top Coins.
The crypto space is becoming more and more interoperable, developers in search of great adoption and success will need to embrace this trend. Amongst the ruling blockchains, Polkadot and its unique approach to governance and interoperability are quickly becoming the hub for the projects that could usher the future of the industry.
Unlike Ethereum, Cardano, and other blockchains, Polkadot leverages a distinctive mechanism that lets the community choose the projects that will occupy limited slots on the network. To participate in the auctions, projects need to gather enough funds.
Once the process is completed, winning projects will be deployed via parachains, independent networks that power the protocols. This process has already unleashed a fearful competition with many projects, such as Moonbeam, Bifrost, Astar Network, and Litentry going strong to take the lead.
Most of these projects offer a steady reward to gain community support and win the auction. Astar has introduced a 3-bonus level for its supporters with 5% of its native token ASTR locked as part of their Crowdloan.
On the other hand, Moonbeam offers uses a portion of a 30% Crowdloan pool, but investors must wait until the project deploys its compatibility with the Ethereum Virtual Machine (EVM). Also, 70% of the rewards will be distributed in the 96 weeks leasing period for the slot.
Of the aforementioned projects, the Crowdloan launch by decentralized identity aggregation protocol Litentry offers a dynamic and versatile program with adaptive rewards, bonuses, and other opportunities for its supporters.
On top of that, participants will be able to stake their DOTs without extra requirements or complications. The Litentry Network will connect its parachain to the Polkadot relay chain. In doing so, it will provide users with more security and interoperability.
Already running on Ethereum and Binance Smart Chain with its own native token called LIT, giving it an advantage over similar projects trying to get a slot on Polkadot, the recently launch Crowdloan strategies are a major step for the network.
The project has been listed on the leading crypto exchange Binance for a long time and has a strong liquidity base. Thus, investors have an additional layer of security and can rely on the legitimacy of the project.
The project has allocated 20% of LIT’s total supply or 20,000,000 to incentivize users and reward its supporters to obtain a superior position and a higher chance to obtain a slot in the Polkadot auction. The program will be live from the first slot to the fifth auction and will remain active until Litentry secures a place on the network.
Litentry Offers The Best Rewards On The Polkadot Ecosystem
By allocating 20% of the LIT token total supply in the Crowdloan Program, Litentry offers DOT holders one of the best low-risk/high reward strategies to diversify their portfolio. In that way, investors will have an additional opportunity to profit other than staking their DOT.
In order to participate in the Crowdloan Program, investors need to lock 5 DOTs for the auction. This initial investment will be rewarded with a minimum of 2.5 LIT.
Later, final rewards will be estimated based on the contribution percentage of every user to the Crowdloan pool. In other words, one user’s DOT contribution will be divided by the total DOT contributions in the pool.
These rewards will be distributed when the Litentry parachain running on the Polkadot relay chain goes live. Each investor will receive their LIT rewards linearly in each block for the duration of the Slot leasing period: 96 weeks.
Even if the project fails to secure a slot, investors will still be compensated in the new Crowdloan campaign with additional LIT tokens until the program’s target is met. Compensations will reach an estimated 13% APY for a Crowdloan period of 5 weeks.
For early supporters, there will be a bonus of up to 10% if they support the campaign before November 18 or 5% if they participate by November 25. Also, users can earn extra rewards if they complete an identity-based task and support Litentry Network’s main use case. Users can also earn extra incentives through several of Litentry’s partners, including the SubDAO airdrop, a Binance warmup promotion, and an all-new partnership with Polkadot Name System that earns users who contribute more than 10 DOT with a free .dot domain name.
Although beneficial, Polkadot’s staking rewards have a much lower upside than betting on the growth of its ecosystem. A project such as Litentry network, with a high interoperable capacity and a use poised to see an increase in demand, as more people require an alternative to centralize data and identity systems.
Therefore, the Crowdloan Reward Program is a great chance for early investors to fully capture Litentry’s potential to become a top project on one of the most promising ecosystems in the space. At the same time, these investors will maintain their capacity to move between blockchains.
Bitcoin (BTC) is witnessing a tough tussle near the $58,000 mark but that has not stopped select altcoins from hitting a new all-time high. This shows that traders are watching the fundamental developments on individual coins.
One of the recent top performing major altcoins has been Avalanche (AVAX), which has soared more than 120% in November. The coin caught traders’ attention leading up to the announcement by accounting firm Deloitte which plans to build its disaster relief platforms on the Avalanche blockchain.
Crypto market data daily view. Source:Coin360
In another step that shows growing crypto adoption, El Salvador’s President Nayib Bukele announced the launch of Bitcoin city, which will be powered by geothermal energy and initially funded by $1 billion worth of Bitcoin bonds.
Could strong buying at lower levels boost Bitcoin above $60,000 and will altcoins participate in the recovery? Let’s study the charts of the top-5 cryptocurrencies that could attract traders’ attention in the short term.
BTC/USDT
Bitcoin reversed direction from $55,600 on Nov. 19 but the recovery is facing resistance at the 50-day simple moving average ($60,187). The moving averages are on the verge of a bearish crossover and the relative strength index (RSI) is in the negative area, indicating that bears are making a strong comeback.
BTC/USDT daily chart. Source: TradingView
If the price turns down from the current level, the bears will attempt to extend the correction by pulling the BTC/USDT pair below $55,600. If that happens, the next stop could be the strong support zone at $52,500 to $50,000.
If the price rebounds off this zone, the bulls will try to push the pair above the moving averages and the downtrend line. Such a move will indicate that the corrective phase may be over. The bulls will then try to drive the price above the all-time high at $69,000.
Alternatively, a break below the psychological support at $50,000 could intensify selling as traders rush to the exit. The pair could then drop to $45,000 and later to $40,000.
BTC/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that bears pulled the price below the strong support at $58,000 but they could not build upon this advantage. The bulls bought the dip and have pushed the price back above the 20-exponential moving average.
If the price sustains above $58,000, the pair could rally to the downtrend line. A break and close above this resistance could indicate that bulls have the upper hand. The pair could then rally to $62,000 and later to $67,000.
Conversely, if the price turns down from the current level and breaks below $55,600, it will signal the possible start of a deeper correction.
AVAX/USDT
Avalanche is in a strong uptrend and has consistently been making new highs for the past few days. The bulls pushed the price above the 200% Fibonacci extension level at $146.18 today but the long wick on the day’s candlestick shows profit-booking at higher levels.
AVAX/USDT daily chart. Source: TradingView
The rising 20-day EMA (96) indicates that bulls are in command but the RSI near 80 suggests that the rally may be overheated in the near term. This could result in a minor correction or consolidation in the next few days.
If the price turns down from the current level, $110 and then the 20-day EMA may act as a strong support. A sharp rebound off either level will suggest that the bulls are viewing the dips as a buying opportunity. The pair could then march toward the 261.8% Fibonacci extension level at $175.58.
Contrary to this assumption, if the price breaks below the 20-day EMA, it will suggest that traders are rushing to the exit. That may pull the AVAX/USDT pair to $81.
AVAX/USDT 4-hour chart. Source: TradingView
The pair has turned down from $147, indicating aggressive profit-booking at higher levels. The bears will now attempt to pull the price to the 20-EMA, which is likely to act as a strong support.
If the price rebounds off the 20-EMA, it will indicate strong buying on dips. The bulls will then try to resume the uptrend by pushing the pair above $147.
Contrary to this assumption, if the price breaks below the 20-EMA, the selling could accelerate and the pair may drop to $110. Such a move will suggest that the bulls may be losing their grip. The pair could thereafter drop to the 50-SMA.
MATIC/USDT
Polygon (MATIC) has been trading inside an ascending channel pattern for the past few days. The bulls pushed the price above the resistance line of the channel on Oct. 28 and 29 but failed to sustain the breakout. This may have prompted selling from short-term traders.
MATIC/USDT daily chart. Source: TradingView
The bears again successfully defended the resistance line on Nov. 3. This started the downward journey toward the trendline of the channel. The downsloping 20-day EMA ($1.69) and the RSI just below the midpoint indicate a minor advantage to sellers.
If the price turns down from the current level, the MATIC/USDT pair could drop to the trendline. The bulls are expected to defend this level aggressively. If the price rebounds off the trendline and rises above the 20-day EMA, it will indicate that the selling pressure may be reducing. That may signal the start of the northward journey toward the resistance line.
Contrary to this assumption, if bears sink the price below the trendline, it could result in a decline to the psychological support at $1.
MATIC/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that bulls are attempting to stage a relief rally from the strong support zone at $1.50 to $1.40. The 20-EMA has started to turn up and the RSI is near the center, indicating that the selling pressure may be reducing.
If bulls drive the price above $1.70, the pair could rise to $1.80. A break and close above this level will indicate strength. The pair could then start its up-move toward $2.15. On the downside, the selling may accelerate if the bears pull the price below $1.40.
Related: Seeing red? FUD that! Here’s what you should have bought instead of Bitcoin last week
EGLD/USDT
The bears tried to pull Elrond (EGLD) below the breakout level at $303.03 from Nov. 16 to 18 but the bulls bought the dips as seen from the long tail on the candlesticks. Strong buying on Nov. 19 pushed the price above the overhead resistance at $338.70.
EGLD/USDT daily chart. Source: TradingView
This resumed the uptrend and the EGLD/USDT pair has reached near its pattern target at $427. The sharp rally has pushed the RSI deep into the overbought zone, suggesting that a minor consolidation or correction could be around the corner.
The first support on the downside is the breakout level at $338.70 and then the 20-day EMA ($325). If the price rebounds off either level, it will suggest that traders continue to buy on dips. The bulls will then try to resume the uptrend with the next target objective at $500.
This positive view will be invalidated if the price turns down and plummets below the breakout level at $303.
EGLDT/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that bears tried to stall the up-move at $400 but the bulls were in no mood to relent. Sustained buying at higher levels pushed the pair above the psychological barrier. The rising 20-EMA and the RSI in the overbought zone indicate that bulls are firmly in the driver’s seat.
The first important level to watch on the downside is $380. If bears pull the price below this support, the pair may drop to the 20-EMA. A strong rebound off this support could keep the uptrend intact but a break below it will suggest that the bullish momentum may be weakening.
MANA/USDT
Decentraland (MANA) turned down from the 78.6% Fibonacci retracement level at $4.35 on Nov. 20. This indicates that traders may be selling on rallies.
MANA/USDT daily chart. Source: TradingView
The MANA/USDT pair could now drop to the immediate support at $3.50 and if this level gives way, the correction could deepen to the 20-day EMA ($3.11). If the price rebounds off either support, it will suggest that sentiment remains positive and traders are buying on dips.
The bulls will then attempt to push the price to $4.36. A break and close above this resistance could open the doors for a rally to $4.94. This positive view will invalidate if the price continues lower and breaks below the 20-day EMA.
MANA/USDT 4-hour chart. Source: TradingView
The pair has been rising inside an ascending channel pattern. The failure of the bulls to push the price above the resistance line may have prompted selling from traders, pulling the price below the 20-EMA.
Both moving averages have flattened out and the RSI has dipped near the midpoint, suggesting that the bullish momentum may be weakening. The pair could now drop to the trendline of the channel where buying may emerge.
If the price rebounds off the trendline, the pair could continue its up-move inside the channel. The buyers will then try to push the price to the resistance line. The bullish momentum could pick up on a break and close above the channel.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Decentralized finance (DeFi) platforms have been the target of criminal attacks this year. Investors in the blockchain-based form of financehave lost billions of dollars to criminals that target the platforms.
The total amount of money deposited at DeFi services has spiked from just $500 million in 2019 to $247 billion this year.
Related Reading | Dog-Themed DeFi Project Mysteriously Loses Fundraised $60 Million
According to a report from London-based firm Elliptic, the overall losses caused by DeFi exploits have totaled $12 billion in the past year. Out of that amount, fraud and theft accounted for $10.5 billion, seven times the amount last year.
DeFi, which has drawn in billions of dollars in investor funds, has also been a frequent target by hackers. They exploit poorly protected protocols, mostly using flash loans.
Related Reading | Poly Network Confirms Hacker Has Returned Most Of The Stolen Crypto
One of the popular attacks this year was the Poly Network hack. Hackers exploited a vulnerability in the multi-chain interoperability protocol. And they took off with roughly $600 million worth of various cryptocurrencies. They however returned most of the stolen funds.
DeFi – The Wild West Of Cryptocurrencies
Elliptic is a firm that tracks movements of funds on the digital ledgers that underpin cryptocurrencies. It recently reported that DeFi exploits amounted to $12 billion this year.
DeFi is often called the “Wild West” of cryptocurrencies because it is still the most unregulated area of crypto. DeFi platforms allow users to lend, borrow and save – usually in cryptocurrencies – without any involvement from middlemen like banks.
“The DeFi ecosystem is an incredibly exciting and fast-moving space, with financial services innovation happening at light speed,” said Tom Robinson, chief scientist at Elliptic. “This is attracting large amounts of capital to projects that are not always robust or well-tested. Criminal actors have seen the opportunity to exploit this.”
According to the report, the underlying technology of DeFi is built on open infrastructure. However, that technology is “relatively immature and untested.” There are bugs in code as well as design flaws that enable criminals to target the platforms.
DeFi market cap at $165.47B | Source: Crypto Total DeFi Market Cap on TradingView.com
“Decentralized apps are designed to be trustless in that they eliminate any third-party control of users’ funds,” said Robinson. “But you must still trust that the creators of the protocol have not made a coding or design mistake that could lead to a loss of funds.”
Criminals can also easily launder proceeds of crime while leaving few traces. “The irreversible nature of crypto transactions make it very challenging to recover these funds,” says the report.
Call For Regulation
With the alarming number of exploits the space is facing, there are calls for DeFi regulation. Regulators are now also turning attention to the sector. However, the actions of regulators in the coming months will play a significant role in determining how well they thrive in the future.
Featured image by Aergo, Chart from TradingView.com
At present, your DeFi product needs to be multichain to be competitive — this is the hard (and exciting) truth of 2021. Whether you’re building a wallet, a lending service or a DeFi game, your target audience knows that there is more to the crypto space than Ethereum. And they expect you to provide the best of all worlds.
It seems there will always be a debate about which blockchain makes for the best foundation for projects. Enhanced security, low transaction costs and formidable speed — there will always be a chain that offers bigger advantages. As the speculators argue over the next potential “Ethereum killer,” a new multichain reality is forming that has a less stark competitive implication. Instead of a dog-eat-dog framework, the future of blockchain and DeFi will favor those products that mesh into a cooperative multichain user solution and eventually forget those that stay isolated.
This trend is fueled, in part, by the Polkadot and Kusama ecosystem that was built with a multichain philosophy at its core. Parachains connected to the relay chain easily communicate with one another, raising the bar even higher for the entire space. With the second set of parachain slot auctions just around the corner, they continue to set the standard for the multichain industry.
Projects that make it easier for the average user to connect more systems — such as the Moonbeam protocol and the Phantom wallet — are raising millions of dollars to simplify this new multichain reality for users. But how do you navigate this as a developer?
We can see clearly that the market is shaped by user demands. Depending on their needs, your users are turning to blockchains that better serve them — and to the platforms that offer access to them. As a result, projects that support multiple chains gain larger audiences and more liquidity. This means that at a minimum, your DeFi product needs to support Ethereum and a “niche” blockchain — there are established leaders for trading, staking, nonfungible tokens (NFTs) and more. And the more chains with which you can interact, the better.
When you’re a developer who is pursuing these multichain goals, there are several barriers that you might face.
Related: How much intrigue is behind Kusama’s parachain auctions?
Barriers to building multichain
High costs: Let’s say you want to build a cross-chain bridge; you need to run a large number of nodes for all the chains you want to bridge together. It’s expensive and very intensive in terms of maintenance. It can become costly for a developer to spin up and run a node of a single blockchain. Now imagine you need to connect two, three or ten.
It becomes extremely difficult in terms of hardware, maintenance and access to capital. You need a lot more resources and investment to get started unless you can find other cost-effective solutions.
Security challenges: In the light of recent hacks of bridges, security remains one of the biggest challenges associated with multichain — when you are swapping assets, there are more opportunities for hackers. If we take a look at the recent PolyNetwork incident, we can see that bridges can become extremely vulnerable.
Hackers discovered the network’s weaknesses in Poly’s inter-chain messaging and exploited them to come away with an estimated $600 million in user funds. This is an important lesson for new multichain DeFi solutions to understand the consequences of security failures.
Layers of complexity: Of course, connecting and integrating blockchains will add layers of complexity and needed workarounds to connect disparate chains. Every chain provides a new set of idiosyncrasies, mechanisms and nuances that builders will need to familiarize themselves with. This will likely mean that DeFi organizations will need access to a wider talent pool to access more skillsets. Blockchains are constantly evolving, and you will need to as well.
The solution
Despite the barriers and added difficulty that building multichain represents, it is critical to the future success of DeFi products. There can be no isolated products on Web 3.0 as they do not exist in a vacuum but a decentralized economy of the new generation. Projects need a robust and connected infrastructure to promote themselves effectively in this economy and get new audiences excited. But how do we get there?
We need to provide developers with easy and affordable access to nodes, APIs and support for an ever-growing number of blockchains. With more ways to build, DeFi developers can break down the barriers to entry and begin contributing to the next generations of blockchain and finance. The faster we break these barriers, the smoother our next steps to better user experience and mass adoption will be.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Chandler Song is the co-founder and CEO of Ankr Network, a Web 3.0 infrastructure company based in San Francisco, and a Forbes “30 Under 30” laureate. He previously worked as an engineer at Amazon Web Services.
Will Papper, SyndicateDAO co-founder and ConstitutionDAO contributor, tells the story of how a group of internet friends came together as a DAO to crowdfund a $41 million bid at a Sotheby’s auction for a physical copy of the US Constitution. Show highlights:
how Will and other ConstitutionDAO members feel after losing the auction
the significance of ConstitutionDAO despite its loss
whether Will knows who the other bidder was
why museums began reaching out to ConstitutionDAO and seem to be excited about DAOs moving forward
why there was so much confusion over who was the bidder for the DAO and whether it had won
why ConstitutionDAO did not bid more than $41 million — even though the crowdfund was at nearly $50 million
why ConstitutionDAO did not have a crypto-whale help keep the bidding war going
how ConstitutionDAO plans to refund participants
what Will thinks about using a layer 2 solution to refund ETH for ConstitutionDAO donations
how the idea for ConstitutionDAO came about
what role Will had in the formation of ConstitutionDAO
Melbourne, Australia, November 19, 2021— Ethereum’s biggest DeFi chain Polygon and ethical DeFi platform MRHB DeFi are leading the charge on the next big thing in DeFi — decentralized philanthropy — or DePhi for short which is estimated at over USD 300 billion each year in Muslim countries alone with around USD 1.5 trillion in assets held by around 160,000 foundations globally.
“Polygon has become one of the leading full-stack scaling solutions for Ethereum, given its speed and scalability,” says Deniz Dalkilic, MRHB DeFi CTO. “As Marhaba strives to achieve its end goal of building a comprehensive, secure and scalable ecosystem where liquidity is a priority, we are thrilled to announce our integration with Polygon. To expand our presence on Polygon we have received a grant from Polygon to optimise our solutions for their network.”
The Polygon team has been enthusiastic in its support of the ethics-based startup, recognizing that MRHB DeFi is the first Islamic finance d’App. Polygon has agreed to support MRHB DeFi’s plan to develop a sidechain solution that opens up DeFi to millions globally. The two parties have recently signed an agreement which puts into writing their aim to bring philanthropy to the crypto space, stating that:
MRHB DeFi intends to build its DePhi (Decentralised philanthropy) protocol on Polygon technology, which would be a dedicated philanthropy protocol based on funding social initiatives for the benefit of the community, using the quadratic funding model.
With this solution, MRHB intends to catalyse the crypto philanthropy ecosystem, with focus on being the first mover in channelling the annual Zakat contributions of the Islamic World (est. USD 300 billion annually)
Quadratic funding is a technique that applies mathematics to ensure the optimal funding — more democratic, more scalable — of community and social, charitable initiatives.
Bringing Philanthropy — a Key Pillar of the Islamic Faith — to DeFi
DePhi forms a key part of MRHB DeFi’s strategic plans for its protocol. As part of MRHB’s approach to supporting a more ethical and community focused approach to decentralized finance, DePhi seeks to bring a key pillar of the Islamic faith — charity or zakat — to what is still a sector driven by self-interest. Once the DePhi protocol is implemented, MRHB DeFi users will have the option to send a portion of their crypto asset wealth to charities which would be linked to the platform, thus fulfilling their voluntary or faith-driven obligations.
End users who wish to donate will be able to deposit funds and generate rewards via trading fees on liquidity pools created by MRHB DeFi. After depositing the donation, assets would be locked for 60 days before being distributed to one of pre-approved charities nominated by the donor.
In addition, MRHB DeFi will set aside five percent of its DAO treasury to be invested in these pools as a form of crypto endowment, as such, this will generate wealth in perpetuity for charitable causes.
CTO Dalkilic adds: “Decentralized philanthropy represents a significant step forward in sharing the benefits of DeFi globally and allowing for community- and public good- focused initiatives to be supported from the cryptoverse. Polygon is one of the most respected projects in the crypto space, and we’re excited to align our vision of using DeFi for good causes, with theirs.
“Being the first d’App on Islamic finance, we have received strong support from the Polygon team to bring the project to the community. Polygon is the latest in a long line of partnerships we are fostering and developing as we work to grow our vision of an ethics-first platform and project. ”
MRHB DeFi recently partnered with Ethereum scaling and privacy engine zkSync, a leading ZK-Rollup solution for Ethereum. It has also received strategic investments and backing from Blockchain Australia, Mozaic, Contango Digital Assets, NewTribe Capital, Sheesha Finance, Acreditus Partners, EMGS Group, MKD Capital and Sinofy Group.
About MRHB DeFi
MRHB DeFi is a halal, decentralised finance platform built to embody the true spirit of an “Ethical and Inclusive DeFi” by following faith-based financial and business principles, where all excluded communities can benefit from the full empowerment potential of DeFi.
The diverse team is comprised of researchers, technocrats, influencers, Islamic fintech experts & business entrepreneurs, who came together to ensure that MRHB DeFi prevails in a manner that will impact society as a whole, essentially bridging the gap between the faith-conscious communities and the blockchain world.
Polygon is the leading platform for Ethereum scaling and infrastructure development. Its growing suite of products offers developers easy access to all major scaling and infrastructure solutions: L2 solutions (ZK Rollups and Optimistic Rollups), sidechains, hybrid solutions, stand-alone and enterprise chains, data availability solutions, and more. Polygon’s scaling solutions have seen widespread adoption with 3000+ applications hosted, ~600M total transactions processed, ~60M unique user addresses, and $5B+ in assets secured.
If you’re an Ethereum Developer, you’re already a Polygon developer! Leverage Polygon’s fast and secure txns for your Dapp, get started here.
Bitrefill, the startup that offers Bitcoin-funded prepaid cards for different services worldwide, launched a new bill-payment service that allows Salvadorans to pay for multiple basic needs using Bitcoin. The company made the announcement during the three-day conference Adopting Bitcoin carried in El Salvador, which brought together “the Bitcoin and Lightning community”.
Bitcoin has been a legal tender in El Salvador since September 7th, but many businesses were not sticking to the requirement of accomodating the digital coin as a payment method into their operations, Bitrefill’s CEO noted. Some have even stated they rather lose sales. Bitrefill aims to offer a solution for businesses so they can easily adapt to using Bitcoin and ease their current worries.
Related Reading | There Are More People Using Bitcoin Wallets Than Bank Accounts, Says El Salvador President
Bitrefill’s bill-payment method will allow Salvadorians to pay for 150 different services using Bitcoin, including internet, water, insurance, loans, taxes, mortgage, social security services, university expenses, and others. They also allowed payments overseas. 12 services are available at the moment on the website, and they will be adding the rest over the next few weeks.
The platform will be using Bitcoins Lightning Network and on-chain transactions, which allows low fees. “El Salvador can now live entire on Bitcoin”, stated the company.
The feature is offered in alliance with Puntoexpress, a local payment platform. The payment process was simplified for the users so they only need to provide an email address to redeem a voucher code and receipt.
El Salvador, A Bitcoin Land
Bitrefill reported they have processed 187,000 purchases in El Salvador during 2021, and 88% come from the country’s capital, San Salvador. There was a peak of 20,000 payments in September when the ‘Bitcoin law’ went into effect.
The majority of Salvadorians reportedly use the Chivo digital wallet, an app created by the government, as the preferred payment method for Bitrefill purchases.
Bitrefill’s CEO, Sergej Kotliar, stated that they now have headquarters established in El Salvador, a manager in the country, and they are hiring for all roles to cover the company’s needs. He shared his strategy is to be directly involved in the country by being present and maintaining contact with people who provide him with different approaches and information that the company can use to design other services.
The CEO thinks El Salvador could become an example model that other countries could follow. The company also stated in a tweet:
The most important part is that the 80% of unbanked people can now pay for almost everything online, products, services, bills, from the comfort of their home (or their relatives in the USA).
El Salvador’s adoption of Bitcoin has been a bumpy road. However, the Chivo Wallet surpasses 2.2 million users a few weeks after its launch, gaining around 8,500 new users per hour and reaching 3 million later on. The citizens received $30 each as an incentive for downloading the app, but some reported to Reuters they had problems using it and making withdrawals.
The government remains optimistic, although challenges lay ahead. We are yet to see if innovation and good strategies can help close the gap between the government’s vision and the tension around Salvadorians.
Related Reading |El Salvador Calls Another Bitcoin Dip With $25 Million Purchase
Bitcoin trading at $60,714 in the daily chart | Source: BTCUSD on TradingView.com
Starting today, Voyager Token (VGX) is available on Coinbase.com and in the Coinbase Android and iOS apps. Coinbase customers can now trade, send, receive, or store VGX in most Coinbase-supported regions, with certain exceptions indicated in each asset page here. Trading for these assets is also supported on Coinbase Pro.
Voyager Token (VGX) is an Ethereum token that’s used to reward and incentivize use of the Voyager centralized exchange. On Voyager, VGX holders can earn staking rewards, receive cashback on trades, and more.
One of the most common requests we hear from customers is to be able to buy and sell more cryptocurrencies on Coinbase. We announced a process for listing assets, designed in part to accelerate the addition of more cryptocurrencies. We are also investing in new tools to help people understand and explore cryptocurrencies. We launched informational asset pages (see VGX), as well as a new section of the Coinbase website to answer common questions about crypto.
Customers can sign up for a Coinbase account here to buy, sell, convert, send, receive, or store e Coinbase Android and iOS apps. Coinbase customers can now trade, send, receive, or store VGX today.
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Voyager Token (VGX) is launching on Coinbase was originally published in The Coinbase Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.
