Cosmos & Cardano: A New Era of Interoperability

Cosmos & Cardano: A New Era of Interoperability

SifChain Finance: Cosmos & Cardano: A New Era of Interoperability

Sifchain is applying for a grant to connect Cardano to the Cosmos ecosystem through our Peggy 2.0 bridge. Peggy 2.0 will be our latest advancement in cross-chain bridge technology and would serve as the seminal bridge deployment between Cosmos and Cardano (via its EVM-compatible layer).

The Cosmos-Cardano bridge powered by Peggy 2.0 and Sifchain will deliver never-before-seen network effects that will scale the reach and adoption of both families of blockchains.

Connecting Cosmos & Cardano

Cosmos and Cardano share common goals around research-backed development, community-driven applications, and global accessibility of blockchain-based solutions, with interoperability at heart.

The Peggy 2.0 bridge will unlock new cross-chain opportunities between these two ecosystems and offer new solutions to existing problems such as access to decentralised governance protocols for growth, new liquidity markets, token-based economies, and much more. In addition, the productive interaction between the vibrant communities of each side, Cosmonauts and the Cardano Community, holds the potential to set new and innovative socioeconomic relations and even cross-chain standards for better interoperability.

Interoperability & Mutual Expansion

One of the core tenets of Cosmos is interoperability and as such, it is popularly dubbed the ‘internet of blockchains’ in the cryptocurrency community. To that end, Cosmos-native chains have the inherent functionality to utilize the Inter-Blockchain Communication (IBC) system that allows for seamless asset transfers and data messaging between IBC enabled chains.

A bridge that connects Cardano’s EVM-compatible layers to Cosmos effectively connects said EVM environment to an enormous ecosystem of chains, dApps, assets, and utilities.

A clear commonality between the Cardano and Cosmos worlds is their commitment to eco-friendly and efficient methods to secure their networks through the use Proof-of-Stake technology. With that said, the Cosmos ecosystem would benefit from a connection to Cardano in many ways.

The Cardano community is well-known as one of the most active, vibrant, and committed communities in the cryptocurrency space. Their on-chain organizational and governance structures are well-established and continuously evolving with a focus on providing decentralised tools, solutions, and opportunities that are accessible to millions of people across the globe.

With a Cosmos <> Cardano bridge, more projects from Cosmos could propose ideas and qualify for funding assistance via this governance on Cardano. This helps solve major problems for many Cosmos projects, namely the cost of development and the lack of similar governance and open-access funding structures in the Cosmos ecosystem.

To know more: https://medium.com/sifchain-finance/cosmos-cardano-a-new-era-of-interoperability-568def097539

by: Wilmina Dela Pena

 

Earning with Kava Lend

Earning with Kava Lend

Earning with Kava Lend

Learn more about Kava Lend and some basic strategies for maximizing earnings.

About Kava

Kava (kava.io) is a secure, lightning-fast Layer-1 blockchain that combines the developer power of Ethereum with the speed and interoperability of Cosmos in a single, scalable network.

Kava Lend is a decentralized money market that allows you to lend assets that could be borrowed by other users or vice-versus.

Users who supply an asset as collateral will earn interest as borrowers pay interest back to the suppliers. Suppliers also receive $KAVA and $HARD rewards.

Lending Assets to Earn Interest and Rewards

Certain assets like USDX and ATOM also receive KAVA rewards. Suppliers also receive a portion of interest collected from borrowers.

Simply supplying assets to Lend is one of the easiest and safest ways to earn with crypto, as you’re not at risk of impermanent loss, and there’s no need to provide an asset pair, compared to DEXs like Pancake Swap, Osmosis, and Kava Swap.

Borrowing Assets and Managing Your Position

To borrow on Kava Lend, users must first supply assets as collateral.

All collateral assets have a loan-to-value ratio of 50% except for USDX, which has a loan-to-value ratio of 25%.

Collateral on Lend is managed as a single lump sum position, so supplying multiple collateral assets can help stabilize your leverage should you choose to borrow against your supplied collateral. With a diverse set of collateral assets, the other assets can help maintain your overall collateral value if one asset price falls.

Borrow Limit Ratio and Liquidation Mechanics

Based on your collateral, the borrow limit ratio will display the maximum amount you can borrow and compare that to the amount you are currently borrowing.

Both sides of this ratio can change based on the price of your collateral and the price of your assets borrowed.

When borrowing assets on Lend, it’s recommended to over-collateralize your loan, meaning you maintain a borrow limit ratio of 50% or less.

When liquidated, a portion of your supplied assets is sold off at auction to reclaim the difference in the value of borrowed vs. collateral assets plus a 7.5% liquidation penalty.

To learn more about liquidation on Kava Mint and Lend, click here.

Basic Earning Strategies with Lend

Simply Supplying

The risk level when supplying to Kava Lend is very low. Users are not subject to any impermanent loss and maintain 100% ownership of their assets.

By supplying, users earn more of the asset they supply based on interest fees paid by borrowers and earn HARD token rewards.

Leveraging assets

The risk Level for leveraging assets in Kava Lend is moderate depending on the amount borrowed compared to the collateral supplied.

A solid strategy for Kava Lend is to supply multiple blue-chip assets such as ATOM, BTCB, and BNB, then borrow Kava’s stablecoin, USDX.

Shorting an Asset

The risk level with shorting assets on Kava Lend is high since you’re leveraging your assets to try and time the market.

The risk is that if the price of the asset goes up instead of down, it’ll cost more to swap back for your borrowed asset and as the price of that borrowed asset raises, it can push the borrowed amount side of the borrow limit ratio. Using a declining asset as collateral while borrowing a raising asset creates the greatest liquidation risk.

There are Many Ways to Earn with Kava Lend.

This article reviewed Kava Lend, how to borrow assets and manage your position, and the Borrow Limit Ratio and Liquidation Mechanics. You then learned about a few basic strategies to earn with Lend.

Disclaimer: This content is provided for informational purposes only and should not be relied upon as legal, business, investment, or tax advice. You should consult your advisers as to those matters.

Reference: https://medium.com/kava-labs/earning-with-kava-lend-239796bc1087

 

 

Crypto Coins vs Token: Is there a difference?

Crypto Coins vs Token: Is there a difference?

Crypto Coins vs. Token: Understanding the Difference

Prepared by: Wilmina

Nearly everybody has confused a token for a coin at some point in their cryptocurrency journey.

The truth of the matter is that coin and token are a lot of the same on a fundamental level. They both represent value and can process payments. You can likewise swap coins for tokens and vice versa.

The primary distinction between these two comes down to utility. There are things you can do with tokens and not with coins. Then again, some marketplaces will acknowledge coins and not tokens.

The crypto industry has said that the key distinction between coins and tokens is that crypto coins are the native asset of a Blockchain like Bitcoin or Ethereum, whereas crypto tokens are created by platforms and applications that are built on top of an existing Blockchain.

When Bitcoin first came out, it set the standard for what it means to be a coin. There are clear-cut qualities that distinguish crypto coins from tokens, which are like real-world money.

What is a Crypto Coin?

A blockchain can only have one native asset (coins) whereas, it can have hundreds of tokens built on top of it. Example – ETH is the native crypto coin of the Ethereum Blockchain.

Elsewhere, a coin is native to its Blockchain. It uses its own Blockchain and keeps track of the datastores value, validates transactions, and keeps the Blockchain secure.

A coin is defined by the following characteristics:

  1. Operates on its blockchain. A blockchain keeps track of all transactions that involve its native crypto coin.

When you pay someone with Ethereum, the receipt goes to the Ethereum blockchain. If the same person pays you back later with Bitcoin, the receipt goes to the Bitcoin blockchain. Each transaction is protected by encryption and is accessible by any member of the network.

  1. Built on a blockchain or other Distributed Ledger Technology (DLT), which allows participants to enforce the rules of the system in an automated, trustless fashion. Uses cryptography to secure the cryptocurrency’s underlying structure and network system.
  2. Acts as money. Bitcoin was created for the sole purpose of replacing traditional money. The paradoxical appeal of transparency and anonymity inspired the creation of other coins, including ETH, NEO, and Litecoin.

You can purchase merchandise and services from many major corporations today, such as Amazon, Microsoft, and Tesla, using crypto coins. Bitcoin has recently become an official currency of El Salvador alongside the US dollar.

  1. Can be mined. You can earn crypto coins in two ways. One is through traditional mining on the Proof of Work Bitcoin hunters employ this method to boost their earnings. The problem with this is that there aren’t that many Bitcoins left to mine, so the process becomes more arduous every day.

The other method is Proof of Stake, which is a more modern approach to earning coins. It’s lighter on energy consumption and easier to do. Cardano is one of the biggest coins that adopt this system.

  1. Decentralized, or at least not reliant on a central issuing authority. Instead, cryptocurrencies rely on code to manage issuance and transactions.

List of Top Blockchain in 2022 and its native coins

Ethereum – ETH Binance Smart Chain – BNB Cosmos – ATOM
XDC Network – XDC Cardano – ADA Algorand – ALGO
Stellar – XLM Polkadot – DOT Klaytn – KLAY
Tezos – XTZ Solana – SOL IOTA – MIOTA
Tron – TRX Polygon – MATIC Avalanche – AVAX
Hedera Hashgraph – HBAR VeChainThor – VET Elrond – EGLD
EOS – EOS NEO – NEO Waves – WAVES

 

What is a Token, Its characteristics, and Functions?

  1. Tokens exist in a digital record on the blockchain. But tokens aren’t money, as money is typically understood. Instead, they represent things.
  2. A Token is built on top of the Blockchain, like Ethereum Blockchain, there are many other different tokens that also utilize the Ethereum Blockchain. Some of the most seen tokens on Ethereum include STKR, BAT, BNT, Tether, LINK, USDT, and various stablecoins like the USDC.
  3. Typically, token coins are used for governance, transactional fees, and other related use cases.
  4. Experts say that they are the infrastructure and the backbone of the Blockchain.
  5. To create a token, there is no need to create a Blockchain and write the entire code and worry about how transactions would be validated; instead, create a token and it runs on someone else’s Blockchain. This means there is no need to keep improving the entire system, updating how it works, and patching vulnerabilities – the team can solely focus on providing a great project. The token team can rely on the coin’s network to provide safety and stability for the network.
  6. Tokens are created by businesses. They give the owner the right to use that company’s product or service in the future.
  7. Often a Token represents physical or intellectual property, such as a work of art, a piece of music or a book. The best-known example of this is the non-fungible tokenor NFT.
  8. When a token is spent, it physically moves from one place to another. A great example of this is the trading of NFTs (non-fungible tokens.) They are one-of-a-kind items, so a change in ownership must be manually handled. NFTs often carry only sentimental or artistic value, so in a way, they’re similar to utility tokens, except you can’t oblige any services.
  9. Token is different from coins because crypto coins do not move around, only account balances change. When you transfer money from your bank to someone else’s, your money doesn’t go anywhere. The bank changed the balances of both accounts and kept the fees. The same thing happens with blockchain – the balance in your wallet changes, and the transaction notes that.
  10. You can buy tokens with coins, but some tokens can carry more value than any of them. For example, a company’s share. However, since there are usually restrictions to where you can spend a token, it doesn’t have the liquidity a coin offers.
  11. On a broader scale of things, tokens existed long before cryptocurrency was a thing. Even today, it has very little to do with crypto at all.
  12. Everyone has used a token at least once in their life. That dinner for two vouchers you got in the mail is a token. Your car title is a token. When you sell your car, you transfer the value of that title to someone else. However, you can’t go to Microsoft and buy a computer with that title or dinner voucher.
  13. Another interesting thing about tokens is how easy it is to create one. Some networks like Ethereum provide templates where you can brand your tokens and start trading. This makes it so anyone with little to no technical knowledge can become a market maker. You’ll find a high density of this type of activity on decentralized exchanges, such as Uniswap.
  14. There are many other different tokens that also utilize the Ethereum blockchain. Crypto tokens built using Ethereum include DAILINKCOMP, and CryptoKitties, among others. These tokens can serve a multitude of functions on the platforms for which they are built, including participating in decentralized finance(DeFi) mechanisms, accessing platform-specific services, and even playing games.
  15. Typically, crypto tokens are programmable, permissionless, trustless, and transparent. Programmable simply means that they run on software protocols, which are composed of smart contractsthat outline the features and functions of the token and the network’s rules of engagement.

Permissionless means that anyone can participate in the system without the need for special credentials.

Trustless means that no one central authority controls the system; instead, it runs on the rules predefined by the network protocol.

Transparency implies that the rules of the protocol and its transactions are viewable and verifiable by all.

The most significant distinctions between tokens and coins.

Coins and tokens both represent a store of value, much like fiat currency, such as dollars, euros, yen, etc. But there’s a crucial difference: digital coins are a form of money, while digital tokens represent something that can be assigned a price.

Crypto coins Tokens
Represent: Digital version of money Represent: assets or deeds
Denotes: capability of ownership Denotes: what you own
Built on Blockchain Do not have blockchain, built and operate on on existing blockchains.
Handled by Blockchain and uses Smart contracts Rely on smart contracts
Crypto coins have higher intrinsic value as they form the foundation of the Blockchain.

 

Tokens can represent a myriad of real-world use cases, including gaming, Stablecoins, NFTs, and other fees
In buying products – need coins If availing service – can use token utility
Capital-intensive, complex process. It requires programmers, machinery, money, and organization. Can be created by anyone with a computer and something to tokenize. The software to do so is readily available on a variety of platforms.

 

As the blockchain industry keeps on innovating, the quantity of remarkable advanced resources will just keep on developing as per the multi-layered necessities of all Ecosystem participants going from big business accomplices to individual users. Considering that making new resources inside the Web3 world is less prohibitive than in the physical domain, these digital resources are broadly expected to further develop the manner in which endless ventures work, cooperate, and produce esteem, consequently empowering a huge range of new social and financial possibilities outcomes.

DeFi Elements

DeFi Elements

DeFi Built-In 4 Elements

  1. Cryptocurrency

Cryptocurrency, the new global money for the internet age, is also a medium of exchange like other currencies.

A cryptocurrency is a digital currency that acts as an asset that can be exchanged between two parties resulting in a transaction. The transaction is secured using cryptography; therefore the term cryptocurrency was connected. Cryptocurrency is a combination of “cryptography” and “currency”.

Cryptocurrencies use a decentralized technology that allows users to do transactions securely without the help of an intermediary moderator like a bank.

Cryptocurrency is a system that is neither regulated by any centralized authority nor tracked by any financial institution.

This digital asset is supported by a technology called BLOCKCHAIN.

Blockchain is a peer-to-peer network of nodes also known as BLOCKS containing all the transaction details at each stage between the two parties.

These blocks are linked and get security using cryptography.

  1. Cryptography

What is Cryptography?

It is the study of secure communications techniques that allow only the sender and intended recipient of a message to view its contents The term is derived from the Greek word kryptos, which uses means hidden.

It is closely associated with encryption, which is the act of scrambling ordinary text into what’s known as ciphertext and then back again upon arrival.

In simple words, cryptography is a study of secure communication, one person will encrypt a message and the other person can decrypt it.

Why is Cryptography needed?

Cryptography is frequently expected to keep delicate information from being compromised and taken by individuals who are not intended to see it. This information can be military, financial or monetary, scientific (logical), mathematical (numerical), medical (clinical), and so forth in beginning. There is an extraordinary measure of justifications for why a wide range of individuals needs to keep certain information secret.

When presented to the wrong sources, some data might be a danger to public safety. For instance, atomic launch codes, the passwords to the entrances to weapons or contamination disease holding centers like CDC testing offices and things of this nature all should be kept secret to safeguard public safety. Cryptography makes it workable for just the suitable individuals to approach the sensitive data of importance.

How do Cryptography works?

There are various ways that cryptography might be applied to a piece of information.

Before the times of modern technology, transposition ciphers were used to modify the letters in a message. For instance, a message that read NRGEE SRGAS might be put through an interpretation code to reposition the letters, so they read GREEN GRASS. This is a very basic use of the concept of cryptography. Nonetheless, it was extremely famous in ancient times.

The strategies for carrying out cryptography to information have become fundamentally more complex. Presently, extraordinarily complex computer and mathematical technology can be used to encrypt information in more complicated ways than ever before. A portion of this technology is presently being used for modern-day cryptocurrencies.

Regardless of how complicated cryptography is, it always works on a similar basic principle; encrypt information and hide its true meaning so just only a person with permission can unravel it.

Role of Cryptography in Cryptocurrency.

Cryptography is an essential mechanism for securing information in computer systems. Without cryptography, cryptocurrency is just a central hub for attackers and scammers.

Cryptocurrency requires cryptography for mainly three (3) purposes;

  • To secure the transactions
  • To control the creation of additional units
  • To verify the transfer of assets.

To accomplish all these things, cryptocurrencies depend on what is called, “public key cryptography”.

This paper discusses the types of cryptographic techniques used in cryptocurrencies, studies their characteristics, and explores the working of these techniques.

  1. Blockchain Technology

Blockchain is a relatively new method of storing data online, which is built around the two core concepts of encryption and distributed computing.

Encryption means that the data stored on a blockchain can only be accessed by people who have permission to do so – even if the data happens to be stored on a computer belonging to someone else, like a government or a corporation.

Distributed computing means that the file is shared across many computers or servers. If one copy of it does not match all the other copies, then the data in that file isn’t valid. This adds another layer of protection, meaning no one person other than whoever is in control of the data can access or change it without the permission of either the person who owns it or the entire distributed network.

Put together, these concepts mean data can be stored in a way so that it is only ever under the control of the person who owns it, even if it happens to be stored on a server owned by a corporation or subject to the control of a local government. The owner or government can never access or change the data without the keys to the encryption that proves they own it. And even if they shut down or remove their server, the data is still accessible on one of the hundreds of other computers that it’s stored on.

  1. Smart Contract

Smart contracts are like pieces of code that run on blockchain-based networks. Once deployed, they operate as programmed where users can rely on them to be unstoppable and censorship-resistant.

A smart contract is a self-executing contract with the details of the agreement between buyer and seller being directly written into lines of code. The code and the agreements contained in that exist across a distributed, decentralized blockchain network.

Smart contracts refer to digital transaction protocols that utilize the blockchain to enforce an agreement automatically while doing away with any third party. The terms of the agreement are written in computer codes, containing rules and penalties that the parties must agree to before entering one.

The transactions through this means are immutable and transparent, enabling the parties involved to audit and validate the data as and when needed.

Even though smart contracts are irreversible, developers can adopt indirect ways of updating the codes or clauses for the terms of an agreement if required.

Smart Contract Three (3) TYPES or Categories:

  1. Smart Legal Contracts – These contracts are legally enforceable and require the parties to fulfill their contractual obligations. Failure to do so may result in strict legal actions against them.
  2. Decentralized Autonomous Organization (DAO) – These are blockchain communities that are bound to specific rules coded into blockchain contracts combined with governance mechanisms. Hence, any action taken by the community members gets replaced by a self-enforcing code.
  3. Application Logic Contracts – These contracts contain an application-based code that remains in sync with other blockchain contracts. It enables communication across different devices, such as the merger of the Internet of Things with blockchain technology.

What is the purpose of a smart contract?

On a blockchain, the objective of a smart contract is to simplify business and trade between both anonymous and identified parties, sometimes without the need for middlemen. A smart contract downsizes customs and costs related to traditional methods, without compromising authenticity and credibility.

Which blockchain has smart contracts?

Ethereum

The most popular blockchain for running smart contracts is Ethereum. On Ethereum, smart contracts are typically written in a Turing-complete programming language called Solidity, and compiled into low-level bytecode to be executed by the Ethereum Virtual Machine.

Who writes smart contracts?

Anyone can write a smart contract and deploy it to the network. You just need to learn how to code in a smart contract language and have enough ETH to deploy your contract.

Is Bitcoin a smart contract?

Many think that smart contracts are only executable on overly complex blockchains, but Bitcoin is a smart contract platform by definition.

Is Ethereum a smart contract?

As the Ethereum website puts it, “Ethereum is a decentralized platform that runs smart contracts.” These contracts run on the “Ethereum Virtual Machine (EVM),” a distributed computing network made up of all the devices running Ethereum nodes

Smart Contract Three (3) Main Components

  1. Signatories (parties)
  2. The subject of the contract
  3. Contract Terms

The parties involved must satisfy the terms of the agreement (a set of rules and penalties) for a successful transaction.

Besides eliminating the need for an intermediary, executing agreements through digital contracts is considered cost-effective and secure.

More so, the decentralized blockchain network ensures that transactions remain transparent, traceable, and irreversible.

How many smart contracts are there?

Smart contract deployment

As of December 19, 2021, there are currently 929 smart contracts live on Cardano’s mainnet, which are mainly focused on DeFi, following September’s Alonzo upgrade. Thanks to Alonzo, developers can now create DeFi protocols such as DEXes and lend/borrow platforms on the Cardano blockchain.

Prepared by: Wilmina Dela Pena

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https://serokell.io

Serokell is a software research and development company, focused on high complexity tasks in the area of computer science.
Our team is composed of developers, designers, engineers, computer scientists, and mathematicians, all to help you realize your vision.
We use functional programming to write robust code that works anywhere, anytime.

Initially, we worked with StakerDAO to implement the STKR governance token a monitoring app on Tezos. After that, we moved to BLND token and implemented a set of Ethereum contracts for holding BLND and performing buyback with them.

We also implemented a web app to run the buyback process.

After that, we designed and implemented the Bridge application and associated set of contracts that allow exchanging BLND and wXTZ tokens between Ethereum and Tezos.
We are working on Bridge backend support for ALgorand now.

Social links:
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Projects

BLNDSTKRStakerBridge

Skills

Contract development (Ethereum, Tezos)
Web application development
Development of applications interacting with Tezos, Ethereum and Algorand blockchains.

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https://randlabs.io/

Rand Labs is a blockchain development lab specialized in Algorand technology.

At Rand Labs we have developed specialized expertise in blockchain technology. Through 8 years of experience, we have worked closely with all major blockchain protocols and have garnered valuable experience in the industry that helps us deliver the maximum quality in our products and those of our partners.

We spend years training and advancing our team members' skills by facing ever more complex technical challenges in the blockchain space. Having helped and participated in the development of many of the most popular blockchain products in the world since 2013, we are in the capacity to deliver quality solutions regardless of the difficulty of the problem.

Despite having built numerous blockchain products and consensus upgrades from scratch, we believe a business-oriented acumen is as important in delivering maximum product-market fit. With our long history in the industry, we have developed a valuable network of relationships that is available to our partners. Additionally, The Rand Labs management team has been very active as investors and advisors in the space. We have invested in and advised very successful projects. As important, we have seen many projects fail which allowed us to learn valuable insights from those failures.

Social links:
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Projects

wALGOStakerBridge

Skills

Product DevelopmentAlgorand Smart Contract development and auditsBackend developmentInfrastructureDev ops UX UI

Fun Facts

Rand Labs has always been a fully remote company, way before the impacts created by COVID. We believe this has allowed our company to operate completely crypto native, including payroll, corporate structure, and revenue. We feel that by operating this way, every individual in our team is positioned to deliver the best products and solutions of this industry.

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https://stove-labs.com/

Learn more on Stove Labs Github, Twitter, and Telegram.

Projects

wXTZStaker Farms

Skills

Tezos BlockchainIPFSReasonMLSmart ContractsOpensourceDAPPsTutorials

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https://www.staker.services/

Staker Services provides technical, business and operation services for the cross-chain era. The Operations team specialised in the DeFi ecosystem, with experience in launching products across chains - from Ethereum to Tezos, Algorand, Polkadot and more.

Projects

BLNDwXTZWALGOSTKRStakerBridge

Skills

DevBusiness DevelopmentProductMarketingLegalFinanceOperations

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https://chainsafe.io/

"ChainSafe Systems is a blockchain research & development firm with a focus on building infrastructure for Web3. We are actively contributing to the Ethereum, Ethereum Classic, Cosmos, Polkadot, and Filecoin ecosystems and are open to contributing to other Web3 ecosystems where we see merit. Feel free to visit our website or email [email protected] with any inquiries.”

Projects

PINT

Skills

Blockchain InfrastructureResearch & DevelopmentSmart Contract Audits

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Team members in 17 countries and counting!

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