There are two major ways to start a FOREX trading business - either open a company from scratch or use a white label solution. Take the logical step with B2Broker white label solutions which can have your business up and running in less than 3 weeks!

Prime of Prime Liquidity & Technology Provider - B2Broker

B2Broker is a liquidity and technology provider of solutions for the crypto and foreign exchange (FX) industry. The company specialises in the sphere of B2B services and products, catering for a wide range of clients including large licensed brokers, crypto exchanges, crypto brokers, forex ...

B2Broker - Liquidity & Technology Provider | LinkedIn

B2Broker is a global liquidity provider for Cryptocurrency, Forex, CFD’s and technology solutions for brokerages and exchanges.

B2Broker - Crunchbase Company Profile & Funding

In this video, B2Core Product Manager, Ivan Navodnyy, talks about one of B2Broker’s flagship products, B2Core.

Forex CRM For Brokerages and Exchanges - B2Core™

B2Broker is a worldwide brand with a strong B2B reputation, providing technology and liquidity for forex brokers, crypto exchanges, and other financial services firms. The company offers crypto/forex/CFD liquidity, crypto/forex broker turnkey solutions, crypto payment processing (B2BinPay), ...

B2Broker | Sumsub

4,852 Followers, 58 Following, 671 Posts - See Instagram photos and videos from B2BROKER (@b2broker)

B2BROKER (@b2broker) • Instagram photos and videos

B2Broker - Liquidity & Technology Provider - YouTube

Today, B2Broker has become a significant player in global liquidity provision, servicing numerous jurisdictions and different digital markets. B2Broker’s prime of prime (PoP) model allows the company to harness the tier-1 liquidity pool of prime brokers and commercial banks and distribute ...

B2Broker - Liquidity Provider: Best Liquidity Providers

B2Broker - Liquidity &amp; Technology Provider

B2Broker - Liquidity & Technology Provider

B2Broker is a Prime of Prime (POP) liquidity provider delivering access to all Tier-1 liquidity venues, empowering your business with incomparable levels of technology, depths of liquidity, speed of execution and professional support. The company&#x27;s services support trading in over 75 FX pairs ...

B2Broker Products | G2

PRESS RELEASE. B2Broker, a prominent global liquidity provider in the FX and crypto industry, proudly declares the inclusion of Non-Deliverable Forwards

B2Broker Announces NDF Asset Class Addition, Reduced Margin Requirements, and Updates to PoP Liquidity Offering Package – Press release Bitcoin News

Search company, investor... ... B2Broker is a provider of multi-asset liquidity and technology solutions for the brokerage and exchange industry. The company offers a comprehensive suite of products including liquidity provision, white label platforms, and technology integration services.

B2Broker - Products, Competitors, Financials, Employees, Headquarters Locations

B2Broker is already partnering with nine trading technology providers.

B2Broker Ecosystem Designed for the Most Efficient Financial Technology Solutions

BRAIN is a Research Company that creates proprietary datasets and algorithms for investment strategies, combining experience on financial markets with strong competences in Statistics, Machine Lear... ... Learn more about B2Broker’s data sources, use cases, and integrations.

B2Broker - Pricing, Reviews, Data & APIs | Datarade

B2Broker LTD, a company incorporated in the United Kingdom of Great Britain and Ireland, is a registered business with company number 10562809. The business is global in nature, the company has a presence in several parts of the world and offices in three countries.

B2Broker Review | Forex Broker Reviews | Finance Magnates ...

Create your Crypto Broker, Forex Broker or Crypto-Exchange based on turnkey-solutions of B2Broker. Get boost with Trader&#x27;s room, MetaTrader whitelabel solutions, FX, Crypto and exchange liquidity. For more detailed information please contact sales@b2broker.net

B2Broker Demo Showcase of products for Crypto-, FX-Brokers and Cryptoexchanges

B2Broker has launched B2Margin, a white label margin exchange trading platform, to enable its clients to reap the benefits of leveraged trading.

B2Broker Launches B2Margin White Label Margin Exchange Trading Platform | Business Wire

The company, which recently expanded its Crypto CFD liquidity offering with the addition of 61 new crypto pairs, now totalling 100 pairs, is recognised as being one of the industry’s leading LPs, offering the highest level of support with 24/7 trading and support in English, Russian, Chinese Cantonese and Simplified, Arabic, Spanish, Hindu, Italian, Urdu, Farsi, Pashto, Hebrew and Turkish. B2Broker ...

B2Broker Secures its Position as a PoP Liquidity Provider with Devexperts dxTrade | Business Wire

Global Prime of Prime Multi-Asset Liquidity & Technology White Label solutions provider for Brokerages and Exchanges

B2Broker

The cryptocurrency market is experiencing a remarkable phase of expansion, marked by Bitcoin's record-breaking highs and a total market capitalisation surpassing $2.37 trillion. This augmentation aligns with the forthcoming implementation of the MiCA regulation, set to take effect on June 30, 2024, followed by a subsequent wave on December 30, 2024. With a diverse array of over 20,000 coins and tokens and a user base exceeding 300 million traders, the cryptocurrency market presents itself as an increasingly attractive option for trading compared to the FX market, which boasts 128 currency pairs and an estimated 50 million traders. This growing appeal is fueled by cryptocurrency's widespread integration across various sectors, such as finance, fintech, and payments, alongside the introduction of innovative business models facilitated by technologies like L2 solutions and blockchain protocols. In line with this booming trend, B2Broker has unveiled the (BBP), a state-of-the-art crypto spot broker solution. Engineered to enable businesses to capitalise on the surging trend in cryptocurrency trading, the BBP promises to expedite revenue generation for its users. B2Trader Brokerage Platform Who Can Profit from B2Trader? B2Trader offers substantial advantages to diverse entities within the financial landscape, including crypto brokers specialising in CFDs and derivatives, OTC brokers, FOREX brokers, multi-asset and multi-market brokers, market makers, liquidity providers, payment systems, and even banks. Check how each of these business models can use the capabilities of BBP: FX Brokers For FOREX brokers, B2Trader can be a valuable addition to their platform lineup. Alongside the traditional trading platforms like MT4, MT5, and cTrader, which primarily handle assets such as FX, crypto, equity indices, and precious metals for margin trading or as CFDs, integrating B2Trader allows them to offer exclusive crypto spot trading. This expansion enables them to attract a new segment of crypto traders interested in physical delivery or ownership and to generate revenue through commissions, markups, and effective risk management. Additionally, BBP provides a solution for regulated FOREX brokers to separate their digital asset trading activities under a different licence, promoting strategic diversification and maintaining a competitive advantage. Crypto Brokers Brokers specialising in crypto CFDs, utilising crypto as collateral, and providing a combination of FX and crypto CFDs can utilise B2Trader to augment their current offerings by incorporating crypto spot trading. In the fiercely competitive landscape of client retention and acquisition, the lack of crypto spot trading options could prompt clients to explore alternative service providers. Therefore, integrating B2Trader grants brokerages a strategic edge, enabling them to adjust to market dynamics promptly, provide highly sought-after crypto spot trading services, and fulfil client demands. Market Makers Utilising B2Trader, market makers can tap into multiple exchanges, consolidate liquidity effectively, achieve competitive spreads, optimise pricing strategies, and facilitate smart routing execution across various venues. Liquidity Providers The inclusion of cryptocurrencies in your asset portfolio significantly enhances your attractiveness to brokers, hedge funds, and professional traders. B2Trader simplifies this integration, providing the necessary tools to broaden your market presence and expedite revenue growth. EMIs, Payment Systems, and Banks For EMIs, PSPs, and banks, B2Trader offers a strategic advantage by facilitating diverse asset management, monitoring capabilities, and the creation of liquidity pools. It empowers these entities to incorporate crypto services into their current operations, facilitating transaction netting, provision of crypto accounts, and enabling instant swaps. BBP presents boundless opportunities as the gateway to the thriving trends within the crypto reality. With its comprehensive API and a full suite of essential components and modules, B2Trader seamlessly integrates into any business model. High-Speed, High-Efficiency, High-Tech B2Trader embodies high-speed, high-efficiency, and high-tech capabilities. Even in its most rudimentary configuration, it manages 3000 trading instruments and handles up to 3000 requests per second. The platform provides real-time market data, with updates every 100 milliseconds, and facilitates ultra-fast order execution starting from 1 millisecond. "Today, B2Broker is a leading name in the FinTech industry. We began operating in the FOREX industry in 2014 and have been developing solutions for the crypto industry since 2017. B2Broker has earned multiple awards and recognitions, and our years of experience have allowed us to understand what the market needs exactly. That's why we created B2Trader. It's our answer to the changing trends in finance. We have poured 18 months of hard work and over $5 million into B2Trader. BBP is built by our dedicated in-house team of 40 engineers, each contributing to a solution that truly meets the demands of today's brokers. In the next 12 months, we are planning to double the team and enhance our offerings even further!" — Arthur Azizov, CEO and Founder of B2Broker Ultra-Modern Technology Stack Built upon a cutting-edge technology stack, BBP prioritises reliability, scalability, and security by leveraging the latest tools and protocols. Hosted on AWS for its dependable infrastructure, it mitigates hardware risks. Data management is handled through MongoDB and Amazon Redshift, with market insights facilitated by TradingView. Kubernetes and Docker enable scalable deployments, while CloudFlare offers DDoS protection. Efficiency and reliability are further enhanced by the FIX protocol. Below is the comprehensive list of protocols and technologies: Effective Integrations B2Trader, crafted by , boasts potent integrations that enhance its functionality. B2Broker provides an extensive array of products, encompassing a trading platform, OMS, pre-trade and post-trade controls, liquidity management system, Trading UI, (CRM) software, back-office solutions, for coin/token processing and collection, blockchain management system for automated payouts and settlements, mobile applications, technical documentation, REST and FIX API protocols, advanced White Label options, and a host of other features. B2Broker Customer Relationship Management blockchain wallets In addition, integrated with , a crypto liquidity distribution engine, B2Trader streamlines administration and ensures real-time market updates with the latest data. Marksman Utilising Marksman, crypto brokers can efficiently connect to top exchanges by simply inputting API credentials after opening an account. This facilitates the creation of diverse liquidity pools from multiple exchanges, enabling brokers to assign specific execution and routing rules and establish failover protocols for both pairs and liquidity pools. B2Trader is available as a turnkey solution or for seamless integration with any CRM via REST API. For further information, interested parties can reach out to the sales team or their dedicated account manager, explore the free demo, and launch their crypto spot broker within a week! This story was distributed as a release by BTCWire under HackerNoon’s Business Blogging Program. Learn more about the program here: https://business.hackernoon.com/

B2Broker Funds The Next-Gen Brokerage Platform B2Trader with $5M 

B2Broker $5M দিয়ে নেক্সট-জেন ব্রোকারেজ প্ল্যাটফর্ম B2Traderকে তহবিল দেয়

B2Broker finanziert die Brokerage-Plattform B2Trader der nächsten Generation mit 5 Millionen US-Dollar

B2Broker financia la plataforma de corretaje de próxima generación B2Trader con 5 millones de dólares

B2Broker finance la plateforme de courtage de nouvelle génération B2Trader avec 5 millions de dollars

B2Broker अगली पीढ़ी के ब्रोकरेज प्लेटफॉर्म B2Trader को $5M से फंड करता है

B2Broker が次世代仲介プラットフォーム B2Trader に 500 万ドルを出資

B2Broker, 차세대 중개 플랫폼 B2Trader에 500만 달러 자금 지원

B2Broker financia a plataforma de corretagem de última geração B2Trader com US$ 5 milhões

B2Broker финансирует брокерскую платформу следующего поколения B2Trader на 5 миллионов долларов

B2Broker Yeni Nesil Aracılık Platformu B2Trader'ı 5 Milyon Dolarla Finanse Ediyor

B2Broker cấp vốn cho nền tảng môi giới thế hệ tiếp theo B2Trader với 5 triệu USD

B2Broker 为下一代经纪平台 B2Trader 提供 500 万美元资金

The finance community has embraced crypto ledger innovations today, leading to a constant emergence of new . Today, these solutions are employed in a wide range of applications for both personal use and the business environment, the latter of which is undergoing a significant digitalization process. Blockchain as a Service, or BaaS, is one such option that enables one to fully utilize distributed ledgers and is primarily intended for enhancing digital business opportunities. blockchain-based technological solutions This article will tell you what Blockchain as a Service technology is, in which areas it is used today, and what advantages it offers to digital business. You will also learn about several global corporations that already offer such services. KEY TAKEAWAYS BaaS blockchain solutions are a set of cloud services and tools for creating or renting a blockchain network within a digital business. BaaS solutions have found applications in many areas of life today, the main ones being healthcare, the oil industry, insurance, real estate and tourism. The main advantages that BaaS systems offer are flexibility, customization and data security, and the main providers of such solutions today are Microsoft Corporation, Amazon, Oracle and IBM. What is Blockchain as a Service? Blockchain as a Service (BaaS) is an innovative model that enables businesses to use cloud infrastructure to create, host, and use their own blockchain apps, smart contracts, and other blockchain-related systems. In BaaS, cloud service providers are the ones who are responsible for carrying out the tasks and processes. In essence, these solutions represent a bridge between the enterprise blockchain platform and companies and work relatively similar to the Software as a Service (SaaS) approach. The popularity of blockchain technology has soared in recent years, with its use being extended . The increased demand for hosting applications has led to the growth in the use of Blockchain as a Service (BaaS) solutions, which are now being adopted by many different industries. beyond cryptocurrency transactions Amazon, IBM, and Microsoft have already begun to develop tools and platforms that allow enterprises to use cryptographic ledger technology as a service, that is, without upfront and training for specialized skills. They plan to create smart contracts and other decentralized architectures that can be used for various purposes, and cloud platforms will make the technology available to many organizations. investment in infrastructure FAST FACT According to , the market value of BaaS solutions as of 2022 equals 1.32 billion U.S. dollars. It is expected that by 2029 this figure will grow by more than 25 times and reach 35.8 billion U.S. dollars. statistics Practical Application Areas of Blockchain as a Service Technology The BaaS solution can be used in projects of any level – from startups to multinational corporations. And all this without investing in the development of your own blockchain networks. Today, within the framework of practical application, BaaS cloud services effectively solve many tasks, including supply chain management, accounting and statistics, protection of the confidentiality of customer records, real estate property registrations, and even ICO launches. Below are the main areas of practical application of BaaS technology today. Healthcare BaaS technology can support the processes that underpin the global economy. In particular, blockchain in healthcare can process medical records, the logistics of drugs and medical equipment, and speed up claims processing. Health insurance can assess customer risks in real-time, simplify checks, reduce fraud, and improve customer service. Healthcare providers can easily take to solve many problems. In addition, the blockchain network will help monitor and determine the authenticity of medical products to prevent counterfeits. full advantage of BaaS Oil & Gas Industry As today's oil and gas niche is one of the most important economic sectors, blockchain adoption and in its business processes will help automate oil and gas production process control systems, ensure harmonization of commodity nomenclature to ensure better efficiency of warehouse accounting systems, industrial production facilities and other essential facilities within the oil and gas field that are directly involved in the organization of oil, gas and other forms of energy production. In addition, blockchain will help better organize financial flows and significantly reduce manual labor in accounting departments. use of BaaS solutions Travel The travel industry has great potential in terms of systems. Today, the practical application of such blockchain solutions is found within the organization of dispatch activities in various airports around the world, helping to improve the efficiency of international airline reservation systems and creating new passenger databases. For example, the use of a single database to summarize all the identifiers of passengers can be a great solution that will help solve the issues related to visa registration and conditions at border crossings, as well as help with the identification of false documents. using BaaS Media & Entertainment The use of BaaS technologies within the will, foremost, help to properly organize the process of mutual settlements between social networks and online platforms (like YouTube) and content creators. BaaS solutions will help to keep track of all elements of intellectual property within the platform that stores the content, to distribute revenues from content sales more accurately, using blockchain financial service, etc. Moreover, such solutions will enable smart contracts to instantly pay content creators. entertainment content industry Insurance Insurance is one industry that must catch up in the technology race today. Insurance companies have to deal with too much paper and financial information daily, which is overwhelming. Insurance procedures take up a lot of time, and limited human, technical and operational resources can result in processing delays. Integrating blockchain services based on BaaS solutions will help the utilize distinct digital methods to confirm transactions within insurance cases, automate insurance policy processes, and reduce the possibility of fraudulent situations and unfair approaches to damage assessment. insurance industry Real Estate The main advantage BaaS systems can give in is the exclusion of the intermediary party, as blockchain guarantees the reliability of the entire content of the database. Transition to such technology will seriously reduce corporate and public administration costs, which as a consequence, can help to achieve the following goals: instant execution of documents; elimination of the need for repeated operations with documents because of the possibility of their loss or damage is excluded; the possibility of a quick check of the status of the developer's contributions and the status of his documents. real estate A decentralized, blockchain-based depository system for the record-keeping of mortgages will help to speed up and reduce the cost of storing, changing, and moving mortgages many times over. The scheme and roles of the participants remain the same as now, but depositories will create a shared database, and all transactions within it will be carried out according to the logic of smart contracts. Benefits of Using BaaS Platforms in Digital Business Blockchain systems within the BaaS model are designed to help digital businesses in solving various tasks and, having a large set of advantages, have a high potential for development and practical application in all spheres of human activity. Let's consider the main advantages that digital businesses can get as a result of using BaaS solutions. High Level of Security and Data Protection With a scalable blockchain network development and management service, it is possible to control all permission levels, nodes, and keys from a single control panel. In practice, almost every BAAS vendor offers a dashboard to easily access all key elements. The process of encrypting ledger information also adds security and provides the highest privacy within BaaS products. Moreover, the cybersecurity in these solutions is remarkable in that it completely eliminates the possibility of any fraudulent actions. Flexibility and Solution Efficiency The best part of most BaaS blockchain systems is that they offer a wide range of consensus algorithms for use in digital business process infrastructures. They provide a high level of integration of different kinds of applications and system utilities from other developers to meet the needs of any given company. Moreover, many BaaS services provide access to powerful blockchain tools, such as flexible switching protocols, dynamic pooling, and physical resource management, sufficient to make a company's business processes efficient and increase overall productivity. Transparency and Openness Solutions based on the BaaS model can offer digital businesses simple tools for blockchain project deployment using smart contracts and various consensus protocols that ensure the openness and transparency of any element of the blockchain network. This will allow you to track all transactions and control the processes involved in keeping any BaaS solution up and running. Today, any BaaS external hosting provider offers a full range of functional blockchain solutions to ensure the high performance of digital business regardless of its type, including full support and maintenance during the operation of these solutions for quick responses to all arising difficulties and problems. Adaptivity and Customization Blockchain applications offered within the framework of digital business are scalable and, therefore, can be adapted and customized to meet any company's needs and requirements. Moreover, the latest developments in the field of blockchain and artificial intelligence will potentially be able to quickly and efficiently customize BaaS solutions according to the specifics of business processes and the direction of the company's activity. Such solutions will help to significantly improve the overall efficiency of business operations, as all systems will work smoothly, adapting to all changes. merge Economy and Usability Since BaaS model solutions are inherently White Label solutions, their use is convenient on the one hand and cost-effective on the other. Thanks to flexible pricing plans offered by any BaaS provider, even small startups with limited budgets can start using blockchain tools to develop and promote their business. BaaS is cross-platform, flexible and customizable, allowing for easy integration into any company's information infrastructure. Major Companies Supplying Cloud-Based Blockchain Business Solutions In today's digital business environment and high competition, BaaS has become a breath of fresh air for companies that are interested in implementing systems based on distributed registries. Today, there are a number of companies that develop and implement complex BaaS tools for both classic and digital businesses. IBM comes with a multitude of business solutions. IBM's cloud ecosystem is one of the ready-to-implement, integrated, and fully functional solutions on the market. Using blockchain as an IBM service application, a company can incorporate blockchain and manage the interface and system more efficiently. IBM BaaS platform The features of working with this IBM suite of solutions give you the flexibility to customize any platform element, allowing for greater business efficiency. So, it doesn't matter if your company is a small production company or a multinational conglomerate – its needs will be met in full. Microsoft Today, Microsoft offers as a BaaS solution. The platform provides an amazing set of powerful tools and products to create your own blockchain network in just one day, with high speed and flexibility. The Microsoft Azure workbench is mainly suitable for a legacy system's development or testing phases. Microsoft Azure Blockchain as a service from Microsoft reduces the cost and deployment time by leveraging the integrations built into the platform. Moreover, the platform provides exceptional flexibility to customize any element of the platform to the needs of the business. What's more, when set up, a company gets a lot of development tools. All it takes is a choice of parameters or features to add to the company's network. Amazon Amazon also offers its blockchain-based cloud service called (AWS). This solution offers a great way to implement blockchain, which allows a company to develop its network system with high scalability and performance. According to the company, it is one of the most convenient solutions to get their network up and running quickly. Amazon Web Services BaaS AWS offers many solutions for centralized and decentralized architecture for security as well, which is possible thanks to a high-performance ledger with cryptographically secured data formation. In the case of building a decentralized architecture, BaaS AWS provides companies with the best blockchain network environments, which automate and remotely manage processes and eliminate the need for control and organization. crypto chain Oracle offers Oracle Blockchain Cloud Service, a comprehensive . This platform provides access to blockchain services of various levels and formats to deploy new crypto ledger networks. Oracle cryptographic ledger technology platform For a company to keep up with the pace of digital business, it needs to be able to work securely with multiple partners. Oracle blockchain provides a solution that allows all parties to come together in data securely. Oracle also offers easy ways to implement blockchain solutions, including cloud and SaaS services. real-time to exchange Conclusion BaaS technology opens up new opportunities that include crypto ledger networks as a component of an information technology-based digital enterprise. BaaS could be a key catalyst for a much deeper and wider adoption of blockchain innovation across business domains and industries, empowering businesses to develop their own blockchains, smart contracts, and other cutting-edge digital services and systems based on distributed ledger technology.

Blockchain as a Service (BaaS) and its Impact on Digital Business Development

Blockchain como servicio (BaaS) y su impacto en el desarrollo de negocios digitales

Blockchain en tant que service (BaaS) et son impact sur le développement des entreprises numériques

एक सेवा के रूप में ब्लॉकचेन (बीएएएस) और डिजिटल व्यापार विकास पर इसका प्रभाव

Blockchain as a Service (BaaS) とそのデジタル ビジネス開発への影響

Blockchain como serviço (BaaS) e seu impacto no desenvolvimento de negócios digitais

Chuỗi khối như một dịch vụ (BaaS) và tác động của nó đối với sự phát triển kinh doanh kỹ thuật số

区块链即服务（BaaS）及其对数字业务发展的影响

The development of the financial sector, and payment systems in particular, has allowed us to rethink to a large extent the role of information technology, which today, is a solid foundation for the creation and development of many technological solutions to provide convenience, speed, and reliability of interaction between business and its customers. One of the latest trends in such payment solutions is embedded . finance technology This article will shed light on the question of what embedded finance technology is and its development path. You will also learn what advantages this technology has and what varieties it exists in. KEY TAKEAWAYS Embedded finance technology is a set of payment instruments used by non-financial organizations to provide financial services. Some of the most advanced trends in the development of embedded finance today are crypto-lending, the “buy now, pay later” model, and insurance services for various things. Embedded finance technology is one of the variations of the banking as a service (BaaS) model. What Is Embedded Finance Technology? Embedded finance is a new generation of financial systems that are a type of BaaS (Banking as a Service) embedded lending or bank processing solutions integrated into non-banking products and services such as BNPL (Buy Now, Pay Later) to provide a quick and convenient way to make mutual payments in B2B and B2C. For example, a retailer might offer its customers the ability to pay for their purchases with a . Such a technology platform might give financial institutions access to financial tools such as budgeting and . digital wallet or mobile payment app investment tracking In addition, businesses can also use embedded payments to access financial services such as credit or payment processing. provides a seamless and convenient experience of interaction between the buyer and the service when paying for goods or services. Embedded financing As a rule, as part of a company's website, the embedded financing module is integrated into the context of the site or page, and payment takes place in the same window without redirecting to third-party intermediary resources. Nevertheless, it's a logical addition to the page of an insurance company, online store, or marketplace. The service providers could be banks and fintech companies. The latter plays a prominent role in developing the embedded finance industry due to their flexibility and ability to adjust to their partners. The BNPL services, as mentioned above, have recently become more widespread in marketplaces. These solutions allow you to quickly calculate and arrange installments when paying for an order. BNPL services are a rare example of a B2C product in embedded finance. Meanwhile, B2B developments in BaaS and embedded finance contrast interestingly with BNPL. One of the first prime examples of such developments in the embedded finance market is the collaboration between Uber cab service and the fintech platform BBVA. The latter has developed a payment module for Uber to quickly accept payments with additional discounts, cashback, and credit options. FAST FACT Embedded finance technology is an intermediate stage in the development of the fintech industry, in particular payment systems, replacing the classical banking system. The Evolution of Embedded Finance About a decade ago, all payment services and platforms, without exception, fit into the category of BaaS 1.0; the essence of which was to provide specialized banking services (for example, issuing banking products as a debit card) and obtain a stable income derived from charging customers for the use of these products. Today, the industry has changed a lot. Most embedded banking solutions businesses belong to the BaaS 2.0 generation, offering solutions to facilitate online customer payments. The ability to easily accept online payments is now a must-have for any business, regardless of the field of activity, because without it, competing in the market becomes much harder. Online payment support also helps BaaS 2.0 solutions generate more revenue by charging customers for access to payment processing in addition to monthly service fees or product subscriptions. Thanks to advances in information technology, which are now closely intertwined with other innovations such as , embedded finance systems continue to improve and are beginning to evolve into the BaaS 3.0 category, offering all-in-one payment processing tools in the form of additional embedded financial features (such as credits, accounts, and cards) beyond payments. cryptocurrency solutions Modern technology underpinned by a more flexible financial regulatory environment gave birth to embedded finance in the form that exists today. But the real driver is the growing demand from technologically advanced businesses working to create new, sophisticated implementations for embedded financial services. There are numerous examples, ranging from online marketplaces that provide working capital solutions for clients and suppliers to accounts payable and accounts receivable automation systems that aim to simplify user workflows. The technology of embedded finance has come a long way, at the origins of which were the companies that developed services to release branded banking products for individuals and legal entities. The next stage of such technology's development was , which made it possible to use ready-to-use payment solutions within the business framework for a certain fee. White Label solutions The next stage involved the development of solutions utilizing PaaS (Payment as a Service) technology to connect a group of international payment systems, where the architecture is represented by a layer or overlay that sits on top of these systems and provides two-way communication between the payment system and PaaS based on standard APIs. What Are the Advantages of Embedded Finance? Embedded finance technology, while gradually revolutionizing payment systems, has a wide range of benefits for all parties involved, including companies and customers (end users). Let's look at the benefits of embedded finance technology for each party in sequence. Advantages for Companies To begin with, let's look at the most important benefits that companies get when they implement embedded finance technology in their payment system. Additional Source of Revenue The introduction of embedded finance technology into the company's payment infrastructure allows it to receive additional and stable income due to the collection of a certain percentage of commission from each client transaction, whether with a debit or credit card, which, with a large volume of payment transactions, allows you to receive impressive revenue figures. Moreover, by cooperating with other payment systems, you can also receive an additional percentage from each transaction made within the referral program. Increase Product Attractiveness By using embedded finance solutions within the business, the company's products and services look more attractive in the eyes of customers because they not only bring practical benefits with accelerated and simplified payment transactions but also become the foundation for developing its own embedded services that the company can offer as a unique product of its own. This, in turn, helps to expand both the customer base and the range of payment solutions offered by the company. Increase of Converts Payment services form a crucial link in the framework of payment operations for goods and services. Today, every person uses one or another bank for the opportunity to have a card to pay for purchases. The use of embedded finances will allow an increase in attendance of a website because this technology guarantees comfortable and quick access to the payment modules on the company's site itself. Such technology today finds application in many non-financial institutions that begin offering their customers financial services. Improvement of Competitiveness Today, in almost every business area, one can observe the fierce competition, which on the one hand, is a hard struggle for software companies for market leadership. Still, on the other hand, it moves technology development forward. Initially, the surge of interest in this topic was driven by the needs of challenger banks. Banks required the infrastructure to create banking software and a license. But today, the main growth driver is non-financial organizations, which are building fintech into their product line, and thus have an undeniable competitive advantage. Advantages for Customers Now, let's move on to the benefits that ordinary users of products from non-financial companies offering embedded finance solutions can benefit from. Increased Convenience When interacting with companies using tools that include embedded finance, users get convenient access to financial services such as online payment options (debit or credit) or EMI services when checking out or using the website or application. This advantage is one of the most significant since it provides a way of directly using the possibilities of Internet banking for working with such products as installment payments, loans, payments for products in installments, embedded insurance, etc. Individual Offers Financial services that are directly available on the market often lack customer friendliness in terms of both offerings and processes. The company's embedded financial solutions offer clients individual financial services and offers that meet different criteria for assessing the solvency of users on the one hand, and, on the other hand, allow them to use all the advantages of the banking ecosystem to obtain the best shopping experience within a particular business. Inclusiveness Embedded finance allows low-income users to access formalized financial services that they otherwise wouldn't be able to because of the complex processes and strict filtering criteria used by traditional . financial institutions This includes different categories of financial instruments which, for one reason or another, may not be available to some individuals or businesses. Often, the process of opening any bank product requires a visit to the bank and many other manipulations. Built-in financial tools allow access to payment solutions instantly within the product of a company that cooperates with the provider of such solutions. What Are the Types of Embedded Finance? Today, the technology of embedded finance, gaining popularity at a rapid pace, has received a new round of development and has found its application in many areas of the financial system, opening up new opportunities for interacting with money. Let's look at the main ones below. Buy Now, Pay Later (BNPL) BNPL services allow consumers to purchase goods using any bank card and pay in equal installments within a certain period after the purchase. As a rule, in this case, the payment is divided into four equal parts, or the buyer is given a delay of 30 days. As a type of short-term financing, this model, unlike credit cards, allows consumers to break down the purchase price into interest-free payments. This scheme has taken shape as a business model over the past decade. BNPL operators usually make money from transactions paid by merchants. In addition, service providers can profit from late payment penalties on consumers. The BNPL model for making small purchases has become popular due to the popularity of e-commerce. To start using this embedded finance option, the buyer must make a purchase, make an initial payment, and then pay the remaining amount in several interest-free installments. Point-of-Sale Lending PoS lending is one of the options for an express loan, which can be obtained on the territory of a trade and service center in the process of purchasing goods or receiving services. You can apply for a loan at any of the physical outlets (shop, hypermarket, sales outlet, etc.), as well as online (online store, marketplace, etc.). PoS lending services can be used to purchase almost any product. The most popular categories include electronics, home appliances, furniture, jewelry, and more. Financing is carried out at the expense of credit institutions and partners of retail outlets (IFI/bank). As a rule, financial institutions enter into cooperation agreements with large and medium-sized businesses; for this reason, the service is most popular among retail chains, and small outlets are rare. Fintech-as-a-Service (FaaS) Fintech-as-a-Service, FaaS, is one of the most popular varieties of embedded finance, providing a variety of financial tools for business. A fintech provider creates financial products, and companies from non-financial sectors get access to payment solutions without having to develop services themselves. With the help of financial solutions, the company covers more scenarios and earns more. Fintech as a service is the next step in integrating financial tools. For example, paying for a taxi in an app is a basic set of functions for accepting payments. In contrast, a bank account and an e-wallet from a taxi service, which provide the driver with instant access to earned funds and the ability to manage them, are fintech as a service. Today, this approach is used by Uber, a non-financial company that implements financial scenarios in its field. Embedded Insurance Embedded insurance is a concept that many insurance companies use to provide their products and comprehensive services as part of other web-based programs and services. This type of insurance can be offered either as a supplement to other products and services or as its own component of a third-party customer experience. EI is typically used when a customer buys a product at checkout, such as a TV, and has the option of adding insurance or a warranty during checkout. As the marketplace evolves, consumers are definitely enthusiastic about the idea of increasing convenience and ease of service through built-in insurance. This is because the latter allows consumers to get a customized insurance offer that matches their product or service purchases without having to search for suitable insurance options, bringing the whole process together at the point of sale of that product or service. Conclusion The payment industry, experiencing global changes as a result of the development of information and financial technologies, is on the verge of adopting solutions built on the model of embedded finance to revolutionize the process of mutual settlement and increase purchasing power. The future of embedded finance will bring many new opportunities for business-to-customer interactions and help push the boundaries of the usual understanding of how service provision is done.

Embedded Finance as the Future of Payment Technologies

Embedded Finance como el futuro de las tecnologías de pago

La finance embarquée comme l'avenir des technologies de paiement

भुगतान तकनीकों के भविष्य के रूप में एंबेडेड वित्त

決済テクノロジーの未来としての組み込み金融

Finanças incorporadas como o futuro das tecnologias de pagamento

Tài chính nhúng là tương lai của công nghệ thanh toán

嵌入式金融作为支付技术的未来

Today, is the second most popular cryptocurrency on the market, thanks to its sophisticated consensus algorithm and innovative solutions that have underpinned its blockchain network. The history of updates to Ethereum includes dozens of hard forks, which in one way or another, have been aimed at reducing transaction fees, improving the stability of the distributed ledger, and upgrading security and smart contract protocols. The Shanghai update was the last and perhaps the most important after (or Ethereum 2.0 update). Ethereum The Merge This article will explain , the opportunities, the implications it brings to the network, and the risks and vulnerabilities. In the end, you will learn about the prospects for the Ethereum project after receiving the Shanghai update. Ethereum's Shanghai update KEY TAKEAWAYS The Ethereum Shanghai blockchain update is the second most important update of recent years, after The Merge. The Shanghai update is primarily aimed at enabling validators to extract their assets from staking. Many crypto industry experts predict that after the update, the price of Ethereum coin is more likely to go up after a short-term drop as a result of a decrease in the volume of staking. What is Ethereum's Shanghai Update? Ethereum's Shanghai upgrade is a hard fork and a major of the Ethereum ecosystem that could affect the market value of the ETH cryptocurrency, as stakers and validators can now withdraw ETH from the Beacon Chain deposit contract. This change makes the network complete in terms of PoS consensus mechanism, allowing ETH users not only to stake coins but also to withdraw them into liquidity if necessary. enchantment The Shanghai update pack influences Ethereum's so-called execution layer, the network component that deals with smart contracts and protocol rules. Another set of updates, dubbed Capella, will apply to Ethereum's consensus layer – the part of the network through which Ethereum's validators enforce rules set in the execution layer. Both updates take place simultaneously, and the Ethereum developers have combined them under a single name - Shapella. This massive unlocking of coins marks the final phase of Ethereum's most significant update, called The Merge, after which the network has moved to a Proof-of-Stake (PoS) transaction validation algorithm. According to the algorithm's rules, new ETH is distributed as a reward to those who hold coins. The more ETH a blockchain validator places in staking, the more likely the Ethereum network to validate transactions and reward it with new coins. staked To motivate validators to keep the network running, a staking fee of up to 5% per annum is paid to anyone who deposits coins in a special smart contract as collateral. The contract is called the Beacon Chain and was launched in 2020 when the issuance of new coins in Ethereum came at the expense of mining. Last September, developers successfully migrated the network to the PoS algorithm. Still, institutional investors with coins locked into the Beacon Chain could technically not withdraw funds – both collateral and accrued income in the form of rewards. The Shanghai upgrade solves this problem. Once it launches, about 500,000 validators can withdraw a minimum pledge of 32 ETH (about $57k) and accumulate rewards as new coins. FAST FACT The Shanghai update is an important preparatory step before the development of a series of solutions aimed at implementing the Ethereum 2.0 update Opportunities and Implications of Ethereum's Shanghai Update The long-awaited Shanghai update is a watershed moment for the ETH blockchain in many ways, comparable in scale only to the recent Ethereum Merge update. It is believed that this upgrade not only redefines the concept of the project regarding staking and lending but also helps to increase the investment appeal many times over thanks to the numerous Ethereum improvement proposals. According to the (Ethereum Improvement Proposal), which describes and proposes changes to the Ethereum protocol to improve its functionality and efficiency, among the most important changes are the following: EIP : Beacon Chain Push Withdrawals as Operations EIP-4895 This ETH update offer provides validators with the ability of partial withdrawal of ETH that has been added to the staking on the Beacon Chain since December 2020, when the network was originally introduced. EIP-4895 offers long-term stakers and holders additional liquidity by allowing staked ETH to be withdrawn from staking with low gas fees after a two-year wait. This innovation is perhaps the most anticipated of any available within the Shanghai package, especially for holders of large amounts of Ethereum in their accounts. : PUSH0 Instruction EIP-3855 This proposal updates the set of instructions and rules for the Ethereum Virtual Machine (EVM), which significantly reduces the size of smart contracts and optimizes code. The EVM object format puts the data for a smart contract into one set of codes and separates it from the rest of the smart contract code. The smart contract interacts with the data through calls and queries. This format is expected to add flexibility to Ethereum smart contracts and increase the speed of their queries, as well as reduce the gas fees charged for these transactions. : Limit and Meter Initcode EIP-3860 EIP-3860 is an EIP-170 extension that limits the maximum initialization code size to 49152 and provides a fair initialization code charge when interacting with an “initcode”, thereby reducing the transaction fee. In addition, this change adds two additional units of gas for each 32-byte portion of the code. This solves the problem of gas shortage exceptions in Ethereum, which has persisted for years. Thanks to such solutions, it will be possible to achieve significant improvements in blockchain efficiency and reduce its load, which often leads to delays in various operations within the network. EIP-3651 This update aims to improve Ethereum's interaction with the Coinbase cryptocurrency exchange and wallet. Payments from the U.S. platform are now more expensive than from other similar projects. The initial interaction with Coinbase software requires “warming up” because it consumes more gas than regular transactions. This is because, under the access list structure introduced by EIP-2929, Coinbase calculates gas according to the cost of accessing a “cold” account in EIP. With the implementation of EIP-3651, the wallet software will be “warm” from the start, reducing the exchange's gas consumption when paying with ERC20 tokens. Risks and Vulnerabilities of the Shanghai Ethereum Blockchain Update The Shanghai Ethereum update is a long-awaited change to the Ethereum Proof-of-Stake (PoS) consensus mechanism. Before the update's launch, developers scheduled test networks with Sepolia, the second-largest test network that provides a secure and reliable environment for testing smart contracts features. Only authorized individuals can run validation nodes on Sepolia's new consensus level. The update allows users to withdraw tens of billions of dollars in ether. With the update, there are some risks to consider, especially if you have ETH staked somewhere. Staked Ethereum Volume Decline According to research by CryptoQuant, about 60% of the assets locked up in staking contracts (about 10.3 million ETH) are now unprofitable (if you compare the current price to the price at the time each token was placed). A significant number of unprofitable tokens were locked in between March 2021 and June 2022, when ETH was trading above $2,000. Meanwhile, most of the remaining profitable ETH rose only 20-30%. In other words, it's simply not profitable for stakers to sell their ETH now. Moreover, 75% of staked Ethereum is controlled by crypto-exchanges (Coinbase, Binance, Kraken), which allowed investing in staking any amount, and special platforms (Lido, Rocketpool, Stakehound, Stakewise, Stkr), which provided their users with liquid staking services – issue of “derivative” token (derivative) secured by cryptocurrency blocked in staking. It turns out that most private stakers will not be able to directly initiate a withdrawal. And when you consider that almost all the big players are at a loss, they won't be in a hurry to do so either. So, all that's left for us to do is to see how successful the renewal is. In our opinion, Shanghai is another step for Ethereum to achieve global mass adoption and secure its status as a true industry engine. Impact on the Ethereum Price The complete withdrawal option will reduce the number of validators in the network, but the intensity of this effect depends on the number of validators using this option. The Beacon chain's totally blocked value (TVL) may be depleted as stakers claim their staking rewards and give up their assets. How this affects the Ethereum price depends on what most validators decide to do with their rewards and uninvested assets. The market is incredibly difficult to predict, and popular assumptions may not work. However, there is a daily withdrawal limit to limit the update's impact on the market price of Ethereum. Impact on Other Market Tokens Price In addition to ETH, Shanghai update Ethereum can also significantly affect the tokens of liquid-staking services such as Lido, Rocketpool, Stakehound, etc. These platforms issue Liquid Staking Derivatives (LSD), tokens representing staked Ethereum. Thanks to them, any amount of money can be invested in ETH staking, which will not be blocked under any circumstances. After the Shanghai Ethereum update, the value of these platforms' native tokens may also change. And it will most likely be directly correlated with ETH (if ETH price goes up, LSD tokens will go up too). Still, with more dynamics, especially in case of decline – ETH is interesting by itself, while LSD is interesting only if the currency underlying their derivatives grows. Ethereum Prospects: Will the New Update Give the Project a Boost or Collapse its Price? The new update of Ethereum has become a widely discussed event that has undoubtedly changed the course of things within the concept of its blockchain development. Some experts argue that due to the latest update and the sharp decline in staked coins, the price of ETH digital assets could plummet, affecting the state of altcoins. On the other hand, many experts point out that thanks to the renewal of Shanghai, the coin will be able to renew not only the annual price highs but also set new records in the nearest future, despite the insignificant and short-term outflow of funds due to the withdrawal of blocked coins by the validators. Anyway, it’s possible to expect two scenarios. Ethereum Price Rising The main factor influencing the price of ETH is staking. Thanks to the Shanghai network update, more users will hold and contribute their ETH to staking, which favors the price increase. Ethereum's staking ratio will rise due to the ability to withdraw ETH because investors who previously worried about their money could earn higher returns without experiencing a drop in liquidity. As a result, we should expect ETH's price to increase so long as big institutions continue to acquire ETH and add it to their stakes to earn 5% APY without sacrificing liquidity. Ethereum's Shanghai update will address several urgent user and developer issues, from lower gas fees to fewer transaction errors. The Ethereum Foundation also promises little to no delays in the buildup to the Surge release because these changes will be implemented before the next Ethereum upgrade EIP-4844: Proto Danksharding update is made available. Ethereum Price Fall As a result of the and FTX collapses, there is still a gloomy feeling in the crypto industry, and significant businesses are failing. Another way to characterize macroeconomic issues is as pessimistic, given that the Federal Reserve is still raising interest rates and that U.S. inflation is still well below the 2% target. Due to the possibility of a bear market, this may compel the initial users who started ETH staking in December 2020 to sell their ETH and obtain greater liquidity. This is why the Ethereum Foundation implemented a daily withdrawal cap of about 40,000 ETH, which should lessen selling pressure and lower ETH's volatility in the short term. Terra Luna It is assumed that the Shanghai upgrade, among other things, will affect how institutional investors will interact with the coin. On the one hand, we can assume that private investors will be more willing to invest their money knowing that new updates plus Bitcoin's dominance always grow exponentially, and over time the investments will bring good returns.  On the other hand, will be more willing to invest their assets in ETH liquidity pools, knowing that they can access them and cash them out at any moment. liquidity providers Conclusion Shanghai update was undoubtedly one of the most significant upgrades in the history of the crypto project Ethereum, which today is a kind of technological basis for developing new decentralized applications working with the help of smart contracts. It is one of the most promising cryptocurrencies on the market, with great potential to become a benchmark of quality blockchain solutions developed for practical use in different areas of the financial system.

Ethereum Shanghai Update: A Bold Step Towards the Future or a Risky Jump Off the Cliff?

As a result of its , Bitcoin has changed the way people think about how they make money online, as well as how they pay one another for goods and services. The value of Bitcoin is a result of its limited issuance and complexity of mining, which makes it the most expensive cryptocurrency currently available on the market. One of the most anticipated and significant developments in the network is the process of reducing the rate of new coin generation. emergence in 2009 Bitcoin The purpose of this article is to explore what Bitcoin halving is and what its purpose is. The article will also discuss how the process of Bitcoin halving works, what its implications for the crypto market are, and whether there are potential risks that this event can entail. KEY TAKEAWAYS The process of halving Bitcoin is a halving of the rewards miners receive for mining. Halving helps to slow Bitcoin's inflation, boost its value and price, and strengthen the decentralization of the blockchain. Bitcoin halving occurs every 210,000 blocks every four years, reducing the reward of miners by two times. What is Bitcoin Halving, and What is Its Purpose? What happens when Bitcoin halves? Bitcoin Halving is an automatic decrease in profitability from an activity called , as a result of which, for each mined block in the network, miners receive half the reward for the same amount of time spent on its mining. A block on the Bitcoin blockchain network is a file that stores 1 MB worth of Bitcoin transactions. Mining and halving occur not only for Bitcoin but also for many other coins, such as Litecoin, Zcash and BitcoinCash. mining The halving process is a significant element within the Bitcoin ecosystem and is a powerful mechanism, the practical application of which allows you to achieve several important goals in maintaining the stable and uninterrupted operation of the Bitcoin blockchain. 1) Slowing Inflation The main goal of halving is to curb the rate by reducing the issue of new coins proportionally. The algorithms of cryptocurrencies like Bitcoin do not allow you to print an infinite amount of money. The supply of Bitcoin is limited to 21,000,000 coins. Due to the halving mechanism in the Bitcoin network, the supply of coins is growing progressively and noticeably inferior to the growth rate of demand for them. Each time a halving occurs, the issuance rate of new coins decreases, which balances the growth in the currency supply and prevents unlimited inflation. cryptocurrency inflation 2) Stimulating the Growth of Cryptocurrency Value Bitcoin halving directly affects its value change per unit of time. Each halving decreases the flow of new coins into circulation, increasing the price of Bitcoin — supply decreases while demand continues to rise. This phenomenon is an economic law that works not only in the crypto market but also applies to other financial markets and trading instruments. Bitcoin's price is expected to rise exponentially, with each halving as mining approaches the maximum number of coins that can be mined online. 3) Strengthening Decentralization Bitcoin halving also helps strengthen the decentralization of the digital asset blockchain because, after each decrease in the number of rewards for a mined block in the network, miners must work harder and more efficiently to be able to receive the same amount of block rewards as before. As the crypto mining industry, especially within Bitcoin, develops at a very rapid pace, halving can also help increase the number of miners, which increases the security and reliability of the entire network. FAST FACT According to calculations, the Bitcoin Halving will end in 2140, when the last coin out of a total of 21,000,000 coins will be mined. How Does Bitcoin Halving Work? The concept of Bitcoin halving is inextricably linked with mining, which requires Bitcoin miners — users with programming and crypto industry knowledge who use powerful equipment to solve cryptographic equations and add new blocks to its blockchain — to generate new blocks in the network and increase the total supply of coins in the crypto market (emission). For their activity, which is considered the only way Bitcoin is issued, there is a special reward that is periodically halved as well. To create a freely marketable digital currency (not tied to the dollar, gold, or another measure of value), there must be a shortage of such currency, which in the digital environment means designing the system for its accumulation so that mining of digital assets becomes a complex "puzzle" that requires a laborious and time-consuming process to find a solution. Each miner who successfully solves the "puzzle" is allowed to record a set of transactions and receive a reward in the form of cryptocurrency, and the more resources and effort a miner spends to obtain this reward, the more chances he has to solve the "puzzle" faster than his competitors, which encourages miners to invest in the mining process and ensures that cryptocurrency production is decentralized. Thus, mining is done in a competitive environment. The process of halving Bitcoin happens every 210,000 blocks (or about every four years). In 2009, the remuneration of miners reached 50 BTC. On November 27, 2012, the first Bitcoin halving occurred — the number of coins dropped to 25 BTC. On July 9, 2016, when the second Bitcoin halving event occurred, the mining rewards dropped to 12.5 coins. Finally, on May 11, 2020, the last third halving occurred — the reward was halved again (to 6.25). At the next Bitcoin halving, the block reward will be 3.125 coins. A total of 32 Bitcoin halvings are programmed in the network, and as soon as 21 million BTC is released, the mining of coins will be stopped immediately. The fateful event is expected around 2140. So, under the Proof-of-Work algorithm, miners create new blocks by performing mathematical operations. Miners receive new Bitcoins as a reward for their work. They also replenish the circulating supply of coins on the market, significantly affecting the price. Accordingly, halving influences the financial well-being of individual miners and the overall macroeconomic situation. What are the Consequences of Bitcoin Halving for the Crypto Market? Historically, the entire cryptocurrency market directly correlates to the . Each halving of the coin, reducing the amount of remuneration to miners for mining new blocks and thus increasing its value, has a huge impact on both individual investors and the crypto market as a whole. After each Bitcoin halving event, its price grew significantly over the next 6–12 months, reaching new record highs in each cycle. Bitcoin price Consequences for Miners generates mining fees when a transaction on the chain occurs. Since many miners find the next valid block at intervals of every 10 minutes, the block reward becomes a payment to the miner in exchange for creating a block in the agreed-upon chain. Cryptocurrency mining As a rule, after each Bitcoin halving, the miners' remuneration is significantly reduced, namely by half, which not only automatically reduces the profitability of mining but also increases the cost of the power required for the halving process. An increase in the cost of equipment for mining a coin can negatively affect the performance of private miners compared to mining companies since, in many cases, the former do not have enough cash and other resources compared to the latter. On the other hand, halving fuels miners' interest in altcoins, as their mining conditions may be much more economically and technically attractive. This will contribute to the rapid growth of those altcoins, their market capitalization, and their overall importance in the cryptocurrency ecosystem. Consequences for Investors The investment attractiveness of any asset is dependent on the future prospects of its growth. The value of Bitcoin is unquestionable, and its reliability has been proven over time, which makes it the most expensive crypto asset on the market. Nevertheless, with every halving, the price of the coin is growing rapidly, which forces many investors to reconsider their views on the purchase of this asset due to the lack of capital for its acquisition. As a result, many market participants are diversifying their investment portfolios and buying other assets which, in theory, have greater prospects for growth and development in the future. Consequences for Crypto Market The fact that the price of Bitcoin directly impacts the market may seem like a non-obvious point to some, but it is true. Since today, Bitcoin is the most popular currency on the market and, as a result, the most attractive trading instrument due to high supply and demand indicators, changes in its price have a bell effect on the entire crypto market. Since Bitcoin is considered to be a kind of benchmark in the crypto world and the main reference point for the direction of movement of market sentiment, one can observe serious changes in the value of many altcoins with fluctuations in Bitcoin's exchange rate. The increase in interest in individual coins occurs against the backdrop of their increasing or decreasing in relation to Bitcoin. Altcoin value changes are observed not only after each Bitcoin halving but also in response to news and other factors that affect BTC prices directly or indirectly. Are There Risks Associated with Bitcoin Halving? A systematic 50% reduction in remuneration for the work done is associated with certain risks. Despite the positive impact that halving has on the Bitcoin blockchain, it also carries certain negative consequences, which can be expressed in the following: Reducing the Number of Miners As mentioned earlier, the main driving force behind mining new coins are rewards received for each block mined. The decrease in the remuneration provided to miners that occurs at every halving can make Bitcoin mining less profitable, leading to a decrease in hash rates. This could make Bitcoin less secure, as there will be fewer miners to process transactions and protect the network. Since the difficulty of mining increases with each halving, it is assumed that in order to solve the problem of decreasing hash rate, methods will be applied to increase the overall power of the equipment by expanding existing equipment or using different algorithms in the form of programs and services. Increasing Centralization To date, Bitcoin is considered the most decentralized digital coin, the control of which is completely excluded from ordinary investors, companies and government agencies. The unfortunate consequence of the halving in the form of an outflow of active miners in the network can provoke the market to move towards a more centralized system, in which a significant part of all mining power will be controlled by several large pools, which can create a potential risk to the stability and security of the network. As a result, it will become more vulnerable to manipulation and hacker attacks. Conclusion The Bitcoin halving is undoubtedly a significant event taking place in the blockchain. It plays an essential role in ensuring a stable balance between supply and demand for Bitcoin. Acting as the main mechanism for regulating the emissions of the first crypto asset, halving helps to create favorable conditions conducive to both equal competition between miners and profitable trading in the crypto market.

What is The Bitcoin Halving and What Impact Will It Have on the Crypto Market?

¿Qué es el halving de Bitcoin y qué impacto tendrá en el criptomercado?

Qu'est-ce que le Bitcoin Halving et quel impact aura-t-il sur le marché de la cryptographie ?

बिटकॉइन हॉल्टिंग क्या है और इसका क्रिप्टो बाजार पर क्या प्रभाव पड़ेगा?

ビットコインの半減期とは何ですか?それが仮想通貨市場に与える影響は何ですか?

O que é o halving do Bitcoin e que impacto ele terá no mercado de criptomoedas?

Bitcoin Halving là gì và nó sẽ có tác động gì đến thị trường tiền điện tử?

比特币减半是什么？它将对加密市场产生什么影响？

The development of digital technology was an innovative breakthrough at the intersection of finance, which was the foundation for the creation of and cryptocurrencies. Recently, many crypto-industry experts talk and argue about cryptocurrencies, but often overlook the fact that the phenomenon of cryptocurrencies and blockchain technology has demonstrated many new possibilities in finance, one of which is the Central Bank Digital Currency (CBDC). blockchain technology This article will shed some light on what CBDCs are and what role they play today. In addition, we will look at the essential advantages and significant disadvantages of this technology and find out which countries are developing CBDCs today and their practical implementation chances. Ultimately, you will learn what the future holds for CBDC technology. KEY TAKEAWAYS CBDC is a third form of state money, a digital form of the national currency denominated in the national monetary unit and serving as a means of payment and account measures to regulate the exchange of value and preserve value. On the one hand, CBDCs can reduce the issue of national currency and the level of dollarization in the world, but on the other hand, carries the risk of cybercrime. It is assumed that the introduction of CBDC will help improve the financial stability of financial institutions and payment systems, which will completely transform the existing economic structure. What is CBDC and What Role Does it Play Today? , or Central Bank Digital Currency, is a financial instrument that continues the development of cryptocurrency and blockchain technology with some limitations and is intended for implementation in the state economic system. This digital currency is an alternative version of the paper and non-cash money in the territory of a state. Among other things, it serves as a measure of value, accumulation, and payment system. CBDC There are many applications for central banks (CBs) to use blockchain technology in their operations, from optimizing the settlement of securities markets to issuing bonds and managing cash flow. However, one of the key applications of distributed ledger technology for central banks is the issuance of central bank digital currencies, which can be used in both national retail and cross border payments. The issuance of involves the modernization of existing technologies of providing central bank settlement and payment services, as the introduction of a new form of money into international monetary system circulation, leading to increased efficiency in the functioning of modern financial systems. CBDCs The widespread introduction of central bank digital currency may lead not only to global changes in payment, clearing, and settlement mechanisms but also affect the composition of the monetary base and the structure of the money supply, change the functions of commercial banks, and the competencies of central banks in the financial and payment systems, and have to influence the conduct of monetary and macroprudential policies. Important Advantages and Significant Disadvantages of CBDC Technology CBDC, like any other technology, has its advantages and disadvantages, as well as many distinctive features that allow it to gain confidence from different states already engaged in creating the digital analogs of their national currencies. Being a digital form of the national currency of a single state, CBDC technology is designed to improve the financial system due to the following advantages. Advantages of CBCD Technology Let's start by looking at the merits of the technology, which is intended to change the idea of what digital money is. Reducing the Number of Banknotes in Circulation Today, every country in the world has its own currency, which is used for mutual settlements between states, companies, and even ordinary citizens. The state of each country independently calculates the amount of currency to be issued and, in accordance with certain criteria, regulates this volume. Introducing CBDCs into the economy will help to significantly reduce the amount of paper money in circulation and eventually completely replace cash with digital money. Decreasing Dollarization of the World Economy The U.S. dollar today is the strongest and most widespread currency in the world, used to pay for all kinds of services and goods and for cross-border transfers. Such massive use and stability of the dollar are due to the historical crisis of many countries that could not pay their obligations in local currency. CBDCs will help to reduce the involvement of the dollar for mutual settlements, as other countries in the world will have the opportunity to strengthen their currency, which will be more reliable and stable in digital form . Financial Stability CBCDs, by their nature, are a digital alternative to existing fiat currencies, many of which are so resistant to various financial crises that they almost always object to investing and saving capital, indicating that they are financially stable regardless of the political or economic situations in the world. Moreover, unlike Bitcoin, the issue of central bank money has no restrictions, which creates the preconditions for their use as a reliable tool for insurance, investment, and risk hedging. Disadvantages of CBCD Technology Now let's look at a few significant weaknesses of CBDCs. Capital Outflow from the Banking Sector Being a highly liquid and risk-free asset, the new currency may begin to compete with deposits in large, systemically important commercial banks. These banks are positioned as the most stable and, therefore, can offer relatively low deposit rates. With near-zero nominal interest rates, even if no interest is paid on the central bank’s digital currency, hypothetical CBDCs could become an alternative to many fixed-income investments and thus make the central banks a competitor to commercial banks in terms of attracting liabilities. Cybersecurity Risks Cybercrime has become a massive problem with the advent of distributed ledger technology. Today, many areas of development of this concept are going through difficult times because attackers have come up with new ways to hack and deceive investors to get tokens, crypto assets, or other financial instruments. Unfortunately, CBDCs are no exception and cannot guarantee 100% safety of funds in either the public or private sector, at least at the moment. Novelty Technology Even though the economic progress of many countries is moving rapidly towards a complete transformation of the financial system, particularly in the public and banking sectors, the economic situation of many countries leaves much to be desired. It does not allow the creation of the infrastructure for implementing the launch and maintenance of CBDC technology. This can become a stumbling block on the way to digitalizing the economy and mutual settlements between financial institutions. CBDC vs. Cryptocurrencies: Which Technology Will Dominate the Future? Conducting a comparative analysis between cryptocurrency assets and CBDCs, we can conclude that these two technologies are very similar, but they are designed to perform completely different tasks. The main difference between CBDC and cryptocurrencies is centralization. CBDC operates under the supervision of a single supervisory authority. That is, the central bank controls its issuance and circulation. Meanwhile, cryptocurrency does not fall under the direct influence of financial regulators. If cryptocurrency uses consensus algorithms to validate transactions, CBDC does not need a blockchain to work effectively because the central bank will validate transactions. CBDC is a new payment instrument characterized by absolute centralization, closed (we cannot see all transactions in the blockchain, only the Central Bank), and a lack of anonymity. Cryptocurrencies are the opposite of CBDC because it is characterized by decentralization, transparency, and anonymity. Moreover, CBDCs still need to solve the main problem of fiat money – inflation. The issuance of new units of CBDC, just as with traditional fiat, is fully controlled by the central bank. That means no halving and burning of tokens, no impartial smart contracts. Thus, CBDC is not a competitor for cryptocurrencies, and it cannot be unequivocally stated that central bank money will be able to displace cryptocurrencies anytime soon. The reason for this is straightforward – cryptocurrency exists in a different plane – a parallel financial, non-state system and is completely decentralized. It can be assumed that the CBDC technology will not only not be able to force crypto assets out of the financial system but also will increase financial inclusion, becoming a catalyst for even stronger development of the crypto market and the influx of even more new users who are not ready to accept the total control of the central bank of the country. FAST FACT According to the as of 2023, 20 countries in the world are actively developing CBDC and are going to introduce the technology into their financial system soon. research Which Countries are Developing CBDCs and What are the Chances of Practical Implementation? CBDC today is a new, immature concept, the mere expediency of which is still debated among experts in both the crypto industry and other financial fields. Many rightly believe that the elaboration and implementation of CBDC are extremely premature. Others argue that this technology will become a life jacket for the global economy, especially in times of crisis. However, there are already countries today that are actively developing their own CBDC infrastructure in order to keep pace with progress. Below is a list of some of the most ambitious of them. Bahamas In October 2020, was issued by the Central Bank of the Bahamas. It was the first nationwide CBDC in the world. In the Bahamas, part of the population cannot access financial services because it is unprofitable for commercial entities to operate in all areas, partly due to the country's geography, which is divided into many islands. Consequently, an estimated 20 percent of the population still needs a bank account. The Sand Dollar The Sand Dollar is supposed to help improve financial inclusion and strengthen protection against money laundering and illicit economic activity. CBDC users must go through the Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance processes. Nigeria Nigeria became the first African country to launch a CBDC last October. is stored in a digital wallet and can be used for contactless payments in stores, as well as for transferring money. By the end of January 2021, almost 700,000 users had downloaded the eNaira wallet. eNaira China China became the first major economy in the world to try out digital currency in April 2020. The People's Bank of China aims for widespread domestic use of the , or digital yuan, and aims to completely transform the economy through digital assets. According to the IMF, China now has more than a hundred million individual active users transacting in the billion-dollar range. e-CNY Jamaica On August 9, 2021, the Central Bank of Jamaica began issuing its CBDC, the Jamaica Digital Exchange, or . The Jamaican government considers the accelerated transition to a digital society and economy vital to the development of the economy. Also, the state government has stated that the expected benefits of the CBDC include increased financial inclusion, as it will provide another, more easily accessible means of making payments and moving away from financial intermediaries. Jam-Dex Uruguay The Central Bank of Uruguay has launched a pilot project to introduce a national digital currency called . An official statement from the country's central bank stresses that the digital peso will be regulated similarly to the ordinary Uruguayan peso, but will have technological support. e-Peso CBDC Prospects in the Near Future From a theoretical point of view, the emergence of central bank digital currencies can be justified by the key provisions of credit monetary theory and the state theory of money. The need for the evolution of fiat money in general and central bank money, in particular, is determined not only by socio-economic processes associated with the adaptation of modern monetary forms to the changing needs of economic agents but also by the need for the state to maintain control over the issuance of money. Although the introduction of central bank digital currencies does not lead to the transformation of the modern fiduciary monetary system, it symbolizes a new stage in the development of fiat money. For the first time in economic history, universal central bank money, one of modern money's basic components, is digitized. In this regard, the emergence of a new form of money is no less significant than the evolution of their types. The main motives that drive central banks to implement digital currencies for settlements are to increase the efficiency of cross-border payments and improve trade finance tools and capital market settlements. The security and efficiency of retail payments, as well as financial inclusion, are critical reasons for central banks to introduce digital currencies into the future economic system. On the other hand, factors such as maintaining financial stability, maintaining monetary sovereignty, and de-dollarization of the economy also play an essential role in determining the future of CBDC. Conclusion Undoubtedly, the implementation and practical application of CBDC will contribute to the elaboration of mobility and transparency of the settlement system of each country in the world, facilitate mutual settlement processes, as well as allow for investment cooperation. On the other hand, the introduction of CBDC technology will undoubtedly stimulate the development of fintech and increase competition between technologically advanced banks and other financial institutions.

CBDC vs. Cryptocurrencies: Which Technology Will Dominate the Future?

CBDC vs. criptomonedas: ¿Qué tecnología dominará el futuro?

CBDC contre crypto-monnaies : quelle technologie dominera l'avenir ?

CBDC बनाम क्रिप्टोकरेंसी: कौन सी तकनीक भविष्य पर हावी होगी?

CBDC vs. 暗号通貨: 未来を支配するテクノロジーは?

CBDC vs. Criptomoedas: qual tecnologia dominará o futuro?

CBDC so với tiền điện tử: Công nghệ nào sẽ thống trị tương lai?

CBDC 与加密货币：哪种技术将主导未来？

Bad user experience is one of the main obstacles to widespread crypto adoption today. General mainstream users do not think about decentralization or the potentially bright future the will bring — they just want safety and user-friendliness right here and right now. DeFi And that's where modern web3 falls short. For many, getting into the world of smart contracts, understanding blockchain concepts, and even setting up a crypto wallet seems way too complicated. Not to mention, for example, that you can lose your seed phrase easily, and your funds will be gone forever. However, Ethereum's latest implementation of EIP-4337, deployed on March 1st, 2023, addresses the UX problem with a solution called Account Abstraction. But what is it? Is it really going to change the whole ? Let's find out. web3 landscape Two Types of Ethereum Accounts First of all, let's touch on some basics that will help us further understand the concept behind account abstraction. There are two types of accounts in the Ethereum ecosystem: Externally Owned Accounts (EOAs) These accounts are controlled by individuals and do not have any complicated code within them. Such accounts have a pair of keys — private and public — which are needed for confirming and executing transactions. One obvious example of an externally owned account is MetaMask Wallet. Contract Accounts These accounts are basically smart contracts which are controlled by the code. Contract accounts do not require users to perform the transaction manually and do not have private keys. So, the main difference between contract accounts and externally owned accounts is that the former is governed by code, while the latter is dictated by users. This is important to understand. Smart contract accounts can execute whatever logic is programmed into them (anything and everything the programmer wants), whereas EOAs just sign transactions on the blockchain. EOAs: Why They are Less Than Ideal Horrible Onboarding Experience Until recently, the only way users could interact with the network and do specific operations like transacting funds between wallets or buying was only through externally owned accounts. NFTs For blockchain developers or those who have been in the space for a while, using an EOA is a familiar process. However, for novices and older generations, this is rocket science. From setting up a wallet, generating and remembering the private key, to purchasing funds, paying gas fees every time you want to transfer the coins, and not messing up with addresses — it's all too complicated for those who are used to the convenience of modern banking services, which allow you to send money just by clicking one button. And it doesn't end there. Risks are High When you use EOAs, you need to be extremely careful with your private keys and seed phrases. Losing them might be fatal, as you won't be able to access your funds anymore. And if your private key is stolen, hackers will have full access to all your digital money. In a traditional banking system, even if you lose your card, the bank can always block it and send you a new one. No wonder only a small fraction of users are ready to take the risk. And even for savvy users, who are aware of all the possible risks and know how to protect themselves, working with EOAs still brings certain psychological tension. The Idea Behind Account Abstraction To make blockchain technology more accessible and user-friendly, Ethereum developers came up with the concept of Account Abstraction. It's an idea of letting users interact with the network through smart contracts instead of EOAs. But why, though? Well, a smart contract wallet can be more versatile than EOA, as it has the ability to contain distinct rules and settings. This gives contract accounts a much wider range of capabilities. For example, Account Abstraction and contract accounts will let one user have different private keys (for one wallet), which will be distributed among a pool of trusted individuals and devices. If the user loses access to his primary key, he can turn to these individuals and recover access to his funds. And this is only one way the Account Abstraction could make the user experience better. According to Yoav Weiss, a co-author of EIP-4337 alongside Vitalik Buterin: "Account abstraction is a way to appeal to the next billion users." How Account Abstraction is Implemented Account Abstraction is implemented through , which is often used interchangeably with ERC-4337. EIP-4337 However, in fact, these two abbreviations are different — Ethereum Improvement Proposal (EIP) must first be accepted by the on-chain governance system before it can become an Ethereum Request for Comment (ERC). Also, ERC is just one component of EIP, and it mainly discusses protocol and development guidelines. Before EIP-4337, proposed in September 2021, there was a range of other EIP related to account abstractions on ETH: s — The proposal was centered on giving smart contracts the ability to start and authorize transactions. EIP-86 in 2016 — The proposal aimed to create a new transaction type. EIP-2938 in 2020 — The proposal focused on delivering self-executing smart contracts more efficiently through the use of a new opcode (smart contract building block). EIP-3074 in 2020 None of these proposals were implemented for one simple reason — they all , and this can't happen without a consensus agreement. required changes to the underlying Ethereum network infrastructure The EIP-4337 is different in that it . Instead, it proposes to doesn't require any protocol changes build a higher-level infrastructure on top of the existing one. In fact, ERC-4337 has already been implemented since March 1st, 2023, and developers can already build apps using the new logic. How Account Abstraction Works The whole process looks like this: A smart wallet triggers a " ," a pseudo-transaction object, which is then added to the special . This mempool is essentially a queue of transactions (though it differs from Ethereum's regular mempool). UserOperation mempool Then, , new decentralized operators, act like miners or validators. They retrieve UserOperations from the mempool, package multiple user operations into a single transaction known as a "bundle transaction," and then, bundlers send "the bundle" to a global smart contract known as the " *.*" bundlers EntryPoint In the next stage, another function called " " receives the bundle and sends the information to the validation through " " and executes the operation. handleOps validateUserOp Bundlers will pay for the transaction fee (gas) associated with the operation or will be recompensed either by the user's contract account or by a third party known as a "paymaster," which could be a decentralized app or a wallet. Fast Fact: , a wallet and infrastructure provider, recently deployed the first production-grade bundler on the mainnet. However, more bundlers are expected to be made available in the near future due to the decentralized infrastructure and permissionless nature. Stackup How Would Account Abstraction Benefit Users Account abstraction brings many advantages to users of any level: Better User Experience Ethereum Account Abstraction will offer developers of smart contracts, wallets, and applications more freedom when it comes to innovating the user experience, as they will have the ability to set up account rules through the code. This will allow easier onboarding and an overall level of services and convenience comparable to that of traditional banks. Better Security New account logic will make apps operating on ETH even more . Account abstraction allows developers to integrate many exciting features, such as: secure — You could share authorization credentials with multiple trusted individuals or devices. Developers could also configure contracts in such a way that transactions of a certain value require authorization from a certain percentage (e.g., 3/5) of the trusted parties before they can be executed. Multi-signature authorization — In the event of a lost or compromised device, your account can be safeguarded from any other authorized devices to keep your funds safe. Account freezing — With EOAs, losing a device or forgetting a seed phrase could leave you locked out of your assets indefinitely. Fortunately, with smart contract wallets, you can establish trusted accounts that would permit new devices and reset access. Account recovery — Instating daily limitations on the quantity of value that can be transferred from your account in one day, week, or month ensures that if a hacker were to gain access to it, they would not be able to clear out everything quickly. Transaction limits — To ensure the utmost security of your funds, you can only initiate transactions to addresses you know are secure. If a malicious individual were to obtain access to your private key, they would be unable to transfer funds to an unwhitelisted destination. And even then, such changes can only occur once multiple signatures validate them — meaning if an attacker wants their address included in this list, it must first obtain several of your backup keys as well. Whitelists Better Gas Management Account abstraction improves gas management as well. Applications have the capability to cover not only users' gas fees but also enable payment of such costs by third parties — with tokens other than ETH. This way, users do not need to maintain an ETH balance to fund their transactions — smart contracts will swap user tokens with ETH automatically. Trusted Sessions Many apps, particularly games, can benefit from the implementation of trusted sessions, as there is a large number of small transactions that need to be validated in a short amount of time. Manually approving each and every transaction would interfere with the game experience; however, giving permanent approval is unsafe. Smart contract wallets could provide an alternative solution by allowing certain transactions to be approved for a predetermined time, up to a certain value, or only for specific addresses. Better Online Purchasing Today, every single transaction requires proof that the right token is currently loaded in your wallet. But with account abstraction technology, it's like shopping online — you fill up a "basket," click buy, and all necessary logic is handled by the contract instead of manually inputted by the consumer. Subscriptions in Crypto are Now Possible With contract accounts, you can make "pull" payments that are initiated by a biller. For instance, an electricity company could set up a programmed payment contract and dictate its rules, such as the amount it will charge each month or how often in one day it will initiate payments. After users approve these predefined pull payments through their contract account, automated bill repayments can be made soon after payday arrives. Blockchain has now become remarkably useful in a wide variety of payment applications. Final Thoughts By leveraging contract accounts, developers are liberated from the restrictions of existing EOAs and can bring advantageous elements from web2 to web3 without losing the decentralization they strive for. Here we've just touched on a few examples of how user experiences could be optimized by Account Abstraction, yet there is boundless potential for imaginative new ideas that have yet to emerge!

What is an Account Abstraction on Ethereum? How Will It Contribute to Crypto Adoption?

¿Qué es una abstracción de cuenta en Ethereum? ¿Cómo contribuirá a la adopción de criptomonedas?

Qu'est-ce qu'une abstraction de compte sur Ethereum ? Comment cela contribuera-t-il à l'adoption de la cryptographie ?

एथेरियम पर अकाउंट एब्स्ट्रैक्शन क्या है? यह क्रिप्टो अपनाने में कैसे योगदान देगा?

イーサリアムのアカウント抽象化とは何ですか?暗号通貨の普及にどのように貢献しますか?

O que é uma abstração de conta no Ethereum? Como isso contribuirá para a adoção de criptomoedas?

Tóm tắt tài khoản trên Ethereum là gì? Nó sẽ đóng góp như thế nào vào việc chấp nhận tiền điện tử?

什么是以太坊上的账户抽象？它将如何促进加密货币的采用？

Cryptoeconomics is booming today, bringing new solutions to our lives in various industries and accelerating business processes through . Integrating such a technology with real-world applications is a significant step toward mass adoption and acceptance by governments and financial structures. One result of this integration is the technology of decentralized finances, or DeFi, which is transforming the financial sector by limiting the influence of third parties on digital transactions by eliminating intermediaries. blockchain technology What is DeFI and Why Should You Care About It in 2023 DeFi is financial instruments in the form of services and applications based on blockchain technology. The main task of decentralized finance is to become an alternative to the banking sector and replace the traditional technologies of the current financial system with open-source protocols. That is, to give many people access to decentralized lending and new investment platforms and allow them to receive passive income from cryptocurrency assets and save on fees for transfers, loans, and deposits. DeFi stands for decentralized finance, which uses a blockchain network to enable customers to access financial products and services without intermediaries such as central banks and bodies. DeFi was first launched on the Ethereum (ETH) blockchain, an open-source smart contract platform to facilitate the creation of decentralized applications. Ethereum provided the right platform for DeFi's success, and developers widely used the protocol as a robust platform for creating financial services to disrupt the traditional sector. DeFi is emerging as a better alternative to traditional financials without intermediaries to offer a less trusted, cheaper, and more secure system for transferring monetary assets. The advantage of DeFi centers around the use of a blockchain network that provides the technical means for secure transactions (all transaction terms are spelled out in a smart contract)  without a third (trusted) party. Secondly, DeFi offers the opportunity to go beyond financial transactions and create an innovative and dynamic world of real-life applications, including decentralized exchanges, stablecoins, lending and borrowing platforms, and farming. DeFi is used to access blockchain-based financial services, meaning cryptocurrency owners can borrow, lend, earn interest, or trade-in perpetuity without needing a third party. While lending and borrowing are part of the functionality of decentralized financing, individuals can transact tokens through decentralized exchanges or DEX. The total market value of DeFi projects over its history in November 2021 showed an incredibly high value exceeding the $180 billion mark, an all-time high. The Top 5 Most Promising DeFI Projects in 2023 Today, there are an incredible number of DeFi initiatives aimed at revolutionizing the field of decentralized finance, which is evolving at the same rate as other innovations based on distributed ledger technology. Let's take a look at the 5 most promising DeFi projects worth paying attention to in 2023. Compound Compound Finance is a protocol that allows you to borrow and lend cryptocurrency assets without intermediaries. This is one of the most effective ways to circulate your investments, so they stay active in your wallet and the exchange. Any holder of a supported cryptocurrency can deposit it into a composite smart contract, where it will join the and start generating interest. Interest income comes from other users who borrow funds and pay interest on loans. However, there is one caveat. It looked the same as the bank does with the money. But in the bank, as soon as the funds are withdrawn, they cease to bear interest. liquidity pool When funds are deposited, the Compound protocol generates tokens called cTokens. These tokens can then be used as collateral for a loan, meaning the funds can be spent while they earn interest. Thus, if Ethereum (ETH) is deposited in Compound, then an equivalent amount of cETH will be received. Compound's main smart contracts determine the amount of interest earned, which operates based on supply and demand. If many people want to borrow a specific asset, the smart contract increases the interest rate to attract lenders and make the loan more expensive. Compound currently supports nine assets issued on Ethereum, including Tether (USDT), Dai, Wrapped Bitcoin (WBTC), and Basic Attention Token (BAT). MakerDAO It is an Ethereum-based smart contract platform that allows the issuance of DAI Stablecoin secured against cryptocurrencies and real assets. The platform is in first place among DeFi-protocols of the Ethereum ecosystem by the volume of locked liquidity (~$5.8 billion at the end of January 2023). A key advantage of DAI is that it is not run by a private company but by MakerDAO, a decentralized autonomous organization over a software protocol. As a result, all token issuance and burning are managed and publicly recorded using Ethereum-based self-sufficient smart contracts, making the entire system more transparent and less susceptible to corruption. One of the main uses of DAI is stable hedging - that is, insuring against risks from rate jumps of more popular crypto-assets like Ethereum or Bitcoin. DAI's stable price means the token is suitable for investors or traders who think the market is about to fall. Because DAI is stable, it is also one of the ideal . crypto-assets for payments Synthetix Synthetix is an Ethereum-based derivatives liquidity protocol that allows synthetic assets to be issued and traded. Each synthetic asset (or Synth) is an ERC20 token that tracks the price of an external asset; for example, each sUSD token tracks the price of the US dollar and is fixed at 1. Synthetix has many synthetics, including fiat currencies, cryptocurrencies, commodities, and inverse indices. The system can support any asset with a clear price and provides chain access to an unlimited range of real assets. The protocol will provide many trading functions, including binary options, futures, and more. Synthetix consists of a smart contract infrastructure and incentives that support synthetic asset prices. At the heart of this is the value of the Synthetix Network Token (SNX). SNX acts as collateral; The minting of any synthetic asset requires a proportional SNX value lock. Thus, the value of SNX is directly related to the use of the network it provides. To support the system, participants are rewarded with a proportional share of the commission fees arising from activities in the system. AAVE AAVE is the largest decentralized money-market protocol, built on Ethereum and deployed in 6 different Tier 1 and Tier 2 networks. It allows users to deliver and borrow a wide range of crypto assets in a secure, permission-free environment. Users are divided into borrowers and lenders. Lenders contribute assets to the liquidity pool and begin to earn interest proportional to the interest rate of the asset supply. For example, by providing USDT Stablecoin as liquidity, interest on it will also be charged in USDT. For a borrower to take the right asset from the liquidity pool, he needs to leave some assets as collateral. You should always leave more than the loan amount as collateral - this over-collateralization allows AAVE to remain solvent. AAVE works by allowing users to supply assets and borrow against them. Users can contribute their cryptocurrency assets to the AAVE protocol, becoming a liquidity provider and receiving interest in exchange for providing funding. Borrowers can use their cryptocurrency assets as collateral, obtaining loans denominated in ETH or stablecoins such as USDC or DAI. Uniswap Uniswap is a decentralized exchange (DEX) launched in 2018. Operations available on the exchange include cryptocurrency exchanges, currency collateral for , and liquidity pools. The registration process is completely anonymous, and no personal user information is required. staking The platform is built on the Ethereum blockchain. There are over 170 tokens available on Uniswap. You can connect additional lists to the exchange and exchange almost six thousand coins. The exchange fee depends on the load on the Ethereum networks. Users place their funds in pools, providing liquidity on the exchange and getting rewarded for it. The UNI token is the native cryptocurrency of the Uniswap decentralized exchange. It was launched in September 2020 and is used to manage the Uniswap protocol and power its various features. UNI token holders can participate in the platform's governance by voting on proposals to update or improve the Uniswap protocol. They can also earn rewards for providing liquidity to the Uniswap platform and use the token to pay transaction fees on the exchange. How to Get Involved in The DeFI Ecosystem The field of decentralized finance today brings together many areas of blockchain technology development, which can significantly simplify the processes of borrowing, lending, and transactions with various cryptocurrencies, tokens, and stablecoins, as well as using insurance services, issuing tokenized securities, and much more. To get involved in developing this promising area, you need to understand which of the many innovative areas you like best. Among the most popular are the following: Deposits & Loans (Lending Platforms) In the traditional financial system, money is provided to borrowers by lending bodies. Lending protocols (or DeFi lending protocols) allow users to borrow cryptocurrency in decentralized finance (DeFi). DeFi protocols allow peer-to-peer (P2P) lending between network members. This eliminates the need for intermediaries. The interest rates offered on such cryptocurrency platforms are much nicer compared to traditional banking bodies. The interest rate is usually influenced by different factors - what kind of cryptocurrency you hold, how much, and how long you're willing to lock it up for. Depending on the platform, the interest paid for holding cryptocurrency varies, but you can get up to 18% in some cases. Derivative Contracts/Synthetic Assets Derivatives are special contracts whose value is determined by the value of underlying assets - cryptocurrencies, indices, stocks, commodities, bonds, etc. Derivatives are used by traders to hedge transaction risks. Derivatives are now traded mainly on centralized platforms, but DeFi-platforms are already appearing for this purpose. They are protocols for synthetic assets that track the value of the underlying assets and allow access to them without purchasing them. Stablecoins Stablecoins are cryptocurrencies whose exchange rate is always equal to fiat currency. They were created to mitigate the high volatility of digital currencies, which can reach 10% in a single day. One of the first centralized stablecoins was the U.S. dollar-linked Tether (USDT). It is trendy, and yet it has one major drawback - owners have to trust the company issuing the coins that dollar reserves in an appropriate amount actually exist. The Future of DeFI and Where it's Headed Open blockchains are transparent, and with no single supervisory authority over them, they offer a neutral, independent, and tamper-proof infrastructure for financial transactions. Software code is stored and executed in an open system. All data is publicly available and verifiable. This allows researchers and policymakers to analyze transactions, conduct empirical research, and calculate real-time risk indicators. It's easy to envision a move to registries combining payments, tokenized assets, and financial protocols, such as those based on exchanges and credit markets. DeFi is an exemplary example of this trend, but similar changes should be expected in centralized infrastructure. This is because combinability within a single operation is only possible if all assets and financial protocols are in the same registry. In this case, there are powerful network effects. Neither crypto-assets nor central bank digital currencies would have much appeal if they were housed in a registry that did not include other assets or financial protocols. Creating a centralized infrastructure compatible with additional assets and financial protocols is possible. Still, it would be fraught with risk and governance issues due to the inherent characteristics of controlled registries. And this is a strong argument for decentralization, which is the future of DeFi. All of this suggests that DeFi is designed to greatly simplify the interaction of various decentralized financial projects and institutions seeking to expand payment and lending opportunities not only for individual users, but also for businesses, which will greatly simplify, accelerate and optimize the transformation of the economic system. Conclusion The topic of decentralized finance covers numerous different elements, creating hundreds of successful applications in this area today. DeFi projects are also in demand in developed countries, as they offer a more profitable and affordable lending system and open up new opportunities for interest income from investments. At the same time, DeFi protocols in the future make it possible to create an independent infrastructure, reduce the risks inherent in classic financial structures, and can become an alternative to overly centralized solutions, which will help this technology take a strong place in the financial world of the future.

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