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The Idea Behind Cryptocurrency Mining and the Current Trends That You Need to Know

Cryptocurrency mining was driven by power intensive processes till late 2022 , when Ethereum migrated to the Proof of Stake algorithm. Here are insights into the mining process.

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Mining is still one of the best-known crypto related activities. However, it is also one of the most misunderstood, with doubts ranging from what it really does or how much to expect as earnings. It is no doubt an intensive process that has also become a worldwide enterprise since 2015, though it emerged in 2009.

Must-Read: All the Reasons Why the ETH Merge Could Be a Big Deal

What mining means


Mining, in blockchain terms, refers to a competition of sorts that takes place among active nodes within an ecosystem. This competition consists in finding the answer to a difficult math problem that can only be solved by participants via brute force – that is, by trial and error. This answer is a number, and it is referred to as the nonce. The first miner to find the nonce has the right to validate a block of transactions.


It is then the miner’s duty to ensure all the transactions in that block are legitimate in other to be authorized by the group of validators. As a reward for the effort, the miner gets a certain amount of crypto that varies depending on blockchains, which on Bitcoin, for example, amount equals to 6.25BTC for 1 block till mid-2024

Why mining is so expensive

Anyone who has investigated cryptocurrencies, and particularly into crypto mining has seen reports on how Bitcoin mining consumes massive amounts of energy. It can be quite profitable for most people, although it has only become a preserve of organizations, individuals, or parties with special and otherwise costly hardware.


While the above assertions are true for Bitcoin and some other digital currencies, there are still cryptocurrencies that can be mined to some degree without specialized equipment.

The reason mining consumes so much energy is simple: Since finding the nonce is a race, the miner must use the processing power of a mining hardware. Specialized hardware is designed by the manufacturers to specifically perform tasks by brute forcing these problems, but as should be obvious, high processing power usually comes with high energy usage. This is even more true when, as miners usually do, the hardware stays on and runs 24/7.

Read Also: How Staking Works With Ethereum 2.0

On eligibility for mining

Most cryptocurrencies can be mined by anyone, and all you need for this is a computer or even a mobile phone. However, regular computers or phones are not optimized for mining. This leads to low performance, wasted processing power, and poor earnings. Still, many cryptocurrencies can still be mined with regular household electronics. Bitcoin, however, is not one of them.

Why mining is becoming less common

Over the last few years, cryptocurrency mining has become less and less common with new projects. This is both due to the extreme resource intensity of mining algorithms and the vulnerability to 51% attacks that cryptocurrency algorithms must contend with globally.

The touted option to the above is the proof-of-stake model, where instead of wasting resources solving a random problem, nodes instead stake (that is, swap) some of their cryptocurrency in exchange for the chance to authenticate transactions. If the resulting block then passes the proof-of-consensus, a certain incentive then goes to the approving nodes.

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Outlook


The outlook for the cryptocurrency market is one that presents a shift to less energy-intensive algorithms as the Ethereum blockchain has done in recent weeks. With the crypto mining process becoming energy-efficient, its uses and adoption should soar in the years to come

Also Read: These Are The 4 Fastest Cryptocurrencies For Money Transfer Purposes

All the Reasons Why the ETH Merge Could Be a Big Deal

The ETH merge is expected to help the blockchain transition from PoW to PoS protocol. Here are all the insights you need to know in this guide.

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Content

  1. What is the ETH merge?
  2. Why is the ETH merge important?
  3. What are the differences between Proof of Work and Proof of Stake?
  4. Will ETH fees reduce after the merge?
  5. Will Ethereum transaction speed improve?
  6. Will ETH price increase?
  7. I have ETH, what must I do after the merge?
  8. Can I be among the ETH stakeholders that approve or disapprove a block?
  9. Conclusion

Many ground-breaking developments happen in the crypto space now and then, but the proposed ETH merge may be the most revolutionary idea anyone can witness in the crypto industry.

Do you know about the ETH merge or the possibilities it brings to the blockchain world? This article will show why the ETH merge could be a big deal.


What is the ETH merge?


Before this move, speculated to hold around September 15 this year, Ethereum processed transactions using the power-expending PoW (Proof of Work) algorithm. However, the merge will see Ethereum fully transition from the Bitcoin-pioneered PoW algorithm to the PoS (Proof of Stake) algorithm.

Interestingly, Ethereum had proposed the PoS network (called the Beacon Chain) in 2020, but the team didn’t process transactions with the network. Instead, it was a staging area preparing the Ethereum ecosystem for a PoS network upgrade.

Read Also: What Is An NFT Auction? Here Are The Vital Insights


Why is the ETH merge important?


Crypto critics often come against the industry, making claims about its volatility and extreme power consumption. While the issue of volatility may need readdressing, the inflated rate of crypto power consumption is undeniable.

With the merge, crypto energy consumption will drastically reduce up to 99 percent. Moreover, this development will positively influence the energy sector, our physical environment, and the fees included in crypto transactions.


What are the differences between the PoS (Proof of Stake) and the (Proof of Work) algorithm?


The proof-of-work algorithm is the pilot method for verifying blocks in a blockchain transaction. And so, the earliest cryptocurrencies like Bitcoin and Ethereum use the PoW algorithm.


The PoW algorithm consumes large amounts of energy when processing a block. The reason for the enormous power consumption is the amount of work needed to solve complex computational or mathematical questions.


After a complex math question is solved, the block is verified, and the miner gets more tokens as a reward. On the other hand, the PoS algorithm does not rely on solving complex computational puzzles to mint coins. Instead, computers on the blockchain with the highest stakes determine whether a block is verified.


On the Ethereum blockchain, stakeholders with $50,000+ worth of ETH can participate in verifying blocks, resulting in a massive reduction of the typical computational energy required to verify blocks.


Will ETH transaction fees reduce after the merge
?


Ethereum transaction fees will remain the same, primarily because the payments do not depend on the Ethereum mainnet. Other third-party platforms have lower ETH processing fees, Arbitrum and Optimism. These platforms process ETH transactions away from the Ethereum mainnet.

With the introduction of network updates – danksharding and proto-danksharding – the Ethereum network may see a significant slash in transaction fees. However, that’s a development we may not see until 2023.


Will Ethereum transaction speed increase because of the merge?


Unfortunately, the transaction speed will only increase by a fraction after the merge. With the PoW algorithm, blocks take 13-14 seconds to process. But the merge promises 12 seconds per transaction, which is relatively insignificant.


Will ETH prices go up after the merge?


Nobody can say for sure whether ETH prices will rise or fall. The merge comes with many uncertainties that make it difficult to predict the price. A significant uncertainty is the security of the PoS system in contrast with the PoW algorithm.


However, the massive energy reduction and the change in how ether is distributed are likely positive trends that can significantly increase the price of Ethereum.


I have ETH; what must I do after the merge?

Ethereum users don’t have to do anything after the merge, as it won’t affect their holdings. The significant change the merge brings is in how the blocks are verified, which has nothing to do with existing users.


Can I be among the ETH stakeholders that approve or disapprove of a block?


Any user with ETH holdings worth $50,000 or more can participate in the PoS governance protocol. Although, your holdings won’t guarantee that you must verify the block, as the system chooses the node with the highest stake.


Conclusion

The ETH merge is revolutionary for the Ethereum blockchain and our physical environment. But more than that, it might just be the move that changes how people perceive blockchain and cryptocurrencies.

Read Also: How Yield Farming Works With MoonSwap

How to Reverse a Wire Transfer?

Wire transfers are commonplace globally, but what can go wrong in the process is less talked about. Here are insights on how to reverse a wire transfer,

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Money transfers can go wrong for a variety of reasons and when this occurs, the sender has to know what to do. If you know how to reverse a wire transfer, when errors occur, you could get a way out. Electronic money transfers happen globally, making them convenient. Bu,t speed can become a disadvantage if something goes wrong.

In this guide, we have provided the needed information on wire transfer errors and reversals.

How to make a wire transfer?

In the first place, you can do a wire transfer by using a banking app on your mobile or desktop device. You can also walk into your bank to conduct a wire transfer transaction. Whether you can use an app or resort to a banking hall visit depends on your service provider.

The details needed for a wire transfer are:

  • Sender’s name and address
  • Sender’s bank account number
  • Beneficiary’s name and address
  • Beneficiary’s bank account number
  • Beneficiary’s bank SWIFT/IBAN code (mostly for international transfers)
  • Value of transfer and currency
  • Assent to terms and conditions (with signature appended, where required)

Quick wire transfer facts

In many countries, cases of unsuccessful wire transfers are not uncommon. According to a 2021 report by Vibepay, the following statistics were highlighted:

  • At least 28% of wire transfers sent to the wrong account could not be reversed by the sending banks
  • Up to 33% of individuals who made wire transfers with the wrong details had to resort to their banks to cancel such. Recoveries were made within six days of such remedial actions
  • The money transfer algorithm recognized up to 25% of such wire transfers with wrong input or unmatched beneficiaries and immediate reversals were made

Can a wire transfer can go wrong?

Yes. When a there are errors in the details provided for a wire transfer, the process can go wrong. The errors recorded can make it impossible for the intended recipient to receive the funds, and if there is an inadvertent match for the details provided, the funds could be lost forever.

Recovery of funds when there is an unintended beneficiary has a slim chance to succeed. Even when the complaints are filed, the receiving bank can use its internal systems to attempt to reverse the wire transfer, but no obligation exists here. The recipient has to be willing to assent to the wire transfer reversal for it to happen.

 Instead of leaving your fate to chance, always double-check your details before completing a wire transfer transaction. There are internal mechanisms provided by some banks to ensure that an intended beneficiary’s details are verified using a lookup tool. If such an option exists in your bank, you can make use of it.

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How to cancel a wire transfer

Cancelling an international wire transfer will take a longer processing time than domestic transactions. The geolocation of sender and beneficiary has to be taken into consideration here. Transfers within North America will sail through faster during reversals than any other between two continents.

Transfers within the same network such as domestic transactions are likely to be barred for inconsistent information immediately the beneficiary’s details are provided. If there is any entry that escapes the first line of check of beneficiary details, a reversal could proceed fast and get completed by the bank within a week. Other problematic cases could linger for a longer time.

SWIFT transfers usually take up to three working days to process and reversing such can take up to a week or more if it is a case of wrong account destination. The recipient bank would reverse the transaction if no account type matched the beneficiary as intended. If there is an inadvertent match, the sender has to file a complaint so that the sending bank can request a reversal. Again, this can become a tussle if the unintended recipient is not honest.

Conclusion

With wire transfers, it is always best for the sender to take the necessary steps to avoid errors. Whenever a wire transfer error occurs, the sender should register an immediate complaint to increase the chances of a wire transfer reversal going through successfully.

Must-Read: As Blue Chips Acquire Bitcoin, Here Is The Pathway To The Future

NFT Staking Guide: What It Is And How It Works

NFTs have emerged as an attractive extension of cryptocurrencies and the possibilities of blockchain. Here is how staking works with NFTs.

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One of the hottest trends in the industry today is the idea of “NFTs”. What is NFT? It is a special kind of token that represents a digital asset or physical item.

For example, a token that represents a digital art piece that you’re selling on the NFT marketplace could be considered an NFT. Non-fungible tokens are an interesting concept because they represent a way of adding utility to something — in this case, art. it then becomes a digital asset and can be sold.

The token’s identifying information is stored in a decentralized registry, in the form of Smart Contracts. These registries, similar to the ones used for decentralized apps, enable developers to digital assets directly to users.

As opposed to cryptocurrencies like Bitcoin where one BTC has the same value as another, non-fungible tokens are all unique in their own right. Furthermore, they are not divisible like fungible tokens. In this guide, we will explore NFT with regards to staking and the mechanics of how it all works.

Read Also: What Is An NFT Auction? Here are the Vital Insights

NFT Staking

One of the thoughts that come to mind is the prospect of staking them for additional profits. Let’s start with the basics, and build from there.

What is Staking?

Among many other things a user can do with NFTs is the idea of staking, which allows you to lock up some of your NFT tokens in a proof-of-stake crypto wallet to secure and govern a blockchain network. It is done in exchange for rewards, rather than a simple deposit or withdrawal model. It’s like a spin-off from mining, but not the same thing.

Why Stake NFTs?

The NFT ecosystem is hampered by low liquidity. At present, it is underdeveloped, as most users purchase the tokenised asset for long-term appreciation. Others do so to burn them, which creates scarcity, and, in turn, increases the value. Staking comes into play to resolve this problem. Staking a non-fungible is no different from staking a cryptocurrency.

Once you’ve found, for example, a digital asset with a revenue-generating potential, stake your tokens and receive incentives. The fee and block could come in the form of an annual percentage yield (APY) of the staked token, depending on the lock option duration. It could feature additional network validation, to ensure transaction integrity and confirmation.

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Staking rewards depend on a variety of factors. Among them is the NFT asset’s potential to generate considerable income streams. NFT crypto staking can provide rewards up to 100% APY. Besides generating income for users, NFT staking also increases liquidity and attract more investors to the ecosystem. In turn, this will further facilitate the ecosystem’s growth.

Projection of the NFT Ecosystem

At the moment, NFTs encapsulates crypto, gaming, and digital artwork collectibles. However, content creators are currently hopping on the bandwagon, incorporating NFT into their products. For instance, artists who are into oil painting can create a digitized version of their works and even earn royalties.

Notable brands current license their NFTs, including Kellogg’s, Pizza Hut, Ubisoft, MGA Entertainment, and Taco Bell. As of June 2021, Twitter launched its NFT collections. If there’s any better time to become a part of the NFT ecosystem is now!

Conclusion

If you are already an NFT enthusiast who’s short on ideas for how to generate additional income other than HODLing long-term, NFT staking may be the answer. Look for NFTs with the potential to create good returns and invest your money. What makes staking interesting is that you don’t need to purchase your asset of choice outright; yet, you can partly own it and still earn high ROIs.

What Is An NFT Auction? Here Are The Vital Insights

NFTs have carved a niche for themselves in the crypto marketplace. Here are insights on how NFT auctions are done?

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A Comprehensive Guide to NFT Auctions

Ever thought of creating and selling your NFT at an auction to generate a lucrative income stream? Come to think of it, do you know how much the famous “Disaster Girl” meme sold for as a non-fungible token? A whopping $500,000. And if that isn’t enough, how about Jack Dorsey’s first tweet auctioning for $2.5 million.

However you want to consider it, NFTs are the new goldmine, creating opportunities for owners and collectors to earn sustainable incomes.

Perhaps, you missed out on the Bitcoin rave when it was just a few cents, and then Ethereum and the likes. You wouldn’t want to overlook this once in a lifetime opportunity, would you?

The demand for digital gaming, artwork, and crypto collectibles is skyrocketed. One memorable event in the industry is the Beeple NFT auction, Everdays: The First 5,000 Days, which sold at Christie’s for $69.2 million. The same NFT auction also set a record for the high-selling digital art in history.

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Introduction to NFTs

An NFT is a non-fungible token or cryptographic token that is attached to a unique asset of value. The digital asset can be sold, traded, or transferred.

With the proliferation of cryptocurrencies and the advent of blockchain technology, tokens have taken on a new lease of life. In fact, they are now being treated as real digital assets. This is a major step in their evolution from just pure digital currency to an asset class in its own right.

While NFTs are often associated with the art and gaming (game items and avatars) industry, they have a variety of applications, including financial transactions (payment solutions), intellectual property (patents, copyrights, and trademarks), ownership (real estate, collectibles, and more), reputation (social media, marketing, and branding), and utility (smart contracts).

NFT Auctions: How Do They Work?

NFT auctions connect creators with audiences. Collectors looking for unique digital artwork or other collectibles can find them on reputable NFT auction websites. An NFT auction site runs on a blockchain, most likely, Ethereum.

In most NFTs, an ownership transaction is initiated by a wallet and the NFT is then registered and stored, similar to cryptocurrencies. The blockchain verifies the identity of the seller and the ownership and validity of the NFT. Of course, bidders on the platform are also verified.

Read: How Chainlink Connects Smart Contracts To The Real World And The Opportunities Therein

In an auction, the owner of the NFT sets a reserve or starting price for the asset. The auction site runs on the Ethereum blockchain, which means that prices are set in ETH and are used for all transactions on the network. The reserve price is the lowest possible bid price, and is also called the “opening bid”. Collectors are to bid above this limit. With each bid, the price of the asset increases.

There is a time limit for the bid duration after which the seller accepts the highest bid price and receives it in ETH, while the NFT auction platform transfers ownership of the NFT asset to the buyer after the individual must have settled the NFT. There are no further bids on the asset except the new owner decides to auction it in the future.

When listing an NFT on an auction site, there is a certain percentage charge or GAS fees on the potential transaction. Hence, it is essential for you as a creator to factor in this cost before auctioning your NFT.

Conclusion

The most interesting fact about an NFT auction is that it operates in a digital world and yet it incorporates real-world assets. Depending on if you decide to be a creator or a collector, there is an avenue for you to make money and own highly treasured collectibles.