by web3fits | Dec 30, 2022 | Intermediate, Web3Fits
The Bitcoin halving is a highly anticipated event in the world of cryptocurrency, and for good reason. It is a process that occurs every four years and is designed to control the supply of Bitcoin – the world’s first and most well-known cryptocurrency.
So, why is the Bitcoin halving important? The simple answer is supply and demand. Just like any other commodity, the value of Bitcoin is determined by the balance between the supply of the currency and the demand for it. If the demand for Bitcoin increases, but the supply remains the same, the value of the cryptocurrency will increase. This is known as the law of supply and demand.
The mad rush for toilet paper during the pandemic is a great example of how supply and demand can impact the value of a commodity. When the pandemic hit, the demand for toilet paper skyrocketed, but the supply was unable to keep up. As a result, the value of toilet paper increased, with some people even selling it for exorbitant prices.
The Bitcoin halving works in a similar way. The purpose of the halving is to control the supply of Bitcoins and to maintain their value. As the supply of Bitcoins decreases, the value is expected to increase, as there will be less available for purchase. This is similar to how the value of gold or other precious metals is determined.

When the Bitcoin network was first created, the creator, known as Satoshi Nakamoto, set a maximum supply of 21 million Bitcoins. To ensure that this supply is released at a steady pace, the Bitcoin network uses a process called “mining” to release new Bitcoins into circulation.
Mining involves using powerful computers to solve complex mathematical problems. When a miner successfully solves a problem, they are rewarded with a certain number of Bitcoins. The number of Bitcoins released through mining is halved every four years, hence the name the Bitcoin halving.
The first Bitcoin halving occurred in 2012, and the second in 2016. The third halving took place in May 2020, and the fourth is expected to occur in 2024.
The Bitcoin halving is a revolutionary concept because it allows for the controlled release of a digital currency, which helps to maintain its value and stability. It also ensures that the Bitcoin network is not flooded with new coins, which could devalue the existing ones.
The Bitcoin halving is an important aspect of the cryptocurrency world and is something that every Bitcoin enthusiast should be aware of. It is a unique and innovative way to control the supply of digital currency, and it has the potential to shape the future of money as we know it. By understanding the key principles behind supply and demand, it is possible to make informed decisions about investing in Bitcoin and other cryptocurrencies. The scramble for toilet paper during the pandemic serves as a great reminder of the impact that supply and demand can have on the value of a commodity like Bitcoin.
*This Bitcoin rainbow chart by blockchaincenter.net illustrates the impact that the halving has on the price of Bitcoin. Each one of the vertical lines represents the start of a halving. These halves occur every four years. You can see the price of Bitcoin begins to appreciate in value shortly after each halving*

by web3fits | Dec 28, 2022 | Intermediate, Web3Fits
Centralized finance (also known as traditional finance) refers to financial systems and institutions that are controlled by a single authority or organization. This includes banks, credit card companies, and other financial institutions that hold and manage financial assets on behalf of their customers.
Decentralized finance (also known as DeFi) refers to financial systems that are built on decentralized networks, such as blockchain technology. Decentralized networks are not run by one specific organization or authority. Instead, they use many computers all around the world to check and record transactions.
One key difference between centralized and decentralized finance is control. In centralized finance, a single organization has control over financial assets and decision-making. In decentralized finance, control is distributed among the members of the network.
Decentralization is a way of organizing things so that no single person or group has too much power or control. Instead of having one central authority that makes all the decisions, different people or groups can make their own decisions and work together without needing to go through a central authority.
In the graphic below you will find a visual representation of the distribution of power in a centralized organization (left) and a decentralized organization (right):

EXAMPLE
Imagine a group of kids playing a game of tag. In a centralized game of tag, one kid would be the “leader” who decides when the game starts, when it ends, and what the rules are. In a decentralized game of tag, all the kids would have a say in deciding when to start and end the game, and they could all agree on the rules together. This way, no one kid has too much power or control over the game.
The 2008 financial crisis played a significant role in the development of decentralized finance and ultimately led to the creation of Bitcoin. The crisis, which was caused by the collapse of the housing market and the subsequent failure of several major financial institutions, highlighted the vulnerabilities of the traditional centralized financial system and the need for alternative options. In the aftermath of the crisis, there was an increased interest in finding ways to make the financial system more secure and resilient.
Bitcoin was created in 2009 by an anonymous individual or group known as Satoshi Nakamoto, and it was designed to be a decentralized digital currency that could be used for peer-to-peer transactions without the need for a central authority. The use of a decentralized ledger technology called the “blockchain” allowed for transactions to be recorded and verified by a network of computers rather than a single central authority, making the system more secure and resistant to fraud.
By distributing power and control among multiple people or groups, decentralization promotes fairness and equality and helps to prevent any one person or group from having too much influence. In addition, decentralization increases security and reduces the risk of issues like hacking or fraud, making it more difficult for a single person or group to cause problems like the 2008 financial crisis.
by web3fits | Dec 22, 2022 | Beginner, Web3Fits
Smart contracts are like digital agreements that can be written in code and can automatically carry out the terms of a contract. When certain conditions are met, the terms of the agreement are automatically carried out with no need for intermediaries like banks or lawyers, reducing the risk of errors or fraud. They allow for the automation of complex processes and transactions, making them faster, more efficient, and more secure compared to traditional contracts. Smart contract transactions are made possible by utilizing the power of blockchain technology. These contracts can be used in many industries, such as finance, insurance, and supply chain management.
Smart contracts were first suggested by Nick Szabo, a computer scientist, and lawyer, in the late 1990s. He saw that blockchain technology’s decentralized and secure nature could be used to create contracts with the terms of the agreement embedded in the code that could self-execute.
The idea of smart contracts was further developed and gained attention when they were implemented on the Ethereum blockchain in 2015. Ethereum is a decentralized, open-source platform that allows for the creation and execution of smart contracts. The ability to use smart contracts on Ethereum has made it popular with developers and businesses looking to automate complex processes and transactions.
Smart Contract Example:
Imagine you are buying a house. Normally, you would need to sign a bunch of papers and go back and forth with the seller and lawyers to make sure everything is in order. This process can become very time-consuming very quickly. Not to mention, costly. With a smart contract, you can set up a program that automatically checks to ensure you have the available funds to buy the house. The program will then check to see if the seller has the necessary paperwork in order to sell the house. If both of these statements are deemed to be true, the program will automatically transfer the money from your account to the seller’s and transfer the ownership of the house to you.
This means that the contract can be carried out without needing a middleman, like a lawyer or a bank. It also means that the contract is secure and can’t be changed or tampered with once it’s set up.
Smart contracts make it easier and faster to carry out agreements, and they can be used for a wide range of things, from buying and selling goods and services to voting in elections. They offer increased speed, efficiency, and security compared to traditional contract methods, and can be applied in various industries. By eliminating the need for intermediaries and reducing the risk of errors or fraud, smart contracts have the potential to revolutionize the way we conduct business and complete transactions.
by web3fits | Dec 19, 2022 | Beginner, Web3Fits
NFT’s, or non-fungible tokens, have been gaining a lot of buzz in the world of blockchain technology and digital art. But what exactly are they and how can they be used in real life?
First and foremost, it’s important to understand the difference between a fungible and a non-fungible asset. In order for an asset to be considered fungible, it must have a universally agreed-upon value and be able to be exchanged for other items of equal value. Bitcoin is an example of a fungible asset because its value is consistent across different currencies and it can be bought and sold for equal amounts. Additionally, fungible assets can be divided and sold in smaller units, making it easier to exchange for other items of the same value. Examples of fungible assets include currencies, commodities, and stocks.
While fungible items are interchangeable and can be exchanged for other items of equal value, non-fungible assets are unique and cannot be replicated. As a result, the value of a non-fungible asset is determined by multiple factors, including its provenance, rarity, and market demand. Unlike fungible assets, non-fungible assets cannot be divided and sold in pieces because the entirety of the item determines its value. This can include collectibles, digital art, and even real estate.
Now, enter the world of NFTs. An NFT is a digital asset that is verified on the blockchain and represents a unique, non-fungible item. This means that each NFT is one-of-a-kind and cannot be replicated or exchanged for another NFT.
One way NFTs can be used in real life is in the world of digital art. An artist can create a unique piece of digital art and mint it as an NFT, allowing them to sell it to collectors who value the rarity and authenticity of the artwork. The NFT serves as proof of ownership and authenticity for digital art, ensuring that it cannot be replicated or stolen.
Because NFTs are unique and cannot be replicated, they can be used to create scarcity and value around digital assets, which can be beneficial for businesses looking to monetize their digital content. Businesses of all sizes could potentially benefit from using NFTs in a few different ways. For example, a mom-and-pop shop could create and sell unique digital collectibles using NFTs. These collectibles could be limited edition items, such as virtual stickers or trading cards, that are only available for purchase at the shop. These stickers or trading cards could offer special promotional offers, such as discounts, to the customers holding these NFTs. The unique and non-replicable nature of NFTs would make these items valuable to collectors, who could then buy and trade the NFTs on a digital marketplace.
Another way businesses could benefit from NFTs is by using them to represent ownership of physical items. For example, a shop that sells rare or collectible items, such as vinyl records or sports memorabilia, could create NFTs for each item and sell them to customers. The NFTs would act as a digital record of ownership for the items, which could be verified and traded on a digital marketplace. This could help the shop to create additional value and scarcity around its physical items, which could drive sales and increase customer loyalty.
By creating digital scarcity and value around these items, NFTs can help businesses to monetize their digital content and generate new revenue streams. In addition, the use of NFTs can help to prevent fraud and ensure the authenticity of physical items. Overall, the use of NFTs can revolutionize how we think about ownership and value in the digital age.
by web3fits | Dec 14, 2022 | Intermediate, Web3Fits
It’s hard to believe that there was ever a time when things like cell phones, cars, the internet, and computers weren’t a part of our everyday lives. But all of these technologies had to start somewhere. So, how long does it typically take for society to adopt a new form of technology? Let’s take a look at some examples.
It took approximately 25 years for cell phones to achieve mass adoption. The first cell phone was introduced in 1973 but it wasn’t until 1998 that 50% of Americans owned a cell phone. Today, over 96% of Americans own a cell phone. For many, it’s hard to imagine life without one.
Cars achieved mass adoption even faster than cell phones did. It took approximately 15 years for cars to go from being a newfangled invention to an essential part of everyday life. The first car was introduced in 1886 but it wasn’t until 1901 that 41% of American households owned one. Today, 94% of American households own at least one car.
The internet achieved mass adoption even faster than cars did. It took approximately 10 years for the internet to go from being a newfangled invention to an essential part of everyday life. The first internet-connected computer was introduced in 1969 but it wasn’t until 1979 that 40% of American households had one. Today, 81% of American households have access to the internet.
Just like the internet, computers achieved mass adoption in just 10 years. The first personal computer was introduced in 1975 but it wasn’t until 1985 that 38% of American households had one. Today, 77% of American households own a computer.

It takes time for new technologies to be adopted on a broad scale, and cryptocurrencies are no different. Singapore-based blockchain firm TripleA estimated that as of 2022, the global crypto ownership rate is around 4.2%. Crypto assets are still relatively new and unfamiliar to most people. This new category of assets is often seen as volatile and risky investments, which has deterred some people from getting involved. However, as crypto assets have become more mainstream, more people are beginning to see them as viable investment options. In addition, the rise of platforms like Bitcoin and Ethereum has made it easier for people to get started with crypto assets. As crypto becomes more accessible and less risky, it is likely that adoption will continue to grow.
It seems that society is adopting new technologies faster and faster as time goes on. What used to take 25 years now takes 10 years or less. As we become more and more connected as a society, we are becoming more curious about the world around us and the possibilities that new technologies can bring. Many believe crypto is next on the list of new technologies that will impact the way we live in the future. Much to the tune of how cellphones, cars, computers, and the internet impacted the way we live today. With that said, there’s no telling what new technology will achieve mass adoption next but one thing is for sure: we’re always moving forward.