by web3fits | Sep 19, 2022 | Advanced, Web3Fits
Ethereum, the world’s second-largest cryptocurrency by market cap, is about to undergo its most significant update since its creation in 2015. The transition from Proof of Work to Proof of Stake is a pivotal moment in crypto history as Ethereum strives to achieve its goals of mass adoption. Proof of Work requires computers to solve cryptographic puzzles, “working” to be rewarded with the ability to verify, or, validate transactions on the blockchain. It’s called cryptocurrency mining, and it’s similar to the competition. Proof of Stake requires multiple validators to agree that a transaction is accurate, and once enough nodes verify the transaction, it goes through.
The merger from Proof of Work to Proof of Stake aims to settle the uncertainty around Ethereum’s security, scalability, and sustainability. These upgrades will allow for a diverse and open-source network available to everyone with seamless transactions and more energy-efficient, sound, secure money. The transition to Proof of Stake makes improvements that help to tackle the hesitancies surrounding the Ethereum ecosystem.
Although the Proof of Stake model offers faster network speeds, consumes less energy, and offers greater financial opportunities for Ethereum users, it does come with a few flaws. Mining cryptocurrencies helps to secure the network through Proof of Work. Without mining, the network may be more susceptible to attacks. Proof of Stake also makes it harder to be a truly decentralized network, allowing whales to reap a greater profit from holding large quantities of Ethereum. All in all, the advancements to the network will help to bring Ethereum, and crypto as a whole, one step closer to mass adoption; one upgrade at a time!
by web3fits | Jul 8, 2022 | Beginner, Web3Fits
“Not your keys, not your crypto” is a phrase that has been rattling all the corners of the Web3 space in recent months… but what does it actually mean? To understand this, we must take a trip back to the year 2009. In 2009, a set of nameless engineers under the alias “Satoshi Nakamoto” created the concept of Bitcoin, the world’s first engineered monetary system. After the financial crisis in 2008, these engineers decided “enough is enough”, and through the power of the internet and cryptography, Bitcoin was born. Since 2009, many other cryptocurrencies have been created, each serving its own utilities and purposes. Cryptocurrencies were created to give power back to the people and give every single person on Earth a right to own assets. Crypto allows the average person to self-custody their own money and assets without having to rely on banks, government, or other middleman services that created these financial crises in the first place.
Buying cryptocurrency on an exchange is one thing, but being in the custody of your crypto is a whole different story. When purchasing crypto on an exchange, you are simply trading one currency for another (ex: fiat to crypto exchange, crypto to fiat exchange, crypto to crypto exchange). Exchanges will be custody of your crypto on their platform until you withdraw your assets into fiat or crypto. The issue with leaving money on exchanges is that if something were to happen to the exchange, your money could be locked up and disappear along with the exchange. Due to the recent economic downturn, many of these exchanges have found themselves over-leveraged, causing them to close their doors for good. This is where the phrase “not your keys, not your crypto” sprouted from. Unless you hold the keys to your wallet for crypto, you are not in the custody of your own assets. It is extremely important to be the sole owner of these keys on your crypto hardware wallet. Many of us still have a lot to learn in this new world of Web3. Making mistakes along the way is a natural part of the process, but WAGMI! We have been given this gift of freedom to be in control of our own future and assets. Let’s not waste it. It all starts with security.
