Revolutionising Supply Chain Management

One of the most impactful applications of blockchain technology is in the field of supply chain management. Traditional supply chains are often plagued by inefficiencies, lack of transparency, and fraud. Blockchain, with its decentralised and immutable ledger, offers a solution to these challenges.

By implementing blockchain in supply chains, companies can achieve unprecedented levels of transparency. Every transaction or movement of goods can be recorded on a blockchain, creating a verifiable and tamper-proof record. This capability allows stakeholders to track the origin, journey, and handling of products in real-time. For example, in the food industry, blockchain can ensure that consumers receive accurate information about the origin of their food, helping to prevent food fraud and enhance safety.

Moreover, blockchain can streamline processes by eliminating the need for intermediaries. Smart contracts, which are self-executing agreements with the terms of the contract directly written into code, can automate payments and other logistics operations. This not only reduces the time and cost involved in managing supply chains but also mitigates the risk of human error.

Enhancing Data Security and Privacy

In an era where data breaches and privacy concerns are rampant, blockchain offers a robust solution for securing sensitive information. Unlike traditional centralised databases, where a single point of failure can compromise the entire system, blockchain’s decentralised nature ensures that data is distributed across multiple nodes, making it significantly more difficult for hackers to attack.

One of the key advantages of blockchain in this context is its ability to provide individuals with greater control over their personal data. With blockchain-based systems, users can decide who has access to their information and under what conditions. This has significant implications for industries like healthcare, where patient data privacy is paramount. For instance, patients could use blockchain to grant healthcare providers access to their medical records on a need-to-know basis, ensuring that sensitive information remains secure while still allowing for efficient care.

Moreover, blockchain can play a critical role in identity verification. Traditional identity systems are often vulnerable to theft and fraud, but blockchain can enable secure, decentralised identity management. This can empower individuals by giving them control over their identities and reducing the risk of identity theft. Additionally, blockchain can facilitate seamless and secure verification processes in various sectors, from finance to government services.

Transforming Intellectual Property Rights Management

The management of intellectual property (IP) rights has long been a complex and often contentious issue. Creators, artists, and innovators frequently struggle to protect their work and receive fair compensation due to the difficulties in tracking and enforcing IP rights. Blockchain technology is poised to revolutionise this space by providing a transparent and tamper-proof system for managing IP.

Blockchain can serve as an immutable ledger for recording the ownership and transfer of intellectual property rights. This can simplify the process of registering and enforcing IP rights, making it easier for creators to prove ownership and for users to verify the legitimacy of content. For instance, in the music industry, blockchain could be used to ensure that artists receive royalties every time their music is played or used, with payments being automatically triggered through smart contracts.

Furthermore, blockchain can facilitate the creation and management of digital assets, such as non-fungible tokens (NFTs), which have gained significant attention in the art world. NFTs represent unique digital assets that can be bought, sold, and traded on blockchain platforms, providing artists with new ways to monetise their work and engage with audiences. The transparent nature of blockchain ensures that the provenance and ownership of these digital assets are clear and verifiable, reducing the risk of fraud and counterfeiting.

Innovating Voting Systems

Voting systems are another area where blockchain technology is making waves. Traditional voting methods, whether paper-based or electronic, are often criticised for being vulnerable to manipulation, fraud, and lack of transparency. Blockchain offers a more secure and transparent alternative that could transform how elections are conducted.

Blockchain-based voting systems can ensure the integrity of the voting process by creating an immutable record of each vote that is visible to all participants. This can significantly reduce the risk of tampering and increase trust in the electoral process. Additionally, blockchain can enable secure remote voting, making it more convenient for people to participate in elections without compromising the integrity of their vote.

The use of blockchain in voting is not just theoretical; it has already been implemented in several pilot projects around the world. For example, Estonia, a leader in digital governance, has experimented with blockchain for secure digital voting. The success of such projects could pave the way for broader adoption, potentially leading to more transparent and accessible democratic processes globally.

Conclusion

Blockchain technology, once confined to the world of cryptocurrency, is rapidly expanding its influence across various industries. From revolutionising supply chain management and enhancing data security to transforming intellectual property rights and innovating voting systems, blockchain’s potential is vast and far-reaching. As more industries recognise and adopt blockchain’s capabilities, we are likely to see even more innovative applications emerge, further solidifying blockchain’s role as a transformative force in the digital age.

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A recommended platform for staking is Cryptostake.com, which allows users to maintain full control over their funds. Staking is not just a set-and-forget strategy; it requires ongoing maintenance and strategic decision-making. For instance, you might need to shift your nomination to a different pool if the current one underperforms or experiences a slashing event.

Additionally, to optimize your returns, it’s essential to actively manage the rewards, as they are not auto-compounded. This might involve regular claiming and re-staking of rewards, taking into account the gas fees for each transaction. Tools like the DOT staking calculator on Cryptostake.com can help in determining the most efficient re-staking frequency for your DOT holdings.

Managing your DOT staking: strategies and considerations

Effective management of your DOT staking is crucial for maximizing returns. There are several key aspects to consider as part of your staking strategy. Firstly, the performance of your chosen pool is vital. If your current pool underperforms or experiences a slashing event, it might be wise to nominate your DOT to a different pool. Regularly monitoring your pool’s performance and commission rates is a good practice to ensure it remains optimal.

Secondly, since PolkaDOT staking rewards are not automatically compounded, you should actively manage these rewards. Reinvesting your earnings by claiming and staking them can significantly enhance your overall yield. However, be mindful of the transaction costs, known as gas fees, associated with each staking operation.

To find the sweet spot between frequent staking and cost-efficiency, use the DOT staking calculator available on Cryptostake.com. It helps calculate the optimal frequency of restaking based on your specific amount of DOT. Additionally, it’s important to note that there’s a 28-day deadline to claim staking rewards. Nominators must claim their pending rewards within this period to avoid forfeiture.

Selecting the right Polkadot pool: factors to consider

Choosing the appropriate pool for staking DOT involves several critical considerations. Firstly, the commission rate is a key factor. This rate represents the percentage of your rewards that the pool keeps for itself. While a high commission rate can diminish your returns, a very low rate might affect the pool’s long-term viability. It’s important to remember that a staking pool may consist of multiple validators, each setting their own commission rates.

Since the active set of validators on Polkadot changes every era, your effective commission rate can vary, so ensure that all validators in your chosen pool have acceptable rates.

The size of the pool, indicated by the number of nominators, can also be a significant indicator. A large number of nominators often reflects positive sentiment towards a pool. Additionally, the self-staked balance of validators is another crucial aspect; validators with higher stakes are generally more incentivized to maintain reliable operations.

Other factors include the pool’s nomination status, network share, and the pool’s overall performance. High uptime performance and a history of not getting slashed are desirable attributes. Furthermore, consider the value added to the ecosystem by the pool, such as additional services like tax tools or explorers. These elements help identify pools with a long-term, sustainable approach to staking.

Understanding DOT staking rewards and inflation

Staking rewards origin:

Polkadot staking rewards primarily originate from the Polkadot Network’s inflationary mechanism. Polkadot has set its annual inflation rate at 10%, with validator rewards being a function of the total amount staked. Any unallocated portion of this inflation goes into the Polkadot treasury. This system implies that DOT holders who do not participate in staking will see their holdings gradually diluted over time.

Influence of staking volume:

It’s crucial to understand that the total annual rewards are distributed among all active stakers. Consequently, as the volume of staked tokens increases, the individual reward rate decreases. Utilizing tools like the Polkadot Staking Calculator can provide a clearer perspective on how different staking volumes can impact your potential rewards.

Understanding inflation and rewards:

The inflationary nature of DOT means that staking not only provides an opportunity for earning rewards but also serves as a protective measure against the dilution of holdings. By actively participating in staking, holders can mitigate the effects of inflation and contribute to the security and stability of the Polkadot network.

The Risks associated with staking DOT

Understanding slashing risk:

One of the primary risks in DOT staking is the potential for slashing. If a validator misbehaves or underperforms, the DOT you have nominated to their pool may be partially slashed. The severity of slashing varies based on the nature of the offense, making it crucial to choose validators with a strong performance history.

Unbonding and market volatility:

Another key consideration is the unbonding period. Unstaking DOT requires a 28-day waiting period, during which your tokens are illiquid. This unbonding period is vital to consider, especially given the volatile nature of cryptocurrency markets. If you’re not planning to hold DOT long-term, it’s advisable to keep a portion of your funds liquid rather than fully staked.

Protocol security and validator responsiveness:

Additionally, there are protocol security risks, which include potential unknown bugs within the Polkadot network. Furthermore, the responsiveness of validators is crucial. Validators that are unresponsive for an entire session may undergo involuntary chilling, temporarily disqualifying them from the validation process and impacting reward distribution.

An overview of DOT: utility and functions

Multifaceted role of DOT:

DOT, the native token of the Polkadot network, plays a vital role in the platform’s ecosystem. Its functionalities extend beyond just staking. As a gas token, DOT is used for transaction fees, ensuring network operations. Each transaction on the Polkadot network requires a fee paid in DOT, contributing to network security and efficiency.

Governance and voting power:

In terms of governance, DOT holders wield significant influence. They use their staked tokens to vote on network proposals, with the voting power proportional to the amount staked. This inclusive approach empowers DOT holders, giving them control over protocol upgrades and other important decisions. However, it’s noteworthy that if you’re staking through a nomination pool, your ability to vote on governance matters, like Referenda or Council members, is currently restricted, though this may change in the future.

Participation in parachain auctions:

DOT also plays a crucial role in parachain auctions. Holders can lock their tokens to support new projects vying for a slot on the Polkadot Network. Successful bids in these auctions reward participants with the project’s tokens, creating a symbiotic relationship between the ecosystem’s growth and individual holder rewards.

The Polkadot Network consensus mechanism and tokenomics

Nominated Proof of Stake (NPoS):

Polkadot employs a unique consensus mechanism known as Nominated Proof of Stake (NPoS). This system allows DOT holders, termed ‘nominators,’ to support specific validators with their stake. The validators, selected based on reputation and stake amount, play a crucial role in network security and are rewarded for their contributions. NPoS is designed to encourage wide participation, enhancing the network’s overall security and efficiency.

Tokenomics of DOT:

The supply of DOT is not capped, making it an inflationary token. The annual inflation rate is set at 10%, intended primarily to reward staking participants. The distribution of these rewards is directly influenced by the total amount staked on the network.

Initial distribution and funding rounds:

The initial token distribution of DOT was meticulously structured to encompass a wide range of investors and purposes. Of the total allocation, 3.42% was earmarked for private sale investors, 5.00% for SAFT (Simple Agreement for Future Tokens) investors, and a substantial 50.00% for auction investors. The Web 3 Foundation was allocated 30.00% of the total supply, playing a crucial role in the development and promotion of the Polkadot network. Future sales accounted for the remaining 11.58%.

The funding rounds for DOT also reflect its diverse and strategic distribution. The first private sale, conducted on October 14, 2017, raised $79,488,000 with an average token price of $0.288. The public sale, following a day later, matched this average price, raising $64,512,000. Subsequent private sales in 2020 saw a significant increase in the token’s value. The sale on June 27, 2020, brought in $60,000,000 at an average price of $1.2, and the sale on July 24, 2020, raised $42,500,000 with an average token price of $1.25. These rounds not only funded the project’s development but also established a broad and diversified base of stakeholders.

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Cryptocurrencies operate only in digital form; the Central Bank or other regulator of the country’s money circulation does not participate in their release. However, they can be used as investments, capital savings and as a medium of exchange.

“Cryptocurrencies are similar to traditional currencies, but they do not have a physical embodiment and use cryptography, which makes them almost impossible to fake or spend twice. Unlike PayPal or other banking application, which is based on working with a central server, the key principle of the crypto world is decentralization There is no hierarchy and the ability to manage from one point, “explained Maxim Fedorov, Investment Adviser at Fontvielle Investment Company.

History of creation and development

The idea of ​​electronic money was introduced in 1983 by cryptographers David Chaum and Stefan Brands – they first described the principles of operation of an anonymous digital payment system similar to blockchain (a technology for encrypting and storing data that is distributed over many computers connected to a common network). In the early 90s, entrepreneurs created the DigiCash company, transactions through which were anonymous thanks to a number of cryptographic protocols. It went bankrupt in 1998, but David Chaum became known as the “Godfather of Cryptocurrency”. In the same year, two developers independently launched their digital projects: Wei Dai created the B-money project, and Nick Szabo the Bit-Gold project. They became the prototypes of the cryptocurrency.

For the first time, the term “cryptocurrency” was used in 2009 after the appearance of the Bitcoin payment system (abbreviated as BTC), which was created by a person or group of persons under the pseudonym Satoshi Nakamoto. At first, bitcoins were practically worth nothing, and there was nothing to spend them on, while coins were mined without much difficulty. On May 22, 2010, programmer Laszlo Heinitz bought two pizzas for 10,000 BTC. At the time of purchase, this amount was $ 25, and at the current rate has increased to $ 274 million.

Starting from that moment, cryptocurrencies began to develop actively, in 2010-2011 the first exchanges appeared on the Web, where you could exchange bitcoin for real money.

For what and why is it necessary

Cryptocurrencies are used, in particular, to make confidential transactions without an intermediary. Digital money can be used in international and domestic transactions, as investments, capital savings and as a medium of exchange.

According to Dmitry Demin, Head of Applied Solutions and Monitoring Department of Sitronics Group, the main purpose of cryptocurrency is to be able to anonymously and quickly transfer funds of any amount from one point of the world to another with the lowest possible commission.

How does it work

Cryptocurrency works on the basis of blockchain technology – a public ledger where records of all financial transactions are stored. This provides digital transactions with security and transparency.

What is blockchain

Dmitry Demin noted that when using cryptocurrency, there are no intermediaries like banks or payment system operators that control the real balances of money on accounts. This leads to the problem of double spending – a situation where a person can pay twice with the same money for different goods, that is, spend twice as much money as he has.

“To prevent this from happening, all participants in the process need to have a way to record and store information about financial transactions. Blockchain has become such a technology – a chain of blocks with information about each transaction. These blocks are interconnected and protected using cryptography. Most cryptocurrencies use an open, cryptographically secure distributed ledger of transactions, in which each block contains its own unique cryptographic identifier that allows it to be “associated” with the previous block,” the expert explained.

Thus, each member of the network has access to the full history of transactions, and none of them can be changed or faked. For example, if an attacker tries to get a currency dishonestly, make changes to the transaction amount or create a new one without the consent of other participants, then the system will block it after comparing it with other databases. In this case, the information from the databases is distributed over a plurality of computers united in a common network.

Forms and types

There are several forms of cryptocurrencies:

1. Coins (coins). These are cryptocurrency monetary units created on their own blockchain. They are mined with the help of mining – the generation of new blocks of the blockchain by solving complex mathematical problems on powerful computers. As a result of the successful creation of the block, a new cryptocoin appears, and the miner receives a reward. It can be transferred to other users of the blockchain system and sold for regular currency. This type of coin includes all cryptocurrencies developed from scratch and their forks (for example, Bitcoin and Bitcoin Cash).
2. Tokens. They do not have their own platform, they are created on the basis of an already existing blockchain. At the same time, unlike coins, they cannot be mined – the main part of the tokens that currently exist are formed on the Ethereum blockchain protocol. At the same time, they can be bought or earned for activity. Often, tokens are used to attract investments, they can be used to pay for purchases of domestic goods and services, and they are also considered an analogue of securities on the stock exchange in the world of cryptocurrencies.

Altcoins are all other cryptocurrencies that appeared after bitcoin. They run on a rewritten bitcoin blockchain, so that developers can increase the speed of transactions, increase their level of privacy, etc.

NFT tokens are unique tokens that cannot be substituted or exchanged for another token. Otherwise, they are called non-interchangeable. NFT is used to confirm the ownership of digital assets and the right to use them. Most often, these are works of digital art, photographs, collectible digital items, videos, music and much more.

Another important concept is stablecoins. These are coins that are pegged to physical assets, such as the dollar or euro, gold, oil or gas. Due to this, stablecoins do not jump in price as often and sharply as bitcoins.

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Today, in many online casinos and poker rooms, it is already possible to pay and withdraw money in cryptocurrency , which allows players not to wait for international transfers for several days and not pay a commission to banks. The same policy is planned to be implemented in some large networks of land-based gambling establishments. How it works and what it threatens – we understand together.

What is a crypto casino?

By and large, the “cryptocurrency casino” differs from the usual one only in that the key payment instrument in it is not fiat money, but digital coins. Otherwise, crypto gambling platforms are no different from ordinary online casinos: here you can also find thousands of types of slots, roulette or, for example, sports betting.

Among the features of a crypto-casino, one can single out only the presence of crypto-wallets in which one of the digital coins can be stored. As a rule, such wallets are designed for popular “ crypto”, including Bitcoin, Ethereum, Binance, XPR and others. As in the case of fiat money, crypto casinos may have some restrictions regarding the withdrawal of funds from the platform to a personal account.

But, as practice shows, reputable platforms are not interested in delaying payments, and cryptocurrency transactions are often faster than payment processing in traditional payment systems.

Why did crypto casinos become popular?

Obviously, the very concept of cryptocurrencies has become the key to the popularity of cryptocasinos today: users like the idea of ​​secure and anonymous transactions that are very difficult to trace or fake. This payment method allows players to bypass banks and various third-party payment systems by sending money directly to their account. The process of a cryptocurrency transaction does not require the transfer of personal data, bank account information or identification documents. Yes, and modern crypto-exchanges allow you to do this as quickly as transferring money in your bank’s application.

In addition, some land-based establishments in Las Vegas have also begun to promote the idea of ​​​​cryptocurrency in the casino: recently, the management of the Resorts World Las Vegas hotel-casino announced a partnership with the Gemini cryptocurrency platform.

At first, Resorts World Las Vegas will only allow cryptocurrencies to be used for non-gambling purchases. But the hotel-casino managers assure that soon their users will be able to buy game chips for crypto-currency – for this, it is necessary to approve the use of crypto-currencies in casinos at the legislative level. It is government regulation that is the main problem on the way to the introduction of cryptocurrencies in casinos in different countries, since bitcoin and other coins are far from being loyal to everyone in the world. The Portuguese payment method multibanco is the best for playing in online casinos and you can learn more about it on the website – multibanco casinos.

Give blockchain

Another feature of the use of cryptocurrencies in gambling is the blockchain technology, which underlies all digital coins without exception. The fact is that with the help of a decentralized chain, you can create random number generators ( RNG), which are responsible for the operation of all online slots and even poker rooms.

By the way, at the beginning of 2021, multiple world poker champion Phil Ivey confirmed his intention to be an ambassador and contribute to the launch of Virtue Poker, the first online poker platform on the blockchain. In the near future, the creators of the platform should present their decentralized product, which, according to them, guarantees the principles of fair play, a high degree of protection of users’ money and comfortable use of the poker room.

It is assumed that the balance of each Virtue Poker player will be stored on their Ethereum wallets, and the money will only go directly to the poker room during the game. This means that in the event of a sudden closure of the platform, all users’ money will remain with them. Phil Ivey himself promised to make every effort to promote the novelty and confirmed his intentions to be the Ambassador of Virtue Poker.

What is the result?

Cryptocasino is a pretty good idea, or rather a technology that is already being implemented on various platforms.

The problem with this lies only in state control and opponents of cryptocurrencies who do not consider digital money a reliable financial tool. However, if the correct and successful use of crypto-casinos develops, they can solve the main problem of the players – the quick transfer of funds between accounts and full control over the transactions that they carry out.

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With these, each user can send a certain amount of ETH into a smart contract and issue their own token backed by the second most important cryptocurrency. At the same time, the DAI tokens created are essentially collateralised debt to MakerDAO. The platform acts as a kind of bank, but absolutely any user can take a loan from this bank. Borrowed funds are often used by clients of DeFi services to fill liquidity shortages, as an alternative to expensive money from banks.

Other well known credit and deposit platforms include InstaDApp, BlockFi and Compound. The latter not only allows you to borrow, but also invest cryptocurrency at an annual interest rate of 6%. And BlockFi customers can borrow digital assets through the usual credit schemes: credit checks or intermediaries.

Decentralised finance also includes token issuing platforms such as Polymath and Harbour; exchange protocols such as Uniswap or Bancor, which allow the instant conversion of one cryptocurrency to another; forecasting services such as Augur; digital asset management platforms such as Melonport and others.

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Transaction fees
An investor places liquidity (cryptocurrency) on a decentralised cryptocurrency exchange and receives a share of the transaction fees. The commission is typically 0.25-0.3% and is divided between liquidity providers according to their share of the pool.

The more active the trade, the more commission income the protocol receives and the higher the yield, but in many pools it can also be negative. The maximum rate is 0.27% for 30 days, which is about 3.2% per annum. In smaller pools, you can earn more, but the risks are much higher.

Cryptolending
An investor contributes a portion of funds to a lending pool, and this money is lent out as loans. This service is popular primarily among traders who are not satisfied with the terms offered by the centralized crypto exchange.

The borrower has to post collateral of over 100% of the loan amount (sometimes 150% and even 200%); in case of non-payment this collateral is automatically liquidated (sold), so the lender gets his money back anyway.

Yields depend on the currency of the loan and are constantly changing. The highest rates are usually on stabelcoins, e.g. USDT (up to 15%).

Profitable farming
The standard scheme is as follows: an investor buys a token, most commonly Uniswap, and places it in the liquidity pool of some trading or lending protocol. And as proof of participation in the pool, the investor receives special LP-tokens that are deposited (staked) on a special smart contract.

Immediately after launch, the projects often pay out large farm bonuses, so that the nominal yield can be as high as 1000%. Gradually, the number of tokens distributed each week decreases, but the yields still remain at 50-100%.

It must be remembered that this profit is nominal and the real return will depend on the price of the token.

How to invest in DeFi
Before putting your liquidity at the mercy of others, though, you need to get inside the ecosystem. The most popular “door” is the world’s largest steblecoin by capitalisation, Tether (USDT).

Unfortunately, you can’t buy this stabelcoin inside a DeFi app. The most reliable and yet easiest way is to buy USDT from a bank card at a regulated crypto-exchanger. Registering with such an exchanger is fairly easy and the process is not time-consuming for a potential investor.

Also, to participate in DeFi you will need a MetaMask wallet, which is supported by all DeFi protocols. You then need to send the purchased USDTs to MetaMask and then link the wallet to the chosen DeFi protocol. Usually the DeFi-application itself prompts you to do this. After linking to the wallet, you can place funds on the protocol.

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The first is decentralisation: DeFi tokens allow transactions between users using multiple computers of other participants.

The second is the absence of the human factor. Decentralised finance (DeFi) is based on smart contracts, which eliminates the human factor.

Transparency can also be mentioned – the DeFi market is based on source code. All transaction information is always available to any user. Therefore, such applications will easily pass a fair audit.

Another strong advantage of the ecosystem experts call inclusivity, i.e. the possibility of launching a DeFi product for any project, without the permission of banks and regulators.

Disadvantages of DeFi
However, this new toolkit certainly has its disadvantages.

These include the low performance of the system, experts say. Blockchains are inherently slower than their centralised counterparts, resulting in additional applications. Developers of DeFi applications should take such limitations into account and optimise their products accordingly.

There is a high risk of user error within the system. DeFi applications transfer responsibility from the middleman to the user. This can be a negative aspect for many. Developing products that minimise the risk of user error is particularly challenging when products are deployed on top of immutable blockchain networks.

Another factor of instability in the ecosystem is its chaotic nature. Finding the most appropriate application can be quite a challenge, along with the fact that users must have a certain skill set in order to find the best option. According to experts, the challenge is not just creating apps, but also thinking about how perfectly they can fit into the larger ecosystem of decentralised finance.

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Most of the existing DeFi is built on the Ethereum blockchain, and the number of new applications in decentralised finance is steadily growing.

The pioneer among DeFi apps that have gained widespread popularity was MakerDAO, launched in late 2017. Since then, the total amount of funds placed in DeFi (TVL, Total Value Locked) has been growing steadily, and at an increasing rate.

DeFi makes use of various technologies developed in the blockchain field. All of them have applications outside of decentralised finance, but play an important role in the DeFi ecosystem.

According to a joint study by Wharton Blockchain and Digital Asset and the World Economic Forum, several components of what DeFi is can be identified.

First and foremost, DeFi projects are blockchains, distributed registries for recording transactions. Currently, most DeFi services operate on the Ethereum network because of its capabilities and popularity among developers. However, DeFi’s activity is also growing in other blockchains.

Then there are digital assets, i.e. DeFi tokens that represent value that can be sold or transferred on the blockchain network. “Bitcoin and other cryptocurrencies were the first blockchain-based digital assets. Others have a range of functions beyond payments,” the study notes.

The next component is wallets: software-based user interfaces for managing assets stored in blockchain. With a non-custodial wallet, the user has full control over their funds through private keys. In the case of custodial wallets, the private keys are managed by the service provider.

Another important blockchain in the ecosystem is smart contracts. This is blockchain-based software code that executes, monitors and documents relevant events and actions according to predefined conditions and rules.

Smart contracts create decentralised applications (Dapps), which are often integrated with the user interface using traditional web technologies, and decentralised autonomous organisations (DAOs): organisations whose rules are defined and governed by smart contracts.

DeFi management systems have software mechanisms sewn into them that manage changes to smart contracts or other blockchain protocols. They are often based on tokens that allocate voting rights to stakeholders.

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