What is a blockchain oracle? Everything you need to know

How the block works

Consider the example of Bitcoin. The Bitcoin network has one of the largest transaction activity. Keeping a record of these transactions helps users keep track of what they were paid for and by whom. Transactions completed within a given period of time are recorded in a file called a block, which is the backbone of the blockchain network.

The block represents the “present” and contains information about one’s past and future. Each time a block is completed, it becomes part of the past and gives way to a new block in the blockchain.

A completed block is a permanent record of transactions in the past, and new transactions are recorded in the current block.

In this way, the whole system works in a cycle, and the data is permanently saved. Each block contains a record of some or all of the recent transactions and a link to the previous block, which, along with Bitcoin’s peer-to-peer verification system, makes it almost impossible for a user to fake previously recorded transaction data.

Bitcoin Mining

Each block has a math problem associated with it. Miners are constantly processing and logging transactions as part of a competition process in some sort of race.

They compete “to complete the current block” to be rewarded with BTC. When the miner is able to solve this problem, the answer is transmitted to other mining nodes and checked. Each time a miner solves a riddle, he receives a reward – 12.93, which is divided among all miners participating in the network.

Since miners are rewarded with brand new BTC for solving each block, each block also contains a record of which Bitcoin addresses or scripts are eligible for the reward. The number of bitcoins generated per block starts at 50 and is halved every 210,000 blocks (about four years) – this process is called halving.

The first entry in the next block is a transaction that is awarded to the winning miner (miners are now pooled and the reward is shared among all pool members) in BTC. It is the complexity of the mathematical problem that governs the rate at which new BTC are created, as new blocks cannot be submitted to the network without a response. Based on the fact that on average it takes about 10 minutes to solve this problem, approximately 12.5 new BTC are created every 10 minutes.

For example, every 13.46 seconds (checking time of 1 block) 2 ETH coins are created in Ethereum.

Compare block with banks

As an analogy, you can compare ordinary banking transactions with transactions in the Bitcoin network.

Blockchain is similar to a record of banking transactions, while a block can be a separate confirmation of a transaction that a bank’s ATM prints out after using the machine.

Within the blockchain network, individual blocks create a “ledger” much like how an ATM or bank would record your transactions.

However, the blockchain records the chain through all its users, not just one. It is similar to a bank, but the blockchain offers an increased level of privacy compared to conventional banking institutions.

Total Value Locked

The term “Total Value Locked” or TVL (Total Value Locked) is very common in the DeFi space. In fact, TVL refers to the total value of cryptocurrency assets hosted in a decentralized financial space or in a separate DeFi project. This does not mean that the funds are blocked, but they are securely protected by smart contracts on the network.

The concept of using TVL to define value in DeFi was introduced by DeFi pulse. DeFi pulse is a platform focused on providing analytics in the world of decentralized finance. The company introduced this metric to help investors gain insights into DeFi and help make decisions.

The total amount of TVL in the DeFi world is $82 billion and growing daily. Aave ($15B) is the platform with the highest total value locked, followed by Curve finance ($10.5B), Instadapp ($10.4B), Compound ($10.3B) and Maker ($8.8B). billion dollars).

How is TVL calculated in different Defi protocols?

The definition of TVL often depends on the project in question. There are many types of DeFi protocols: lending, staking, DEX, derivatives, payment services, and assets.

How to determine TVL in DeFi projects

• Lending – DeFi lending is the process by which DeFi platforms provide loans to users based on the collateral they provide. The user collateralizes one crypto asset and receives another crypto asset. On such platforms, you add up the amount contributed by lenders (shares) and borrowers (collateral) to calculate TVL.
• Decentralized exchanges are platforms built to exchange DeFi assets by providing services such as liquidity pools and smart contracts. T VL in the case of DEX is the amount of funds held in DEX smart contracts, including liquidity pools. The biggest DEX from TVL is Uniswap followed by Pancakeswap.
• Derivatives are assets that derive their value from another underlying asset, and their use in DeFi has been growing very rapidly lately. So TVL in the case of derivatives is the amount deposited in smart contracts that helps support the synthetic/underlying assets.
• Payment services are tools designed to enable users to make transactions more efficiently and more easily. T VL in payment protocols is the amount that depositors deposit into smart contracts for payments.
• Assets – assets, in this case, refer to cryptocurrencies and stablecoins. T VL in this case is the value of assets.

TVL for project analysis

When considering investing in the world of Defi, it is important to analyze the activities of the project to learn about its growth and popularity. First of all, make sure you have determined the type of investment you want to make.

After determining the type of investment, look for platforms that offer the services you need. For example, Uniswap, Pancakeswap and some others provide DEX services. Check the TVL of each of these projects to see their popularity.

After identifying a project with a higher TVL, you should do further research to see if the project fits your needs.

If you notice that the TVL of a project is increasing, it may mean that more and more people are investing in the project; thus, trust grows.

TVL restrictions

TVL as a metric for determining the value and growth of DeFi has one significant limitation; it focuses only on the price aspect of assets. It goes like this:

• The Defi project has 10 BTC worth a total of 460 thousand dollars at current prices.
• There are no deposits in the projects during this period, but the value of BTC increases from $46,000 to $48,000
• TVL automatically increases to $480,000.
• An investor might think that people are making deposits on the platform, while there were no deposits at that time. Instead, the value of individual assets has risen. Therefore, TVL does not take into account other factors; it takes into account only the price of the asset.

However, Dappradar introduced their own way of adjusting TVL called adjusted TVL. This new metric eliminates the cost factor per se, providing a more accurate TVL. The Dappradar metric removes price impact by working with fixed prices within a given 30-day or 90-day window.

Who is a validator in the blockchain

This term refers to the verification unit. Its main tasks are to compare the received information with the available information and confirm the chain block. That is, adding to the network. This can be done without the large computing power that is required for mining.

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Who are validators?

The absence of validators will cause the blockchain to fail. However, interest in becoming nodes of verification is fueled by the issuance of rewards for proper functioning. Therefore, the blockchain will never stop.

Normally, validation nodes are automatically selected for each block on a random basis. However, a few things have an impact:

• rates (node ​​uptime).
• The state of the node (from Latin nodus – node).
• The number of locked cryptocurrencies.

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Nodes with a large number of coins have an advantage. However, interruptions in work will lead to penalties.

Technically, you shouldn’t compare a validator with a miner. Although the first one also receives cryptocurrency, but according to a different algorithm. Mining nodes are represented as a subset of test nodes.

Proof-of-work is actively used by miners in the algorithm. However, they are not provided in Proof-of-Stake (PoS) as unnecessary.

Why staking is needed

PoS (Proof of Stake) embodies the basic principle of capitalism – money must work. The validator buys a set number of coins or more. Then freezes them on a personal wallet. From that moment on, a person becomes a trustee of the system.

Staking increases the security of the blockchain. After all, large computing power is not needed. Attacks on the network become unprofitable due to the need to invest heavily. Cryptocurrency is mined only after freezing the assets in the system and setting up the node.

Staking has 3 benefits:

• Increases the speed of checking blocks.
• Network protection costs are reduced.
• The fee for deposits and withdrawals is reduced.

It turns out that Proof-of-Stake is beneficial for 3 parties: validators, companies issuing a coin based on this consensus algorithm, and traders (investors).

However, PoS also has negative points:

• High entry threshold due to the need to buy a set amount of coins. With a small budget, it is better to consider startups that are just deploying a network.
• Not every coin has a high return on staking.
• Young organizations are at risk of capturing a large proportion of trusted verification nodes. This is due to the low capitalization of the coin. It is easier for attackers to master 51% of the hashrate of their network.

Reward

Miners get new coins for holding a certain number of coins. This approach keeps the balance of the blockchain system. There are always enough validators. The network is secure.

The amount of payments for verifying transactions depends on the number of frozen coins. For example, a node owns 3% of the coins from the total amount among the nodes. Then she claims a corresponding part of the profits.

Validators and Ethereum 2

The official launch of the first phase of Ethereum 2.0 is December 1, 2020. The deposit contract of the system totaled 524,288 ETH in Beacon Chain. This is called the signal chain. Anyone can become a verification node.

Since there are too many ideas in Ethereum 2.0, their implementation is still ongoing. Briefly about the main innovations from the project roadmap.

Participation in staking

To start mining cryptocurrency, you need to freeze the minimum deposit of 32 ethereum on your wallet. As of September 12, 2021, this amount is approximately $110,000. Ethereum 2.0 uses the Proof-of-Stake consensus algorithm. Computing power is not needed.

The amount of reward depends on the number of locked coins. The project management announced the maximum possible annual yield of the validator – up to 20%. In reality, the profit parameter is approximately 2-5% due to the large number of verification nodes.

The network does not allow the withdrawal of frozen funds until the launch of phase 1.5. It will mark the addition of dynamic locking (27 hours / 256 epochs – Beacon Chain links). The task is to prevent the leakage of investors’ funds from the system.

Self staking

A verification node can become one on its own. To do this, you need to make a deposit of 32 ETH. And freeze the specified amount on the wallet. Funds will be blocked until phase 1.5. Technical requirements must also be observed when starting the block verification process.

To become a validator, follow the instructions on the official website of the ethereum.org project. The guide contains 3 steps:

• Accept the conditions for processing and confirming transactions within the network, as well as participating in the signal chain. Be sure to read the 9 provisions and confirm the awareness of the risks.
• Run Ethereum 1.0 and 2.0 clients in parallel. Select software version 1.0. Follow the installation guide on the site. This will set up automatic processing of incoming verification node deposits from the ETH 1.0 network. Then select software version 2.0 and follow the instructions on the website. Thanks to this, the operation of the node will be programmed.

• Deposit 32 ethereum. Be sure to follow the guide in order to save your investment. Deviations from instructions can lead to loss of capital. The transfer is made to the specified address of the smart contract.

Running a test node on your own is difficult. Difficulties can be avoided using pre-configured equipment. For example, through Avado or Launchnodes services. To support its work, receive a reward for validation and manage Ethereum coins will be an intermediary for a fee.

In this case, in order to raise the node, the user will need to make a deposit of 32 ETH and additionally pay for equipment rental.

More than 400 users are already discussing mining on the forum

Open forum

Another option is to collaborate with organizations that implement the Validator as a Service concept. The service will manage the node for a small fee. The solution is suitable for institutional and just large investors. Examples: Blox Staking, Stakewise Solom, Attestant.

Shared staking

You need to make a large deposit – 32 ethereum (₽8,039,000 as of September 12, 2021). This determines the high entry threshold. Only a wealthy investor can become a verification node. The solution to the problem is joint staking. It is available through special services.

Ethereum 2.0 developers posted a post with a list of such resources. However, project leaders state the need to independently verify the risks when using the services of these organizations. They have not been formally tested.

Objectively, there are 3 ways to participate in joint staking:

• Pools. They are intermediate links between people and crypto networks. They combine the funds of several investors into a deposit and freeze them on the organization’s wallet. The share of the investment determines the amount of profit from the total income. Cryptocurrency is stored decentralized. The information is available to each member of the pool.
• Lending platforms. They allow you to maximize profits from staking by issuing loans to freeze ETH in the system.
• Exchanges and custodians. Seemed to be the simplest way to participate in co-staking. The principle of operation is almost completely similar to pools. Withdrawal of any funds is prohibited for a specified period. The user does not take control of the private keys.

Read also

How to hack blockchain

The popularity of digital assets is growing rapidly. Cryptocurrency supporters consider its appearance.

Frequently Asked Questions

❓ Is a 51% attack possible on crypto networks with the Proof-of-Stake consensus algorithm?

Possible. But it becomes less resource-intensive in terms of computing power. The attacker will need large reserves of cryptocurrency. Although sharding makes this task easier.

An attacker gains the ability to create an infinite number of forks. The classic method of protection is the prohibition of branching below the set depth.

❔ Why attacks on Proof-of-Stake networks are unprofitable?

The PoS consensus algorithm requires a huge investment. This is not equivalent to a modest gain.

❕ Are there any limits on the number of active validators?

Only the minimum number of active verification nodes is 16,384. That is how many of them were needed to launch Beacon Chain.

❗ Is it safe to freeze 32 ETH for staking on Beacon Chain?

Ethereum 2.0 code is still considered new. However, the developers guarantee that there are no vulnerability issues.

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Why are football clubs issuing cryptocurrencies, which altcoins are popular.

Recent years have brought a number of changes in so many areas of life, which was associated with the coronavirus pandemic and the restrictions that it brought. Football clubs were no exception, which had to think about how to compensate for the decreasing number of fans in the stands, to develop a fan movement. Now there is a boom in the placement of fan tokens. About why this happens and which football cryptocurrencies are the most popular, experts of the portal https://cryptothemarket.net/ tell.

How platforms work

Most football clubs use ready-made solutions that require minimal effort to place their own tokens. So, for example, Juventus, Manchester City, as well as Barcelona, ​​work with the Socios platform. The system works on the basis of the Ethereum blockchain, which you can learn more about at cryptothemarket.net, and also has its own Chiliz cryptocurrency. The platform is quite functional, on it you can not only buy and sell football cryptocurrency, but also organize a community with polls, voting, exchange of tokens between fans, etc. There are other platforms, for example, Moonwalk, which Dynamo Kyiv plans to use to launch its own cryptocurrency ecosystem.

Why is it necessary for football clubs

There are several reasons for the appearance and development of a trend. The first one is financial. The issuance of tokens is a real way to raise funds, although not as large-scale as management initially expected. As practice shows, there was no explosive price growth, and the dynamics of fluctuations, like many other altcoins, one way or another correlates with bitcoin.

The second point is the consolidation of the fan community and the popularization of the club. Some clubs, such as Manchester City, started with a free distribution of tokens, while others sold them at the start at a symbolic price. This way of interacting with the fans justifies itself very well.

Popular tokens and investment attractiveness

According to the current market monitoring, which is carried out by the cryptothemarket.net platform in real time, the most popular football cryptocurrencies are:

• Paris Saint-Germain Fan Token (PSG) – current capitalization $49,404,540;
• Manchester City Fan Token (CITY) – $38,647,878 ;
• Atletico Madrid Fan Token (ATM) – $26,870,174;
• Inter Milan Fan Token (INTER) – $21,293,019;
• FC Barcelona Fan Token (BAR) – $19,006,418;
• Juventus Fan Token (JUV) – $10,312,898.

Like all other cryptocurrencies on the market, they are quite volatile. Working according to the general laws of the cryptocurrency market, they have a stronger foundation and high reliability, which is guaranteed by the very name of the club. You can safely purchase a crypt to support the fan movement of your favorite football club, as well as make a good investment.

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Cloudname Интервью

Siful Moni

As a team member, сan you tell us about your role in the ICO project?

I am the Head of Domains. The project is based on trading premium domains and fractional ownership of premium domain. I am on the role of domain management, valuation and take care of the domain market update.

What do you think about idea?

This is the first time cloudname make this possible to own a premium domains with a little investment

Davide Vicini

As a team member, сan you tell us about your role in the ICO project?

I am the CEO and co-founder of cloudname.com

Cloudname came alive from our appetite in domain name trading and from the need of having a much more developed playground!

What do you think about idea?

Cloudname is the first platform to fractionalise slide domain name via tokens, to buy and trade domains via metamask and conserve NFT certification. On top also you estimate exact pricing and future trend. Manage you domain investment, grow your portfolio value. Invest in the true DIGITAL ASSETS : Domains !

Manuel Vanzetta

As a team member, сan you tell us about your role in the ICO project?

As a Chief Operating Officer, I follow all the processes and developments in different areas, from strategy and new opportunities, investor relations, business development, operations, and more.

What do you think about idea?

Cloudname is the platform that is going to revolutionize the domain industry forever, thanks to its one-stop-shop platform and its unique features.

Francesco Andreoli

As a team member, сan you tell us about your role in the ICO project?

Cloudname is an innovative platform that uses NFTs to allow anyone to tokenize/trade domains in real-time

What do you think about idea?

Beyond easy access to elite domain assets, domain fractionalization can:

Expand the domain market: fractionalization tends to increase retail participation — as seen in the stock market over the last two years. A 2021 Boston Consulting Group report valued the secondary market for domain trading at roughly $2 billion. That figure would most certainly grow as new investors enter the space.

Liquidity: Blockchain tokenization can also alleviate the liquidity bottlenecks that domainers currently face, thanks to the introduction of fresh capital and the possibility to trade domain tokens or NFTs in real-time.

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I am the Marketing Manager of Cloudname, in charge of marketing strategy and actions. My aim is to make Cloudname grow in the market.

What do you think about idea?

Cloudname is a huge opportunity for all kind of crypto and non crypto investors. Just think that .com market alone is worth over $200Bn

Leonardo Saulle

As a team member, сan you tell us about your role in the ICO project?

I’m the Social Media Manager of Cloudname. In addition, as a data analyst, my role is to monitor the company’s social performance and make data-driven decisions to improve visibility.

What do you think about idea?

Cloudname is a very promising project because it comes from the encounter of both 2.0 and 3.0 investors’ needs. Crypto meets the world of domains, to offer experts and newbies alike a wide choice of investment tools.

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As a team member, сan you tell us about your role in the ICO project?

I’m head of design. This means that everything that is visual has gone through me one way or another.

What do you think about idea?

The domain world has been the same for years. We’re gonna change that, in the best of ways, opening it up for everyone, and giving experts even more possibilities.

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I am working for Cloudname as a Junior Marketing Associate. It’s great to help moving this project forward!

What do you think about idea?

In a time where the crypto- and domain trading sector develops rapidly, I’m convinced that Cloudnames solutions are game-changing!

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Understanding oracles in blockchain

Translation of an article by Thomas Bertani from Oraclize’s blog.

This post is a discussion about what oracles really are, and we’ll cover some common misconceptions about it.

The oracle is a third party, you communicate with the oracle when you need data that you don’t want (or can’t) extract yourself. There can be many reasons for this.

On the one hand, you may not trust a single entity when signing a multi-signature Bitcoin transaction. For example, you want certain funds to be transferred only under certain conditions. Instead of doing it yourself (which gives no guarantees to external parties) or delegating it to a third party (which you don’t want to trust because it might misbehave), you separate the transaction confirmation process to different parties (oracles) via multi-signature transaction.

The way to use N-of-M multi-signature transactions is that each oracle has only one private key, and can only sign one at a time when it sees fit, but the transaction itself will be valid one and N-of-M oracles will have a consensus on which transaction should go through. This is much better than trusting one of the outside parties, since the selected oracles can compete and you get a low chance of fraud.

The idea of ​​having a distributed oracles network has been around for several years, however finding consensus on a protocol for communication between oracles (Orisi tried) is difficult. Finding parties willing to join the oracles network is even more difficult, as a good incentive process is needed, as well as a simple and clear design with the ability to easily interact, and there is no consensus on this yet. In addition to all this, a significant limitation may be the sources that you want to use to obtain data, as some of them may not be available without the permission of external parties (we will talk more about this a little later).

If we are talking about smart contracts (Ethereum), then it is completely different here, the transaction confirmation logic is provided by the network through your own smart contract code. This means that the oracle does not sign after checking some conditions, instead it gives you the data you asked for – conditions can be checked on your side directly, you can initiate a transaction or status change yourself. However, you can’t rely on a distributed network to get external data, as applications/services running on chains live in their own closed environment, and that’s why you need oracles to get external data.

The growing need for data is the result of rapidly growing industries and, accordingly, finding data and extracting it correctly from the real world is becoming more and more difficult. However, often the misconception about using oracles is due to a poor understanding of what data you would like to receive from oracles.

For example, prediction markets like Augur or Gnosis are meant to give a good and reliable indicator of the evolving sentiment (or knowledge) of the crowd around facts that will happen in the future. Prediction markets are often referred to as oracles, but in a broader and very different sense than we discussed above.

Another point worth discussing is this: do we want to call an oracle only what is, for example, a quote stream? This is just a data source and in most cases it will not have any connection to the blockchain. Financial institutions often think of Bloomberg or Reuters as oracles but actually use them as their data source. Being an oracle means taking on all the complexities of interacting with the blockchain, and they are not interested in doing this, as this requires additional costs and resources. However, an oracle can grant access to Bloomberg data after it selects the appropriate source and the correct form of the data. Referring to someone who poses as an “oracle” but is actually a “source of data” is another misuse of the term.

To understand this more deeply, we can define 3 objects:

A query is an algorithm that can understand your chosen data source to provide you with the data you need.

Oracle/Oracle Network is the party responsible for connecting to the data source. There are two questions to discuss here:

Oraclize’s approach as an oracle is different.

You can think of this as a cross between an oracle and an extended network of oracles. Oraclize can potentially return a response to you, but it cannot modify the data coming from the data source you choose.

We provide tools to check our honesty with which you can do this check yourself. Here, for example, is our network monitor for Ethereum that connects on your client side (that’s why it’s so hard) with public Ethereum nodes and an IPFS gateway (or with you if you want) so that you can find Oraclize transactions and prove the truth by verifying them. That being said, you can easily monitor the network yourself to ensure that Oraclize behaves fairly, and we really want to encourage you to do so!

What does this mean in practice? If we change your data, anyone can check it at any time, automatically and in an instant, and our reputation will be lost. If you think our answers still sound too risky, you might want to wait until we release the open source Ethereum release we are working on. This means that your smart contract code can get the proof in TLSNotary on its own, and if the data is invalid then you can discard the data from Oraclize.

In our opinion, the Oraclize service is a good compromise to solve the “oracle problem”, which today works in such a way that suits the blockchain and smart contracts. Having a network of oracles will help solve the censorship/downtime problem, but the risks associated with using a single oracle are drastically reduced with the new Oraclize approach.

Source

How oracles are used

There are many ways to use oracles. Previously, the functions of smart contracts were limited. The program monitored and controlled the fulfillment of the terms of the transaction only within the blockchain. For example, when buying tokens, the seller needs to ensure their delivery. If one of the users does not fulfill them, then the transaction will not be completed, and the reserved coins will be sent back to the owners.

Then oracles intervene, which receive data on the rate of cryptocurrencies through the API of the exchange platform or a service for monitoring rates in real time. The smart contract receives the data, compares it with the predictions of the players, and transfers the coins to the winner who was closest to the correct answer.

By the way, the reliability of cryptocurrency quotes is another problem that can be solved with the help of oracles. If the predictions of the players are close to each other, then the result may be erroneous, since the rates on different platforms are different.

To solve this problem, we developed the Chainlink blockchain, which consists of a decentralized network of oracles. Oracles receive data from various sources and compare them with each other. Only after that the information is sent to the smart contract. Thus, smart contracts receive more reliable and accurate information than when using a separate oracle. In addition, this approach eliminates any data manipulation.

But this global problem is not the only one. Oracles act as intermediaries between users and smart contracts, so the end result depends on the reliability of the oracle data. If it is compromised, then the smart contract will execute an incorrect transaction. Chainlink’s solution removes the dependency on one particular oracle, promoting decentralization.

Another striking example of the use of oracles is the blockchain project Provable. The platform provides turnkey oracle-based solutions for decentralized application (dApps) developers. Provable allows you to integrate solutions such as a blockchain gambling RNG, a trusted data provider, and a military-grade Provable security module for your most critical processes. The Provable blockchain allows you to make sure that the data comes in its original form and has not been modified.

Oracles of centralized blockchains carry significant risks

The whole point of smart contracts is to achieve their unambiguous execution with the help of technology, and not the probable execution by a person. To achieve this, the blockchain must not have a single point of failure (SPOF / single point of failure) – and this property must be extended to oracles if we want the determinism of smart contracts to be maintained throughout the full cycle (end-to-end). Why transfer a multi-million standard contract to a smart contract on a fully decentralized blockchain, if one centralized oracle is able to control the input of information, thus predetermining the outcome of the contract?

It doesn’t matter if it’s the development team responsible for the oracle or a third-party centralized service, either scenario gives one structure undue power to manage the contract through oracle control. Even if centralized oracles operate with the best of intentions, they are still under the threat of numerous centralized problems such as downtime, DDOS attacks, hacks, random errors, all of which put their users at risk.

Even the most respected centralized systems can come under pressure, for example when the value of a contract rises exponentially – this exposes them to the risk of bribery, intimidation, regulatory pressure, and all it takes is one dishonest insider. Such a model is not scalable and is not incompatible with the idea of ​​decentralized infrastructure as the main engine of secure and reliable automation.

To overcome such shortcomings, oracles need to have the same security and reliability guarantees as the blockchain, but in a different form, given their differences.

Standard for safe and secure oracles

In order to ensure determinism at the oracle level, Chainlink has developed a system of decentralized oracle networks (DON/decentralized oracle network), where each network/DON includes a combination of multiple security techniques required to serve a specific scenario/project.

Open Source – Open source technology allows the entire blockchain community to independently validate the security and reliability of Chainlink source code and features, and suggest how it can be improved.

External Connectors – tools for creating connections to any off-chain resources or APIs – allow nodes to securely store API keys and manage logins, which in turn allows smart contracts to receive data from any external systems and APIs, including those protected by a password or credentials.

Decentralization – Decentralization at the source level protects each node and/or data source from a single point of failure, and gives all users the assurance that this data will be available, delivered on time, and at the same time resistant to manipulation.

Data signing – all nodes cryptographically sign the data they provide for smart contracts, which allows all users to determine which nodes sent the data, see their history, and thus determine the quality of their service.

Service Agreements – The use of binding on-chain agreements between the requesting smart contract and the oracle provider, which set out the terms of use of the oracle services and fines/rewards for the quality of the information provided, provides users with quality assurance for their off-chain data requests.

Reputation Systems – The flow of signed on-chain data to reputation systems allows users to make informed decisions about which nodes offer the best quality of information about themselves and which do not. Such information is a wide range of metrics for assessing the quality of years, such as the number of successful requests, the list of clients served by a given node, the average request processing time, and so on.

Certification – allows nodes to increase their security and reliability with all sorts of quality certifications, and thus provides users with additional guarantees such as KYC (Know Your Customer / know your customer), node geolocation, feedback on the security of the node infrastructure, and a lot others.

Decentralized Oracle Networks (DONs) allow smart contracts to securely connect to external data and systems

All of the above are just some of Chainlink’s features, which provide users with a whole set of guarantees to ensure a safe and secure oracle engine. With these key features, smart contracts on any blockchain can access off-chain data without compromising determinism, and provide a strong base from which to build next-generation automation.

Chainlink Labs is looking for volunteers for the role of a community of lawyers throughout the Russian-speaking space, with a real prospect of further employment. Если интересно, пишите в личку, пообщаемся.

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What Is DIA (DIA)?

DIA (Decentralised Information Asset) is an open-source oracle platform that enables market actors to source, supply and share trustable data. D IA aims to be an ecosystem for open financial data in a financial smart contract ecosystem, to bring together data analysts, data providers and data users. In general, DIA provides a reliable and verifiable bridge between off-chain data from various sources and on-chain smart contracts that can be used to build a variety of financial DApps.

DIA is the governance token of the platform. It is currently based on ERC-20 Ethereum protocol.

The project was founded in 2018, while the token supply was made available to the public during the bonding curve sale from Aug. 3 through Aug. 17, 2020, where 10.2 million tokens were sold.

Who Are the Founders of DIA?

The DIA association was co-founded by a group of a dozen people, though Paul Claudius, Michael Weber and Samuel Brack are the leaders.

Claudius is the face of the project and its lead advocate, sometimes also mentioned as a CBO. He has a masters degree in international management from ESCP Europe and a bachelors in business and economics from Passau University. Apart from working on DIA, he is also a co-founder and CEO of BlockState AG and c ventures. Before crypto, he had worked as director for a nutrition company called nu3.

Michael Weber is DIA’s Founder and Association President. He holds degrees in management from ESCP Business School and an economics and physics from University of Cologne, Germany.

He has worked in several banks and financial institutions before turning to crypto, where he founded such projects as Goodcoin, myLucy and BlockState.

Samuel Brack serves DIA in the role of CTO. Like both Claudius and Weber, he shares the same position at BlockState. He has a masters degree in computer science from Humboldt University of Berlin, where as of January 2020, he is still studying for his PhD.

What Makes DIA Unique?

DIA aims to become the Wikipedia of financial data. It specifically addresses the problem of dated/unverified/hard to access data in the world of finance and crypto, especially DeFi, while proposing to solve it viaa system of financial incentives for users to keep the flow of open-source, validated data streams to the oracles up and running. The current design of oracles, DIA argues, is non-transparent, difficult to scale and vulnerable to attack.

The DIA governance token will be used to fund data collection, data validation, voting on governance decisions and to incentivize the development of the platform. Users can stake DIA tokens to incentivi`e new data to appear on the platform, but access to historical data though DIA is free.

Check out Chainlink, a decentralised oracle network for DeFi

Tellor is another Ethereum-based oracle for DeFi and DApps

What is a DAO?

New to oracles and DeFi? Learn more with our glossary.

Ready for more? Check out our blog for the latest crypto news and insights.

How Many DIA (DIA) Tokens Are There in Circulation?

The total DIA token supply is limited with 200 million coins minted. 10 million tokens were initially sold at a private sale, 19.5 million are with early investors and advisors, Outlier Ventures being the largest. 30 million coins were offered for a bonding curve sale in August 2020, out of which 10.2 million were sold to the public, and the remaining 19.8 million burned. Another 24 million tokens are allocated to founders and team with a 29 month vesting period, and 25 million locked for the future use for the development of the DIA ecosystem. Finally, 91.5 million DIA tokens are in the company’s reserve to be unlocked in equal parts over 10 years every December. Out of the first unlocked part, half of the tokens were burned in an instant, after the community vote makes the decision.

It is planned that smart contracts using DIA oracles will be receiving DIA Governance Tokens on a daily basis through what they call “proof-of-use” and “proof-of-truth” mechanisms.

How Is the DIA Network Secured?

DIA is a standard ERC-20 token, meaning it requires Ethereum to function, inheriting all its strengths and weaknesses. The Ethereum network is one of the largest and thus strongest because of its decentralization, as all transactions are protected by the Ethash proof-of-work function. E RC-20 merely defines a set of rules for tokens to operate on. Downsides of Ethereum may be noticeable: for example, congestion can hike the price of gas needed to perform transactions, leading to delays and abnormally high transaction fees, which impact all participants.

Where Can You Buy DIA (DIA)?

DIA is a freely-tradable token. Pairs available for trading include BTC, USDT and ETH The top exchanges for trading in DIA are currently Binance, OKEx, HBTC, Bidesk, and BiKi. You can find others listed on our crypto exchanges page.

New to crypto and want to know how to buy Bitcoin (BTC) or any other token? Find out the details here.

Cryptocurrency investment fraud

There are many types of cryptocurrency scams. Below are the most common ones.

Fake Sites

Fraudsters sometimes create fake cryptocurrency trading platforms or fake versions of official crypto wallets in order to trick unsuspecting users. The domain names of fake sites tend to be similar to the domain names of the sites they are trying to imitate. Their differences from legal sites are so insignificant that they are difficult to recognize. Fake cryptocurrency sites often work in one of the following ways:

• Like phishing pages. All the data indicated on them, such as the password from the crypto wallet and the phrase for recovering funds, as well as other financial information, fall into the hands of scammers.
• Like simple theft. Initially, the site allows you to withdraw a small amount of money. This creates the impression of reliability and profitability of investments, which leads to an increase in the amount invested. However, on subsequent attempts to withdraw funds, the site either closes or rejects the request.

Phishing scam

Cryptophishing often targets online wallet data, such as crypto wallet private keys, which are needed to access funds within the wallet. This type of scam is similar to other phishing attacks and is associated with the fake websites described above. The attackers send an email that prompts recipients to go to a specially crafted website and enter secret key details. Once the attackers get this information, they steal the cryptocurrency in these wallets.

Market buildup schemes (“pump and dump”)

In this case, a specific cryptocurrency or token is promoted by scammers through email or social media campaigns: Twitter, Facebook or Telegram. In pursuit of profits, traders are in a hurry to buy this cryptocurrency, which leads to a sharp increase in its price. The scammers then sell their assets at inflated prices, causing the value of the cryptocurrency to plummet. This may happen within minutes.

Fake Apps

Another common way to scam crypto investors is through fake apps available for download on Google Play and the Apple App Store. Such applications are quickly detected and removed, but they still cause losses for many investors – thousands of people download fake cryptocurrency applications.

Fake Celebrity Recommendations

In order to attract the attention of potential victims, crypto scammers sometimes pretend to be celebrities, businessmen and influential people or claim support from them. Sometimes this involves selling phantom cryptocurrencies to novice investors that do not actually exist. These scams can be quite clever, with flashy websites and glossy brochures showing support for celebrities like Elon Musk.

Giveaways

In this case, the scammers promise to return or multiply the cryptocurrency sent to them in the process of the so-called free distribution. Smart feeds, often simulating messages from real social media users, can create a sense of legitimacy for such a giveaway and give users a sense of urgency. Seeing such a “once in a lifetime” opportunity, users quickly start transferring funds in the hope of instant profit.

Blackmail and extortion

Another method used by scammers is blackmail. They send emails claiming to have evidence of user visits to adult websites and threaten to expose them unless they receive a private key or a cryptocurrency ransom.

Cloud mining scam

Cloud mining companies allow you to rent mining equipment from them for a fixed fee and a share of the supposedly earned income. Theoretically, this allows you to mine cryptocurrency remotely without purchasing expensive mining equipment. However, many cloud mining companies are fraudulent or, at best, inefficient. When cooperating with them, the user either loses funds or earns less than expected.

IPO Fraud

An Initial Coin Offering (ICO) is a way for start-up cryptocurrency companies to raise funds from future users. Typically, customers are promised a discount on new cryptocurrencies in exchange for investing in existing cryptocurrencies such as Bitcoin or other popular cryptocurrencies. Some ICOs turned out to be fraudulent: to deceive investors, the attackers even rented offices and created high-quality marketing materials.

How to recognize cryptocurrency scams

So, how to recognize crypto fraud? We list the main points to which you should pay attention.

Promises of guaranteed profits. For any investment it is impossible to guarantee profitability: their market value can both rise and fall. Any cryptocurrency-related offer that promises guaranteed profits is a suspicious sign.

Inconsistent or non-existent technical document. A white paper is one of the most important attributes of a cryptocurrency initial offering, so every cryptocurrency should have one. This document should describe how the cryptocurrency works and how it will work. If the whitepaper doesn’t have any content, or worse, doesn’t exist, be careful.

Aggressive marketing. All companies use advertising. However, crypto scammers use aggressive marketing to attract users: online advertising, advertising with opinion leaders, offline promotion and other methods. Their goal is to reach as many people as possible in the shortest possible time and get paid quickly. If the cryptocurrency ad seems too intrusive and contains unrealistic claims that are not backed up by facts, take your time, do your own research and gather information.

Team anonymity. For most investment companies, it is possible to find out who their key employees are. This usually implies the availability of information about the key employees who manage the investment, as well as an active presence of the company in social networks. If it is not possible to find out who controls the cryptocurrency, this is an alarming sign.

Easy money. All investment offers that promise easy money, cash, or cryptocurrency are likely to turn out to be scams.

How to protect yourself from cryptocurrency scams

Many crypto fraud schemes are quite complex and look convincing from the user’s point of view. To protect against cryptocurrency fraud, it is recommended to take the following measures.

Protect your wallet. Cryptocurrency investments require a wallet with private keys. The request to provide key data to participate in a profitable investment transaction is most likely a scam. Keep your wallet keys private.

Keep an eye on the wallet app. On the first transfer, send a small amount of funds to make sure that the application for working with a crypto wallet is legal. If you see suspicious activity while updating an app, stop updating and uninstall the app.

Invest only in understandable instruments. If you do not understand how a certain cryptocurrency works, before making a decision to invest, it is recommended that you take your time and study it in more detail.

Take your time. Fraudsters often use high pressure tactics, promising bonuses and discounts in case of immediate participation, in order to force users to invest funds faster. Take your time before investing, do your own research.

Don’t trust social media ads. Attackers often use social media to promote their fraudulent schemes. To increase user confidence, advertisements may include unauthorized images of media personalities or famous businessmen, as well as offer gifts or easy money. Maintain a healthy skepticism and exercise due diligence if you come across an advertisement for investing in cryptocurrencies on social media.

Ignore cold calls. If for no reason they try to offer you the opportunity to invest in cryptocurrency, it is probably a scam. Never give out personal information or transfer money to anyone who contacts you in this way.

Download applications only from official platforms. The Google Play Store or Apple App Store may also contain fake apps, but downloading apps from these platforms is safer than from other sources.

Do your own research. The most popular cryptocurrencies are not fraudulent. But if you haven’t heard of a particular cryptocurrency, research it: find out if there’s a white paper and read it, find out who hosts it, how it works, and find reputable reviews and testimonials about it. To avoid being scammed, check if it is on an up-to-date, trustworthy list of fake cryptocurrencies.

Too tempting offer. Companies that promise guaranteed profits or instant riches are most likely scams. If an offer seems too tempting, proceed with caution.

As with any type of investment, never invest the last money you can’t afford to lose. Even in the absence of fraud, cryptocurrency is an unstable speculative instrument, so it is important to understand the risks.

What to do for cryptocurrency scam victims

Cryptocurrency fraud can have disastrous consequences for the victim. If you have made a payment or disclosed personal information, it is very important to act quickly.

Contact your bank immediately if you:

• Made a payment using a debit or credit card.
• Made payment by bank transfer.
• Provided your personal details.

Cryptocurrency scammers often sell their data to other cybercriminals. Thus, to prevent further damage, it is important to change the usernames and passwords for all accounts. If you are the victim of a crypto scam on social media, you can report it on the respective platform. Depending on your country of residence, you may be able to report fraud to the appropriate authority in your jurisdiction. For example, in the USA it is the Federal Trade Commission. There are similar organizations in other countries.

Frequently Asked Questions about Cryptocurrency Fraud

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Related articles:

• What is cryptojacking and how does it work?
• Fraudulent websites – what they are and how to avoid them
• How to report a website

SWRV price today

Swerve price today is $0.290749 with a trading volume of $3,924,780 in 24 hours. The price of SWRV has decreased by -2.7% in the last 24 hours. There are currently 17.22 million SWRV coins in circulation with a maximum supply of 19.4 million. The most active exchange where Swerve is being exchanged is BKEX.

What was the highest price for Swerve?

Swerve hit an all-time high of $39.04 on Sep 05, 2020 (almost 2 years).

What was the lowest price for Swerve?

Swerve was at an all-time low of $0.033745872447 on May 12, 2022 (about 2 months).

What was Swerve’s 24 hour trading volume?

Swerve’s 24-hour trading volume is $3,924,780.

Where can I exchange Swerve?

You can trade Swerve on BKEX, Gate.io and Huobi Global. Popular Swerve trading pairs on the market include SWRV/USD, SWRV/CAD, SWRV/EUR, SWRV/PHP, SWRV/INR and SWRV/IDR.

Advantages and disadvantages of wrapped tokens

The pros and cons of Wrapped cryptocurrencies are listed in the table below.

Resume

The idea of ​​creating Wrapped tokens belongs to the cryptocurrency consortium from Kyber Network, BitGo Inc. and Republic Protocol. The project team told the public about the developed technology on January 24, 2019. A few days later, the consortium released the ERC-20 standard WBTC, the first wrapped token in the history of the digital asset market.

The following persons participate in the issue and maintenance of Wrapped Tokens:

• Merchants.
• Custodials.

As of May 27, 2022, popular wrapped crypto tokens are:

• WBTC.
• WETH.
• WBNB
• BTCB.