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El Salvador set to make history by becoming the first country to adopt Bitcoin as legal tender

El Salvador Planning to Soon Adopt Bitcoin As Legal Tender

El Salvador, a country in Central America, is planning to introduce a ruling with an intent to emerge as the world’s very first sovereign government to approve bitcoin as legal tender, along side the U.S. dollar.

The multi-day conference that took place in Minami in 2021 regarding bitcoin is recognized as the remarkable bitcoin event in history. El Salvador’s president Nayib Bukele declared an open coalition with digital wallet company “Strike” to look forward to the modern financial infrastructure of the country using bitcoin technology. He said, within the next week, a bill will be sent to Congress to accept bitcoin as a legal tender.

The founder of the fast-growing network payments platform Strike, Jack Mallers, said this move would go down as the revolutionary step for the world of bitcoin.

He continued, The transformative thing about this is that bitcoin can be assumed as the biggest reserve asset ever formulated as well as it is also an outstanding monetary network. Keeping bitcoin furnishes a means to safeguard expanding economies from probable concussions due to inflation of fiat currency. Communicating from the main stage, he added the scheme would help in unleashing the proficiency and capability of bitcoin for use cases relevant to everyday life with an open network that will benefit people, industries, and civil sector services.

How it will benefit El Salvador?

El Salvador is primarily a cash economy, where generally 70% of individuals don’t possess credit cards or bank accounts. Settlements, or the cash sent home by migrants, represent over 20% of El Salvador’s GDP. Official services can charge 10% or more expenses for dealing with worldwide exchanges, which can sometimes require days to show up and occasionally require a physical fatch.

A resource doesn’t sponsor Bitcoin, nor does it have the complete confidence and support of any one government. Its worth is determined, partially, from the knowledge that it is digitally scant; there will just be the presence of only 21 million bitcoin.

While factors are as yet approaching about how the rollout will function, the news outlets are informed that El Salvador has amassed a group of bitcoin pioneers to help fabricate another economic environment with bitcoin as the ground layer.

The CEO of Blockstream, Adam Back, stated that this move was under uncertainty, but it still took place to make El Salvador the first nation to adopt bitcoin as a legal tender. He added, he is planning to Provide technologies like satellite and liquid infrastructure to make this country a successful example for the world. 

Conclusion 

President Bukele’s party has considerable authority over the legislative assembly of the country, so we can reasonably assume that this bill will get passed. Also, This move isn’t new to El Salvador as in March, Strike introduced its mobile payments app, and it shortly came to be the most downloaded app in the nation.

Learn more about cryptocurrency and take up a suitable cryptocurrency course at Blockchain Council.

El Salvador set to make history by becoming the first country to adopt Bitcoin as legal tender

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How lending and borrowing take place in Decentralized Finance (DeFi) ?

As associations began exploring different avenues regarding the potential of  Blockchain technology, the financial area has additionally introduced the need to assemble blockchain-based fintech applications. By covering practically every financial service from online installments to cryptocurrency trading and its storage, Blockchain is set to change the conventional finance system. With the rise of DeFi (Decentralized Finance), Blockchain has become more assertive.

With loads of enthusiasm yielded effectively in the market, DeFi has continued thriving ahead and drawn in a significant capital sum since 2020. As indicated by DeFi-Pulse, the Total Value Locked (TVL) in DeFi programs is at $20.46 billion today, up from under 1 billion dollars a year ago.

Let’s look into what makes Decentralized finance and Defi lending such a significant hit. This article discusses each of the DeFi related concerns in detail.

Table of content

  • What is DeFi?
  • What is DeFi lending and borrowing?
  • How does DeFi lending work?
  • Benefits that Defi Lending offers to its users.
  • Improved speed of loan procedure.
  • Greater consistency in lending decisions.
  • Compliance with local, state, and federal regulations.
  • Permissionless
  • Transparency
  • Interoperability
  • Self-custody
  • Closing thoughts

What is DeFi?

In most simple words, DeFi is an environment of financial applications dependent on Blockchain technology that works without central administration intercession or third-party involvement. It utilizes a P2P system to build decentralized applications that would empower everybody to interface and deal with their assets regardless of their location and status. It intends to give a transparent, open-source,  and permissionless financial help setting. 

Smart contracts are the base for decentralized finance (DeFi) as they are self-executing and don’t need intermediary supervision. Since Ethereum launched the DeFi concept, the more significant part of the DeFi applications is Ethereum Blockchain.

What are DeFi lending and borrowing?

DeFi lending platforms offer crypto lendings in a trustless way, i.e., without delegates and permit users to enroll their crypto coins on the platform for lending. A borrower can take a loan by using a decentralized platform called P2P lending. Moreover, the lending practice permits the lender to gain interests. DeFi has the highest lending growth rate and is the most predominant patron for locking crypto assets among all decentralized applications (DApps).

How does DeFi lending work?

DeFi loans allow clients to loan their crypto to another person and acquire interest on the loan. Banks consistently have been using this system to the fullest. Presently, in the realm of DeFi, anybody can turn into a lender. A loan provider can loan their assets to other people and will gain interest on that loan. This process can be made possible through lending pools.

Clients can pool their assets and disseminate them to borrowers utilizing smart contracts. There are different approaches to disperse interests to financial investors; subsequently, it is recommended and worth taking out time to research to learn about your interest type. It is similar for borrowers, too, as each pool will carry a different methodology on the best way to borrow.

To get a loan, the borrower needs to offer something more important than the loan sum. Smart contracts are utilized to store this amount of currency of equivalent value to the sum of the loan. Collaterals are accessible in wide assortments; any crypto token can be used to trade borrowed cryptocurrency. For instance, if a client needs to get one bitcoin, he’d need to store the cost of one bitcoin in DAI.

Moreover, the costs of Bitcoins continue to swing remarkably. A case may emerge when the collateral cost dips under the cost of the loan. 

What are the benefits that DeFi Lending provides to its users?

  • Improved speed of loan procedure

Digital lending measures acquire the benefit of quick processing speed. DeFi lending platforms are supported by cloud-based assistance, analytics for fraud detection, and AI computations for ideal loan terms and risk factors. Every one of these advances helps to speed up the process. When the loan is validated, lenders send offers through e-contracts.

  • Greater consistency in lending decisions

Consistency in lending decisions is ensured by the rules clarifying credit policies. Differences in analyzing applicant details and structuring contracts by underwriters are removed.

  • Compliance with local, state, and federal regulations

Decision rules keep a report of who, when, and where these rules were employed and which of them were in effect. This acts as evidence and guarantees that the lender complies with local, state, and federal regulations.

  • Permissionless

DeFi lending enables permissionless access. This means any person with a crypto wallet has access to DeFi applications created on Blockchain, regardless of their location and without any requirements of the minimum amount of funds.

  • Transparency

The public Blockchain reports each transaction on the system and is analyzed by each user on the blockchain network. This transparency level regarding transactions authorizes productive data analysis and guarantees verified access to each user on the system.

  • Interoperability

The interconnected software stack guarantees that decentralized finance procedures and applications blend and fill out one another.

  • Self-custody

The application of Web3 wallets allows  Defi market participants to maintain strong custody over their assets and regulate their data.

Closing Thoughts

This thorough discussion exhibits that DeFi lending has an impressive capacity to reshape the whole financial system. It strives to decentralize the foundation of traditional finance services. DeFi lending, along with the captivating technology, truly can revolutionize the global economic landscape.

Get yourself enrolled for the best blockchain courses and learn blockchain technology in detail at BLOCKCHAIN COUNCIL.

How lending and borrowing take place in Decentralized Finance (DeFi) ?

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5 Blockchain Predictions Moving Forward

Codezeros

Most of the information and technology in 2021 is on the verge to adapt new changes to attain faster and more predominant communication. That is why Blockchain technology is already on the verge of embarking a stern existent into the framework.

Thus, many blockchain development companies are upgrading day by day and evolving more. This evolution can benefit your business as well.

5 Blockchain Predictions Moving Forward

Stronghold of blockchain’s future

It is through blockchain and identity of several newer technologies that came as a part of cryptocurrencies, like Bitcoin and Ethereum, the whole money transaction format has seen a newer advancement. Apart from merely being seen as a digital payment platform, there is more that is expected from Blockchain technology.

Blockchain has eradicated the complete usage of centralized management entities such as a bank. It is because it is a distributed peer-to-peer ledger system, and money transmission from one continent to another has got easier. The system has brought some newer introductions like data blocks, which are kept in series or chained together while a ledger transaction is made.

One can get truly high transparency thanks to the open-source, impermeable configuration of the blockchain. Each record that passes through blockchain technologies is sent through millions of computers worldwide to get confirmed about the accuracy.

And, this advent of new technology is making the world change. Be it transactions for business or record keeping; the new blockchain technology has completely automated the whole process.

Businesses should embrace this technological change because, firstly, it is cost-effective and also brings a faster solution.

So, here are the 5 most important predictions of blockchain technology.

1. Government data distribution

This move of the government to the Distributed Ledger Technology system has been predicted for a long time because of the rapid digitization of the system.

It is due to the increasing advantages that Distributed Ledger Technology holds, like trust, transparency, and security via encryption and validation features.

2. Greater transparency between industries

Transparency and security will get a level up when blockchain is spread throughout the world. It is well anticipated that in some years, industries will be connected with a single blockchain that is shared all across.

Long had gone the age when each company or industry had systems that differ from company to company. However, with a single system, things become less complex and are better for accessibility to the public. And truly, it sticks with the primary aim of keeping things crystal clear whilst providing great security.

3. Institution-issued cryptocurrency

Along with the usage of the blockchain network, seemingly, the government will put focus on cryptocurrency development. The shift is much needed as it will transform fiat currency into cryptocurrency. A rapid change is needed because cryptocurrency benefits in being more traceable, which has reduced settlement times and is overall more efficient.

Another thing, which came into highlight is that cryptocurrency, just like the fiat currency, is also backed by real assets, and in this, the prices can be manipulated in numerous ways.

Zimbabwe recently shook the world by using Bitcoins to oppose the national currency. And they are doing this to form their indigenous digital currency, which will be nationally available. And this creates a mega opportunity for any blockchain development company to make a mark in the industry.

4. Blockchain and identity

The identity systems are very much defective these days. Firstly, they are more likable to get into errors, they function in isolation, and they are completely porous. However, the blockchain identification platform can be effective here, as it uses a single source to verify identity and assets. The “self-sovereignty” feature of blockchain has brought newer advantages in identity.

1.5 billion people throughout the world have several inadequate ways of proving their identity. However, even the disqualified people will get the ability to access legal documentation and privileges with the help of the blockchain platform.

The information of identification is stored in an open-source encrypted ledger, which makes things more secure than keeping them in the hand of third-world agencies.

5. World Economy via blockchain

The international trading that has been preexisting for years is now found to be an inefficient and dysfunctional process. These demerits of international trade shallows and slows down the motion of trade and dampens trade between nations. International trade in 2021 is full of fraud, counterfeiting, dirty politics, and errors.

Cryptocurrency can eradicate all such issues like fraud and less productivity, as it bundles up several methods of payment, paperwork, and regulation through a single digital international system. This process will also increase the trust between each nation.

Blockchain development is much needed not only because it is advanced but also due to cryptocurrency involvement. The business applications are getting smart contracts and automated tracking and policy enforcement. All of these greatly increase reliability and make things easier.

Conclusion

Adapting and shifting the complete framework of money transaction into Blockchain development is much needed in the world, more of the digitization that is going all around the world.

5 Blockchain Predictions Moving Forward

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Hybrid Blockchain: How It Differs From Federated Blockchain?

Hybrid Blockchain: How It Differs From Federated Blockchain?

You must have heard a lot about types of Blockchains. This article covers one of the exciting topics, and that is how Hybrid and Federated Blockchains differ from each other.

Table of Contents 

  • What We Need Different Blockchains?
  • What are Hybrid Blockchains?
  • What are Federated Blockchains?
  • How Do They Differ?
  • Concluding Lines 

What We Need Different Blockchains?

The advent of Blockchain has taken the world by storm. Gone are the days when Blockchain was utilized only for digital payments like cryptocurrencies; today, Blockchain is being used for different applications and that too in different ways. In other words, the usage of blockchain differs according to the use-cases. For instance, Bitcoin is a public Blockchain network as people worldwide can become a node, verify other nodes, and trade bitcoins. But such Blockchain doesn’t suit everyone’s agenda. For instance, banks need to use their own private Blockchains in order to simplify, streamline and verify transactions and contracts that would previously have taken far longer and potentially been less secure. Thus depending on the use and requirements, there are different ways by which the blockchain network can be set up. 

Want to gain an in-depth understanding of Blockchain? Are you looking for the best Blockchain Certification courses? Your search ends here!

What are Hybrid Blockchains?

These Blockchains are best defined as a blend of a private and public blockchain. They aim to combine the benefits of both of the blockchains while curbing the disadvantages of each. It has its use-cases in those enterprises that neither want to deploy a private blockchain nor public Blockchain but want to use both in order to avail the combined benefits. With such a Blockchain network, one can have a private permission-based system and a public permission-less system as well.

Such a Blockchain network allows only a selected section of records to go public while keeping the rest confidential in the private network. 

Advantages 

  • Works in a closed ecosystem without making everything public.
  • Immune to 51% attacks
  • Offers privacy
  • Offers better good scalability
  • Allows rules to be changed as per the needs

If the idea of building on a private blockchain sounds interesting to you, you can get enrolled in the Blockchain Council and become a Certified Blockchain Expert. 

What are Federated Blockchains?

Federated Blockchains are read also known as Consortium blockchain that are best suitable for organizations where there is a need for the public as well as private Blockchain. This definition may sound identical to Hybrid Blockchains, but please note that they are not the same. 

In this type of network, there is more than one central in-charge that grants access to pre-selected nodes for writing and auditing the Blockchain network.

It is partly public and partly private, and there are two types of parties(users) involved- firstly, there are users who have control over the Blockchain and decide who should get permission to access the network, and secondly, the users who can access those networks. The benefits of having such strict access indicate faster transaction speed, high scalability, and better privacy.

 Energy Web Foundation, R3 are examples of such Blockchains.


Advantages

  • Enhanced security
  • Better customizability and control over resources.
  • Offers access controls and better scalability
  • Works with well-defined governance structures

How Do They Differ?

You must have understood what hybrid and federated(consortium) Blockchains are. Now, let’s delve deeper and explore how these Blockchains differ. 

In hybrid Blockchains, some instances are public, whereas some are restricted. On the other hand, in the case of federated, only selected participants get full access to the network. Another point of difference is in terms of decentralization. Hybrid is known to be partially decentralized, whereas Federated offers complete decentralization. 

And when it comes to privacy level and transaction speed, both the Blockchains offer partial privacy and have fast transaction speed.

Private consortiums cater to business-to-business(B2B) transactions; hybrid blockchains, on the other hand, open the possibility of decentralized solutions involving business-to-customer (B2C) use cases.

Concluding Lines 

Both the Blockchain networks have something unique to offer, and therefore to state which Blockchain is best is not a simple answer. Depending on your enterprise requirement, you can choose the one and utilize its advantages.

At present, there is a rise in careers in blockchain technology. If you are interested in becoming a blockchain developer and building Blockchain-based applications, check out Blockchain Council. 

To get instant updates about Blockchain Technology and to learn more about online Blockchain Certifications, check out Blockchain Council.  

Hybrid Blockchain: How It Differs From Federated Blockchain?

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Blockchain in Action — 16 Inspirational Examples

Codezeros

If you want to have a decentralized record of digital data accessible by all, then better fix your gaze towards blockchain technology. To break a single word into two, Blockchain has information in which the data (i.e., the block) is deposited inside a communal database (i.e., the chain).

This digital technology is primarily made to rave up banking security, as unsecured parties fail to hack it. However, Blockchain has various applications; you might have heard of them, so below are their names.

1. Bitcoin

Bitcoin is known to be the most prominent application of Blockchain, which is also termed as a cryptocurrency because it is a virtual currency. Things get completely simplified here, as money transferring gets easier because of the absence of intermediaries like banks or administrators.

Similar to Bitcoin, Bitcoin Atom is also a part of it, used for transferring funds in a simplified way with no trading charges and no possibilities of hacks during exchanges.

Blockchain in Action — 16 Inspirational Examples

2. MediLedger

With Blockchain, MediLedger, a pharmaceutical company, has a decentralized network that can record transactions and data to establish worth and improve security.

3. Spotify

A popular name in the music world, Spotify, opted for the procurement of Mediachain Labs and took help from a blockchain development service provider to switch to blockchain technology. This helps them to associate with an artist who has licensed tracks and agreements.

This move has led to more transparent and clear ownership of records. This move also helped the small artist to get proper recognition, which they were denied before.

4. BitGive

BitGive, which also implemented Blockchain technology, has its sole mission to benefit charities worldwide. It has a project that provides transparent data and financial information to donors.

5. Maersk

Maersk and IDM combined to generate a new supportive Blockchain effort known as TradeLens, which is supported by blockchain software development companies and other leading brands.

TradeLens is exclusive for its customized smart-contract services that execute complicated shipping orders, which lowers the presence of mediators in the whole process.

6. Circle

The peer-to-peer payment technology of Circle, which is also termed Circle Pay, is primarily used for buying and selling bitcoins. Circle uses open, Blockchain-based protocols to build products.

7. Aeternity

Another example of Blockchain development can be found in Aeternity. It serves a great role in performing rapid transactions. The brand has adopted several new things like IoV, IoT, FinTech, Unbanked, Video gaming, Trust-free Exchanges, etc.

8. Matchpool

To stay in association and generate new connections, a platform named Matchpool utilizes cryptocurrencies. It provides bonuses on linking the associates of different communities such as Uber, Airbnb, or dating services.

Here the cryptocurrency comes in the form of Guppy tokens, which is better known as GUP. These are mainly used for making payments within the app.

9. Siemens

Blockchain development services have led Siemens Digital Grid and its start-up financier, named next47, to work in collaboration with LO3 for a new project. The project is related to Blockchain technology, which lets local people generate and use and buy power through it.

10. BASF

BASF Corporation took help from a blockchain development company to scrutinize the value of livestock. The information can be used to see full transparency about the food they eat.

11. Loyyal

Loyyal, which is a cross-sector rewards and loyalty platform, reinvented how customers will get incentives.

It makes use of smart contracts and Blockchain technology to manage travel and hospitality. It also correctly looks over the incentives of all employees and their corresponding credit card rewards.

12. SimplyVital Health

With the added cost of aligning different technologies and issues due to sharing of data for security and privacy issues, the health sector hasn’t yet upgraded a lot from the past.

However, with the help of blockchain app development, SimplyVital Health has granted the authority to patients to share and access their healthcare information.

13. Guts

Guts which also works on blockchain technology, reduces the opportunity of ticket fraud and overcharging. Its algorithm maintains similar ticket prices and locks the prices by linking them to the mobile number.

14. De Beers

By tying up with 5 various other diamond manufacturers, De Beers has developed Tracr. It is a first-level Blockchain platform, which aids in securely tracking a diamond. The platform is designed to deliver untampered data whenever there is any suspicion revolving around it.

15. Ubiquity

Ubiquity, also a part of the blockchain platform, provides records of property information with a clean record of ownership. The consumer can input their data and store it on a blockchain with its Patent Pending API and SaaS Platform.

16. AIA Insurance

The bancassurance network, i.e., AIA Insurance, has led its bank partners to share data in real-time, reducing the processing time. It perceives new starts to have insurance with the blockchain accelerator.

Conclusion

Thus, through this, we hope that it is clear to you that blockchain development is a vast system with a vast scope in every sector. So, align your brand with it to upgrade and earn better revenue.

Blockchain in Action — 16 Inspirational Examples

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