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A Comparison of Global Futures Trading Platforms Shows 5 Advantages of CoinEx Futures
Published
2 weeks agoon
By
admin
In today’s market, plenty of trading platforms, including mainstream exchanges like Binance, Huobi, Bybit, and KuCoin, have introduced futures contracts. Huobi has extensive experience in futures and provides a wide range of linear/inverse contract markets. However, its market share has fallen sharply, and the platform’s user traffic is also going downhill. Bybit and Binance are both professional futures trading platforms that demand a high threshold. Bad news is that Bybit was chased out of the UK by FCA, while Binance has suffered several security breaches.
Futures beginners should avoid professional-focused trading platforms with a high threshold. Instead, they should go with a platform like CoinEx that features a low threshold and simple operations. Today, we will look into the advantages of CoinEx Futures in 5 aspects.
I. CoinEx Futures boasts simple, easy–to–use, convenient operations
First of all, compared with professional-centered futures trading platforms like Binance and Bybit, CoinEx Futures offers simple, easy-to-use products. It aims to allow all crypto investors to trade futures with ease, moving futures trading out of the realm that’s exclusive to professional traders.
With easy operations, convenient order placement, and clear position information, CoinEx users can trade futures through an extremely smooth process. Secondly, before starting to trade futures on CoinEx, users can quickly master the key takeaways through simulated operation tutorials provided by the platform, which helps them avoid the common booby traps in futures trading.
In terms of functionality, CoinEx Futures provides all-inclusive, easy-to-use functions like TP & SL, Close All, and Futures Calculator, which helps users manage their positions with greater ease.
II. CoinEx boasts a zero-accident record against its peers’ frequent security scandals
In 2020, KuCoin suffered a serious hacking incident that incurred an asset loss of about $275 million. Apart from KuCoin, Binance, a top crypto exchange, has also been hacked several times. In 2019, over 7,000 bitcoins were stolen from the exchange. The frequent security breaches Binance has suffered jeopardize the bond of trust between this leading crypto exchange and its users in the long run.
CoinEx, on the other hand, has suffered no security scandals in the 5 years since its inception, which indicates the strength of its security system. On CoinEx, all crypto assets are 100% reserved. The exchange does not misuse users’ assets for any reason whatsoever. Moreover, all withdrawals are 100% processed in time. CoinEx has also adopted multiple security strategies and established a well-rounded security system to fully protect its system and users’ assets. For example, the exchange regularly conducts penetration tests to promptly identify security loopholes and monitors any abnormal system changes in real-time.
III. CoinEx boasts an all-encompassing product family that spans all crypto categories
In addition to futures, CoinEx also provides many other products and services, including margin trading, AMM, mining, financial service, and CoinEx Dock. The exchange features trading sections for BTC, BCH, ETH, and stablecoins, over 500 first-rate, innovative cryptos, and nearly 1,000 trading markets. As an exchange under ViaBTC Group, CoinEx is backed by an all-inclusive ecosystem that brings together a mining pool, an exchange, a wallet, a public chain, and an institutional investor. Today, CoinEx has earned global user recognition with its fast, stable performance and smooth deposits/withdrawals. In the future, the exchange will continue to strive for a comprehensive, stable service ecosystem.
IV. Backed by a tech background, CoinEx boasts years of crypto expertise
According to its official introduction, CoinEx is backed by a founding team consisting of technical experts who boast rich experience in the security of systems, operations, and wallets. For instance, Haipo Yang, CoinEx’s founder, is a top-notch tech expert in the industry. During the early days, he launched ViaBTC Pool and completed all the coding. In addition, members of CoinEx’s core team all have a background in world-renowned companies that focus on the Internet or finance, including some of the earliest crypto practitioners and investors. The team has expertise in technology R&D and global operations.
When it comes to technology, CoinEx independently built the world’s first 10,000-TPS trade matching engine that allows it to carry 10,000 transactions per second, running stably despite the concurrence of massive transactions. In addition, on CoinEx, deposits arrive as fast as five minutes, and small withdrawals are processed in real-time. CoinEx’s system remains steady and solid even when the trading volume surges during a bull market.
V. Centering on user experiences, CoinEx keeps pushing for globalization
While building a global presence, CoinEx has always prioritized product & service and user experiences. As the exchange explores international markets, it has remained committed to product development and the user-first principle. Right now, CoinEx is providing services in markets around the world 24/7. Available in 16 languages, the exchange continues to venture into new markets.
It should be noted that CoinEx’s product design features an interactive experience that combines elements such as aesthetics, simplicity, smoothness, and practicality, which allows users to benefit from simple, elegant operations. This also shows that the CoinEx team has always been committed to product improvement, providing users with one-stop crypto trading services that are more satisfying and considerate.
Overall, when choosing a suitable futures trading platform, apart from security, users should consider whether a platform’s products are easy to use and if its operations are convenient. In addition, they should also account for the products and services that are available on a platform to benefit from efficient, satisfying crypto trading experiences.
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Cryptocurrency casinos are an increasingly popular way for many casino fans to play online. Sometimes called Bitcoin casinos after the most popular type of crypto of the same name, more and more crypto sites launch each year.
A great Bitcoin casino will offer:
Anonymous and secure online gambling, with little or no info required from the operator
Loads of different crypto options, from classic and popular coins like Bitcoin or Ethereum to stablecoins like Tether or meme coins like Doge
Exclusive Bitcoin or blockchain-based games, that can be provably fair
Larger welcome bonuses than online casinos from highly regulated markets
Best Bitcoin Casino Ranking
But how does a new crypto casino player get to know all that? Finding all the information, never mind the nuts-and-bolts clauses behind the scenes, can take a lot of time.
That’s why we assembled this list of top bitcoin casinos. Casinos come to us, and our expert reviewers look at every detail of the site before rating them. All, so you don’t have to. Easy!
So, what is the best bitcoin casino we’ve looked at then? Well, you can see below for our expertly assembled top list.
However – some things are not exactly quantifiable. The best Bitcoin casinos have unique aspects to them, so you can’t necessarily say which single ones are the best!
Generally, we tried to put our top list in order. But, for example, some sites will focus on exclusive Bitcoin casino games – while others will have more games from traditional providers. Others might have the biggest welcome bonus, but they don’t offer so many crypto casino games to use with.
Swings and roundabouts. Anyway, any casino on our top list is at least worth checking out for one reason or another!
Take a look today for a comprehensive list of the best bitcoin gambling sites available right now.
Wherever you are in the world, whether you’re looking for the best bitcoin casinos in Ghana or the best Ethereum casino in New Zealand – our international options have you covered.
Just take a look on the best bitcoin casinos overall:
- 7Bit Casino – over 1500 games from a very reputable operator
- Bitstarz – Hugely popular site with in-house crypto purchases
- WildTornado – Over 6000 games and a unique loyalty scheme
- mBit – Loads of games and bonuses with fair terms
- KatsuBet – Over 3000 slot games available
- Bitcoin Penguin – Try any and all games for free, no account needed
- Crypto Wild – Crypto-only casino with exclusive blockchain games
- Betplay – Unlicensed international option with lots of cryptos
- Cloudbet – Huge range of cryptos and a truly massive welcome bonus
- Betchain – Very well-designed site from a highly-regarded owner
* Play always responsible!
Take a look a little bit closer:
1. 7Bit Casino

Reasons to log in
- 7Bit Casino is our best crypto casino – run by international operator DAMA N.V
- Massive welcome bonus with very fair terms and no hidden clauses
- Impressive, modern website with over 1500+ crypto casino games
Facts about
7Bit Casino is an online crypto casino owned and operated by Dama N.V, with a Curaçao international gaming license. They also run loads of casinos licensed in super-regulated jurisdictions like the UK and the EU too.
7Bit has an absolutely huge welcome bonus offer. Namely, 100% matched up to 1.5BTC (potentially $20,000 or more). It has a wagering requirement of 40x, which for a crypto game, casino offer is about average. That means there’s still some serious value to be had here if you’re a clever (or lucky) player.
With that massive welcome bonus, you can play through some 1500+ games, including crypto casino slots, table games, lottery games and more. The whole site is super modern and well-designed, too, with a lot of different bonuses and loyalty options to explore. And that goes for both mobile and desktop, with no downloads required!
2. Bitstarz

Reasons to log in
- Well-known bitcoin casino online, that has been operating since 2014 – well before cryptos took off
- Over 2000 crypto casino games, from many of the world’s top developers
- On-site and one-click crypto purchases via MoonPay – no need to visit an exchange
Facts about
BitStarz is one of the most, if not the most, known names of all Bitcoin online casinos. They’ve been operating for years and are now owned by respected operator Dama N.V too.
They have an excellently designed website, with over 2000+ games to choose from. That includes top global providers like Playson, Pragmatic Play, Spinomenal and many more.
The BitStarz welcome bonus is a bit hidden – with no banner advertising it on the main page or anything. Once you find it though, it offers a 100% match up to 1BTC with a 40x wagering. Plus, 180 free spins split into 9 days of 20.
You then get 50% matched up to 1BTC on your next three deposits too. All with the same terms!
Instead of choosing to heavily advertise the welcome bonus, Bitstarz focuses on bucket loads of tournaments, every single day of the week. From slots to live casino, to unique options like “SlotWars” Bitstarz is full of interesting ways to reward regular players.
And all of the tournament reward cash prizes are straight (crypto) cash – no wagering required. It can’t be underestimated how good that is to find when you play casino games with Bitcoin, and that’s a reason to visit Bitstarz all by itself.
3. WildTornado

Reasons to log in
- Brand-new crypto casino for 2022 – but with a well-known owner
- Absolutely loads of casino games, some 6000+
- Very well-designed and modern website
Facts about
You won’t find many crypto gambling sites with as massive a game collection as WildTornado. You won’t even find many traditional online casinos with that kind of collection, either!
Those 6000 titles are mostly slots, but they also offer an excellent live casino collection too. You’ll find a lot of these games are from smaller developers too, so if you’re used to playing only the headline big-name games – WildTornado offers a nice change of pace!
If you want to play Bitcoin casino online – there are plenty of worse options than WildTornado! As well as that massive game collection, they have a decent range of bonuses and a brand-spanking-new website for 2022.
That means all the modern features, bells and whistles included, and it all works super smoothly on mobile with no download needed. Just boot up the WildTornado site in your mobile browser of choice, and you can play bitcoin casino games in minutes!
4. mBit Casino

Reasons to log in
- Long-standing cryptocurrency casino, with a respected owner
- Generous bonus system and loyalty program, with all kinds of promotions
- Crypto-only site, so everything is catered to cryptocurrency players
Facts about
If you want to find your new favorite Bitcoin online casino game, you couldn’t do worse than mBit! This bitcoin gambling site is operated by respected Dama NV with a Curaçao license.
They have a very cool live chat system on the side of the main site page, which is where players can sit and chat about their bitcoin casino gambling exploits. Players can even tip others or make it rain – where everybody that’s active in the chat gets a bonus!
On top of that, mBit has one of the biggest ranges of casino bonuses out there. For example, you can get up to 1.5BTC matched and 1000 free spins on the welcome bonus alone! And that’s without reload bonuses, slot races, quiz games and exclusive bonuses for certain cryptos.
5. KatsuBet

Reasons to log in
- Loads of games in their 3000-strong collection, including some of the best bitcoin slots
- Reasonable deposit-match bonus with free spins
- Play with many different cryptos at this Bitcoin Cash casino
Facts about
KatsuBet might sound like a type of curry – but is it hot enough to be one of the best bitcoin gambling sites? Maybe!
They certainly have a lot of games, with some 3000-plus slots alone. That’s a lot to sink your teeth into!
There are also tons of bonuses and offers here including free spins, deposit matches, slot tournaments and more. The terms are generally acceptable at KatsuBet, not the best in the world, but they’re workable and there is some value to be had here when gambling bitcoin.
6. BitcoinPenguin

Reasons to log in
- Nice and modern website with no documentation required
- Loads of cryptos with a very small minimum deposit on each
- Try any and all games here for free, with no account
Facts about
Bitcoin Penguin is a crypto games casino with a decent range of casino titles to play and lots of cryptos to deposit with.
We’ll be straight up – they don’t have a proper license. But they’ve been operating for over 10 years without one. So, they must be doing something right to keep customers for that long!
Their site is very modern and done well, letting you play casinos with Bitcoin super easily. However, we would say one thing – it’s best you avoid the welcome bonus at Bitcoin Penguin.
It really does have some of the most restrictive, and difficult bonus terms of any casino on this list. This is a shame because a lot of the rest of this casino looks great and works smoothly.
But bonus hunters could definitely find better options on our list!
7. Crypto Wild

Reasons to log in
- Crypto exclusive casino – meaning everything is geared towards gambling with Bitcoin and other cryptos
- Gamble bitcoin with loads of bonuses including weekly cashback, reloads, free spins and more
- Exclusive Bitcoin online gambling games from Betsoft
Facts about
Crypto Wild is focused exclusively on crypto gambling, meaning cryptocurrency players get great deals and offers. For example, you can get up to a whole BTC matched across your first three deposits. Sweet!
There are also a ton of other bonuses and promotions available on a weekly basis, including lots of tournaments for slot games.
However – Crypto Wild is missing out on some of the biggest slot game names. Their site looks fantastic on both mobile and desktop, but if you’re looking for the absolute most popular slot games on the market, you won’t find them here.
A lot of their slots collection comes from BetSoft, which is an excellent developer with a huge collection of unique slot games.
But players looking for the top progressive jackpots or most-famous titles in online casino gaming might consider another option from our top list of online Bitcoin casinos.
8. Betplay

Reasons to log in
- Unique weekly cashback and loyalty rewards scheme
- Loads of cryptos accepted including altcoins like Tron, Binance Coin or Monero
- Exclusive bitcoin games like Aviator, Dice and Crash
Facts about
If you like Bitcoin online gambling, namely sports betting and casino gaming in one, Betplay might not be the option for you as there’s no sportsbook here.
But for players that enjoy slots and live casino games – there’s a lot to love at Betplay. Their range of exclusive Bitcoin and blockchain casino games is second-to-none. These certified fair blockchain-based titles could easily be the next evolution of online gambling. So, why not visit Betplay and try them today?
Speaking of Evolution, Betplay also offers a stacked live casino filled with all of Evolution’s top games for online gambling Bitcoin. HD-streamed roulette, baccarat or blackjack and incredible game show games await.
All completely backed with crypto-only gameplay, at this top bitcoin casino!
9. Cloudbet

Reasons to log in
- A veteran crypto casino site that has been around since 2013
- Absolutely loads of rarer and smaller crypto coins available to deposit with
- Massive 100% up to 5BTC welcome bonus with no wagering – but it’s released over a year of play
Facts about:
Cloudbet is a top bitcoin casino that’s been on the scene since 2013. That’s quite a long time in the crypto world. They launched well before Bitcoin, or any other crypto was considered a mainstream way to pay for things online.
Throughout all this time, they’ve been doing things in their own way. For example, they don’t have a traditional welcome bonus!
Their welcome offer is totally huge, up to 5BTC! However, it is released to you in 0.1BTC chunks, still a fair amount, each time you hit a new level of the loyalty program.
This requires a bit of commitment to get the full whack, as you have to earn loyalty points to unlock it – 150 at a time.
However, it can end up as one of the most potentially valuable bonuses out there – as it only really has a 1x wagering requirement.
As well as all that, Cloudbet is also a top bitcoin games casino in general with loads of bitcoin casino software and payment methods – as well as classic casino games. Easy!
10. BetChain

Reasons to log in
- New casino site from a respected international online bitcoin casino operator
- Loads of different bonuses and rewards, from cashback to loyalty points
- Lots of fiat currency deposit options as well as cryptos
Facts about
BetChain is quite a new crypto casino, but it’s one of the best crypto gambling sites in our opinion.
As well as being a respected operator with a slick, modern site, this is a mobile bitcoin casino too. (Most of them are, but BetChain was particularly good).
Simply boot up BetChain in your mobile browser of choice, and off you go. Super easy!
BetChain has some of the best Bitcoin slots you’ll find on the market in their collection too, with loads of exclusive games. Fear not if BTC casinos scare you though – BetChain has loads of fiat currency options for players all over the world too. And we mean loads, with literally 50+ different payment methods available for international players.
Play at Online Casino with Bitcoin
For some players, a casino Bitcoin deposit seems like an intimidating prospect. Luckily – the best crypto gambling sites in the modern era make it super easy for you to deposit and start playing.
1. Acquire your crypto
This is usually done through an exchange like Binance or Coinbase, although some banks and other financial institutions (like Revolut) also let you buy crypto too.
Some Bitcoin casino sites, read our top list above to find out which, even let you buy cryptos on-site. Platforms like MoonPay work with casinos, to offer you simple and convenient one-click crypto purchases without ever having to leave your Bitcoin live casino. Easy!
There may be some fees involved – but for that kind of convenience, you’ll probably find it worth it.
2. Send your crypto to the casino!
Simply visit the deposit page, find the casino’s wallet address and paste it into your third-party wallet along with the amount. That’s it.
From there, your transaction should be complete in just seconds – or maybe up to 5 minutes if you use Bitcoin. Alternative coins are often faster.
If you bought your crypto at your chosen BTC casino directly, you can skip this step.
3. Start playing bitcoin casino games!
Bitcoin Casino Games
The vast majority of popular online casino games from the past decade are also now available for players gambling with bitcoins and other cryptos.
However, depending on your country or casino of choice, some of the most well-known and popular choices might not be available. But if they are, you can deposit with cryptocurrency and play them for sure!
Bitcoin gambling games usually cover the following:
- Slots;
- Casino table Games;
- Live casino games;
- Lotteries;
- Other games.
In the other category, you’ll find blockchain casino games. These are exclusively for Bitcoin or crypto gamblers, and they use blockchain technology to ensure that all bets are “probably fair” and processed in real-time on the blockchain.
Live casino Bitcoin games are not usually exclusive for crypto players, although a couple of online crypto casinos have invested in blockchain-based live games from up-and-coming developers.
The top existing providers like Evolution, Ezugi and Pragmatic Play all let you play with Bitcoin and other cryptos, however.
Bitcoin Gambling Sites
The very best bitcoin gambling sites will no doubt also have sports betting options packed in. The very best, at least! Obviously, some sites choose to focus on casino gambling, and that’s fine. But the very top operators usually know they can do both to a high standard!
Gambling crypto online should be a full-service package, from exclusive crypto-only games to special sports lines only for crypto players. International crypto casino players obviously love sports betting just as much as the regular market, so you’ll find loads of options for that on our site too.
Want to use Ethereum to bet on basketball? Dogecoin to bet on tennis, or Tether to bet on golf? With the crypto betting sites on our top list, you most definitely can!
You can also use your crypto to bet on esports too, bringing the modern online gambling world full circle!
Bitcoin Gambling in Europe
If you want to play at BTC gambling sites in Europe, you’ll almost always be looking at a site with a Curaçao Gaming Licence.
That’s because the major regulators (Sweden, UK, Malta) don’t like seeing players gamble with Bitcoin.
Why? Because it’s anonymous and decentralized. Big government agencies, usually aligned in interest with big banks, don’t like cryptocurrency projects as it takes them out of the equation – bringing transactional power directly back to the consumer.
So, you’re unlikely to find a casino with bitcoin that is fully licensed in Europe. Of course, that doesn’t mean there aren’t loads of trusted and reputable operators offering you the chance to play casino games with Bitcoin and other cryptos.
For example, our top list includes no less than four casinos operated by Dama NV – an operator who also runs traditional online casinos licensed in the UK and Malta.
Other operators might not have the same pedigree, but you’ll find bitcoin casino sites that’ve been around for 10+ years on our list. This is usually a sign of a fully trusted and reputable operator, as they wouldn’t have been able to sustain themselves in the game for so long if they were treating customers badly.
Bitcoin Gambling in the USA
You won’t find online casinos that accept Bitcoin from any of the legal US states. Federal and State governments like cryptos even less than European governments do.
So, if you’re looking for the best bitcoin gambling you can get in the USA – Curaçao licensed sites are still your best bet.
However, online gambling has been a grey area for so long in the US that you will find so-called “offshore” operators that have been around for years. Many of these have now seen the light and allow players to gamble with Bitcoin, as well as traditional fiat currency methods.
Sites like Bovada and BetOnline have been around for years, serving US players. Of course, they want to get on with bitcoin casino gambling, as it simply makes sense. These sites have often seen trouble from payment and bank card providers like VISA or PayPal, so it’s only natural that they would want to bypass them entirely by becoming an online crypto casino instead!
Unlike in Europe, many of these casinos will also be based not too far away from the USA – literally “offshore”, with many based in Panama or Curaçao. That means fewer waiting times for international customers when talking to support, and you’re also less likely to find your favourite online crypto casinos are down for maintenance during your prime playing hours! Easy.
Conclusion: Be specific with your Bitcoins!
Although Bitcoins, cryptocurrencies and online crypto gaming are super-safe and anonymous – there’s never going to be absolutely zero risk.
Part of the appeal of online casino crypto deposits is that banks and other third parties don’t need to be involved. So, the whole process is freer and less restrictive. However, that also means there’s no one to fall back on if you make a mistake.
Send your Bitcoins to the wrong wallet address? Accidentally, send too much?
Well – with crypto, there’s no way of getting them back. Oops! So be careful. You only want to work with reputable operators, who make sure to set everything out for you. There also might be fees at various steps with crypto, such as cashing out or purchasing them in the first place, so you want to pick a bitcoin casino site with free crypto banking if possible!
Such as? Well, the ones on our top list of the best bitcoin casino sites to start with. How’s that for convenience?
* Responsible Gaming
As long-term players and enjoyers of gambling as a hobby, all of our team are committed to encouraging responsible gambling. Everybody has a budget, and you should stick to it! If gambling is no longer just fun for you or causing problems in your life – there are plenty of ways you can get help online. We suggest you do that!
* Disclaimer: Some of these casino reviews feature sponsored content. Anonymous crypto gambling may be illegal in your jurisdiction, and it is up to the customer to check they are allowed to participate before making an account. All views expressed here do not necessarily reflect the personal views of our team or site.
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Company News
theBlock Research Pins Stacks as a Key Player in the BTC Network
Published
20 hours agoon
July 12, 2022By
admin
Bitcoin is widely considered to be the world’s leading cryptocurrency. However, builders can use this technology to develop powerful applications, protocols, products, and services. Several ecosystems emerged on top of Bitcoin over the years, and Stacks continues to note tremendous growth.
The Ongoing Evolution of Stacks
Many people may recall Stacks under its former name of Blockstacks. It is a smart contract layer for Bitcoin tethered to the Bitcoin blockchain through a cross-chain consensus mechanism. The hash of the Stacks state is embedded into every Bitcoin network block. More importantly, Stacks is not limited to Bitcoin’s scaling – or lack thereof – as it relies on a different approach to process transactions.
Under the Stacks hood, the network relies on two types of blocks:
- Anchor blocks: used to tether Stacks to Bitcoin
- Microblocks: powering applications requiring high throughput and low latency.
One of the emerging partners through Stacks is Hiro, an organization focused on building Bitcoin applications. They, too, see merit in further scaling Stacks through Hyperchains and increasing the throughput even further. Hiro proposes using trusted federated hyperchains to evolve into a trustless hyperchain solution.
Stacks Adoption Increases Rapidly
The approach by Stacks immediately gained traction since launching its smart contracts in 2021. That resulted in a Total Value Locked increase following the introduction of native-BTC swaps and support for Non-Fungible Tokens. The current Total Value Locked in Stacks hovers near $100 million, most of which resides in the StackSwap DEX and token launchpad.
Another growth factor, as outlined in the recent TheBlock research, is the number of projects building Stacks to unlock more Bitcoin-oriented potential. The smart contract layer is leveraged by Alex, Gamma, Arkadiko, HeyLayer, Zest, Xverse, Planbetter, Block Survey, Provico, Byzantion, GoSats, and Moon. That confirms overall interest in this technology keeps rising, and more developers want to experiment with Bitcoin-capable smart contracts.
Moreover, the position of Stacks has been solidified by Trust Machines that recently a massed a warchest of $150M. The Trust Machines team wants to become the “ConsenSys of Bitcoin”, which may sound rather ambitious to onlookers. However, it aims to explore all opportunities brought to the Bitcoin ecosystem, and the initial focus will shift to the Stacks ecosystem.

Statistics-wise, the network notes a healthy uptake on smart contracts, NFTs, and other transactions. The coinciding growth of smart contract deployment and NFT events is to be expected, although there will be other use cases for these contracts in the future.
The Push Continues
Although Stacks has seen tremendous growth since its launch, there is more work to do. One focal point is introducing developer incentives. Development for and on Bitcoin will only advance when more people are interested in exploring the available opportunities. So together with GSR, OKCoin, and Digital Currency Group, the Stacks Foundation announced a $165 million incentive dubbed Bitcoin Odyssey. That fund is designed to provide financial support for applications and builders who drive Bitcoin adoption.
Another crucial catalyst to consider is how developers achieve peace of mind when building on Stacks. One of its core benefits is maintaining a design approach that doesn’t require changes to the Bitcoin protocol. That also extends to applications getting “stuck”, as they can resolve those issues quickly and seamlessly.
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The Critical Role Of Real-World Assets In The Future Of DeFi
Published
2 days agoon
July 11, 2022By
admin
Crypto was born from the desire to create a better, more equitable financial system built atop of an infrastructure that’s inclusive, and accessible to anyone, no matter who they are or where they live.
Since the introduction of Bitcoin in 2009, the cryptocurrency industry has matured far beyond its original concept as a medium of exchange, spawning countless new use cases. Decentralized finance, as these new use cases have collectively become known, refers to a range of financial services that can be accessed by anyone without the involvement of a centralized institution or intermediary, such as a bank, broker, or loan shark.
DeFi, as it’s known, provides banking for the unbanked, or banking without a bank. Its scope goes far beyond simply saving money and sending payments. These days, DeFi refers to a world of cryptocurrency exchanges, automated payments, capital transfers, spot and futures trading, lending, borrowing, high yield staking, liquidity provisioning and much more.
The truly remarkable feature of DeFi though is not the extent of its functionality, which these days has matched – and some say even surpassed – that of traditional finance. Its most important quality is that it can be accessed by anyone at all, without any need for a bank account or identification. Just as impressive, DeFi is designed in such a way that no single entity can have more power over the financial network than anyone else. DeFi is decentralized by design, with matters of governance dictated by the network’s users rather than just a few individuals.
DeFi’s Dilemma
For all of its achievements and promises, DeFi still has a long way to go. According to DeFi Pulse, at the time of writing the total value locked in all DeFi protocols, it tracks stood at just $41.56 billion. That’s far less than some companies even. Apple, the richest company in the world, has a market capitalization of $2.37 trillion in comparison.
DeFi has also been accused of being nothing more than a playground for so-called whales who make up the crypto rich, and the home of abundant scams that simply accept people’s funds then disappear into the sunset, taking their user’s tokens with them.
One of the problems with the DeFi industry is that it seems to have lost sight of its original vision of getting its services into the hands of the people that need them most. DeFi’s potential to bank the unbanked has been written about countless times. One of the biggest problems it can solve is that of access to capital. In the traditional financial system, only the biggest businesses are able to get direct access to liquid capital markets in a timely manner, while the vast majority of smaller and medium-sized businesses are left to fend for themselves.
Most DeFi users are far too focused on getting rich for themselves. It means they’re not concerned with building applications and platforms, and coming up with creative ways to increase liquidity in the space.
There was a time when the words “mass adoption” was on everybody’s lips, but today it seems like barely a whisper. While lots of cool things are undoubtedly happening in the DeFi, the space also needs more focus on how it can extend its benefits to everyone.
DeFi’s Destiny
It’s for this reason that the promise of bringing real-world assets (RWAs) into DeFi is such an exciting one. When we talk about RWAs, we’re referring to anything that exists in the real world that can be “tokenized”, or represented on the blockchain as an NFT or cryptocurrency, and used to provide liquidity to DeFi.
If we can bring RWAs into DeFi, it would result in a flood of new capital and liquidity in the space that many believe would be truly transformational. It’s an almost unlimited and virtually untapped market that’s a perfect fit for DeFi. The technology exists to tokenize assets such as real estate (both land and buildings) and non-physical things such as invoices and advance payments and bring them onto the blockchain as non-fungible tokens. If exploited, these assets could bring trillions of dollars’ worth of fresh liquidity into the space. It would finally solidify DeFi’s position as a viable alternative to traditional finance.
There would be big economic benefits too. The biggest beneficiaries of such a flood of capital into the DeFi sector would be small and large businesses that have previously always struggled to gain finance. One recent study by a U.S. bank found that 82% of small businesses that went bust did so because of a lack of cash flow. Yet the vast majority of those businesses likely have assets. The problem is that traditional banks don’t want to touch those assets. This is where DeFi could make a difference. Struggling firms would be able to use those assets as collateral, with ordinary users stepping in to provide the capital they need to stay in business.
RWAs will enable DeFi to step up to the plate as a viable alternative capital source for thousands of businesses that struggle with access to finance. At the same time, the introduction of tangible assets would also provide encouragement to investors with a more conservative appetite for risk to consider putting their money in DeFi. One of the advantages of RWAs is that they provide a stable return that’s uncorrelated to the wild ups and downs elsewhere in the crypto economy. RWAs will provide more accessibility, stability, and equality, paving the way for much broader adoption.
Making It A Reality
There’s a big role to be played by startups like Centrifuge that are creating the infrastructure required to bring RWAs into the DeFi space.
Through Centrifuge’s decentralized application Tinlake, businesses can transform assets with tangible value, such as car loans, trade invoices, music streaming royalties, or IOUs, into digital securities. Centrifuge will then issue an interest-bearing ERC20 token against those securities, which can be used across DeFi protocols to borrow crypto. At the same time, Centrifuge provides stable yield to investors who’re willing to lend their capital.
Up until recently, Centrifuge’s offering was fairly limited because it could only tap into liquidity held within its own ecosystem. That’s why the recent launch of a new solution called Centrifuge Connectors will be a game-changer, helping to bridge the gap between RWAs and the wider world of DeFi. Connectors was launched in collaboration with Ava Labs – the developer behind the Avalanche blockchain, optimistic interoperability protocol Nomad, and smart contract platform Moonbeam.
Centrifuge Connectors allow borrowers to access capital from multiple different DeFi protocols and blockchains, without the need for any third-party integration to bridge those assets. In this way, it becomes possible for investors to provide liquidity for borrowers without first bridging those assets to the Centrifuge blockchain.
Previously, users would be required to transfer their liquidity to Centrifuge, first of all, adding lots of hassle to the process. Centrifuge Connectors, therefore, eliminates one of the biggest obstacles for investors, making it much easier for anyone to participate while reducing the cost and difficulty of capital acquisition. In return, investors will finally be able to tap into a stable yield that’s free of the volatility that plagues traditional crypto assets.
Thanks to Centrifuge, countless businesses who were locked out of the world of traditional finance now have an accessible way to seek capital when it’s needed, using assets such as invoices, real estate, and payment advances. What’s more, those assets are collectively worth trillions of dollars. In other words, it represents an almost limitless untapped market that DeFi is only just beginning to explore.
If the effort to bridge RWAs into DeFi is successful, it will be the most important achievement so far in the ongoing effort to bring DeFi to the masses. The sheer value of RWAs provide will be more than enough to start unlocking DeFi’s potential, not only for those hoping to make it rich today, but also for future generations who will strive to achieve the same.
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