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What is an ICO?
In the blockchain world, we use a host of terminologies that can be really confusing to outsiders. It’s like a random person watching Bloomberg or trying to follow the happenings in Wall Street. That would probably not understand half the things being said because it’s usually full of economic jargon.
One of such “jargon” in the blockchain industry is ICO. ICO is short for Initial Coin Offering. It is what most cryptocurrency exchanges do when starting out. Let’s take Ethereum as an example: When Ethereum started, they sold a total of 3700 BTC within 12 hours as ICO. This happened in 2014. As at that time, this figure summed up to about $2 million.
Let’s break it down
To make this clearer, you can think of ICO as equity crowdfunding most startups resort to in their initial foray into the market. Equity crowdfunding is the practice of getting people to give capital to kickstart or support a venture, with the expectation of returns if the company or venture yields profit.
Now using the above example, we can say Initial Coin Offering is the process of selling tokens to people with the expectation of returns if the cryptocurrency exchange system yields profit. In essence, rather than give money or capital as is the case in crowdsourcing, you get the coin equivalent of your financial contribution, in the hope that the coin increases tremendously in value.
What are the odds?
To be honest, there is about a little less than 50% chance that the next ICO funded project will succeed. However, if we’re still being honest, the same statistic goes for other forms of startups. A business that started today is more likely to fail than succeed. Therefore, we would not be fair if we pin the likelihood of failure solely on startups funded by ICOs.
Ethereum, by the way, started as an ICO (they raised $18 million in 2014 by selling 50 million Ether tokens), as did Ripple, Stellar, and some other now-prominent cryptocurrency tokens.
What do you stand to gain?
If all goes well, an ICO investment is a win-win situation; both for the entrepreneur and the investor. The startup owner can retain full ownership of the business regardless of how much money is paid in exchange for the coins. Likewise, the investor will benefit immensely as the coin’s value increases.
Are there any risks?
Of course; same as any other investment opportunity, there are risks associated with ICOs. They greatest among the risks involved is the possibility that the coin could decrease in value. Another popular issue is that of credibility of the sellers or startup owners. Not to worry, governments are creating guidelines and regulations to solve the problem of credibility.
In conclusion, you should know that the risks involved in investing in an ICO are the same as investing in other forms of startup. However, the benefits are quite different. If you invest in a non-blockchain startup, whatever returns you will et is tied to how much profit the business owners declare. On the other hand, investing in an ICO holds possibilities of massive returns that are not limited by the startups profit margin. They are only determined by the coin’s value.
Interested in launching your own ICO? Read “Should You Launch An ICO?” to learn what’s involved.
Decentralized Applications (DApps): Chartering new Avenues
It is evident how much the internet impacts our daily life today. It allows us to buy, sell, send, receive and communicate in milliseconds. Apps like WhatsApp, Facebook, Twitter, and Instagram etc. are all centralized apps with a single entity on the back-end server. But, centralized applications do have a few drawbacks and limitations. They are hack-able, less transparent, limited scalability, single point failure, and lack of bandwidth etc.
These are some reasons why companies are opting for decentralized applications. But what are DApps?
Decentralized Applications (DApps)
DApps are contemporary applications whose evolution is attributed to blockchain technology. Decentralized applications work on P2P networks rather than a single computer. These applications can’t be authorized or controlled by a single user or computer.
But what is their use specifically? Well, to fully understand their role and advantages over centralized software applications, we need to identify the differences between these two.
DApp Criteria
For any application to be labeled ‘decentralized’, it has to meet a set of conditions. For starters, any application will only certify a DApp, if it owns an open source. This means that the application’s source code must be publicly accessible to all. It must use blockchain-like cryptographic solutions. It should also have crypto tokens for sustainability. It must produce tokens along with a unified consensus working mechanism.
However, all DApps, don’t need to necessarily operate on blockchain networks. There are many blockchain apps such as Popcorn Time, Bit Torrent and BitMessage etc. that don’t operate on blockchains but rather, on a P2P network. The key thing to understand here is that blockchain is an unambiguous type of P2P network. We previously established that all decentralized applications must have an open source and be available, they also have an unlimited amount of individuals on both sides of the marketplace.
Decentralized Applications Categories
Whenever people talk about cryptocurrencies, they always inquire what a decentralized application exactly is. DApps are classified into three main categories:
- Type I DApps: Type I DApps have a blockchain their own. Bitcoin is a prime Example of that.
- Type II DApps: These are protocols which need tokens to function. Omni Protocol is one of the most renowned Type II DApp.
- Type III DApps: Type III DApps use protocols of the Type II DApps. SafeCoin uses Type II protocols to issue SafeCoins.
Working Mechanism of Decentralized Applications
The working of decentralized applications relies on the execution of all the requirements that differentiate them from other apps. These are platforms with an open-source software application implemented on decentralized blockchains. For a detailed overview, do give this article about DApps a thorough read.
Final Words
Decentralization has seen a boom in the last few decades. Credited to this flourishing milieu, DApps are a promising technology, one that will surpass many of the world’s most crucial centralized apps. Their network assessment, user base, and potential energy will answer the question of what exactly is a decentralized application.
Amon Bitcoin Debit Card Review
The main problem that cryptocurrencies are facing in the path to be used by the majority as day to day currency is conversion in real time of tokens to normal money. It is a real dream for users to be able to pay with their tokens in daily transactions since it will liquify their token funds and make them more practically usable. Presenting Amon – an AI protocol powered crypto debit card exchange platform that makes all the mentioned before possible.
What tokens does Amon support?
Bitcoin, Ethereum, Litecoin, Bitcoin Cash, EOS, and Lumens are a few of the tokens that the app presents to cardholders. Nevertheless, in the preliminary beta variation that is being tested, users will have the ability to use it for Bitcoin, Litecoin, and Ethereum purchases. It’s essential to keep in mind that Amon’s own coin is called AMN.
AI-powered crypto card
Cardholders will be able to use and instantly transfer their funds in almost all of popular tokens like: BTC, ETH, LTC, BCH, EOS, AMN, and XLM. At the time technology is very new and it is being tested on major tokens like Bitcoin, Litecoin and Ethereum so for test period payment can be made only by those coins. Also it is important to mention that AMN is token created by same company managing Amon Card and industry is waiting to see much more featured coin.
Payments in real time
Real time payment feature makes possible to exchange users coins on best rate since it will instantly update information on coin value and will provide value calculation in real time. So the user who is paying on market with their crypto card may be sure that their exchange rates are converted in their best interest.
The Amon wallet
Amon has it is own crypto wallet, where users can make transactions using Visa or Mastercard since all transactions are secured and hack-proof. Also Amons payments are supported by the cyber security architecture of the SABSA.
What are the fees with Amon?
Amon earns similarly to other platforms and generates profit from commission fees, so their card and delivery is absolutely free for users. And if users will prefer to use AMN coins there are even more bonuses like decreased commission rate also a 0.5% cashback in AMN if monthly spending exceeds 100 coins.
What is Bittrex?
Bittrex is one of the leading cryptocurrency exchanges in the world, and it has a tremendous trading volume.
As of now, Bittrex has the largest 24-hour trading volume right after Bitfinex and Bithumb.
Bittrex is well known for its high level of security. There are several cases where many popular cryptocurrency exchanges were hacked, but the Almighty Bittrex has never suffered such.
That is never a coincidence because ever since Bittrex was launched in 2014, the CEO Bill Shihara has always been keen on creating one of the most secure trading platforms in the world, and that is the main key to the high level of security you find in Bittrex today.
It would interest you to know that Shihara has spent several years in building security for the Blackberry operating system and the Amazon platform, and it would be an understatement to say the CEO himself is well versed in security.
Another thing that distinguishes Bittrex from others is the speed at which verifications and withdrawals can be made. Trade fees are furthermore capped at 0.25%, making it a very affordable option for traders.
Finally, Bittrex also has a huge variety of altcoins and tokens listed on its platform.
How to start trading on Bittrex
Bittrex only accepts Bitcoin or Ether tokens, it doesn’t accept deposits made with fiat money, meaning that you must have some Bitcoin or Ether tokens to get started.
There are some other exchanges that allow for money deposits, so contact them, or better still purchase some BTC tokens using the Local Bitcoin.
Sign up for Bittrex
Upon doing that, you can proceed to the official Bittrex website and create an account with them. The registration process will require your name, email, and enable two-factor authentication. So get prepared.
Verify your identity
The next step after signing up is to verify your identity. You can do this by providing Bittrex with some of your personal details and a copy of your ID.
Why should you verify your account? This is an extra security measure by Bittrex to prevent your account from abuse. Unverified accounts are limited, as they can only withdraw 3 BTC/day, unlike verified accounts that can withdraw 100 BTC/day.
How to deposit money on Bittrex
Making a deposit on Bittrex is quite easy. Just log in to your account click on ‘Wallets’ in the upper right-hand corner, and find the appropriate wallet (ie. BTC or ETH).
Click on the green arrow next to the wallet and generate a new address. Send the coins to the address, and they’ll be credited in a jiffy.
Choosing a market on Bittrex
Since you now have an account and tokens to trade with, choosing a market is the next thing.
You have three markets to choose from, and they include Bitcoin, Ethereum, and USDT. Go to the Bitcoin market if you deposited Bitcoin.
Creating orders on Bittrex
Finished choosing a market? It’s time to place an order! You have a variety of options to make, such as the number of units (tokens) you want to buy, the price you intend paying per unit, and whether or not you want to create a Limit or Conditional order.
With limited orders, you will only buy the selected token if it’s equal to or lower than the price you intended paying for it.
Conditional orders are specifically designed for more advanced users and are only integrated into the order book once certain conditions are met.
Happy trading!
