Sep 19, 2023
You may hold great power to generate exceptional wealth through crypto investments, but if you lose the private keys, you lose all your money.
We’re all familiar with the popular adage, Not Your Keys, Not Your Crypto. Having control of private keys serves as a safeguard against third parties & unauthorized users attempting to break into your wallet and access the funds.
In this guide, we will delve into the importance of having a self-custodial wallet and having sole control over your private keys.
Mnemonic/Private Keys: Why They Matter?
Mnemonics/Private Keys are the 12-24 word phrase that enables you to interact and transact on the Blockchain network. It acts like a password to your crypto wallet and grants access to your holding. The purpose of using Menmonics/Private keys is not just limited to crypto transactions, they prove that only you own the Blockchain addresses to which your crypto assets belong.
You need Mnemonics to authorize the transaction, restore access to your crypto wallet on any device, or use your funds.
Importance of Crypto Key Control
If any person/entity has access to your mnemonics, can use it to steal your funds. Controlling your private keys is crucial for so many reasons:
- Ownership
A private key serves as an exclusive and confidential piece of information that represents ownership of a cryptocurrency wallet. It serves as evidence that you possess control over the funds held within the wallet. In the absence of a private key, accessing or using crypto assets becomes impossible.
- Security
Private keys are created through intricate cryptographic algorithms, making it challenging (if not practically impossible) for anyone else to guess or attempt to brute-force. This robust encryption ensures that solely the legitimate owner of a wallet, and no one else, can gain access to and oversee its assets. This level of security is paramount.
- Transaction Authorization
In the process of transferring cryptocurrencies from one wallet to another, the private key plays an important role in signing the transaction. This cryptographic signature functions as a digital fingerprint, verifying that you have sanctioned the transaction. Additionally, it acts as a safeguard against any tampering with the transaction once it has been signed.
- Irrecoverability
The loss of a private key results in the permanent loss of the associated cryptocurrency. This emphasizes the importance of securely creating backups and storing private keys, as no centralized authority is capable of assisting in the recovery of lost keys or funds.
Do You Need To Memorize The Private Keys?
As we all know with keys anyone can access your funds. Even if you note down the details on paper, anyone can steal it or take a picture and you will not get to know until the funds are gone. Some investors or traders make this matter more complicated by memorizing the mnemonics and completely discarding the use of backups. Their idea is that if no backup exists, there will be no security threats.
While memorizing can be a powerful security tool, it is only applicable until to remember the seed phrase. But, as a human, the ability to consistently remember things becomes less reliable over time, which means, memorization is not a good idea. Also, it won’t protect you against wrench attacks, psychological tactics, and ransom schemes.
So what is an alternative?
The most effective method for safeguarding your private keys involves using a wallet that adheres to top-tier security protocols. It’s advisable to opt for a non-custodial wallet that includes a backup recovery feature. This way, should you ever misplace or forget your private keys, you’ll have the means to retrieve them through the wallet’s backup functionality.
Things You Can Do With Self Custodial Wallet
Apart from serving as a secure repository for your private keys, a non-custodial wallet (Web3 Wallet) opens up a world of possibilities. It empowers you to engage with DeFi protocols, and trade NFTs on authorized platforms, all without the need to expose your private key. Plus, it offers the convenience of managing a diverse portfolio of crypto assets all in one fortified location.
By retaining ownership of your mnemonic phrase, you eliminate the need to place your trust in intermediaries. You gain autonomy and security, ensuring that your crypto journey remains in your hands.
Protect Your Private Keys With AnCrypto- A Non-Custodial Chat & Pay Wallet
AnCrypto, the world’s pioneering Non-Custodial Chat and Pay wallet, not only brings you a secure solution for safeguarding your invaluable crypto keys but also emphasizes their minimal use.
Discard conventional reliance on public or private keys for verifying crypto payments. Instead, simply search for the corresponding username and initiate seamless transfers right within the chat window. Your private keys remain exclusively in your possession, eliminating the need to expose them on third-party platforms or wallets for transaction signing. AnCrypto goes the extra mile by offering a robust backup and recovery option, ensuring you can always regain access to your keys in the event of loss.
With an AnCrypto wallet at your disposal, you can actively participate in a range of popular DeFi activities, including:
- Crypto Staking:
Grow your crypto holdings by staking them and earning rewards.
- DApp Trading:
Seamlessly trades on decentralized applications (DApps) within the blockchain ecosystem.
- NFT Exchange:
Buy, sell, and trade Non-Fungible Tokens (NFTs), all while retaining control of your private keys.
- Crypto Buying and Selling:
Execute cryptocurrency transactions with ease, whether it’s buying, selling, or exchanging digital assets.
Go Non-Custodial With AnCrypto. Download Now!
Aug 10, 2023
In 2023, cryptocurrency witnessed multiple wallet hacks, leaving many users financially devastated. While some hackers may have hit the jackpot, many crypto investors worldwide are struggling to keep their digital funds secure.
Empower yourself with the knowledge to secure your crypto wallet and protect your crypto assets!
As most of us are transitioning to non-custodial wallets, we must familiarize ourselves with the best practices for securing crypto wallets for asset protection.
Keep Your Crypto Assets Secure: Make Crypto Wallet Your Strongest Link
When securing your crypto assets, the real danger is not the blockchain but the wallet/exchange.
While storing your sensitive information, private keys, or crypto assets on these platforms, it becomes easy for hackers to target them and loot your hard-earned savings.
Thus, it becomes more crucial to be cautious and implement strong security measures to protect your money.
Stick to non-custodial multi-chain crypto wallets, but that is just the start! To truly fortify your cryptocurrencies, you should adopt some expert-level security tips.
Protect Crypto Assets: Security Measures To Follow
- Diversify Crypto Earnings: Manage Them Using One Secure Solution
Breaking crypto earnings into multiple wallets is not just an investment strategy but crucial for crypto security.
To safeguard digital assets, create multiple wallets and spread your savings. That way, if one is compromised, it will not devastate your entire portfolio.
Many multi-chain wallets have Manage Wallet feature that enables the users to operate their wallets together using one app.
For added protection, consider using cold storage devices as well.
- Wallet Backup Is a Must-Have Practice
Non-custodial wallets give you complete control over your crypto assets and do not store or maintain private keys. Thus it is essential to keep your recovery phrase/mnemonics/private keys offline in a secure place like a locker or metal plates, as soon as you create the new wallet.
But it is not the end; you must create multiple backups for these keys. Store the backups in encrypted form and stay informed about the latest security updates.
Also, it is a bad idea to store private keys online on email, note apps, or password managers; they could potentially get hacked! You can back up private keys using a USB.
- Keep Your Private Keys/Mnemonics To Yourself
Keeping your private keys/mnemonics to yourself is essential to protect the wallet againts threats.
Private keys/mnemonics are the secret codes that allow you to access & control your digital assets and perform transactions.
They work similarly to your ATM password or a PIN , so only the person with access to private keys can completely control your cryptocurrency assets. Therefore, never share private keys/mnemonics with anyone.
- Protect Your Mobile Device
Most users prefer to access their crypto wallets using a smartphone, as devices have internet connection and are easy for intruders to exploit. To keep your mobile-based crypto wallet protected from hackers, take the following precautions:
- Use Two-Factor Authentication: It requires users to enter the code every time for login.
- Set Strong Password: For an extra layer of security, use facial recognition, biometrics, and PIN for a crypto wallet – it will help to avoid unwanted intrusion.
- For Added Security: Use Encrypted Password
If your wallet supports the encrypted password, it can help you to add an extra security layer to crypto assets. Thus, no unauthorized party can access the funds from your wallet.
However, just like mnemonics, encrypted passwords may not in your wallet. Thus, it is your responsibility to keep them protected.
- Be Aware Of Phishing Attempts & Scams
Although cryptocurrency hacks are common to happen, most of the hacks involve phishing scams where the innocent user inadvertently gives access to a dubious party.
For crypto protection, never sign into any crypto-related activity following untrusted sources or links. This may include Facebook, YouTube, or Google Ads, spam emails, airdrops, Reddit texts, or messages.
A legitimate crypto service provider will never ask for your private keys, password, or personal details. Stay vigilant and cautious in the face of potential phishing attacks, and take necessary steps to protect your digital assets.
Avoid Relying Upon Centralized Wallets, Exchanges & Custodial Services
Limit the use of centralized wallets, exchanges, and custodial services. Despite their well-established image for services and commitment to user security, one bad actor in the group can put all your earning at risk. Recent incidents like the South Korea Centralized Crypto Exchange GDAC Custodial Wallet hack and FTX illustrate the potential dangers of relying heavily on custodial services.
Instead, cryptocurrency users should consider adopting a strategy that involves using custodial services sparingly. Instead of using one centralized wallet, keep your funds in multiple decentralized wallets for day-to-day transactions.
Prefer using the centralized exchange or custodial services only in situations where it is extremely necessary. By keeping your assets in multiple wallets, you can minimize their risk. Do thorough research to know about the various types of cryptocurrency wallets available for storing and investing in cryptocurrencies.
Prefer Using Multi-Chain
Using a multi-chain approach for crypto asset security provides enhanced protection by eliminating using multiple wallets for different blockchains and accommodating all assets in one place. This decentralized validation significantly decreases the complexity. Additionally, the interoperability, fault tolerance, and regular security audits associated with multi-chain wallets further strengthen the overall security posture, making it a reliable solution for safeguarding valuable crypto assets.
Don’t Be Crypt-Swindled: Be Cautious Where and How You Buy Crypto
Be it investment, spending, or trading, buying crypto is essential for making transactions. But it’s crucial to be cautious while doing so and only rely upon trusted exchanges or partners. Be wary of overly complicated buying processes, suspiciously high exchange rates, and pushy offers. To ensure safe transactions, wallets like AnCrypto offer multiple options for buying crypto from trusted partners.
Purchase cryptocurrency at competitive rates and get it delivered to your wallet in just minutes.
So be smart and stay secure when buying crypto or making any investment—always choose a trusted partner to get the best of peace & security.
May 16, 2023
In recent years, cryptocurrencies have been gradually taking over the world. The major causes for the increased use of cryptocurrencies are growing money laundering scams, distrust in centralized financial systems, and enhanced competition in the banking sector. Besides, this DeFi wave received a boost during the covid outbreak. More usage of technology and digitization led to rising awareness of cryptocurrencies and utilization of related infrastructure, such as crypto wallets.
Yet some questions still loom over the minds of the general public and prospective crypto investors. In the near future, will the value of cryptocurrency bitcoin soar or fall? Will crypto wallets be regulated? Will more people invest in cryptocurrency? And many more..
Here, we review the main predictions and trends that are expected to follow in the next five years and so.
Top Projections for Cryptocurrency Sector
If we look at the near past, the year 2021 proved favorable for cryptocurrency, and since then, its appeal remains strong. Since the beginning of 2021, the value of digital currency increased by almost 70%, propelling the total market value of cryptocurrencies above $2 trillion.
(Source: CNBC)
However, cryptocurrency traders had a difficult time by the end of the year 2022. This was largely due to worldwide scams and legal uncertainty.
Yet, despite these gloomy events, financial analysts strongly believe that cryptocurrency will usher in the next phase of industry expansion. Despite the significant trade volatility, experts believe that cryptocurrencies will rebound with greater force in 2023 and prosper in the upcoming years.
Here are the key crypto trends to look out for
1. Mass Adoption of Crypto wallets
To begin with, the only purpose of wallets was to serve as a vault to hold cryptocurrency. Yet today, some of the wallets have their native tokens, which are also given as rewards in giveaways and similar other contests. Online crypto wallets can act as potent contributors to the decentralized web (Web3) once they advance beyond being a storage safe to hold financial assets. Some of the latest digital crypto wallets have opened secure and common portals into the fascinating world of DApps and other Web3 apps.
On one hand, the worldwide popularity of cryptocurrencies is driven by increased internet usage, while on the other, more and more users are turning to crypto wallet apps with enhanced smartphone usage. Users are increasingly using these wallets, because of their convenience and easy accessibility for storing, receiving, and sending crypto assets.
The strong security offered by cryptocurrency wallets is anticipated to spur demand, furthering the market expansion. The number of people using crypto wallets increased to 84.02 million in August 2022, from 76.32 million in August 2021. The rising acceptance of cryptocurrencies can be ascribed to the growth of crypto wallets’ usage. By 2030, the market for crypto wallets is expected to reach USD 48.27 billion.
(Source: Grand View Research)
2. Worldwide Regulation and Legislation
Before 2022, the blockchain and cryptocurrency industries continued to face a huge challenge regarding a lack of regulatory guidelines. The development of legislation and rules around cryptocurrency got its kickstart in 2022. Giant economies like the US, EU, Canada, the UK, Australia, and Japan are spearheading defined crypto regulations and related laws.
Besides, some of these nations also allow merchant commerce using cryptocurrencies. Meanwhile, countries like India are in the process to set similar legislation.
3. Increased Investments in Crypto Assets
With the creation of user-friendly wallets to secure and transact crypto assets, there is going to be a definite rise in the number of crypto users worldwide. Moreover, the regulations and related clarity predicted in the next few years will encourage people to invest in cryptocurrencies and NFTs.
About 500 million people will hold Bitcoin as a key cryptocurrency by the end of 2023, according to Ric Edelman, the founder of the Digital Assets Council. (Source: The News & Observer)
Even if the crypto sector expands at the slowest possible rate, it might reach as many as 1.2 billion people by 2025.
(Source: CryptoSlate)
4. DAO and DeFi emerging as the biggest growth areas
Decentralized autonomous organizations (DAOs) and Decentralized finance (DeFi) are two fastest-growing areas of cryptocurrency, that are likely to take a huge leap in the next few years. With DAOs as a new internet community and DeFi as the middlemen-free financial landscape, the use of cryptocurrency is expected to be propelled to greater heights.
It is worth noting that in 2021, deposits into DeFi services crossed $200 billion.
(Source: CNBC)
5. Others Coins can outdo Bitcoin
Today, most of the tokens are based on Ethereum, which implies there is a likelihood of Ether outdoing Bitcoin in the near future. This is clearly because the former offers a much wider range of utilities and has already witnessed popularity, pushed by the rise in NFT sales. In spite of being the first and oldest cryptocurrency, BTC can be overtaken by new ones in the upcoming years. Yet, Bitcoin can come up with advancements, stirring a strongly competitive environment with newer blockchains.
According to a market estimate, the NFT market can grow up to $231 billion in value by 2030.
(Source: Forbes)
6. Likely Disappearance of Meme Coins
Meme coins are known to be quite erratic and are mostly fueled by community hype and social media. No doubt, some investors have profited significantly from meme coins, and many others have lost money as a result of their extreme volatility. Besides, as NFTs become assets of real-world value with market development, meme coins can completely vanish.
7. Stronger hold of Stablecoins
Stablecoins are the third generation of cryptocurrencies. These include USD and CBDCs (Central bank digital currency) like E-yuan. Currently, there are hundreds of stablecoins in use. Being tethered to fiat currencies, stablecoins represent a good alternative for people who wish to tread a cautious path toward the DeFi sector. In other words, they represent a balance between conventional cryptocurrencies and typical fiat currencies.
8. Emergence of New Use Cases
With greater demand of cryptocurrencies and regulations in place, DeFi can change the face of several industries and lead to new blockchain use cases. For instance, data related to healthcare, real estate, credit rating, etc, can be tokenized as data on blockchains, and the related apps be converted into DApps!
Presently, utility NFTs are venturing into virtual properties, in-game items, identities and credentials, insurance, event ticketing, cause marketing, and reward programs, which are set to take a larger scale in the next five years.
Summing Up
In a nutshell, we can say that the upcoming decade will be an era of cryptocurrency trading, NFT infrastructure, Web3 commerce, and more. While the first half of 2023 did present a dismal outlook for stocks, assets, etc., the second half would see a turnaround. The next generation is set to embrace a decentralized economy to its full potential and thus, boost its value across the globe.
So, there will be no centralized monopolies but greater power and self-sovereignty in the hands of the general public. When you move through the internet, you will own whatever you possess and manage it solely.
Apr 26, 2023
The last few years have witnessed an increase in the number of crypto wallet users and their belief in the future of decentralized finance. Recent statistics reveal that there are more than 20,000 cryptocurrencies in usage and over 80 million crypto wallet users worldwide. This ratifies the fact that crypto wallets are more than a storage of public and private keys. Today, there are several ways to utilize a crypto wallet and if you still haven’t tapped into the vast potential and power of crypto wallets, go ahead and read about their top uses here:
1. Secure Access to Cryptocurrencies
Modern crypto wallets support several types of cryptocurrencies and also let you track your balance anytime. These wallets serve as a secure pathway for cryptocurrency storage. You can manage and access your balance and related information using your private key, which is stored in the wallet. While your assets actually exist on the blockchain, crypto wallets let you keep a check on your crypto holdings and monitor their equivalent value in different national currencies. Web3 wallets provide real-time information regarding conversion rates and the associated fluctuations in their values in fiat currencies. Depending upon the value of your crypto tokens, you can further make decisions to trade, swap, and make more investments.
Besides, crypto wallets have additional security features like two-factor authentication, backup and recovery options, etc.
2. Safe Storage of NFTs
NFT (Non-fungible token) is another booming area in the world of DeFi. Most of the Crypto wallets today support NFT storage and investment. These tokens are becoming a key component of the blockchain ecosystem. Blockchain technology enables the creation and validation of digital art and ownership for artists without the need for any third-party intermediary. You can buy, sell, and store NFTs while retaining a part of their ownership. To prevent theft of this digital asset, it is crucial to keep it safe and secure in crypto wallets, so it is accessible only by the private key.
NFTs are swiftly expanding to sectors like sports, games, fashion, and music.
3. Platform for Staking
Some of the crypto wallets let the cryptocurrency holders option stake a certain amount of their assets, in return for more tokens or similar rewards. It basically entails locking cryptocurrency holdings for a fixed time period just like you would keep your savings in a fixed bank account. This works through a proof-of-stake consensus mechanism, that facilitates new transactions and the addition of blocks in a blockchain.
Stakers generally provide large amounts of cryptocurrency as an insurance in return for validating fresh transactions. Crypto investors view this practice as a source of passive income and often support blockchain projects for enhanced efficiency and security of their operations. Popular crypto wallets generally extend a section of coins that are eligible for staking purposes.
4. Platform for Trading
Cryptocurrency trading is one of the main reasons behind the increased usage of crypto wallets. Trading implies operations like purchasing and selling cryptocurrencies, that are usually executed from crypto wallets. In order to be good at trading cryptocurrencies, you need to have a good understanding of the market, just like trading stocks. However, unlike the wide-ranging fluctuations and volatility in stock and share markets, the value of cryptocurrencies escalates over the long term, albeit with short-term bearish trends. The first cryptocurrency, Bitcoin continues to be the most preferred and valuable one, even after over a decade of its introduction. So, trading is another way to earn through crypto investments.
5. Platform for Crypto Lending
One of the commonly used DeFi services is crypto lending, which is available on crypto exchanges and similar platforms. In this, the investors deposit their crypto assets on a DeFi platform and these are lent to borrowers in return for interest payments. DeFi lending primarily involves loan and borrowing services that are supported by smart contracts. Such loans are immediately granted and enabled by Web3 wallets. With DeFi lending, you can begin earning interest right away, and this interest generally compounds every minute. As opposed to centralized platforms, the deposit of collateral in DeFi earns interest even when tied to a loan.
Moreover, with the latest decentralized wallets like AnCrypto, you can lend and request tokens conveniently through the ‘chat-and-pay’ option, which lets you utilize usernames in place of long wallet addresses.
6. Gateway to DApps
The latest crypto wallets provide a gateway to a range of DApps. These decentralized applications extend art, entertainment, gaming, social media, blockchain-based voting, and financial services in the Web3 space. DApps can also be added as plugins to deliver adverts, monitor user behavior, and ask for crypto donations. These are likely to demonstrate enormous potential in healthcare, education, real estate, and predictive markets. Crypto wallets are typically connected to DApps using a feature called ‘Wallet Connect’. Once you have connected your wallet to a particular DApp, it can send transaction requests directly to your wallet. Nevertheless, note that the wallet itself isn’t associated with any DApp, which is why the latter cannot access your private key.
Among the modern multi-chain crypto wallets, AnCrypto is one such wallet that offers a secure browser gateway to a host of DApps and lets you operate without switching out of the wallet.
Conclusion
Crypto wallet serves as a useful tool for both novice users as well as seasoned DeFi experts. As explained above, it is a secure place to store as well as trade crypto assets. Being a key contributor to a decentralized economy, this sort of wallet is an excellent way to safeguard access to digital money, which is present on blockchains instead of vulnerable centralized servers, computers, laptops, or smartphones. Non-custodial crypto wallets can be thought of as bank accounts, that are managed, operated, and authorized by users individually. So, whether you experience a loss or gain in your crypto assets, is solely determined by your actions. Yet, the growth and popularity of Web3 wallets are proof of the rising trust and credibility of crypto enthusiasts.
Apr 17, 2023
Cryptocurrencies have been here for a while now. And decentralized wallets are hailed as the driving force behind fast and easy crypto transactions. However, despite their growing popularity, DeFi wallets are terribly misunderstood in some aspects.
While, on one hand, the decentralized financial systems are favoured because of their non-intermediated and low-cost transactions, on the other hand, the people are skeptical of its high energy requirements and price fluctuations. As more and more people consider DeFi trading, it’s important to examine the common misbeliefs surrounding it and uncover the truth about cryptocurrency.
Myth 1: Crypto trading is unlawful
The very first question that comes to a novice’s mind is: “Is crypto trading illegal?” This is neither completely false nor entirely true, yet among the most prevalent cryptocurrency myths and realities. The fact is that crypto trading and related transfers are banned in certain countries like China and Turkey, the big wigs like UK, US, and the EU have given it legal status. Besides, several countries like India are anticipated to devise a whole framework for cryptocurrency transactions. Experts speculate that the developing nations are set to benefit from and embrace crypto trade the most, because of its inherent decentralized and inflation-resistant nature.
Myth 2: Cryptocurrencies have no real-world value
The value of any asset is determined by its supply and demand. Yet, sometimes people base it on the lack of its tangible or physical equivalent. Cryptocurrencies will retain value until people continue buying, selling, and exchanging them. And as the remaining countries assign a legal status to these digital currencies, the stage is set for its widespread e-commerce acceptance.
Myth 3: Decentralized wallets are not secure
The newbie crypto investors often wonder whether DeFi wallets are vulnerable to hacks and how safe is cryptocurrency? In fact, crypto transactions are more secure than conventional financial ones, especially when done on exchanges or platforms that adhere to best practices for security and privacy. Though no ecosystem is fully immune to security breaches, most of the major cryptocurrency platforms and DeFi wallets utilize robust security controls, that go beyond the encryption of digital wallet key encryption and multi-factor authentication. It is worth noting that the Bitcoin network hasn’t been attacked since its inception in 2009. Another aspect that prevents vulnerabilities in crypto networks is the involvement of smart contracts, which makes it very difficult to steal tokens and other assets.
Myth 4: DeFi wallets are only used for illegal transactions
Although the idea of anonymity and lack of regulation in cryptocurrencies is supposed to entice criminals, these have caused no such spike in criminal activities or financial crime. Things like money laundering, bribery, underground markets, and corruption have been happening with fiat currencies for ages. So, similar to fiat money, cryptocurrencies can be used for both legal and illegal transactions via DeFi wallets and other such means.
Myth 5: DeFi transactions are not traceable or recoverable
Despite the anonymity of cryptocurrency and associated transactions, these can be traced by digital forensic experts. Certain sophisticated software tools and protocols are used to review, identify, and analyze the originator and recipient of transaction activity. In part, this is made possible by blockchain technology that holds the records of such transactions. So, while the DeFi system offers privacy, it can be tracked down in case of high-profile urgencies.
Myth 6: Crypto Trading is a sort of gambling
One major reason behind this assumption is the price volatility of cryptocurrencies. Yet, people tend to overlook the fact that over time, the national currencies have shown a declining graph in terms of value and purchasing power, whereas the value of cryptocurrencies tends to rise over a long period of time. For instance, bitcoin has more or less consistently shown an increasing trend since 2010.
Myth 7: Cryptocurrencies, Digital assets, and Blockchain are interchangeable terms
Many people perceive cryptocurrencies, digital assets, and blockchain as the same thing. While all of these are co-related and interdependent, yet are completely different concepts and things. Blockchain is basically the technology that facilitates crypto transactions. It is visualised as a distributed ledger, made up of blocks linked by cryptographic functions. Cryptocurrency is a sort of electronic money that can be exchanged, transmitted, and received through a blockchain and secured by encryption. Finally, ‘digital asset’ is a broader term that includes all types of valuables and entities that exist in electronic forms, such as cryptocurrencies, NFTs, DAOs, etc.
Myth 8: DeFi cannot compete with traditional financial systems
The rising popularity and espousal of DeFi are proof that it poses a challenge to existing conventional financial systems. To bring transparency, efficiency, and cost savings in transactions, several organizations have adapted to the crypto space. No doubt, it is a task for the governments to let go of the fiat currency system, DeFi can emerge as a worthy ally to complement traditional finance.
Myth 9: DeFi is a hoax
Unlike traditional web browsers, DApps are on decentralized peer-to-peer networks and require no central point of authority or control. The purpose here is to enable users to interact with all blockchains instead of using a third-party processor between them. As the DApp browser functions and hosting are decentralized, they cannot be regulated or censored, so DApps have been touted as an escape from government censorship or central authority.
Myth 10: Crypto Transactions are harmful to the environment
It is true that cryptocurrency mining requires energy, yet its environmental impact depends upon the type of energy source. A recent study in New York reveals that “Bitcoin is far more energy-efficient than traditional banking and gold mining”. In fact, renewable energy sources (solar, wind, hydro) take up a good part of the crypto-mining process. Currently, the environmental footprint of crypto transactions is nearly negligible.
Conclusion
The potential of decentralized finance is yet to be fully explored, yet the last few years have witnessed a great hike in the number of crypto investors. Besides, the prospects of blockchain technologies are proved by the fact that the investment in blockchain-related businesses increased from $3.1 billion to $25.2 billion between 2020 and 2021 only. So, the misconceptions about cryptocurrency market are already fading as blockchain is gaining a foothold across various industries. With more financial innovations like stablecoins, DeFi is already transforming the global economy and is geared to benefit underserved populations.
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