Without getting twisted, Liquidity providers and market makers serve the same purpose but with some subtle differences. They both provide liquidity which in turn determines the volumes of an exchange. Their roles are to ensure the pair has enough liquidity at any point in time, enabling seamless trading. Given their near overlapping roles, a market maker is easily identifiable because they are common in traditional cryptocurrency exchanges.
Without centralized exchanges, DeFi wouldn't have been this successful. Problems faced by traders in CEXes fast-tracked the shift to DeFi and other non-custodial options. Still, they complement each other. DeFi and CEXes work towards the same goal—of promoting crypto adoption—with both options available to the undiscerning trader.
The beauty of blockchain lies in transparency and, paradoxically, privacy. Right off the bat, a user wouldn't know the source of transactions or identities of transactors without using special tools. Making this possible is a public ledger's integration of cryptography and a 'hashing' algorithm. To 'hash' a transaction in crypto circles is to take the input string of any length and turn it into a cryptographic fixed output.
Before diving in, it is good to appreciate that every tool currently in existence within the crypto and blockchain space was innovated from scratch. In the early days of Bitcoin and crypto, it was virtually impossible to track or monitor transactions. The need to monitor or map out transactions rose as crypto began gaining traction as a means of settlement.
A soft or a hard fork only happens when the conditions necessary to activate a forking event matures. As long as public ledgers remain as they are, forking won't end, helping in one way or another in mass adoption. Forks can either be because of a needed improvement or a contestation where most users (nodes or validators) are not in agreement.
Crypto development is fast-paced, Satoshi—at one point in time, didn't have the time to convince a critic, dismissive of his vision. It was hard. He was acting solo, spearheading a revolution before melting into the interwebs. Bitcoin and Ethereum are leaders in their respective categories because of the efforts from the wider community.
Blockchain is a public ledger, a database for storing transactions. Full nodes keep a copy of all transactions. They must sync correctly with the majority of nodes for validity. These nodes allow networks to be decentralized and completely peer-to-peer, without a central authority. Novel as blockchain technology is, the size of the network will keep growing forever.
Perhaps you have heard about 'decentralized' a couple of times being thrown about by maxis. Bitcoin this, Ethereum that, well, this will go on as long as these two projects exist. The question is: You are a newbie and wondering what truly makes a blockchain project decentralized? Decentralization makes cryptocurrencies unique. Without this property, the network becomes vulnerable to attacks.
Competition is good for end-users. Ethereum is the king because it enjoys the first-mover advantage. Since its launch, Ethereum has been refining its system and is undoubtedly the leader of smart contracting. Then the Binance Smart Chain (BSC) happened. As the name suggests, the BSC is a product of Binance—a centralized exchange.
First, XRPL is short for the XRP Ledger. Also, we won't go into details about what XRP is for now. Thus far, the SEC thinks XRP is a security under the U.S. Federal Laws. But since its lawyers appear to be losing, we shall consider XRP a utility in this explainer. So, the XRPL—what the heck is it? We know Ripple Labs, the creators, built a differentiated solution that adopts a unique, energy-efficient blockchain network.
Public ledgers are valuable because they are self-auditing. However, doing so means sacrificing speed for decentralization and security. The more decentralized a network is, the more robust it is. As such, decentralization tags scalability troubles. This explains why Bitcoin can only process 7 TPS while Visa does over 2k TPS.
To better understand how a Mempool works, we'll assume you are a Bitcoin or a Litecoin holder. Let's go back to the first day you received your coin—and I'll assume you bought it somewhere. If you remember well, your coins arrived after some few minutes. Others had to wait for a few hours--depending on the state of the network.
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