Cloud Hosting

DUBAI, United Arab Emirates - (NewMediaWire) - June 12, 2023 - (King NewsWire) - Today, API3 is thrilled to announce the launch of Managed dAPIs, a groundbreaking solution that revolutionises the way decentralised applications (dApps) interact with off-chain data. Managed dAPIs offer developers a secure, reliable, and scalable approach to accessing real-world data on-chain, while prioritising source transparency and trust.

In the rapidly evolving landscape of the Web3 data economy, the need for reliable and transparent connections between real-time market data and smart contracts has become paramount. Managed dAPIs, powered by API3, address these challenges by providing high-quality reference data served on-chain by first-party oracles. By eliminating third-party intermediaries and enhancing data integrity, Managed dAPIs establish a new standard for fostering trust through data source transparency andembody the core values of blockchain technology.

Key features of the Managed dAPIs

Managed dAPIs offer a wide range of features that not only ensure reliability and efficiency but also significantly improve security. These attributes make Managed dAPIs the ideal choice for dApps seeking accurate, reliable, and secure data in the rapidly changing oracle space.

1. First-Party OraclesManaged dAPIs utilise first-party oracles, enabling data to be served directly from reputable API providers via the API3 Airnode. This direct connection eliminates the need for third-party intermediaries, reducing the possibility of data manipulation or bias. The first-party oracle architecture fosters trust through source reputation and end-to-end transparency. Developers can verify the data source on-chain, providing confidence in the integrity and accuracy of the accessed data.

2. Multi-Source Data FeedsManaged dAPIs aggregate data from numerous first-party oracles, creating multi-source data feeds. This approach ensures a broad and diverse range of data points, contributing to the overall accuracy and reliability of the data. Each beacon or data point in a Managed dAPI represents a unique provider that is verifiable, ensuring data integrity and reducing potential bias.

Story continues

3. Push Oracle ArchitectureManaged dAPIs utilise a push oracle architecture, actively pushing data to the blockchain and making it readily available for dApps. This push architecture enhances efficiency and ensures timely data feed updates, benefiting both developers and end-users. Furthermore, this design makes it easy for dApps to migrate from existing oracle services.

4. Improved Security With Native-Chain AggregationTo provide maximum security, Managed dAPIs use native-chain aggregation, combining data on the same chain that the oracle is being used on. Native-chain aggregation maximises security by eliminating the need for bridges, which come with their own risks and vulnerabilities. With native-chain aggregation, developers can rely on a secure and reliable data feed. These features make Managed dAPIs a powerful solution for building better oracles in the DeFi ecosystem. By focusing on end-to-end transparency, high-quality data sources, efficient data delivery, and robust security, Managed dAPIs set a new standard for how dApps access real-world data on the blockchain.

Accessing Managed dAPIs

Managed dAPIs have been designed to be developer-friendly and easy to implement. They can be accessed via the API3 Market, providing developers with seamless access to aggregated data feeds. The market offers a range of multi-source dAPIs with various deviation thresholds and heartbeat specifications, allowing developers to choose a service that aligns with their unique requirements. While existing dAPIs are always free to read, the creation of a new multi-source feed requires the user or 'sponsor' to pay for the upgrade to create the data feed. Users are required to pay for the upgrade to a Managed dAPI in native chain currency, covering the operational expenses associated with gas costs. The sponsoring dApp essentially upgrades the service to a multi-source data feed, which API3 creates and maintains. Once established, the feed becomes accessible to all users, as long as the sponsoring dApp continues to fund the Managed dAPI. This flexible and scalable nature of the service accommodates changes to contracts during their term, providing additional scalability to developers.

Operational OversightThe API3 DAO dAPI team provides 24/7 monitoring of Managed dAPIs, ensuring continuous checks on wallets and API responses for reliability and security. The team can also update or "re-map" dAPIs to meet evolving requirements, ensuring a continuous improvement cycle. This level of operational oversight guarantees that Managed dAPIs maintains their integrity and reliability at all times.

Simple IntegrationManaged dAPIs have been designed for easy integration. Comprehensive documentation and guides are available to simplify the process, and a dedicated developer community provides technical support and best practices. Whether an individual is a seasoned developer or a newcomer, they will find the integration process of Managed dAPIs smooth and intuitive. Managed dAPIs are supported across 12 different networks, including Ethereum, Arbitrum, Polygon zkVM, and Optimism. Data feed contracts are adapted to the specific duration limits of each chain, ensuring compatibility. This multi-chain support expands the reach of Managed dAPIs, providing developers and blockchain networks with increased opportunities to harness the potential of decentralized data feeds.

Paving a Road to Better Protocol Performance with Oracle Extractable Value

As API3 progresses into the next phase of the dAPI rollout, API3 is turning the challenges posed by Maximal Extractable Value (MEV) into an opportunity to optimise the DeFi ecosystem. Traditionally, MEV has caused significant value loss for dApps and contributed to a poor user experience. API3 is addressing these challenges by designing a process to capture Oracle Extractable Value (OEV), a subset of MEV related to oracle updates. Outlined in the API3 OEV Litepaper, API3 will introduce an off-chain marketplace that allows dApps to auction off meta-transactions signed by first-party oracles for updating data feeds. Searchers bid for the right to perform these oracle updates, capturing the MEV associated with the transaction. This shared benefit model ensures that price feeds are updated according to the dApp's needs rather than solely relying on deviation thresholds, similar to a pull-based oracle. The transformative aspect of OEV lies in the fact that the value captured by searchers is shared with the dApps through the auction process. This approach minimises the negative impacts of MEV extraction, fostering the creation of accurate and low-latency oracles, which, in turn, enhance protocol performance and efficiency. One profound impact of OEV is its ability to create more accurate and low-latency oracles, increasing the profitability and sustainability of liquidity provision. This, in turn, improves market-making and attracts more liquidity to the application, fostering better performance and a superior user experience. By introducing a process to capture OEV, API3 demonstrates the power and potential of Managed dAPIs, paving the way for a sustainable and profitable future in DeFi.

Building a Better Oracle Service with Managed dAPIs

Managed dAPIs are transforming how dApps access and handle data on the blockchain. They represent a significant leap towards realizing a truly decentralized data economy by addressing critical issues of data integrity, security, and transparency. By leveraging Managed dAPIs, developers and networks can proactively foster transparency and reliability, building on the "don't trust, verify" principle. This approach delivers a better user experience and establishes long-term trust with users.

API3 encourages developers and blockchain networks to explore their technical documentation to learn more about using Managed dAPIs to power their applications. Explore Managed dAPIs today and join API3 in building the future of decentralised finance. For more information about Managed dAPIs and to explore the possibilities they offer, please visit API3's website and access the comprehensive technical documentation.

About API3:API3 is a leading provider of decentralised oracle solutions, committed to bridging the gap between blockchain applications and real-world data. By leveraging the power of first-party oracles and advanced technology, API3 offers developers and dApps a reliable, secure, and transparent approach to accessing off-chain data on-chain. With the launch of Managed dAPIs, API3 is driving innovation in the DeFi ecosystem and setting new standards for decentralised data feed.

Media Contact

Organization: API3 Contact Person: Adonis Cyril Website: https://api3.org/daoEmail: Adonis.radarblock@gmail.com Country: United Arab Emirates

Read more:

Introducing Managed dAPIs: Building Trust through Source Transparency - Yahoo Finance

Read More..

Blockchain is transforming industries, streamlining processes, and building a future defined by transparency, autonomy, and security. However, as we adopt this technology more and more, the need for adequate security measures becomes paramount. Blockchain security companies are the vanguards in this fight, utilizing innovative strategies and tools to ensure the integrity of these digital structures.

In this Cryptopolitan guide, we look at the top ten blockchain security companies that are making waves in this realm.

OpenZeppelin is a company that provides reliable cybersecurity technology and services for popular DeFi and NFT projects. Their mission is to protect the open economy and they have worked with major crypto organizations like Coinbase, Ethereum Foundation, Compound, Aave, TheGraph, and more, safeguarding billions of dollars in funds since their establishment in 2015.

OpenZeppelin conducts audits to ensure that your distributed systems are functioning correctly. Their engineers will carefully assess your systems architecture and codebase, and provide a detailed audit report.

Their security reports provide an analysis of the system dynamics and identify potential issues in the code. It also offers actionable recommendations to protect against potential attacks, incorporating both state-of-the-art security patterns and opportunities for the projects overall quality and maturity to improve.

CertiK was established in 2018 by professors from Columbia and Yale. They are a leading company in blockchain security, utilizing advanced Formal Verification and AI technology to safeguard and monitor blockchains, smart contracts, and Web3 applications.

Their comprehensive auditing services cover all aspects of Web3 platforms, including both the projects built on blockchains like Ethereum, BNB Chain, and Polygon, as well as the Layer 1 blockchains themselves.

Certik can be differentiated based on three prime features:

Hacken is a company that specializes in auditing the security of blockchain technology. They were founded in 2017 with the goal of making Web3 a safer environment. With over 5 years of experience, they have worked with hundreds of partners in the blockchain industry and have secured thousands of cryptocurrency projects.

Today, Hacken offers a comprehensive suite of cybersecurity services to protect businesses and communities worldwide.

It offers the following security services

Quantstamp performs audits on smart contracts, off-chain components, networking, and front-end elements with the aim of improving the security of your decentralized application.

It has a strong reputation for their intelligent contract auditing that has safeguarded a value of more than $200B globally.

The companys team comprises skilled PhDs and security experts who are the finest in the industry. They have been chosen over tech giants like Google, Facebook, Apple, and the Ethereum Foundation.

They have a six-step process, which as as follows:

Astra Pentest is a top-notch security company that specializes in blockchain security and offers both manual and automated pentesting services. Their expertise extends beyond blockchain to cover websites, mobile applications, cloud infrastructure, networks, and APIs.

With Astra Pentest, you can get:

Overall, it offers the following features:

SlowMist is a company that specializes in blockchain security. It was established in 2018 and its team has over a decade of experience in network security. Furthermore, they have also worked with major cryptocurrency exchanges such as Binance, OKX, Huobi, PancakeSwap, and Crypto.com to enhance their security.

SlowMist provides a range of security-related services including:

Armors is a top blockchain security laboratory that provides solutions for the smart contract eco-platform as well as overall blockchain security.

It offers the following solutions:

Trail of Bits has been offering security services to highly targeted organizations and products since 2012. They use advanced security research techniques and adopt an attackers mindset to minimize risk and strengthen software.

Trail of Bits builds industry-leading tools that find and help fix vulnerabilities. They are the leaders in smart contract security assessments and in understanding the security implications of the Solidity language, its compiler, and the Ethereum Virtual Machine.

Some of their offered tools for finding and fixing blockchain security vulnerabilities include:

PeckShield is a security and audit firm headquartered in China that has a team of members from around the world. The company gained recognition in 2018 for discovering problems like BatchOverflow that were present in Ethereum smart contracts.

It offers the following security services:

ConsenSys is a company focused on developing advanced blockchain software and applications for the Ethereum network. Their Diligence cybersecurity tool offers in-depth assessments of smart contracts to ensure that Ethereum projects can deploy their applications without any security concerns.

Their main products and services include the following:

Here are some factors to consider when choosing a blockchain auditing company:

Blockchain technology is undoubtedly a pillar of the modern digital landscape. Its potential is virtually limitless, but as with any technology, security is a pressing concern. The top ten blockchain security companies weve discussed in this article provide extensive security services to help safeguard the integrity of blockchain companies. Their innovative solutions, expertise, and relentless dedication are instrumental in shaping a secure and prosperous blockchain-driven world.

A good blockchain security company combines expertise in blockchain technology and cybersecurity, providing solutions that address unique challenges in the blockchain landscape, including smart contract vulnerabilities, transaction privacy, and consensus security.

Blockchain security is critical as it safeguards the integrity of blockchain networks, protecting them from vulnerabilities, hacking attempts, and ensuring data privacy and transaction transparency.

While blockchain technology is inherently secure due to its decentralized nature and cryptography, it's not impervious to threats. Proper security measures are essential to prevent potential attacks and vulnerabilities.

Encryption is crucial in blockchain security as it transforms transaction data into unreadable text, preventing unauthorized access and maintaining confidentiality and integrity of data.

A 51% attack refers to a scenario where a user or a group gains control of more than half of the network's mining power, enabling them to manipulate transactions, which undermines the blockchain's integrity.

Despite the inherent security of blockchains, they can still be compromised. Common vulnerabilities include smart contract bugs, phishing attacks, and 51% attacks, emphasizing the need for robust security measures.

Smart contract audits are crucial in identifying and rectifying vulnerabilities or bugs in the smart contract code, ensuring it functions as intended and is secure from potential exploits.

Blockchain security companies use various techniques such as zero-knowledge proofs, ring signatures, and encryption to enhance transaction privacy while maintaining the transparency and trustless nature of the blockchain.

While transaction security is vital, blockchain security also covers aspects such as consensus mechanisms, network infrastructure, smart contracts, data privacy, and maintaining the decentralized nature of the network

The future of blockchain security lies in the continuous development and refinement of security measures and protocols, increased use of AI and machine learning for threat detection, and broader regulatory standards to enhance overall security.

Read more:

Top 10 Blockchain Security Companies: Protection Against Potential ... - Cryptopolitan

Read More..

Navigating the world of cryptocurrencies and blockchain technology can often seem daunting to both beginners and seasoned investors alike. With a plethora of digital currencies emerging over the past decade, it can be challenging to distill which ones hold true potential. Among the myriad of options, Algorand stands out as a promising candidate.

Lets delve into Algorands multifaceted blockchain network, starting with its origin and moving on to explain its unique features, its native cryptocurrency ALGO, and even how it stacks up against the well-established Ethereum. By the end of this guide, youll have a strong foundation to better understand Algorands operations, advantages, and its position in the blockchain universe. So, whether youre a curious newcomer or a keen investor looking to diversify your portfolio, read on to get an in-depth insight into the world of Algorand.

Algorand, a prominent name in the blockchain space, is the brainchild of cryptography stalwart Silvio Micali. A distinguished professor at MIT and Turing Award laureate, Micalis contributions to the field date back to the 1980s. His extensive repertoire includes the origination of numerous blockchain-related protocols such as probabilistic encryption, zero-knowledge proofs, and verifiable random functions.

The year 2017 marked Algorands inception, with substantial financial backing secured the following year. By July 2018, Algorand had a functioning testnet, paving the way for public access in April 2019. Just two months later, the mainnet went live, marking a significant milestone for the project.

At the helm of Algorands operations are two distinct entities. Algorand, Inc., a profit-oriented venture, takes the lead in developing the code. In contrast, the Algorand Foundation, a non-profit organization, focuses on cultivating the ecosystem, steering community governance, and nurturing developer education. Institutions such as MIT and UC Berkeley, among others globally, are part of the Foundations Global University Program. Additionally, the Foundation actively promotes blockchain awareness by sponsoring an array of events ranging from hackathons to educational programs and certifications.

In an ambitious move to foster innovation and growth within the Algorand ecosystem, the Algorand Foundation launched the Algorand Asia Accelerator and Algorand Europe Accelerator in 2020. These initiatives aim to support ambitious projects and developers interested in Algorand by providing comprehensive assistance. The support ranges from devising strategies to executing launches, thereby bolstering the growth and vibrancy of the Algorand ecosystem.

Algorand is recognized as a self-governing, decentralized platform. Its creation has been motivated by the vision of a future-oriented financial system. Unique in its architecture, Algorand utilizes a pure proof-of-stake (PoS) mechanism, establishing it as a pioneer in the blockchain world.

Algorands offerings encompass a suite of high-performance layer 1 blockchains that strike a balance between security, scalability, privacy, and transaction finality. These layer 1 solutions are essentially modifications to the foundational protocol, enhancing the systems scalability. The most commonly observed layer 1 modifications include adjustments to the consensus protocol and the implementation of sharding.

Being a public smart contract blockchain that incorporates a staking model, Algorand is adept at facilitating the development of decentralized applications (dApps). Its capabilities extend to providing scalability solutions, an attribute thats increasingly sought after in the blockchain industry. High gas fees associated with Ethereum have prompted dApp developers and decentralized finance (DeFi) enthusiasts to explore alternative blockchain platforms. This has led to Algorand emerging as a compelling alternative to Ethereum, particularly for dApp development and DeFi applications.

Algorands architecture is uniquely designed as a two-tiered blockchain system. The foundation layer, Layer 1, supports various key processes such as the execution of smart contracts, creation of assets, and atomic swaps among assets. These functions operating on Layer 1 of Algorands blockchain aids in ensuring both security and interoperability.

Within this fundamental layer, platforms and users can generate Algorand Standard Assets (ASAs), which serve as a representation of new or existing tokens on the Algorand blockchain. This is akin to the functionality of ERC-20 tokens on the Ethereum network. In terms of security, Algorands platform executes simple smart contracts as Layer-1 Algorand Smart Contracts (ASC1s). This means they uphold the same level of security as the consensus protocol.

Layer 2 in Algorands architecture caters to the more intricate aspects of smart contracts and dApp development. This stratification of the network into Layer 1 and Layer 2 plays a significant role in enabling efficient transaction processing in Algorand. While the more complex smart contracts are handled off-chain on Layer 2, Layer 1 focuses on the swift processing of simpler transactions, unencumbered by the complexities of larger smart contracts.

The Algorand network is underpinned by its native cryptocurrency, ALGO, which holds an instrumental position within its system. Algorands distinct protocol design ensures that rewards garnered by validators for block production are proportionally distributed amongst all ALGO coin holders, as opposed to being exclusively allotted to the block producers.

In pursuit of an ideally fair coin distribution mechanism, Algorands method of decentralizing its ALGO coins is a progressive process. In the present scenario, the Algorand Foundation holds a substantial quantity of ALGO. This has led critics to perceive the protocol as centralized in the short term. Nevertheless, Algorands equitable reward distribution structure is engineered to progressively counteract network centralization, aiming for a more democratized system in the long run.

ALGO was initially introduced to the market via an Initial Exchange Offering (IEO) on Binance. The driving belief behind this decision was the conviction that the market itself should be the ultimate determinant of the assets value. To that end, tokens were dispensed using a Dutch auction mechanism.

In a Dutch auction, a method of public offering, the price of the offering is set only after all bids have been received. This process allows for the determination of the highest possible price at which the entire offering can be sold. During such an auction, investors propose a bid specifying both the quantity and price theyre willing to commit to.

Drawing a definitive conclusion on whether Algorand is an Ethereum killer isnt straightforward. Nonetheless, its evident that Algorand presents certain advantages over Ethereum, such as its superior transaction speed and the absence of gas fees. In Algorand, the minimal transaction fee, set at 0.001 ALGO coins, is solely determined by the transaction size, as opposed to the network congestion that often impacts Ethereums gas fees.

The Algorand Standard Asset (ASA) and Ethereums ERC-20 token share a similarity in their allowance for the creation of smart contracts. However, while ERC-20 smart contracts inevitably contribute to network congestion and increase gas costs on Ethereum, ASA smart contracts can be executed off-chain, significantly reducing transaction fees.

Furthermore, bridges established between ASA and ERC-20 enable Algorand applications to interact seamlessly with Ethereum applications. This interoperability allows for the swift transfer of cryptocurrencies like Tether (USDT) to ALGO at a rate of 1000 transactions per second. This exchange efficiency is a promising aspect of Algorands potential and utility within the blockchain landscape.

In the ever-evolving landscape of blockchain technology and cryptocurrencies, Algorand emerges as an impressive contender. It stands out with its unique two-tiered architecture, cutting-edge proof-of-stake consensus protocol, and its token ALGO, all of which provide a secure, efficient, and scalable platform for a wide range of applications. Moreover, its approach to equitably distribute rewards and its potential as a strong alternative to Ethereum make it an intriguing choice for investors and developers alike. As we continue to monitor Algorands trajectory in this dynamic domain, its commitment to decentralization, transparency, and interoperability signals a promising future for this innovative blockchain platform.

See more here:

What is Algorand? $ALGO - Asia Crypto Today

Read More..

Source: Midjourney

As the digital economy relentlessly expands its footprint, the Bitcoin ecosystem has sought innovative ways to keep pace. One of these innovations is Bitcoin Ordinals, a groundbreaking protocol that marks a paradigm shift in how the Bitcoin blockchain is utilized. Developed by Casey Rodarmor, Bitcoin Ordinals gives the ability to assign unique identifiers to individual satoshis the smallest unit of Bitcoin effectively transforming them into non-fungible tokens (NFTs) right on the Bitcoin blockchain. This novel concept is not just a technical feat but also a manifestation of the limitless possibilities of blockchain technology. In the ongoing dialogue about digital property rights, the advent of Bitcoin Ordinals could redefine the future of Bitcoin and its applications.

Before Bitcoin Ordinals, Bitcoins were fungible, with no way of differentiating one satoshi from another. This fungibility has always been a core characteristic of Bitcoin, mirroring the exchangeability of traditional fiat currencies. However, Bitcoin Ordinals has dared to disrupt this characteristic, a bold move which has been made possible by two significant updates to the original Bitcoin protocol: Segregated Witness (SegWit) and Taproot. These updates together have ushered in a new era for Bitcoin one where every single satoshi can carry its own unique identity and story.

The introduction of Bitcoin Ordinals might seem like a technical novelty at first glance, but it has the potential to redefine Bitcoins use beyond financial transactions. Ordinal NFTs, for example, could be used to attach ordinal satoshis to individual security tokens or stablecoins, enable Bitcoin smart contracts, and potentially help Bitcoin penetrate new markets and audiences. This is a far cry from the typical applications of NFTs on Ethereum or other Layer-2 chains/alternative Layer-1 chains, where tokens primarily document ownership and authenticity of a specific digital asset with the actual metadata stored off-chain.

Theres no denying the potential of Bitcoin Ordinals, but they are not without controversy. Critics have voiced concerns about inefficient use of block space, potential increase in transaction fees, and slower transaction times across the network. But regardless of these debates, Bitcoin Ordinals opens up a new chapter in the history of Bitcoin, signaling the potential for greater innovation and expansion of the digital economy.

In this article, we delve into the intricacies of Bitcoin Ordinals, exploring their potential to change the way we use the Bitcoin blockchain and why they may prove to be more effective than regular NFTs on Ethereum or other L2 chains/alternative L1 chains. As we unpack the technology behind Bitcoin Ordinals, we will strive to present a balanced view of this pioneering protocol and its implications for the broader cryptocurrency ecosystem.

Bitcoin Ordinals, conceived by Casey Rodarmor, present a groundbreaking approach to using the Bitcoin network, extending its use case from pure financial transactions to encompass a more diverse range of digital applications. They achieve this by uniquely identifying each satoshi, the smallest unit of Bitcoin, and enabling the inscription of arbitrary data onto individual satoshis, transforming them into non-fungible tokens (NFTs) or digital artifacts as Casey likes to call them.

Founded in 2022, the Ordinals project found inspiration in references to atoms in Bitcoins original codebase, developed by the pseudonymous Satoshi Nakamoto. The vision was clear: if every satoshi could be distinctly identified, it would pave the way for innovative applications beyond the realm of traditional financial transactions. Rodarmor and his team now work full time on the Ordinals project, pushing the boundaries of the Bitcoin protocol.

At its core, the Ordinal protocol sequentially numbers satoshis. Once a unique serial number is assigned, users can inscribe data onto these satoshis, creating NFTs that are unique in the Bitcoin ecosystem. Rodarmors NFTs differ from traditional ones primarily in their immutability the inscribed data is put directly on the blockchain, contrasting with other NFTs that typically store the JPG or text file elsewhere and place a link to that data on the blockchain.

Despite the inherent simplicity of this concept, its a paradigm shift for Bitcoin, previously known for its fungibility and transactional nature. This shift hasnt been without controversy, and some Bitcoin community members see Ordinals as an assault on Bitcoins foundational ethos. However, as we dive deeper into the underlying technologies that make this possible, we can begin to understand the potential impact of Bitcoin Ordinals on the broader cryptocurrency ecosystem.

The evolution of Bitcoin Ordinals would not have been possible without two significant updates to the Bitcoin protocol: Segregated Witness (SegWit) and Taproot. These technological advancements have served as the backbone for the development of Ordinals, playing crucial roles in their operation and application.

SegWit, implemented to rectify a bug known as transaction malleability and to increase the transaction capacity of each block, proved integral to the functionality of Ordinals. By segregating the witness data from the transaction data, SegWit fixed the transaction malleability issue, which was vital for ensuring the reliability of Ordinals by providing certainty about transaction identifiers.

The other piece of the puzzle, Taproot, enhanced Bitcoins privacy by making all transactions on the Bitcoin network look identical to external observers. Moreover, it introduced new scripting capabilities, used in the creation and revelation of inscriptions in Ordinals.

The combination of SegWit and Taproot allowed for the efficient tracking of Ordinals and the storage of inscription content. However, they also brought with them considerations about block size and the potential for inefficient use of block space, leading to increased transaction fees and slower transaction times across the network.

As we delve deeper into the practical implications of Bitcoin Ordinals, we must acknowledge the role played by SegWit and Taproot. Together, they have facilitated a new wave of innovation, enabling Bitcoin to adapt and evolve in a rapidly changing digital economy. This evolution is a testament to Bitcoins enduring capability to inspire new ideas, spur debates, and challenge the status quo, all while adhering to the ethos of decentralization.

Creating an Ordinal NFT involves inscribing arbitrary content onto individual satoshis, essentially transforming these smallest units of Bitcoin into unique digital artifacts. Inscriptions, just like Bitcoin, are durable, immutable, secure, and decentralized.

The creation process can be accomplished either through a series of manual steps involving the use of Bitcoin Core and an additional tool known as ord, or by utilizing more user-friendly services like Ordswap that simplify the inscription process significantly.

In the manual process, a series of steps are involved that require a Bitcoin full node, a wallet capable of inscription and sat control, and the ord tool for handling the inscriptions. This involves installing and configuring Bitcoin Core, syncing the Bitcoin blockchain, creating a Bitcoin Core Wallet, receiving sats, creating the inscription content, creating the inscriptions, and sending and receiving inscriptions.

However, as Ordinal NFTs have grown in popularity, user-friendly tools and services like Ordswap have emerged that streamline this process significantly. Ordswap allows users to easily inscribe files, text, BRC-20 tokens (similar to Ethereums ERC-20 tokens, but built on the Bitcoin network), and more onto satoshis. The process with Ordswap is as simple as uploading a file, then sending BTC to an address to pay for the inscription fee. Once the block containing the inscription is mined, the inscription is permanently on the Bitcoin blockchain.

This advancement in the user interface and ease of handling Ordinal NFTs represents a significant improvement in the creation process, making it far more accessible to a wider range of users. Whether one chooses the manual method or a service like Ordswap, the end result is the creation of a unique digital artifact inscribed on a satoshi that is as immutable and secure as Bitcoin itself.

The Ordinals project, which brings non-fungible tokens (NFTs) to the Bitcoin blockchain, has sparked intense debates within the Bitcoin community. The crux of the disagreement lies in whether Bitcoin should exclusively serve as a medium for financial transactions or if it should be used to support a variety of applications, including NFTs.

At the launch of the Ordinals protocol, a schism was noticeable between Bitcoin purists who believe the blockchain should be limited to financial transactions, and those who see the network as adaptable enough to host a variety of use cases, such as digital art and more.

Casey Rodarmor, the creator of Ordinals, explained that Ordinals leverages inscriptions arbitrary content like text or images that can be added to sequentially numbered satoshis (the smallest units of Bitcoin) to create unique digital artifacts. This wouldnt be possible without Bitcoins Segregated Witness (SegWit) upgrade in 2017 and the more recent 2021 Taproot upgrade, which allowed for larger amounts of NFT data to be stored on-chain.

The opposing camp argues that Ordinals, by adding non-financial data to the blockchain, may congest blocks and push up transaction fees, thereby impacting the financial transactions Bitcoin was originally designed to facilitate. Bitcoins creator, Satoshi Nakamoto, had previously rejected the idea of incorporating a domain name system (DNS) into Bitcoin for similar reasons, saying, Piling every proof-of-work quorum system in the world into one dataset doesnt scale.

Nonetheless, Ordinals has its supporters. Some see it as a potential solution to the declining Bitcoin block subsidy, which is the amount of bitcoin (BTC) a miner receives for solving a block. They argue that increased competition for block space, driven by Ordinals inscriptions, could result in higher transaction fees, thereby incentivizing miners to continue securing the Bitcoin network as the block subsidy decreases.

On this contentious issue, notable figures in the Bitcoin community have taken sides. Blockstream CEO Adam Back expressed disapproval, hinting that miners might even censor Ordinals inscriptions. Bitcoin Core developer Luke Dashjr labeled Ordinals as an attack on Bitcoin. On the other hand, Bitcoin educator Dan Held embraced the protocol, tweeting, Ordinals = NFTs on Bitcoin. This is good for Bitcoin.

The debate surrounding Ordinals underlines the larger philosophical discourse within the Bitcoin community regarding its future direction and its core principles. As Dennis Pourteaux, a surgeon and longtime Bitcoiner, noted, these technical debates are vital for keeping Bitcoin safe and progressing. Whether this progression includes new applications like NFTs or remains confined to the financial domain is a question the Bitcoin community continues to grapple with.

The introduction of Bitcoin Ordinals could lead to significant shifts in the use and user base of Bitcoin. By making the creation of NFTs possible on the Bitcoin blockchain, applications of Bitcoin may extend beyond financial transactions, transforming it into a platform for digital art, intellectual property rights, real estate, and much more. This mirrors the multifaceted applications witnessed in the Ethereum-based NFT realm. Moreover, the ability to inscribe arbitrary content on individual satoshis suggests the potential for these Ordinal satoshis to be tied to unique security tokens or stablecoins. This advancement could establish the foundation for asset tokenization on the Bitcoin blockchain, where each token or coin signifies a specific real-world asset or value.

Further broadening these possibilities is the potential integration of Discreet Log Contracts (DLCs) with Bitcoin Ordinals. Invented by Tadge Dryja, co-creator of the Lightning Network, DLCs are uncomplicated smart contracts engineered to transfer native Bitcoin in a decentralized and trustless manner. The amalgamation of DLCs into the Ordinals protocol could provide a programmable method for implementing trustless trading and lending of Ordinals.

DLCs, through conditional payments on Bitcoin, create a system akin to escrow but without the need for a centralized custodian or set of validators. This characteristic is particularly advantageous for the Ordinals market. While Ordinals function as base assets or NFTs, intricate transactions such as trading, borrowing, or lending necessitate an additional layer of technology this is where DLCs step in.

DLCs true strength lies in their programmability. They can be customized based on any type of input or smart contract signal, thereby allowing the creation of complex logic to interact with and transfer native Bitcoin. This enables more expressive applications of Ordinals in conjunction with DLCs.

However, the integration of DLCs with Ordinals is not without challenges. It requires the embedding of a DLC signing library into the Bitcoin wallet in use, in addition to a facilitation layer or a Bitcoin oracle network capable of interpreting smart contract commands, feeding data, and opening and closing these DLC escrows. Nonetheless, once these hurdles are overcome, DLCs could offer robust solutions for conducting finance on Ordinals, enabling practical applications akin to those seen with NFTs on Ethereum and Solana.

On the other hand, Partially Signed Bitcoin Transactions (PSBTs) offer an alternative approach for secure and decentralized transactions in the Bitcoin Ordinals ecosystem. PSBTs facilitate multi-party collaborative signing of a Bitcoin transaction without revealing private keys, ensuring that no single party has complete control. The procedure is fairly straightforward and involves creating a PSBT, sharing it with the other party, and then signing it. Once signed, the PSBT is ready to be broadcast to the Bitcoin network. PSBTs also enable decentralized listing of Ordinals for sale across multiple marketplaces simultaneously, adhering to the trustless model of DeFi.

While both DLCs and PSBTs come with their own unique advantages and potential applications, they also have specific challenges and constraints. The choice between the two would depend on the specific requirements and constraints of the transaction.

These transformations suggest an expansion of Bitcoins audience. As Bitcoin diversifies the types of transactions possible on its network with Ordinals, it could attract new markets. Stakeholders in the NFT space such as artists, creators, collectors, who have predominantly used Ethereum or other platforms, might start considering Bitcoin as an additional or alternative platform.

However, its crucial to remember that these are forward-looking projections given the novelty of Bitcoin Ordinals. Actual outcomes will likely hinge on various factors, including technological advancements, community acceptance, regulatory responses, and more. These developments underscore the dynamic and innovative potential of the Bitcoin Ordinals protocol.

Bitcoin Ordinals introduce a unique approach to tokenization compared to other existing systems. The underlying philosophies and mechanisms of Ordinals and ERC-721 have both similarities and differences.

A comparison of Bitcoin Ordinals with existing blockchain systems and protocols

ERC-721 (Ethereum): On Ethereum, ERC-721 has set the standard for non-fungible tokens. ERC-721 tokens are unique and are primarily used to represent ownership of a unique item or piece of content. Each token is unique and not interchangeable with any other token its non-fungible. The downside to this is that unless the contents of a token are completely on chain, they typically just point to an Arweave link, IPFS link or some other comparable service. Ethereum uses smart contracts to manage, transfer, and interact with these tokens. These smart contracts are programmable and can contain complex logic.

Bitcoin Ordinals: Bitcoin Ordinals take a different approach. Rather than using smart contracts, Ordinals make use of a new Bitcoin protocol that assigns identifiers to individual satoshis (the smallest unit of Bitcoin). This allows any piece of data, such as an image or text, to be inscribed directly onto a specific satoshi. This data is purely on-chain and does not rely on other protocols, which ensures its survival as long as the Bitcoin blockchain exists. This method, while it has its disadvantages, is much more robust and durable than ERC-721s due to the on-chain nature of Ordinals.

Benefits and disadvantages of Bitcoin Ordinals in relation to other systems

Benefits: The major benefits of Bitcoin Ordinals include robustness, transparency, and decentralization. Since Ordinals utilize the existing Bitcoin network, they inherit the networks security, infrastructure, and extensive decentralization. As Bitcoin has been around for longer and has a larger network, it is often seen as more secure than newer blockchains. Furthermore, Bitcoins transparency ensures that all inscriptions are publicly verifiable on the blockchain.

Disadvantages: However, there are also drawbacks to the Bitcoin Ordinals system. The major one is the high technical barrier to entry for users, as detailed setup and understanding of Bitcoins protocol are needed. Additionally, the practical limit for data inscriptions is quite low (around 400 KB), making it unsuitable for larger files. The cost of inscriptions can also be high, especially during periods of high demand for block space.

Case studies of successful uses of Bitcoin Ordinals

The release of the Bitcoin Ordinals protocol sparked a flurry of activity and rapid development of services around it. Various projects, such as Yuga Labs, GOLDRUSH, Ordinal Punks, Bitcoin Frogs and more have utilized Bitcoin Ordinals to create unique digital inscriptions or NFTs. Numerous services, wallets, and marketplaces have sprung up to support the inscription, management, and sale of these Ordinals. A range of new, user-friendly tools have emerged, enabling even non-technical users to create, manage, and trade Ordinals. Marketplaces like ordinals.market, ordswap.io, ordina.ls, and scarce.city allow users to buy and sell inscriptions.

Despite its relatively recent introduction, Bitcoin Ordinals have already demonstrated potential for success in several instances. However, more case studies and real-world examples are needed to further illustrate its capabilities and limitations. This will give a more holistic understanding of the Ordinals protocol and how it stacks up against other NFT protocols like ERC-721.

In closing, the introduction of Bitcoin Ordinals and their potential applications mark a significant paradigm shift in the Bitcoin landscape. Through this novel protocol, satoshis, the smallest units of Bitcoin, are given unique identities and become inscribable with arbitrary data, essentially transforming them into non-fungible tokens (NFTs) or digital artifacts. This breakthrough was made possible due to significant updates to the Bitcoin protocol SegWit and Taproot, which, while enabling this new functionality, also bring about concerns regarding inefficient block space usage, potentially increased transaction fees, and slower network speeds.

Unquestionably, Bitcoin Ordinals present a broader spectrum of applications for Bitcoin, going beyond mere financial transactions to encompass digital art, intellectual property rights, real estate, asset tokenization, and more. This paradigm shift not only introduces a new era of on-chain NFTs on the Bitcoin blockchain but also challenges traditional understanding of NFTs themselves. Unlike common methods where NFTs typically store links to off-chain data, Bitcoin Ordinals allow data to be stored directly on the Bitcoin blockchain, lending a higher degree of immutability to the NFTs.

However, the Bitcoin community remains divided on this evolution. While some view Ordinals as an innovative application that could supplement declining block rewards and attract a diverse range of users including artists, creators, collectors, and more, others see it as a deviation from Bitcoins core purpose and a potential threat to its performance and security.

In terms of technology, Bitcoin Ordinals diverge from established NFT protocols like Ethereums ERC-721. Ordinals reliance on direct inscription onto individual satoshis offers greater robustness and transparency. Still, these benefits come with challenges such as high technical barriers to entry, limitations on data size, and potential for increased transaction costs due to competition for block space.

Successful utilization of Bitcoin Ordinals in projects such as Yuga Labs, GOLDRUSH, and Ordinal Punks, and the development of Ordinals-focused services and marketplaces like Ordswap have shown promising initial signs. Yet, these are still the early days for this technology. More practical applications and case studies are needed to fully assess the potential and limitations of Bitcoin Ordinals.

The advent and application of Bitcoin Ordinals, despite the controversies and potential drawbacks, signify a transformative era in Bitcoins history. The concept expands the boundaries of the Bitcoin protocol and holds the potential to further foster innovation in the digital economy. It also reiterates the dynamic and ever-evolving nature of blockchain technology. The future of Bitcoin Ordinals will be influenced by multiple factors, including further technological advancements, community acceptance, regulatory responses, and market dynamics, thus serving as a compelling testament to the ongoing process of innovation and contention that drives the blockchain and cryptocurrency fields.

Read the original:

Exploring the Potential of Bitcoin Ordinals: A Leap into the Era of On ... - Medium

Read More..

In recent years, blockchain technology has emerged as a transformative force across various industries, revolutionizing traditional networking models. Its potential to establish secure, transparent, and decentralized networks has sparked widespread interest and garnered significant adoption worldwide. From supply chain management to decentralized cloud computing, blockchain has showcased its prowess in reshaping networking landscapes.

Blockchain, at its core, is an immutable and distributed ledger technology that allows for the transparent recording of transactions or data across multiple network participants. By eliminating the need for intermediaries and enabling peer-to-peer interactions, it holds the promise of revolutionizing the way networks operate, fostering trust, efficiency, and enhanced security.

One prime example of blockchains success lies in the realm of supply chain management. Projects like Morpheus Network have harnessed the power of distributed ledger technology to create transparent and efficient supply chain networks, reducing fraud, improving traceability, and streamlining processes across global trade ecosystems.

Blockchain has found a natural synergy with emerging technologies like the Internet of Things (IoT). Projects such as IOTA have leveraged blockchain to enable secure machine-to-machine communication and frictionless transactions, opening up a world of possibilities for interconnected devices and smart cities.

The integration of blockchain in networking has propelled advancements in cloud computing. Platforms like Akash Network have pioneered decentralized cloud infrastructures, leveraging blockchains transparent and secure nature to offer scalable and cost-effective alternatives to traditional cloud services. This shift empowers individuals and organizations to contribute their resources to a distributed network, forming a collaborative ecosystem with enhanced privacy and reliability.

Beyond these realms, blockchain networking has paved the way for revolutionary innovations in fields such as finance, social media, identity verification, and cross-border trade. Solutions like Chainlink, VeChain, Civic, and XinFin exemplify how blockchain technology has unlocked new possibilities, enabling secure and trustless networking experiences that were previously unattainable.

In this article, we will explore a broad spectrum of successful implementations of blockchain in networking, showcasing these diverse applications and the tangible impact they have had on industries and communities worldwide. By analyzing these real-world examples, we aim to illustrate the potential and transformative power of blockchain technology in shaping the future of networking.

As blockchain continues to evolve and capture the imagination of innovators, it is imperative to understand its potential and explore the success stories that have emerged from its application. By doing so, we can gain deeper insights into the transformative capacity of blockchain in establishing secure, transparent, and decentralized networks that can redefine industries and improve the lives of individuals across the globe.

Blockchain technology has revolutionized networking across various industries, introducing secure, transparent, and decentralized solutions. Below is a diverse array of successful implementations of blockchain in networking, highlighting their transformative impact on industries and communities worldwide.

Morpheus Network is a blockchain-based supply chain platform that aims to streamline and automate global trade processes by leveraging the capabilities of Web3 technologies. It provides a decentralized and transparent ecosystem that connects various stakeholders involved in supply chain operations, including manufacturers, distributors, suppliers, logistics providers, customs agencies, and financial institutions.

One of the key features of the Morpheus Network is its smart contract functionality, which allows for the creation and execution of self-executing and self-enforcing agreements between parties. Smart contracts enable automation of supply chain processes, such as payment settlements, customs documentation, and compliance verification, reducing the need for manual intervention and increasing efficiency.

The platform utilizes blockchain technology to establish a tamper-proof and auditable ledger of all supply chain transactions and activities. This enables real-time visibility and traceability across the entire supply chain network, enhancing transparency and trust among participants. The immutable nature of blockchain ensures that the records cannot be altered or manipulated, providing a reliable source of truth for auditing and compliance purposes.

As a Web3 solution, Morpheus Network embraces the principles of decentralization and interoperability. It leverages blockchains decentralized architecture to eliminate the need for intermediaries and centralized authorities in supply chain processes. Furthermore, it aims to establish seamless connectivity and interoperability between different supply chain platforms and legacy systems, allowing for efficient data sharing and collaboration among stakeholders.

When it comes to the integration of blockchain technology with the Internet of Things (IoT), IOTA has emerged as a pioneering platform that has revolutionized the way devices interact and transact within IoT ecosystems. By addressing the inherent limitations of traditional networking approaches, IOTA has introduced a secure, scalable, and fee-less network for machine-to-machine communication.

At the heart of IOTAs innovation lies its unique distributed ledger architecture known as the Tangle. Unlike traditional blockchain structures, which rely on blocks and miners, the Tangle employs a Directed Acyclic Graph (DAG) model. This design allows transactions to be interlinked and verified by multiple participants simultaneously, eliminating the need for miners and associated transaction fees. As a result, IOTA facilitates fee-less transactions, making micro-transactions and data exchanges between IoT devices economically viable.

One of the significant advantages IOTA brings to IoT networking is scalability. Traditional blockchain networks face challenges in handling a vast number of transactions, resulting in network congestion and slower processing times. However, the Tangles architecture enables it to scale efficiently with the increasing number of IoT devices and transactions. As more devices join the network, they contribute to the verification of transactions, enhancing the overall security and efficiency of the network.

The integration of IOTA with IoT has numerous applications. For example, in a smart city environment, IOTA can facilitate secure communication and data exchange among various devices such as sensors, autonomous vehicles, and infrastructure components. These devices can autonomously transact and share data without the need for central authorities, enabling the development of innovative applications like smart parking, energy management, and waste management.

IOTAs integration of blockchain technology with the Internet of Things presents a groundbreaking approach to networking. Through its Tangle architecture, IOTA offers a scalable, fee-less, and secure platform for machine-to-machine communication and transactions. With its wide-ranging applications and potential for the machine economy, IOTA paves the way for the realization of a connected, autonomous, and efficient IoT ecosystem.

Akash Network is a decentralized cloud computing platform that leverages blockchain technology to enable peer-to-peer cloud infrastructure marketplace. It aims to provide an open, secure, and cost-effective alternative to traditional cloud computing services by utilizing spare computing resources from individuals and organizations.

At its core, Akash Network is built on the principles of decentralization and the concept of a decentralized marketplace. It connects individuals or organizations with idle computing resources, such as unused server capacity or data center infrastructure, with those who need computing resources for their applications or workloads. This creates an ecosystem where users can lease out their spare resources and earn rewards in the form of the networks native token, AKT.

Ripple has emerged as a leading example of blockchain technology applied to the finance industry. Ripples blockchain-based solution, known as RippleNet, is designed to revolutionize cross-border transactions, making them faster, more secure, and cost-effective compared to traditional banking systems.

One of the key challenges in cross-border transactions is the inefficiency and lack of transparency in the existing systems. Traditional international transactions often involve multiple intermediaries, such as correspondent banks, which introduce delays, high fees, and potential errors. Ripple aims to address these issues by providing a decentralized network that enables direct and real-time settlements between financial institutions.

RippleNet facilitates cross-border transactions by leveraging its native cryptocurrency, XRP, as a bridge currency. XRP acts as a liquidity tool, enabling rapid conversion between different fiat currencies. Financial institutions that join the RippleNet network can use XRP to facilitate instant and low-cost transfers, bypassing the need for multiple intermediary banks and reducing the associated costs.

In summary, Ripples implementation of blockchain technology in finance has disrupted the traditional cross-border payment systems. Through RippleNet, it offers financial institutions a fast, cost-effective, transparent, and secure solution for cross-border transactions. With its growing adoption and partnerships, Ripple continues to pave the way for the transformation of the global financial system.

Civic is an innovative Web3 solution that addresses the pressing need for secure and privacy-preserving digital identity verification. In a digital world where personal data is vulnerable to breaches and identity theft, Civic aims to empower individuals with control over their digital identities while streamlining the identity verification process for businesses.

Traditional methods of identity verification often rely on centralized authorities, such as government agencies or financial institutions, to collect and store sensitive personal information. This centralized approach poses risks, as it creates attractive targets for hackers and exposes individuals to potential privacy breaches. Civic disrupts this paradigm by leveraging blockchain technology to offer a decentralized and self-sovereign identity verification solution.

Civics platform allows individuals to securely verify their identities and share relevant information with third parties, such as financial institutions or service providers, when necessary. The underlying blockchain ensures the integrity and immutability of identity-related data, reducing the risk of unauthorized tampering or manipulation. This decentralized nature of blockchain also eliminates the need for a single point of failure, enhancing the security and resilience of the identity verification process.

Civic Pass is designed to require users to pass a simple test of humanity, age, or location to use specific services using Web3 technology. Civic Pass is a revocable access token for your users. You set your requirements to meet your access criteria, from age to location to humanity. It provides a fantastic way to token gate your Dapps. Below are some of its notable features.

Theta Network is a blockchain-based platform that aims to revolutionize the digital media and entertainment industry, including social media, by leveraging decentralized technology. It focuses on improving the efficiency of content delivery, reducing costs, and enhancing user engagement.

In the context of social media, Theta Network introduces the concept of shared economy. It incentivizes users to contribute their spare bandwidth and computing resources to the network by sharing and relaying video content. Users who contribute resources are rewarded with Theta Fuel (TFUEL), the native cryptocurrency of the Theta Network. This decentralized approach to content delivery helps reduce reliance on centralized servers and content delivery networks (CDNs), leading to improved scalability and reduced costs.

Theta Network also incorporates a reputation system that rewards users based on their contributions to the network, including content creation, sharing, and engagement. This encourages active participation and fosters a vibrant community on social media platforms powered by Theta Network. Content creators and influencers have the opportunity to earn additional rewards and monetize their content through microtransactions and subscriptions.

The successful implementations of blockchain in various networking domains have demonstrated the immense potential of this technology to revolutionize industries and reshape traditional systems. The examples discussed, such as Morpheus Network in supply chain management, IOTA in Internet of Things (IoT), Ripple in finance, Civic in identity verification, and Theta in social media showcase the diverse range of applications and the significant benefits that blockchain brings to these sectors.

Blockchain brings transparency, traceability, and trust to supply chain management, addressing issues like counterfeiting and inefficient processes. It enables real-time visibility, secure data sharing, and automated financial transactions.

Blockchain improves the connectivity, scalability, and security of IoT networks. It enables fee-less, scalable, and secure machine-to-machine communication, opening up possibilities for autonomous devices, smart cities, and the machine economy.

Ripple's decentralized network, RippleNet, offers fast, cost-effective, and secure cross-border transactions. By leveraging blockchain and XRP as a bridge currency, it reduces transaction times, costs, and intermediaries in international payments.

Civic provides a decentralized and privacy-preserving approach to identity verification. It empowers individuals with control over their digital identities, using blockchain and cryptography to enhance security, reduce identity theft risks, and streamline verification processes.

Blockchain brings transparency, security, decentralization, and immutability to networking. It enhances trust, streamlines processes, reduces costs, and improves user experiences in various sectors, such as supply chain management, IoT, finance, and identity verification.

The rest is here:

How Does Blockchain Networking With Emerging Technologies ... - Cryptopolitan

Read More..