The post Unveiling the Top-Ranked Penetration Testing Companies: A Comprehensive Guide appeared first on Tok&Aero.
]]>The Role of Penetration Testing in Modern Cybersecurity
Penetration or pen testing acts as a cybersecurity litmus test, helping organizations understand their security weaknesses before attackers do. It encompasses various types, including web application testing, network testing, and social engineering, tailored to uncover different vulnerabilities. As cyber threats evolve, staying ahead with proactive penetration testing has never been more crucial.
Evaluation Criteria for Top-Ranked Penetration Testing Companies
Ranking penetration testing companies involves a multifaceted approach. It’s not just about the number of tests conducted but the depth and breadth of expertise. Factors such as extensive industry experience, diverse service offerings, glowing client testimonials, prestigious certifications, and innovative testing methodologies all play a role in determining who leads the pack.
Overview of Top-Ranked Penetration Testing Companies
Secureworks stands out with its robust background in cybersecurity. Specializing in a wide array of services, from network to application testing, this company is renowned for its cutting-edge approach and detailed reporting. Client success stories abound, with case studies demonstrating significant security improvements post-engagement.
Rapid7 is celebrated for its deep technical expertise and bespoke testing services. Catering to various industries, this firm’s adaptability and thorough understanding of different threat landscapes make it a trusted partner in cybersecurity.
CrowdStrike distinguishes itself by focusing on innovation. Leveraging the latest technologies and methodologies, it delivers comprehensive penetration testing that identifies vulnerabilities and provides actionable insights for long-term security enhancement.
How to Choose the Right Penetration Testing Company for Your Business
Selecting a penetration testing partner is a strategic decision. It’s essential to align the company’s needs with the services offered. Look for firms emphasizing clear communication, detailed reports, and actionable advice. Moreover, consider whether a long-term partnership or a one-off engagement best suits your organization’s objectives.
Case Studies: Success Stories from Leading Penetration Testing Firms
Real-world success stories underscore the value of top-tier penetration testing. For instance, a SecureWorks case study illustrates how a comprehensive testing strategy helped a financial institution bolster its defenses, preventing potential breaches that could have led to substantial economic loss and reputational damage.
Similarly, Rapid7 provided a retail giant with critical insights through rigorous testing. This led to a fortified online presence safeguarding the company and its customers from data theft and fraud.
The Future of Penetration Testing
The future of penetration testing is intertwined with advancements in technology. The integration of AI and machine learning is set to redefine how vulnerabilities are detected and addressed. However, as the landscape evolves, so do the challenges. Penetration testing firms must stay ahead of rapidly advancing threat actors and increasingly complex systems.
Summarization
The journey through the landscape of top-ranked penetration testing companies illuminates a critical pathway in the cybersecurity realm. It’s not merely about identifying vulnerabilities; it’s about understanding, preparing, and fortifying against the multifaceted cyber threats in the digital age. As we’ve explored the prowess and credentials of leading penetration testing firms, it becomes evident that choosing the right partner is instrumental in safeguarding an organization’s digital assets.
An organization commits to a partnership beyond mere testing in selecting a top-tier penetration testing company. It invests in a comprehensive cybersecurity strategy, ensuring that defenses are current and resilient against evolving threats. With their deep expertise, sophisticated methodologies, and client-centric approaches, these companies provide more than just a service—they offer a shield in the cybersecurity battleground, protecting against potential financial loss, data breaches, and reputational damage.
Moreover, the case studies highlighted the tangible benefits of engaging with such elite firms. From fortifying financial institutions against sophisticated cyber-attacks to enabling retail giants to secure their digital storefronts, the value delivered by these top-ranked companies is unmistakable. They detect vulnerabilities and empower businesses with the knowledge and strategies to enhance their security posture.
As we gaze into the future of penetration testing, it’s clear that the field will continue to evolve, shaped by technological advancements and shifts in the cyber threat landscape. Integrating artificial intelligence and machine learning will refine testing methodologies, offering more nuanced insights into potential vulnerabilities. Yet, as the digital frontier expands, so will the ingenuity of cyber adversaries, presenting new challenges that will test the mettle of these top-ranked firms.
In conclusion, a top-ranked penetration testing company’s role is pivotal in modern cybersecurity architecture. Choosing such a partner for businesses navigating the digital domain is not just a strategic decision—it’s a cornerstone in building a resilient and secure digital presence. As cyber threats grow more sophisticated, the value of having a seasoned, expert ally in this relentless cyber battle cannot be overstressed. By aligning with the best in the field, organizations protect their digital assets and affirm their commitment to cybersecurity, ensuring they are well-prepared to meet today’s and tomorrow’s challenges.
References
This article typically ends with a list of references, including industry reports, company websites, client testimonials, and other authoritative sources that provide additional insights and validate the information presented.
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]]>The post Ethereum Price Unleashed: Trends, Factors, and MEXC’s Role in the Market appeared first on Tok&Aero.
]]>In the ever-evolving landscape of cryptocurrencies, Ethereum stands tall as a trailblazer. Its journey has been a roller-coaster of highs and lows, captivating the attention of investors, traders, and enthusiasts. This article delves into the intricate web of Ethereum’s price dynamics, exploring the underlying factors that drive its fluctuations. Additionally, we’ll shed light on the significant role played by MEXC, a prominent cryptocurrency exchange, in shaping Ethereum’s price journey.
Understanding Ethereum’s Remarkable Climb
At its core, Ethereum is not just another cryptocurrency; it’s a platform that has redefined the possibilities of blockchain technology. Conceived by the visionary Vitalik Buterin in 2015, Ethereum introduced the world to smart contracts and decentralized applications (DApps). This breakthrough laid the foundation for a decentralized ecosystem that could execute complex agreements and applications without intermediaries.
Ethereum’s journey from its humble beginnings to its current prominence has been marked by technical innovations, developer collaboration, and a fervent community. What started as an idea on a whitepaper transformed into a vibrant network that underpins a multitude of projects across various industries. Its growth was fueled by a passionate community of developers, eager to explore the uncharted territories of decentralized finance (DeFi), non-fungible tokens (NFTs), and beyond.
Deciphering Ethereum’s Price Movements
The cryptocurrency market is known for its volatility, and Ethereum is no exception. Ethereum’s price history is a testament to the ebb and flow of market sentiment and the broader technological landscape. Let’s explore the key drivers behind Ethereum’s price movements:
- Market Sentiment Shifts: Cryptocurrency prices are highly responsive to shifts in market sentiment. Positive news, regulatory developments, and endorsements from influential figures can trigger substantial price rallies. Conversely, negative news can lead to rapid declines.
- Technological Upgrades and Developments: Ethereum’s price trajectory is closely linked to its technical advancements. Ethereum 2.0, the ongoing upgrade to a proof-of-stake (PoS) consensus mechanism, aims to address scalability issues and enhance sustainability. This transition has generated significant anticipation and speculation in the market.
- Ecosystem Growth and Adoption: Ethereum’s value is often tied to the growth of its ecosystem. The proliferation of DeFi protocols, NFT platforms, and decentralized applications on the Ethereum network showcases its utility and adoption.
- Market Competition and Alternatives: Ethereum faces competition from other smart contract platforms that promise scalability and efficiency. The emergence of alternatives can impact Ethereum’s market dominance and, subsequently, its price.
MEXC: A Catalyst in Ethereum’s Price Landscape
Enter MEXC, a cryptocurrency exchange that has carved a significant niche in the trading space. MEXC’s impact on Ethereum price dynamics cannot be overlooked. Here’s how MEXC influences Ethereum’s journey:
- Liquidity Infusion: MEXC contributes to Ethereum’s stability by injecting liquidity into the market. Higher liquidity levels minimize the potential for market manipulation and enhance the accuracy of price valuations.
- Trading Volume Reflection: Ethereum’s trading volume on MEXC serves as a mirror to its demand. Increasing trading activity often correlates with price surges, while low volume may indicate impending stagnation.
- Unveiling Price Discovery: MEXC plays a pivotal role in price discovery. Traders and investors worldwide converge on the platform, collectively shaping the price that embodies global sentiment.
- Insights into Market Trends: Through comprehensive trading data, order book analysis, and real-time price charts, MEXC offers valuable insights into market trends. These insights empower traders and investors to make informed decisions.
Navigating Ethereum’s Price Volatility with MEXC
Ethereum’s price volatility can be a double-edged sword, presenting both opportunities and risks. MEXC, however, equips traders and investors with a range of tools to navigate these waters. In the dynamic realm of cryptocurrency, where Ethereum’s price chart resembles a tumultuous voyage, MEXC emerges as an invaluable navigator. Armed with a versatile toolkit, MEXC offers traders a strategic advantage in taming Ethereum’s wild price swings. Whether through spot, margin, or futures trading, MEXC equips traders with tailored options to match their risk tolerance and objectives. Moreover, with risk management tools like stop-loss and take-profit orders, MEXC empowers traders to shield against losses and secure profits amidst Ethereum’s volatility. Guided by a commitment to education, MEXC’s informative resources and webinars ensure traders are well-informed, providing them with the compass to navigate Ethereum’s turbulent seas with confidence and finesse:
- Versatile Trading Mechanisms: MEXC provides a diverse range of trading options, including spot, margin, and futures trading. This versatility allows traders to tailor strategies according to the prevailing market conditions.
- Risk Management Arsenal: MEXC’s risk management tools, such as stop-loss and take-profit orders, act as protective shields against potential losses and aid in securing profits.
- Knowledge as a Compass: MEXC’s educational resources, spanning insightful articles, tutorials, and interactive webinars, serve as a compass guiding users through the complex Ethereum landscape.
Conclusion: Ethereum’s Unstoppable Odyssey
Ethereum’s journey through the tumultuous waters of price fluctuations epitomizes the dynamic nature of the cryptocurrency domain. Beyond mere financial gains, Ethereum represents a technological movement that empowers individuals, disrupts industries, and reimagines finance. Amidst this journey, MEXC emerges as a lighthouse, illuminating the way with liquidity, insights, and innovative trading tools. Whether you’re a seasoned trader seeking opportunities or a curious investor navigating uncharted waters, the synergy between Ethereum’s journey and MEXC’s role can pave the way for a successful and informed voyage through the world of cryptocurrencies.
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]]>The post Unleashing the Potential of Smart Contract Developers: Driving Innovation on the Blockchain appeared first on Tok&Aero.
]]>Smart contract developers are the architects of trust, meticulously crafting code that defines the rules, conditions, and actions of digital agreements. Their deep understanding of blockchain protocols, programming languages, and security principles enables them to design robust and efficient smart contracts that automate processes, eliminate intermediaries, and enhance transparency.
To truly appreciate the significance of smart contract developers, let’s delve into their invaluable contributions and explore the qualities that make them the backbone of blockchain innovation.
Technical Expertise:
Smart contract developers possess a profound understanding of blockchain technology, including its underlying principles and architecture. They are well-versed in programming languages such as Solidity, which is widely used for developing smart contracts on Ethereum. With a solid foundation in cryptography, data structures, and algorithms, they navigate complex challenges and create secure and efficient smart contract solutions.
Innovative Mindset:
Successful smart contract developers exhibit an innovative mindset, constantly seeking ways to optimize and enhance their code. They stay updated with the latest advancements in blockchain technology and explore new techniques to improve the performance and functionality of smart contracts. Their ability to think outside the box and propose novel solutions enables them to tackle complex use cases and pave the way for groundbreaking applications.
Attention to Detail:
The devil is in the details when it comes to smart contract development. Smart contract developers are meticulous in their approach, paying close attention to every line of code to ensure accuracy, security, and reliability. They thoroughly test their contracts, conduct code reviews, and implement best practices to identify and mitigate potential vulnerabilities. This meticulousness ensures that the smart contracts they create are robust, resilient, and resistant to potential attacks.
Collaborative Nature:
Smart contract developers understand the collaborative nature of blockchain projects. They work closely with stakeholders, including project managers, legal experts, and business analysts, to gather requirements, define contract logic, and ensure alignment with business objectives. Effective communication and teamwork are essential to deliver successful smart contract solutions that meet the needs of the organization and its stakeholders.
Continuous Learning:
The field of blockchain technology is dynamic and rapidly evolving. Smart contract developers recognize the importance of continuous learning to stay ahead of the curve. They actively engage in self-education, participate in blockchain communities, and explore new tools and frameworks to expand their skill set. By staying abreast of industry trends and advancements, they are able to leverage the latest technologies and methodologies in their smart contract development process.
Industry Expertise:
Smart contract developers possess domain-specific knowledge and expertise in various industries. They understand the specific requirements, regulations, and use cases within sectors such as finance, supply chain, healthcare, and more. This industry expertise allows them to design smart contracts that align with the unique needs and compliance standards of each sector, unlocking the full potential of blockchain technology.
In conclusion, smart contract developers are the driving force behind the successful implementation of smart contracts on the blockchain. Their technical expertise, innovative mindset, attention to detail, collaborative nature, continuous learning, and industry expertise collectively contribute to the advancement and adoption of blockchain technology. By harnessing their skills, organizations can unlock new possibilities, streamline processes, and create trust in a decentralized digital ecosystem.
As blockchain technology continues to evolve and disrupt traditional industries, the role of smart contract developers will remain pivotal. Their ability to translate complex requirements into functional code, navigate challenges, and deliver secure and efficient smart contracts will continue to shape the future of decentralized applications and revolutionize the way we transact and interact in the digital world.
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]]>The post How to Choose the Right Cryptocurrency Exchange appeared first on Tok&Aero.
]]>Security
Security is the most important factor to keep in mind when choosing an exchange. It’s important to make sure the platform is reliable and secure so you don’t risk losing your funds. Look for an exchange with two-factor authentication, cold storage for digital assets, and a secure encryption system.
Liquidity
Liquidity is a key factor to consider when selecting an exchange. Liquidity refers to the number of buyers and sellers on the platform, and it’s important to find an exchange that has high liquidity to ensure fast and efficient transactions.
Fees
It’s essential to compare the fees of different exchanges to find the right one for you. Some exchanges may have higher fees than others, so make sure to look at the fees before you commit to a platform.
Regulation
When choosing an exchange, make sure to look into the regulatory landscape of the platform. Exchange regulations can vary, so it’s important to make sure you’re comfortable with the regulations in place.
Customer Support
Customer support is another important factor to consider when choosing an exchange. Look for an exchange with a reliable customer service team that is available to help you with any issues you may have.
Variety
Finally, it’s important to make sure the exchange offers the variety of digital assets you’re looking for. Many exchanges will only offer a small selection of cryptocurrencies, so make sure to find one that offers the digital assets you need.
The most secure cryptocurrency exchanges
Mexc Global Cryptocurrency Exchange
Mexc Global is a cryptocurrency exchange that provides a secure trading platform for users to trade digital assets. It was established in 2020, and is based in Hong Kong. Mexc Global is a global company with operations in Europe, North America, and Asia.
The exchange offers a range of services that allow users to buy, sell, and exchange crypto assets. Mexc Global was founded in 2020 as a cryptocurrency exchange. It was founded by a group of experienced traders and investors, who were looking to provide an easy and efficient way to purchase and trade digital assets. Since its launch, the company has grown significantly, and now operates in over 50 countries around the world.
Mexc has also partnered with major banks and financial institutions, to provide a secure and reliable platform for users to trade digital assets. Mexc Global has a range of advantages for users. It offers low fees, fast trade execution, and secure trading environment.
Additionally, the exchange has a range of features that make it easy for users to buy, sell, and exchange digital assets. On the downside, the exchange does not offer support for fiat currencies, and it is not available in all countries. Global offers a wide range of trading pairs, including Bitcoin, Ethereum, Litecoin, USDT, and many more. The exchange also offers a range of tools and features that make it easy for users to trade digital assets. Mexc Global offers competitive fees, with no hidden fees or commissions. The exchange charges a flat trading fee of 0.2% on all trades. Additionally, the exchange does not charge any deposit or withdrawal fees. Mexc Global is committed to providing users with a secure trading environment. The exchange uses advanced encryption and multi-signature security protocols to protect users’ funds. Additionally, the exchange also uses a two-factor authentication process to ensure that only authorized users are able to access the platform.
Binance
Binance is one of the world’s leading cryptocurrency exchanges. It was founded in 2017 in China by Changpeng Zhao and Yi He. Binance is a crypto-to-crypto exchange, meaning that it does not accept deposits of fiat currencies. It offers more than 500 trading pairs and supports more than 150 tokens. Binance offers its users a variety of features, such as a low trading fee of 0.1%, a user-friendly interface, and a secure trading environment. Binance also offers a wide range of security features, such as two-factor authentication, cold storage, and a secure SSL connection. Binance trades more than a billion dollars worth of cryptocurrencies every day and is one of the most liquid exchanges.
Huobi
Huobi is one of the world’s largest cryptocurrency exchanges. Founded in 2013 in China, Huobi offers more than 500 trading pairs and supports more than 150 tokens. It offers a variety of features, including low trading fees, a simple and user-friendly interface, and a secure trading environment. Huobi is known for its secure storage system, which is composed of cold storage and hot wallets. It also offers two-factor authentication and secure SSL connection. Huobi has a wide range of liquidity and is one of the most liquid exchanges.
Coinbase
Coinbase is one of the most popular and well-known cryptocurrency exchanges in the world. Founded in 2012, Coinbase is a digital currency wallet and platform where merchants and consumers can transact with new digital currencies like Bitcoin, Ethereum, and Litecoin. Coinbase allows its users to buy, sell, and store digital currency in a secure environment. It also offers a range of features, such as a user-friendly interface, low fees, and a secure trading platform. Coinbase also has a wide range of liquidity and is one of the most popular exchanges.
Kraken
Kraken is one of the oldest and most established cryptocurrency exchanges. Founded in 2011, Kraken offers more than 50 trading pairs and supports more than 20 tokens. It is one of the most secure exchanges, offering a wide range of security features, such as two-factor authentication, secure SSL connection, and a secure storage system. Kraken also offers a wide range of liquidity and is one of the most liquid exchanges. It has low trading fees and is available in most countries.
Conclusion
When selecting a cryptocurrency exchange, it’s important to consider a few key factors. Be sure to look for an exchange with robust security, high liquidity, low fees, reliable customer support, and a variety of digital assets. By doing your research, you can find the right exchange for you.
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]]>The post Bitcoin will not become the native medium for international payments appeared first on Tok&Aero.
]]>Bitcoin will not become the native medium for international payments
Many crypto-activists predict a great future for bitcoin. However, let’s be realistic, the first cryptocurrency has little chance to take a worthy role in international trade. There are a number of good reasons for this at once, which are almost impossible to overcome with bitcoin’s construction model. Let’s look at the main ones without reference to regulatory and political reasons, taking into account only the internal structure. To be fair, bitcoin also has many advantages, which we will touch on at the end of the article in the conclusion.
Oddly enough, all of the reasons we have discussed, perhaps except for one, are the main advantages of bitcoin, but they are what will keep the first cryptocurrency from taking its place in international trade.
Limited issuance.
In 2020, which was, to say the least, not the most active year in international trade, exports of goods from 125 countries alone reached nearly $17 trillion. At the same time, bitcoin’s total capitalization rarely exceeded one trillion in dollar terms. Thus, even if the price of the first cryptocurrency does reach $200,000 per coin in the near future, it will be only a fifth of the world’s trade.
Simply put, the limited issuance that the deflationary model provides will be one of the main stoppers of bitcoin’s acceptance as an international means of payment.
High volatility and low liquidity
These reasons are derived from the previous one. Now we are not talking about the current market situation, but only about the potential future.
To understand this, let us consider a model of a hypothetical company. For example, a mining company sells resources on the world market. It has its own expenses – wages, taxes, rent payments, and more. Of course, some of it can also be converted into bitcoins, but for many, it will still have to sell the resulting cryptocurrency in the free market, which means that there will be spikes in supply and demand, which will move quotes in one direction or another. This means that it will be hard to build an effective business model and forecast financial flows.
Of course, we can assume that buyers and sellers compensate each other, but as history has shown, demand is cyclical, so the cryptocurrency market will be cyclical too.
Low degree of anonymity
“Money loves silence.” That’s a common saying in business. The high transparency of the blockchain will bring the level of commercial espionage to a new, qualitative level.
Having access to the payment turnover of companies, it is easy enough to figure out the counterparties of each company. If for an individual it is not a big problem, moreover, there are many ways to increase their anonymity, then for large companies these approaches are of little use.
Thus, once you know the counterparties of a supplier, it will be easy to “take away” a share of the market, for example, price dumping. In some industries, a couple of months is enough to use this method to win orders for yourself, especially in relatively monopolistic industries.
Of course not everyone will agree with these arguments, but you have to understand that changing the existing financial system in the world requires a shock which would surpass the consequences of World War II. Although we can already see some reorganization of financial systems, it is only for some sectors and it will take decades for fundamental changes to occur.
Bitcoin has a lot of advantages, which have already allowed it to take a worthy economic role. Although the first cryptocurrency has yet to reach its full potential, it has already proven itself as a means of accumulating capital and moving value.
We intentionally do not consider the use of various quasibitcoins, i.e. derivatives, including exchange-traded instruments. It should also be taken into account that the world of cryptocurrencies is not limited to bitcoin, and other coins still have a chance to become a native means of international trade, but here it is necessary to adopt the technology by business and society as a whole.
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]]>Altcoin season - why bitcoin is losing ground
Bitcoin’s share of both total cryptocurrency capitalization and transfers has tended to decrease recently. At first, there was a more active inflow to the second most capitalized Ethereum, which for a certain period was even able to take a fifth of the market, however, it also failed to hold the bar. Let’s examine why investors and traders prefer promising alternatives to market leaders.
Technical Reasons
Speaking of technical reasons, we should first of all mention a rise in the cost of transactions. It is especially visible during the movement of a small amount of value.
For example, if just a couple of years ago, $1,000 could be sent for a few tens of cents, and a little earlier, for free, now one transfer, regardless of the amount, can cost several tens of dollars.
Also, we should not forget about the floating nature of the commission in the first cryptocurrency. Thus, sometimes you have to pay more if the transaction has to go through as quickly as possible. All this makes bitcoin, and more recently Ethereum, less convenient tools to pay and move value.
The high transparency of the blockchain of the first cryptocurrency also discourages some investors who want to leave their capitals in silence. The low degree of privacy is especially evident in light of recent revelations by law enforcement agencies of a number of pyramid schemes and fraudulent companies. In the same way it is possible to track the investments of honest investors, which, in the context of the discussion of cryptocurrencies, will not please everyone.
Investment component
Here, there is an increase in the use of cryptocurrencies as a means of long-term investment. Investors increasingly see bitcoin as a way to preserve capital and as a means of hedging inflation risks.
We should not forget about the reputation of the leaders of the cryptocurrency market as non-polluting products. Not every investor is ready to take responsibility for maintaining an industry that worsens the state of nature.
Here we can also note another reason for choosing other coins to invest in – an expensive entry threshold to bitcoin. Not every investor is willing to invest a large amount in cryptocurrencies at once, preferring to diversify their portfolio, while not everyone is willing to entrust their coins to exchanges for safekeeping, preferring cold ways. Therefore, small investors choose alternative coins with high reliability.
Little room for trading
Based on the above, another problem, as strange as it may sound, is the lack of volatility of bitcoin. Although you can see quite strong jumps in one direction or another, but they occur less and less often. Traders accustomed to strong jumps have to look for new tools. For several years of the active existence of the cryptocurrency market, speculators have already developed certain strategies, which can be not only long, but also expensive to rebuild.
Also, it should not be forgotten that as the field of digital assets develops, it offers all new tools that not only have some technical innovations, but can also offer a special philosophical nature of the coin.
Thus, we can conclude that the leaders in capitalization are increasingly moving into the category of tools for the accumulation and preservation of capital. Alternative coins are increasingly coming to the forefront. Stablecoins, which are increasingly used in business, are not the last place. If we talk about classic cryptocurrencies, Litecoin and Dash can be singled out as having confirmed their viability. However, meme coins also found their niche, turning from industry community cryptocurrencies into quite a full-fledged financial instrument.
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]]>The post What is bitcoin halving? appeared first on Tok&Aero.
]]>What is bitcoin halving?
The available supply of conventional currencies rises and falls under the watchful eye of national central banks, but bitcoin’s overall supply is fixed and unchanging.
One of the most important features of bitcoin is the mechanism of limited supply and issuance. There are a total of 21 million bitcoins in the world, with just under 2 million left to create. Bitcoin’s protocol automatically reduces the number of new coins issued with each new block, in a process called halving or shrinking.
What is bitcoin halving?
Bitcoin halving is when the reward for mining bitcoin is halved. Halving occurs every four years.
The policy of halving was built into the bitcoin mining algorithm to counter inflation by maintaining a deficit. In theory, lower bitcoin issuance rates mean that the price will rise if demand stays the same.
Right now, bitcoin inflation is less than 2%, and it will decline with further reductions. That looks pretty good compared to the 9.1% annualized inflation in the June Consumer Price Index (CPI).
Bitcoin’s mining deficit determines its finiteness, and when rewards fall, supply is constrained. Increased demand at a time when supply is limited positively affects the price, which can make bitcoin attractive to investors.
How does Bitcoin Halving work?
A decentralized network of validators validates all bitcoin transactions in a process called mining. They are paid 6.25 BTC, which is currently about $148,000, when they are the first to use complex mathematical calculations to add a group of transactions to the bitcoin blockchain as part of the proof-of-work mechanism.
These transaction blocks are added about every 10 minutes, and, according to the bitcoin code, miners’ remuneration is cut in half after every 210,000 blocks are created. This happens about once every four years during periods that are often accompanied by increased volatility in BTC prices.
When did the first bitcoin halving occur?
The first bitcoin halving occurred in November 2012. The next price drop was in July 2016, and the last one was in May 2020.
The reward, or subsidy, for mining started at 50 BTC per block when Bitcoin was released in 2009. With each new halving, that amount is halved. For example, after the first halving, the bitcoin mining fee dropped to 25 BTC per block.
Chronology of bitcoin halving:
2009 Mining remuneration is 50 BTC per block.
2012 First halving. Remuneration decreases to 25 BTC.
2016 Second halving. Remuneration is reduced to 12.5 BTC.
2020 The third cut by half. The reward is reduced to 6.25 BTC.
2140 Here comes the 64th and last Halving.
There will be a total of 64 revaluations, the last of which will take place in 2140. At that point, there will be 21 million BTC in circulation and no more coins will be created. After that, miners will only be paid transaction fees.
Richard Baker, CEO of TAAL Distributed Information Technologies, a provider of mining and blockchain services, notes that miners may move transaction processing capacity from BTC after the next halving, as they will seek additional transaction fees elsewhere to make up for lost bitcoin revenue. Fewer miners will mean less network security.
If economic theory is correct, and historically for bitcoin it is, then bitcoin prices should rise sharply in response to supply demand. Although there is still debate as to whether the historical price movement around each halving was a direct result of halving. Higher prices will be an incentive for miners to keep processing bitcoin transactions.
When will the next bitcoin halving occur?
According to Bitcoin’s algorithm, halving occurs after a certain number of blocks are created. No one knows exactly when the next halving will happen, but experts give an estimated date of May 2024. That will be almost exactly four years after the previous one.
The somewhat predictable nature of bitcoin’s halving was designed to ensure that it wouldn’t be a major shock to the network, experts say. But that doesn’t mean there won’t be a stir around the next bitcoin decline. Historically, bitcoin price volatility has been seen before and after the halving. However, a few months afterwards, the bitcoin price tends to increase significantly.
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]]>The post About Bitcoin censorship appeared first on Tok&Aero.
]]>About Bitcoin censorship
Most people who are only superficially familiar with cryptocurrencies think that Bitcoin is a completely independent network that no one can control. But that is only partly true. A new mining pool, Blockseer, has announced that it is going to censor Bitcoin blockchain transactions, preventing transfers from wallets on blacklists of banned addresses. The pool takes these lists from the U.S. Office of Foreign Assets Control, which is not surprising since the pool is owned by a U.S. company. For example, the list already includes some North Korean addresses. In order to connect to the pool, miners are required to go through the KYC procedure. This all sets a dangerous precedent – if one pool can censor Bitcoin, why not make everyone else do it too?
But that’s not really the only option for censorship, and there are so many ways to make the Bitcoin network difficult to operate. Let’s look at all of them.
1. basic internet protocol layer. Like almost everything on the Internet, Bitcoin runs on a standard TCP/IP protocol. States can censor it through Internet service providers if they so desire.
2. Consensus dominance. Despite Bitcoin’s tremendous success in decentralization, and the enormous amount of resources miners have devoted to keeping the network running, the ability of states is still incomparably greater. They can use as much computing power as they need, because states can print money and buy equipment with it, but regular miners cannot. In addition, big corporations like Amazon and Microsoft with their cloud computing could also get Bitcoin under their control.
3. legal ban. Everyone remembers the effect that China’s 2017 Bitcoin ban had. But China’s example, fortunately, has not been followed. Banning any Bitcoin exchange and circulation is easy – and none of the owners of public crypto exchanges want to get in trouble with the law.
4. Global surveillance. Something like this is already happening. As we all remember, the Bitcoin network, though anonymous, is public. If an address is “exposed” once in any transaction and it is linked to some person, it is possible to analyze and understand where he was sending and receiving funds to that address.
Fortunately, this is all just theory. In practice, Bitcoin has already gained too much weight to try to censor or ban it. It has many supporters, and anyone who tries to destroy the network will encounter opposition from at least a large number of institutions that have invested in cryptocurrencies.
Why censoring Bitcoin makes no sense
Bitcoin has made its way into financial industries around the world. Still remaining an exotic instrument, it finds its way into the portfolios of a large number of retail investors, highnecks and funds. What happens if Bitcoin gets banned?
It would mean that a huge number of people, including influential people, would lose money. Everyone who has developed software or financial instruments based on Bitcoin, such as the global exchange operator ICE, which developed the Bakkt platform, or PayPal, which integrates Bitcoin payments into its service, or all the miners on the Chinese and US stock exchanges, will suffer. The industry would be destroyed. Of course, this will not be allowed to happen, because every commercial field has its own lobbyists who will not let such a scenario happen.
Now let’s look at the other option. Blocking access to the Bitcoin network at the Internet protocol level. Bitcoin uses the standard TCP/IP protocol, usually nodes connect with each other on port 8333. As a theoretical solution to the problem of blocking Bitcoin, ISPs could simply block certain ports on all their users. Of course, this would require very much coordination between states and ISPs, and would not solve the problem. Despite the fight against the darknet, it still exists and anyone can get into it using specialized software like Tor. Bitcoin can exist in the same way. In addition, there are now solutions like satellite servers to make Bitcoin work without the internet, like Blockstream Satellite. But in any case, such measures are unlikely to be necessary, since even China, which controls everything, is not trying to ban Bitcoin completely.
Another option is for governments or corporations to control the network through resource dominance among miners. This problem is solved very simply – a fork and a switch to another chain plus a change in the mining algorithm. So far, no one has been able to control Bitcoin. And most likely, no one will be able to control it.
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]]>Cryptocurrency Bitcoin. Creation history, working principle, main features
The bitcoin network itself is a peer-to-peer payment system, which is settled using the monetary unit of the same name. The functioning and protection is ensured by advanced cryptography methods, but all information about transfers and wallet balances is available and publicly accessible. The minimum unit of account in the network is Satoshi, which is named after its creator and is 10-8 bitcoin.
The main feature of bitcoin is irreversibility of operations and transactions without intermediaries. This implies irreversibility in the full sense of the word. You cannot reverse a payment to an incorrect or even non-existent address, you cannot dispute a transfer from a compromised address, and in all other cases. However, this also has its own advantage. For example, no one can block or seize bitcoins, even temporarily, and only the one who owns a private key to the wallet can spend or use them for other purposes.
It is fair to say, though, that some semblance of reversible transactions does exist. The first implementation is multisignature transactions, where a third party acts as an arbitrator and without his signature you can’t get money from either party. The second is smart contracts, however, they do not have all the Turing completeness and do not compare with the later implementation in Ethereum, for example.
When it comes to the use of bitcoin, it can be exchanged for goods or services from anyone willing to accept the cryptocurrency as payment. It is also possible to make a direct exchange for cash through a specialized system, either directly between participants on an exchange or through over-the-counter arrangements. In this case, the price of bitcoin is directly dependent on the balance of supply and demand, and no one has the right to oblige the seller to accept it as payment.
Transaction fees for bitcoin transactions are assigned by the user and are not mandatory. However, if there is no fee or the fee is too small, the transaction may take an unacceptably long time to process. Currently, most clients automatically recommend a fee depending on network congestion and desired processing time. Also, most software clients do not currently offer zero fees.
The history of bitcoin’s emergence
When it comes to the emergence of bitcoin, a series of events followed:
1983 – David Chaum and Stephan Brands propose the first electronic cash protocol,
1997 – Adam Beck proposes the concept of Hashcash to prevent spam and DoS attacks,
1998 Wei Dai and Nick Szabo independently propose the idea of b-money and bit-gold cryptocurrencies,
In the same year Hal Finney (who is the second member of the bitcoin network) realizes the hash block chain for HashCash.
And only in 2008 Satoshi Nakamoto, whose pseudonym is a person or a whole group of people, publishes a file with the detailed description of the peer-to-peer payment network working principles. The development itself was finished in the beginning of 2009 and the source code of the client-program was also published at the same time. The first bitcoin block was received on the 3rd of January, 2009. The first transaction in the network occurred on January 12, 2009, when Satoshi Nakamoto transferred 10 bitcoins to Hal Finney.
If we talk about the first interaction of the cryptocurrency with the real world, the time can be considered September 2009, when Marty Malmy sold 5050 bitcoins for $5.02 to a certain NewLibertyStandard. The latter also offered to use electricity, or more precisely its cost, to form the price of the first cryptocurrency. And the first use of bitcoin as a means of payment can be attributed to May 22, when Laszlo Hanech exchanged his 10,000 coins of the first cryptocurrency for two pizzas with home delivery. Although, to be fair, it is worth noting that this was not a pure sale of goods for bitcoins, but still an exchange through an intermediary who paid for two pizzas, receiving bitcoins for it. But it was May 22 that became a holiday and was named Bitcoin Pizza Day.
What Bitcoin is.
The problem of transferring money by remote sale has been around for thousands of years. In the early days of international trade, there was a need to transport “money”, which were mostly precious metals and stones, and the seller had a problem with the authenticity of the payment, and the buyer with confirmation of receipt of payment.
Over time, networks of intermediaries emerged, trusted by both sides of the trade. They no longer had the need to constantly move money; it was enough to use their own stock of money. Also with the use of intermediary services, it was possible to freeze money until goods were received, or to cancel payment if the terms of the contract were violated. From such intermediaries, modern banks gradually emerged, also absorbing the functions of market changers and usurers.
In the age of computer technology, it gradually became possible to abandon the physical form of money not only in cross-border settlements, but also in ordinary retail trade. However, the use of banks as intermediaries has a significant disadvantage – it is a low degree of confidentiality. If in the case of the state and regulatory bodies the problem is not so acute, yet the social contract involves not only rights, but also obligations, in particular the payment of taxes, but the receipt by commercial organizations of personal data, including information on purchases, for marketing purposes for analysis, already carries huge risks of personal freedom for everyone.
To solve the above-mentioned problems, there were repeated attempts to develop a system of remote payments, where the role of the intermediary would be minimized. However, such systems of electronic payments proved to be unviable due to reliability and security problems. Because of peculiarities of computer technologies when the same information can be copied exactly to the bit, all remote payment solutions allowed, under certain circumstances, to pay with the same coin several times. That is why any such system requires a trusted intermediary who will provide confirmation of payment and the availability of funds in the payer’s account.
Knowing this, we can understand that bitcoin is a means of payment, which can provide trust of transaction participants in those situations, when this trust can not be obtained in an objective way. Also, the first cryptocurrency solved another problem of payment systems – the absence of the need to use secure communication channels to transmit payment information. Thus, bitcoin became the means that allowed to transfer the right of ownership of an asset directly, without intermediaries, through the usual channels of communication, which were the World Wide Web.
How Bitcoin Works
Bitcoin is essentially a registry of records, stored as a distributed ledger called blockchain. Although blockchain stores information in the public domain, there is no record of the actual owner of a particular address. Also, as opposed to banking and classic payment systems, information about a wallet’s balance is not recorded, but is computed each time the distributed ledger is accessed. Simply put, if the bank database has a cell with data about available funds, then bitcoin goes through the chain, where, for example, there is information that a particular address received 5 bitcoins in two transactions, but spent only two, will reflect in the client program available balance of three coins.
The main components of bitcoin usage, however, are keys, private and public. We discussed this implementation in more detail in our articles about cryptography here and here. In simple words about bitcoin we can say that generating a wallet access key, user automatically gets address where payments will be made. At the same time, there is no need to have access to the Internet, the program can generate a pair and offline, which makes it possible to organize the safe storage of cryptocurrency.
To send funds from one address to another, all you need to do is initiate the transfer in the client program and sign it with your private key. After sending to the network, the miners involved in keeping the bitcoin network operational will include information about the transaction in a distributed registry, and the transfer can be considered complete. You can read more about blockchain implementation in cryptocurrency in this article.
Although bitcoin was a breakthrough in the world of digital finance, it was followed by many other cryptocurrencies. Some just copied the source code and blockchain when they saw the coin developing in a different direction than most. Others developed a completely new model, giving users new features or increased privacy. Either way, it was bitcoin that launched a new milestone in the world of digital money, and understanding what it is will be useful if you want to use a reliable means of savings or payment.
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