2/17/2023 - Technology and Innovation

Cryptotones: keys to becoming a space in the industry

By Marcos Amselem

Imagen de portada
Imagen de portada
Imagen de portada

Why this article will change your life

You have certainly heard of the boom that generated the cryptocurrencies industry worldwide. You may have heard of them by friends, family, or even in your professional life.

At the end of 2020 in early 2021 it was when the industry achieved its largest expansion in the history of decentralized markets. This happened largely due to the entry of major entrepreneurs like Elon Musk, who decided to invest $1,500 million in Bitcoin, or Chris Larsen who invested $7,700 million in the industry to accelerate the growth of his own company called Ripple Labs.

The entry of big entrepreneurs, the rise of Bitcoin and the creation of the NFTs concept were the main boosters that led to the industry at its highest level just a year and a half ago.

In this article you will find all the basic concepts near the cryptocurrencies and know which are your best options to generate extra monthly profitability through the Web3.0 industry.

What are cryptocurrencies:

You’ve probably seen you ever in a conversation where your friends and family are talking about cryptocurrencies and new technologies, and you have sense that you couldn’t provide information because you don’t know the concepts that involve this industry in depth. If that's the case, don't worry. Here you will find the basic concepts that you should know about the cryptocurrencies:

A cryptocurrency It is adigital activethat employs a cryptographic encryption to secure your property and ensure the integrity of transactions, and control the creation of additional units, i.e. prevent someone from making copies as we would, for example, with a photo.

blockchain technology is A way to manage information more securely because all information near transactions is managed in the form of blocks to create a system more secure than any centralized buying/sale method. For the creation of new blocks in each chain there are two possible methods. One is Proof-Of-Work, which is a way to add new transaction blocks to the block chain of a cryptocurrency. The work, in this case, is to generate a “hash” (a long string) that corresponds to the target “hash” for the current block. The cryptominero that does this gains the right to add this block to a specific blockchain and receive rewards. The other method is Proof-Of-Stake, where key stakeholders in Tokens have the option to review and validate transactions and add them to the block chain. This consensus protocol is used to manage digital assets and avoid the double expense or counterfeiting of tokens, which would impair the credibility of a cryptocurrency. The main benefits of Proof-of-stake in relation to Proof-of-Work are that largely reduce pollution in the environment due to the high energy consumption of computers that are used to generate new blocks through the Proof-of-Work method. In addition, the “gas fee” (charge that charges any user of a blockchain for a transaction) is cheaper when using the Proof-Of-Stake method.

NFTs are Works of digital art and other collectibles used as assets single and Checks that are easy to change in blockchain. These digital assets had their rise just over a year ago. The main reason for the growth of the NFTs market was the fact that it is an industry mainly promoted by “hype” these times. All NFTs buyers saw such rapid growth in the demand of these assets from many communities, that users decided to buy to sell at a higher price.

Today, the concept of NFTs evolved over about a year and a half. NFTs can be understood today as a “ticket” to a number of benefits that grants a community. The higher the quality of the benefits, the greater the value of the community. This is because a successful NFTs community is based on retaining users. If you want to resell your NFT, it means that you are not offering a quality product on the part of the community, so community-level success options are smaller.

Decentralized finance More known as DeFI, they are part of a system through which financial products are available in a public blockchain network, and therefore the control of this financial ecosystem does not belong to any entity. This is thanks to blockchain technology that allows you to develop the secure exchange of data between two nodes that perform transactions, as a portfolio that sends cryptodivisas to another user's wallet.

Why should I be part of the cryptocurrency industry:

So far we talked about the theoretical part. It's time to pass the theory to practice. What are the reasons why I will benefit from using blockchain technology?

There are many reasons why integrating blockchain technology into your day to day can benefit you:

  • Transaction safety: Blockchain technology is highly secure due to its distributed design and its use of encryption to protect the information.
  • Transparency: Anyone can verify the information recorded in each block, which gives transparency to transactions.
  • Decentralization: blockchain does not have a central authority that controls its functioning, which guarantees the decentralization of information.
  • Inmutability: Once a block has been added to the chain, its content cannot be changed, ensuring the integrity of the information.
  • Automation: Blockchain technology allows the creation of “Smart Contracts”, which facilitates process automation and cost reduction.
  • Scalability: blockchain allows a large number of simultaneous transactions, which makes it scalable.

What are my options if you want to generate extra profitability through cryptocurrencies:

Today, there are two main options to become a Web3.0 industry space: Be entrepreneur or be investor.

The options for investors are numerous because there are practically a multitude of decentralized financial services in which a money can be invested in exchange for a profitability. One is through investments in a cryptocurrency such as Bitcoin or Ethereum, which can obtain benefits or losses depending on how the market floats. In 2023, more than 15000 cryptocurrencies were recorded. That is, more than 15000 opportunities to succeed in the market.

Another very common way of generating profitability through cryptocurrencies is by purchasing/sale of NFTs. There are thousands of communities that offer numerous benefits. If you want to know what NFTs are that give greater profitability, the key is to detect the quality of the benefits each community offers. Always seeks collections that provide high-quality benefits within the longest possible time, as investing in these communities will be a way to use your own money efficiently when investing.

The existing options for entrepreneurs or creators are as numerous as the options for investors. More and more are people who want to plant their own seed in the Web3.0 industry. Today, despite the temporary difficulties faced by the industry, there are great opportunities with high potential for success. The reason why, at times of lower activity, those who create the newest products are those who will really succeed once the market returns to its highest peak.

However, what is extremely important in this market when creating a new product/service, is not only the passion and absolute knowledge of your product, but also ensure that you are really solving a real problem for the userConsequently, with the high competitiveness rate that exists in the industry, it is necessary to offer a real solution so that the entry of your product into the market is really successful.

https://www.rosario3.com/ecos365/news/Que-es-la-technology-Blockchain-Sus-ventajas-riesgos-y-applications-practices-20230119-0018.html

Do you want to validate this article?

By validating, you are certifying that the published information is correct, helping us fight against misinformation.

Validated by 0 users
marcos amselem

Marcos Amselem

Hello, my name is Marcos Amselem. More than two years ago I decided to specialize in the web 3.0 industry. I am the founder of Metacrew.xyz, a start-up on Web 3.0 that combines a powerful interconnection between different projects, in which it is worth noting: creating play-to-earn video games and creating metaverso. I also work as a consultant and collaborator for several companies specializing in NFTs and tokenization.

Total Views: 2

Comments