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Chapter 2:  Cryptocurrencies

Aave: Crypto Lending Trailblazer

Interesting Fact:
Did you know that one of the stand-out features of Aave are flash loans, which allow users to borrow assets without collateral?
easy
10 minutes

In this section, I’m going to answer the question of “What is Aave crypto?”, and take a look into how does Aave crypto work.

For newcomers, it’s a challenge to talk about the Aave meaning in crypto, when most don’t even know how to pronounce it! But such a minor obstacle should not keep us from learning about how to use Aave crypto, since for those who know, it’s a treasure chest full of new DeFi opportunities and open possibilities.

But, once again, Aave may appear confusing for crypto beginners, simply because it’s not merely a cryptocurrency or a blockchain network. It’s a DeFi protocol that functions as a decentralized crypto lending platform that lets users borrow and lend crypto. And, naturally, understanding this requires having quite a solid base of the crypto fundamentals. Nevertheless, if you’re looking to get Aave explained, you’ve come to the right place!

In this section, we’re going to delve into questions that range from “What is Aave crypto?” to “How to use Aave crypto,” and cover everything in between.

Without wasting any time, let’s jump right into it!

What is Aave Crypto?

So, let’s begin by laying out the foundations. The core question is, naturally - what is Aave crypto?

In dry theory, Aave presents itself as a “decentralized non-custodial liquidity market protocol where users can participate as suppliers or borrowers.” The attractive part about becoming a supplier is the fact that it allows users to earn a passive income. But, such an explanation is overly technical, and half of the words used here need explainer sections of their own! Therefore, let’s get a bit more down to earth.

What is Aave Crypto: decentralized non-custodial liquidity market protocol.

In Finnish, “Aave” means “ghost.” Introduced back in 2017, it’s a groundbreaking DeFi protocol that operates on the Ethereum blockchain. What makes Aave so special is the fact that it transformed the landscape of lending and borrowing in the crypto industry. There was a gap in the market, an opportunity for a promising project to enter the crypto space and offer something new, when it comes to this kind of cryptocurrency-related activities. Aave did just that.

Aave’s core principles are rooted in decentralization, transparency, and accessibility. Through smart contracts, Aave allows users to lend and borrow cryptocurrencies seamlessly, without relying on traditional financial institutions, such as banks. And, even though today that doesn’t sound so revolutionary, this was a game-changing service back then. As of writing, the Aave system enables users to lend or borrow 17 different cryptocurrencies.

Aave protocol's unique features and user-centric approach have made it a prominent player in the DeFi space, driving the adoption of decentralized financial services. Aave was created with a very clear mission – to allow users to lend and borrow different cryptocurrencies and tokens. For example, users can supply assets like stablecoins or tokens, and, eventually, see returns from this investment.

What is Aave Crypto: returns.

These returns vary depending on the asset, blockchain, supply and demand, and the version of Aave that’s being used. As of August 2023, there are three versions: Aave v1, v2, and v3, each with its own upgrades!

Though, crypto lending and borrowing discussions require that the viewer feels confident about such concepts as smart contracts. Therefore, if you feel like your knowledge needs some refreshing, check this section, where I cover this topic in more detail!

Okay, so that was a very brief introduction about what makes Aave more than just yet another cryptocurrency. But, as you might have already noticed, when it comes to understanding how does Aave crypto work, the learning curve is pretty steep. So, let’s begin by dissecting the daunting-looking, yet essential crypto concepts that constitute the Aave project.

What is Crypto Lending & Borrowing?

It’s impossible to answer the question of “What is Aave crypto?” without addressing a more fundamental question of “What is crypto lending?” So, let’s have a quick rundown of the concept.

What is Aave Crypto: crypto lending.

Ever since crypto lending came around in 2020, it has revolutionized the world of DeFi, unlocking new possibilities for both lenders and borrowers. With crypto lending, individuals can now generate passive income while borrowers can access instant cash without facing tax-related unpleasant experiences.

At its core, crypto lending functions similarly to traditional lending, with one party lending cryptocurrency to another in exchange for interest payments. However, there are significant differences that make it stand out.

Unlike traditional banks, crypto loans are facilitated through centralized exchanges or decentralized finance protocols such as AAVE. As you can see, Aave is a reference point when it comes to this crucial DeFi aspect.

What makes crypto lending special is the absence of formal intermediaries that are usually seen as unavoidable with such institutions as banks. Instead, crypto lending relies on smart contracts that automate the entire process, including repayment terms and costs agreed upon in advance. Moreover, crypto lending doesn't require registration with any regulatory authority, offering a borderless lending experience through Web3 wallets.

What is Aave Crypto: crypto borrowing.

Think of it as buying a can of coke from a vending machine, which allows you to skip any interactions with cashiers, or waiting in grocery store lines!

Now, to lend assets on Aave, users need to select the network and version of the Aave that they’re using, as well as choose the asset they want to supply. After confirming the transaction in their in-browser wallet, users can provide the desired amount of the asset.

Borrowing assets follows a similar process but in reverse. Users must supply assets as collateral before being able to borrow. The maximum amount you can borrow depends on the amount you deposit and the "health factor," which represents the safety of your collateral. It's important to keep the health factor above 1 to ensure the safety of your deposit.

But this covers only the surface of what’s possible with Aave. Therefore, let’s dive deeper into what exactly has Aave offered to the crypto lending & borrowing industry.

What Makes Aave Different?

One way to establish your name within the industry is to offer something new. And, introducing several key innovations that have changed the industry, was exactly what Aave did.

First of all, flash loans must be mentioned. Aave popularized the concept of flash loans, which allow users to borrow assets without requiring collateral, as long as the borrowed amount is returned within the same Ethereum transaction.

Flash loans have revolutionized the DeFi ecosystem by enabling arbitrage opportunities and complex financial strategies, expanding the possibilities for developers and traders.

Sounds complicated? Don’t worry, there's a separate section covering crypto arbitrage in this Crypto 101 Handbook, so be sure to check it out!

Okay, back to answering “What is Aave crypto and what makes Aave so special?" As mentioned before, flash loans differ from usual crypto loans because they allow users to borrow crypto without providing collateral. But it’s not that easy. Not anyone can take out a flash loan.

What is Aave Crypto: flash loan.

Flash loans serve as a specialized feature tailored towards developers, leveraging their technical expertise to execute such transactions. With flash loans, individuals have the ability to borrow assets without the need for collateral, provided the liquidity is promptly returned to the protocol within a single block transaction. This requires technical knowledge, which makes the answer to “How to use Aave crypto?” not that simple!

To receive a flash loan, a well-crafted contract is required. This contract acts as the gateway for requesting a flash loan, initiating the series of steps outlined within its code. The crucial aspect lies in the seamless execution of these instructed steps, ensuring that the loan amount, along with the accrued interest and fees, is repaid, all within the confines of a single transaction.

Up next, we’ve got the fact that Aave offered a novel approach to interest rates. In fact, Aave introduced a new interest rate model called "interest rate swaps." This model allows users to choose between stable or variable interest rates for their borrowing positions. Users can switch between different interest rate types based on market conditions and their risk appetite, providing flexibility and control over their borrowing costs.

Such a flexible approach immediately put Aave on the front lines of the crypto borrowing game, since this meant more freedom and individually-tailored opportunities for different DeFi investors. And that’s a strong advantage, taking into account how different most of the DeFi investors and their financial positions are.

Among other novelties, Aave made its name by introducing “undercollateralized loans”, which are also known as credit delegation. This feature allows users to delegate their borrowing power to trusted individuals or institutions, who can then borrow assets without providing the full collateral themselves. It enables creditworthiness assessment and the utilization of credit lines in a decentralized manner, expanding access to borrowing opportunities.

One way to think of it is like lending to a trusted friend or a family member. You know their behavior, whether they could be trusted, and if it makes sense to expect them to pay you back what they owe. If it’s a trusted individual, you’ll be able to lend them some money without collateral. Their reputation speaks for itself.

What is Aave Crypto: aTokens.

Moving further, there’s also “market-based collateralization.” Aave introduced this concept, where users can deposit their assets into the protocol and receive something known as aTokens in return. These aTokens represent the value of the deposited assets and accrue interest in real-time. Enthusiasts can use aTokens as collateral to borrow other assets, allowing them to leverage their existing holdings without needing to sell them.

What’s interesting about aTokens is that their value is pegged to the value of the corresponding deposited asset at a 1:1 ratio. Such a feature allows them to be safely stored, transferred or traded, thus creating more opportunities for the Aave ecosystem to grow and develop. All interest collected by the aTokens is distributed to their holders by continuously increasing their wallet balance.

And finally, something that must be mentioned is the fact that Aave has implemented a governance system that allows Aave token holders to propose and vote on protocol upgrades, improvements, and risk management parameters. Additionally, Aave introduced a Safety Module, where users can deposit Aave tokens to act as insurance against possible protocol risks. This safety mechanism protects the protocol and users from potential losses.

Wrapping Up

So, I’ve taken a look into the overall Aave meaning in crypto, what makes this project so special, and what kind of services does Aave provide. Therefore, now, I'm sure you'll know the answer to the question of “What is Aave crypto?”

As you have probably noticed, Aave is definitely not the most convenient starting point for those who are new in the crypto space. Nevertheless, understanding crypto lending and borrowing is not only key to understanding Aave, but DeFi, as a whole, and being able to see how many hidden layers or opportunities await those who are eager enough to keep on learning and growing.

ALGO coin, and we&rsquo;ll figure out what is Algorand used for!<\/strong><\/p>\n<p>Algorand is not simply a blockchain with ALGO as its native token. There are thousands of cryptocurrencies, but there are only a few legit reasons why some specific projects gain attention, and see their value grow, as a result. And there&rsquo;s a reason why ALGO is, and has persistently stayed, on the list of top cryptocurrencies for years. It&rsquo;s not merely a faceless cryptocurrency, after all.<br>&nbsp;<br>Today, my mission is to get Algorand explained to you. This project has already proved to be among those who stand out from the crowd for their forward-thinking stance, and showing character when it comes to actually making difficult decisions, and sticking with the plan. <strong>Algorand&rsquo;s even been dubbed &ldquo;The Ethereum Killer&rdquo;<\/strong>! You&rsquo;re about to learn why.<\/p>\n<p>In this section, we&rsquo;re going to dive into the Algorand universe and answer the question of &ldquo;What is Algorand crypto?&rdquo;. Then, we&rsquo;ll be able to take a look at the landscape of Algorand projects and see by ourselves what is Algorand used for.<\/p>\n<p><em>Let&rsquo;s get to it!<\/em><\/p>\n<h2>What is Algorand Crypto?<\/h2>\n<p>You couldn&rsquo;t say that Algorand had humble beginnings, since it wasn&rsquo;t founded by some inexperienced crypto enthusiasts. Quite the contrary - <strong>Algorand was founded in 2017 by Silvio Micali, a professor at MIT, and a cryptography pioneer<\/strong>. It was created to carry out a vision, which, according to Algorand themselves, sounds like this: &ldquo;<em>a world where everyone creates and exchanges value efficiently, transparently, and securely.<\/em>&rdquo;<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Algorand crypto: Silvio Micali.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-algorand-crypto-01.jpg/" alt=\"What is Algorand crypto: Silvio Micali.\" width=\"1000\" height=\"579\"><\/p>\n<p>And so, having this vision as their guiding star, Silvio Micali and his team created Algorand. But, whenever Algorand (ALGO) is mentioned, it refers to two things. <strong>It&rsquo;s both a digital currency, and a cutting-edge blockchain platform<\/strong>.<\/p>\n<p>It was designed to <strong>handle a high volume of transactions with remarkable speed<\/strong>, so that the blockchain industry could really begin resembling efficiency levels that people are used to seeing in the world of traditional finance. Algorand had a very precise goal - to actually challenge such leading payment processors like Mastercard or Visa. Understanding this is a great start to begin answering the question of &ldquo;What is Algorand crypto?&rdquo;<\/p>\n<p>One way of rising to prominence and achieving such aims was Algorand's commitment to transparency and collaboration. <strong>It&rsquo;s an open-source blockchain<\/strong>, therefore, as such, the platform invites individuals from all corners of the world to explore its code and contribute their expertise so it could be further improved. This fosters a community-driven ecosystem, and does so fruitfully.<\/p>\n<p>As of today, there are many projects that use Algorand as the construction site for their <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-are-dapps-in-crypto/">decentralized applications (dApps)<\/strong><\/a>. Be it something related to DeFi, NFTs, Music, Gaming, Bridges, Oracles, or anything else, you&rsquo;ll find it in the Algorand land. <strong>The number of these active projects is over 700<\/strong>, and it&rsquo;s constantly growing!<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Algorand crypto: DeFi, gaming, NFTs, bridges, music, and oracles.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-algorand-crypto-02.jpg/" alt=\"What is Algorand crypto: DeFi, gaming, NFTs, bridges, music, and oracles.\" width=\"1000\" height=\"509\"><\/p>\n<p>But there&rsquo;s something else that makes Algorand different from other mainstream blockchain projects. It&rsquo;s the <strong>consensus mechanism<\/strong> that supports the Algorand system, and defines the answer to the question &ldquo;What is Algorand crypto?&rdquo;<\/p>\n<p>As a reminder, a consensus mechanism is like a <strong>set of rules that every network participant agrees to act upon<\/strong>. It&rsquo;s just like the rules of a game, let&rsquo;s say, basketball. There are things that are allowed, and others that are prohibited. But every player agrees upon them before starting a game.<\/p>\n<p><em>To learn more about consensus mechanisms, be sure to check out other chapters in this Crypto 101 Handbook. For example, there's a section that concentrates specifically on <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-proof-of-stake-vs-proof-of-work/">Proof-of-Work and Proof-of-Stake<\/strong><\/a>.<\/em><\/p>\n<p>But when it comes to Algorand, its consensus mechanism is something different. It&rsquo;s known as <strong>Pure Proof-of-Stake, or PPOS<\/strong>. Through this mechanism, the network selects validators from the pool of users to secure and validate transactions.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Algorand crypto: vote.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-algorand-crypto-03.jpg/" alt=\"What is Algorand crypto: vote.\" width=\"1000\" height=\"585\"><\/p>\n<p>PPOS operates in a certain way, so that <strong>the influence wielded by each user in the selection of a new block is directly proportional to their stake<\/strong>, measured by the number of tokens they hold in the system. This unique approach ensures a fair and inclusive process, where users are randomly chosen, while keeping their selection a secret, to propose blocks and participate in voting on block proposals.<\/p>\n<p><strong>Every online user has an equal chance of being selected to propose and vote<\/strong>, with the probability and impact of their participation determined by the extent of their stake.<\/p>\n<p>The usage of PPOS allows users to understand the values on which the Algorand project was built. Unlike other approaches, where a small subset holds the power to dictate security, <strong>Algorand's strength lies in the collective honesty of the majority<\/strong>.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Algorand crypto: Ethereum Killer.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-algorand-crypto-04.jpg/" alt=\"What is Algorand crypto: Ethereum Killer.\" width=\"1000\" height=\"570\"><\/p>\n<p>This dynamic ensures that the system remains secure as long as the majority acts with honesty and good faith. In this model, the security of the whole economy rests on the shoulders of the honest majority, reinforcing the trust and stability of the Algorand ecosystem.<\/p>\n<p>The actions of a minority hold no power to disrupt the network or hinder transactions. Moreover, <strong>those who possess the majority stake have no incentive to misbehave<\/strong>, as doing so would undermine the value and purchasing power of the currency, ultimately devaluing their own assets. Such architectural principles safeguard the integrity of the Algorand system, fostering an environment where users can transact with confidence and trust in the stability of their assets.<\/p>\n<p>As I&rsquo;ve mentioned earlier, Algorand was dubbed as the potential &ldquo;<strong>Ethereum Killer<\/strong>.&rdquo; In order to receive such a label, something truly game-changing has to be offered. And all of the innovations that Algorand has brought to the table were dictated by their goal of solving the infamous blockchain problem, known as the &ldquo;<strong>Blockchain Trilemma<\/strong>.&rdquo; And, as Algorand claims, their innovations and technological advancements have put the project on its way to solving this problem.<\/p>\n<p><em>But before I elaborate on that further, you need to understand what &ldquo;Blockchain Trilemma&rdquo; even is, to begin with.<\/em><\/p>\n<h2>Blockchain Trilemma<\/h2>\n<p>The blockchain trilemma is an intriguing concept that lies at the heart of decentralized technology. And, in order to have Argoland explained, this chapter is crucial.<\/p>\n<p>It refers to the three fundamental properties that blockchain networks strive to achieve: <strong>scalability, security, and decentralization<\/strong>. The catch, however, is that it's immensely challenging to achieve all three of these properties simultaneously. It's akin to a delicate balancing act, where emphasis on one aspect often comes at the expense of the others.<\/p>\n<p><strong>Here&rsquo;s a simple analogy<\/strong>. In life, most people can&rsquo;t have all three of these luxuries at once: time, money, and energy. Young people may have time and energy, yet they aren&rsquo;t financially independent. Adults may make enough money to get by, and enough energy to use it in the ways they prefer, but they must take a day off for that. And finally, the elderly may have enough savings and time to enjoy their lives, but, in this case, the energy is no longer there. <strong>That&rsquo;s a life trilemma<\/strong>. The blockchain trilemma is a similar concept.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Algorand crypto: a life trilemma.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-algorand-crypto-05.jpg/" alt=\"What is Algorand crypto: a life trilemma.\" width=\"1000\" height=\"598\"><\/p>\n<p>Let's dive deeper into the three pillars that constitute it.<\/p>\n<p>First of all, we&rsquo;ve got scalability. <strong>Blockchain scalability refers to the network's ability to handle a high volume of transactions swiftly and efficiently<\/strong>. It's like a busy highway that can accommodate numerous vehicles without congestion. Achieving high scalability ensures that blockchain networks can support mass adoption and widespread usage. However, scaling solutions often involve trade-offs, such as sacrificing decentralization or compromising security.<\/p>\n<p>On that note, <strong>security forms the bedrock of blockchain technology<\/strong>. It ensures that transactions are trustworthy, tamper- and malicious attack-resistant. A secure blockchain inspires confidence and trust among its participants, making it a reliable platform for various applications. However, implementing robust security measures can hinder scalability or require significant computational resources.<\/p>\n<p>Lastly, <strong>decentralization is the essence of blockchain tech<\/strong>, liberating it from centralized authorities and empowering participants with control and autonomy. A decentralized network is like a vibrant ecosystem, where power is distributed among its users. It fosters transparency, censorship resistance, and resilience against single points of failure.&nbsp;Yet, achieving true decentralization can pose challenges, as it may hamper scalability or introduce vulnerabilities.<\/p>\n<p>So, as you can see, the blockchain trilemma is something that no blockchain project can avoid. It&rsquo;s waiting for everyone who dares to venture into this market. The minds behind Algorand knew this. So, they prepared a solution to this problem.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Algorand crypto: pros.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-algorand-crypto-06.jpg/" alt=\"What is Algorand crypto: pros.\" width=\"1000\" height=\"561\"><\/p>\n<p>Their answer to the problem of scalability was the <strong>implementation of the PPOS consensus mechanism<\/strong>.<\/p>\n<p>The answer to the problem of security was ensuring that the <strong>security of the entire project&rsquo;s economy was tied to the integrity of the majority<\/strong>. By aligning the interests of the majority with the network's security, Algorand fostered a robust and resilient ecosystem.<\/p>\n<p>And, what concerns the problem of decentralization, Algorand&rsquo;s <strong>open-source approach ensured transparency and collective participation<\/strong>.<\/p>\n<p>Algorand&rsquo;s outspoken way of approaching this fundamental problem caught the community&rsquo;s attention. Such innovative and daring decisions were the reasons behind the project&rsquo;s success and the blockchain being branded as the potential &ldquo;Ethereum Killer.&rdquo;<\/p>\n<h2>What is ALGO coin?<\/h2>\n<p>By now, the question of &ldquo;What is Algorand crypto?&rdquo; is partially answered. But in order to see the whole picture, it&rsquo;s time to address the other, inseparable part of the Algorand project - <strong>the <a href=https://www.bitdegree.org/"//crypto//buy-algorand-algo/">ALGO coin<\/strong>. In Spanish &ldquo;algo&rdquo; means &ldquo;something.&rdquo; But in crypto&hellip; it means something way more interesting!<\/p>\n<p>At its core, <strong>ALGO serves as the native cryptocurrency of the Algorand blockchain<\/strong>, playing a pivotal role in securing the network and facilitating seamless transactions. It operates as the lifeblood, fueling the vibrant ecosystem that Algorand has constructed.<\/p>\n<p>Tokenomics-wise, ALGO follows a supply model with a total fixed supply of 10 billion tokens. This means that once 10 billion ALGO coins are created, the issuing of new coins will stop forever.<\/p>\n<p><img title=\"What is Algorand crypto: total fixed supply - 10 billion.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-algorand-crypto-07.jpg/" alt=\"What is Algorand crypto: total fixed supply - 10 billion.\" width=\"1000\" height=\"491\"><\/p>\n<p>Up until now, these tokens have been gradually released into circulation through such programs as <strong>participation rewards<\/strong>. Over time, additional ALGO tokens have been released through various other mechanisms, such as <strong>staking rewards and ecosystem growth initiatives<\/strong>.<\/p>\n<p>Now, let's explore the multifaceted role that ALGO plays within the Algorand system. First and foremost, <strong>ALGO serves as a means to pay transaction fees on the network<\/strong>. Whether it's validating transactions, executing <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-are-smart-contracts/">smart contracts<\/strong><\/a>, or engaging with decentralized applications, users rely on ALGO as the medium of exchange, ensuring the smooth functioning of the Algorand ecosystem.<\/p>\n<p>Furthermore, <strong>ALGO plays a crucial role in ensuring the network&rsquo;s security<\/strong>. Token holders can actively contribute to it by staking their ALGO, adding to the security and integrity of the blockchain. By staking their tokens, participants have the opportunity to earn rewards in the form of additional ALGO, incentivizing active engagement and long-term commitment to the Algorand network.<\/p>\n<p>Beyond its utility within the Algorand blockchain, ALGO has garnered recognition and adoption beyond its native environment. It has emerged as a <strong>prominent digital asset within the broader cryptocurrency landscape<\/strong>, finding its place in various exchanges and digital asset platforms. This widespread adoption has further solidified the relevance and versatility of ALGO in the crypto sphere.<\/p>\n<h2>Wrapping Up<\/h2>\n<p>So, having said all of this, I would hope that the questions of &ldquo;What is Algorand crypto?&rdquo; and &ldquo;What is Algorand coin?&rdquo; have been settled. <strong>It&rsquo;s an ambitious project that not only talks the talk, but walks the walk<\/strong>. Actually, committing to solving the notorious blockchain trilemma is not something that every project out there dares to do.<\/p>\n<p>As you can see, after hearing Algorand explained, this knowledge really is an asset in itself. It will allow you to look into what this project and its ecosystem has to offer, maybe even encourage you to embark on exploring and interacting with various Algorand projects on your own.<\/p>","definition":"Did you know that Algorand is one of the few cryptocurrencies dubbed as \"Ethereum Killers\"?","status":"published","meta_title":"What is Algorand Crypto and What is It Used For?","meta_description":"What is Algorand crypto? What is ALGO coin? What is Algorand used for? If these are the answers you seek, you'll find them all right here.","meta_keywords":"what is algorand crypto, algorand explained, what is algo crypto, what is algo coin, what is algorand used for, what is algorand coin, algorand projects","modified_content":"<p>In this section, I&rsquo;m going to answer the question of <strong>&ldquo;What is Algorand crypto?&rdquo;, explain what is <a href=https://www.bitdegree.org/"//crypto//buy-algorand-algo/">ALGO coin, and we&rsquo;ll figure out what is Algorand used for!<\/strong><\/p>\n<p>Algorand is not simply a blockchain with ALGO as its native token. There are thousands of cryptocurrencies, but there are only a few legit reasons why some specific projects gain attention, and see their value grow, as a result. And there&rsquo;s a reason why ALGO is, and has persistently stayed, on the list of top cryptocurrencies for years. It&rsquo;s not merely a faceless cryptocurrency, after all.<br>&nbsp;<br>Today, my mission is to get Algorand explained to you. This project has already proved to be among those who stand out from the crowd for their forward-thinking stance, and showing character when it comes to actually making difficult decisions, and sticking with the plan. <strong>Algorand&rsquo;s even been dubbed &ldquo;The Ethereum Killer&rdquo;<\/strong>! You&rsquo;re about to learn why.<\/p>\n<p>In this section, we&rsquo;re going to dive into the Algorand universe and answer the question of &ldquo;What is Algorand crypto?&rdquo;. Then, we&rsquo;ll be able to take a look at the landscape of Algorand projects and see by ourselves what is Algorand used for.<\/p>\n<p><em>Let&rsquo;s get to it!<\/em><\/p>\n<div class=\"container\">\n <div class=\"row justify-content-center\">\n <div class=\"col-md-10 suggested-comparisons pb-3 mb-4\">\n <div class=\"d-flex flex-row\">\n <div class=\"text-center\">\n <div class=\"img-block-yt\">\n <img src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//assets//images//compare-crypto-exchanges.gif/"/n alt=\"What is Algorand? ALGO Coin Explained With Animations\"\n title=\"What is Algorand? ALGO Coin Explained With Animations\" class=\"border-0\">\n <p>Video Explainer<\/p>\n <\/div>\n <\/div>\n <div class=\"col-xs-10 col-sm-10 col-md-10 text-left py-3 yt-info\">\n <h4 class=\"mb-1\">Video Explainer: Did Algorand Truly Solve the Blockchain Trilemma?<\/h4>\n <p class=\"py-1 mb-0 youtube-video-subtitle\">Reading is not your thing? Watch the \"Did Algorand Truly Solve the Blockchain Trilemma?\" video explainer<\/p>\n <\/div>\n <\/div>\n <div class=\"row justify-content-center text-center\">\n <div class=\"col-12 col-md-11 px-3\">\n <div class=\"wrapper mb-0\">\n <div class=\"position-relative youtube mb-4 bg-transparent p-0 video-modal-popup\" data-toggle=\"modal\"\n data-target=\"#video-modal\" data-id=\"OuO_BIdjEhg\" data-title=\"CryptoFinallyExplained\">\n <div class=\"video-gradient-top\"><\/div>\n <p class=\"text-left dyk-video-title\">What is Algorand? ALGO Coin Explained With Animations<\/p>\n <img data-srcset=\"https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/what-is-algorand-algo-coin-explained-with-animations.jpg?tr=w-420 500w,\n https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/what-is-algorand-algo-coin-explained-with-animations.jpg?tr=w-760 1000w\"\n alt=\"What is Algorand? ALGO Coin Explained With Animations\"\n title=\"What is Algorand? ALGO Coin Explained With Animations\"\n class=\"p-0 lazyload\">\n <img class=\"play-button lazyload\" data-target=\"#video-modal\"\n data-src=\"https:\/\/assets.bitdegree.org\/crypto\/assets\/video-button.png?tr=w-85\"\n alt=\"What is Algorand? ALGO Coin Explained With Animations\">\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <div class=\"row justify-content-center text-center\">\n <div>\n <a href=https://www.bitdegree.org/"https:////www.youtube.com//c//CryptoFinallyExplained?sub_confirmation=1\%22\n class=\"btn yt-promo mb-2\" target=\"_blank\" rel=\"nofollow noopener noindex\">\n <div class=\"row justify-content-center align-items-center mx-0 text-center\">\n <div class=\"col-4 col-md-4\">\n <i class=\"fab fa-youtube yt-dyk-btn\"><\/i>\n <\/div>\n <div class=\"col-8 col-md-8 text-center yt-promo-text\">\n <h4 class=\"m-0 text-white\">SUBSCRIBE<\/h4>\n <span>ON YOUTUBE<\/span>\n <\/div>\n <\/div>\n <\/a>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n<\/div>\n<div class=\"modal fade\" id=\"video-modal\" tabindex=\"-1\" role=\"dialog\">\n <div class=\"modal-dialog modal-dialog-centered modal-lg\" role=\"document\">\n <div class=\"modal-content\">\n <div class=\"modal-body p-0\">\n <button type=\"button\" class=\"video-modal-close close\" data-dismiss=\"modal\" aria-label=\"Close\">\n <i aria-hidden=\"true\" class=\"fas fa-times\"><\/i>\n <\/button>\n <div id=\"iframe\"><\/div>\n <\/div>\n <a class=\"text-decoration-none\"\n href=https://www.bitdegree.org/"https:////www.youtube.com//c//CryptoFinallyExplained?sub_confirmation=1\%22\n rel=\"nofollow noopener noindex\" target=\"_blank\">\n <div class=\"modal-footer p-0 d-block bg-white\">\n <div class=\"row justify-content-center m-0\">\n <div class=\"col-3 col-md-4 col-lg-2 p-0\">\n <img class=\"w-100 h-100\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//assets//crypto-subscribe.jpg/" alt=\"Subscribe\">\n <\/div>\n <div class=\"col-9 col-md-8 col-lg-2 px-0 d-flex\">\n <div class=\"modal-subscribe w-100\">\n <p class=\"m-0 mt-1 mr-3\">SUBSCRIBE<br>\n <span class=\"m-0\">ON YOUTUBE<\/span>\n <\/p>\n <\/div>\n <\/div>\n <div class=\"col-12 col-md-12 col-lg-8 p-0 text-center d-flex justify-content-center align-items-center\">\n <div class=\"modal-subscribe-text\">\n <h4 class=\"m-0\">Understand crypto with ease<\/h4>\n <span>New explainer videos every week!<\/span>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <\/a>\n <\/div>\n <\/div>\n<\/div>\n<h2>What is Algorand Crypto?<\/h2>\n<p>You couldn&rsquo;t say that Algorand had humble beginnings, since it wasn&rsquo;t founded by some inexperienced crypto enthusiasts. Quite the contrary - <strong>Algorand was founded in 2017 by Silvio Micali, a professor at MIT, and a cryptography pioneer<\/strong>. It was created to carry out a vision, which, according to Algorand themselves, sounds like this: &ldquo;<em>a world where everyone creates and exchanges value efficiently, transparently, and securely.<\/em>&rdquo;<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Algorand crypto: Silvio Micali.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-algorand-crypto-01.jpg/" alt=\"What is Algorand crypto: Silvio Micali.\" width=\"1000\" height=\"579\"><\/p>\n<p>And so, having this vision as their guiding star, Silvio Micali and his team created Algorand. But, whenever Algorand (ALGO) is mentioned, it refers to two things. <strong>It&rsquo;s both a digital currency, and a cutting-edge blockchain platform<\/strong>.<\/p>\n<p>It was designed to <strong>handle a high volume of transactions with remarkable speed<\/strong>, so that the blockchain industry could really begin resembling efficiency levels that people are used to seeing in the world of traditional finance. Algorand had a very precise goal - to actually challenge such leading payment processors like Mastercard or Visa. Understanding this is a great start to begin answering the question of &ldquo;What is Algorand crypto?&rdquo;<\/p>\n<p>One way of rising to prominence and achieving such aims was Algorand's commitment to transparency and collaboration. <strong>It&rsquo;s an open-source blockchain<\/strong>, therefore, as such, the platform invites individuals from all corners of the world to explore its code and contribute their expertise so it could be further improved. This fosters a community-driven ecosystem, and does so fruitfully.<\/p>\n<p>As of today, there are many projects that use Algorand as the construction site for their <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-are-dapps-in-crypto/">decentralized applications (dApps)<\/strong><\/a>. Be it something related to DeFi, NFTs, Music, Gaming, Bridges, Oracles, or anything else, you&rsquo;ll find it in the Algorand land. <strong>The number of these active projects is over 700<\/strong>, and it&rsquo;s constantly growing!<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Algorand crypto: DeFi, gaming, NFTs, bridges, music, and oracles.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-algorand-crypto-02.jpg/" alt=\"What is Algorand crypto: DeFi, gaming, NFTs, bridges, music, and oracles.\" width=\"1000\" height=\"509\"><\/p>\n<p>But there&rsquo;s something else that makes Algorand different from other mainstream blockchain projects. It&rsquo;s the <strong>consensus mechanism<\/strong> that supports the Algorand system, and defines the answer to the question &ldquo;What is Algorand crypto?&rdquo;<\/p>\n<p>As a reminder, a consensus mechanism is like a <strong>set of rules that every network participant agrees to act upon<\/strong>. It&rsquo;s just like the rules of a game, let&rsquo;s say, basketball. There are things that are allowed, and others that are prohibited. But every player agrees upon them before starting a game.<\/p>\n<p><em>To learn more about consensus mechanisms, be sure to check out other chapters in this Crypto 101 Handbook. For example, there's a section that concentrates specifically on <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-proof-of-stake-vs-proof-of-work/">Proof-of-Work and Proof-of-Stake<\/strong><\/a>.<\/em><\/p>\n<p>But when it comes to Algorand, its consensus mechanism is something different. It&rsquo;s known as <strong>Pure Proof-of-Stake, or PPOS<\/strong>. Through this mechanism, the network selects validators from the pool of users to secure and validate transactions.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Algorand crypto: vote.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-algorand-crypto-03.jpg/" alt=\"What is Algorand crypto: vote.\" width=\"1000\" height=\"585\"><\/p>\n<p>PPOS operates in a certain way, so that <strong>the influence wielded by each user in the selection of a new block is directly proportional to their stake<\/strong>, measured by the number of tokens they hold in the system. This unique approach ensures a fair and inclusive process, where users are randomly chosen, while keeping their selection a secret, to propose blocks and participate in voting on block proposals.<\/p>\n<p><strong>Every online user has an equal chance of being selected to propose and vote<\/strong>, with the probability and impact of their participation determined by the extent of their stake.<\/p>\n<p>The usage of PPOS allows users to understand the values on which the Algorand project was built. Unlike other approaches, where a small subset holds the power to dictate security, <strong>Algorand's strength lies in the collective honesty of the majority<\/strong>.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Algorand crypto: Ethereum Killer.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-algorand-crypto-04.jpg/" alt=\"What is Algorand crypto: Ethereum Killer.\" width=\"1000\" height=\"570\"><\/p>\n<p>This dynamic ensures that the system remains secure as long as the majority acts with honesty and good faith. In this model, the security of the whole economy rests on the shoulders of the honest majority, reinforcing the trust and stability of the Algorand ecosystem.<\/p>\n<p>The actions of a minority hold no power to disrupt the network or hinder transactions. Moreover, <strong>those who possess the majority stake have no incentive to misbehave<\/strong>, as doing so would undermine the value and purchasing power of the currency, ultimately devaluing their own assets. Such architectural principles safeguard the integrity of the Algorand system, fostering an environment where users can transact with confidence and trust in the stability of their assets.<\/p>\n<p>As I&rsquo;ve mentioned earlier, Algorand was dubbed as the potential &ldquo;<strong>Ethereum Killer<\/strong>.&rdquo; In order to receive such a label, something truly game-changing has to be offered. And all of the innovations that Algorand has brought to the table were dictated by their goal of solving the infamous blockchain problem, known as the &ldquo;<strong>Blockchain Trilemma<\/strong>.&rdquo; And, as Algorand claims, their innovations and technological advancements have put the project on its way to solving this problem.<\/p>\n<p><em>But before I elaborate on that further, you need to understand what &ldquo;Blockchain Trilemma&rdquo; even is, to begin with.<\/em><\/p>\n<h2>Blockchain Trilemma<\/h2>\n<p>The blockchain trilemma is an intriguing concept that lies at the heart of decentralized technology. And, in order to have Argoland explained, this chapter is crucial.<\/p>\n<p>It refers to the three fundamental properties that blockchain networks strive to achieve: <strong>scalability, security, and decentralization<\/strong>. The catch, however, is that it's immensely challenging to achieve all three of these properties simultaneously. It's akin to a delicate balancing act, where emphasis on one aspect often comes at the expense of the others.<\/p>\n<p><strong>Here&rsquo;s a simple analogy<\/strong>. In life, most people can&rsquo;t have all three of these luxuries at once: time, money, and energy. Young people may have time and energy, yet they aren&rsquo;t financially independent. Adults may make enough money to get by, and enough energy to use it in the ways they prefer, but they must take a day off for that. And finally, the elderly may have enough savings and time to enjoy their lives, but, in this case, the energy is no longer there. <strong>That&rsquo;s a life trilemma<\/strong>. The blockchain trilemma is a similar concept.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Algorand crypto: a life trilemma.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-algorand-crypto-05.jpg/" alt=\"What is Algorand crypto: a life trilemma.\" width=\"1000\" height=\"598\"><\/p>\n<p>Let's dive deeper into the three pillars that constitute it.<\/p>\n<p>First of all, we&rsquo;ve got scalability. <strong>Blockchain scalability refers to the network's ability to handle a high volume of transactions swiftly and efficiently<\/strong>. It's like a busy highway that can accommodate numerous vehicles without congestion. Achieving high scalability ensures that blockchain networks can support mass adoption and widespread usage. However, scaling solutions often involve trade-offs, such as sacrificing decentralization or compromising security.<\/p>\n<p>On that note, <strong>security forms the bedrock of blockchain technology<\/strong>. It ensures that transactions are trustworthy, tamper- and malicious attack-resistant. A secure blockchain inspires confidence and trust among its participants, making it a reliable platform for various applications. However, implementing robust security measures can hinder scalability or require significant computational resources.<\/p>\n<p>Lastly, <strong>decentralization is the essence of blockchain tech<\/strong>, liberating it from centralized authorities and empowering participants with control and autonomy. A decentralized network is like a vibrant ecosystem, where power is distributed among its users. It fosters transparency, censorship resistance, and resilience against single points of failure.&nbsp;Yet, achieving true decentralization can pose challenges, as it may hamper scalability or introduce vulnerabilities.<\/p>\n<p>So, as you can see, the blockchain trilemma is something that no blockchain project can avoid. It&rsquo;s waiting for everyone who dares to venture into this market. The minds behind Algorand knew this. So, they prepared a solution to this problem.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Algorand crypto: pros.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-algorand-crypto-06.jpg/" alt=\"What is Algorand crypto: pros.\" width=\"1000\" height=\"561\"><\/p>\n<p>Their answer to the problem of scalability was the <strong>implementation of the PPOS consensus mechanism<\/strong>.<\/p>\n<p>The answer to the problem of security was ensuring that the <strong>security of the entire project&rsquo;s economy was tied to the integrity of the majority<\/strong>. By aligning the interests of the majority with the network's security, Algorand fostered a robust and resilient ecosystem.<\/p>\n<p>And, what concerns the problem of decentralization, Algorand&rsquo;s <strong>open-source approach ensured transparency and collective participation<\/strong>.<\/p>\n<p>Algorand&rsquo;s outspoken way of approaching this fundamental problem caught the community&rsquo;s attention. Such innovative and daring decisions were the reasons behind the project&rsquo;s success and the blockchain being branded as the potential &ldquo;Ethereum Killer.&rdquo;<\/p>\n<h2>What is ALGO coin?<\/h2>\n<p>By now, the question of &ldquo;What is Algorand crypto?&rdquo; is partially answered. But in order to see the whole picture, it&rsquo;s time to address the other, inseparable part of the Algorand project - <strong>the <a href=https://www.bitdegree.org/"//crypto//buy-algorand-algo/">ALGO coin<\/strong>. In Spanish &ldquo;algo&rdquo; means &ldquo;something.&rdquo; But in crypto&hellip; it means something way more interesting!<\/p>\n<p>At its core, <strong>ALGO serves as the native cryptocurrency of the Algorand blockchain<\/strong>, playing a pivotal role in securing the network and facilitating seamless transactions. It operates as the lifeblood, fueling the vibrant ecosystem that Algorand has constructed.<\/p>\n<p>Tokenomics-wise, ALGO follows a supply model with a total fixed supply of 10 billion tokens. This means that once 10 billion ALGO coins are created, the issuing of new coins will stop forever.<\/p>\n<p><img title=\"What is Algorand crypto: total fixed supply - 10 billion.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-algorand-crypto-07.jpg/" alt=\"What is Algorand crypto: total fixed supply - 10 billion.\" width=\"1000\" height=\"491\"><\/p>\n<p>Up until now, these tokens have been gradually released into circulation through such programs as <strong>participation rewards<\/strong>. Over time, additional ALGO tokens have been released through various other mechanisms, such as <strong>staking rewards and ecosystem growth initiatives<\/strong>.<\/p>\n<p>Now, let's explore the multifaceted role that ALGO plays within the Algorand system. First and foremost, <strong>ALGO serves as a means to pay transaction fees on the network<\/strong>. Whether it's validating transactions, executing <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-are-smart-contracts/">smart contracts<\/strong><\/a>, or engaging with decentralized applications, users rely on ALGO as the medium of exchange, ensuring the smooth functioning of the Algorand ecosystem.<\/p>\n<p>Furthermore, <strong>ALGO plays a crucial role in ensuring the network&rsquo;s security<\/strong>. Token holders can actively contribute to it by staking their ALGO, adding to the security and integrity of the blockchain. By staking their tokens, participants have the opportunity to earn rewards in the form of additional ALGO, incentivizing active engagement and long-term commitment to the Algorand network.<\/p>\n<p>Beyond its utility within the Algorand blockchain, ALGO has garnered recognition and adoption beyond its native environment. It has emerged as a <strong>prominent digital asset within the broader cryptocurrency landscape<\/strong>, finding its place in various exchanges and digital asset platforms. This widespread adoption has further solidified the relevance and versatility of ALGO in the crypto sphere.<\/p>\n<h2>Wrapping Up<\/h2>\n<p>So, having said all of this, I would hope that the questions of &ldquo;What is Algorand crypto?&rdquo; and &ldquo;What is Algorand coin?&rdquo; have been settled. <strong>It&rsquo;s an ambitious project that not only talks the talk, but walks the walk<\/strong>. Actually, committing to solving the notorious blockchain trilemma is not something that every project out there dares to do.<\/p>\n<p>As you can see, after hearing Algorand explained, this knowledge really is an asset in itself. It will allow you to look into what this project and its ecosystem has to offer, maybe even encourage you to embark on exploring and interacting with various Algorand projects on your own.<\/p>","youtube_video":{"id":100,"channel_id":1,"sort":17,"video_title":"What is Algorand? ALGO Coin Explained With Animations","description":"What is Algorand in crypto? What is ALGO coin?\n\nFor those who are unfamiliar with Algorand, these are the first questions they run into whenever Algorand gets mentioned. But it\u2019s more than that.\n\nIn this video, I\u2019ll get into the specifics of Algorand, its architecture, and principles on which this blockchain was fortified. As always, to illustrate more abstract or complex concepts, I\u2019ll rely on examples, examples and real life examples. This video will help you understand what Algorand and ALGO coin are all about!\n\nWhat\u2019s your experience with Algorand? Do you own any ALGO? Do you think this blockchain will remain a prominent player in the blockchain game? Share with us in the comment section below!\n\nVideo Time Table:\n\n0:00 Introduction to What is Algorand\n1:10 What is Algorand?\n5:20 Blockchain Trilemma\n8:16 What is ALGO Coin?\n10:09 Wrap-up: What is Algorand?\n\nGet Quick Crypto Tips on Twitter - Follow:\nhttps:\/\/twitter.com\/crypto_xplained\n\n#Algorand #AlgoCoin #AlgorandExplained","video_id":"OuO_BIdjEhg","duration":662,"view_count":1054,"thumbnail_url":"https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/what-is-algorand-algo-coin-explained-with-animations.jpg","thumbnail_width":1280,"thumbnail_height":720,"published_at":"2023-07-24T14:49:48.000000Z","created_at":"2023-07-24T23:00:16.000000Z","updated_at":"2024-01-09T23:00:03.000000Z","channel":{"id":1,"title":"CryptoFinallyExplained","channel_id":"UCOryUY0yxC08eJtK23mNgiA","main_playlist_id":"UUOryUY0yxC08eJtK23mNgiA"}}}" :prev-section="{"id":612,"chapter_id":2,"order":14,"featured_image_id":3501,"youtube_video_id":98,"author_id":4,"created_at":"2023-07-24T05:49:53.000000Z","updated_at":"2023-12-27T21:31:36.000000Z","slug":"what-is-fantom-crypto","title":"Is Fantom (FTM) Yet Another Ethereum Killer?","content":"<p>In this section, I&rsquo;m going to answer the question of &ldquo;<strong>What is Fantom crypto?<\/strong>&rdquo; and tell you about the Fantom ecosystem projects!<\/p>\n<p>So, what is Fantom (FTM), and why should you pay attention? Whether you're a crypto enthusiast or new to the space, Fantom's name is something that you better be aware of. Cause it&rsquo;s like a real phantom. If you&rsquo;re oblivious about its existence, you won&rsquo;t see how much you could be missing out!<\/p>\n<p>Yet, <strong>Fantom is more than just a cryptocurrency<\/strong>. It encompasses an entire DeFi ecosystem, and introduces unique ways of solving universal blockchain problems. Learning about Fantom (FTM) can be beneficial for those interested in exploring the <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-blockchain/">innovative blockchain technology<\/strong><\/a> and its potential applications. By understanding Fantom's <strong>unique approach to scalability and its focus on high-speed transaction processing<\/strong>, you&rsquo;ll get a new perspective on what is what when it comes to blockchains!<\/p>\n<p>In this section, we&rsquo;re going to answer the questions from &ldquo;What is Fantom crypto?&rdquo; to &ldquo;What is FTM crypto?&rdquo; and then, having established clear definitions of these key concepts, we&rsquo;ll take a look at <strong>Fantom ecosystem projects<\/strong>&nbsp;and how important they are.<\/p>\n<p><em>Now, let&rsquo;s get straight to the point!<\/em><\/p>\n<h2>What is Fantom in Crypto?<\/h2>\n<p>So, let&rsquo;s begin by answering the question, &ldquo;What is Fantom crypto?&rdquo;. First and foremost, <strong>Fantom is a blockchain network<\/strong>. It was developed by a team led by <strong>Dr. Ahn Byung Ik<\/strong>, a computer scientist and entrepreneur. The project began in 2018 under the guidance of <strong>Fantom Foundation<\/strong>, a non-profit organization headquartered in South Korea.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Fantom crypto: Fantom Foundation.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-fantom-crypto-01.jpg/" alt=\"What is Fantom crypto: Fantom Foundation.\" width=\"1000\" height=\"558\"><\/p>\n<p>As always, a new, promising project is launched only when the team behind it feels like they can offer something that other, current market players cannot. So, the motivation behind creating Fantom was to <strong>overcome the limitations of existing blockchain platforms<\/strong>.<\/p>\n<p>The team sought to build a secure and scalable infrastructure capable of <strong>handling high-speed transactions and supporting large-scale decentralized applications<\/strong> across various industries. Well, this sounds like something that literally every blockchain out there claims to have as its goal. But here&rsquo;s what makes Fantom different.<\/p>\n<p>To achieve this, Fantom incorporated an innovative technology known as <strong>Lachesis<\/strong> and made it the network&rsquo;s consensus mechanism. Without going into details, a consensus mechanism is an engine that implements a set of rules that power the blockchain and ensure its smooth functioning.<\/p>\n<p>The Lachesis technology enables <strong>rapid transaction processing and scalability<\/strong>, as its output can be used immediately. There is no need to wait for block confirmations, because transactions are confirmed in 1-2 seconds.<\/p>\n<p>Think of it as WhatsApp. It made communication between people way faster than it was before the existence of this app. So, Lachesis does the same thing, but to on-chain transactions.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Fantom crypto: the Lachesis mechanism.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-fantom-crypto-02.jpg/" alt=\"What is Fantom crypto: the Lachesis mechanism.\" width=\"1000\" height=\"504\"><\/p>\n<p>Additionally, the platform implemented something called the&nbsp;<strong>Byzantine Fault-Tolerant (BFT)<\/strong> mechanism. Now that&rsquo;s something to be aware of when it comes to understanding blockchain networks consisting of many participants.<\/p>\n<p>Byzantine Fault-Tolerant is a term used to describe a system's ability to function correctly and <strong>reach a consensus even when some components of the system are faulty or behave maliciously<\/strong>.<\/p>\n<p>For example, imagine a group of friends trying to decide on where they will all go out for lunch. They need to agree on the final choice, but there's a catch: some friends may intentionally give ironic answers or joke about going to such places as Krusty Burger. Despite such disruptions, a final consensus will have to be reached.<\/p>\n<p>Byzantine Fault-Tolerance is like having a trustworthy friend in the group who can identify, cut through the irony and nonsense, and, as a result, <strong>filter out the misleading information and ensure everyone reaches a reliable decision<\/strong>. This friend's role is to ensure that even if a few friends are trying to disrupt the decision-making process, the group can still come to a consensus that everyone can trust.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Fantom crypto: Byzantine Fault-Tolerant (BFT).\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-fantom-crypto-03.jpg/" alt=\"What is Fantom crypto: Byzantine Fault-Tolerant (BFT).\" width=\"1000\" height=\"505\"><\/p>\n<p>When it comes to serious matters like transaction verification and new <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-block/">block creation, such obstacles must be overcome, and the Byzantine Fault-Tolerance mechanism is a tool to achieve this, thus increasing the blockchain&rsquo;s speed and operational efficiency.<\/p>\n<p>There&rsquo;s something else about Fantom that has to be addressed, though. The fact that the team behind it ensured the <strong>blockchain&rsquo;s compatibility with <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-ethereum/">Ethereum, allowing seamless integration with Ethereum-based applications. Keeping in mind how buzzing the Ethereum ecosystem is, such a feature is like creating a visa-free border system between two neighboring countries.<\/p>\n<p><strong>Fantom quickly gained attention and support<\/strong> from the cryptocurrency community and industry partners. Therefore, it&rsquo;s no surprise that the list of its strategic partnerships has many notable, prominent, and industry-established names on it.&nbsp;This makes sense, since, from its very inception, the Fantom team has been actively developing the platform, expanding its ecosystem, and driving adoption.<\/p>\n<p>All of this sounds like a serious deal. And, the more people saw this, the more attention the Fantom project received. As it&rsquo;s usually the case, positive attention was reflected in <a href=https://www.bitdegree.org/"//crypto//buy-fantom-ftm/">FTM&rsquo;s, its native cryptocurrency&rsquo;s, value increasing.&nbsp;FTM plays a crucial role in <strong>powering the Fantom network and incentivizing participants<\/strong>.<\/p>\n<p><em>Let&rsquo;s look into it in more detail.<\/em><\/p>\n<h2>What is FTM in Crypto?<\/h2>\n<p>Even though FTM sounds like just an abbreviation for Fantom, it would be a mistake to think that it&rsquo;s the same thing. <strong>FTM is a cryptocurrency<\/strong>, and, as said earlier, it&rsquo;s native to the Fantom blockchain network.<\/p>\n<p>FTM is a utility token, which means that it&rsquo;s used for <strong>payments, network fees, staking, and governance<\/strong>. Thus, it plays a central role in transactions, fee collection, staking activities, and user rewards.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Fantom crypto: tokenomics.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-fantom-crypto-05.jpg/" alt=\"What is Fantom crypto: tokenomics.\" width=\"1000\" height=\"503\"><\/p>\n<p>When it comes down to tokenomics, <strong>the total supply of FTM is 3.175 billion tokens<\/strong>. By the end of 2023, all of these tokens will be released into circulation.<\/p>\n<p>The gradual release of tokens was carefully thought through during the design process, and, as a result, a significant portion of the entire supply was <strong>reserved for staking rewards<\/strong> for those users who have chosen to stake their FTM holdings.&nbsp;<\/p>\n<p>Think of it as all the interest that you&rsquo;d receive if you put aside your savings into a savings account at a retail bank. The bank system is structured to reward depositors for keeping their money within the said institution. When it comes to staking and crypto tech, these staking reward reserves have to be meticulously calculated and locked, so they could be released when the time to issue staking rewards comes.&nbsp;<\/p>\n<p><em>By the way, if you feel like your knowledge about staking could be refreshed, don&rsquo;t hesitate and check out <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-staking-in-crypto/">this section<\/strong><\/a>!<\/em><\/p>\n<h2>Fantom Ecosystem Projects<\/h2>\n<p>Moving on with this &ldquo;What is Fantom crypto?&rdquo; section, it&rsquo;s time to address yet another reason behind this blockchain&rsquo;s popularity and importance &ndash; <strong>Fantom ecosystem projects<\/strong>. And there are plenty of those. But what&rsquo;s the reason for that? <em>The answer is&hellip; <\/em>Opera.<\/p>\n<p><strong>Fantom Opera<\/strong> is the main deployment platform of the Fantom (FTM) blockchain. It is a decentralized and permissionless application development layer that <strong>supports the operation of decentralized applications (dApps) on the Fantom network<\/strong>. Opera is designed to provide a seamless environment for developers to create and deploy <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-are-smart-contracts/">smart contracts<\/strong><\/a> using Fantom's unique features.<\/p>\n<p>To put it simply, <strong>the Fantom network is like a city, and Fantom Opera is like its downtown<\/strong>, full of hip offices, workshops, and opportunities. Smart and productive people get there to make their ideas come to life. When it comes to blockchain, these ideas are dApps, and thanks to Opera, creators and developers get the necessary tools and environments to work on them.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Fantom crypto: Fantom OPERA.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-fantom-crypto-06.jpg/" alt=\"What is Fantom crypto: Fantom OPERA.\" width=\"1000\" height=\"540\"><\/p>\n<p>One of the key aspects of Fantom Opera is its <strong>compatibility with the <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-ethereum-virtual-machine-evm/">Ethereum Virtual Machine (EVM)<\/a> and support for the <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-solidity/">Solidity programming language<\/strong>. Such a feature allows developers to leverage their existing knowledge and experience with Ethereum to build and deploy dApps on the Fantom network. So, Fantom enables developers to easily port their Ethereum-based projects to the Fantom ecosystem.<\/p>\n<p>Think of this as the Brooklyn Bridge. Manhattan locals can easily reach Brooklynittes, and vice versa. This enables fast and effective exchange of information, ideas, experience, and everything in between. So this connection between Fantom and Ethereum does exactly that, just in blockchain terms.<\/p>\n<p>Therefore, the list of Fantom ecosystem projects has such names as <strong><a href=https://www.bitdegree.org/"https:////www.bitdegree.org//top-crypto-exchanges//sushiswap-fantom/">Sushiswap, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//cryptocurrency-prices//beefy-finance-bifi-price/">Beefy, and similar ones, including over 250 NFT projects<\/strong>. For an ecosystem that&rsquo;s relatively young, these are fascinating numbers.<\/p>\n<p><em>Of course, it&rsquo;s easy to talk about dApps when you understand them. But if you don&rsquo;t, no worries, I&rsquo;ve covered them in a separate section - <strong><a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-are-dapps-in-crypto/">check it out<\/a><\/strong>!<\/em><\/p>\n<h2>Wrapping Up<\/h2>\n<p>That's it, now you know &ldquo;What is Fantom crypto?&rdquo;, &ldquo;What is FTM crypto?&rdquo;, and all about the landscape of Fantom ecosystem projects.<\/p>\n<p>Overall, it can be concluded that <strong>Fantom was created to address the scalability and security challenges faced by existing competitor blockchains, and to provide an effective, robust infrastructure for dApps<\/strong>. In order to achieve this, the Fantom team created <a href=https://www.bitdegree.org/"//crypto//buy-fantom-ftm/">FTM, Fantom&rsquo;s native utility token, and found novelty solutions for making the whole structure more solid, efficient, and scalable.<\/p>","definition":"Did you know that the Fantom network uses the innovative Lachesis technology as its consensus mechanism?","status":"published","meta_title":"What is Fantom in Crypto: Fantom Ecosystem Projects and More","meta_description":"Want to figure out what is Fantom in crypto? You'll be able to learn all about FTM, Fantom ecosystem projects, and much more right here.","meta_keywords":"what is fantom crypto, what is ftm crypto, fantom ecosystem projects","modified_content":"<p>In this section, I&rsquo;m going to answer the question of &ldquo;<strong>What is Fantom crypto?<\/strong>&rdquo; and tell you about the Fantom ecosystem projects!<\/p>\n<p>So, what is Fantom (FTM), and why should you pay attention? Whether you're a crypto enthusiast or new to the space, Fantom's name is something that you better be aware of. Cause it&rsquo;s like a real phantom. If you&rsquo;re oblivious about its existence, you won&rsquo;t see how much you could be missing out!<\/p>\n<p>Yet, <strong>Fantom is more than just a cryptocurrency<\/strong>. It encompasses an entire DeFi ecosystem, and introduces unique ways of solving universal blockchain problems. Learning about Fantom (FTM) can be beneficial for those interested in exploring the <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-blockchain/">innovative blockchain technology<\/strong><\/a> and its potential applications. By understanding Fantom's <strong>unique approach to scalability and its focus on high-speed transaction processing<\/strong>, you&rsquo;ll get a new perspective on what is what when it comes to blockchains!<\/p>\n<p>In this section, we&rsquo;re going to answer the questions from &ldquo;What is Fantom crypto?&rdquo; to &ldquo;What is FTM crypto?&rdquo; and then, having established clear definitions of these key concepts, we&rsquo;ll take a look at <strong>Fantom ecosystem projects<\/strong>&nbsp;and how important they are.<\/p>\n<p><em>Now, let&rsquo;s get straight to the point!<\/em><\/p>\n<div class=\"container\">\n <div class=\"row justify-content-center\">\n <div class=\"col-md-10 suggested-comparisons pb-3 mb-4\">\n <div class=\"d-flex flex-row\">\n <div class=\"text-center\">\n <div class=\"img-block-yt\">\n <img src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//assets//images//compare-crypto-exchanges.gif/"/n alt=\"What is Fantom? | Animated FTM Explainer\"\n title=\"What is Fantom? | Animated FTM Explainer\" class=\"border-0\">\n <p>Video Explainer<\/p>\n <\/div>\n <\/div>\n <div class=\"col-xs-10 col-sm-10 col-md-10 text-left py-3 yt-info\">\n <h4 class=\"mb-1\">Video Explainer: Is Fantom (FTM) Yet Another Ethereum Killer?<\/h4>\n <p class=\"py-1 mb-0 youtube-video-subtitle\">Reading is not your thing? Watch the \"Is Fantom (FTM) Yet Another Ethereum Killer?\" video explainer<\/p>\n <\/div>\n <\/div>\n <div class=\"row justify-content-center text-center\">\n <div class=\"col-12 col-md-11 px-3\">\n <div class=\"wrapper mb-0\">\n <div class=\"position-relative youtube mb-4 bg-transparent p-0 video-modal-popup\" data-toggle=\"modal\"\n data-target=\"#video-modal\" data-id=\"YaLTjQ0EHEU\" data-title=\"CryptoFinallyExplained\">\n <div class=\"video-gradient-top\"><\/div>\n <p class=\"text-left dyk-video-title\">What is Fantom? | Animated FTM Explainer<\/p>\n <img data-srcset=\"https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/what-is-fantom-animated-ftm-explainer.jpg?tr=w-420 500w,\n https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/what-is-fantom-animated-ftm-explainer.jpg?tr=w-760 1000w\"\n alt=\"What is Fantom? | Animated FTM Explainer\"\n title=\"What is Fantom? | Animated FTM Explainer\"\n class=\"p-0 lazyload\">\n <img class=\"play-button lazyload\" data-target=\"#video-modal\"\n data-src=\"https:\/\/assets.bitdegree.org\/crypto\/assets\/video-button.png?tr=w-85\"\n alt=\"What is Fantom? | Animated FTM Explainer\">\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <div class=\"row justify-content-center text-center\">\n <div>\n <a href=https://www.bitdegree.org/"https:////www.youtube.com//c//CryptoFinallyExplained?sub_confirmation=1\%22\n class=\"btn yt-promo mb-2\" target=\"_blank\" rel=\"nofollow noopener noindex\">\n <div class=\"row justify-content-center align-items-center mx-0 text-center\">\n <div class=\"col-4 col-md-4\">\n <i class=\"fab fa-youtube yt-dyk-btn\"><\/i>\n <\/div>\n <div class=\"col-8 col-md-8 text-center yt-promo-text\">\n <h4 class=\"m-0 text-white\">SUBSCRIBE<\/h4>\n <span>ON YOUTUBE<\/span>\n <\/div>\n <\/div>\n <\/a>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n<\/div>\n<div class=\"modal fade\" id=\"video-modal\" tabindex=\"-1\" role=\"dialog\">\n <div class=\"modal-dialog modal-dialog-centered modal-lg\" role=\"document\">\n <div class=\"modal-content\">\n <div class=\"modal-body p-0\">\n <button type=\"button\" class=\"video-modal-close close\" data-dismiss=\"modal\" aria-label=\"Close\">\n <i aria-hidden=\"true\" class=\"fas fa-times\"><\/i>\n <\/button>\n <div id=\"iframe\"><\/div>\n <\/div>\n <a class=\"text-decoration-none\"\n href=https://www.bitdegree.org/"https:////www.youtube.com//c//CryptoFinallyExplained?sub_confirmation=1\%22\n rel=\"nofollow noopener noindex\" target=\"_blank\">\n <div class=\"modal-footer p-0 d-block bg-white\">\n <div class=\"row justify-content-center m-0\">\n <div class=\"col-3 col-md-4 col-lg-2 p-0\">\n <img class=\"w-100 h-100\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//assets//crypto-subscribe.jpg/" alt=\"Subscribe\">\n <\/div>\n <div class=\"col-9 col-md-8 col-lg-2 px-0 d-flex\">\n <div class=\"modal-subscribe w-100\">\n <p class=\"m-0 mt-1 mr-3\">SUBSCRIBE<br>\n <span class=\"m-0\">ON YOUTUBE<\/span>\n <\/p>\n <\/div>\n <\/div>\n <div class=\"col-12 col-md-12 col-lg-8 p-0 text-center d-flex justify-content-center align-items-center\">\n <div class=\"modal-subscribe-text\">\n <h4 class=\"m-0\">Understand crypto with ease<\/h4>\n <span>New explainer videos every week!<\/span>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <\/a>\n <\/div>\n <\/div>\n<\/div>\n<h2>What is Fantom in Crypto?<\/h2>\n<p>So, let&rsquo;s begin by answering the question, &ldquo;What is Fantom crypto?&rdquo;. First and foremost, <strong>Fantom is a blockchain network<\/strong>. It was developed by a team led by <strong>Dr. Ahn Byung Ik<\/strong>, a computer scientist and entrepreneur. The project began in 2018 under the guidance of <strong>Fantom Foundation<\/strong>, a non-profit organization headquartered in South Korea.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Fantom crypto: Fantom Foundation.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-fantom-crypto-01.jpg/" alt=\"What is Fantom crypto: Fantom Foundation.\" width=\"1000\" height=\"558\"><\/p>\n<p>As always, a new, promising project is launched only when the team behind it feels like they can offer something that other, current market players cannot. So, the motivation behind creating Fantom was to <strong>overcome the limitations of existing blockchain platforms<\/strong>.<\/p>\n<p>The team sought to build a secure and scalable infrastructure capable of <strong>handling high-speed transactions and supporting large-scale decentralized applications<\/strong> across various industries. Well, this sounds like something that literally every blockchain out there claims to have as its goal. But here&rsquo;s what makes Fantom different.<\/p>\n<p>To achieve this, Fantom incorporated an innovative technology known as <strong>Lachesis<\/strong> and made it the network&rsquo;s consensus mechanism. Without going into details, a consensus mechanism is an engine that implements a set of rules that power the blockchain and ensure its smooth functioning.<\/p>\n<p>The Lachesis technology enables <strong>rapid transaction processing and scalability<\/strong>, as its output can be used immediately. There is no need to wait for block confirmations, because transactions are confirmed in 1-2 seconds.<\/p>\n<p>Think of it as WhatsApp. It made communication between people way faster than it was before the existence of this app. So, Lachesis does the same thing, but to on-chain transactions.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Fantom crypto: the Lachesis mechanism.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-fantom-crypto-02.jpg/" alt=\"What is Fantom crypto: the Lachesis mechanism.\" width=\"1000\" height=\"504\"><\/p>\n<p>Additionally, the platform implemented something called the&nbsp;<strong>Byzantine Fault-Tolerant (BFT)<\/strong> mechanism. Now that&rsquo;s something to be aware of when it comes to understanding blockchain networks consisting of many participants.<\/p>\n<p>Byzantine Fault-Tolerant is a term used to describe a system's ability to function correctly and <strong>reach a consensus even when some components of the system are faulty or behave maliciously<\/strong>.<\/p>\n<p>For example, imagine a group of friends trying to decide on where they will all go out for lunch. They need to agree on the final choice, but there's a catch: some friends may intentionally give ironic answers or joke about going to such places as Krusty Burger. Despite such disruptions, a final consensus will have to be reached.<\/p>\n<p>Byzantine Fault-Tolerance is like having a trustworthy friend in the group who can identify, cut through the irony and nonsense, and, as a result, <strong>filter out the misleading information and ensure everyone reaches a reliable decision<\/strong>. This friend's role is to ensure that even if a few friends are trying to disrupt the decision-making process, the group can still come to a consensus that everyone can trust.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Fantom crypto: Byzantine Fault-Tolerant (BFT).\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-fantom-crypto-03.jpg/" alt=\"What is Fantom crypto: Byzantine Fault-Tolerant (BFT).\" width=\"1000\" height=\"505\"><\/p>\n<p>When it comes to serious matters like transaction verification and new <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-block/">block creation, such obstacles must be overcome, and the Byzantine Fault-Tolerance mechanism is a tool to achieve this, thus increasing the blockchain&rsquo;s speed and operational efficiency.<\/p>\n<p>There&rsquo;s something else about Fantom that has to be addressed, though. The fact that the team behind it ensured the <strong>blockchain&rsquo;s compatibility with <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-ethereum/">Ethereum, allowing seamless integration with Ethereum-based applications. Keeping in mind how buzzing the Ethereum ecosystem is, such a feature is like creating a visa-free border system between two neighboring countries.<\/p>\n<p><strong>Fantom quickly gained attention and support<\/strong> from the cryptocurrency community and industry partners. Therefore, it&rsquo;s no surprise that the list of its strategic partnerships has many notable, prominent, and industry-established names on it.&nbsp;This makes sense, since, from its very inception, the Fantom team has been actively developing the platform, expanding its ecosystem, and driving adoption.<\/p>\n<p>All of this sounds like a serious deal. And, the more people saw this, the more attention the Fantom project received. As it&rsquo;s usually the case, positive attention was reflected in <a href=https://www.bitdegree.org/"//crypto//buy-fantom-ftm/">FTM&rsquo;s, its native cryptocurrency&rsquo;s, value increasing.&nbsp;FTM plays a crucial role in <strong>powering the Fantom network and incentivizing participants<\/strong>.<\/p>\n<p><em>Let&rsquo;s look into it in more detail.<\/em><\/p>\n<h2>What is FTM in Crypto?<\/h2>\n<p>Even though FTM sounds like just an abbreviation for Fantom, it would be a mistake to think that it&rsquo;s the same thing. <strong>FTM is a cryptocurrency<\/strong>, and, as said earlier, it&rsquo;s native to the Fantom blockchain network.<\/p>\n<p>FTM is a utility token, which means that it&rsquo;s used for <strong>payments, network fees, staking, and governance<\/strong>. Thus, it plays a central role in transactions, fee collection, staking activities, and user rewards.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Fantom crypto: tokenomics.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-fantom-crypto-05.jpg/" alt=\"What is Fantom crypto: tokenomics.\" width=\"1000\" height=\"503\"><\/p>\n<p>When it comes down to tokenomics, <strong>the total supply of FTM is 3.175 billion tokens<\/strong>. By the end of 2023, all of these tokens will be released into circulation.<\/p>\n<p>The gradual release of tokens was carefully thought through during the design process, and, as a result, a significant portion of the entire supply was <strong>reserved for staking rewards<\/strong> for those users who have chosen to stake their FTM holdings.&nbsp;<\/p>\n<p>Think of it as all the interest that you&rsquo;d receive if you put aside your savings into a savings account at a retail bank. The bank system is structured to reward depositors for keeping their money within the said institution. When it comes to staking and crypto tech, these staking reward reserves have to be meticulously calculated and locked, so they could be released when the time to issue staking rewards comes.&nbsp;<\/p>\n<p><em>By the way, if you feel like your knowledge about staking could be refreshed, don&rsquo;t hesitate and check out <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-staking-in-crypto/">this section<\/strong><\/a>!<\/em><\/p>\n<h2>Fantom Ecosystem Projects<\/h2>\n<p>Moving on with this &ldquo;What is Fantom crypto?&rdquo; section, it&rsquo;s time to address yet another reason behind this blockchain&rsquo;s popularity and importance &ndash; <strong>Fantom ecosystem projects<\/strong>. And there are plenty of those. But what&rsquo;s the reason for that? <em>The answer is&hellip; <\/em>Opera.<\/p>\n<p><strong>Fantom Opera<\/strong> is the main deployment platform of the Fantom (FTM) blockchain. It is a decentralized and permissionless application development layer that <strong>supports the operation of decentralized applications (dApps) on the Fantom network<\/strong>. Opera is designed to provide a seamless environment for developers to create and deploy <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-are-smart-contracts/">smart contracts<\/strong><\/a> using Fantom's unique features.<\/p>\n<p>To put it simply, <strong>the Fantom network is like a city, and Fantom Opera is like its downtown<\/strong>, full of hip offices, workshops, and opportunities. Smart and productive people get there to make their ideas come to life. When it comes to blockchain, these ideas are dApps, and thanks to Opera, creators and developers get the necessary tools and environments to work on them.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Fantom crypto: Fantom OPERA.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-fantom-crypto-06.jpg/" alt=\"What is Fantom crypto: Fantom OPERA.\" width=\"1000\" height=\"540\"><\/p>\n<p>One of the key aspects of Fantom Opera is its <strong>compatibility with the <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-ethereum-virtual-machine-evm/">Ethereum Virtual Machine (EVM)<\/a> and support for the <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-solidity/">Solidity programming language<\/strong>. Such a feature allows developers to leverage their existing knowledge and experience with Ethereum to build and deploy dApps on the Fantom network. So, Fantom enables developers to easily port their Ethereum-based projects to the Fantom ecosystem.<\/p>\n<p>Think of this as the Brooklyn Bridge. Manhattan locals can easily reach Brooklynittes, and vice versa. This enables fast and effective exchange of information, ideas, experience, and everything in between. So this connection between Fantom and Ethereum does exactly that, just in blockchain terms.<\/p>\n<p>Therefore, the list of Fantom ecosystem projects has such names as <strong><a href=https://www.bitdegree.org/"https:////www.bitdegree.org//top-crypto-exchanges//sushiswap-fantom/">Sushiswap, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//cryptocurrency-prices//beefy-finance-bifi-price/">Beefy, and similar ones, including over 250 NFT projects<\/strong>. For an ecosystem that&rsquo;s relatively young, these are fascinating numbers.<\/p>\n<p><em>Of course, it&rsquo;s easy to talk about dApps when you understand them. But if you don&rsquo;t, no worries, I&rsquo;ve covered them in a separate section - <strong><a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-are-dapps-in-crypto/">check it out<\/a><\/strong>!<\/em><\/p>\n<h2>Wrapping Up<\/h2>\n<p>That's it, now you know &ldquo;What is Fantom crypto?&rdquo;, &ldquo;What is FTM crypto?&rdquo;, and all about the landscape of Fantom ecosystem projects.<\/p>\n<p>Overall, it can be concluded that <strong>Fantom was created to address the scalability and security challenges faced by existing competitor blockchains, and to provide an effective, robust infrastructure for dApps<\/strong>. In order to achieve this, the Fantom team created <a href=https://www.bitdegree.org/"//crypto//buy-fantom-ftm/">FTM, Fantom&rsquo;s native utility token, and found novelty solutions for making the whole structure more solid, efficient, and scalable.<\/p>","youtube_video":{"id":98,"channel_id":1,"sort":18,"video_title":"What is Fantom? | Animated FTM Explainer","description":"What is Fantom in crypto? What is FTM crypto? What are the most important Fantom ecosystem projects?\n\nLearning about Fantom can be very beneficial. It\u2019s the only way to find out, learn, and understand what unique solutions and ideas this blockchain network has brought to the crypto table!\n\nIn this video, I\u2019ll cover the differences between Fantom, the blockchain network, and FTM, this network\u2019s native currency. After making it clear, I\u2019ll get into details about what made this new blockchain project stand out from the crowd, and why it attracted so much attention, from investors and users, alike.\n\nDo you have any experience with Fantom (FTM)? Have you ever interacted with the blockchain, or maybe you hold some FTM? What are your thoughts on this project and the ecosystem that it hosts? Let us know in the comments!\n\nVideo Time Table:\n\n0:00 Introduction to What is Fantom?\n1:14 What is Fantom in Crypto?\n4:41 What is FTM?\n5:54 Fantom Ecosystem Projects\n7:53 Wrap-up: What is Fantom in Crypto?\n\nGet Quick Crypto Tips on Twitter - Follow:\nhttps:\/\/twitter.com\/crypto_xplained \n\n#Fantom #FantomFTM #FantomCrypto","video_id":"YaLTjQ0EHEU","duration":515,"view_count":370,"thumbnail_url":"https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/what-is-fantom-animated-ftm-explainer.jpg","thumbnail_width":1280,"thumbnail_height":720,"published_at":"2023-07-18T15:00:14.000000Z","created_at":"2023-07-18T23:00:08.000000Z","updated_at":"2024-01-09T23:00:04.000000Z","channel":{"id":1,"title":"CryptoFinallyExplained","channel_id":"UCOryUY0yxC08eJtK23mNgiA","main_playlist_id":"UUOryUY0yxC08eJtK23mNgiA"}}}" :model="{"id":614,"chapter_id":2,"order":15,"featured_image_id":null,"youtube_video_id":null,"author_id":4,"created_at":"2023-08-08T13:24:08.000000Z","updated_at":"2023-12-28T17:12:57.000000Z","slug":"what-is-aave-crypto","title":"Aave: Crypto Lending Trailblazer","content":"<p>In this section, I&rsquo;m going to answer the question of &ldquo;<strong>What is Aave crypto?<\/strong>&rdquo;, and take a look into how does Aave crypto work.<\/p>\n<p>For newcomers, it&rsquo;s a challenge to talk about the Aave meaning in crypto, when most don&rsquo;t even know how to pronounce it! But such a minor obstacle should not keep us from learning about how to use Aave crypto, since for those who know, it&rsquo;s a <strong>treasure chest full of new <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-defi/">DeFi opportunities and open possibilities<\/strong>.<\/p>\n<p>But, once again, Aave may appear confusing for crypto beginners, simply because it&rsquo;s not merely a cryptocurrency or a blockchain network. It&rsquo;s a <strong>DeFi protocol that functions as a decentralized crypto lending platform that lets users borrow and lend crypto<\/strong>. And, naturally, understanding this requires having quite a solid base of the crypto fundamentals. Nevertheless, if you&rsquo;re looking to get Aave explained, you&rsquo;ve come to the right place!<\/p>\n<p>In this section, we&rsquo;re going to delve into questions that range from &ldquo;What is Aave crypto?&rdquo; to &ldquo;How to use Aave crypto,&rdquo; and cover everything in between.<\/p>\n<p><em>Without wasting any time, let&rsquo;s jump right into it!<\/em><\/p>\n<h2>What is Aave Crypto?<\/h2>\n<p>So, let&rsquo;s begin by laying out the foundations. The core question is, naturally - <strong>what is Aave crypto?<\/strong><\/p>\n<p>In dry theory, Aave presents itself as a &ldquo;<em>decentralized non-custodial liquidity market protocol where users can participate as suppliers or borrowers<\/em>.&rdquo; The attractive part about becoming a supplier is the fact that it allows users to <strong>earn a passive income<\/strong>. But, such an explanation is overly technical, and half of the words used here need explainer sections of their own! Therefore, let&rsquo;s get a bit more down to earth.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Aave Crypto: decentralized non-custodial liquidity market protocol.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-aave-crypto-01.jpg/" alt=\"What is Aave Crypto: decentralized non-custodial liquidity market protocol.\" width=\"1000\" height=\"524\"><\/p>\n<p>In Finnish, &ldquo;Aave&rdquo; means &ldquo;ghost.&rdquo; Introduced back in 2017, it&rsquo;s a groundbreaking DeFi protocol that operates on the <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-ethereum/">Ethereum blockchain<\/strong><\/a>. What makes Aave so special is the fact that <strong>it transformed the landscape of lending and borrowing in the crypto industry<\/strong>. There was a gap in the market, an opportunity for a promising project to enter the crypto space and offer something new, when it comes to this kind of cryptocurrency-related activities. Aave did just that.<\/p>\n<p>Aave&rsquo;s core principles are rooted in decentralization, transparency, and accessibility. <strong>Through <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-are-smart-contracts/">smart contracts<\/a>, Aave allows users to lend and borrow cryptocurrencies seamlessly, without relying on traditional financial institutions, such as banks<\/strong>. And, even though today that doesn&rsquo;t sound so revolutionary, this was a game-changing service back then. As of writing, the Aave system enables users to lend or borrow 17 different cryptocurrencies.<\/p>\n<p>Aave protocol's unique features and user-centric approach have made it a prominent player in the DeFi space, driving the adoption of decentralized financial services.&nbsp;Aave was created with a very clear mission &ndash; to allow users to lend and borrow different cryptocurrencies and tokens. For example, users can <strong>supply assets like <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-stablecoin/">stablecoins or tokens, and, eventually, see returns from this investment<\/strong>.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Aave Crypto: returns.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-aave-crypto-02.jpg/" alt=\"What is Aave Crypto: returns.\" width=\"1000\" height=\"567\"><\/p>\n<p>These returns vary depending on the asset, blockchain, supply and demand, and the version of Aave that&rsquo;s being used. As of August 2023, there are three versions: <strong>Aave v1, v2, and v3<\/strong>, each with its own upgrades!<\/p>\n<p><em>Though, crypto lending and borrowing discussions require that the viewer feels confident about such concepts as smart contracts. Therefore, if you feel like your knowledge needs some refreshing, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-are-smart-contracts/">check this section<\/strong><\/a>, where I cover this topic in more detail!<\/em><\/p>\n<p>Okay, so that was a very brief introduction about what makes Aave more than just yet another cryptocurrency. But, as you might have already noticed, when it comes to understanding how does Aave crypto work, the learning curve is pretty steep. So, let&rsquo;s begin by dissecting the daunting-looking, yet essential crypto concepts that constitute the Aave project.<\/p>\n<h2>What is Crypto Lending &amp; Borrowing?<\/h2>\n<p>It&rsquo;s impossible to answer the question of &ldquo;What is Aave crypto?&rdquo; without addressing a more fundamental question of &ldquo;<strong>What is crypto lending?<\/strong>&rdquo; So, let&rsquo;s have a quick rundown of the concept.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Aave Crypto: crypto lending.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-aave-crypto-03.jpg/" alt=\"What is Aave Crypto: crypto lending.\" width=\"1000\" height=\"595\"><\/p>\n<p>Ever since crypto lending came around in 2020, it has revolutionized the world of DeFi, unlocking new possibilities for both lenders and borrowers. With crypto lending, individuals can now generate passive income while borrowers can access instant cash without facing tax-related unpleasant experiences.<\/p>\n<p>At its core, crypto lending functions similarly to traditional lending, with <strong>one party lending cryptocurrency to another in exchange for interest payments<\/strong>. However, there are significant differences that make it stand out.<\/p>\n<p>Unlike traditional banks, crypto loans are facilitated through <a href=https://www.bitdegree.org/"//crypto//best-cryptocurrency-exchange/">centralized exchanges<\/strong><\/a> or decentralized finance protocols such as AAVE. As you can see, Aave is a reference point when it comes to this crucial DeFi aspect.<\/p>\n<p>What makes crypto lending special is <strong>the absence of formal intermediaries<\/strong> that are usually seen as unavoidable with such institutions as banks. Instead, crypto lending relies on smart contracts that automate the entire process, including repayment terms and costs agreed upon in advance. Moreover, crypto lending <strong>doesn't require registration with any regulatory authority<\/strong>, offering a borderless lending experience through Web3 wallets.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Aave Crypto: crypto borrowing.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-aave-crypto-04.jpg/" alt=\"What is Aave Crypto: crypto borrowing.\" width=\"1000\" height=\"474\"><\/p>\n<p>Think of it as buying a can of coke from a vending machine, which allows you to skip any interactions with cashiers, or waiting in grocery store lines!<\/p>\n<p>Now, to lend assets on Aave, users need to <strong>select the network and version of the Aave that they&rsquo;re using, as well as choose the asset they want to supply<\/strong>. After confirming the transaction in their in-browser wallet, users can provide the desired amount of the asset.<\/p>\n<p>Borrowing assets follows a similar process but in reverse. Users must <strong>supply assets as <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-collateral/">collateral before being able to borrow<\/strong>. The maximum amount you can borrow depends on the amount you deposit and the \"health factor,\" which represents the safety of your collateral. It's important to keep the health factor above 1 to ensure the safety of your deposit.<\/p>\n<p>But this covers only the surface of what&rsquo;s possible with Aave. Therefore, let&rsquo;s dive deeper into what exactly has Aave offered to the crypto lending &amp; borrowing industry.<\/p>\n<h2>What Makes Aave Different?<\/h2>\n<p>One way to establish your name within the industry is to offer something new. And, introducing several key innovations that have changed the industry, was exactly what Aave did.<\/p>\n<p>First of all, <strong>flash loans<\/strong> must be mentioned. Aave popularized the concept of flash loans, which allow users to borrow assets <strong>without requiring collateral<\/strong>, as long as the borrowed amount is returned within the same <a href=https://www.bitdegree.org/"//crypto//buy-ethereum-eth/">Ethereum transaction.<\/p>\n<p>Flash loans have revolutionized the DeFi ecosystem by <strong>enabling arbitrage opportunities and complex financial strategies<\/strong>, expanding the possibilities for developers and traders.<\/p>\n<p><em>Sounds complicated? Don&rsquo;t worry, there's a separate <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//how-to-arbitrage-crypto/">section covering crypto arbitrage<\/strong><\/a> in this Crypto 101 Handbook, so be sure to check it out!<\/em><\/p>\n<p>Okay, back to answering &ldquo;What is Aave crypto and what makes Aave so special?\" As mentioned before, flash loans differ from usual crypto loans because they allow users to borrow crypto without providing collateral. But it&rsquo;s not that easy. <strong>Not anyone can take out a flash loan<\/strong>.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Aave Crypto: flash loan.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-aave-crypto-05.jpg/" alt=\"What is Aave Crypto: flash loan.\" width=\"1000\" height=\"516\"><\/p>\n<p>Flash loans serve as a <strong>specialized feature tailored towards developers<\/strong>, leveraging their technical expertise to execute such transactions. With flash loans, individuals have the ability to borrow assets without the need for collateral, provided the liquidity is promptly returned to the protocol within a single block transaction. This requires technical knowledge, which makes the answer to &ldquo;How to use Aave crypto?&rdquo; not that simple!<\/p>\n<p><strong>To receive a flash loan, a well-crafted contract is required<\/strong>. This contract acts as the gateway for requesting a flash loan, initiating the series of steps outlined within its code. The crucial aspect lies in the seamless execution of these instructed steps, ensuring that the loan amount, along with the accrued interest and fees, is repaid, all within the confines of a single transaction.<\/p>\n<p>Up next, we&rsquo;ve got the fact that <strong>Aave offered a novel approach to interest rates<\/strong>. In fact, Aave introduced a new interest rate model called \"<strong>interest rate swaps<\/strong>.\" This model allows users to choose between stable or variable interest rates for their borrowing positions. Users can switch between different interest rate types based on market conditions and their risk appetite, providing flexibility and control over their borrowing costs.<\/p>\n<p>Such a flexible approach immediately put Aave on the front lines of the crypto borrowing game, since this meant <strong>more freedom and individually-tailored opportunities for different DeFi investors<\/strong>. And that&rsquo;s a strong advantage, taking into account how different most of the DeFi investors and their financial positions are.<\/p>\n<p>Among other novelties, Aave made its name by introducing &ldquo;<strong>undercollateralized loans<\/strong>&rdquo;, which are also known as <strong>credit delegation<\/strong>. This feature allows users to delegate their borrowing power to trusted individuals or institutions, who can then borrow assets without providing the full collateral themselves. It enables creditworthiness assessment and <strong>the utilization of credit lines in a decentralized manner<\/strong>, expanding access to borrowing opportunities.<\/p>\n<p>One way to think of it is like lending to a trusted friend or a family member. You know their behavior, whether they could be trusted, and if it makes sense to expect them to pay you back what they owe. If it&rsquo;s a trusted individual, you&rsquo;ll be able to lend them some money without collateral. Their reputation speaks for itself.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Aave Crypto: aTokens.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-aave-crypto-06.jpg/" alt=\"What is Aave Crypto: aTokens.\" width=\"1000\" height=\"504\"><\/p>\n<p>Moving further, there&rsquo;s also &ldquo;<strong>market-based collateralization<\/strong>.&rdquo; Aave introduced this concept, where users can deposit their assets into the protocol and receive something known as aTokens in return. <strong>These aTokens represent the value of the deposited assets and accrue interest in real-time<\/strong>. Enthusiasts can use aTokens as collateral to borrow other assets, allowing them to leverage their existing holdings without needing to sell them.<\/p>\n<p>What&rsquo;s interesting about aTokens is that <strong>their value is pegged to the value of the corresponding deposited asset at a 1:1 ratio<\/strong>. Such a feature allows them to be safely stored, transferred or traded, thus creating more opportunities for the Aave ecosystem to grow and develop.&nbsp;All interest collected by the aTokens is distributed to their holders by continuously increasing their wallet balance.<\/p>\n<p>And finally, something that must be mentioned is the fact that <strong>Aave has implemented a governance system <\/strong>that allows Aave token holders to propose and vote on protocol upgrades, improvements, and risk management parameters. Additionally, Aave introduced a <strong>Safety Module<\/strong>, where users can deposit Aave tokens to act as insurance against possible protocol risks. This safety mechanism protects the protocol and users from potential losses.<\/p>\n<h2>Wrapping Up<\/h2>\n<p>So, I&rsquo;ve taken a look into the overall Aave meaning in crypto, what makes this project so special, and what kind of services does Aave provide. Therefore, now, I'm sure you'll know the answer to the question of &ldquo;What is Aave crypto?&rdquo;<\/p>\n<p>As you have probably noticed, <strong>Aave is definitely not the most convenient starting point for those who are new in the crypto space<\/strong>. Nevertheless, understanding crypto lending and borrowing is not only key to understanding Aave, but DeFi, as a whole, and being able to see how many hidden layers or opportunities await those who are eager enough to keep on learning and growing.<\/p>","definition":"Did you know that one of the stand-out features of Aave are flash loans, which allow users to borrow assets without collateral?","status":"published","meta_title":"What is Aave Crypto and How Does It Work?","meta_description":"If you want to know what is AAVE crypto, how to use AAVE, and how does it work, you're in luck, because you'll find all answers right here!","meta_keywords":"what is aave crypto, aave meaning crypto, aave explained, how does aave crypto work, how to use aave crypto, aave defi explained","modified_content":"<p>In this section, I&rsquo;m going to answer the question of &ldquo;<strong>What is Aave crypto?<\/strong>&rdquo;, and take a look into how does Aave crypto work.<\/p>\n<p>For newcomers, it&rsquo;s a challenge to talk about the Aave meaning in crypto, when most don&rsquo;t even know how to pronounce it! But such a minor obstacle should not keep us from learning about how to use Aave crypto, since for those who know, it&rsquo;s a <strong>treasure chest full of new <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-defi/">DeFi opportunities and open possibilities<\/strong>.<\/p>\n<p>But, once again, Aave may appear confusing for crypto beginners, simply because it&rsquo;s not merely a cryptocurrency or a blockchain network. It&rsquo;s a <strong>DeFi protocol that functions as a decentralized crypto lending platform that lets users borrow and lend crypto<\/strong>. And, naturally, understanding this requires having quite a solid base of the crypto fundamentals. Nevertheless, if you&rsquo;re looking to get Aave explained, you&rsquo;ve come to the right place!<\/p>\n<p>In this section, we&rsquo;re going to delve into questions that range from &ldquo;What is Aave crypto?&rdquo; to &ldquo;How to use Aave crypto,&rdquo; and cover everything in between.<\/p>\n<p><em>Without wasting any time, let&rsquo;s jump right into it!<\/em><\/p>\n<h2>What is Aave Crypto?<\/h2>\n<p>So, let&rsquo;s begin by laying out the foundations. The core question is, naturally - <strong>what is Aave crypto?<\/strong><\/p>\n<p>In dry theory, Aave presents itself as a &ldquo;<em>decentralized non-custodial liquidity market protocol where users can participate as suppliers or borrowers<\/em>.&rdquo; The attractive part about becoming a supplier is the fact that it allows users to <strong>earn a passive income<\/strong>. But, such an explanation is overly technical, and half of the words used here need explainer sections of their own! Therefore, let&rsquo;s get a bit more down to earth.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Aave Crypto: decentralized non-custodial liquidity market protocol.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-aave-crypto-01.jpg/" alt=\"What is Aave Crypto: decentralized non-custodial liquidity market protocol.\" width=\"1000\" height=\"524\"><\/p>\n<p>In Finnish, &ldquo;Aave&rdquo; means &ldquo;ghost.&rdquo; Introduced back in 2017, it&rsquo;s a groundbreaking DeFi protocol that operates on the <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-ethereum/">Ethereum blockchain<\/strong><\/a>. What makes Aave so special is the fact that <strong>it transformed the landscape of lending and borrowing in the crypto industry<\/strong>. There was a gap in the market, an opportunity for a promising project to enter the crypto space and offer something new, when it comes to this kind of cryptocurrency-related activities. Aave did just that.<\/p>\n<p>Aave&rsquo;s core principles are rooted in decentralization, transparency, and accessibility. <strong>Through <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-are-smart-contracts/">smart contracts<\/a>, Aave allows users to lend and borrow cryptocurrencies seamlessly, without relying on traditional financial institutions, such as banks<\/strong>. And, even though today that doesn&rsquo;t sound so revolutionary, this was a game-changing service back then. As of writing, the Aave system enables users to lend or borrow 17 different cryptocurrencies.<\/p>\n<p>Aave protocol's unique features and user-centric approach have made it a prominent player in the DeFi space, driving the adoption of decentralized financial services.&nbsp;Aave was created with a very clear mission &ndash; to allow users to lend and borrow different cryptocurrencies and tokens. For example, users can <strong>supply assets like <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-stablecoin/">stablecoins or tokens, and, eventually, see returns from this investment<\/strong>.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Aave Crypto: returns.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-aave-crypto-02.jpg/" alt=\"What is Aave Crypto: returns.\" width=\"1000\" height=\"567\"><\/p>\n<p>These returns vary depending on the asset, blockchain, supply and demand, and the version of Aave that&rsquo;s being used. As of August 2023, there are three versions: <strong>Aave v1, v2, and v3<\/strong>, each with its own upgrades!<\/p>\n<p><em>Though, crypto lending and borrowing discussions require that the viewer feels confident about such concepts as smart contracts. Therefore, if you feel like your knowledge needs some refreshing, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-are-smart-contracts/">check this section<\/strong><\/a>, where I cover this topic in more detail!<\/em><\/p>\n<p>Okay, so that was a very brief introduction about what makes Aave more than just yet another cryptocurrency. But, as you might have already noticed, when it comes to understanding how does Aave crypto work, the learning curve is pretty steep. So, let&rsquo;s begin by dissecting the daunting-looking, yet essential crypto concepts that constitute the Aave project.<\/p>\n<h2>What is Crypto Lending &amp; Borrowing?<\/h2>\n<p>It&rsquo;s impossible to answer the question of &ldquo;What is Aave crypto?&rdquo; without addressing a more fundamental question of &ldquo;<strong>What is crypto lending?<\/strong>&rdquo; So, let&rsquo;s have a quick rundown of the concept.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Aave Crypto: crypto lending.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-aave-crypto-03.jpg/" alt=\"What is Aave Crypto: crypto lending.\" width=\"1000\" height=\"595\"><\/p>\n<p>Ever since crypto lending came around in 2020, it has revolutionized the world of DeFi, unlocking new possibilities for both lenders and borrowers. With crypto lending, individuals can now generate passive income while borrowers can access instant cash without facing tax-related unpleasant experiences.<\/p>\n<p>At its core, crypto lending functions similarly to traditional lending, with <strong>one party lending cryptocurrency to another in exchange for interest payments<\/strong>. However, there are significant differences that make it stand out.<\/p>\n<p>Unlike traditional banks, crypto loans are facilitated through <a href=https://www.bitdegree.org/"//crypto//best-cryptocurrency-exchange/">centralized exchanges<\/strong><\/a> or decentralized finance protocols such as AAVE. As you can see, Aave is a reference point when it comes to this crucial DeFi aspect.<\/p>\n<p>What makes crypto lending special is <strong>the absence of formal intermediaries<\/strong> that are usually seen as unavoidable with such institutions as banks. Instead, crypto lending relies on smart contracts that automate the entire process, including repayment terms and costs agreed upon in advance. Moreover, crypto lending <strong>doesn't require registration with any regulatory authority<\/strong>, offering a borderless lending experience through Web3 wallets.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Aave Crypto: crypto borrowing.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-aave-crypto-04.jpg/" alt=\"What is Aave Crypto: crypto borrowing.\" width=\"1000\" height=\"474\"><\/p>\n<p>Think of it as buying a can of coke from a vending machine, which allows you to skip any interactions with cashiers, or waiting in grocery store lines!<\/p>\n<p>Now, to lend assets on Aave, users need to <strong>select the network and version of the Aave that they&rsquo;re using, as well as choose the asset they want to supply<\/strong>. After confirming the transaction in their in-browser wallet, users can provide the desired amount of the asset.<\/p>\n<p>Borrowing assets follows a similar process but in reverse. Users must <strong>supply assets as <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-collateral/">collateral before being able to borrow<\/strong>. The maximum amount you can borrow depends on the amount you deposit and the \"health factor,\" which represents the safety of your collateral. It's important to keep the health factor above 1 to ensure the safety of your deposit.<\/p>\n<p>But this covers only the surface of what&rsquo;s possible with Aave. Therefore, let&rsquo;s dive deeper into what exactly has Aave offered to the crypto lending &amp; borrowing industry.<\/p>\n<h2>What Makes Aave Different?<\/h2>\n<p>One way to establish your name within the industry is to offer something new. And, introducing several key innovations that have changed the industry, was exactly what Aave did.<\/p>\n<p>First of all, <strong>flash loans<\/strong> must be mentioned. Aave popularized the concept of flash loans, which allow users to borrow assets <strong>without requiring collateral<\/strong>, as long as the borrowed amount is returned within the same <a href=https://www.bitdegree.org/"//crypto//buy-ethereum-eth/">Ethereum transaction.<\/p>\n<p>Flash loans have revolutionized the DeFi ecosystem by <strong>enabling arbitrage opportunities and complex financial strategies<\/strong>, expanding the possibilities for developers and traders.<\/p>\n<p><em>Sounds complicated? Don&rsquo;t worry, there's a separate <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//how-to-arbitrage-crypto/">section covering crypto arbitrage<\/strong><\/a> in this Crypto 101 Handbook, so be sure to check it out!<\/em><\/p>\n<p>Okay, back to answering &ldquo;What is Aave crypto and what makes Aave so special?\" As mentioned before, flash loans differ from usual crypto loans because they allow users to borrow crypto without providing collateral. But it&rsquo;s not that easy. <strong>Not anyone can take out a flash loan<\/strong>.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Aave Crypto: flash loan.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-aave-crypto-05.jpg/" alt=\"What is Aave Crypto: flash loan.\" width=\"1000\" height=\"516\"><\/p>\n<p>Flash loans serve as a <strong>specialized feature tailored towards developers<\/strong>, leveraging their technical expertise to execute such transactions. With flash loans, individuals have the ability to borrow assets without the need for collateral, provided the liquidity is promptly returned to the protocol within a single block transaction. This requires technical knowledge, which makes the answer to &ldquo;How to use Aave crypto?&rdquo; not that simple!<\/p>\n<p><strong>To receive a flash loan, a well-crafted contract is required<\/strong>. This contract acts as the gateway for requesting a flash loan, initiating the series of steps outlined within its code. The crucial aspect lies in the seamless execution of these instructed steps, ensuring that the loan amount, along with the accrued interest and fees, is repaid, all within the confines of a single transaction.<\/p>\n<p>Up next, we&rsquo;ve got the fact that <strong>Aave offered a novel approach to interest rates<\/strong>. In fact, Aave introduced a new interest rate model called \"<strong>interest rate swaps<\/strong>.\" This model allows users to choose between stable or variable interest rates for their borrowing positions. Users can switch between different interest rate types based on market conditions and their risk appetite, providing flexibility and control over their borrowing costs.<\/p>\n<p>Such a flexible approach immediately put Aave on the front lines of the crypto borrowing game, since this meant <strong>more freedom and individually-tailored opportunities for different DeFi investors<\/strong>. And that&rsquo;s a strong advantage, taking into account how different most of the DeFi investors and their financial positions are.<\/p>\n<p>Among other novelties, Aave made its name by introducing &ldquo;<strong>undercollateralized loans<\/strong>&rdquo;, which are also known as <strong>credit delegation<\/strong>. This feature allows users to delegate their borrowing power to trusted individuals or institutions, who can then borrow assets without providing the full collateral themselves. It enables creditworthiness assessment and <strong>the utilization of credit lines in a decentralized manner<\/strong>, expanding access to borrowing opportunities.<\/p>\n<p>One way to think of it is like lending to a trusted friend or a family member. You know their behavior, whether they could be trusted, and if it makes sense to expect them to pay you back what they owe. If it&rsquo;s a trusted individual, you&rsquo;ll be able to lend them some money without collateral. Their reputation speaks for itself.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Aave Crypto: aTokens.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-aave-crypto-06.jpg/" alt=\"What is Aave Crypto: aTokens.\" width=\"1000\" height=\"504\"><\/p>\n<p>Moving further, there&rsquo;s also &ldquo;<strong>market-based collateralization<\/strong>.&rdquo; Aave introduced this concept, where users can deposit their assets into the protocol and receive something known as aTokens in return. <strong>These aTokens represent the value of the deposited assets and accrue interest in real-time<\/strong>. Enthusiasts can use aTokens as collateral to borrow other assets, allowing them to leverage their existing holdings without needing to sell them.<\/p>\n<p>What&rsquo;s interesting about aTokens is that <strong>their value is pegged to the value of the corresponding deposited asset at a 1:1 ratio<\/strong>. Such a feature allows them to be safely stored, transferred or traded, thus creating more opportunities for the Aave ecosystem to grow and develop.&nbsp;All interest collected by the aTokens is distributed to their holders by continuously increasing their wallet balance.<\/p>\n<p>And finally, something that must be mentioned is the fact that <strong>Aave has implemented a governance system <\/strong>that allows Aave token holders to propose and vote on protocol upgrades, improvements, and risk management parameters. Additionally, Aave introduced a <strong>Safety Module<\/strong>, where users can deposit Aave tokens to act as insurance against possible protocol risks. This safety mechanism protects the protocol and users from potential losses.<\/p>\n<h2>Wrapping Up<\/h2>\n<p>So, I&rsquo;ve taken a look into the overall Aave meaning in crypto, what makes this project so special, and what kind of services does Aave provide. Therefore, now, I'm sure you'll know the answer to the question of &ldquo;What is Aave crypto?&rdquo;<\/p>\n<p>As you have probably noticed, <strong>Aave is definitely not the most convenient starting point for those who are new in the crypto space<\/strong>. Nevertheless, understanding crypto lending and borrowing is not only key to understanding Aave, but DeFi, as a whole, and being able to see how many hidden layers or opportunities await those who are eager enough to keep on learning and growing.<\/p>","youtube_video":null,"featured_image":null}" :chapter-list="[{"id":1,"title":"Blockchain","slug":"blockchain","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-blockchain.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/blockchain-101.jpg","rating":100,"sections":[{"chapter_id":1,"order":1,"slug":"what-is-blockchain","title":"What is the Blockchain?","status":"published","modified_content":null},{"chapter_id":1,"order":2,"slug":"decentralized-blockchain","title":"Anonymous & Decentralized Blockchains: The Cornerstone of Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":3,"slug":"blockchain-transaction","title":"What is a Blockchain Transaction in Crypto?","status":"published","modified_content":null},{"chapter_id":1,"order":4,"slug":"crypto-fees","title":"The Different Types of Crypto Fees Explained","status":"published","modified_content":null},{"chapter_id":1,"order":5,"slug":"what-is-bridging-in-crypto","title":"The Key Notion Behind the Concept of Bridging in Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":6,"slug":"types-of-blockchains","title":"Different Types of Blockchains: What to Look Out For?","status":"published","modified_content":null}]},{"id":2,"title":"Cryptocurrencies","slug":"cryptocurrencies","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-cryptocurrencies.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/cryptocurrencies-101.jpg","rating":100,"sections":[{"chapter_id":2,"order":1,"slug":"what-is-a-cryptocurrency","title":"What is a Cryptocurrency?","status":"published","modified_content":null},{"chapter_id":2,"order":2,"slug":"how-does-cryptocurrency-work","title":"How Does Cryptocurrency Work?","status":"published","modified_content":null},{"chapter_id":2,"order":3,"slug":"is-cryptocurrency-a-good-investment","title":"Is Cryptocurrency a Good Investment? The Pros & Cons","status":"published","modified_content":null},{"chapter_id":2,"order":4,"slug":"coin-vs-token","title":"Coin VS Token: How Do They Differ?","status":"published","modified_content":null},{"chapter_id":2,"order":5,"slug":"what-are-stablecoins","title":"What are Stablecoins, Altcoins & Wrapped Coins?","status":"published","modified_content":null},{"chapter_id":2,"order":6,"slug":"what-is-a-bitcoin","title":"Bitcoin: the Pioneer of the Crypto World","status":"published","modified_content":null},{"chapter_id":2,"order":7,"slug":"what-is-ethereum","title":"The Ultimate Blockchain for dApp Creation: Ethereum","status":"published","modified_content":null},{"chapter_id":2,"order":8,"slug":"what-is-cardano-in-crypto","title":"What is Cardano and What is It Used For?","status":"published","modified_content":null},{"chapter_id":2,"order":9,"slug":"what-is-shiba-inu-coin","title":"Shiba Inu: the Dogecoin Killer","status":"published","modified_content":null},{"chapter_id":2,"order":10,"slug":"what-is-solana-in-crypto","title":"Is Solana an Improved Version of Ethereum?","status":"published","modified_content":null},{"chapter_id":2,"order":11,"slug":"what-is-polkadot-in-crypto","title":"The Bridge Between Blockchains: Polkadot","status":"published","modified_content":null},{"chapter_id":2,"order":12,"slug":"what-is-polygon-in-crypto","title":"Polygon: the Essential Scaling Solution for Ethereum","status":"published","modified_content":null},{"chapter_id":2,"order":13,"slug":"what-is-luna-crypto","title":"The Bumpy Road of Terra (LUNA)","status":"published","modified_content":null},{"chapter_id":2,"order":14,"slug":"what-is-fantom-crypto","title":"Is Fantom (FTM) Yet Another Ethereum Killer?","status":"published","modified_content":null},{"chapter_id":2,"order":15,"slug":"what-is-aave-crypto","title":"Aave: Crypto Lending Trailblazer","status":"published","modified_content":null},{"chapter_id":2,"order":16,"slug":"what-is-algorand-crypto","title":"Did Algorand Truly Solve the Blockchain Trilemma?","status":"published","modified_content":null},{"chapter_id":2,"order":17,"slug":"what-is-olympus-dao","title":"Does Olympus DAO Have Anything to Do With Mythology?","status":"published","modified_content":null},{"chapter_id":2,"order":18,"slug":"what-is-avax","title":"Is Avalanche Network (AVAX) Rightfully Called the Future of DeFi?","status":"published","modified_content":null},{"chapter_id":2,"order":19,"slug":"what-is-monero-coin","title":"Monero: Where Cryptocurrency Meets Cryptography","status":"published","modified_content":null},{"chapter_id":2,"order":20,"slug":"what-is-ripple-xrp","title":"Is Ripple \"it\" When it Comes to Cross-Border Transactions?","status":"published","modified_content":null},{"chapter_id":2,"order":21,"slug":"practical-use-of-cryptocurrencies","title":"The Practical Use of Crypto","status":"published","modified_content":null}]},{"id":3,"title":"Crypto Exchanges","slug":"crypto-exchanges","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-exchanges.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-exchanges-101.jpg","rating":80,"sections":[{"chapter_id":3,"order":1,"slug":"how-do-cryptocurrency-exchanges-work","title":"How do Cryptocurrency Exchanges Work?","status":"published","modified_content":null},{"chapter_id":3,"order":2,"slug":"dex-vs-cex","title":"DEX VS CEX: Two Sides of the Crypto Exchange Industry","status":"published","modified_content":null},{"chapter_id":3,"order":3,"slug":"crypto-day-trading","title":"Crypto Day Trading: The Difference Between Buying, Trading, and Swapping","status":"published","modified_content":null},{"chapter_id":3,"order":4,"slug":"kyc-crypto","title":"KYC & AML: The Key to Complying With Legal Industry Standards","status":"published","modified_content":null},{"chapter_id":3,"order":5,"slug":"how-to-buy-crypto","title":"From Fiat to Crypto: How to Buy Crypto for the First Time","status":"published","modified_content":null},{"chapter_id":3,"order":6,"slug":"fiat-to-crypto","title":"Taking Profits: Turning Crypto Into Fiat","status":"published","modified_content":null},{"chapter_id":3,"order":7,"slug":"how-to-use-crypto","title":"You\u2019ve Got Crypto: What Can You Do With It?","status":"published","modified_content":null}]},{"id":4,"title":"Crypto Wallets","slug":"crypto-wallets","updated":false,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-wallets.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-wallets-101.jpg","rating":80,"sections":[{"chapter_id":4,"order":1,"slug":"what-is-a-crypto-wallet","title":"What is a Crypto Wallet?","status":"published","modified_content":null},{"chapter_id":4,"order":2,"slug":"hot-wallet-vs-cold-wallet","title":"Hot Wallet VS Cold Wallet: Which One to Pick?","status":"published","modified_content":null},{"chapter_id":4,"order":3,"slug":"non-custodial-wallet","title":"What are Non-Custodial Crypto Wallets?","status":"published","modified_content":null},{"chapter_id":4,"order":4,"slug":"what-is-metamask","title":"Metamask: The Leading Non-Custodial Wallet","status":"published","modified_content":null},{"chapter_id":4,"order":37,"slug":"how-safe-is-cryptocurrency","title":"The Key Crypto Wallet Safety Practices: How Safe Can Crypto Be?","status":"published","modified_content":null}]},{"id":5,"title":"NFTs","slug":"nfts","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-nfts.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/nfts-101.jpg","rating":100,"sections":[{"chapter_id":5,"order":2,"slug":"how-to-trade-nfts","title":"NFT Trading: The Ins and Outs","status":"published","modified_content":null},{"chapter_id":5,"order":3,"slug":"buying-nft","title":"Tips and Tricks of Choosing the Right NFTs","status":"published","modified_content":null},{"chapter_id":5,"order":4,"slug":"how-to-store-nft","title":"How to Store NFTs: Best Practices","status":"published","modified_content":null},{"chapter_id":5,"order":5,"slug":"how-to-create-an-nft","title":"How to Create Your Own NFTs?","status":"published","modified_content":null},{"chapter_id":5,"order":6,"slug":"how-to-make-passive-money-with-nft","title":"Making Passive Money with NFTs","status":"published","modified_content":null}]},{"id":6,"title":"dApps & Defi","slug":"dapps-and-defi","updated":true,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-dapps.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/dapps-defi-101.jpg","rating":80,"sections":[{"chapter_id":6,"order":1,"slug":"what-are-nfts","title":"What are Non-Fungible Tokens (NFTs)?","status":"published","modified_content":null},{"chapter_id":6,"order":1,"slug":"what-is-defi","title":"What is Decentralized Finance (DeFi)?","status":"published","modified_content":null},{"chapter_id":6,"order":2,"slug":"what-is-defi-2-0","title":"DeFi 2.0: The New Version of Decentralized Finance","status":"published","modified_content":null},{"chapter_id":6,"order":3,"slug":"what-are-dapps-in-crypto","title":"What Are dApps and How Do They Work?","status":"published","modified_content":null},{"chapter_id":6,"order":4,"slug":"defi-dapps","title":"Picking the Right dApps: Dos and Don'ts","status":"published","modified_content":null},{"chapter_id":6,"order":5,"slug":"what-is-web-3-0","title":"Web 3.0: The Future of the Internet","status":"published","modified_content":null},{"chapter_id":6,"order":6,"slug":"what-are-smart-contracts","title":"What is the Core Purpose of Smart Contracts?","status":"published","modified_content":null},{"chapter_id":6,"order":7,"slug":"what-is-a-dao-in-crypto","title":"The Notion of a Decentralized Autonomous Ogranization (DAO)","status":"published","modified_content":null},{"chapter_id":6,"order":8,"slug":"what-is-staking-in-crypto","title":"What is the Goal of Staking Crypto Assets?","status":"published","modified_content":null},{"chapter_id":6,"order":9,"slug":"what-is-liquidity-pool-in-crypto","title":"What is a Liquidity Pool and How Does It Work?","status":"published","modified_content":null},{"chapter_id":6,"order":10,"slug":"what-is-automated-market-maker","title":"Automated Market Maker: the Cornerstone of the Decentralized Crypto Exchange Industry","status":"published","modified_content":null},{"chapter_id":6,"order":11,"slug":"what-is-yield-farming-in-crypto","title":"The Main Yield Farming Techniques","status":"published","modified_content":null},{"chapter_id":6,"order":12,"slug":"what-is-an-oracle-in-crypto","title":"Crypto Oracles: The Link Between Blockchain and Outside World Data","status":"published","modified_content":null},{"chapter_id":6,"order":13,"slug":"crypto-gambling","title":"The Peculiarities of Decentralized Crypto Gambling","status":"published","modified_content":null},{"chapter_id":6,"order":14,"slug":"what-is-the-metaverse","title":"Metaverse: A New Perception of Reality","status":"published","modified_content":null}]},{"id":7,"title":"Trading & Investing","slug":"trading-and-investing","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-trading.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-trading-101.jpg","rating":80,"sections":[{"chapter_id":7,"order":1,"slug":"where-to-trade-crypto","title":"Where Can You Trade Cryptocurrencies?","status":"published","modified_content":null},{"chapter_id":7,"order":2,"slug":"how-to-invest-in-crypto","title":"Investing in Crypto: What Investing Options Do You Have?","status":"published","modified_content":null},{"chapter_id":7,"order":3,"slug":"ico-vs-ido","title":"ICO vs IDO vs IEO: Which One is the One?","status":"published","modified_content":null},{"chapter_id":7,"order":4,"slug":"what-is-an-airdrop","title":"What are Crypto Airdrops and How to Get Them?","status":"published","modified_content":null},{"chapter_id":7,"order":5,"slug":"how-to-get-free-crypto","title":"How to Get Free Crypto Assets?","status":"published","modified_content":null},{"chapter_id":7,"order":6,"slug":"how-to-arbitrage-crypto","title":"What is Crypto Arbitrage: The Main Principles","status":"published","modified_content":null},{"chapter_id":7,"order":7,"slug":"what-is-a-perpetual-contract","title":"Perpetual Contracts: Futures Contracts Without an Expiration Date","status":"published","modified_content":null},{"chapter_id":7,"order":8,"slug":"what-is-fud","title":"What is FUD: How to Use It to Your Advantage While Investing in Crypto?","status":"published","modified_content":null},{"chapter_id":7,"order":9,"slug":"investing-in-cryptocurrency","title":"Investing in Cryptocurrency: How to Manage Your Risks?","status":"published","modified_content":null},{"chapter_id":7,"order":10,"slug":"what-is-a-rug-pull-in-crypto","title":"What is a Rug Pull in Crypto?","status":"published","modified_content":null},{"chapter_id":7,"order":11,"slug":"how-to-avoid-rug-pulls-in-crypto","title":"How to Spot and Avoid Rug Pulls?","status":"published","modified_content":null},{"chapter_id":7,"order":12,"slug":"how-to-avoid-crypto-taxes","title":"The Key Legal Techniques of Avoiding Crypto Taxes","status":"published","modified_content":null}]},{"id":8,"title":"Crypto Analysis","slug":"crypto-analysis","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-analysis.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-analysis-101.jpg","rating":100,"sections":[{"chapter_id":8,"order":1,"slug":"what-is-bullish-and-bearish","title":"Bearish and Bullish Markets: Do They Matter?","status":"published","modified_content":null},{"chapter_id":8,"order":2,"slug":"best-technical-analysis-indicators-for-crypto","title":"5 Best Crypto Technical Analysis Indicators You Must Know About","status":"published","modified_content":null},{"chapter_id":8,"order":3,"slug":"what-is-candlesticks","title":"Technical Analysis: What are Candlesticks, Trendlines, and Patterns?","status":"published","modified_content":null},{"chapter_id":8,"order":4,"slug":"how-to-track-new-crypto-coins","title":"Crypto Tracking: How to Track Your Favorite Coins & Tokens?","status":"published","modified_content":null},{"chapter_id":8,"order":5,"slug":"how-to-research-crypto","title":"Crypto Research Fundamentals & Social Signals: Your Daily Trading Strategy","status":"published","modified_content":null},{"chapter_id":8,"order":46,"slug":"portfolio-diversification-definition","title":"Portfolio Diversification: The Whats, the Whys, and the Hows","status":"published","modified_content":null}]},{"id":9,"title":"Mining","slug":"mining","updated":false,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-mining.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-mining-101.jpg","rating":80,"sections":[{"chapter_id":9,"order":1,"slug":"what-is-crypto-mining","title":"Crypto Mining: What It is and How Does It Work?","status":"published","modified_content":null},{"chapter_id":9,"order":2,"slug":"what-is-a-mining-pool","title":"Mining Pools: Is Collective Mining Better Than Solo Mining?","status":"published","modified_content":null},{"chapter_id":9,"order":3,"slug":"what-is-staking-crypto","title":"An Advanced Look into What is Staking Crypto","status":"published","modified_content":null},{"chapter_id":9,"order":4,"slug":"what-is-proof-of-stake-vs-proof-of-work","title":"Proof-of-Work VS Proof-of-Stake: The Differences That Matter","status":"published","modified_content":null},{"chapter_id":9,"order":5,"slug":"what-is-crypto-mining-rig","title":"Crypto Mining Rig: What It is and How to Build One?","status":"published","modified_content":null}]},{"id":10,"title":"Crypto Terms","updated":false,"chapter":"crypto\/assets\/crypto-book\/chapters\/crypto-101-glossary.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-glossary-101.jpg","rating":100,"sections":["A","B","C","D","E","F","G","H","I","J","K","L","M","N","O","P","Q","R","S","T","U","V","W","X","Y","Z"]}]" current-chapter="cryptocurrencies" current-section="what-is-aave-crypto">