Crypto Terms:
Letter B
What is Beta (Coefficient)?
Meaning:
Beta (Coefficient) -
a tool for comparing the volatility of a single asset to the volatility of the entire market or a specific portfolio.
Let's find out Beta (Coefficient) meaning, definition in crypto, what is Beta (Coefficient), and all other detailed facts.
A beta coefficient can be used to compare the volatility of an asset to the volatility of the whole market. For example, beta could be employed to determine a projected return on investment of an asset. It's calculated based on an asset's volatility in relation to the market.
Therefore, beta is used to assess how much risk a certain investment will add to a current portfolio rather than measuring the risk of investment in a single asset. Mutual funds, for instance, could use beta to investigate how risky it would be to add a certain financial instrument to their investment portfolio. Therefore, based on the risk profile of a certain portfolio, the beta coefficient can assist users in determining which assets they should acquire.
Beta is interpreted by measuring whether it's above 1 or below it. This is the case because beta would be equal to 1 if all investable assets were compared. However, if we compared a specific asset against the market, beta would probably be higher or lower than 1.
When beta is higher than 1, it means that the asset is both volatile and its price movements correspond with the market. However, when beta is lower than 1, it might indicate lower volatility, or that the price fluctuations of an asset correspond less with the market.
However, beta can also be used as a risk measure that compares the risk of an investment to a benchmark. The benchmark could be depicted as a broad market index or a particular portfolio. For instance, we could use Bitcoin as a benchmark to determine beta for SOL in connection to the price and volatility of Bitcoin.
Additionally, the volatility of Bitcoin could be compared to stock or gold markets providing insights into Bitcoin's correlation with the traditional financial markets.
alpha, the beta stage involves outsiders, that aren’t directly involved with the company to run tests, analyze the application and report bugs or errors if any were found. This method is used with the hopes to get genuine feedback.<\/p>\n<p>The Beta version isn’t far from the final version, since it does have the functionality and the looks of how approximately it will be at the final stage. However, alpha and beta versions tend to have design adjustments throughout the process.<\/p>\n<p>The next move after beta testing is the release. When the beta version is not far from being done, it is called a “release candidate”. If no errors or issues happen after, the software can be released and referred to as a <strong>“stable release”.<\/strong><\/p>\n<p>The cryptocurrency that should be released into the market goes through similar stages. It is tested internally and externally making sure that the blockchain architecture does not break down when users start exchanging it.<\/p>\n<p>Moreover, to be fitting for beta testing, the product has to have all of the necessary features, that are planned for the final version. The product shouldn’t go through unpredictable crashes.<\/p>\n<p>Speaking of participants, they must be from the target audience and be able to perform real-world tasks and use the app in a real-world context at the same time. Real users are the ones that do the final test of user acceptance, in real, external conditions. Meaning, that the application will get personal feedback from potential customers.<\/p>\n<p><strong>Open beta testing involves a lot of people who typically are potential clients.<\/strong> Perhaps open testing is a way of marketing and letting the clients get to know the product. Nevertheless, if there is a need for private testing, and keeping the product secret from the public, a smaller number of testers are included. <\/p>\n<p>A beta release means that the software is available for developers and testers. The people that are testing the version of the software can be called beta testers. These testers are usually volunteers that are curious about the product. They can not only provide feedback about the bugs, but they can recommend new features and additions as well.<\/p>\n<p><em>The goal is to avoid future failure of the product and increase the overall quality.<\/em><\/p>\n<p>One example would be a new blockchain and token protocol, Traxalt, which has conducted a beta testing phase as a way of making sure that all the systems are working the way they should. It formed an alliance with another company and gave them early access to the product.<\/p>\n<p>The alliance company gave feedback, and the developers improved the system and fixed the bugs according to it.<\/p>","definition":"During the beta testing stage testers try to discover bugs regarding security, efficacy, and availability.","status":"published","meta_title":"What is Beta (Release)? Definition & Meaning | Crypto Wiki","meta_description":"Beta (Release) meaning: Beta (Release) - During the beta testing stage testers try to discover bugs regarding security, efficacy, and availability.","meta_keywords":null}"
:prev-section="{"id":83,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/Binance","level":"medium","author_id":1,"created_at":"2023-06-19T06:58:59.000000Z","updated_at":"2024-01-01T08:27:27.000000Z","slug":"what-is-bep-95-bruno-hard-fork-upgrade","title":"What is BEP-95 (Bruno Hard Fork Upgrade)?","section":"B","keyword":"BEP-95 (Bruno Hard Fork Upgrade)","content":"<p><strong>Binance Evolution Proposal (BEP-95)<\/strong> is a protocol offering a <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-burning/">faster burning mechanism<\/strong><\/a> to the Binance Smart Chain (BSC). This protocol, also known as the Bruno hard fork upgrade, aims to burn the coins on the Binance-backed decentralized blockchain protocol in real-time.<\/p>\n<p>The BEP-95 was revealed on October 22, 2021. According to the developers, the optimization process can benefit validators and holders as the value of <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-binance-coin-bnb/">BNB tokens<\/strong><\/a> goes up after the excess is burned, allowing the price to perpetually rise.<\/p>\n<p><a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-ethereum-eth/">Ethereum’s EIP-1559 protocol, implemented in August 2021, is similar to the BEP-95. The London hard fork update implemented on the Ethereum blockchain is part of the broader schedule of upgrades that aim to transfer Ethereum from a <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-proof-of-work-pow/">Proof-of-Work (PoW)<\/strong><\/a> to a <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-proof-of-stake-pos/">Proof-of-Stake (PoS)<\/strong><\/a> consensus mechanism.<\/p>\n<p>Binance Smart Chain is the second most popular network after Ethereum to utilize a <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-hard-fork-blockchain/">hard fork strategy<\/strong><\/a> as means of price inflation. This strategy aims to make the <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-are-tokenomics/">tokenomics of BNB more dynamic.<\/p>\n<p>Binance’s goal is to speed up the <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-full-node/">full node synchronization<\/strong><\/a>, thus improving the <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-decentralization/">decentralization of the entire network. It is expected that the price of Binance’s native coin BNB will experience significant gains.<\/p>\n<h2>Gas Fee Distribution in BEP-95<\/h2>\n<p>BNB is the native token of <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//goon//binance/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Binance<\/strong><\/a>, one of the <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//best-cryptocurrency-exchange/">biggest cryptocurrency exchange platforms<\/strong><\/strong><\/a> in the world. It has numerous uses, like covering crypto transaction fees on its native platform or using it on blockchains with appropriate integrations. <\/p>\n<p>BNB is a <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-deflation/">deflationary token<\/strong><\/a>. This means that a <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-mining-algorithm/">mining algorithm<\/strong><\/a> is not used to create new blocks on the chain. The supply of BNB will progressively decrease with each burning event planned by Binance.<\/p>\n<p>BNB uses a unique consensus algorithm known as Proof-of-Staked-Authority (PoSA), which functions as a hybrid of Proof-of-Stake (PoS) and <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-proof-of-authority-poa/">Proof-of-Authority (PoA)<\/strong><\/strong><\/a> mechanisms. With each verified block, the validators receive a reward from the transaction fees. No new BNB is <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-minting/">minted as a reward.<\/p>\n<p>The transaction fees, also known as <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-gas-price/">gas cost<\/strong><\/a>, are collected and go towards the two system smart contracts – ValidatorSet Contract and System Reward Contract.<\/p>\n<p>The BEP-95 is set to <strong>improve the network<\/strong>. The expected improvements are:<\/p>\n<ul>\n<li>The BEP-95 burn will keep progressively reducing the supply of BNB, continuing past the target supply of 100 million tokens;<\/li>\n<li>The process of token burning will be sped up;<\/li>\n<li>Binance Smart Chain will become more decentralized thanks to the portion of transaction fees burning off;<\/li>\n<li>The value of BNB will increase.<\/li>\n<\/ul>","definition":"Binance Evolution Protocol, aiming to optimize the speed of the BNB burning process.","status":"published","meta_title":"What is BEP-95 (Bruno Hard Fork Upgrade)? Definition & Meaning | Crypto Wiki","meta_description":"BEP-95 (Bruno Hard Fork Upgrade) meaning: BEP-95 (Bruno Hard Fork Upgrade) - Binance Evolution Protocol, aiming to optimize the speed of the BNB burning process.","meta_keywords":null}"
:model="{"id":948,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/Beta_(finance)","level":"medium","author_id":1,"created_at":"2023-06-19T06:59:01.000000Z","updated_at":"2024-01-01T08:27:36.000000Z","slug":"what-is-beta-coefficient","title":"What is Beta (Coefficient)?","section":"B","keyword":"Beta (Coefficient)","content":"<p>A beta coefficient can be used to compare the <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-volatility/">volatility of an asset to the volatility of the whole market. For example, beta could be employed to determine a projected <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-roi/">return on investment<\/strong><\/a> of an asset. It's calculated based on an asset's volatility in relation to the market.<\/p>\n<p>Therefore, beta is used to assess <strong>how much risk a certain investment will add to a current portfolio rather than measuring the risk of investment in a single asset. <\/strong>Mutual funds, for instance, could use beta to investigate how risky it would be to add a certain financial instrument to their investment portfolio. Therefore, based on the risk profile of a certain portfolio, the beta coefficient can assist users in determining which assets they should acquire.<\/p>\n<p>Beta is interpreted by measuring whether it's above 1 or below it. This is the case because beta would be equal to 1 if all investable assets were compared. However, if we compared a specific asset against the market, beta would probably be higher or lower than 1.<\/p>\n<p><strong>When beta is higher than 1<\/strong>, it means that the asset is both volatile and its price movements correspond with the market. However, <strong>when beta is lower than 1<\/strong>, it might indicate lower volatility, or that the price fluctuations of an asset correspond less with the market.<\/p>\n<p>However, beta can also be used as a risk measure that compares the risk of an investment to a <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-benchmark/">benchmark. The benchmark could be depicted as a broad market index or a particular portfolio. <span style=\"font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Open Sans', 'Helvetica Neue', sans-serif;\">For instance, we could use <\/span><a style=\"font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Open Sans', 'Helvetica Neue', sans-serif;\" href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-bitcoin-btc/">Bitcoin
