Chapter 2: Cryptocurrencies

Does Olympus DAO Have Anything to Do With Mythology?

Interesting Fact:

Did you know that the Olympus DAO project's creator goes under the pseudonym Zeus?

easy

12 minutes

In this section, we’ll find out the answers to questions like “What is Olympus DAO?”, “What network is Olympus DAO on?” and “What is OHM crypto?”

If you’re new to the crypto scene, understanding Olympus DAO may seem similar to climbing the actual Mount Olympus! There are many attempts at explaining Olympus DAO in a simplified manner, but a lot of them may seem a bit too confusing for those who lack knowledge about the general DeFi landscape. But once you get past the first step, you begin to understand why Olympus DAO is commonly viewed as one of the most innovative and promising DeFi projects that there is.

When it comes to Olympus DAO, you get to face many challenging concepts. From reserve currency to stablecoins, from DeFi protocols to staking, Olympus DAO encompasses seemingly everything! Therefore, understanding Olympus DAO gives you a better view of the overall land of crypto, as well. Just as if you were observing it from the top of Mount Olympus!

In this section, I'll answer the big questions of “What is Olympus DAO?” and “What is OHM crypto?”, as well as take a look into fascinating ways of how does OHM work crypto. And, in the process of doing so, I’ll explain every term that could appear confusing!

It’s gonna be quite a ride, so brace yourselves, and let’s kick it off!

What is Olympus DAO? (OHM Crypto Animated Explainer)

Video Explainer

Video Explainer: Does Olympus DAO Have Anything to Do With Mythology?

Reading is not your thing? Watch the "Does Olympus DAO Have Anything to Do With Mythology?" video explainer

What is Olympus DAO?

Created in 2021, Olympus DAO is a relatively new project. It was conceived after a realization that the entire crypto market relies too heavily on fiat-backed stablecoins. This was a problem. Thus, one anonymous developer decided to attempt to solve it. It’s a quest of almost mythological proportions, but the developer understood the market’s need for it and had the confidence to attempt it. Also, they had a very appropriate pseudonym for doing so – Zeus.

What is Olympus DAO: anonymous.

But, as you can see, this is a rather high-tech project - we’ve just started, but I’ve already mentioned three concepts that require some extra attention. These concepts are DAO, fiat, and stablecoins. In order to fully understand what is Olympus DAO, we must make sure everything is clear.

First of all, a DAO, or Decentralized Autonomous Organization, represents a self-governing entity powered by blockchain technology, where decision-making processes and governance structures are decentralized and governed without a central authority. DAOs enable participants to collectively make decisions, manage resources, and shape the direction of the organization through a consensus-driven approach.

There's an entire section about DAOs, be sure to check it out!

Now, fiat refers to traditional currencies issued and regulated by governments, such as the US dollar or the Euro. In the context of crypto, fiat often serves as a benchmark or reference point for value comparison. It provides a means for users to evaluate the worth of cryptocurrencies, facilitating conversions, trading, and the establishment of value within the broader crypto ecosystem.

The notion of fiat remains relevant as a reference point and a bridge between the traditional financial system and the evolving world of digital assets.

And when it comes to a stablecoin, it’s a type of digital asset designed to maintain a stable value, typically pegged to a specific reserve asset like a fiat currency or a commodity. Unlike other cryptocurrencies, stablecoins aim to mitigate the volatility that often characterizes the crypto market.

Once again, there's a separate section about this topic, so if you feel unsure, check it out!

What is Olympus DAO: OHM.

Having established a clear definition of these concepts, it’s easier to understand what I meant when I said that Olympus DAO was created to solve the problem of the cryptocurrency market being too reliant on fiat-backed stablecoins. Now, let's go deeper and actually answer the questions of “What is Olympus DAO crypto?” and “What is OHM crypto?”

So, Olympus DAO is an innovative Decentralized Autonomous Organization that operates on the Ethereum blockchain. At its core, OlympusDAO seeks to establish a protocol where a native cryptocurrency, known as OHM, can thrive and serve as a stable store of value.

Wait a minute. What’s a protocol?

A protocol refers to a set of rules and specifications that govern how different components within a blockchain ecosystem interact with each other. Just like a language that enables communication, a crypto protocol establishes the framework for the seamless functioning and coordination of various participants within a decentralized network.

So, when we’re talking about Olympus DAO, we’re talking about a creation of a whole new set of rules that would redefine the entire DeFi game when it comes to maintaining a stable value.

The fundamental concept behind Olympus DAO lies in the reimagining of reserve assets. Instead of relying on traditional fiat-backed or algorithmic approaches (like Terra LUNA did), OlympusDAO introduces a rather revolutionary mechanism called "The treasury model." This model employs a combination of bonding, rebasing, and liquidity provision to create a resilient ecosystem.

Okay… Once again… What do these terms mean?

Firstly, "bonding" refers to the process where participants lock their assets, such as stablecoins or cryptocurrencies, within the OlympusDAO protocol in exchange for OHM tokens, the protocol’s native tokens. By bonding their assets, participants contribute to the liquidity and stability of the ecosystem, supporting the value of OHM as a reserve asset.

Next, "rebase" represents a unique mechanism employed by OlympusDAO to automatically adjust the supply of OHM based on market price movements. Through this process, the supply of OHM expands or contracts, aiming to maintain stability around a target price known as the "reserve currency." This innovative approach mitigates volatility risks and ensures the stability of OHM as a store of value. By the way, if you feel confused, we’ll look deeper into this aspect in a moment!

Lastly, "liquidity provision" involves the act of supplying assets to decentralized exchanges or liquidity pools within the OlympusDAO ecosystem. By providing liquidity, participants enhance the efficiency and depth of the market, enabling smooth trading and the seamless exchange of assets within the protocol.

These three components - bonding, rebasing, and liquidity provision - work harmoniously to foster a resilient ecosystem within Olympus DAO. They empower participants to actively contribute to the stability, liquidity, and growth of the protocol, creating an environment where OHM can thrive as a sustainable reserve asset.

What is Olympus DAO: decentralized, democratic project.

Well, I told you that understanding Olympus DAO is like climbing up the actual mountain! But don’t worry, eventually, once you get to the top of it and see the view over the DeFi world, that makes it all worth it! Okay, back to answering the question, “What is Olympus DAO crypto?”

At the heart of the Olympus DAO model lies the OHM token. OHM functions as both a reserve asset and a governance token, conferring voting rights to its holders, allowing them to actively shape the future direction of the protocol. Remember - that’s where the “DAO” in “Olympus DAO'' comes from! It’s a decentralized, democratic project!

And this community-driven governance isn’t just a “feature.” It’s one of the distinguishing aspects of the OlympusDAO project. OHM token holders have the power to shape the trajectory of the protocol, proposing and voting on various upgrades, enhancements, and policy changes. This decentralized governance framework ensures a collective decision-making process that aligns with the interests of the community.

So… I hope you’re not out of breath, because our hike to the top of the Olympus DAO mountain isn’t over yet!

What is OHM Crypto?

Okay, usually, I try not to talk about different concepts, such as Olympus DAO and OHM, at once. But in this case, while presenting the answer to the “What is Olympus DAO crypto?” question, I’ve already mentioned its native cryptocurrency OHM more than once. It’s because, otherwise, the answer to the question wouldn’t have sufficed! But OHM requires a bit more attention.

OHM, also referred to as the “Olympus DAO token” or “OHM Olympus coin” is the native token of Olympus DAO. It holds a unique position within the crypto industry, bringing forth innovative tokenomics and contributing to the evolution of the overall ecosystem.

The uniqueness of OHM lies in its role as a reserve asset. Unlike traditional stablecoins backed by fiat or algorithmic mechanisms, OHM derives its stability from the OlympusDAO treasury's reserves and a robust stability mechanism. This approach creates a self-sustaining ecosystem, where OHM acts as a stable store of value, resistant to external market fluctuations.

What is Olympus DAO: reserve asset.

You see, when you realize what’s the entire point behind OHM’s creation, you start understanding why it’s called OHM. It sounds very similar to “Om,” which, according to ancient Hindu scriptures, is the sacred sound of the universe, a.k.a. the sound of everlastingness. Which, indeed, sounds pretty stable, and that’s what Olympus DAO is after!

In its unique approach, OHM has contributed to the improvement of the crypto industry by introducing novel concepts, such as treasury-based stability models and community-centric governance. By providing an alternative to traditional reserve assets and centralized decision-making structures, OHM showcases the potential for decentralized and sustainable financial systems.

Olympus Treasury

By now, we have established what makes Olympus DAO and OHM so ambitious and outstanding. But let’s take a closer look at how this reserve currency works. And, what is a reserve currency, after all?

So, first of all, let's demystify the concept.

In short, a reserve currency refers to a widely accepted and held currency by central banks and international institutions as a means to facilitate international transactions, store value, and maintain stability in the global financial system.

A reserve currency holds a special status, often being used as a benchmark for exchange rates and serving as a preferred medium for settling international debts. It plays a crucial role in facilitating trade, investment, and financial activities on a global scale.

The primary reserve currency historically has been the US dollar, but other currencies like the euro, yen, and pound sterling have also served as reserve currencies to varying degrees. The designation of a reserve currency is influenced by factors such as a country's economic strength, political stability, and the depth and liquidity of its financial markets.

What is Olympus DAO: reserve currency.

In the context of cryptocurrencies, the emergence of reserve currencies like OHM within decentralized systems offers a new perspective. These reserve currencies aim to provide stability and a means for the store of value within the crypto ecosystem, creating a self-sustaining framework that operates independently of traditional fiat currencies.

And OHM does that, thanks to the Olympus Treasury.

The Olympus Treasury lies at the heart of OlympusDAO, serving as a vital component that underpins the stability and value of the OHM reserve currency. It is a pool of assets composed of more than $200M worth of crypto assets that are held within the protocol. This treasury forms the backbone of the ecosystem, providing the necessary reserves to support the stability and value of OHM.

But how does this OHM reserve currency actually work? Well, the OHM reserve currency is the target price at which the Olympus DAO protocol strives to maintain stability. It represents the ideal value for OHM, acting as a reliable store of value within the ecosystem.

To achieve this stability, the OlympusDAO protocol implements a unique mechanism. When the price of OHM rises above the target, new OHM tokens are minted and added to the treasury, expanding the supply. Conversely, when the price falls below the target, the previously mentioned process of "bonding" occurs, where participants can bond their assets to receive OHM, reducing the supply.

This creates a feedback loop between the treasury and the supply of OHM, enabling the protocol to automatically adjust and maintain stability. By expanding or contracting the supply in response to market conditions, the OlympusDAO ecosystem aims to keep the OHM reserve currency closely aligned with its target value, fostering confidence for participants.

Criticism

At this point, it may seem that Olympus DAO is, without a doubt, the winner’s choice. But, as it’s the case with all things in life, everything has two sides to it. And Olympus DAO is far from being immune to skepticism.

This project has been accused of being a Ponzi scheme, simply due to their staking system being perceived as unsustainable to the point of being unreliable, and, therefore, fraudulent. Such criticism stems from the conviction that high-yield investment programs are doomed to fail, and, therefore, people shouldn’t turn their guard off when it comes to trusting financial projects.

The room for doubt is created not only by the project’s innovative, therefore, yet-to-be-tested tokenomics, but by the fact that the idea of being pseudo-anonymous is practiced within the Olympus DAO management. Zeus, the creator of the whole thing, is an example. Critics would ask: “Why hide your identity, if everything’s so brilliant?”

The thing is simple. Olympus DAO truly stands out for their groundbreaking, never-seen-before solutions and thinking forwards. Yet, when it comes to crypto, sometimes things turn out to be less robust and failure-proof when something unexpected happens.

Wrapping Up

Finally, we have reached the mountain top! By now, the questions of “What is Olympus DAO?”, “What is OHM crypto?”, and even “What network is Olympus DAO on?” have been answered. I told you - understanding this concept can get a bit daunting. But if you don’t skip any key points, don’t ignore essential terminology, and stay attentive, the clouds evaporate, and things become much clearer.

And by now, it’s easy to summarize the fact that Olympus DAO has contributed to the broader DeFi landscape by offering an alternative store of value and stability within an ecosystem driven by community governance. This pioneering approach has garnered attention, sparked conversations, and paved the way for further exploration and innovation in the sphere of cryptocurrencies and decentralized systems.

AVAX!/n

Five years ago, an anonymous group of individuals named “<strong>Team Rocket<\/strong>” tweeted their masterful idea that would tilt the crypto world on the side. And while you probably know the name from the anime, this “Team Rocket” was not planning to steal anyone’s Pokemon. Nor crypto, for that matter!<\/p>\n<p>The mystery team came up with a new blockchain protocol that would combine two sets of rules: <strong>the Classical consensus and the Nakamoto consensus<\/strong>. Someone caught on to the idea and started experimenting, trying to create a network that was both scalable and robust, as well as speedy and decentralized. They created something bound to become a hallmark in crypto, and called it Avalanche.<\/p>\n<p>In this section, I’m going to answer questions such as what is AVAX, what makes it so unique, and why should it be considered among the biggest competitors to industry giants such as <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-ethereum/">Ethereum./n

Let’s get right into it!<\/em><\/p>\n<h2>What is AVAX?<\/h2>\n<p>First things first - what is AVAX? Allow me to explain it in simple terms!<\/p>\n<p><strong>Avalanche Network, or AVAX, is both a blockchain platform and a cryptocurrency<\/strong>, similar to the double-set you know as Ethereum. It’s an open-source, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-proof-of-stake-pos/">Proof-of-Stake crypto network using <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-are-smart-contracts/">smart contracts<\/strong><\/a> to support its blockchain projects. Mainly, those projects include creating <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-are-dapps-in-crypto/">decentralized applications, or dApps<\/strong><\/a>.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is AVAX: blockchain platform + cryptocurrency.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-avax-01.jpg/" alt=\"What is AVAX: blockchain platform + cryptocurrency.\" width=\"1000\" height=\"302\"><\/p>\n<p><em>Now, admittedly, I’ve just blurted out a lot of industry-specific terminology. If you’re unfamiliar with any of these terms, or would like a refresher, in general, <strong>make sure to check out other chapters of this Crypto 101 Handbook<\/strong> - there are sections covering all of those concepts in detail!<\/em><\/p>\n<p>Like most blockchains, Avalanche also has a native token called AVAX. It serves as a <strong>utility token<\/strong> and has plenty of uses in the Avalanche ecosystem, including <strong>transactions, staking, and governance<\/strong>. But I’ll get to that in a minute; right now, let’s stay with the network itself!<\/p>\n<p>So, like I said, <strong>“open-source” is one of the key terms to describe what is AVAX<\/strong>. Very generally speaking, it refers to data sharing and reciprocal operations.<\/p>\n<p>Let’s say you’re doing a homework assignment requiring a lot of research. However, maybe the topic is super difficult, or maybe there just isn’t enough information online. So, naturally, you call your friend in a panic, asking if they found anything for the assignment, and lo and behold - they didn’t.<\/p>\n<p>Now, you’re wondering if you should quit on the assignment altogether or write a mean letter to the teacher, but in the midst of your frustration, you accidentally find a book with the exact information you need. You’re an awesome friend, so knowing your classmates are also struggling, you go online and upload the info on Wikipedia, then send out the link so that everyone can access it.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is AVAX: Avalanche Network.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-avax-02.jpg/" alt=\"What is AVAX: Avalanche Network.\" width=\"1000\" height=\"815\"><\/p>\n<p>Basically, you make valuable information available to all. <strong>This is what’s called interoperability<\/strong> - what you just did by gathering and sharing that info, so it won’t have to be collected again and is attainable to anyone looking for it.<\/p>\n<p>Wikipedia, in this instance, is an open-source network, allowing anyone to distribute info, change it, and add to what’s important. In the same way, Avalanche allows its users to submit proposals for protocol changes.<\/p>\n<p><strong>Avalanche is known for tackling one of the main problems in crypto: scalability<\/strong>.  The term refers to the network's capability of expanding and meeting the growing demand without declining its core functionality and features.<\/p>\n<p>Let’s get back to the impossible homework example. So, you’re on your computer, researching intensely. You’re only finding tidbits of information on different sites, but they all seem somewhat useful, so you don’t close any of them, only adding more and more tabs on your browser, and your elderly computer is getting kind of tired. It starts wheezing and heating up, unable to handle such pressure.<\/p>\n<p><em>Pretty frustrated with your computer now, huh?<\/em><\/p>\n<p>Well, in the crypto world, <strong>your computer struggling would be called a scaling problem<\/strong>, which many crypto networks face. Crypto activity is largely growing, and many systems are unable to stay fast, cheap, and secure - transactions are declining, the prices are increasing, and the systems keep weakening.<\/p>\n<p>However, <strong>the AVAX Network managed to come up with a solution<\/strong> - a unique system model that allows exceptional functionality, high speed, and low prices. It’s also one of the several things that make Avalanche so unique!<\/p>\n<h2>What Makes Avalanche Network Unique?<\/h2>\n<p>So, moving on, let’s see what’s actually so special about AVAX. It might be a bit difficult to grasp, but I’ll attempt to explain it in the easiest way possible!<\/p>\n<p>First off, subnets! <strong>AVAX subnets are sets of validators working on three individual AVAX blockchain networks <\/strong>that have their own rules and functions, yet remain part of the primary network. It’s like having three employees at the restaurant - a waiter, a chef, and a host. They all have different jobs, but work towards the same goal in the same place, and are all equally important.<\/p>\n<p>To begin with, we have the <strong>X-Chain<\/strong>, known as the Exchange chain. It’s mainly used to <strong>create Avalanche-based tokens<\/strong>, both fungible and non-fungible, or what you might know as <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-non-fungible-token-nft/">NFTs./n

Let’s get right into 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 AVAX? (Avalanche Network Explained With Animations)\"\n title=\"What is AVAX? (Avalanche Network 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: Is Avalanche Network (AVAX) Rightfully Called the Future of DeFi?<\/h4>\n <p class=\"py-1 mb-0 youtube-video-subtitle\">Reading is not your thing? Watch the \"Is Avalanche Network (AVAX) Rightfully Called the Future of DeFi?\" 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=\"VxscXKDAGnk\" data-title=\"CryptoFinallyExplained\">\n <div class=\"video-gradient-top\"><\/div>\n <p class=\"text-left dyk-video-title\">What is AVAX? (Avalanche Network Explained With Animations)<\/p>\n <img data-srcset=\"https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/what-is-avax-avalanche-network-explained-with-animations.jpg?tr=w-420 500w,\n https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/what-is-avax-avalanche-network-explained-with-animations.jpg?tr=w-760 1000w\"\n alt=\"What is AVAX? 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Allow me to explain it in simple terms!<\/p>\n<p><strong>Avalanche Network, or AVAX, is both a blockchain platform and a cryptocurrency<\/strong>, similar to the double-set you know as Ethereum. It’s an open-source, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-proof-of-stake-pos/">Proof-of-Stake crypto network using <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-are-smart-contracts/">smart contracts<\/strong><\/a> to support its blockchain projects. Mainly, those projects include creating <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-are-dapps-in-crypto/">decentralized applications, or dApps<\/strong><\/a>.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is AVAX: blockchain platform + cryptocurrency.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-avax-01.jpg/" alt=\"What is AVAX: blockchain platform + cryptocurrency.\" width=\"1000\" height=\"302\"><\/p>\n<p><em>Now, admittedly, I’ve just blurted out a lot of industry-specific terminology. If you’re unfamiliar with any of these terms, or would like a refresher, in general, <strong>make sure to check out other chapters of this Crypto 101 Handbook<\/strong> - there are sections covering all of those concepts in detail!<\/em><\/p>\n<p>Like most blockchains, Avalanche also has a native token called AVAX. It serves as a <strong>utility token<\/strong> and has plenty of uses in the Avalanche ecosystem, including <strong>transactions, staking, and governance<\/strong>. But I’ll get to that in a minute; right now, let’s stay with the network itself!<\/p>\n<p>So, like I said, <strong>“open-source” is one of the key terms to describe what is AVAX<\/strong>. Very generally speaking, it refers to data sharing and reciprocal operations.<\/p>\n<p>Let’s say you’re doing a homework assignment requiring a lot of research. However, maybe the topic is super difficult, or maybe there just isn’t enough information online. So, naturally, you call your friend in a panic, asking if they found anything for the assignment, and lo and behold - they didn’t.<\/p>\n<p>Now, you’re wondering if you should quit on the assignment altogether or write a mean letter to the teacher, but in the midst of your frustration, you accidentally find a book with the exact information you need. You’re an awesome friend, so knowing your classmates are also struggling, you go online and upload the info on Wikipedia, then send out the link so that everyone can access it.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is AVAX: Avalanche Network.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-avax-02.jpg/" alt=\"What is AVAX: Avalanche Network.\" width=\"1000\" height=\"815\"><\/p>\n<p>Basically, you make valuable information available to all. <strong>This is what’s called interoperability<\/strong> - what you just did by gathering and sharing that info, so it won’t have to be collected again and is attainable to anyone looking for it.<\/p>\n<p>Wikipedia, in this instance, is an open-source network, allowing anyone to distribute info, change it, and add to what’s important. In the same way, Avalanche allows its users to submit proposals for protocol changes.<\/p>\n<p><strong>Avalanche is known for tackling one of the main problems in crypto: scalability<\/strong>.  The term refers to the network's capability of expanding and meeting the growing demand without declining its core functionality and features.<\/p>\n<p>Let’s get back to the impossible homework example. So, you’re on your computer, researching intensely. You’re only finding tidbits of information on different sites, but they all seem somewhat useful, so you don’t close any of them, only adding more and more tabs on your browser, and your elderly computer is getting kind of tired. It starts wheezing and heating up, unable to handle such pressure.<\/p>\n<p><em>Pretty frustrated with your computer now, huh?<\/em><\/p>\n<p>Well, in the crypto world, <strong>your computer struggling would be called a scaling problem<\/strong>, which many crypto networks face. Crypto activity is largely growing, and many systems are unable to stay fast, cheap, and secure - transactions are declining, the prices are increasing, and the systems keep weakening.<\/p>\n<p>However, <strong>the AVAX Network managed to come up with a solution<\/strong> - a unique system model that allows exceptional functionality, high speed, and low prices. It’s also one of the several things that make Avalanche so unique!<\/p>\n<h2>What Makes Avalanche Network Unique?<\/h2>\n<p>So, moving on, let’s see what’s actually so special about AVAX. It might be a bit difficult to grasp, but I’ll attempt to explain it in the easiest way possible!<\/p>\n<p>First off, subnets! <strong>AVAX subnets are sets of validators working on three individual AVAX blockchain networks <\/strong>that have their own rules and functions, yet remain part of the primary network. It’s like having three employees at the restaurant - a waiter, a chef, and a host. They all have different jobs, but work towards the same goal in the same place, and are all equally important.<\/p>\n<p>To begin with, we have the <strong>X-Chain<\/strong>, known as the Exchange chain. It’s mainly used to <strong>create Avalanche-based tokens<\/strong>, both fungible and non-fungible, or what you might know as <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-non-fungible-token-nft/">NFTs./n

The second one is called <strong>C-Chain, or the Contract chain<\/strong>. It’s super important that you know what is AVAX C-Chain! This one is <strong>responsible for hosting smart contracts and enabling the functionality of dApps<\/strong>. In this case, C-Chain is probably the restaurant's chef, the key to the whole operation.<\/p>\n<p>Finally, we have the <strong>P-Chain or the Platform chain<\/strong>, which manages the validators. Similarly to other crypto networks, P-Chain allows you to <strong>stake <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-avalanche-avax/">AVAX tokens and easily become a transaction validator<\/strong>. Which brings me to my next point!<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is AVAX: what makes Avalanche Network Unique?\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-avax-03.jpg/" alt=\"What is AVAX: what makes Avalanche Network Unique?\" width=\"1000\" height=\"334\"><\/p>\n<p>Avalanche uses a model called “<strong>Subsampled Voting<\/strong>.” Basically, it means that there’s a large number of volunteers who get randomly asked to check some things on the network and reach a unanimous answer.<\/p>\n<p>For example - <strong>the validity of a transaction<\/strong>. A random group of users is asked whether the transaction should be accepted or rejected after the system initially chose to validate it.<\/p>\n<p>What happens next is called <strong>network gossiping<\/strong>. <em>Quite an amusing name, right?<\/em> Basically, the participants get together to exchange information and opinions until reaching a consensus to accept or deny the transaction.<\/p>\n<p>What makes AVAX’s validation system so special is that unlike with <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-proof-of-work-pow/">Proof-of-Work or other <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-proof-of-stake-pos/">Proof-of-Stake mechanisms, <strong>the number of nodes, or validators, is irrelevant - the consensus will still be reached<\/strong>.<\/p>\n<p>Another thing to add to answering what is AVAX is its <strong>unusual design<\/strong>. As you’ve probably gathered, AVAX is powered by, well, AVAX, the network’s native token. But what else?<\/p>\n<p><strong>Slush, Snowflake, Snowball, and Avalanche<\/strong>! Did you just imagine a crew of four superhero penguins in a cartoon? Well, the crew is actually called <strong>the Snow family<\/strong>, and they are not superhero penguins, but the four mechanisms of the Avalanche protocol. Basically, these four are what you get from combining the Classical consensus and the Nakamoto consensus, as I mentioned in the beginning.<\/p>\n<p>Imagine you’re designing the newest iPhone. You want it to be optimized and the best variation there has ever been, of course. So, you take the key functions of the earlier iPhones that still resonate with Apple users, and add the newest features, so that the phone is still familiar, but also up-to-date, too.<\/p>\n<p><strong>The Snow family combo and unique Avalanche protocol are what made the network secure and easy to scale<\/strong>, eventually leading it to be one of the major crypto sensations.<\/p>\n<h2>Why Does it Rival Ethereum?<\/h2>\n<p>But does that sensation really pose a threat to the most widespread and usable network of all? The so-called “Global Computer”, Ethereum? <em>Which, by the way, I have a <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-ethereum/">whole separate section about<\/strong><\/a>, so I suggest you check it out!<\/em><\/p>\n<p>We all know that Ethereum has some fancy names associated with it, like the aforementioned “<strong>Global Computer<\/strong>” or “<strong>Blockchain 2.0<\/strong>”. However, Avalanche, true to its name, has been crashing down on the cryptocurrency world with an even more forceful label - “the future of DeFi”.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is AVAX: ERC-20.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-avax-04.jpg/" alt=\"What is AVAX: ERC-20.\" width=\"1000\" height=\"1209\"><\/p>\n<p>Quite a majestic name, right? Well, with its unique features, improved protocols, and enormous scalability, the system truly threatens to become “<strong>Blockchain 3.0<\/strong>”. And if you’re still doubtful, or still question what is AVAX compared to Ethereum, just allow me to name some basic differences between the two.<\/p>\n<p>First of all, <strong>Avalanche claims much faster transaction speeds<\/strong> - in one second, AVAX is theoretically able to carry out more than 6,500 transactions, whereas Ethereum can only handle 15. Also, on AVAX, <strong>transactions are usually finalized in under three seconds<\/strong>.<\/p>\n<p>Next up, considering DeFi usability, it’s kind of hard to say which is better. For now, sure, <strong>Ethereum is much more popular and accepted<\/strong>. The years of trust and high-profile project development did their thing, but with the speed at which Avalanche is growing, ETH is surely facing some serious competition!<\/p>\n<p><strong>The Avalanche Network is also much harder to attack<\/strong>. I won’t delve into the technicalities, but in short, it would take the attacker controlling 51% of staked assets to breach Ethereum - for AVAX, that number goes up to about 80%.<\/p>\n<p><strong>Token-wise, <a href=https://www.bitdegree.org/"//crypto//buy-ethereum-eth/">ETH is winning, of course<\/strong>. It’s hard to replace the second most popular cryptocurrency, after all! However, speaking of tokens, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-avalanche-avax/">AVAX lacks something that ultimately puts Ethereum forward. <strong>It’s not compatible with the <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-erc-20/">ERC-20 standard<\/strong>. Let me explain.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is AVAX: wrapped AVAX.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-avax-05.jpg/" alt=\"What is AVAX: wrapped AVAX.\" width=\"1000\" height=\"951\"><\/p>\n<p>Let’s say you acquire some AVAX coins. You may want to use them on a crypto application like <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-aave-crypto/">AAVE, which is basically just a platform that allows you to earn interest by lending your crypto. However, AAVE is based on the Ethereum blockchain, and <strong>it won’t allow you to do anything with your AVAX, since it’s not compatible with the token standard of ETH, called ERC-20<\/strong>.<\/p>\n<p>Defeat? No! You’ll just have to <strong>wrap up your AVAX<\/strong>. But what is wrapped AVAX, then? Actually, “wrapped tokens” are a bit of a complicated topic, but for now, I’ll explain it shortly.<\/p>\n<p>Let’s say you decide to go diving. Obviously, you won’t plunge into the deep end with your trunks and nothing else - you need a diver’s suit for protection and oxygen. So, the suit serves as a tool to help you navigate an environment that’s completely alien to you. Right?<\/p>\n<p>Well, the same can be said about wrapped tokens, as well. <strong>Wrapped tokens are a means to communicate between blockchains<\/strong>, so that you could use equivalent native assets of a specific protocol on other, non-compatible ones.<\/p>\n<h2>Wrapping Up<\/h2>\n<p>Now, I have to admit - answering the question of what is AVAX and presenting the many intricacies it has can be a challenge, but let’s recap what we know so far.<\/p>\n<p><strong>Avalanche takes the general trilemma of scalability, security, and decentralization, and addresses it all with its<\/strong> <strong>multi-chain design and a unique consensus mechanism<\/strong> - becoming a breath of fresh air in the crypto space! Also, it has its very own native token, AVAX, which you can actually find on your usual crypto exchanges, like <a href=https://www.bitdegree.org/"//crypto//goon//binance/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Binance<\/strong><\/a> or <a href=https://www.bitdegree.org/"//crypto//goon//coinbase/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Coinbase<\/strong><\/a>.<\/p>\n<p>In the end, though, Avalanche has many more attributes that are a bit too complicated to tackle in one short section.<\/p>","youtube_video":{"id":107,"channel_id":1,"sort":14,"video_title":"What is AVAX? (Avalanche Network Explained With Animations)","description":"What is AVAX? What is Avalanche Network?\n\nIf you're new to the crypto sphere, AVAX may sound like yet another crypto project. Yet, AVAX is something more. AVAX embodies a new, revolutionary blockchain protocol. And its importance can be illustrated by the fact that AVAX is considered to be among the biggest competitors to such giants as Ethereum.\n\nIn this video, I\u2019ll explain what is AVAX, what is AVAX C-Chain, and what conceptual approach made AVAX so distinct and unique. To explain every detail without missing anything important, I'll rely on real life examples, analogies, and practical instances. You'll understand what makes AVAX so unique and, therefore, important in the DeFi world.\n\nDo you have any experience with AVAX? Do you agree it's one of the main competitors to Ethereum? Share your experience and insights in the comment section below!\n\nVideo Time Table:\n\n0:00 Introduction to What is AVAX\n0:59 What is AVAX?\n3:51 What Makes the Avalanche Network Unique?\n6:42 Why Does it Rival Ethereum?\n9:14 Wrap-up: What is AVAX?\n\nGet Quick Crypto Tips on Twitter - Follow:\nhttps:\/\/twitter.com\/crypto_xplained\n\n#Avax #AvaxCoin #AvalancheNetwork","video_id":"VxscXKDAGnk","duration":596,"view_count":252,"thumbnail_url":"https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/what-is-avax-avalanche-network-explained-with-animations.jpg","thumbnail_width":1280,"thumbnail_height":720,"published_at":"2023-08-14T15:05:28.000000Z","created_at":"2023-08-14T23:00:14.000000Z","updated_at":"2024-01-09T23:00:03.000000Z","channel":{"id":1,"title":"CryptoFinallyExplained","channel_id":"UCOryUY0yxC08eJtK23mNgiA","main_playlist_id":"UUOryUY0yxC08eJtK23mNgiA"}}}" :prev-section="{"id":615,"chapter_id":2,"order":16,"featured_image_id":4860,"youtube_video_id":100,"author_id":4,"created_at":"2023-08-08T14:52:26.000000Z","updated_at":"2023-12-28T17:25:24.000000Z","slug":"what-is-algorand-crypto","title":"Did Algorand Truly Solve the Blockchain Trilemma?","content":"<p>In this section, I’m going to answer the question of <strong>“What is Algorand crypto?”, explain what is <a href=https://www.bitdegree.org/"//crypto//buy-algorand-algo/">ALGO coin, and we’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’s a reason why ALGO is, and has persistently stayed, on the list of top cryptocurrencies for years. It’s not merely a faceless cryptocurrency, after all.<br> <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’s even been dubbed “The Ethereum Killer”<\/strong>! You’re about to learn why.<\/p>\n<p>In this section, we’re going to dive into the Algorand universe and answer the question of “What is Algorand crypto?”. Then, we’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’s get to it!<\/em><\/p>\n<h2>What is Algorand Crypto?<\/h2>\n<p>You couldn’t say that Algorand had humble beginnings, since it wasn’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: “<em>a world where everyone creates and exchanges value efficiently, transparently, and securely.<\/em>”<\/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’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 “What is Algorand crypto?”<\/p>\n<p>One way of rising to prominence and achieving such aims was Algorand's commitment to transparency and collaboration. <strong>It’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’ll find it in the Algorand land. <strong>The number of these active projects is over 700<\/strong>, and it’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’s something else that makes Algorand different from other mainstream blockchain projects. It’s the <strong>consensus mechanism<\/strong> that supports the Algorand system, and defines the answer to the question “What is Algorand crypto?”<\/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’s just like the rules of a game, let’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’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’ve mentioned earlier, Algorand was dubbed as the potential “<strong>Ethereum Killer<\/strong>.” 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 “<strong>Blockchain Trilemma<\/strong>.” 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 “Blockchain Trilemma” 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’s a simple analogy<\/strong>. In life, most people can’t have all three of these luxuries at once: time, money, and energy. Young people may have time and energy, yet they aren’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’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’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. 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’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’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’s <strong>open-source approach ensured transparency and collective participation<\/strong>.<\/p>\n<p>Algorand’s outspoken way of approaching this fundamental problem caught the community’s attention. Such innovative and daring decisions were the reasons behind the project’s success and the blockchain being branded as the potential “Ethereum Killer.”<\/p>\n<h2>What is ALGO coin?<\/h2>\n<p>By now, the question of “What is Algorand crypto?” is partially answered. But in order to see the whole picture, it’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 “algo” means “something.” But in crypto… 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’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 “What is Algorand crypto?” and “What is Algorand coin?” have been settled. <strong>It’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’m going to answer the question of <strong>“What is Algorand crypto?”, explain what is <a href=https://www.bitdegree.org/"//crypto//buy-algorand-algo/">ALGO coin, and we’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’s a reason why ALGO is, and has persistently stayed, on the list of top cryptocurrencies for years. It’s not merely a faceless cryptocurrency, after all.<br> <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’s even been dubbed “The Ethereum Killer”<\/strong>! You’re about to learn why.<\/p>\n<p>In this section, we’re going to dive into the Algorand universe and answer the question of “What is Algorand crypto?”. Then, we’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’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’t say that Algorand had humble beginnings, since it wasn’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: “<em>a world where everyone creates and exchanges value efficiently, transparently, and securely.<\/em>”<\/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’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 “What is Algorand crypto?”<\/p>\n<p>One way of rising to prominence and achieving such aims was Algorand's commitment to transparency and collaboration. <strong>It’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’ll find it in the Algorand land. <strong>The number of these active projects is over 700<\/strong>, and it’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’s something else that makes Algorand different from other mainstream blockchain projects. It’s the <strong>consensus mechanism<\/strong> that supports the Algorand system, and defines the answer to the question “What is Algorand crypto?”<\/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’s just like the rules of a game, let’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’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’ve mentioned earlier, Algorand was dubbed as the potential “<strong>Ethereum Killer<\/strong>.” 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 “<strong>Blockchain Trilemma<\/strong>.” 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 “Blockchain Trilemma” 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’s a simple analogy<\/strong>. In life, most people can’t have all three of these luxuries at once: time, money, and energy. Young people may have time and energy, yet they aren’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’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’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. 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’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’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’s <strong>open-source approach ensured transparency and collective participation<\/strong>.<\/p>\n<p>Algorand’s outspoken way of approaching this fundamental problem caught the community’s attention. Such innovative and daring decisions were the reasons behind the project’s success and the blockchain being branded as the potential “Ethereum Killer.”<\/p>\n<h2>What is ALGO coin?<\/h2>\n<p>By now, the question of “What is Algorand crypto?” is partially answered. But in order to see the whole picture, it’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 “algo” means “something.” But in crypto… 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’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 “What is Algorand crypto?” and “What is Algorand coin?” have been settled. <strong>It’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"}}}" :model="{"id":616,"chapter_id":2,"order":17,"featured_image_id":4871,"youtube_video_id":102,"author_id":4,"created_at":"2023-08-09T06:44:41.000000Z","updated_at":"2023-12-28T19:50:12.000000Z","slug":"what-is-olympus-dao","title":"Does Olympus DAO Have Anything to Do With Mythology?","content":"<p>In this section, we’ll find out the answers to questions like <strong>“What is Olympus DAO?”, “What network is Olympus DAO on?” and “What is <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//cryptocurrency-prices//olympus-ohm-price/">OHM crypto?”<\/strong><\/p>\n<p>If you’re new to the crypto scene, understanding Olympus DAO may seem similar to climbing the actual Mount Olympus! There are many attempts at explaining Olympus DAO in a simplified manner, but a lot of them may seem a bit too confusing for those who lack knowledge about the general <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-defi/">DeFi landscape<\/strong><\/a>. But once you get past the first step, you begin to understand why Olympus DAO is commonly viewed as one of the most innovative and promising DeFi projects that there is.<\/p>\n<p>When it comes to Olympus DAO, you get to face many challenging concepts. <strong>From reserve currency to <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-are-stablecoins/">stablecoins, from DeFi protocols to <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-staking-in-crypto/">staking, Olympus DAO encompasses seemingly everything! Therefore, understanding Olympus DAO gives you a better view of the overall land of crypto, as well. Just as if you were observing it from the top of Mount Olympus!<\/p>\n<p>In this section, I'll answer the big questions of “What is Olympus DAO?” and “What is OHM crypto?”, as well as take a look into fascinating ways of how does OHM work crypto. And, in the process of doing so, I’ll explain every term that could appear confusing!<\/p>\n<p><em>It’s gonna be quite a ride, so brace yourselves, and let’s kick it off!<\/em><\/p>\n<h2>What is Olympus DAO?<\/h2>\n<p>Created in 2021, Olympus DAO is a relatively new project. <strong>It was conceived after a realization that the entire crypto market relies too heavily on fiat-backed stablecoins<\/strong>. This was a problem. Thus, one anonymous developer decided to attempt to solve it. It’s a quest of almost mythological proportions, but the developer understood the market’s need for it and had the confidence to attempt it. Also, they had a very appropriate pseudonym for doing so –<strong> Zeus<\/strong>.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Olympus DAO: anonymous.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-olympus-dao-01.jpg/" alt=\"What is Olympus DAO: anonymous.\" width=\"1000\" height=\"514\"><\/p>\n<p>But, as you can see, this is a rather high-tech project - we’ve just started, but I’ve already mentioned three concepts that require some extra attention. These concepts are <strong>DAO, fiat, and stablecoins<\/strong>. In order to fully understand what is Olympus DAO, we must make sure everything is clear.<\/p>\n<p>First of all, <strong>a DAO, or Decentralized Autonomous Organization<\/strong>, represents a self-governing entity powered by blockchain technology, where decision-making processes and governance structures are decentralized and governed without a central authority. DAOs enable participants to collectively make decisions, manage resources, and shape the direction of the organization through a consensus-driven approach.<\/p>\n<p><em>There's an entire <strong><a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-a-dao-in-crypto/">section about DAOs<\/a><\/strong>, be sure to check it out!<\/em><\/p>\n<p>Now, <strong>fiat refers to traditional currencies issued and regulated by governments<\/strong>, such as the US dollar or the Euro. In the context of crypto, fiat often serves as a benchmark or reference point for value comparison. It provides a means for users to evaluate the worth of cryptocurrencies, facilitating conversions, trading, and the establishment of value within the broader crypto ecosystem.<\/p>\n<p>The notion of fiat remains relevant as a reference point and a bridge between the traditional financial system and the evolving world of digital assets.<\/p>\n<p>And when it comes to a <strong>stablecoin, it’s a type of digital asset designed to maintain a stable value<\/strong>, typically pegged to a specific reserve asset like a fiat currency or a commodity. Unlike other cryptocurrencies, stablecoins aim to mitigate the volatility that often characterizes the crypto market.<\/p>\n<p><em>Once again, there's a <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-are-stablecoins/">separate section about this topic<\/strong><\/a>, so if you feel unsure, check it out!<\/em><\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Olympus DAO: OHM.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-olympus-dao-02.jpg/" alt=\"What is Olympus DAO: OHM.\" width=\"1000\" height=\"572\"><\/p>\n<p>Having established a clear definition of these concepts, it’s easier to understand what I meant when I said that <strong>Olympus DAO was created to solve the problem of the cryptocurrency market being too reliant on fiat-backed stablecoins<\/strong>. Now, let's go deeper and actually answer the questions of “What is Olympus DAO crypto?” and “What is OHM crypto?”<\/p>\n<p>So, Olympus DAO is an innovative Decentralized Autonomous Organization that operates on the <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-ethereum/">Ethereum blockchain<\/strong><\/a>. At its core, OlympusDAO seeks to establish a protocol where a <strong>native cryptocurrency, known as <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//cryptocurrency-prices//olympus-ohm-price/">OHM, can thrive and serve as a stable store of value.<\/p>\n<p><em>Wait a minute. What’s a protocol?<\/em><\/p>\n<p>A protocol refers to a <strong>set of rules and specifications that govern how different components within a blockchain ecosystem interact with each other<\/strong>. Just like a language that enables communication, a crypto protocol establishes the framework for the seamless functioning and coordination of various participants within a decentralized network.<\/p>\n<p>So, when we’re talking about Olympus DAO, we’re talking about a <strong>creation of a whole new set of rules that would redefine the entire DeFi game when it comes to maintaining a stable value<\/strong>.<\/p>\n<p>The fundamental concept behind Olympus DAO lies in the reimagining of <strong>reserve assets<\/strong>. Instead of relying on traditional fiat-backed or algorithmic approaches (like <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-luna-crypto/">Terra LUNA<\/strong><\/a> did), OlympusDAO introduces a rather revolutionary mechanism called \"<strong>The treasury model<\/strong>.\" This model employs a <strong>combination of bonding, rebasing, and liquidity provision <\/strong>to create a resilient ecosystem.<\/p>\n<p><em>Okay… Once again… What do these terms mean?<\/em><\/p>\n<p><em><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Olympus DAO: bonding.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-olympus-dao-03.jpg/" alt=\"What is Olympus DAO: bonding.\" width=\"1000\" height=\"598\"><\/em><\/p>\n<p>Firstly, <strong>\"bonding\" refers to the process where participants lock their assets, such as stablecoins or cryptocurrencies, within the OlympusDAO protocol in exchange for OHM tokens<\/strong>, the protocol’s native tokens. By bonding their assets, participants contribute to the liquidity and stability of the ecosystem, supporting the value of OHM as a reserve asset.<\/p>\n<p>Next, <strong>\"rebase\" represents a unique mechanism employed by OlympusDAO to automatically adjust the supply of OHM based on market price movements<\/strong>. Through this process, the supply of OHM expands or contracts, aiming to maintain stability around a target price known as the \"reserve currency.\" This innovative approach mitigates volatility risks and ensures the stability of OHM as a store of value. <em>By the way, if you feel confused, we’ll look deeper into this aspect in a moment!<\/em><\/p>\n<p>Lastly, <strong>\"liquidity provision\" involves the act of supplying assets to decentralized exchanges or liquidity pools within the OlympusDAO ecosystem<\/strong>. By providing liquidity, participants enhance the efficiency and depth of the market, enabling smooth trading and the seamless exchange of assets within the protocol.<\/p>\n<p>These three components - bonding, rebasing, and liquidity provision - work harmoniously to foster a resilient ecosystem within Olympus DAO. They empower participants to actively contribute to the stability, liquidity, and growth of the protocol, creating an environment where OHM can thrive as a sustainable reserve asset.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Olympus DAO: decentralized, democratic project.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-olympus-dao-04.jpg/" alt=\"What is Olympus DAO: decentralized, democratic project.\" width=\"1000\" height=\"527\"><\/p>\n<p>Well, I told you that understanding Olympus DAO is like climbing up the actual mountain! But don’t worry, eventually, once you get to the top of it and see the view over the DeFi world, that makes it all worth it! Okay, back to answering the question, “What is Olympus DAO crypto?”<\/p>\n<p>At the heart of the Olympus DAO model lies the OHM token. <strong>OHM functions as<\/strong> <strong>both a reserve asset and a governance token<\/strong>, conferring voting rights to its holders, allowing them to actively shape the future direction of the protocol. Remember - that’s where the “DAO” in “Olympus DAO'' comes from! It’s a <strong>decentralized, democratic project<\/strong>!<\/p>\n<p>And this community-driven governance isn’t just a “feature.” It’s one of the distinguishing aspects of the OlympusDAO project. <strong>OHM token holders have the power to shape the trajectory of the protocol<\/strong>, proposing and voting on various upgrades, enhancements, and policy changes. This decentralized governance framework ensures a collective decision-making process that aligns with the interests of the community.<\/p>\n<p><em>So… I hope you’re not out of breath, because our hike to the top of the Olympus DAO mountain isn’t over yet!<\/em><\/p>\n<h2>What is OHM Crypto?<\/h2>\n<p>Okay, usually, I try not to talk about different concepts, such as Olympus DAO and OHM, at once. But in this case, while presenting the answer to the “What is Olympus DAO crypto?” question, I’ve already mentioned its native cryptocurrency OHM more than once. It’s because, otherwise, the answer to the question wouldn’t have sufficed! But OHM requires a bit more attention.<\/p>\n<p>OHM, also referred to as the “Olympus DAO token” or “OHM Olympus coin” is the<strong> native token of Olympus DAO<\/strong>. It holds a unique position within the crypto industry, bringing forth innovative tokenomics and contributing to the evolution of the overall ecosystem.<\/p>\n<p>The uniqueness of OHM lies in its role as a <strong>reserve asset<\/strong>. Unlike traditional stablecoins backed by fiat or algorithmic mechanisms, OHM derives its stability from the <strong>OlympusDAO treasury's reserves and a robust stability mechanism<\/strong>. This approach creates a self-sustaining ecosystem, where OHM acts as a stable store of value, resistant to external market fluctuations.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Olympus DAO: reserve asset.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-olympus-dao-05.jpg/" alt=\"What is Olympus DAO: reserve asset.\" width=\"1000\" height=\"530\"><\/p>\n<p>You see, when you realize what’s the entire point behind OHM’s creation, you start understanding why it’s called OHM. It sounds very similar to “Om,” which, according to ancient Hindu scriptures, is the <strong>sacred sound of the universe, a.k.a. the sound of everlastingness<\/strong>. Which, indeed, sounds pretty stable, and that’s what Olympus DAO is after!<\/p>\n<p>In its unique approach, OHM has contributed to the improvement of the crypto industry by introducing novel concepts, such as treasury-based stability models and community-centric governance. By providing an alternative to traditional reserve assets and centralized decision-making structures, OHM showcases the potential for decentralized and sustainable financial systems.<\/p>\n<h2>Olympus Treasury<\/h2>\n<p>By now, we have established what makes Olympus DAO and OHM so ambitious and outstanding. But let’s take a closer look at <strong>how this reserve currency works<\/strong>. And, what is a reserve currency, after all?<\/p>\n<p><em>So, first of all, let's demystify the concept.<\/em><\/p>\n<p>In short, a reserve currency refers to a <strong>widely accepted and held currency by central banks and international institutions as a means to facilitate international transactions, store value, and maintain stability in the global financial system<\/strong>.<\/p>\n<p>A reserve currency holds a special status, often being used as a benchmark for exchange rates and serving as a preferred medium for settling international debts. It plays a crucial role in facilitating trade, investment, and financial activities on a global scale.<\/p>\n<p>The primary reserve currency historically has been the US dollar, but other currencies like the euro, yen, and pound sterling have also served as reserve currencies to varying degrees. The designation of a reserve currency is influenced by factors such as a <strong>country's economic strength, political stability, and the depth and liquidity of its financial markets<\/strong>.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Olympus DAO: reserve currency.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-olympus-dao-06.jpg/" alt=\"What is Olympus DAO: reserve currency.\" width=\"1000\" height=\"513\"><\/p>\n<p>In the context of cryptocurrencies, the emergence of reserve currencies like OHM within decentralized systems offers a new perspective. These reserve currencies <strong>aim to provide<\/strong> <strong>stability and a means for the store of value within the crypto ecosystem<\/strong>, creating a self-sustaining framework that operates independently of traditional fiat currencies.<\/p>\n<p><em>And OHM does that, thanks to the Olympus Treasury.<\/em><\/p>\n<p>The Olympus Treasury lies at the heart of OlympusDAO, serving as a vital component that underpins the stability and value of the OHM reserve currency. <strong>It is a pool of assets composed of more than $200M worth of crypto assets that are held within the protocol<\/strong>. This treasury forms the backbone of the ecosystem, providing the necessary reserves to support the stability and value of OHM.<\/p>\n<p><em>But how does this OHM reserve currency actually work?<\/em> Well, the OHM reserve currency is the target price at which the Olympus DAO protocol strives to maintain stability. It represents the ideal value for OHM, acting as a reliable store of value within the ecosystem.<\/p>\n<p><strong>To achieve this stability, the OlympusDAO protocol implements a unique mechanism<\/strong>. When the price of OHM rises above the target, new OHM tokens are minted and added to the treasury, expanding the supply. Conversely, when the price falls below the target, the previously mentioned process of \"bonding\" occurs, where participants can bond their assets to receive OHM, reducing the supply.<\/p>\n<p>This creates a feedback loop between the treasury and the supply of OHM, enabling the protocol to <strong>automatically adjust and maintain stability<\/strong>. By expanding or contracting the supply in response to market conditions, the OlympusDAO ecosystem aims to keep the OHM reserve currency closely aligned with its target value, fostering confidence for participants.<\/p>\n<h2>Criticism<\/h2>\n<p>At this point, it may seem that Olympus DAO is, without a doubt, the winner’s choice. But, as it’s the case with all things in life, everything has two sides to it. And Olympus DAO is far from being immune to skepticism.<\/p>\n<p><strong>This project has been accused of being a <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-ponzi-scheme/">Ponzi scheme<\/a><\/strong>, simply due to their staking system being perceived as unsustainable to the point of being unreliable, and, therefore, fraudulent. Such criticism stems from the conviction that high-yield investment programs are doomed to fail, and, therefore, people shouldn’t turn their guard off when it comes to trusting financial projects.<\/p>\n<p>The room for doubt is created not only by the project’s innovative, therefore, yet-to-be-tested tokenomics, but by the fact that the idea of being pseudo-anonymous is practiced within the Olympus DAO management. Zeus, the creator of the whole thing, is an example. <strong>Critics would ask: “Why hide your identity, if everything’s so brilliant?”<\/strong><\/p>\n<p>The thing is simple. Olympus DAO truly stands out for their groundbreaking, never-seen-before solutions and thinking forwards. Yet, when it comes to crypto, sometimes things turn out to be less robust and failure-proof when something unexpected happens.<\/p>\n<h2>Wrapping Up<\/h2>\n<p>Finally, we have reached the mountain top! By now, the questions of “What is Olympus DAO?”, “What is OHM crypto?”, and even “What network is Olympus DAO on?” have been answered. I told you - <strong>understanding this concept can get a bit daunting<\/strong>. But if you don’t skip any key points, don’t ignore essential terminology, and stay attentive, the clouds evaporate, and things become much clearer.<\/p>\n<p>And by now, it’s easy to summarize the fact that <strong>Olympus DAO has contributed to the broader DeFi landscape by offering an alternative store of value and stability within an ecosystem driven by community governance<\/strong>. This pioneering approach has garnered attention, sparked conversations, and paved the way for further exploration and innovation in the sphere of cryptocurrencies and decentralized systems.<\/p>","definition":"Did you know that the Olympus DAO project's creator goes under the pseudonym Zeus?","status":"published","meta_title":"What is Olympus DAO?","meta_description":"If you want to know what is Olympus DAO or what is Olympus DAO coin, you're in the right place! Find out all there is to know about it here!","meta_keywords":"what is olympus dao, what is ohm crypto, how does ohm work crypto, what network is olympus dao on, olympus dao token, ohm olympus coin","modified_content":"<p>In this section, we’ll find out the answers to questions like <strong>“What is Olympus DAO?”, “What network is Olympus DAO on?” and “What is <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//cryptocurrency-prices//olympus-ohm-price/">OHM crypto?”<\/strong><\/p>\n<p>If you’re new to the crypto scene, understanding Olympus DAO may seem similar to climbing the actual Mount Olympus! There are many attempts at explaining Olympus DAO in a simplified manner, but a lot of them may seem a bit too confusing for those who lack knowledge about the general <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-defi/">DeFi landscape<\/strong><\/a>. But once you get past the first step, you begin to understand why Olympus DAO is commonly viewed as one of the most innovative and promising DeFi projects that there is.<\/p>\n<p>When it comes to Olympus DAO, you get to face many challenging concepts. <strong>From reserve currency to <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-are-stablecoins/">stablecoins, from DeFi protocols to <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-staking-in-crypto/">staking, Olympus DAO encompasses seemingly everything! Therefore, understanding Olympus DAO gives you a better view of the overall land of crypto, as well. Just as if you were observing it from the top of Mount Olympus!<\/p>\n<p>In this section, I'll answer the big questions of “What is Olympus DAO?” and “What is OHM crypto?”, as well as take a look into fascinating ways of how does OHM work crypto. And, in the process of doing so, I’ll explain every term that could appear confusing!<\/p>\n<p><em>It’s gonna be quite a ride, so brace yourselves, and let’s kick it off!<\/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 Olympus DAO? (OHM Crypto Animated Explainer)\"\n title=\"What is Olympus DAO? (OHM Crypto Animated 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: Does Olympus DAO Have Anything to Do With Mythology?<\/h4>\n <p class=\"py-1 mb-0 youtube-video-subtitle\">Reading is not your thing? Watch the \"Does Olympus DAO Have Anything to Do With Mythology?\" 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=\"fz-tp2buABg\" data-title=\"CryptoFinallyExplained\">\n <div class=\"video-gradient-top\"><\/div>\n <p class=\"text-left dyk-video-title\">What is Olympus DAO? (OHM Crypto Animated Explainer)<\/p>\n <img data-srcset=\"https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/what-is-olympus-dao-ohm-crypto-animated-explainer.jpg?tr=w-420 500w,\n https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/what-is-olympus-dao-ohm-crypto-animated-explainer.jpg?tr=w-760 1000w\"\n alt=\"What is Olympus DAO? (OHM Crypto Animated Explainer)\"\n title=\"What is Olympus DAO? (OHM Crypto Animated 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 Olympus DAO? (OHM Crypto Animated 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 Olympus DAO?<\/h2>\n<p>Created in 2021, Olympus DAO is a relatively new project. <strong>It was conceived after a realization that the entire crypto market relies too heavily on fiat-backed stablecoins<\/strong>. This was a problem. Thus, one anonymous developer decided to attempt to solve it. It’s a quest of almost mythological proportions, but the developer understood the market’s need for it and had the confidence to attempt it. Also, they had a very appropriate pseudonym for doing so –<strong> Zeus<\/strong>.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Olympus DAO: anonymous.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-olympus-dao-01.jpg/" alt=\"What is Olympus DAO: anonymous.\" width=\"1000\" height=\"514\"><\/p>\n<p>But, as you can see, this is a rather high-tech project - we’ve just started, but I’ve already mentioned three concepts that require some extra attention. These concepts are <strong>DAO, fiat, and stablecoins<\/strong>. In order to fully understand what is Olympus DAO, we must make sure everything is clear.<\/p>\n<p>First of all, <strong>a DAO, or Decentralized Autonomous Organization<\/strong>, represents a self-governing entity powered by blockchain technology, where decision-making processes and governance structures are decentralized and governed without a central authority. DAOs enable participants to collectively make decisions, manage resources, and shape the direction of the organization through a consensus-driven approach.<\/p>\n<p><em>There's an entire <strong><a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-a-dao-in-crypto/">section about DAOs<\/a><\/strong>, be sure to check it out!<\/em><\/p>\n<p>Now, <strong>fiat refers to traditional currencies issued and regulated by governments<\/strong>, such as the US dollar or the Euro. In the context of crypto, fiat often serves as a benchmark or reference point for value comparison. It provides a means for users to evaluate the worth of cryptocurrencies, facilitating conversions, trading, and the establishment of value within the broader crypto ecosystem.<\/p>\n<p>The notion of fiat remains relevant as a reference point and a bridge between the traditional financial system and the evolving world of digital assets.<\/p>\n<p>And when it comes to a <strong>stablecoin, it’s a type of digital asset designed to maintain a stable value<\/strong>, typically pegged to a specific reserve asset like a fiat currency or a commodity. Unlike other cryptocurrencies, stablecoins aim to mitigate the volatility that often characterizes the crypto market.<\/p>\n<p><em>Once again, there's a <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-are-stablecoins/">separate section about this topic<\/strong><\/a>, so if you feel unsure, check it out!<\/em><\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Olympus DAO: OHM.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-olympus-dao-02.jpg/" alt=\"What is Olympus DAO: OHM.\" width=\"1000\" height=\"572\"><\/p>\n<p>Having established a clear definition of these concepts, it’s easier to understand what I meant when I said that <strong>Olympus DAO was created to solve the problem of the cryptocurrency market being too reliant on fiat-backed stablecoins<\/strong>. Now, let's go deeper and actually answer the questions of “What is Olympus DAO crypto?” and “What is OHM crypto?”<\/p>\n<p>So, Olympus DAO is an innovative Decentralized Autonomous Organization that operates on the <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-ethereum/">Ethereum blockchain<\/strong><\/a>. At its core, OlympusDAO seeks to establish a protocol where a <strong>native cryptocurrency, known as <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//cryptocurrency-prices//olympus-ohm-price/">OHM, can thrive and serve as a stable store of value.<\/p>\n<p><em>Wait a minute. What’s a protocol?<\/em><\/p>\n<p>A protocol refers to a <strong>set of rules and specifications that govern how different components within a blockchain ecosystem interact with each other<\/strong>. Just like a language that enables communication, a crypto protocol establishes the framework for the seamless functioning and coordination of various participants within a decentralized network.<\/p>\n<p>So, when we’re talking about Olympus DAO, we’re talking about a <strong>creation of a whole new set of rules that would redefine the entire DeFi game when it comes to maintaining a stable value<\/strong>.<\/p>\n<p>The fundamental concept behind Olympus DAO lies in the reimagining of <strong>reserve assets<\/strong>. Instead of relying on traditional fiat-backed or algorithmic approaches (like <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-luna-crypto/">Terra LUNA<\/strong><\/a> did), OlympusDAO introduces a rather revolutionary mechanism called \"<strong>The treasury model<\/strong>.\" This model employs a <strong>combination of bonding, rebasing, and liquidity provision <\/strong>to create a resilient ecosystem.<\/p>\n<p><em>Okay… Once again… What do these terms mean?<\/em><\/p>\n<p><em><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Olympus DAO: bonding.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-olympus-dao-03.jpg/" alt=\"What is Olympus DAO: bonding.\" width=\"1000\" height=\"598\"><\/em><\/p>\n<p>Firstly, <strong>\"bonding\" refers to the process where participants lock their assets, such as stablecoins or cryptocurrencies, within the OlympusDAO protocol in exchange for OHM tokens<\/strong>, the protocol’s native tokens. By bonding their assets, participants contribute to the liquidity and stability of the ecosystem, supporting the value of OHM as a reserve asset.<\/p>\n<p>Next, <strong>\"rebase\" represents a unique mechanism employed by OlympusDAO to automatically adjust the supply of OHM based on market price movements<\/strong>. Through this process, the supply of OHM expands or contracts, aiming to maintain stability around a target price known as the \"reserve currency.\" This innovative approach mitigates volatility risks and ensures the stability of OHM as a store of value. <em>By the way, if you feel confused, we’ll look deeper into this aspect in a moment!<\/em><\/p>\n<p>Lastly, <strong>\"liquidity provision\" involves the act of supplying assets to decentralized exchanges or liquidity pools within the OlympusDAO ecosystem<\/strong>. By providing liquidity, participants enhance the efficiency and depth of the market, enabling smooth trading and the seamless exchange of assets within the protocol.<\/p>\n<p>These three components - bonding, rebasing, and liquidity provision - work harmoniously to foster a resilient ecosystem within Olympus DAO. They empower participants to actively contribute to the stability, liquidity, and growth of the protocol, creating an environment where OHM can thrive as a sustainable reserve asset.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Olympus DAO: decentralized, democratic project.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-olympus-dao-04.jpg/" alt=\"What is Olympus DAO: decentralized, democratic project.\" width=\"1000\" height=\"527\"><\/p>\n<p>Well, I told you that understanding Olympus DAO is like climbing up the actual mountain! But don’t worry, eventually, once you get to the top of it and see the view over the DeFi world, that makes it all worth it! Okay, back to answering the question, “What is Olympus DAO crypto?”<\/p>\n<p>At the heart of the Olympus DAO model lies the OHM token. <strong>OHM functions as<\/strong> <strong>both a reserve asset and a governance token<\/strong>, conferring voting rights to its holders, allowing them to actively shape the future direction of the protocol. Remember - that’s where the “DAO” in “Olympus DAO'' comes from! It’s a <strong>decentralized, democratic project<\/strong>!<\/p>\n<p>And this community-driven governance isn’t just a “feature.” It’s one of the distinguishing aspects of the OlympusDAO project. <strong>OHM token holders have the power to shape the trajectory of the protocol<\/strong>, proposing and voting on various upgrades, enhancements, and policy changes. This decentralized governance framework ensures a collective decision-making process that aligns with the interests of the community.<\/p>\n<p><em>So… I hope you’re not out of breath, because our hike to the top of the Olympus DAO mountain isn’t over yet!<\/em><\/p>\n<h2>What is OHM Crypto?<\/h2>\n<p>Okay, usually, I try not to talk about different concepts, such as Olympus DAO and OHM, at once. But in this case, while presenting the answer to the “What is Olympus DAO crypto?” question, I’ve already mentioned its native cryptocurrency OHM more than once. It’s because, otherwise, the answer to the question wouldn’t have sufficed! But OHM requires a bit more attention.<\/p>\n<p>OHM, also referred to as the “Olympus DAO token” or “OHM Olympus coin” is the<strong> native token of Olympus DAO<\/strong>. It holds a unique position within the crypto industry, bringing forth innovative tokenomics and contributing to the evolution of the overall ecosystem.<\/p>\n<p>The uniqueness of OHM lies in its role as a <strong>reserve asset<\/strong>. Unlike traditional stablecoins backed by fiat or algorithmic mechanisms, OHM derives its stability from the <strong>OlympusDAO treasury's reserves and a robust stability mechanism<\/strong>. This approach creates a self-sustaining ecosystem, where OHM acts as a stable store of value, resistant to external market fluctuations.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Olympus DAO: reserve asset.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-olympus-dao-05.jpg/" alt=\"What is Olympus DAO: reserve asset.\" width=\"1000\" height=\"530\"><\/p>\n<p>You see, when you realize what’s the entire point behind OHM’s creation, you start understanding why it’s called OHM. It sounds very similar to “Om,” which, according to ancient Hindu scriptures, is the <strong>sacred sound of the universe, a.k.a. the sound of everlastingness<\/strong>. Which, indeed, sounds pretty stable, and that’s what Olympus DAO is after!<\/p>\n<p>In its unique approach, OHM has contributed to the improvement of the crypto industry by introducing novel concepts, such as treasury-based stability models and community-centric governance. By providing an alternative to traditional reserve assets and centralized decision-making structures, OHM showcases the potential for decentralized and sustainable financial systems.<\/p>\n<h2>Olympus Treasury<\/h2>\n<p>By now, we have established what makes Olympus DAO and OHM so ambitious and outstanding. But let’s take a closer look at <strong>how this reserve currency works<\/strong>. And, what is a reserve currency, after all?<\/p>\n<p><em>So, first of all, let's demystify the concept.<\/em><\/p>\n<p>In short, a reserve currency refers to a <strong>widely accepted and held currency by central banks and international institutions as a means to facilitate international transactions, store value, and maintain stability in the global financial system<\/strong>.<\/p>\n<p>A reserve currency holds a special status, often being used as a benchmark for exchange rates and serving as a preferred medium for settling international debts. It plays a crucial role in facilitating trade, investment, and financial activities on a global scale.<\/p>\n<p>The primary reserve currency historically has been the US dollar, but other currencies like the euro, yen, and pound sterling have also served as reserve currencies to varying degrees. The designation of a reserve currency is influenced by factors such as a <strong>country's economic strength, political stability, and the depth and liquidity of its financial markets<\/strong>.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is Olympus DAO: reserve currency.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//what-is-olympus-dao-06.jpg/" alt=\"What is Olympus DAO: reserve currency.\" width=\"1000\" height=\"513\"><\/p>\n<p>In the context of cryptocurrencies, the emergence of reserve currencies like OHM within decentralized systems offers a new perspective. These reserve currencies <strong>aim to provide<\/strong> <strong>stability and a means for the store of value within the crypto ecosystem<\/strong>, creating a self-sustaining framework that operates independently of traditional fiat currencies.<\/p>\n<p><em>And OHM does that, thanks to the Olympus Treasury.<\/em><\/p>\n<p>The Olympus Treasury lies at the heart of OlympusDAO, serving as a vital component that underpins the stability and value of the OHM reserve currency. <strong>It is a pool of assets composed of more than $200M worth of crypto assets that are held within the protocol<\/strong>. This treasury forms the backbone of the ecosystem, providing the necessary reserves to support the stability and value of OHM.<\/p>\n<p><em>But how does this OHM reserve currency actually work?<\/em> Well, the OHM reserve currency is the target price at which the Olympus DAO protocol strives to maintain stability. It represents the ideal value for OHM, acting as a reliable store of value within the ecosystem.<\/p>\n<p><strong>To achieve this stability, the OlympusDAO protocol implements a unique mechanism<\/strong>. When the price of OHM rises above the target, new OHM tokens are minted and added to the treasury, expanding the supply. Conversely, when the price falls below the target, the previously mentioned process of \"bonding\" occurs, where participants can bond their assets to receive OHM, reducing the supply.<\/p>\n<p>This creates a feedback loop between the treasury and the supply of OHM, enabling the protocol to <strong>automatically adjust and maintain stability<\/strong>. By expanding or contracting the supply in response to market conditions, the OlympusDAO ecosystem aims to keep the OHM reserve currency closely aligned with its target value, fostering confidence for participants.<\/p>\n<h2>Criticism<\/h2>\n<p>At this point, it may seem that Olympus DAO is, without a doubt, the winner’s choice. But, as it’s the case with all things in life, everything has two sides to it. And Olympus DAO is far from being immune to skepticism.<\/p>\n<p><strong>This project has been accused of being a <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-ponzi-scheme/">Ponzi scheme<\/a><\/strong>, simply due to their staking system being perceived as unsustainable to the point of being unreliable, and, therefore, fraudulent. Such criticism stems from the conviction that high-yield investment programs are doomed to fail, and, therefore, people shouldn’t turn their guard off when it comes to trusting financial projects.<\/p>\n<p>The room for doubt is created not only by the project’s innovative, therefore, yet-to-be-tested tokenomics, but by the fact that the idea of being pseudo-anonymous is practiced within the Olympus DAO management. Zeus, the creator of the whole thing, is an example. <strong>Critics would ask: “Why hide your identity, if everything’s so brilliant?”<\/strong><\/p>\n<p>The thing is simple. Olympus DAO truly stands out for their groundbreaking, never-seen-before solutions and thinking forwards. Yet, when it comes to crypto, sometimes things turn out to be less robust and failure-proof when something unexpected happens.<\/p>\n<h2>Wrapping Up<\/h2>\n<p>Finally, we have reached the mountain top! By now, the questions of “What is Olympus DAO?”, “What is OHM crypto?”, and even “What network is Olympus DAO on?” have been answered. I told you - <strong>understanding this concept can get a bit daunting<\/strong>. But if you don’t skip any key points, don’t ignore essential terminology, and stay attentive, the clouds evaporate, and things become much clearer.<\/p>\n<p>And by now, it’s easy to summarize the fact that <strong>Olympus DAO has contributed to the broader DeFi landscape by offering an alternative store of value and stability within an ecosystem driven by community governance<\/strong>. This pioneering approach has garnered attention, sparked conversations, and paved the way for further exploration and innovation in the sphere of cryptocurrencies and decentralized systems.<\/p>","youtube_video":{"id":102,"channel_id":1,"sort":16,"video_title":"What is Olympus DAO? (OHM Crypto Animated Explainer)","description":"What is Olympus DAO? What is OHM crypto?\n\nOlympus DAO may scare off crypto beginners from trying to understand and learn more about it. It\u2019s a challenging project, yet very rewarding for those who decide to actually learn about it.\n\nIn this video, I\u2019ll get under the hood of Olympus DAO, the innovative, revolutionary, yet controversial attempt of changing the crypto landscape. Understanding Olympus DAO is very beneficial because it connects more essential crypto concepts such as staking, stablecoins or DeFi protocols. Learning about them, and understanding how it all results in one big project, the Olympus DAO, has a lot of advantages.\n\nHave you ever interacted with Olympus DAO? Do you own any OHM? Do you believe in Olympus DAO vision, or do you think its critics have a point? Share with us in the comment section below!\n\nVideo Time Table:\n\n0:00 Introduction to What is Olympus DAO\n1:20 What is Olympus DAO?\n6:49 What is OHM Crypto?\n8:19 Olympus Treasury\n10:46 Criticism\n11:53 Wrap-up: What is Olympus DAO & OHM?\n\nGet Quick Crypto Tips on Twitter - Follow:\nhttps:\/\/twitter.com\/crypto_xplained\n\n#OlympusDAO #OHM #OHMCrypto","video_id":"fz-tp2buABg","duration":776,"view_count":591,"thumbnail_url":"https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/what-is-olympus-dao-ohm-crypto-animated-explainer.jpg","thumbnail_width":1280,"thumbnail_height":720,"published_at":"2023-08-02T14:29:39.000000Z","created_at":"2023-08-02T23:00:11.000000Z","updated_at":"2024-01-09T23:00:03.000000Z","channel":{"id":1,"title":"CryptoFinallyExplained","channel_id":"UCOryUY0yxC08eJtK23mNgiA","main_playlist_id":"UUOryUY0yxC08eJtK23mNgiA"}},"featured_image":{"id":4871,"uuid":"5cd41eaa-6f24-4ce6-a465-d345395cf395","name":"what-is-olympus-dao-featured-image.jpg","url":"https:\/\/assets.bitdegree.org\/images\/what-is-olympus-dao-featured-image.jpg","path":"images\/what-is-olympus-dao-featured-image.jpg","mime_type":"image\/jpeg","disk":"digitalOceanSpaces","size":67438,"width":1024,"height":576,"custom_properties":null,"created_at":"2023-08-09T06:53:23.000000Z","updated_at":"2023-08-09T06:53:23.000000Z"}}" :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 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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-olympus-dao">

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