What is NFT Digital Art, and How Does it Work?

In basic terms, a non-fungible token (NFT) digital art is an artwork that is created, owned, exhibited, and traded on a blockchain. It could be a painting, drawing, picture, video, piece of music, or even a tweet. We can now confidently say that the future Pablo Picasso, Vincent Van Gogh, or Michelangelo will not need to have their artwork on a framed physical canvas. Instead, their pieces can entirely exist in the digital form but still have only one person or institution owning the original copy at a time. Until the arrival of the blockchain, best known today for Bitcoin and other cryptocurrencies, it had been near impossible to have artwork in the digital form have the same value as one that is done with oil paint on a canvas. In particular, that was so because of the double-spending problem.

What is the double-spend problem?

Double spending is primarily a digital environment problem. It occurs because when you send a digital file, you don’t lose it. For example, if you take a photo right now with your smartphone and send it to a friend or a family member, you still have an identical copy in your storage, and they end up having exactly the replica in theirs too.

The recipient can also send the photo to others in their networks, and they still have their copy. In short, it has been the nature of digital files that you couldn’t send them and no longer have a copy unless, of course, you deleted your copy. Digital files have been by default replicable to infinity. And that is the double-spend problem.

Meanwhile, what makes anyone willing to pay $100 million for Pablo Picasso’s Weeping Woman or $700 million for Leonardo Da Vinci’s Mona Lisa, for example, is the knowledge that they are going to be the only one in the entire world owning the genuine original copy.

It goes without mentioning that no one will spend, say, $100 million on a piece of art when they know that potentially 100 million other people around the world will have exactly the same copy. Before artwork in digital format could have the same characteristic as the physical artwork pieces, the double-spend problem needed to be solved.

The easier way to do it is to have a central authority manage the digital asset as well as transactions around it. Meaning, the central authority keeps possession of the file on behalf of the owners to prevent replication. The central authority could also oversee the owners’ accounts and automatically delete the files in the sender’s possession once they give up ownership.

This is what happens in centralized digital payment services like PayPal. Once you send money, the service provider updates a ledger to indicate that your balance has been reduced by the amount you sent. That means you no longer have the same amount to send to another person.

For art-like assets, a similar system is used in video games to manage in-game assets like rare skins, weapons, and other assets. The platform admin makes sure that once you sell an asset, it no longer appears in your inventory.

The challenge with this form of arrangement is that you don’t have true ownership of these assets. An admin can still take them away from you for one reason or another.

Also, the existence of the assets depends on the existence of the platform and, in particular, the company that runs it. You can’t move with them to another platform that is not related to the one where you owned them first.

A more helpful way of solving the double-spend problem is to make a digital asset exist as a single sovereign copy that can be sent, and a copy is not left behind. As a critical step to achieving digital cash that didn’t rely on a central authority, Satoshi Nakamoto found a solution to this problem.

A few years later, this solution proves helpful in the management of artwork in the digital form.

How was this achieved?

Satoshi Nakamoto solved the problem of double-spend by creating what we now know as a shared ledger (blockchain). This is a record of transactions that appears on each computer in a peer-to-peer network. They all maintain and synchronize it through collaboration based on a consensus mechanism – strict laid down rules about how transactions are verified. Assets or digital coins are stored on this ledger, and only their ownership changes.

In other words, when you send bitcoin, the coin itself does not move. What happens is that you relinquish your ownership and transfer it to the recipient. Basically, the asset remains at the same location. Meanwhile, the protocol is designed and set up such that the assets recorded on the shared ledger cannot be replicated.

We can think of blockchain as a shared public storage space where digital assets reside and are protected from replication. However, unlike the other storage spaces, the blockchain is not owned nor controlled by any private entity. The ownership is managed through a detailed public protocol and smart contract. These features offer users true ownership.

Now back to NFTs

The same shared ledger on a peer-to-peer network that has been used for cryptocurrencies like Bitcoin can also be used as a storage for unique digital assets known as non-fungible tokens (NFT).

But what exactly does the word fungible mean?

Each of the 21 million bitcoins that will ever be in circulation can be replaced by another. In other words, when you expect a payment, you don’t mind which one of them you receive. That is because you expect them all to be the same. That is the fungibility characteristic of a currency, and it applies to fiat currency as well.

However, when it comes to assets like artwork, each must be unique and different. This can be achieved by creating unique metadata for each digital file stored on the ledger. Therefore, each becomes a non-fungible token.

The Ethereum blockchain has been designed with the best capacity for this purpose. That is, in particular, because of its smart contracts capability through which digital files on the shared ledger are given unique characteristics.

We’ve already seen the successful launch and sale of art pieces on the Ethereum blockchain as NFTs. At the beginning of the year, we saw Jack Dorsey’s first-ever tweet sell for $2.9 million as an NFT. Christie’s facilitated a $69 million NFT auction of a digital collage by an artist known as Beeple. This is a trend that can only grow with time.

Several marketplaces have emerged where art pieces created on the blockchain as NFTs are sold. These marketplaces include OpenSea, Raible, and SuperRare.

Like with physical artworks, those who buy NFTs are mostly collectors and investors who hope that whatever they buy will grow in price over time. Of course, much of the value comes from market sentiment on the asset and not any utility function.

Indeed, the gaming industry is also turning out to be an early adopter of the NFT application of blockchain technology. Video games are full of digital assets that need to be unique and different such as skins and weapons. These are better managed as NFTs on the blockchain.

While traditional physical art pieces will continue being attractive and growing in value, in the future, however, we are likely to see a growing class of art that is created, owned, and traded in digital form as NFTs. Thanks to blockchain technology, this art will be rare and therefore as valuable as physical art pieces.


OKX Exchange – One Stop Crypto Exchange

OKX is an online cryptocurrency exchange platform that permits traders to buy, sell, trade, mine, and even lend crypto currencies. 

OKX is an online cryptocurrency exchange platform that permits traders to buy, sell, trade, mine, and even lend crypto. 

The exchange was established in 2017 by Mingxing “Star” Xu as a spinoff of its sister company “OKcoin” which was forced to move its headquarters from Beijing to Hong Kong. 

OKX is based in the Republic of Seychelles, albeit unavailable for U.S. users. OKX has gained a reputation for catering to more advanced traders, and beginner investors may be better served elsewhere, given OKX’s focus on advanced trading tools and the breadth of cryptocurrencies provided. 

Currently, the exchange lists over 300 coins, including Bitcoin (BTC), Ethereum (ETH), Tether (USDT), USD Coin (USDC), along with the in-house token OKB, which provides specific discounts and perks to token holders.

Is OKX Exchange Limited to Expert Traders?

 At OKX, beginner traders feel overwhelmed by the breadth of trading options provided under the basic trading sections. 

OKX has gained a reputation for mainly catering to advanced traders relying on complex trading tools. 

The exchange is designed for traders who warrant access to margin, futures, and options trading both on the browser and through mobile trading; OKX provides its unique advanced features on all platforms and devices. 

OKX Pros & Cons

OKX Pros:

  • Huge selection of more than 300 cryptocurrencies to trade
  • Relatively low fees when compared to competitors ranging at and below 0.1%
  • In-house blockchain that provides opportunities for advanced traders
  • Multiple options available to buy cryptocurrency utilizing bank cards, bank accounts, or digital wallets
  • Industry-standard security practices, such as cold storage for user assets

OKX Cons:

  • Trading interface tends to be complicated for beginner traders
  • Complex and multi-tiered operational structure
  • Tilted towards the Chinese market, which pauses a regulatory risk
  • Some cryptocurrency pairs available face the problem of low liquidity and high slippage
  • Not available for users within the U.S.

Our Take on The OKX exchange

OKX has continuously proven to deserve its place amongst the leading cryptocurrency exchanges globally regarding trading volume, with a fair twist towards experienced users. 

Although not available for U.S. traders, OKX is an excellent cryptocurrency exchange with low fees and a vast selection of staking pools that long-term investors may benefit from. 

However, traders must be wary of mixed customer reviews claiming that OKX features poor customer service and claims that funds were lost in the past at OKX. 

To combat the infamous reputation, OKX has implemented a multi-faceted security system that builds on online and semi-offline risk management protocols, extensive data risk reduction systems, and multi-signature semi-offline clearance systems. 

The exchange provides services ranging from spot trading, margin trading, options, futures crypto mining services, decentralized finance services (DeFi), and perpetual swaps. 

However, one drawback to the amplitude of products and derivatives provided by OKX is that it may seem daunting to new users leading to wrong financial and trading decisions; thus, more educational material pushed by the exchange is warranted. 

Our take is that the OKX exchange is a fair first step into entering the world of cryptocurrency. However, users must take the highest levels of precaution when dealing with new products. 

It is always recommended to drive a shift towards decentralized exchanges that do not have a centralized authority over users’ funds and are often less susceptible to being hacked.


Shiba Inu – Price Prediction 

Shiba Inu’s volatility, its reliance on hype for demand as well as current lack of significant functionality make price predictions of the coin rather challenging. 

Shiba Inu came to live in August 2020 as an Ethereum-based altcoin. Its name and main feature stems from the Japanese hunting dog Shiba Inu. 

Similar to Dogecoin, Shiba Inu is considered a meme coin and ranks as one of the top meme cryptocurrencies. 

The coin gained momentum shortly after Elon Musk’s tweet of his Shiba Inu breed puppy on October 3rd in 2021. Nonetheless, the Shiba Inu has seen a continuous downward trend since. 

Read more to find out about current price predictions for Shiba Inu for 2022. 

Insights into Shiba Inu 

In 2020, Shiba Inu’s founding group Ryoshi created the coin with a specific purpose in mind. They were looking to understand “What would happen if a cryptocurrency project was 100% run by its community?”. 

As is the case with many blockchain supporters, the group believed in the concept of collective decentralization to support and build a strong and powerful vision.

The Ryoshi Group decided to launch Shiba Inu on Ethereum rather than on a native blockchain. 

Thus, also allowing it to benefit from Ethereum’s developments. According to the coins Whitepaper, or Woof Paper in this case, the choice for Ethereum was made based on the reputation of the chain as being “secure and well-established”. 

While many other cryptocurrencies are utility token in their nature, most altcoins, for example Dogecoin, do not have any functionality that would provide value to holders. 

Nonetheless, Shiba Inu has built an ecosystem to offer utility opportunities such as liquidity providing, staking and exchanging of tokens on its native exchange ShibaSwap to investors.

Price History 

Shiba Inu experienced its first notable price increase in May 2021. Within a single month the coin’s price increased by approximately 300%. 

After dropping back to a more stable value in the following months, Elon Musk’s tweet in October 2021 caused a substantial price change. 

Though his Tweet managed to increase the price of Shiba Inu to an all-time high of $0.00008845 with a market cap of over $40 billion, Musk himself noted to not have owned any Shiba Inu at that time.

As Shiba Inu‘s supply circulation is considered rather large, the price is seen to be very low in comparison to its rival Dogecoin. 

Though, in 2021 Shiba Inu’s market capitalization overtook that of Dogecoin. 

Since its all-time high in October 2021, the coin has experienced an overall drop in value. 

Even though the coins price momentarily increased when Shiba Inu’s joined Robinhood in April of 2022, transaction volumes and the price itself have overall been declining. 

At the moment, Shiba Inu trades close to previous price levels prior to May 2021. 

Voices and Opinions 

Opinions and price predictions surrounding Shiba Inu are mixed. Wallet Investors uses artificial intelligence (AI) tools to forecast prices. 

Their forecasts initially showed a positive outlook for the coin with a target value of $0.000014 by September 2023. Though, the coins volatility proved them wrong as Shiba Inu already surpassed their predictions. 

While some voices advocate for the possibility of Shiba Inu to move beyond $0.007 or even $0.01, such hopes are rather slim due to the coins large market cap. 

Though, the overall sentiment among experts seems to support a long term increase in the coins price. 

In contrast, CEO of Block Journal, David Hsiao attributed the success of Shiba Inu merely on hype. Thus, extenuating the risk of the asset in the long run. 

Coupled with the current state of the cryptocurrency market, Shiba Inu could drop further. 

Nonetheless, Shiba Inu is working hard on increasing functionality of the coin to provide additional value to investors and drive the price up. 

For example, Shiba Inu’s planned entry into the metaverse with Shibverse could cause a noticeable upward trend in the tokens value. 

Additionally, Shiba Inu was enabled to be used as a source of payment in-store and online through BitPay at the end of 2021, further extending the coins use cases. 

Price Prediction 

At time of writing the price of Shiba Inu is at $0.000008587 with a market cap of $4,714,900,902, up 9.28%, and a trading volume of $488,931,531, down 0.95%. 

Shiba Inu’s volatility, its reliance on hype for demand as well as current lack of significant functionality make price predictions of the coin rather challenging. 

Nonetheless, forecasts by B2C (April 2022), CryptoNewsZ (June 2022) and Benzinga (June 2022) indicate possibilities for long-term price increases. 

Shiba Inu could be trading around $0.0001 by 2025, especially considering the current developments of the ecosystem. 

In the short run, the price of the coin is dependent on investors’ sentiment and the evolvement of the market. Thus, prediction indicate a price ranging between a low of $0.000003321 or high of $0.00005585 in 2022.  

Overall, while Shiba Inu’s volatility and reliance on hype do make it a risky asset, it certainly offers an interesting ecosystem and community with a promising outlook on development. 

Additionally, Shiba Inu’s performance can be considered better in comparison to other altcoins. Its focus on providing and building further utility serves as hope for investors in the coin’s future. 

If you want to find out more about the ecosystem, make sure to read through the whitepaper and do your research.


Uncertainty amidst USDD depeg – Justin Sun grasping for collateral and withdrawals 

After Terra UST’s de-peg from the US dollar in May, new challenges seem to have risen. 

On Monday, June 13th, the Tron-based algorithmic stablecoin USDD, also Decentralized USD, lost its peg to the USD. The coin dropped about 9% to as low as 91 cents, further pushing investors’ concerns. 

The de-pegged followed crypto lender Celsius’ announcement to suspend withdrawals and transactions amid the current liquidity crisis within the cryptocurrency space. 

In addition to USDD, Tron’s native token TRX has also been down, losing over 5% in value since yesterday. 

The Issue with Algorithmic Stablecoins 

USDD was created and listed by Tron in April 2022 as a decentralized algorithmic stablecoin. 

As such, the coin should count as a stable investment with a one-to-one exchange rate bound to the US dollar. 

As the name suggests, algorithmic stablecoins use algorithms that regulate the price according to supply and demand to keep a consistent value of the coin. 

Nonetheless, the problem with these types of stablecoins lies in their reliance on demand. 

Broad selloffs caused by volatility, uncertainty, and lack of knowledge or information can lead to a crash of the system once the price reaches a certain threshold. 

This trend could not only be observed with TerraUSD but also for stablecoins Neutrino and Deus Finance’s DEI.

Preventing Sellouts to Restore the Peg

After TerraUSD’s crash in May, Tron’s founder Justin Sun had decided on a guaranteed collateral ratio amounting to 130% to avoid the same fate. 

Now, faced with a possible USDD downfall, Sun hoped to regulate demand by supplying TronDAO’s collateral of $2 billion. 

Nonetheless, this strategy is considered highly risky as it is dependent on the number of short bets on USDD. 

Should more funds be sold, the price of the stablecoin will continue to drop. At present, USDD’s value has only partly recovered to 97 cents and has thus not yet regained its peg. 

The current sentiment of financial markets, coupled with the volatility of various stablecoins has left investors uncertain. 

In a further attempt to recover USDD’s peg, Sun has withdrawn 2.5 billion of its native TRX tokens from the Binance exchange, amounting to approximately $125 million

Thus, TronDAO hopes to limit short positions against USDD “to safeguard the blockchain industry and crypto market.” 

While USDD has not regained its peg yet, the withdrawal does show a positive effect on the coins value, leading to an increase of approximately 2.8%

UST’s Fate as an Outlook on USDD’s Future? 

Some are taking to Twitter to compare the happenings of USDD to UST. 

The creators of both stablecoins called for “deploying more capital – steady lads” amidst their respective crises. This statement is regarded with mixed feelings from the community, mirroring UST’s downfall a little too closely. 

The biggest question that arises now is whether trust in algorithmic stablecoins can or should be restored. Either way, make sure to do your research and read the whitepapers available on our site. 


3 Cryptocurrencies to Buy and Hold Indefinitely in 2022

Some individuals invest in cryptocurrency to do scalping. They purchase digital currency and then rapidly sell them. When the winds are blowing in your favor, you may make a tidy profit. On the other side, when cryptocurrency values begin to fall, as we witnessed in the latter half of 2021, this type of short-term trading can be detrimental to your financial health.

Investing in cryptocurrencies over time is a different strategy. Rather than aiming to earn a fast profit, the objective is to invest in digital currencies that have the potential to yield huge returns over the period of years, if not decades.

The bitcoin business has grown dramatically over the last decade, and it is expected to reach new heights in 2022. There are lots of alternatives for crypto investors, and here we look at the top cryptocurrencies to invest in this year.

Here are three cryptocurrencies to purchase and hold for the long term for investors with the fortitude to wait for game-changing gains.

Ethereum: the coin to purchase and hold for the long term

Ethereum is yet another well-known cryptocurrency, and it is now the second-largest digital currency in terms of market value. Everything is in position for the release of Ethereum 2.0, which will address the most serious issue that Ethereum presently faces: transaction speed.

Ethereum is an excellent illustration of what long-term investment in the correct cryptocurrency can achieve. Since its inception in 2015, the value of Ethereum’s native token has increased by more than 348,000%. However, there have been other large pullbacks along the road, which may have led some to lose out on those profits.

A terrific past does not automatically translate into a fantastic future. In the case of Ethereum, though, we believe that investors who wait will be rewarded.

Ethereum is gaining traction that is difficult to reverse. Based on market capitalization, it is the world’s second most valuable cryptocurrency, after only Bitcoin. The Ethereum blockchain serves as the foundation for more than 40 of the top 100 cryptocurrencies. Ethereum, according to billionaire Mark Cuban, might be a huge winner this year, with significant new apps on the way. 

The integration of the beacon chain with the Ethereum mainnet will be a huge step forward in the Ethereum 2.0 upgrade this year. Staking will be possible throughout the network as a result of this. The last phase of this project is set to begin in 2023. In the not-too-distant future, Ethereum will be significantly quicker and scalable, with reduced transaction fees.

The last phase of this project is set to begin in 2023. In the not-too-distant future, Ethereum will be significantly quicker and scalable, with reduced transaction fees. This might pave the way for further adoption in the coming years.

Solana is our second pick cryptocurrency to buy and hold

Some of Ethereum’s current proof-of-work (PoW) protocol’s drawbacks have allowed rival blockchains to gain traction. One of the most successful is Solana (CRYPTO:SOL).

Solana has grown by more than 20,000% since its inception in early 2018. It is presently ranked fifth among the leading cryptocurrencies in terms of market capitalization. However, with a market valuation of roughly $52 billion, Solana has a long way to go before catching up to Ethereum. 

There’s reason to believe Solana can run a long distance from here. It boasts the fastest-growing crypto ecosystem, with over 400 projects. Solana’s blockchain is lightning fast, having the ability to execute up to 65,000 transactions per second. And it’s inexpensive: the average transaction cost is $0.00025.

Solana has been subjected to a number of high-profile distributed denial-of-service assaults, the most recent of which caused its stock price to plummet last month. Developers, on the other hand, have a strong incentive to solve any security concerns. Solana appears to be a top blockchain in the long run.

Avalanche is our final pick cryptocurrency to buy and hold this year

Avalanche (CRYPTO: AVAX) is the group’s new child on the block. It held its initial coin offering (ICO) in 2020. Avalanche has risen more than 2,200 percent since then, and it currently stands as the 11th most valuable cryptocurrency by market capitalization.

Avalanche, on the other hand, might be just getting warmed up. It is far quicker than Ethereum, capable of processing more than 4,500 transactions per second. No blockchain that supports smart contracts has a faster time to completion (the amount of time required to irrevocably add a transaction to the blockchain).


Ethereum, Solana and Avalanche represent strong, innovative blockchains and have the capacity to gain and hold value in the long term. 

This guest article is from While you consider starting or expanding your alt-coin portfolio, Coinsfera can offer you a simple way to purchase Bitcoin and many popular alt-coins with cash or credit card. They offer digital asset sales both online and in their stores around the world. Visit them to buy Bitcoin in Dubai, and check out their blog for helpful info in understanding blockchain technology and trends. does not offer financial or investment advice and this content should be interpreted as the personal opinion of the author only. We advise you to be confident in your understanding before buying or selling any cryptocurrencies


The Limitations of the DeFi Protocol

The DeFi Landscape

As the world evolves toward digitalization, everyone recognizes the importance of the crypto sector in terms of startups and everything that surrounds them. It allows people to find more convenient ways to conduct business and connect with people worldwide.  

Everything is easier and more accessible as the world goes from the conventional way of completing day-to-day activities towards digitalization. People have become acclimated to the changes, which included the appearance of cryptocurrencies and the usage of digital money and transactions. Hence, movement into the crypto area is not a major problem.  

The most meaningful change was the shift to decentralized finance, which significantly impacted the way banks operate and shifted to a broader financial environment. But the fact is that many people have their own views on decentralized finance. Some people consider DeFi revolutionary, while others see it as an opportunity, and yet others do not believe in it.  

But, before we dive deeper into the world of DeFi, let’s get a better understanding to know more about it and its limitations.  

DeFi Protocol 

Many of the notable use cases for blockchain technology have been fueled by the decentralized finance system. In other words, the DeFi protocol enables a wide range of blockchain-based applications that provide peer-to-peer alternatives to traditional financial services and institutions.  

The DeFi system has grown in recent years as a result of the significant increase in capital volume. The protocol has as purpose to automate the financial business sector based on exponential blockchain technologies, removing counterparties, and shifting risk to technology. 

The main purpose of decentralized finance is to connect people directly to the company’s products and to use smart contracts to ensure that these agreements are met. It has more transaction autonomy; no permits are required for transactions, and deals can be formed without waiting.  

Transparency in transactions and fees is improved. Through the help of the protocol there is a greater faith in the technology regarding financial services rather than intermediaries such as banks.  

The Limitations

The trouble with the DeFi protocol is that it comes with its own set of limitations. At its root, the innovation is exciting, including new methods of doing things that can improve consumer and company efficiency and access.  

However, the protocol’s limitations make it tough to censor or eliminate scalability, instability in terms of DeFi projects and it necessitates some heavy-duty computing. There are still specific challenges and questions about the security and safety of the system.  

DeFi projects are unquestionably ideal for supporting financial inclusion. Still, they face significant challenges in the scalability of the host blockchain from a variety of angles. As transaction confirmations can take an excessively long time, and they may become unbelievably expensive during moments of congestion. 

However, there are still ways in which the DeFi protocol can overcome some of the limitations through the help of platforms like Exzocoin. Exzocoin limits risk by providing a completely decentralized multi-chain secure crypto wallet to keep cryptocurrency safe from hackers and scammers.  

With Exzocoin’s crypto voting platform, you can rapidly exchange, explore, and learn about the trading crypto and blockchain projects on the market. Users can have now complete control over crypto assets, with excellent privacy and security. Aside from that, the platform will use Web3 to interface with the Ethereum Blockchain, allowing for faster processing.  

Data will be networked in a decentralized method with the help of Web3, which will be an innovation in terms of data as it is now mostly held in centralized repositories. Besides that, there will be a more straightforward approach to user-machine interactions. 

DeFi, as a new and experimental technology, still has some flaws and challenges, particularly in terms of security. Developers and consumers of decentralized finance expect that these issues will be resolved in the future.  


Today, the DeFi protocol faces limitations. But this does not mean that it is not welcoming or easy to use. It still has its advantages, such as ensuring effortless funds transfer, immutability, transparency, and a slew of others that users can take advantage of.  

As a result, the DeFi system, has emerged as a viable alternative for changing traditional financial services. Through the help of the decentralized finance, people can now have the chance to shape the global financial system. Everyone can participate in DeFi protocol governance and have a seat at the table where the world of decentralized finance is being constructed. 

This guest post from the Exzocoin Team was edited by We hope this article provided a helpful overview of the strengths and weaknesses of the decentralized finance movement.


Bitcoin’s growing energy needs? Proof-of-gaming is better than that.

Proof-of-gaming is a novel concept and it’s a simple one at that. According to Ulti Arena – an NFT marketplace for game assets, it’s the answer for the ongoing increase in the bitcoin mining energy consumption problem. The more you play, the higher the chances of mining the next block of coin.

Bitcoin’s energy consumption problem

But first, let’s start with the problem. Was Elon Musk right to voice his concerns over the “rapidly increasing use of fossil fuels for bitcoin mining.”? By some measures, the cryptocurrency uses more energy than entire countries such as Sweden and Malaysia. According to Cambridge Bitcoin Electricity Consumption Index – in its peak, on May 10th, 2021 – the upper bound consumption on that day was 510 TWh and the estimated consumption was 148 TWh.

Figure 1 – Bitcoin mining energy consumption in TWh

For comparison, let’s take a look at the energy consumption of the entire nation of Sweden – while its production topped 160 TWh – the country’s usage has steadily declined in the last few years to less than 140 TWh.

Figure 2 – Energy consumption and production in Sweden

Energy consumption is not the only problem that Bitcoin mining creates. NVidia has an ongoing shortage of GeForce RTX series graphics cards – which pressures the prices and also has gamers scrambling to find one to buy from the market.

Proof-of-gaming concept

Now here comes Proof-of-Gaming – an idea integrating gaming and blockchain technology. Key advantages of using proof-of-gaming:

  • It is more energy-efficient than Proof-of-Work (Bitcoin),
  • Certainly more fair than Proof-of-Stake (Ethereum) – where it favors nodes that have the largest ETH stake in the network,
  • It’s just more fun – playing the game while mining and earning passive income? You bet.

The Proof-of-Gaming algorithm’s main idea is that gamers who spend time and GPU computational power should be the ones that could create and validate blockchain’s new blocks. 

To implement this, there are certain conditions that have to be met:

  • The game should be difficult enough for bots to emulate and challenge human players, such as DOTA2 (while the Open.AI is increasingly masterful in handling human gamers – it’s not open-sourced and the team behind it are world-class computer and data scientists),
  • The choice of team-play based games is obvious: in a complicated setting such as 5v5 gameplay, the number of combinations of strategies based on the different kinds of characters chosen, weaponry and playstyle are nearly infinite,
  • Data from the game itself should be available to developers, one great example is Valve’s STEAM API,
  • The mining algorithm should take minimal CPU/GPU/RAM resources to increase FPS while playing online games.

Rules for creating and validating blocks

Key parts of the validation algorithm are:

  • Player’s rank in comparison with other players,
  • Time spent in-game,
  • Core playstyle metrics: APM (Actions-Per-Minute), Aggression, TeamPlay, Economics, Leveling Speed, etc. 
  • Game difficulty.
Figure 3 – Valorant’s rank distribution 2020

Sounds intriguing? Then you know what to do. Step up your crypto game to get the best out of it! 

This guest post from the Ulti Arena Team was edited by We hope you got a good understanding from this article of their innovative new consensus protocol, Proof of Gaming!


KuCoin lending review: Is it really possible to earn passive income on your coins? What are the risks?

In this bullish season in crypto, many people are making life changing profits. However, it is important to seek ways to continue making profits, because as those who have been in crypto a bit longer know, these times come in waves and the fluctuations can be crazy.

Moving your money back to fiat currencies can be a really disappointing option because current interest rates are so low. For this reason, many investors, myself included, started to search for alternative solutions. The goal is to at least keep making some interest on our dollar holdings.

There are many services that now offer interest to users in exchange for staking or lending out their stable coins to them. After comparing several of them, I decided to try out KuCoin. This one specifically caught my attention because of the high interest rate they offer. In this article, I will share my experience using KuCoin lending and asses the potential risk. So, let’s get started:

About KuCoin

KuCoin is a trading exchange based in Singapore. The cryptocurrency exchange officially launched on September 15, 2017 after its initial founding in 2013 by Michael Gan, Eric Don, Top Lan, Kent Li, John Lee, Jack Zhu, and Linda Lin.

What is Kucoin Lending?

KuCoin offers an opportunity to lend your unused assets to other users who are seeking loans for margin trading. For example, let’s say a margin trader predicts the BTC price will go up. He borrows your USDT to buy BTC, and when the price goes up he sells BTC for USDT and pays back the borrowed USDT with interest. To guarantee the loan, the trader needs to maintain a certain amount of assets as collateral so that he can pay back the USDT if his prediction is wrong and BTC goes down.

Let’s take a closer look at KuCoin lending and assess the risks.

A first look at the high interest rates on KuCoin lending

The first thing that really stood out to me is the high interest rates on USDT. As you can see in the picture below, the average interest rate on USDT around 50% per year.

Other coins have a significantly lower interest rate. It seem like there is a lot more demand for USDT lending and that’s the reason the interest rates are so high.

Assessing the risk of KuCoin lending

When lending your money on a platform like KuCoin, you still want to sleep at night. We are going to look at the different risks that come with lending stable coins so that you can make a relatively safe decision.

The risks in holding stable coins

There are multiple stable coins and each has a different organization behind it.

A look at USDT

USDT, also know as Tether, is the most popular stable coin but also had some controversies. Previously, they claimed on their website that for every one USDT they had one dollar to back it. When they were unable to meet all withdrawal requests in 2017, it became clear that this was not accurate. Part of their money was put into other investments and loans and they had to change the website to state “100% backed by our reserves”.

This led to a general feeling of lost confidence and doubt around Tether due to the lack of openness and the failure to provide regular audits of the reserves backing USDT.

We could say then that potential risk in holding USDT is that it could turn out that USDT does not really have the backing and people lose trust in the USDT coin.

The demand for USDT in KuCoin is consistently the highest, resulting in interest rates of up to 60% a year. While this is definitely sounds attractive, with the uncertainty around the coin you might be safer putting your assets in another stable coin, such as USDC.

A look at USDC

USDC coin is the stable coin advertised by Coinbase. Their website states “Each USDC is backed by one US dollar, which is held in a bank account.”. Their assets are managed by the well-known accounting and consultancy firm Grant Thornton LLP. They publish a PDF with the full audit on their website every month.

The transparency around USDC gives me a greater assurance that my assets are safe.

The demand for USDC on KuCoin is lower than USDT, which results in the interest rates being lower. The average interest rate on the day of writing this article is around 25% per year, compared to 50% annual interest on USDT.

The risk of a KuCoin hack

We all know that cryptocurrency exchanges are always a target for hackers. Many stories in the past remind us we can’t be naive about these centralized exchanges.

KuCoin has not come out untouched from these hacking attempts. On September 25, 2020 hackers stole $275 Million worth of assets. This caused a big hit in their popularity, but the CEO’s reaction boosted my confidence as did the fact that 100% of the assets are covered by their insurance funds.

Still, the risk of hacking cannot be overlooked – a big enough hack can bring an exchange down entirely. One of the examples is the Japanese exchange Mt. Gox. They declared bankruptcy in 2014 after repeated hacking attacks that had begun in 2011.

Other risks

Of all the interest earned on KuCoin, 10% will go to an insurance fund and 5% is taken as a trading fee. If the collateral of the borrower loses its value, the loss will be cover by the insurance fund. While this minimizes risk in normal circumstances, we can’t predict what would happened in a crash like in 2017 where a lot of Altcoins lost 70% off their value within a couple of days.

In a crash like that is possible that the borrowers’ collateral would suddenly lose worth and the loss would be too great for their insurance fund to cover. In that case it is unavoidable that you would probably lose your money.

Let’s start using the platform

While doing this research I lent $2500 on the platform. I found the platform easy to use and you can choose how long you want to lend your assets. The options are seven, 14 or 28 days.

One thing that I soon noticed is that regardless of the loan length you specify, a borrower can repay the loan at any moment. In some cases, I set the term to 28 days but the money was already payed back in an hour.

This can be a bit annoying because ideally you want your money to be lent out for the full loan period so you don’t need to track it all the time.

There is an option called auto-lend, this option lets you auto-lend your assets but you have to fill in a daily interest rate. It is important to note that the market interest rates can fluctuate greatly during the day. This can affect your chance of fulfillment – if you put your rate on an annual rate of 50% but the market becomes a bit weaker then your lending order might not be fulfilled until the market is back up.

We hope this article gave you a better insight into the potential risks and rewards of using a platform like KuCoin. I am quite impressed with the returns that it gives, but also aware that with centralized services like this there is always a security risk that we have to take into consideration. But as I always say, without risk, no reward.

If you would like to get started and open an account on KuCoin CLICK HERE

I will continue to research and review other services to earn interest, including options that are completely decentralized. If you would like to receive updates, please make an account on and subscribe to our newsletter where I will keep giving honest reviews on services like KuCoin.


Facebook Whitepaper Release

UPDATE! You can read the Libra whitepapers here:

Facebook’s cryptocurrency project Libra is about to officially come out of secrecy and into the public blockchain conversation with the release of its whitepaper reportedly scheduled for June 18. 

While the release date of the whitepaper has not been officially announced by Facebook’s blockchain team, leaks in the project have become inevitable as cooperation with governments, banks and other organizations is needed to prepare for the launch of the coin. The June date is earlier than anticipated, as previous expectations saw a public introduction of the coin not before 2020. 

The Facebook cryptocurrency will be a stable coin, meaning instead of only being tied to the US dollar or another currency, it will be tied to several fiat currencies and low-risk securities to stabilize its price. The Information reports the value of this stabilizing basket will be 1 Billion USD, reflecting partnerships between Facebook and various financial institutions. 

Facebook’s tech-star studded development team, led by David Marcus, is currently seeking acceptance of the cryptocurrency for merchant transactions, reports Tech Crunch. The coin will be transferrable without fees between users of Facebook and their other products such as Facebook Messenger and WhatsApp. Facebook is also expected to introduce a method of physically exchanging fiat currencies for the coin, according to The Information.

While many look on with eager anticipation for the new blockchain project, Facebook has come under criticism as well, including an allegation from Weiss Ratings that the aim is to take business away from banks rather than broaden the appeal of cryptocurrency. Some Facebook users have also shared a hesitation to divulge their financial information to the corporation that already knows everything about their social lives and, in many cases, their location. 

As with any big move by Facebook, it is not without passionate reactions from both sides. We at look forward to the expected whitepaper release on June 18 as everyone will get a chance to learn the details and decide for him or herself what this unique new coin will bring.