WHAT IS INCLUDED IN BLOCKCHAIN?

1. Blockchain platforms: This is software that allows you to create and manage blockchains. Examples of such platforms are Ethereum, Bitcoin, Hyperledger, and others.
2. Cryptocurrencies: Blockchain is used to create and manage cryptocurrencies such as Bitcoin, Ethereum, Ripple, and others. Cryptocurrencies are a primary application of blockchain and allow for secure and transparent financial transactions.
3. Smart contracts: These are computer programs that automatically execute conditions and rules outlined in a contract. Smart contracts operate on the blockchain and enable secure and automated transactions without intermediaries.
4. Decentralized applications (DApps): These are applications that run on the blockchain and do not have centralized control or management. DApps provide various services such as financial services, social networks, games, and others.
5. Digital wallets: This is software or hardware devices that allow users to store and manage their cryptocurrency assets. Digital wallets provide secure storage of private keys and enable transactions on the blockchain.
6. Mining: This is the process of verifying and adding new transactions to the blockchain. Miners use their computing power to solve complex mathematical problems and receive rewards for their work.
7. Consensus algorithms: These are algorithms used to achieve agreement among blockchain participants on the state and order of transactions. Some of the most common consensus algorithms include Proof of Work (PoW), Proof of Stake (PoS), and Delegated Proof of Stake (DPoS).
8. Application programming interfaces (APIs): These are sets of tools and protocols that allow developers to create applications that interact with the blockchain. APIs provide access to various blockchain functions and services.

Slow speed and high fees, inaccessibility and regulatory uncertainty are some of the main problems that plague the current banking system.

Unfortunately, not everyone has the privilege of access to the current financial system – people who do not have this access are inherently disadvantaged.

The DeFi movement aims to eliminate these differences and provide financial accessibility for all, without any form of censorship.

In short, DeFi opens up huge opportunities and allows users to access various financial instruments without any restrictions based on race, religion, age, nationality or geography.

Decentralized exchanges also have their own risks. Here are some of them:

• Low liquidity: Decentralized exchanges typically have lower liquidity than centralized exchanges. This means that it can be difficult to find a counterparty to trade with, especially for large volumes.
• High fees: Some decentralized exchanges may charge high fees for executing trades. This can be due to limited liquidity and additional costs of ensuring the security and efficient operation of the platform
• Lack of regulation: Decentralized exchanges are typically not regulated by government or financial authorities, which means that users do not have the same level of protection and legal recourse that centralized exchanges may offer.
• Smart contract vulnerabilities: Decentralized exchanges often use smart contracts to execute trades. However, these smart contracts can contain vulnerabilities that can be exploited by malicious actors to commit fraud or hacks.
• Lack of support: As decentralized exchanges do not have a central operator, users may encounter problems that can be difficult to resolve without support from the platform.

Overall, as with any type of exchange, using decentralized exchanges also requires caution and taking steps to protect your assets. This may include checking the security of smart contracts, using reliable wallets, and carefully selecting an exchange to trade with.

1. Research the exchange: Do research about the exchange, read the reviews and ratings of other users. Learn about its reputation and security history.
2. Check the security of smart contracts: Before using a decentralized exchange, make sure that the smart contracts used on the platform have passed the security audit. This will help reduce the risk of vulnerabilities and loss of funds.
3. Use secure wallets: Store your cryptocurrency assets in secure wallets that support multiple layers of security such as two-factor authentication and cold storage.
4. Understand the process of transactions: Understand how a decentralized exchange works and what steps need to be taken to complete transactions. Make sure you are familiar with the process and don't make any mistakes that could lead to loss of funds.
5. Diversify your investments: Don't put all your funds on one decentralized exchange. Diversify your investments and use multiple exchanges to complete transactions.
6. Watch out for phishing: Be alert to fake websites and scam attempts. Always check the website URL and make sure you are using an official and secure source.
7. Update your software: Make sure you always use the latest software for your wallet and other tools to reduce the risk of vulnerabilities.
8. Use Two-Factor Authentication: Enable two-factor authentication for your decentralized exchange accounts for an extra layer of security.
9. Be careful with public keys: Never share your public keys or personal data with unverified sources. This may result in unauthorized access to your accounts.
10. Follow the news: Stay up to date with the latest news and events in the world of cryptocurrencies to be aware of possible threats and risks.

By following these guidelines, you can increase the security of your assets when using decentralized exchanges. However, remember that risk is always present, so be careful and attentive when making any financial transactions.

Cex or Centralized Exchange platforms allow users to trade cryptocurrencies using a centralized management system. On such exchanges, all transactions and storage of cryptocurrencies are carried out through a central server controlled by the exchange operator. Users deposit their cryptocurrency assets into these exchange accounts and then trade them with other users.

Users of these exchanges (CEX) do not have full control over their assets, which exposes them to the risk of losing their assets in case the exchanges are hacked and unable to meet their obligations to users.

Centralized exchanges are vulnerable to hacking, account freezing, and other fraudulent activities. Since all transactions and storage of cryptocurrencies are carried out through a central server, the exchange operator has full control over users' assets. This means that if the server is hacked or the operator decides to freeze users' accounts, users may lose their cryptocurrency assets.

However, it is worth noting that some centralized exchanges take measures to ensure the security and protection of user assets. For example, they may use cold storage to store most of users' funds offline, as well as apply various security measures such as two-factor authentication and identity verification.

A smart contract is a programmable contract that allows two parties to establish transaction conditions without the need to trust the execution to any third party.

As mentioned earlier, smart contracts are computer protocols or, in simpler terms, computer code. The code is used to input all the conditions of a contract between the parties involved into the blockchain. Once these conditions are met, the smart contract automatically executes the transaction and guarantees that the agreement will be upheld.

An important feature of smart contracts is that they can only work with assets that are within their digital ecosystem.

• Speed.

Smart contracts are an automated algorithm that allows for the exchange of funds in just a few seconds from anywhere, directly from a smartphone. This is convenient and secure.

• Independence.

Smart contracts eliminate the possibility of third-party interference. The guarantee for the transaction is the code itself, which, unlike intermediaries, does not give any reason to doubt its integrity.

• Reliability.

Data recorded in the blockchain cannot be changed or destroyed. If one party to the transaction fails to fulfill its obligations, the other party will be protected by the terms of the smart contract.

• No errors.

An automatic system for executing transactions and eliminating human factors ensures high accuracy in contract execution.

NFT, or Non-Fungible Token, is a unique record in the blockchain - a decentralized database that stores the history of operations with a specific token.

The blockchain itself is essentially a record registry. For example, Bitcoin or Ether are records in the blockchain. NFTs are also records. Like any cryptocurrency, these tokens can be stored in a crypto wallet and used for transactions, buying and selling.

However, there is an important difference. Bitcoins, Ether, other digital currencies, and even real money can easily be replaced by each other and divided into parts. For example, 0.1 Bitcoin or 0.1 Ether, like 0.1 $ are not unique. They can be exchanged for any other 0.1 Bitcoin, 0.1 Ether or 0.1 $.

The main feature of NFT is its inability to be replaced, substituted, or have its information altered. This makes it the perfect tool for verifying ownership rights of a digital asset.

NFT certifies that a digital space object belongs specifically to you.

A description of the top ten cryptocurrencies from the experts at Profinvestment.com based on their total value as of January 29, 2023. The order and figures are subject to change, as the cryptocurrency market is highly volatile and any coin can enter or exit the ranking.

1. Bitcoin
Market capitalization - $445,763,438,796
As tradition dictates, the first and most well-known cryptocurrency takes the top spot. Its decentralized digital network was first established in 2009 and has since been considered a flagship that other altcoins look up to.

2. Ethereum
Market capitalization - $191,771,156,746
Second on the list is Ethereum, created by Vitalik Buterin in 2013 and launched in 2015. Its main difference from Bitcoin lies in its full use of smart contracts (which are also available in BTC, but with limited functionality). Additionally, many developers find Ethereum to be a convenient platform for creating decentralized applications.

3. Tether
Market capitalization - $67,225,745,390
A cryptocurrency whose value is equal to the US dollar. Such currencies are called stablecoins and serve to digitize national currencies, eliminating the issue of high volatility while maintaining all the key advantages of electronic money (security, anonymity, borderlessness). Many companies are already partially transitioning from traditional dollars to Tether to take advantage of these benefits, which explains its popularity.

4. USD Coin
Market capitalization - $42,903,875,193
Another stablecoin, second only to Tether among stable coins. It is fully regulated, issued centrally and controlled by US regulatory bodies. There are pros and cons to this approach. The cons are obvious, but the pros are that the degree of coin backing is controlled at the state level. Each USDC is guaranteed to be backed by a US dollar.

5. Binance Coin
Market capitalization - $41,425,070,373
A token issued by the Binance exchange, Binance Coin continues to be popular. Its functionality was initially focused on the ability to save on exchange fees. But over the years, its scope has expanded. To combat inflation, a portion of the tokens are regularly "burned," reducing the volume of assets in circulation.

6. XRP
Market capitalization - $20,833,436,338
Ripple is primarily a cheap and fast payment system. It can be used to exchange currencies, including making cross-border payments. This feature is of particular interest to large companies - for example, Santander and American Express have shown interest in the protocol. Many also note the increased level of network security compared to even Bitcoin. Ripple transactions are fast, and energy consumption is significantly lower.

7. Cardano
Market capitalization - $13,474,561,987
Cardano is a blockchain platform developed based on scientific research; the team consists of many engineers and scientists. The project even has its own philosophy. ADA is actively improved in collaboration with the University of Edinburgh and Lancaster University.
The platform consists of two levels, one of which focuses on working with smart contracts, and the other with tokens. Of course, this is not a unique development, but the platform is being maximally improved to work faster and more reliably.

8. Dogecoin
Market capitalization - $12,215,780,888
DOGE is a meme coin. The coin was created as a parody of other cryptocurrencies, and yet over time it has become one of the most popular, thanks to a powerful and cohesive community.
From a technical point of view, it is similar to Bitcoin, mined through mining, but works much faster and is more suitable for various everyday payments.

9. Polygon
Market capitalization - $10,277,543,356
Polygon (MATIC) is a project founded in 2017, formerly known as Matic Network. The main network was launched in 2020.
Polygon is a second-layer solution for the Ethereum blockchain aimed at scaling the main network and reducing transaction fees that were causing concern for the community at the time. Ethereum is used as the base layer, preserving all its security and functionality, and additional "layers" are used as overlays.

The Polygon project is a solution to some of the main problems that Ethereum is facing today, such as high fees, unsatisfactory user interaction, and low transaction throughput.

Polygon is an amazing project in the market in the sense that it is the only scalability solution that supports the Ethereum Virtual Machine (EVM). It allows connected chains to maintain their own security while ensuring compatibility with each other and with the Ethereum main chain. Unlike other similar platforms, chains in the Polygon ecosystem do not have to use their own resources to ensure network operation. At the same time, they can communicate with each other through the ability to transfer messages. This ensures that developers can create active interactions between decentralized applications.

According to information from the official Polygon website, there are over 37,000 dapps running on it.

MATIC is the native token of the ecosystem, used to pay for transaction fees and validator rewards. It is an ERC-20 token with a total supply of 10 billion, of which 8.8 billion are currently in circulation.

MATIC is the native token of the ecosystem, used to pay for transaction fees and validator rewards. It is an ERC-20 token with a total supply of 10 billion, of which 8.8 billion are currently in circulation.

The cryptocurrency MATIC is used for various purposes within the Polygon network. MATIC token holders can vote on governance issues and increase network security through staking.

MATIC is necessary as a means of payment for transaction fees and settlements within the Polygon ecosystem. Wallets that support Polygon are compatible with MATIC.

Top stablecoins (USDT, USDC, BUSD, DAI) are usually located on one of the popular blockchains, without having their own network. The most popular blockchains for this purpose are Ethereum, BNB Chain, Tron, and Polygon.

The choice of wallet, therefore, depends on which network you plan to use when sending and receiving stablecoins, so that the service supports interaction with that network.
Common options for multi-currency wallets with support for popular stablecoins:

• Trust Wallet
• Atomic
• Exodus
• Metamask
• Coinbase Wallet
• Savl