Recently another BlokchineUA 2021 took place, the main event in Ukraine for everyone involved in the crypto industry, as well as those related to the digital economy. attended the event and identified the main trends in the recent crypto market.
NFT explosive popularity
The hype around non-fungible tokens (NFTs) is based on the confidence of their holders in the original ownership these tokens testify to. NFT is a type of cryptographic tokens, each exemplar of which is unique and cannot be exchanged or replaced with another similar one.
NFTs give owners a cryptographically secured proof of ownership of a digital asset and a right to use it. This technology is applicable in all fields, but it is best suitable for creative professions such as visual arts or music.
The first digital work of art was a painting by the artist with a nickname Beeple. His first NFT work was a collage of images from his series Everydays: The first 5000 days. The collage was sold on March 11, 2021 for $69 million. The work has no physical embodiment and is presented exclusively in digital form. This is the third most expensive work of contemporary art sold during the lifetime of its author.
Nowadays, NFTs are releasing music, any images, including Internet memes and even messages on Twitter are released as NFT.
However, this technology will still need to be refined. Hacker Monsieur Personne found a vulnerability in the new NFT token and easily created an almost indistinguishable fake of that very Beeple’s NFT picture.
He managed to create such an NFT token that completely repeats the configuration and all parameters of the original one and refers to the same data as the artist's NFT does. Later, the hacker assured him of the purity of his motives. He's not going to steal or inappropriately use the work of art. The purpose of the experiment was to dispel the myth about the security and uniqueness of tokens that is now in every possible way cultivated by the media and bloggers.
Will bitcoin lose to Ethereum
Constant updates and the particular importance for the crypto industry that Ethereum has taken have spurred its price as well. In the first half of May alone, the Ethereum price almost doubled, reaching a record $4,300.
The breakthrough in the second cryptocurrency price convinced many that it was the Ethereum coins that could gain the top of crypto-Olympus from bitcoin . At the moment, this talk is nothing more than speculation. But there is no doubt that Ethereum will catch up with bitcoin.
In July 2021, a London hard-fork will take place on the Ethereum blockchain that will completely change the algorithm for charging transactions within the network. Some of the fees that miners now receive as payment for processing transactions will be burned. The decision to include the corresponding proposal (EIP-1559) in the upcoming system update was made on March 5 at the conference of the altcoin developers. Reducing the number of coins in the network with equal demand will increase the Ethereum quotes.
The emergence of Dogecoin in the top of Coinmarketcap turned out to be as rapid as Elon Musk's rockets. It was Musk who re-energised this long-forgotten altcoin. Just a few tweets since mid-April, and the coin with the Shiba Inu face has grown 15 times.
Created by Billy Markus and Jackson Palmer as a joke, Dogecoin recently reached a capitalization of $83 billion. The capitalization of the Volkswagen Group, for example, is $172 billion, the capitalization of Russian Gazprom is about $72 billion. Of course, now the cryptocurrency has slightly dropped in price against the background of a general decline in the cryptocurrency market.
Dogecoin made a hit on the whim of Musk, who was looking for a pocketable cryptocurrency for internal use in his innovative projects. A further boost to the coin was provided by speculative messages about the alleged harm to the environment that Bitcoin miners are doing, spending energy to maintain the network.
When Dogecoin creator Billy Markus was asked on Twitter if he took environmental aspect into account when creating Dogecoin, he replied:
"I created DOGE in two hours and didn't count anything."
The guys just copied the code of old Litecoin from GitHub and launched Dogecoin for fun. The only amendment made is the block speed. Markus and Palmer made it 10 times higher and thus achieved an increase in the number of transactions per second.
Since Litecoin is a fork of Bitcoin, Dogecoin is basically running on a Bitcoin blockchain copy on a PoW consensus that needs energy to prove work done.
Chia’s crypto madness
We have long been accustomed to the regular shortage of video cards because miners are doing an important job—they are mining the coins desired by everyone. However, with the launch of Chia Coin (XCH), history will repeat itself, but with memory disks.
This coin has another way of reaching consensus—PoS (proof of space). Chia Coin uses a proof of space and time model, and not proof of work done like bitcoin or ethereum. This means that it is mined on hard drives and SSDs.
Rather, it is farmed. Unlike the terminology "miner" commonly used among other cryptocurrencies, here these people are referred to as farmers. They generate cash rewards for the Chia network by allocating disk space.
Since its launch on May 4, in just 11 days, the coin's value has surged from $700 to over $1,600, putting the SDD and HDD market down ruthlessly. The users not only buy hard drives and storage devices, but also opt for more expensive variants with more memory. TLC chip makers have been rushing to retrofit production to SSDs, while the increased demand allows them to be sold at doubled mark-on.
Now, to the shortage of controller chips, microcircuits, and processors, a shortage of memory chips has been added. Since the beginning of April, sales of internal hard drives have grown 2.5 times, of external HDDs and solid state drives—1.6 times, and internal SSDs—1.4 times. The management of Apple and Samsung said that in the near future there may be interruptions in the supply of some gadgets due to the lack of chips on the market. Chia is a truly destructive project that demolishes everything in its path.
Despite the technical advances, the cryptocurrency market is currently going through a turbulent period. Bitcoin fell by 40% and Ethereum—by more than 50%. The "bloody correction" has swept all sites and does not give any signals for the resumption of the uptrend yet.
However, this did not stop institutional investors. To quote John Rockefeller, "The way to make money is to buy when blood is running in the streets" And large funds did not fail to take advantage of an opportunity that does not happen often.
Apparently, now there is a large capital injection at the level of $30,000 per bitcoin. As soon as the critical mass is reached, the market will again storm new heights.
The whales are already at the start and ready for a new bull run.