Showing posts from April, 2024

Understanding Yield Farming Crypto

Yield farming crypto is one of the methods to get passive income from your crypto assets. With yield farming, you can profit from your crypto assets without having to sell them. This means you still hold onto your crypto assets while earning profits. Earning profits from cryptocurrency isn't by trading activities. There are other options you can use to profit from your own crypto assets, one of them is yield farming. So, what is the definition of yield farming? We'll explain it more clearly in detail below.  Understanding Yield Farming Yield farming is a method of generating crypto assets from held crypto assets by lending them to DeFi platforms. The process involves depositing or lending your crypto assets to other users, and as compensation, you'll receive yields. The concept is somewhat similar to traditional banking practices, where customer funds deposited are lent out to borrowers. Eventually, borrowers are charged interest, some of which is given as compensation to t

Understanding Bitcoin Lightning Network And How To Use It

The Bitcoin Lightning Network serves as a solution to Bitcoin's scalability issues, particularly concerning transaction processing limitations. Without scalability improvements, Bitcoin risks becoming an outdated digital asset. While Bitcoin was designed with blockchain technology to enhance transaction security, its low transactions per second (TPS) capability remains a significant drawback. The Bitcoin Lightning Network functions as a layer 2 payment protocol atop the Bitcoin blockchain, aiming to expedite and economize Bitcoin transaction costs. In essence, the Lightning Network accelerates Bitcoin transactions, rendering them faster and more efficient. By employing smart contracts, this network tackles Bitcoin's scalability constraints regarding TPS by utilizing off-chain payment channels, without compromising Bitcoin's decentralization and security. Moreover, the Lightning Network facilitates small-scale Bitcoin transactions. The Lightning Network boasts a capacity to

What Is Layer 2 In Crypto?

In its development, cryptocurrencies are not merely used for buying and selling transactions and as a medium of exchange. The emergence of Ethereum as the first blockchain to utilize smart contract technology paves the way for further scalability in cryptocurrencies. From there, arises what is called the DeFi sector, GameFi, and NFTs, which increasingly add value to the crypto world. With the increasing number of Ethereum users, issues begin to arise. The increasing number of transactions results in network congestion, leading to higher gas fees. Efforts must be made to address these issues. Hence, the birth of layer 2 technology to solve scalability and high transaction cost issues. So, what is layer 2 in crypto? How can it solve the scalability issues of the Ethereum network? This article will comprehensively discuss layer 2 crypto on the Ethereum network. What Is Layer 2? Layer 2 (L2) is a separate blockchain built on top of the layer 1 blockchain (Ethereum) to address network scala