Want to earn passive income? Of Course Yes!

There are 100 ways to earn passive income with ease. Among all, earning money with assets could be the best way for anyone.

Cryptocurrency is the popular way to earn passive income.

But how?

• Buy or trade crypto coins
• Mining currency
• Making cryptocurrency dividends
• Staking and a lot more

If you want to earn passive income with cryptocurrency, look no further than Aave. The crypto Aave is one of the good sources of investment. In this article, let’s discuss everything about Aave.

What is Aave (AAVE)?

Aave’s protocol is shifting from a decentralized peer to peer lending strategy to a pool-based strategy.

Aave (AAVE) is an open-source Defi protocol. Crypto is also called a “decentralized lending system”. Aave allows users to “lend, borrow and earn” on the crypto assets.

No middlemen are involved.

Running on a cryptocurrency such as Ethereum blockchain, Aave instead is a system of effective smart contracts that allows these assets to be well-managed by a distributed ledger of computers operating its software.

This truly means that Aave (AAVE) users don’t need to worry about unauthorized access. Because no institute or middlemen is required to manage or process their funds. At its core, Aave’s software will create lending pools where the users can easily lend or borrow cryptocurrencies. Users can either lend or borrow 17 cryptocurrencies. Yes, you’ve heard it right! The popular cryptos include Ethereum, MANA and more.

Who created Aave (AAVE)?

Aave was founded by Stani Kulenchov in 2017. Stani was a developer who had been deeply investigating the potential for crypto Ethererum to improve the transitional financial system.

Originally, Aave (AAVE) was introduced as “ETHLend”, with the token called “LEND”. After the first token offering (ICO) has raised more than 16.2 million dollars. The idea behind the original version of Aave is to create a one-stop destination that connects both lenders and borrowers. On the other hand, matching the loan request with the particular offers or deals.

But things went wrong. The adverse financial situation has urged a reappraisal of the “ETHLend” concept in 2018. The financial condition has encouraged Stani Kulenchov to rebrand their project as “Aave” (AAVE).

Finally, ETHLend has been rebranded or relaunched as “Aave” in the year 2020. The core feature that was introduced by Stani was “Aave’s algorithmic money market function”. 

What makes Aave (AAVE) unique?

It’s no secret that Aave (AAVE) token has multiple unique selling points than other cryptocurrencies. Yes, you’ve heard it right. When compared with other cryptocurrencies, Aave (AAVE) is growing its popularity day by day.

During the decentralized finance (DeFi) huge craze in 2020, AAVE was a popular project in terms of the complete value of crypto secured in its protocol.

The project AAVE allows users to lend and borrow in about 17 cryptocurrencies. This means users have a wider range of options to choose from. Among several features, AAVE’s flagship i.e “Flash Loan”, has become more popular. This has been charged as the original uncollateralized loan option in the space of DeFi. Keep a note, users need to pay back within a similar transaction.

Let’s have a look at another selling point of AAVE. It is the user’s who are borrowing through AAVE. They can fluctuate between either “fixed rate” and “variable interest rate”. Fixed-rate, as the name, suggests the price is fixed. At the time of volatility, the cost will be provided. The fixed price may vary from time to time. The variable rate is mentioned according to the borrower’s choice. The borrower may set the price.

This could be another unique feature of Aave.

How many Aave (AAVE) coins are there?

Now, let’s have a look at Aave coins that exist in circulation.

The circulation is directly linked to the complete value that is locked on the Aave (AAVE), as the coins are burned whenever the protocol will collect charges.

The initial Aave coin offering existed in Nov 2017. At that time, 16.2 million dollars was raised by trading 1 billion coins. During the origin, 23% of Aave (AAVE) tokens are assigned to the founder – Stani Kulenchov.

Aave coins have been designed according to the ERC-20 standard. It is said that Aave tokens are built to be deflationary. At the time of DeFi protocol shortfall, stacked coins are used as a security as the final resort.

Aave revealed the plans to maintain Aave token swap in July 2020. Simply put, 1.3 billion coins in circulation can be swapped for the recently minted Aave (AAVE) at a 1:100 ratio, creating 16 million Aave tokens in circulation.

How does the Aave (AAVE) work?

Aave (AAVE) is the native or primary token to the lending protocol. When the founder ETHlend was reintroduced to Aave in the year 2018, the primary token was named “LEND”. The LEND was finally migrated to AAVE in the year 2020. As mentioned above, there are 16 million AAVE tokens in circulation.

AAVE’s native use case is the governance of the Aave (AAVE) protocol. Governance will ensure the decentralized control of the AAVE platform. Sounds amazing right!!! Yes, it provides holders with an excellent opportunity or chance to vote on items. The items include management of the platform, allocating the funds, development of proposals and more.

Now let’s have a look at staking in Aave (AAVE).

Apart from governance, Aave (AAVE) tokens will be staked on the platform as well. Aave (AAVE) holders can lend the tokens to the liquidity pool. Here, the liquidity pool is called a safety module. The safety module in the Aave protocol will cover lenders during a capital shortage. In the case of requirement, the tokens in the safety modules can be exchanged or sold for the asset that is required to pay out the lenders. The lenders of Aave (AAVE) will receive protocol fees, rewards and more.

Conclusion

Aave is the decentralized money or value market running on the “Ethereum” blockchain. Aave enables users to both lend and borrows a series of assets. Aave was launched by Stani Kulechov. At initially, Stani introduced “ETHLend” in 2017. Later upgraded and reintroduced ETHLend as Aave in 2020. Aave (AAVE) protocol is designed on Ethereum, this is the blockchain that is performing the transition (Proof-of-Work – Proof-of-Stake).

It’s no surprise cryptocurrencies are growing in popularity more than ever. These are the digital currencies (Bitcoin, Ethereum, Litecoin) that are decentralized. They can be traded or sold through blockchain technology. Most cryptocurrencies have aimed to improve privacy, security and anonymity. However, the success factor may vary from one to another. For example, X person can view the transactions of Y person. While in other cryptocurrencies, X person cannot view the transactions of Y person, every transaction is saved privately. And still, there are few digital currencies that keep the privacy functionality strictly implicit.

While people discuss cryptocurrencies, they usually talk about Bitcoin. It is a popular cryptocurrency that uses P2P technology to process transactions with the coin. But, there is another cryptocurrency that has gained popularity and a high level of recognition. The cryptocurrency – Monero. XMR became popular, especially for “privacy-oriented” functionality.

If you’re unaware of Monero, this article is for you. Get complete information about what Monero is, unique features, working model and a lot more.

Let’s dive into the Monero cryptocurrency world!

What is Monero (XMR)?

Monero (XMR) is a popular and leading cryptocurrency. It is purely focused on both private and censorship-resistant transactions. Simply put, Monero is the open-source, peer-to-peer and privacy-oriented cryptocurrency introduced by Nicolas van Saberhagen in 2014.

As mentioned above, people can easily find the transaction details, history and other information of Bitcoin and Ethereum. It means user privacy is at high risk.

Monero (XMR) is here to rescue. XMR cryptocurrency uses several privacy-enhancing technologies and strategies to secure the anonymity of its users. Observers can’t decipher transaction amount, history, block height and other details.

The Monero team say “privacy”, “safety” and “security” are the top priorities. Efficiency and ease of use are the next priority. Monero’s (XMR) goal is to provide privacy to every user irrespective of how technologically skilled. Plus, the cryptocurrency Monero aims to allow transactions to be performed quickly and inexpensively.

Who are the founders of Monero (XMR)?

Nicolas van Saberhagen launched Monero (XMR) in 2014. According to the analysis, there are seven developers who are involved in the Monero creation process. Among them, five had remained anonymous. Also, there are rumours spreading around the world that Monero (XMR) was introduced by Bitcoin inventor – Satoshi Nakamoto.

Monero’s origins can be easily traced back to Bytecoin. It was a privacy-focused cryptocurrency introduced in 2012. After two years i.e 2014, Bitcointalk forum member – thankful_for_today has developed a BitMonero, this coin has coded according to the ideas (electronic cash, privacy and more). But other forum members had disagreed with thankful_for_today’s invention for BitMonero. Later, he forked BitMonero in 2014 to introduce Monero. Thankful_for_today and Van Saberhagen have remained anonymous.

People believe that hundreds of professional developers have contributed their services to the Monero (XMR) invention over the years.

What makes Monero (XMR) unique?

Privacy

Privacy is the top feature of Monero. Also, the value of Monero is increasing drastically due to its privacy functionality. All the information is safe and secure. No observer or hacker can link to Monero transactions.

The privacy feature is making Monero a favourite cryptocurrency for the one who is worried about privacy for multiple reasons.

Fungibility

Fungibility is a key property of money. Keeping it simple, fungibility states that two parties can be able to exchange an equal amount or value.

Example – 1XMR for 1XMR

Both the parties will receive an equal amount. No party will lose out on money.

Monero (XMR) cryptocurrency is fungible. With advanced privacy functionalities, there is no way to link your transactions or trace your history of any individual Monero (XMR). No transaction history details are associated with any of the Monero coins. Hence, XMR coins are fungible.

Scalability

Monero offers dynamic scalability functionality to its users. When compared to Bitcoin, Monero has an improved version of dynamic scalability. Simply put, the term scalability includes how well the decentralized network can increase in relation to demand. Other crypto’s such as Bitcoin is limited in size. Monero work is a different way. The block size is limitless in XMR. 

The Monero team has introduced the “Block Reward-Penalty System”. The median size of the blocks is 100. When a miner wants to add a new block, the block reward will get reduced.

How many Monero (XMR) coins are there in circulation?

Currently, there are 17 million Monero (XMR) coins in circulation. The total supply of XMR will reach 18.4 million in May 2022. At this moment, there is no maximum supply for Monero.

All the XMR coins are issued to the users or miners to incentivize them. This way, miners can provide immense support to the network.

The block rewards in Bitcoin can drop to zero. This is not the case in Monero’s block reward system. It means, miners will never drop their rewards to zero. Instead, miners will constantly decrease till tail emission commences in May 2021. At that moment, rewards are fixed i.e 0.6 Monero per block.

As per analysis, there are 432 Monero (XMR) coins created every day. Anyways, miners require an incentive to mine. As mentioned above, Monero offers dynamic scalability, competition between every miner will decrease due to less cost. When mining is expensive, miners will stop mining and this could be the reason they reduce the security of the decentralized networks. 

Monero (XMR) was released in the market without pre-mine or founder’s funds. On the other hand, XMR has the highest market cap when compared to other privacy coins. The highest Monero coin value was 351.64 USD on 8th Jan 2018. The current XMR price is $262.87. The amount of transactions is increasing day by day.

How does Monero (XMR) work?

Monero (XMR) is popular for privacy and anonymity. In order to offer these two functionalities, Monero (XMR) relies on two key concepts i.e 

• Stealth addresses
• Ring signatures

Stealth addresses

Stealth addresses play a vital role in Monero’s inherent privacy. It enables a sender to create a random one-time public address for an individual transaction on behalf of the recipient. However, the recipient can use a single public address for getting their transactions. This process could be similar to Bitcoin. With a stealth address, the sender and receiver can decide where their transaction was sent.

Every Monero (XMR) user can generate two keys

• Private view key
• Public view key

The private view key is used to view all the transactions that are associated with an individual account. On the other hand, the private spend key is used to send transactions or authorize transactions.

Ring signatures

In cryptography terminology, a ring signature is one of the popular types of digital signatures.

Ring signature can be signed by any one of the specific groups of user’s with private keys. Whenever a user performs a Monero transaction, the Monero Wallet creates a ring out of the remaining user’s keys extracted from the blockchain. For observers, it is highly impossible to say whose key was used to sign. Also, the transaction history and other details remained anonymous.

Monero (XMR) introduced “RingCT” – Ring Confidential Transactions in January 2017. The ultimate goal of RingCT is to hide the number of transactions.

Wrapping up

It’s a well-known truth that transactions performed on Bitcoin, Ethereum and other cryptocurrencies can be verified by anyone around the world. With block height, address and hashID, everyone can trace the transaction information. The address of the sender or receiver could be linked to the identities of the real world. Ultimately, user data is at high risk. With privacy-enhancing techniques, Monero offers privacy. Everyone is anonymous by default in XMR. Monero is a leading e-cash that allows secure and confidential transactions to and from anywhere around the world. Nobody can trace the transactions or see the history on the Monero (XMR).

The global economy is stepping towards a digital ecosystem. From transferring the money to your friend to investing for retirement, everything is moving towards paperless.

With the advancement of technology, cryptocurrency has become a popular digital currency that is secured by “cryptography”. No bank, institution or other third party is involved while performing transactions.

Since cryptocurrencies are not issued by the bank or government, people are showing interest while investing the digital currency. Also, the field has expanded dramatically. Bitcoin and Etheruem are trendsetters. Apart from these digital currencies, Filecoin is another popular type of cryptocurrency.

Have you ever heard about Filecoin? If your answer is No. This article is just for you.

What is Filecoin (FIL)?

Filecoin is the P2P network that stores user files to ensure security. This decentralized storage system’s goal is to store and secure user’s sensitive information. Users need to pay while storing their personal data on Filecoin storage miners.

“Storage Miners” are computers that are responsible for storing the user’s files. Also, proving the user’s that their files are stored in a secure way.

If you’re looking to save personal information, a storage miner could be a great choice. Keep a note, you need to pay for storing your files. Also, you can store other people’s files as well.

Join Filecoin today and store personal or other important information without hassles. The storage space, usage of the storage, pricing is not controlled by the individual organization. Instead, Filecoin (FIL) facilitates open markets for securely storing and retrieving files. Anyone can become a member of Filecoin.

Filecoin comprises “blockchain” and “native cryptocurrency”. On every file storage, the storage miner will get units of Filecoin (FIL). FIL blockchain is responsible for recording transactions to either send and receive. Also, blockchain collects the proof from the miners that the files are stored in the correct way.

Who are the founders of Filecoin (FIL)?

Filecoin was introduced by Juan Benet. Benet is an American computer scientist, who was born in March 1988. He is the founder of Protocol Labs. The company is popular for computer network research and development. After founding the company in May 2014, Benet has participated in “Y Combinator” with the core intention of encouraging Filecoin (FIL), IPFS and other projects. 

Juan Benet is well known as an IPFS (InterPlanetary File System) creator. IPFS is a P2P decentralized protocol. 

In 2017, Protocol Labs received a token purchase to secure funds for further development of Filecoin. It was raised upto $205 million.

What makes Filecoin (FIL) unique?

The ultimate goal of Filecoin (FIL) is to store information in a decentralized way.

There are cloud storage organizations such as Cloudflare, Amazon Web Services and more in the market. These companies are inclined to the difficulty of centralization.

Thanks to Filecoin (FIL)

Filecoin (FIL) leverages its decentralized nature in order to secure and protect the integrity of data storage locations. On the other hand, Filecoin is making it simple to retrieve and difficult to censor.

“Open market” is one of the attractive features offered by Filecoin (FIL). Anybody can store or retrieve their files in open markets. No permission is required to become a member of the Filecoin network. A miner just needs a strong internet connection and additional disk space.

Filecoin offers competitive prices. User’s don’t need to burn their pockets to store their files on Filecoin (FIL). Since there is no corporate pricing, the cost for storing or retrieving the files are managed by supply and demand.

Reliable storage is another unique feature of Filecoin. Because the user needs to pay for storing their files. Filecoin (FIL) gives a viable solution for user’s files to stay available around the clock. User files are stored on desktops or computers that are reliable and connected online.

How many Filecoin (FIL) coins are there in circulation?

As mentioned above, Filecoin was developed by Protocol Labs. The company denotes Filecoin’s (FIL) as “Market for Data”. It means users can sell their own storage space or additional storage space to others, who are looking to save their files.

Filecoin tokens can be traded by

• Developers
• Storage miners
• Token holders
• Clients and
• Ecosystem partners

As per Protocol Labs rules, Filecoin (FIL) markets are file storage or retrieval and on-exchange Filecoin token trading.

There are 400 storage miners who will participate in the Space Race in 2020. This was the good reason to increase the capacity of Filecoin’s network by more than 325 pebibytes. As per analysis, around 3.5 million Filecoin tokens will be issued to the Space Race members.

The circulating supply of Filecoin (FIL) is 96 million. Among them, 1.97 billion Filecoin tokens have been supplied. The current price of Filecoin is $68.75. The Filecoin token price is up 1.1% in the past 24 hours. Token price may vary from time to time.

How does Filecoin (FIL) work?

It’s no surprise that the Filecoin (FIL) working model is similar to cryptocurrencies such as Bitcoin, Ethereum and more. But there are few basic differences that you need to be aware of.

Let’s have a look at the Filecoin working model.

The Network

Filecoin (FIL) is a decentralized network. At P2P networks, peers will communicate or transfer information with each other. Also, they can discover new peers and share the information securely. The data such as blocks or personal messages flow even when there are hundreds of peers connected on the network.

Filecoin (FIL) nodes

Filecoin nodes are also called Filecoin clients, these nodes are responsible to validate every message or data in the block. Also, Filecoin clients can publish several types of messages to the blockchain network through broadcasting techniques. Let’s consider, a client can publish the storage space information to send Filecoin from one address to another.

Managing and handling the Filecoin node is an easy task. The task involves a program that is running around the clock. 

Filecoin (FIL) miners

The Filecoin miners are responsible to provide services by executing multiple deals. For every 30 seconds, a new deal is appended. Miners will collect Filecoin rewards for executing every new deal. Managing and running a miner could be a difficult and high-technical job. It requires powerful hardware requirements.

Deals

Now let’s talk about deals in Filecoin (FIL).

There are two types of deals such as

• Storage deals
• Retrieval deals

Storage deal – It is the agreement between storage miners and clients to store files or information in the network. Once the storage deal is initiated by the client, the storage miner will receive the files to store. Also, miners will prove to the blockchain that the data is stored according to terms. In the end, miners will receive rewards. If failed, the miner will lose the Filecoin.

Retrieval deal – It is the agreement between retrieval miners and clients. The retrieval miners need to extract the files or information that is stored securely in the network.

Proofs

The real game of Filecoin. As mentioned earlier, the storage miner needs to prove to the client or chain that they’re storing the files or information according to the deal terms. It simply means miners are storing all the received files and storing them for a lifetime. Cryptographic proofs are used for validating the deals.

Wrapping up

Filecoin is a decentralized data stored network. Filecoin was created by Juan Benet in Protocol Labs. He also created IPFS –  Interplanetary File System. At Filecoin, users can store their files or sell the storage space on an open platform. Keeping it simple, Filecoin acts as the security layer for the InterPlanetary File System. IPFS is the p2p network that allows sending and receiving data files. Filecoin (FIL) turns IPFS Storage System – Algorithmic market. Users can store or distribute the files on the network. Storage miners collect payment from users for storage usage.

The Ethereum network, even though it is the most popular blockchain network out there today, has some serious problems facing it. Some of them include its poor user experience, Low throughput, high gas fees etc. A lot of projects are exploring ways to deal with these limitations on the Ethereum(ETH) ecosystem through Ethereum compatible blockchains. But no protocol is available to build or connect those blockchains, which could lead to the fragmentation of the system. That is where Polygon (MATIC) comes in. Polygon (MATIC) could as well be the best shot at eliminating these problems and improving the user experience on the Ethereum(ETH) blockchain. And all of this could be done without compromising or changing the integrity and security of the blockchain. Interesting enough? Let’s go ahead and explore more about this project, its objectives and its specifications. 

What is Polygon (MATIC)?

Polygon(MATIC), formerly known as MATIC network, is a platform that aims to build an ecosystem of blockchains that are Ethereum compatible. Their framework allows the developers to each build and launch DApps and Ethereum compatible blockchains with a single click. The platform is the first among its type and still is one of the most effective ones. 

Imagine a crypto world with lower gas fees and people being able to easily exchange information and value, without the divides that separate the blockchains today, that is the kind of world Polygon(MATIC) aims for. Polygon can create a multi-chain ecosystem like that of Cosmos, Avalanche etc., along with added advantages of openness, a vibrant ecosystem and Ethereum’s security.

Polygon is hosted on the Ethereum Blockchain. Like almost any other blockchain, Ethereum too has a major scalability issue. Scalability here refers to the ability of the blockchain and its algorithm to increase the number of transactions they can complete per second(TPS) when there is a rush of users. Being a much freer ecosystem than most blockchains, Ethereum is open to developers who are interested in coming up with ways to increase the scalability of the Ethereum blockchain. Polygon came out as an interesting project in this area, the team proposed a solution for Ethereum’s scalability issue by proposing to create a standalone ecosystem that can adapt to the needs of different protocols. Even though it is a relatively new project, the uniqueness in its methodology and ideas, Polygon(MATIC) rose to the top in no time. 

Who are the Founders of Polygon(MATIC)?

Polygon is based in India and was initially known as the Matic network. Initially Polygon or how it was called then, The Matic network came into business offering a Layer-2 scaling for Ethereum’s blockchain. Polygon was founded in October 2017. There are four co-founders of Polygon, Jaynti Kanani, Anurag Arjun, Sandeep Nailwal and Mihailo Bjelic. Jaynti Kanani, who is also an experienced blockchain developer, is now the CEO of Polygon(MATIC). Anurag Arjun is the non-programming co-founder of the network. Sandeep Nailwal is the Chief Operations Officer of Polygon and is also an entrepreneur and a blockchain developer. He also served as the Chief Executive Officer of Scopeweaver and also as the Chief Technical Officer of the Welspun Group. Recently, Mihailo Bjelic from Serbia was also added as one of the Co-founders of Polygon.

What makes Polygon(MATIC) Unique?

As already mentioned above, Matic Network was originally interested in increasing Ethereum’s scalability. But as it expanded its objective, it also rebranded itself as Polygon as we now know it. Polygon provides the developers with a variety of tools, with the help of which they can build blockchains that are capable of ultra scaling and high performance. It also allows them to build DApps also known as Decentralized Applications.

This function of Polygon (MATIC) makes it unique as none has managed to do so. On top of that, Polygon’s Scalability Solution supports EVM(Ethereum’s Virtual Machine). This solution enables the chains that are connected to Ethereum to interoperate with the EVM and with each other and also let them retain self-sovereign security. With Polygon any blockchain can cooperate with another without having to face any issues. 

How many Polygon(MATIC) tokens are there?

Polygon’s resource tokens otherwise known as MATIC are released on a monthly basis. The total supply of MATIC is 10 billion, which means 10000 million MATIC were already created. For MATIC the total supply and the maximum supply are the same which means that 10 billion MATIC  is the maximum supply of MATIC we will see in this lifetime of the cryptocurrency. 6.45 billion MATIC are currently circulating around the crypto world.

Polygon(MATIC) issued 3.8% of MATIC’s maximum supply in 2017 at its Initial Private Sale. Later 19% of the total supply was sold in 2019 at its launchpad sale where it generated 5 million dollars. Out of the remaining supply of the coins, 16% are the Team tokens, 4% are the Advisors tokens, 12% are the network operations tokens, 21.86% are the Foundation tokens and 23.33% are the Ecosystem tokens. According to the schedule of release, all the MATIC tokens will be released by December of 2022.

How does Polygon(MATIC) Work?

Polygon(MATIC) like they describe themselves as is a project “From Developers to Developers”. It is a framework to build and connect blockchain networks that are Ethereum compatible. Polygon allows anyone to easily build a blockchain network, with combined benefits of the best features of Ethereum and standalone blockchains. That way the blockchain network thus built would be having sovereignty, flexibility, scalability, interoperability and security, all in one. 

They provide infrastructure for the developers to build their own blockchains, customising them to how they want them to be. The modules that are provided by Polygon include the governance and consensus modules, virtual machine implementations and different execution environments. The blockchains thus formed can benefit from the proof of stake of MATIC and can make the transactions faster with minimum fees and later finalise everything on the Ethereum mainchain.

The platform can support a variety of blockchain scaling mechanisms like Optimistic rollups, Jk rollups, Matic Plasma and Validium chains which can multiply the throughput of the blockchains without putting the security or the user experience at stake. Polygon supports Matic plasma which offloads transactions from the Ethereum main chain to the Matic’s Proof of Stake chain thereby speeding up the process, before finalising them on the mainchain.

In Conclusion

Polygon though stepped foot very recently into the crypto space, has made major contributions to the crypto world by eliminating major problems that are facing Ethereum. It also gave the developers a chance at freely developing custom blockchains with added benefits. Their token MATIC is currently in the top twenty cryptocurrencies in the world.  Polygon proves to be peculiar in its nature as it can adapt to any mechanism or protocol in the Ethereum world and it is also one of the strengths of Polygon. To read more such articles visit Postling.