##### **What is Cryptocurrency?**

A cryptocurrency is a collection of binary data which is designed to work as a medium of exchange. Usually, the data is created using the same methods as cryptography (the science of hiding information). Cryptocurrencies use ‘decentralized control’, which means that they aren’t controlled by one person or government.


Bitcoin is one form of cryptocurrency, and one of the most popular among others.


**What then is a Crypto Wallet?**

A crypto wallet is a secure digital wallet that safely keeps your private keys — the passwords that give you access to your cryptocurrencies — allowing you to send and receive cryptocurrencies like Bitcoin, Ethereum, and USDT.


Your assets are stored on the blockchain, but only a private key can be used to access them. Your keys verify that you own your digital currency and allow you to transact with it. You lose access to your funds if your private keys are lost. That’s why it’s critical to safeguard your hardware wallet or utilize a reputable wallet service like [Bitpowr.com](https://bitpowr.com/), blockchain.com.


**How does a crypto wallet work?**

You simply can’t use a cryptocurrency without owning a crypto wallet, they sort of work like emails, to send and receive emails you’ll need an application like Gmail or Yahoo Mail.


Just like your email address you need a unique personal address for you to receive and send cryptocurrencies.


When creating a Gmail or yahoo mail account, you will be asked to create your own password. However, on the blockchain, the wallet chooses it for you at random. This password is known as your private key, and it should never be shared with anybody, just like your email password.



**Types of Crypto Wallet**


Hot wallets and cold wallets are the two types of blockchain wallets based on private keys. Hot wallets are similar to the wallets we use for everyday transactions, and they are user-friendly. Cold wallets are similar to vaults in that they hold cryptocurrency in a secure manner.


**Hot Wallets**

Hot wallets are online wallets that allow you to send and receive coins instantly. They can be found on the internet examples are Coinbase, Blockchain.info and [Bitpowr.com](https://bitpowr.com/) are some examples.


**Cold Wallets**

Cold wallets are offline wallets that are not stored anywhere on the internet and are usually stored on a local device, entity, or hardware. They are usually used as custodians for hot wallets. Examples are Ledger Hardware Wallet.


Usually, private keys are saved in the cloud with hot wallets to speed up the transfer process. Private keys are either stored on a paper document or in separate hardware that is not connected to the internet or the cloud with cold wallets. Hot wallets are convenient to use online 24/7 and can be accessed from a desktop or mobile device, but there is a risk of unrecoverable theft if they are hacked. When using cold wallets, the transaction mechanism aids in preventing illegal access to the wallet (hacking and other online vulnerabilities).


These wallets are further divided into three types:


- **Software wallets**

- **Hardware wallets(which you plug into your USB drive)**

- **Paper-based wallets.**


**Software Wallets**


A software wallet is an application that is downloaded on a device; it could be a desktop or a mobile device, or it could be a web-based wallet that can be accessed online. Breadwallet, Jaxx, and Copay are popular software wallets.


We can further categorize software wallets as desktop wallets, online wallets (web wallets), and mobile wallets.


**Desktop wallets**


They are cold wallets in which the private keys are stored in cold servers (on your desktop). You can unplug the wallet from the Internet, do some offline transactions, and then bring it back online. In case the main server is lost, then a cold server, basically your desktop, is used as a backup server.



These wallets can be downloaded on any computer, but they can only be accessed from the system they’re installed on, so make sure the desktop or machine you’re downloading the desktop wallet on is safe (has a backup and is kept in a secure location), and that you’re maintaining the hardware and not letting it go anywhere.



These wallets are unquestionably cost-effective. One of the most popular desktop wallets is Electrum.



**Online Wallets**



These are a type of online hot wallets. These wallets can be accessed from any device by users. You can use a tablet or a desktop computer, or you can use your mobile browser to access it. A third party manages the private keys, which are stored online. GreenAddress, for example, is a Bitcoin wallet that can be accessed via the web, Android, desktop, and iOS.



**Mobile Wallets**


Mobile wallets are similar to online wallets except that they are built only for mobile phone use and accessibility. These wallets have a user-friendly interface that helps you do transactions easily. Mycelium is the best available mobile wallet.



**Hardware Wallets**


A hardware wallet is a type of cold storage device, typically like a USB, that stores the user’s private key in a protected hardware device. These wallets are similar to portable devices that can be connected to the computer (plugged in). As noted earlier, they are less prone to malicious attacks and are hack-proof. Ledger, Trezor, and KeepKey are the top hardware wallets on the market.



To make a transaction from your hardware wallet, you have to ensure that the hardware wallet is plugged into your computer system.



**Paper Wallets**



A paper wallet is an offline process for storing cryptocurrencies. This wallet is a printed paper that has both your private key and public key, which are accessed using a QR code. Since these wallets are safe, they are widely used for storing large amounts of cryptocurrencies. Bitcoin Paper Wallet and MyEtherWallet are two widely used paper wallets.



A paper wallet works with your software wallet to transfer funds from your software wallet to the public address shown on your paper wallet. First, you park your funds in a software wallet, then you transfer the funds from your software wallet to the public address printed on the paper wallet.



**Why are crypto wallets important?**

The benefits of cryptocurrency wallets are:



- They are very simple to use.

- You can have multiple coins in one place.

- Wallets’ security is very reliable; they keep you safe while making a transaction.

- They manage your profile better.

- You can buy, sell, and Hold without hesitation.

- And the most important thing is that they have a dedicated support team.




##### **The importance of backups**

It can be very costly to lose access to your cryptocurrency wallets. As a result, it’s critical to back them up on a frequent basis. This is frequently accomplished by simply backing up wallet.dat files or seed phrases. A seed phrase functions similarly to a root key in that it produces and grants access to all keys and addresses in a crypto wallet. Also, if you use password encryption, make sure you have a backup of your password.



**Conclusion**



Crypto wallets are an integral part of using bitcoin, Ethereum, and many other cryptocurrencies. In this article, you’ve been able to learn What crypto wallets are, the types that exist, and the benefits of using them. It is very crucial to understand how they work before moving your funds.


[Bitpowr technologies](https://bitpowr.com/) help you as businesses build on the blockchain, manage your digital assets, and accept crypto payments. Sign up today at [Bitpowr.com](https://bitpowr.com/)

Generally, wallets are a piece of item we keep in our pockets to store our cash, in the same light crypto wallets sort of help you to hold and manage your digital cash

Understanding Crypto Wallets

##### **Some Features that Make Web3 Standout.**


**1. It Gives Financial incentives.**

The buzzword “Web3” always has a way of bringing cryptocurrency into the conversation. This is because cryptocurrency plays a big role in many of these protocols. It provides a financial incentive (tokens) for anyone who wants to participate in creating, governing, contributing to or improving one of the projects themselves. These protocols may often offer a variety of different services like computation, storage, bandwidth, identity, hosting, and other web services commonly provided by cloud providers in the past.


People can make a living by participating in the protocol in various ways, in both technical and non-technical levels. Consumers of the service usually pay to use the protocol, similarly to how they would pay a cloud provider like AWS today. Except in web3, the money goes directly to the network participants.


In this, like in many forms of decentralization, evidently, intermediaries are cut out.


Many web infrastructure protocols, such as Filecoin, Livepeer, Arweave, and The Graph, have utility tokens that govern how the protocol operates. These tokens are also a form of reward to the service users at various levels. Even native blockchain protocols, such as Ethereum, work in this manner.



**2. Decentralized Finance**

Decentralized Finance (DeFi) is centered on Decentralized Applications (DApps) often accessed via a Web3 enabled browser plugin or programs, such as MetaMask and other wallet connectors, enabling users to interact directly with the blockchain via a digital wallet. Transactions are made directly between participants, mediated by smart contract programs, rather than through a centralized intermediary like a bitcoin exchange or regular securities exchange on Wall Street. These smart contract programs, also known as DeFi protocols, are often constructed and maintained by a community of developers.


Many of these DApps can communicate with one another to form complicated financial services. Stablecoin holders, for example, can lend assets like USD Coin to a liquidity pool in a borrow/lending protocol like Aave, and allow others to borrow those digital assets by depositing their own collateral, which is usually greater than the loan amount. The protocol modifies interest rates based on the asset’s demand at any given time.


Other DeFi protocol are Pancake on Binance Chain, Uniswap on Ethereum, Paraswap on Polygon, which are Decentralized Exchanges or DEXs, all running on various blockchains.


These DEXs encourages users to create liquidity pools in exchange for a share of the trading fees made by traders transferring tokens in and out of the liquidity pools, rather than using a centralized exchange to fill orders.


Uniswap for instance allows for the trading of hundreds of different ERC20 tokens issued on the Ethereum blockchain. These liquidity pools allow users to swap one token to another, in a fully decentralized manner, while maintaining control over their funds. At the same time, liquidity providers are encouraged to deposit tokens for a portion of the fees generated by the exchanges. After having pooled their tokens, liquidity providers may remain completely passive as the smart contract takes care of automatically adjusting the liquidity-providing logic depending on the current market price.


Thus, DEXs are powered by Automatic Market Makers(AMM) which are based on mathematical formulas, making it possible to estimate the exchange rate between two assets by considering the liquidity present on the protocol.


Because no centralized party runs Uniswap (the platform is ultimately governed by its users), and any development team can leverage the open-source software.


Also, crypto infrastructures like [ Bitpowr](https://bitpowr.com/) enable users to integrate easy, anonymous, and secure international payments and transactions into web3 applications.


Unlike the current financial system, users do not have to go through the traditional numerous, friction-filled steps to interact with and participate in the network. All they need to do is download or install a wallet, and they can start sending and receiving payments without any gatekeeping.


**3. A new way of building Governance**

[DAOs](https://linda.mirror.xyz/Vh8K4leCGEO06_qSGx-vS5lvgUqhqkCz9ut81WwCP2o) (Decentralized Autonomous Organizations), are an alternative way to build what we traditionally thought of as a company, are gaining tremendous momentum and investment from both traditional developers and venture capital firms. These organizations are tokenized, and they change the concept of organizational structure by providing real, liquid, and equitable ownership to a wider number of stakeholders, as well as aligning incentives in novel and exciting ways. For example, [Friends with Benefits](https://www.fwb.help/) is a DAO of web3 builders and artists, is about a year old, has a market cap of around $125 million and recently received [a $10 million round](https://tittlepress.com/crypto/1146487/) of investment from [a16z](https://a16z.com/).


Tokens also give rise to tokenization and the creation of a token economy. Consider the present condition of software development. Someone has an idea, but they need money to get started. They raise venture capital and distribute a portion of the company’s stock to get the funds. This investment creates misaligned incentives right away, which will make it difficult to build out the optimal user experience in the long run.


Also, if the company ever does become successful, it will take a very long time for anyone involved to realize any of the value, often leading to years of work without any real return on investment.


Instead, imagine a new and exciting project that solves a real problem is announced. From the beginning, anyone can contribute to its development or invest in it. The company announces the release of x number of tokens, of which 10% will be distributed to early builders, 10% will be sold to the general public, and the remainder will be set aside for future contributor payments and project funding. Stakeholders can use their tokens to vote on changes to the project’s future, and those who contributed to its development can sell some of their holdings to profit after the tokens are released. People who believe in the project can buy and hold ownership, and people who think the project is headed in the wrong direction can signal this by selling their stake. In contrast to buying equity in private or centralized businesses where a lot are often cloaked in secrecy, activities are publicly open and completely anonymous eliminating the issues of trust or security.


This is already happening in the web3 space vivid examples are:


- [Radicle](https://radicle.xyz/blog/introducing-rad.html) (a decentralized GitHub alternative) which allows stakeholders to participate in the [governance](https://everest.link/category/0x46aff9a161267c2c01f5ce1b6e3b717a77f21480/) of their project.

- [Gitcoin](https://gitcoin.co/) is another that allows developers to get paid in cryptocurrency for jumping in and working on Open Source issues and projects.

- [Yearn ](https://docs.yearn.finance/faq#governance) allows stakeholders to participate in decision making and voting on proposals.

- [Uniswap](https://uniswap.org/blog/uni/), [SuperRare](https://superrare.com/rare), [The Graph](https://thegraph.com/blog/the-graph-grt-token-economics), [Audius](https://audius.co/), and countless other protocols and projects have issued tokens as a way to enable ownership, participation, and governance.



**DAOs could encompass an entire post in and of themselves, which we will look at in the next article but for now, let’s just say that they are the future of building products and companies.**


**4. A Better Way of Identification**

In Web3, identity works much differently from what we are used to, the technology may become one of the most important features of Web 3. The point is that Web 2.0 is infested with cybercrime of all kinds, from identity theft to click fraud.


It occurs because the connection between two computers has not been properly authenticated. With Web 2.0, a server never knows for certain that the client software accessing it is what it claims to be, the browser has no way of knowing whether the server and files it is accessing are the ones it intends to access.


However, if everyone involved in such an interaction had a verifiable identity, deception and fraud would be much more difficult to perpetrate because each ID must be linked to a unique credential, such as a birth certificate, individuals can only have one verifiable identity with Digital IDs. Organizations, too, can have only one verifiable identity. Everything else (hardware and software) involved in a client-server interaction can be directly linked to a unique ID belonging to an individual or an organization.


Also in most Web3 apps, IDs are linked to the user’s wallet address.


Unlike Web2 authentication techniques like OAuth or email + password, wallet addresses are fully anonymous unless the user chooses to link their own identity to it publicly. If a user uses the same wallet for various dapps, their identity is also instantly convertible between apps, allowing them to build up their reputation over time.


Protocols and tools like [Ceramic](https://ceramic.network/) and [IDX](https://idx.xyz/) already allow developers to build self-sovereign identity into their applications to replace traditional authentication and identity layers. The Ethereum Foundation also has [a working RFP](https://notes.ethereum.org/@djrtwo/sign-in-with-ethereum-RFP) for defining a specification for “Sign in with Ethereum” which would help provide a more streamlined and documented way to do this going forward.



**In summary:**

Evidently, it’s undeniable that Web3.0 technologies are fast-growing and making the internet more equitable. It is also providing users with a high level of autonomy and anonymity against identity risks or crises etc and rewarding with incentives for being a user of the technology.

Computer scientist Tim Berners-Lee, the inventor of the World Wide Web.

Web3 — Decentralized Internet of the future and its Benefits.

##### **Why Use a Crypto Wallet?**

Are you still thinking of why you should use wallet ? well, a study from Juniper Research found that the number of people using digital wallets will increase from 2.3 billion to nearly 4 billion, or 50% of the world’s population, by 2024.
This would result in an increase of more than 80% in wallet transaction values to more than $9 trillion per year.
Also traditional banking systems have a number of flaws that make it difficult to complete any transaction. For starters, transactions are frequently slow because they must go through intermediaries, such as banks, implying that there is a single point of failure. Data can be jeopardized, altered, or even corrupted across numerous systems where accounts and balances are maintained. These issues are reduced or eliminated with crypto wallets.

##### **What is a Crypto Wallet**

**A cryptocurrency wallet** is a device, program or physical medium, which stores the [public and private keys](https://en.wikipedia.org/wiki/Public-key_cryptography) for [cryptocurrency](https://en.wikipedia.org/wiki/Cryptocurrency) transactions. The crypto wallet programs are available for mobile phones, desktops, and even as pieces of hardware.
These wallets can be compared to how emails work, read our previous article to [understand](https://bit.ly/2ZaBQei) better.

##### **How different Individual use Crypto Wallets**

##### **AJ:**

Hey! For me a crypto wallet is a digital bank, i use Trust wallet and Ledger. Trust wallet is online and used and trusted by millions of people. I also use Ledger, its offline…feels a lot safer. Knowing that I can stuff my crypto away and I control my own keys has been most beneficial.


##### **Vin:**

Crypto is a store of digital assets, I mostly use Software wallets. They are Profit on investment for me.


##### **Marc:**

I use Decentralized exchange wallets like Trust wallet Centralized exchange wallets (more of exchanges than wallets, although it somewhat serves similar purpose): Binance, Gate, KuCoin and most recently FTX . The Benefit to me is it holding my assets more or less. I also have portfolio managers like Coinmarketcap and Coingecko to help track and manage my assets across wallets

##### **Tobi:**

Crypto wallet is digital storage that stores my crypto currencies, I use Argent for ethereum assets (has the best wallet infrastructure), I use blockchain.com (for BTC, BCH), Binance for exchange. Wallets help me move money easily. From all the above mentions it is safe to say you have more to gain when you use crypto wallets to keep your assets.

##### **How different Businesses use Crypto Wallets?**

**Collecting NFTs:** All NFT focused businesses one way or the other use wallet like metamask to store the information regarding the location of your NFT assets on the blockchain. A wallet is an essential tool if you want to start collecting NFT’s as it provides private keys or passwords that allow a holder to access funds and assets stored on the blockchain.

**Building multicurrency wallets:** Wallet infrastructures such as bitpowr could make building multicurrency crypto wallets like Coinbase Wallet and Exodus much faster and easier. A deposit address, blockchain data, exchange rates, and transaction broadcasting are all that is required of a multicurrency crypto wallet. With one integration, you get them all.

**Retail Platforms — Payment processing :** Retail platforms can easily generate multiple wallets (hot, cold, hd, multisig) and addresses for customers use.

##### **Trading Firms like Hedge funds**

Asset managers use Crypto wallets as secure cross-exchange trading environment infrastructure to trade capital across different exchanges.

**Crypto Exchange platforms:** In a matter of days, you can launch scalable crypto exchanges using infrastructures like bitpowr’s while maintaining security. You can create transactions, deposit addresses, and receive notifications for incoming transactions (withdrawals).

##### **Thinking of wallet services to use, Check out some from [ Bitpowr](https://bitpowr.com/)**

**1. Crypto Wallet**


These are bare wallets like non-custodial wallets that are not connected to private ledger account. [Bitpowr](https://bitpowr.com/) has limited control over these wallets The end-users (mostly developers), will handle every operation by themselves using the API. Funds in crypto wallets are not managed by Bitpowr and can only be moved by the end-users (developer)

**2. Exchange Wallet**


These are wallets that are connected to [Bitpowr](https://bitpowr.com/) private ledger account for instant internal settlements, connected to external fiat/crypto exchanges for fx. The developers have minimal control on moving funds from the addresses from these wallets as they are controlled by Bitpowr for easy fiat exchange and to save the tx fees. You can easily move funds between exchange wallets on Bitpowr network instantly with no tx fee.

**3. Savings Wallet**


These are types of wallets that are generated using the crypto wallet, connected to a private ledger account, and created as contract addresses on supported chains. All ETH, TRON, CELO addresses are generated and deployed as a contract to each blockchain.

##### **What can you do with [bitpowr](https://bitpowr.com/) wallet services?**

**Easily Create, manage and secure your crypto-wallets :** You can manage Multiple wallet and currency from a single interface. Bitpowr Wallet allows you to easily manage all your accounts and cryptocurrencies from an intuitive interface.

**Create multi assets wallets:** Assets that contain popular cryptocurrencies, such as Bitcoin or Ethereum, wallets for each team or department in your organization. User and wallet-based transaction policies. Define specific transaction policies for cryptocurrency accounts. Add different users to each account and define their roles, permissions, and limits.

**Assign Chained and Threshold Approval Process:** Design and approval chain specific for each wallet or account. In a real corporate environment, multiple approvers do not share the same level of permission. With Bitpowr Wallet, you can combine multi-level approval chains with M-of-N approvals and threshold levels, adapting the approval process to the needs of a company.

**Assign Roles & Permissions:** Assign roles to different users for each wallet, such as wallet operator, approver or auditor.
Transaction limits: Establish transaction limits for each wallet and user, including maximum transfer amount and maximum operations per day.

##### **Schedule withdrawals**

Schedule periodic withdrawals from a wallet for daily, weekly or monthly transfers. Monitor balance to trigger payment automatically Configure automatic transfers when a certain balance is reached.

##### **Conclusively**

The future wallet will serve as a gateway to protocols and services, as well as a representation of our professional and personal financial standing. Wallets will evolve from being something we use occasionally to something we use all of the time. Our digital wallets will become the single most significant storage location for everything from our money to our identities.

How individuals and Businesses benefit from using crypto wallets.

Why Use Crypto Wallets?

##### **Bitpowr : A Wallet and Digital Assets Infrastructure**

Bitpowr aims to make building and scaling your business or product ridiculously easy on the blockchain


Web3, Blockchain, DAOs, NFTs, and the new Metaverse are the latest buzzing words and terms painting the future of a decentralized world of finance and ownership. The blockchain and crypto space keeps evolving and has pretty much been amazing with what is and could be achieved in a matter of time.
Blockchain is the future of decentralized finance, borderless payments, and ownership. These unique benefits of blockchain and its ecosystem can be harnessed by businesses, startups, and individuals to scale and access the global digital market at large.


Blockchain technology has seen a lot of hype especially in the finance ecosystem, which makes many business leaders keenly interested in adopting it to their business components but also concerned about blockchain challenges and risks.



**The Problem**


The current state of building a blockchain product is still very complex as blockchain itself is a piece of sophisticated technology and the learning curve requires an amount of time to understand its workings.


Existing businesses or new startups or individuals tend to experience a lot of issues when they try to implement blockchain into their product and this basically costs time and money thereby reducing the adoption of blockchain.


When building on the blockchain, you’ll be faced with some issues such as:


1. Cost of building on the blockchain


2. The adequate skill set required to develop


3. Security- ensuring security at every level to keep funds secured


4. Multi Chain and Blockchain interoperability - no uniformed structure and implementation for different blockchains


5. Scalability

 


It can't be ignored that these listed issues are not significant hurdles to blockchain implementation and adoption.



Building on the blockchain can be very expensive, time-consuming, and complex especially if you don't have the right skill set of people to get it done.


**The Solution**

The solution is a blockchain and crypto infrastructure that facilitates easy implementation and adoption of blockchain into new and existing products.



Bitpowr is already doing this by making it extremely easy to implement blockchain, crypto, and digital assets into your product or application.



We have built a blockchain wallet and digital assets infrastructure that lets you easily create and manage blockchain wallets, process crypto transactions, manage digital assets and manage your accounts across crypto and exchanges platforms.



Bitpowr’s wallet infrastructure enables access to the digital economy at large to businesses and individuals. It establishes an absolute balance between security and accessibility —which is enabling customers to move assets seamlessly and reliably, secured by Bitpowr MPC cryptosystems, user and account policies, and an advanced transaction approval process.



To accommodate different kinds of business use cases, Bitpowr provides different types of wallets with layers of platform security and transaction policy features to meet a wide range of business needs.



We currently support a wide range of digital assets and blockchains. We have support for Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Polygon, Tron, Binance Smart Chain and currently implementing Solana, Dogecoin, and Terra. In the pipeline, we are looking to integrate Stellar, Ripple, Fantom, and Arbitrum. This would ensure easy support for different blockchains in your product.




Bitpowr has provided a simple UI for easy management of your accounts and as well as API and SDKs, which can be used to manage your wallets, create transactions, and connect to our blockchains APIs easily.



We started Bitpowr to help businesses and individuals scale their crypto product seamlessly on the blockchain and the past nine months is focused on building the infrastructure to support different blockchain integrations and the wallet infrastructure itself.


**The Future**

![1_qGWes5NHl0ojUdlOFvDw6A.jpeg](https://res.cloudinary.com/dreezy/image/upload/v1649260445/1_qGWes5NHl0ojUdlOFvDw6A_ym0shj.jpg)



Bitpowr is out of early access and now onboarding clients massively to help them scale their product with digital assets easily on the blockchain.



We are building a platform that lets you focus on what's necessary — building your product while we help you handle the crypto and blockchain integrations for your business day to day operations.



Bitpowr aims to make building and scaling your business or product ridiculously easy on the blockchain

Bitpowr : A Wallet and Digital Assets Infrastructure

##### **History of the Blockchain, how it all started, and where it’s headed?**




**The words block and chain were used separately in Satoshi Nakamoto’s original paper but were eventually popularized as a single word, blockchain by 2016.**



This is the first of a series of articles piercing through the walls of Blockchain looking at where it started, later we’ll a deeper dive into “What it is” “Its use cases” and its application in Businesses today.




Many of the technology we use now began as revolutionary disruptions in their own eras. Take, for example, how cell phones evolved into smartphones, which we now practically cannot live without. Consider how much smartphones have altered our way of life and work. Also, look at when the Internet started, many skeptics some prominent people of that time made famous statements about the Internet never becoming something big. Just like experts before them who said computers would never be in every home, yet now they’re in every pocket, and magnitudes more powerful than they were.



We’re now in the midst of another quiet revolution: [blockchain](https://en.wikipedia.org/wiki/Blockchain_(database)), a distributed database that maintains a continuously growing list of ordered records, called “blocks.” Consider what’s happened in just the past 10 years, but let’s start from:


![History_of_block-chain](https://res.cloudinary.com/samvwede/image/upload/v1649710017/1_u0s_VVJ_Rm_Iu38_Wfy_D66_KM_1_Q_4f2504e7c8.jpg)




**The early days**

The very first appearance of the idea of Blockchain was in 1982 when Cryptographer David Chaum presented a dissertation **“Computer Systems Established, Maintained, and Trusted by Mutually Suspicious Groups”**.


Further down the line in **1991** Stuart Haber and W. Scott Stornetta wrote about their work on a cryptographically secured chain of blocks. They wanted to set up a system that prevented tampering with document records. **Haber, Stornetta, and Dave Bayer** improved the design in **1992** by incorporating Merkle trees, which increased efficiency by allowing several document certificates to be collected into a single block. However, this technology was not really used, and the patent expired in 2004, but it represented an important step in the evolution of what would become blockchain technology.



**A Pause.**

While there was a long pause and the Merkle Tree technology went unused and the patent lapsed in **2004**, Hal Finney (Harold Thomas Finney II), a computer scientist and cryptographic campaigner, introduced the RPoW (Reusable Proof Of Work) — developed from the PoW algorithm which was first introduced in 1993, where **Moni Naor and Cynthia Dwork **published an article to deter the DoS ([Denial-of-service](https://en.wikipedia.org/wiki/Denial-of-service_attack)) attacks. The article mainly discusses the potential of the algorithm to prevent fraud and its sustainability in the long term. On the other hand, **The Hal Finney Reusable Proof Of Work** worked by receiving a non-exchangeable or a non-fungible Hashcash based Proof of Work token. In return, created an RSA-signed token(RSA_** -Rivest–Shamir–Adleman**_ is a public-key cryptosystem that is widely used for secure data transmission.) that could then be transferred from person to person.



RPoW solved the problem of double-spending by registering token ownership on a trustworthy server that allows users all over the world to check its correctness and integrity in real-time.



_“ I**n History, proof of work has been at the heart of a spate of cryptocurrencies, enabling for safe, decentralized consensus**.”_



![1_g4mbc2c3h_kE2W2mzRNn4w.jpeg](https://res.cloudinary.com/dreezy/image/upload/v1649260283/1_g4mbc2c3h_kE2W2mzRNn4w_qjodw9.jpg)
 




**Arrival of Bitcoin.**

**In late 2008**, a mysterious figure called Satoshi Nakamoto published a paper on cryptography and finance. The paper described Bitcoin as “a Peer-to-Peer Electronic Cash System,” and it proposed a way to make money transactions between two parties without having to trust each other or go through banks or other third parties.



On the **3rd of January 2009**, Satoshi Nakamoto mined the first bitcoin block, which included a reward of 50 bitcoins. Hal Finney was the first Bitcoin recipient, receiving 10 bitcoins from Satoshi Nakamoto in the world’s first bitcoin transaction on **January 12, 2009**.



Today individual miners use the proof-of-work system to “mine” Bitcoins for a reward, which was subsequently verified by the network’s decentralized nodes. While Bitcoin was not the first online currency to be proposed, the bitcoin proposal solved several problems in the field and has been by far the most successful version.



_“**The engine that runs the bitcoin ledger that Nakamoto designed is called the blockchain; the original and largest blockchain is the one that still orchestrates bitcoin**”._



![1_B3F92CY0eMWbgJZUoqg6SA.jpeg](https://res.cloudinary.com/dreezy/image/upload/v1649260327/1_B3F92CY0eMWbgJZUoqg6SA_uhbzxk.jpg)



**Birth of Blockchain 2.0- Ethereum**

In 2013, Vitalik Buterin, a programmer and a co-founder of Bitcoin Magazine stated that Bitcoin needed a scripting language for building decentralized applications. Failing to gain agreement in the community, Vitalik started the development of a new blockchain-based distributed computing platform, **Ethereum**, that featured a scripting functionality, called **smart contracts**. Smart contracts are programs or scripts that are deployed and executed on the Ethereum blockchain, they can be used for example to make a transaction if certain conditions are met. Smart contracts are written in specific programming languages and compiled into bytecode, which a decentralized Turing-complete virtual machine, called the Ethereum virtual machine (EVM) can then read and execute.



Developers are also able to create and publish applications that run inside Ethereum blockchain. These applications are usually referred to as DApps (decentralized applications) and there are already hundreds of DApps running in the Ethereum blockchain, including social media platforms, gambling applications, and financial exchanges.



The cryptocurrency of Ethereum is called Ether, it can be transferred between accounts and is used to pay the fees for the computational power used when executing smart contracts.



_**In August 2014, the bitcoin blockchain file size, containing records of all transactions that have occurred on the network, reached 20 GB. In January 2015, the size had grown to almost 30 GB, and from January 2016 to January 2017, the bitcoin blockchain grew from 50 GB to 100 GB in size. The ledger size had exceeded 200 GB by early 2020**._



**2015 was the year of Hyperledger.**
Hyperledger is a non-profit organization that promotes the use of blockchain technology to improve the performance and reliability of existing systems that facilitate global commercial transactions.
2015 -The Linux Foundation announced the blockchain open-source Project. They named it Hyperledger, and it has since served as a collaborative development platform for distributed ledgers. Hyperledger aimed at encouraging cross-industry collaboration for the development of blockchain and distributed ledgers under the leadership of **Brian Behlendorf**.




**A New Blockchain -EOS.IO**

In 2017, a white paper explaining a new blockchain system powered by EOS as the native coin was published. Unlike other blockchain protocols, EOS attempts to imitate real-world computer characteristics such as CPU and GPU. EOS basic function is to provide easy-to-use tools for developing dApps and to enable instantaneous transactions and offer scalability to industrial-scale applications. The system was developed by Dan Larrimer and it is very similar to Ethereum. EOS has revolutionized the market due to two major reasons such as:




Features of EOS Blockchain
- **Parallel Processing** — Parallel, faster transaction speeds with a capacity to conduct millions of transactions per second and more scalability while using the platform.

- **Decentralized Operating System** — Developers can build their applications on EOS blockchain by using EOS coins. The coins are not utilized, only the proof of their holding is necessary to be able to use EOS resources. It also helps app developers to communicate with each other.


- **A Constitution** — Every block mined has a set of rules which are to be followed by everyone making the platform completely decentralized.
Self sufficiency and Evolution — The current model provides 5% inflation to develop the network further.


- **Low latency** — Least possible latency with a smooth running of DApps.


![1_Hfwg9444I547w6ecVTAtmQ.jpeg](https://res.cloudinary.com/dreezy/image/upload/v1649260371/1_Hfwg9444I547w6ecVTAtmQ_n6ihse.jpg)




**Blockchain 3.0 -The Future**

Blockchain 3.0 aims to address the scalability, sustainability, pricing, interoperability, and security issues that plagued blockchain 1.0 and 2.0, offering improved solutions through a refined framework.



NEO, the first open-source, decentralized, and blockchain platform developed in China, is one of the latest blockchain 3.0 applications. Despite the fact that the country has prohibited cryptocurrency, it remains active in blockchain technology. NEO positions itself as the Chinese Ethereum, having already secured the endorsement of Alibaba CEO Jack Ma, and aims to have the same impact in the country as Baidu.



Cardano is another Blockchain 3.0 application. Cardano, led by Charles Hoskinson (one of Ethereum’s co-founders), is a cutting-edge blockchain platform that includes smart contracts, transaction systems, and Dapps. It is the result of scientific philosophy and high-level research. Cardano is leading the charge of Blockchain 3.0, pioneering an entirely new approach for digital currencies. Let’s look at how Cardano differs from Ethereum.



- Cardano uses Haskell programming language, whereas Ethereum uses Solidity. Haskell is a universally accepted programming language with non-strict semantics, whereas Solidity is a contact-oriented language explicitly built for writing smart contracts. Haskell enables developers to write codes precisely, enabling them to establish efficient and secure protocols. Solidity, on the other hand, possesses serious security issues.


- Cardano uses a proof of stake consensus mechanism, whereas Ethereum uses proof of work. Instead of miners wasting their resources for computing the math problem, the POS system relies on factors such as the wealth of the creator and complexity levels in the network at that time. POS consensus mechanism not only saves energy resources but also reduces the risks of 51% attack (because an attacker trying to purchase 51% of coins will automatically see the coin’s cost appreciation).



In addition to IOTA and NEO, other second-generation blockchain platforms are also having a ripple effect in the sector. Monero Zcash and Dash blockchains came into being as a way of addressing some of the security and scalability issues associated with the early blockchain applications. Dubbed as privacy Altcoins, the three blockchain platform seek to provide high levels of privacy and security when it comes to transactions.


The blockchain history discussed above involves public blockchain networks, whereby anyone can access the contents of a network. However, with the evolution of technology, a number of companies have started adopting the technology internally as a way of enhancing operational efficiency.


Large enterprises are investing big in hiring professionals as they seek to gain a head start on the use of technology. Companies like Microsoft who appear to have taken the lead when it comes to exploring blockchain technology applications resulting in what has come to be known as private, hybrid, and federated blockchains.


**2022 and Beyond**

The future of Blockchain technology looks bright, because of the way governments and enterprises are investing big as they seek to spur innovations and applications in the sector. It is becoming increasingly clear that one day there will be a public blockchain that anyone can use.


Advocates expect the technology to help in the automation of most tasks handled by professionals in all sectors. The technology is already finding great use in supply management as well as in the cloud computing business even search engines on the internet are also being built.



As the technology evolves, Gartner Trend Insights expects at least one business built on blockchain to come into being valued at more than $10 billion by 2022. Due to the [Blockchain Digital Transformation](https://101blockchains.com/blockchain-digital-transformation/), the research firm expects the business value to grow to over $176 billion by 2025 and exceed $3.1 trillion by 2030.



Today blockchain is already used in a variety of applications, not limited to cryptocurrencies it radically has increased the demand for Blockchain professionals, Blockchain infrastructures and a lot of companies are also implementing Blockchain to their various projects. Bitbowr is one of the many Applications of Blockchain technology beyond bitcoin and even Ethereum currencies. Bitpowr is a Blockchain infrastructure that functions more like AWS for cryptocurrency. It was created in response to the difficulties and high costs of building on the blockchain; which requires highly competent software or blockchain engineers to design and manage the product, as well as resources to build the application and the expense of running and maintaining the nodes. You’ll also need to account for transaction monitoring and security, and you’ll end up spending a lot of money integrating the blockchain rather than building your product.” Well no need to worry anymore, we are here to help, [reach out to us we are happy to help](https://www.bitpowr.com/contact#contact)


Follow up with our next article to have a full grasp of what Blockchain technology is and its endless life applications.

The words block and chain were used separately in Satoshi Nakamoto’s original paper but were eventually popularized as a single word, blockchain by 2016.

History of the Blockchain, how it all started, and where it’s headed?

##### **How to grow your business using Digital Asset.**



Digital Assets, like Blockchain, are buzzwords actively used in this money era and a lot of times used wrongly, as it stands you might have invested or owned some form of digital assets without having a full understanding of what it is. Statistics show that investments in “Digital Assets” have gained so much popularity over the years and have got a lot of people interested in investing because it is believed that it can generate high returns in a short time.



As juicy as this may sound, you need to have a good understanding before dabbling into it. Stick around and you will surely learn what it is all about.




##### **What are Digital Assets?**
Tobegin, let’s look at what digital assets are in the general sense of it — they are electronic files of data that can be owned, stored, and transferred. They include but are not limited to photography, logos, digital documents, audible content, illustrations, audiovisual media, digital paintings, cryptocurrencies.



**Note: It can only be called an asset if it is backed by a right of usage. Without such rights, data cannot be considered an asset.**



In the context of blockchain, digital assets include cryptocurrencies and crypto tokens. **Cryptocurrency** and tokens are unique subclasses of digital assets that utilize cryptography- An advanced encryption technique that assures the authenticity of crypto assets by eradicating the possibility of counterfeiting.



The key differentiation between the two classes of a digital asset is that cryptocurrencies are the native asset of a blockchain — like BTC or ETH — whereas tokens are created as part of a platform that is built on an existing blockchain, like the many ERC-20 tokens like Chainlink (LINK), Tether (USDT), Shiba Inu (SHIB) … which all make up the Ethereum ecosystem.




An increasing number of companies worldwide are using bitcoin and other digital assets for a host of investment, operational, and transactional purposes.



The use of crypto for conducting business presents a host of opportunities and also challenges. One of the major challenges includes the complexity surrounding the technical components, the cost of operation, and security.
That’s where companies like [bitpowr](http://bitpowr.com/) come in, to make it easy.



##### **Types of Crypto Digital Asset?**

![1_EGIenV7ikKnuDZhxjy9vRQ.png](https://res.cloudinary.com/dreezy/image/upload/v1649260444/1_EGIenV7ikKnuDZhxjy9vRQ_csu4oz.png)



There are numerous ways the digital asset blockchain can help to revolutionize the global economy, increasing efficiency and clearing the door for previously unimaginable opportunities. Below are a few types of digital assets that exist.



**1. Cryptocurrencies**

![1_fBPG0PPuXK9m4Cn3QfXlxg.jpeg](https://res.cloudinary.com/dreezy/image/upload/v1649260445/1_fBPG0PPuXK9m4Cn3QfXlxg_vjjc4q.jpg)


Are digital currencies that use cryptographic foundation i.e approaches and techniques to store value, facilitate exchange, and operate as a unit of account. In addition to Bitcoin, there are currently several other cryptocurrencies like **Ethereum, and Litecoin** available for purchase and investment.



**2. Crypto commodity**

![1_w7Omje0bm1O02vjJgPEGbQ.jpeg](https://res.cloudinary.com/dreezy/image/upload/v1649260445/1_w7Omje0bm1O02vjJgPEGbQ_jvnmxx.jpg)


Crypto commodity is a general term used to describe a tradable or fungible asset that may represent a _**commodity**_, utility, or contract in the real or virtual world through exclusive tokens on a blockchain network. It works like this — let’s say gold is the commodity (crypto commodities), which can be used to create gold necklaces, bracelets, and rings. All of the gold products now have new values because Gold has given them such value, in the same way, that crypto commodities like Ethereum can create new digital assets with new values, such as Shiba.



**3. Utility tokens**


![1_X15e-CIcbOwd12mCY66keA.jpeg](https://res.cloudinary.com/dreezy/image/upload/v1649260445/1_X15e-CIcbOwd12mCY66keA_pe2ay6.jpg)


These do not hold the conventional values of security tokens. However, hybrid tokens can be valued for both investment purposes and practical uses on a platform. They are beneficial for two different types of token holders: investors who hold for speculative value, and participants who want to gain the right to a specific product or service.


**What can crypto Digital Assets do for your Business?**

![1_f3Cu6-iPtsoZ7Sfr2FP0NA.jpeg](https://res.cloudinary.com/dreezy/image/upload/v1649260445/1_f3Cu6-iPtsoZ7Sfr2FP0NA_xinhrz.jpg)





Utility tokens are like digital coupons. A utility token can serve just about any purpose a developer wants it to. In general, utility tokens provide access to a specific service or product with a blockchain ecosystem. Non-fungible tokens (NFTs) serve as a type of unique utility token, too. An NFT token is a one-of-a-kind digital piece of art, although NFTs can also be applied to things like music. Examples of utility tokens are Binance Coin (BNB), Chainlink (LINK)



**4. Security tokens**

![1_RFr8H_h-rKOLUdu7eCUS_w.jpeg](https://res.cloudinary.com/dreezy/image/upload/v1649260444/1_RFr8H_h-rKOLUdu7eCUS_w_mdqmqg.jpg)


Security tokens get their value from tradable assets and other external sources that already have value, like a car, house, stocks, painting, or company shares. Because of their nature, security tokens are covered by federal securities regulations. A company wishing to distribute shares to investors can use a security token that offers the same benefits one would expect from traditional securities


**5. Hybrid tokens**

![1_SHMzwYBvmlrRUzcNn208kA.png](https://res.cloudinary.com/dreezy/image/upload/v1649260444/1_SHMzwYBvmlrRUzcNn208kA_ucud1r.png)


Your Business may be able to reach new customers if it uses digital assets like cryptocurrencies. Transparency is important to many crypto users; therefore, they’ll be more likely to buy from you if you use crypto. A recent poll suggests that up to 40% of crypto clients are new, and their purchasing power is twice that of credit card users, so with [Bitpowr](https://www.bitpowr.com/) your business will be well-positioned to receive and disburse crypto assets smoothly using its wallet infrastructure.



Introducing digital assets like crypto today could help your company become more aware of this emerging technology and get a good position for a future where central bank digital currencies are a reality. This placement may potentially benefit the company’s position in this emerging market. Crypto could enable access to new capital and liquidity pools through traditional investments that have been tokenized, as well as to new asset classes.



Digital assets furnish certain options that are simply not available with fiat currency. For example, programmable money can enable real-time and accurate revenue-sharing while enhancing transparency to facilitate back-office reconciliation.



Crypto Assets may serve as an effective alternative or balancing asset to cash, which may depreciate over time due to inflation. Crypto is an investable asset, and some, such as bitcoin, have performed exceedingly well over the past five years. There are, of course, clear volatility risks that need to be thoughtfully considered, and bitpowr provides a multi-asset wallet solution that enables proper management of most of this investable asset which opens up a world of possibilities.




**Conclusion**



Ifyou are building on the Blockchain and need to manage your company’s crypto assets, you can use [Bitpowr](https://www.bitpowr.com/) to maintain custody of your crypto assets on a blockchain and provide wallet management services that facilitate the tracking and valuation of the crypto assets.

Digital Assets, like Blockchain, are buzzwords actively used in this money era and a lot of times used wrongly

How to grow your business using Digital Asset.

**1. Know your computer science fundamentals.**

If you are a complete newbie understanding the basics will save you a lot of headaches. To be fair, blockchain development is a daunting task. Before digging deeper into nodes and blocks, first, be sure to learn the fundamentals of computer science. You can start here with The famous CS50 free course issued by Harvard — [Fundamentals for Computer Science](https://learning.edx.org/course/course-v1:HarvardX+CS50+X/home)



**2. Have a Foundation in Web Development**

You also need to have a background in web development, it’s not advisable to jump straight into blockchain and web3.0 development without a strong foundation of the main principle of standard web development. DApps have a standard vanilla JavaScript or JavaScript Framework Front-end though its backends differ from “standard” applications backends, the majority of the technical principles remain the same. that’s why before delving into developing your first DApp, it’s key to learn the basics of Front-end and backend development, If you need help you can start by learning [fullstack](https://www.edx.org/learn/full-stack-development) development.



**3. Learn The Fundamentals of Blockchain**

Go ahead Learn The Fundamentals Of Blockchain, you need to understand **that the Blockchain** is no longer just about crypto; it has evolved into a fully distributed cloud computing system capable of running entire backends to power cutting-edge Decentralized Applications (DApps). You can learn on [Coursera for Free with Blockchain 101.](https://www.udemy.com/course/blockchain-theory-101/?LSNPUBID=JVFxdTr9V80&ranEAID=JVFxdTr9V80&ranMID=39197&ranSiteID=JVFxdTr9V80-5jnCta624e46I9A5_CU6Uw&utm_medium=udemyads&utm_source=aff-campaign)



**4. Understand how Ethereum Works.**

As a web3.0 developer you also need to understand how Ethereum works. Ethereum is software that runs on a network of computers and guarantees the replication and processing of tiny programs known as Smart Contracts.The majority of Decentralized applications, now run on top of the Ethereum Blockchain, Smart Contracts had also been implemented by the Ethereum Consortium, then “copied” by other Blockchains.It is critical for a web3.0 and Solidity developer to become an Ethereum specialist by 2022.you can check its [Documentation](https://ethereum.org/en/developers/docs/) for better understanding.


_Ethereum and Smart Contracts are like Bread and butter_, _you need to understand both_ so learn what Smart Contracts are too. A Smart Contract is software stored on a blockchain-based platform, that automatically executes an agreement. It is written in Solidity, Rust, or Vyper and it’s the key component of any Decentralized Application, powering its business logic and allowing you to store information on the blockchain, just like you would do in a standard Database. Here is a [free Course](https://www.coursera.org/learn/smarter-contracts) by the University of Virginia.


**5. Learn How To Interface With The Blockchain**

Decentralized apps consist of two components: Your frontend and smart contracts executed on the blockchain. For your front-end to talk to the blockchain, you’ll need to interface with it. This is where libraries come in and there are two popular choices to interface with blockchains that implement the Ethereum API: Ethers.js and Web3.js


**Web3.js**- It is a **collection of libraries** that allow you to connect with a local or remote Ethereum node using **HTTP**, **Websockets**, and other communication protocols directly from your JavaScript Based front-end. [Here’s the full web3.js crash course by DApp University.](https://www.youtube.com/watch?v=t3wM5903ty0)


**Ethers.js**- is a lightweight **JavaScript library** used as an alternative to Web3.js to connect JavaScript front-end with Smart Contacts. [Learn Front-end DApp development with Ethers.js by Nader Dabit.](https://youtu.be/a0osIaAOFSE)


Pick one, and learn it well. You will definitely need it. It’s one of your most important tools from now on.



**6. Learn How to Build Smart Contracts**

There are many blockchains out there, and nearly every one of them has its own unique way of building smart contracts.


Solidity, on the other hand, is the language of the Ethereum VM, which is integrated into many other blockchains. It isn’t just useful on Ethereum. It will also assist you in developing smart contracts for other chains.


Solidity developers have by far the most job opportunities. Many companies are building or planning to develop on Ethereum. It may be a long time before any blockchain achieves the same degree of adoption as Ethereum. What you especially need to understand is how gas works and how each line of code you write in Solidity affects the price of execution of your smart contract. There is no way around it. Unfortunately, some companies optimize aggressively for gas consumption.



If you want to work in this field, you’ll need to learn to optimize your code. It will be part of your job and a huge part of some interviews because thorough optimization can save millions of dollars each year for a heavily used app or contract.



Check this freecodecamp course on [Solidity](https://youtu.be/M576WGiDBdQ). You can also learn by basically playing games like [Crypto Zombies](https://cryptozombies.io/)



**7. Learn How to Test your Smart Contracts**

Before implementing your smart contracts, you should learn how to test them carefully.


What makes the Blockchain so unique is the non-reversibility: once a Smart Contract is added, it can’t be edited or recalled, and its deployment also costs real money (GAS fees). You can test your Smart Contracts using these types of testing:


- **Node Testing.**

- **Functional Testing.**

- **Performance Testing.**

- **API Testing.**



[Learn More about testing your Decentralized Applications and Smart Contracts, in this 1hr free introduction to Blockchain Tests.](https://www.youtube.com/watch?time_continue=2129&v=1WZdH3kD1d8&feature=emb_title)


**8. Build and Build and keep Building.**

If you want to work in this field like in any Tech field then never stop building. Learning by practicing and solving problems is key, it’s literally the best way your brain has to retain information.


Start building your first DApps to reinforce your understanding of blockchain development. [Develop 5 DApps in this free course by freecodecamp.](https://www.notion.so/How-can-you-become-a-Web3-Developer-Here-is-a-roadmap-for-you-e0bfb33981dd41d792415296784c813f)


Make sure the Projects you build has ;


- A frontend

- A smart contract

- Some (Solidity) code optimizations with comments explaining why

- Unit tests for everything

- A local test network setup

- E2E tests that thoroughly test the contract

- Continuous Integration

- Continuous Staging Deployment

- A Deployment to the official testnet.




**If you learn better in a class setting and can dedicate some time then look at applying for web3 booth camps with [Web3bridge](https://www.web3bridge.com/)**



**9. Start Applying**

With all that new knowledge and a portfolio, you can begin your job search. Don’t be demotivated when it takes some time, especially if you don’t have too much industry experience yet. It might well be that some companies try to get talent with more experience.

Being a Web3 developer no doubt pays a whole lot imagine earning thousands if not millions of dollars and being sort after like a god

Latest News and Updates

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Understanding Crypto Wallets

Web3 — Decentralized Internet of the future and its Benefits.

Why Use Crypto Wallets?

Bitpowr : A Wallet and Digital Assets Infrastructure

History of the Blockchain, how it all started, and where it’s headed?

How to grow your business using Digital Asset.

How you can become a Web3 Developer.

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