sdfnawjfgwdfva

## **How to Send Fee-less Tron Transactions.**

Tron is a popular blockchain-based operating system on which a user can create decentralized applications, and distribute media content. The TRX token on its own is used to gain access to certain features of the operating software that are available on the Tron Protocol. Therefore, the main purpose of the token is for use on the Tron network. However, it is still a store of value and it can be exchanged and traded on exchanges, so it can also be described as a virtual currency.


#### **Advantages of Tron (TRX)?**

When talking about buying or trading Tron, Here are some benefits of Tron that you should know:

**1.** **Low transaction fees:** The transaction fees of Tron are negligible as you would only have to pay $0.000005 whenever you make a transaction.

**2. Greater volume of transactions:** One of the most important qualities of Tron is its ability to carry out bulk transactions on its network which is another great advantage.

**3. An excellent engineering team:** Perhaps one of the biggest advantages of Tron is that it has a great team of developers and contributors maintaining the network.

**4. Fast transactions:** Because its network can carry out up to 2000 transactions per second, Tron transactions are very fast and near-instant.

#### **How Does Tron (TRX) Work?**

While Tron is now regarded as a separate coin, it was once an Ethereum-based ERC-20 token.

The Tron network operates on a few principles, with one being decentralization. All the data on the blockchain is completely free and not controlled by any central authority. Content creators on the network can earn TRX tokens as a reward for sharing their content.

Developers can also create their own tokens for use on the Tron Blockchain. These tokens can then be used in network-based decentralized applications created by users. These newly created tokens are then stored alongside the main TRX token.

Tron works on a delegated proof-of-stake consensus system. In this system, transactions on the network are validated by 27 super representatives that are entrusted with managing and holding the transaction history. Super representatives are selected every six hours and earn TRX coins generated by the mechanism as a reward for their services.

The Tron blockchain gets a new block added to it every 3 seconds and those that added the block get 32 TRX tokens.

#### **What Makes Tron Unique?**

Tron is a very special cryptocurrency for several reasons. For one, there are almost zero transaction fees for TRX, which is quite impressive. On top of that, the network can carry out 2000 transactions every second.

Further, holding (and staking) TRX tokens gives users the opportunity to participate in the super representatives’ selection process on the Tron network. On top of that, the platform’s ability to reward content creators for their work, while keeping full ownership of their projects, is an excellent value-add.

### **Zero Transfer**

The TRON blockchain comes with two types of network resources involved when transferring digital assets: Bandwidth and Energy.

 ****- Bandwidth****
 
 Using Bandwidth each user is entitled to approximately 15 free transfers. In subsequent transfers, the transaction fee is calculated based on the amount of bandwidth used on each transaction.


****- Energy****

For each transfer on the TRON network, a certain amount of energy and processing power is also required. While processing transfers independent of smart contracts and calculating energy as zero, energy is not squandered. Transactions involving smart contracts and decentralized applications must pay an energy fee, the amount of which varies depending on the size of the transaction, as energy is needed for those activities.

The value of the energy computation is 0 when transferring non-smart contract assets (like TRX).  Although the energy value is more than zero when the transfer is a smart contract asset such as TRC20 tokens.

With Bitpowr, you can freeze and stake TRX directly from your vault wallet to earn the bandwidth and energy required to transfer any TRON-based digital assets for free.

This opens up a new line of opportunity for your digital asset business to significantly boost revenue by massively saving on mining fees. [Contact us](https://www.bitpowr.com/contact#contact) to find out more.

##

The transaction fees of Tron are negligible as you would only have to pay $0.000005 whenever you make a transaction. (read more)

How to Send Fee-less Tron Transactions.

#### **What is Multiparty Computation (MPC)**

Wallets are to digital assets what air is to life; the former supports the latter. A digital asset lives in a wallet so to speak, they help to store and manage our cryptocurrencies securely. 

*One of the most secure wallets currently available is the Multiparty Computation Wallet.*

 

### **What exactly is Multiparty Computation?**

Multiparty Computation (MPC) is a cryptography technology that enables a group of different data owners to jointly compute a function of their private inputs, without requiring them to share their private data with one another or any other party. For a digital asset custody wallet like [bitpowr](https://www.bitpowr.com/solution/wallet), the “different data owners' ' are the multiple parties that hold a share of a private key and use those key shares to provide their part of a multiparty approval of a transaction. Their “joint computation” generates a single digital signature to release digital assets for transfer to a third party.

 

#### **A brief history of Multiparty Computation**

The concept of multiparty computing emerged in 1970. Historically it has mostly been used to hide information. Modern cryptography uses math and computation to encrypt and decrypt messages or to guarantee the authenticity of the information. Today, this technology is currently found in a variety of smartphones and computer chips.

The idea to create multiparty comes from the need for a technology in which security models could be enabled where a variety of parts are required to access the system. Each of the parts allows the system to be unlocked, depending on the level of access. It was not until 1990 that this concept came to life thanks to [David Chaum](https://blog.bitnovo.com/en/who-is-david-chaum/), a pioneer in the cryptographic world who presented an elaborate paper on this protocol. The paper was called “**Unconditionally Secure Multiparty Protocols''**.

 

#### **How does the Multiparty Computation technology work?**

 

The operation of an MPC Wallet is divided into three essential parts: **key generation, address generation, and access to funds**. In the following paragraphs, we will see what each one consists of in detail.

 

#### **1. Generate Key**

This is the mechanism with which the wallet generates private and public keys and it also creates the registration of the private and public keys for the wallet's locking mechanisms.

This is how the unlocking devices generate a pair of public and private keys. They are then combined with those of the other devices to generate the MPC wallet's private and public keys. This scheme attempts to distribute wallet control in a simple and similar manner to prevent a hacker from taking control of the wallet.

It should be noted that these keys are generated by a **protocol** defined by a very simple mathematical formula: **nF(d1, d2, d3) = max(d1, d2, d3).**

You may be thinking that this formula is too **complicated** and difficult to understand, however, it simply means that each participant has in its possession private data that would be from **d1, d2…dN**. Thanks to this private data, by using a public function called F we can calculate how much the private data is worth as well as enable the use of the wallet. For this, we use the cryptographic signature algorithm which can be either **ECDSA, EdDSA, Schnorr**, or any other compatible one. If we add all these private data we obtain as a result a cryptographic reason that provides access to the wallet.

#### **2. Generate Address**

In this case, MPC wallets are very similar to the ones we already know, like Multisig wallets. Either party can request to generate a public key. The generated address can then be used to receive funds.

This is possible thanks to asymmetric cryptography. The security of sharing the public key is due to the complexity of performing the process opposite to the generation of the public key. It is, therefore, safe to generate public keys for each member.

As for the private key, the goal of the MPC wallet is to keep the private key divided among several devices to avoid easy balance control.

#### **3. Access to funds**

In order to access the funds, **the conditions determined** during the creation of the MPC wallet must be fulfilled. If four devices with private data were entered during generation, these four devices must be present to **access** the wallet.

To protect these devices, cryptographic systems, security modules such as **HSM** or other **security** features are often used. In fact, only originally paired devices will be able to access the **MPC wallet** and the **funds**.

 

#### Use cases MPC, including genetic testing and auctions.

As the necessity for information security increases along with digitalization, MPC is increasingly used to protect sensitive data by acting as a digital non-disclosure agreement restricting who can access what data. These are a few examples of its use case.

- MPC can be used in genetic testing to allow individuals to evaluate their own genetic profile without unintentionally disclosing to authorities or insurers how quickly they metabolize caffeine or how likely it is that they will develop diabetes.
- MPC can be used in sensitive research to safely gather and analyze data such as financial and medical information—without requiring people to divulge private information to a third party.
- MPC can be used in sealed-bid auctions to guarantee that each bid entered concurrently remains totally secret.

 

### Future Expectations for secure MPC.

MPC has rapidly established itself as the industry norm for protecting digital assets. Major financial organizations like Revolut, the biggest neobank in Europe, are switching to MPC. Other applications of MPC  include off-exchange matching, privacy-preserving statistics, and cloud private key management.

In the near future, multi-party computation will also have a big impact on things like Data-as-a-Service solutions, databases, cryptographic data security, etc.

The [Bitpowr MPC-based wallet](https://www.bitpowr.com/solution/wallet) helps your business scale much more rapidly and easily due to its blockchain agnostic nature and adaptability to unforeseen developments like blockchain forks, larger client bases, and technological advancements.

Do you have any questions or inquiries on how to get MPC wallets for your business?  [Talk to us](https://www.bitpowr.com/contact#contact)

The concept of multiparty computing emerged in 1970. Historically it has mostly been used to hide information. 

 What is Multiparty Computation (MPC)

## **What You Need To Know About Zero Block Confirmation**

While Bitcoin and its technology are game-changing, its blockchain is not designed to carry fast, instant transaction settlement for users. For a transaction to be validated fully, it takes around 3-6 confirmations which can sometimes take up to an hour or more. Waiting that long is very demanding for businesses that collect Bitcoin payments and crypto exchanges that process deposits in bulk.

This article talks about Bitcoin transactions, with a major focus on Zero Block confirmation, which is a feature that allows for the near-instant settlement of bitcoin deposits/payments while waiting for the transaction to be confirmed on the blockchain.

## **What is Zero-Block confirmation?**

A zero-confirmation transaction simply refers to a transaction on the blockchain that is yet to be recorded on the blockchain network. Zero-confirmation transactions live in the memory pool (mempool) of the miners.

The transaction has already been initiated but has not been confirmed by the miners on the blockchain. Only the user that initiated the transaction would be aware of it, and the transaction is considered to have zero confirmation until a block is mined that includes that transaction in it. Transactions are stored on the blockchain every 10 minutes; once written on the blockchain; they will have one confirmation.

Transactions with very low miner fees are one of the most common reasons for Zero-confirmation transactions as miners usually avoid processing transactions with low fees. Previously unconfirmed transactions are another common reason. For context, transactions on the Blockchain must be confirmed in the order of miner fees and the transaction time.

## **How does Zero Block Confirmation Work?**

Double-spend transactions, which are basically fraudulent activities, are well-known in the bitcoin space. Double spending is the risk that a particular user can spend the bitcoin(s) used in a transaction more than once. For example, it is possible for an attacker to double-spend a bitcoin by broadcasting two zero-confirmation transactions at the same time. If this happens, the network would accept the bogus transactions without spending any bitcoin.


The general opinion within the Bitcoin community is that at least one confirmation is required to prevent double-spending. After being broadcast to the blockchain, zero-confirmation transactions can wait a few seconds to hours or days to be confirmed. The wait and the possibility of a double-spend have caused a general bias toward accepting zero-confirmation transactions on the network.

Accepting a zero-confirmation transaction means that crypto exchanges and businesses are willing to accept the Proof-of-Transaction as it is sufficient enough to settle a deposit while it is awaiting block confirmation.

You can think of a zero-block confirmed transaction as a traditional cheque. The user signs the cheque (transaction) and gives it to the miners on the network. Network nodes would then store the pending transaction locally in the memory pool while the transaction is waiting to be confirmed (or the cheque is waiting to be cleared). But the cheque could also bounce which in this context refers to the transaction not being confirmed if something goes wrong.

## **What are the benefits of Zero Block Confirmation?**

The biggest challenge that merchants face in accepting Bitcoin transactions is that block inclusion might take anywhere from 10 minutes to several hours, while customers might want to get what they are paying for immediately. To eliminate this challenge, zero confirmation acceptance is gradually becoming a standard.

Zero Block Confirmation enables Bitcoin service providers, payment processors, and exchanges to instantly settle users' inbound transactions while awaiting block confirmation.

Bitpowr has also reduced the cost and complexity of processing Bitcoin transactions by combining [Bitcoin SegWit addresses](https://www.bitpowr.com/blog/bitpowr-wallet-now-supports-bitcoin-seg-wit-addresses?slug=bitpowr-wallet-now-supports-bitcoin-seg-wit-addresses) with layer2.

To find out how this can benefit your company, [click here](https://www.bitpowr.com/contact#contact) or send an email to sales@bitpowr.com.

A zero-confirmation transaction simply refers to a transaction on the blockchain 

What You Need To Know About Zero Block Confirmation

#### **MPC vs Multi-sig Wallets: Which is best for your Business**


With fiat currency and paper notes, you can keep all of your money in a single wallet, even if you have 10 different currencies. On the flip side imagine getting separate wallets for Dollars, one for Naira, and another for Euros, that would be weird.

The same analogy goes for cryptocurrency, the burden of remembering different [seed phrases](https://academy.binance.com/en/glossary/seed-phrase) for multiple wallets, managing multiple accounts, and all the security considerations required. it would be a difficult experience juggling these many wallets and digital assets. With Bitpowr’s Multi-Party Computation (MPC) based wallet it becomes a walk in the park. Some will argue that Mutisig wallets are better, in this post, we will cover the advantages MPC wallets have over on-chain multisig for organizations managing digital assets.

Build your blockchain business for scale, Secure your assets in a tested and trusted Wallet architecture. Button: Start Now

 

#### **What is a Multisig Wallet?**

Multisig stands for "Multi-signature," a particular kind of digital signature that enables two or more people to sign a document as a group. This adds an additional layer of security to your wallet compared to a single signature wallet which can easily be hacked.

 

#### **What is a Multiparty computation(MPC) wallet?**

MPC wallets, or multiparty computation wallets, are similar to Multisig Wallets but designed to provide the highest level of security to companies, banks, and governments looking to Manage their digital assets.

To better understand it, consider an MPC wallet to be a common wallet, with the exception that the passwords and control of these devices are stored on different devices. Each of the devices that store the keys has a key that, when combined with the others, allows the funds to be used.

 

#### **The Challenge with Multi-sig Wallets**

Prior to Multisig wallets, cryptocurrencies were typically held using just one private key. The funds linked to a private key could be accessed by anyone with access to the private key itself. With multi-sig came an additional layer of security to the system. While Multisig wallets solved problems of single-signature wallets,  they also introduced new issues; The main one being that Multi-signature wallets are not compatible with all crypto protocols. So, multi-signature wallet providers experience many issues in supporting new chains securely.

On the other hand, it is very slow as Wallet providers must implement different codes for each on-chain multi-signature solution.

In a nutshell, Multi-signature-based solutions are no longer able to meet the demands of a digital asset business in today's rapidly evolving environment, with hundreds of cryptocurrencies and Blockchains.

 

#### **Benefits of Using MPC over Multisig**

**1. MPC supports multichain**

**The Multisig challenge:** More digital assets than ever are distributed across an increasing number of blockchain networks. Only a selected minority of these networks, like Bitcoin and Ethereum, have the technical ability to enable complex multi-signature schemes. They only support assets linked to that particular chain because the signature takes place on-chain.

For instance, Bitcoin Multisig only accepts BTC, whereas Ethereum Multisig only supports  Ethereum-based currencies. This implies that you will require several signature solutions if your business deals with a large variety of digital assets.

**The MPC Advantage:** In comparison to Multisig, [Bitpowr MPC wallet](https://www.bitpowr.com/) manages many assets for you on a single platform as opposed to juggling multiple signature systems. Presently the Bitpowr MPC wallet is compatible with Bitcoin, Ethereum-based assets, and will eventually support more digital assets across all blockchains.

**2. Flexibility**

**The Multisig challenge**: Onchain multisig is rigid, which makes it challenging for big digital asset businesses to scale. Fixed approval quorums are one of the main issues. To keep assets secure, signing methods must be continuously modified when new employees are employed and old ones are let go. However, as soon as an onchain multi-sig wallet is made, the approval quorum cannot be changed.

Therefore, in order to change the signature scheme and add or remove a cosigner, you must first create a new wallet, then pay network fees to transfer the funds, and finally inform all of your trading counterparties of the new address. Otherwise, you run the risk of them sending money to the wrong location!

**The MPC Advantage:** With Bitpowr MPC wallets, approval quorums are quickly adjusted to meet changing organizational requirements. Therefore, you can keep the same address rather than having to shift the full amount each time a cosigner is added or withdrawn, which would lessen the operational load and decrease the possibility of catastrophic errors like; large-scale data leakage,

**3. Ease of Administration**

**The Multisig challenge**: MPC gives you more control over governance than simply deciding how many employees must sign a transaction.

**The MPC Advantage:** You can assign an unlimited number of transaction approvers to a policy, and also delegate a variety of permissions that correspond to real-world organizational roles, such as administrators who can edit approval schemes and traders.

**4. Low Gas fees**

**The Multisig challenge**: The majority of blockchains charge network fees based on the number of onchain operations required to complete a transaction. As a result, the more people involved, the more expensive it is to carry out.

Bitcoin and Ethereum, for example, support simple multi-signature transactions. However, the added complexity of having multiple participants makes them much more computationally intensive, doubling or tripling the transaction cost.

**The MPC Advantage:** MPC-based wallets will never have fees that are higher than an ordinary transaction on the underlying chain, regardless of the number of signers involved.

**5. Faster transactions**

**The Multisig challenge**: Blockchains encounter a lot of network congestion, which pushes up transaction fees and poor processing rates. Additionally, as miners attempt to fit as many transactions as possible into each block, Multi-sig transactions are more likely to be put last because they take up more space and are larger due to the additional metadata they contain. Delays therefore cannot be avoided unless you are willing to pay more for expedited processing.

**The MPC Advantage:** In contrast, decentralized MPC does not rely on additional calculations made on the underlying chain. Instead, the signature calculation is done on the  Network, and then just one small transaction is sent to the blockchain, avoiding long wait times and exorbitant transaction costs.

 

#### **Conclusion**

Are you ready to reap the benefits of Bitpowr MPC Wallets? We are delighted to[ hear from you](sales@bitpowr.com) and discuss how Bitpowr can help you manage your crypto assets safely. 

Check out [our documentation](https://docs.bitpowr.com/docs) to learn more about our wallet services and other related products.
[Contact sales](https://www.bitpowr.com/contact#contact) or send an email to sales@bitpowr.com to get started!

Bitpowr MPC wallet manages many assets for you on a single platform 

MPC vs Multi-sig Wallets: Which is best for your Business

#### **Bitpowr Wallet now Supports Bitcoin SegWit Addresses**

Before now, Legacy addresses were the original BTC addresses, now SegWit addresses are the newer address format with lower fees.

SegWit stands for Segregated Witness, where Segregated means to separate and Witness refers to the transaction signatures involved with a specific transaction. In a nutshell, it is an improvement over the current bitcoin blockchain in that it reduces the size required to store transactions in a block.

*Not all wallets support SegWit; if you use one that doesn't, you won't be able to send Bitcoin to a native SegWit address (starting with "bc1"). Moreover, compared to someone who utilizes a SegWit Bitcoin wallet, you will always pay more in fees. However, you can always use our Wrapped SegWit Address which solves the compatibility issues.*

 

#### **Why use SegWit addresses**



**1. Reduced transaction speed**

SegWit has the potential to increase transaction speed, which helps to reduce transaction costs in the Bitcoin network because more transactions can be recorded in a single block. Prior to SegWit, transaction fees could amount to more than $30. However, SegWit has significantly reduced that cost to less than $1 per transaction.

**2. Fixing transaction errors is simple.**

A significant problem with Bitcoin was the possibility of tampering with transaction signatures. A transaction between two parties may become tainted and be recorded on the blockchain forever if a signature is compromised.

Segwit eliminates the signatures from the transaction data, making it impossible to change this data. Additional blockchain community innovation, such as second-layer protocols, and smart contracts has been made possible by this update.

**3. Backward Compatibility**

Another advantage of SegWit is that it is backward compatible, which means you can send money from a SegWit address to a Legacy address or Wrapped Segwit address.

 

#### **How you can use SegWit addresses on Bitpowr**

It is now possible to generate Native SegWit addresses on Bitpowr in order to send and receive money over the Bitcoin network through our Dashboard and API .

 

**Bitpowr Dashboard**

It is very simple to get started on the Bitpowr Dashboard, First thing is to set up an account.

<img src="https://res.cloudinary.com/samvwede/image/upload/v1656418600/New_Account_8b2dd53f05.png" style="max-width:90%;"/>


After which you Select the type of wallet you want to use either Self custody or a custody wallet.


<img src="https://res.cloudinary.com/samvwede/image/upload/v1656418600/choose_wallet_a587154ef2.png" style="max-width:90%;"/>


Then you can select New asset, only Bitcoin and Litcoin have SegWit support on Bitpowr for now

<img src="https://res.cloudinary.com/samvwede/image/upload/v1656418600/New_Asset_e26bd9aa56.png" style="max-width:90%;" />


Click on view more to navigate into the Bitcoin assets

<img src="https://res.cloudinary.com/samvwede/image/upload/v1656418600/Bitcoin_Asset_a318501807.png" style="max-width:90%;"/>


Click on the Addresses tab, then click on the New address button. As you are creating the address, confirm the address you want to use is SegWit.

<img src="https://res.cloudinary.com/samvwede/image/upload/v1656418600/Create_Seg_Wit_account_5bd33b70b1.png" style="max-width:90%;"/>


SegWit address is automatically created and you can send and receive funds instantly.

 

**Bitpowr API**


To use the SegWit address through the Bitpowr API, you will need to have access to your API Keys. You can always get the API Key from the dashboard.

There are two ways to use SegWit addresses via API:

**1. Generating Address**: You can easily do that from the generate new address endpoint by passing `addressType` as `segwit` or `wrappedsegwit` to either generate a native SegWit address or wrapped SegWit addresses. This is default to `legacy` and for compatibility use the `wrappedsegwit` . You can look at the docs [here](https://docs.bitpowr.com/docs/address).

**2. Transaction Change Address**: When creating transactions for **Bitcoin** and **Litecoin**, you can pass in `changeAddressType` as `segwit` or `wrappedsegwit` to be able to use SegWit addresses as a change address. See [here](https://docs.bitpowr.com/docs/transactions).


#### **Closing**

In relation to scale, the introduction of SegWit was a significant step toward resolving many issues with Bitcoin and other blockchain networks. Blockchain networks are able to process more transactions more quickly and cheaply by combining SegWit with the second-layer protocols.

This also serves as a commitment to provide better solutions and features to help reduce transaction fees.

Check out [our documentation](https://docs.bitpowr.com/docs) to learn more about our wallet services and other related products. 
[Contact sales](https://www.bitpowr.com/contact#contact) or send an email to sales@bitpowr.com to get started!

On Bitpowr, it is now possible to create Native SegWit addresses to send and receive money (read more)

Bitpowr Wallet now Supports Bitcoin SegWit Addresses

## **What is Interoperability**

The word is almost like a tongue twister, you hear it in almost all the four walls of the crypto space, well, fortunately, it is first an English word before being a Blockchain Jargon. These are two major oxford dictionary definitions:

1. The ability of computer systems or software to exchange and make use of information eg. interoperability between devices made by different manufacturers”
2. The ability of military equipment or groups to operate in conjunction with each other E.g staff believe interoperability between forces is crucial to effectiveness”




#### **But what does it mean for the Blockchain?**

Imagine a world where you can seamlessly move funds between any blockchains in real time regardless of what blockchain a digital asset was launched on. Imagine if you could use your Bitcoin (BT) holdings from your Bitcoin wallet to execute a smart contract on Ethereum without needing to convert them into Ether (ETH).

The simplest example of blockchain interoperability would be allowing a person who has funds on the Ethereum blockchain to transfer his funds to the Stellar blockchain.

As a whole it is the ability for different blockchains to connect and share information or value with each other in a seamless way using decentralized applications or “DApps” as they are commonly referred to in cryptocurrency circles Interoperability has led to the creation of more complex products and services.

A block contains all of the data that has happened on the network since the last block was created. For example, a transaction is an event. When I transfer my bitcoin from one address to another, this transaction will be added to all of the other transactions that have happened since the previous block was created. Every 10 minutes, these events are compiled into a single unit called a block and added to a chain of blocks containing every event that has ever occurred on that specific network. The most important part about this process is that each new block contains within it all of the information from its predecessor — hence why we call it a chain!



#### **Some Benefits**

Blockchain interoperability will be important to the cryptocurrency ecosystem because it will help solve many of its challenges, including scalability, privacy, and lack of trust among users.

It is important because it reduces the cost of development by allowing developers to build on top of existing blockchains.

It also allows users to easily switch between chains, makes use of existing assets on different chains, and enables the exchange of data and information across two different blockchains.


#### **The importance of cross-chain communication**

Blockchain interoperability is critical to the success of blockchain technology. Blockchains that are not able to communicate with each other will be unable to harness the full potential of their decentralized networks. Interoperability can be achieved through different solutions that enable exchanges between different blockchain networks, such as atomic swaps and side chains. While atomic swaps generally allow cross-chain communication within a single ecosystem, side chains may facilitate interoperability across different ecosystems by allowing users from one blockchain network to exchange tokens with users on another network.

Atomic swaps (also called atomic cross-chain trading) are a direct peer-to-peer exchange of cryptocurrencies between two parties without using an intermediary like an exchange. In this setup, the two parties involved in the trade execute smart contracts on their respective blockchains that allow them to swap coins or tokens directly without going through a third party.

Sidechains facilitate interoperability across different blockchain ecosystems by allowing users from one network to transfer funds or assets to another network while maintaining all the benefits associated with being on a particular chain.



#### **Problems facing this Technology**

The blockchain industry is still in its early stages, and while it has enormous potential, it also faces serious challenges. As a crypto enthusiast or developer, you’ve probably heard of the major problems facing blockchains today: issues with scalability, centralization, and complexity; security threats like 51% attacks; the issue of interoperability between blockchains; difficulties in maintaining an efficient consensus mechanism; cost and speed concerns; lack of regulation.



#### **Conclusion — Blockchain Interoperability**

You might be thinking, “Okay, so what? How is this relevant to me as a user?”

Blockchain interoperability isn’t just relevant, it’s important.

This technology has the potential to reshape the current blockchain ecosystem for us all. It will bridge the gap between existing protocols and allow users to interact with multiple blockchains from within their current DApp or wallet, without having to rely solely on exchanges. This could help alleviate many of the issues that have plagued the industry thus far, like those around scaling and liquidity.

And most importantly for you, blockchain interoperability will enable seamless cryptocurrency transactions across multiple chains — something that’s sorely needed in today’s fragmented market.


Bitpowr helps you Intergrate and build on the blockchain 

Check out [our documentation](https://apidocs.bitpowr.com/) to learn more about our wallet services and other related products.
[Contact sales](https://www.bitpowr.com/contact#contact) or send an email to sales@bitpowr.com to get started!





Blockchain interoperability will be important to the cryptocurrency ecosystem 

Interoperability: what does it even mean?

### **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.


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

Check out [our documentation](https://apidocs.bitpowr.com/) to learn more about our wallet services and other related products.
[Contact sales](https://www.bitpowr.com/contact#contact) or send an email to sales@bitpowr.com to get started!

Being a Web3 developer no doubt pays a whole lot imagine earning 

How you can become a Web3 Developer.

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

Are you still thinking of why you should use a crypto 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 for your Bussiness? Check out the types of wallet we offer at [ Bitpowr](https://www.bitpowr.com/solution/wallet)**

**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 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 wallets 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.


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

Check out [our documentation](https://docs.bitpowr.com/docs)to learn more about our wallet services and other related products.
[Contact sales](https://www.bitpowr.com/contact#contact) or send an email to sales@bitpowr.com to get started!

Are you still thinking of why you should use a crypto wallet ? well, a study from Juniper Research 

Why Use Crypto Wallets?

## **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. 

Check out [our documentation](https://apidocs.bitpowr.com/) to learn more about our wallet services and other related products.
[Contact sales](https://www.bitpowr.com/contact#contact) or send an email to sales@bitpowr.com to get started!

Generally, wallets are a piece of item we keep in our pockets to store our cash

Understanding 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.

Check out [our documentation](https://apidocs.bitpowr.com/) to learn more about our wallet services and other related products. 
[Contact sales](https://www.bitpowr.com/contact#contact) or send an email to sales@bitpowr.com to get started!

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

Bitpowr : A Wallet and Digital Assets Infrastructure

## **How to Grow Your Business Using Digital Assets.**



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 let's understand what it is all about.


 

### **What are Digital Assets?**
To begin, 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. They 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 assets is that cryptocurrencies are the native assets 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 assets 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)


They 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**



If you are building on the Blockchain and need to manage your company’s crypto assets, then you are in the right place. [Bitpowr](https://www.bitpowr.com/) maintains custody of your crypto assets and provide wallet management services that facilitate the tracking and valuation of crypto assets.

Check out [our documentation](https://docs.bitpowr.com/docs) to learn more about our wallet services and other related products. 
[Contact sales](https://www.bitpowr.com/contact#contact) or send an email to sales@bitpowr.com to get started!

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

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How to Send Fee-less Tron Transactions.

What is Multiparty Computation (MPC)

What You Need To Know About Zero Block Confirmation

MPC vs Multi-sig Wallets: Which is best for your Business

Bitpowr Wallet now Supports Bitcoin SegWit Addresses

Interoperability: what does it even mean?

How you can become a Web3 Developer.

Why Use Crypto Wallets?

Understanding Crypto Wallets

Bitpowr : A Wallet and Digital Assets Infrastructure

How to Grow Your Business Using Digital Assets.

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Blog

sdfnawjfgwdfva

How to Send Fee-less Tron Transactions.

What is Multiparty Computation (MPC)

What You Need To Know About Zero Block Confirmation

MPC vs Multi-sig Wallets: Which is best for your Business

Bitpowr Wallet now Supports Bitcoin SegWit Addresses

Interoperability: what does it even mean?

How you can become a Web3 Developer.

Why Use Crypto Wallets?

Understanding Crypto Wallets

Bitpowr : A Wallet and Digital Assets Infrastructure

How to Grow Your Business Using Digital Assets.

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