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I Think...
The Best Crypto Exchanges is...
1, Coinbase and Coinbase Pro: Best Overall.
2, Cash App: Best for Beginners.
3, Binance: Best for Altcoins.
4, Bisq: Best Decentralized Exchange.

Chainlink is now the number 1 defi token thanks to coinmarketcap deciding its a defi token and adding it to the list,” analyst and speaker Jason Fernandes wryly tweeted on Monday. “Tune in next week when Binance coin becomes the second biggest defi token.

Mining is, in effect, a process of auditing and verifying Bitcoin transactions to prevent the problem of “double spending”. Double spending is where someone with cryptocurrency tries to spend the same coin twice. With physical currency, you can’t buy a drink in a pub with a £20 note and then pop to the shops to buy some groceries with the same £20 note.

With cryptocurrency, there is a risk that someone with Bitcoin could make a copy of that Bitcoin and send that to a merchant instead of the real thing. In the real world, the cashier looks at a £20 note to ensure it is not fake—and this is what Bitcoin miners are trying to do with cryptocurrency; they are checking to ensure that a transaction has not been made twice.

Are you looking to invest in Dogecoin but don’t know where to start? If so, you have come to the right place. Cryptocurrency assets come with a lot of risk. However, it’s also growing in popularity amongst investors.

The crypto market is crowding up quickly. But, Dogecoin has turned a fun joke into an actual investment opportunity. Take a glance at its thriving community and you will understand why.

Some of Ethereum’s original and legitimate commercial implementations are as follows:

1) DeFi or Decentralized Finance is one of Ethereum’s most popular types of real-world finance. It comprises loans driven by the use of smart contracts. Users will mine and trade with the stablecoins and transactions. With the aid of this program, this mining takes place on the decentralized network.

2) Ethereum technologies may be used by government agencies that function with records of the population. This decentralized system will help to build a paperless digital identifying system

3) Technology is changing the healthcare sector too. It finds its suitability to work to eradicate the primary obstacle facing the healthcare industry, which is the documents. Health care records of patients are everywhere and they amount to a lot of memory and space storage. The Ethereum framework works to render ease and accessibility.

Ethereum is based on the Bitcoin protocol and the architecture of its blockchain. The Ethereum blockchain can be used as a state-based system for transactions. Its working can be briefly described in detail as follows:

Step 1: Each Ethereum state is composed of millions of transactions.

Step 2: These transactions are grouped together in the form of blocks linked to other blocks.

Step 3: But it needs to be checked via a method known as mining before the transaction is applied to the ledger.

Step 4: A lot of miners are competing with each other to shape a block.

Step 5: Once a block is formed by the miner Ether tokens are generated and given to the miner

What is Bitcoin DeFi, and How Does It Work?
Most—if not all—DeFi platforms are built using Ethereum. But Bitcoiners are getting involved in DeFi: huge amounts of Bitcoin are entering Ethereum smart contracts so they can essentially be tokenized and used to invest in DeFi products. Enter Bitcoin DeFi.
By Mathew Di Salvo

4 min read

Sep 23, 2020


You may have heard of decentralized finance (DeFi). It’s the newest craze to enter the cryptocurrency world, with billions of dollars having been invested in DeFi products in 2020 alone. 

Increasingly, Bitcoin holders are getting involved in DeFi by "locking up" their coins in exchange for tokens that can be used on DeFi platforms.

What is DeFi?
DeFi products are tools built predominantly on Ethereum that aim to revolutionize and replace the current methods of borrowing, lending and banking as seen with traditional finance.

The aim of DeFi is to make the world of finance available to all (or to anyone who has an Internet connection).

Why would Bitcoin be involved?
The majority of DeFi platforms are built on Ethereum. But there are a lot of people who own a lot of Bitcoin who want to get involved too. So it is becoming increasingly easy for those with Bitcoin to be able to invest in DeFi platforms with their funds.

Bitcoin is the biggest cryptocurrency by market cap, so it makes sense for things to be moving in a direction that links the asset with DeFi products.

How does Bitcoin DeFi work?
Bitcoin DeFi works by basically allowing Bitcoin—a currency on one blockchain—to run on Ethereum’s very different, separate blockchain.

How? This is where things get a little complex.

You can’t use Bitcoin directly on Ethereum platforms—as mentioned before, the blockchains are different. In order to do so, the Bitcoin needs to be converted into a currency that represents Bitcoin but is really an Ethereum-based token.


Then, the Bitcoin is essentially locked into a smart contract, (a piece of code that performs instructions to replicate agreements) and can be used on the network. Think of it like a swap.

Using Bitcoin DeFi to generate passive income
Why would someone want to put their Bitcoin in Ethereum smart contracts, you might ask, when they could just buy Ethereum tokens directly and get started from there?

One good reason is to make your Bitcoin work for you in the form of passive income. We all know that a lot of people hold onto their Bitcoin as a store of value—not for purchasing things online (as was originally intended) or remittance payments.

Besides, there are many other cryptocurrencies that serve that purpose now, some argue. So when Bitcoin is just sitting there as an investment in the hope that its value will one day skyrocket, why not use it to make money for you in the meantime?

One of the ways to generate passive income with Bitcoin is to utilize a DeFi platform to lend and earn interest with Bitcoin that would otherwise just be sitting around. It works like this: convert the Bitcoin into Ether or directly into Dai (a stablecoin, pegged to the US dollar) and put it in a platform where you could lend it out and receive loan back with interest.

One way of doing this would be to use the MakerDAO platform.

Who is leading the Bitcoin DeFi space?
A relatively new concept, there are a handful of companies currently leading this space. They include Wrapped Bitcoin (WBTC), RenVM, and RSK.

🤝 WBTC is a centralized collaboration between several DeFi protocols, including Maker, Compound, Kyber Network and Aave, among others. It works to lock Bitcoin on the Ethereum blockchain in exchange for ERC-20 tokens of the same value.
🖧 RenVM is a network that holds Bitcoin (among other cryptocurrencies) and mints a representation of that currency as an ERC-20 token.
🏦 Global lending platform RSK works to help its users earn interest with their Bitcoins by converting them into a stablecoin before lending them out.
What does the future hold for Bitcoin DeFi?
Right now, more Bitcoin than ever before is being sent over to Ethereum; nearly $1 billion worth, as of September 2020. This is undoubtedly due to the rise of DeFi. As the scene has grown in popularity, so have the methods of making Bitcoin run on such platforms.

Companies in the space are reporting record amounts of Bitcoin being converted into ERC-20 tokens.

As long as DeFi is popular, we will continue to see new companies work in this space to provide quick, easy and cheap ways to help Bitcoin work on DeFi platforms.