FAQs Bitcoin

Bitcoin is controlled by miners

When dishonest nodes are 51% or more, the attacker can only change the order of the transactions and can double spend (his own money only), he cannot add or create new transactions out of thin air so this limits what he can do.

As long as miners and distributed, they cannot do the attack, and it cost them to much to keep doing this.

All mining software code is open source

As the network grows, it becomes harder and harder for a single entity to do an attack. Also, it’d need to keep pace with the original chain or else when it’s behind, attack will be stopped

Under no circumstances could an attacker create counterfeit coins, fake transactions, or take anybody else’s money. An attacker’s capabilities are limited to taking back their own money that they very recently spent, and preventing other people’s transactions from receiving confirmations

its just like any other digital currency

• They can be printed at the subjective whims of the controllers
• They can be destroyed by attacking the central point of control
• Arbitrary rules can be imposed upon their users by the controllers

Unlike fiat, it’s predictable & limited or predecided supply but deflationary at same time (burns coins to maintain system), not controlled by central authority

Unlike electronic currency

• Potentially anonymous
• Freeze-proof
• Faster to transfer
• Cheaper to transfer

Bitcoin is decentralised so solves this

Bitcoin is backed by processing power

“backed” means that it is pegged to something else via a central party at a certain exchange rate. But you cannot exchange bitcoins for the computing power that was used to create them

The Bitcoin currency is created via processing power, and the integrity of the block chain is protected by the existence of a network of powerful computing nodes from certain attacks

Bitcoin value based on electricity and processing power

Just because something takes X resources to create does not mean that the resulting product will be worth X. It can be worth more, or less, depending on the utility thereof to its users.

The cost to mine bitcoins is based on how much they are worth. If bitcoins go up in value, more people will mine (because mining is profitable), thus difficulty will go up, thus the cost of mining will go up. The inverse happens if bitcoins go down in value. These effects balance out to cause mining to always cost an amount proportional to the value of bitcoins it produces

Bitcoins are worthless because they aren’t backed by anything

Gold doesn’t either Bitcoins have properties resulting from the system’s design that allows them to be subjectively valued by individuals.

It doesn’t have inherent value but subjective value which is determined by the importance an individual gives to it to achieve a specific result. Eg: Diamond-water value paradox. Someone who already has water will see more value in diamond, while someone to roaming in a desert will see value in water.

Diamond needs more labor and work compared to water so according to normal value, it should be more valuable to everyone but this idea becomes useless in the desert example. Also, it’s not either or but how many quantity of the item they value because there’s diminishing marginal utility

Intrinsic value

We can embed messages on blockchain with the transactions. it can be used to prove ownership of a document at a certain time, by including a one-way hash of that document in a transaction. Similar to electronic notarization but cheaper and can’t be changed due to bad intent

consider the value of bitcoin the global network, rather than each bitcoin in isolation. The value of an individual telephone is derived from the network it is connected to. If there was no phone network, a telephone would be useless

Tax Evaders

Tax evaders are often caught because their lifestyle and assets are inconsistent with their reported income, and not necessarily because government is able to follow their money. So it’s not the money but the reported income that helps them know when someone’s evading tax

Bitcoin block chain is a permanent record of all transactions, meaning it can be mined for info at any time in the future making investigation, tracing of funds, etc

No chargeback mechanism or preventing fraud

Multisig escrow accounts are used to spend the funds only when both parties fulfill the conditions agreed upon.

These escrow accounts are pieces of open source code reviewed by multiple developers

Waste of energy

No more than mining gold, building banks, atm, their electricity and staff to maintain it.

Mining rigs can be set up almost anywhere in the world with relative ease so it’s setup at places where electricity is low cost. It’s cheap for a reason, it’s difficult and wasteful to transfer. Also, some heat is released upon electric consumption so a way could be found to use it

Environmental costs need to be weighed against the benefits

Shopkeepers can’t seriously set prices in bitcoins because of the volatile exchange rate

The assumption is that bitcoins must be sold immediately to cover operating expenses.

If the shopkeeper’s back-end expenses were transacted in bitcoins as well, then the exchange rate would be irrelevant. Larger adoption of Bitcoin would make prices sticky.

General

It’s illegal because not legal tender. Legal tender means unit of account backed by government. Gold or usd is not accepted in shops in india so it’s not legal tender but INR coin & notes are so then gold would be illegal with that logic. Legal tender and illegal is not the same.

Early adopters are unfairly rewarded They took the risk and their capital helped the community and currency grow. It’s like calling early investors in a company or those who participated in IPO as unfairly rewarded

Isn’t enough 10cr or 100 million Satoshi in 1 btc so there are 2 quadrillion economic units

Lost coins isn’t bad because btc will be worth more with reduced supply. Consider it donation

Quantum computing isn’t possible for some time, and bitcoin cryptography can be updated. The risk of quantum computers is also there for financial institutions, like banks, because they heavily rely on cryptography when doing transactions and use the same algorithm

Opportunities for criminals Visa, MasterCard, PayPal, and cash all serve as opportunities for criminals as well (money stolen from bank, frauds, etc), but society keeps them around due to their recognized net benefit. Air flights being hijacked doesn’t mean consumer flights are abolished. Bitcoin will grow to the point where no single organization can disrupt the network, or would be better served by helping it.

Bitcoin controlled by developers Might have influence but always made changes by consensus. If the btc blockchain protocol itself is changed, it’d need a different client (software interface) to interact with the new protocol. But if people don’t use it due to finding if it’s violating something, the others who use it won’t get their transactions approved because very few use it.

Bitcoin was hacked There’s hasn’t been any attack or vulnerability in the bitcoin currency itself. It’s the websites using the currency that have been hacked or the inadequate wallet security. There are measured like hardware wallets, encryption

An analogy: just because someone stole US dollars from a supermarket till, doesn’t mean that the US dollar as a currency has been ‘hacked’

How to earn in crypto

Sell your service or product to earn in Bitcoin, Eth Some platforms accept fiat money and convert it to crypto and send you like a payroll service. Bitwage https://www.bitwage.com/ Sablier is another platform to pay employees in crypto but time based Mine the coin or other fun coin having less difficulty so you can buy eth

• Earn it
• Sell unwanted goods for it
• Buy it from a friend or at a local meetup
• Provide value to others and have a donations page
• Pay for dinner when out with friends and ask them to reimburse you via bitcoin (perhaps for a slight discount?)
• Mine it (check out this great piece on garage mining)

100 million Satoshi (the only unit) is 1 bitcoin Bitcoin is nothing, it’s only Satoshi. 21 quadrillion Satoshi in lifetime

Ethereum Staking

Ehrereun is ASIC resistant

View description links for such websites to stake

1. Stake in exchange You lend your coin and they do the validation part
2. Staking pool You pool your coins and computing
3. Validator as a service Rent a validator machine

Web 3

Various tokens (utility, governance, NFT)

Wrapped tokens (to be able to send one crypto to another blockchain for its benefits like faster transaction and lower fees)

Dapps

ENS (buy domains)

Oracles & chainlink (get offline data to communicate with blockchain so smart contracts can work like sensors, gps)

DAOs (Decentralised Autonomous organizations. Eg: for fundraising). Use Aragon to create your DAO without code. Snapshot for voting system. When analysing DAO, look at their treasuries for what kind of tokens they’re holding. If they hold too much eth then you also investing separately in eth lessens diversification. Also understand how those token values can influence this token’s price

Interplanetary File system to store files without being lost and truly can served anywhere as it gets copy from nearest node

Researching tokens

tokenomics of any coin describes how the value of that coin is influenced, how it works and what factors affect it. This and whitepaper are the basic research you need Read articles regarding the coin Search on reddit and Twitter the coin name & hashtags to find what people say

Why decentralisation matters

Many companies first do anything to attract developers, creators, value adders to there platform but once done, they switch and build their monopoly. Eg: iOS charges 30% for app sales and every platform becomes negative towards people once it acquires market share

Also, you’re vulnerable to security breaches, privacy at risk.

Centralised companies make all the decisions but in decentralisation, users vote for it, not 1 vote per use but weightage as per how much they own.

Smart contracts are trustless, lower fees, fast transaction, secure because of POW & POS. Oracles connect with the offline world. Dapps don’t get shut down

It’s open, trustless, permissionless.

The storage doesn’t get deleted. IPFS can help you access storage faster even on other planets if we want to

Defi

Find latest rankings of defi protocols: https://www.defipulse.com/

How much money is there in the system

M0 is the money that can actually be spent. The reserves in the bank

M1 is reserves + the money of the depositors (checking accounts balance) which they use to lend or anything that can be used for money

M2 is M1 (reserves) + M2 (deposits) + New money supply

Feed find rate or target rate decreasing means increase in money supply. They print money, but treasuries bill (like short term govt bind) from people, people deposit it in Bank, reserves increase so bank are willing to lend surplus reserves at lower rates. The rate at which they lenge reserves to other banks is the target rate they’re changing. Eg: govt wants 5% target rate, then it’ll increase money supply till loan is given to other banks at 5% pa

So ultimately they increase banks lending capacity

Rug pull detecting scams imp https://youtu.be/YFaqng3YESE

Why not traditional finance

Banks can print money to make expenses for wars, etc, and cause currency to fall. Bankrun can also happen. They can lock your bank account without proof. Eg: For GST, if they find any tax pending against you (without being verified it’s correct), they’ll block all your money in the bank and you can’t use it for weeks even Eg: Truck protestors in Canada were taking donations to support their cause but the company and bank decided to shut their account, keep all their funds

Very high interest rates on loans

Non reversible transactions not possible. Eg: PayPal held funds and sometimes didn’t gave. If there’s any dispute, they can reverse the transaction (might not be for normal people but who have more money) so there’s a trust and human factor which is variable

Why DeFi

Orders execute fast due to automated market maker algorithm rather than order book.

Autoswap technology will reduce fees drastically and be instant.

Currently no credit score like thing but the collateral is higher which ensures potential loss for doing a fraud is too high than potential gains so it’s in favor of the attacker to be good to system since he can gain a lot when playing by the rules

Various DeFi

Uniswap is DEX based on AMM model

Balancer is like creating your own index fund liquidity pool of more than 2 crypto you have (8-10) as a liquidity provider and earn fees.

In normal liquidity pools, you have a paid like eth to bat token. But in balancer, you can deposit multiple tokens in 1 pool like eth,bat,dai,chain, etc and you provide liquidity

Curve is DEX for stable coins so it’s able to offer trades at very less slippage (difference between expected price and price at which order is actually executed)

It can directly swap token for token rather than token A to eth then eth to token B. Fees are 0.04% currently as compared to 0.3% for uniswap. Uniswap also has stablecoin but pair can have higher slippage

Bancor Can do single sided liquidity. Can deposit only 1 token instead of compulsion to do 50% worth of 2 tokens in uniswap to start.

You earn fees from swaps & liquidity rewards in BNT token (which also appreciate in value because every pair of token pool is with BNT. So BNT to eth and there’s no Eth to dai)

Impermanence loss protection (on most liquidity pools, check shield mark). If you keep liquidity for 30 days minimum you get 30% protection then 1% per extra day. In 100 days you’ve 100% protection so when you withdraw, you won’t suffer any impermanence loss no matter what. You’ll get your initial token + fees

You can restake your bnt rewards. Or with Bancor Vortex, you can get borrow another token against BNT, take it to another exchange and earn interest or sell and payback the interest.

In BNT eth pool the fees will be in both token but Bancor platform doesn’t need the other token so it’ll add those excess token for insurance fund. If there’s not enough insurance, it’ll mint BNT of enough value to compensate for lost token

How Bancor insurance works and how you can stake 1 token in LP https://newsletter.banklesshq.com/p/how-to-protect-yourself-from-impermanent?s=r

dYdX is a DEX based on order book, not AMM built on layer 2 ethereum so no gas fees for placing orders, fast transaction but some normal trading fees are there. You get reward token for every trade you do so it’s becoming famous. It’s new and mostly governance token. There’s also borrow/lend, leverage and margin trading option. Can do but and sell orders without gas fees

Dex Aggregators

Dex aggregators let you swap tokens but they collect price from other DEXes and finds the best conversion route to have the lowest fees and least slippage. It’d divide up your order value to execute portions of your transactions on different DEXes as per the availability or supply at a good price. 1inch is a popular DEX aggregator

Decentralised lending and borrowing

Peer to Contract to peer lending.

APR annual percentage rate is annual interest, but then it’s divided into interest per day, then compounded daily so the actual annualized return are different it higher than APR

Needs over collateral to get loan (incase you don’t want to sell the original token or don’t want to pay capital gains, you’ll now it against a stable currency, or may borrow another currency and stake it further to earn interest. Live borrowing to earn)

APY is annualized percentage yield which is what you’ll be getting for actual if compounded daily

APR does not include reinvesting profits which helps in compounding

• Compound platform
• Aave platform It has multiple features like flash loans, collateral swap (rather than withdrawing and changing collateral incase you sense that price will drop), loans at stable rates and many ither

If the value of collateral increases, you can repay the loan from the collateral itself

Flash loans are to be settled in the same block. For collateral swap, self liquidation, arbitrage or currency price on different exchanges. They aren’t taken directly as loans but are smart contracts which has instructions about what to do when it borrows the flash loan. There are Dapps which allow you to take and execute such flash loans as per use cases

Asset Management (Index Fund)

Defi pulse is a defi index fund choosing tokens that have most reputable and good defi projects built from them and their weight is as per the circulating supply and price.

You get the defi pulse token which represents ownership of all the tokens in the index basket.

There are portfolios (strategies like index), social trading (people or offchain algorithms managing the fund), robo (algorithms in smart contract run it like looking as 12 day moving average )

Eg: Metaverse fund which has all tokens in the Metaverse space

How to buy defipulse https://youtu.be/kVou8QNABxE

Defi Dashboard

Zapper is a dashboard in which you can see all your investments, protocols, liquidity pools you’re in. Can also place transactions between various protocols in 1 command rather than going to each one and doing the transaction but gas fee will be there.

You can view collateral ratio, interest rates, etc of all other protocols at one place.

InstaDApp is a DApp built on the Ethereum network that integrates DeFi protocols into one platform for easy asset monitoring and management.

Yield farming

Getting returns on locked crypto-currency. Strategies involves steps to maximize returns by: Lending & borrowing, supplying capital to liquidity pools, staking LP tokens, switching between different protocols based on where we get the highest APY

Yearn finance is a protocol that has these strategies and you can do yield farming

Yearn Vaults are pools of funds following a specific strategy.

Potential risks are the smart contract bugs, stable coins losing their peg, collateral liquidation

Decentralised payments

Although btc, rth can be used, this is focused on making transactions faster and cheaper. XDai sidechain, block explorer (see record of all blocks of transactions), sablier is a smart contract system to pay employees in crypto. It unlocks funds based on time of the employee and allows them to withdraw it.

On ramp means getting the income in crypto, off ramp means solutions that enable spending in crypto for everyday use

Prediction markets

People bet on a future prediction for anything from the election results to weather on a day. It’s decentralised so no one can stop from influencing too much of the market by placing bets on what you believe in, less fees, more control.

Almost always the actual results are closer to prediction because the public is putting money to buy the share that represents that prediction. If it becomes correct then you get the money.

Use it as a tool to understand market sentiments and what can happen because of close accuracy.

Augur let’s your create your own market

Lotteries (No loss)

Pool Together is a DAO so it has governance tokens and can earn interest via deposits

If you play dai pool lottery, you get 1 ticket for 1 dai.

The platform deposits money on Aave & Compound to earn interest and this interest money only is used as prize money

You can withdraw your funds at anytime and you have chances of winning as long as you have your money in the pool.

The platform doesn’t make money for itself because the investors and core team got a percentage of pool token. And the pool token deposits earn decent interest (8-10% or more). So even if you don’t win but just deposit pool tokens, you’ll earn money

The winner is chosen using chainlink verifiable random number. Everything is transparent so you can see which addresses won the lottery, how many tickets they had, what other pools they’re in. You can win multiple times without limit from the same pool if ticket matches

Insurance (Nexus Mutual)

Decentralised insurance takes less fees due to no infrastructure, clear terms with Oracles, premium is decided, investors can also pool money to make the money pool bigger.

Proper term is “smart contract cover”

To know how much defi is growing, see TVL (USD) in Defi on defi pulse

Economics of insurance

Inefficiency:

• Lack of trust because the agent and end-user have different incentives. Eg: agents seeking high-commission plans
• Opaque information about company
• Expensive overheads 30-40%

Economics:

• Use premium to invest
• Signaling: doing an IPO is a signal that the company is doing good as others have done research and it’s a good company
• Moral hazards: people will be less cautious when they know others will cover their risk. So introduced copayment
• Principle agent problem

Risks in DeFi examples:

• DAO back
• Polkadot multi Sig freeze
• Liquidation in makers called

Types of risk:

• Internal technical risk (most common): Smart contract b
• ugs, hacks, exploits
• External technical risk: onchain but outside of scope of code like Oracle failure, governance attack
• Economic incentive risk: Big players to sway votes, manipulate votes, concentration of power. Incentives can change token holders behavior

Risk sharing:

• Conver buyer
• Risk assessor: Stakes the NXS token to say that he thinks the thing is good. If everything is ok, he gets his strange back with a party of primium
• Claim assessor: At time of claim, he stayed his token and checks if claim is valid and there was indeed a bug in code, then it gets voted on if there should be a payout

Nexus Mutual economics

Nxm isn’t traded on secondary market and token’s price signals the trust in the company

To get access to nxm, do any of kyc, membership payment, get coverage, purchase nxm via platform (stake). If you want to trade or speculate nxm without kyc, use wnxm (wrapped)

You don’t get insurance from the company but it’s decentralised participants that pay (risk assessor, claim assessors)

MCR is minimum capital requirement (like reserve in a bank) (money to pay insurance claims)

If MCR ratio is high means more capital avilable to be used to get more returns. If ratio is low means most of it is used towards MCR

MCR grows 1% every 25 hour built into system because as total capital increases, it needs to be adjusted

Total capital is the capital with Nexus Mutual (includes collateral and similar to liquidity pool)

MCR ratio is total capital / MCR (tells the capital efficiency)

Buy deFi insurance

Payouts in dai or eth

You can gets quote or buy nxm to own part of cover

Click get quote, buy cover, min 30 days, you can always buy more so be conservative.

You need to be a member with fee of 0.002 ETH and do kyc because currently uk regulated company. May change in future to a DAO

APY is annualized premium, capacity is how much cover is available for that protocol

You don’t need to have the eth you insured under you wallet to get the cover. So it’s regardless if you have eth under that wallet address. So you can speculate on there being a bug

You buy nxm, then go to the pooled staking option to stake against other smart contract

Multi chain protocols and bridges

Bridge transfer coin from one blockchain to another. WBTC is converted by a company BitGo and it holds your funds so there’s some risk. RenBtc is a smart contract code that converts your btc to RenBtc which can be traded on Ethereum blockchain. It’s developing multiple blockchain bridges.

Thorchain allows to swap native tokens without centralised exchange and without any wrapped token token which is just a representation using liquidity pool model. User RUNE token as LP token and pairs

Binance chain works for Ethereum and binance

Anyswap is a DEX to swap btc, eth, etc. Can also provide liquidity and stake ANY tokens

Terra is a POS blockchain so a whole ecosystem like Ethereum. UST is a stable coin on it, Luna is native network coin used to keep UST stable. There are various algorithmic stable coin on it like EUT for Euro. The max fee cap on Terra is 1% but usually lower.

Their aim is to develop a payment processing ecosystem replacing the fiat currency and payment processors.

Holding Terra token of you think more people come on the ecosystem and secondly, you need Terra to do anything on that blockchain. Unlike all other Algorithmic stable coins that failed building on other blockchain, this has incentives and full ecosystem

Terra is already built for interoperability between blockchain from the start

Mirror protocol on it allows to create representation coin. Eg: mETH represents eth but other coins call represent stocks, real estate, and many other things. This helps to make people use Terra

Anchor protocol gives interest like savings account. This helps to keep people on Terra

The transactions complete in seconds and very less fees so alternative to Ethereum if dapps and smart contracts are built

Terra station is official wallet for holding, staking, swapping, governance

Capital raising

ICO is initial coin offering, usually utility token (promising a good or service like giftcard)

STO is security token (promising profits for investment) having underlying asset aka security and are safer than ICO and more regulated so only accredited investors can invest

IEO is initial exchange offering is where the company offers its token to the exchange in order to get listed on their exchange so general public can buy and raise moderate funding. Increases trust. Exchanges do the marketing and makes it possible to immediately trade unlike ICO where it isn’t listed

IDO initial DEX offering provides liquidity on DEX like uniswap to raise funds

BCO bonding curve offering. The token in it is called continuous tokens. As the price increases, the supply increases

IFO initial farm offering is a pre-sale token fundraising on DEX

Liquidity Bootstrapping pools LBP from Balancer solved the problems of front-running, bit attacks, pump & dump of IEO, IDO.

These are called smart pools which are smart contract liquidity pools having rules. Can dynamically change weights of token like how much % will be token A & B so price can determined. You can change tokens, weights, swap fees, limit or whitelist LPs, limit fund deposits, start and end time for trading

Miscellaneous

Risks in DeFi Smart contract bugs, phishing (never share seed phrase), Oracle failure & using flask loans for this, Admin key (allows to move funds to another protocol), liquidity crisis, governance failure, De-Pegging especial stable coins

Privacy Coins

Why privacy?

• If the btc you sent was stolen from an exchange when you got it, the transaction would be invalidated and you’d lose that
• Institutions or any company can track how much balance your wallet has and charge you more or try to threaten you to get those coins
• You can be watched regarding the purchases you make so there’ll be fear that you can be traced if doing anything

Issues with btc fungibility because 1 btc may not be equal to 1 btc because some btc might have been used in illegal things and those can be rejected or if someone funds it that you spent those btc, you can be caught or blocked so the history of each coin makes a difference so xmr is superior to do transactions

Why fungibility matters and stories of how btc were rejected, blocked, tracked, etc https://www.youtube.com/watch?v=Qn9osUee-0A

For btc, use no kyc DEX, “mixers” (mix multiple transaction to make it hard to track who did it but need to trust them), hardware wallets, network security like TOR, different addresses everytime you recieve something

Chain analysis companies do this traceability

Blacklisted address have history of sending crypto for illegal things or sanctioned countries. Whitelisted address have new coins minted from them so no history so people pya premium to get it from there otherwise the transactions you do can be discarded by saying the source of this is blacklisted.

If you or someone else before you uses coin join to mix blacklisted address transactions, your account may get blocked because they were coins from theft, etc. An exchange cannot go back more than 12 normal transactions to blacklist an address. So after coin join, just do 13 consecutive transactions to yourself other addresses and they’ll not be tainted (done using coin join or coins by theft or illegal activities). And there’s a limit to how much they can go back otherwise everything will be tainted. Samourai wallet has this hops feature where you say how many you want

Maintain privacy in Bitcoin

https://en.bitcoin.it/wiki/Privacy

Do not reuse address, avoid kyc

Use a wallet backed by your own full node or client-side block filtering, definitely not a web wallet

Broadcast on-chain transactions over Tor, if your wallet doesn’t support it then copy-paste the transaction hex data into a web broadcasting form over Tor browser.

Use lightning network

Use tail OS

Single-use lightweight wallet over Tor

• You want to anonymously buy something or donate to something online.
• You install Electrum wallet and configure it to use Tor, or use Tails OS.
• You buy bitcoins anonymously with cash and have them sent to your Electrum wallet.
• You spend the entire balance of bitcoins buying or donating to the thing you want. After you’re done you delete the wallet and never use it again. Your Electrum wallet used a third-party server which can see all your bitcoin addresses and transaction. As you’ve connected to it over Tor, the server does not learn your real IP address. As you only use a single bitcoin address once and never again, the server isn’t able to cluster together any other addresses. As you spent the entire balance there is no change address which can leak information. This setup actually results in strong privacy even though a third-party server is used.

Monero

Stealth address protect the receiver by combining 2 keys so no one can see the receiver’s balance on blockchain

Ring signatures protects sender’s privacy by combining multiple change amount so no one can see who made the transaction

Ring Confidential Transactions (RingCT) masked the amounts

Standard or Primary address, also referred raw address are like normal address you use to receive from legacy wallets, accepting block rewards from mining and pools (starts with a 4)

Subaddress helps you know for what you received the payment, can group funds category wise. Like having multiple wallets for different purposes but don’t have to create them manually. Use this to receive payments (starts with a 8)

Integrated address to receive monero in automated way like in online stores and exchanges. Don’t use subaddress for online stores as they need 1 identity and not the best possible way (use cases, Payment ID/Memo)

The RandomX algorithm makes its ASIC (specialized machines for specific algorithms) and GPU mining resistant so only cpu mining allowed making miner decentralisation

Tail emission is that the reward per block will never fall below 0.6 xmr per block, will stay there so mining continues which provides security to the blockchain. Dynamic block size and their bulletproof method reduces transaction size and costs

Churning means simply sending the entire balance back to yourself. There’s a privacy increase because by doing so, you increase the distance of your funds from some source

If you use block explorer, they might track your ip and query you did she associate those. So instead run your own block explorer localising by downloading their open source code

Use different seeds or wallet if you want to keep you identity separate like if you’re running a side business while doing a job. Because receiving amount on any sub address lands in the same wallet. Suppose there’s sub address A & B, you give A to a person, but thinks you also own B, and sents it’s there and confirms from you, then attacker knows that you own both sub address. Never confirm the receipt of funds to the attacker

Don’t use exchange deposit sub address to receive funds, instead create your own sub address, receive funds in it, and then send it to the exchange

Common concerns with Monero

https://sethforprivacy.com/posts/dispelling-monero-fud

Infinite supply argument from Bitcoin crowd Defined supply of 18.4m, then tail emission (minimum reward to keep network secure) of 0.6xmr per block to incentivise miners. Inflation is approaching 0% and makes up for lost coins, way less than gold and cash. You can know the inflation rate and totaly supply at any point in the future without doubts

Auditing supply Monero nodes constantly verify supply using range proof and complex math as it’s private. View supply on its block explorer or exchange

Miner centralisation It’s miner decentralised because RandomX algorithm makes it ASIC resistant (application specific Integra circuit are machines for 1 thing only) so everyone must use CPU which are less efficient relatively

Adoption Used in many places now. Grown because of word of mouth and features, no marketing team

List of kyc-free exchanges https://kycnot.me/

Zcash

It’s a fork of bitcoin so capped at 21m supply, it has optional privacy i.e., you can choose from transparent and shielded address

Zcash has viewing key features 2hich allows merchant to verify if the transaction was completed. Equihash is the algorithm

Zcash memo fields allows to add additional encrypted information that’s only visible to the recipient and one with transaction view keys 3hich also enables them to view amt, receiver address. Payment disclosure is a method of proving that a payment was sent to a shielded address, without revealing all of the transactions sent to/from that address.

10% rewards to founders, investors, etc which is 2.1m ZEC

Zcash is self sustaining because of dev fund. Active community and can in future support Zcash shielded assets that are representations of real assets (user defined assets) or encrypt messages on the blockchain with its memo feature

Similar to wrapped token on Ethereum, Zcash user defined assets are there but will have the inbuilt privacy, simplicity, and less cost

Extra Resources

Buy shopping gift cards with crypto https://www.bitrefill.com/buy/?hl=en