Explore whether crypto staking aligns with Islamic law in our comprehensive guide. Learn the key considerations for compliance. Read more to find out!

Many blockchain networks' well-regarded decentralization and security benefits are highly dependent on one specific activity — 

. Staking involves contributing crypto funds to 

 (PoS) blockchains to power the transaction validation activity on them. Stakers — which can be institutional entities or individuals — lock their cryptocurrency funds on these blockchains to receive the chance to validate blocks of transactions. In return, they receive cryptocurrency rewards for their work, making crypto staking a potentially viable income source. 

Many individuals and smaller business entities who lack the technical capacity or financial reserves to act as blockchain validators can still earn staking rewards by delegating their funds to their preferred validator on a PoS blockchain.

Along with liquidity mining, yield farming and crypto coin trading, crypto staking is one of the critical ways to earn income within the blockchain industry. Many Muslim investors may wonder if crypto staking is a halal activity. In this article, we cover all the key details related to crypto staking and its status from an Islamic law perspective, in order to help Muslim investors decide whether staking cryptocurrencies is halal or haram.

In order to maintain their operations and process transaction blocks, certain blockchain platforms (those based on a PoS block validation model) require the availability of crypto funds contributed to the network. This is because these blockchains award the right to validate transaction blocks to 

 that have staked/contributed a certain amount in the network's native cryptocurrency. In the most standard implementation of PoS, the more funds a node has staked on a platform, the higher their chance of being selected as the validator of the next block. This system is used to encourage participation from validators who have 

 — that is, those genuinely interested in supporting the network and ready to contribute funds for this purpose.

Staked funds aren't given away or "donated" by validators — they remain the property of the validator, and can be reclaimed/unstaked if and when the network participant who has provided them decides to stop their block processing activities. To encourage users' participation in the block validation process, validator nodes earn staking rewards for each block they help process.

Most crypto users don't act as full validator nodes on PoS networks, as this often requires substantial minimum staking amounts and technically intricate processes to set up and run a node. However, these users can also earn income from staking crypto in various more affordable and user-friendly ways. Examples include delegating their funds to their preferred validator on blockchains supporting such delegation, or participating in a staking pool (more on that below). Via these options, users can earn a share of the total staking rewards awarded to full validator nodes.

Additionally, crypto users can earn staking rewards using specialized products on crypto trading platforms and crypto exchanges. One such product is 

, previously known as Bybit Staking, which allows you to earn staking rewards without the complexities of staking in blockchain environments. Staking products on exchanges often provides a wider choice of crypto tokens and coins than direct blockchain-based staking. This is because blockchain-based staking options are limited to native coins of PoS networks, whereas exchanges frequently offer additional assets, such as popular 

Independent staking involves setting up and running your own full validator node on a PoS blockchain network. You are responsible for technical setup procedures and are typically required to keep your node online and ready to process blocks without significant downtime.

Minimum staking requirements for independent staking are often substantial. For instance, the 

 (ETH) blockchain requires validator nodes to stake at least 32 ETH (around $80,000 as of Nov 1, 2024), while becoming a 

 (BNB) validator requires an investment of 10,000 BNB (currently around $5.7 million). Technical uptime requirements aren't child’s play, either, as validator nodes are encouraged to be online at all times, and frequent downtimes may lead to penalties in the form of slashing, whereby you lose some portion of your staked funds.

The advantage of independent staking is that you can earn substantial amounts by receiving full staking rewards from the blockchain. On PoS platforms such as Ethereum, full validators don't need to pay anyone commission fees or other charges, nor do they have to share their rewards with others. In comparison, on 

 (DPoS) blockchains, independent validators share the rewards with those who have delegated their funds to them, but typically still earn a more significant cut than each individual delegator.

For most crypto users, the technical and financial requirements of independent staking are too high. As an alternative, these users can join a staking pool to earn crypto rewards. Staking pools are platforms that facilitate the pooling of crypto funds from many users. These funds are then used to manage the actual direct staking, for instance by running validator nodes or delegating the funds to blockchain validators. By joining a staking pool, you can earn a share of staking rewards commensurate to the share of funds you’ve provided. With PoS staking pools, you only need to contribute crypto, and don't have to worry about providing computing capacity.

Understanding Islamic Finance and Crypto Staking

For many Muslim investors, adhering to the principles of Islamic finance and Shariah law is important when choosing an investment product. Islamic finance principles state that any investment should avoid interest (riba), speculation/gambling (maysir) and excessive uncertainty (gharar). It also shouldn’t involve trading assets that you don't actually own, or be related to haram activities or products, such as drugs, alcohol, pork, gambling, betting or pornography.

When evaluating whether crypto staking is a halal activity, it's important for investors to differentiate it from other popular forms of earning crypto income: liquidity mining and yield farming. 

 involves providing crypto funds to coin swap pools on 

 (DEXs). These funds are required by some DEXs — those based on the 

 (AMM) model — to have enough liquidity for swap operations. Liquidity providers earn a share of transaction fees from swaps involving the assets in the pool. In turn, 

 refers to the strategic allocation of crypto funds across various 

 (DeFi) protocols to maximize yields earned. Yield farming allocations can often involve borrowing and lending activities, often with the involvement of interest (riba).

Learn all about Bybit Islamic Account and

Unlike many yield farming activities, crypto staking doesn't usually involve riba. There is no lending or borrowing of funds with interest in crypto staking. Stakers invest their funds to support the operations and security of blockchain networks, and earn staking rewards based on the amounts they’ve contributed. These reward payouts aren't based on money that has been lent to someone with interest.

As noted above, crypto staking isn't an interest/riba–based activity. Additionally, there's no maysir, or gambling/speculation, in crypto staking: stakers earn a certain amount of relatively stable income that has little to do with speculative trading activities. The fixed and stable nature of crypto staking rewards also indicates no gharar, or excessive uncertainty. In fact, crypto staking is considered among the least 

 or speculative forms of earning income in the blockchain industry.

As such, crypto staking lacks the characteristics of the three fundamental prohibitions in Islamic finance — riba, maysir and gharar. This indicates that staking cryptocurrencies on blockchain platforms may qualify as a halal activity.

Additionally, Muslim investors need to ensure that the blockchain platform they support with staking isn't involved in haram activities, such as those related to alcohol, pork or other products forbidden in Islam.

With crypto staking being a halal activity in most cases, investors might be wondering which staking platforms and coins are the most suitable from the Islamic finance perspective. Below, we list five cryptocurrencies and their associated blockchains that are likely the optimal choices for a Muslim investor looking for staking opportunities. These five options are among the largest PoS networks in the industry. This ensures that their staking processes are among the most stable and predictable in the cryptosphere, which helps minimize the probability of gharar. 

As the largest players in the industry, these chains' native cryptocurrencies also feature some of the highest current trading volumes, which ensures a higher degree of price stability and a lower likelihood of speculation/maysir for these coins. This is also a key factor from an Islamic finance perspective, as you’ll stake and earn rewards in these platforms' respective crypto assets.

Ethereum (ETH) — specifically, its current PoS version, 

 — is the world's largest blockchain currently utilizing staking for block validation. It’s known to provide stable and highly sought-after staking rewards in its native cryptocurrency, ETH. While independent staking on the network, which requires 32 ETH collateral, is financially not viable for many crypto users, you can still join a staking pool to earn rewards.

 (SOL) is another top PoS blockchain. It typically features faster processing times and lower fees for crypto transactions than Ethereum. Unlike Ethereum, Solana doesn't impose a minimum amount to run a full validator node. In theory, that means anyone could run an independent staking operation on the blockchain. However, in practice, the competition among Solana validators for the chance to validate blocks is intense, and those with modest amounts staked in them are unlikely to win the race. The good news is that Solana, unlike Ethereum, supports stake delegation. This gives you two practical options to earn staking rewards as an ordinary user: delegate your stake to a preferred validator, or join a staking pool.

 (ADA) is a leading PoS blockchain network that exclusively uses staking pools for its block validation. This means there's no individual staking on Cardano. To participate in staking on this blockchain, you have two options: run your own pool, or, as a more practical choice for most users, join an existing one.

 scalability solutions for Ethereum. At the heart of its ecosystem is the Polygon PoS blockchain, which supports independent staking via running a validator node, as well as stake delegation. 

Currently, Polygon validators are required to stake their POL on Ethereum’s network, although the platform plans to enable full direct staking via its own chain in the near future. For most users, however, stake delegation is the best option: in this mode, you don't need to worry about technical intricacies, such as which actual network — Polygon or Ethereum — is handling your stake. Besides the stake delegation option, you can also choose an external staking pool provider for the platform's native token (POL).

 (AVAX) is another popular and well-regarded blockchain that offers staking. Somewhat smaller than most of the chains described above, Avalanche is still among the heavyweights of the blockchain industry: its native coin, AVAX, has amassed a 

 of over $10 billion (as of Nov 1, 2024). 

Avalanche offers direct independent staking: you can run your own validator node, or delegate your stake. The independent validator staking option requires collateral of 2,000 AVAX ($49,880 as of Oct 31, 2024), while the minimum requirement for stake delegation is a relatively modest 25 AVAX ($623.50). As is the case with other major PoS chains, you can also find a variety of external staking pool providers for AVAX.

The crypto market features a variety of passive income opportunities, but identifying which ones are halal isn't always straightforward. In its typical format, crypto staking can be considered a halal activity, as it doesn't involve lending or borrowing funds with interest (riba), speculative trading akin to gambling (maysir) or excessive uncertainty (gharar) often associated with some other crypto activities. As such, Muslim investors can use cryptocurrency staking, although it's always important to carefully scrutinize the actual activities of the crypto project offering staking. If these activities aren't linked to haram industries or products, staking may be one of the safest options for a crypto-minded Muslim investor. 

Disclaimer: Due to varying opinions on Shariah compliance of crypto trading, we recommend you to conduct your own further research. Please note that the posts on Bybit Learn should not be considered as fatwa. Our aim is to present information on different topics to empower readers to make informed decisions.

Intermediate

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Is Crypto Staking Halal? All You Need to Know

Discover how to trade USDC perpetual futures on Bybit. Learn about margin types, collateral options, order types and risk management tools.

Perpetual futures at Bybit enable traders to speculate on cryptocurrency prices without expiration dates, providing flexibility for a wide range of strategies. With the added stability of USDC, one of the leading USD-pegged stablecoins, alongside customizable leverage and robust risk management tools, USDC perpetual futures are an ideal choice for both novice and seasoned traders.

What Are USDC Perpetual Futures Contracts?

USDC perpetual futures contracts are a type of crypto derivative that lets traders speculate on asset prices without needing to worry about contract expiration dates. This allows traders to hold positions as long as they meet margin requirements.

 (USDC) is a stablecoin pegged to the U.S. dollar (USD), designed to maintain a 1:1 value with it. It’s widely used as collateral in crypto trading for its stability and reliability.

Top Bybit USDC Perpetual Futures by Trading Volume 

Bybit offers several popular USDC perpetual futures contracts, with the highest trading volumes often seen in BTC-PERP, ETH-PERP and SOL-PERP. 

These contracts allow traders to speculate on the price movements of major assets while using USDC as margin, providing stability and flexibility in volatile markets.

How Do USDC Perpetual Futures Contracts Work?

 on Bybit allow traders to use USDC as collateral to speculate on price changes of major crypto assets. A key feature of perpetual futures trading is the 

, a periodic payment exchanged between long and short traders to keep contract prices close to the asset's spot price.

How to Trade USDC Perpetual Futures on Bybit

1. To trade USDC perpetual futures on Bybit, start with depositing USDC into your Unified Trading Account by selecting your preferred deposit method in the 

Bybit offers leverage of up to 125x, allowing you to amplify gains or losses. Adjust leverage according to your 

Margin Requirements for USDC Perpetual Positions

How to Calculate Position Sizing for Perpetual Positions 

Position sizing is essential in perpetual futures trading, because it determines the capital at risk and supports effective risk management.

 to estimate appropriate sizing based on risk tolerance and account balance.

, in the example shown above, a trader opens a 

 of 180 USDC, the trade yields a profit of 500 USDC, resulting in a return on investment (ROI) of 277.77%. Bybit’s 

 helps traders determine the optimal position size, based on leverage and risk.

Other Advanced Tools for USDC Perpetual Trading

Conclusion: Getting Started With USDC Perpetuals Futures

Trading USDC perpetual futures on Bybit offers unique advantages, such as using USDC, one of the leading stablecoins, as collateral. This makes USDC perpetuals a reliable choice for those who are wary of market volatility. Bybit’s platform provides additional features, such as flexible leverage, advanced trading tools and access to in-depth market data, which together enhance trading precision and control.

However, it’s essential to grasp the risks involved. Leveraged positions amplify both gains and losses, so understanding risk management tools — such as setting stop-loss orders — is crucial for preserving capital. New traders can explore 

, a valuable tool for practicing strategies without risking real funds that lets you build confidence and develop effective trading habits before diving into live markets. 

 and explore our flexible perpetual futures contracts.

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The Global Dollar Network, launched by leaders in fintech and digital assets including Anchorage Digital, Bullish, Kraken, Nuvei, Paxos, and Robinhood, aims to accelerate global stablecoin adoption. 

Daily Top Performer — Mask Network (MASK)

The S&P 500 fell 0.28% as investors anticipated the U.S. election and a likely 25-basis-point Fed rate cut, with major tech stocks like Tesla and Amazon leading the decline. Coindesk Indices, an index measuring broader cryptocurrency market performance was down by 1.94%, with Bitcoin and Ether dropping by 2.39% and 3.87%, respectively in the past 24 hours.

Today’s top performer is MASK, which surged 8.0% following Mask Network’s unveiling of a revamped website with enhanced features and tutorials.

Mask Network, founded in 2017, is a protocol that bridges Web 2.0 and web3, enabling users on platforms like Twitter and Facebook to access web3 features, including crypto and NFTs. It supports multiple blockchain networks, such as Ethereum, BNB Chain, Polygon, and Solana, making it chain-agnostic. Mask Network 

 an update to its website, featuring a new layout that highlights product features and a revamped tutorial page.

Check Out the Latest Prices, Charts, and Data of 

, launched by leaders in fintech and digital assets including Anchorage Digital, Bullish, Kraken, Nuvei, Paxos, and Robinhood, aims to accelerate global stablecoin adoption. The network introduces USDG, a new stablecoin issued by Paxos, compliant with Singapore’s Monetary Authority framework. It seeks to address shortcomings in current stablecoins by providing trusted, low-cost options for enterprises while rewarding network participants. The initiative encourages collaboration among custodians, exchanges, and financial institutions to innovate in global money movement. USDG is now available through various partners, with DBS Bank managing its reserves.

Yesterday, Bitcoin spot ETF flows totaled -$579.5 million, with the Grayscale Bitcoin Trust (GBTC) accounting for -$63.7 million and non-GBTC products comprising -$515.8 million.

 opens on November 7th, with a current pre-market price of $0.04. For claiming, users can visit the provided link: 

Beginner

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Global Dollar Network Launched to Boost Stablecoin Adoption with New USDG Stablecoin

Web3 gaming is a multibillion dollar industry with millions of players worldwide. Its games come in a variety of styles. Learn more here.

 has transformed its role from that of a cutting-edge financial investment to become a part of everyday life. While 

 concepts are used for a multitude of practical services, they're also a fantastic source of entertainment. Gaming is currently one of the biggest applications of web3 design. By adding blockchain features to gaming experiences, developers have been able to make games even more exciting and meaningful. Explore this guide to see why web3 gaming is so popular. 

Web3 gaming is a multibillion dollar industry with millions of players across the globe. Its games come in a variety of styles, ranging from first-person shooters to puzzle games. The main commonality among all of these games is the use of blockchain technology, such as in-game cryptos and 

“Web3 gaming” might sound pretty high-tech, but it's actually surprisingly simple. Web3 games are just standard games that incorporate blockchain technology into their designs. 

The majority of web3 games rely on two basic structures: half of each game is a standard video design that uses coding, software and hardware to create a system in which users input instructions and receive a gaming experience. The component that differentiates web3 gaming from other gaming is that of its blockchain technology. While designing their games, web3 developers also connect their systems to a blockchain, setting up multiple 

 that trigger when certain in-game actions occur. This design allows web3 games to include all sorts of blockchain mechanics. The following are a few examples:

Web3 gaming is an incredibly broad industry. Some web3 games are simple mobile apps where you tap a single button, while others are complex worlds that require hours of practice to understand. To get a good understanding of the web3 gaming landscape, it's useful to take a look at some of the most common types of games.

 gaming or DeFi gaming, investment gaming emerged as the first generation of web3 games, essentially a gamified version of standard crypto investment, with features such as 

 focus primarily on making money, but they use a game-based interface to make the process more entertaining.

 or P2E games) gamify standard behaviors. Users might tap a button or take a walk in real life, and then their action mines cryptocurrency that’s directly deposited in the player's wallet. Ever since the earliest 

, this has been one of the most popular forms of web3 gaming.

The modern generation of web3 game development is moving away from repetitive, crypto-focused designs and instead attempting to copy strategies from the traditional gaming industry. Competition-based games involve players battling each other. Though players can earn digital assets, the main goal is simply to compete with each other. Game options like 

 mimic first-person shooter competitions, while styles such as 

 gaming. This style of gaming prioritizes socializing with other gamers and building a community. Options like 

 create complex worlds in which players can create a character to role-play and interact with other characters.

The unique technology behind web3 gaming allows this industry to offer players key features they can't find anywhere else. Depending upon the game you choose, you may be able to enjoy many different fantastic game components.

For many players, the big appeal of web3 gaming is that digital assets have actual value. Using blockchain technology for in-game currency and items allows players to trade their assets both within and outside of the game. This allows the market to assign their assets a value, and players can choose to convert their items into other types of currency if they wish to.

Multiple games in the web3 space operate under the principle of decentralization. Instead of having one company run the entire system, the game is run as a collective of players and developers. Blockchain technology allows players to vote on various decisions, such as what mechanics to add to the game or what the price of an object should be. 

The majority of web3 games emphasize player ownership of in-game items. Users have direct control over the things they earn and create within the game. Not only can players buy and sell their possessions as they wish, but they can choose how to use or upgrade their digital assets.

Virtual Reality and Artificial Intelligence

Web 2.0 gaming is at the forefront of gaming design. Though virtual reality, augmented reality and artificial intelligence technology aren’t a requirement for web3 gaming, they’re far more common within the gaming sector. Many games hope to use these technologies to offer the most immersive and detailed experiences possible.

All the unique features of web3 gaming make it a particularly useful type of gaming universe. Compared to traditional games, web3 games have many special advantages.

Blockchain technology is a highly useful tool for game developers. For example, it makes it a lot simpler to manage things like player rewards and land generation, giving developers more options when designing their games. Web3 gaming systems also have the ability to run online, seamlessly interacting with a variety of 

 products and blockchain tools. Ultimately, this means that the web3 gaming community has some truly unique games that couldn't flourish with standard technology. 

Web3 ecosystems streamline the process of making a profit from games. Since it's so easy to transfer and trade assets, players can more easily convert their gaming skills into cash. Not every player may make millions, but web3 games come with many opportunities to earn money.

Since web3 games often run on principles of decentralization and transparency, they're often an ideal way to safeguard players' rights. Players usually retain control of their own data and don't have to worry about their hard-earned assets being taken away from them. Furthermore, web3 games typically value and respect the input of their communities. Blockchain technology makes it easy to ensure that community members are involved in every step of game production.

Web3 games are known for their capability to offer an immersive and seamless gaming experience. In-game transactions and crafting are directly linked to real blockchain assets, so gamers can feel particularly connected to their games. Instead of having all gaming experiences take place within a specific program, gaming experiences have real-world ramifications that can be explored through multiple blockchains and online communities. 

Though web3 gaming has many benefits, it's not always a perfect ecosystem. Here are some of the issues that web3 gamers may encounter. 

Web3 games operate with some nontraditional technology, so they can be quite confusing. Instead of simply downloading an app or launching a website, users might need to do things like 

. This adds an extra layer of complexity that may make it hard for web3 games to onboard new users.

While web3 games have the potential to offer an immersive experience, it's not a requirement. The focus on investing and profitability has led to some criticism from the gaming community. There are quite a few projects designed simply to make money, and these often struggle to engage players. Many gamers complain about web3 games with overly repetitive mechanics, cheap artwork or bland storylines. It can take some time for gamers to sort through the vast amount of web3 projects and find games that are fun to play for hours at a time. 

Both web3 gaming and traditional gaming hope to appeal to the same user base. Both styles of gaming endeavor to entertain people by appealing to their competitive and creative instincts. There’s quite a bit of overlap in the styles of games being released, and the same developers and gaming studios are working in both traditional and DeFi spaces.

However, unlike traditional games, web3 games can take advantage of newer technology. This style of gaming offers many unique aspects not found in traditional games:

Web3 gaming is still a fairly new industry, with many changes ahead. Currently, the big trend in web3 gaming is 

 models. However, online discussions suggest that users may be shifting away from simpler games. There's been a growing demand for more complex games that mimic the depth and creativity of AAA games. 

 with endless possibilities for fighting, crafting, exploring and more. In the future, web3 games may begin to prioritize entertainment and engagement over investment opportunities. You can expect to see fewer games with DeFi tie-ins, and more games that try to mimic the appeal of games like 

Web3 gaming is poised to become one of the biggest blockchain industries. 

 by 2030. With so much potential profit, web3 gaming is certainly worth exploring. Both amateur traders and professionals have the chance to earn money through different games in web3 spaces.

However, keep in mind that the days of earning thousands of dollars just by tinkering around with a new GameFi product are most likely over. With so many products on the market now, it's much harder for players to earn money by tapping a few buttons. Instead, the big investment opportunities are more likely to come from supporting the products themselves. While you might be able to make a little money by playing a game, purchasing a new game's crypto and watching it grow is likely to be a more efficient and profitable use of your time.

Web3 gaming's capacity to combine entertaining game mechanics with profitable blockchain technology has helped this industry soar. Not only are blockchain games currently worth billions of dollars, but they're also poised to capture more players than traditional online games. Investors who want to be on the cutting edge of web3 trends would certainly do well to pay close attention to web3 gaming.

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Web3 Gaming: Elevating Play to Next-Level Realities

Bybit Learn

Blockchain

Crypto Investment Guide

Anyone who has even a passing interest in cryptocurrency has probably heard the word ‘blockchain’ bandied about. But how does it work? Read all about it here.

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Anyone who has even a passing interest in 

 has probably heard the word “blockchain” bandied about. No doubt, many of those who know the term also know that blockchain technology is behind Bitcoin and many other cryptocurrencies. But what else do you know about blockchain? How does it work? What uses does it have? And what about blockchain’s prospects in the future? All is revealed in this article.

Blockchain technology can be defined as a system of decentralized digital public ledgers that store transactions. This transactional information is stored in chains of blocks — hence the name “blockchain.” These computers on the network share this information through cryptography. 

Blockchain is used for a variety of functions. In addition to cryptocurrency, it’s also used for things such as healthcare, 

, supply chains, and electronics. Let’s take a look at how blockchain works.

All information on a blockchain is stored in digital files called blocks. These blocks aren’t owned by any central entity; hence, they are decentralized. Several elements make up the workings of the technology behind blockchain.

Nakamoto proposed a “purely peer-to-peer version of electronic cash that would allow online payments to be sent directly from one party to another without going through a financial institution.” On January 3, 2009, the genesis block on the Bitcoin blockchain was created. This was the first step in revolutionizing traditional, centralized bank-focused financial systems as we know them.

Nodes are computers that connect to each other to share information through the public ledger that is a blockchain network. 

Each node stores a copy of the blockchain and verifies every transaction made on it. Information tampering is a rare occurrence, as the information and records for every node on the blockchain would need to be altered.

These nodes play an important part in the Bitcoin mining process because, in the absence of any central entity, it is the job of these nodes to align in agreement to confirm the validity of a transaction on the network. Only when this verification happens can a block be added to the blockchain, and miners get their rewards (on the Bitcoin blockchain, this is currently 6.25 BTC after the most recent Bitcoin halving.) These nodes “agree” to validate transactions through consensus mechanisms, generally 

 (PoS). PoW consensus is used by Bitcoin and many other cryptocurrencies, such as Litecoin, which is a “fork” or spin-off of Bitcoin.

While PoW and PoS are the main two consensus mechanisms in crypto, others exist as well. 

: This is different from POS in that delegates are effectively elected to mine new blocks and ensure consensus rules are maintained. If they fail to do their job properly, they can be voted out, the same way politicians can be. Cryptocurrencies such as EOS use this consensus mechanism.

The process of cryptographic hashing is fundamental to ensuring the security of a blockchain. It involves one-way encryption of data to a unique piece of text and is a process that cannot be reversed. On the Bitcoin blockchain, the result of the hashing process is a 64-character piece of text called a hash.

As each unique piece of digital text cannot be reversed to decipher the original data, blockchain is considered to be very safe from hackers. On cryptocurrency blockchains, hackers can launch something called a 51% attack, where they attempt to gain more than half the hash rate (computer power) of a blockchain’s network. If they are successful at doing this, they can block transactions — or even reverse previously confirmed transactions, meaning they can “double-spend” coins (spend a coin twice). 

Although the Bitcoin network has never been subjected to a successful 

, other cryptocurrencies have fallen prey. One such example occurred in May 2018, when the Bitcoin Gold network succumbed to a 51% attack, resulting in the loss of $18 million worth of its currency. Thankfully, such events are rare, due to the sheer amount of hash power needed to conduct an attack. While the hacking of a blockchain isn’t impossible, it’s very unlikely.

We all know cryptocurrencies use blockchain, but what else in the world benefits from the wonders of blockchain technology?

As we’ve already seen, blockchain forms the fundamental underpinning of what defines a cryptocurrency: a decentralized asset, free from the shackles of a central entity such as a bank or governmental institution. Bitcoin may be the most popular cryptocurrency, but really it’s just the tip of the iceberg. A multitude of coins — from 

 tokens — are in existence today, thanks to the technology invented by Satoshi Nakamoto.

Sensitive medical data from patients’ electronic health records (EHRs) has been the target of 

, used to steal or impersonate identities, or sold to third parties.

Through advanced cryptography, blockchain can put an end to this. Records can be added to a trusted and secure blockchain, becoming longer over time. When new records are added, a consensus is needed — thus making the chain very difficult to hack into or break.

 is one company that’s using blockchain to give patients complete control of their medical data. A decentralized mobile platform, allows patients to manage their health information and sell it to third parties, if they wish, in return for tokens.

There are also shortcomings to EHRs, in terms of doctors accessing patient information that comes from another institution. This is because in some countries, different manufacturers often provide different EHR software for various institutions, and there isn’t interoperability between them. Although a single, comprehensive system would be beneficial to doctors and patients, this would reduce companies’ ability to charge exorbitant fees. 

Attempts have been made to bring together EHRs in many countries under one system, but this has often proved to be a doomed process. In the U.K., an attempt to create a linked patient data system for the whole of the 

 was abandoned in 2011, costing nearly £10 billion.

 in which patients’ information would be transmitted safely and securely to different financial institutions, becoming accessible as soon as new data is added to it. 

It must be noted that blockchain won’t replace the EHR itself: it runs seven transactions a second, compared to the EHR’s capacity of up to 12,000. It will, however, be able to act as an extra layer for additional functions, and prove that records are complete and unmodified, recording patient consent when it comes to data sharing.

A smart contract works the same way any contact would, but through a blockchain, which takes away the need for any third-party intermediaries. Only when preset conditions (which have been set in the computer code of the blockchain) are met does a transaction within the contract take place. Smart contracts were first established on the Ethereum blockchain in 2015. Today, they have many uses, some of them listed below.

Smart contracts can make insurance claims a quicker and cheaper process by helping to clearly define when objective criteria have been met. This may not be the case when these decisions are left up to lawyers as this may make the process more subjective, and in turn, lead to a longer and more expensive claim process. 

Supply chains can become easier to manage through the use of smart contracts. As with insurance claims, smart contracts can take away any subjectivity, making it easy to verify if set targets are being met within the blockchain. 

Within healthcare, smart contracts have the potential to revolutionize the complicated 

 in the U.S. by cutting out middlemen, thus considerably cutting costs for consumers.

Smart contracts can make buying and selling a house a lot less stressful. By cutting out the need for a middleman, such as a housing agent, buyers can handle transactions with a potential seller by themselves. Once the conditions of selling a house are met, the purchasing of a property can be completed solely through the use of a smart contract. 

Believe it or not, the wonders of blockchain technology have even infiltrated the video game industry. In 2017, 

 called CryptoKitties. The premise of the game is that you breed, buy and sell virtual cats. It may not be everyone’s cup of tea, but what made this game so eye-opening was that it operated on the Ethereum blockchain. 

Since then, blockchain technology has been increasingly adopted in the video game industry, albeit this is still in its infancy. Collectible card games have led the way in adopting the technology. One such example is God’s Unchained, in which gamers can trade collectible cards online by using an Ethereum wallet such as 

The exciting reality is that the potential of blockchain technology has just begun to be tapped. It really is only the beginning of this journey. Let’s look at some ways in which blockchain technology may develop and affect our lives in the near future.

Blockchain technology can help to alleviate poverty and corruption by giving 

Besides, blockchain technology also provides tremendous growth potential for small businesses in developing countries, with the decentralized nature of cryptocurrency allowing many of them to truly operate on a global scale for the first time. 

This is something that is already starting to be implemented. However, it’s likely that in the future, the move toward maintaining online identities through blockchain technology will excel. By storing personal database information on a public, distributed ledger, the risk of identity fraud will be greatly reduced. 

As already noted, blockchain holds massive potential for changing the way healthcare records are met. This capability is likely to extend to government, employment, tax, and even voter records. 

As we’ve mentioned, at the heart of blockchain technology is its decentralized, transparent nature. As the technology becomes more widely adopted, this is likely to be reflected in the way companies operate. It will become harder and harder to conceal information, which can only be good news for consumers and the public in general. 

The internet has changed the way we listen to music — and, from the artist’s point of view, not necessarily for the better. Since Napster burst onto the scene in the late ’90s, music piracy has been rife.

Even with the advent of legitimate streaming services such as Spotify, income for artists has paled in significance compared to the days when fans bought CDs (and, going further back, LP records and cassette tapes) in droves. But could blockchain shift the pendulum’s swing?

The transparent nature of blockchain could reveal, for all to see, the royalties owed to artists. Streaming services would no longer be able to shortchange these artists. In addition, blockchain technology could help clarify any intellectual property rights issues artists may have by unambiguously indicating who owns the rights to specific songs. 

Simply put, blockchain is a revolution that is only just getting started. It is changing the traditional ways we’re living our lives and has already revolutionized the way we think about money as a digital asset. In the years to come, it will revolutionize the way we think and act in many other areas of our lives. 

Not only does blockchain anonymity offer an extra level of protection for information, but it also offers convenience for accessing information as never before. Blockchain gives access to information, freely available to everyone.

What Is Blockchain? A Beginner's Guide

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