Privacy PolicyEffective Date: Version: 1.0<h2>1. Introduction</h2> 1.1 Purpose of the PolicyThis Privacy Policy ("Policy") governs the collection, processing, use, storage, and transfer of Personal Data by CIFDAQ BLOCKCHAIN ECOSYSTEM GLOBAL INC.(hereinafter referred to as the “Company,” “We,” “Us,” or “Our”), a corporation duly organized and operating under the laws of the Republic of Panama. The Policy applies to individuals (“Users” or “You”) who access or use Our website, mobile application, or any other online services provided by the Company (collectively, the “Platforms”). 1.2 Scope and Binding NatureBy accessing, browsing, registering for an account, or using the Platforms, You confirm Your agreement to be bound by this Policy, which constitutes a legal agreement between You and the Company. This Policy is an integral part of the Terms of Use governing Your relationship with Us. If You do not agree with the provisions of this Policy, You must cease using the Platforms immediately. Your continued use of the Platforms after being notified of any amendments or updates to the Policy shall be deemed as Your acceptance of such changes. 1.3 Updates and ModificationsWe reserve the right to update, amend, or modify this Policy at any time. Any material changes to this Policy will be communicated to You via the Platforms or email, and such changes will become effective immediately upon being posted on the Platforms. It is Your responsibility to review this Policy periodically to ensure You remain informed of any updates.<h2>2. &nbsp;Definitions</h2> For the purpose of this Policy, the following terms shall have the meanings ascribed to them:2.1 Personal Data“Personal Data” means any information relating to an identified or identifiable natural person. An identifiable natural person is one who can be identified, directly or indirectly, by reference to an identifier such as a name, identification number, location data, online identifier, or one or more factors specific to the physical, physiological, genetic, mental, economic, cultural, or social identity of that person. 2.2 Sensitive Personal Data“Sensitive Personal Data” refers to a subset of Personal Data, which includes data concerning racial or ethnic origin, political opinions, religious or philosophical beliefs, trade union membership, genetic data, biometric data for the purpose of uniquely identifying a natural person, data concerning health or data concerning a natural person’s sex life or sexual orientation. This type of data is subject to more stringent protection under applicable data protection laws.2.3 Data Controller The “Data Controller” is the entity that determines the purposes and means of processing Personal Data. The Company acts as the Data Controller concerning the Personal Data collected from Users under this Policy. 2.4 Processing“Processing” means any operation or set of operations which is performed on Personal Data or on sets of Personal Data, whether by automated means or not, such as collection, recording, organization, structuring, storage, adaptation or alteration, retrieval, consultation, use, disclosure by transmission, dissemination, or otherwise making available, alignment, combination, restriction, erasure, or destruction. 2.5 Data SubjectThe “Data Subject” is any natural person whose Personal Data is processed by the Company.<h2>3. &nbsp;Legal Basis for Processing Personal Data</h2> We will only process Your Personal Data where We have a lawful basis to do so. The legal bases upon which We rely for the collection, use, and processing of Your Personal Data include the following: 3.1 Contractual NecessityWe process Your Personal Data because it is necessary to perform Our contractual obligations to You, including to provide You with the services You have requested (such as access to Your account or facilitating a financial transaction) or to take steps at Your request prior to entering into a contract (such as verifying Your identity). 3.2 Legal ObligationWe process Your Personal Data to comply with legal obligations to which We are subject, including obligations under applicable data protection laws, tax laws, AML/CFT laws, and other regulatory requirements. For example, We may be legally required to retain certain data for tax reporting, regulatory compliance, or to respond to lawful requests by governmental authorities or law enforcement agencies. 3.3 Legitimate InterestsWe may process Your Personal Data when it is necessary for the legitimate interests of the Company, provided that such processing does not unduly prejudice Your rights or freedoms. Examples of legitimate interests include using Your Personal Data to improve the functionality of Our Platforms, secure Our systems, prevent fraud, or analyze user behavior to enhance Your experience. 3.4 ConsentWhere We rely on Your consent to process Your Personal Data, You will be asked to explicitly agree to the processing before We collect or use Your data. You have the right to withdraw Your consent at any time, without affecting the lawfulness of processing based on consent before its withdrawal.<h2></h2><h2>4. &nbsp; Categories of Personal Data Collected</h2> The following categories of Personal Data may be collected, processed, and stored by the Company: 4.1 Personal Information Provided by YouWe may collect Personal Data that You voluntarily provide to Us, including but not limited to:● &nbsp; &nbsp; &nbsp; &nbsp;Identification Data: Full name, date of birth, gender, nationality, government-issued identification (e.g., passport, driver’s license, national ID).● &nbsp; &nbsp; &nbsp; &nbsp;Contact Data: Email address, telephone number, residential address.● &nbsp; &nbsp; &nbsp; &nbsp;Financial Data: Bank account information, credit/debit card numbers, cryptocurrency wallet addresses, tax identification numbers, and transaction history.● &nbsp; &nbsp; &nbsp; &nbsp;KYC/AML Information: Copies of identification documents, income verification, and other information required to comply with regulatory requirements.● &nbsp; &nbsp; &nbsp; &nbsp;Communications Data: Any messages, queries, or feedback You provide to Us via email, customer support, or through the Platforms. 4.2 Automatically Collected DataCertain Personal Data may be automatically collected when You use the Platforms, including:● &nbsp; &nbsp; &nbsp; &nbsp;Device Data: Internet Protocol (IP) address, device identifiers (IMEI, MAC address), operating system, browser type and version, and mobile network information.● &nbsp; &nbsp; &nbsp; &nbsp;Usage Data: Details of Your interactions with the Platforms, including page views, clicks, login times, transaction records, and other user behaviors.● &nbsp; &nbsp; &nbsp; &nbsp;Location Data: Geolocation data, provided that You have enabled location services on Your device. 4.3 Data Collected from Third PartiesWe may obtain information about You from third parties, such as credit reference agencies, identity verification providers, payment processors, and other service providers. This information may be combined with the data You provide directly to Us to enhance the accuracy of Our records.<h2></h2><h2>5. &nbsp;Purpose of Processing Personal Data</h2> The Personal Data We collect will be processed for the following purposes: 5.1 Provision of ServicesWe &nbsp; &nbsp; process &nbsp; &nbsp; &nbsp; Your &nbsp;Personal &nbsp; &nbsp; Data &nbsp;to &nbsp; &nbsp; &nbsp;create &nbsp; &nbsp; &nbsp; &nbsp; and &nbsp; manage Your &nbsp;account, &nbsp; &nbsp; facilitate &nbsp; &nbsp; the &nbsp; &nbsp;execution &nbsp; of transactions, and provide related services, including customer support, account maintenance, and notifications of service updates. 5.2 Regulatory ComplianceWe process Personal Data to comply with our obligations under Panamanian law, including AML/CFT regulations, tax laws, and other legal requirements. This includes verifying Your identity, conducting background checks, and reporting suspicious transactions to regulatory authorities as required by law. 5.3 Fraud Prevention and SecurityWe process Personal Data to detect, investigate, and prevent fraud, money laundering, unauthorized access, and other unlawful activities. This involves monitoring transactions, reviewing user behavior, and implementing security protocols to protect Our Platforms. 5.4 Improvement of Services and User ExperienceWe process Personal Data to analyze how Users interact with the Platforms, in order to improve functionality, optimize performance, and develop new features. This includes the use of aggregated data for statistical analysis, research, and business planning. 5.5 Marketing and Promotional CommunicationsWhere We have obtained Your consent, We may process Your Personal Data to send You promotional materials, offers, newsletters, and other marketing communications. You may opt out of receiving such communications at any time by following the unsubscribe instructions provided in the communication.<h2></h2><h2>6. &nbsp;Sharing and Disclosure of Personal Data</h2> We may disclose Your Personal Data to the following categories of recipients under the conditions outlined below: 6.1 Service Providers and ContractorsWe may share Your Personal Data with third-party service providers who assist Us in operating the Platforms, processing transactions, and providing related services. These service providers are contractually obligated to protect Your data and are only authorized to use Your Personal Data as necessary to provide their services. 6.2 Regulatory Authorities and Law EnforcementWe may disclose Your Personal Data to governmental authorities, regulatory bodies, or law enforcement agencies if We are required to do so by applicable laws or regulations, or in response to a subpoena, court order, or other legal processes. 6.3 Business TransfersIn the event of a merger, acquisition, restructuring, or sale of assets, Your Personal Data may be transferred to the new entity as part of the transaction. Any such transfer will be subject to the same privacy protections that apply under this Policy. 6.4 Affiliated EntitiesWe may share Your Personal Data with Our affiliates or subsidiaries for purposes consistent with this Policy, such as for internal business processes or to provide You with additional services. 6.5 With Your ConsentWe may share Your Personal Data with other third parties when You have explicitly consented to such disclosure.<h2></h2><h2>7. &nbsp;Cross-Border Data Transfers</h2> 7.1 International Data TransfersAs a global entity, Your Personal Data may be transferred to and processed in jurisdictions outside of Panama, including countries that may not offer the same level of data protection as Panama or the European Union. However, We will ensure that any such transfers comply with applicable data protection laws and provide adequate safeguards to protect Your Personal Data. 7.2 Legal Mechanisms for Data TransfersIn cases where Personal Data is transferred outside of the European Union or other jurisdictions with stringent data protection laws, We will use legal mechanisms such as standard contractual clauses, binding corporate rules, or reliance on adequacy decisions to ensure that Your Personal Data is protected to the same standard as required by applicable laws.<h2></h2><h2>8. &nbsp;Data Retention</h2> 8.1 Retention PeriodWe will retain Your Personal Data for as long as necessary to fulfill the purposes for which it was collected, including maintaining Your account, facilitating transactions, complying with legal obligations, resolving disputes, and enforcing agreements. 8.2 Extended Retention for Legal or Regulatory ObligationsIn some cases, We may be required to retain certain Personal Data for an extended period if it is necessary for regulatory compliance, legal claims, audits, or other legitimate purposes, such as resolving potential disputes or enforcing Our policies.<h2></h2><h2>9. &nbsp;Data Security</h2> 9.1 Security MeasuresWe take appropriate technical and organizational measures to safeguard Your Personal Data from unauthorized access, disclosure, alteration, and destruction. These measures include, but are not limited to, the use of encryption technologies, secure access controls, firewalls, and regular security assessments. 9.2 User Responsibility for Account SecurityWhile We employ advanced security protocols to protect Your Personal Data, You are responsible for ensuring the security of Your account credentials. You should avoid sharing Your password and ensure that two-factor authentication (2FA) is enabled where available. 9.3 Breach NotificationIn the event of a data breach that may compromise Your Personal Data, We will notify You and any applicable regulatory authority of the breach in accordance with Our legal obligations under applicable data protection laws.<h2></h2><h2>10. &nbsp;Your Rights as a Data Subject</h2> Under applicable data protection laws, You have certain rights regarding the Personal Data We process about You. These rights include: 10.1 Right of AccessYou have the right to request a copy of the Personal Data We hold about You and to obtain information about how that data is being processed. 10.2 Right to RectificationYou have the right to request the correction of any inaccurate or incomplete Personal Data that We hold about You. 10.3 Right to Erasure ("Right to Be Forgotten")You may request the deletion of Your Personal Data under certain circumstances, such as when the data is no longer necessary for the purposes for which it was collected or when You have withdrawn consent to its processing. 10.4 Right to Restriction of ProcessingYou may request that We restrict the processing of Your Personal Data in certain situations, such as when You dispute the accuracy of the data or object to its processing. 10.5 Right to Data PortabilityYou have the right to receive Your Personal Data in a structured, commonly used, and machine-readable format, and to transmit that data to another controller where technically feasible. 10.6 Right to ObjectYou may object to the processing of Your Personal Data for direct marketing purposes or on other legitimate grounds relating to Your particular situation. 10.7 Right to Withdraw ConsentIf We rely on Your consent for processing Personal Data, You may withdraw this consent at any time.However, the withdrawal of consent does not affect the lawfulness of processing based on consent before its withdrawal.<h2></h2><h2>11. &nbsp; &nbsp; &nbsp;Cookies and Tracking Technologies</h2> 11.1 Use of CookiesWe use cookies and similar tracking technologies to enhance Your user experience, analyze user behavior, and improve the performance of Our Platforms. Cookies are small data files that are stored on Your device when You visit the Platforms. 11.2 Types of Cookies UsedWe use both session cookies (which expire when You close Your browser) and persistent cookies (which remain on Your device until deleted) to provide a more personalized experience. These cookies help Us understand how You interact with the Platforms, remember Your preferences, and ensure that Our Services function properly. 11.3 Third-Party CookiesOur Platforms may also use cookies from third-party service providers, such as analytics providers and advertising networks. These third parties may use cookies to collect information about Your interactions with the Platforms, as well as other websites. 11.4 Managing CookiesYou can control or block cookies through Your browser settings. However, please note that disabling cookies may affect the functionality of certain features on the Platforms.<h2></h2><h2>12. Children’s Privacy</h2> 12.1 No Collection of Data from MinorsOur Platforms and Services are not intended for individuals under the age of 18. We do not knowingly collect Personal Data from individuals under the age of 18 without the consent of a parent or guardian. If We become aware that We have inadvertently collected Personal Data from a minor without such consent, We will take steps to delete the information promptly.<h2>13. Changes to this Policy</h2> 13.1 Right to Modify PolicyWe reserve the right to modify or update this Policy at any time to reflect changes in Our business practices, legal requirements, or regulatory obligations. Any significant changes to this Policy will be communicated to You via email or through the Platforms. 13.2 Continued Use of PlatformsYour continued use of the Platforms following any changes to this Policy constitutes Your acceptance of the updated Policy.<h2>14. &nbsp;Grievances and Contact Information</h2> 14.1 Contact Information If You have any questions, concerns, or complaints regarding this Policy or how Your Personal Data is handled, please contact Us at: dpo@cifdaq.com 14.2 Grievance ProceduresIf You are not satisfied with Our response to any data protection-related concerns, You have the right to lodge a complaint with the relevant supervisory authority in Your jurisdiction.

Privacy policy

The collaboration between blockchain and artificial intelligence is transforming industries, offering improved security, better data analysis, streamlined efficiency, and personalized user experiences.While promising, the combination of blockchain and AI has many challenges, including biases in AI algorithms, integration complexities, and regulatory concerns. Addressing these risks requires diverse datasets, careful planning, and a proactive approach to evolving regulations.<h2>Introduction</h2>In the fast-paced world of technology, two buzzwords that often steal the spotlight are blockchain and artificial intelligence (AI). While these terms might sound complex to newcomers, their collaboration is reshaping industries and promising a future of innovation. In this article, we'll discuss the relationship between blockchain and AI, exploring use cases, potential benefits, and some of the possible risks.<h2>Blockchain: Distributed Database</h2>Imagine a notebook that everyone shares, and once something is written in it, it can never be erased or altered. That's the essence of blockchain. It's like a transparent and secure digital ledger shared among a network of computers. It’s a database shared by all users without the need for a central authority.<h2>AI: The Brainpower Behind Machines</h2>In short, artificial intelligence is the ability of a program to learn. But the term may also refer to the science and engineering of intelligent computer programs. Artificial intelligence mimics human intelligence using smart algorithms. It's the brainpower behind machines, enabling them to learn, analyze data, and make decisions. You can think of AI as a virtual assistant, constantly learning and improving to help users and perform all sorts of tasks. ChatGPT is a popular example of artificial intelligence.<h2>Blockchain and AI Use Cases</h2>The convergence of blockchain and AI is reshaping industries and revolutionizing traditional processes. From enhancing security and transparency to streamlining data analysis and automating smart contracts, the use cases for blockchain and AI are diverse and impactful. In this section, we delve into some scenarios where the collaboration between blockchain and AI can create exciting benefits.<h2>Enhanced security and fraud prevention</h2>Blockchains are designed to be highly resistant to data tampering and fraudulent activity. The infrastructure of distributed networks combined with cryptographic techniques can bring an extra layer of security to AI systems. For example, an AI model could be programmed to access certain systems or a specific set of data only if certain conditions are met. Such conditions could then be enforced by a distributed network of users through the use of smart contracts.In practice, blockchain technology can be used to secure all sorts of databases (e.g., financial, healthcare, etc.). In this context, AI can be used to improve efficiency when analyzing and managing blockchain data.<h2>Decentralized data storage</h2>Blockchain-based decentralized storage can help ensure information accuracy and data integrity. This can be particularly useful for AI systems as they usually rely on extensive sets of data. The learning models of AI can also be combined with cryptographic techniques to provide tamper-proof resistance and improve data privacy.<h2>Supply chain management</h2>Managing the journey of products from creation to delivery involves a complex web of processes. Blockchain brings transparency and traceability to the supply chain. AI complements this by analyzing the vast data generated, reporting potential inventory issues, identifying patterns, and optimizing the entire process. The result? Efficient supply chain management with minimized errors and increased productivity.<h2>Smart contracts and automation</h2>Smart contracts are self-executing contracts with predefined rules. AI adds a layer of intelligence to these contracts. For instance, AI algorithms embedded in smart contracts can automate tasks based on real-time data analysis. This union brings automation to a new level, reducing the need for intermediaries and increasing efficiency.<h2>Blockchain and AI: Potential Benefits</h2><h4>Improved security</h4>Blockchain's tamper-resistant nature, combined with AI's ability to analyze data and detect anomalies, creates a robust security framework. This reduces the risk of data breaches and unauthorized access, instilling trust in digital transactions.<h4>Enhanced efficiency</h4>The marriage of blockchain's transparent ledger and AI's data analysis capabilities leads to streamlined processes. Businesses can experience increased efficiency, reduced operational costs, and faster decision-making.<h4>Personalized experiences</h4>AI thrives on data, and blockchain ensures the security and authenticity of that data. This combination allows businesses to offer personalized experiences to users, from tailored product recommendations to customized services.<h2>Blockchain and AI: Potential Risks</h2><h4>Bias in AI algorithms</h4>While AI is a powerful tool, its algorithms are only as unbiased as the data they are trained on. If the training data carries biases, it can be reflected in AI-driven decisions. It’s important to recognize and mitigate these biases to avoid issues. One way to address the bias issue in AI is to use diverse and representative datasets aligned with robust testing procedures and constant monitoring.<h4>Integration challenges</h4>Integrating two sophisticated technologies comes with its share of challenges. Organizations may face hurdles in adapting their existing systems to accommodate the collaboration between blockchain and AI. Overcoming these integration challenges requires careful planning and technical expertise.<h4>Regulatory concerns</h4>As with any transformative technology, there are concerns about regulations and compliance. The evolving nature of blockchain and AI may outpace regulatory frameworks, posing potential risks in terms of data privacy and legal compliance.<h2>Closing Thoughts</h2>The collaboration between blockchain and AI is still in its early stages, but the possibilities are vast. We discussed a few potential scenarios where these technologies can provide improved security, streamlined efficiency, and personalized user experiences. Still, it's important to be aware of potential challenges, like biases in AI algorithms and the complexities of integration.As blockchain and AI technologies continue to evolve, we can anticipate groundbreaking developments across industries. From revolutionizing financial transactions to creating smarter, more efficient supply chains, the future will likely bring exciting innovations.<h3>Further Reading</h3>What Are Smart Contracts and How Do They Work?<a href="https://cifdaq.com/help-center/a-beginners-guide-to-99" target="_blank">A Beginner's Guide to Decentralized Finance (DeFi)</a>What Is the Ethereum Cancun Upgrade?Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of CIFDAQ Academy. Please read our full disclaimer here for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and CIFDAQ Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

The Relationship Between Blockchain and AI

Bitcoin is a cryptocurrency that operates on a decentralized database called blockchain.The transactions on the Bitcoin network are recorded on a public ledger and verified by a network of nodes located worldwide.Bitcoin is transparent and permissionless, making it a popular alternative to the traditional financial system.<h2>What Is a Bitcoin?</h2>Bitcoin is a digital form of cash. But unlike the government-issued fiat currencies you're used to, no central bank controls it. Instead, the financial system in Bitcoin is run by thousands of computers distributed around the world. Anyone can participate in the ecosystem by downloading Bitcoin's open-source software.Bitcoin was the first cryptocurrency, announced in 2008 (and launched in 2009). It allows users to send and receive digital money called bitcoins (with a lowercase b, or BTC). What makes it highly appealing is its inherent resistance to censorship, the impossibility of double-spending funds, and the ability to conduct transactions anytime and anywhere.<h2>What Makes Bitcoin Unique?</h2>Here are a few of the key features that make Bitcoin unique:<h4>1. Decentralization</h4>Bitcoin operates on a decentralized public blockchain, meaning a central authority doesn't control it. Instead, transactions are verified by the network of computers, known as nodes. In addition, anyone can join the network and help secure it.<h4>2. Permissionless</h4>Bitcoin's permissionless nature means that anyone with an internet connection can participate in the Bitcoin network without authorization or permission from a central authority.Bitcoin allows users to send and receive payments with anyone on the network, regardless of location or identity. This has made bitcoins particularly popular in regions where access to traditional financial systems is limited or non-existent.<h4>3. Limited supply</h4>Bitcoin has a limited supply of 21 million coins hard-coded into the protocol. This means there will never be more than 21 million bitcoins in circulation, which helps prevent inflation.<h4>4. Transparency</h4>All bitcoin transactions are recorded on a public ledger that is visible to all users. This means that anyone can see the transactions that have taken place, including the amount of bitcoin involved and the addresses of the sender and receiver.In traditional financial systems, transactions are recorded by banks and other financial institutions, and this information is not generally available to the public. Instead, people rely on these institutions to keep accurate records.<h4>5. Divisibility</h4>Bitcoin can be divided into smaller units called satoshis, which are one hundred millionth of a bitcoin. This means that even if the price of a bitcoin becomes very high, people can still use and transact with very small amounts of the currency. This makes bitcoins more accessible to people with limited financial resources and allows for more granular transactions.<h2>How Does Bitcoin Work?</h2>When Alice makes a transaction with Bob, she's not sending money in the way you'd expect. It's not like the digital equivalent of handing him a dollar bill. It's more like she's writing on a piece of paper (that everyone can see) that she's giving Bob a dollar. When Bob goes to send the same funds to Carol, she can see that Bob has them by looking at the sheet of paper.btc transaction examplesThe sheet is a database called a blockchain. All network participants have an identical copy of it stored on their devices. The participants connect with each other to synchronize new information.To maintain the security and integrity of the blockchain, Bitcoin uses a consensus mechanism known as Proof of Work (PoW). When a user makes a payment, they broadcast it to the network, where it is verified by other nodes known as "miners". These miners compete to solve a complex mathematical puzzle and must devote computing power to do so. The first miner to solve the puzzle gets to add a new block of transactions to the blockchain.As an incentive, there is a reward available for whoever proposes a valid block. The reward, often referred to as the block reward, is made up of two components: transaction fees from the transactions within the block and the block subsidy. The block fee is the only source of "fresh" bitcoins. With each block mined, it adds a certain amount of coins to the total supply.Bitcoin's PoW consensus mechanism is designed to make it expensive to create a block, but cheap to verify that it's valid. Suppose someone tries to cheat with an invalid block. In that case, the network immediately rejects it and the miner is unable to recoup the cost of mining.<h4>What Is Bitcoin Used For?</h4>Bitcoin is primarily used as a digital currency and store of value. It can be used to make purchases online or in person, just like traditional currencies. Anyone with an internet connection can send and receive it, and its digital presence means that it can be transferred globally.Bitcoin is sometimes used for more private transactions. The transactions are public, and the addresses (public keys) are pseudonymous, though not completely anonymous. In other words, while the transactions are visible on the blockchain, the users behind them are not easily identifiable.Some people also buy bitcoins as a long-term investment, expecting their value to increase over time. Like gold or other commodities, bitcoins' limited supply and decentralized nature have made it a viable option for investors looking to diversify their portfolios.<h4>A History of Bitcoin</h4>Bitcoin was first introduced in 2008 when Satoshi Nakamoto published a white paper entitled "Bitcoin: A Peer-to-Peer Electronic Cash System". This white paper introduced a new digital currency that would operate on a decentralized system without relying on governments or the banking system.In January 2009, the Bitcoin protocol was released, and the first bitcoin transaction took place between Satoshi Nakamoto and a programmer named Hal Finney. The transaction involved sending ten bitcoins from Nakamoto to Finney.After the first transaction, more people began to discover Bitcoin and join the network. The digital currency gained popularity among a small community of tech enthusiasts by demonstrating that Bitcoin could function without a central authority or intermediary.Bitcoin Pizza is another important milestone in the history of Bitcoin, as it marked the first time bitcoins were used as a medium of derivative platform for a real-world transaction. On May 22, 2010, a programmer named Laszlo Hanyecz made history by using 10,000 bitcoins to buy two pizzas. The transaction became known as "Bitcoin Pizza Day" and is now commemorated every year on May 22.<h2>Who created Bitcoin?</h2>Satoshi Nakamoto's identity remains a mystery. Satoshi could be a person or a group of developers anywhere in the world. The name is of Japanese origin, but Satoshi's mastery of English has led many to believe that he or she is from an English-speaking country.<h2>Did Satoshi invent blockchain technology?</h2>Bitcoin combines a number of existing technologies that have been around for a long time, and this includes blockchain technology. The use of such immutable data structures can be traced back to the early 1990s when Stuart Haber and W. Scott Stornetta proposed a system for time-stamping documents. Much like today's blockchains, it relied on cryptographic techniques to secure data and prevent it from being tampered with.<h2>How many bitcoins are there?</h2>The protocol sets the maximum supply of bitcoins at 21 million coins. As of 2023, just over 90% of these have been mined, but it will take over a hundred years to produce the rest. This is due to periodic events known as halving, which gradually reduce the mining reward.<h2>What Is Bitcoin Halving?</h2>Bitcoin's halving is a process that reduces the rate at which new Bitcoin blocks are created. Specifically, it refers to the periodic halving events that reduce the block rewards offered to miners. The next Bitcoin halving is expected to happen in 2024, roughly four years after the last halving, which took place in May 2020.Bitcoin halving is at the core of its economic model as it ensures that coins are issued at a steady pace, getting increasingly difficult at a predictable rate. Such a controlled rate of monetary inflation is one of the key differences between cryptocurrency and traditional fiat currencies, which have an essentially infinite supply.<h2>Is Bitcoin Safe?</h2>One of the main risks associated with Bitcoin is the potential for hacking and theft. For example, in phishing scams, hackers use social engineering techniques to trick users into revealing their login credentials or private keys. Once the hacker has access to the user's account or crypto wallet, they can transfer the victim's bitcoins to their own wallet.Another way hackers can steal bitcoins is through malware or ransomware attacks. Hackers can infect a user's computer or mobile device with malware that allows them to access the user's Bitcoin wallet. In some cases, hackers can also use ransomware to encrypt a user's files and demand payment in bitcoins to unlock them.Because bitcoin transactions are irreversible and not insured by any government agency, users must take precautions to protect their bitcoin holdings. This includes using strong passwords, two-factor authentication, and storing bitcoins in a secure crypto wallet that is inaccessible to hackers. It's also important to only download Bitcoin-related software from trusted sources.Another risk associated with bitcoin is price volatility. The value of bitcoin can fluctuate highly over short periods of time, making it a risky investment for those who are not prepared for the potential losses.<h3>Closing Thoughts</h3>Bitcoin is a decentralized digital currency that has gained significant attention in recent years. It was created to provide an alternative to traditional financial systems and operates on a peer-to-peer network, allowing users to send and receive payments without intermediaries.While Bitcoin is still a relatively new technology, it's already revolutionizing the way we think about money. As bitcoin and other cryptocurrencies continue to evolve, it will be interesting to see if they become a part of our everyday lives.<h3>Further Reading</h3><a href="https://cifdaq.com/help-center/what-is-a-stablecoin-124" target="_blank">What Is a Stablecoin?</a><a href="https://cifdaq.com/help-center/what-is-an-nft-126" target="_blank">What Is an NFT?</a>What Are Crypto Communities and How to Join One?Disclaimer and Risk Warning: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of CIFDAQ Academy. Please read our full disclaimer here for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and CIFDAQ Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

What Is Bitcoin and How Does It Work?

Why Does Bitcoin Have Value?

<h4>Introduction:</h4>derivative platform-Traded Funds, commonly known as ETFs, bear similarities to mutual funds, offering investors exposure to various assets or asset baskets. This concise guide aims to elucidate the definition, functionality, and importance of ETFs in the financial landscape.<h4>Definition:</h4>derivative platform-Traded Funds (ETFs) are akin to mutual funds in tracking asset prices or baskets of assets, such as the S&amp;P 500 or gold. Distinguishing themselves by trading on derivative platforms, ETFs are bought and sold like stocks through traditional brokerage accounts.<h4>Utility of ETFs:</h4>ETFs facilitate portfolio diversification by granting investors access to entire asset classes. Noteworthy is their prevalence in Canada and Latin America, with numerous U.S. firms seeking approval from the Securities and derivative platform Commission (SEC) to list Bitcoin-tracking ETFs. This potential inclusion enables American investors to gain crypto exposure indirectly through brokerage accounts.<h4>Significance of ETFs:</h4>ETFs have gained immense popularity, witnessing a remarkable surge in assets globally, reaching $7.74 trillion in 2020, nearly six times higher than a decade ago. Fueled by the rise of low-fee index investing, ETFs have given rise to robo-advisors, like Betterment and Wealthfront, exclusively investing in ETFs.<h4>Operational Mechanism:</h4>Listed on derivative platforms such as NYSE, Nasdaq, and SSE, ETFs exhibit share price fluctuations during trading hours, a key difference from mutual funds. Unlike mutual funds' single daily pricing, ETFs dynamically track component prices, ensuring alignment through buying and selling when deviations occur.<h4>Comparing ETFs and Mutual Funds:</h4>While sharing similarities, ETFs and mutual funds have distinct characteristics. Mutual funds may impose minimum investment requirements, whereas ETFs are divisible into shares, offering a more accessible entry point. Unlike mutual funds purchased directly from issuers, ETFs are acquired from other investors on stock derivative platforms.<h4>Passive Management and Cost Efficiency:</h4>ETFs often operate passively, mirroring existing indexes without active fund management. This reliance on computer algorithms contributes to lower operating costs and expense ratios compared to actively-managed mutual funds. This efficiency arises from ETFs' index-tracking nature, reducing capital-gains taxes and potential returns drag.<h4>Specialized ETFs:</h4>While index-tracking ETFs are prevalent, specialized ETFs, like the ARK Innovation ETF actively managed by Cathie Wood, exist. These ETFs focus on disruptive companies, demonstrating that ETFs encompass diverse investment strategies. Additionally, leveraged and inverse ETFs offer unique risk-reward profiles.<h4>Conclusion:</h4>Understanding ETFs is crucial for investors navigating the dynamic financial landscape. Whether opting for index-tracking ETFs for broad exposure or exploring specialized ETFs for targeted strategies, investors should assess their financial goals and consult licensed investment advisors to make informed decisions.

Understanding derivative platform-Traded Funds (ETFs): Definition, Functionality, and Significance

<h4>Introduction:</h4>Cryptocurrencies such as Bitcoin and Ethereum operate on decentralized, open-source blockchain software. A critical event in the lifecycle of a blockchain is a fork, wherein the community introduces changes to the protocol, defining the fundamental rules governing the blockchain.<h4>Blockchain Basics:</h4>Cryptocurrencies rely on decentralized, open software, or blockchains, which consist of interconnected blocks of data. These blocks trace back to the network's inaugural transaction, and the open-source nature involves the community in maintaining and enhancing the underlying code.<h4>What Constitutes a Fork:</h4>A fork transpires when the blockchain's protocol undergoes alterations, prompting the creation of a second blockchain that retains the entire history of the original but embarks on a distinct trajectory.<h4>Importance of Forks:</h4>Most digital currencies have dedicated development teams enhancing the network. Forks can occur to enhance security, introduce new features, or accommodate changes in the cryptocurrency's direction. Developers may employ forks to establish entirely new coins and ecosystems.<h4>Types of Forks:</h4><ul><li>Soft Fork: Analogous to a software upgrade, a soft fork introduces new standards to the blockchain. As long as universally adopted, it maintains backward compatibility with pre-fork blocks.</li><li>Hard Fork: A hard fork denotes substantial code changes that render the new version incompatible with earlier blocks, resulting in the split between the original and the new version. This gives rise to a new cryptocurrency, exemplified by coins like Bitcoin Cash and Bitcoin Gold evolving from the original Bitcoin blockchain.</li></ul><h4>Reasons for Forks:</h4>Blockchain updates, akin to software upgrades, occur for various reasons:<ul><li>To add functionality</li><li>To address security risks</li><li>To resolve community disagreements about the cryptocurrency's trajectory</li></ul><h4>Forks' Impact on the Crypto Landscape:</h4>Forks play a transformative role in the crypto space, especially in platforms like Ethereum, designed for executing "smart contracts." Ethereum forks, such as Ethereum, Ethereum Classic, and Ethereum 2.0, resemble updated versions of an operating system, each offering unique features or efficiencies. The coexistence of older, stable forks and newer, innovative ones allows developers to choose platforms based on their specific requirements.<h4>Analogy of Forks:</h4>Conceptually, a soft fork is likened to a 'software upgrade,' similar to updating an operating system, while a hard fork represents an entirely new operating system, analogous to the evolution from UNIX to Linux and Mac OS.In summary, understanding forks in cryptocurrency is pivotal for comprehending the dynamic evolution of blockchain networks and their continuous adaptation to technological advancements and community needs.

Understanding Forks in Cryptocurrency: Definition, Types, and Implications

<h4>Introduction:</h4>Inflation, a common economic phenomenon, is the process wherein a currency, such as the dollar or Euro, undergoes a reduction in value over time, leading to a subsequent increase in the prices of goods and services. Notably, certain cryptocurrencies, like Bitcoin, are engineered to exhibit predictable and modest inflation rates.<h3>Bitcoin's Appeal Amidst Inflation:</h3>Cryptocurrencies, particularly Bitcoin, have gained favor among investors due to their perceived resistance to inflation compared to traditional fiat currencies like the U.S. dollar. Inflation occurs when the value of a currency diminishes, contributing to the escalating prices of consumer goods. While economists often view a moderate level of inflation as beneficial for economic health, the relentless printing of money by governments has been a longstanding practice.Bitcoin's trajectory, in contrast, has witnessed substantial value appreciation, surpassing the depreciation experienced by the U.S. dollar. Despite Bitcoin's inherent market volatility, its overall trend has been upward, making it an increasingly favored hedge against inflation associated with fiat currencies.<h4>Bitcoin's Resilience Against Inflation:</h4>Bitcoin's design incorporates mechanisms to resist inflation effectively. Its supply is limited to a known quantity of 21 million bitcoins, with the creation of new bitcoins gradually decreasing over time through scheduled events known as "halving" that occur every four years. This scarcity, combined with predictable tapering of new supply, distinguishes Bitcoin from traditional fiat currencies.<h4>Significance of Inflation for Cryptocurrencies:</h4>The susceptibility of fiat currencies to high inflation rates prompts individuals to explore digital alternatives like Bitcoin and certain other cryptocurrencies such as Ethereum. Unlike fiat currencies, Bitcoin's economics are shielded from government manipulations like adjusting reward rates or excessive money printing to align with policy objectives.Bitcoin's alignment with scarce stores of value, akin to gold, positions it favorably to potentially appreciate during periods of uncertainty, despite occasional market fluctuations. Its convenience in storing and transmitting value over the internet further enhances its appeal.<h4>The Role of Scarcity:</h4>Scarcity plays a pivotal role in making a store of value resistant to inflation, and Bitcoin's capped supply ensures that it remains a finite and predictable asset. The halving mechanism prevents the discovery of new bitcoins, contributing to Bitcoin's unique predictability.<h4>Inflation in the Cryptocurrency Landscape:</h4>While Bitcoin, technically, experiences inflation as more bitcoins are mined, the automatic reduction of new bitcoin creation by 50 percent every four years mitigates its inflation rate. For investors, Bitcoin's few-percent annual inflation is often overshadowed by its increasing purchasing power compared to traditional fiat currencies.<h4>Diversified Cryptocurrency Landscape:</h4>It's crucial to note that not all cryptocurrencies follow the same design principles as Bitcoin. Stablecoins, a popular category of digital currency pegged to fiat currencies, can provide a low-volatility savings option. However, stablecoins pegged to fiat currencies are susceptible to inflationary impact, potentially diminishing their value over time as the underlying reserve currency weakens.In conclusion, understanding inflation dynamics in the cryptocurrency realm, particularly in the context of Bitcoin, sheds light on the unique features and resilience that digital assets can offer in the face of economic uncertainties and traditional inflationary pressures.

Understanding Inflation in the Context of Cryptocurrencies

<h4>Introduction:</h4>Market capitalization (market cap) is a crucial metric in the realm of cryptocurrencies, serving as a comprehensive measure of a cryptocurrency's overall value and stability. In the context of digital assets like Bitcoin, market cap is computed by multiplying the total number of mined coins by the current market price per coin.<h4>Market Cap Defined:</h4>Market cap, whether applied to traditional stocks or cryptocurrencies like Bitcoin, signifies the total monetary value of all outstanding shares or coins. In the cryptocurrency domain, this value is derived by multiplying the number of mined coins by the prevailing market price of an individual coin.<h4>An Analogy for Stability:</h4>Market cap is analogous to the size of a ship navigating turbulent waters; a cryptocurrency with a larger market cap is generally perceived as a more stable investment compared to its counterparts with smaller market caps. While even major cryptocurrencies experience volatility, the market cap provides a rough gauge of potential stability. Smaller market cap digital currencies tend to be more susceptible to market fluctuations, leading to substantial gains or losses.Note: References to "circulating supply" and "fully diluted supply" market cap represent variations in measurement methodologies, considering either the currently circulating supply or the total supply that will eventually be mined.<h4>Importance of Market Cap:</h4>Beyond individual coin prices, market cap is instrumental in providing a comprehensive view of a cryptocurrency's value. Investors utilize market cap as a key statistic to gauge growth potential and assess the safety of investments relative to other cryptocurrencies.<h4>Illustrative Example:</h4>Consider two hypothetical cryptocurrencies, A and B. Cryptocurrency A has 400,000 coins in circulation, each valued at $1, resulting in a market cap of $400,000. Cryptocurrency B, on the other hand, has 100,000 coins in circulation, each valued at $2, yielding a market cap of $200,000. Despite the higher individual coin price of Cryptocurrency B, Cryptocurrency A's overall value is twice that of Cryptocurrency B.<h4>Significance of Categories:</h4>Market cap categorizes cryptocurrencies into three groups:<ul><li>Large-cap Cryptocurrencies: Exceeding $10 billion in market cap, examples include Bitcoin and Ethereum. Regarded as lower-risk investments due to a proven track record of growth and higher liquidity.</li><li>Mid-cap Cryptocurrencies: With market caps ranging from $1 billion to $10 billion, these present a balance of untapped potential upside and higher risk.</li><li>Small-cap Cryptocurrencies: Market cap less than $1 billion, characterized by susceptibility to dramatic market swings based on sentiment.</li></ul><h4>Utilizing Market Cap for Informed Decisions:</h4>Market cap facilitates informed investment decisions by enabling comparisons between the total values of different cryptocurrencies. It serves as a valuable metric for assessing risk levels, with large-cap cryptocurrencies considered more stable, mid-cap offering a balance, and small-cap being subject to higher volatility. However, prudent consideration of market trends, a cryptocurrency's stability, and individual financial circumstances remains crucial when evaluating investment risks.

Understanding Market Capitalization in the Cryptocurrency Space

Interested in exchanging your crypto holdings for fiat currency? Understanding its market value is your primary consideration before proceeding.The value of cryptocurrencies like Bitcoin can fluctuate significantly due to various factors such as market sentiment, regulatory news, and technological advancements. Thus, staying abreast of current market conditions and the prevailing price of your cryptocurrency is paramount.To track cryptocurrency prices reliably, reputable cryptocurrency derivative platforms and financial news outlets are invaluable resources. It's worth noting that cryptocurrencies may trade at varying prices across derivative platforms and regions due to disparities known as "premiums."For instance, Bitcoin often commands higher prices in regions like South Korea, known as the "Kimchi premium." Consequently, comparing prices across different platforms is prudent before initiating a sale.<h3>Selecting the Right Cryptocurrency derivative platform</h3>Choosing the appropriate cryptocurrency derivative platform to facilitate your crypto-to-cash transaction is another critical step.Cryptocurrency derivative platforms serve as intermediaries, managing sellers' and buyers' funds while facilitating trading. However, each derivative platform operates under distinct rules, requirements, and fee structures.To commence trading, you must create an account on your chosen platform. Most reputable derivative platforms mandate identity verification and linking to a bank account for cash withdrawals. Additionally, some derivative platforms impose regional restrictions, limiting participation from certain countries.Once your account is set up and your cryptocurrency is transferred to the derivative platform, you can place a sell order specifying the currency type, amount, and desired price per unit. The derivative platform executes the transaction upon finding a match for your offer. It's essential to note that cryptocurrency trading can involve various order types, adding complexity to the process.<h3>Withdrawing Cash</h3>Following the crediting of funds to your account, you'll need to withdraw them to your linked bank account to access cash. This process may entail some delay, especially if the derivative platform encounters issues with banking providers or liquidity.Consider any withdrawal fees and limits on withdrawal amounts within specific time frames imposed by your derivative platform. Additionally, be aware that certain banks may decline transactions related to cryptocurrency trading. Therefore, selecting a compatible bank and derivative platform is crucial.While derivative platforms offer wallet services, they may not be the safest option for long-term fund storage due to potential security breaches and mismanagement risks.Alternatively, you can explore peer-to-peer services or reach out to friends and family to convert your cryptocurrency into cash. If opting for in-person sales, exercise caution, familiarize yourself with the transaction process, and mitigate potential security risks to safeguard against scams, losses, and other threats to your safety.

How to Convert Cryptocurrency into Cash: A Beginner's Handbook

Algorithmic stablecoins have garnered significant attention following the Terra-Luna collapse, which resulted in the loss of over $40 billion in investor wealth within days in May 2022.The unprecedented de-pegging of the TerraUSD stablecoin sent shockwaves through the financial sector, prompting lingering skepticism among crypto investors regarding algorithmic stablecoins. In this guide, we'll explore the fundamentals of algorithmic stablecoins and the associated risks.<h2>Understanding Algorithmic Stablecoins</h2>Algorithmic stablecoins represent a form of digital currency that utilizes computer algorithms and smart contracts to stabilize their value, typically pegging it to another asset like the U.S. dollar. Unlike centralized stablecoins such as Tether, backed by physical assets, or decentralized stablecoins like MakerDAO's DAI, over-collateralized with cryptocurrency, algorithmic stablecoins often operate under-collateralized, meaning they do not rely on a reserve of assets for their value.These stablecoins employ a system of 'balancer' or 'share' tokens to absorb market volatility and maintain their peg. For instance, in the Terra blockchain system, the algorithmic stablecoin TerraUSD interacts with the governance token Luna to stabilize its value. When TerraUSD's value exceeds $1, Luna holders can profit by exchanging Luna for TerraUSD, and vice versa, to reduce supply and increase price.However, the stability of algorithmic stablecoins hinges heavily on market demand. A decline in demand below a certain threshold can jeopardize the entire system. Additionally, these stablecoins rely on independent investors for price-stabilizing arbitrage, introducing significant risk. Despite potential downsides, the transparency and decentralization offered by algorithmic stablecoins may appeal to some users due to their reliance on auditable code and lack of regulatory oversight.<h2>Types of Algorithmic Stablecoins</h2>Algorithmic stablecoins can be categorized into various types, each with unique characteristics:<ul><li>Re-basing Algorithmic Stablecoins: These stablecoins employ price-elastic ERC-20 tokens, with a variable total supply adjusted regularly based on the token's price over time. Examples include the Ampleforth protocol.</li><li>Seigniorage Algorithmic Stablecoins: This model comprises stablecoins and seigniorage shares, adjusting supply to maintain stable prices. Examples include Basis Cash and Luna/UST.</li><li>Fractional Algorithmic Stablecoins: These stablecoins combine features of fully algorithmic and fully collateralized stablecoins to minimize over-collateralization and reduce custodial risks. Frax is a notable example, utilizing a partial-collateral protocol.</li></ul><h2>Trading Risks and Benefits</h2>Algorithmic stablecoins entail a unique set of risks and benefits:<ul><li>Benefits: They embody decentralization, operating solely through auditable code without regulatory oversight. This eliminates user error risk and reintroduces seigniorage into the crypto ecosystem.</li><li>Risks: However, their architecture presents inherent weaknesses. Vulnerable to de-pegging risk, these uncollateralized assets rely on market demand, and a decline in demand can lead to system collapse. Stability can be severely impacted during crises, resulting in significant price drops, as seen with TerraUSD.</li></ul><h2>Regulatory Landscape</h2>Algorithmic stablecoins currently operate in a largely unregulated space, offering both opportunities and risks. While the absence of regulatory oversight fosters innovation and flexibility, it also exposes investors to fewer protections. Instances like the TerraUSD de-pegging event have underscored the need for greater regulation in this domain.

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