When Bitcoin launched as the first implementation of the blockchain in 2009, distributed ledger technology (DLT) disrupted multiple industries.

From finance and banking to supply chain management and healthcare, organizations have been leveraging blockchain technology’s benefits to innovate, create more efficient services, as well as provide viable solutions to long-known issues.

That said, if you hear the phrase “blockchain,” probably the first thing that comes to your mind is a highly decentralized, open, community-governed DLT network like Ethereum or Bitcoin.

However, in addition to public blockchains, there is another form of the technology called private blockchains tailored for enterprise usage.

But what is the difference between public and private blockchains, how do they work, and what are their core features?

Let’s find out in this article!

What Blockchain Types Are Out There?

The blockchain refers to a digital ledger that is duplicated and distributed across the devices of all participants in the network in a way that everyone stores the same records and sees related changes in real-time.

But, did you know that there are four types of blockchain networks currently available?

That’s right.

Below, you can find all DLT variations with a small description for each:

1. Public blockchains: Appeared with the launch of Bitcoin, public blockchains are open for anyone to join and use solutions within the network. Since DLT networks are transparent in nature, everyone can audit and monitor records on public blockchains. For this blockchain type, the read access is open.
2. Private blockchains: Unlike their public counterparts, private blockchains restrict access for users, only allowing those within a specific organization or who have passed Know Your Customer (KYC) checks and have been approved by the system administrator into the network. For this blockchain type, the read access is closed.
3. Permissionless blockchains: In a permissionless blockchain, anyone can participate in the consensus mechanism to validate blocks and transactions. Since there are no access controls in place for validators, the write access is open for this blockchain type.
4. Permissioned blockchains: To achieve higher throughput and tailor DLT networks for enterprise usage, permissioned blockchains limit the number of validators while having access controls in place to select who can participate in the consensus mechanism. For that reason, the write access is closed for this blockchain type.

Since they are similar concepts, the terms private and permissioned, as well as public and permissionless, are often used interchangeably in the cryptocurrency industry.

However, they don’t exactly refer to the same thing.

While the public and private terms focus on whether a DLT network restricts read access for standard users, permissioned and permissionless refer to the presence of access controls for validators (write access).

Generally, all permissionless blockchains are public (open read and write access), and all private blockchains are permissioned (closed read and write access).

On the other hand, not all public blockchains are permissionless, as there are permissioned public DLT networks out there that allow anyone to join and audit the data on the chain but that restrict who can validate blocks.

In the next sections, we will focus on the differences between public and private blockchain networks.

Public vs. Private Blockchains: What Is the Difference Between the Two?

Both public and private blockchains leverage the benefits of DLT technology.

However, the core difference between the two is how they manage user access and whether they control who can validate blocks within the network.

What Is a Public Blockchain?

Examples: Bitcoin, Ethereum, Litecoin,

Most of the blockchain networks on the market are public, meaning that anyone with a working internet connection and a compatible device can access them along with the products, services, and apps in the ecosystem.

At the same time – since everyone keeps the same records on their devices and all modifications are transparently recorded on the digital ledger, users can inspect the data recorded on the public blockchain, trace transactions, and view other information.

Also, as there are no controls in place to restrict access for standard users (thus, no need for KYC), a higher degree of privacy can be achieved in the network.

When a public blockchain is also permissionless, it means that the network is not only free to access for standard users, but it lacks restrictions for validators as well.

As a result, everyone can participate in the consensus mechanism by operating a full node or mining or staking the platform’s native cryptocurrency.

Since the number of validators is high and there’s no central authority that selects them in public DLT networks, it allows for a great level of decentralization.

At the same time, this architecture provides enhanced security against attackers as they would need to take over the majority of the network to succeed.

What Are the Most Important Features of Public Blockchains?

Now that you know what public blockchains are, let’s see their most important features.

1. Decentralization: In public blockchains, every user is equal without anyone having more authority than others. For that reason, and since nodes and validators are scattered all over the world, this DLT type is highly decentralized. Also, instead of a centralized company, most public blockchains are governed by the community who uses the chains’ native tokens to vote on upgrades and other important matters related to the network’s future.
2. Privacy: In public blockchains, no KYC or any other forms of identity checks are needed to enter the network and use solutions within the ecosystem. As a result, users can achieve a higher level of privacy.
3. Transparency: Since anyone can view and audit data on the blockchain, public DLT networks operate transparently. For that reason, it’s much easier to spot malicious, dishonest, and illicit activities in the ecosystem.
4. Immutability: Due to the nature of the blockchain, once a transaction is recorded on the ledger, it can’t be altered in any way unless the majority of the validators agree to do so. Since public blockchains feature a massive number of validators, it’s almost impossible to tamper with data recorded on the ledger, making public DLT networks immutable.
5. Censorship-resistance: DLT networks operated by centralized companies are often subject to regulations in some jurisdictions that could lead to some forms of censorship within the ecosystem. On the other hand, public blockchains leverage the power of decentralization to become entirely resistant to censorship.
6. High Security: In addition to eliminating all risks of a single point of failure, the large-scale participation in the consensus mechanism makes it hard for attackers to take over the network. For example, they have to acquire 51% of the hash rate (the total computing power of devices connected to the network) to gain control of chains using the Proof-of-Work (PoW) consensus algorithm. However, if many miners are maintaining the network, it could effectively prevent such scenarios due to the potential costs of the attack. To achieve such against Bitcoin, an attacker would need to purchase 1.75 million of a popular mining rig that is priced at $10,000 each and feature a hash power of 100 TH/s (the current BTC hash rate is around 175 million TH/s). As a result, malicious parties would have to spend a whopping $17.5 billion to buy the hardware capable of taking over 51% of the network (and we didn’t even take electricity fees into account).

What Is a Private Blockchain?

Examples: Hyperledger Fabric, ConsenSys Quorum

While public DLT networks are meant to be used by the general public for all kinds of purposes, private blockchains are instead tailored for enterprise usage.

For that reason, private DLT solutions have access controls in place both for writing and reading.

This means only users authorized by the system admin can enter the network while the enterprise managing the ecosystem selects the validators that can participate in the consensus mechanism.

As a result, the organization can leverage the benefits of DLT technology while effectively safeguarding sensitive data recorded on the ledger.

To achieve that, everyone seeking to join the network must confirm their identities by submitting to KYC checks.

Upon the approval of the documents, the system administrator will assign different roles with various levels of access to participants in the ecosystem.

For example, while the enterprise may allow all its employees to view standard records, it may give only executives and top managers authorization to access sensitive data.As a result, the enterprise could keep everything under control by setting its own rules in the network.

Furthermore, enterprises not only choose who can validate blocks but also limit the number of validators that can generate blocks and verify transactions.

This gives private blockchains a significant advantage over their public counterparts in terms of scalability and throughput.

While it comes with increased centralization, the fewer the participants are present in the consensus process, the more efficient the network becomes, and the quicker transactions can be processed.

What Are the Most Important Features of Private Blockchains?

1. Enhanced Scalability: By centralizing the consensus process, private blockchains limit the number of validators, making the network more efficient. As a result, high scalability and transaction throughput can be achieved at much better speeds than with public DLT solutions.
2. The Ability to Prevent Unauthorized Access: Since only authorized users can use the network with different roles assigned to every participant, sensitive data recorded on private blockchains can be effectively safeguarded by restricting access for the general public, competitors, and malicious parties. Also, with an effective KYC process, enterprises can significantly minimize (or completely eliminate) the presence of illicit activities within the ecosystem.
3. Cost-Efficiency: As the number of nodes is significantly limited (e.g., 20-30 vs. 10,000+ for public chains), it substantially reduces the costs of maintaining the network.
4. Regulatory Compliance: Since most private blockchains are operated by businesses, they have to comply with regulations in multiple jurisdictions. While it may be hard to achieve that in a public DLT network, a private blockchain allows the enterprise to set and enforce rules according to regulators’ laws, frameworks, and policies.
5. Enterprise Customizability: Since they have increased control over the network, enterprises can easily customize private blockchains to fit their needs.

Public vs. Private Blockchains: The Verdict

Both public and private blockchains have an important role in the industry.

While public DLT networks are more suited to fulfill the needs of the general public, private chains are tailored for enterprise usage.

Via an open, decentralized, transparent, and community-governed network, participants of public blockchains can benefit from increased privacy, censorship resistance, and enhanced security.

On the other hand, this DLT type lacks the level of customization for enterprises while suffering limited scalability and network efficiency.

Private blockchains seek to solve these issues by sacrificing decentralization and privacy to achieve better throughput at lower fees by limiting the number of validators.

At the same time, by performing KYC checks and setting their own rules and policies, enterprises can easily customize private chains to fit their preferences, comply with regulations, and prevent unauthorized access.

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Frequently Asked Questions (FAQ)

1. Is Bitcoin a public or private blockchain network?

Bitcoin is a public blockchain that allows anyone to access the network as well as solutions within the ecosystem without any restrictions. Furthermore, you can also audit transactions, addresses, and other data recorded on the distributed ledger.

All you need is a compatible device and a working internet connection to do so.

In addition to being public, Bitcoin’s blockchain is also permissionless, which means that everyone is free to participate in the consensus process by running a full node or mining BTC.

2. Is a private blockchain centralized?

Since private blockchains have access controls in place for both validators and standard users – who have to be approved by the system administrator (a centralized authority) based on KYC documents –, private blockchains are increasingly centralized.

3. What is the use-case of private blockchains?

Private blockchains are tailored to fit the needs and preferences of enterprises, governments, non-profits, and other organizations.

Some example use-cases of private blockchains for businesses include supply chain management, digital identity, finance, B2B, healthcare, and food tracking solutions.

Bitcoin, the world’s oldest and largest decentralized cryptocurrency by market cap, utilizes the very first implementation of blockchain technology.

Along with most cryptocurrencies on the market, BTC features a permissionless blockchain network. Anyone with a working internet connection and a compatible device can access and maintain without restrictions.

In this way, BTC’s blockchain is different from permissioned blockchains, which are used mainly by businesses, governments, financial institutions, and consortiums.

Permissioned blockchains are distributed ledger technology (DLT) that sacrifice some degree of decentralization and anonymity to better suit business needs as well as achieve higher network speed and efficiency.

In this article, we will introduce permissionless and permissioned blockchains while exploring the core differences between the two DLT solutions.

What Is a Blockchain Network?

Before we dive deeper into our topic, let’s first revisit the basics of blockchain technology.

Pioneered with the launch of Bitcoin, a blockchain is a digital ledger that is duplicated and distributed across all participants’ devices in the network.

As a result, every change to the blockchain is recorded transparently in real-time on all participants’ ledgers. This means that everyone in the network sees an identical distributed ledger with the same records, allowing users to audit and trace back transactions.

Unlike in traditional networks where individual participants with the right access level can make changes to the server’s data, validators have to reach a consensus through a mechanism like Proof-of-Work (PoW) or Proof-of-Stake (PoS) to update the blockchain.

For that reason, once something is recorded on the distributed ledger, individual users can’t modify, delete, or tamper with the data, which makes the blockchain immutable by nature.

Furthermore, blockchains eliminate the single point of failure by maintaining the ecosystem via a vast network of computers.

Since thousands (or even millions) of devices scattered all over the world add new blocks to the chain and verify transactions, blockchains are more secure against cyberattacks, as hackers have to take over the majority of the network (instead of a single server) to gain control.

While all transactions are encrypted via public-key cryptography, blockchain networks operate continuously without third parties or middlemen.

What Is a Permissionless Blockchain?

Examples: Bitcoin, Ethereum, Litecoin

A permissionless blockchain is the type of DLT technology users in the crypto community are most familiar with.

And this shouldn’t come as a surprise.

Bitcoin, Ethereum, and the underlying blockchain networks of most cryptocurrencies use this form of distributed ledger.

In a permissionless blockchain network, anyone is allowed to participate and become a validator.

For example, if you have a compatible device and a working internet connection, you are free to create a Bitcoin wallet or even maintain the network by becoming a miner.

Permissionless blockchain networks completely lack access controls.

As a result, neither normal users nor validators have to verify their identities or submit Know Your Customer (KYC) documents to join. Instead, they can participate in the network while staying anonymous or pseudonymous.

What Are the Benefits of Permissionless Blockchains?

1. Decentralization: Since there are no access controls or restrictions in place for validators, permissionless blockchain networks are truly decentralized. Every participant is equal, and no one can exercise increased authority over the others.
2. Increased security: The lack of restrictions for validators incentivizes more participants to maintain the blockchain. For that reason, most permissionless ledgers feature an extensive number of validators, enhancing the network’s security.
3. Privacy: As it’s not necessary for participants to provide any personal details or documents to join, permissionless blockchains feature increased privacy, allowing users to stay anonymous or pseudonymous while interacting with solutions in the network.
4. Community governance: Instead of a company, government, or another centralized entity, most permissionless blockchains are governed by the project’s community.
5. Censorship resistance: Due to the high level of decentralization and the extensive number of validators, permissionless blockchains are effectively resistant to censorship.

What Are the Downsides of Permissionless Blockchains?

1. Limited speed and scalability: Since they feature a large number of validators who all need to reach consensus to process transfers and add new blocks to the chain, permissionless blockchains often face issues with limited scalability and transaction throughput.
2. Risk of chain splits: In permissionless blockchain networks, the community must work closely together to maintain the ecosystem. However, heated debates and disagreements between miners can split the community and also the blockchain during hard forks (major upgrades that are not compatible with previous versions).
3. Energy-efficiency issues: The Proof-of-Work (PoW) algorithm Bitcoin, Ethereum, and many other major blockchains deploy to reach consensus is highly energy-intensive as miners are required to operate physical equipment to solve complex mathematical puzzles. As a result, BTC mining consumes more energy than Sweden in a year. That said, many permissionless blockchains are upgrading their consensus mechanisms to more energy-efficient algorithms (e.g., Proof-of-Stake) to solve such issues.
4. Risk of malicious activity: While most permissionless blockchains can effectively protect against hacker attacks, they can’t prevent cybercriminals from entering the network and targeting solutions in the ecosystem.

What Is a Permissioned Blockchain?

Examples: ConsenSys Quorum, Hyperledger Fabric, R3 Corda

Contrary to a permissionless network, a permissioned blockchain is a DLT solution with access controls in place for validators.

This could mean setting up a requirement to request KYC documents from all validators in the network.

Also, in most cases, the organization or the community managing the permissioned ledger chooses the users to validate blocks in the ecosystem.

Furthermore, permissioned blockchains limit the maximum number of validators in the network to increase efficiency as well as achieve higher throughput and scalability.

While some permissioned blockchains have access controls for standard users as well, others only restrict who can become validators (more on this later).

Unlike their permissionless counterparts that cater to the general public, permissioned blockchains are more suitable for enterprise usage as they can be more easily customized to fit individual business needs.

What Are the Benefits of Permissioned Blockchains?

1. Enhanced scalability and speed: Permissioned blockchains feature only a small number of validators. As a result, they can reach consensus much faster than their permissionless counterparts while achieving high scalability and speed.
2. Customizability: With access controls for validators, enterprises managing permissioned blockchains can set their own rules and customize the network to best fit their needs.
3. Compliance: Permissioned ledgers provide enterprises increased control over the network infrastructure, which allows them to fulfill compliance requirements more efficiently.
4. Limited malicious presence: With effective access controls for validators, permissioned blockchains can effectively eliminate (or at least limit) the presence of malicious parties in the ecosystem.
5. Cost-efficiency: The small number of validators increases scalability and throughput and decreases the costs of operating the network.

What Are the Downsides of Permissioned Blockchains?

1. Increased centralization: Chosen by the organization or the community managing the chain, only a limited number of validators can participate in permissioned networks. While the level of decentralization varies by the network, permissioned blockchains are more centralized than their permissionless counterparts.
2. Less transparency: The transparency of permissioned blockchains is based on the organization itself managing it. While some enterprises may decide to maintain the same transparency as permissionless chains, others are reluctant to share information about their processes and procedures with participants.
3. Lack of privacy: Since validators – and also standard users in some cases – have to go through KYC, permissioned blockchains feature limited privacy, making it nearly impossible for most participants to use the network pseudonymously.
4. No resistance against censorship: As the network is managed by an organization that has to comply with regulations, permissioned blockchains could be subject to censorship in some jurisdictions.
5. Potential security issues: With proper access controls, permissioned blockchains can maintain a high level of security in their networks. However, due to the small number of validators, a malicious party has an easier time infiltrating a permissioned blockchain than a permissionless ledger.

Permissioned vs. Permissionless Blockchains: What Are the Key Differences?

Now that you know the basics about permissioned and permissionless blockchains, let’s see the main differences between the two DLT solutions.

‍Access controls for validators

‍No. Everyone can become a validator in the network.Yes. The number of validators is limited, with the community or the organization managing the chain choosing who can validate blocks in the network.

Level of decentralization

‍High. Permissionless blockchains feature an extensive number of validators throughout the world.Limited. Due to the small number of validators, permissioned blockchains are increasingly centralized.

‍Governance

‍Governed and maintained by the communityGoverned by the members of an enterprise, government, consortium, or another organization

Security

‍High. The extensive number of validators eliminates the single point of failure while effectively securing the network from attackers.Varies based on the quality of access controls in the network. With proper management, a permissioned chain can achieve a high level of security.‍

Transparency

‍High. Every change is transparently recorded on the blockchain.Varies, based on the preferences of the organization managing the chain.

‍Censorship-resistance

‍High. Permissionless blockchains are unaffected by local regulations and can effectively resist censorship.Low. Enterprises managing permissioned blockchains have to comply with local regulations, which may involve requirements to censor specific network information in some jurisdictions.

‍Scalability and speed

‍Low. A large number of validators have to reach consensus, which decreases network speed and scalability.High. A small group of validators allows permissioned blockchains to function efficiently with enhanced scalability and speed.

‍Customizability

‍Low. It usually takes more time to push through major upgrades.High. Enterprises can easily set their own rules and customize chains to fit their needs.

‍Privacy

‍High. Users can freely join and participate in the network without passing KYC checks or confirming their identities.Low. Validators have to confirm their identities. Some permissioned blockchains have KYC requirements for standard users as well.Best suited forGeneral publicEnterprises, governments, consortiums, and financial institutions

Permissioned vs. Permissionless vs. Public vs. Private Blockchains

Public and permissionless, as well as private and permissioned, are concepts that are often used interchangeably for blockchain solutions in the crypto space.

However, there is a major difference between public and permissionless as well as private and permissioned blockchains.

Permissioned and permissionless are phrases used to describe whether a DLT network has access controls in place for validators. Simply put, these chain types have varying write rules.

While anyone can become a validator in a permissionless chain, users have to pass KYC checks and have to go through a voting process to validate blocks in permissioned networks.

However, the above two expressions do not cover whether a blockchain is open for standard users to participate.

When a blockchain is public, anyone can access the network and audit the data recorded on the distributed ledger. By nature, all permissionless chains are public.

On the other hand, private chains only allow select users into the network. In most cases, only those who have passed KYC checks and got approved by the administrator can join. Private DLT solutions restrict the read access for users.

Those without access can neither view data on the chain nor become validators in the network. For that reason, all private blockchains are permissioned as well.

On the other hand, there are public permissioned blockchains on the market that allow anyone to view records on the ledger and interact with solutions within the network but have measures in place to restrict who can validate blocks.

Both Permissionless and Permissioned Blockchains Play a Vital Role in the Industry

As the original implementation of DLT technology, permissionless blockchains feature a high level of decentralization, security, transparency, along with community governance.

On the other hand, permissioned ledgers sacrifice decentralization for higher speed, scalability, and customization. As they are increasingly centralized, many in the community argue that permissioned blockchains go against the core principles of crypto.

That said, like their permissionless counterparts that target the general public and serve a universal purpose, permissioned blockchains play an essential role in the industry by fulfilling the needs of enterprises that can customize them to better achieve their goals and objectives.

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Frequently Asked Questions (FAQ)

1. Is Ethereum a permissioned blockchain?

Ethereum is a permissionless blockchain since it lacks access controls for validators.

Ethereum is also a public DLT solution since everyone with a working internet connection and a compatible device can join the ecosystem and interact with apps.

2. Is Hyperledger a permissioned blockchain?

While it is an open-source solution, Hyperledger is a permissioned blockchain that has been tailored for enterprise usage.

3. Is Bitcoin permissionless or permissioned?

Like Ethereum, Bitcoin is also a permissionless and public blockchain network, in which anyone can freely become a miner to maintain the ecosystem.

4. What is the biggest challenge of a permissionless blockchain?

While permissionless blockchains offer tremendous benefits to users, the biggest challenge they face is limited scalability.

Due to the extensive number of validators and the fact that all of them have to reach a consensus to verify transactions and add new blocks to the chain, permissionless blockchains are much slower than their permissioned counterparts.

With that said, many permissionless blockchains are working on fixing their speed-related issues by upgrading to more efficient consensus mechanisms and integrating off-chain scalability solutions.

5. What are the use-cases of permissioned blockchains?

Since they can operate at much higher speeds with enhanced scalability while sacrificing a level of decentralization, the main use-cases of permissioned blockchains are primarily for enterprises.

Examples of permissioned blockchain use-cases for businesses include farm-to-table food tracking, digital identity, supply chain management, and banking solutions.

Similar to how a bank account serves as your gateway to traditional finance, a cryptocurrency wallet is essential for managing and accessing digital assets in the blockchain ecosystem. In this updated guide, we’ll explore what crypto wallets are, how they work, and the latest advancements in their types and features. Whether you’re new to crypto or looking to expand your knowledge, this comprehensive overview will equip you with the information you need to navigate the world of crypto wallets in 2024.

What Is a Crypto Wallet?

A cryptocurrency wallet is a tool—usually software, sometimes paired with hardware—that allows you to interact with blockchain networks. It provides a secure way to:

• Send, receive, and store digital assets.
• Interact with decentralized applications (DApps).

At its core, a crypto wallet functions as your digital identity in the blockchain space, using cryptographic technology to secure your transactions and assets.

Public and Private Keys

Cryptocurrency wallets rely on public-key cryptography, which involves two key components:

• Public Key: This serves as your wallet address, akin to a bank account number. It’s safe to share with others for receiving funds.
• Private Key: This grants access to your wallet and allows you to sign transactions. Keep it secure and never share it.

For additional safety, wallets generate a seed phrase (a mnemonic recovery phrase) derived from the private key. This phrase is critical for wallet recovery and must be stored securely.

How Does a Cryptocurrency Wallet Work?

Wallets function by enabling secure interactions with blockchain networks. Here’s how a transaction works:

1. Initiating a Transfer: Alice wants to send Bitcoin (BTC) to Bob. She inputs Bob’s public key (wallet address) and the amount.
2. Signing the Transaction: Alice’s wallet uses her private key to create a digital signature.
3. Broadcasting to the Blockchain: The transaction is transmitted to the network and validated by miners or validators.
4. Confirmation: Once added to a block, the transfer is confirmed and completed.

Advancements in Wallet Security

Modern wallets have introduced features like:

• Multi-signature (Multisig) Wallets: Require multiple private keys to approve a transaction.
• Social Recovery: Designates trusted contacts to help recover your wallet.
• Multi-Party Computation (MPC): Splits private keys across multiple parties for enhanced security.

Types of Crypto Wallets

Hot Wallets

Hot wallets are connected to the internet and include:

1. Desktop Wallets: Software installed on computers (e.g., Exodus, Electrum).
2. Mobile Wallets: Apps for smartphones, often featuring QR code transactions (e.g., Trust Wallet, Guarda).
3. Web Wallets: Accessed via browsers, offering convenience but lower security (e.g., MyEtherWallet).

Cold Wallets

Cold wallets are offline and provide maximum security:

1. Hardware Wallets: Physical devices like Ledger and Trezor.
2. Paper Wallets: Printed private and public keys (less recommended due to fragility).

DeFi Wallets

DeFi wallets enable interactions with decentralized finance platforms and Web3 applications. Examples include MetaMask and Argent.

Emerging Wallet Types

• NFT Wallets: Specialized for managing digital collectibles.
• Universal Wallets: Support multiple blockchains and assets in one platform.

What Are Crypto Wallets Used For?

Crypto wallets are versatile tools that enable:

1. Storing Digital Assets: Safeguard cryptocurrencies securely.
2. Transactions: Send and receive funds globally.
3. DeFi Activities: Lend, borrow, stake, or yield farm.
4. NFT Management: Buy, sell, and showcase digital collectibles.
5. Payments: Use crypto for goods and services.
6. Integrated Features: Access swaps, staking, and on-ramp services.

How to Choose the Best Crypto Wallet

When selecting a crypto wallet, consider the following factors:

1. Security: Look for advanced features like 2FA, biometric authentication, and multisig options.
2. Multi-Coin Support: Ensure the wallet supports all the cryptocurrencies you plan to hold.
3. Ease of Use: Opt for user-friendly interfaces, especially if you’re a beginner.
4. Integration with DApps: Check for compatibility with DeFi and Web3 platforms.
5. Reputation: Choose wallets from well-established providers with positive reviews.

Security Tips for Crypto Wallets

1. Backup Your Seed Phrase: Store it securely in multiple locations.
2. Use Strong Passwords: Avoid common passwords and enable additional security layers.
3. Keep Software Updated: Regular updates protect against vulnerabilities.
4. Verify Addresses: Always double-check wallet addresses before transactions.
5. Consider a Hardware Wallet: Ideal for long-term storage of significant funds.

How to Create a Crypto Wallet

For Custodial Wallets:

1. Sign up on a trusted platform (e.g., Coinbase).
2. Complete identity verification (KYC).
3. Deposit funds to start using your wallet.

For Non-Custodial Wallets:

1. Download the wallet app (e.g., MetaMask).
2. Set up a new wallet and create a strong password.
3. Save your seed phrase securely.
4. Transfer crypto to your wallet.

Frequently Asked Questions (FAQs)

What Is the Safest Crypto Wallet?

Hardware wallets like Ledger and Trezor are considered the safest due to their offline nature and robust security measures.

Can I Use One Wallet for All Cryptocurrencies?

Yes, many wallets support multiple cryptocurrencies. However, ensure the wallet supports the specific coins you want to store.

Are Crypto Wallets Free?

Many software wallets are free, but hardware wallets require a one-time purchase.

Do Crypto Wallets Charge Transaction Fees?

Fees vary by wallet type. Non-custodial wallets charge network fees, while custodial wallets may have additional costs.

With this guide, you’re now equipped to choose, use, and secure your crypto wallet effectively. As the crypto landscape evolves, staying informed about wallet advancements will ensure you maximize the safety and utility of your digital assets.

NOTE: This article is updated from a previously published article on 4/27/2021.

There has been quite some hype around DeFi in the crypto space.

And it’s no surprise.

While the total value locked in decentralized finance applications was standing at $671.3 million on January 1, 2020, the industry has grown to a $14.3 billion market by December 31. This represents a yearly surge of over 2,000%, which is over six times greater than Bitcoin’s 306% growth last year.

Since then, the decentralized finance market has continued its ambitious expansion, with users pouring $39.79 billion into DeFi apps by February 10, 2021.

But what is DeFi, how does it work, what benefits does it offer to users, and how did it manage to grow so big so fast?

Let’s explore the answers to the above questions together in this comprehensive guide about decentralized finance!

What Is DeFi?

Decentralized finance or DeFi refers to a movement in the cryptocurrency space in which alternative financial solutions are created using blockchain technology and digital assets.

With DeFi, anyone on the globe with an internet connection, a desktop or mobile device, and a compatible cryptocurrency wallet can access decentralized financial solutions.

DeFi apps allow users to manage their finances, get insurance, borrow, trade, and exchange digital assets or generate a passive income via various savings products while maintaining control over their funds.

DeFi solutions offer a great level of privacy to users, and most processes are automated and transparent.

Also, since DeFi apps lack intermediaries, they feature efficient networks with rapid transactions, reduced fees, and higher potential for profits.

What Is a DeFi Protocol?

A DeFi protocol or a DApp (decentralized application) refers to the actual solution that provides decentralized finance services to users.

Built on top of blockchain networks, DeFi protocols are operated using digital currencies and smart contracts. The latter refers to a self-executing and enforcing digital agreement between two or more parties.

While they are often used interchangeably, decentralized finance protocols shouldn’t be confused with DeFi platforms, which we will introduce in the next section.

What Is a DeFi Platform?

Unlike protocols, a DeFi platform refers to the blockchain network where the actual decentralized finance solution is deployed.

As decentralized finance applications are automated, smart contract support is mandatory for a blockchain network to become a platform for DeFi.

For that reason – and due to the massive activity on the blockchain –, Ethereum leads as the top DeFi platform with the vast majority (200) of decentralized finance solutions built on top of the project’s chain.

Interestingly, Bitcoin is the second most-used DeFi platform with 26 projects despite that its network doesn’t natively support smart contracts. However, with the Lightning Network’s introduction, it’s possible to run smart contracts and DeFi apps on BTC.

Coming next, the highly scalable smart contract platform EOS secures third place with 21 DeFi projects.

DeFi vs. Traditional Finance: How Does Decentralized Finance Work?

To understand our topic, it’s crucial to know how decentralized finance solutions work compared to traditional finance approaches.

Traditional Finance

Traditional finance products – such as loans, savings accounts, wealth management, banking, and insurance – operate on a centralized basis.

The service provider has full control over the ecosystem and the authority to set its own rules and terms. For that reason, the company has the right to provide or restrict the access of customers to its products and services.

For example, let’s see how a loan application process works in traditional finance.

1. You make an appointment with your bank, visit the branch to answer several questions, and fill out the necessary forms.
2. After that, you have to submit documents to the bank.
3. The financial institution reviews the submitted papers along with your credit history and other data related to your financial background to determine your eligibility for the loan.
4. If the bank finds everything okay, it issues you the loan and transfers the requested funds into your account, which you will have to pay back along with interest.

However, if the bank finds it too risky to lend you money, it will deny your application.

Denial can be due to many reasons, including bad credit history, insufficient collateral, low income, too many pending loans, or an unstable job. In other cases, the financial institution may reject your application for a cause they won’t inform you of.

As you can see, the whole process – which can take from a few days to several weeks – is definitely not transparent or democratic. The bank is in charge of everything, focusing on maximizing its profits while taking the least amount of risks.

While we can’t judge banks for doing so – as most companies follow the same practice to run a profitable business – banks deny access to traditional finance products for many people. And, sometimes, those who get rejected are the ones who need those services the most.

Also, some traditional finance products like lending are only accessible domestically due to regulations and the inability to determine an applicant’s credit score on an international basis.

DeFi

In the last section, we described an example of how a loan application is processed in traditional finance. Now let’s see how borrowing with DeFi works:

1. A user connects a compatible cryptocurrency wallet to a DeFi lending platform to access the app.
2. Upon successfully connecting the wallet, the user selects the digital asset and the amount of coins to use as collateral and deposits it into a smart contract on the lending platform.
3. When the coins have arrived, the user selects the amount of stablecoins (e.g., DAI, USDT, USDC) to borrow as well as sets and agrees to the loan’s terms.
4. After finalizing the process by tapping or clicking a button, the platform automatically locks the customer’s collateral and distributes the borrowed amount to the user from a lending pool.
5. The user pays back the borrowed amount and the corresponding interest according to the terms agreed in the contract.
6. Upon successful repayment, the lending platform automatically releases the borrower’s collateral.
7. Contrary to traditional finance, the whole process in which the user applies for and gets the loan issued takes only a few seconds or minutes.

Furthermore, the process doesn’t involve any intermediaries, and everyone with the necessary digital asset collateral can receive a loan with flexible terms vis-a-vis DeFi solutions.

What Are the Benefits of DeFi?

DeFi solutions provide multiple benefits to users, including:

1. Decentralization: DeFi solutions function as decentralized applications (DApps) that are deployed on blockchain networks. Unlike traditional systems, where data is stored on a central server or database, blockchains are maintained by a decentralized network of computers (the miners or validators).
2. Transparency: Since DeFi solutions are blockchain-based, everyone maintains the same copy of the blockchain, storing all the data and recording changes to the distributed ledger in real-time. All this information is available for anyone on the public chain to verify, audit, and analyze transparently.
3. Immutability: In blockchain networks, validators have to reach a consensus to verify transactions or add new blocks to the chain. As a result, once a record is added to the distributed ledger, it is immutable and can’t be modified.
4. Open access: DeFi DApps are deployed on permissionless blockchains such as Ethereum. As a result, anyone with a compatible device, cryptocurrency wallet, and an internet connection can access DeFi solutions globally without geographical, financial, or other restrictions.
5. Democratic governance: Instead of a company or a financial institution, most DeFi products are governed by the community. Here, holders can use their tokens to vote on future protocol upgrades, fixes, and other governance-related decisions. However, it’s important to mention that not all DeFi projects start as community-powered solutions. Instead, they initially use a centralized governance model (e.g., a developer or an organization is in charge). But later, the creator hands control over the project to the community by issuing and distributing native tokens to users.
6. Interoperability: One of the most important features of DeFi is interoperability, which allows developers to build upon, integrate, or combine DApps with other decentralized finance solutions. This is the reason why DeFi protocols are often called “money legos” in the crypto space.
7. Programmability: Developers can deploy smart contracts for DeFi solutions to automate processes and create new products.
8. Non-custodial finance management: Traditional finance solutions – and even centralized exchanges – keep their customers’ funds in their custody while using their products (take savings or bank account as an example). On the other hand, most DeFi applications don’t hold user funds. Instead, they operate on a self-custodial basis where customers have to connect their wallets without depositing money to accounts managed by the service provider. For that reason, users have full control over their digital assets and personal data when they use DeFi apps.
9. Privacy: Since DeFi solutions have no custody over customer funds, they don’t require users to register accounts, provide personal details, or submit Know Your Customer (KYC) and Anti-Money Laundering (AML) documents. For that reason, it’s possible to use decentralized finance services privately or (pseudo)-anonymously. However, that can change soon based on the outcome of future regulations.

What Are the Use-Cases for DeFi?

Empowering DeFi with numerous use cases, projects have been taking the lead to create decentralized alternatives to traditional finance solutions.

In this section, we have compiled the most important DeFi use cases along with example apps for each.

Let’s see them!

1. Lending and Borrowing

Examples: Aave, Compound.Finance, Oasis

One of the most popular DeFi activities is lending and borrowing.

And for a very good reason.

Earlier in this article, we have shown how borrowing works on DeFi platforms, and we can safely conclude that it’s a rapid, efficient, and automated process that lacks any middlemen and allows borrowers to access extra capital in stablecoins within a few minutes.

However, it’s important to mention that DeFi loans are overcollateralized, meaning that borrowers have to deposit more collateral than the amount of funds they can borrow.While this may seem counterproductive at first, over-collateralization protects lenders against non-paying borrowers (as the collateral is automatically transferred to the lenders upon non-payment).

On the other hand, crypto-backed loans in DeFi allow investors, traders, and businesses to access extra capital – which they are free to exchange for fiat currency any time (e.g., to pay rent, utility bills, business expenses) – without selling their digital assets.

DeFi platforms issue loans from lending pools in which users deposit their cryptocurrency holdings (usually stablecoins). In exchange for contributing coins to a pool, lenders can earn interest on their tokens.

Interestingly, one of the reasons why DeFi lending has become so popular is due to the fact that users have access to much higher interest rates (usually ranging between 5-15% annually) than with traditional finance products (e.g., government bonds, savings accounts).

2. Decentralized Exchanges (DEXs)

Examples: Uniswap, Bancor, Kyber Network

A decentralized exchange or DEX is a peer-to-peer (P2P) cryptocurrency service that allows buyers and sellers to connect without intermediaries and the requirement to hold user funds in custody.

Instead of relying on centralized elements, decentralized exchanges execute trades automatically using smart contracts.

While DEXs are not new, they only played a minor part in the crypto space until the recent DeFi boom, which helped them gain ground against centralized exchanges.

A reason why decentralized exchanges initially lagged in adoption in the crypto community is because of issues with liquidity.

However, since DeFi solutions introduced liquidity pools, incentivizing users to contribute their coins in exchange for an interest, DEXs now have access to significantly more liquidity than before.

Furthermore, many decentralized exchanges have started supporting atomic swaps, in which crypto users can conveniently and instantly switch a token to another coin.

3. Derivatives and Margin Trading

Examples: Kwenta, Hegic, dYdX, Fulcrum

Cryptocurrency derivatives and margin trading have become increasingly popular in the industry.

In short, a “derivative” is a financial instrument that derives its value from the performance of an underlying asset, which can be anything from stocks and bonds to Bitcoin and DeFi tokens.

“Margin trading” refers to the practice in which someone uses borrowed funds to trade an asset, allowing him to secure higher potential gains (that also comes with greater risks).

While such products were only available for the public with centralized providers in the past, DeFi creators have recently introduced decentralized derivatives and margin trading platforms where users can trade assets without KYC and custody requirements.

4. Stablecoins

Examples: USDT, DAI, USDC

Stablecoins are cryptocurrencies that have their values pegged to a single or a basket of other instruments.

Although the underlying instrument can be virtually anything (e.g., other digital assets or commodities like gold and silver), most stablecoins are based on major fiat currencies, such as USD and EUR.

As their name suggests, stablecoins provide a solution to cryptocurrencies’ volatility issues by pegging them to assets that aren’t subject to extreme price swings to stabilize their value.

While their value remains steady, stablecoins can be held, used, exchanged, and transferred via blockchain networks just like any other digital asset.

Stablecoins play a key role in DeFi as they are widely used across lending, payment, and yield farming solutions.

5. Staking

Examples: Staked, Stake Capital, P2P Validator

Staking refers to locking up a part of a user’s cryptocurrency holdings to validate blocks and get rewarded for supporting the blockchain network.

Staking has the same purpose as mining in Proof-of-Work (PoW) networks like Bitcoin, in which miners leverage their computational power via specialized hardware to verify transactions and add new blocks to the chain.

However, validators in Proof-of-Stake (PoS) networks and their variants use their tokens instead of their computational power to validate blocks.

Unlike cryptocurrency mining, where miners have to purchase expensive equipment to get started, staking has no upfront costs for validators. For that reason, it is more accessible to users, and it has gained increased popularity in the digital asset space.

As only selected validators are rewarded, individuals and companies have created staking solutions to maximize their profit chances. As a result, users can make a similar passive income as in DeFi lending.

Although, it’s important to mention that while lending involves mostly stablecoins, staking requires locking up a project’s (non-stablecoin) token. This increases the risks of volatility but also the chance for increased returns (in case a staked coin’s value moves in a favorable way while being locked up).

6. Yield Farming

Examples: Curve, Harvest Finance, SushiSwap

Yield farming is a DeFi-exclusive activity that is widely popular in the industry, especially among those with a higher risk appetite.

Yield farming, also called liquidity mining, refers to using complex strategies to lend and stake digital assets throughout multiple DeFi protocols to maximize gains.

In its basic form, farmers deposit (lend) their funds into liquidity pools to earn rewards. However, in many cases, the platform issues a token to the user representing the coins he has lent to the pool (e.g., for lending DAI on Compound, users are issued cDAI).

Since users are free to utilize these tokens in other DApps, many yield farmers move them to other DeFi solutions to make an additional profit. And they may continue to do so with the coins they get on the second protocol.

However, as the most profitable strategies involve multiple (non-stablecoin) cryptocurrencies, they pose much higher risks to users than, for example, DeFi lending or staking.

7. Wealth Management

Examples: Argent, Trust Wallet, DeFi Saver

Cryptocurrency wallets have been around since Bitcoin’s launch in 2009, allowing users to store, receive, and send digital assets.

However, the original crypto wallets are very different from the ones we have now.

With the rise of the DeFi space, many cryptocurrency wallets have added a functionality that allows users to interact with decentralized finance applications.

Many DeFi-compatible crypto wallets now function as one-stop wealth management solutions by integrating multiple apps under one platform.

In addition to the basic features, users can now utilize their wallets to trade, swap, stake, yield farm, or lend cryptocurrencies.

Furthermore, some decentralized finance projects have created specialized wealth management apps that can be connected with DeFi-compatible wallets.

8. Payments

Examples: Lightning Network, Matic, Whisp, Request

In addition to a store of value, one of the first use cases of cryptocurrencies was for payments.

Since blockchain networks operate continuously without intermediaries, they offer global access to faster and cost-efficient payments to crypto users.

However, due to blockchain networks’ decentralized architecture, digital assets often struggle with decreased scalability and congestion.

Multiple DeFi projects are working on Layer 2 scalability solutions to fix this issue, allowing transactions to be processed on side-chains or off the main blockchain. As a result, users can have access to cheaper and more rapid transfers.

In addition to scaling solutions, other DeFi projects have created payment applications to facilitate efficient digital transactions for individuals and businesses.

9. Asset Tokenization

Examples: Neufund, Securitize, Polymath

Asset tokenization refers to the practice in which the rights for real-world or traditional finance assets are converted into cryptocurrencies.

Theoretically, there are no limits for tokenizing instruments. From artwork, in-game items, to real estate and commodities, anything can be “moved” to the blockchain to be represented by a token.

However, asset tokenization creates the most value when hardly accessible or illiquid instruments are converted into cryptocurrency.

As a result, such assets can be exposed to a larger market, making it much easier for users to buy or sell them.

For example, tokenizing private companies’ shares can be used to create a secondary market in which participants can easily exchange them. Real estate is another good example of an illiquid asset that can be improved by tokenization.

10. Insurance

Examples: Nexus Mutual, Etherisc, Cover

Insurance is among the most interesting applications of DeFi solutions.

It was not common to hear about insurance products other than traditional finance before the DeFi boom.

As some decentralized finance products involve increased risks, projects have created insurance products to protect investors against potential losses.

However, DeFi insurance solutions are very different from the ones in traditional finance.

Instead of a single firm providing the service – with the involvement of several sales agents and other intermediaries – decentralized insurance products are managed and offered by the community.

Interestingly, in addition to crypto-related activities and services, DeFi insurance products have been created around other, more general areas like flight delays and hurricane protection.

Is DeFi Safe for Investors?

At this point, you know what DeFi is, how it works, as well as its benefits and use cases.

Now let’s talk a little about the safety of the industry.

Whether DeFi is safe for investors is based on the strategies and the actual decentralized finance solutions used to generate potential profits.

For example, lending a stablecoin on a major, reputable DeFi protocol poses relatively low risks to investors as the loans’ over-collateralization protects them against non-paying borrowers.

Also, as stablecoins are subject to minimal volatility – especially when we compare them to DeFi tokens with small market caps – investors don’t have to worry about potential price swings that could eat up their profits.

On the other hand, using a complex yield farming strategy that involves lending, staking, or trading 3-4 different non-stablecoin tokens can come with very high risks.

For that reason, DeFi is definitely risky for investors who don’t do their own due diligence before using an app.

However, DeFi can be a safe investment for those who know how different smart contracts and DApps manage their money, refrain from utilizing overly complex strategies, understand the risks beforehand, and engage with only reputable service providers.

With that said, we have collected for review some of the potential challenges and risks of DeFi:

1. Smart contract bugs: As mentioned earlier, DeFi applications are powered by smart contracts, allowing both users and service providers to automate processes. However, everyone makes mistakes, including developers, especially in the case of complex smart contracts. Smart contract bugs are often hard to fix and can lead to potential exploits and investor losses.
2. Hacks: Unfortunately, errors in smart contracts are still common among DeFi projects. For that reason, hackers are increasingly targeting the space, aiming to exploit the vulnerabilities of projects.
3. Fraud: The DeFi space is yet to be regulated, and some projects are taking advantage of the current situation to scam investors with fraudulent schemes.
4. Future compliance issues: Currently, there is no regulation around DeFi. However, since the industry is growing rapidly, it is realistic to expect multiple governments to regulate decentralized finance in the near future. While effective regulation is definitely good for the space, DeFi users may lose some of their abilities, such as using solutions without submitting KYC and AML documents.
5. Impermanent loss: Impermanent loss is a unique term used in DeFi and applies to mostly yield farming activities. In short, an investor can face this risk while supplying liquidity to a pool. Impermanent loss occurs when a token in the pool grows in value and arbitrageurs step in and use the opportunity to make profits, reducing the liquidity provider’s gains. In such a case, an investor could have made a better profit by holding the tokens in the pool instead of supplying liquidity. If you want to learn more about impermanent loss, we recommend reading the following article.

How to Stay Safe in the Decentralized Finance Industry

Based on our findings in the previous section, we can conclude that the decentralized finance industry poses some risks to investors.

However, it’s definitely possible to stay safe while using DeFi services, and we have collected some handy tips to help you:

1. Do your own research before using an app: While this may be obvious, many people forget to do their own due diligence before utilizing a solution or investing in something. This advice is especially crucial for DeFi apps, as they often use complex mechanisms and business models to operate. For that reason, make sure you understand the strategies and the decentralized solutions used for investing to know your opportunities and risks beforehand.
2. Be cautious with solutions promising extraordinarily high rates: If something seems too good to be true, it probably is. For that reason, you should take DeFi projects promising excessively high returns (e.g.,1,000% gains in one week) with a grain of salt. When you find a new app, analyze how it works, do a background check on the developers, and see what others say to stay safe.
3. Check smart contract audits: Since smart contract bugs pose a high risk to the industry, DeFi projects often hire third-party firms to audit their code to find and fix potential issues and vulnerabilities. As a rule of thumb, you should refrain from using DeFi services without audited smart contracts. To get increased insight into a project’s safety, we recommend going through all audit-related documents.
4. Consider DeFi insurance products: Buying insurance for a DeFi product is a good way to protect your investment against possible cyber-attacks and smart contract failures.Stay away from projects with anonymous owners: While Bitcoin has proven itself a trustworthy project since its launch by the mysterious Satoshi Nakamoto, it doesn’t mean that you should blindly trust DeFi projects where core developers refuse to reveal their identities. On the contrary, you should be very careful as the risks of exit scams and other fraud is higher for solutions with anonymous dev teams.
5. Look for activity on GitHub: Since DeFi projects are open-source, their code and related developer activities are shared publicly on GitHub. For that reason, it’s possible to see the newest changes to the apps there. If a project hasn’t made any updates to the code in the past few months, it means that it has likely been abandoned by the team.

How to Get Started With DeFi

Now we have explored the industry’s essentials, let’s see how to get started with DeFi.

Step 1: Create a DeFi-Compatible Wallet

The first step to use a DeFi app is to create a compatible cryptocurrency wallet.

Argent and Trust Wallet are good examples that you can download as an app on your smartphone.

However, if you want to maximize your security, consider getting a hardware wallet from a reputable provider like Ledger or Trezor. Since hardware wallets are popular among crypto users, most DeFi applications support them.

After creating your wallet, you will be given a seed phrase. Since this crucial piece of information allows you to restore your account, it’s important never to share it with anyone.

Instead, you should write it down on a piece of paper and store it in a place you have exclusive access to. It’s also a good idea to keep it digitally on your computer’s hard drive in a secure location as well (never upload it to the cloud as it could compromise your security).

As a side note, some crypto wallets use their own security features for restoring accounts and may not offer seed phrase backups for customers. These solutions often use guardians (e.g., a hardware wallet, a trusted person, or a third-party service) to restore user wallets.

Step 2: Get Cryptocurrency

When your wallet is ready, it’s time to get some crypto to use for DeFi.

The easiest way is to purchase coins with fiat currency.

For that, we recommend using a trusted digital asset exchange (e.g., Coinbase, Kraken, Binance) where you have multiple options to purchase cryptocurrency with fiat.

The easiest and the fastest way to exchange fiat to crypto is via a credit or debit card, but this option is often more expensive than the others.

On the other hand, if you are comfortable waiting a few days until you can purchase crypto, bank transfers are a great option, especially when you can access domestic wire transactions.

It’s possible to get digital assets via other methods (even without spending a dime), such as by stacking sats.

For earning digital assets, we recommend checking out the next-generation, blockchain-based advertising platform Permission. In exchange for your data and time, you can earn native ASK cryptocurrency by engaging with advertisers’ ads.

Most importantly, you are the one in charge of whether and how advertisers can use your data on Permission.io.

You can spend your rewards for products listed in the Shop & Earn Store anytime to earn back up to 20% of your ASK purchases.

Oh, and we almost forgot: you can get 100 ASK for simply registering a new account at Permission!

Step 3: Connect to a DeFi App

When you have your coins ready in your wallet, it’s time to select a DeFi app to use.

On mobile, the connection between your wallet and the decentralized finance app is mostly established with WalletConnect, a service combining multiple wallet and DeFi solutions. Here, you have to scan a QR code with your smartphone’s camera to access the service or log into your account and authorize the DeFi app for desktop and web wallets.

The process is a bit more complex for hardware wallets as you have to plug your device into your computer and type in a security key for connecting to the DApp.

Don’t forget to confirm the connection in your wallet app to finalize the process.

Step 4: Deposit Funds

Once you have established the connection between your wallet and the DeFi service, you have to deposit funds to utilize it.

However, unlike with centralized exchanges, this deposit will go into a smart contract instead of the service provider’s accounts, which allows you to remain in custody and maintain control over your digital assets.

After initiating the deposit from the DeFi app, you will have to authorize it via your wallet.

Upon a successful deposit, you are ready to lend, exchange, borrow, stake, farm yield, or participate in other decentralized finance activities.

After ending your DeFi journey, don’t forget to withdraw your funds to your wallet.

DeFi Is Here to Stay

DeFi has empowered crypto with numerous new use-cases by providing a decentralized alternative to traditional finance products.

While there is significant demand for them, traditional finance services often operate inefficiently, lack transparency, need middlemen, and fail to provide access to many.

DeFi solves this issue by leveraging blockchain technology to provide a wide range of services, allowing users to manage their finances, access savings products with good rates, and borrow funds on their digital assets.

With such astonishing growth in recent months and new use cases and solutions appearing on the market every day, DeFi is definitely here to stay.

Notwithstanding their increasing popularity, DeFi solutions can come with high risks to investors. For that reason, we recommend everyone to do their own due diligence and follow the best practices to stay safe while taking advantage of decentralized finance’s benefits.

—

DeFi Frequently Asked Questions (FAQ)

1. How much money is in DeFi?

As of March 24, there is $40.82 billion of digital assets locked in DeFi apps.

2. What is decentralized technology?

Solutions using decentralized technology lack a central party (e.g., a company, institution, government body) from their networks that can exercise its authority over other users.

Instead, applications using decentralized tech are maintained by the community and governed democratically.

Blockchains and DeFi protocols are good examples of decentralized technology.

3. What is an example of a decentralized exchange?

Examples of decentralized exchanges include:

1. Uniswap
2. Kyber Network
3. Bisq

For more examples and to learn more about decentralized exchanges, we recommend reading the following article on the Permission blog.

4. Are banks centralized or decentralized?

Banks and the banking network operate on a centralized basis.

Financial institutions have full control over their governance, products, networks, services, as well as who can get access to their solutions.

While the DeFi industry is growing rapidly, decentralized banks are yet to appear on the market or gather widespread attention among users.

Functionally speaking, what is Permission?

Permission is a medium. A medium that connects brands and consumers. That is all.

Permission is a new kind of medium, but there have been many other kinds of mediums before it. Long ago, books were one of the most common mediums. After that, radio, then TV, and finally the voluminous hosts of mediums that have popped up on the Internet, like blogs, Facebook, forums, YouTube, and much more. And Permission is now one of these mediums.

Yet it was once famously said by Marshall McLuhan, “The medium is the message.”

Don’t be afraid. This may seem like some deeply cryptic philosophizing at first, yet it is actually surprisingly simple to unpack. What McLuhan really means when he says this is that:

“The way that we send and receive information, is more important than the information itself.”

Let that sink in for a second.

Have you ever caught yourself endlessly scrolling through Instagram and simply lost track of time? When you eventually awake from your fugue state, you will likely have forgotten 99% of the content that you consumed. Yet you will invariably be left with the distinct feeling of “FOMO” impressed by the medium itself. That is what McLuhan means when he says, “The medium is the message.” The underlying messages of Instagram are: “You need to travel more. You need to be more popular. You need to be more beautiful. You need to have a more interesting and exciting life.”

And these mediums that we engage with actually change the way we behave. A person who spends their whole day on TikTok may be more likely to seek attention and immediate gratification than one that just listens to Podcasts, because those implied messages have burrowed their way into your subconscious. Take this in contrast to an older medium, like books. Books are a calm, understated medium that requires proficiency in linguistics. Books invite you to spend a great deal of time to fully digest the content therein. The underlying message of books is: “Dedicate yourself and be rewarded with deep understanding.”

As you could have guessed, each new medium which has caught on over the past several decades seems to have brought with it a more distressing and demanding message. Just as Radio was supplanted by TV, and TV by the Internet, we have grown slowly accustomed to being barraged with messages from others who seek to influence us. No matter which modern medium we turn to, we receive the messages that trust is elusive and that we are relatively worthless.

So, what then is the message of Pemission?

Practically speaking, it is a direct link between brands and consumers. Permission ditches the parasitic data harvesting model used by tech giants. Instead it gives you sovereignty over your own data and enables you to monetize it for your own benefit. It feeds you branded content, but rewards you in ASK and never intrudes without your consent.

Therefore, the messages of the Permission medium are:

1. We respect you and your boundaries
2. Your time and engagement are valued
3. You are in control and choose who you interact with
4. Spend a little time with us, but then move on to what you want to do
5. By committing to transparency, our good intentions shine through
6. We want to build trusting relationships with each other
7. Over time, we can symbiotically help one another

In short, Permission is a desperately needed medium carrying a uniquely refreshing message – This is not the digital advertising that you know. This is digital advertising on your terms.

Amid these uncertain times, people are increasingly looking for new ways to make money.

And, with the booming cryptocurrency market, you have more chances to earn Bitcoin than ever.

Fortunately, as the digital asset market’s infrastructure is rapidly developing, opportunities abound for you to earn bitcoin as a source of extra income.

However, it’s nearly impossible to make a considerable income from bitcoin without investing your funds or putting in the effort to achieve your goals.

While there are multiple ways to earn free Bitcoin, you have to be ready to spend the time to make a decent income.

In this article, we have collected the best ways to earn Bitcoin and other crypto for free, and methods that require you to invest some of your funds to make money.

How to Stay Safe While Earning Bitcoin

Before we take a look into the best ways to earn Bitcoin, it’s crucial to talk about staying safe while making an income with BTC.

As mentioned earlier, you have to dedicate either time or money to earn considerable amounts of cryptocurrency.

There is no way around this.

For the same reason, when you see people claiming that their “secret methods” allow you to earn over $1,000 in BTC every day without any effort, you can almost instantly tell that these posts are outright scams or they are not telling you the full truth.

Unfortunately, many scams and fraudulent schemes in the cryptocurrency industry exploit people who are looking to earn free Bitcoin.

Scammers often impersonate famous persons – such as Elon Musk – or prominent companies to advertise fraudulent “giveaways,” encouraging people to send BTC to their wallet, promising that they will send back double the amount.

Obviously, these addresses do not belong to Elon Musk or other famous persons, and you won’t get back any of your coins after sending them to the scammers’ wallets.

With that said, many people are falling victim to these scams.

To avoid getting scammed while earning free Bitcoin, it’s essential to do your due diligence before taking any risks. Below, we’ve included some tips to stay safe:

1. Remember the golden rule: “If the opportunity seems too good to be true, it probably is.”
2. Check external, independent sources for reviews, comments, and feedback from users.
3. Do a background check on the company or person advertising the method for earning. Are you dealing with a registered company or a real person? Or is it a fake name made up by scammers?
4. Sometimes, scammers are not (directly) after your money, but instead are looking for your data. You should never disclose sensitive personal information to anybody unless you are 100% sure that you can trust that person or company.
5. To stay safe, you should always check the documents you sign and the terms you accept.
6. Even if you find a genuine method to earn Bitcoin, you should analyze its risks and ensure that you never risk more money than what you can afford to lose.

The Top 6 Ways to Earn Free Bitcoin

Now, after ensuring you are protected against scammers and fraud, it’s time to take a look at the best ways to earn Bitcoin!

1. Bitcoin Faucets

Overview

Maybe the oldest way to earn free Bitcoin is to use a BTC faucet. A Bitcoin faucet is a website that regularly distributes small amounts of BTC, allowing visitors to earn cryptocurrency for free.

The concept of Bitcoin faucets originates from early cryptocurrency advocates who gave away a part of their digital asset holdings to facilitate the crypto industry’s adoption.

While there are still some faucets without requirements to earn free Bitcoin, most of these solutions now require certain conditions that you have to meet in order to claim your digital assets.

The requirements can vary from completing surveys and interacting with advertisements to downloading the creators’ applications.

Upon completing these tasks, you have to specify your BTC address, where the operators will send your free Bitcoin.

While some faucets limit earning opportunities to a single occasion, others allow you to generate free BTC on multiple occasions.

Risk

Unless a faucet requires users to provide sensitive personal information or download a malicious app, the risks for earning Bitcoin by this method are very low.

Effort Required

You don’t need to put in too much effort to earn Bitcoin with faucets. Even if you have to meet some conditions to claim free BTC, completing these requirements is quite easy.

Earning Potential

As they are extremely popular among crypto enthusiasts and operators only distribute small amounts of BTC, the earning potential of Bitcoin faucets remains very low even for those who are willing to spend significant time to claim their free coins.

Pros

1. Free method to earn Bitcoin without investment.
2. Good introduction for those who are new to cryptocurrencies.
3. Minimal risks involved.
4. Requires minimal effort to claim free BTC.

Cons

1. Earning potential is very limited.
2. Most BTC faucets require users to complete tasks to earn free Bitcoin.

Where to Get Started

1. Cointiply: One of the most popular Bitcoin faucets where you complete tasks to earn BTC.
2. Bitcoinker: Roll dice to earn Bitcoin every five minutes.
3. BTC Clicks: Earn BTC by clicking on ads.
4. Satoshi Quiz: Take quizzes to generate a crypto income.

2. Crypto Cashback

Overview

As we have discussed in our Stacking Sats guide, cryptocurrency cashback programs are an excellent way to earn Bitcoin.

Similar to rewards programs on the traditional market, multiple cryptocurrency projects have introduced solutions that allow users to earn cashback on their purchases in BTC.

Crypto cashback programs work in a simple way. First, you have to install the creator’s browser extension or app and register an account with the service. Then, you can start shopping at the creators’ partner stores where you can earn a percentage of your order back in cryptocurrency.

It’s important to mention that some crypto cards allow users to earn a cashback on all of their purchases. However, these projects often require users to stake, i.e., lock up a part of their coins for a certain period, the creators’ tokens.

Risk

Like with Bitcoin faucets, the risks are very low for earning crypto cashback rewards. However, we should emphasize that you have to spend money to earn BTC with this method.

Effort Required

You only have to dedicate time to installing the creators’ apps, selecting the stores where you spend your money, and earning Bitcoin cashback in return.

Earning Potential

As you gain only a small percentage of your purchase back as Bitcoin cashback, no matter how much you spend, the earning potential remains low for crypto rewards programs.

Pros

1. A good way to earn crypto while spending at partner stores.
2. Low risks involved.
3. Minimal effort required.

Cons

1. You need to spend money to earn BTC.
2. Earning potential remains low even if you spend large sums at partner stores.

Where to Get Started

1. Lolli: Install a browser extension and earn up to 30% Bitcoin cashback at partner stores.
2. Fold: Use the creator’s app to get back up to 20% of your purchase as BTC cashback.
3. MCO Visa Card: Stake CRO tokens to earn up to 5% crypto cashback on all your purchases.

3. Cryptocurrency Mining

Overview

Cryptocurrency mining is one of the oldest and most popular ways to earn Bitcoin.

To mine Bitcoin, you have to continuously operate specialized equipment, dedicating your computing power to maintain the blockchain network. In exchange for supporting the network, Bitcoin miners receive block rewards and a share of transaction fees.

While you only needed a simple desktop computer to become a miner during the early Bitcoin era, you have to source expensive, specialized hardware to maintain a profitable crypto mining business today.

Since cryptocurrency mining is a rather energy-intensive process, you have to also take electricity costs into account when calculating your profits.

Risk

As it requires an upfront investment and has ongoing costs to cover equipment, energy, and other expenses, crypto mining is certainly not a free way to earn Bitcoin.

Therefore, there are high risks involved, especially when bitcoin prices are falling (as you earn less in these periods).

Effort Required

In addition to higher risks, you need to dedicate time to learn the ropes of cryptocurrency mining, including setting up your equipment and operating your rig to earn BTC.

Alternatively, crypto enthusiasts can choose to purchase cloud mining contracts. In cloud mining, the service provider operates the mining equipment on behalf of the customer.

While cloud mining requires little effort, the earning potential is much lower than for standard cryptocurrency mining (as service providers often operate with high fees).

Also, as the industry is highly targeted by fraudsters, you need to be extra careful with cloud mining service providers.

Earning Potential

If you are willing to dedicate some time and take high risks, cryptocurrency mining can be a lucrative business.

Pros

1. With the necessary skills, effort, and investment, cryptocurrency mining has good earning potential.
2. You earn Bitcoin while supporting the network.
3. Cloud mining requires limited effort from your side.

Cons

1. You need to invest money into crypto mining before you can earn BTC.
2. High risks, which are even higher for cloud mining contracts.
3. You need to dedicate much of your time to learn the ropes and maintain the equipment.

Where to Get Started

1. Bitcoin Mining Calculator: Calculate the expected income, expenses, and profit of your crypto mining business.
2. Bitmain: The largest cryptocurrency mining equipment manufacturer.
3. Genesis Mining: Popular Bitcoin cloud mining service.

4. DeFi Lending

Overview

Decentralized finance or DeFi has become one of the hottest topics in the cryptocurrency space. In short, DeFi refers to the movement where cryptocurrency projects create decentralized, blockchain-powered alternatives to traditional finance solutions in the form of DApps (decentralized applications).

Currently, you can choose from various DeFi products, ranging from borrowing and lending to insurance and decentralized exchange solutions. Nowadays, DeFi lending solutions are the most popular products on the market.

Instead of going through the tedious process of credit checks and submitting numerous documents to banks, DeFi lending solutions allow users to borrow funds against their cryptocurrency holdings in a near-instant way via smart contracts.

In exchange, lenders receive interest on their funds for contributing cryptocurrency (usually stablecoins like DAI) to the pool, often yielding higher returns than traditional finance solutions (e.g., savings accounts).

Risk

Most DeFi lending platforms operate in a completely decentralized way, meaning that the service provider has no custody over your funds.

Also, smart contracts are responsible for issuing loans to borrowers and providing interest to lenders.

While this eliminates the risk for human error, cryptocurrency loans are overcollateralized. This means that the borrower’s collateral value exceeds the value of the funds you lend to him.

Suppose the lender fails to pay back the interest or the value of his collateral decreases to a specific level. In that case, the smart contract will use the collateral to automatically repay you the sum the borrower owes you.

Unless you use non-stablecoin digital assets for lending (as you have to take volatility into account in that case), there are only small risks involved in the process.

Effort Required

Besides purchasing, exchanging, and transacting crypto to your wallet, you don’t need to put much effort into earning with DeFi lending.

Earning Potential

While interest rates vary, you can usually earn between 2-15% annually by lending your stablecoins to borrowers on DeFi platforms.

The more funds you lend, the better your revenue will be.

Pros

1. You can usually earn better interest on your funds with DeFi solutions than with traditional savings accounts.
2. Only limited risks involved when lending stablecoins (e.g., DAI, USDT).
3. Smart contracts eliminate human error while overcollateralized loans solve the issue of non-paying borrowers.
4. No custody of your funds.

Cons

1. You need to make an investment to earn Bitcoin with DeFi products.
2. Risks are higher for using standard, non-stablecoin cryptocurrencies (e.g., BTC, ETH, LTC) for lending.

Where to Get Started

1. Maker DAO: Decentralized organization and ecosystem featuring leading DeFi lending solution.
2. Compound: Earn interest on your stablecoins by lending them to the decentralized finance ecosystem.
3. Aave: Open-source and non-custodial money market protocol where you can earn interest on various cryptocurrencies.

5. Staking Crypto

Overview

Cryptocurrency staking is also a good way to earn Bitcoin. And with the rise of the DeFi industry, there are more options to stake crypto than ever.

The concept of staking is very similar to cryptocurrency mining. In blockchain networks based on the Proof-of-Stake (PoS) consensus algorithm, validators confirm transactions and maintain the ecosystem by staking cryptocurrency.

In practice, staking means that you lock up some of your coins for a specific time, and the network will choose between you and other stakeholders to verify the next block. If selected, you will earn rewards for validating blocks.

To maximize their chances, users have created staking pools where stakeholders lock up their funds in the pool together, sharing the rewards among participants upon successful block validation.

Risk

While staking is similar to DeFi lending, the risks are a bit higher for the former.

Usually, projects require you to stake standard, non-stablecoin cryptocurrencies. This means that your staked coins could be subject to excessive price movements while locked up in your wallet.

And, as you need to lock them up for a specific period, you won’t be able to sell them (or interact with them in another way) to avoid losses.

Also, some service providers require users to utilize their own wallets for staking digital assets, which can involve higher risks if those wallets lack the necessary security features.

Effort Required

Most staking pools do not require much effort from the stakeholders’ side as you only have to transfer your coins into a wallet and lock them up for a specific time.

Earning Potential

Your staking rewards are based on the coin you choose to lock up and the pool you use for staking.

Pros

1. You can earn a passive income on your cryptocurrency.
2. No need to interact with your coins once they are locked up in your wallet.
3. Based on the service provider and the coin you stake, the earning potential can be high.

Cons

1. High risks involved mainly due to market volatility.
2. Keeping coins at dedicated staking wallets involves higher risks.

Where to Get Started

1. Trust Wallet: Crypto exchange Binance’s official wallet that allows you to stake different digital assets.
2. Coinbase: Leading digital asset exchange that also features a staking service.
3. Staked: Non-custodial staking service supporting a wide variety of cryptocurrencies.
4. Everstake: Staking service platform where you can earn a 5-20% annual interest on your coins.

Beyond Bitcoin: ASK, a New Crypto You Can Earn While Engaging with Advertisers

Most people see traditional advertising as annoying rather than as an opportunity to earn rewards, and for a valid reason.

Ads running through the advertising networks of tech giants – such as Google and Facebook – continuously bomb consumers with offers while they are trying to enjoy their favorite online activities.

In this traditional model, consumers don’t get anything in return while advertising networks use consumers’ data to increase their profits.

To solve this issue, Permission.io has created a blockchain-based advertising platform where consumers are in charge of their data. In exchange for providing permission to receive targeted offers and engage with advertisers, consumers are rewarded in Permission.io’s ASK cryptocurrency.

To get started, simply create an account or add the Permission Browser Extension to Chrome to begin passively earning crypto as you surf the web.” In exchange for providing permission to receive targeted offers and engage with advertisers, consumers are rewarded in Permission.io’s ASK cryptocurrency.

Permission.io users can use the digital assets they earn to shop at the Permission.io Store and eventually other 3rd-party eCommerce sites.

While users can earn 100 ASK for registering an account at Permission.io, they are also rewarded in cryptocurrency for referring friends.

If you are interested in earning ASK by sharing your time and data, we recommend checking out the official Permission website.

It’s Time to Earn Free Crypto

From mining cryptocurrency and lending your coins to engaging with advertisers, it’s easier now to earn Bitcoin and other cryptocurrencies than ever.

However, as we have mentioned earlier, it’s crucial to stay safe as scammers and fraudulent projects are actively targeting the cryptocurrency space.

It’s also important to remember that you can only earn BTC by dedicating your funds, time, or both.

And usually, the more effort you put into a method, the higher your potential will be to earn.

Disclaimer: The content of this blog is for general informational purposes only and is not intended to provide specific advice or recommendations for any individual or on any investment product. It is only intended to provide education about the cryptocurrency industry. Nothing in this post constitutes investment advice or any recommendation that any cryptocurrency or investment strategy is suitable for any specific person. Further, there is no guarantee that any cryptocurrency discussed in this article will have any value at any given time. Do your own research thoroughly before making any investments of any kind.

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It’s probably not the career path your mother would have chosen for you, but maybe it’s time for her to reevaluate.

Video games have become a titan in the entertainment industry over the last few decades, with the market peaking at $35.4 billion in 2019 revenue. For context, that’s more than three times the revenue made by the music industry and 83% of the money made by the movie industry in the same year[*].

You’re probably familiar with some of the ways you can make cash playing video games, with major streamers like Ninja making serious cash and eSports being aired on ESPN, but did you know there are ways you can take your favorite hobby and play video games for cash — even outside of a professional context?

While pursuing a professional career is an option, you don’t have to be a major league gamer to pad your savings account while you’re waiting for your next doctor’s appointment or when standing in line at the DMV.

There are so many ways to make money playing video games, but most of them aren’t worth it. We’ve done our research and pulled out the options that are worth considering. We tell you the honest truth — what you choose to do with it is your decision.

Some of these have the chance to be lucrative, most do not. Some follow more traditional career paths, others involve an entrepreneurial spirit. Some pay you immediately, others require content and time investment.

Take a close read through to figure out which option is best for you.

1. User Test Video Games for Large Video Game Developers

It’s not surprising once you stop and think about it, but every game ever released needs to be tested. Think of it like writing a book, except that the sentences aren’t linear. Someone has to playtest every aspect of a game before its release, and companies like Blizzard, EA, and Ubisoft all employ full-time and contracted video game testers.

The money can be better than you think. Video game testers can easily earn $50,000+ a year, but keep in mind this is a demanding, full-time position. You aren’t just lazily playing video games. Here’s an idea of what you would be doing:

1. Carefully performing “matrix” tests to “break” a game – e.g. exploiting balancing strengths and weaknesses in a MOAB game.
2. Writing down articulate and meticulous thoughts around new versions and the issues you encountered. You can’t say, “The game was choppy”. You’d have to say something more along the lines of, “Version 1.32’s load time between cutscenes clocked in at 12 seconds, which is much longer than the 4-second benchmark we established”.
3. Attend meetings and relate your findings to the developer team.
4. Staying on top of bug fixes and reminding the team to resolve them.

Another common complaint is the lack of upward mobility. Where do you go from being a user tester? Well, the answer is nowhere concrete.

How to Get Started

Check out some job boards and see if any positions are available.

Here are some companies that offer user-testing positions:

1. Nintendo: How cool would this be? The only catch is you have to live in Redmond, Washington since it’s where their American headquarters is.
2. Blizzard: User-testing jobs at Blizzard are hard to find, but you may be able to snag one if you keep a close eye on it.
3. Rockstar: Same idea here. These jobs don’t come up often at Rockstar but you may be able to pick one up if you’re lucky. And remember these are legitimate jobs and should be treated seriously.

2. User Test Video Games via Smaller Third-Party Testing Sites

There are also generalized video game sites where you can sign up to test all sorts of games. Some of these require you to take voice and video recordings as you play them, others don’t. It’s essentially a product testing platform and the jobs depend on the various video game designers’ needs.

How to Get Started

Start enrolling and checking out gigs on a few user-testing sites.

Here are few third-party user testing sites to get you started:

1. Beta Testing: Beta Testing was previously known as Erli Bird, and it’s a general platform for businesses to hire users to test their apps, games, and software.
2. UserTesting: Similar to Beta Testing, this site has a broad set of user testing opportunities but video game gigs do show up from time to time.
3. PlaytestCloud: This is a mobile app testing site, so you can find mobile games to test here. On their site, they mention that pay varies, but they give an example of a $9 test for 15 minutes of playtime.

3. Use Mistplay or Other Mobile Apps

There are a couple of mobile gaming apps that make their cash through ads and user data while paying users for their time. You’ll have to play what they want you to, but if you aren’t too picky then these apps could be good for you. You won’t make more than a few bucks a month, but it’s not a bad way to spend downtime.

How to Get Started

Download a few mobile gaming apps and see which one you enjoy the most.

Here are a few mobile gaming app options:

1. Mistplay: Play games and earn cash. This is best for mobile gamers who don’t mind opting in to play random games. You won’t get more than a couple of bucks a month, though.
2. Bananatic: Online platform where you play for points that you can redeem for gift cards and other offers.
3. AppNana: A mobile reward app that gives you rewards for completing small tasks and playing games. You can then redeem them for Xbox gift cards and other prizes.

4. Use Sites Like Swagbucks or InboxDollars

If you aren’t picky about the video games you play and are interested in a generalized approach to spending downtime, then Swagbucks and InboxDollars are two of the “make money online” juggernauts to consider.

Both services are pretty similar. Basically, you create an account, fill out some basic information about yourself, and then there are a wide variety of ways you can collect “bucks” or “cash”. These options include taking surveys, watching ads, playing games, and much more.

You won’t make anywhere near a liveable income from these sites, but they are good options to have around if you’re bored and looking for ways to gamify your discretionary spending.

How to Get Started

Fill out an account on either Swagbucks or InboxDollars and start playing some games!

Here are few links to “make money online” sites:

1. Swagbucks: The biggest player in the “make money online” space. You can do everything from play games to watch movie trailers to fill out surveys and turn earned points into cash.
2. InboxDollars: This service is very similar to Swagbucks, and many people mix and match between the two. Take a look at the video game options on both sites and see which ones are more fun.

5. Make a Youtube Channel or Twitch Stream

This is the most popular way to make money with video games at the moment. Just like your last Los Angeles Uber driver, you could consider starting your own Youtube Channel or Twitch Stream.

Isn’t that extremely difficult? Well, yes. Of course. Being successful as an online video gamer and streamer requires at least one of these three of these skills, if not all:

1. A particularly good knack for video games.
2. A charismatic personality.
3. A unique spin and/or special attention to production value.

Just opening up a streaming account and starting isn’t enough to get people to stick around. You need a hook. That can either be your ability to play, the way you have fun while you play, the way you present the material, or any of the above.

How to Get Started

Take some time to think critically about how to approach your Youtube or Twitch channel by using the advice below:

Take a close look at existing streamers. What could you do differently? How can you make video games entertaining outside of just playing them? What about you can become your unique value proposition? Think carefully before investing your time here, most people don’t make it.

Here are some major streaming sites to think about starting on:

1. Twitch: The ultimate video gaming streaming site. The competition here is difficult, but you won’t find a platform with a wider potential audience.
2. YouTube Gaming: YouTube’s live streaming is good but not as robust as Twitch’s, but it also allows you to post compilation/other types of video game content and ultimately build a broader channel than Twitch.
3. Dlive: A newer blockchain streaming service that focuses on audience building and community rewards. This one is bound to be less saturated than the others.

6. Enter Tournaments

One skill-based opportunity is playing in tournaments. Large games like Overwatch, Apex Legends and Fortnite regularly host tournaments.

If you are aiming (wordplay intended), for a skill-based entry into the video game market, then you need to prove to others (and yourself), that you have what it takes to win. Start training and start competing. If you don’t see meaningful progress and aren’t seeing results after a period of pursuit, consider moving on.

My advice on this is two-fold:

1. Choose a game with longevity to invest in. Considering how long StarCraft II has been around, there is a decent chance StarCraft II will fizzle out over the next few years. That means it’s probably not the best time to start skilling up.
2. Choose a game that has existing hype or the potential for growth. Ideally, you will catch a wave like Ninja did with Fortnite.

How to Get Started

Find an upcoming tournament with players you know are around your level, start practicing, and get to work.

Here are a few video game tournament sites:

1. Battlefy: BattleFy hosts a bunch of Rocket League, League of Legends, and Hearthstone tournaments, but it also has a lot of depth with the types of tournaments you can enter in. The competition is tough but the prizes are high!
2. Gfinity Esports: Gfinity tournaments are extremely competitive and run by a well-respected company within the gaming world.
3. WorldGaming: WorldGaming is a huge network of tournaments that has a variety of smaller and big tournaments you can compete in. If you want to get your feet wet, this is a good choice.

7. Consider Becoming a Video Game Coach

If you have some sort of professional record in the video games space, have an entrepreneurial spirit, don’t mind selling yourself, and are a good teacher, then you could look into becoming a video game coach.

The niche is small but growing, and if you can position yourself around certain video games and also build in essential networking and life-skills training apart from the pure “wins” results, then you may have a business opportunity on your hands.

How to Get Started

Take a hard look at your credentials and see if this path makes sense and if you want to give it a shot. Then, start thinking like an entrepreneur using the advice below.

Your best bet from a marketing perspective is either wealthy college kids or upper-income parents with kids interested in pursuing this full-time. Your approach will need to change according to the demographic you’re pursuing, and always remember whose pocketbook will be paying you.

I’d also pick up some Business 101 books to make sure you understand exactly what you’re getting into.

Here are a few sites you can use to start finding clients:

1. Gamer Sensei: You have to apply to be a Sensei and give a bit of your cut to this site, but they will provide you with students if you get accepted.
2. Fiverr: Fiverr is a general freelancing site that you can bid for contracts on. Set up your profile and start bidding for jobs!
3. Facebook Gaming Groups: After you’ve set up your online site and portfolio via LinkedIn etc., you could join gaming groups, get involved in those communities, and then start making connections with aspiring players.

8. Write Video Game Articles or Reviews

This is more of a long play to build an audience, but if you love writing and reviewing games, then you should consider publicizing and monetizing your work. You can do this via two main ways:

1. By pitching to existing gaming publications.
2. By building up your own channel/brand specifically built around video game reviews.

Each option comes with its own challenges. If you are pitching to publications, you need to send ideas, articles, etc. that are an exact fit for their brand. Remember, people are lazy — the key to networking is to reduce the friction required for anyone to do what you want them to do. If you can pitch an article at the right time that’s perfectly on brand, then you may open some doors and get paid for your article.

To get an idea of how to cold-email journalism sites and land gigs, check out Toby Howell’s incredible cold email sequence, which he used to land a job at one of the most prominent email newsletters out today, Morning Brew. It’s brilliant and well worth the read if you plan on pitching articles to anyone anytime soon.

If you’re looking to build your own channel or audience, whether it’s directly or adjacently related to video games, then there are a few ways to think about it. You either need to:

1. Approach video game reviews in a style that feels “fresh” or new. This can involve a certain ploy or brand feature (e.g., always including a video game developer on your reviews) or by having your own video production style.
2. Use an approach that’s popular but do it better. This is very difficult to do and requires a lot of expertise or time developing that expertise.

In reality, it’s very difficult to make a significant income writing video game reviews and articles, so your best bet is to look at it as a passionate side hustle.

How to Get Started

Start writing and reviewing video games publicly and either use them to pitch to existing publications or post them directly on your own platform.

Here are a few publications to pitch to and reviewers to emulate:

1. IGN: IGN is a powerhouse player in video games journalism. Remember to make your pitch as specific and actionable as possible. Good luck!
2. Polygon: Polygon is an entertainment review and news company that is always up to hear good pitches from freelancers. Use this link to review their submission guidelines.
3. Mandalore Gaming: Mandalore Gaming is a great example of a one-person shop for video game reviews. Check out how well they review games and conduct audience building.
4. Gameranx: Gameranx is an even bigger Youtube operation than Mandalore Gaming, and they specialize in compilation and “tips and tricks” videos. Take a look through their top videos to get some inspiration for your own channel.

Bonus: Expand Your Definition of “Getting Paid to Play Video Games”

What about avenues that don’t directly involve playing video games? As we mentioned, the video games industry is massive, so if you enjoy video games, I encourage you to look beyond strictly playing video games for money.

You could:

1. Become a video game story writer
2. Edit scripts for video game dialogue
3. Conduct research for a team
4. Market video games
5. Become a video game developer

There are tons of options once you open this angle up. Yes, this doesn’t involve pwning noobs for $100k/year, but on the other hand, the world is your… kirby?

Plus, working alongside your passion instead of in it is often a good way to preserve your joy and love for it. It’s easy to get burned out on something you love once it’s your actual job — just ask any musician after a long touring leg!

The Bottom Line on Getting Paid to Play Video Games

If you’re looking to make a few extra bucks in your downtime, then there are definitely options for you to make money playing video games. Check out sites like Swagbucks and Mistplay and use them to pick up some extra cash in time you’d normally be wasting anyway.

Heck, you could even use the money you earn from those to buy major releases you’re really looking forward to playing.

And if you’re looking to make it big in video games, that’s fine to pursue — just make sure you’re strategic about it and recognize that most people aren’t able to make a living playing video games. Fortunately, there are all sorts of fun and interesting ways to build video games into your life

‍Permission is changing the internet as we know it by paying users for sharing their data while browsing the web instead of allowing advertising companies to use it for free. Check out their Browser Extension which lets you passively earn crypto as you use the internet.

See how we’re giving the power of data ownership back to the people.

There has been some discussion lately about recent changes to our platform related to the earning and distribution of ASK. In this post, we’ll provide the rationale for these changes in keeping with our commitment to operate with full transparency and also to clear up any confusion on the part of our members.

First, the minimum amount of ASK required in ‘pending’ before it can be transferred to a user’s wallet has been increased to 50,000. Our experience after having hundreds of thousands of users interact with the platform has revealed that Permission’s off-chain operational costs for executing potentially millions of withdrawal transfers in minimal amounts is unfeasible. Instituting this limit will decrease the frequency of these withdrawals, reducing our operational costs.

We are working diligently to bring on new advertisers and content partners to generate revenue that could potentially support these operational costs. So far, our business development effort and reception from advertisers has been extraordinary. Preliminary discussions with prospective partners consistently validate our premise; that is, that the future of advertising will be permission-based.

Still, we are very early in the launch. We need time to demonstrate performance capabilities and grow the platform. As we expand the advertiser ecosystem, we expect this threshold number to change. In addition, we are rolling out very soon many new ways to earn that can accelerate the time it takes for active members to transfer.

Speaking of earning, we’d like to address two frequently asked questions related to 1) the maximum amount of ASK that can be earned per day by watching videos and 2) the amount of ASK earned per video.

Since launch, we have released additional earning mechanisms (“My Data,” “Open & Earn,” etc.), which required an adjustment to the amount earned per video. As we continue to roll out new earning opportunities, we will be regularly adjusting the amount of ASK earned for performing certain tasks, and such amounts will vary depending on how much earning is happening on the platform at any given time. The max number of earn events per day, and the amount of ASK you can earn from each engagement, was never meant to be fixed.

We are proud to share some astonishing metrics about how active our member base has become. Last month, users averaged more than 10 minutes on-site and watched over 80,000 videos per day. This is increasing daily as our user base grows. Again, as advertiser demand for ASK increases, we anticipate that both the amount earned per day and per earn event will surely change.

We recognize that many people may be frustrated by these changes. Please understand that these are growing pains which are ultimately good for the project and the whole community. We are very excited about how things are progressing and want you to know that the best way that you can contribute to the success of Permission is by referring your friends. The more members that sign up and the more widely distributed ASK becomes, the more the utility of ASK grows.

We hope that this post addresses many recent questions that we have received from the community. As a long-term, mission-focused project, we need to implement certain policies to ensure the integrity of ASK for the benefit of all participants in the network.

Feedback on these changes is welcomed, and we look forward to providing additional updates soon.

GDPR took the internet by storm in 2018. You may remember that day when your entire inbox was flooded with privacy policy updates, or perhaps your business decided to expand its reach to the EU, and you were reminded that GDPR compliance had to be sound before beginning.

GDPR is the most impactful modern internet privacy law to pass in recent history. At its core, it is designed to protect internet users from exploitative data collection and breaches, and GDPR aims to give users more control over their information while forcing companies to adopt proactive data security and transparency habits.

We’re going to cover what any business owner, user, or marketer needs to know about GDPR. Consider this piece your foundation. Whether or not you choose to dig deeper will be determined by your needs.

Let’s get right to it.

What Is GDPR?

GDPR (General Data Protection Regulation) is a data protection law from the EU, and it’s dense — there are over eleven chapters and 99 articles. This can make it difficult for companies and users to understand, but its goal is to protect the personal data of users, modernize data collection, establish clear directives for data transparency, and give people more choice over what personal data they share.

GDPR is a replacement for the EU’s previous law, the Data Protection Directive (DPD), which was passed over two decades earlier in 1995. Think of GDPR as the modernization and expansion of DPD. DPD couldn’t have predicted the intricate and expansive ways data is used today, and it badly needed updating.

What Countries Does GDPR Apply To?

The law applies to any companies operating in or out of all EU member states and Ireland, Liechtenstein, Norway, and Switzerland.

Who Does GDPR Protect?

GDPR protects any of the users in the member states and additional countries. What’s important to note is that it protects those users regardless of whether the company targeting them is based in the protection zone or not. In other words, it protects users from any company worldwide that decides to do business with the users of those states.

Let’s look at that a bit more.

Who Has to Follow GDPR?

Any company that targets EU citizens must adhere to GDPR. That goes for companies based in EU countries but also any other company (including U.S. companies) who target or work with EU citizens in any internet-based capacity.

Let’s look at a few examples of companies that have to follow GDPR standards:

1. A U.S. eCommerce company using ads to retarget users from France.
2. A digital clothing company based in Brussels that collects information for shipping and fitting.
3. A digital subscription newsletter collecting email addresses in the EU.

Now, let’s look at a few examples of companies that wouldn’t have to follow GDPR standards.

1. A Brazilian coffee distributor selling bags on its own website, which is in Portuguese. Even if someone from the EU found it and bought from it, because the company isn’t actively pursuing EU citizens, it shouldn’t apply unless they were using advertising to bring EU users to their site.
2. A U.S. landscaping service that merely has their contact information on the site and doesn’t do any business in the EU. Because they aren’t collecting any EU user information, GDPR doesn’t apply. Any business that isn’t collecting or processing information in any form or fashion is exempt, although that is extremely rare.

Even though GDPR passed in May of 2018, companies have had since 2016 to prepare for GDPR. But even with that runway, following GDPR at first proved to be confusing and nebulous. Many companies struggled to understand exactly what was demanded of them, and many are still at risk of GDPR non-compliance.

Does Brexit Impact GDPR?

No. The UK government has decided to continue operating under GDPR law even after leaving the EU. In other words, treat the UK just like you would any other country protected by GDPR.

Now that we know the scope of GDPR, let’s talk more about what it protects: personal data.

What Personal Data Actually Means

Directly from the source, here is what GDPR means by “personal data”:

The data subjects are identifiable if they can be directly or indirectly identified, especially by reference to an identifier such as a name, an identification number, location data, an online identifier or one of several special characteristics, which expresses the physical, physiological, genetic, mental, commercial, cultural or social identity of these natural persons.

In practice, these also include all data which are or can be assigned to a person in any kind of way. For example, the telephone, credit card, or personnel number of a person, account data, number plate, appearance, customer number, or address are all personal data.

That’s a complex way of saying any type of data that can be used to trace back to an identity is considered personal. This is purposefully broad — that way the law doesn’t need to be updated as often.

In modern practice, this includes data like:

1. Shipping information
2. Billing information
3. User behavior
4. Cookie data
5. Pixel Data
6. Purchase behavior
7. Name
8. Phone Number
9. Geographic data and history
10. Demographic identifiers
11. And more.

What Rights Do Users Have Because of GDPR?

GDPR gives additional privacy rights to users, and when these rights are violated companies can be held liable.

Here are the main rights users are guaranteed and that serve as the basis for GDPR compliance:

1. The Right to Be Informed

Users have the right to know what is and what will be collected by companies before the data is processed (collected).

2. The Right of Access

Users have the right to see any data that a company collects. This service must be delivered within a month and must be free.

3. The Right to Rectify (Correct) Information

Users have the right to submit a request to fix inaccurate data.

4. The Right to be Forgotten

Users have the right to withdraw their data consent and request that all data about them be deleted.

5. The Right to Restrict Data Processing

Users have the right to object to data processing and limit how their data is used.

6. The Right to Data Portability

Users have the right to collect their own data and have it delivered to them in a readable format that can easily be transferred to a different company.

7. The Right to Object

Users always have the right to object to specific data collection and marketing mechanisms that use that data.

8. The Right to Breach Disclosure

Users must be informed if their data has been breached within 72 hours.

For a complete list of user rights, here’s a direct link to the appropriate GDPR chapter.

It is the duty of the company to honor these rights effectively. The processes and practices companies have in place to honor these rights are the basis for GDPR compliance evaluation.

And as a user, you have these rights, so if a company is taking advantage of them, you have the full power to report them. Although in many cases a company (especially a small business) may not be aware, so reaching out to them first to talk about it before lawyering up is usually the best first step.

If it’s a major beach and you are whistleblowing, then you can file a complaint here.

What Happens if You Break GDPR?

GDPR stipulates that national authorities have the power to issue fines and limit data processing when GDPR regulations are breached.

According to the fines and penalties section of GDPR, severe violations can result in fines of up to 20 million euros OR up to 4% of the total global turnover of the preceding fiscal year, and smaller violations can still reach 10 million euros or 2% of global turnover.

The six biggest GDPR fines issued so far have been:

1. British Airways – 204.6m Euros
2. Marriott International Hotels – 110.3m Euros
3. Google Inc. – 50m Euros
4. Austrian Post – 18.5m Euros
5. Deutsche Wohnen SE – 14.5m Euros
6. 1&1 Telecom GmbH – 9.5m Euros

Many of these fines were a result of breaches or failing to disclose exactly how companies would use user data when onboarding users.

And while GDPR fines tend to only make headlines when targeting big businesses, GDPR applies to all businesses, both small and large.

The point is, the EU is devoted to making GDPR a standard, and they have shown that they will hold businesses accountable to it.

How Are the Levels of Fines Determined?

There is a multitude of factors that determine how a fine is calculated, and the GDPR text outlines a few factors:

1. How widespread the damage is
2. What kind of personal information was released (in the context of a breach)
3. How quickly the company fixed it
4. The fidelity of the fix
5. The Intention of the violation
6. How prepared the company was for the violation
7. Was the company proactive in data protection practices?
8. Did the company cooperate effectively and quickly with all parties?
9. Did the company notify users of the damages as quickly as possible?

There are more specifics than these, but essentially the data protection board and officers in charge of issuing fines will be looking at how honest and proactive companies were before, during, and after a breach or violation. If at every step in the process a company was doing their best and had proof of that, then the fines will be lower. If the company clearly exhibited negligence, then the fines will likely be steeper.

In Practice: How to Approach GDPR Compliance

Companies must show good faith by achieving initial data compliance and then by incorporating GDPR principles into every part of their operation.

If you own or are in charge of GDPR for your business, then you need to make sure data collection is transparent, legal, and secure in every part of your business.

GDPR compliance must become a fundamental part of your operation. With every new product, you need to make sure data is being collected appropriately. GDPR compliance is about having a plan and devoting resources to actualizing that plan. If you are familiar with the world of PCI compliance in payment processing, GDPR compliance is somewhat similar.

In order to become officially compliant with GDPR, you may have to request a DPO (data protection officer) to oversee your data collection practices, although this is only necessary for companies processing large amounts of data OR if your company’s core business model relies on data collection.

   Here’s what the legislation says on that directly:

Contrary to popular belief, decisive for the legal obligation to appoint a Data Protection Officer is not the size of the company but the core processing activities which are defined as those essential to achieving the company’s goals. If these core activities consist of processing sensitive personal data on a large scale or a form of data processing which is particularly far-reaching for the rights of the data subjects, the company has to appoint a DPO.

In other words, most businesses are fine simply following best practices for compliance, but if you fall under the definition above then you need to reach out and request a DPO.

GDPR compliance is ongoing and can only be the result of consistent effort. It is not a short checklist you can complete and move on. It must become fundamental and be a result of consistent, recurring tasks, and effort.

With this in mind, here are actionable guidelines you can incorporate to maintain GDPR compliance.

Core Guidelines of GDPR Compliance for Businesses

There is no perfect guide for GDPR compliance. It is a collection of efforts unique to each company designed to protect the privacy rights enshrined in GDPR. That being said, there are guidelines and best practices that are standardized across modern businesses.

Here are the major ideas of GDPR compliance, and then we will cover specific steps in the following section.

1. Data transparency, fairness, and lawfulness. Are you actively open and lawful with your data collection and storage?
2. Put limits on how and why you collect data. Do you have scheduled processes to remove old and unused data? How can you build the best product using the most specific and least demanding data collection practices?
3. Only collect the minimum necessary for your operation. If you don’t need it, then don’t collect it.
4. Devotion to data accuracy. How are you ensuring your data is clean and accurate for each individual?
5. Data security. How are you protecting against breaches? How does encryption play into your strategy?
6. Data deletion and portability. Can users easily delete their data? Can they request their data and then give it to someone else?
7. Data consent. Is your consent for data accessible and easy for users to understand? Is your service still usable without it? Are you transparent on what you collect and easily give users the ability to opt-out?
8. Privacy by design. Are safety and design fundamentally built into your product?
9. Data simplicity. Is it easy for users to understand what data you’re collecting? Can they collect for themselves and understand it?

These are the questions that make up a unique and effective GDPR compliance plan. The burden is on companies to build them into their own workflows.

6 Steps to Start Your GDPR Compliance Journey

It’s easy for GDPR to feel overwhelming. Here are a few ways for you to take action today.

Step 1: Start With an Analysis

Outline every aspect of your business that uses data and why. Examine how it’s collected and where it’s stored, and then make sure user rights are protected at every step. Clear opportunities to consent and opt-out must be present at every point.

Step 2: Create a Breach Contingency Plan

Your company must report a breach within 72 hours, and every minute that goes by after a breach will be scrutinized by officials. Make sure you have a specific plan to stop and disclose a breach.

Step 3: Log Everything You Do Around GDPR Compliance

As we said earlier, proof of ongoing effort toward GDPR compliance is critical to remain compliant and reduce fines. Create a centralized location for your efforts and log everything you do in detail.

Step 4: Ensure Partners Are Actively Working Toward Compliance

Even if a breach happens through third-party software, your business could be liable. It is your responsibility to evaluate the trustworthiness and security of your partners. Choose wisely!

Step 5: Create a Checklist for New Products, Operations, and Decisions

Anytime your business grows, makes a new product, or collects new data, it needs to be incorporated into your GDPR efforts. Make sure GDPR is in every conversation.

Step 6: Schedule Ongoing GDPR Training by Department

Make sure your tech teams, marketing teams, security teams, product development teams, and anyone else involved with data has scheduled GDPR training. This is one of the best bits of proof you can hand to data officers to show you have been proactive.

The Bottom Line on GDPR

The General Data Protection Regulation is the biggest modern user privacy law in existence. It is designed to make data security and fidelity the norm in companies and give users more agency over what data they give up and why — while also giving them protected rights to opt-out, remove, and object to any sort of data collection by internet companies.

While the GDPR can seem like a burden on businesses, it gets easier as you develop your own systems and is crucial to creating an internet ecosystem that users can rely on safely.

GDPR is an important step for user privacy, but there is so much more we can do.

GDPR is a good start, but it’s a band-aid for a flawed system. The best kind of internet is one where users have complete control over data and are compensated for it directly (and automatically). Companies make money from your data — why shouldn’t you?

See how Permission is making that dream a reality.

While decentralized exchanges (DEXs) only played a minor role in the crypto industry a year ago, their volumes exponentially increased over the past few months.

From January’s $280 million, the monthly volume of decentralized exchanges surged to nearly $22 billion in September, representing a Year to Date (YTD) increase of over 7,700%.

In addition to occasionally surpassing leading centralized exchanges, DEXs are continuously growing their market share. According to a recent report, the spot trading volumes’ ratio on DEXs compared to centralized exchanges reached 6.06% in August after hitting 3.95% in July.

Based on the above data, DEXs can soon become worthy competitors to centralized exchanges that have been ruling the crypto trading space for a very long time.

But what is the reason behind the rise of decentralized exchanges?

We will find out in this article along with all the essentials about DEXs.

What Is a Decentralized Exchange (DEX)?

A decentralized exchange or DEX is a peer-to-peer (P2P) cryptocurrency service that directly connects buyers with sellers.

As the connection between the parties is direct, there are no middlemen involved in the process. Due to the lack of third parties, DEXs often feature lower fees than centralized crypto exchanges.

One of the most important features of decentralized exchanges is that they take no custody of customer funds.

Contrary to their centralized counterparts, you are in control of your private keys on DEXs. This means that, upon a successful hacker attack against the exchange, malicious parties won’t be able to steal your digital assets via the data they acquired from the service provider’s servers (as your wallet credentials are not stored there).

Also, while centralized exchanges require their users to create an account, submit Know Your Customer (KYC) and Anti Money-Laundering (AML) documents, most DEXs allow their customers to remain (semi-) anonymous while trading cryptocurrency.

Despite what their name suggests, aspects of the DEX solution are only partly decentralized. Such services often include centralized elements, such as order books, central servers to host the platform, and mandatory KYC checks.

Although, some DEXs maintain a high decentralization level with blockchain-based trading services supported by cryptocurrency miners. And, as web-based services could come with increased levels of centralization, some exchange solutions create their own decentralized applications (DApps) for trading.

Still, no matter how decentralized they are, a DEX never controls the users’ private keys or funds.

How Do Decentralized Exchanges Work?

How decentralized exchanges work depends on the solution you use for cryptocurrency trading.

Many DEXs do not support fiat currencies, allowing only crypto-to-crypto trades on their platforms. Due to the lack of national currencies, most decentralized exchanges don’t have to comply with regulations, which allows the solutions to offer services without KYC checks.

Smart Contracts and Trading Accounts

On a decentralized exchange, trading is either fully automated or semi-automated via smart contracts.

Simply put, a smart contract is a computer code that executes a digital agreement between two or more parties automatically if its conditions are fulfilled.

To start trading, users have to either connect their (external) wallets or create a new account (verification is needed for regulated services) to deposit cryptocurrency.

Market Makers and Takers

Most trading platforms include market makers and market takers.

While makers create buy or sell orders that aren’t fulfilled immediately (e.g., they only sell BTC when the Bitcoin price reaches $20,000), takers execute their orders instantly (e.g., they sell their BTC at the current price). Market makers create liquidity, and their orders are filled by takers.

When a market maker creates a new order for a trading pair on a DEX, a cryptographic hash is generated, which is signed with the market maker’s private key.

The order is either sent to the blockchain or off the chain with the maker’s signature.

When a market taker trades against the maker’s order, both the corresponding order data and the signature is sent to a smart contract.

Upon verifying that the signature originates from the maker, the smart contract ensures that the order is not filled or expired.

If all conditions are met, the smart contract automatically exchanges the funds, takes the trading fees, and transfers the funds to both parties’ wallets.

DEX Withdrawals and Atomic Swaps

After a successful trade, users can withdraw their exchanged funds to external wallets outside the DEX’s platform.

Alternatively, some decentralized exchange solutions (especially in the DeFi space) allow crypto users to utilize their own wallets for trading, without requiring them to deposit or withdraw their funds.

These platforms utilize atomic swaps – an instant cryptocurrency trade without third-party involvement – allowing users to connect their own (external) wallets to the service to create and execute trade orders.

How Did Decentralized Exchanges Become So Popular?

Earlier in this article, we mentioned that decentralized exchanges did not play a significant role in the cryptocurrency industry until the past few months.

But what’s behind the popularity of decentralized exchange services?

Reason 1: Major Issues With Centralized Exchanges

First, centralized cryptocurrency exchanges have earned a rather bad reputation while dominating the digital asset trading industry.

As they control the private keys of their customers, centralized exchanges hold user funds in their custody. Because of this reason, upon a successful attack against their services, hackers can steal the traders’ funds by obtaining their private keys.

As a result, there have been many high-profile cryptocurrency exchange hacks with devastating consequences since the industry’s inception. For example, the infamous $460 million Mt.Gox hack shook the crypto industry so much that the BTC price decreased by 45% between February 1 and March 31, 2014.

And attacks are not the only way centralized cryptocurrency exchanges have lost their customers’ funds in the past. In December 2019, the Canadian digital asset exchange, QuadrigaCX, allegedly lost $190 million from cold wallets that only the company’s deceased CEO had access to.

Whether the business’ claims were valid, we don’t know. However, centralized exchanges have long struggled with fraud, wash-trading, weak security, improper customer fund management, and a lack of transparency.

While many centralized providers have made major changes to their services to feature a regulated solution with moderate to high levels of transparency and decent security, their past mistakes have led to the rise of decentralized exchanges.

Despite that DEXs are not hack-proof – as attackers can still exploit flaws in smart contracts – their decentralized infrastructure eliminates single points of failure as well as limits the risks of user funds loss and fraud.

In addition to a higher security level, decentralized exchanges also feature increased privacy, transparency, and interoperability with other blockchain-based applications.

Reason 2: The DeFi Boom

The second reason why DEXs have become so popular is due to the rise of the decentralized finance (DeFi) space.

DeFi refers to a movement within the cryptocurrency space where developers build blockchain-based, decentralized alternatives to centralized financial solutions.

From lending and borrowing to insurance and tokenized assets, DeFi solutions eliminate the middlemen and bureaucracy to make finance more accessible, efficient, and democratic for users.

Based on recent stats, the DeFi industry has grown exponentially in the past few months.

Compared to January 1’s $676 million, the total value locked in decentralized finance applications is standing at $10.91 billion at the time of writing this article, representing a YTD surge of over 1,500%.

With DeFi’s growth, there’s a higher demand for DEXs among crypto users, which many creators have integrated with their decentralized finance applications to expand the ecosystem.

Furthermore, next-generation DEXs like UniSwap and Kyber Network allow cryptocurrency enthusiasts to exchange their coins in a few seconds without leaving their wallets while preserving full control over their funds.

What Are the Pros and Cons of Decentralized Exchange Platforms?

Now that you know the basics of decentralized exchanges, let’s see what the pros and cons of DEXs are:ProsConsDue to the lack of custody, users are in full control over their fundsIncreased control comes with greater responsibility since DEXs are not able to restore access to users who have lost or forgot their credentialsUsers possess their private keys, which eliminates the risk of a single point of failureWhile DEXs feature increased security, flaws in smart contracts can still result in loss of user fundsIncreased security and transparencyDEXs often feature lower liquidity than centralized exchanges and have to use DeFi pools to improve their liquidityMost decentralized exchanges are blockchain-based and automate trades via smart contractsA part of DEXs use centralized components for trading and often move transactions off the chainNo need to create an account or submit KYC/AML documents (in most cases)Some decentralized exchange solutions request KYC/AML documents from users as DEXs face increased risks of regulatory crackdownsNo middlemen involved in the processIntegration with other DeFi applications and services

Where to Trade Crypto: The Top 5 Decentralized Exchanges

Decentralized exchanges are on the rise, and they provide several benefits to crypto enthusiasts.

But which DEX should you use for trading?

We will find out in this section where we listed the top 5 decentralized exchanges currently on the cryptocurrency market!

1. ViteX

Launched in 2019, ViteX is a relatively new decentralized exchange on the cryptocurrency market.

However, despite being a new player, ViteX is growing at a fast rate, ranking in the 110th place among the top digital asset exchanges and featuring an over $700,000 24-hour trading volume.

According to its creators, ViteX is a truly decentralized exchange that uses its own high-performance blockchain for order matching, asset management, and cryptocurrency trading.

With every process running and published on the project’s public chain, ViteX seeks to provide a high level of transparency to its users.

ViteX features its own native token, VX, mined exclusively by the decentralized exchange’s community. Users can mine VX in multiple ways, such as staking, trading, referring, and market-making, to earn rewards on the platform.

What’s interesting about ViteX is that the decentralized exchange distributes all trading fees to the community based on the amount of VX each member holds.

ViteX also features a unique role in the community called the operator. Operators can run their own mini decentralized exchanges (called zones) on top of ViteX to set up new trading pairs and earn transaction fees from users who trade in their zones.

For every transaction on the platform, ViteX charges a base fee of 0.2%. However, if a user trades in an operator’s zone, he could pay an up to 0.2% additional fee (0.4% in total with the base fee).

Permission, the next-generation blockchain-based advertising platform, has listed its native ASK coin on the decentralized exchange.

2. Uniswap

Uniswap is an Ethereum-based decentralized liquidity protocol that allows users to swap ERC-20 tokens via its DEX solution.

What’s so special about Uniswap is that it doesn’t require buyers and sellers to create liquidity, eliminating a significant issue decentralized exchanges face.

As part of an open-source solution, Uniswap doesn’t rely on order books or other centralized components to facilitate cryptocurrency trading.

Instead, Uniswap utilizes a model called “Constant Product Market Maker” and operates through smart contracts to create liquidity pools. Users trade against these pools, which are supported by liquidity providers who deposit their tokens in the pool.

In exchange for maintaining liquidity pools with their coins, providers receive a share of trading fees based on the proportion of their tokens in the pool.

As long as there is a liquidity pool for the coin, any ERC-20 token can be listed on Uniswap without permission from the service providers.

To trade on Uniswap, crypto users only need an Ethereum wallet they can connect to the decentralized exchange.

3. Kyber Network

Like Uniswap, Kyber Network is another “DeFi unicorn” that features a decentralized liquidity protocol and allows crypto users to exchange coins instantly via smart contracts.

For instant cryptocurrency swaps, Kyber also utilizes liquidity pools. However, unlike Uniswap, which focuses mainly on end-users, Kyber Network seeks to cater to various participants of the cryptocurrency market.

A typical participant is a cryptocurrency project with a native platform token.

Suppose a user doesn’t hold that specific coin. In that case, he has to register an account at a cryptocurrency exchange, transfer his digital assets there to convert them, and then withdraw the project’s token to his wallet.

It’s a long, tedious process that can discourage some users from utilizing a specific crypto service.

Kyber solves this issue by allowing crypto services to integrate its protocol into their platforms, allowing customers to instantly exchange their coins to the project’s native token.

In addition to supplying projects with liquidity, crypto projects can use Kyber to accept transactions in numerous tokens, but receive the payment in their preferred coin to their wallets.

While Kyber Network supports instant swaps for several tokens, the DeFi solution aggregates liquidity from multiple sources to provide the best rates for traders.

4. Bisq

Bisq is an open-source, decentralized cryptocurrency exchange that features its own DApps (iOS, Android, and desktop) for trading.

Bisq is governed via a decentralized autonomous organization (DAO). This means that the DEX is not maintained by a business but the community itself to achieve a high decentralization level.

An exciting feature of Bisq is that it is built on top of Tor, a highly anonymous network, to make the decentralized exchange truly censorship-resistant and private.

Bisq provides a high level of security and privacy to its users by offering a non-custodial crypto exchange service as well as featuring security deposits, 2-of-2 multisig escrow, and a decentralized human mediation and arbitration system to prevent fraud.

Despite the lack of account creation and KYC/AML checks, Bisq allows users to exchange both crypto and fiat currencies privately.

For this, the DEX uses a similar process as the peer-to-peer exchange Localbitcoins, where traders have to choose between other users’ offers (instead of automatic order matching).

However, while Localbitcoins is a centralized exchange, Bisq operates on a fully decentralized nature, without any central servers to store user data.

5. ShapeShift.io

For users who seek a non-custodial cryptocurrency exchange with fast coin conversions and an easy-to-use interface, ShapeShift is a good choice.

You select the coin you want to purchase, the digital asset to use for the transaction, and the amount of cryptocurrency to buy. ShapeShift then provides you with an address to deposit your crypto.

After you have successfully deposited, the service will automatically convert your coins and send them to your wallet.

While ShapeShift is considered a DEX, it features a lower level of decentralization than the previous services we listed.

Because of this reason, you have to create an account with the service to exchange cryptocurrency and submit KYC documents to verify your identity. As a result, ShapeShift transactions are not as private as with the other DEXs.

Also, ShapeShift holds user data on centralized servers and uses multiple off-chain processes for trading cryptocurrency.

On the other hand, you can take advantage of the DEX’s 24/7 customer support as well as rapid, user-friendly service.

For each transaction, ShapeShift charges a 0.50% spread as well as a miner’s fee. However, you can eliminate most fees if you hold the company’s native FOX token in your wallet.

How to Trade on a Decentralized Exchange?

By now, you know how a DEX works and what the best services are. The next step here is to explore how to trade on a decentralized exchange.

Below, you can find a short but comprehensive step-by-step guide for purchasing on ViteX, one of the top decentralized exchanges on the crypto market.

Step 1: Download the Vite App

To get started with ViteX, you have to create an account with the service (no need to submit KYC documents) or connect a compatible wallet (e.g., Ledger).

While ViteX features both a web platform and native apps (iOS, Android, Windows, Mac), you have to download and install the application on your device to create an account.

To do that, use the following link or click the “Log in” button near the top right corner of the trading platform, and head to “Create an Account.”

On the next page, you can find the QR codes (for mobile) or links (for desktop) to download and install the Vite App.

Step 2: Create a ViteX Account

Once you are done with the installation, it’s time to open the application.

Here, you need to click “Log in” and the “Create an Account” button again. On the next screen, fill out the form with your login credentials (make sure to choose a strong password).

After you are ready, the service will generate you a mnemonic seed, which you can use to restore your ViteX wallet.

Important: Write down (either physically on a paper or in a doc file on your computer) your seed and store it in a safe place you have exclusive access to. Don’t share it with anyone as it could compromise your security and may result in a loss of funds.

When you are ready with your seed phrase backup, click the “Submit” button to proceed.

Step 3: Deposit Funds Into Your Wallet

When your ViteX account is ready, it’s time to deposit funds into your exchange wallet.

To do that, click the wallet icon near the top left corner of the page, select BTC, and click the blue “Deposit” button next to it.

After you click “Confirm and Proceed” on the pop-up, ViteX will display your wallet address. Scan the QR code (for mobile) or copy the address and paste it into the wallet you will use for sending funds.

It’s essential to double-check (or even triple-check) your wallet address to ensure that you are transferring your coins to the correct place.

When you are ready, initiate the transfer, and wait for miners to process your transaction (ViteX BTC deposits need two confirmations). Unless the network is congested, this shouldn’t take longer than an hour or so.

Step 4: Trade Crypto on ViteX

When your Bitcoin has arrived in your ViteX wallet, the next step is to click the trading icon on the top left side of the page and select your preferred coin pair (e.g., ETH/BTC) under the “Exchange” menu.

On the next screen, you will see a chart as well as a form to submit your order to buy the cryptocurrency (ETH in our example) with your BTC.

Specify the price you are willing to pay for each token as well as the total amount of coins to purchase.

When you are ready, click the green “Buy ETH” button to submit your order. ViteX will then match you with a seller, execute your trade, and deposit your newly purchased tokens into your wallet.

Decentralized Exchanges: The Solution to Trade Crypto Without Middlemen

With the rise of the DeFi industry, decentralized exchanges have been increasingly popular in the cryptocurrency space.

Due to their decentralized nature, DEXs provide increased security, transparency, and privacy to users who are looking to find a solution to the common problems of centralized exchanges.

From ViteX to Bisq, it’s not hard to find a decent decentralized exchange solution on today’s crypto market.

—

FAQ

Is Coinbase a decentralized exchange?

No, Coinbase is a centralized exchange where the service provider controls the users’ private keys.

Unlike with decentralized exchanges, Coinbase users have to create an account with the service and verify it by submitting different KYC and AML documents. Because of this reason, it is not possible to trade cryptocurrency anonymously (or privately) on Coinbase.

Why is an exchange decentralized?

A cryptocurrency exchange can be decentralized for a wide variety of reasons.

With a decentralized exchange, users have full control over their funds, which decreases the risks of losing funds due to a hacker attack. Also, many DEXs use blockchain technology and smart contracts to automate trading, increase transparency, and provide a high privacy level to their customers.

What is an example of a decentralized exchange?

A good example of a decentralized exchange is ViteX that uses its own blockchain to match buyers with sellers.

Instead of utilizing centralized servers, ViteX is maintained by miners who receive rewards for supporting the DEX’s ecosystem.

While you have to create an account to get started (unless you can connect a compatible wallet), you don’t need to submit KYC or AML documents for verification, allowing ViteX customers to trade cryptocurrency privately.

Congrats! If you’re reading this, you’ve likely signed up to become a Permission member, earned some ASK and are now ready to access your coins.

We are happy for you and are very proud to be the platform that helps you earn from your valuable time and data. Our goal is to make ASK simple and delightful to earn and use.

In this article, we’re going to show you how to transfer your pending ASK to your wallet.

After you’ve completed KYC, your Permission wallet will display the following message:

“Identity Verification is complete. Pending ASK will be available to transfer into your wallet upon final verification.”

You will receive a notification to the e-mail address associated with your Permission account once your account has been fully verified.

After final verification is complete, your wallet will now display a “Transfer to Wallet” button just below your Pending Balance:

Click on the “Transfer to Wallet” button.

A prompt will appear that allows you to enter the amount of ASK you wish to transfer:

In this example, we will transfer 200 ASK:

After entering the amount you wish to transfer, click, “Transfer.”

After you’ve initiated the transfer, your wallet screen will indicate that the transfer is in progress:

This should take just a few moments.

Upon successful transfer, your Wallet Balance will be adjusted to reflect the amount transferred:

Voila!

You can see the details of your transaction in your History:

Now, you are ready to HODL, exchange or SPEND your ASK on thousands of products from your favorite brands on our very own Shop & Earn.

If you experience any issues with transferring your ASK, please submit a support ticket.

At Permission, our goal is to help you earn from your data.

Instead of your personal data being exploited by tech giants, we ensure that you are rewarded for the data you share while searching, shopping and consuming content on the web.

Our innovative platform allows you to receive crypto rewards for your data while keeping your personal information anonymous to advertisers.

Come back often to earn and spend on Permission.io. And, don’t forget that referring friends and family is a simple way to earn and also helps us grow our Permission community! A growing community benefits all network participants and is how we’ll together create a more transparent and trustworthy internet.

As well as being core values of Permission, transparency and trust are important aspects of all cryptocurrency businesses. While the current Internet has always been dominated by businesses whose operations are opaque and deliberately hidden in the shadows, the advent of the blockchain holds out the promise of something refreshingly different.

Permission.io sees itself as part of a new generation of businesses that has such values at its foundation and which will help to define a more evolved Internet.

Nevertheless, this refreshing new world approach has been tarnished by examples of fraudulent behavior from a few cryptocurrency companies. In addition to that, the cryptocurrency world has also proved to be a natural target for hackers and bad actors. And whenever they succeed in their criminal endeavors, unwelcome publicity ensues.

Thus in the minds of some people, cryptocurrency businesses are suspect. A company that is helping to change this is Messari.

Messari: A Standard For Transparency

Messari states its company mission with the following words:

We want to help investors, regulators, and the public make sense of this revolutionary new asset class, and are building data tools that will drive informed decision making and investment. We believe that crypto will democratize access to information, break down data silos, and ultimately give everyone the tools to build wealth.

Messari delivers a means of measuring the transparency of cryptocurrency companies. It developed its own set of methods for computing metrics (over 100 quantitative metrics) and to classifying assets (15+ qualitative classifications) for such companies.

It also provides the Messari Disclosures Registry, in the form of an open-source database that can be accessed by anyone.

Permission and Messari

Permission.io, along with more than 60 other cryptocurrency businesses, has been verified against the Messari transparency index. You will find our registry details at https://messari.io/asset/permission. Messari updates such details regularly.

As soon as we became aware of Messari, its methodology, and the disclosure registry, we were keen to participate and thus we have subjected ourselves to Messari’s standardized test for assessing the truthfulness and completeness of our project’s transparency. We consider Messari to have established itself as the natural standard for due diligence and research in the cryptocurrency sector.

Messari’s methodology enables individuals and organizations to compare “like with like” when investigating businesses in this space. Studying its methodology and the indexes it uses is an education in itself.

We are proud to be included in Messari’s registry of transparency-verified companies, alongside other leading and well-known crypto companies such as Blockstack, Waves, Dash, Cardano, Ethereum Classic and Zcash.

No matter where you go, you are being constantly bombarded with ads.

You see them on the streets while you are walking to your favorite café, before watching movies in the cinema, and when you read the latest news on your smartphone.

Sometimes, we can’t blame businesses for these tactics. Many earn their revenue by placing advertisements on their apps so people can use them free of charge.

Nevertheless, others grab every possible chance to increase their profits by displaying tons of annoying ads in their apps, which provides a horrible experience to users.

Loading too many ads on smartphone and tablet devices – like the iPhone and iPads – drains the devices’ battery quickly while using increased mobile data.

Some consumers choose to support their favorite content creators by interacting with advertisements in their apps. But no one can blame those who decide to block ads on their devices to restore the user experience and the privacy advertisers have taken away from them.

Fortunately, users can set up ad blockers on their smartphones to eliminate the ads and trackers in the apps they use and on the websites they visit. And even if you use an ad-block solution, you can still support your favorite content creators by whitelisting their apps or websites.

What Is an Ad Blocker for iPhone or iPad?

Before we take a deep-dive into showing you the best ad blockers for iPhone and iPad, let’s first see what ad-block software is for iOS.

The most basic version of an iOS ad blocker eliminates ads, trackers, and other intrusive content from the web pages you visit via your browser (mostly in Safari) on iPhone and iPad devices.

On the other hand, advanced ad-block software can even prevent ads from showing in most apps on your smartphone, providing a (near) ad-free experience to iOS users.

Ad blockers for iPhone and iPad devices use different methods to get rid of ads.

The first and most common way is to identify the advertising content on a web page or in an app and replace it with something else before it gets displayed on the user’s device.

Other solutions completely disable these requests, leaving broken links or holes in the places where you would normally see the ad.

One of the most effective methods to block ads on smartphone devices is to encrypt the user’s DNS traffic via a local VPN, allowing the iOS ad blocker to work in all (or at least most of the) apps on the device.

As a result, an iOS ad blocker allows you to have an ad-free experience while playing your favorite games, browsing the web, or using your favorite apps on your iPhone or iPad device.

Also, since you load much fewer advertisements, ad blockers may increase the device’s performance while decreasing your energy consumption and data usage.

Furthermore, as ad-block solutions disable malicious ads and trackers, they also help keep your smartphone device more secure against cyber attacks and fraud.

Now that you know the basics, let’s see the best iOS ad blockers for iPhone and iPad devices.

1. AdGuard for iOS

Overview

AdGuard is a prominent multi-device (iOS, Android, Mac, Windows, web browser) ad blocker solution that offers system-wide protection.

Based on the version you choose, the ad blocker blocks ads, trackers, and other intrusive content either in Safari or in all apps on your iPhone or iPad device.

In addition to a 4+ average rating on TrustPilot, numerous recommendations on forums and social media, independent review sites have been considering AdGuard as one of the best ad blockers for iOS devices.

As a side note, we have also included AdGuard on the top of our list of best Android ad blockers.

How It Works

The basic version of AdGuard allows you to block ads in the Safari browser.

If you choose the basic AdGuard, it will operate as a simple content blocker that works similarly to ad-block extensions for desktop browsers.

However, instead of installing directly from your browser’s extension marketplace, you have to download the AdGuard application from the App Store to set up the ad-block software on iOS devices.

It’s important to mention – and this will apply to all ad blockers that work in browsers only – that Apple only allows simple content blockers to operate in Safari without support for other browser apps like Chrome or Firefox.

Therefore, if you are looking to block ads in other iOS browsers, we recommend setting up an ad-block solution that offers system-wide protection against advertisements.

In Safari, AdGuard uses regularly-updated filters to screen the websites you visit and remove advertising content as well as different web trackers from the pages.

On the other hand, the pro version of the iOS ad blocker includes a DNS protection module that encrypts your DNS traffic to achieve higher levels of privacy.

With DNS protection enabled, AdGuard sets up a local VPN to block ads and web trackers in Safari and also in other apps on your iPhone or iPad device.

Whether you use the basic or the Pro version of the app, AdGuard allows you to customize both the blacklisted (the sites where you block ads) and the whitelisted (the websites where you allow ads) domains within the ad-block software’s interface.

Cost

As mentioned earlier, iOS users can choose to use either the basic AdGuard software or AdGuard Pro.

While the basic version is free, AdGuard Pro is a paid subscription that offers advanced features, such as DNS protection, custom filters, and security filters, for iPhone and iPad users.

Pros

1. While the basic version eliminates ads in Safari, AdGuard Pro eliminates advertisements and other intrusive content on the entire iOS device
2. Excellent reputation, great user feedback, and recommendations from independent review sites
3. Multi-device support (iOS, Android, Mac, Windows, web browser extensions)
4. Ample options for customization
5. A paid subscription allows you to utilize AdGuard Pro on multiple devices

Cons

1. To achieve system-wide protection against ads on iPhone and iPad, you need a paid AdGuard Pro subscription

2. Wipr

Overview

If you are looking for a minimalistic ad blocker for iPhone or iPad, Wipr is probably your best choice.

However, unlike AdGuard’s pro version, Wipr only blocks ads on Safari. Therefore, if you want to disable ads on your entire system, you have to use an alternative iOS ad-block solution. Also, the app doesn’t offer too many options for customization.

But in exchange, you get a simple app you can use easily to block browser ads in iOS without amassing too much of your smartphone’s system resources.

How It Works

From this list of best iOS ad blockers, Wipr features the easiest setup process.

After downloading the application from the App Store, you only need to tap a button to get the ad-block software up and running.

By doing so, Wipr will block all trackers, ads, crypto miners, EU cookie, and GDPR notices, as well as other disturbing content when you are browsing the web with Safari or other apps that use Safari to display web pages.

In addition to saving you time with the easy setup process, Wipr automatically updates its blacklist in the background to provide up-to-date protection against intrusive web content.

Apart from its simplicity, what we like the best about Wipr is that the service provider refuses to accept money from advertisers seeking to get their ads whitelisted by ad-block solutions.

Cost

While Wipr is not free, you can purchase the app for a small, one-time fee of $1.99.

Optionally, you can choose to support the iOS ad-block solution’s creators with in-app donations.

Pros

1. Simplicity and straightforward setup
2. Lightweight app
3. Blocks various types of intrusive content in Safari
4. Honest service that doesn’t whitelist ads in exchange for money
5. Regular, background-only blacklist updates
6. Cheap price

Cons

1. No options for customization
2. Wipr only works in Safari
3. You have to pay to use it

3. 1Blocker

Overview

The next iOS ad blocker on our list is 1Blocker that offers numerous options for iPhone and iPad users to customize how they eliminate advertisements.

Like Wipr, 1Blocker doesn’t offer system-wide protection for iOS. However, it’s a great app to eliminate all kinds of ads and intrusive content while browsing the web via Safari.

How It Works

Like Wipr, it’s super easy to set up 1Blocker as you only need to tick the boxes next to the content you seek to block in Safari.

Also, its creators designed 1Blocker as a native, lightweight app that uses only a limited amount of system resources.

To improve the browser’s speed, instead of modifying web pages, the iOS ad-block software uses filters for Safari.

According to the service provider, 1Blocker can decrease web page load times in Safari by two to five times on average.

Also, you don’t have to worry about heavy updates as the ad blocker updates its Safari filters automatically via silent cloud updates.

1Blocker allows iPhone and iPad users to customize both blacklists and whitelists as well as the type of content you want to eliminate from Safari web pages, including:

1. Ads
2. Trackers
3. Annoyances (e.g., cookie notices and crypto mining)
4. Social media widgets, share buttons, and social icons
5. Comments
6. Adult sites

Cost

While you can download 1Blocker for free, the basic version of the ad-block software is limited to blocking one content type (e.g., ads, trackers, or adult sites).

To protect against all types of intrusive web content, you have to pay a monthly or a yearly subscription fee.

Alternatively, you can purchase a lifetime subscription for a more expensive, one-time fee.

Pros

1. Easy setup
2. Lightweight ad blocker solution
3. Numerous options for customization, including setting up general and regional blacklists, as well as whitelists
4. In addition to ads, 1Blocker’s paid version eliminates multiple types of intrusive content
5. Blocking adult sites is a useful feature for parents

Cons

1. While there’s an option to get a lifetime subscription, no matter the option you choose, 1Blocker charges hefty fees for the premium version of the ad-block software
2. The free version of the app is limited to blocking only one content type
3. 1Blocker only offers protection against intrusive content in Safari

4. DNSCloak

Overview

For those of you who possess basic technical skills and who are not afraid to dedicate some of your time to configure the app, we have included a geeky way to provide system-wide protection against ads on iOS.

While you need to do some configuration before you can block ads on your iOS device, using this method doesn’t cost you anything.

For this, we will use DNSCloak, a secure privacy app for iPhone and iPad that lets you override your DNS settings to eliminate ads and trackers from both the ads you use and the websites you visit on your smartphone.

How It Works

Remember AdGuard’s Pro version?

The paid version of the ad blocker software provides DNS protection to its users by setting up a local VPN to disable advertisement-related requests.

This way, you eliminate ads not only on the web but also in the apps on your smartphone or tablet device, achieving system-wide protection against disturbing digital content.

By using DNSCloak, you can achieve the same level of protection against intrusive iOS content at no cost.

However, to achieve that, you have to configure DNSCloak first. For the exact steps, we recommend checking out this article.

Cost

While AdGuard doesn’t charge you for using its DNS, you can download and install the DNSCloak app at no cost.

Therefore, upon successful configuration, you don’t have to pay a dime to block ads on your entire iOS system.

Pros

1. You can use DNSCloak to set up AdGuard’s DNS to block ads free of charge
2. System-wide protection against intrusive content on iPhone and iPad devices
3. You can customize the DNS you want to use to block ads (although, we recommend using AdGuard’s servers)
4. Automatic protection against ads after successful setup

Cons

1. You need some time and at least basic technical skills to configure DNSCloak
2. Risks of Apple removing DNSCloak from the App Store in the future

5. Firefox Focus

Overview

Developed by Mozilla, Firefox Focus is a privacy-focused web browser for iPhone, iPad, and Android devices.

Firefox Focus is free, and it has built-in capabilities to block ads, trackers, and analytics software while you are browsing the web.

How It Works

The app is quite straightforward to use.

You set up the type of content you want to block – web trackers, analytics software, fonts, and ads – and Firefox Focus will automatically disable them while you are browsing the internet.

To achieve even more privacy, Firefox Focus automatically deletes your browsing data (including history and passwords) after you finish surfing the web.

As a plus, Firefox Focus can be integrated with Safari, enabling the same protection against intrusive content in the latter browser.

Cost

Firefox Focus is free to download and use without in-app purchases or subscriptions.

Pros

1. Firefox Focus effectively eliminates intrusive content on the websites you visit via the browser
2. You can use the iOS ad blocker free of charge
3. Optional Safari integration
4. Automatic deletion of browsing data after closing the app
5. Multi-device support (iOS, Android)

Cons

1. Lack of system-wide protection against ads
2. Firefox Focus doesn’t suit users who prefer to keep at least a part of their browsing history

Prevent Intrusive Ads With iOS Ad Blockers

As we are bombarded with tons of ads every day, it’s essential to use an ad blocker solution. This way, you can have a good user experience, protect your privacy, and block malicious content while browsing the web, reading the news, or playing your favorite game on your iOS smartphone or tablet.

Ad blockers for iPhone and iPad devices not only help you achieve an ad-free experience, but they can also speed up your device as well as decrease your smartphone’s energy and data usage.

You can choose from iOS ad blockers that offer system-wide protection against advertisements or use an application that disables ads exclusively in your web browser.

However, you don’t necessarily have to use an ad blocker software to have a non-intrusive user experience on the web.

With Permission, we have created a blockchain-based digital advertising platform where users can earn ASK cryptocurrency for the ongoing sharing of their time and data while engaging with ads. By volunteering to receive ads in exchange for compensation, users receive relevant, personalized content and get paid for it.

This advertising model also benefits brands that place ads and content on the Permission.io platform as they can increase their ROI while building long-term relationships with their (potential) customers.

If you are interested in learning more about how to earn from your data, we highly recommend checking out Permission's official website or following our official Twitter page.

You may have read the word “blockchain” a thousand times without properly understanding what one is. If so, you are definitely not alone, and even if you think you know, read on. You’ll enjoy it, I promise. I wrote it with you in mind.

The blockchain is revolutionary — revolutionary like the invention of the light bulb, not revolutionary like Vladimir Ilyich Lenin — and it will serve you to know why.

No doubt you understand that in order to create a cryptocurrency you need to build a blockchain, and if you didn’t understand that, take my word for it, you do.

What Is Blockchain? A Business Level Explanation

An accurate definition of blockchain would insist that it is a digital database containing transactions (often financial ones) that can be used and shared within a publicly accessible network such as the Internet.

However, let me boil all those words down to the important piece of information that few people tell you when they write about the blockchain. It is this:

The blockchain is a shared database.

When you understand this, it becomes easier to understand why a blockchain is organized in the way it is. So let me exhume the meaning of the above all-important and very short sentence.

A database is a way to share data. Yes, I know, there are lots of different types of databases — relational, document, XML, triplestore, etc. What they all have in common is that they allow data to be shared between different applications. Databases have well-thought-out standard interfaces that any program can use to get at the data. A blockchain is no different in that respect.

What makes it very different is that it enables data to be shared between organizations in a trustable way.

Hopefully, the first question in your mind is this: Why can’t all those other kinds of databases do that?

The answer is simple: They can’t be fully trusted.

Consider two organizations, A and B. A has data in a database and wishes to let B access that data, and add new data. Maybe such an arrangement will work fine, but maybe it won’t. Here’s how it can fail:

1. An employee who works for A and manages the database thinks up a fraudulent scheme that involves changing data in the database. He has the authority to make such changes and maybe he even finds a way to cover his tracks. As a consequence, B loses money.
2. A talented hacker who lives in Belarus finds a way to hack into the database and perpetrates a fraudulent scheme, knowing he is safe from extradition even if his identity is discovered.
3. A cybercriminal in China puts ransomware on A’s network. It encrypts the data and he sends an email demanding payment of $1m dollars in Bitcoin.

Even if both A and B do their level best to make the arrangement work, it can all go catawampus. The Internet is alive with security problems.

A blockchain database is different because it is secure — bullet-proof secure, superman secure, Internet secure.

Because of that if A and B wish to implement a shared database, they can achieve that by implementing a blockchain to manage the data they wish to share. Problem solved.

How Does the Blockchain Work?

I’ll explain step by step.

The first thing to know is that just like other databases, the blockchain writes data away in blocks. Databases have done this since before the deluge because it works way better than writing records away one at a time. So the “block” part of blockchain is no different from other databases. It is the “chain” part that is different.

All the blocks in a blockchain are chained together in the order in which they were created. The first block is connected to the second block, and the second block is connected to the third block and the third block is connected to the fourth block, now hear the word of the Lord.

The fact that they are connected is no big deal, it’s how they are connected that matters. They are connected by a hash.

Unless you’re a programmer type, you won’t know what a hash is. Let me tell you. Firstly, it has nothing at all to do with hash browns or hashish. A hash is a mathematical function that can be applied to a string of binary information, such as, well, a block of data that you want to write to a database.

I could try to explain the math, but let’s not bother. I’ll assume that you waved goodbye to hard mathematics sometime during your education and you are in no hurry to get reacquainted. Just accept that you can apply a hashing function to a block of data and it will spit out a string of numbers and characters like this: 39A1H55ZZ5178.

What’s really sneaky about the hash function is that if you change just one piece of data, even a single bit, the hash value that the hash function spits out will also change. So the blockchain, instead of just writing the block of data away, attaches the hash value of the previous block to the block, then hashes the block, and then writes the block away with the hash value it calculated.

So now the stored block looks like this: Hash-value-of-previous-block, block data, Hash-value-of-this-block.

And this means that:

1. Every block knows which was the previous block.
2. You cannot change any data in the block or the hash value of the previous block without changing this block’s hash value.
3. But if you change this block’s hash value, you will break the chain, because the hash value is already being used to build the next block.

In summary, this means that the block has become unchangeable — as unchangeable as the stars in the sky.

What Makes the Blockchain So Secure?

Now, if you have a criminal turn of mind, you may be thinking:

Wait a minute…

What is to stop me from taking control of the computer running the blockchain software, unraveling a few blocks, then altering a few records to grab a stack of someone else’s Bitcoin and drop them into my personal wallet, and then rewriting all the details with new hash values?

The answer is Consensus.

Consensus stops you from doing that. In practice, there won’t be just one computer creating new blocks, there will be many. In the case of Bitcoin, for example, there are thousands. And because the Bitcoin blockchain was the first blockchain, I’m going to use the way it works to explain consensus.

The blockchain doesn’t live on just one server computer, it is copied across a multitude. Each one of these servers is competing obsessively-compulsively to write the next block.

To enable this desperate crush of computers to compete in this sprint, all the transactions are sent to all of them. No computer is allowed to write the next block without solving a mathematical computing problem which relates to the data values stored in the block.

It’s a hashing problem of a kind, but I’ll not try to explain it, I’ll just provide an appropriate link for the benefit of those who are not mathematically challenged.

It’s a race against time, but the computing problem has been constructed in such a way that no particular computer can be guaranteed to win. Thus, it is impossible to predict which computer will write the next block.

The first computer that solves the problem gets that privilege and is rewarded with 6.25 Bitcoin — no small reward at current prices. This arrangement for mining Bitcoin is called “Proof of Work” because the victorious computer is able to prove that it did the work to find an answer.

If you are thinking, “that’s a completely goofy way of writing a one-megabyte block of data”, I agree with you. Furiously.

Think about it. You get thousands of computers to compete to solve a problem and you give the winner a prize.

I mean that has to cost, doesn’t it?

Yes, it does. It costs plenty. In fact, with Bitcoin, it is fabulously expensive. It has been estimated that Bitcoin mining consumes about sixty-one terawatt-hours (TWh) of electricity per year, which is (and I am not lying through my back teeth here) about as much electricity every year as the country of Switzerland.

And on top of that, there’s the cost of the Bitcoin mining computers which you cannot buy by the truckload at Dollar Tree. You will pay over $1,000 for just one and much more for what is termed “a mining rig”. That’s multi-millions of dollars of silicon tied up in mining Bitcoin. And by the way, those are specialist computers that can only be used for mining.

Even if you get your electricity cheap, for example in Iceland for 6 cents a Kwh, that still amounts to $3.66 billion per year.

How Does This Relate to Blockchain?

Bitcoin mining didn’t start out expensive. When the infant Bitcoin first emerged from the maternity ward, most of the mining was done on dusty old seen-better-days computers.

Back in the day, prior to July 2010, you could buy Bitcoin for less than a cent, and in those days a cent bought you about six-kilowatt minutes of electricity. Aside from a handful of geeks and crazy coders, nobody was mining Bitcoin.

That’s the bizarre business dynamic of Bitcoin; mining activity is driven by the price of the coin.

As the price of the coin rose it attracted more miners. Eventually, there were too many and some dropped out. Others realized that they could make more money by using better computers, making those dusty old PCs redundant. Powerful gaming computers gave up gaming and took up mining.

It became an arms race.

Chip manufacturers realized they could make money by designing chips that were dedicated to mining Bitcoin. These were called ASICs (application-specific integrated circuits).

That isn’t the only factor at play here. It’s complicated to explain, but it only consumes the rest of this paragraph, so feel free to skip past it. The difficulty of the mathematical hashing problem can be altered and is regularly adjusted in a way that directly relates to an estimate of the computer power deployed for mining. This adjustment is made every 2016 blocks (about every 2 weeks) in order to keep the average time between writing a new block to about 10 minutes.

If you are wondering who the hell thought up this scheme… to impose a consensus system on the writing away of blocks of data to a blockchain, which has resulted in thousands of specialized computers competitively solving math problems 24 hours a day to earn the right to write the next block, while consuming enough electricity to keep the lights on in Switzerland, and thereby earning money…  the answer is Satoshi Nakamoto.

Who Is Satoshi Nakamoto?

That’s a question I cannot answer because Satoshi Nakamoto is a pseudonym. If you’re thinking “Oh, he’s one of those modest Japanese guys you encounter in Ninja movies who is obsessed with economics and good at playing Go”, you may be right.

Or maybe he’s a shady ex-KGB operative who intends to undermine the US Dollar. Or maybe he’s a Libertarian hacktivist who thinks he’s striking a blow for financial freedom.

In a world where everyone seems desperate to grab a minimum of 15 minutes of fame, perhaps the most famous cryptographer since Alan Turing has decided to stay anonymous and has covered his tracks so well that nobody seems to know who he is. Perhaps he read about what the Brits did to Alan Turing and decided that anonymity had very definite virtues.

But never mind. The scheme that Satoshi Nakamoto invented: digital blockchain currencies and mining for consensus, was a brilliant conception. He will go down in history as one of the world’s great innovators — and because he was anonymous, every country on the planet will probably claim him as their own.

Species of Consensus

The Bitcoin blockchain has stood the test of time. It has never been successfully hacked and it has launched the value of its cryptocurrency into the stratosphere.

It has proved itself despite the fact that it has been declared dead over 380 times. This includes pronouncements by such legendary luminaries as Steven Mnuchin, Nouriel Roubini, Warren Buffet, and Paul Krugman to mention just a few.

However, even its avid fans must surely understand that there has to be a better way of achieving block writing consensus than by chewing up all of Switzerland’s electricity. And indeed there is. Think about it.

Here’s what we are gunning for: we want a network of a significant number of computers none of whom can conspire with each other to change the contents of the latest block. If we can’t achieve that then we do not have “immutability” and thus the blockchain is no more reliable than any other kind of database.

We need to limit the ownership of these computers so that no single provider of such resources can dominate the writing of blocks, and neither can any cartel of resource providers. For the record, achieving dominance of the population of block-writing computers is called a 51% attack. If you can mount a 51% attack you destroy the security of the blockchain and the currency that it supports.

Actually, there are many schemes for doing this that do not involve mining. The most prominent is called Proof Of Stake where a number of resource providers (who are in effect stakeholders) provide computers for block-writing and the computer that gets to write the next block is determined in some unpredictable way that does not involve electricity-hungry mathematics.

In fact, there are many different consensus methods: Aside from the two already discussed, there is: Delegated Proof of Stake (DPOS), Proof of Capacity (POC), Proof of Elapsed Time (POET), Consensus as a Service (CaaS), Proof of Identity (POI), and Proof of Authority (POA) — the last of which is employed by the ASK blockchain.

If you want more details, feel free to Google.

What Is the Blockchain Used For?

Ok, so we know you can use blockchain technology to create a currency, but what else can you use it for?

The obvious place to look is wherever the sharing of data securely can be a problem. Here are some examples.

1. Payment Information. So obviously a blockchain is a great vehicle for storing payment information. Sure you can use it for cryptocurrency payments, that was its first application. But, actually, banks will probably end up using it as payment technology for most of what they do. Many of them are already using Ripple for just that purpose.
2. Government Data. It’s likely that governments will eventually use the blockchain for digital IDs, making public records available and even (horror of horrors) bullet-proof incorruptible voting (Dictators, take note).
3. Healthcare Data: This is an obvious application, particularly because security is a big deal in the healthcare industry. Medical records are difficult to share and can be plagued by inaccuracy. On a blockchain, they will be accurate, secure, and easily shared with medical professionals who are approved by you.
4. Insurance Data: Insurance is a similar area to healthcare in that data needs to be trustworthy and confidential. With the use of smart contracts (space forbids from explaining this incredibly useful feature of the blockchain), most of the customer interactions involved in making insurance claims would be handled with extraordinary efficiency. No more hassling your insurer week after week for your payout.

There’s also a really big area of blockchain applications for supply chain data.

The Blockchain and the Supply Chain

Do you like salmon? Most people do. Do you like genuine wild-caught salmon?

Maybe you’ve never had it. Quite possibly you think you have but you haven’t.

The conservation group Oceana produced a report on this very topic. During winter 2013-2014 researchers collected 82 samples of salmon labeled “wild” from restaurants and grocery stores in Chicago, New York, Washington, D.C., and Virginia, and sneakily did DNA tests on them.

It turned out that 43% of the salmon was fraudulently labeled. 69% of the mislabeled fish were farmed Atlantic salmon. Cheaper species of salmon were labeled as top quality Chinook. And the mislabelling was more common in restaurants than grocery stores.

In a supply chain that is built on the blockchain or a series of blockchains, such food fraud is harder to perpetrate. Did that Beluga Caviar really come from the Black Sea? Did that Roquefort really come to maturity in a cave near Roquefort-sur-Soulzon?

With the blockchain, such frauds will be harder to perpetrate.

Is the Blockchain the Future?

I have no doubt that the blockchain is the future of shared databases. It is simply the best technology that has ever been created for sharing data in a secure and trustworthy manner. The technology may evolve over time as all technology does, but it will not be superseded.

If you don’t believe me, just wait, and wait and wait. If you are not already using blockchain technology, you will be in a year or two. You will see more and more of it. Eventually, it will be as common as french fries in a fast-food joint.

And if, in the coming years, the blockchain dies a death and disappears — well, I was obviously wrong.

It’s the end of the road for third-party cookies—and that’s a good thing.

Perhaps you don’t know what third party cookies are. Let’s begin by explaining why cookies exist at all.

What Is a Cookie?

A cookie is a parcel of data stored in the browser to speed-up and simplify interactions between the browser and a website it is connected to. Any data can be stored in a cookie.

How Do Cookies Work?

The browser provides a place where websites can store data when that website is being accessed, and the browser stores it. The idea was invented by Lou Montulli of Netscape Communications in 1994, the year that the Web was born.

The problem was that a PC could disconnect from a website for many reasons: the PC or the website might crash or the internet could disconnect. So the website cookie could store your identity data, your preferences, and maybe even session information. Then, if anything failed you could restart near to where you left off.

Since then things have become more complex and there are several different types of cookie, as follows.

The Different Types of Internet Cookies

The Session Cookie

These are temporary cookies that last only for the duration of a session. They tend to store mundane data like login credentials and usually evaporate when you reboot the computer or close the browser. They can also be used to help with website performance like ensuring fast page loads.

There’s unlikely to be anything objectionable stored in these cookies.

The Persistent Cookie

Websites that plant these cookies in your browser usually give them an expiration date, which could be any time from seconds to years.

You know you have a persistent identity cookie if you are on a website and reboot your computer only to discover when you return to the website that you are still logged in.

Such cookies are commonly used to track your on-site behavior and to tailor your user experience.

There is unlikely to be anything objectionable about these cookies either.

The Secure Cookie

These cookies assist with encryption and hence are definitely good guys. They are only transmitted securely (via HTTPS) and they are used to implement security on banking and shopping websites.

They keep your financial details secret but allow the site to remember those details.

The First-Party Cookie

All the above are examples of first-party cookies. Technically first-party simply means that it’s a two-way arrangement between you and the website. However, many websites monitor website traffic with help from external vendors, particularly Google with Google Analytics.

The cookies placed by Google for that purpose are usually thought of as first-party cookies because they just monitor the site visit. Think of them as first-party by proxy.

The Third-Party Cookie

Third-party cookies are what drives “behavioral advertising”. They are called third-party because none of the websites you visited put them there. They were slipped into your browser by some advertiser’s ad server.

Advertisers add tags to web pages so that in conjunction with the cookies they place, they can recognize you as you skip from one website to another. They build a user profile of you and your habits in the hope of targeting you more effectively.

Whichever way you look at this, it’s a violation. They do not seek your permission and they are aggressive.

The bad advertiser practices of the web depend on these cookies. They include:

1. Cookie-bombing: This focuses on quantity over quality, to the detriment of both the user and the advertiser. It is “pray and spray”, matching the ad with neither the website nor the user. Think of, say, feminine hygiene products advertised to men who are visiting a bookstore website. Think of ads appearing in obscure places on a web page that you will never notice, except by accident.
2. Incessant retargeting: This is where ads seem to follow you around the web from one site to another.

The March of the Ad Blocker

Nowadays, 30% or so of people use ad blockers. The top three reasons for doing so, according to GlobalWebIndex, are: too many ads (48%), ads are annoying or irrelevant (47%), ads are too intrusive (44%). A lot of this can be put down to the kind of ads that third-party cookies thrust upon you.

Ad blockers are a severe problem for the digital advertising industry. It isn’t just that most users would rather see no ads. The digital publishing industry has no easy way of making a profit other than by ads. Web-users visit news and magazine sites page by page rather than go to one or two sites for their news. The web has no equivalent of a newspaper or a magazine.

However, there can be synergy between websites and ads, where ads are found in the context of a website to which they relate. The ads for yachts on a yachting blog, hiking gear on hiking blogs, and so on. Brand advertisers don’t want their brand ads to appear just anywhere, they want the context of the ad to be brand-positive.

Most advertisers, like most web users, do not want what third party cookies deliver, and neither do the software companies that develop browsers.

The Cookie War and the Browsers

As I noted at the beginning of this blog, the days of the third-party cookie will soon be over. It has no useful allies. All the browsers are waging war on it.

Safari

It began with Apple. In 2017, it introduced “intelligent tracking prevention” to stop cross-site tracking by third-party cookies.

Since then, Apple has improved the capability to the point where Safari will tell you which ad trackers are running on the website you’re visiting and will provide a 30-day report of the known trackers it’s identified, and which websites the trackers came from. Safari now blocks most third-party cookies by default.

Of course, Safari has less than 10% of the browser market. So, on its own, that doesn’t spell the death of the third-party cookie.

Firefox

In 2017, the Firefox browser also moved towards stronger privacy adding an optional feature that restricted cookies, cache, and other data access so that only the domain that placed the cookie had access to it.

Since then, Firefox has tightened up its privacy features. Currently, Firefox offers three levels of privacy: “Standard” (the default), “Strict”, and “Custom”. Standard blocks trackers in private (i.e. incognito) windows; it blocks third-party tracking cookies and crypto-jacking. The Strict setting does the same but also blocks fingerprinting and trackers in all windows. The Custom setting allows you to tune your privacy settings in fine detail.

As a side note, perhaps you’ve not heard of crypto-jacking. This is when a website, without so much as a “by-your-leave”, puts a script in your browser which sits there, chugging away mining cryptocurrency for the website owner. Firefox can block that.

Maybe you’ve not heard of fingerprinting either. This is when a server gathers data about your specific configuration of software and hardware in order to “fingerprint” you (i.e. assign a unique technology identity to you).

There are many details that can be gathered: your browser version and type, your OS, the timezone, active plugins, language, screen resolution, browser settings, and so on. It is really unlikely that any two users have identical information.

One study estimated that there is only a 1 in 286,777 chance that another browser will have the same fingerprint as you. The fingerprint is used to track you as you move from website to website.

Firefox’s market share is similar to Safari’s — a little under 10%.

Microsoft’s Edge

A long time ago, Microsoft’s Internet Explorer was the dominant browser. Its market share gradually declined to a few percent and Microsoft decided to reinvent its browser with Edge.

Edge provides 3 privacy settings to choose from: “Basic”, “Balanced” (the default), and “Strict”. Balanced blocks trackers from sites you haven’t visited. Strict blocks almost all trackers. Basic block trackers used for crypto-hijacking and fingerprinting.

How much traction Edge will get is uncertain. Right now it seems to have about 4% of the browser market.

Opera

Despite a fairly low market share, Opera is perhaps the most highly functional browser. It provides configurable security that is as tight as any other, including a configurable built-in ad blocker, a crypto wallet, and a VPN. It has been offering such features since 2017.

Brave

This is another niche browser but with a much smaller user base than Opera.

By default, it blocks all ads, trackers, third-party cookies, crypto-hijacking, and third-party finger-printers. It even has a built-in TOR private browsing mode (TOR stands for “The Onion Router”, open-source software that enables fully anonymous communication).

Brave tends to attract users who care deeply about privacy.

If you add up the market share of the browsers already discussed, you get less than 30%. The market gorilla is Google Chrome with a little under 70% market share.

Google Chrome

The death knell of the third party cookie sounded loud when Google joined the opposition with its Chrome browser. Google has decided to eradicate that scourge over a space of 2 years. Chrome will soon have a Privacy Sandbox, a privacy-preserving API.

Naturally, Google is very pro advertisements — they are its core business. So with Chrome, it is unlikely to shoot itself in the foot. It is far more likely to skew the ad market to its advantage.

Google’s intentions, in outline, are to hold individual user information in Chrome’s Privacy Sandbox and allow ad tech companies to make API calls to it. When they do so they will get access to personalization and measurement data to help them target ads and measure their impact, but they will get no access to your personal details that might help them identify you. The advertisers will get targeting data only.

The question is: if you eliminate third-party cookies how can ad tech companies target users and measure an ad’s effectiveness? The Privacy Sandbox is Google’s answer. It will run trials and make adjustments over the next two years to get it right.

Because Google Chrome is open-source, other browsers will be able to analyze what Google is doing and imitate it, if they choose to.

Publishers are particularly concerned about the Cookie Wars, because they may become collateral damage. Google released a study claiming that removing third-party cookies would reduce publisher ad revenue by 52%.

Making sure the change doesn’t greatly damage publishers is a sensible priority. So Google’s upcoming trials will compare monetization for publishers between the old and new setup for Google’s digital ad business (Google’s search ads and YouTube are unaffected).

The iPhone and iPad, and IDFA

What is an IDFA? The abbreviation stands for IDentifier For Advertisers, Apple’s unique mobile device number provided to ad exchanges to help them track user interactions and behavior.

It is the mobile device’s equivalent of a third-party cookie, enabling user tracking, marketing measurement, attribution, ad targeting, ad monetization, device graphs, retargeting of individuals and audiences, and programmatic advertising from demand-side platforms (DSPs), supply-side platforms (SSPs), and exchanges.

If you were unaware that Apple assigns a number to your iOS device to help track you, I’m not surprised. It may be because it is an opt-out feature you have to notice and opt-out of to prevent its use (if you have an iPhone or iPad and wish to opt-out, go to Settings > Privacy > Advertising and then turn “Limit Ad Tracking” on).

Recently, however, because of Apple’s increasing concern for its customers’ privacy, it decided to make the IDFA opt-in for every single application. Thus, with the release of iOS 14 in September 2020, each app on your device will have to ask you if you want to opt-in and reveal your IDFA.

Apple‘s change of policy will have a negative impact on companies that provide mobile ad targeting, including Google, Facebook, and Twitter. It may also affect apps like Spotify, Uber, and Lyft that invest heavily in user acquisition and depend on user data from their apps.

Apple vs. Google

You can view what’s happening with respect to tracking as a struggle between Apple and Google.

On one side of the net is Apple. It has a very self-contained business model and has pursued it through good times and bad.

When you buy Apple, you tend to go the whole hog — Apple hardware on the desktop running the Mac OS and apps from the App Store. Your mobile phone is an iPhone running iOS with App Store apps and your tablet is an iPad. If you’re into digital watches it will likely be an Apple Watch.

Apple makes the hardware, nowadays even the chip gets a cut of most of the software and builds some of the apps itself. And, of course, it sells music, videos, podcasts, etc.

What it doesn’t care about is advertising revenue. Apple is an ad-free business and has no reason to care whether Google, Facebook, or any other advertising platform gets ad revenue from its devices or not. It is without an ax to grind. It cares about customer satisfaction, and thus its primary goal is to provide its users with bulletproof, but configurable privacy.

On the opposite side of the net, Google clearly wants to maximize its ad revenue. It is the last of the browser companies to prevent third-party cookies and it intends to do so in a way that does not damage its revenues.

But, when it comes to the mobile world it is poorly placed to dominate ad traffic on iOS devices. Right now, the iPhone has about half the cell phone market in the US, and Safari has more than 50% of the browser market on the iPhone. It also dominates browser usage on the iPad. Those Safari browsers have a simple setting to stop third-party cookies dead in their tracks.

Where the IDFA comes in is for placing ads in iOS apps. You probably didn’t know it but Google has an app called AdMob for placing ads in mobile apps. AdMob is installed in 1.5 million iOS apps of which, in total, there have been 375 billion downloads. Those ads generate revenue for the app maker, but now they only work if the user opts-in.

How many users do you think will want to opt-in for such ads? Perhaps none. Facebook plays the same game, by the way, but has less of the market. Its ad distribution app is installed on a whole host of iOS apps of which there have been billions of downloads.

You probably have some of those apps installed. Tim Cook’s point is that nobody asked for your permission to be an ad victim and yet those ad distribution apps are sitting there on your iPhone or iPad anyway. Well from here on in, permission will be required.

It’s All About Permission, Permission, Permission.

Let me explain my perspective on this. I don’t even like Apple’s solution, even though I think what they are doing is not exploitative.

At the birth of the Internet, cookies were an excellent idea that helped to maintain “session integrity”. They made the web work better. Since then, they have been bent badly out of shape and been used by the Internet giants to exploit anyone who ever lifted a mobile phone or touched a keyboard.

Any data stored that can enhance the technology and the user experience is welcome. Let’s not call such data cookies, let’s refer to it as “the performance data cache”. No-one should have any problem with technical innovators adding data to this cache if it improves your digital life.

Beyond that, there is no need whatsoever for cookies of any other kind. Let’s hope they sink into the dustbin of technology and never resurface.

It is crashingly obvious that any interaction between a person and a website should be completely device-independent. It is an interaction between a person, assisted by their stored personal data, and the website with all its capabilities, including its abilities to serve ads.

The user can give permission for the use of the data and the website can interact accordingly. Under these circumstances, the user can retain control and choose to allow the advertiser to examine all their personal data for the sake of targeting, especially if the advertiser is willing to reward the user for their time and data in watching its ads.

Kudos to those that facilitate the asking and granting of permission for use of data for the purpose of targeting. Permission does you one better and ensures that you are compensated for data shared. It’s the only fair and transparent solution. After all, it’s YOUR data.

Did you know there is a way you can spend your crypto like fiat currency without converting your coins?

Meet crypto credit cards that function like normal (traditional) payment cards with the only difference that you spend your digital assets instead of cash.

Early on, when digital assets were rather new, we didn’t have too many cryptocurrency credit cards to choose from. Fortunately, with the industry’s growth and the rising popularity of digital assets, there are plenty of great crypto credit and debit card solutions on the market.

In this article, we will explore what a crypto credit card is, how it works, and the best cryptocurrency debit card solutions to spend your coins.

Let’s dive in!

What Is a Crypto Credit Card?

A crypto credit card is a payment card that allows the cardholder to spend his digital assets like they were cash.

By utilizing large, global traditional payment networks like Visa or MasterCard, you can use your cryptocurrency credit card to shop even in stores that don’t have dedicated crypto payment gateways.

Therefore, crypto credit cards bridge the gap between the digital asset space and the traditional world, providing a new use-case for cryptocurrencies.

Cardholders benefit from the ability to hold some cryptocurrency in their wallet while using the other part to pay their bills, buy coffee, or spend their crypto for other products and services.

Additionally, merchants without dedicated digital asset payment gateways benefit from the purchasing power of crypto enthusiasts who use their cryptocurrency debit cards in their stores.

How Do Crypto Credit Cards Work?

How crypto credit cards work depends on the solution you choose.

Generally speaking, you send your digital assets to a dedicated cryptocurrency wallet (usually on the service provider’s platform) and load them on your card. Some crypto credit card solutions may require you to exchange digital assets into fiat currency to load them on your card.

Also, other service providers do not require their users to store cryptocurrency on dedicated wallets. So you are free to use whichever (compatible) wallet you prefer to load funds on your card.

After loading your crypto on your card, you are ready to make digital asset payments. Your crypto debit card will work as a traditional payment card. Therefore, you will be able to make all kinds of payments from paying your rent and utility bills to buying beer or your favorite latte while you are on your way to work.

Unless the service provider requires you to convert your digital assets into fiat currency, the cryptocurrency on your card will be automatically exchanged into cash when you make a purchase.

Like prepaid cards, your crypto card will have different periodical limits (e.g., maximum balance, daily purchase, and monthly top-up limits).

Some of the crypto debit card solutions use universal limits for all their customers. Others utilize tiered systems where users in the higher levels have increased limits as well as access to premium features (e.g., airport lounge access, cashback rewards).

In exchange for a higher tier, users have to either pay a monthly subscription fee or stake cryptocurrency (lock up some coins for a specific time in their wallets).

What Are the Best Crypto Credit and Debit Cards?

In this section, we have collected the top five crypto debit card solutions.

Let’s see them!

1. Crypto.com MCO Visa Card

Overview

Crypto.com’s MCO Visa Card is one of the most popular cryptocurrency credit cards on the market.

Formerly known as Monaco and later re-branding to Crypto.com, the Hong Kong-based company created a comprehensive cryptocurrency credit card solution after securing nearly $27 million in its token sale in June 2017.

What made Crypto.com’s MCO Visa Card popular is its crypto cashback rewards system, where users receive rebates in MCO tokens on their purchases.

In addition to the MCO Visa Card, Crypto.com features a rapidly growing ecosystem where users can store, exchange, and earn digital assets as well as use their coins as collateral to borrow funds on the platform.

Fees

The MCO Visa Card features competitive fees.

First, there is no card issuance fee. Also, you don’t have to pay a dime for maintaining your account.

While depositing crypto and exchanging it to other coins is free, Crypto.com charges a small fee for withdrawals. Also, if you use a credit or debit card to exchange fiat to crypto instantly, you will be charged a 3.5% fee.

Based on your account tier, you can withdraw a certain amount of cash in ATMs per month ($200 for the lowest level) for free. After you reach that limit, Crypto.com will charge a 2% fee for ATM withdrawals.

The same goes for interbank exchange limits, which will cost you 0.5% after reaching your monthly limits ($2,000 for the lowest tier).

Availability

The MCO Visa Card is available in the European Union, the UK, Canada, the United States, and multiple APAC countries.

Why We Like It

The first reason why we like the MCO Visa Card is its widespread availability, which is among the best among crypto debit card solutions.

While Crypto.com uses a tiered system – where you have to stake MCO tokens for at least six months to access premium features as well as higher limits and more rewards –, you’ll get quite high limits as well as a 1% cashback rate with the basic card (Midnight Blue) that requires no staking.

In addition to the competitive fees on all levels, you have access to plenty of premium features – such as free Netflix, Spotify, and Amazon Prime subscriptions, bonus Airbnb and Expedia cashback, as well as airport lounge access – at higher account tiers.

Read our review on the MCO Visa Card for more information.

2. Coinbase Card

Overview

Coinbase, one of the most popular cryptocurrency exchanges, launched its crypto debit card solution in the EEA in 2019.

With support for nine coins – Bitcoin, Ethereum, Bitcoin Cash, Ripple, Basic Attention Token, Augur, 0x, Stellar Lumens, and Litecoin – Coinbase cardholders can use their Coinbase Wallet balance to fund their cards directly with crypto.

Like the MCO Visa card, the Coinbase Card uses Visa’s network to offer its users worldwide coverage for cryptocurrency payments.

Fees

The company’s cryptocurrency exchange has been known for its user-friendly platform, not its low fees.

And the same can be said about the Coinbase Card. However, considering that you are using the cryptocurrency debit card of one of the most prominent companies in the industry, the Coinbase Card’s fees are more than reasonable. While there are no fees for account maintenance, Coinbase charges 4.95 EUR for card issuance.

Like with the MCO Card, you get a decent limit for free monthly ATM withdrawals with Coinbase (200 EUR). For domestic cash withdrawals, you have to pay a 1% fee, while it costs 2% to withdraw funds in an international ATM after you’ve reached your free limits.

In addition to some other fees – which you can take a look at here – Coinbase also charges your card for international transactions (3% for international and 0.20% for intra-EEA POS transfers).

Availability

Currently, the Coinbase Card is available in the EEA.

However, Coinbase will likely expand its crypto debit card service to additional markets (such as the United States).

Why We Like It

The Coinbase Card comes from a trusted service provider with a great history in the cryptocurrency space. And, as mentioned before, the Coinbase Card’s fees are reasonable if you take the service provider’s reputation into account.

While you can hold nine cryptocurrencies on your Coinbase Card, it’s a good feature to load your card directly using your Coinbase Wallet.

3. Wirex Visa Card

Overview

Founded in 2014, the UK-based Wirex has been one of the oldest crypto debit card solutions on the market. In addition to the crypto debit card, Wirex has a mobile app where you have access to a built-in cryptocurrency exchange and wallet. You can fund the latter with both fiat currency and digital assets.

Similarly to the MCO Card, you get crypto cashback rewards (in BTC) on your Wirex Card purchases. The percentage of crypto rebates you receive on your transactions is based on how much Wirex Tokens (WXT) you hold.

Fees

Like Coinbase, the Wirex Visa Card features higher fees than some of its competitors (e.g., the MCO Visa Card). However, as Wirex has been operating its cryptocurrency card service since 2014, it is reasonable to assume that your funds are secure with the company.

While there are no fees for card issuance and delivery, Wirex charges 1.20 EUR per month for account maintenance. Also, Wirex charges a 3% foreign exchange fee for international transactions, which is added to both your non-domestic card purchases and ATM withdrawals.

The fixed fee is 2.25 EUR for domestic and 2.75 EUR for international ATM cash withdrawals.

Availability

Initially, the Wirex card was only available in the EEA. However, the company has recently expanded its services to countries in other regions (such as the APAC).

You can find more information about the crypto debit card’s availability on Wirex’s website.

Why We Like It

Wirex has been a trusted crypto debit card service provider with a great history of operation.

In addition to the credibility, you also get an up to 1.5% cash back rewards rate by holding a certain amount of the company’s tokens.

With an integrated crypto-to-fiat exchange, you can easily load both digital and traditional currency on your Wirex Card.

4. Monolith Visa Debit Card (Formerly TokenCard)

Overview

Formerly known as TokenCard, the Monolith Visa Debit Card is among the most exciting cryptocurrency credit card solutions.

In addition to a crypto debit card that uses Ethereum’s network for digital asset wallets, the Monolith Card provides access to the DeFi (decentralized finance) economy for its users.

Monolith is powered by the project’s native TKN token, an ERC-20 digital asset running on the Ethereum network. TKN holders can use the coin to get fee discounts when they top up their card as well as redeem their share from Community Contributions.

Fees

In addition to providing an affordable crypto credit card solution, Monolith is very transparent about its fees.

You can get a Monolith Card in two base currencies: EUR or GBP, which will be used to calculate some of your fees. There is no account maintenance, card issuance, or shipping charges with Monolith. For funding your card, Monolith charges a 1+1% fee. One of these fees is the Community Contribution fee – that goes to TKN holders who can withdraw their share anytime – while you pay the other for card top-ups.

However, if you top up your Monolith Visa Debit Card with TKN, the service provider will waive the Community Contribution fee. You can also eliminate the top-up fee if you choose to load your card with DAI.

Although, it’s important to note that no matter which option you choose, you have to pay a 1% fee for loading your card with funds.

While it’s free to exchange fiat to crypto and vice versa at Monolith, the company charges 1.75% on transactions that are not in your base fiat currency (EUR or GBP).

You have two free base currency ATM withdrawals in a month. After reaching your limits, domestic cash withdrawals will cost you 0.85 EUR while withdrawing funds from your Monolith Card has a fixed 2 EUR fee (1.5 EUR for GBP withdrawals).

Availability

The Monolith Visa Debit Card is available in all 31 countries of the EEA as well as in multiple Special Member State Territories.

Why We Like It

The Monolith Visa Debit Card is nothing like the other crypto credit card solutions on the market.

In addition to the cost-efficient fees and high levels of transparency, you have exclusive ownership over your Monolith Ethereum wallet. You can track your spending in real-time for your Monolith Card in the service’s iOS or Android app.

As a great benefit, Monolith has a Decentralized Exchange (DEX) aggregator that you can use to swap tokens at the best rates on the market. In the near future, Monolith is planning to add support for WalletConnect to (optionally) integrate numerous DeFi solutions into user wallets.

Monolith also seeks to offer customers the opportunity to receive their salaries in DAI by integrating either a regular sort code and account number or a European IBAN into the app.

5. TenX Visa Card

Overview

In June 2017, TenX collected a huge sum ($80 million) from its contributors during the company’s token sale. Later on, the project launched its crypto debit card solution, the TenX Visa Card, which has become one of the most popular services in the Asia Pacific region.

Interestingly, TenX also offers its cryptocurrency credit card as a virtual payment card that customers can use instantly upon approval.

Fees

While the TenX Card’s fees may seem much at first, it’s important to note that the company does not charge any foreign exchange fees. Therefore, we can safely say that the TenX Visa Card has quite reasonable fees.

The card issuance fee is 15 USD or 15 EUR for physical and 5 USD or 5 EUR for virtual crypto credit cards. After the first year (which is free), TenX will charge a $10 annual fee, which can be waived by spending at least $1,000 in a year.

TenX does not charge any fees for card shipping, deposits, or crypto withdrawals. However, for ATM cash withdrawals, TenX will charge 3.25 USD or 3 EUR per transaction.

Also, the service provider will charge a small spread when you convert fiat to crypto or vice versa.

Availability

Currently, the TenX Visa Card is available in APAC countries as well as in Austria and Germany.

However, the company will likely expand its services to additional countries in the near future.

Why We Like It

Similarly to Monolith, we appreciate how TenX is transparent about its fees, which seem quite reasonable, considering that there are no foreign exchange charges for international transactions.

We also like that there is an option at TenX to get a virtual crypto debit card with your account that you can use instantly after your account is approved.

As an additional benefit, you have access to multiple security controls and spending features with the TenX Visa Card.

How Do You Get a Crypto Card?

Now that you know the essentials about crypto debit cards, it’s time to show you how to get one.

Please note that the instructions here are general, and the service provider you choose may require different steps to get a crypto card.

Step 1: Registering an Account

First, you need to open an account at a crypto debit card provider.

Most service providers use dedicated wallets to load cryptocurrency on your card. Therefore, you will get a crypto wallet when you open an account at such services.

Important: When you receive a cryptocurrency wallet with your account, make sure to write down and store your wallet’s secret keys at a safe place. You can either keep them securely on your computer or print them and store the document at a physical location. No matter where you store them, you should have exclusive access to your private keys, and you should never share them with anyone.

Step 2: Verifying Your Account

As the company operates a payment service, it has to comply with different regulations.

Therefore, the next step is to submit Know Your Customer (KYC) and Anti-Money Laundering (AML) documents to verify your identity and residence. You may also need to answer some questions, such as the purpose of your account or the origin of your funds.

After submitting the documents, the cryptocurrency credit card provider will take some time to verify them.

Step 3: Shipping and Activation

Upon successful verification, the service provider will ship your crypto debit card to your address.

While some cryptocurrency credit card solutions will do this automatically, others – especially those that require users to stake coins to unlock premium features – may ask you to deposit digital assets to a specific wallet before shipping your card.

In case you have to stake crypto to receive your card – and unlock higher account tiers –, make sure that you know the exact requirements and potential risks.

When you have received your card, the next step is to activate it based on the service provider’s instructions.

Step 4: Crypto Credit Card Top-Ups

Upon successful activation, send crypto to either a dedicated wallet or one that’s compatible with the cryptocurrency card solution you are using.

If you don’t have any digital assets, we recommend using a prominent cryptocurrency exchange to convert fiat to crypto, and sending those coins to your card wallet.

Crypto credit card solutions use two different processes here.

A part of cryptocurrency debit card services allows users to load digital assets directly to their cards. For these solutions, you have to use your coins to top up your card. Sometimes, it is enough to have your coins in the service provider’s dedicated wallet. In that case, they will be automatically loaded on your card.

For the other process, you have to convert some of your digital assets to the base fiat currency (usually EUR, USD, or GBP), and use those funds to top up your card.

Whatever the process, you are ready to use your crypto credit card after a successful top-up.

Crypto Credit Cards: Bridging the Gap Between Traditional Finance and the Cryptocurrency World

By allowing crypto enthusiasts to spend their digital assets directly from their wallets, cryptocurrency debit cards open up new opportunities for the industry.

Fortunately, as the industry is developing at a fast rate, we have access to numerous crypto credit card solutions that provide an excellent service to their customers.

From cashback rewards and premium features to access to the DeFi economy via the Ethereum blockchain, crypto debit cards empower the industry with new use-cases while providing numerous benefits to users.

However, earning crypto cashback with cryptocurrency debit card solutions is not the only way to stack sats.

Alternatively, you can check out Permission‘s next-generation blockchain-based advertising platform where you can earn ASK tokens for leveraging your data while engaging with your favorite brands and retailers.

Sounds great, huh?