If you’re having difficulty in understanding the difference between Bitcoin wallet and Bitcoin wallet address keep reading on to clarify your doubts.
Before we dive straight into the address bit, you need to understand what exactly a Bitcoin wallet is.
A bitcoin “wallet” is basically a vault for your bitcoins. It contains all the information on your transaction history and balance. It allows you to store, send and receive bitcoins.
There are two main types of wallets:
Software wallet– It’s to be installed on your desktop or mobile. This wallet will be completely under your control and it is your choice what kind of software wallet you’d like to install.
Web wallet– It is hosted by a third party and is usually quite user-friendly, but it is your call to trust the provider to maintain high levels of security to protect your bitcoins.
What is a bitcoin wallet address?
It is simply a unique 26-35-digit combination of letters and numbers and it looks something like this, 1ExAmpLe0FaBiTco1NADr3sSV5tsGaMF6hd
Addresses can be generated at random and free of cost by any Bitcoin user. You will use this address to receive and send bitcoins from your wallet. You are able to send bitcoins to someone, by sending it to their bitcoin address. However, for each payment request or invoice, a new bitcoin address is generated.
Your Bitcoin wallet address can also be represented as a QR code. If somebody wishes to send your Bitcoin, they can scan the code using their Bitcoin wallet and send Bitcoin to your wallet:
Bitcoin addresses are created as part of a key generation process that creates a pair of keys. They are a matched set, where one is public and the other is private. When you “sign” a bitcoin address you are running the public and private keys through an algorithm that checks whether those keys belong together. Usually signing is talked about in the context of a message. Someone sends you a signed message and you can verify that the message came from the genuine person. You can verify the message because it was signed with their private key and you match it to their public key.
When sending bitcoins, the signed message is a portion of the bitcoin transaction and you do not explicitly see the message, it is just part of the transaction. This lets you validate the ownership of the address. The transaction was signed with the owner’s private key and you check that it’s valid using their public key. Bitcoin wallets usually contain this message signing and verification functionality.
Make sure you and only you control the private keys to your bitcoins!
Cryptocurrency lending is something every user is hesitant of, but it is still one of the ways to earn money in a short period of time.
The issue circulating with crypto-lending is when it comes to repayment, people do not know how to trust each other.
There’s your answer. ETHLend is a cryptocurrency lending application, that functions on the Ethereum network. It is accessible through MetaMask, a plugin that works as a connection between the Ethereum network and your web browser.
From now onwards, users can lend Ether without the risk of loss of capital as it ensures secure lending. Also, lenders can browse through loan requests on the EthLend website, then pick the borrower of their choice.
- The borrower will issue a loan request.
- The loan request creates a Smart Contract on the Ethereum Blockchain.
- Insert the required data such as the loan amount, the premium (interest rate) and time to borrow.
- The borrower then inserts the Digital Token address and the number of tokens that are used as a collateral.
- After all the data is set, the borrower then transfers the Digital Tokens to the Smart Contract. Now, lenders can fund the loan.
What Happens If The Borrower Doesn’t Repay The Loan On Time?
When the borrower is unable to repay the loan, the Smart Contract transfers the digital tokens to the lender’s Ethereum address. It is up to the lender, whether they want to hold onto or sell the digital tokens.
The decentralized model and the use of cryptocurrency is the proper solution to achieve ETHLend’s goal. It aims to provide a global liquidity pool between people, which means that any borrower in the US isn’t limited to the US alone and can access funding from all across the world, like Asia and Europe.
What Are EthLend Fees?
EthLend deducts around 0.01 fee for every loan request and funding of a loan. The fees will finance the further improvements on the Ethereum platform.
What Cryptocurrencies Can I Borrow And Lend?
To begin with, Ether lending is available, since the application runs on Ethereum network. Later on, other cryptocurrencies like Bitcoin, Litecoin etc. will be included.
Why the Ethereum Network?
Ethereum consists of Smart Contracts, that allows to perform complex transactions such as and lending and handling the collateral. No one can stop you from lending or borrowing, not even ETHLend. Fortunately, ETHLend has the ability to borrow in locations where there are no banks in sight. All transactions are visible, so you can easily keep track of what is happening.
The focus is to expand their user-base and explore their boundaries while ensuring that their procedure remains as simple as possible. ETHLend is also including additional features like language options and ways to calculate the value of the collateral, to avoid unnecessary loan requests in the future. Its team is located all over the world but, initially work towards the same goal, to provide a fair and secure lending/borrowing platform. Ultimately, aiming to become the largest lending market on a global scale.
Spotting bubbles have become a national passion after dot-come and the housing bubble burst in 2000 and 2008. Moreover, few year back investors use to spotted bubbles in gold, equities, credit, and bonds as well.
Here, I will not discuss b-word here to describe those investments. Accordingly, not even nominate any of them. I will give that division to digital currency named bitcoin and its brief Bitcoin Info.
Bitcoin has all characteristics of a bubble in making. First, it totally new. Second, a digital currency that allows the public to do transactions freely without any second party. Where the transactions are controlled by the proper network of computers.
British journalist Mike Dash in his book “Tulipmania” in 17th-century states; “It is impossible to comprehend the Tulipmania without understanding just how different tulips were from every other flower known to horticulturists in the 17th century.” Same sayings with the internet in the 1990s and about cryptocurrency today.
Second, bitcoin is something scary. Like, both parties took part in transaction process anonymously. Which is being the interest for scams, hackers, and criminals as well. Just like a mystery. Similarly, creator of the bitcoin goes by Satoshi Nakamoto, but it is totally unclear who that person is, or is that only one person?
It reminds the bubble in 1720 at the height of the England South Sea bubble, a company floated shares “For carrying-on an undertaking of great advantage but no-one to know what it is.” Definitely, investors do not stop investing in the company.
Third, the thing which makes the bitcoin susceptible is its value. An investment in Bitcoin gives the return of 351 percent annually inspection in July 2010 through Tuesday. To put that in standpoint, investment of $100 is equal to $3 million today. It’s totally an insane return from any investment like Bitcoin Battle.
Riding the wave
In 1720, a share price of the company South Sea rose up to 400 percent within three months and collapse quickly.
Bitcoin is not different from other commodities like gold, oil, vegetables etc. Nevertheless, government and currency market exchanges are standing behind the system. Whereas, with the commodities, investor hold the something at the end of the transaction process. However, bitcoin is something more speculative because it is a digital money.
This treatment is not only with all the investments. A shareholder is enabled to share the company’s assets, sale and purchase transactions. Same as bond’s payments of principle and interest.
This division of value allows many observers to warn that internet stock in the 1990s. In addition, during the housing bubble mortgage bonds were not safe. Similarly, this sort of statement is not possible about the bitcoin.
Tags: bitcoin investment trust
Some new details have been provided by the government of Gibraltar about its strategy to regulate the ICOs (initial coin offerings) in a white paper. According to the paper, most of the tokens are not considered as securities under the EU law. Government officials and regulators are anxious due to the classification of ICOs and tokens, and in the major countries like China, they are considering to ban the whole blockchain use cases.
What does the whitepaper say?
Certainly, it’s also stated in the paper that;
“In many cases, [tokens] represent the advance sale of products that entitle holders to access future networks or consume future services.”
On the other hand, the document also argues that these tokens are not securities but, commercial products. In the white paper, an authorized sponsor’s regime was also summarized in which every ICO issuer, distributing or selling tokens in Gibraltar will require to hire a person who could oversee the sale and make sure that it follows the regulations. Ultimately, the release comes within a long-running procedure of creating regulatory limitations for the blockchain technology within the United Kingdom crown dependency.
Officials Point of View
In February, the representative of Gibraltar Financial Services Commission and Gibraltar Finance Centre said that the execution of the sponsorship scheme was just a part of their market-driven strategy for regulating ICOs and was just an attempt to avert a one-size-fits-all strategy. According to the document, the regime is definitely going to mean the market, but not the regulators. Also, it could define what a good token sale actually looks like.
In December, a blockchain-focused bill was passed by the legislators in Gibraltar and laid the basis for an ICO bill earlier, when an advisory was also issued back in September. It is also stated in the white paper that the Gibraltar Financial Services Commission (GFSC) will;
“Authorize and supervise secondary token market operators”
Also, it will establish;
“A public register of such operators.”
In addition to that, token-related investment guidance will be also regulated by the government, which includes;
- Generic advice
- Product-related advice
- Personal recommendations
The white paper also specifies that by the end of this year, Gibraltar will wrap up its blockchain-related governing. The paper also says;
“A draft Bill is expected to be ready by the end of March 2018. Draft Regulations for the promotion, sale and distribution of tokens should be ready in May 2018. The last of the three Regulations should be completed by the end of October 2018.”