Nem/USD Trading forecasts and signals

Hackers on Tuesday withdrew $611 million in cryptocurrency from the Poly Network DeFi project, using a vulnerability in the system.The project team called on the exchanges to block the stolen funds.The multinational blockchain platform Poly Network was hacked on Tuesday. Hackers managed to withdraw $611 million in cryptocurrency, which is the largest theft of digital assets in history.The funds were transferred by the attackers to various cryptocurrency wallets. Poly Network posted the addresses of the alleged hackers, calling for blocking token transfers from such senders.The previous anti-record belonged to the Japanese exchange Coincheck, which in 2018 nominally lost over $500 million in NEM tokens, thus surpassing even the infamous Mt.Gox hack.According to experts, the reason for the hacking was a problem with cryptography — hackers somehow forged the transaction signature to steal funds.The administration of the platform reported that after an initial investigation, it was possible to detect a vulnerability in the system. It is possible that among the projects interacting with the Poly Network, and there are dozens of such projects, new victims will be found.One of the Twitter users sent a transaction to one of the addresses containing the stolen funds. In the signature, he warned the hacker that his USDT was blacklisted. In gratitude for the help, the hacker sent $42,000 in ETH to his address. Other users now also send him transactions with congratulations and even recommendations on money laundering.The Poly Network protocol allows you to transfer tokens between different blockchains. It is developed by an alliance of teams behind the Neo, Ontology and Switcheo blockchain ...

Bitcoin (BTC) reached the resistance area of 40,550, but could not break through.Ethereum (ETH) broke through the descending resistance line after creating a double bottom model .XRP (XRP) and ICON (ICX)also created double-bottom models, but were unable to start moving up.Monero (XMR) broke through the descending resistance line after deflecting below the horizontal support area of $192.Kava.io (KAVA) is trying to break through the resistance area of $5.17NEM (XEM) created a higher minimum and regained the horizontal support area of 0.135.BTCOn July 26, BTC rose significantly, reaching a high of $40,581 near the highs of the range.However, higher prices could not be supported, and BTC formed a long upper wick (red icon) and declined.It is currently trading around $37,400.Technical indicators on the daily timeframe are gradually becoming bullish. The RSI is above 50, the stochastic oscillator has made a bullish intersection, and the MACD is growing and has almost moved into positive territory.ETHOn June 26 and July 20, ETH reached a double bottom inside the horizontal support area of $1,760. This bullish pattern was also combined with bullish divergences on the MACD, RSI and stochastic oscillator indicators.After that, ETH managed to grow and break through the descending resistance line. He is currently trying to test the line as a support.If successful, the next nearest resistance area will be found around $2,850.XRPSimilar to ETH, XRP also created a double bottom model on June 22 and July 20. In addition to this, this pattern was combined with bullish divergences in the MACD, RSI and stochastic oscillators.However, XRP has not yet made a significant upward movement, although it has broken through the descending resistance line.The nearest resistance area is at $0.80. This is the resistance level of the Fibonacci retracement of 0.382.XMRXMR has been declining under the descending resistance line since May 18. Throughout the entire downward movement, it repeatedly bounced off the horizontal support area of $192.This seems to have created a descending triangle, which is usually considered a bearish pattern.However, after a deviation below the horizontal support, XMR managed to break through.It has been rejected by the $225 horizontal resistance area and is currently trying to find support. The next resistance level is at $285.KAVAKAVA has been moving up since May 17 and has so far reached two higher lows. On July 23, it broke through the descending resistance line, which had been maintained since the April highs.It is currently trying to overcome the $5.17 resistance. This is both the horizontal resistance area and the resistance level of the 0.5 Fibonacci correction.If it succeeds, it will probably rise to the next resistance at $6.95.ICXThe ICX has been following the descending resistance line since May 20. On June 22 and July 20, it reached lows around $0.63, creating a double-bottom model.Although it has been growing since then, the ICX has not yet broken through the aforementioned descending resistance line.This will most likely lead the ICX to the resistance area at $1.05. This is both the resistance level of the Fibonacci correction 0.5, and the horizontal resistance area.NEMNEM has been moving up since June 22. On July 14 and 20, it created higher lows, thereby confirming the ascending support line.However, he created a short-term double-top model, which is combined with bearish divergences on the RSI and MACD. Therefore, another re-test of the ascending support line may occur.The next resistance target is at the level of ...

Regulated Crypto Exchange of Tokenized Assets and Cryptocurrencies Currency.com expanded the list of tokens for trading. The listing of the crypto platform included 17 tokens of popular DeFi and ICO projects, as well as two stablecoins. Crypto exchange clients currency.com the following tokens are now available for purchase:Stablecoins USDC-USD CoinThe DAI stablecoin is a token of the MakerDAO decentralized autonomous organization.SUSHI-token of the decentralized crypto exchange SushiSwap OMG-token of the OMG Network financial service.BAT-token of the Brave decentralized browser.ZRX is a token of the 0x decentralized exchange service.KNC is a token of the Kyber Network decentralized service.MATIC is a token of the Matic Network platform.WBTC-tokenized bitcoin.AAVE is a token of the Aave decentralized lending protocol.Augur is a token of the Augur decentralized prediction protocol.SNX is a token of the decentralized protocol for creating and exchanging synthetic assets of Synthetix.YFI-token of the decentralized farming service Yearn. Finance.UMA is a token of a decentralized protocol for creating synthetic assets based on the Ethereum UMA blockchain.REN is a token of the Republic Protocol decentralized Dark Pool protocol.OCEAN is a token of the decentralized Ocean Protocol data protocol.BAND-token of the decentralized oracle service Band Protocol.BNT is a token of the Bancor decentralized network for converting ERC-20 tokens.ANT-token is an operating system for Aragon business management.Tokens are available for purchase in the "Bidding" mode with tokens USD.cx and USDT.  Tokens USDC, OMG, BAT, ZRX, and MATIC are available for trading with c tokens USD.cx and USDT.Tokens DAI, SUSHI, KNC, WBTC, Augur are available for trading with the USDT.Tokens AAVE, SNX, YFI, UMA, REN, OCEAN, BAND, BNT, ANT. About Currency.com On the crypto exchange Currency.com more than 2000 tokenized assets are available for trading, including tokenized ones: stocks, ETFs, stock indexes, currencies, bonds, commodities, as well as top cryptocurrencies. You can buy, store and sell tokenized assets and cryptocurrencies, as well as use the “Leverage Trading” mode, which, depending on the type of asset, varies from 2x to 100x. You can add tokens to your account (account) on the crypto exchange with the help of Belarusian and Russian rubles, euros, dollars and cryptocurrencies.Crypto Exchange Activity Currency.com It is regulated by the Decree of the President of the Republic of Belarus No. 8 "On the Development of the Digital Economy", the legislation of the Republic of Belarus and the acts of the Supervisory Board of the Hi-Tech Park of the Republic of Belarus.. Currency Com Limited has a DLT license from the financial regulator of Gibraltar, and is also registered with FinCEN (USA) and FINTRAC ...

Intertrust conducted a survey of 100 large hedge funds. Its results showed that almost all funds plan to significantly increase their investments in cryptocurrencies within 5 years. Their share in the investment portfolios of hedge funds can reach an average of 7.2%. This means that the total amount of investments in cryptocurrencies can reach $312 billion. At the same time, every sixth respondent said that the share of cryptocurrencies in the portfolio of his fund will exceed 10%. A representative of Intertrust said that, as it turned out, the funds that took part in the survey are well aware of both the risks associated with the cryptocurrency market and its great opportunities in the long term. The greatest interest in cryptocurrencies is shown by hedge funds from the United States. At the same time, European funds were more cautious about the prospects for this investment direction. Experts believe that the plans of hedge funds to invest in Bitcoin will not allow the exchange rate of this cryptocurrency to fall below the level of ...

The US Federal Reserve is once again drawing attention to the risk that cryptocurrencies pose to financial stability. This was stated by its chairman Jerome Powell, pointing to the need to strengthen the regulation of cryptocurrencies. As reported by Reuters, this opinion was joined by the US Treasury Department, pointing out that the concern is the lack of regulation of the digital currency sector, and this can be used by rich people to avoid paying taxes. The Ministry considers it necessary to ensure that the authorities receive information about large transfers of crypto assets. The Reuters report notes that following the information from the Chinese authorities about the introduction of new restrictions in the cryptocurrency sector, a sharp drop in bitcoin followed. The first cryptocurrency lost 30% of its value on May 19. Speaking about the achievements in the field of financial technologies and their potential benefits, Powell also drew attention to the potential risks that cryptocurrencies, stablecoins and other innovations can carry for users and the financial ...

Bloomberg news agency has learned that the United States has begun checking the largest cryptocurrency exchange Binance. It is carried out jointly by two regulators: the Ministry of Justice and the tax Administration of the country. Currently, the exchange has not yet received any specific charges and claims. Nevertheless, the very fact of the beginning of the verification had a negative impact on the mood of participants in the cryptocurrency market. After the corresponding message appeared, the Binance Coin token fell in price by almost 9%. A representative of Binance told the press that the exchange always cooperates with all regulatory organizations and takes issues related to compliance with legal requirements seriously. In March of this year, the work of the exchange was checked by another regulator – the CFTC (Commission for Futures Trading). Then she was interested in the issue related to the admission of residents of the United States to trade cryptocurrency derivatives in the absence of the necessary license for this.Read more: Binance: history, features, coins and ...

Nowadays, a lot of cryptocurrencies regularly appear, but there are few really promising ones for investment among them. We have conducted an analysis and selected for you the TOP 10 best Chinese cryptocurrencies that you should pay attention to.NEO (NEO)NEM (XEM)Ontology (ONT)Zilliqa (ZIL)Aelf (ELF)Nebulas (NAS)Elastos (ELA)Waltonchain (WTC)LoopRing (LRC)Wancoin (WAN)NEO (NEO)"Chinese regulated Ethereum" is the name of NEO, the largest Chinese cryptocurrency created by Da Hongfei and Erik Zhan back in 2014. At first, the coin was called AntShare, and only in 2017 it received its current name.Back in 2016, an ICO took place, which attracted $97.5 thousand and 8169 bitcoins (BTC). Since then, the project has continued to develop, and the company has been increasing its staff of developers. At the moment, it employs at least 10 teams.Read more: What is an ICO?Despite the bans imposed by China in the crypto industry and the noticeable mainstream on its strict regulation, NEO has ambitions to become the "No. 1 cryptocurrency" in the country. First of all, due to the fact that its platform is being developed from the very beginning taking into account the requirements of regulators. It is the centralized approach that distinguishes the coin from most Chinese cryptocurrencies.Another difference between the NEO blockchain is compliance with the regulatory requirements of "digital identification". Everyone who works on the platform-whether it is an individual or an organization-is confirmed by a unique digital identification that is verified at the conclusion of the transaction. Even network nodes are required to pass identification before they can conduct transactions or any actions. NEO also supports asset protection, i.e. assets are confirmed by digital identification and protected by law.The NEO founders plan to achieve inter-network interaction of various blockchains-public and private. In fact, the platform offers a middle way between a fully decentralized, unregulated and anonymous blockchain system, and a traditional, regulated system of bank accounts and credit cards.NEM (XEM)The NEM (XEM) cryptocurrency has earned attention for its solutions to some of the most classic problems of the cryptosphere. Despite the fact that the project suffered greatly in 2018 from the pressure of the bear market, it is considered one of the most successful in the industry. The beginning of the development of the platform dates back to 2014, and the release of the Chinese cryptocurrency NEM - the XEM token took place in 2015.Read more: Bulls and bears, as well as other animals on the stock exchangeIn essence, the NEM cryptocurrency is the basic platform for the development of public and private networks using already created modules. Through the open API, users can interact with the platform's network and perform such actions as, for example, concluding contracts for intellectual assets and configuring their properties. This reduces the barrier to entry to the platform and increases security.It is noteworthy that the entire blockchain code was developed independently, and experts note its strong technical innovation. One of such innovations is the POI algorithm (Proof Of Importance), on which, by the way, NEM functions. Currently, the lion's share of coders' attention is focused on the software of the Catapult platform engine. Although the progress of blockchain development is hindered by a small number of developers, but third-party specialists actively use the platform's capabilities to create a variety of dApps.XEM cryptocurrency is used to pay for transactions and services in the blockchain.Ontology (ONT)Another promising Chinese cryptocurrency is Ontology (ONT).  Interesting fact: the blockchain was developed by the team that created NEO. Like NEO, the platform is focused on integrating business into the crypto economy and has a fast and efficient bandwidth. In addition to excellent sharding, among the technical characteristics of Ontology, we should also highlight the Triones consensus system, which provides distributed blockchain matching through the VBFT matching algorithm. Triones nodes operate on five continents.The founders abandoned the idea of financing the ICO project, replacing it with the distribution of part of the ONT tokens to the most active users of the NEO network. It was a good move. But if at first the coins could only be obtained through Airdrop, since cryptocurrency mining was not provided, now the crypto asset is available on many exchanges and exchangers. OWallet and Neon Wallet wallets are provided for its safe storage.Also, thanks to the addition of ONT to the application Crypto.com Wallet & Card, users can purchase coins via credit card and bank transfer, without commissions. And the Visa MCO card allows you to convert cryptocurrencies into fiat money and spend them in more than 40 million services and retail outlets around the world.One of the latest important decisions of the company is the launch of the Paxos Standard (PAX) stablecoin version on its platform, which is designed to make it easier for retail and institutional partners to do business in the Ontology ecosystem. The new token (PAXO) is based on the OEP-4 Ontology token standard and provides an atomic permutation between the main Ontology blockchain and other blockchains.Read more: What are AltcoinsZilliqa (ZIL)Zilliqa (ZIL) is one of the fastest blockchains on the market: its speed increases exponentially with increasing network size. Sharding provides excellent network scaling, with its throughput of 1000 and even 2000 transactions per second.  The platform was launched in 2017. The idea of "sharding" is a key one in the project. It was implemented by dynamically dividing the nodes of the blockchain network into shards (subgroups), each fragment is processed independently and reaches consensus using the secure Proof-of-Work (PoW) protocol. Shards can process transactions in parallel, thereby significantly increasing throughput. In addition, the Zilliqa team is also working on creating a new smart contract language-Scilla, which will be able to work with a wide range of applications, such as automated auctions, collaborative economics and financial modeling.  ZIL is currently traded on various exchanges, including BITBOX, Binance, Huobi, Bithumb and OKEx. The most popular trading pairs with the coin include ETH, USDT and BTC.  Read more: Overview of the Huobi Global ExchangeAelf (ELF)Aelf (ELF) is a blockchain platform for cloud computing and is in the top hundred in the rating of cryptocurrencies on Coinmarketcap. The total stock of Aelf tokens is 1 billion ELF. The investors were Alphabet, Blockchain Ventures, ChainFunder, Draper Dragon and FGB Capital. Of the remaining tokens, 120 million ELF were allocated for mining and marketing.The company managed to create an OS specifically for the development of the blockchain ecosystem. The Aelf test network, which is considered the "next-generation Ethereum", was launched in August 2018. The launch of the main network was planned for the beginning of 2019, but it is still in beta testing.  However, the advantages of the platform are already quite tangible: it is not only fast — up to 15,000 transactions per second, but also uses the same mainchain/sidechain architecture that is implemented in projects such as the Lisk or ICON cryptocurrency. And although the main network uses DPoS consensus, each side chain can choose its own consensus protocol to determine how it interacts with the main chain. This is extremely important to ensure the possibility of interaction with both blockchains and outdated data.ELF is traded daily in pairs with BTC, ETH, USDT in the amount of more than $31 million. Among the crypto exchanges that accept ELF, Binance, Huobi, OKEx, Allbit, Upbit and Bithumb.Read more: What are Stablecoins and how do they differ from other cryptocurrenciesNebulas (NAS)The new generation decentralized platform Nebulas (NAS) provides a search system for all blockchains and has its own token, which is quoted on the leading exchanges of the crypto market, such as Binance, OKEx, Huobi, Gate.io and others.The coin debuted with a price of $2, but then the prolonged crypto-winter made its own adjustments. The decline in the value of altcoin forced the company to lay off 60% of its employees last year. As a result, the solution of peripheral tasks outlined in its roadmap was suspended. Just 7 months before, the team managed to raise $60 million in ICO.The blockchain was created in 2017 on the basis of Ethereum, and the main NOVA 1.0 network started working only in early April 2019. Nebulas Rank (NR) is the main algorithm on the platform used for ranking addresses, smart contracts, decentralized applications (dApps) and other objects in the blockchain. In addition, the algorithm of "encouraging developers" (DIP) and the algorithm of "proof of loyalty" (PoD) are used. Nebulas also releases its own wallet software, available for download on the project's website.Elastos (ELA)Elastos (ELA) is one of the most ambitious and promising Chinese crypto currencies. Its goal is to create a new type of decentralized SmartWeb Internet based on blockchain technology. The platform also offers features such as identification, scalability and DApp construction, which, by the way, are protected by the Elastos Runtime. For example, the main blockchain is protected via PoW and uses the computing power of Bitcoin. In other words, by revealing a block in the Bitcoin blockchain, the miner simultaneously reveals a block in the Elastos blockchain.In 2018, Elastos held an ICO, but in February 2019, a group of investors accused it of fraud and filed a lawsuit in the New York Supreme Court for violating the procedure for the initial coin offering. No matter how well or poorly justified these accusations are: the prices of the Elastos token immediately fell by 20% and continued to decline sharply during this year.  Waltonchain (WTC)The Waltonchain token (WTC) is built on a blockchain that tracks radio frequency identification (RFID) data throughout the supply chain. The total volume of its offer is 100,000,000 WTC.Through a crowdsale held in September 2017, 25 million tokens worth about $10 million were sold. Another 30 million coins of this Chinese cryptocurrency are reserved for mining rewards. By the way, when mining WTC, a combination of three consensus algorithms is used: PoW and PoS in the main network; PoL. in exchange with the leading nodes. In fact, the Waltonchain network is a fork of Ethereum, so the WTC is based on ERC-20 and is compatible with Ethereum wallets.Now the native blockchain cryptocurrency is traded in pairs with ETH, BTC, XRP and USDT on various exchanges,such as Binance, Huobi, OKEx and CoinMex.LoopRing (LRC)Loopring (LRC) is a Chinese cryptocurrency that experts suggest has an exciting future. The protocol used by the blockchain is based on "ring matching". The transaction is not limited to an exchange between two parties. For example, a certain exchange transaction may be complex and consist of a series of exchanges. When matching rings, each of these multiple requests can be executed as the same order / transaction in the chain.Wancoin (WAN)Our review concludes with another Chinese cryptocurrency worthy of investors' attention - Wanchain (WAN). It is also a protocol focused on providing inter-network and intra-network transactions. In fact, the platform is designed to efficiently exchange value between any compatible blockchains, creating a super network of digital assets across the entire spectrum of protocols for this.The native token of the network is Wancoin (WAN). The coin is necessary for cross-and intra-network transactions. It is also used as a security deposit for cross-validation nodes. The Proof of Stake negotiation mechanism is used to exclude collusion between nodes. Since nodes must set up a WAN to participate in the network, the risk of losing access to these funds prevents malicious behavior.The Wanchain cryptocurrency uses three categories of verification nodes:Vouchers - nodes that verify transactions between the initiator and the designated blocked account on which the original asset is stored (to participate in the network service, vouchers must first make a deposit in the WAN);Storekeepers are nodes for managing blocked accounts that perform secure computing (SmPC) functions and are responsible for the key stores of blocked accounts;Validators are common verification nodes: they provide information about the status of blocked accounts and work to verify all transactions that occur on the network.Chinese cryptocurrencies can be one of the best options for long-term investments, since the projects for which they work offer solutions that are in demand by business, therefore they can bring large ...

The regulator believes that the crypto exchange traded securities in the United States without a corresponding licenseSEC fined the crypto exchange Poloniex for $10 millionThe Poloniex crypto exchange registered in the Seychelles received a fine of more than $10 million from the US Securities and Exchange Commission (SEC).The SEC issued a fine for the operation of an "unregistered online digital asset exchange" in the period from July 2017 to November 2019.According to the regulator, Poloniex traded digital assets that were securities. For these operations, the crypto exchange needed to obtain a special license, which it did not do, according to the SEC.The Commission clarifies that in 2017, the management of Poloniex decided to "aggressively" increase its market share by listing digital assets. Such assets are essentially investment contracts, which means that they are securities, the regulator explains.The SEC notes that Poloniex gradually got rid of such assets, but until November 2019, it continued to trade them in limited quantities. Such operations continued until the crypto exchange sold its trading platform.Poloniex agreed to pay a fine of $10.3 million, while not denying or admitting their guilt.Read more: Listing of securities on the stock ...

The consensus algorithm is the rules by which blocks are generated in the blockchain. Depending on the algorithm used, some blockchains have a mining mechanism for extracting new coins, while others have staking, some networks work faster, but are subject to centralization, others are slower, but it is difficult for unscrupulous network participants to take control of them. Therefore, it is important to understand the differences between PoW, PoS, PoA and other consensus algorithms in order to correctly assess the prospects of a blockchain project. We have made a detailed guide on the most popular consensus algorithms presented in advanced blockchain projects.What is the consensus algorithm in the blockchainLet's start with the basics. Blockchain is a decentralized network of blocks containing various data. In cryptocurrencies, these blocks store information about all operations within the network. All blocks are written to the network sequentially one after another and are connected in a chain. In this case, each block contains information about all the previous blocks. You can't delete, edit or change anything from such a network retroactively - after all, you would have to rewrite the entire chain from the very beginning.In the blockchain, a special built-in mechanism called the consensus algorithm is engaged in checking operations and confirming that they are recorded correctly.The blockchain consensus algorithm is a method by which the decentralized nodes of the network reach agreement (or consensus) on the current state of data in all blocks. A node is any computer connected to the blockchain that verifies and confirms transactions, and stores a copy of the blockchain.The consensus algorithm guarantees compliance with the protocol rules and the reliability of all transactions. In other words, it is responsible for ensuring that all nodes of the network agree with the addition of a new block to it. In this way, the consensus algorithm maintains the integrity and security of the network.At the same time, it is important to understand the difference between the consensus algorithm and the protocol:The protocol is the rules of the blockchain, according to which the network nodes interact, transaction data is transmitted and block mining is confirmed.The consensus algorithm is a mechanism for checking the implementation of the rules: whether the balances and signatures are correct, whether all transactions are correct.For example, Bitcoin and Ethereum are protocols, and Proof-of-Work and Proof-of-Stake are consensus algorithms.There are many variants of consensus algorithms. Let's take a closer look at the most popular among the best blockchain projects.Proof-of-Work (PoW)Proof-of-Work is a consensus algorithm that was first introduced in the network of the first Bitcoin cryptocurrency.A little history. The concept was first introduced in 1993, and in 1997, Adam Back, one of the contenders for the role of Satoshi Nakamoto, developed the Hashcash algorithm based on it, which was supposed to protect email from spam. In 2004, Hal Finney, another candidate for the role of Satoshi, suggested using PoW for electronic currencies. And in 2008, this algorithm was used by Satoshi Nakamoto himself in his cryptocurrency bitcoin. Later, Proof-of-Work (PoW) was also used in the blockchain of other early cryptocurrencies: Litecoin, Ethereum (before the launch of the update that launched the multi-year transition to PoS), Bitcoin Cash, Bitcoin Gold, Dash, Dogecoin, Monero and Zcash.The essence of PoW is as follows: network nodes (miners), in order to confirm transactions and not allow other participants to spend the same coins twice, must solve complex mathematical problems (hash functions). The node that first found the solution receives a reward — new coins of the network. At the same time, the complexity of mining protects the network from possible threats in the form of DDoS attacks, 51% attacks (when attackers gain control over transaction confirmation and block creation) and other types of attacks. If the tasks were too easy, attackers could easily break into the network.PoW was a breakthrough for its time and allowed the launch of the first cryptocurrencies. It makes the network decentralized and resistant to hacking.So, Bitcoin is almost impossible to crack — you would need a quantum computer and huge resources to gain control over the network.But with the popularization of cryptocurrencies and their mass introduction, the disadvantages of this algorithm began to become more noticeable. Moreover, now these vulnerabilities hinder and limit the development of early cryptocurrency projects.Among the main disadvantages of PoW:Mining is too energy-consuming. Many nodes in the network compete with each other, constantly performing complex calculations. But in fact, most of them work in vain, since the reward goes to only one node. Bitcoin mining consumes more energy than countries such as Switzerland or Greece; Users have to pay miners fees for verifying transactions. The busier the network, the higher the commissions in it. For small transactions, the commissions may even exceed the amount of the transfer itself;Low speed and poor scalability. PoW - blockchains are sorely lacking in speed. For example, the maximum throughput of the Bitcoin network is only 7-10 transactions per second. Such low indicators are not suitable for mass and everyday use;Centralization of miners who unite in pools. This reduces the security of the network, increases the complexity of mining and contributes to the growth of commissions.Proof-of-Stake (PoS)Proof-of-Stake is a consensus algorithm presented at the Bitcointalk forum in 2011 as an alternative to PoW. The purpose of this algorithm is to try to correct the main disadvantages of PoW, in particular, low speed and weak scalability of the network.In 2012, this algorithm was first integrated into the blockchain of the PPCoin cryptocurrency (currently PeerCoin). Today, such blockchains as Cardano, Binance Chain, IOTA, Nano, TRON, TomoChain and Ziliqa work on the basis of PoS. And in December 2020, after several years of development, the Ethereum network also began the transition from PoW to PoS as part of the launch of the Ethereum 2.0 version.There is no mining in PoS. Instead of solving mathematical problems, new coins are mined through staking-a mechanism that allows adding new blocks by proving ownership of the cryptocurrency of this network, which was previously also called forging. The nodes of such a network are called validators,and their balance is called a steak. The more coins a node has in its wallet, the more chances it has to confirm a new block and get a reward.Thus, staking can be compared with a bank deposit. The more coins are frozen in the network, the higher the reward. For validators, this is an opportunity to earn passive income.But staking, as well as mining, requires expenses and technical knowledge. To become a validator, you need to have the minimum required number of coins. For example, in Ethereum 2.0, this is 32 ETH (about $41,000 at the current exchange rate). These coins must be kept locked in the wallet for at least several months. You will also need to configure the equipment and keep it constantly connected to the network.The main advantages of the PoS algorithm:Low power consumption compared to PoW algorithms;No special equipment is needed (miners);High speed and scalability. For example, the speed of the TRON network is 2,000 transactions per second;Low commissions;Participation in the development of the project. Validators should take part in voting on the future development of the project.The main drawback of the PoS algorithm is the threat of centralization. The validators with the most coins will eventually control most of the network. Therefore, in recent years, blockchain developers have introduced new versions of the PoS algorithm, which will be discussed below.Proof-of-Authority (PoA)Proof-of-Authority is a consensus algorithm that takes into account the "merits" and the rating of validators. It is considered an effective mechanism for private blockchains, was first conceptualized in 2014 by one of the creators of Ethereum, Gavin Wood, and has been used for several years in the Microsoft Azure cloud platform, which includes more than 200 products and services.PoA is a kind of attempt to combine PoW and PoS. There is no mining at all, and, therefore, there is no race of computing equipment, as well as huge energy costs. In PoA, validators do not use the power of the equipment or the number of coins to generate blocks, but their own reputation.Thus, a fixed number of validators who were selected by network participants or project developers are responsible for the network performance. This approach guarantees high transaction processing speed and good scalability. At the same time, validators are interested in ensuring that their work is honest and transparent, otherwise they will lose their status and reputation as a reliable network participant.The main disadvantage of PoA is the possibility of excessive centralization and the lack of motivation of users who do not receive remuneration for mining or staking. Moreover, within the framework of classical PoA, an ordinary user cannot influence the operation of the blockchain network in any way, since this is done by trusted nodes, usually belonging to the same company.Crypto projects using PoA are well aware of the disadvantages of consensus and try to circumvent them in various ways. For example, the developers of the UMI cryptocurrency, in an attempt to get rid of the restrictions of PoA, created their own variation of this algorithm. The main differences between the PoA mechanism in UMI and the classic PoA are decentralization and staking.Decentralization is achieved by dividing the nodes into two key groups:Master nodes - create blocks and confirm transactions. This is the UMI team and the main partners of the project;Validator nodes - ensure the network performance, check the correctness of blocks and monitor the operation of master nodes. Anyone can run such a node.The reward for maintaining the UMI network is available through staking. But since there is no staking in the classic PoA, the mechanism is implemented in UMI using a smart contract. A smart contract is a special program on the blockchain that automatically performs specified actions when pre-specified conditions are reached. The smart contract in UMI ensures the fulfillment of all conditions, the correct operation of the staking and accrues rewards 24/7.Here are other features of UMI staking that were achieved thanks to the smart contract:There is no need to freeze coins during staking. They can be withdrawn at any time without losing interest;Coins are credited immediately to the wallet of users who have full control over their assets;There are no requirements for a minimum stake — a user with any balance can start staking and generate new coins;Security and accessibility for everyone. The user does not need to start the node, configure the equipment and network parameters, understand the technical nuances. It is enough just to connect to one of the existing staking pools in a couple of clicks (today there are two of them: ROY Club and ISP Club) or create your own. At the same time, the pool creators do not have access to user assets, only the users themselves have it;Staking is provided with liquidity in bitcoin. In a glass on a crypto exchange SIGEN.pro More than $12 million has already been raised to support the UMI course. These funds support the exchange rate of the coin and do not allow it to fall below $0.95, while nothing prevents the UMI rate from growing.Thanks to this, the UMI ecosystem has become a unique decentralized environment for the crypto market, allowing any participant to transfer coins inside the network for free and multiply them with the help of staking, which brings up to 40% of new coins per month.At the end of 2020, the test version of the updated UMI network took the 4th place in terms of speed among other blockchains, and the average time for generating a new block in the latest version is only 1 second. Soon these changes will be integrated into the main network. All this makes UMI the optimal blockchain environment available for truly mass use. So, already now the speed of the UMI blockchain is 4,369 operations per second, after the upcoming updates it should increase to 65,535, and potentially it can reach 1 million tps and higher.Delegated Proof-of-Stake (DPoS)Delegated Proof-of-Stake (DPoS) is a type of PoS algorithm created by developer Dan Larimer in 2014. DPoS was conceived as an alternative to PoW and PoS. Its purpose is to deprive validators of the possibility of centralization. Among the well-known blockchains on DPoS: EOS, Steemit and Tezos.DPoS is a more democratic version of Proof-of-Stake. The main difference between the two algorithms is that in DPoS, coin holders (witnesses) transfer their right to approve operations and receive a reward, that is, they delegate their vote to a pre-selected validator (delegate).Any user of the network can become a delegate. But at any time, witnesses can withdraw their vote — this way allows you to avoid excessive centralization and seizure of the network by unscrupulous participants.Delegates are united in a special pool that has the right to make changes to a number of network parameters: the time of extraction of new blocks, their size, and so on. But delegates cannot cancel transactions or perform false operations. Therefore, the witnesses still have power over the network.The main advantages of the DPoS algorithm are high speed and greater scaling. There are significantly fewer nodes running on the network than in PoW or PoS, which allows you to quickly create new blocks.Among the disadvantages: with low activity of network participants, the threat of centralization remains, and it is also possible to conduct DDoS attacks and unfair behavior of delegates, which can cause network failures.Leased Proof-of-Stake (LPoS)Leased Proof-of-Stake is another version of the PoS algorithm developed specifically for the Waves blockchain.LPoS is designed to solve the problem of "property qualification" in the classic PoS, in which users with insufficient balance can not participate in staking and earn new coins. This turns into centralization.As part of the LPoS algorithm, any network participant can transfer their coins to validators, receiving a share of the profit in exchange. At the same time, the coins remain in the user's wallet, but they cannot be used, transferred or exchanged. The rental can be canceled at any time. It is profitable for validators to rent coins, as this increases their stake, and, consequently, the chance of a reward.This approach allows you to earn coins even with a small stake, but makes the network subject to centralization: validators can rent so many coins that they can control the network.Proof-of-Importance (PoI)Proof-of-Importance is another variation of the PoS algorithm developed for the NEM blockchain in 2015.Unlike classic staking, in PoI, it is important not only the number of coins blocked in the steak, but also the user's activity (the number of transactions), and the time of his stay in the network. The more active the user is and the higher his reputation in the community, the greater his income from staking. This encourages participants not to store coins in wallets, but to actively use them.In NEM, the mechanism for encouraging a staker (paying coins) is called harvesting. This is an algorithm for accounting for user activity and its balance. The accrued coins are first transferred to the user's passive wallet, and after the accumulation of "merits" are transferred to his active account. One of the conditions for starting the harvesting is a minimum steak of 10,000 XEM (≈ $2,400).Proof-of-Space (PoSpace)Proof-of-Space (also called Proof-of-Capacity, PoC) is an algorithm that uses hard disk space to confirm a block, and not the computing power of a computer. This is an unusual concept that promises high speed and democracy, but it has not received large-scale distribution among crypto projects. For example, such little-known projects as Burstcoin and SpaceMint work on this algorithm.The miner reserves a certain space on the hard disk for confirming blocks. First, sets of possible solutions to mathematical problems are generated in the hard disk, then mining itself takes place. The miner does not need to look for a solution to the mining problem — it already exists in the memory of one of the hard drives. The larger the disk memory, the more solutions can be stored there and the more chances that this particular miner will find a solution.The advantages of PoC are low energy consumption and the ability to mine from any device, even from a smartphone.Proof-of-Burn (PoB)Proof-of-Burn (proof of burning, PoB) is an algorithm that is an alternative to the classic PoW and PoS.The miner sends coins to a special address, to which it is impossible to find private keys. This means that you can't spend coins from this wallet either - they are burned. As a reward for this, the miner creates a new block and receives a reward for it in the form of new coins of the network. The more coins you burn, the higher the chances of getting a block reward.Advantages of the algorithm: low power consumption and cost-effectiveness, because you do not need to spend money on expensive mining equipment. In addition, if there is a continuing or growing demand, the algorithm can contribute to an increase in the value of the remaining coins -  because their number is constantly decreasing.The main drawback of PoB is that it is suitable only for mature projects in which the main issue of coins has already been completed, and they have something to burn. Therefore, the algorithm is not popular, but it is still sometimes used, for example, in the blockchain Counterpart (XCP).Proof-of-Elapsed-Time (PoET)Proof-of-Elapsed-Time (proof of elapsed time, PoET) is a consensus algorithm from Intel. It is considered one of the most balanced and perfect consensus algorithms and is used mainly by corporate blockchains, for example, Hyperledger.The principle of operation of PoET resembles a lottery. In each node of the network, a random waiting time is generated for a specific block - it is different each time. After that, the node is "frozen" (goes into the waiting period). The block is extracted by the node that has the shortest block waiting time. A special SGX system makes sure that all this happens really randomly.The main disadvantage of PoET is that it requires the mandatory use of an Intel Software Guard Extension processor that supports SGX.In conclusionAs the crypto market matures and blockchain technologies develop, new, more advanced consensus algorithms will appear and the current ones will be improved. They will offer the most optimal solutions to eliminate vulnerabilities and shortcomings of existing blockchain networks.It is likely that in the future, more and more blockchain projects such as UMI will begin to appear, where elements of different mechanisms for achieving consensus and receiving remuneration are successfully combined. This approach will allow you to take only the best of the mechanisms available on the market, minimizing vulnerabilities and increasing the efficiency of the ...