Blockchain – Quantilus Innovation http://email.quantilus.com AI Driven Innovation Wed, 12 Feb 2025 18:40:17 +0000 en-US hourly 1 https://wordpress.org/?v=6.2.6 http://email.quantilus.com/wp-content/uploads/2023/03/Quantilus-FavIcon-1.svg Blockchain – Quantilus Innovation http://email.quantilus.com 32 32 Tips And Advice On Developing Your Website http://email.quantilus.com/article/tips-and-advice-on-developing-your-website/ Wed, 29 Jun 2022 16:54:25 +0000 https://quantilus.com/?p=11189

Tips And Advice On Developing Your Website

Prefer to listen instead? Here’s the podcast version of this article.

These days, business development has become synonymous with digital marketing and online presence – two items that website development is intricately associated with. Your website is now a hub for your business. Leveraging smart CMS platforms, the best websites in the world create more traffic, convert visitors into customers, solve existing customer problems by integrating automated solutions like chatbots, and even announce organizational and product-level updates to the world. Websites also make it much easier for your business to collect data about users and customers. The data can then be analyzed to fix potential issues and create a product stack more personalized for your customers, further empowering your business. As a result, the number of website developers in the United States alone is on the rise, projected to reach 205,000 by 2030.You might be thinking about embarking on a website project in the near future. If so, let’s look at the mindset required, the processes involved and items you need to consider.

 

The Role of the Website in Your Business Operations

Your website is the front office of your business operations. A well-developed website generates more leads, increases sales, and improves customer experience. Moreover, the website for your business can attract organic traffic to increase your brand awareness. It also works as a bulletin board for your company where you can post updates and announcements. Before you reach out to a developer, it’s worthwhile to assess your website’s role in your operations.

 

Additionally, review your website’s touchpoints with your operations and identify the integrations that help your business operate efficiently across functions. Such integrations may include an ERP, a CRM, marketing automation tools, and more. Articulating your website’s entire ecosystem and technologies to a potential developer will facilitate the scoping of the project.

 

Defining the Purpose of the Website

Before you delve into your website project, you need to be clear about the goal or purpose of the website and how it will integrate with your operating business model. Your website may have multiple goals but what’s key is prioritizing those goals to maintain focus throughout the design and build of the site. Some examples of website goals include:

 

  • Drive more traffic, generate leads, re-engage customers and prospects.
  • Improve customer experience through better service
  • Help in attracting potential customers and closing sales.
  • Integrate seamlessly with other systems – especially for transactional websites.
  • Streamlining business workflows and tasks.
  • Grow the organization’s bottom line and increase profitability
  • Attract potential new employees and manage existing employees.

 

Key Features or Functionality

 

Developers will ask about required features and functionality when embarking on a website project. The question is relevant because it helps identify the scale of effort to design and build the website. Having a list of  requirements will help with scoping. Alternatively, you can ask your web developer or partner to include a discovery phase as part of their scope to identify these requirements with the stakeholders and/or users.  To help frame features and functionality for the website for, we suggest framing the requirements as follows:

 

  1. What do I want my website users  to do? These should be actions (e.g. filter and sort products, purchase products, register/create and account, etc).
  2. When users visit my website, what do I want them to see?  Imagine the new website and describe the types of items they see (aside from images and copy). Examples could include animation, videos, infographics, games, help or chat prompts, etc.
 

Additionally, we recommend considering any features that internal teams such as marketing, sales, human resources, or customer service may require that touch the website. For example:

 

  • Marketing may need connect the site to an automated marketing platform or may want to encourage subscribers to a mailing list.
  • Human resources may need to integrate the site to an applicant tracking system (ATS) to automate job postings and applications.
  • Sales may need to have any qualified leads connected to a CRM for proper mapping and follow-up.
  • Customer service may have software or programs such Zendesk or Help Scout that field queries from the website or want any customer related form submissions directed to appropriate contacts. 
 

Websites feature interactivity and functionality that empower businesses, customers, and users. Knowing what your website requires before speaking with a web developer or partner will lead to a more effective and accurate scope and cost estimate.

 

Content and Design

 

Your website stands on its content and design. Good content and design attract more users, increasing website traffic. HTML and CSS are the most-used content and design building languages, with their extensive list of functions, features, and ability to integrate with several front-end and back-end website languages like Javascript, Python, PHP, etc.

 

  • Content Management System

 Maintaining content for a website includes many activities like creating, removing, publishing or editing content or pages. For many years, these processes required web developers.  However, in today’s world, a content management system or CMS provides an an alternative no-code or low-code approach to these processes. CMS platforms like WordPress, Drupal, Magento, or Umbraco offer capabilities for ease of creating, managing, and publishing content for a website.

 

A good content management system removes the pain of coding whenever you want to add or edit your website. Instead, a CMS uses language-agnostic visual tools and interactive workflows that make it user-friendly for non-technical users to create and publish content on a website.  

 

If a CMS is on your wish list, you’ll first leverage web designers and developers to create the back-end infrastructure, front-end experience, and templates.  However, this will mitgate the need for day-to-day resources post-launch. Tap web developers for times when new features or functionality are required or for maintaining the software or plugins.

 

  • Content Migration

When you are building your website, you have to also make provisions for content migration. Content migration is a process through which you move all of your existing website content to your new website/domain or a new platform. This is a complex method and can be made easier with sitemaps, wireframes, and content spreadsheets.

 

  • Digital Style Guide

A consistent look and feel across the website contributes to usability and a positive user experience.  This is where a digital style guide or a user interface (UI) kit comes in. A digital style guide or UI kit is a standardized scheme for all the visual languages on your website, including typography, color palette, spacing, images, icons, button styles, and more. A well-crafted digital style guide creates guidelines for the web development team and works as a reference for future web designs and incorporating new technologies. A digital style guide should always be an extension of your brand but is specific to interactive experiences. You may already have one for your company. If not, consider having the website partner create a digital style guide or UI kit as part of the design scope.

 

Hosting and Maintenance

 Websites also require two things: web hosting and maintenance. Web hosting, at its simplest, is a service that encompasses storing all website-related data, codes, and files on a server and deploying said website live so users can access, view, and interact with its content. You can either have the site hosted internally on your company’s data centers or employ a range of web hosting providers that do the same with a one-time fee or monthly subscription. Leveraging web hosting providers removes the pain and additional operating expense of maintaining website availability (server support and troubleshooting) and security.

 

Remember that before your website goes live, you will have to buy a domain (if you don’t have one already), either from a domain registrar like GoDaddy or your web hosting/maintenance vendor.

 

Website maintenance is probably the most important part of your website’s lifecycle. Keeping the backend server where the website code is stored up and running 24×7 and secure is key. Maintenance tasks include patching and upgrading code and its underlying hardware and software architecture, scheduling regular backups, going through periodic stress and disaster recovery tests, organizing penetration testing and fixing identified vulnerabilities, as well as maintaining all the plugins, extensions, and modules, including CMS. Again, investing in a web hosting and maintenance service provider may provide better value in the long run as they cut down operational expenses and downtime by quite a bit.

 

—

There are 5 billion active internet users in the world today. They access various websites from a pool of about 2 billion and counting. This staggering number of websites means the one that you build for your business needs to stand out from the competition. Content and design are the biggest factors that make a website pop. Alongside that, you should invest in stable, fast, and reliable platforms. Remember: you build your website for the long term, so lean on technologies that help you expand your business and organically create more brand awareness. The good thing about web development these days is the sheer number of available resources. You can either do web coding internally within your organization or hire a web development company to do it for you.

 

If you are a business leader in 2022, having a reliable and effective website for your company should be at the top of your priorities.

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]]> The 10 Most Crypto-Friendly Cities in the World http://email.quantilus.com/article/the-10-most-crypto-friendly-cities-in-the-world/ Wed, 04 May 2022 16:50:43 +0000 https://quantilus.com/?p=10916

The 10 Most Crypto-Friendly Cities in the World

Singapore Skyline - A Crypto-Friendly City

Prefer to listen instead? Here’s the podcast version of this article.

Cryptocurrency is transforming the finance industry to the point where everyday people are now keeping up with the emerging technology. Investing in crypto is so common that some investors put more money into cryptocurrencies than stocks. Along with conventional investment instruments, crypto is now receiving legitimate consideration for serious investment portfolios.

 

That said, some parts of the world are more open to cryptocurrency transactions than others. This article will point out ten of the most crypto-friendly cities worldwide.

 

#10 London

London is a global hub for business, technology, arts, culture, and more. Therefore, it makes sense the city has embraced cryptocurrency. There are 50 bitcoin ATMs in London and about the same number of vendors (big and small) who accept Bitcoin as payment. The city is home to CoinCorner, which claims to be the oldest bitcoin exchange in the United Kingdom. The city is also known for numerous bitcoin and crypto meetup groups, demonstrating Londoners’ interest and openness to cryptocurrencies.

 

#9 Amsterdam

Alongside its culture, food, and nightlife, Amsterdam is quickly garnering attention for its positive cryptocurrency views. The city is home to The Bitcoin Embassy, the organization where the global crypto community initiates various efforts to promote and popularize Bitcoin. Amsterdam is also the home of Bitcoin Boulevard, a street in which most shops, vendors, and merchants accept Bitcoin as payment.

The city has more than 40 vendors that accept Bitcoin and numerous crypto ATMs. This positive attitude towards crypto has made the booming tech city a desirable location for crypto startups and ICOs.

 

#8 Madrid

Since 2021, Madrid has passed legislation to regulate cryptocurrency usage in businesses. While these coins aren’t recognized as “legal tender” yet, the country is making strides. One effort is that Spanish citizens can buy gift cards from various brands using crypto coins. For example, these gift cards can pay for Netflix and Amazon (ES) subscriptions.

 

#7 Prague

In the capital of the Czech Republic, individuals can use cryptocurrencies to pay rent, buy movie tickets, shop, and more. The city is also home to Paralelní Polis, one of the world’s first Bitcoin-only cafes.

 

#6 Miami

The state capital of Florida has around four dozen vendors willing to accept Bitcoin and about 652 Bitcoin ATMs and tellers. The city also hosts the Miami Bitcoin Conference, which is among the world’s oldest conventions in the crypto industry. The city’s government has been making numerous efforts to attract crypto-centric businesses to Miami. Mayor Francis Suarez even proposed investing city funds in Bitcoin and launching a municipal cryptocurrency.

#5 Singapore

After China banned cryptocurrency, many businesses relocated to Singapore due to its crypto-friendly regulations and industry growth opportunities. Singapore regulations surrounding crypto are transparent, ensuring higher certainty and more informed decision-making from companies. About 400 blockchain startups are currently registered in the country.

 

In particular, the Monetary Authority of Singapore has released a “Guide to Digital Token Offering,” which explains how the country’s security laws influence and cover token offerings. Singapore’s Technology Infrastructure Office stated that their regulations do not affect utility tokens, only payment tokens.

 

It is common to find restaurants, cafes, and businesses in Singapore accepting crypto payments. There is no capital gains tax in the country, so companies and individuals holding crypto as long-term investments are not taxed.

 

#4 Toronto

The capital of Canada is showing signs of becoming one of the world’s most crypto-friendly destinations. In this city, residents can pay for various goods and services, such as dinner, drinks, rent, clothes, dentist appointments, and even mortgage payments in crypto (to accepting merchants). Canada is home to NOWPayments, which allows Toronto-based companies to set up crypto-payment gateways. The platform is compatible with eCommerce ventures based on platforms like WooCommerce and Shopify, which reveal positive attitudes towards these currencies. Even many charities accept crypto payments through NOWPayments.

 

Bear in mind that crypto is still not designated as legal tender in Toronto, but regulatory steps to change this are underway. All this makes the city highly desirable for individuals looking to live a crypto-friendly life.

 

#3 New York City

The home to Wall Street is one of the most pro-crypto cities globally. There are multiple places—restaurants, shops, cafes, nightclubs— that accept crypto payments. The city boasts over three dozen vendors accepting crypto payments, some of which include the Bitcoin Store in lower Manhattan and CryptoART in Morningside Heights. Numerous crypto startups and media firms such as CoinDesk, CoinTelegraph, and Decrypt are also based out of the city. New York City also hosts Consensus, one of the largest annual crypto industry events.

 

#2 San Francisco

As one of the most vibrant technology hubs in the world, San Francisco is a major cryptocurrency center. There are more than 100 vendors in San Francisco that accept crypto and over 400 ATMs in the Bay Area. Crypto trading platforms like Coinbase and Kraken blossomed out of San Francisco.

 

#1 Ljubljana

Despite being the smallest city on the list, the capital of Slovenia leads the world in crypto adoption and innovation. Even with a population of less than 300 thousand, the city has 11 Bitcoin ATMs and more than 200 vendors accepting Bitcoin. It has 72 shops and 33 sporting venues also accepting crypto payments. In particular, Tus, one of Slovenia’s largest grocery store chains, also accepts crypto payments.

 

Ljubljana is also known for “Bitcoin City,” a 1.56 million square foot mall in which all shops accept Bitcoin and leverage blockchain technology for business operations. The mall uses the Elly payment system, a digital payment platform that allows merchants to accept alternate payment options such as cryptocurrencies.

 

Ljubljana is also the headquarters of Bitstamp, one of the most popular crypto exchanges. In fact, the number of blockchain enterprises in Slovenia is so high that the government is now passing legislation to regulate crypto holdings and transactions.

 

—

And there you go, the ten most crypto-friendly cities. These cities stand out by their efforts to embrace and support cryptocurrency. By being forward-thinking and accepting crypto, these cities will become known as hubs for the emerging technology while bringing in new businesses, cash flows, talent, and innovators.

 

Interested in discovering how crypto can help your business? Contact us at info@quantilus.com for a consultation to learn how we can help.

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]]> Quantilus Innovation, Inc. Announces Acquisition of Sakha Global http://email.quantilus.com/news/quantilus-innovation-inc-acquires-sakha-global/ Tue, 26 Apr 2022 10:05:15 +0000 https://quantilus.com/?p=10427

Quantilus Innovation, Inc. Announces Acquisition of Sakha Global

Quantilus Expands Commitment to Making Big Data, Blockchain, Internet of Things, Augmented and Virtual Reality, and Metaverse Services Accessible to SMBs.

Metaverse

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Quantilus Innovation, Inc., a trusted provider of software and technology solutions for small-to-midsize businesses, today announced the acquisition of Sakha Global, a product development company with proven experience in building solutions in the areas of enterprise applications, business process management, social media, mobile, and gaming.

Founded in 2005, Sakha Global has built cutting-edge products from proof-of-concept to market release for startups that garnered multi-series funding or high exit valuation from renowned companies, including Facebook, Gartner, and MoneyGram.

The integration of Sakha’s core competencies augments Quantilus’ capabilities and resources in existing verticals, including enterprise system integrations, blockchain, and mobile development, while expanding services in technologies such as the Internet of Things and the Metaverse. Moreover, the addition of the Sakha development resources allows Quantilus to increase its investment in research and development which explores the innovative implementation of emerging technologies for business use cases. As a result, clients benefit without assuming any of the risks.

 “The past few years have demonstrated the critical role technology plays in maintaining business continuity and relevance against the backdrop of globalization and labor challenges,” said Debarshi Chaudhury, Founder & CEO of Quantilus Innovation. “The acquisition of Sakha Global positions Quantilus to better meet demand and serve clients with diversified technical expertise and go-to resources.”

“Quantilus and Sakha are closely aligned in vision and values. Combining our strengths not only affords excellence for clients but also fosters a culture of collaboration, learning, and innovation among the various Quantilus engineering teams across the globe,” says Sakha’s CEO Giridhar Nagaraja. Sakha’s founders, Giridhar and Kumar Keshavamurthy, will both assume leadership roles at Quantilus.

The Sakha Global team will continue to operate out of Bangalore, India, and will complement Quantilus offshore teams in Mumbai, India, and Hangzhou, China, as well as U.S. teams in New York and California. This is the second acquisition for Quantilus, which acquired eNamix, an IT staffing and recruitment firm, in 2018.

About Quantilus

Quantilus Innovation, Inc. is a software development and technology solutions company that offers full-stack development, enterprise systems integration, and technology consulting services, designed to help small-to-midsize businesses achieve maximum business value. Quantilus helps clients innovate their processes to realize growth opportunities and eliminate inefficiencies. Our services are structured around a few chosen practice areas—each providing a comprehensive range of services including mobile, web, eCommerce, artificial intelligence, blockchain, business process automation, cloud services, cybersecurity, and more. To learn more, visit quantilus.com.

 

About Sakha Global

Sakha Global is a leading software technology provider that specializes in product development and technology solutions for enterprise, social media, mobile application, and gaming domains. Sakha’s provides reliable, customer-focused, and cost-effective services with the aim to increase conversions, improve marketability, and optimize available resources. This ultimately creates the most beneficial business impact. The team at Sakha uses their technical mastery when working on many product releases, bringing products to the market faster, with reduced R&D costs and the highest level of quality. To learn more, visit sakhaglobal.com.

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]]> What Are Blockchain Bridges? http://email.quantilus.com/article/what-are-blockchain-bridges/ Mon, 11 Apr 2022 13:57:34 +0000 https://quantilus.com/?p=10271

What Are Blockchain Bridges?

Blockchain Bridges

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The finance industry has seen significant shifts over the past few years with the growing popularity of cryptocurrency. The success of cryptocurrencies has prompted evangelists to propose that the next version of the internet, Web3, should also be driven by blockchain. Development platforms like Ethereum are already working towards making this a reality, creating tokenized applications like DeFi. But as Web3 development creates a complex ecosystem of blockchain scaling solutions, the number of blockchain protocols is also increasing.

To create seamless integrations between these protocols so that assets can move between different chains without trouble, we need blockchain bridges. This article will look at crypto bridging, how blockchain bridges connect blockchain worlds, and why they are pivotal in building Web3.

 

What Is a Blockchain Bridge?

Blockchain bridges are connections between two blockchain ecosystems. Just as a physical bridge connects two physical locations, a blockchain bridge integrates two different blockchain worlds running on similar or varying protocols. This connection allows the transfer of data and tokens between the ecosystems. Bridges help blockchains propagate the ‘distributed ledgers’ beyond the local limits of a mesh network, creating seamless interconnections.

All blockchains are developed in isolated environments, with different rules and consensus mechanisms inside each network. Therefore, two blockchains cannot communicate natively, meaning tokens and assets cannot move freely from one blockchain to another. This is where blockchain bridges come into the equation, as they are the middleware between two ecosystems.

For example, someone wants to exchange Bitcoin for Ethereum ETH. For this to happen, you will need an exchange that transforms Bitcoin into Ethereum. A Bitcoin to Ethereum bridge, such as tBTC, makes this action occur seamlessly.

How Does a Blockchain Bridge Work?

Bridging in blockchain has a few steps that work in tandem to transmit information (assets, contract calls, proofs, state) from the source blockchain to the destination blockchain.

  • Monitoring: An agent known as an oracle, validator, or relayer monitors the state on the source blockchain.
 
  • Message Relaying: When an actor discovers an event happening on the blockchain, it initiates an information transfer from the source blockchain to the destination blockchain.
 
  • Consensus: In some cases, monitoring actors need to be in consensus to be able to transmit information to the destination blockchain.
 
  • Signing: Actors or agents cryptographically sign information being sent to another blockchain.
 

Blockchain bridges are based on the Burn-and-Mint protocol. Tokens are not transferred but are burned (destroyed) on the source blockchain and minted (created) on the destination blockchain.

 

Trusted vs. Trustless Bridges

Blockchain bridges can be either trusted or trustless. A trusted or federated bridge runs similar to a private or permissioned blockchain. A central entity manages and oversees bridge transactions, and a set of criteria is established that an individual must meet to become part of the central federation. Like most centralized operations, there are trust assumptions on the custody of the funds and the bridge’s security. Users make decisions based on the reputations of the bridge and do not control their assets. PolyNetwork and PoS Bridge are examples of Trusted Bridges.

 

Unlike the federated model, a trustless bridge is entirely decentralized and operates via a network of agents that are not centrally governed. Just like public blockchains, anyone can join the network as an agent. Agents are incentivized to ensure bridge transactions are correctly validated. Syscoin bridge is an example of a trustless bridge.

 

Benefits of Blockchain Bridges

The best blockchain bridges enable a multitude of benefits, including:

  • Fixing development issues and lowering transmission costs

Developers building apps for a particular blockchain platform often face the issues of slower transactions between two blockchain ecosystems and higher incurred costs during high-traffic periods and congestion. Using blockchain bridges, developers can easily send the tokens to a blockchain that processes them faster at a lower cost. Blockchain bridges enable developers to continue building apps on their preferred platforms without bearing interoperability headaches or routing costs.

 
  • Greater scalability across different blockchain networks

Both blockchain ecosystems benefit from using a blockchain bridge. First, a blockchain bridge reduces network traffic by distributing token processing across other, less congested blockchain networks. Additionally, a bridge makes the blockchains infinitely scalable by removing the consensus and different ecosystem-specific rules.

 
  • Faster, near-instantaneous payments and settlements

Blockchain bridges resolve scalability issues that popular blockchain networks like Ethereum often face, thus enabling instantaneous peer-to-peer transactions. Payments and settlements are not impacted by network congestion or traffic. Instead, workloads are transferred to lower congestion blockchains for instant processing.  DApps the biggest beneficiaries of blockchain bridges, accomplishing complex transactions in lesser hops and at a faster rate.

 

Examples of Blockchain Bridges

As of March 2022, there is $21.8 billion worth of cryptocurrencies locked in bitcoin bridges. Some of the most popular crypto bridges include:

  • WBTC or Wrapped Bitcoin: The world’s largest blockchain bridge, with $11.28 billion worth of crypto in TVL (Total Value Locked).
 
  • Multichain or MULTI: The largest cross-chain bridge in existence, with a TVL of $6.26 billion.
 
  • Avalanche, Polygon, and Fantom Anyswap: Some of the largest bridges in the Ethereum platform, with a combined TVL of $15 billion.
 

Blockchain bridges have greatly improved blockchain performance and lessoned network congestion. Bridges are crucial for developers and users, enabling interoperability between different blockchain worlds. Future development for blockchain bridges will reduce the token verification overheads, move to the more secure ‘bonded’ and ‘insured’ models, and introduce bridge aggregators for a better user experience across the board. Blockchain bridges are one of the many emerging advancements that are helping improve the blockchain experience that will help increase the technology’s adoption rate.

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]]> What Is Blockchain Technology? http://email.quantilus.com/article/what-is-blockchain-technology/ Thu, 17 Mar 2022 18:05:39 +0000 https://quantilus.com/?p=9528

What Is Blockchain Technology?

Blockchain

Prefer to listen instead? Here’s the podcast version of this article.

Cryptocurrency has taken the financial world by storm in recent years. Cryptocurrency’s rapid growth has pushed tech evangelists to consider the digital currency’s underlying technology, blockchain. Some experts argue blockchain technology will eventually power the internet via and digital worlds like the metaverse. But what is blockchain, how does it work, and can it truly be the framework of the future? Let’s find out.

 

What Is Blockchain?

A blockchain is a growing list of records or ledgers stored across a peer-to-peer network, joined by strong cryptography. Each block contains a cryptographic hash of the previous block (this is how two blocks are connected), a time-stamp of the transaction that the block represents, and additional transaction data. Instead of the traditional way of storing transaction data in a single, central computer, blockchains store replicas of a particular database across various computers in a network. These computers and devices in a network are called nodes.

 

How Does Blockchain Work?

Blockchain is a portmanteau involving block (the data/transaction chunk) and chain (the cryptographic link connecting the blocks). A new block is created whenever new data is added to a network. Then, all nodes in the network update their version of the blockchain ledger to include this new block.

 

Blockchains are immutable, which means a single entity cannot change the data in the blocks. New blocks are only added to a chain when a consensus is reached by most nodes in a network, which is done by verifying and confirming whether the new data is valid. Strong cryptography adds additional security at the node level when processing a transaction. Lastly, since each block contains the cryptographic hash of the previous block, blockchains can be traced from the most recent transaction to the first transaction.

There are two types of blockchains; private and public. Public blockchains allow anyone in a network to read, write and inspect data. On the other hand, private blockchains are regulated by an organization or a group.

 

Benefits of Blockchain Technology

There are multiple tangible benefits of using Blockchain technology, including: 

 

  • Security: Blockchains are essentially distributed ledgers, which means that a single entity does not own them. This decentralization means that blockchain products are more secure and harder to manipulate or exploit.
 
  • Transparency: Blockchains record the immutable transactions and their date/time stamps in multiple locations. Entities with proper access can view this data, providing complete transparency across the mesh network. This is noticeably different from traditional methods where transaction visibility is limited to regulatory authorities.
 
  • Traceability: Blockchain’s distributed ledgers create a trail of records that can be easily audited to track a transaction’s origin. Blockchain’s open traceability is critical in industries prone to fraud and counterfeiting and can also be used to track problems in a supply chain.
 
  • Speed: Blockchain removes third-party mediation, along with the need for paper-heavy, human-error-prone processes. Therefore, traditional methods that switch to a decentralized platform like Ethereum or Binance will experience greater efficiency and speed.
 
  • Automation: Smart contracts in blockchain technology can automatically trigger the next steps in a transaction when specific prerequisites are met. Increased automation using blockchain reduces human interventions in processes, further increasing efficiency while reducing errors.
 

Use Cases for Blockchain

The public Blockchain platform has helped develop many products over the years. Some of which include:

 

  • Cryptocurrencies (Crypto)

Cryptocurrencies are perhaps the best showcase for public blockchain technology. An all-digital currency, crypto uses a public mesh of tokens connected through encrypted trails of data, similar to a ledger. Like blockchain, cryptocurrency is not centrally stored but is spread into tokens that hold monetary value. Bitcoin and Ethereum are the world’s most popular cryptocurrencies, with Ethereum recently driving innovation in the public blockchain domain.

 
  • Non-Fungible Tokens (NFTs)

Another product of blockchain technology are NFTs. NFTs represent decentralized, tokenized forms of digital content. They can be original artworks, videos, songs, documents, and more. Each NFT and its ownership is represented as a token that can be bought, sold, or traded. The proliferation of NFTs and NFT marketplaces has helped digital creators sell their art directly to consumers without third-party regulatory platforms acting as middlemen. Blockchain NFTs have become so popular that organizations that typically sell physical products are now selling NFTs to reach more customers.

 
  • Decentralized Finance (DeFi) Apps

Public, peer-to-peer (directly between two users without routing via a centralized system) blockchain technology has created a platform that many developers use to create decentralized applications (DApps). A large portion of DApps is targeted towards creating alternatives to traditional banking, lending, and financial apps. DeFi apps utilize blockchain mesh networks to provide more accessible, secure, and efficient solutions that do not require paperwork or third-party verification. These DeFi apps are also free from traditional governing authorities like banks, brokerages, or exchanges. DeFi is also pseudonymous and open to all.

 
  • Metaverse

One of the most ambitious projects utilizing blockchain technology is the metaverse—a digital replica of our ever-expanding social universe, replete with marketplaces, interactive experiences, and more. The metaverse strives to be a virtual living space for everyone, built on public blockchains to provide less regulation and instant accessibility globally. Digital avatar represents users in the metaverse. Interactions with other avatars, entities, platforms, and stores can be 100% digital or a hybrid of the virtual and real-world.

 
  • Web3

The current version of the internet is dubbed Web2. It is an ecosystem of consumers and creators built on a mixture of static and dynamic content. Web2 is heavily regulated through internet providers like Comcast and Jio, service providers like Meta, Google, and Amazon, and authorities like governments. Web3 builds on blockchain technology’s public and accessible nature (largely the Ethereum platform) to provide a public internet void of regulation. In Web3, data is user-owned and controlled, transactions are based on cryptocurrency and peer-to-peer networks, and transmissions are strong-encrypted. Web3 will be faster, decentralized, and not owned by a single entity.

 

The buzz around decentralized products like cryptocurrency, NFTs, and DeFi has brought blockchain to the forefront of emerging technologies. Furthermore, other projects like the metaverse and Web3 place an even greater emphasis on blockchain technology. For blockchain to transition to mainstream relevance, the ambitious undertakings need to deliver on their promises and iron out bugs, performance, and security issues. With big corporations like Google, Meta, and Microsoft interested in developing solutions using blockchain, a future of public, accessible-to-all technologies may be here sooner than we expect.

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]]> The Ultimate Guide to Smart Contracts http://email.quantilus.com/article/the-ultimate-guide-to-smart-contracts/ Thu, 17 Mar 2022 18:05:31 +0000 https://quantilus.com/?p=9527

The Ultimate Guide to Smart Contracts

Smart Contracts

Prefer to listen instead? Here’s the podcast version of this article.

As the world shifts towards digital and automated processes, traditionally manual tasks are being overhauled to incorporate modern technologies. This includes contracts, which may eventually be replaced by smart contracts that utilize blockchain technology.

In general, a contract is a written and signed agreement between two parties on a set of conditions. A smart contract is a digital contract written as a computer program to be executed once preconditions are met. They are helpful in various transactions, such as dispensing a bottle in a vending machine, to more complex cases like real estate or supply chain.

 

What Is a Smart Contract?

Smart contracts are digital contracts that are defined and programmed in computer code. Additionally, they self-execute when the conditions of a contract are met, removing the need for manual involvement. Recently, smart contracts have gained popularity because of blockchain technology, which provides unprecedented levels of security and immutability. Smart contracts utilize the blockchain’s distributed and decentralized network to store and execute the code written in smart contracts.

 

Types of Smart Contracts

Fully-programmed smart contracts are called in-code contracts. Conversely, ancillary contracts complement text-based agreements and automate parts of its transaction.

 

How Do Smart Contracts Work?

Programmers code smart contracts with necessary data inputs and security measures on a smart contract platform. Afterward, they are deployed and encrypted on a smart contract blockchain like Ethereum. The contract is then ready and waiting for specific conditions to be met. Once conditions are met, the smart contract will take action (execute) according to the contract’s directions.

 

Contracts can also invoke other contracts if stipulated, and all transactions are recorded on the blockchain. These contract transactions are immutable and cannot be modified once recorded on a network, which provides a high level of security.

Examples of smart contract use-cases include, helping identify payments, fulfilling orders, settling insurance claims, and defining financial market actions.

 

Ethereum-Based Smart Contracts

Ethereum is a public, permissionless blockchain network that launched in 2015. It became notable with its cryptocurrency token, Ether. The Ethereum network is now the go-to blockchain network for smart contract deployment, partly due to its huge community of developers. Additionally, Ethereum’s network is fast, with speeds beating BItcoin’s network. Ethereum-based smart contracts are written in the programming language, solidity.

 

Benefits of Smart Contracts

 
  • Automated: The contract’s execution is digitally automated, with no manual actions involved.
 
  • Efficient: The absence of a third-party or central agency makes performance much more efficient compared to traditional contracts. Furthermore, contracts are immediately executed once conditions are satisfied.
 
  • Programmable: Contracts become programmable to modify or replicate at scale.
 
  • Trust and Transparency: Blockchains like Ethereum publish transaction data publicly, building trust among contract stakeholders.
 
  • Traceable: All contract executions and transactions are permanently recorded in the blockchain’s network, allowing traceability of events.
 
  • Secure: Neither the smart contract nor transactions on a network can be modified or deleted, as the records are immutable on encrypted, smart contract blockchain networks.
 
  • Cost-effective: Smart contracts eliminate the presence of intermediaries who charge fees.
 
  • Independent: Smart contracts do not require a central authority, legal system, or external enforcement mechanism. However, they can help map legal requirements into an automated process.

 

Use Cases for Smart Contracts

Smart contracts can be leveraged for numerous transaction-based scenarios in any industry. Cryptocurrencies use a preliminary form of smart contracts for transactions. Some notable use-cases for smart contracts are:

 
  • Supply Chain: Supply chain and logistics involve the movement of goods and the responsibilities of various participants. Smart contracts can be used to help automate this complex process.
 
  • Vendor Relations: Vendor relations, like buyer-supplier, involve contractual agreements that can be deployed as smart contracts.
 
  • Financial: A wide variety of DeFi applications are built with smart contracts. Scenarios like releasing payments or funds based on conditions or financial penalties levied for specific events, actions, or results can be smartly contracted. This allows for fast and secure processing.
 
  • Real Estate: The costs, delays, and ownership criteria in real estate transactions can be written as smart contracts to reduce expenses and increase efficiency.
 
  • DAO: Decentralized autonomous organizations (DAOs) are a collective of users representing a virtual organization without any central authority. A DAO’s community rules and protocols are coded into a smart contract blockchain platform, allowing the organization to operate without human oversight.       

 

 

Smart contracts are playing an increasingly significant role in business. Though we are still in the early days of blockchain-based smart contract adoption, companies recognize the multitude of use-cases for the technology and the benefits they provide. The greater efficiency, security, reduced costs, decentralization, and more make smart contracts highly desirable to businesses willing to adopt the emerging technology. As the blockchain continues to gain traction, smart contracts will likely become more prevalent in everyday business operations, and new use-cases will emerge.

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]]> What Are Decentralized Apps (DApps)? http://email.quantilus.com/article/what-are-decentralized-apps-dapps/ Sun, 27 Feb 2022 04:02:00 +0000 https://quantilus.com/?p=9454

What Are Decentralized Apps (DApps)?

Decentralized Apps (DApps)

Prefer to listen instead? Here’s the podcast version of this article.

Applications have become a staple in our daily lives, as our computers and smartphones are filled with them. Although applications have been around for decades, the first decentralized app or DApp debuted only in 2009. This DApp is known as Bitcoin. What makes DApps different than traditional, centralized apps is that they are built on blockchain technology. Continue reading to find out more about DApps, how they work, their benefits, and some examples.

 

What are DApps?

Decentralized apps, also known as DApps, are software applications that typically run autonomously on open-source, peer-to-peer, public blockchain networks. DApps provide the same functionalities as popular consumer applications and can be developed for nearly any real-world use case.

 

However, since DApps do not depend on centralized frameworks, they forgo the concept of a single entity owning the app. Instead, ownership is diluted into multiple tokens that live on the blockchain via distributed ledger technologies. Lastly, DApps combine front-end user interfaces with smart contracts.

 

Understanding DApps

Centralized Apps

Conventional digital applications are used for countless functions, including financial services and  emails, to dating and food delivery. Centralized apps often combine a front-end user interface with codes executing from a back-end server or a cluster of servers. These apps are operated by a single company and must follow regulations imposed by governments and regional authorities.

 

Centralized apps are offered via distribution platforms and marketplaces like app stores. When users download these apps, a copy of the executable code is pushed to their device, typically smartphones or tablets. The device then interacts with the app’s back-end servers to provide the required functionalities. Lastly, while consumers offer varying quantities of data to each app, the ownership of the collected data and app belongs to the developers and publishers.

Some of the most popular centralized apps include Facebook, Google, Netflix, Amazon, and TikTok. They all run from a centralized server stack from their parent company and operate within geopolitical regulatory limits.

 

DApps

While DApps often provide the same front-end user experience as their centralized counterparts, their user interface is built on smart contracts. These smart contracts are standalone pieces of code that live and run on the decentralized, peer-to-peer, public blockchain network.

 

The logic written in the smart contracts determines a DApp’s functionalities instead of code written by an individual or a company. The ownership for DApps is shared, meaning no single person or group owns them. When downloading a DApp, consumers pay a small fee using cryptocurrency directly to the developer and receive a smart contract in return.

 

Most DApps run on the Ethereum platform. Examples of top DApps include BitTorrent, Audius, Metamask, Augur, Golem, and Gnosis.

 

DApps Pros

  • DApps do not run on central servers or networks but are instead distributed over blockchain networks. This means DApps are not owned by a single person, entity, or organization.
 
  • DApps utilize open-source codes and APIs in smart contracts. This allows the codes to be inspected by anyone, unlike the black-boxed proprietary codes created by centralized applications like Facebook and Twitter.
 
  • Since DApps are not deployed out of a singular node or a cluster of centralized nodes, they are immune to common hacking or data breach attempts.
 
  • DApps do away with regulatory bottlenecks imposed by central regulatory agencies or authorities. This allows DApps to perform at faster speeds than centralized apps.

 

DApps Cons

  • DApps run on niche technologies like blockchain and cryptocurrencies. The lack of mainstream adoption makes developing DApps much more expensive and cumbersome.
 
  • The rollouts for DApps lack centralized supervision, making bug tracking and fixing more challenging than conventional applications.
 
  • DApps have a considerable performance overhead, and scaling is more complicated than centralized apps.

 

Examples of DApps

Here are some popular blockchain DApps today:

  • PancakeSwap provides a decentralized currency exchange built on Binance Smart Chain. With a circulating supply of 248 million CAKE tokens, the market cap for PancakeSwap sits at $2.7 Billion. This DApp offers significantly lower crypto exchange fees.
 
  • CryptoMines is an NFT-based game built on the Binance network. Users in this SciFi play-to-earn game traverse through the metaverse in search for ETERNAL, a mineral that allows them to live another day and make profits. The ETERNAL tokens and NFTs mined in the game can be exchanged for real money.
 
  • Chainlink is a secure middleware that promotes an open standard for secure, decentralized data inputs. It essentially works as an ‘oracle system’ for validating data from external feeds. Chainlink has become so popular that Google is testing it as an intermediary for their BigQuery data warehouse, a PaaS (Platform-as-a-Service).
 
  • Gnosis and Augur are decentralized market platforms with built-in forecasting tools that help predict trade benefits. Both DApps utilize real-world event predicting mechanisms like “Wisdom of the World” and ERC20 tokens.
 
  • Brave is a free internet browser with more than nine million active users. The Brave browser aims to create a blockchain-based digital advertising and services platform to give information control and privacy back to users. It utilizes Google’s open-source Chromium engine.

 

The tech industry is beginning to heavily invest in DApps, with multiple corporations like Meta, Google, and Microsoft announcing their interest in the emerging technology. Furthermore, DeFi  also played a significant role in the increasing interest in DApps. While Bitcoin was technically the first DApp, recent developments have primarily been driven by the Ethereum platform. As investors and the public become increasingly knowledgeable and comfortable with the technology, DApp development and adoption will continue to grow.

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]]> What Is Decentralized Finance (DeFi)? http://email.quantilus.com/article/what-is-decentralized-finance-defi/ Sun, 27 Feb 2022 03:45:15 +0000 https://quantilus.com/?p=9444

What Is Decentralized Finance (DeFi)?

Prefer to listen instead? Here’s the podcast version of this article.

The advent of cryptocurrencies has turned the traditional financial market upside down. Blockchains paired with cryptocurrency have opened a new, radical vision of the future that big tech and everyday consumers are investing in. One umbrella term that has emerged in this context is decentralized finance or DeFi — a futuristic vision of the financial world consisting of public, secure, peer-to-peer, and near-instantaneous transactions.

 

What Is DeFi?

DeFi is a broad term covering emerging financial products, instruments, and services not tied to traditional governing authorities like banks, exchanges, and brokerages. DeFi runs on secure, distributed public ledgers leveraging blockchain technology and smart contracts.

No regulatory oversight in DeFi allows users and organizations to make financial transactions in real-time. Since DeFi is peer-to-peer (directly between two users without any routing via a centralized system), decentralized finance companies are commonly global while offering typical financial services like lending, insurance, trading, earning interest, and investing. Cryptocurrency is one of the most recent examples of decentralized financial systems.

 

How Does DeFi Differ from Centralized (Traditional) Finance?

While the services offered by DeFi systems are similar to those of traditional, centralized financial systems, there are areas where they are fundamentally different.

 
  • Banks and other regulatory authorities store money for their customers in centralized finance. In DeFi, money is stored in digital wallets that the customer owns and controls.
 
  • Centralized finance works via mutual trust. Customers place their faith in banks and other financial institutions that store money, hoping they will not invest in risky borrowers or plans. The Great Recession revealed that these institutions could easily break this trust. DeFi removes these middlemen, allowing consumers to own their money and control its flow.
 
  • Transactions in centralized finance are routed via several regulatory authorities before they are approved, which often takes multiple days. Payments via centralized methods are also prone to bottlenecks, bias, and country-based regulations. Meanwhile, financial transactions in DeFi happen almost instantaneously.
 
  • Centralized finance ties user identity to each transaction, while in DeFi, payments are anonymous.
 
  • Centralized financial instruments must approve consumers’ submitted applications before making transactions. Additionally, centralized financial institutions gatekeep a great deal of information from customers for regulatory reasons. This process has perpetuated several socioeconomic biases. On the other hand, DeFi is available to everyone and has public ledgers, meaning anyone can look at the data and understand how the system works.
 
  • Centralized financial markets are human-operated and have standardized daily start and stop times accordingly. Conversely, DeFi markets are globally operated and are always open.

 

How Does DeFi Work?

DeFi is based on the same technology that drives cryptocurrencies, the public blockchain. A blockchain is a list of distributed and secure ledgers containing transactional data.

Blockchain is comprised of data blocks that have transactions recorded in them. These blocks are chained together to form a complete ledger. The peer-to-peer, public nature of blockchain means anyone can access the blocks, but only verified users can validate the transactions. Once the transactions in a block are verified, it is closed and encrypted. A block’s information cannot be altered without changing the entire chain of corresponding connected blocks that house the same data. This makes modifying blockchains impossible, further enhancing security,

Applications that handle transactions and run the blockchain are called decentralized applications or DApps . DApps leverage peer-to-peer financial transactions, which means two users can directly exchange currencies for goods or services without third-party systems or authorities. Most DApps in DeFi utilize the Ethereum network.

 

Ethereum’s Role in DeFi

Ethereum is the world’s second-largest cryptocurrency in market share after Bitcoin, with a market cap of 27 Trillion dollars (19.19% of the total crypto market) at the time of writing. Ethereum blockchains drive around 70% of DeFi’s entire infrastructure, as ether tokens are the preferred dApp currency. There are a few reasons for this.

  • Ethereum has expanded into a software platform that developers can utilize to build DApps that natively take advantage of secure and public blockchains, ether tokens, and peer-to-peer technologies.
 
  • DApps built on Ethereum work seamlessly with each other, enabling users to access several markets and applications easily.
 
  • Decentralized cryptocurrency, smart contracts, and tokens in DeFi are built on Ethereum, ensuring greater freedom, security, anonymity, and speed.

 

What Can You Do with DeFi?

DeFi allows consumers to leverage all centralized financial activities, including:

  • Sending money Instantaneously: Consumers can use DeFi to send and receive money across the globe instantaneously. With no intermediary bottlenecks, two users from anywhere in the world can engage in direct, immediate transactions.
 
  • Streaming Money: DeFi and its apps allow users to stream money over the globe. In this context, streaming money means continuous payments over time. An example of this is sending salaried paycheck to employees.
 
  • Lending and Borrowing: DeFi offers a worldwide lending network, enabling peer-to-peer lending and borrowing. Decentralized lending is an anonymous exchange of funds between two parties where the borrower provides collateral. The collateral is automatically transferred to the lender if the loan is not repaid. DeFi also introduces pool-based borrowing, where multiple lenders provide funds (pool) for borrowers.
 
  • Exchanging Currency: Customers can exchange one currency for another via decentralized exchanges. For example, users can exchange ether tokens for U.S. dollars.
 
  • Trading and Derivatives: DApps like dYdX, Augur, and Polymarket help traders and users delve into advanced trading. In DeFi, the market is open 24/7, granting users complete control of their assets. Derivatives in DeFi are gaining significant market interest due to the absence of intermediaries and quick transaction speed.

 

 

DeFi trends are shifting how the world thinks about money and financial institutions. As blockchain-based concepts like the metaverse and Web3 come to fruition, DeFi and DApps will continue to evolve from proof of concept to proof of stake. Ultimately, the success of DeFi will depend on the long-term reliability and adoption of blockchains. Overall, the battle between centralized finance and DeFi should benefit consumers, as it will create more avenues for investing, trading, and saving for users.

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]]> Emerging Tech Trends from CES 2022 http://email.quantilus.com/article/emerging-tech-trends-from-ces-2022/ Thu, 03 Feb 2022 21:27:23 +0000 https://quantilus.com/?p=9372

Emerging Tech Trends from CES 2022

CES 2022

Prefer to listen instead? Here’s the podcast version of this article.

Since its inception in the 1960s, the Consumer Electronics Show (CES) has been a portal into the future, highlighting the latest cutting-edge technology. Like CES 2021, most of CES 2022 was virtual, but that did not deter companies from showcasing their latest products and findings. Product innovations shifted from 2021’s health and safety-oriented needs to 2022’s focus on eco-friendliness, hybrid working, wellness, and privacy. Below are the most significant trends that emerged from this year’s conference.

 

Electric Cars and Autonomy

Multiple electric cars were unveiled as part of the ‘ongoing electric car race,’ with most major car manufacturers showing off their latest and greatest.

 

The most talked-about vehicle was BMW’s iX Flow. The German car manufacturer collaborated with E-ink, a company known for producing technology used in popular e-readers, such as the Kindle and Nook. The collaboration sees BMW using E-ink’s Prism technology, which is a swath of electrophoretic microcapsules laminated atop a plastic film roll. This technology allows the car’s exterior to change color at the touch of a button. This concept vehicle can toggle between black and white, showing a radical vision for the future of cars.

 

The other electric car that created a significant buzz came from the unlikely contender, Sony. Dubbed Vision-S 02, this all-electric SUV is the next iteration of Vision-S 01 that the electronic giant unveiled at last year’s CES (Vision-S 01 is currently being tested on European roads). Sony stated that their line of electric vehicles would eventually be configured to achieve level 4 of autonomous driving. Level 4 is nearly fully automated driving, with optional human overriding. Both Vision-S cars currently sit at level 2 ‘partial’ autonomy, which requires human monitoring at all times.

 

Autonomous driving (ADAS/AD) was on full display this year, with multiple manufacturers revealing their in-progress projects. General Motors showed off the evolution of their hands-free Ultra Cruise ADAS system that can now handle 97% of all driving scenarios. Additionally, Chinese eclectic vehicle manufacturer, JiDU, announced their first vehicle to have level 4 autonomy.

 

Excitement around ADAS/AD culminated in an autonomous car race. Autonomous racing teams from around the world converged on the Las Vegas Motor Speedway to compete against each other for the fastest time.

 

Blockchain and the Metaverse

Cryptocurrency and blockchain technologies were widely featured throughout the show. Companies like Samsung and Hyundai presented their versions of integrating several blockchain-built products.

Samsung announced the world’s first TV with built-in NFT support. Its 2022 lineup of smart TVs will now come with features that allow digital creators to showcase their art in the form of NFTs. Prospective buyers can preview an NFT before buying it and see the history of the NFTs and their related metadata. Samsung also explained that the TVs would intelligently tune the display settings to match the art creator’s preferred preset for their art. Thus, the artworks are represented in their most original, true-to-life quality.

 

Hyundai went all-in on the metaverse with their concept of ‘metamobility.’ According to Hyundai, metamobility expands human reach through robotics and metaverse. This looks like a future where robots are used as bridges between real and virtual worlds, and automotive vehicles become keys to access the metaverse. Hyundai’s Mobility of Things (MoT) concept will also use robots to expand mobility to traditionally inanimate objects.

 

The Increasing Focus Towards Mobile Devices and Platforms

The competition for mobile platforms took center stage again. Major players went all-in on shifting towards on-the-move platforms. AMD showcased their Ryzen 6000-series of processors that should arrive in laptops next month. Compared to existing Ryzen 5000 processors, the new chips offer 11% better single-core and 28% better multi-core performance, 2x better graphics, and improved thermals and battery life. Ryzen’s rival, Intel, was claimed similar benefits with their 12th generation Alder Lake processors.

 

For laptops, the focus was on dual and foldable screens. ASUS went the foldable display route with its beautiful Zenbook 17 Fold OLED. Lenovo took the dual-screen approach with its ThinkBook Plus Gen 3, which delivers an 8-inch, secondary display on the right-hand side of the laptop.

 

As for mobile phone manufacturers, OnePlus, Samsung, HMD Global, and TCL all teased or revealed new 5G capable smartphones.

 

Accessible Healthcare and Wellness

Similar to last year, companies highlighted their range of healthcare and wellness-focused products. This year, accessibility was the name of the game, as we saw a shift towards making healthcare and wellness tech widely accessible.

 

Omron Healthcare announced their new range of connected remote patient monitoring devices, including a blood pressure tool, part of their VitalSight moniker. These tools use cloud-based central data repositories to easily share user data between patients, doctors, and medical institutions.

 

Other interesting products include:

  • Avokad’s nutritional-needs tool collects data by using nano-sensors and AI to analyze ketones from a user’s breath
  • Circular Ring’s smart ring tracks sleep patterns and activity trends
  • BBalance’s mat-based scale aims to improve posture
  • Caregiver Smart Solution’s non-intrusive array of home sensors that monitors seniors and alerts caregivers if adverse changes are detected

 

With major players opting out of a physical presence due to pandemic woes, CES 2022 felt like the previous year. However, positive outcomes emerged, with key innovations centered around sustainability, accessibility, and autonomy. Furthermore, metaverse, electric vehicles, mobile devices, smart home, and wellness tech were highlights.

CES 2022 saw emerging technologies from the 2021 show evolve into production-ready versions. Looking ahead, blockchain, Web3, self-driving cars, smart homes, and other budding technologies already have us excited about next year’s show.

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]]> What’s a DAO? http://email.quantilus.com/article/whats-a-dao/ Fri, 21 Jan 2022 16:10:50 +0000 https://quantilus.com/?p=9331

What’s a DAO?

Prefer to listen instead? Here’s the podcast version of this article.

Business structures typically involve a hierarchy of leaders who make decisions for the company. Recently, a new organizational structure has emerged: Decentralized autonomous organizations or DAOs. DAOs are an emerging method of handling an organization’s finances, which emphasizes democracy and utilizes blockchain technology. This article will offer a beginner’s introduction to the nature of DAOs, how they work, and a few examples of currently operating DAOs. 

 

What Is a DAO?

A DAO is a collective of internet users who contribute currency into a shared bank account, usually a crypto wallet. 

While DAOs are organizations, they differ from traditional companies and financial entities. Unlike their traditional counterparts, DAOs don’t follow a general leadership hierarchy and are democratic. All decisions are made collaboratively and implemented by a community that follows the rules enforced via blockchain. 

These internet-native, community-led organizations are owned and managed by their members, with no one member above another. There are no boards, committees, or executives. Instead, rules previously agreed upon are hardwired via code and executed automatically by the online network that powers the DAO. Decision-making is done via group voting within specified periods, and the entire process operates online. Fundamentally, DAOs were created to minimize and eliminate human error and unethical handling of funds. 

Generally, DAOs fall into two categories; blockchain-based open-source projects and investment collectives. Depending on the nature and objectives of a DAO, it can operate in ways similar to investment firms, LLCs, or VC firms. One example of this is PleasrDAO, which is a collective of crypto investors that purchase high-value NFTs. The type, governance styles, rules, and structure of DAOs can significantly differ, depending on their goals and the individuals comprising them.

 

How DAOs Work

DAOs are powered by blockchain technology and smart contracts. These two pieces act as a DAO’s backbone, executing and maintaining the structure and systems of governance. The blockchain serves as a digital and decentralized record, while smart contracts implement (via automation) a set of rules coded into the blockchain. For clarity, smart contracts are agreements built into the blockchain infrastructure. They contain a set of rules to be deployed if/when certain conditions are met. 

In DAOs, day-to-day governance is not undertaken by any person but through these smart contracts. Unlike traditional organizations, where decisions are made by a board of directors, upper management personnel, and high-level executives. The smart contacts contain previously agreed-upon rules and processes that are coded into the blockchain and implemented automatically anytime action has to be taken. These rules cannot be altered or bypassed without the DAO’s members’ majority consent. 

Once rules have been conceptualized, ideated, and finalized, they are hardcoded through smart contracts. Usually, once this is complete, DAOs initiate a funding phase, inviting investments from anyone who wants to put in money. Investors participate by purchasing the DAO’s particular form of cryptocurrency (whichever the DAO chooses to use). Once funding is complete, the DAO is operational and makes decisions through collective consensus. 

Additionally, instead of a select number of individuals deciding the fate of the DAO, every member has a vote in all decision-making. This setup motivates members to be actively engaged and provides higher levels of transparency. 

 

Examples of DAOs

● Dash

Both an open-source cryptocurrency and a DAO, Dash is considered the first DAO. The organization is run by a section of its users, called masternodes. Masternodes are computers that put in extra work and heavily invest in Dash tokens. 

The altcoin Dash stems from Bitcoin protocol, and Dash has a governance system built to address the shortcomings of Bitcoin. The organization splits payouts (rewards) into three segments: 45% to masternodes, 45% to miners, and 10% to its decentralized governance fund. 

 

● Steemit

Owned by a private New York-based company called Steemit Inc., the steem blockchain aims to monetize social media platforms while building an online community. Users can submit work proposals that will benefit the platform, and if the proposal receives enough votes, the user is paid for completing the project.

 

● Uniswap

Uniswap refers to a company and a DAO. It is a decentralized finance protocol that allows for cryptocurrency exchange and is built by a company of the same name.

Uniswap launched a governance token in 2020 called UNI that allows its community to have a say in the platform’s development. This means that those with UNI tokens can submit proposals for new features and/or vote on what proposals move forward. 

 

● Augur

Developed by the Forecast Foundation and advised by the co-founder of Ethereum, Augur is a decentralized platform that lets users formulate prediction markets on any subject. 

 

Over the past few years, DAOs have begun to emerge. Their unique form of pooling finances and achieving real-world objectives through digital, decentralized currency and transactions has gained momentum. While not the norm yet, DAOs have opened up exciting possibilities and ways to evolve global economies for decades to come. 

For more updates and news on tech trends and emerging technologies, continue to check our blog. Lastly, if you are curious how Quantilus can help your business or would like more information, contact us at info@quantilus.com, and we can set up a time to talk.

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