Binance Research

2022-11-28 13:18:53 Self-custody is on the rise and with it, wallets are gaining attention. There are many different crypto wallets out there, and it can be difficult to decide which one is right for you.

Here is the beginning of a three-part thread. For more insights visit
https://research.binance.com/en/analysis


An Introduction to Wallets

To understand how crypto wallets work, one must first understand public and private keys. Public and private keys are strings of numbers and letters that are generated by cryptographic algorithms, and can be used to encrypt and decrypt messages.

The public key serves as an “address” that can be publicly shared. The private key is used to create digital signatures, decrypt messages, and prove that the user of the key is the owner. To learn more, check out this article: (https://academy.binance.com/en/articles/what-is-public-key-cryptography)

In terms of the blockchain, public and private keys are used to maintain balances. The public key is used to generate the wallet address, and the private key is used to sign transactions and verify ownership.

So what are wallets used for? Crypto wallets can be thought of as “key-chains” rather than as conventional wallets. They are interfaces that help generate and store key pairs, as well as interact with different DApps that require signing of transactions.

You may have noticed that your wallet asks you to store a “seed-phrase” rather than a private key. First introduced in BIP-39, developers found an easier way to represent the private keys of an account - 12 to 24 dictionary words rather than a string of letters and numbers.

Seed phrases are also able to generate multiple keys from it and are not cryptocurrency specific, allowing multi-coin wallets like Trust Wallet to store entire portfolios at once. This allows users to only keep track of one seed phrase, while still creating multiple accounts.

All in all, crypto wallets serve as the interface that holds your public and private keys. They don’t actually contain the crypto in your account!

Stay tuned for the second part of our three-part thread: How to Keep your Funds #SAFU Open / Comment

2022-11-25 09:27:00 Happy Friday! The Weekly Market Highlights is an initiative from the #Binance Research team to round up the week, summarizing key market events and views from the team.

Let's get the ball rolling

Macro

Is a pivot on the horizon? Not yet, but one can hope. Minutes from the Federal Reserve meeting documented that it would “soon be appropriate” to reduce the pace of rate increases as officials evaluate the economic impact of recent measures.

Following four consecutive 0.75% rate hikes, the markets now expect the Fed to downshift to a 0.5% hike in the December meeting.

L1

ETH stakers, good news. Ethereum developers decided to consider including eight Ethereum Improvement Proposals in the next major network upgrade termed “Shanghai”. $ETH staking withdrawals made the cut, paving the way for Ethereum to allow stakers to unlock staked Ether.

DeFi

Following a trader’s attempt to short Curve tokens on Aave that left the #DeFi platform with bad debts of ~US$1.6M, the Aave community has come together to discuss the best path forward. This includes proposals to repay the excess debt in the CRV market, and others.

Stablecoins

The stablecoins race heats up. Cardona is set to launch a new stablecoin in January 2023. The U.S. dollar pegged stablecoin, “Djed”, will be an algorithmic stablecoin backed by Cardano ($ADA), and will use $SHEN as its reserve coin.

Separately, Curve released the whitepaper for its $crvUSD stablecoin. crvUSD will be over-collateralized and will use a novel algorithm termed Lending-Liquidating AMM Algorithm (“LLAMMA”) to liquidate deposited collateral to manage collateralization risks.

NFTs

Did someone say “bespoke”? ApeCoin DAO launched their own white label marketplace built especially for the BoredApe YC and Otherside Meta communities. The marketplace will honor creator royalties and offer a reduced-fee structure for sellers.

Magic Eden continued its multi-chain expansion by integrating with Polygon. This is the 3rd blockchain that Magic Eden supports besides Solana and Ethereum. The team aims to partner with Polygon to onboard more global brands and users onto NFTs.

Others

The Bank of Japan announced that it will conduct a CBDC pilot with three mega banks next year. The experiment will run for two years. Separately, the Reserve Bank of India is preparing to conduct the retail pilot of the digital rupee next month.

#Binance announced the launch of the "Industry Recovery Initiative", committing an initial US$1B to support the future of Web3. Jump Crypto, Polygon Ventures, Aptos Labs, Animoca Brands, GSR, Kronos and Brooker Group have also committed to participating.

Check out @CoinMarketCap's new exchange reserve dashboard feature! Given increased demand for transparency by market participants, this tool allows users to monitor exchange reserves in an easy-to-use interface.



Interested to learn more? Be sure to check out the #Binance Research website for more project and macro research reports.

https://research.binance.com/en/analysis

That’s a wrap!
Binance Research Open / Comment

2022-11-24 09:42:41 New #Binance Insights & Analysis.

Interoperability Solutions: Connecting Worlds.

In this report, we address:

A Multi-chain World
General Approaches to Interoperability
Middle Chains
Light and Ultra Light Nodes

Learn more
https://research.binance.com/en/analysis/interoperability-solutions Open / Comment

2022-11-24 06:39:55 New #Binance Launchpad project: Hooked Protocol

Hooked Protocol ($HOOK) is a web3 gamified social learning platform.

Please read the #HOOK research report
https://research.binance.com/en/projects/hooked-protocol Open / Comment

2022-11-22 13:17:31 2022 is the Year Institutions Evolved into Web3. Come on a journey with us and discover the major milestones of the year.

Learn more

https://research.binance.com/en/analysis/institutional-adoption-2022 Open / Comment

2022-11-16 11:21:13 New #Binance Insights & Analysis:
Move: The Next Step in Smart Contract Programming?

In this report, we take a look at the current state of the smart contract language market, answer the question of why we may even need another language, and provide a thorough overview of the key features of Move.

Learn more at Binance Research
https://research.binance.com/en/analysis/move-smart-contracts Open / Comment

2022-11-04 05:09:50 New #Binance Insights & Analysis:
The Emergence of Real Yield

In this report, we cover the new narrative that has garnered the interest of many in the DeFi community - “Real Yield”. We share our views on what investors should consider when evaluating protocols using this metric.

Learn more at Binance Research
https://research.binance.com/en/analysis/emergence-of-real-yield Open / Comment

2022-10-31 12:17:21 New #Binance Insights & Analysis:
Navigating Crypto: Industry Map

The industry map provides an overview of the crypto ecosystem. In this report, we break down different verticals into subcategories, and lay out a few projects in each subcategory. Additional details in terms of projects’ descriptions and/or relevant metrics can also be found in this report.

Learn more at Binance Research
https://research.binance.com/en/analysis/industry-map-oct22 Open / Comment

2022-10-28 06:51:24 New #Binance Insights & Analysis:
zkEVM & the Future of Ethereum Scaling

In this report, we look closer at zkEVMs, dig into the concepts behind zero-knowledge and Ethereum Virtual Machines, as well as analyze in detail the different types of zkEVMs and some of the projects building it.

Learn more at Binance Research
https://research.binance.com/en/analysis/zkevm-ethereum-scaling Open / Comment

2022-10-21 13:18:21 New #Binance Insights & Analysis:
Aptos and Sui: The New Kids on the Block

In this report, we look at the state of the current L1 market, dig into Aptos and Sui and where they fit in, as well as analyze in detail the similarities and differences between the two new projects!

Learn more at Binance Research
https://research.binance.com/en/analysis/aptos-sui-report Open / Comment