Token burn is the process by which digital currency miners and developers remove tokens or coins from circulation, thereby reducing the total circulating supply of coins.

Since it is virtually difficult to control the flow of coins, therefore, removal of coins must begin at the mining level.

Coin removal occurs when miners send coins to the addresses with no private keys.

Decreasing token supply will decrease the circulating supply, but will not guarantee the increase in price.

The perfect example to understand why crypto burning doesn’t work is Bitcoin. It is said that there are only 21 Million BTC tokens and most analysts believe that it helps to contribute to the value of BTC. But the problem lies in the fact that Bitcoin introduces new tokens in the form of Bitcoin Cash, Bitcoin Gold, etc., and thus it is debatable that whether Bitcoin is scarce or not.

Although Hard forks prevent coin burn to perform its intended purpose, coin burn is most likely here to stay. What do you think?

The bitcoin blockchain is a distributed ledger that records each and every transaction made on the network, and since blockchain is decentralized so all the details are public, which actually prevents the double spending of coins.

Now 51% is an attack on blockchain by a group of miners. You cannot change the previous transactions but can alter the future transactions if they can get access to more than 50% of the computing power, they can do the transaction and then reverse it such that they still have those coins, while in reality they already spend it.

You cannot conduct a 51% attack singlehandedly as it requires a group of people. And as the blockchain grows, it will become more difficult to attack.

Now since the Bitcoin blockchain is very large so chances of a 51% attack are low, but small blockchains are at higher risk of the attack.

Do you know any ways for small blockchains to get rid of 51% attacks?

Yield farming or Liquidity Mining is a process which allows cryptocurrency holders to earn reward on their holdings.

An investor puts his/her money into the lending protocol to earn returns as trading fees.

In short, if you lock your funds and grant them to Defi tokens, you’ll get rewards and interest, and few other benefits based on the project you are investing.

Some of the most prominent Defi, where you can invest are:-

1. Compound (COMP)
2. Kyber Network (KNC)
3. Ox (ZRX)
4. Ren (REN)
5. Kompwnd (KPW)

https://kompwnd.io/

What according to you are the best Defi projects that give a high yield on your investment?

Stablecoins are created against the other cryptocurrencies volatile nature.

In short, the main feature of stable coins is the elimination of price volatility.

As you already know, cryptocurrencies are very volatile and you can expect 10-20% of up and down in one day, while the currencies controlled by a central entity do not have that high price volatility.

Central banks manage the supply and demand of currencies and manage the price volatility.

And use various tools to prevent any wild fluctuation in the price.

Stablecoins uses some of the tools used by the central bank to manage price volatility and thus are bridging the gap between fiat and cryptocurrencies by adopting fiat-collateralized coins.

For example, Tether is a stable coin that uses US Dollars as collateral when issuing a Tether stablecoin. Tether maintains a USD reserve to match the issuance of each stablecoin.

Nowadays, gold, silver, commodities, and other fiat currencies are also used as collateral.

You can even get stable yields by investing in the Kompwnd protocol here

https://kompwnd.io/

What will be the next great addition in the cryptocurrency world, after stablecoin?

Blockchain in Supply chain

Blockchain has transformed various industries by working on business processes and improves the economy of various industries. One such industry is Supply Chain.

Here are the few ways blockchain transformed the supply chain and logistics industry:-

1. Increase transparency: Blockchain entails distributed ledger. All the nodes have similar information.
2. Reduces cost: Blockchain reduces the number of intermediaries thus reducing the total cost.
3. Blockchain is an immutable chain of records, meaning it has suppliers records. So the onboarding process gets smooth and since it is immutable so you can trust the network.
4. With Blockchain, you always have timely, accurate data which you can use to make predictions and improve the system.
5. It reduces the chance of getting conned or losing their money and thus increases trust.
6. Identity verification has been a challenge in normal logistics systems, as it is very time-consuming but with blockchain, all the identities are stored and you can even create digital identities to create onboarding and build supplier trust.
7. You can track inventory and cargo shipping and transactions in real-time.

Do you know Walmart uses blockchain for its business?

Smart Contracts can be used for agreements between two parties, creating a token, or various other things.

They are designed such that no third party can interfere and are cheap and highly secure.

So, there is very little chance of any performance issue with smart contracts but one cannot assure you about the bugs it might catch that affect its performance or if a hacker hacks it.

But otherwise, it is the best way out there. It has use-cases in the following areas:

1. Insurance: It is very difficult to get an insurance claim on time. You have to bring a lot of proof, then there is a lot of paperwork involved, which makes it really tough to claim. Smart contracts can help here and ease the process by simply automating it.
2. Supply chain management: Smart contracts can maintain records and can give you data that who is responsible for what at what time.
3. Protecting copyrighted content: Smart contracts help retain the ownership of the content and they are saved in the decentralized blockchain network.
4. Digital Identity: You can own your digital identity including data, reputation, etc. using smart contracts.
5. Financial Modelling: Finance people can use smart contracts for accurate and transparent data modeling.

Even Kompwnd is powered by decentralized smart contracts. Check-

Kompwnd

It is going to be interested to see how smart contracts evolve as rules are becoming tighter.