Schnorr Signatures and Their Use in Bitcoin

What are Schnorr signatures?
Schnorr signatures are a digital signature scheme developed in 1991 by German cryptographer Claus-Peter Schnorr. In 2020, this scheme was included in BIP-340 as an alternative to the Elliptic Curves Digital Signature Algorithm (ECDSA) and was implemented in the Bitcoin network in November 2021.

What is a digital signature?
A digital signature is a mathematical scheme that verifies two key characteristics of a digital message: authenticity (the message was sent by a specific user) and integrity (the message has not been altered during transmission). In Bitcoin, digital signatures are used to confirm the…

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Monad — How It Works

What is Monad?

Monad is a layer-one smart contract platform that employs innovative scaling approaches.

The EVM-compatible Monad protocol is designed to accelerate on-chain operations and reduce user costs. The platform ensures high transaction processing speeds (up to 10,000 TPS), one-second block intervals, and instant transaction finalization.

High performance is achieved through the unique MonadBFT consensus mechanism, and EVM compatibility allows seamless interaction for developers and users within the ecosystem. Monad combines advanced technologies such as MonadDB and deferred parallel execution. Developers can use familiar Ethereum tools to create projects, while users benefit from fast and low-cost transactions.

What…

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Changes in the Ethereum Economy After the Dencun Hard Fork

It has been almost two years since the Dencun hard fork, which marked Ethereum’s transition from the Proof-of-Work algorithm to Proof-of-Stake. Oleg Cash Coin explains how these changes have impacted the economy of the second-largest cryptocurrency by market capitalization and the role of institutional investors in this process.

On September 15, 2022, the Ethereum network activated The Merge upgrade, which allowed it to switch from the Proof-of-Work consensus mechanism to Proof-of-Stake. This radically altered the cryptocurrency’s economic model and tokenomics.

As part of a series of updates, developers optimized the issuance process of new coins and introduced a mechanism…

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Cryptocurrency Pre-Markets and Their Functioning

What are Pre-Markets?

In traditional finance, pre-markets are trading sessions held before the main market opens. In the cryptocurrency sector, these platforms allow tokens to be traded before their official release or distribution to airdrop participants’ wallets. They provide investors with the opportunity to gauge the future value of coins, enabling trading in the interval between the announcement of distribution and their official listing on an exchange.

Cryptocurrency markets operate around the clock, and pre-markets here are not limited to tokens alone. It’s also possible to trade protocol points, which may become criteria for future airdrop eligibility. Trading in…

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Cryptocurrency Market and the Survivor Bias

What is Survivor Bias?

Survivor bias is a type of cognitive distortion where conclusions are drawn based on a biased sample of data. This concept is often applied in analyzing business performance or investment activities. The essence of the phenomenon lies in the distortion of research results, considering only the information about the “survivors” while excluding the “deceased.”

For example, the success story of a single company may be interpreted as a universal scenario for achieving goals, ignoring the cases of failed projects that did not achieve results despite following the same principles as the “survivors.”

The Origin of…

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Runes in the Bitcoin Network and Differences from BRC-20

What are Runes?
The total market capitalization of these tokens has exceeded $2 billion, providing miners with multimillion-dollar revenues in addition to block rewards and fees for traditional payments.

However, shortly after their appearance, new assets faced criticism from “Bitcoin purists” like developer Luke Dashjr, who suggested “banning” BRC-20 and “inscriptions” using a “spam filter.”

In September 2023, Casey Rodarmor, the creator of Ordinals, introduced a new standard for fungible tokens called Runes. According to the developer, this format minimizes “junk” in the Bitcoin network compared to BRC-20.

“Protocols based on UTXO organically fit into the Bitcoin blockchain, minimizing…

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What are Liquid Restaking Tokens (LRT) and why do we need them?

What are Liquid Restaking Tokens?

Liquid Restaking Token (LRT) is a token designed to provide additional income by restaking coins on a Proof-of-Stake algorithm.

LRT protocols leverage the security and yield of the underlying staking asset while offering additional income opportunities through DeFi or Actively Validated Services (AVS), which include cross-chain bridges, oracles, and sidechains.

The concept of LRT applications is similar to joint PoW mining, like with Dogecoin and Litecoin, where the same equipment is used to secure two networks simultaneously.

Advantages of LRT

Launching your own validator to earn income from ETH without reducing the…

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Interoperability in Cryptocurrency

What is Interoperability?

Interoperability in blockchain systems refers to the ability of different networks to interact, exchange data, and perform transactions. This allows for the transfer of assets between various chains without intermediaries, such as centralized exchanges.

Problems of Network Fragmentation

One of the main obstacles to the mass adoption of blockchain and Web3 is network fragmentation. Users operating within a single network (e.g., Ethereum) can easily use decentralized applications (dapps) within that network, but interacting with other systems (like Polkadot, Avalanche, etc.) can be challenging. This leads to liquidity being split across networks and makes it difficult for…

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Markets in Crypto Assets (MiCA) – A Brief Introduction

What is MiCA?

Markets in Crypto Assets (MiCA) is a legislative act regulating cryptocurrencies in the European Union. It covers rules for issuers of unbacked digital assets and stablecoins, as well as for trading and custodial platforms.

The goal of MiCA is to protect investors and consumers across the 27 EU countries and to create transparency and stability in the crypto industry. The bill proposes a unified approach to regulating digital assets, simplifying interactions between companies and regulatory authorities, and reducing administrative costs.

MiCA aims to enhance the EU’s investment appeal and trust in the industry through a single…

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Restaking and Earning on It

What is Restaking?

Restaking is the ability to reuse ETH in the Ethereum mainnet or in liquid staking pools as wrapped tokens on platforms that implement the EigenLayer protocol. The received tokens can be used to verify the security of third-party networks outside the EVM.

In April 2023, Ethereum developers released the Shapella update, which included several changes to the network consensus. The most important of these was the ability to withdraw locked coins from the Beacon Chain deposit contract, which led to an influx of liquidity into the market. The updated Proof-of-Stake algorithm provided passive income similar to…

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