Brew Money Profile picture
Sep 20 β€’ 12 tweets β€’ 11 min read
The #EthereumMerge made everyone an expert on the subject of the different consensus mechanisms.πŸ‘‘

But the discussion revolves more around proof of work (#PoS) and proof of stake (#PoW).πŸš€

Shining light on others like proof of burn (#PoB) and proof of activity (#PoA):⚑
A consensus mechanism is the set of rules under which the #blockchain operates.✨

These rules dictate who gets to mine new crypto and the conditions for it.πŸ’Ž

1. Proof of activity (#PoA):πŸ’Έ

Proof of activity is the hybrid of #PoW and #PoS.πŸ’°

This consensus mechanism is used by @EspersCoin and @decredproject.

In #PoA, the first step is mining the blockchain in a traditional PoW way.πŸ‘‡
After the block is mined, the #crypto availed from the process is put up for staking, where the #PoS part begins.πŸš€

Random #validators sign the hash, and the #block is distributed among the different validators.πŸ“ˆ

However, #PoA isn't safe from criticism.πŸ‘€

The biggest criticism is that the consensus mechanism takes too much #energy and favours validators who have staked more.⚑
2. Then, there is proof of burn (#PoB):πŸ₯‡

In PoB, the miners burn their #tokens away to earn mine new #blocks.

The burnt tokens are sent on their one-way journey to an 'eater address' that makes them inaccessible.πŸ’Έ

The #PoB consensus mechanism incentivizes holders to earn long-term profits by suffering minor losses in the short term.πŸ‘‘

@CounterpartyXCP and @factom use the proof of burn consensus mechanism for their blockchains.✨
Buring #coins under PoB also keeps inflation in check by burning existing #crypto.πŸ’Ž

#PoB doesn't exist without its own share of problems.

The major criticism of PoB is that it involves wasting #resources due to unnecessary complexity.πŸ’°

3. Proof of Capacity (#PoC):πŸ…

PoC allows the average user to 'mine' on the #blockchain without extensive #mining hardware.πŸ’ͺ

In PoC, miners generate a list of all the possible hashes in a process called 'plotting'.
After the plotting is finished, the #blocks are generated based on the amount of space/capacity you have in your device.πŸ‘

The more space your #computer has, the more hash solutions you can generate.✨

And more hashes mean better chances to win the #crypto block!πŸš€
Earn up to 10% APY on Blue-Chip DeFi Protocols.

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More from @brew_defi

Sep 20
The @wintermute_t #DeFi algorithmic market maker was hacked for a whopping $160 million!πŸ‘€

The CEO of #Wintermute has come forward with a statement confirming the attack.⚠

There is a silver lining in the whole situation, however...πŸ‘‡
The #DeFi portion of the @wintermute_t platform was the one under the attack.πŸ’Έ

The #CeFi and #OTC platforms remain safe✨

@EvgenyGaevoy, the CEO of #Wintermute has also reassured lenders and investors that it is very much solvent despite the attacks.πŸ‘‘

This attack is one of the largest attacks on #crypto institutions this year in terms of value lost.πŸ’°

The silver lining:πŸ’Ž

At least the platform still has more than $320 million as #equity, thus securing the solvency and any #liquidity problems.⚑

Read 5 tweets
Sep 19
The relationship between the #EthereumMerge and #DeFi is a fascinating case study for a changing economic ecosystem.πŸ’Ž

And @variantfund's Twitter Space dove deep into how the #merge affects #DeFi.✨

Here is the summarized version:πŸ‘‡
The space was conducted by @variantfund and @eulerfinance.⚑

@spencernoon, @gham1lt0n and @Derekmw23 represented Variant.πŸ’°

@MacroMate8, or Seraphim, the head of risk at Euler, was the Euler side's representative.πŸ‘‘

@variantfund @eulerfinance @spencernoon @gham1lt0n @Derekmw23 @MacroMate8 @MacroMate8 first laid out what the long-term focus of @eulerfinance would be.πŸ‘€

Euler will focus more on #Oracle technology to improve smart contracts.πŸ’Ž

This is why the #Euler team has added @chainlink support to the ecosystem.🀝

Read 13 tweets
Sep 19
Investing in #crypto can be a bit tricky with all the different factors that govern a coin.πŸ‘€

It's not only the price of a #coin that makes it a good #investment. There are other factors as well.πŸ’°

Read along to find out what to look for when buying crypto:πŸ‘‡

1. Circulating supply:πŸ’Ž

Circulating supply is the amount of #crypto that is already on the #blockchain.πŸ‘

The higher the circulating supply, the better.✨

Suppose a #cryptocurrency has only 50% of its total supply out.⚑

By the time the rest is mined, there will be a 2x inflation in the project's #ecosystem.πŸ‘‘

The lower the circulating/total supply ratio, the more #inflation there would be.πŸ“‰
Read 11 tweets
Sep 19
The #Solana ecosystem is diving into the world of #DeFi with all the new developments.πŸš€

@solana and @cosmos are working on a layer 2 solution that will improve Solana's scalability.✨

The L2 solution, @Nitro_Labs, will also provide a framework for creating modular Solana Virtual Machines (#SVM) on any L1 blockchain.πŸ’Ž

#Nitro will also act as the gateway between $SOL and $ATOM ecosystems.⚑

Deploying #dApps on the #Solana ecosystem will become easier after the development of the solution.πŸ’Έ

More dApps = more #DeFi = more crypto adoption!


Read 4 tweets
Aug 25
#DeFi is a constantly moving space.βœ¨πŸ’Έ

And so, it's important to be on top of all things at all times.πŸ‘‘

Here are 10 #tools you NEED for bettering your DeFi journey:πŸ§΅πŸ‘‡
1. @DefiLlama: #DeFiLlama maintains all the #TVL data on #DeFi protocols.πŸ’ΈπŸ’Ž

DeFiLlama is a comprehensive tool where you can look at all the data on a #protocol and its #growth.πŸš€βœ¨

2. @etherscan: Etherscan is a simple tool with lots of utilities.πŸ“ˆπŸ’°

#Etherscan is a tool that shows all the #transactions in the Ethereum ecosystemπŸ’²

Why @ethereum, though? Well, tons of protocols like @Uniswap are made on #Ethereum.πŸ’Ž

Knowing #ETH helps know #DeFi better.πŸ‘‘
Read 12 tweets

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