**Crypto wallets are the first and necessary key to step through the door into the world of blockchain and cryptocurrencies. Therefore, choosing a safe and convenient wallet, and practicing strict security rules are very important.**

3S Wallet is a great multi-chain crypto wallet product for both longtime users and newcomers to the crypto market. 3S Wallet provides multi-chain crypto asset management with a high level of security; however, users will still need to proactively implement basic measures and principles to protect their digital assets on the Internet. In this article, 3S Wallet team will share some wallet security tips for crypto users.

# Don't put all your eggs in one basket
Risks in the crypto market are unpredictable. So one piece of advice most people give to newcomers is "don't put all your eggs in one basket". Because no technology is perfect and no person is ever completely vigilant. Therefore, expect the worst case, and dividing assets into small pieces to manage will help reduce the risk of losing everything.

# Save the seed phrases in a safe place
Seed phrases will provide access to your wallet, so always write down your seed phrases and keep them in a safe place. Be especially careful not to save the seed phrases of important wallets online, for example in the cloud or on social media in any way, because this will make you an easy target for hackers. You can write it down on paper, or save a file in your computer, thumb drive, etc.

# Anti-phishing - always double check
Phishing is a very common form of fraud, and nearly all cases are caused by user error, so no platform can accept responsibility and compensate for damage.

Therefore, users should always carefully check the correct website before accessing and connecting the wallet. If you accidentally connect your wallet to a fake website, revoke access to your wallet on that website immediately.

# No wallet login on shared device
An obvious thing, but many people still neglect, is not to log in the wallet on other people's devices or shared devices, this will allow others to access and use your wallet.

# Don't use public wifi
A lot of hacks are done through wifi connections, so limit your usage of public wifi to protect your assets.

# Set up and save your wallet password properly
Many people choose to save passwords by texting themselves or saving them on a cloud hard drive. In fact, hacking facebook is much easier than hacking crypto wallets. So, get in the habit of using password management softwares like Lastpass, to be able to manage multiple accounts at the same time without having to use a single password or save it online.

**Those are the wallet security experiences that 3S Wallet team wants to share with users. Although the market is always full of unpredictable risks, with the above security measures, investors can greatly reduce the risk of unnecessary loss when participating in the market.**

Choosing a safe and convenient wallet, and practicing strict security rules are very important in the world of blockchain and cryptocurrencies.

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SECURITY TIPS FOR CRYPTOCURRENCY WALLETS

**The plunge of Bitcoin has not only caused retail investors to suffer severe losses, but also even forced the largest “whales” in the market to take various specific actions to limit the risks to their investment.**

# El Salvador’s great challenge

El Salvador made history on September 7th by becoming the first country to adopt Bitcoin as a currency. However, a number of world organizations strongly opposed this move, including the International Monetary Fund (IMF), the World Bank (WB) and the Bank of England.

Despite all these criticisms, President Nayib Bukele remains firmly in favor of Bitcoin. Since September 2021, Mr. Nayib Bukele has been public on his personal page about the Salvadoran government's buying and selling of BTC. As of now, the Salvadoran government is holding 2,381 Bitcoins. However, with the market downturn, El Salvador is losing about 52 million USD, equivalent to a decrease of 47.58% and the country claims to have not sold any BTC yet.

The somewhat reckless "bet" from El Salvador has contributed to the country's bond prices also falling into a serious crisis. Unexpectedly, one of the largest US banks, Morgan Stanley, has expressed a willingness to buy El Salvador bonds despite being among the worst performing bonds this year.

![El Salvador.png](https://cdn.bho.network/cms/El_Salvador_8ab153ef93.png)

The reason given by the bank was that El Salvador's bonds were over-sanctioned. Morgan Stanley warns that there is a chance the country will default on its debt in early 2023, but also said that tightening global liquidity could make this impossible. So El Salvador can still meet its obligations for another year without missing its bond payments.

# Tesla sold 75% of its own Bitcoin
In its quarterly financial report on July 21, Tesla confirmed that it had sold 75% of its investment in Bitcoin, worth $936 million. As a result, the company's BTC assets at the end of June 2022 were only $218 million, down sharply from $1.26 billion previously.

Tesla's Q2 2022 revenue also fell from 9.7%, down to $16.9 billion from the first quarter, while profit was $4.2 billion, down 22.5% from the first three months of the year. Tesla CEO Elon Musk stated that Tesla's decision to sell Bitcoin was aimed at increasing cash reserves because the COVID situation in China is having a strong impact on the company's operations.

However, the richest billionaire in the world confirmed that Tesla is ready to buy back Bitcoin in the future; he even shared that Tesla's action of selling BTC should not be seen as their final stance on the world's biggest cryptocurrency. In addition, Tesla CFO Zach Kirkhorn revealed that with the remaining Bitcoins Tesla is holding, about 10,800 BTC, the company is losing up to $ 106 million.

Interestingly, Elon Musk said Tesla has yet to sell Dogecoin (DOGE). After temporarily suspending accepting Bitcoin payments due to concerns about environmental pollution, Tesla and Elon Musk have turned to support Dogecoin, when they accept payments by this coin for some of the company's products, and intend to expand the payment method to both SpaceX and Starlink.

# More than 1 billion USD of MicroStrategy "vanished"
As of July 24, the whale considered to be the world's largest Bitcoin holder, MicroStrategy, is holding up to 129,218 BTC, when they start to accumulate from 2020, with an average purchase price of 30,700 USD. With the Bitcoin price hovering around $22,000 at the time of this article, MicroStrategy has lost over $1 billion, which equates to a 27% drop from its initial investment due to the continuous issuance of debt bonds to raise capital. instead of using the company's money directly.

However, MicroStrategy CEO Michael Saylor is confident that Bitcoin's short-term downturn is not a big deal for the company. He even asserted that MicroStrategy would not sell Bitcoin despite the risk of liquidating a BTC mortgage.

![MicroStrategy.png](https://cdn.bho.network/cms/Micro_Strategy_cb03b408d2.png)

“Once MicroStrategy adopted a long-term Bitcoin investment strategy, the company predicted future volatility and balance sheet structure to be able to continue to hold Bitcoin during the most difficult times,” the CEO of MicroStrategy reassured the community on Twitter.

According to Michael Saylor, Bitcoin would have to drop 95%, below $3,600, in order for Microstrategy to run out of Bitcoin to repay a loan to Silvergate, the banking institution that works with its subsidiary MacroStrategy, which gave the company a a loan of $205 million in March 2022 to continue to buy another $190 million in Bitcoin.

# Miners continuously “dump” BTC

In a bull market, Bitcoin miners tend to hold most of the Bitcoin produced. However, when the dark times came for Bitcoin, which broke the $20,000 mark for the first time in 18 months, many miners were forced to abandon the long-term accumulation strategy by selling to balance the costs of doing business.



However, for a better overview of the transition in the transaction status of miners during the past two quarters, please refer to the article below:

- [Panicked Miners Sell Bitcoin - Will the Market still be in Danger?](https://bho.network/panicked-miners-sell-bitcoin-will-the-market-still-be-in-danger)

According to a report from blockchain analytics firm Arcane Research, in the first four months of 2022, mining companies sold off 30% of their Bitcoin production. The sharp drop in mining profits forced these companies to increase their selling rates to more than 100% in May, when Bitcoin mining revenue recorded its worst decline in 2022.

![Miners dumping.png](https://cdn.bho.network/cms/Miners_dumping_fe0cf1a6eb.png)

On the other hand, based on CoinMetrics data, miners are consistently considered to be one of the largest “whales” in the industry, holding around 800,000 Bitcoin, of which mining companies own around 46,000 BTC. Therefore, assuming they are forced to liquidate a significant portion of their Bitcoin holdings if the market outlook continues to turn negative, this could contribute to an even lower Bitcoin price in the future.

# Conclusion
With this analysis, BHO Network team hopes to help investors better understand the current situation, as well as the reactions of today's popular Bitcoin "whales", so that they can make the right investment decisions in the near future.


The plunge of Bitcoin has not only caused retail investors to suffer severe losses, but also even forced the largest “whales” in the market to take actions to limit the risks to their investment.

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Even “Whales” are now Shaken by Bitcoin’s Steep Fall

What is Dapp? Let's learn about the knowledge and potential of decentralized applications here with BHO Network.

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What is Dapp? Everything there to know about Dapp

***What is DAO**? This is a project to help members easily access, verify and participate in the organization's decisions. So what is so unique about this platform that can develop and expand on so many Metaverses? Today, let's learn more about DAO with BHO Network.*

## 1. What is a DAO?

*DAO* stands for Decentralized Autonomous Organization, a completely decentralized autonomous organization. Unlike traditional organizations such as Facebook and Google, through the application of code-coded rules, DAO can operate independently without human intervention.

Moreover, DAO Governance Model On to groups applying On-chain voting and proposal mechanism on many other Defi platforms. 

However, they all have a common feature: members of the DAO can easily access and verify the organisations' proposals and actions and participate in the DAO's governance decisions.

![dao-la-gi7.png](https://cdn.bho.network/cms/dao_la_gi7_3b0fa24a76.png)

*DAO is a completely decentralized autonomous organization that can operate independently*

## 2. Background of DAO

DAO currently tends to develop Blockchain technology with a Decentralized character. However, the project is receiving more and more attention, which is mainly caused by factors such as:

**The growing weight of decentralization**
- Traditional financial institutions and governments in countries with many measures to control users. The big guys in many fields have too much power and abuse their power. This is the agent that urges users to go beyond their limitations and take back their rights.

**Attract more and more value**
- From the DeFi platform to NFT and other fields such as music, and entertainment, .. cryptocurrency is attracts a large amount of value with rapid growth. To be able to access this piece of cake more easily, creating a DAO with the participation of many parties will help to complement each other from the capital, experience to relationships and many other factors. 
- For example, Ventures DAOs such as The LAO, MetaCartel DAO, and Yield Guild Game, ... when members gather together to create funds to invest in cryptocurrency projects.

![dao-la-gi12.jpg](https://cdn.bho.network/cms/dao_la_gi12_e6d96b1765.jpg)

*DAO is currently developing with Blockchain platform with Dencentralized*

## 3. What makes DAO different?

DAOs differed from other traditional organizations by the following outstanding advantages:
- Instead of being dominated by a particular group, DAOs used a set of rules written in code and implemented by computer networks that run shared software.
- To be able to become a member of the DAO, people join the DAO by purchasing cryptocurrency. Then, the Hold usually gives the user the right to vote on proposals and updates. Of course, that will be proportional to the amount of the Holder.

For example, BitShares is the first successful example of a DAO. It is a virtual e-commerce platform that links customers with sellers without the presence of a central authority. At the time, Bitshares was a fully decentralized autonomous company (DAC), a term coined by Founder Dan Larimer.

In particular, the DAO created on the Ethereum Blockchain platform called The DAO has caused fierce controversy due to hackers finding vulnerabilities.

![what-is-dao-1.png](https://cdn.bho.network/cms/what_is_dao_1_5dc7027d37.png)


*DAO helps participating users regain rights that have not been touched for a long time*

## 4. How DAO works

Initially, Bitcoin is considered the DAO's first fully functional-programmed and automatic operation, thanks to the distributed consensus protocol. Since then, the use of smart contracts enabled on the Ethereum platform has brought the DAO closer to the public and shaped its current appearance.

To function to the fullest extent, the DAO needs a set of rules to operate. Those rules were encoded in the form of smart contracts, essentially a computer program that existed automatically on the Internet. At the same time, DAO also needs people to perform tasks that the project cannot do on its own.

![dao-la-gi1.png](https://cdn.bho.network/cms/dao_la_gi1_f3d788be7b.png)

*To be fully functional, the DAO needs a set of cryptographic rules in the form of smart contracts*

Once the rules are established, DAO enters the funding phase. This is an essential part for two reasons. First, a DAO must have an internal asset class, tokens that can be used by the organization or used to reward certain activities. 

Second, through investing in DAO, users gain voting rights and then the ability to influence how the project is run.

Once the funding period ends and the DAO is deployed, it becomes fully automated and completely independent of the creators. DAO is open source, which means anyone can view the Code. Furthermore, every financial rule and transaction is recorded on the Blockchain platform. This makes the DAO completely transparent, unambiguous, and immutable.

![dao-la-gi6.jpg](https://cdn.bho.network/cms/dao_la_gi6_df08fd0e49.jpg)

*DAO works similar to a venture capital fund and has no management structure*

The DAO platform is up and running, and all decisions regarding where and how to spend it will be made through reaching consensus. Everyone who has purchased shares in the DAO can make suggestions regarding the project's future. To prevent the network from being spammed by the proposal, a deposit may be required to make it happen.

In essence, the DAO allows any user to exchange money with anyone worldwide. This can be done through investment, charity donation, borrowing, and capital raising,... all without intermediaries. 

However, there is a huge potential problem in the voting system that even when a security hole is discovered in the original Code, it cannot be fixed. While voting is taking place, Hackers can exploit a bug in that Code.

## 5. Some types of DAO

Here, BHO Network will introduce to you *the popular types of DAO* that are Token-based DAO and Share-based DAO

### 5.1 Token-based DAO

The name Token-based has also been mentioned. enough to prove that Token plays a core role in this type of activity. Specifically, for Blockchains similar to Bitcoin or Ethereum, ... Miners must perform network security and will receive Tokens as rewards. 

Meanwhile, in protocols like Uniswap, Marker DAO, and SushiSwap, ... Token holders will have the right to vote for any changes or decisions in the protocol. To date, Token-based DAO is the most popular type in the crypto industry.

![dao-la-gi13.jpg](https://cdn.bho.network/cms/dao_la_gi13_4603c54eb0.jpg)

*Token DAO plays an important role for the operation of DAO*

### 5.2 Share-based DAO

Share-based DAO can be understood as an organization working towards some common purpose. Here, participants will use their shares to participate in voting. Share-based DAO is different from Token-based DAO in that not everyone can Token. 

Instead, this type will only require users to participate in meeting the conditions that have been set. In Share-based DAO, participants can participate in voting directly through sharing, and can also leave with a proportionate share of the fund.

![dao-la-gi11.jpg](https://cdn.bho.network/cms/dao_la_gi11_3cb954fd7b.jpg)

*Share-based DAO represents a specific organization or group that has a common goal in a particular field*

An example of a typical name for a Share-based DAO is MolochDAO. This is a protocol that provides capital for projects on the Ethereum platform. With MolochDAO, participants will have to complete a proposal from the protocol side to assess whether these members have enough expertise and funding.
 
This helps MolochDAO to see if participants are eligible to be able to fund potential projects.

## 6. Advantages and limitations of the DAO

So what are the advantages and limitations of the DAO project? Let's find out together now.

**Advantages**
- Thanks to the application of Blockchain, organizations can create a peer-to-peer collaboration environment among members without an intermediary.
- The only model DAO that can create that trust is the Code because the Code is public and transparent. Every member can check and authenticate.
- Its non-hierarchy also characterizes model DAO. Every member involved in the project has equal access to the organization's resources and voting processes. Rules and contracts are also executed automatically.

![what-is-dao.png](https://cdn.bho.network/cms/what_is_dao_d5091d5631.png)

*DAO is an open, transparent project and can be checked by all members*

**Restrictions**

Currently, DAO still has the following limitations:
- **Confidentiality:** Smart contract issues, once DAOs Once implemented, it is very difficult to change. The activities must take place by what is specified in the Smart Contract. In addition, the security of Smart Contract is also one of the crucial issues, typically The DAO Hack.
- **Legality:** project DAO is still unclear. If DAO is not legally convincing, it will create a big barrier to DAO because the participants will have to bear legal responsibilities.
- **Wrong decision:** DAO allows members to vote democratically. Many choices are complex and academic, yet many voters may not understand what they are voting on. This leads to bad choices because most people do not know the decision involved. 
- **Often delayed:** emergencies, waiting for a vote to pass can have adverse consequences for the DAO. For example, in the case of Maker, the market crashed in March 2020. Property loss would be huge if it were still waiting for the voting to be completed before implementing measures.
- **Privacy:** Everything must be transparent on-chain is not entirely suitable. Proposals must be put on a chain for voting and then implemented means that the development plan will be fully public and the Competitors may know the project's future roadmap.
- **Centralized Entity:** An organization with a higher Voting power than other members will create a Centralized feeling right in the Voting of the Protocol.

![dao-la-gi8.jpg](https://cdn.bho.network/cms/dao_la_gi8_6f0413708f.jpg)

*DAO still has limitations in terms of security, legitimacy, bad decisions, and often delays*

## 7. Some DAO applications in practice

*Model DAO* is increasingly widely applied in almost all fields. Present-day society. Some DAO applications typical.

**In Metaverse**

Some applications are represented in Metaverse, such as:
- **Bitshares:** Bitshares offers good self-management for an advanced voting system. The processing time is only 3 seconds and the Defi platform is built-in.
- **Bitcoin:** This is DAO by the way Bitcoin works is based on majority consensus.
- **Dash:** Dash works on the monetary incentive of the stakeholders that are Masternodes. Members will also have the right to vote when purchasing Dash and participate in decision-making according to established rules.
- **Marker DAO:** This is a small part of the extensive Marker Protocol system. This operating system is based on combining two crypto assets, Dai and MKR. Dai holds the mission of allowing transactions to be carried out without needing a third party such as banks or governments, providing participants with voting rights.
- **Bit DAO:** BIT is a Governance Token with the right to propose and vote. BitDAO has the goal of building a decentralized crypto economy for everyone. This is a protocol managed through the BIT Holder.

![dao-la-gi10.jpg](https://cdn.bho.network/cms/dao_la_gi10_1179421018.jpg)

*Some popular applications in Metaverse such as Bitshares, Bitcoin, Dash and others fields*

In DAO is also applied in a number of other areas such as:
- **Non-profit organizations:** Individuals can receive anonymous donations on the size of members anywhere in the world. Voting members will use this donation.
- **Audit Firm:** Enables better automated, innovative and secure project management to help improve audit practices.
- **Government:** model DAO will help strengthen supervision, audit and voting on the implementation of contracts, processes, tenders, etc.

![dao-la-gi5.jpg](https://cdn.bho.network/cms/dao_la_gi5_b0de490b7f.jpg)

*DAO is also famous in other fields such as non-profit organizations, public Audit companies and government*

## 8. Current Featured Projects

Below are the DAO so that users can better understand how the DAO platform actually works.

### 8.1 Token-based DAO

Typical DAOs include Ethereum and Compound.

**Ethereum**
- Ethereum is a DAO that works with the Proof of Work mechanism. Incentives enjoy Fees and Block Rewards for miners (also known as Miners). In return, Miners need to perform operational activities such as mining new blocks, confirming transactions, and securing them to ensure network security. 
- Even when upgrading to the Ethereum 2.0 platform with Model Proof of Stake, this principle remains unchanged as Stakers will be the party confirming the transaction and guaranteeing to ensure network security in return for Incentive. 
- Besides, Miner will also have the right to Vote on Ethereum's development proposals. It can be said that the future development of Ethereum will depend on the decisions of the components in the DAO.

![dao-la-gi18.jpg](https://cdn.bho.network/cms/dao_la_gi18_d82790037f.jpg)

*There are thousands of EIPs proposed to develop the Ethereum*

**Compound**
- Compound platform which is a very successful Protocol for On-chain governance. By allowing Token Holders to participate in the voting process of proposals in the Protocol. Together with the launch of COMP Token on June 15, 2020, Compound has a clear growth plan that can continue to maintain its position as the leading Lending Platforms.

![dao-la-gi14.jpg](https://cdn.bho.network/cms/dao_la_gi14_eb2cd10991.jpg)

*Compound is a pretty successful Protocol for On-chain governance*

### 8.2 Shared-based DAO

The LAO is a Shared-based DAO outstandingThis is the most active project among decentralized investment funds, established in April 2020. Currently, The LAO has completed 35 investments, most of which are projects on Ethereum such as Gitcoin, Lido Finance, and Zapper,... 

![dao-la-gi16.jpg](https://cdn.bho.network/cms/dao_la_gi16_6e319194d0.jpg)

*Currently, The LAO is a very active investment fund in decentralized funds*

## 9. Potential of DAO

Ecosystem DAO has witnessed tremendous growth in recent years due to the appearance of hundreds of new projects. Projects focusing on diverse fields have shown the vast development potential of the application of the DAO.

Regarding the DeFi platform alone, Governance is a standard Use Case for the project's Tokens. The bigger the project, the more valuable this use case is. Among the Top projects with the TVL, almost all of them are managed by the community.

In particular, the project's Token holders propose and vote on the decisions. Model DAO has become a must-have for evolving DeFi Protocols. 

![dao-la-gi3.jpg](https://cdn.bho.network/cms/dao_la_gi3_6780443938.jpg)

*The DAO ecosystem has grown tremendously in recent times*

DAOs hold more significant values, only in terms of the Ventures DAO, the number of assets in the Treasury has surpassed the billion-dollar mark. Along with that, the fact that DAO is applied in many other fields such as Social, Service, ... The amount of value that DAO holds has excellent potential for growth in the future.

## 10. Potential investment opportunities of DAO

DAO is still in the finishing stage, entirely new but has a breakneck development speed. As an investor, this period is an excellent opportunity to find potential investment branches and open up a position for yourself. Some typical possible investment branches.

### 10.1 Projects developed by DAO

This is the most direct investment method. To be able to evaluate a DAO can be based on several criteria such as:

**Do the leaders of the DAO have a good project development orientation?** 
- While DAO is for everyone, that doesn't mean there aren't influential characters in DAO. Proposals have a significant impact and, at the same time, directly influence the development of the DAO.
- For example, in Compound, the figures influencing the decision of the DAO are all VCs, famous people in the cryptocurrency world. The vision and knowledge of these people have helped Compound to have development plans in the past time.

**Is the DAO community strong or not?**
- Network Effect plays a significant role in the development of any project. It is no coincidence that $DOGE sits on the Top of the highest capitalization projects in the market. When communities thrive and support each other, projects can go a long way. 

![dao-la-gi2.jpg](https://cdn.bho.network/cms/dao_la_gi2_3153890e8f.jpg)

*DAO is currently in the early stages of rapid development*

Some examples of projects with a DAO so far include Olympus DAO (OHM), SushiSwap (SUSHI), Gitcoin (GTC),... Just by surfing the Discord group, the project Telegram, it can be seen that the community is powerful and most people are actively involved in the project's proposals.

### 10.2 Earn money through DAO
 
Like other projects like Yield Guild Game, Ancient8, etc., participants can plough the Game or rent out NFTs and accounts to earn profits. DAO is now opening real job opportunities for its users.

Or it can be said that playing Axie Infinity has become a side job for many Filipinos. Here you can arrange your time to look for profitable and money-making opportunities to help create additional sources of income.

![dao-la-gi9.jpg](https://cdn.bho.network/cms/dao_la_gi9_34a80bead3.jpg)

*DAO has opened up countless job opportunities for those involved in the project*

Participating in DAOs will also help you gain more experience, resources and support from the community, thereby helping to accelerate a more profitable rate.

**Find a service provider**

This is probably the part users need most when looking for investment opportunities. Instead of filtering projects about Trend, you can find people who provide the necessary services for that Trend project. Thus, reducing the search scope and having a high Upside is possible.

Services required for DAO include:
- **Infrastructure:** Snaoshot, Aragon, Gnosis Safe,.
- **Frontend & Analytics:** Tally, DAOHAUS Boardroom.
- **Payment:** Superfluid, Sablier.
- **Discussion:** Telegram, Discord.
- **Identity:** ENS, IDX.

![dao-la-gi17.jpg](https://cdn.bho.network/cms/dao_la_gi17_cbf2472d87.jpg)

*Essential tools to find Trend service providers*

There are many other services available.

*The above article [BHO Network](https://bho.network/) has provided you with all the information about “**what is DAO**?” as well as the salient features of the project. Hope the above sharing will help you find the opportunity for yourself to invest in DAO or not. If you still have questions about the project, please follow the next articles at website to update the latest information.* 



What is DAO? Join BHO Network to learn the necessary knowledge and application of DAO in practice. Click to see now.

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What is DAO? How does DAO work?

What is Low Cap Coin? Let's find out information and effective ways to invest Low Cap Coin with BHO Network right here.

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What is Low Cap Coin? 5 steps to investing Low Cap Coin

***What is NFT Marketplace**? Why is it currently fascinating to many celebrities? So what does this trading platform have that makes the community so attractive? In today's article, BHO Network will introduce you to the newly launched exchange and show you how to make the most of the features of the NFT Marketplace platform. Check it out now!* 

## 1. What is NFT Marketplace?

*NFT marketplace* is a platform used to trade NFTs. Every asset class needs a market to change, and so does the NFT. 

Similar to evaluating the DeFi of an ecosystem through the ways of looking at the parameters of the DEX (TVL, Volume,...), looking at the basic parameters of NFT Marketplaces helps users evaluate the overview of the market.'s situation NFT on an ecosystem:
- Will the platform attract cash flow?
- Which NFT Tokens are preferred?
- Which branch of the NFT platform is most focused on in the ecosystem?

![nft-marketplace-la-gi10.png](https://cdn.bho.network/cms/nft_marketplace_la_gi10_4d1f16b2a9.png)

*NFT marketplace is a platform for NFT trading*

## 2. How NFT Marketplace works

According to the rules, each NFT trading market will include the following activities: Register, buy NFT, sell NFT, mint NFT.

**Registration**
- Depending on the different NFT trading markets, the registration and account verification steps are also other. However, in general, there is still one main common point that investors need to fully declare information, including full name, email, and phone number.
- At the same time, after creating an account, users need to connect to supported cryptocurrency wallets to make transactions.

**Buying NFTs**
- As a rule, NFTs will be sold directly in auctions. Additionally, with some exceptions, potential NFT Marketplace may be able to contact the owners directly to negotiate a fair price with them.

![nft-marketplace-la-gi4.png](https://cdn.bho.network/cms/nft_marketplace_la_gi4_a6a5fdbb20.png)

*Each NFT trading market will include the following activities: Register, buy NFT, sell NFT, mint NFT*

**Selling NFT**
- The selling process will be much more complicated than the NFT buying process, especially for the project creators. First, you must upload your NFT collection to the NFT Marketplace, enter a flat price for the project, or choose to sell it through an auction. 
- Next, the platform will continue verifying the content, and the NFT will be listed for sale when accepted. Finally, when the seller agrees with the buyer's price, the platform will proceed with the transfer from the buyer to the seller.

**Mint NFT**
- Currently, the Ethereum platform is the largest network dedicated to supporting NFT creators. First, users will need to prepare an Ethereum wallet backed by ERC-721. Next, users will have to add to the ETH wallet with a value ranging from 50-100 USD as a transaction fee.

![nft-marketplace-la-gi4.png](https://cdn.bho.network/cms/nft_marketplace_la_gi4_a6a5fdbb20.png)

*The Ethereum platform is the largest network dedicated to supporting NFT creators*

## 3. Types of NFT Marketplace

The following are some NFT Marketplace platforms represented through three main aspects: OpenSea, Rarible, and Binance NFT Marketplace.

### 3.1 Open Marketplace NFTs

Open trading platforms are considered to be the place where users can create, buy and collect their artworks on the platform in the most simplified way to reap huge profits.

At the same time, the NFT Marketplace will help any user to participate in the NFT market and fully have access to a variety of NFTs such as in-game items or art works such as pictures, sounds. , collectibles…

**OpenSea**
- OpenSea is the world's first NFT marketplace. At the same time, it is one of the largest NFT markets with nearly 400,000 traders per month and more than 10 billion USD in revenue from NFT, surpassing all time records. Some famous people such as Mark Cuban, and Chamath Palihapitiya,... have shared their interest in OpenSea. 
- The platform will browse the art, music,... In addition, the platform has introduced more than 700 projects, including prominent projects such as ENS, Crypto Kitties,...
- OpenSea Platform will help you sell NFT your way. To sell users' digital works on OpenSea, it is necessary to set up and connect a wallet account to the platform, create a collection, users can even add social links, descriptions, profile and banner images. 
- The user then needs to set an additional sales fee, add and upload to NFT with customization options and list to sale, fixed or discounted listings.

![nft-marketplace-la-gi2.jpg](https://cdn.bho.network/cms/nft_marketplace_la_gi2_edcbc4707d.jpg)

*Some famous people such as Mark Cuban,... have shared their interest in OpenSea*

**Real Rarible**
- Rarible is an actual NFT marketplace set up by the community. The software uses the ERC-20 RARI Token as “ownership” to enable platform users. This is why the platform has become known as an art-based NFT marketplace with a huge volume of products. 
- The platform is currently distributing 75,000 RARIs per week to reward active users. Rarible also categorizes NFTs into art, games, photography, domain memes, music, and more.
- Rarible has always allowed creators to fully "exploit" new NFTs to sell their work. Creators can reveal a preview of their creations to everyone when accessing Rarible, but only the purchaser can access the entire project. 
- The NFTs that Rarible will host are also listed and integrated on OpenSea for greater visibility. The ultimate goal of users is to develop towards a Decentralized Autonomous Organization (DAO), where all decision power will be with the users of the platform. User-generated tokens on Rarible can also be managed on OpenSea.

![nft-marketplace-la-gi8.jpg](https://cdn.bho.network/cms/nft_marketplace_la_gi8_7296d86a07.jpg)

*The software uses the ERC-20 RARI Token as “ownership” to enable platform users*

**Binance NFT Marketplace**
- Binance NFT Marketplace is an NFT trading platform that has been powered by the world's largest DeFi exchange that launched the platform in June 2021. The company has set its sights on providing the NFT market with a A number of exclusive services and partnerships, attracting a significant number of users of the exchange to its NFT platform.
- Once you have a Binance account, your account will automatically work with Binance NFT. At the same time, it is advantageous to bid on any asset that captures the user's attention. You can use ETH, BNB and BUSD, depending on what the NFT creators listed.

![nft-marketplace-la-gi1.jpg](https://cdn.bho.network/cms/nft_marketplace_la_gi1_f4a0b464e3.jpg)

*The company has aimed to provide the NFT market with a number of exclusive services and partnerships*

### 3.2 Curated Marketplaces

The trading platform is based on two main factors, Foundation and Nifty Gateway. Specifically with the following information:

**Foundation**
- Foundation is an NFT Marketplace platform dedicated to artists and collectors to trade, list for auction, offer and bid on NFT-represented digital artworks. Ethereum platform.
- Foundation currently has a total trading volume of more than 104 million USD. The Foundation has hosted viral Internet Memes such as Nyan Cat. Edward Snowden's first NFT and digital vision collection was created by producer Richard D. James, and better known as the Aphex Twin. 
- The platform has invited various famous creators, such as Nadya Tolokonnikova of Pussy Cat, Kim Laughton, etc. The creators' work will be arranged with auctions in a grid card pattern. They are trending at the top, followed by featured artists.
- To participate in the market, users need to be invited by community members. Once requested, creators need to fund their MetaMask wallet with ETH before creating an artist profile. NFT minting will include uploading PNG, JPG or video files to IPFS, a system that currently hosts decentralised P2P. 
- Then there will be an NFT valued in ETH and auctioned. The creator will receive 85% of the final sale price, then if the work is resold, a royalty of 10% will be awarded to the first wallet mint NFT.

![nft-marketplace-la-gi13.jpg](https://cdn.bho.network/cms/nft_marketplace_la_gi13_f3b4c3320f.jpg)

*Foundation currently has a total trading volume of more than 104 million USD. The Foundation hosted the Memes on the Internet*

**Nifty Gateway**
- Nifty Gateway is one of the first NFT exchanges already owned by Gemini, a prominent DeFi exchange. The platform is also a milestone for several million USD in NFT platform sales and auctions. 
- It is a USD-based centralised marketplace for trading Nifties and is known for its NFT limited editions. The platform's mission is to make “Nifites” accessible to everyone.
- The platform will partner with famous artists, brands, creators and top athletes to deliver unique pieces, such as limited editions and several high-quality Nifties collections. . 
- The product became a popular trend when selling CROSSROAD for $6.6 million. The platform also launches artworks to famous artists such as Cey Adams, Trevor Jones, Kenny Scharf, etc. on the forum.

![nft-marketplace-la-gi14.jpg](https://cdn.bho.network/cms/nft_marketplace_la_gi14_39a5562a5c.jpg)

*The platform will partner with famous artists, brands, creators and top athletes*

### 3.3 Marketplaces for Collectibles

The collectibles trading platform is based on two central systems such as CryptoPunks and NBA Top Shot, specifically with the following details:

**CryptoPunks**
- CryptoPunks is a product The wisdom of Larva Labs is now based in New York, founded by Matt Hall and John Watkinson. The project started in 2017 as an experiment in the value of NFT and art, eventually helping to convey what we now call the art of cryptography.
- Along with designing CryptoPunks, Larva Labs also created the exchange on the CryptoPunks website. This is where users are bidding, and trading CryptoPunks. Users can interact with the market by installing and connecting a MetaMask wallet.

*CryptoPunks is a brainchild of Larva Labs now based in New York*

**NBA Top Shot**
- NFT will always aim for its own uniqueness. NBA Top Shot will execute perfectly on the Flow Blockchain platform. It attracts a lot of basketball fans by selling collectibles and promotional packages. NBA Top Shot is a set of stage digital trading cards. 
- After a user purchases a pack, the clips will be stored in a secure wallet, encrypted with the user-verified Blockchain, where it can be viewed or resold on the NBA Top Shot Marketplace.
- Investors will receive a real-time source of information on certified players, updated with new moments, the most valuable lists of the whole Teams. Users can choose from different NFT levels such as Common, Fandom, etc. In addition, basketball enthusiasts can follow their favorite teams.
- The NBA Top Shot NFT Marketplace System has traded over 8.1 million crypto collectibles to 425,160 traders to date.

![nft-marketplace-la-gi11.jpg](https://cdn.bho.network/cms/nft_marketplace_la_gi11_ec42f93be3.jpg)

*NBA Top Shot is a set of digital trading cards phase*'

### 3.4 Game Item Trading Platform (Games Marketplaces)

To continue the boom of NFT Game projects. Today's new trend is the NFT Marketplace for players who can trade NFT products in the Game.
 
In addition to Game projects that allow players to collect, collect and trade on "NFT Marketplace , NFT Game projects will synthesize NFT exchanges in the ecosystem.

**Axie Infinity**
- System Axie Infinity is an NFT play-to-earn (P2E) Game built on the Ethereum Blockchain platform and inspired by the Pokemon game. Axie Infinity remains a virtual universe for adorable pets called Axies. 
- On Axies Infinity, any user can earn Tokens through skilled gameplay and ecosystem contributions. Players can store, collect, and build a land kingdom for their pets.
- Axie Infinity currently plays host to the NFT Marketplace , with a total trading volume of more than $3.1 billion according to data from Dappradar.
- trading platform Axie monsters, items Axie and land in the game can be put up for auction. Axie Infinity has established itself as an outstanding NFT game and platform with high sales and good user income.

![nft-marketplace-la-gi12.jpg](https://cdn.bho.network/cms/nft_marketplace_la_gi12_9d1ae99730.jpg)

*Axie Infinity is an NFT play-to-earn (P2E) Game built on the Ethereum Blockchain platform*

**Matrix World**
- Matrix World is now a decentralised open virtual world that allows users to interact with immersive 3D featured applications simultaneously running on different Blockchains. The world will be made up of kingdoms, issued as NFTs and permanently present on Blockchain networks such as Ethereum and Flow. 
- At Matrix World users can buy NFT plots of land and build whatever they want. At the same time, players can build a museum that stores NFT art, bring the game to the land, or even create a place to shop on it. Some users also make much money by trading digital land lots.

![nft-marketplace-la-gi6.jpg](https://cdn.bho.network/cms/nft_marketplace_la_gi6_c6393b4c2a.jpg)

*Matrix World is a decentralised open virtual world that allows users to interact with immersive 3D featured applications*

## 4. Some notes when participating in the NFT market

When choosing to participate in the NFT Marketplace, users need to pay attention to some basic factors: Currency, NFT type and gas fee.

- **Currencies:** Some NFT offer payment gateways in fiat or popular cryptocurrencies (ETH, BNB, etc.). In particular, users should note that some NFT markets only support specific crypto wallets such as MetaMask, Wallet Connect, etc.
- **NFT types:** Currently, there are many types of NFTs in different fields such as: art, music, sports, land… These forms also vary, from one to tens of thousands of NFTs.
- **Gas Fees:** Each trading platform will get different fees.

![nft-marketplace-la-gi16.jpg](https://cdn.bho.network/cms/nft_marketplace_la_gi16_4ec75156d1.jpg)

*Exchange Market NFT provides a payment gateway in fiat currency or popular crypto tokens*

## 5. Achievements NFT Marketplace has achieved

NFT will prove its appeal, this is considered a gateway to bring new users closer to cryptocurrencies.

One of the core pieces for that development, NFT marketplaces also gradually have impressive achievements such as:
- A large number of NFTs are listed on the exchange. In Open Sea, there are now more than 33 million NFTs listed on the business, a vast number.
- Indicators such as trading volume, number of NFTs sold, revenue, and users showed vital signs of increasing.

![nft-marketplace-la-gi15.png](https://cdn.bho.network/cms/nft_marketplace_la_gi15_1201762acf.png)

*NFT marketplaces also gradually have impressive achievements as a core piece for that development*

## 6. Forecast for NFT Marketplace

The NFT market is still growing, and I think for those who want to make money from cryptocurrencies, you should not just look at NFT as ordinary works anymore, but should gradually dig deeper into the puzzle pieces in this field.

Below are a few of my projections for NFT marketplaces.

### 6.1 NFT Marketplace will soon launch Token

Tokens are an integral part of cryptocurrencies and projects will all be inclined to issue Tokens, including NFT related projects. Market leading Collectibles like Bored Ape Yacht Club have already issued $APE tokens and it is highly likely that NFT Marketplaces will also launch Tokens in the future.

This is like DeFi in the development stage when the number of DEX exchanges increases and all will launch Tokens. The reason why the NFT Marketplaces have not released tokens yet, I think, is because the market leading project, OpenSea, has not yet launched the Token. 

There is already a rival project launching a Token called LooksRare. Although there have been specific achievements, LooksRare has not been able to explore the wave of NFT Marketplace Token. When the OpenSea system releases Tokens, the project will likely set the standard for other industries and other Marketplaces will start to issue Tokens.

![nft-marketplace-la-gi9.png](https://cdn.bho.network/cms/nft_marketplace_la_gi9_1200223aa1.png)

*Tokens are an integral part of cryptocurrencies and projects will all be inclined to issue Tokens*

### 6.2 NFT Marketplace will evolve to best suit the needs of users.

Each ecosystem has its technological strengths, and communities. The NFT Marketplaces will also evolve to suit the needs of their users.

“The most valuable collectibles will continue to reside on Ethereum.

NFT gaming will flourish on Solana and Binance Smart Chain.

Several NFTs related to the entertainment industry will develop on the Binance and Terra platforms.”

So, in the future Exclusive and General NFT Marketplace will develop on Ethereum system, General and Specific NFT Marketplace Solana and similar for other systems.

![nft-marketplace-la-gi17.png](https://cdn.bho.network/cms/nft_marketplace_la_gi17_05e418abb8.png)

*Each ecosystem has its own technological strengths, and communities*

### 6.3 NFT Marketplace will develop further

At DeFi, DEX will develop, then Lending and then Dervative, when the NFT market attracts more liquidity and Axie NFTs develops big enough new projects like Lending NFT and unprecedented applications will be applied to the NFT system.

The NFT Marketplace will now always play a role as a marketplace to help transfer value between projects and the ecosystem.

![nft-marketplace-la-gi7.png](https://cdn.bho.network/cms/nft_marketplace_la_gi7_d4eb78e7ce.png)

*DEX developed the Lending system then Dervative market NFT attracted liquidity and Marketplace Axie*

## 7. Investment opportunity with NFT Marketplace

From predictions, users need to prepare for this gradually forming trend including:

### 7.1 Retroactive

Currently, a large number of investments in NFT Marketplace have not been released yet. Token is also an excellent opportunity for users to participate in the product experience and receive Retroactive from the project in the future.

**Attention:** As expected, most NFTs investing in NFT Marketplace have a relatively high transaction fee. Users should choose the top projects and focus on doing those projects instead of doing multiple tasks.

![nft-marketplace-la-gi5.png](https://cdn.bho.network/cms/nft_marketplace_la_gi5_485618efb9.png)

*As expected, most NFTs investing in NFT Marketplace have a relatively high transaction fee*

### 7.2 Choosing a good project 

To choose a NFT , the steps are as follows:
- Each system will develop different types of Marketplace, and users need to determine which type they should follow. .
- Find projects that always have the best Performance. Usually, in each ecosystem, there will be a Marketplace with a significant market share. Users should look for opportunities in such projects.

![nft-marketplace-la-gi9.png](https://cdn.bho.network/cms/nft_marketplace_la_gi9_fa8333e54f.png)

*Each system will develop different types of Marketplace*

*Above is a summary of knowledge about "**What is NFT Marketplace**?", hope you have gained a new perspective on this platform. NFT Marketplace is a vast platform, in the future, this market will continue to grow strongly. If you have any questions, please contact [BHO Network](https://bho.network/) to have all your questions answered!*



What is NFT Marketplace? How does it work? What are the investment opportunities like? Let's find out with BHO Network now.

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What is NFT Marketplace? How to create NFT Marketplace

***What is Mempool**? What is the question of many investors when they are just starting to enter the Bitcoin field? The entire operation of the cryptocurrency depends on this "companion". Join BHO Network to learn about how it works and its importance to the cryptocurrency market right here!*

## 1. What is Mempool?

*The Mempool* or Memory Pool is a virtual waiting room for transactions that have not yet been included in the Block. Miner Nodes will come here to arrange pending transactions for the next Block. Each Node maintains *Mempool* and has its capacity to store unconfirmed transactions. Once the transaction has been processed, it is removed from the Mempool.

![what-is-mempool1.png](https://cdn.bho.network/cms/what_is_mempool1_f88d22c28c.png)

*Mempool is a virtual waiting room for transactions that have not yet entered Block.*

## 2. Relationship between Mempool, Full Node and Miner Node in the Bitcoin network

With every Full Node of the Bitcoin network being granted access to the *Mempool*, it is storable. All transactions as well as blocks of the Bitcoin Blockchain. Full Nodes mainly aim to validate all transactions according to the rules of the Bitcoin protocol.

All transactions will be run by Full Node with a series of checks to verify the signatures and ensure they are all valid. If the condition 'output does not exceed input' and 'unspent money is not met, the transaction will be rejected.

Immediately after the transaction has been verified as valid, it will be added to the Bitcoin Mempool. Miner Nodes will be the ones to select the unprocessed transactions in *Mempool* to arrange in the next Bitcoin Block. Miner will choose according to the criteria of transaction fees, and the party that pays the highest will be prioritised for processing.

![what-is-mempool2.png](https://cdn.bho.network/cms/what_is_mempool2_6a20e8477b.png)

*Every Full Node can access Mempool*

### 3. How Mempool Works

So *how does Mempool work*? BHO Network would like to tell you how *Mempool* works.

### 3.1 The relationship between Mempool and transaction fees

*Mempool* will sometimes be overloaded when a large number of transactions are conducted simultaneously, causing the hash rate to decrease. When Mempool becomes congested, a slowdown will occur, resulting in increased transaction fees.

Once the Pool is complete, investors can pay higher fees, pushing their transactions to the top for faster confirmations. For low-cost transactions, they will still be in the Mempool but will not be confirmed until the congestion subsides, so the costs are correspondingly low. 

Every Bitcoin transaction will stay in a Mempool until it is ready to be confirmed. Each Node will have its memory with defaults usually less than 300MB. Once added to the committed block, the transaction will be removed from the Mempool.

When supply is lower than demand, Miner Nodes will have the choice to process the transactions they want. So, transactions with high fees will usually be prioritised by miners to process first.

![what-is-mempool6.png](https://cdn.bho.network/cms/what_is_mempool6_8386c7b7ad.png)

*Mempool will be overloaded when a large number of transactions are performed.*

### 3.2 Relationship between Mempool memory and the number of transactions

*Mempool* size is in Bytes and used as a metric to estimate network congestion time in Bytes. Mempool, the more congested the network will be, resulting in longer confirmation times and higher priority.

However, if *Mempool* is decreasing in size, the Node has received a new valid block and will remove the pending transactions contained in the block from the *Mempool*.

Typically, the size of the *Mempools* can fluctuate depending on the number of transactions being performed. Since each Node also has its views on deferred transactions depending on the unconfirmed storage capacity, that is also why each *Mempool* has a different size.
 
### 3.3 How does Mempool work?

Data Sharing *Mempool* transfer transactions until reaching the entire network. When the Mempools get high transaction volume capacity, Node will prefer transactions with higher fees than the threshold. 

When all transactions and costs below the threshold are removed, new transactions are added to the pool for minimal response costs. In short, transactions with fees above the entry will be processed first and removed from the Mempools.

## 4. How do miners use Mempool?

Miners will use Mining tools capable of maintaining multiple peer-to-peer network connections. For transactions that cost more than the threshold, Miners will pick them out of the *Mempool* and add them to the Block faster.

A newly created Block will take about 10 minutes. During this time, Nodes can propagate transactions onto the network and update the Mempool before another valid transaction is added to the Block.

![what-is-mempool5.png](https://cdn.bho.network/cms/what_is_mempool5_b7737f2198.png)

*Miners will have to connect to the network and continues to have a card to use Mempool*

## 5. Importance and limitations of Mempool architecture Mempool

Mempool greatly influences human rights and plays a significant role in cryptocurrencies in general. 

### 5.1 Importance
   
*Mempool* is a critical “piece” of BIP 35 (Bitcoin improvement proposal No. 35). So external Nodes can access other *Mempool*. This feature is handy in some cases, such as:

- SPV Clients want to track transactions before they are confirmed and entered into a Block.
- Miners check profitable fees or Download the “Transaction Waiting List” to start confirming transactions.
- Miners want to learn the network remotely.

![what-is-mempool4.png](https://cdn.bho.network/cms/what_is_mempool4_8e9678e059.png)

*Mempool is an essential piece of Bitcoin*

### 5.2. Limitations

Miner Nodes do not need to process transactions according to the time the user gives an On-Chain order but can prioritise transactions that pay higher fees or orders that benefit themselves. Two common harms of MEV are: Arbitrage

- Trading bots with third parties.
- Exchange Front-Running Bot, these Bots can monitor large pending transactions on *Mempool* and use them for profit.

## 6. Status of recent Mempools

BHO Network would like to send you the *Mempool* recent

### 6.1 Frequent Empty 

The *Mempool* has been regularly empty in recent months. Compared to the relatively high April and May 2021. Mempool weight in vMB and transactions has decreased or remained unchanged since early July 2021.

![what-is-mempool3.jpg](https://cdn.bho.network/cms/what_is_mempool3_bbc928b633.jpg)

*Mempool weight decreased in 2021*

### 6.2 Why Mempools Are Always Empty 

In July 2021, *Mempool* low because of the impact of the hash rate and price drop following the mining ban coming from China. Usually, when the hash rate drops, the Mempool fills up because there are fewer miners.

But this time, the Mempool was more empty because, at the same time, the miners were forced to go offline in China, resulting in a decrease in the transaction volume on Bitcoin.

### 6.3 What if Mempool doesn't exist?

Without *Mempool*, Nodes wouldn't be able to see incoming transactions and wouldn't know how congested Blockchain networks are. Nodes will not understand or pinpoint the source of congestion, high fees, and other problems.

*Hopefully, through the article of [BHO Network](https://bho.network/), you will know “**What is a Mempool**?” The role of this platform for the cryptocurrency network. If you find the article interesting and valuable, follow us to see crypto topics on the Web!*



What is Mempool? Why is Mempool important? Let’s find out the answer in BHO Network’s article.


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What is Mempool? How does Mempool work?

***What is Proof of History**? This can be the question of many people who learn about Blockchain. This Solana's consensus algorithms are appearing densely on Metaverse-related forums. Let's join BHO Network and Learn more about this potential mechanism!*

## 1. What is Proof of History (PoH)?

Proof of History (PoH) is a new consensus method for storing, transmitting and preserving Solana's authenticated Blockchain data. This method can generate subsequent blocks without coordinating with all previous networks. Timestamps can help synchronize data in verifying transaction validity. 

![what-is-proof-of-history8.jpg](https://cdn.bho.network/cms/what_is_proof_of_history8_903fc3ac2a.jpg)

*Proof of History (PoH) is Solana's new consensus method*

## 2. What problem was Proof of History (PoH) created to help Solana solve?

First, Solana is a high-performance open source Blockchain platform. The project can create a new Block with a time of 400ms or 0.4s and works at 5,000 TPS (scalable up to 700,000 TPS). But for such a large TPS expansion, consensus on the timing and sequence of transactions is also one of Solana's major challenges. 

Especially this happens when the Nodes do not trust the Timestamp received from the Nodes in the network. Solana's Proof of History was created to solve this problem. *PoH* uses the SHA256 Hash function to make all events or transactions on Solana Hashing. 

SHA256 will take one input and generate only one output. The output of this transaction will be used by Solana as input for the next Hashing. This process will create a chain of transactions that Solana trusts. Therefore, Validator Nodes do not need to add Timestamps manually, but just need to add transactions to a Block.

![what-is-proof-of-history7.png](https://cdn.bho.network/cms/what_is_proof_of_history7_ec33102e21.png)

*Proof of History (PoH) was created to help Solana handle large amounts of data*

## 3. How Proof of History

PoH works in a tested way by creating a ledger with a clock. This test has shown that the notes in the network know the uptime even though there are no other Nodes.

*Solana's Proof of History* works on its own internal clock. Nodes verify events/transactions and elapsed time as soon as looking at the Hashing chain. 

In particular, this does not require time validation with other nodes. The proof uses a deferred VDF function that is verifiable to hash incoming transactions and also notes the transactions that occur.  

![what-is-proof-of-history3.png](https://cdn.bho.network/cms/what_is_proof_of_history3_04f28765cb.png)

*Solana's Proof of History works on its own internal clock*

## 4. Proof of History and Solana Example

If there are three transactions A, B and C. Solana execute each of these transactions in order through Proof of History. And it goes like this:

- *PoH* (A, timestamp 0) after being PoH generates the encrypted version of A on timestamp 0
- *PoH* (B, timestamp 1) after it is PoH generates the encrypted version of B on timestamp 1.
- *PoH* (C, time stamp 2) after being PoH generates an encrypted version of C on timestamp 2.

Since transactions are fixed in timestamps, this provides a client measure mandarin. Therefore if transaction B is entered in timestamp 0, the entire Blockchain chain will be affected. With this algorithm, there is no need for humans to participate in transaction verification.
 
As a result, confirmation is faster than Proof of Stake (PoS) and Proof of Work (PoW). As a result, Solana can achieve transaction speeds of up to 50,000 transactions per second (TPS), where Proof of Work achieves 5 to 7 TPS, and Ethereum achieves 30 TPS.

![what-is-proof-of-history4.png](https://cdn.bho.network/cms/what_is_proof_of_history4_af6bb003eb.png)

*Proof of History helps Solana achieve quite high transaction speed*

## 5. Compare Proof of History with Proof of Work, Proof of Stake, Delegated Proof of Stake

*Proof of History* by Solana was created with many outstanding transformations, handling large amounts of money. large transactions per second. Overall methodhas a great potential compared to its predecessors. Specifically, the difference between Proof of History and other mechanisms will be clarified below.

### 5.1 Proof of Work - Proof of Work

First, Proof of Work and Proof of History still have some similarities. For example, both rely on a definite cost of computation to generate blocks or chains of transactions.

However, PoH helps to solve the challenge of taking time off the network. This also makes Blockchain much lighter and faster than using PoW. By combining with BFT Tower, mechanisms can be better protected.
 
![what-is-proof-of-history5.png](https://cdn.bho.network/cms/what_is_proof_of_history5_3faadfd784.png)

*PoH works to make Blockchain lighter than PoW*

### 5.2 Proof of Stake - Proof of Stake

To see the difference between PoH and PoS, you must first write about PoS. Proof of Stake (PoS) is an Ethereum scaling solution. At PoS, network participants contribute Tokens for a chance to be the miner of the next block and receive associated rewards. 

However, PoS comes with a significant challenge known as “nothing at stake”. And with PoH implementation in 2020, this challenge is overcome by introducing a penalty for miners voting on invalid chains.

In contrast, PoH does not block malicious actors. As a result, Solana implements BFT Towers to assure network participants that bad actors will be penalised by having their stakes “slashed” if they see them voting against PoH.

PoS is also vulnerable to a long-range attack whereby earlier participants can hijack the chain by disputing blocks generated by later participants. The BFT Tower prevents such attacks by validating blocks that have received the votes of more than two-thirds of the network.

![what-is-proof-of-history6.png](https://cdn.bho.network/cms/what_is_proof_of_history6_90d7410557.png)

*PoH does not prevent malicious actors like PoS implemented*

### 5.3 Delegated Proof of Stake
 
Delegated Proof of Stake used by EOS and some others. These people will delegate block production to other network participants to increase throughput. These proxies are elected from token holders.

In EOS, only 21 block producers control the network, meaning the network is highly centralized. This could lead to another risk: voters joining forces with each other and manipulating block producer elections in their favor.

Contrary to the above, *Solana's Proof of History* will combine with BFT Tower to increase security over dPoS. This helps prevent bad actors by “slashing” their stake if they vote against this consensus protocol. This also be considered as the consensus protocol awaited by Blockchain. 

![what-is-proof-of-history1.png](https://cdn.bho.network/cms/what_is_proof_of_history1_522628bdec.png)

*Proof of History is somewhat superior to other predecessor methods*

## 6. Evaluation of the pros and cons of Proof of History

Since no algorithm is perfect, even though Proof of History is a superior new mechanism, the foundation will still have some outstanding advantages and disadvantages like other predecessor consensus methods.

**Advantages**

Thanks to the application of Proof of History, Solana can execute 50,000 transactions containing 250 kb per second. Based on this capacity, the data volume can exceed 40 Petabytes if calculated by one year. This will be the huge amount of data that no organisation can afford to store until now.

**Cons**

Because of such a high volume of data, the devices Solana uses must meet strict specifications. The data will be excluded from the consensus mechanism if requirements are not met. This leads to difficulty in decentralisation and consumes a lot of hardware investment costs. 

![what-is-proof-of-history2.png](https://cdn.bho.network/cms/what_is_proof_of_history2_ba134f61f4.png)

*Solana's Proof of History still has some downsides*

*The above are the knowledge that [BHO Network](https://bho.network) share about “**What is Proof of History**?” and information related to Solana's consensus algorithm. Hopefully, this information will be helpful if you are learning about Proof of History. You can update more useful articles via*.


What is Proof of History (PoH)? BHO Network will show you the necessary knowledge about Proof of History right here. Click to see more.

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What is Proof of History (PoH)? Everything about Proof of History

***What is AMM**? How does this mechanism work? These are the basic knowledge that anyone participating in DeFi needs to understand. To help you answer these questions, BHO Network will provide essential information about AMM and how it works. Follow the article below!*

## 1. What is AMM?

*AMM is an automated market maker mechanism AMM* allows the trading of digital assets through a liquidity pool. Specifically, if you put the support you want to sell into *the liquidity pool*, the buyer will swap it with the help they currently have via Smart Contract. 

![amm-la-gi.png](https://cdn.bho.network/cms/amm_la_gi_25a43ebead.png)

*AMM is an automated market maker via a liquidity pool*

*Automated Market Maker* is an essential financial tool in DeFi. Through *AMM*, users understand the main idea of ​​Blockchain, Ethereum and Cryptocurrencies. It is freedom, not controlled by any system. 

## 2. What purpose does AMM exist for?

Before *AMM*, exchanges used to use an Order Book. However, this mechanism has quite a few disadvantages, such as fuel consumption and needing a lot of time to determine the command block. That lack of flexibility can leave users at a loss. 

The Birth of *AMM* is the solution to the above problems. The algorithms of *AMM* allow the calculation of the Token price at the time of purchase. Liquidity operations are also faster and simpler. 

## 3. How AMM Works

To understand “**what is AMM**”, users need to know about *Liquidity Pool* and Liquidity Provider. Below, BHO Network will present the most important things about how this automated market maker works.

### 3.1. The concept of Liquidity Pool

Liquidity Pool, or liquidity pool, is the most critical factor for *AMM* to work. *The liquidity pool* contains many types of cryptocurrencies locked in a Smart Contract. People can contribute and exchange money here.

![amm-la-gi1.png](https://cdn.bho.network/cms/amm_la_gi1_02f6d6ffd8.png)

*A liquidity pool is a common source of funds for users to trade*

### 3.2. How AMM

Works Trading on other platforms usually goes through a process of matching buy and sell orders. In contrast, AMM values ​​Tokens immediately and adjusts accordingly. This helps transactions take place quickly, ensuring high liquidity.

The secret ingredient of *AMM* is using a mathematical formula for pricing. This formula is popularized on UniSwap: k = X x Y. Where k is the price and is a constant. X and Y are the first and second pools, respectively. 

![amm-la-gi3.png](https://cdn.bho.network/cms/amm_la_gi3_05cfbf894a.png)

*AMM uses a mathematical formula to value Tokens*

Users depositing and withdrawing any currency will change the rate in *the liquidity pool*. Thanks to that, the machine will calculate the price change without waiting for the order to be matched. 

### 3.3. The reward liquidity provider has been received

Liquidity providers will be entitled to a regulated interest rate. In addition, some DEX exchanges also give away Native Tokens to Liquidity Providers, such as Balancer's BAL. This stimulates the need to contribute, exchange money, and increase profits.

## 4. Why did AMM become so popular?

*Automated Market Maker* is loved by many because it solves a problem faced by previous exchanges: liquidity. When this barrier is removed, new decentralized exchanges can unleash their full power. 

AMM is an open protocol that does not require account creation and identity verification. To make a transaction, all you need is a wallet address. 

![amm-la-gi2.png](https://cdn.bho.network/cms/amm_la_gi2_7afa8fd664.png)

*AMM users have absolute privacy protection*
 
In addition, *AMM* also makes it easier to provide liquidity. Anyone, even those who are inexperienced in this field, can open a liquidity pool for themselves. 

## 5. Advantages and disadvantages of AMM

Those curious about AMM are undoubtedly interested in the pros and cons of this technology. Below, BHO Network will evaluate the benefits and limitations of *AMM* to help you make the best investment decision.

### 5.1. The benefits of AMM

*Automated Market Maker* has many outstanding advantages, which are preferred by users as follows: 
- **Anonymity:** *AMM* does not require users to create an account, verify their identity, or provide personal information. All information is completely hidden. You only need to own an electronic wallet to be able to connect to AMM. 
- **Automated Trading:** As mentioned above, *AMM* uses mathematical formulas to calculate prices automatically. Therefore, you do not need to wait for order execution. Users only need to select the Token they want to exchange. The transaction will be done immediately. 
- **High security:** *AMM* does not hold users' Tokens. Tokens will be transferred directly to the wallet address after making the transaction. Thanks to that, you can be completely assured not to worry about Hackers attacking assets stored on the exchange. 
- **Transparency Information:** Trading on *AMM* saved directly to the Blockchain. This information is permanent and difficult to manipulate because all changes need the consent of the entire authentication node system.

### 5.2. Limitations

Besides, this tool still has some disadvantages such as: 
- **High slippage:** *AMM* has not improved the high slippage. This happens when a person takes too much of a certain currency, causing their price to go up. 
- **Facing Impermanent Loss:** The use of proportional equations also has disadvantages. It is a situation where the value of one cryptocurrency in one liquidity pool may deviate from the value of the same coin in another. You can lose money if you trade tokens out of the pool. 
- **High transaction fees:** Fees on *AMM* can be up to tens of USD per transaction. Because of this, *AMM* operates on Ethereum, but Gas fees on this platform are increasing day by day. 

![amm-la-gi3.png](https://cdn.bho.network/cms/amm_la_gi3_4696d2f6b3.png)

*AMM can expose users to impermanent losses*

## 6. AMM's evolution

The first decentralized exchanges (DEXs) to adopt *AMM* were Kyber Network and Bancor. However, Kyber Network uses the *AMM* concentrate. Only a specific group of liquidity providers can contribute to the pool. 

This automated market maker became popular through UniSwap. In November 2019, UniSwap announced the implementation of *AMM*, allowing anyone to contribute to the Liquidity Pool. At the same time, this decentralized exchange (DEX) also allows liquidity providers to enjoy a portion of trading fees. 

The balancer has an improvement over UniSwap. At UniSwap, users can only add two coins to a pool: ETH and another Token. Meanwhile, the Balancer allows members to add eight different types of tokens and can adjust the inclusion rate. 

## 7. Types of Liquidity Pools in AMM

You will often encounter three types of Liquidity Pools in AMM:
- **Fed Price Reserves:** When Tokens in the pool are not referenced to an external price or an imbalance occurs, the transactions will be automatic.
- **Automated Price Reservers:** This tank uses mathematical formulas to set prices without external reference.
- **Bridge Reserves:** The liquidity of other On-chain sources will be pooled. Transactions coming from these sources are usually free of charge. 

![amm-la-gi4.png](https://cdn.bho.network/cms/amm_la_gi4_fa7986d92b.png)

*Types of Automated Price Reserves used by UniSwap*

## 8. Some notes for Liquidity Providers when joining AMM

Liquidity Providers need to care about profits and Impermanent Loss. Impermanent Loss is the profit difference between just holding Tokens and exchanging to collect other types of Tokens. You should choose pairs of assets with high stability to limit impermanent losses. However, low risk comes with low returns. 

You can use profit calculation tools to make the most optimal decision. One of them is Impermanent Lost Calculator, Upoint.info, DecentYields. 

## 9. Current status of AMM

*AMM* is receiving much attention because it is considered the DeFi ecosystem's transaction centre. For example, when AVAX got noticed, the price of PNG ( Pagolin) and JOE (Joe Trader's Token )also increased. 

Another trend going on in the AMM is the integration of many functions. Previously, SushiSwap only allowed Swap Token users. This platform has integrated many other products such as Lending, IDO Platform,...

![amm-la-gi5.png](https://cdn.bho.network/cms/amm_la_gi5_67843264e1.png)

*SushiSwap swap*

## 10. Should I invest in AMM?

To choose to invest in an *AMM* you need to pay attention to the progress and potential of the project. For these reasons, *Tokens of AMM* have not been through many transactions but continuously being put on the market can cause high inflation. If you invest in these AMMs , the risk is straightforward. 

*[BHO Network](http://bho.network/) explained to you “**what is AMM**”. This technology has a lot of potential for development. However, users also need to learn carefully before making investment decisions. For more in-depth knowledge about DeFi, follow the articles on the Website.*


What is AMM? How does Automated Market Maker work? Let's find out with BHO Network right now!

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What is AMM? Things you must about Automated Market Maker

BHO Pad is a platform to support blockchain projects in building their own community, thereby helping them to raise capital. BHO Pad is a comprehensive solution for blockchain projects in raising capital, providing high-tech human resources, and consulting on marketing strategies.\n
BHO Pad was developed based on BHO Network's own successful fundraising experience, with 03 rounds of IMO (Public Sale) sales reaching more than 1 million USD in less than 40 minutes, especially the 3rd IMO round sold out in just over 30 seconds.\n
In addition, BHO Network has an expansive network of media & social networking communities in more than 20 countries and territories and more than 10,000 media partners that include news sites, communities, and KOLs.\n
With more than 100,000 members of the BHO Network community and the monthly website traffic of over 500,000 times, BHO Pad can be the door to help blockchain projects come closer to the community, thereby accessing and interacting with potential investors more easily.\
BHO Pad is one of the core products in the BHO Network ecosystem, aiming to support and accompany Vietnamese blockchain start-ups.

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BHO Pad

A sovereign chain based on the Substrate architecture, an established blockchain platform in terms of resilience, performance, and security. BHO Chain employs the Nominated Proof-of-Stake (NPoS) system rather than the traditional Proof-of-Work (PoW) approach, resulting in a performant, green, and energy-efficient consensus mechanism. The BHO Chain is entirely open source, developers easy to build products & dapps on network.

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BHO Chain (BHC20)

BHO Wallet is a financial tool supporting individuals or organizations to hold assets, spend, and receive cryptocurrencies. Being aware of difficulties incurred when using digital wallets on the market, BHO Wallet offers solutions to optimize users' experience by developing superior features such as: personalization, security warning, simple interface. Hence, BHO Wallet promises to bring a completely different experience, while meeting users' needs and solving complications for more than 70 million investors in the market.\n
BHO Wallet is one of the key products to complete the ecosystem of BHO Network with the goal of supporting easy and safe transactions, as well as generating more financial opportunities for the BHO Network investor community, and the crypto em in general.

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BHO Wallet

BHO DEX is a decentralized exchange that enables online peer-to-peer cryptocurrency transactions.\n
BHO DEX enables projects to generate their own tokens on multiple chains, which facilitates trade and eliminates the need for multiple DEX, which results in increased risk in management.\n
With BHO DEX, end users may simply swap their tokens across several networks at a lower cost than with other DEX.\n
BHO DEX is a strategic product that leverages the high speed and cheap gas fee of BHO Network to accelerate the growth of users and dApps projects inside the BHO Network ecosystem.

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BHO DEX

BHO NFT Marketplace is a digital commercial platform connecting buyers and sellers to provide optimal services and experiences for users when trading NFT and GameFi products.\n
With the priorities of safety and ease of use, NFT Marketplace will provide a solution to help the exchange and purchase process be transparent and fast with NFT authentication tools while helping sellers to easily setup customisable stores. NFT Marketplace is the ideal platform to connect NFT and GameFi users with a community of creators, designers, and collectors of digital art publications.\n
NFT Marketplace is one of the four key products of BHO Network in its development roadmap in 2022, creating the premise for transparent and convenient trading and buying based on blockchain technology.

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BHO NFT Marketplace

Products

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BHO Network is built on BHO Chain (BHC-20) - a foundational and critical component of the BHO Network in enabling the development of a complete ecosystem based on blockchain technology.

BHO Network - Bring blockchain to life

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