**The rise of cryptocurrency and blockchain technology has been nothing short of revolutionary. Over the past decade, these innovations have transformed the way we perceive value, transfer wealth, and interact with the digital realm. As we venture further into the 21st century, what might our world look like when crypto and blockchain reach their full potential and achieve mass adoption worldwide?**

# Decentralized Financial Systems

The traditional banking system, with its centralized intermediaries, might become a relic of the past. The future will likely see a decentralized financial system (DeFi) where individuals can lend, borrow, and trade assets without the need for banks or brokers. This would reduce fees, increase speed, and potentially democratize access to financial services globally.

For example, through DeFi platforms, people in developing countries can secure microloans by leveraging crypto assets, empowering small businesses and promoting entrepreneurship.Migrant workers will benefit immensely as they can send remittances home at a fraction of the current costs and almost instantaneously, bypassing expensive middlemen and banking barriers.  Real estate properties could be tokenized, allowing individuals to buy fractional ownership. This means that rather than buying an entire property, you could own 0.1% of a penthouse in New York or 0.5% of a beachfront property in Malibu. Smarcontracts will help automate and simplify property sales, ensuring funds and property deeds change hands only when all conditions are met, reducing fraud and speeding up transactions

With blockchain's transparent and immutable nature, every transaction will be traceable to its source, thereby drastically reducing fraud and corruption. The concept of "trust" will no longer hinge on a middleman's credibility but on the infallible nature of decentralized ledgers.

# Revolutionize data

With data being stored in a decentralized system, available for multi-platform, people will have access to data more easily and this will bring up an endless possible possibilities:

- People will have full control over their wealth, data, and digital identities. No longer would giant corporations or governments hold undue influence over personal data. With self-sovereign identities, individuals could share or withhold personal information at their discretion. Content creators will benefit more from platforms and will - by all means - own their contents. Users will no longer have to worry about their data being stolen. 

- Patients could have access to their health records via a blockchain. This means when traveling or changing doctors, the medical history could be easily and securely shared, ensuring continuity in care. Counterfeit drugs could be curtailed with blockchain by tracking medications from the manufacturer to the end consumer, ensuring authenticity.

- With blockchain's traceability, goods can be tracked from origin to consumer, ensuring authenticity and reducing counterfeit products. This could revolutionize industries from agriculture to luxury goods, ensuring ethical practices and quality assurance. For examples: Consumers will know exactly where their food came from. Scan a QR code on a packet of coffee beans, and you could see its journey from a farm in Colombia, through processing, shipping, and onto the store shelf. 

- Furthermore, with decentralized data storage, the metaverse - a collective virtual shared space, will likely become more prevalent. Within this space, various blockchain networks could interoperate, allowing assets and data to move seamlessly between different virtual worlds and platforms.

# New economic models

Tokenomics, the economic models based around tokens or cryptocurrencies, could lead to innovative business strategies and community-driven projects. We might see more decentralized autonomous organizations (DAOs) where operations and decisions are made collectively by its members rather than a centralized authority.

# Sustainable and green solutions

With the maturation of blockchain technology, eco-friendly consensus algorithms will likely replace energy-intensive ones, leading to sustainable crypto ecosystems. These advancements could also enable better tracking of carbon footprints and environmental impact across industries.

**The full potential of crypto and blockchain technology paints a vision of a world that's more decentralized, transparent, and equitable. While challenges remain, such as regulatory concerns and technological barriers, the trajectory is clear. As with all transformative technologies, it’s not just about the innovation itself, but how society chooses to adopt, adapt, and evolve with it. The future of crypto isn't just about finance or technology; it's about reshaping the very fabric of our global society.**

As we venture further into the 21st century, what might our world look like when crypto and blockchain reach their full potential and achieve mass adoption worldwide?

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THE CRYPTO PROMISES: WHERE ARE WE HEADING?

**In just over a decade, Blockchain technology and cryptocurrencies have transformed from a novel topic, passed around by word of mouth in a group of online communities in the early days of its existence, to a global phenomenon and has truly reshaped financial paradigms. Once viewed with skepticism and suspicion, these innovations quickly grew into drivers of change, as organizations, governments and individuals began to realize their potential to revolutionize industries and redefine assets. The world's rapidly changing views on them also highlight the dynamic and unpredictable nature of technological and financial developments. So, after more than a decade of struggle and campaigning, how far has blockchain technology gone and what has changed?**

# Prejudices broken, paving the way for innovation

Bitcoin and Blockchain technology are often viewed with suspicion and many other concerns surrounding this new type of technology asset. Large companies such as J.P Morgan, until 2017, still declared that Bitcoin was a "fraud", or international payment service giant Mastercard expressed concern because Bitcoin was "involved in many illegal activities". We cannot blame the public for its well-founded concerns, because in its early stages, blockchain technology has not yet developed firmly enough and has revealed many shortcomings. Also, in the first years, a series of scandalous events such as Silk Road, Mt Gox, etc. made the world slow down on the road to Mass Adoption.

However, with the steady development of blockchain, old prejudices are gradually being replaced by more positive and potential views. Many large organizations have turned their opinion of Bitcoin and blockchain around in the past few years:

- **J.P. Morgan:** Jamie Dimon, CEO of J.P Morgan, declared Bitcoin to be a “fraud” in 2017, and said he would fire any employee who traded Bitcoin. Yet in 2020, this bank began providing services to many cryptocurrency exchanges such as Coinbase and Gemini, culminating in J.P Morgan also launching JPM Coin, a payment token for the bank's own blockchain network . As of October 2023, more than 300 billion USD has been traded with JPM Coin.

- **Paypal:** In the early years, PayPal kept its distance from crypto, mainly due to concerns about volatility, security, and the potential for abuse of illegal behaviors. But Paypal made a U-turn in 2020, allowing US users to buy, sell and hold various cryptocurrencies, including Bitcoin, Ethereum and Litecoin, directly from their accounts. This decision brought cryptocurrencies to more users, increasing awareness of digital assets.

- **Blackrock and Larry Fink:** BlackRock and Larry Fink represent one of the most important turning points in how quickly the world has changed. Until 2017, Larry Fink - CEO of Blackrock - the world's largest investment organization with more than 10,000 billion USD in assets under management, continued to call Bitcoin a "money laundering index", expressing skepticism about the real applications of blockchain and cryptocurrency, other than serving illegal activities. But over time, BlackRock began to show more interest in blockchain and cryptocurrency. By 2018, there were reports that the company has established a team of experts to research Bitcoin and other cryptocurrencies. In 2021, BlackRock added Bitcoin futures as a potential investment to two of its funds. For Larry Fink himself, in an interview at the end of 2020, he recognized Bitcoin as a potential investment and has the potential to grow into a real asset class. Furthermore, Larry Fink also said that digital money could play an important role in the world's finances of the future.

Fink's shift in perspective also represents that of financial leaders in general, as they begin to appreciate the potential impacts and benefits of a decentralized financial system. As more institutions like BlackRock enter the space, the role of cryptocurrencies in the future of the financial system continues to strengthen.

# Technology is widely adopted

According to a report from Coinbase, more than 80% of Fortune 500 companies have entered the blockchain and crypto space, and 44 companies in the top 100 largest companies in the world by capitalization are already using blockchain technology. Besides, many technology giants have begun to apply this new technology for many different aspects and purposes. 

- **IBM:** IBM Blockchain is IBM's enterprise blockchain platform, helping companies build, adopt, and deploy their own blockchain networks. In addition, IBM also provides consulting services for businesses that want to learn more about blockchain technology solutions to integrate to operate more efficiently. 

- **Microsoft:** Microsoft has cooperated with many companies to apply blockchain technology to business operations. In addition, Microsoft has partnered with many other financial services companies to develop the ability to apply blockchain to cross-border payments and financial transactions. Microsoft also invests very actively in Web3 startup projects, with the most recent project being Space and Time, where the technology giant led the funding round with 20 million USD.

- **Google:** Similar to Microsoft, Google has also significantly funded blockchain startups, bringing its investment in this area to nearly $1.5 billion from September 2021 to June 2022. The company also has begun integrating blockchain into its business. In October 2022, Google launched Blockchain Node Engine (BNE) for Web3 developers. This service allows Web3 companies to execute transactions, launch smart contracts, and access or record blockchain data through Google Cloud. Ethereum will be the first blockchain network supported by BNE.

The expansion and widespread adoption of blockchain by tech giants marks an important phase for the blockchain sector. The growth and diversification of blockchain applications comes from the investment, collaboration and innovative approach of these companies. Clearly, as blockchain technology continues to develop and become more complex, large technology corporations will increasingly push for its widespread adoption across various industries. With their vast resources, extensive knowledge, and experience in implementing technology solutions, these companies will certainly be at the forefront of shaping the future of blockchain in the coming years.

# Ideas become reality 

In addition to technology being widely applied, ideas about decentralization and transparency are also gaining more attention from both businesses and the public. Not only that, many world governments have been researching, with some large countries, such as Russia, having successfully put CBDC - a central digital currency built on blockchain, into testing, in order to create a more secure, transparent and efficient monetary system. The development of CBDC also shows the interest of governments in the benefits that blockchain and crypto technology bring. 

In addition, debates about privacy, decentralization, and transparency have also occurred more since the birth of crypto, pushing platforms to gradually lean toward decentralization and stricter protection of users’ privacy and freedom. The most recent example is the example of X (formerly Twitter), which has implemented many reform policies, sharing advertising revenue with users, to ensure the platform is more decentralized. 

We can see that, besides its direct applications and impacts, blockchain's ideal of decentralization is gradually seeping into the world's thinking and indirectly changing it day by day. 

**Blockchain and crypto have undergone significant transformations since they first appeared. Since then, this sector has continuously achieved many important milestones, overcoming skepticism and asserting its undeniable position to provide an opportunity to reshape the financial system.**

Join BHO Network to learn about the Current State of Cryptocurrency through this article!

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THE CURRENT STATE OF CRYPTO: IDEALS THAT HAVE BEEN REALIZED

**The emergence of blockchain technology and cryptocurrencies like Bitcoin is not an isolated phenomenon. Instead, it's a response to a series of economic, political, and technological challenges that plagued the world in the preceding decades. To grasp why these innovations were born, we must delve deep into the intricate issues of the pre-blockchain era.**

# Centralized financial systems and their shortcomings

**Monopoly and Inefficiencies:** Central banks and major financial institutions held an inordinate amount of power over the financial system. Their monopoly led to inefficiencies like lengthy transaction times and high fees, especially for cross-border transactions.
  
**Systemic Risk:** The centralized nature of the financial system made it vulnerable. The collapse or failure of a significant institution, as seen during the 2008 Financial Crisis, could send shockwaves through the entire global economy. This systemic risk posed a looming threat to financial stability.

# Economic Turmoil: The 2008 Financial Crisis

**Misplaced Trust:** Banks and financial institutions indulged in risky lending and investment practices. When these high-risk mortgage-backed securities failed, it led to a cascade of financial disasters, culminating in the 2008 crash.

**Erosion of Trust:** The subsequent bailouts of major banks using taxpayer money and the absence of stringent actions against the key culprits eroded public trust in centralized financial entities.

# Financial Exclusion: A World Unbanked

**Limited Access:** A vast segment of the global population, especially in developing nations, lacked access to traditional banking services. Without bank accounts, these individuals were excluded from global economic participation.

**High costs for the marginalized:** Those who had limited access to banking often faced exorbitant fees for basic financial services, further exacerbating economic inequalities.

# Privacy, surveillance, and the threat to individual freedoms

**Rise of the Digital Age:** As the world became increasingly digitized, vast amounts of personal data were collected, stored, and sometimes misused by corporations and governments.

**Surveillance concerns:** Revelations, like those from Edward Snowden about NSA surveillance, intensified concerns about privacy. There was a growing sentiment that personal financial transactions shouldn't be easily surveilled or controlled by any central entity.

# Currency Challenges: Hyperinflation and Capital Controls

**Faltering economies:** Several countries experienced economic mismanagement leading to hyperinflation, where national currencies lost almost all their value. Zimbabwe in the early 2000s and Venezuela in the 2010s are prime examples.

**Restrictive controls:** Some governments imposed strict regulations on currency exchange and movement of capital across borders, limiting their citizens' financial freedom.

# The desire for decentralized control: Cypherpunk and cryptographic solutions

**Cypherpunk Ideals:** Rooted in the belief that cryptography could be used as a tool for change, the cypherpunk movement sought methods to ensure privacy and freedom in an increasingly digital age.

**Early Digital Currencies:** Before Bitcoin, there were attempts at creating digital currencies, like David Chaum's Digicash. Though not widely adopted, they laid the groundwork for what was to come.

With these challenges as the backdrop, blockchain and cryptocurrency emerged as groundbreaking solutions. The decentralized, transparent, and immutable nature of blockchain offered a way to record transactions without centralized control. Simultaneously, cryptocurrencies like Bitcoin promised financial inclusion, privacy, and freedom from traditional currency woes.

**In essence, the birth of blockchain and cryptocurrency can be seen as a culmination of decades of economic, political, and technological tensions, offering a fresh approach to age-old problems.**

Let’s learn about the birth of cryptocurrency with BHO Network through this article!


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THE PREMISES OF CRYPTO: WHERE DID WE START?

**In recent years, the blockchain and cryptocurrency sector has seen significant growth and innovation. In particular, Central Bank Digital Currency (CBDC) is one of the important factors creating a strong driving force for change in the entire market landscape. These cryptocurrencies, issued and regulated by central banks, have the potential to completely transform traditional financial systems and significantly influence the current market. In this article, we will delve into the ways in which CBDCs can impact the cryptocurrency market.**

# Clarity in regulations

With the emergence of CBDC, regulations and laws applicable to the crypto market are expected to become much clearer. The government - with CBDC, is establishing preparatory steps to propose comprehensive frameworks for the issuance and operation of future cryptocurrencies. This clarity can instill more confidence in investors, helping to attract more investors to participate, increasing liquidity in the cryptocurrency market.

# Integrate the two markets and cooperate more deeply

CBDCs hold the potential to create a new level of integration between traditional financial systems and cryptocurrencies. As central banks research blockchain technology, they can develop protocols that enable seamless transactions between CBDCs and popular cryptocurrencies like Bitcoin or Ethereum. 

Integrating the two markets can help develop the greatest advantages of both: the abundant liquidity of the traditional market and the transparency and decentralization of the crypto market. This combination could lead to increased inflows into the market, increasing access to both CBDCs and decentralized cryptocurrencies. 

# Create a competitive environment and promote technology development

The advent of CBDC is stimulating a new wave of competition and innovation. Central banks are actively investing in cutting-edge blockchain solutions to create easy-to-use cryptocurrencies, setting a new standard in functionality and efficiency. This competition is expected to push decentralized cryptocurrencies to further improve themselves, thereby increasing the potential to push the industry into a new era of technological development.

# Stablecoin - from a research perspective

CBDCs are poised to challenge the dominance of stablecoins and digital assets backed by traditional currencies. As the introduction of government-led cryptocurrencies may impact this sector, the supply and demand for existing stablecoins will likely be affected. However, if stablecoins are intelligently designed with special advantages, they can continue to maintain their position, potentially creating specialized segments in the market. But in the short term, certainly the position of the Stablecoins we are using today will be significantly affected and it is possible that smaller centralized stablecoins may be knocked out of the market.

# New era, new price line

CBDCs could introduce a new variable into the crypto market equation, which could influence price movements and overall market sentiment. As central banks face the challenges of cryptocurrency implementation, their decisions and policies could impact the entire digital asset space. With the new era of CBDC and institutional investors, the "rules of the game" may change, the way the market reacts to news will be expressed differently on the price line, and we - as investors - will have to learn to adapt.

Additionally, CBDCs represent a major leap towards a more global financial ecosystem. Governments can leverage cryptocurrencies to expand financial services to unbanked or underbanked populations, thereby creating new opportunities for economic development.

**The upcoming emergence of CBDC promises to open a new era of opportunities and challenges for the cryptocurrency market. While their full impact will still take time, it is clear that CBDCs will play a decisive role in shaping the future of digital finance. Investors, from individuals to institutions, will need to closely monitor these developments and adjust to the changing landscape.**


Learn how CBDC - Central Bank Digital Currency can impact the cryptocurrency market with BHO Network through the article below!

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HOW CAN CBDC IMPACT THE CRYPTOCURRENCY MARKET?

**Central Bank Digital Currency - CBDC has quickly been given the green light by many governments and has become a hot topic that attracted the attention of many experts. These cryptocurrencies, issued and regulated by central banks, have the potential to change the way we conduct financial transactions and manage monetary policy. In this article, we will learn what CBDC is, and the benefits and challenges that it brings.**

# About CBDC

Central Bank Digital Currency - CBDC, as the name suggests, is a digital form of a country's national currency issued and backed by a central bank. Unlike cryptocurrencies like Bitcoin or Ethereum, which are centralized and operate on blockchain technology, CBDCs are centralized and typically operate on a ledger held and controlled by banks. CBDCs, similar to traditional fiat currencies, are designed to function as fiat currencies and can be used to make payments or execute other financial transactions. CBDCs can be designed as account-based or token-based balances, depending on the design of the central bank issuing them.

Typically, there are two main types of CBDC:

- CBDC Retail: This cryptocurrency is publicly available to the public and can be used for everyday transactions, similar to regular cash. CBDC retail is designed as a complementary option to existing forms of currency, providing convenience and safety for users in digital payments.
- CBDC Wholesale: CBDC Wholesale is designed for transactions between banks and payment processes in the financial system. They are mainly used by financial institutions and central banks to facilitate large-scale money transfers and settlement of securities.

# CBDC’s benefits

CBDC is becoming popular and has been noticed by many central banks around the world, of which some large central banks have successfully developed it and started piloting it, for example Sberbank of the Russian Federation. The reason this currency was given the "green light" among central banks simultaneously and so quickly is thanks to the many practical benefits it brings, along with the ability to solve some difficult problems that many banks have previously stumbled on. The biggest benefits that Central Bank Digital Currencies bring include:

- Financial Accessibility: CBDCs have the potential to increase financial inclusion by providing digital financial services to individuals and businesses that may not have had access to them before.
- Efficiency and Security: Cryptocurrencies can optimize the payment process, minimizing the need for physical cash and the associated costs. Additionally, the use of blockchain technology can enhance security and transparency in transactions.
- Easier implementation of monetary policy: CBDCs provide central banks with more direct and precise control over money supply and interest rates, helping them implement monetary policy more effectively.
- Fight illegal activities: The ability to trace CBDC transactions can help combat money laundering, tax evasion, and other forms of financial crime more effectively.

# Challenges and concerns

- Privacy concerns: The widespread use of CBDCs raises significant privacy issues, as transactions can be tracked and monitored more easily than with cash.
- Technological infrastructure: Implementing CBDC requires a strong and secure technological infrastructure, which can cause difficulties for some countries that do not have a good enough scientific and technological foundation.
- Legal framework: Clear and effective legal frameworks need to be established to govern the issuance, distribution and use of CBDC.
- Cross-border interoperability: Extensive coordination and international agreements will be important to address international interoperability issues, and to ensure interoperability between different CBDC systems.

The emergence of CBDC is an exciting development in the world of cryptocurrency, with the potential to change the global financial landscape. As central banks continue to explore the possibility of establishing their own CBDCs, monitoring the potential impact on cryptocurrency markets and the overall financial ecosystem will become critical.

**Ultimately, successful integration between CBDCs and cryptocurrencies could pave the way for a more efficient, secure, and widespread financial system, benefiting both individuals and businesses.**


In this article, we will learn what CBDC is, and the benefits and challenges that it brings.

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LEARN ABOUT CBDC - THE CENTRAL BANK DIGITAL CURRENCY

**Decentralized data storage is not a new concept, but still unfamiliar to most users. However, this is arguably one of the most practical and potential applications of blockchain and cryptography today. Let’s learn about the concept and decentralized storage technology of Blockchain through this article with BHO Network.**

# What is Decentralized Storage?

Cloud storage services like Dropbox and Google Cloud have changed the way users store and share data. They allow people to store terabytes of data at a much cheaper cost than buying a new hard drive, and files can be accessed at any time from any device. But there's a problem: Users have to rely on a centralized organization's risk management system that can revoke access to their accounts at any time. Furthermore, if required by the government, your data will be dissected freely, not to mention other impermanent risks on the server side which could cause your data to be lost forever. Thus, depending on a centralized institution always poses systemic risks for all users - us.

Web3 opens up another opportunity: decentralized file storage networks like Filecoin, Storj, and Arweave. Instead of storing data with a single cloud company, these decentralized file storage protocols break your data into small pieces, then store the data packets on anonymous computers (nodes) connected to the decentralized network. This means that network-protected files come from multiple stakeholders instead of a single company.

Decentralized networks are usually blockchains. Instead of processing transactions for cryptocurrencies, miners or validators validate and process file space for rewards in crypto - usually the protocol's native token. With Filecoin, for example, FIL is used as a reward for participants providing storage space.

To receive the reward, miners/validators must prove they are storing a file on their hard drive in a consensus mechanism commonly known as Proof of Storage. This mechanism is designed to maintain the honesty and trustworthiness of miners and validators, motivating node operators to maintain your data storage.

Unlike centralized file sharing services where you pay with regular currency, usually as a monthly service, decentralized hosting services operate on cryptocurrencies. Storage is rented and paid for in cryptocurrencies. So, if a user chooses to use Filecoin to store their files, they will pay with FIL corresponding to the amount of storage space required.

# Advantages of decentralized storage

One benefit of decentralized storage systems is the political aspect – or more specifically, it is designed with apolitical criteria in mind. Files are stored on a decentralized storage service that is resistant to control by any centralized organization, such as a government wanting to control and censor content. It also prevents a private company from adopting its own policies such as denial of service or taking other actions with respect to the data it holds, such as sharing them with law enforcement authority.

With decentralized storage, there is no single authority that can stop you from saving your data. These networks are also highly secure thanks to blockchain technology and cryptography. Data stored on these networks is encrypted before being stored, and no single computer can hold all of the data.

A big advantage of decentralized storage is that it is often much cheaper than storing the same amount of data on cloud providers like AWS or Azure.

# Decentralized storage networks on the current market

One of the most popular networks is IPFS, which stands for InterPlanetary File System. It is used to host NFTs and web pages, with the statement that these media are not censored and cannot be removed by the protocol's founder.

IPFS was developed by Protocol Labs and launched in 2015. Data on IPFS is stored in multiple locations, which are then recombined each time someone needs to download a file contained within its network. IPFS is not blockchain-based, but its hashes can be contained in the blockchain transaction's metadata.

Protocol Labs is also the founding company of Filecoin, and although all of Filecoin's nodes are IPFS nodes, Filecoin operates independently of IPFS, but the two share some similar ideas. The main difference is that while IPFS is built for short-term data retrieval, Filecoin is built for long-term data retention. A competitor named Arweave also implements many similar solutions. One of the main differences is the payment structure: Data will be removed from Filecoin if monthly bills remain unpaid while Arweave stores data permanently. Other competitors in the market include Sia, Akash and Storj.

**With the development of blockchain and crypto technology, and practical applications built on top of them, the storage services we are using today are highly likely to be replaced by many solutions in the future, which are more decentralized, safer, and more transparent.**

Let’s learn about the concept and decentralized storage technology of Blockchain through this article with BHO Network.

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DECENTRALIZED STORAGE - ONE OF THE BEST POTENTIAL APPLICATIONS OF BLOCKCHAIN

Since its initial introduction in 2014, the concept of Stablecoin has quickly gained popularity and become an essential part of the cryptocurrency market. However, it doesn't only serve as an intermediary for trading in the crypto market; stablecoins and the new technological advancements around them have also paved the way for revolutionary solutions in the traditional financial market. Let's explore the importance of stablecoins through this article by BHO Network.

**The Role of Stablecoin in the Crypto Market**

Stablecoins have become crucial for financial activities in the crypto world due to two main reasons:

1. Stablecoins provide the best way for traders to deal with market volatility:
Thanks to their price stability, stablecoins have become the primary method for traders to conduct transactions on cryptocurrency exchanges. The earliest crypto exchanges didn't have USD or other fiat currencies, hence the need for stablecoins to replace fiat. Traders can switch to stablecoins after closing a position to protect their profits.

2. Stablecoins offer the easiest route to purchase cryptocurrencies with fiat:
When investors first enter the crypto market, their initial step is often to convert fiat money into cryptocurrencies. The simplest way to achieve this is by buying stablecoins pegged to the value of a fiat currency. For example, if you want to convert USD to crypto, you can exchange your USD for an equivalent amount of USD Tether (USDT).

**The Role of Stablecoin in the Traditional Financial Market**

1. Stablecoin are designed for the increasingly globalized economy. In theory, they address significant challenges and limitations in international currency exchange.

2. Stablecoin users don't need multiple international bank accounts to send digital money to friends in different countries; they only need a cryptocurrency wallet.

Stablecoins facilitate direct money transfers between individuals without the need for third-party intervention.

Using stablecoins reduces transaction costs, transfer times, and the inherent privacy risks associated with central bank-controlled banking systems.

Imagine you're a business owner in China wanting to pay a bill for a Japanese customer who also has subcontractors in Europe. You would need a Chinese bank account, a Japanese bank account, and a European bank account. If someone wants to send you Euros, Japanese Yen, or Chinese Yuan, third parties can hold those accounts to exchange those currencies into a form you can hold and send to your bank. And in this process, third parties can charge significant fees.

Now, what if our needs involve more than three countries? In today's globally integrated economy, the demand for cross-border money transfer is increasing rapidly and won't stop growing. We can't possess 50 different bank accounts in 50 different countries. However, with stablecoins, we don't need to; we only need a cryptocurrency wallet address containing stablecoins to solve this issue.

Especially for those valuing privacy, this aspect of stablecoins is appreciated because it can bypass the Know Your Customer (KYC) process – the requirement to submit personal documents and social security information to open financial accounts. While KYC has become routine for most of us in currency transactions, crypto advocates believe KYC poses obstacles when applied to central banks in different countries.

For a crypto investor, holding 10 different stablecoins in a Ledger wallet is possible. If I need to transfer Russian Rubles to Russia, I only need to hold the stablecoin representing Rubles in my wallet and use it like Rubles without converting. This direct model between individuals using stablecoin saves processing costs and administrative fees for third parties. With hundreds of billions of USD in profits flowing into intermediaries' pockets annually due to money transfer and currency exchange services, stablecoin and central bank digital currency (CBDC) applications can optimize those billions for businesses and consumers.

We can't deny the crucial role of stablecoins, which not only bring significant benefits to the crypto market but also offer solutions to the major challenges of the current traditional financial system. However, similar to the crypto market, stablecoins are still seen as a new and relatively young asset class, facing certain risks. Hence, investors should carefully consider before choosing to use and reserve any stablecoin.

For secure and convenient storage of stablecoins, users can utilize the 3S Wallet, a multi-chain crypto wallet that allows holding stablecoins across multiple blockchain networks with just one wallet. The 3S Wallet is a blockchain wallet product developed by BHO Network, built on the pillars of Simplicity, Security, and Safety. The 3S Wallet has been refined to simplify the interface and operations, providing users with the smoothest and easiest experience. With 3S Wallet, users can connect to DApps and decentralized derivative exchanges to trade, seizing opportunities while ensuring full control over their assets.

👉 Securely store stablecoins and cryptocurrencies with 3S Wallet:

1️⃣ Appstore:https://apps.apple.com/vn/app/3s-wallet/id1622316272
2️⃣ CH Play: https://play.google.com/store/apps/details?id=network.bho.wallet&hl=vi&gl=US&pli=1


Doesn't only serve as an intermediary for trading in the crypto market; stablecoins and the new technological advancements around them have also paved the way for revolutionary solutions in the traditional financial market

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THE IMPORTANT ROLE OF STABLECOIN

**Stablecoin is an important asset class in the crypto market, designed to provide investors with a haven from the high volatility of most cryptocurrencies. In addition to USD, stablecoins can also be pegged to other fiat currencies such as Euro, Australian dollar, British pound, as well as other types of physical assets such as gold, silver, etc.**

Stablecoins make trading cryptocurrencies easier because they are designed to withstand the high volatility that characterizes the crypto market. At the same time, it provides a convenient solution for traders to preserve the value of their assets without having to withdraw their funds from the market. Let’s learn about stablecoins on the market today and how they work with BHO Network!

# How does Stablecoin work?

The mechanism and essence of all stablecoins are the same: They are cryptocurrencies minted on the blockchain that users can buy, sell, and trade on an exchange like any other cryptocurrency. People can store stablecoins in hot or cold wallets just like storing bitcoin or any other altcoin. Stablecoins are, at their core, stable, meaning that their value is virtually unchanged, or only fluctuates slightly, and is pegged to the real-world price of a certain asset (usually a fiat currency, such as USD or Euro).

For transparency, most stablecoins are linked to a reserve fund that holds other assets, be it cash, commodities like gold, or commercial debt products like commercial paper or bonds, etc. In most cases, the company or corporation that develops the stablecoin owns reserves equal to the number of stablecoins in circulation. This ensures that any stablecoin holder can exchange their stablecoin for fiat at any given time.

Currently, there are 4 types of stablecoins on the crypto market:

1. Fiat-backed stablecoins
2. Crypto-backed stablecoins
3. Commodity-backed stablecoins (gold, stocks, bonds, etc.)
4. Algorithmic stablecoins

# Fiat-backed stablecoins
 
Fiat-backed stablecoins are the most popular stablecoins on the market. For example, USD coin (USDC) or Tether (USDT) are the two largest stablecoins in the market that are collateralized by US dollars (USD) at a ratio of 1:1. Several other less popular stablecoins are pegged to the Euro, British Pound, Japanese Yen and Chinese RMB to fully serve the needs of international investors. Issuers of these stablecoins will have to hold collaterals in their reserves at a ratio of 1:1 to the amount of stablecoins circulating in the market, to ensure that users can sell stablecoins for fiat money quickly when needed.

# Crypto-backed stablecoins

Stablecoins backed by a cryptocurrency are collateralized by another more popular cryptocurrency. For example, MakerDAO is one of the most popular crypto-backed stablecoins. It uses a smart contract – a type of self-executing contract based on code – along with the Ethereum blockchain to raise enough ether (ETH) to use as collateral for its stablecoin. Then, when the amount of collateral reaches a certain level in the smart contract, the user can generate DAI - MakerDAO's stablecoin.

# Commodity-backed stablecoins

As the name suggests, commodity-backed stablecoins will be pegged to certain commodities such as precious metals, industrial metals, oil or real estate. Commodity investors love this stablecoin option as it allows them to invest in gold without the hassle of sourcing and storing gold. Tether gold (XAUT) is an example of a commodity-backed stablecoin. This coin is backed by a gold reserve held in a vault in Switzerland. One ounce of gold is equal to one XAUT.

# Algorithmic stablecoins

As for the group of stablecoins that are not backed by any real world commodity, they use an algorithm to adjust the supply based on market demand. In short, these algorithms automatically destroy (permanently remove coins from circulation) or create new coins based on the stablecoin's variable demand at any given time.

You can think of algorithmic stablecoins as an outdoor bucket of water with a water level marker inside. To keep the water in the bucket at exactly a certain level, you set up a mechanism that adds or subtracts water depending on how far the water has deviated from the mark. This is controlled by a computer algorithm such that if it rains and the bucket starts to fill with water, the algorithm instructs the mechanism to drain the water out of the bucket until the water level mark is reached. Conversely, if it's a hot day and the water evaporates out of the bucket, the computer algorithm instructs the mechanism to add water to the bucket until the correct level is reached.

**The application of algorithmic stablecoins in the crypto ecosystem has been through a lot of trial and error, and the failure of Terra's stablecoin UST has shown that things can turn upside down if the algorithm can't respond to sudden changes.**


Let’s learn about stablecoins on the market today and how they work with BHO Network!

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STABLECOIN KNOWLEDGE: TYPES OF STABLECOIN ON THE CURRENT MARKET

**When FTX suddenly collapsed and users across the globe realized that they could not withdraw their funds, bankruptcy documents revealed that FTX had as much as $50 billion in liabilities, and it was unclear what the remaining assets were. Because cryptocurrencies do not have an insurance system similar to federal deposit insurance from the FDIC to compensate for these losses, customers have to wait for the bankruptcy court to recover the rest of their assets - that is if they are still there.**

The collapse of FTX is just one consequence of a problem that persists in custodial exchanges: these platforms only allow customers to trade the amount they have placed on the exchange. When clients trade on custodial exchanges and leave their assets there, they fully bear the risk that the exchange may go bankrupt. When these exchanges become insolvent, they will often slow down or completely stop withdrawals.

Unfortunately this happens all too often in the crypto space. Exchanges being hacked (Binance and Coinbase, the top two crypto exchanges by trading volume, have also been hacked), and founders like Sam Bankman-Fried may not really care about customers as shown by social media.

Another situation customers of custodial exchanges face is inefficient security mechanisms, which can happen when an important founder goes missing, taking private keys and private access to funds with him/her. That's what happened when the founder of QuadrigaCX died suddenly, leaving users unable to access their accounts (it was later learned that he had wasted customer funds, and cold wallets were almost empty).

An alternative is to use a non-custodial exchange, also known as a decentralized exchange or DEX. Typical DEX exchanges include Uniswap, SushiSwap and dYdX. These are decentralized finance (DeFi) protocols that users connect to without giving up access to their assets. Instead, investors trade directly from a decentralized wallet like MetaMask or Ledger, without having to hand over their deposit to a holding exchange.

At first glance, this sounds like a better solution. Client funds are held by the clients, preventing founders from taking control of user funds and investing in riskier assets.

However, there are also downsides. One downside is that decentralized exchanges are often much slower at least because all transactions take place on the blockchain. The other problem is that the transaction can be more expensive. Finally, due to the transparency of the blockchain, transactions are less private than on a custodial exchange.

Another thing to consider with a DEX is that you can only swap crypto to crypto within the DEX, while centralized crypto exchanges like Coinbase allow conversions between fiat and crypto currencies (e.g. US dollars and bitcoin).

A well-known tagline of non-custodial solutions is *Not your key, not your money*, emphasizing the importance of decentralized wallet keys. Whoever holds the key, will take control of the assets on the wallet, so the responsibility to keep the assets lies entirely with the user, which also means there will be no customer support to help you if you lose control of your wallet. However, for some people, the responsibility of actively holding private keys is an advantage of a non-custodial exchange.

In contrast, custodial exchanges, also known as centralized platforms, are very convenient (if not hacked), easy to pay (when not bankrupt) and very popular (when they still work). Moreover, they are very cheap because the transaction does not take place on the blockchain, but on the appropriate systems owned by these exchanges. Therefore, people flock to them in large numbers.

Recognizing that people prefer not having their funds stolen by suspicious exchanges, centralized ones are gradually moving towards being more secure and transparent.

Several major exchanges, notably Binance and Kraken, have chosen to publish cryptographically verified proof of reserve ratios, showing how much they have available at any given time. This allows customers to check if the exchange is on the verge of bankruptcy, or if the books look suspicious. However, many have pointed out that ignoring other obligations of an exchange like Binance – such as debts to customers and lenders – can undermine the transparency of the exchange.

Other exchanges, including Coinbase, commit to a 1-to-1 asset guarantee. Coinbase states that all customer funds are fully secured at all times and are never invested or loaned without authorization. Coinbase can do this by charging fees for withdrawals and transactions. However, there is still a risk that Coinbase customers could be treated as "unassessed creditors" in the event of bankruptcy, which means they have to wait until other investors claim their share.

**In short, no solution is perfect, and danger can come from any direction. Both custodial and non-custodial exchanges can contain security holes that could threaten your funds. Therefore, some experienced investors choose a hybrid strategy, keeping parts of their assets in non-custodial wallets, and others in a centralized exchange with high liquidity, which will help reduce risks and bring high efficiency, suitable for all needs.**

In this article, we will look at the pros and cons of both custodial and non-custodial exchanges!

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CUSTODIAL AND NON-CUSTODIAL EXCHANGES - PROS AND CONS

3S 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, 3S 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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3S Wallet

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 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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