An approximate introduction to how zk-SNARKs are possible (part 2)
If tasked with the problem of coming up with a zk-SNARK protocol, many people would make their way to this point and then get stuck and give up. How can a verifier possibly check every single piece of the computation, without looking at each piece of the computation individually? But it turns out that there is a clever solution.
Polynomials
Polynomials are a special class of algebraic expressions of the form:
- x+5
- x^4
- x^3+3x^2+3x+1
- 628x^{271}+318x^{270}+530x^{269}+…+69x+381
i.e. they are a sum of any (finite!) number of terms of the form cx^k
There are many things that are fascinating about polynomials. But here we are going to zoom in on a particular one: polynomials are a single mathematical object that can contain an unbounded amount of information (think of them as a list of integers and this is obvious). The fourth example above contained 816 digits of tau, and one can easily imagine a polynomial that contains far more.
Furthermore, a single equation between polynomials can represent an unbounded number of equations between numbers. For example, consider the equation A(x)+ B(x) = C(x). If this equation is true, then it's also true that:
- A(0)+B(0)=C(0)
- A(1)+B(1)=C(1)
- A(2)+B(2)=C(2)
- A(3)+B(3)=C(3)
And so on for every possible coordinate. You can even construct polynomials to deliberately represent sets of numbers so you can check many equations all at once. For example, suppose that you wanted to check:
- 12+1=13
- 10+8=18
- 15+8=23
- 15+13=28
You can use a procedure called Lagrange interpolation to construct polynomials A(x) that give (12,10,15,15) as outputs at some specific set of coordinates (eg. (0,1,2,3)), B(x) the outputs (1,8,8,13) on thos same coordinates, and so forth. In fact, here are the polynomials:
- A(x)=-2x^3+\frac{19}{2}x^2-\frac{19}{2}x+12
- B(x)=2x^3-\frac{19}{2}x^2+\frac{29}{2}x+1
- C(x)=5x+13
Checking the equation A(x)+B(x)=C(x) with these polynomials checks all four above equations at the same time.
Comparing a polynomial to itself
You can even check relationships between a large number of adjacent evaluations of the same polynomial using a simple polynomial equation. This is slightly more advanced. Suppose that you want to check that, for a given polynomial F, F(x+2)=F(x)+F(x+1) with the integer range {0,1…89} (so if you also check F(0)=F(1)=1, then F(100) would be the 100th Fibonacci number)
As polynomials, F(x+2)-F(x+1)-F(x) would not be exactly zero, as it could give arbitrary answers outside the range x={0,1…98}. But we can do something clever. In general, there is a rule that if a polynomial P is zero across some set S=\{x_1,x_2…x_n\} then it can be expressed as P(x)=Z(x)*H(x), where Z(x)=(x-x_1)*(x-x_2)*…*(x-x_n) and H(x) is also a polynomial. In other words, any polynomial that equals zero across some set is a (polynomial) multiple of the simplest (lowest-degree) polynomial that equals zero across that same set.
Why is this the case? It is a nice corollary of polynomial long division: the factor theorem. We know that, when dividing P(x) by Z(x), we will get a quotient Q(x) and a remainder R(x) is strictly less than that of Z(x). Since we know that P is zero on all of S, it means that R has to be zero on all of S as well. So we can simply compute R(x) via polynomial interpolation, since it's a polynomial of degree at most n-1 and we know n values (the zeros at S). Interpolating a polynomial with all zeroes gives the zero polynomial, thus R(x)=0 and H(x)=Q(x).
Going back to our example, if we have a polynomial F that encodes Fibonacci numbers (so F(x+2)=F(x)+F(x+1) across x=\{0,1…98\}), then I can convince you that F actually satisfies this condition by proving that the polynomial P(x)=F(x+2)-F(x+1)-F(x) is zero over that range, by giving you the quotient:
H(x)=\frac{F(x+2)-F(x+1)-F(x)}{Z(x)}
Where Z(x) = (x-0)*(x-1)*…*(x-98).
You can calculate Z(x) yourself (ideally you would have it precomputed), check the equation, and if the check passes then F(x) satisfies the condition!
Now, step back and notice what we did here. We converted a 100-step-long computation into a single equation with polynomials. Of course, proving the N'th Fibonacci number is not an especially useful task, especially since Fibonacci numbers have a closed form. But you can use exactly the same basic technique, just with some extra polynomials and some more complicated equations, to encode arbitrary computations with an arbitrarily large number of steps.
see part 3
(Edited)
Hackernoon
3 years ago
👏 Awesome post! When is part 3 coming?
Trent Lapinski
3 years ago
Very complex topic, great explanation
More on Web3 & Crypto
Max Parasol
3 years ago
What the hell is Web3 anyway?
"Web 3.0" is a trendy buzzword with a vague definition. Everyone agrees it has to do with a blockchain-based internet evolution, but what is it?
Yet, the meaning and prospects for Web3 have become hot topics in crypto communities. Big corporations use the term to gain a foothold in the space while avoiding the negative connotations of “crypto.”
But it can't be evaluated without a definition.
Among those criticizing Web3's vagueness is Cobie:
“Despite the dominie's deluge of undistinguished think pieces, nobody really agrees on what Web3 is. Web3 is a scam, the future, tokenizing the world, VC exit liquidity, or just another name for crypto, depending on your tribe.
“Even the crypto community is split on whether Bitcoin is Web3,” he adds.
The phrase was coined by an early crypto thinker, and the community has had years to figure out what it means. Many ideologies and commercial realities have driven reverse engineering.
Web3 is becoming clearer as a concept. It contains ideas. It was probably coined by Ethereum co-founder Gavin Wood in 2014. His definition of Web3 included “trustless transactions” as part of its tech stack. Wood founded the Web3 Foundation and the Polkadot network, a Web3 alternative future.
The 2013 Ethereum white paper had previously allowed devotees to imagine a DAO, for example.
Web3 now has concepts like decentralized autonomous organizations, sovereign digital identity, censorship-free data storage, and data divided by multiple servers. They intertwine discussions about the “Web3” movement and its viability.
These ideas are linked by Cobie's initial Web3 definition. A key component of Web3 should be “ownership of value” for one's own content and data.
Noting that “late-stage capitalism greedcorps that make you buy a fractionalized micropayment NFT on Cardano to operate your electric toothbrush” may build the new web, he notes that “crypto founders are too rich to care anymore.”
Very Important
Many critics of Web3 claim it isn't practical or achievable. Web3 critics like Moxie Marlinspike (creator of sslstrip and Signal/TextSecure) can never see people running their own servers. Early in January, he argued that protocols are more difficult to create than platforms.
While this is true, some projects, like the file storage protocol IPFS, allow users to choose which jurisdictions their data is shared between.
But full decentralization is a difficult problem. Suhaza, replying to Moxie, said:
”People don't want to run servers... Companies are now offering API access to an Ethereum node as a service... Almost all DApps interact with the blockchain using Infura or Alchemy. In fact, when a DApp uses a wallet like MetaMask to interact with the blockchain, MetaMask is just calling Infura!
So, here are the questions: Web3: Is it a go? Is it truly decentralized?
Web3 history is shaped by Web2 failure.
This is the story of how the Internet was turned upside down...
Then came the vision. Everyone can create content for free. Decentralized open-source believers like Tim Berners-Lee popularized it.
Real-world data trade-offs for content creation and pricing.
A giant Wikipedia page married to a giant Craig's List. No ads, no logins, and a private web carve-up. For free usage, you give up your privacy and data to the algorithmic targeted advertising of Web 2.
Our data is centralized and savaged by giant corporations. Data localization rules and geopolitical walls like China's Great Firewall further fragment the internet.
The decentralized Web3 reflects Berners-original Lee's vision: "No permission is required from a central authority to post anything... there is no central controlling node and thus no single point of failure." Now he runs Solid, a Web3 data storage startup.
So Web3 starts with decentralized servers and data privacy.
Web3 begins with decentralized storage.
Data decentralization is a key feature of the Web3 tech stack. Web2 has closed databases. Large corporations like Facebook, Google, and others go to great lengths to collect, control, and monetize data. We want to change it.
Amazon, Google, Microsoft, Alibaba, and Huawei, according to Gartner, currently control 80% of the global cloud infrastructure market. Web3 wants to change that.
Decentralization enlarges power structures by giving participants a stake in the network. Users own data on open encrypted networks in Web3. This area has many projects.
Apps like Filecoin and IPFS have led the way. Data is replicated across multiple nodes in Web3 storage providers like Filecoin.
But the new tech stack and ideology raise many questions.
Giving users control over their data
According to Ryan Kris, COO of Verida, his “Web3 vision” is “empowering people to control their own data.”
Verida targets SDKs that address issues in the Web3 stack: identity, messaging, personal storage, and data interoperability.
A big app suite? “Yes, but it's a frontier technology,” he says. They are currently building a credentialing system for decentralized health in Bermuda.
By empowering individuals, how will Web3 create a fairer internet? Kris, who has worked in telecoms, finance, cyber security, and blockchain consulting for decades, admits it is difficult:
“The viability of Web3 raises some good business questions,” he adds. “How can users regain control over centralized personal data? How are startups motivated to build products and tools that support this transition? How are existing Web2 companies encouraged to pivot to a Web3 business model to compete with market leaders?
Kris adds that new technologies have regulatory and practical issues:
"On storage, IPFS is great for redundantly sharing public data, but not designed for securing private personal data. It is not controlled by the users. When data storage in a specific country is not guaranteed, regulatory issues arise."
Each project has varying degrees of decentralization. The diehards say DApps that use centralized storage are no longer “Web3” companies. But fully decentralized technology is hard to build.
Web2.5?
Some argue that we're actually building Web2.5 businesses, which are crypto-native but not fully decentralized. This is vital. For example, the NFT may be on a blockchain, but it is linked to centralized data repositories like OpenSea. A server failure could result in data loss.
However, according to Apollo Capital crypto analyst David Angliss, OpenSea is “not exactly community-led”. Also in 2021, much to the chagrin of crypto enthusiasts, OpenSea tried and failed to list on the Nasdaq.
This is where Web2.5 is defined.
“Web3 isn't a crypto segment. “Anything that uses a blockchain for censorship resistance is Web3,” Angliss tells us.
“Web3 gives users control over their data and identity. This is not possible in Web2.”
“Web2 is like feudalism, with walled-off ecosystems ruled by a few. For example, an honest user owned the Instagram account “Meta,” which Facebook rebranded and then had to make up a reason to suspend. Not anymore with Web3. If I buy ‘Ethereum.ens,' Ethereum cannot take it away from me.”
Angliss uses OpenSea as a Web2.5 business example. Too decentralized, i.e. censorship resistant, can be unprofitable for a large company like OpenSea. For example, OpenSea “enables NFT trading”. But it also stopped the sale of stolen Bored Apes.”
Web3 (or Web2.5, depending on the context) has been described as a new way to privatize internet.
“Being in the crypto ecosystem doesn't make it Web3,” Angliss says. The biggest risk is centralized closed ecosystems rather than a growing Web3.
LooksRare and OpenDAO are two community-led platforms that are more decentralized than OpenSea. LooksRare has even been “vampire attacking” OpenSea, indicating a Web3 competitor to the Web2.5 NFT king could find favor.
The addition of a token gives these new NFT platforms more options for building customer loyalty. For example, OpenSea charges a fee that goes nowhere. Stakeholders of LOOKS tokens earn 100% of the trading fees charged by LooksRare on every basic sale.
Maybe Web3's time has come.
So whose data is it?
Continuing criticisms of Web3 platforms' decentralization may indicate we're too early. Users want to own and store their in-game assets and NFTs on decentralized platforms like the Metaverse and play-to-earn games. Start-ups like Arweave, Sia, and Aleph.im propose an alternative.
To be truly decentralized, Web3 requires new off-chain models that sidestep cloud computing and Web2.5.
“Arweave and Sia emerged as formidable competitors this year,” says the Messari Report. They seek to reduce the risk of an NFT being lost due to a data breach on a centralized server.
Aleph.im, another Web3 cloud competitor, seeks to replace cloud computing with a service network. It is a decentralized computing network that supports multiple blockchains by retrieving and encrypting data.
“The Aleph.im network provides a truly decentralized alternative where it is most needed: storage and computing,” says Johnathan Schemoul, founder of Aleph.im. For reasons of consensus and security, blockchains are not designed for large storage or high-performance computing.
As a result, large data sets are frequently stored off-chain, increasing the risk for centralized databases like OpenSea
Aleph.im enables users to own digital assets using both blockchains and off-chain decentralized cloud technologies.
"We need to go beyond layer 0 and 1 to build a robust decentralized web. The Aleph.im ecosystem is proving that Web3 can be decentralized, and we intend to keep going.”
Aleph.im raised $10 million in mid-January 2022, and Ubisoft uses its network for NFT storage. This is the first time a big-budget gaming studio has given users this much control.
It also suggests Web3 could work as a B2B model, even if consumers aren't concerned about “decentralization.” Starting with gaming is common.
Can Tokenomics help Web3 adoption?
Web3 consumer adoption is another story. The average user may not be interested in all this decentralization talk. Still, how much do people value privacy over convenience? Can tokenomics solve the privacy vs. convenience dilemma?
Holon Global Investments' Jonathan Hooker tells us that human internet behavior will change. “Do you own Bitcoin?” he asks in his Web3 explanation. How does it feel to own and control your own sovereign wealth? Then:
“What if you could own and control your data like Bitcoin?”
“The business model must find what that person values,” he says. Putting their own health records on centralized systems they don't control?
“How vital are those medical records to that person at a critical time anywhere in the world? Filecoin and IPFS can help.”
Web3 adoption depends on NFT storage competition. A free off-chain storage of NFT metadata and assets was launched by Filecoin in April 2021.
Denationalization and blockchain technology have significant implications for data ownership and compensation for lending, staking, and using data.
Tokenomics can change human behavior, but many people simply sign into Web2 apps using a Facebook API without hesitation. Our data is already owned by Google, Baidu, Tencent, and Facebook (and its parent company Meta). Is it too late to recover?
Maybe. “Data is like fruit, it starts out fresh but ages,” he says. "Big Tech's data on us will expire."
Web3 founder Kris agrees with Hooker that “value for data is the issue, not privacy.” People accept losing their data privacy, so tokenize it. People readily give up data, so why not pay for it?
"Personalized data offering is valuable in personalization. “I will sell my social media data but not my health data.”
Purists and mass consumer adoption struggle with key management.
Others question data tokenomics' optimism. While acknowledging its potential, Box founder Aaron Levie questioned the viability of Web3 models in a Tweet thread:
“Why? Because data almost always works in an app. A product and APIs that moved quickly to build value and trust over time.”
Levie contends that tokenomics may complicate matters. In addition to community governance and tokenomics, Web3 ideals likely add a new negotiation vector.
“These are hard problems about human coordination, not software or blockchains,”. Using a Facebook API is simple. The business model and user interface are crucial.
For example, the crypto faithful have a common misconception about logging into Web3. It goes like this: Web 1 had usernames and passwords. Web 2 uses Google, Facebook, or Twitter APIs, while Web 3 uses your wallet. Pay with Ethereum on MetaMask, for example.
But Levie is correct. Blockchain key management is stressed in this meme. Even seasoned crypto enthusiasts have heart attacks, let alone newbies.
Web3 requires a better user experience, according to Kris, the company's founder. “How does a user recover keys?”
And at this point, no solution is likely to be completely decentralized. So Web3 key management can be improved. ”The moment someone loses control of their keys, Web3 ceases to exist.”
That leaves a major issue for Web3 purists. Put this one in the too-hard basket.
Is 2022 the Year of Web3?
Web3 must first solve a number of issues before it can be mainstreamed. It must be better and cheaper than Web2.5, or have other significant advantages.
Web3 aims for scalability without sacrificing decentralization protocols. But decentralization is difficult and centralized services are more convenient.
Ethereum co-founder Vitalik Buterin himself stated recently"
This is why (centralized) Binance to Binance transactions trump Ethereum payments in some places because they don't have to be verified 12 times."
“I do think a lot of people care about decentralization, but they're not going to take decentralization if decentralization costs $8 per transaction,” he continued.
“Blockchains need to be affordable for people to use them in mainstream applications... Not for 2014 whales, but for today's users."
For now, scalability, tokenomics, mainstream adoption, and decentralization believers seem to be holding Web3 hostage.
Much like crypto's past.
But stay tuned.
Julie Plavnik
3 years ago
How to Become a Crypto Broker [Complying and Making Money]
Three options exist. The third one is the quickest and most fruitful.
You've mastered crypto trading and want to become a broker.
So you may wonder: Where to begin?
If so, keep reading.
Today I'll compare three different approaches to becoming a cryptocurrency trader.
What are cryptocurrency brokers, and how do they vary from stockbrokers?
A stockbroker implements clients' market orders (retail or institutional ones).
Brokerage firms are regulated, insured, and subject to regulatory monitoring.
Stockbrokers are required between buyers and sellers. They can't trade without a broker. To trade, a trader must open a broker account and deposit money. When a trader shops, he tells his broker what orders to place.
Crypto brokerage is trade intermediation with cryptocurrency.
In crypto trading, however, brokers are optional.
Crypto exchanges offer direct transactions. Open an exchange account (no broker needed) and make a deposit.
Question:
Since crypto allows DIY trading, why use a broker?
Let's compare cryptocurrency exchanges vs. brokers.
Broker versus cryptocurrency exchange
Most existing crypto exchanges are basically brokers.
Examine their primary services:
connecting purchasers and suppliers
having custody of clients' money (with the exception of decentralized cryptocurrency exchanges),
clearance of transactions.
Brokerage is comparable, don't you think?
There are exceptions. I mean a few large crypto exchanges that follow the stock exchange paradigm. They outsource brokerage, custody, and clearing operations. Classic exchange setups are rare in today's bitcoin industry.
Back to our favorite “standard” crypto exchanges. All-in-one exchanges and brokers. And usually, they operate under a broker or a broker-dealer license, save for the exchanges registered somewhere in a free-trade offshore paradise. Those don’t bother with any licensing.
What’s the sense of having two brokers at a time?
Better liquidity and trading convenience.
The crypto business is compartmentalized.
We have CEXs, DEXs, hybrid exchanges, and semi-exchanges (those that aggregate liquidity but do not execute orders on their sides). All have unique regulations and act as sovereign states.
There are about 18k coins and hundreds of blockchain protocols, most of which are heterogeneous (i.e., different in design and not interoperable).
A trader must register many accounts on different exchanges, deposit funds, and manage them all concurrently to access global crypto liquidity.
It’s extremely inconvenient.
Crypto liquidity fragmentation is the largest obstacle and bottleneck blocking crypto from mass adoption.
Crypto brokers help clients solve this challenge by providing one-gate access to deep and diverse crypto liquidity from numerous exchanges and suppliers. Professionals and institutions need it.
Another killer feature of a brokerage may be allowing clients to trade crypto with fiat funds exclusively, without fiat/crypto conversion. It is essential for professional and institutional traders.
Who may work as a cryptocurrency broker?
Apparently, not anyone. Brokerage requires high-powered specialists because it involves other people's money.
Here's the essentials:
excellent knowledge, skills, and years of trading experience
high-quality, quick, and secure infrastructure
highly developed team
outstanding trading capital
High-ROI network: long-standing, trustworthy connections with customers, exchanges, liquidity providers, payment gates, and similar entities
outstanding marketing and commercial development skills.
What about a license for a cryptocurrency broker? Is it necessary?
Complex question.
If you plan to play in white-glove jurisdictions, you may need a license. For example, in the US, as a “money transmitter” or as a CASSP (crypto asset secondary services provider) in Australia.
Even in these jurisdictions, there are no clear, holistic crypto brokerage and licensing policies.
Your lawyer will help you decide if your crypto brokerage needs a license.
Getting a license isn't quick. Two years of patience are needed.
How can you turn into a cryptocurrency broker?
Finally, we got there! 🎉
Three actionable ways exist:
To kickstart a regulated stand-alone crypto broker
To get a crypto broker franchise, and
To become a liquidity network broker.
Let's examine each.
1. Opening a regulated cryptocurrency broker
It's difficult. Especially If you're targeting first-world users.
You must comply with many regulatory, technical, financial, HR, and reporting obligations to keep your organization running. Some are mentioned above.
The licensing process depends on the products you want to offer (spots or derivatives) and the geographic areas you plan to service. There are no general rules for that.
In an overgeneralized way, here are the boxes you will have to check:
capital availability (usually a large amount of capital c is required)
You will have to move some of your team members to the nation providing the license in order to establish an office presence there.
the core team with the necessary professional training (especially applies to CEO, Head of Trading, Assistant to Head of Trading, etc.)
insurance
infrastructure that is trustworthy and secure
adopted proper AML/KYC/financial monitoring policies, etc.
Assuming you passed, what's next?
I bet it won’t be mind-blowing for you that the license is just a part of the deal. It won't attract clients or revenue.
To bring in high-dollar clientele, you must be a killer marketer and seller. It's not easy to convince people to give you money.
You'll need to be a great business developer to form successful, long-term agreements with exchanges (ideally for no fees), liquidity providers, banks, payment gates, etc. Persuade clients.
It's a tough job, isn't it?
I expect a Quora-type question here:
Can I start an unlicensed crypto broker?
Well, there is always a workaround with crypto!
You can register your broker in a free-trade zone like Seychelles to avoid US and other markets with strong watchdogs.
This is neither wise nor sustainable.
First, such experiments are illegal.
Second, you'll have trouble attracting clients and strategic partners.
A license equals trust. That’s it.
Even a pseudo-license from Mauritius matters.
Here are this method's benefits and downsides.
Cons first.
As you navigate this difficult and expensive legal process, you run the risk of missing out on business prospects. It's quite simple to become excellent compliance yet unable to work. Because your competitors are already courting potential customers while you are focusing all of your effort on paperwork.
Only God knows how long it will take you to pass the break-even point when everything with the license has been completed.
It is a money-burning business, especially in the beginning when the majority of your expenses will go toward marketing, sales, and maintaining license requirements. Make sure you have the fortitude and resources necessary to face such a difficult challenge.
Pros
It may eventually develop into a tool for making money. Because big guys who are professionals at trading require a white-glove regulated brokerage. You have every possibility if you work hard in the areas of sales, marketing, business development, and wealth. Simply put, everything must align.
Launching a regulated crypto broker is analogous to launching a crypto exchange. It's ROUGH. Sure you can take it?
2. Franchise for Crypto Broker (Crypto Sub-Brokerage)
A broker franchise is easier and faster than becoming a regulated crypto broker. Not a traditional brokerage.
A broker franchisee, often termed a sub-broker, joins with a broker (a franchisor) to bring them new clients. Sub-brokers market a broker's products and services to clients.
Sub-brokers are the middlemen between a broker and an investor.
Why is sub-brokering easier?
less demanding qualifications and legal complexity. All you need to do is keep a few certificates on hand (each time depends on the jurisdiction).
No significant investment is required
there is no demand that you be a trading member of an exchange, etc.
As a sub-broker, you can do identical duties without as many rights and certifications.
What about the crypto broker franchise?
Sub-brokers aren't common in crypto.
In most existing examples (PayBito, PCEX, etc.), franchises are offered by crypto exchanges, not brokers. Though we remember that crypto exchanges are, in fact, brokers, do we?
Similarly:
For a commission, a franchiser crypto broker receives new leads from a crypto sub-broker.
See above for why enrolling is easy.
Finding clients is difficult. Most crypto traders prefer to buy-sell on their own or through brokers over sub-broker franchises.
3. Broker of the Crypto Trading Network (or a Network Broker)
It's the greatest approach to execute crypto brokerage, based on effort/return.
Network broker isn't an established word. I wrote it for clarity.
Remember how we called crypto liquidity fragmentation the current crypto finance paradigm's main bottleneck?
Where there's a challenge, there's progress.
Several well-funded projects are aiming to fix crypto liquidity fragmentation. Instead of launching another crypto exchange with siloed trading, the greatest minds create trading networks that aggregate crypto liquidity from desynchronized sources and enable quick, safe, and affordable cross-blockchain transactions. Each project offers a distinct option for users.
Crypto liquidity implies:
One-account access to cryptocurrency liquidity pooled from network participants' exchanges and other liquidity sources
compiled price feeds
Cross-chain transactions that are quick and inexpensive, even for HFTs
link between participants of all kinds, and
interoperability among diverse blockchains
Fast, diversified, and cheap global crypto trading from one account.
How does a trading network help cryptocurrency brokers?
I’ll explain it, taking Yellow Network as an example.
Yellow provides decentralized Layer-3 peer-to-peer trading.
trade across chains globally with real-time settlement and
Between cryptocurrency exchanges, brokers, trading companies, and other sorts of network members, there is communication and the exchange of financial information.
Have you ever heard about ECN (electronic communication network)? If not, it's an automated system that automatically matches buy and sell orders. Yellow is a decentralized digital asset ECN.
Brokers can:
Start trading right now without having to meet stringent requirements; all you need to do is integrate with Yellow Protocol and successfully complete some KYC verification.
Access global aggregated crypto liquidity through a single point.
B2B (Broker to Broker) liquidity channels that provide peer liquidity from other brokers. Orders from the other broker will appear in the order book of a broker who is peering with another broker on the market. It will enable a broker to broaden his offer and raise the total amount of liquidity that is available to his clients.
Select a custodian or use non-custodial practices.
Comparing network crypto brokerage to other types:
A licensed stand-alone brokerage business is much more difficult and time-consuming to launch than network brokerage, and
Network brokerage, in contrast to crypto sub-brokerage, is scalable, independent, and offers limitless possibilities for revenue generation.
Yellow Network Whitepaper. has more details on how to start a brokerage business and what rewards you'll obtain.
Final thoughts
There are three ways to become a cryptocurrency broker, including the non-conventional liquidity network brokerage. The last option appears time/cost-effective.
Crypto brokerage isn't crowded yet. Act quickly to find your right place in this market.
Choose the way that works for you best and see you in crypto trading.
Discover Web3 & DeFi with Yellow Network!
Yellow, powered by Openware, is developing a cross-chain P2P liquidity aggregator to unite the crypto sector and provide global remittance services that aid people.
Join the Yellow Community and plunge into this decade's biggest product-oriented crypto project.
Observe Yellow Twitter
Enroll in Yellow Telegram
Visit Yellow Discord.
On Hacker Noon, look us up.
Yellow Network will expose development, technology, developer tools, crypto brokerage nodes software, and community liquidity mining.
Franz Schrepf
3 years ago
What I Wish I'd Known About Web3 Before Building
Cryptoland rollercoaster
I've lost money in crypto.
Unimportant.
The real issue: I didn’t understand how.
I'm surrounded with winners. To learn more, I created my own NFTs, currency, and DAO.
Web3 is a hilltop castle. Everything is valuable, decentralized, and on-chain.
The castle is Disneyland: beautiful in images, but chaotic with lengthy lines and kids spending too much money on dressed-up animals.
When the throng and businesses are gone, Disneyland still has enchantment.
The Real Story of Web3
NFTs
Scarcity. Scarce NFTs. That's their worth.
Skull. Rare-looking!
Nonsense.
Bored Ape Yacht Club vs. my NFTs?
Marketing.
BAYC is amazing, but not for the reasons people believe. Apecoin and Otherside's art, celebrity following, and innovation? Stunning.
No other endeavor captured the zeitgeist better. Yet how long did you think it took to actually mint the NFTs?
1 hour? Maybe a week for the website?
Minting NFTs is incredibly easy. Kid-friendly. Developers are rare. Think about that next time somebody posts “DevS dO SMt!?”
NFTs will remain popular. These projects are like our Van Goghs and Monets. Still, be wary. It still uses exclusivity and wash selling like the OG art market.
Not all NFTs are art-related.
Soulbound and anonymous NFTs could offer up new use cases. Property rights, privacy-focused ID, open-source project verification. Everything.
NFTs build online trust through ownership.
We just need to evolve from the apes first.
NFTs' superpower is marketing until then.
Crypto currency
What the hell is a token?
99% of people are clueless.
So I invested in both coins and tokens. Same same. Only that they are not.
Coins have their own blockchain and developer/validator community. It's hard.
Creating a token on top of a blockchain? Five minutes.
Most consumers don’t understand the difference, creating an arbitrage opportunity: pretend you’re a serious project without having developers on your payroll.
Few market sites help. Take a look. See any tokens?
There's a hint one click deeper.
Some tokens are legitimate. Some coins are bad investments.
Tokens are utilized for DAO governance and DApp payments. Still, know who's behind a token. They might be 12 years old.
Coins take time and money. The recent LUNA meltdown indicates that currency investing requires research.
DAOs
Decentralized Autonomous Organizations (DAOs) don't work as you assume.
Yes, members can vote.
A productive organization requires more.
I've observed two types of DAOs.
Total decentralization total dysfunction
Centralized just partially. Community-driven.
A core team executes the DAO's strategy and roadmap in successful DAOs. The community owns part of the organization, votes on decisions, and holds the team accountable.
DAOs are public companies.
Amazing.
A shareholder meeting's logistics are staggering. DAOs may hold anonymous, secure voting quickly. No need for intermediaries like banks to chase up every shareholder.
Successful DAOs aren't totally decentralized. Large-scale voting and collaboration have never been easier.
And that’s all that matters.
Scale, speed.
My Web3 learnings
Disneyland is enchanting. Web3 too.
In a few cycles, NFTs may be used to build trust, not clout. Not speculating with coins. DAOs run organizations, not themselves.
Finally, some final thoughts:
NFTs will be a very helpful tool for building trust online. NFTs are successful now because of excellent marketing.
Tokens are not the same as coins. Look into any project before making a purchase. Make sure it isn't run by three 9-year-olds piled on top of one another in a trench coat, at the very least.
Not entirely decentralized, DAOs. We shall see a future where community ownership becomes the rule rather than the exception once we acknowledge this fact.
Crypto Disneyland is a rollercoaster with loops that make you sick.
Always buckle up.
Have fun!
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Will Lockett
3 years ago
Tesla recently disclosed its greatest secret.
The VP has revealed a secret that should frighten the rest of the EV world.
Tesla led the EV revolution. Elon Musk's invention offers a viable alternative to gas-guzzlers. Tesla has lost ground in recent years. VW, BMW, Mercedes, and Ford offer EVs with similar ranges, charging speeds, performance, and cost. Tesla's next-generation 4680 battery pack, Roadster, Cybertruck, and Semi were all delayed. CATL offers superior batteries than the 4680. Martin Viecha, Tesla's Vice President, recently told Business Insider something that startled the EV world and will establish Tesla as the EV king.
Viecha mentioned that Tesla's production costs have dropped 57% since 2017. This isn't due to cheaper batteries or devices like Model 3. No, this is due to amazing factory efficiency gains.
Musk wasn't crazy to want a nearly 100% automated production line, and Tesla's strategy of sticking with one model and improving it has paid off. Others change models every several years. This implies they must spend on new R&D, set up factories, and modernize service and parts systems. All of this costs a ton of money and prevents them from refining production to cut expenses.
Meanwhile, Tesla updates its vehicles progressively. Everything from the backseats to the screen has been enhanced in a 2022 Model 3. Tesla can refine, standardize, and cheaply produce every part without changing the production line.
In 2017, Tesla's automobile production averaged $84,000. In 2022, it'll be $36,000.
Mr. Viecha also claimed that new factories in Shanghai and Berlin will be significantly cheaper to operate once fully operating.
Tesla's hand is visible. Tesla selling $36,000 cars for $60,000 This barely beats the competition. Model Y long-range costs just over $60,000. Tesla makes $24,000+ every sale, giving it a 40% profit margin, one of the best in the auto business.
VW I.D4 costs about the same but makes no profit. Tesla's rivals face similar challenges. Their EVs make little or no profit.
Tesla costs the same as other EVs, but they're in a different league.
But don't forget that the battery pack accounts for 40% of an EV's cost. Tesla may soon fully utilize its 4680 battery pack.
The 4680 battery pack has larger cells and a unique internal design. This means fewer cells are needed for a car, making it cheaper to assemble and produce (per kWh). Energy density and charge speeds increase slightly.
Tesla underestimated the difficulty of making this revolutionary new cell. Each time they try to scale up production, quality drops and rejected cells rise.
Tesla recently installed this battery pack in Model Ys and is scaling production. If they succeed, Tesla battery prices will plummet.
Tesla's Model Ys 2170 battery costs $11,000. The same size pack with 4680 cells costs $3,400 less. Once scaled, it could be $5,500 (50%) less. The 4680 battery pack could reduce Tesla production costs by 20%.
With these cost savings, Tesla could sell Model Ys for $40,000 while still making a profit. They could offer a $25,000 car.
Even with new battery technology, it seems like other manufacturers will struggle to make EVs profitable.
Teslas cost about the same as competitors, so don't be fooled. Behind the scenes, they're still years ahead, and the 4680 battery pack and new factories will only increase that lead. Musk faces a first. He could sell Teslas at current prices and make billions while other manufacturers struggle. Or, he could massively undercut everyone and crush the competition once and for all. Tesla and Elon win.
Tim Denning
3 years ago
Read These Books on Personal Finance to Boost Your Net Worth
And retire sooner.
Books can make you filthy rich.
If you apply what you learn. In 2011, I was broke and had broken dreams.
Someone suggested I read finance books. One Up On Wall Street was his first recommendation.
Finance books were my crack.
I've read every money book since then. Some are good, but most stink.
These books will make you rich.
The Almanack of Naval Ravikant by Eric Jorgenson
This isn't a cliche book.
This book was inspired by a How to Get Rich tweet thread.
It’s one of the best tweets I’ve ever read.
Naval thinks differently. He nukes ordinary ideas. I've never heard better money advice.
Eric Jorgenson wrote a book about this tweet thread with Navals permission. A must-read, easy-to-digest book.
Best quote
Seek wealth, not money or status. Wealth is having assets that earn while you sleep. Money is how we transfer time and wealth. Status is your place in the social hierarchy — Naval
Morgan Housel's The Psychology of Money
Many finance books advise investing like a dunce.
They almost all peddle the buy an index fund BS. Different book.
It's about money-making psychology. Because any fool can get rich and drunk on their ego. Few can consistently make money.
Each chapter is short. A single-page chapter breaks all book publishing rules.
Best quote
Spending money to show people how much money you have is the fastest way to have less money — Morgan Housel
J.L. Collins' The Simple Path to Wealth
Most of the best money books were written by bloggers.
JL Collins blogs. This easy-to-read book was written for his daughter.
This book popularized the phrase F You Money. With enough money in your bank account and investment portfolio, you can say F You more.
A bad boss is an example. You can leave instead of enduring his wrath.
You can then sit at home and look for another job while financially secure. JL says its mind-freedom is powerful.
Best phrasing
You own the things you own and they in turn own you — J.L. Collins
Tony Robbins' Unshakeable
I like Tony. This book makes me sweaty.
Tony interviews the world's top financiers. He interviews people who rarely do so.
This book taught me all-weather portfolio. It's a way to invest in different asset classes in good, bad, recession, or depression times.
Look at it:
Investing isn’t about buying one big winner — that’s gambling. It’s about investing in a diversified portfolio of assets.
Best phrasing
The best opportunities come in times of maximum pessimism — Tony Robbins
Ben Graham's The Intelligent Investor
This book helped me distinguish between a spectator and an investor.
Spectators are those who shout that crypto, NFTs, or XYZ platform will die.
Tourists. They want attention and to say "I told you so." They make short-term and long-term predictions like fortunetellers. LOL. Idiots.
Benjamin Graham teaches smart investing. You'll buy a long-term asset. To be confident in recessions, use dollar-cost averaging.
Best phrasing
Those who do not remember the past are condemned to repeat it. — Benjamin Graham
The Napoleon Hill book Think and Grow Rich
This classic book introduced positive thinking to modern self-help.
Lazy pessimists can't become rich. No way.
Napoleon said, "Thoughts create reality."
No surprise that he discusses obsession and focus in this book. They are the fastest ways to make more money to invest in time and wealth-protecting assets.
Best phrasing
The starting point of all achievement is DESIRE. Keep this constantly in mind. Weak desire brings weak results, just as a small fire makes a small amount of heat — Napoleon Hill
Ramit Sethi's book I Will Teach You To Be Rich
This book is mostly good. The part about credit cards is trash.
Avoid credit card temptations. I don't care about their airline points.
This book teaches you to master money basics (that many people mess up) then automate it so your monkey brain doesn't ruin your financial future.
The book includes great negotiation tactics to help you make more money in less time.
Best quote
The 85 Percent Solution: Getting started is more important than becoming an expert — Ramit Sethi
David Bach's The Automatic Millionaire
You've probably met a six- or seven-figure earner who's broke. All their money goes to useless things like cars.
Money isn't as essential as what you do with it. David teaches how to automate your earnings for more money.
Compounding works once investing is automated. So you get rich.
His strategy eliminates luck and (almost) guarantees millionaire status.
Best phrasing
Every time you earn one dollar, make sure to pay yourself first — David Bach
Thomas J. Stanley's The Millionaire Next Door
Thomas defies the definition of rich.
He spends much of the book highlighting millionaire traits he's studied.
Rich people are quiet, so you wouldn't know they're wealthy. They don't earn much money or drive a BMW.
Thomas will give you the math to get started.
Best phrasing
I am not impressed with what people own. But I’m impressed with what they achieve. I’m proud to be a physician. Always strive to be the best in your field…. Don’t chase money. If you are the best in your field, money will find you. — Thomas J. Stanley
by Bill Perkins "Die With Zero"
Let’s end with one last book.
Bill's book angered many people. He says we spend too much time saving for retirement and die rich. That bank money is lost time.
Your grandkids could use the money. When children inherit money, they become lazy, entitled a-holes.
Bill wants us to spend our money on life-enhancing experiences. Stop saving money like monopoly monkeys.
Best phrasing
You should be focusing on maximizing your life enjoyment rather than on maximizing your wealth. Those are two very different goals. Money is just a means to an end: Having money helps you to achieve the more important goal of enjoying your life. But trying to maximize money actually gets in the way of achieving the more important goal — Bill Perkins
Jim Siwek
3 years ago
In 2022, can a lone developer be able to successfully establish a SaaS product?
In the early 2000s, I began developing SaaS. I helped launch an internet fax service that delivered faxes to email inboxes. Back then, it saved consumers money and made the procedure easier.
Google AdWords was young then. Anyone might establish a new website, spend a few hundred dollars on keywords, and see dozens of new paying clients every day. That's how we launched our new SaaS, and these clients stayed for years. Our early ROI was sky-high.
Changing times
The situation changed dramatically after 15 years. Our paid advertising cost $200-$300 for every new customer. Paid advertising takes three to four years to repay.
Fortunately, we still had tens of thousands of loyal clients. Good organic rankings gave us new business. We needed less sponsored traffic to run a profitable SaaS firm.
Is it still possible?
Since selling our internet fax firm, I've dreamed about starting a SaaS company. One I could construct as a lone developer and progressively grow a dedicated customer base, as I did before in a small team.
It seemed impossible to me. Solo startups couldn't afford paid advertising. SEO was tough. Even the worst SaaS startup ideas attracted VC funding. How could I compete with startups that could hire great talent and didn't need to make money for years (or ever)?
The One and Only Way to Learn
After years of talking myself out of SaaS startup ideas, I decided to develop and launch one. I needed to know if a solitary developer may create a SaaS app in 2022.
Thus, I did. I invented webwriter.ai, an AI-powered writing tool for website content, from hero section headlines to blog posts, this year. I soft-launched an MVP in July.
Considering the Issue
Now that I've developed my own fully capable SaaS app for site builders and developers, I wonder if it's still possible. Can webwriter.ai be successful?
I know webwriter.ai's proposal is viable because Jasper.ai and Grammarly are also AI-powered writing tools. With competition comes validation.
To Win, Differentiate
To compete with well-funded established brands, distinguish to stand out to a portion of the market. So I can speak directly to a target user, unlike larger competition.
I created webwriter.ai to help web builders and designers produce web content rapidly. This may be enough differentiation for now.
Budget-Friendly Promotion
When paid search isn't an option, we get inventive. There are more tools than ever to promote a new website.
Organic Results
on social media (Twitter, Instagram, TikTok, LinkedIn)
Marketing with content that is compelling
Link Creation
Listings in directories
references made in blog articles and on other websites
Forum entries
The Beginning of the Journey
As I've labored to construct my software, I've pondered a new mantra. Not sure where that originated from, but I like it. I'll live by it and teach my kids:
“Do the work.”