You cryptocollapse

In recent days there has been talk of the crack of FTX which is one of the main exchange platforms, a sort of "cryptocurrency bank", where it is possible to buy and exchange currency. In fact, we can decide whether to keep the coins in our virtual wallet on the computer or have them managed by a "cryptobank".

In the first case if, for some reason, we lose the data we have lost all the coins, the second case is safer unless the bank itself fails… which has just happened… In the last issue I mentioned the change of the system of Ethereum reward that passes from the Proof of Strength, very expensive in terms of energy and therefore not very ecological, to the Proof of stake which greatly reduces electricity consumption.

The main difference consists in the fact that deciding who will validate the transition is not a very complicated calculation but a sort of lottery between all the participants in the validation which therefore rewards those who invest the most coins because they are most likely to be extracted. In practice, it always rains in the wet.

Stefano Ravizza
NP December 2022