Czech Presidency For The Council of the European Union
On 1 July 2022, the Czech Republic will take over the Presidency of the Council of the European Union. Its task will be coordinating Member States' actions and seeking acceptable compromises.
Each presidency formulates its own priorities, which it then submits to both the EU Council and the European Parliament. Priorities should reflect not only legislative developments at the European level but also current developments. In addition, the Czech Republic will cooperate with France, which chairs the council in the first half of 2022, and with Sweden, whose presidency will follow the Czech One.
Main topics set by 2021
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A MODERN AND INTERCONNECTED EUROPE
A GREEN AND SUSTAINABLE EUROPE
A SOCIAL AND JUST EUROPE
EUROPE STRONG AND SECURE
The Czech Republic will preside over the Council of the European Union from 1st July to 31st December 2022. The six-month Czech Presidency follows France, which led the Council in the first half of the year, followed by the Swedish Presidency from 1 January till 30 June 2023. Those three states together form the presidency trio and have created a joint program of their presidencies.
During its presidency, the Czech Republic will focus on five closely linked priority areas:
Managing the refugee crisis and Ukraine's post-war recovery
Energy security
Strengthening Europe's defense capabilities and cyberspace security
Strategic resilience of the European economy
Resilience of democratic institutions
Official postcard of the Czech EU presidency
Expenditures on the Czech presidency from 1st July to 31st December 2022
amount to 2.25 billion Czech crowns = 98 million dollars.
Prague Castle
The Czech Presidency team has prepared several cultural and accompanying events for the period of the Czech Presidency of the EU Council. The events will take place not only in Prague but also in other places in the Czech Republic. Many of the events will be held in the very heart of the European Union, in Brussels, and other European cities.
In addition to the official cultural and accompanying program, multiple other events have received the auspices of the Office of the Government of the Czech Republic and the Minister for European Affairs.
However, most presidency events will occur outside Czechia, in Brussels, Strasbourg, and Luxembourg. It will be mainly the so-called Council of Ministers. A number of conferences or informal meetings will take place in the Czech Republic.
The war in Ukraine is forcing the community to reconsider existing plans to reduce greenhouse gas emissions, known as the Green Deal. The Czechia will have to catch up with the key Fit for 55 packages to fulfill the Green Agreement's goals, but under new conditions, when liberation from Russian fossil fuels has become an important goal of the EU.
This primarily addresses the issue of coordinating the storage of raw materials, including sufficient stocks before the winter season and their purchase, and strengthening the infrastructure for the transportation of oil and gas from alternative suppliers. The issue of natural gas, in particular, is very sensitive, as many countries were going to use it during the transitional period.
On the one hand, there is talk of the need to speed up the transition to renewables, but on the other hand, the originally expected date of leaving coal is now being questioned in some countries. A big topic today is also energy savings and a shift away from Russian raw materials.
Moreover, the so-called taxonomy, i.e., the question of including different energy sources among green investments, remains unresolved. Members of the European parliament are trying to reverse the intention to label nuclear and gas in this way. At the same time, Czechia was one of the countries that lobbied to label these sources as green. Energy prices and household aid are also likely to remain a major issue across Europe.
Strategic Resilience of the European Economy
The coronavirus pandemic has already shown that Europe's high dependence on raw materials and key components from Asia can be a major problem at a time when supply chains are nearly collapsing or production in countries of origin is being disrupted.
The war in Ukraine added to the lesson that food self-sufficiency is paramount even in a globalized world. Agricultural resilience is also an essential issue regarding climate change and extreme weather, including drought.
As far as energy is concerned, the REPowerEU program and its rapid implementation will be crucial for the presidency. Prague sees the program as an appropriate instrument for the effective diversification of energy sources, as it addresses issues related to logistics, energy savings, and low-emission and renewable energy sources.
The EU cannot be vitally dependent on countries that directly threaten its security and must therefore break its dependence on Russian gas, oil, and coal. The Czech presidency will focus on EU energy security issues, which are currently more urgent than the energy transition.
The Czech presidency also expressed its readiness to work on the implementation of the gas storage regulations. Priority will be given to stocking up before winter and promoting voluntary joint purchases to increase the EU's bargaining power.
The Czech Republic will also focus on the pressing issue of the social impact of the energy crisis. It will work to put in place an appropriate mix of instruments to reduce the negative social and economic impacts of high energy prices and the energy transition.
Czech Prime Minister Petr Fiala
Czech Prime minister Petr Fiala – politician, politologist, university professor
Journalists from influential Brussels and European media are beginning to notice that the Czech prime minister does not exactly make public appearances in the EU, leaving them to guess what to expect from the Czech Republic even during the presidency.
The politician risks that his country's position will be misunderstood, which in turn can affect how the Czech Republic is written about elsewhere in Europe. It is the presidency that highlights all this.
Diplomacy, like EU politics, in which things are rarely said "in full," is a world cup of small hints and signals – and make no mistake – small or big endorsements. The question is whether Fiala is ready for this.
According to sources, the list of messages from the prime minister's proximity, Fiala's inconspicuousness abroad is supposed to be partly deliberate. Given the difficult economic situation at home, the prime minister and his advisers seem concerned that overemphasizing activities abroad might be more likely to enrage people. However, Czech prime minister Petr Fiala is also known on the European stage for trying to maintain his typical temperance and discipline.
The professor of political science, who was initially tasked mainly to carry out the falling Civic democratic party (ODS) by opposition flights, is waiting in a few days – when he stands alongside the union's "president" Charles Michel at the head of the union – to be transformed into one of the real leaders of the west.
But the presidency of the EU is also a bit of political theatre. The leader of the presidency hosts other political leaders at the summit, does not avoid large press conferences alongside EU leaders at summits where there can be a lot at stake and will be "chased" by journalists from all corners of Europe asking for an interview.
As a professor of political science, prime minister Petr Fiala is a champion of long and many-word phrases. A few days ago, he announced he would give a "speech to the nation" on Czech television.
Some citizens hoped they would finally learn about some crucial decision, how the government intends to help ordinary people in an awkward economic situation. But during the fifteen-minute speech, nothing like that sounded. Even non-alternative, official commentators are very critical of his "fundamental" speech.
It does not have much meaning to have high expectations from the Czech Presidency of the EU. So far, the Czech government does not vigorously and consistently defend its citizens' interests and acts as a part of mainstream Europe. More than half a year when the government has been in power is not such a short time.
In today's rapidly evolving times, however, this government has not yet solved any major problem that the inhabitants suffer from. We will see how it leads the EU.
CRYPTO BEAR MARKET – Why Experts Say It’s A Good Thing
Billions of dollars of value have been wiped off the cryptocurrency market in the last few weeks because of a sell-off in stocks, another rate hike and balance sheet shrinkage by the Fed, and the downfall of algorithmic stablecoin terraUSD. Cryptocurrency and Blockchain industry leaders believe that the recent crash in the crypto market would purge “bad actors.” The executives said the market purge was necessary and characterized it as “healthy.”
There are currently over 19,000 cryptocurrencies and at least 1000 blockchain platforms with four types of Blockchain Networks. Blockchain is the technology underlying these digital currencies and platforms. Still, the question is who will survive this massive bear market that has been happening for at least six months, and the experts are shying away from predicting its short-term future.
Many industry executives see the current market situation as unsustainable. Ripple CEO Brad Garlinghouse believes that the future may see “only a handful” of cryptocurrencies remaining, stating that there are around 180 national currencies worldwide. So many cryptocurrencies aren't really necessary.
Bertrand Perez, CEO of the Web3 Foundation, told CNBC,
“We’re in a bear market. And I think that’s good. It’s good because it’s going to clear the people who were there for the bad reasons.”
He went on to say,
“It’s good also because all those projects are gone. So the legit ones will be able to focus only on developing on building and forget about the valuation of the token because everyone is down. During the bull markets, when everything is green, no one thinks about building; everyone thinks about making a fortune, which is the wrong mindset.”
Other executives reiterated the same view that the massive price rally caused people to focus on speculation rather than building products. Michael Gronager, co-founder and CEO of the crypto data analysis firm, Chainalysis, says these down periods help distinguish between the signal and the noise.
Mr. Gronager explained,
“It’s during these bear markets where good new tech gets developed. We’ve seen people get excited about new technology, and suddenly everyone wants to access it, but it’s never as good as people hope for. And then there’s a certain level of disappointment, but it’s when a bear market comes along, and companies are under-funded that real innovation emerges.”
So despite the anguish of speculative investors when the price of cryptocurrency collapses across the board, some argue it is a necessary development to sort the genuinely innovative projects from the pump-and-dump schemes.
Why Do So Many Cryptos Fail?
Although the flagship cryptos, Bitcoin and Ethereum, have fallen substantially from their historical prices, other altcoins have fared even worse, with many that have entirely failed, including Luna, Dogecoin, Squid Game, PayCoin, and many more for various reasons. So many crypto coins have been released into the market and have died and disappeared over time. Why do they keep failing?
Numerous ventures are sure to face challenges in a market that is still emerging. Therefore, after releasing their coins and tokens, the creators often realize that their concepts are obsolete. Developers typically do not invest sufficient time or research when planning their foundational structure for their coins and tokens, only to find out after release that their concept is already on the market.
Many cryptocurrencies are copied versions of previously successful currencies, and many of them aspired to match Bitcoin's success. However, Bitcoin is already on the market and is still in demand, especially now with its emerging Lightning Network.
A Few Key Elements Why Cryptos Fail
Lack of a Defined Purpose: Most cryptocurrencies do not have a clear purpose or target market. They are like a machine gun firing in all directions, hoping to find a target and hit it. A well-defined purpose will help your cryptocurrency attract the right people and repel the wrong ones.
Lack of a use case: A cryptocurrency with no actual use case will eventually become obsolete. A cryptocurrency with a clear use case will help people understand why they should own it. Many cryptocurrencies today don’t seem to solve a real problem. They are just trying to find a niche to apply blockchain protocol and take advantage of emerging technology.
Weak Ecosystem: Some cryptocurrency projects are focused on creating a coin and trading it without building a community that aligns with its vision and mission. The importance of a robust ecosystem cannot be overstated. Without one, a project will have a hard time gaining traction, let alone succeeding. A tenuous ecosystem could cause other problems, such as low liquidity and volatility.
Inactive Development: In the crypto ecosystem, things change at a rapid pace. New technologies emerge, new competitors appear on the scene, and user needs and preferences change. If a crypto project is not flexible enough to keep up with these changes, it will not be able to survive in the long term.
Security Issues: Breaches to cryptocurrency projects can also lead to their failures. From hacking to creating fake nodes, bringing down a coin is easy when its security isn't robust.
Rug Pull: A rug pull is a malicious maneuver in the cryptocurrency industry where crypto developers abandon a project and run away with investors’ funds. Rug pulls got away with more than $2.8 billion worth of cryptocurrency from victims in 2021.
Tokenomics: The amount of tokens supplied has a significant impact on the price. If there is a lot of supply, that can depress the price, even more so when demand is low. It's all about the law of supply and demand.
Shiba Inu is one example with a coin supply of 1 quadrillion. Shiba Inu trades for a small fraction of a penny because its supply is so large. There was some speculation it may reach $1; however, there’s currently a supply of 549 trillion SHIB tokens in circulation, giving it a market cap of around $11 billion.
If those tokens were worth $1 each, SHIB's market cap would be $549 trillion, roughly 200 times bigger than Apple, the world's most valuable company, and more than six times the world's annual GDP.
In other words, Shiba Inu reaching $1 would likely require a massive reordering of the world economy, and that's not going to happen. But there is a way to decrease the total coin supply by burning the coin; however, it takes considerable time.
Shibburn, a website dedicated to the project burn of Shiba Inu, said that 410 trillion Shiba Inu coins have already been burned. They were taken out of circulation by Vitalik Buterin, co-founder of Ethereum after the anonymous Shiba Inu founder gave him half of the one quadrillion Shiba Inu coin supply. Buterin said he was uncomfortable controlling so much of the supply.
According to Shibburn, around 63 million Shiba Inu coins have been burned in the last 24 hours, which seems like a lot. However, if that rate continues, it would take just over two weeks to burn 1 billion coins and 40 years to burn 1 trillion. If there were an organized movement among SHIB holders, the burn could accelerate and pick up steam if the value of SHIB continues to drop.
However, there's a clear disincentive to burning the coins. If the value begins to increase, it's in the interest of holders to keep their coins rather than burn them. The decentralized nature of cryptocurrency makes it unlikely that an organized movement will be powerful enough to reduce the number of coins substantially.
And what about the use case? John Wu, president of Ava Labs said, Shiba Inu "wasn't built with a sophisticated use case like borrowing, lending, trading, or gaming. It’s really just the Shib Army rallying behind the coin.”
Why Bitcoin And Other Purposeful Cryptos Will Survive
More and more institutions are paying greater attention to the role of Bitcoin and Ethereum as hedging tools. There is increasing interest in several countries to adopt Bitcoin as their official currency. El Salvador was the first to adopt it in September of last year as their legal tender, the most recent being the Central African Republic.
More individuals, companies, and governments are beginning to accept and adopt Bitcoin, and more investors are noticing its value, so I think it’s safe to say that our digital store of value or digital gold will remain and gain prominence well into the future.
In addition, Bitcoin has faced various attacks and smear campaigns in the past decade in the past decade. Despite everything, Bitcoin has withstood the test of time with great tenacity, providing ample evidence of its ability to overcome challenges and problems.
As mentioned earlier, experts in the industry believe the timing is perfect for getting rid of the weeds. At the same time, emerging projects rise with all the fundamentals and utility to cater to users' needs. So, it’s an excellent time to take stock of more promising cryptocurrency ventures for the remainder of this year. As the crypto world changes rapidly, some of these projects' overall strengths or weaknesses will likely change, while others will be on point.
Although Bitcoin and Ethereum have the first-mover’s advantage, a few Blockchain projects such as Solana, Elrond, and Cardano have the underlying principles and infrastructure to survive the most challenging crypto winters. They all have a strong community and dedicated team of developers with a defined end goal and solutions to some of the most challenging hurdles facing the blockchain and crypto industry.
An Emerging Sector For the Blockchain Crypto Industry
Another sector overcome by centralization and severely lacking in blockchain technology is the social media and marketing niche, until now. Markethive is a blockchain-driven social media, inbound marketing, and broadcasting network rapidly building a dynamic ecosystem for the entrepreneur.
Markethive is a crypto project with extensive and varied use cases that significantly drive demand for its token. (HVC) It has developed the much-needed solutions for marketers, influencers, business owners, and the like. We have all been victims of the current state of the media and tech companies where monopolies have been created.
A decentralized and open media ecosystem, by definition, requires it necessary to have different options to broadcast and consume information free from censorship. Where content remains the creator's property, and the culture embraces self-sovereignty.
Markethive is an entirely different animal and one of the most promising and potentially disruptive projects in the entire social media and marketing industry. It is a project with a large number of real-world applications, and it has the potential to change the media landscape.
With its comprehensive wallet and member merchant accounts nearing completion, the timing couldn’t be better to distinguish itself and gain a foothold in the crypto market. This bear market will see weak projects and unscrupulous players fall, and the meaningful, intense, and focused projects will survive and thrive.
Some argue that the best bear strategy is to hoard cryptos, but a better approach is to earn more cryptos with one's existing holdings, which resembles receiving interest on bank deposits. This strategy is just one of the ways Markethive rewards its users who are part of the community.
The whole ecosystem revolves around earning and accumulating your crypto holdings by being active on the platform and conducting ecommerce via their business facilitation, thereby creating traction and velocity that is very likely to propel the coin.
As Markethive is a first-mover for the blockchain-related social media and marketing sector with its proprietary technology, it is poised to become mainstream in the next phase of cryptocurrency and blockchain technology in the aftermath of the massive cleanup of all useless altcoins. Many experts in the cryptocurrency space have said they expect thousands of cryptocurrencies to collapse.
Some exchanges have already folded or laid off employees, including Coinbase. Much of this is due to the crypto crash and the fact they hold many of these dead coins on its exchange. Perhaps it’s time for them to rethink their strategies when listing cryptos.
We are currently experiencing a collapse in traditional financial markets and many unprecedented events that are being hailed as “the storm”; spiritual, social, political, and economic – a storm affecting every aspect of our lives.
As the volatility of the global socioeconomic conditions continues on a downward trend, Markethive, guided by Divine inspiration, is here to pave the way as one of the new innovative technologies that will rise in the wake of this bear market.
There is a large contingent of people that believe that cryptocurrency can offer a more stable alternative. With more people investing and utilizing crypto, the market has more stable prices and less chance of being manipulated by outside forces.
When looking beyond the shortcomings and issues of nascent technology, there are many positive benefits with new technology constantly emerging and the philosophical approach of many entrepreneurs heading the upcoming sophisticated projects. It makes sense why crypto is becoming an increasingly popular alternative for investing in the face of instability in traditional markets.
CBDC: The Greatest Violations of Human Rights in the Central Banking History
The creation of blockchain technology solved a decades-long computer science problem and released a financial revolution in the form of cryptocurrency. Digital currency has taken the world by surprise. It has been adopted by hundreds of millions of people globally and is worth approximately $1 trillion in market capitalization based on daily fluctuations in US dollar prices.
As you can see, the legacy system has closely watched the rise of bitcoin with a combination of admiration and fear. Many traditional institutions, especially central banks, are impressed with the creation of genuinely digital currency, along with how quickly people have adopted this technology in every economy. These people are observing in fear as they admit that their institutions have no control over the money supply in this new digital financial system.
The control and production of money have historically been reserved for central banks, but this monopoly on money is directly tied to the central bank's close relationship with the government. The government has a monopoly on violence, so they can ensure that central banks will continue their precise control and production of money. Any attempt to circumvent the main banking structure has been met with a swift and ruthless response.
This is why the decentralization of cryptocurrency is so essential. Since central banks can not rely on governments to close down this new entrant to the financial system, central bankers have been forced to examine how they can contend in the free market.
Central bankers aren't known for being innovative. I would argue that central bankers are profitable because they move at a glacial pace and make systemic bets on the world-changing very slowly. But crypto has threatened these institutions to consider digitizing their fiat currencies in a way that emulates the blockchain technology but contains some key differences.
Digitizing the dollar, euro, peso, naira, etc. is merely a technology upgrade. The monetary policy of these fiat currencies is unchanged. Similar to how fiat currencies were transitioned to electronic CUSIPs in centralized databases, central banks are considering a technology upgrade to token-based fiat currencies that are compatible with digital wallets.
So why are they considering this transition?
The optimistic person would argue that incorporating new technology is an attempt at modernization for an antiquated system. Users of central bank digital currencies (CBDCs) could send any amount of money whenever they want. The idea of long hours of operations would be a thing of the past. The payment rails that CBDCs will be built on would be more efficient, faster, have reasonable transaction fees, etc. Lastly, there would be increased transparency in the system, which theoretically could decrease crime and improve the market's safety.
That is the positive perspective. But we have to be extremely careful here. Central bank digital currencies will likely be one of the most significant human rights violations in history.
Central bank digital currencies eliminate the privacy and decentralized nature of physical cash. It creates an environment where central banks control every aspect of a citizen's financial life.
Here are some instances of the awful events that we can expect to see in the coming decades:
Personalized inflation
Central banks can manipulate interest rates and expand/contract the money supply. Any modifications that they make are applied to all citizens equally. Market participants may likely make decisions to benefit or suffer from these outcomes. Nonetheless, the dollars I hold are subject to the same monetary policy as yours. This is going to change with CBDCs.
The central bank can personalize the financial approach to the individual. Just as your search results, newsfeed, and music playlists are personalized based on enormous amounts of data, the same is coming to money. Maybe I get a higher inflation rate to get me to spend money while you receive a lower inflation rate. Differentiation of Monetary Policy can be reduced in a million ways, including where you live, who you are, your wealth status, your occupation, your purchase history, and much more.
Financial censorship
Once a central bank's digital currency is in a population's hands, the central bank has solidified complete control. They will no longer need the court system or summon emergency authorities to tell you whom you can transact with. This can all be executed through remote, digital technologies.
These central bankers can see what is in your bank account, whom you transact with, what you purchase, and anything else they are curious about in your financial life. That full transparency with the state removes all elements of privacy while also allowing the institutions to censor any transactions that go against what they want, regardless of whether they have a legitimate reason or not.
Social credit system
When central banks and governments gain complete control over the financial system, they can reward or punish individual citizens for their actions. Have you been overeating candy? You can't buy candy anymore. Have you been gambling? Now you can't use public transportation heading in the casino's direction.
This sounds like crazy talk until you realize that the Bank of England is openly discussing this in public now. China already has one in place. Canada is executing one in real-time right now. Are you fat? Only healthy food can be purchased. Do you associate with people the central bank doesn't like? No entertainment for you. This is a deadly slippery slope that is coming quickly.
Expiration of money
Central banks would constantly try to incentivize people to spend more money in the economy to increase the momentum of money. Without the speed of cash, the system starts to break down. So what better way to increase the money rate than to have people's money expire if they don't spend it in a certain period. The United States already has a version of this in operation through SNAP benefits and EBT cards, where the money expires one year after it is issued unless it has been used. The intention is that the government will enhance this idea of expiration of funds to include shorter timelines and a more specific number of programs in the future.
These are just four examples of various activities that I anticipate central banks will engage in once they successfully create and distribute central bank digital currencies (CBDCs). As the saying goes, absolute power corrupts absolutely. The dream of every dictator or authoritarian leader globally is to have complete control over every aspect of their citizens' lives. Suppose the government can not only censor your financial transactions based on a social credit system, but it can also personalize the monetary policy and give you money with an expiration date. In that case, we are headed to a dystopian future that no one will want to live in.
The fundamental human right is that we are all born free people. The creation of central bank digital currencies will eliminate that premise. Every human born will be starting in an authoritarian state that requires them to be a digital slave to a central bank with total control over their life. If you don't have the freedom to transact, you don't have freedom at all.
Central bank digital currencies are the next frontier for the battle for freedom. Every human being should have the right to financial privacy and independence. This is a meaningful conversation that must start now. Without global awareness, central banks will pull off the most significant human rights violation, and citizens will cheer them on while they do it.
Marketing aims to identify and satisfy customer demands by providing products and services. The marketing process includes exploring, creating, and delivering value to meet a target market's needs, whether online or at trade shows and public events.
The decision to launch a marketing campaign is reasonable based on several factors, such as the availability of products, the need to correct erroneous information, or a desire to drive traffic to a particular website.
You can implement a marketing campaign to emphasize specific themes or attributes and select a target audience. These themes or features may inform customers about the value of that particular product or service or inspire them to purchase it. It is essential to know your target demographic, as it allows you to tailor your ads to meet their needs and desires.
Marketing arose as a result of the rapid development of civilization. As long as there was an excess of demand over supply, manufacturing companies could concentrate on production only. However, with the rapid growth of technology, the production process accelerated, and gradually the market began to satiate until supply began to exceed demand. At that moment, solving how and what to produce was already necessary.
With the modernization and simplification of production, the number of companies on the market also grew, and consumers got more choices. With increasing competition, companies began to address the question of what steps to take to make consumers choose their products. And hence there was space for the emergence of marketing.
Thus, marketing creates links between the market and businesses. It is based on human needs and desires. The human factor is applied and manifested both on the demand and supply sides. It is evident that psychology will also play a role in marketing.
Five Basic Psychological "Tricks."
1. Reciprocity (commitment)
– give a little something for free, and then it'll come back to you
as no one wants to be in debt
2. Liquidation Offer and Consistency
– we don't all like to make decisions
– we are afraid of the new and the unknown
– we'd better shop at a friend's
3. Price Anchor and Contrast
– When something's on sale, we go and shop
4. Paralysis of Decision-making
– make it easier for people to make a choice and make an offer that, at a glance,
is the best possible solution you can buy
5. Social Proof
– a lot of people have already bought it.
More About These Five Points:
What is the principle of reciprocity?
One person gives another a "gift," and the donee feels obligated. Thus, they feel a natural obligation to return the gift (to meet the following requirements of the donor).
What is a liquidation offer?
It is an offer so convenient and cheap that we do not have to think about buying for a long time. The price tag of such a liquidation offer is often meager, so we just do not have to consider for a long time whether it will pay off for us or not.
How does the principle of consistency work?
The principle "advises" us not to take risks and do what we already know and have tried. It protects us from the fear of the unknown. It is the principle people follow when they shop in the same supermarket for years, even if a few meters away is a new modern supermarket, which is cheaper and has a broader range.
What is a price anchor?
Discounts in marketing can workprecisely because of the price anchor. It is the price tag or value of the goods. For example, when a product costs 100 USD, the price anchor equals 100 USD. When the goods suddenly have an "action" price of 69 USD, it seems advantageous to us thanks to the price anchor.
What is the paralysis of decision-making?
It is caused by more similar offers where the customer hesitates on what to choose.
Eliminate selection where possible or pre-select the most crucial option – the most effective solution to decision paralysis.
How does contrast work in marketing?
It is similar to a price anchor. In short, we compare two variants (more expensive / cheaper). And naturally, we choose the more profitable one.
If it is not evident at first glance which offers are better, then follows a decision paralysis. In this case, customers often choose neither because they are looking for the best possible solution (convenience, savings, etc.) and cannot make a choice.
What is social proof?
It's confirmation from other people that our decision is the right one. These are references, sales figures, but also, for example, restaurants full of people.
Half of all our activities are based on habit.
In marketing, on the contrary, we need to break the potential customer out of his habit. But psychologists have observed that we are most accessible when we have a life change – we are moving, we have a baby, we are approaching 20., 30., 40., 50…. birthday.
Finally, Something About Colours
Colour psychology is the study of hues as a determinant of human behaviour.
Carl Jung was one of the pioneers of the interpretation of colours and their significance for the human psyche.
Jung said,"colours are the mother tongue of the subconscious." Colour influences perceptions that are not obvious, such as the taste of food. Colours have qualities that can cause certain emotions in people. They can carry a specific meaning.
What Is New In The Last Years
Biochemical marketing, as the new type of marketing is called, can increase efficiency by up to half and reduce costs by 70-80% in the format of low-cost multi-layered marketing. And in doing so, it is enough to know and use the biochemistry of four substances generated in a healthy human body: serotonin, dopamine, endorphin, and oxytocin.
Each of these substances has its own features and functions. Still, they are all responsible for positive changes in the human body, increasing the level of trust between people, reducing stress and anxiety, and creating a sense of well-being. And thanks to this, low-cost marketing can be done through public relations, social media, events, etc., with the help of biochemistry.
In no case should we forget, whatever methods we use, that our goal is a satisfied customer who returns. The applied psychology of the marketing world helps to find the necessary keys to understanding how the human mind works and is the basic knowledge of getting potential customers to buy your products eventually.
Although, at first glance, marketing may seem like a simple matter, if you delve into the issue more, you may start to feel a little lost. Markethive will provide you with comprehensive marketing tools. It is a platform for entrepreneurs with many innovative features. You will find all the tools for your business under one roof and have the opportunity to contribute to the spirit of friendly cooperation.
The Revolutionization of the Supply Chain Management by Vechain
VeChain (VET) is a project that aims to transform the way consumers and producers do business by making traceability of products, services, and transactions easy, efficient, transparent, and secure, all powered through blockchain technology using smart contracts and digital identity. In addition to its primary objective, VeChain has also been trying to create a more decentralized economy with its DaaS (Decentralized Application Service) platform and other solutions such as its enterprise-oriented IoT products.
The Vechain network was launched in 2015 as a private consortium chain. Afterward, it transited to a public blockchain in 2017, launching its main net in 2018. One of the substantial benefits brought by VeChain is its toolchain.
What is toolchain technology, and why did Vechain implement it?
Vechain's founder Sunny Lu, has been working on developing Vechain-PoA and its related technologies for quite a while. The technology was not very popular in the crypto industry due to its complicated implementation process and high cost of development in the traditional industry compared with other solutions based on blockchain technology such as Ethereum. However, the Vechain team has recently started implementing new technologies such as the VeChainThor and VeChainGO.
Toolchains are an essential part of any blockchain project to build, develop, test, debug, and deploy smart contracts safely, ensuring the validity of each transaction made on its network. Without the need for third-party validation or audits to ensure correctness in transactions and blockchains, making them more transparent and auditable and improving efficiency and security. So you can be sure that this is where VeChain comes into play as the best blockchain technology provider of all time with its unique features in supply chain management, which include:
Security
As they use the latest version of Hyperledger Fabric, this offers an immutable ledger that is distributed to every participant, which means that it is safe from hacking, attacks, and fraudulent activities.
It is based on a tamper-proof public ledger and records each transaction through cryptographic hash values (a chain of blocks). So you can ensure that your data will not get lost if someone tries to hack or manipulate the network.
Tracking
It allows tracking of products from origin to end-user without any intermediary services Smart Contracts. The code on top of the VET blockchain can automatically execute smart contracts, allowing you to set up agreements between parties.
Scalability
This feature can be used to store a large amount of data and process it in real-time for a faster transaction rate with smart contracts.
Reliability
IBM has tested them to ensure that everything works perfectly without any glitches or errors that may occur.
The Vechain technology is transparent and offers a traceable supply chain management system that allows every single detail of a product's movement to be tracked, recorded, and verified in real-time on a distributed ledger. It allows users to scan QR codes attached to products or use NFC (Near Field Communication) enabled devices to get instant access to product details, ingredients, expiry dates, certifications, and other data about the item. Enabling manufacturers to track their products from the production stage to retail allows consumers to see exactly where the product they bought came from and what it was made of.
Accessible Supply Chain Management Solutions
The VeChain toolchain is a network that allows the blockchain to get information from IoT devices. It delivers an expansive network with no code or low code blockchain solutions meeting the most demanding industry requirements.
The supply chain management process occasionally requires tools that are frequently assembled and complicated to use. The toolchain brings clarity, comfort, and affordability.
Essentially, the toolchain introduces a pay-as-you-earn pricing model that is quite affordable. The toolchain provides a complete set consisting of;
IoT chip and equipment
A management platform
A mobile app
H5 technology
Fight Against Counterfeiting Products
Vechain has become a significant player in anti-counterfeiting products by combining an innovative blockchain with modern technology to protect intellectual property rights and offer secure identification solutions to consumers worldwide for consumer goods, healthcare, financial services, Etc.
Today's counterfeits are getting increasingly sophisticated, making it harder and harder for brand owners to trace their origins back to the original manufacturer and source of their product. As a result, brand owners have been forced to take more drastic steps to combat this problem.
In 2017 alone, brand owners saw sales decline by $25 billion due to counterfeit goods being sold on websites such as Amazon and eBay, while others claim that there has been a "$200 billion a year loss of revenue to illegal manufacturers around the world" (Wakefield & Lacy, 2015). According to the World Intellectual Property Organization (WIPO), counterfeit products account for an estimated $1 trillion per year worldwide (WIPO, 2019) – which is not only bad news for businesses but also has a direct impact on consumers.
VeChain delivers a fence against the risk of counterfeiting. Because of the linking with IoT devices allows both parties to a trade, i.e., supplier and buyer, to recognize the products and location in real-time. If the delivery vehicles stop, the IoT devices will transmit the information through the toolchain to the DLT.
The constant tracking of products' data in the supply process guarantees that the persons delivering the products cannot provide counterfeited products.
Highly Convenient
The problem of supply chain management begins from the roots, which happens to be software support. Vechain toolchain makes it very easy for any project, individual, or company to create a blockchain with little to zero coding knowledge. Therefore, businesses can create apps that use the toolchain to offer their supply chain solutions.
Final Word
This article has explored how the Vechain toolchains revolutionize supply chain management, offering privileges to participants. As mentioned, the toolchain touches on different aspects of the supply chain, including security, tracking, and reliability, all while offering convenience.
By touching on various aspects of the supply chain, the toolchain guarantees that the quality and health of products in supply are protected at high standards. Top networks have already been linking with the toolchain to enjoy its benefits. They include DNV, BitOcean, National Research Consulting Center, and Groupe Renault.
BlackRock – Shadow Government?
Is It Too Big To Fail? Or Has It Now Got Too Big To Control?
There is a company out there that has more funds running through its systems than the entire GDP of the USA. A company that can and has used its clout to effect “societal change” whether we like it or not. A company with a direct connection with powerful politicians in the world has recently come front and center as it has started exploring investments in the crypto space and venturing into governance territory that will impact worldwide.
The BlackRock Behemoth
BlackRock is the world’s largest asset manager, and while many may have heard of it, you may be surprised just how much control it has over the financial markets. A control is afforded to it through leveraging our money, so there’s a strong chance that you and your money are connected with it somehow. It is a company that has its fingers in many pies, with over $10 trillion in assets under management.
They are also one of the most secretive companies in the world of finance. Trading and commodities are two areas of BlackRock’s business that have come under scrutiny from government regulators in recent years.
The Commodity Futures Trading Commission (CFTC) has claimed that the process of trading commodities futures is not transparent and is likely being abused by large investment firms like BlackRock. One of the most controversial aspects of BlackRock’s business is the way they have been operating their so-called dark pools.
Blackrock’s political connections are extensive. Over the past couple of years, there has been growing concern about how much control large corporations like Blackrock exert over American politics and economic policymaking.
Although they claim to be a non-political organization whose only interest is maximizing shareholder value, it is clear that many large corporations like Blackrock do wield significant influence over how our government works and what kinds of policies it enacts into law.
BlackRock is a New York City-based company founded in 1988 by Laurence [Larry] Fink and Ralph Schlosstein. Starting as a Bond Asset manager, it quickly grew into a financial services company that provides investment management, risk management, and fiduciary financial services to a wide variety of clients ranging from Central Banks to pension funds and individual investors.
In 1999, BlackRock became a publicly-traded company and continued its rapid expansion in the asset management sector. In 2006, the firm acquired Merrill Lynch's Asset Management business, which rapidly expanded its offerings in the equities sector. This was further compounded by the purchase of Barclay’s iShares in 2009. At $13.5 billion, this was one of the biggest deals in Asset Management history.
As a result, BlackRock quickly morphed from being a bond asset management company to an Index Fund provider. Index Funds, sometimes called Exchange Traded Funds, are collective investment vehicles that track the performance of a particular index or basket of Securities. They're hugely popular, not only because they're easy to invest in but also because they incur lower fees than more active investment management firms.
These benefits have also made index funds extremely attractive for more passive institutional investors, the most common being pension funds. Trillions of dollars are invested on our behalf and find their way into index funds of some sort. So there’s a strong possibility our money has been invested through BlackRock somehow. Either that or it's being invested by another index provider thanks to BlackRock’s technology.
The point is that BlackRock is a behemoth that invests on behalf of hundreds of millions of people, and what that means is it has an interest in nearly every company you can think of. Since BlackRock must invest funds to track indexes or other investing themes, it must invest in the underlying assets. If these funds track an equity index, BlackRock must take a stake in the underlying company, so BlackRock is often one of the largest shareholders of a company's outstanding shares.
These companies include some of the biggest Wall Street banks, like Goldman Sachs, JP Morgan, Bank of America, and Citibank. Essentially, BlackRock is one of the top three shareholders in the banks that keep the financial markets running.
BlackRock is also vested in the media with Comcast, Viacom, et al. Also, social media and tech companies with large stakes in Google, Apple, and Twitter. They even have stakes in the food industry with Mcdonald's, Chipotle, et al. Along with State Street and Vanguard, BlackRock forms a trio of the largest shareholders in the vast majority of publicly-traded companies in America.
For example, according to a recently published paper by Corpnet, these prominent three asset managers are the largest shareholders for over 90% of all companies in the S&P 500. In fact, in the broader collection of all outstanding publicly traded companies, 40% of them have these three as their most significant shareholders. And it’s not just America; it holds considerable positions in companies in Europe as well.
A Slice Of The Real Estate Pie And Now Crypto
BlackRock has its eyes on cryptocurrency with BlackRock CEO, Larry Fink saying the firm is studying the crypto sector broadly, including assets, stablecoins, permissioned blockchains, and “tokenization,” where it perceives a benefit to its customers. We are increasingly seeing interest from our clients, he said.
BlackRock is an investor in a $400 million fundraising round for Circle Internet Financial, the crypto-focused company that manages the stablecoin USD Coin. During a conference call in April 2022, Larry Fink said BlackRock has been working with Circle over the past year as a manager of some of Circle’s cash reserves. He said he expects BlackRock eventually to be the primary manager of those reserves. We look forward to expanding our relationship, he said.
You might also be surprised to learn that asset managers like BlackRock have been competing with you regarding residential real estate. Last year, large institutional investors bought up entire property units to diversify their holdings. Just imagine, large asset managers could potentially be using your pension money to outbid you on a home. Despite how crazy all this sounds, it’s just the tip of the iceberg.
ALADDIN – BlackRock’s Genie Of Growth And Control
BlackRock has not only made a name for itself through its index funds, but it's also developed an institutional investing platform that is the backbone of the asset management system. The “central nervous system” is relied upon by nearly every billion-dollar capital allocator. It’s called Aladdin, an acronym for Asset, Liability, And Debt, Derivative Investment Network.
Since Aladdin’s humble beginnings as a time-saving system that BlackRock could use to report on bond positions automatically, it has grown over the years to become the operating system for the company that inhabits multiple data centers and is maintained by a group of between 1,500 and 2,000 people.
Aladdin is so integral to BlackRock’s internal risk management systems that around 13,000 BlackRock employees use it worldwide. Aladdin also became so sophisticated that BlackRock saw an opportunity to start making money from competing asset managers, institutional investors, and corporates by making the platform available to them. It would also allow these investors to manage their portfolios and model the inherent risk.
The list of companies that use Aladdin is vast, with over 240 external clients currently relying on the platform. Companies like Google, Apple, and Microsoft use it for their corporate treasury management. The $1.5 trillion Japanese government pension fund is also a client, as well as State Street and Vanguard.
So, in reality, BlackRock’s biggest competitors are effectively paying to use BlackRock's systems and, in the process, giving BlackRock access to reams of data about their portfolios. This data further helps BlackRock refine Aladdin and better model risk. Needless to say, because all these portfolios are linked, it certainly gives BlackRock the edge with Aladdin as a critical component in the global management of assets.
In 2020, an estimated $21.6 trillion sat on the platform, which is higher than the entire GDP of the United States at that time. Another comparison is if you were to empty the bank account of every one of the 7.6 billion people in the world, every single bill and coin, and place them all in a pile, it would be worth around $5 trillion.
So, this means that Aladdin has grown into a system that is responsible, directly or indirectly, for over four times the value of all the money in the world. Aladdin doesn’t make investment decisions, but its risk models inform the investment decisions of all who use it.
There have been many who have questioned whether this system poses a systemic risk to the market. For example, given how many managers rely on its analytics and modeling, does this create complacency and reliance that could give a false sense of security? What happens if there are inaccurate or erroneous readings? It's only a computer model, after all.
A UK regulator, the Financial Conduct Authority, reported that the failure of an extensive portfolio and risk system like Aladdin could cause serious consumer harm or even damage market integrity.
Jon Little, former head of BNY Mellon's international asset management business, told the Financial Times,
“The industry is becoming reliant on a small number of players such as Aladdin, yet regulators seem to be reluctant to regulate or intervene to supervise these key service providers directly.”
This video sums up the level of involvement BlackRock has with their technology, Aladdin has and looks somewhat like a terrifying science-fiction scenario, but it is happening today.
BlackRock’s Helping Hand
Did you know that BlackRock was instrumental in the bailouts and deals in 2008’s GFC? It was a key adviser to other big banks and the government itself. So BlackRock is not only a massive asset manager that controls one of the world’s most powerful computers, but it also offers advisory services.
It’s called the Financial Markets Advisory or FMA. It was born from the financial crisis as these big banks, along with the US Treasury and Federal Reserve Bank of New York, turned to Larry Fink of BlackRock for help and counsel on their predicament.
Through an array of government contracts, BlackRock effectively became the leading manager of Washington’s bailout of Wall Street. The firm oversaw the $130 billion of toxic assets that the U.S. government took on as part of the Bear Stearns sale and the rescue of A.I.G.
It also monitored Fannie Mae's and Freddie Mac's balance sheets, which amount to some $5 trillion. It provided daily risk evaluations to the New York Fed on the $1.2 trillion worth of mortgage-backed securities it had purchased to jump-start the country’s housing market.
Eleven years after the financial crisis, we had another emergency, the pandemic, which brought on a level of spending that was many multiples larger. The FED embarked on an unprecedented bond-buying program and monetary stimulus. These were trillions upon trillions of dollars that are used to buy back not only treasury securities but, more risky, corporate bonds and mortgage-backed securities.
And, of course, they needed the advice of someone who knew about these types of securities. Thankfully, they had the industry experts such as Larry Fink on speed dial. It was later disclosed that BlackRock was central to the pandemic response. According to this New York Times article, Larry Fink was in constant contact with Jerome Powell and Stephen Minuchin in the days before and after the FED's stimulus program announcement.
According to a contract posted in March 2020, the FED hired BlackRock to help with the corporate bond purchase program. Although there was much more transparency about the terms of the deal compared to its work back in 2008, it meant that BlackRock was instrumental in that bond-buying program.
It again shows how reliant these officials have become on this behemoth of Wall Street. So it's clear that BlackRock has political influence or, at the very least, is aligned with some really powerful people. But perhaps more concerning about the firm is its power and intention to exert over corporate board rooms.
BlackRock’s Role And Goal Posts Have Shifted
As mentioned above, BlackRock and the top three asset managers generally are the largest shareholders in hundreds of Fortune 500 companies. What this means is that not only do they own the shares, but they also get board representation. These corporate boards are designed to help advise on company strategies, and board members can have much more say in a company’s strategic objectives.
Given that BlackRock invests on behalf of clients, it is considered a passive investor, meaning it's merely tasked with allocating capital and voting in the best interest of shareholders. Up until a few years ago, that's precisely what it did. However, in 2018, it all changed because, at this time, Larry Fink wrote a letter to the CEOs of some of America's largest public companies. This was the first salute in his pitch to better contribute to society,
“Society is demanding the companies, both public and private serve a social purpose. To prosper over time, every company must not only deliver financial performance but also show how it makes a positive contribution to society.”
This was a novel idea at the time but has since shaped the mood around investing based on ESG or Environmental Social and Governance principles. The primary modus operandi behind this investing methodology is that companies should not only be graded on their bottom line but also on how they impact society.
This letter was a big deal. You had one of the most powerful investors on Wall Street saying that it would be using ESG criteria to grade companies, everything from their climate change records to diversity on their boards. Some wondered whether BlackRock really would carry out these plans for a more activist role; any doubts on the matter were laid to rest with some controversial shareholder votes.
For example, last year, BlackRock disclosed that as Exxon Mobil's second-largest shareholder, it was backing board changes proposed by an activist hedge fund. The fund in question was Engine No 1, and it's been trying to get Exxon Mobil to move faster in reducing its carbon footprint. The activist investor only held about $50 million in stock but had proposed some board members who Exxon claimed didn't possess the requisite skills to serve on the board.
As mentioned in this WSJ report, BlackRock also backed similar initiatives by voting against a board director of an Australian oil and natural gas producer called Woodside Petroleum. The reason for the vote was that the company was not outlining targets for emission reductions to its customers. So the world’s largest asset manager is showing it is more willing to use its heft to influence the policies of the companies it invests in.
Rich Field, a partner at the law firm King & Spalding, who focuses on corporate governance issues, said,
“BlackRock has strongly signaled that quiet diplomacy is not the only tool in its toolbox. We expect more votes for shareholder proposals and against directors in this and future years.”
Since 2020, BlackRock has stepped up pressure on more companies by publishing criticism with online bulletins about key votes. Some executives worry they could face lawsuits for publicizing details on labor or climate plans in areas where global disclosure standards don’t yet exist.
There are so many boards that BlackRock sits on that it could be hard to apply proper due diligence to these ESG votes. Some have complained BlackRock’s recent votes have come without warning or an adequate rationale. Ali Saribas, a partner at shareholder advisory firm SquareWell Partners, said,
“BlackRock’s approach will fuel a rising frustration among companies that believe BlackRock’s stewardship team will most likely apply a tick-the-box approach given the sheer volume of companies they passively own.”
Jessica Strine, CEO at advisory firm Sustainable Governance Partners, says,
“It would be very hard for a passive fund manager to support a shareholder proposal that addresses systemic risks but wades too far into dictating strategy.”
Investors propelled ESG funds to new heights in 2020, and federal agencies are watching. WSJ explains why regulators have ethical and sustainable investment funds under review. Photo Illustration: Alex Kuzoian
Has BlackRock Gone Too Far?
Some may think this is good news for a better future. Still, one of the biggest problems with this approach is that it assumes that meeting these ESG criteria could be complementary to the shareholder returns objectives.
However, this is often not the case because meeting these criteria may come at the expense of potential company performance and long-term shareholder returns. For example, in the case of the Exxon proposal, unless these standards are applied to all competing companies in the field, you are hampering some to the advantage of others.
Many oil and gas companies are private or listed elsewhere, companies that don't have BlackRock as a shareholder and hence don't have to worry about meeting the same standards. They can compete as much as the law allows them to, and sometimes to the detriment of Exxon. This could lead to a fall in the value of Exxon shares and the company as a whole.
Now the same principles can, of course, be applied to the S and G angles of the ESG strategy too. Then, of course, you have the administrative burden and the unpredictable way this ESG mandate is managed.
The approach that BlackRock wants to take could hamper the efficient performance of a company's board and corporate strategy, which is unsuitable for that long-term shareholder value. Beyond the additional burdens that this could place on companies, you have the question of whether a company like BlackRock should have such a significant say in how society is shaped.
The Silenced Majority
Have all the stakeholders, the millions of us who have pension funds and invest in ETFs, been asked how we feel about these proposals? Are stakeholders polled on each one of these proposals? And how do we know there's no broader political agenda that could seep in should the winds of public opinion shift. Does this create a precedent for other large companies to follow suit? These are all relevant questions that need to be answered. It is, after all, good governance.
Many of us know BlackRock is a powerful company but to realize how far that power extends is an eye-opener, to say the least. As the world's largest asset manager, it manages an ocean of capital that gives it immense control over the financial system.
Given that it's the owner and operator of one of the largest and most crucial asset management platforms, many would argue that it's too big to fail, but more to the point, it's now too big to control. That's because BlackRock seems to be taking on a new mission beyond mere capital allocation.
The firm is looking to use its ESG mandate to shape the way that corporate America is run. It's also not as if politicians can really do much about it. Given BlackRock's connections with all of these higher-ups, it is more likely to call the shots than the other way around.
Of course, the mandate and goals of BlackRock may be benevolent and sincere, but you have to question how this power could be used in the future should it fall into the hands of someone who would use it for more than just ESG benchmarks? Money is power, after all, and given that BlackRock controls so much money, it has absolute power. And as the saying goes, absolute power corrupts, absolutely.
Cryptocurrency Has Changed the Dynamics of Savings and Investment: Will Banks Survive the Storm?
Cryptocurrency has changed the dynamics of savings and investment, but the effects of this change are not yet fully understood. This article discusses the impact of cryptocurrency on the global economy and the implications for banks.
Blockchain technology is revolutionizing the banking industry. As banks continue to evolve and adopt new strategies, they may need a strong understanding and implementation of blockchain technology if they want to remain relevant in the future.
A blockchain is a public ledger that stores data without a centralized intermediary such as a bank or government agency that could become corrupted by fraudulent transactions, data loss, or malicious behavior on its part. Instead, it relies on consensus protocols that ensure trust between all users on the network when recording financial transactions on the shared ledger across multiple participants (called nodes).
Blockchain technology provides a secure way to store information and track transactions because it is not stored in any one place but dispersed across multiple networks.
Background of the Digital Currency
Cryptocurrencies are a new form of digital currency that can be used to make purchases and transfer money anonymously. These currencies have no physical form and exist only in the digital world. The emergence of cryptocurrency has affected the banking industry: will banks survive the storm?
Cryptocurrency is decentralized, meaning any government or central authority does not control it. The transactions are verified through a process called mining, which involves solving complicated math problems with powerful computers to crack cryptographic codes. Blockchain technology enables cryptocurrency users to purchase goods and services online without having to worry about fraud or identity theft because all transactions are recorded on this shared public ledger for anyone to see.
The blockchain technology industry has been developing rapidly in recent years. Some projects are being used by well-known global organizations, including JPMorgan Chase and Accenture, to streamline the supply chain process. Others have been developed specifically for cryptocurrencies such as Bitcoin and Litecoin (although they can be applied to any form of digital currency).
However, despite the widespread interest in blockchain and how it could revolutionize business processes, there remains a lack of understanding among many businesses around its actual value and potential use cases, which limits their ability to benefit from using it.
Cryptocurrency has a significant impact on the global economy. It affects the exchange of goods and services and the transfer of funds from one country to another, weakening the foreign exchange rates. As of March 2022, there are approximately 18,000 cryptocurrencies in existence. The number of cryptocurrencies is growing daily and its market capitalization is estimated to grow to $5 trillion by 2025.
Blockchain technology has already penetrated many industries, including the financial sector, government, healthcare, media, retail, etc. However, many issues with cryptocurrencies still need to be resolved before they can be used in a mainstream society like traditional currency.
Its significant benefits of being fast, easy, cheap, and secure have been widely accepted and embraced by people worldwide for years despite some shortcomings such as volatility, lack of regulation, etc. The digital currency has been used in various ways so far, most notably for online gambling, but also as an alternative to fiat currencies in some countries where they offer a better exchange rate (and are sometimes even preferred).
The use case of cryptocurrencies is also evolving; while many people will continue to use them as a form of money or payment systems, many others might use them for trading, which includes buying goods and services; using cryptocurrency instead of fiat currency.
Cryptocurrency and the Banking Industry
Bitcoin, the first and most popular cryptocurrency, was created in 2009. It was created as a decentralized form of currency that is not controlled by any one country. It functions as a peer-to-peer payment system that does not require any middlemen, and a network of nodes verifies transactions.
Bitcoin and other cryptocurrencies have gained traction in recent years, but the regulatory environment for cryptocurrencies is still unclear. There are advantages to using cryptocurrencies, such as security, transparency, and no central control.
However, there are also disadvantages to using cryptocurrencies, such as price volatility, potential hacking, and lack of regulatory oversight. There are two sides to the cryptocurrency debate. One side argues that cryptocurrencies are the future of money and will replace cash, credit cards, and other payment methods. The other side argues that cryptocurrencies are a speculative bubble that will soon burst.
Some say that the implications of cryptocurrency on the global economy are not yet fully understood, but there are some apparent effects. For example, cryptocurrency has allowed individuals to transfer money internationally without banks or a third-party service. Cryptocurrency has also led to a decrease in demand for gold and other precious metals, as well as a reduction in cash usage.
The effects of cryptocurrency on banks are unclear. Some argue that banks will be irrelevant shortly, while others argue that banks will survive the storm. Cryptocurrency has caused a decrease in demand for banks' services and has led to an increase in financial risk. Banks may likely weather the storm by embracing cryptocurrencies and exploring new technologies like Blockchain. But will this ever happen? Who knows!
Roles of the Banking Sector in an Economy
In an economy, the banking sector plays a crucial role in facilitating the flow of money and providing loans to businesses and individuals. They have the power to regulate the money supply, which means they can determine how much money is in circulation.
This gives them control over inflation and deflation in the economy, so their actions must be responsible and transparent to avoid economic instability and financial crises such as the Great Recession from December 2007 to June 2009 and the recent financial crisis.
The central banks also determine whether the banks charge interest on loans and, if so, what the interest rate will be (known as the "prime rate" in the United States). Since banks can lend funds out of their reserves, there is a limit to the amount of capital they must hold; therefore, banks should borrow from other banks when necessary rather than from the public.
According to the conventional wisdom of financial economics, financial crises are inevitable in any economy that runs on fiat money because they occur when banks borrow more than they have and then fail to repay what they owe (Minsky, 1973).
The Federal Reserve System has attempted to prevent financial panics by keeping the supply of money constant and increasing it through open-market operations whenever the volume of outstanding debt increases by an amount greater than or equal to the Fed’s target for M1, which represents currency plus demand deposits at commercial banks. This method is commonly referred to as “monetizing the deficit.”
Why Are the Banks Cautious of Cryptocurrencies?
Undoubtedly, cryptocurrency has given rise to new, disruptive technology for money transfers and payment systems at large. Still, the central banking industry remains skeptical about its potential for displacing fiat currency as a medium of exchange or store of value, particularly when considering the risks associated with digital currencies like Bitcoin.
The cryptocurrency pioneer relies on decentralized networks and cryptography for security purposes instead of traditional regulation and oversight methods employed by central bank regulators worldwide and their regulatory bodies (the Financial Services Authority in the UK is an example).
Bitcoin has been around for over a decade and is the most well-known cryptocurrency. But as more and more digital currencies come into the marketplace, banks are starting to get cautious. They are concerned about potential losses resulting from transactions on these platforms. They don’t know what regulations governments will put in place to ensure these cryptocurrencies are not used for illicit purposes such as money laundering or terrorism financing.
One of the world’s largest bitcoin exchanges, Bitfinex, was hacked in August 2016 and had millions of dollars worth of bitcoins stolen from its customer's wallets and accounts. This has raised many valid questions about why the banks are concerned about the emergence of cryptocurrency.
Cryptocurrencies can also circumvent government-imposed capital controls, and it is now increasingly being used by international companies to avoid or evade taxes in various countries around the world.
This is due to the use of cryptography, allowing people worldwide to send funds to each other with complete anonymity and in a decentralized manner, using a peer-to-peer network of computers rather than a central server as traditional financial institutions do today.
However, because of its decentralized nature, bitcoin poses a risk of anonymous money laundering and terrorism financing, especially when combined with other forms of digital anonymity, such as “mixers” and other privacy-enhancing technology like Tor (The Onion Router) and VPNs (virtual private networks), which are used to mask IP addresses.
The latest trend in the financial sector is the rise of cryptocurrency. In 2009, a person or group under the pseudonym Satoshi Nakamoto published a paper describing digital currency. The paper introduced bitcoin, which became the first decentralized cryptocurrency in the world. Bitcoin and other cryptocurrencies have since become increasingly popular but also volatile.
For example, the price of Bitcoin rose from $2,500 in January 2017 to $19,000 in December 2017. Cryptocurrency is decentralized and relies on blockchain technology, and a central bank or government does not regulate Bitcoin and other cryptocurrencies. This makes cryptocurrency appealing to those weary of the unpredictable monetary policies of central banks and governments.
Many advantages come with cryptocurrency, such as its decentralized nature and independence from government interference, making it a great alternative to fiat currency systems (e.g the $USD).
However, it is essential to note that not all currencies have the same benefits as Bitcoin or other cryptocurrencies. It is also safe to say there is no guarantee that Bitcoin will be successful in the long run when compared to fiat currency, which has been around for thousands of years and has proven itself over time to be a stable medium of exchange for both individuals and businesses alike.
Nevertheless, if you look at the current state of cryptocurrency and the new development of blockchain technology today, many believe that it could be the future of money in this century. So they are trying to create more decentralized systems like Bitcoin or Ethereum, etc., but these systems are still in the early stages of development. We need more time before we can see what will happen with these currencies and applications.
So, for now, we need to find ways to secure our money from banks and other traditional financial institutions because as long as we have centralized systems that control how much currency and transactions are allowed, it is very easy for them to steal your funds or freeze your account whenever they deem it necessary.
In Summary
The Central Banks are at the heart of the modern global financial infrastructure in the current economic system, and as such, they have become a powerful force in society. In many cases dominating the economic life of nations to the extent that can be likened to that of feudal rulers controlling their kingdoms and duchies during times past.
Today we have what amounts to the equivalent of the Royal Family controlling central banks worldwide! In recent years, with the onset of a global economic collapse and with the Federal Reserve’s power over the American economy and the global economy increases, the Federal Reserve has become ever more influential over the entire planet.
Blockchain technology depends on algorithmic confidence, and its decentralized system offers an option to the current system. But the cryptocurrency has little adoption rates, and its legal reputation is still under the cloud. Cryptocurrencies are a new digital asset class with no central authority or bank behind them.
Instead, it relies on a distributed network of computers and users to maintain order and security in exchange for incentives and rewards, which is why they are often called “digital cash” as opposed to more traditional means of storing value like paper currency and gold. Many different cryptocurrencies are available today: Bitcoin Cash, Litecoin, Ethereum, Ripple, Dash, Zcash, Monero, Dogecoin, and so on.
There are possibilities at this point that Central Banks will start to introduce their own central bank digital currencies (CBDC). The problem is that nobody has yet been able to provide a solution for what happens when CBDCs across international borders fail. The associated costs and risks become more challenging to manage than they currently are today for national fiat currency systems.
The global financial system remains reliant on national monetary policymakers being willing to let the exchange rate of their respective countries weaken over time as part of ‘internal devaluation to encourage domestic consumption and investment spending via the money multiplier mechanism – something that can only be achieved if there are sufficient savings available.
The Food and Agriculture Organization (FAO) of the United Nations, headquarters located in Rome, was established in October 1945 by the United Nations assembly in the wake of World War 2. Its aim is to improve nutrition and living standards, agricultural productivity, and the conditions of farmers and make the best use of the world's food resources. It provides food and nutrition advice, technical assistance, and other support to people in need in both emergency and non-emergency situations.
During a meeting on 8th June 2022, FAO Director-General, Qu Dongyu, participated with dozens of ministers at the summit in Rome to tackle higher prices for food, fertilizer, and fuel. Acknowledging a “very complicated” global scenario, he urged countries in the Mediterranean to work together to mitigate food security risks that the war in Ukraine has further exacerbated.
The Mediterranean Sea region includes 22 countries on three continents, each with diverse natural resources, agricultural traditions, and production potential. The Ministerial Mediterranean Dialogue on Food Crisis, an event convened by Italy’s Minister of Foreign Affairs, Luigi Di Maio, drew ministers and government participants from more than 24 countries.
Minister Luigi di Maio opened the Dialogue, noting that seldom has hunger had such a high profile on the public agenda and emphasizing the importance of sustainable agrifood systems.
Qu noted that,
“We must keep our global food trade system open and ensure that agrifood exports are not restricted or taxed.”
More investment in countries that are severely affected by the current increase in food prices.
Reduction of food loss and waste.
Better and more efficient use of natural resources, especially water and fertilizer.
A focus on technological and social innovations that can significantly reduce market failures in agriculture.
“We are facing the worst food crisis in decades,” said Svenja Schulze, Germany’s Minister for Economic Cooperation and Development, who co-chaired the event.
Participants agreed that high prices for fertilizers and fuels, both critical agricultural inputs, are urgent matters for global food security.
European countries are now looking at options for compensation for individual industries, which have enormously high costs due to energy prices.
Before the war in Ukraine began, the European Union was an exporter of grain, like Ukraine and Russia. Export from Ukraine went mainly to the Middle East and North Africa. But that is likely to change now.
The Arab states now have grain stocks purchased, so prices would not have to go up again in the autumn. So far, the harvest looks good in the rest of Europe, but also in countries such as Australia and Canada.
Rising food prices could stabilize after this year's grain harvest, estimates the Food Chamber of the Czech Republic. According to her, current agricultural prices are speculative, with a good harvest, growth could calm down.
Following this, the prices of feed, flour and meat would no longer have to rise – however, food will not return to last year's values."An absolutely crucial signal will be how this year's harvest ends, because prices now do not fully reflect reality," said Miroslav Koberna, director of the Chamber of Programming and Strategy of Czech Republic.
How Do Food Process Compare Across Europe?
Food prices are skyrocketing across Europe. In some countries, however, it does not burden people's wallets as much as in the Czech Republic. Experts say that this is due to higher incomes and different levels of food taxation.
In the Czech Republic, most foodstuffs are subject to 15% VAT. But some states are more lenient. For example, in Poland, several foods are not subject to VAT. They have a similar situation in Hungary.
For example, according to the so-calledBig Mac index, the famous hamburger Big Mac earns the fastest in Luxembourg or Switzerland; it takes them about ten minutes. The longest then on one Big Mac they work in Ukraine, almost an hour. It'll take the Czechs about half an hour.
Czech households spend 17.1% of their income on food, which is close to the European average. A quarter of the senior pension falls on basic foodstuffs in the Czech Republic. Comparing Czech food prices – in Italy are 22% more expensive. Lower prices of foods are in Bulgaria and Poland, about 20-25% more than in Czechia are the food prices in Greece, Austria, Italy or France.
In Czechia, the prices of foods in comparison to last year grow extremely. In May 2022 flour prices accelerated to 64.6% year on year, for butter to about 52 %, for semi-skimmed long-life milk to about 42% and for eggs to about 34%.
“Yellow prices” are reduced – very often quickly sold out
People in Ireland or Scandinavia spend the least on food. On the contrary, they pay the most for them in Romania and the Baltic states. In Germany the average income is about three times more than the Czechia, so of course Germans can afford to buy more food, says one Czech economist.
European countries are currently dealing with compensation options for individual sectors, which have enormously high costs due to energy prices.
Germany will pay about 32 million euro, Poland 800 000 euro and France will according to experts be the clear winner in the food industry due to its highest investments in rescuing processors.
Food Inflation In Europe – The Numbers Say it All
This table shows the percentages of inflation in European countries – highest inflation in food prices has Moldova with 30.2%, second place is Lithuania with 24.8% and so on. Absolutely in the best situation is Switzerland with only 1.1% food inflation.
Linden trees have a long history of being cultivated for their therapeutic properties. In fact, the linden tree has been recognized as a symbol of health and peace for thousands of years. Throughout the ages, linden tree symbolism has been associated with a wide range of positive traits and qualities. In many cultures, the linden tree has been viewed as a potent charm against evil.
Tilia cordata, the small-leaved lime or small-leaved linden, is a species of tree in the family Malvaceae, native to much of Europe. Other common names include little-leaf or littleleaf linden, or traditionally in South East England, pry or pry tree. Its range extends from Britain through mainland Europe to the Caucasus and western Asia. In the south of its range, it is restricted to high elevations.
In the countries of Central, Southern and Western Europe, linden flowers are a traditional herbal remedy made into an herbal tea called lime tea or linden tea in Britain, tilleul in France.
Tilia cordata is the national tree of the Czech Republic and the Slovak Republic, and one of two national trees in Latvia. The leaf of Tilia cordata is also considered a national symbol of Slovenia.
As a drug, the flower is also taken with the leaf (Flos tiliae). It is collected even before full flowering, since there should not be fruits in it. The torn flowers are dried and used for the preparation of lime tea or combined medicinal mixtures.
When collecting it is necessary to beware of confusion with linden silver or linden American, whose flowers do not have the desired effects. It is not a problem to confuse it with the greater linden or its hybrid with the lesser linden.
Linden trees grow from 20 to 40 meters in height and live at least 200 years.
Healing properties
It promotes sweating, has diuretic effect, treats colds, bronchitis, cough, congestion, and works as an effective antipyretic. It has a beneficial effect in diseases of the digestive and urinary systems, mild insomnia, neurosis and hysteria, and strengthens blood clotting.
Contraindication
Lime blossom is not associated with any contraindications, it is often recommended as a drinking tea, so it can be drunk continuously. Linden is just that herb , the effect of which is enhanced by long-term drinking. Tea from Linden is not given only in case of an allergy to linden blossom.
case of an allergy to linden blossom.
Linden Ointment
2 handfuls of lime blossom
200 g of coconut oil
30 g of beeswax
Preparation
Add the lime blossom to the coconut oil, macerate, and heat occasionally. Let it stand for five days, then warm the mixture a final time. Strain the oil, and add pieces of beeswax into the warm oil and let them dissolve. Fill the prepared jars with the oil immediately.
Linden Decoction
Decoction of Linden is suitable for both adults and children and has proven to be very effective with viruses. Linden leaves are also recommended for people with sedentary work, who suffer, for example, swollen ankles or fingers on their hands.
Decoction is also an assistant for people tired of work or raising children. Last but not least, the decoction of the leaves will be liked by overworked and mentally exhausted people who sleep poorly.
Combination With Other Herbs
You can combine Linden leaves with other herbs to enhance their effects. They get along well with chamomile, lemon balm and black elderberry. Linden with chamomile or lemon balm can calm the mind, and Linden with black elderberry facilitates expectoration.
Spread of Linden in Europe and Asia
Tree Suitable Not Only For Healing
The healing properties of Linden are not the only use of this beautiful tree. It is commonly seen in parks and gardens to create shade. Linden is a widely used tree in many industries. It is purposefully planted for quality wood, which is popular among carvers and carpenters.
The Linden tree is used, among other things, in the manufacture of musical instruments, furniture, as a raw material for the production of charcoal and animal charcoal (Carbo medicinalis). Lime bark is widely used in footwear, basketry and rope making.
Linden is richly mentioned in history as an ornamental tree with a significant symbolic meaning. In the US, the Linden during the 17th and 18th century, became an important part of building planning.
A similar example can be found in Berlin (boulevard Unter den Linden). In the dark European Middle Ages, Linden was used to make weapons (see Beowulf). Linden is the National Tree of the Czech Republic, but also of Slovakia. Slovenians consider the leaf of the Linden heart as one of their national symbols.
In the old Slavic culture, Linden was a sacred tree and was identified with the goddess of love and beauty named Lada.
A Symbol Of Protection
Have you ever wondered why Linden is the Czech national tree? Linden has become a symbol of protection, help and love for its fragrance, charming crown and kind shade. People believed that he could drive away evil spirits and with his energy, rid a person of gloomy thoughts.
Everything culminated at the All-Slavic Congress in Prague in 1848, where Linden became the tree of the Slavs and officially since then, the Czechs have also considered it their national tree.
Lindens have also been associated with justice and the life force of our country since ancient times. Lindens transmit this power in a calm and healing way. In many tribal areas of our ancestors, not only the Slavs and Germans, Linden was a center for meeting and resolving disputes leading to just punishment.
Whenever it came to finding the truth in legal disputes, people gathered under the linden tree. They say that under it the pure truth will come to light, that its fragrance will tune the judge mercifully, and the quarreled parties will reconcile.
Linden in Glucholazy
Tree Of Peace
Glucholazy is a Polish town near to border of Czech Republic. This tree was probably planted after 1648 to commemorate the end of the thirty years ' war, which devastated parts of central Europe, including Silesia, as a Tree of Peace ("fridenslinde" – "Linden of peace").
Studies conducted several years ago allow, with a high probability, to assume that the deaf-mute monument of nature is indeed a "Linden of peace". Linden was mentioned already in antique times in works, for example, by Vergilius, Ovidius and Plinius, calling it the "golden tree".
“There are trees that you will remember for the rest of your life as some human faces;
there are trees that are almost holy.”
Karel Äapek (Czech writer)
Just in this period of year linden trees are smelling of reconciliation and peace.
What Is Solana? And More Importantly, How Does It Work?
Have you heard of the term Solana, and wondered what it might be? Discover the Solana Blockchain and how its unique technology works in more detail.
Cryptocurrencies marked the beginning of an entirely new era for finance and technology. The crypto sector has taken away intermediaries from the structure of conventional financial services by introducing peer-to-peer transactions. However, established cryptocurrencies such as Bitcoin and Ethereum have significant limitations in terms of scalability. Why? It is challenging to scale up the time required to reach a consensus on a specific order of transactions.
Due to scalability problems, alternatives like Solana have emerged as promising solutions for such issues. Now, you might marvel at how the new cryptocurrency company could solve problems that the crypto pioneers could not. Let us dive deeply into the Solana blockchain and learn more about their system. This article will also help you discover the new and unique features introduced with the Solana Blockchain.
Solana is a new blockchain platform with a unique consensus mechanism called Proof of History (PoH). Proof of History allows Solana to achieve a sustained transaction rate of up to 65,000 transactions per second, much faster than Bitcoin and Ethereum. Solana’s programming language is similar to JavaScript and allows developers to build smart contracts with ease.
The platform comprises three layers: the Protocol Layer, the Transaction Layer, and the Application Layer. The Protocol Layer is the Solana Blockchain's core, providing a framework for the rest of the platform. The Transaction Layer is the foundation for executing transactions and is made up of blocks. The Application Layer is where developers can create applications that use the protocol.
Solana’s blockchain is built to solve many of the problems other blockchains face. For example, Solana doesn’t have any hard-coded limits for gas prices or gas limits, which can lead to users running out of gas and failing to complete their transactions. This has happened to users on Ethereum in the past, which has caused many issues for them. Solana’s Proof of History consensus mechanism also makes it possible for users to complete transactions quickly and reliably.
Who Are The Developers Of Solana?
Solana is the brainchild of a group of developers and entrepreneurs who saw an opportunity to create a more efficient and secure form of blockchain technology. CEO Anatoly Yakovenko leads the team, and CTO Greg Fitzgerald, have both had extensive experience in the blockchain industry.
The team strongly believes in the potential of blockchain technology and is committed to using it to create a more equitable and secure world. They are also passionate about creating a product that can be used for trading digital assets and as a daily tool for consumers and merchants alike.
This is a platform with genuine utility and value-added features such as a decentralized marketplace, exchange, and payment system. Users will benefit from increased security, transparency, and efficiency when purchasing online or at brick-and-mortar stores and shops worldwide.
A truly global and unified currency system, enabling anyone anywhere to trade directly and instantly with other people within their community or across borders without any middlemen.
Solana's Key Innovation: Proof-of-Elapsed-Time
Proof-of-elapsed-time is the key innovation of Solana, which allows nodes to verify data without having to trust one another or confirm transactions through expensive intermediaries like banks. Instead, Solana's peer-to-peer network eliminates these middlemen and ensures that data that several parties in real-time have approved is valid.
The proof-of-elapsed-time is implemented using an optional consensus mechanism called "Tick Time Consensus" or TICK which relies on a timestamping system to establish the elapsed time since the last successful transaction (TICK_TIME).
It was initially developed to improve privacy for the Bitcoin blockchain. However, it has since been adapted for use with any decentralized application platform such as Ethereum, Hyperledger Fabric, or even DFINITY.
So far, the network has been deployed in dozens of decentralized applications and has become the industry standard for distributed computing applications.
How Does Solana Deliver Scalability?
Solana delivers scalability using a unique combination of proof of stake and Byzantine Fault Tolerance. Proof of stake is a consensus algorithm that helps secure the blockchain by allowing stakeholders to vote on proposed blocks. This system is more efficient and environmentally friendly than proof of work and allows for faster transaction speeds.
Byzantine Fault Tolerance is a system that allows nodes in a network to agree on the validity of transactions without any single node being able to manipulate the system or change data on the blockchain because of malicious behavior or malfunctioning components. This ensures trustless networks and high availability with no downtime, censorship, or fraud as long as there are honest majority participants in the network.
When it comes to scaling, proof of stake can be used as an effective method of achieving fast confirmation times for smart contracts while avoiding the use of expensive hardware and energy consumption to validate blockchains.
For Solana to achieve all its goals, the developers have developed the essential technical components to make the blockchain suitable for the capabilities of a centralized system. As a result, the network is full of several kinds of systems, and these systems work together to create a useful and reliable blockchain network. Here are the core components of Solana Blockchain:
Proof of History
Tower BFT
Gulf Stream
Sealevel
Pipelining
Turbine
Cloud break
Archivers
Proof of History (PoH)
The important and key feature is that the PoH mechanism serves a vital role in the Solana blockchain. It creates more efficiency and a greater throughput rate within the network. This protocol improves the efficiency of blockchain by integrating timestamps in every transaction approval. So, historical records of transactions, blocks, etc., are stored on a distributed ledger which can be used for the security and verifiability of any smart contract or transaction that has been approved with the PoH function and time-stamp verification feature in the blockchain.
Tower BFT
The Tower BFT is the second and most crucial component of Solana Blockchain, and the system strengthens network responsiveness by empowering validators to vote on the state of the ledger. This mechanism also records the previous votes and the time stamp of each transaction, ensuring that the data cannot be altered later on (data integrity).
Gulf Stream
The gulf stream feature works with the mempool concept. You might be thinking about what mempool is. Mempool is a part of the blockchain that stores all transactions from previous blocks and is used to add new transactions to the blockchain.
This is much like how banks use their vaults to store your money as it comes in and goes out of your bank account without losing it permanently, just temporarily stored in the vault. The same thing happens here; when money goes into a new transaction, it gets recorded on the blockchain forever to show where it came from and where it went.
Sealevel
The Sealevel feature provides a significant benefit over the most well-known smart contract-based networks out there today. This is used to perform smart contracts that can operate in parallel, and this system likewise allows compatible smart contracts to leverage the same protocols.
As such, it permits easy interoperability with other blockchains, especially those that don’t have their custom-built systems or protocol layer for smart contracts, allowing the user to connect with them instead of learning entirely new technology and infrastructure. This helps users to start working on a project together and interact with each other more easily and efficiently than ever before.
Pipelining
The Solana Blockchain is an open-source hardware system that integrates a transaction processing unit called pipelining. The protocol works by processing the transactions in batches instead of one by one using the pipelined operation mode. It minimizes latency and increases throughput on a single machine/hardware platform running Solana Blockchain software or node application code, increasing overall network bandwidth and stability of the network and its applications (blockchain).
Turbines
The turbine is another blockchain feature introduced by Solana. The Solana blockchain distributed system takes massive data and segments it into smaller chunks, and this data can be sent to the computer faster and use less bandwidth.
Cloudbreak
The cloudbreak is another Solana network’s account database, and this system enhances iterations by enabling the system to read and write data simultaneously. Cloudbreak works in line with pipelining and other protocols.
Archivers
Archivers represent a group of nodes that are interconnected in a system outside the main Solana network and work as storage for Solana.
This means that if a node joins a network, it will not be able to join the Archiver network until it has been synced from one of the Archiver nodes or has its Archiver node created by another node in the main Solana network.
The reason is that nodes in the archiver network do not store any data; rather they only provide a connection between other nodes in the main network with each other to facilitate transactions without the need to transmit all the data over the network and increase transaction speeds.
What Is The Future Of Solana?
Solana is undoubtedly a new type of blockchain that can handle large amounts of transactions without ever clogging up the system. What does that mean for the future of Solana? It means that Solana has the potential to handle the load that traditional blockchains are not able to.
Think about it this way: right now, Bitcoin can only manage seven transactions per second, and Ethereum can only manage fifteen. Solana has the potential to manage up to sixty-five thousand transactions per second.
That's huge compared to the many transactions like Bitcoin and Ethereum execute altogether in a second. This makes Solana one of the most promising next-gen blockchain projects, with tremendous upside potential for those who invest in Solana early enough.
Conclusion
The Solana blockchain protocol is designed for scalability. It achieves scalability by implementing a proof of stake algorithm and by utilizing a revolutionary decentralized data storage technology known as Inter-Blockchain Communication (IBC). IBC allows the nodes to communicate directly with each other without going through the network’s primary layer or any intermediary node on the blockchain network.
The complete process happens via the IBC channel between two blockchains in real-time, allowing transactions to be processed almost instantly instead of waiting for blocks to be mined and confirmed on the network’s main chain first before moving forward with the transaction or block execution.
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