Circle has launched the Circle Payments Network (CPN), a global payment solution designed to streamline cross-border transactions using stablecoins like USDC and EURC for real-time settlement. 

The S&P 500 rose 2.51% as investor confidence improved following President Trump’s support for Fed Chair Powell and hints of easing U.S.-China trade tensions, despite tempered optimism and Tesla’s earnings miss. Gold rebounds toward $3,400 as the US Dollar weakens and investor caution lingers over US-China trade and Fed concerns. Technicals suggest a possible pullback, with focus shifting to upcoming S&P Global PMI data. The Coindesk Indices, which tracks the broader crypto market, rose 7.46%, with Bitcoin and Ether up 4.68% and 7.70%, respectively, in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is DEEP, up 122.1%, following the launch of DeepBook v3.1 on Sui, which unlocks permissionless pools, enhanced balance management, and cost-efficiency for DeFi.

DeepBook (DEEP), launched on July 12, 2023,  is Sui’s native liquidity layer, using a central limit order book to enable high-throughput, low-slippage, and low-fee trading. 

, introduces several key upgrades: permissionless pools, revamped fee mechanics, and enhanced balance management. These changes make DeepBook more accessible, composable, and cost-efficient for DeFi users. Permissionless pools allow anyone to create custom trading pairs, while the enhanced balance manager supports third-party liquidations and improves protocol stability and user experience.

Check out the latest prices, charts, and data of 

, a global payment solution designed to streamline cross-border transactions using stablecoins like USDC and EURC for real-time settlement. CPN offers faster, programmable, secure, and always-available money movement for financial institutions. It supports services like invoice payments, remittances, treasury services, and payroll payouts. Over 20 design partners, including dLocal, WorldRemit, and BVNK, are contributing to building a more efficient global payments infrastructure.

Yesterday, Bitcoin spot ETFs saw $719.2M in total inflows, with $654.1M from non-GBTC funds and $65.1M from GBTC.

 its incentivized testnet, allowing users to earn $SO tokens by testing its cross-chain lending platform. By supplying and borrowing assets across chains and completing quests, participants earn "Seeds," which will convert to $SO at TGE. Powered by LayerZero, Soul aims to unify liquidity across blockchains.

Beginner

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Circle launches Circle Payments Network for faster, secure global transactions using stablecoins

VeChain (VET) is a blockchain platform focused on sustainability, using eco-friendly technology to support green initiatives across industries and drive a more sustainable future.

Sustainability is now the name of the game across many industries. The blockchain industry is one of them, with several projects aiming to reduce the energy impact of their operations or support green causes in other ways. However, on closer inspection, sustainability has received much less attention in the world of blockchain technology than many people may assume. Indeed, the industry's two leading data portals, CoinGecko and CoinMarketCap, have no "Sustainability" or similar category, despite coming up with hundreds of other classifications.

Some smaller-cap projects outside of the top 100, such as 

 (IOTA), do focus on supporting environmental causes. But in the entire list of top 100 cryptocurrencies by market cap, only one project can confidently be described as having sustainability as its key pillar — 

With a market cap of $2 billion (as of the time of writing on Apr 22, 2025), VeChain stands head and shoulders above any other crypto project in the sustainability niche. The project has been fully operational since 2018, and is among the oldest environmentally focused blockchain initiatives. In short, if we talk about sustainability and blockchain, it would be disingenuous not to mention VeChain and its 

Having championed green blockchain causes since 2018, VeChain announced a significant upgrade initiative in late 2024 to be rolled out in stages during 2025. Called Renaissance, it’s envisioned to further solidify VeChain's position as the leader of eco-friendly blockchain use and introduce a host of technical improvements. In fact, 2025 is the year of the most fundamental upgrade to this notable industry player in its entire history on the market, so it's precisely the time to revisit this project in our coverage.

VeChain (VET) is a decentralized project designed to support sustainability-focused blockchain use cases across various industry verticals.

 The company was first conceptualized and founded as a blockchain project in 2015 by Chinese technology professional Sunny Lu. It launched its Layer 1 network, VeChainThor (VTHO), in mid-2018, becoming one of the first decentralized initiatives to support eco-friendly applications on-chain. The VeChainThor network features low transaction fees and high levels of scalability.

For years, the VeChain blockchain has remained probably the leading decentralized platform in the niche of sustainability. As of April 2025, it retains the leadership position, and is ranked 56th among all cryptocurrencies, with a market cap of $2 billion.

VeChain's sustainable blockchain technology

Many blockchains claiming to support environmental causes typically use the 

, which is indeed much more energy-efficient than the power-hungry 

 (BTC). By using PoS, these blockchains have boldly announced that their energy use is much lower than Bitcoin's. While this is true, these platforms are essentially general-purpose networks that don't specifically design their operations with any particular sustainability use case in mind.

Instead of these two typical consensus mechanisms, the VeChainThor blockchain uses 

 (PoA), touted to be even more energy-efficient than the standard PoS employed by 

 chains. In a typical PoA consensus, a smaller number of validators with "authority" — i.e., a history of reliable behavior on the network — are entrusted to process blocks. This is in contrast to PoS, whereby many validators take part in the staking contest to outperform each other in terms of token holdings. They then receive the right to validate the next block, and have to constantly align their consensus process with other 

As a result, PoS is usually less energy-efficient than PoA. VeChain's PoA model elegantly combines efficient processing, minimal energy use and high levels of enterprise-grade security.

The VeChainThor blockchain network's processing engine also features compatibility with the 

 (EVM), making cross-chain communication with the Ethereum world much easier for VeChain developers and 

PoA block validation isn’t the only sustainability-minded feature of VeChain. Unlike many other popular chains, VeChain also directly enables sustainability use cases, primarily by utilizing its tamperproof and transparent data-tracking mechanism. Thus, enterprises across different industries can track and reliably verify the origin of goods and their sustainability status for eco-friendly supply chain management. For instance, supermarket chains can use the platform to track and verify the carbon footprint of the produce they source; logistics companies can calculate the overall emissions generated along their supply chains; and fashion brands can track sustainable sourcing of materials used for their product lines.

Besides its own blockchain, the project also offers a blockchain-as-a-service (BaaS) platform, VeChain ToolChain, to help businesses integrate VeChain's technology into their business processes via standardized smart contract services.

To further position itself as a champion of sustainability, VeChain launched 

 represents an on-chain ecosystem of DApps that reward VeChain users for completing various eco-friendly tasks, such as using reusable coffee cups, shopping for organic products, picking litter off streets and more. VeBetterDAO is the project’s foray into the individual consumer side of environmentalism, which complements the VeChain platform’s long-standing sustainability features for the enterprise world.

In late 2024, VeChain first announced its planned multi-stage upgrade, Renaissance, to make the platform even more efficient. Its changes are envisioned to take place gradually throughout 2025, and possibly beyond. The Renaissance upgrade touches many parts of the platform, with three key areas involved — a new VeChain staking and node model, technical updates and changes to the dual token mechanism. We'll cover the first two areas below, and the changes to VeChain’s tokenomics in the next section.

VeChain’s PoA block validation model uses a group of 101 trusted Authority Masternodes (AMs) who will fully transition to Validators under the new Renaissance model by December 2025. Each Authority Masternode is approved by the VeChain Foundation. These nodes are responsible for generating transaction blocks. You’ll need to 

 at least 25 million VET to participate in block production, which occurs in fixed 14-day cycles.

Under the platform’s pre-Renaissance model, there are two more types of specialized nodes — Economic and X-Nodes — who stake their tokens to a selected AM/Validator and participate in 

 on the platform. After the Renaissance upgrade is fully rolled out, Economic nodes and X-Nodes will be replaced by a tiered system of Delegator nodes.

Delegators will need to stake a certain amount of VET tokens to mint Delegator 

, which will entitle them to different grades of staking reward multipliers. The more you stake, the higher grade of NFT you receive, and the higher your staking rewards will be. When blocks are produced, AMs/Validators will receive 30% of the total block reward, with the remaining 70% going to holders of the Delegator NFTs.

The image below shows the new Delegator NFT–tiered model, with minimum VET staking requirements and reward multipliers.

While the VeChainThor network is EVM-compatible, there are still differences between its technical parameters and the standard EVM used by Ethereum. For this reason, the Renaissance upgrade aims to reach full EVM compatibility, including implementing the JSON-RPC (

remote procedure call) extensively employed within the Ethereum blockchain.

As part of the Renaissance upgrade, the project will also introduce a new set of tools to achieve more seamless cross-chain capabilities. This will involve integrating new 

The VeChain token model has always been based on two cryptocurrencies: VET and VTHO. VET is the 

 that acts as the main means of value storage and transfer on the platform, while VTHO is used to pay for gas. Now, the Renaissance upgrade also changes the way the dual-token mechanism operates.

Before the upgrade fully kicks in, VTHO is still generated by simply holding VET. After the Renaissance, only staked VET will generate new VTHO for the holder. This should better align VTHO with the active participation of users on the platform. VTHO's inflation rate will also be cut by over 70%, as its issuance will be aligned to a new emission model that considers the total amount of VET staked on the platform.

To further reduce the inflationary properties of VTHO, 100% of all base transaction fees on the network, which are all paid with VTHO, will be 

VET is the platform’s value transfer and storage token. It’s also used for governance and access to various features and apps on the network. VET is a supply-capped token with a max supply of just over 86.7 billion. These properties will not change following the Renaissance upgrade.

VTHO, which is used to pay for gas fees on VeChainThor, is an inflationary token with an uncapped supply. It currently has a total supply of almost 88,7 billion. As noted above, after Renaissance, VTHO will be generated via staking only, and will feature a burn mechanism to reduce its inflation rate.

t as a swap pair with USDT, and on the Derivatives market as the 

In addition, you can take advantage of Bybit’s event dedicated to the VET token to grab a share of a 

. New users can earn VET rewards by accumulating a deposit volume of at least 5,000 VET, or by depositing at least 100 USDT and trading 100 USDT worth of VET via their first Spot trade using their Bybit account. Meanwhile, existing users can also qualify for rewards by trading at least 500 USDT worth of VET on the Bybit Spot market. The event runs through Apr 28, 2025, 9AM UTC.

As of Apr 23, 2025, the VET token is trading at $0.02576, which is 90.8% lower than its ATH of $0.281 on Apr 19, 2021, and 1,243.2% higher than its ATL of $0.001917 on Mar 13, 2020.

Long-term price forecasts for VET are mostly bullish. DigitalCoinPrice 

 of $0.088 in 2027 and $0.14 in 2030, while PricePrediction 

In the long term, VET might even rise to $1, at least according to PricePrediction’s forecast. Its portal is highly optimistic, estimating that VET will hit the $1 mark in 2034.

You might consider investing in the VeChain token VET based on the following:

When Sunny Lu created VeChain in 2015, his vision focused on sustainability issues. VeChain's work in this area has led to the creation of the first decentralized network truly dedicated to making a tangible environmental impact. The entire VeChain ecosystem — including the VeChainThor blockchain platform, VeBetterDAO and VeChain Toolchain — continues to serve as a significant enabler of sustainable technology in the business world.

Now, with the Renaissance upgrade being rolled out for the duration of 2025, VeChain aims to solidify its leadership in this sphere. With the Renaissance upon us, it's hard to see any blockchain platform that could challenge VeChain in the area of sustainability anytime soon.

Intermediate

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What is VeChain (VET): Building a sustainable future for all

StablR USD (USDR) is a MiCA-compliant stablecoin, fully backed 1:1 with USD, offering secure, transparent digital payments in the European economy.

 continues to gain ground in the crypto world, most countries are leaning toward having a framework to govern and regulate these digital assets. One such framework is the Markets in Crypto-Assets Regulation (MiCAR, or MiCA for short), the European Union’s gateway for regulating digital assets that aims to provide legal clarity, consumer protection and financial stability.

 — particularly those pegged to fiat currencies — must meet strict standards for transparency, reserve backing and operational governance to be approved for circulation in the EU.

StablR USD is a fully MiCA-compliant, eurozone-issued stablecoin pegged 1:1 to the United States dollar. Built with regulatory alignment at its core, StablR offers a transparent, secure and compliant digital dollar solution tailored for the European market, making it a key player in the future of regulated digital finance.

Let’s learn more about this electronic money token and stablecoin.

 is a company that offers MiCA-compliant electronic money tokens (EMTs) pegged to the dollar at a ratio of 1:1 to each of its fiat equivalents. 

 to provide transparent, secure and regulatory-compliant EMTs that fuel the global economy.

The Malta-based Dutch company currently offers two MiCA-compliant stablecoins: EURR and USDR. EURR is a fiat-backed stablecoin, pegged to the euro 1:1, that runs on the Ethereum blockchain. Meanwhile, USDR is its US dollar–backed stablecoin counterpart that can be redeemed for its fiat equivalent at any time.

StablR is keen on transparency, providing a 

 (PoR) page that shows the current supply and reserves available for its stablecoins. The company leverages a trusted banking custodian to ensure the reserves match or exceed the issued stablecoins.

StablR USD (USDR) is a eurozone-issued, MiCA-compliant 

 fully backed 1:1 with US dollar reserves held in EU-regulated financial institutions. Designed for stability, transparency and regulatory alignment, it offers a secure and compliant gateway to digital finance within the European Union (EU).

Importantly, StablR USD (USDR) isn’t the same as Real USD (USDR), a separate token that recently experienced a significant depeg. StablR USD maintains full transparency and stability, offering real-time reserve attestations, strict compliance with MiCA regulations and the right of redemption for authorized users. This ensures that each USDR can always be redeemed for $1. 

With its strong regulatory foundation and commitment to transparency, StablR USD is positioned as a trusted stablecoin for the future of tokenized finance in Europe.

An electronic money token (EMT) is a type of crypto asset defined under MiCA. EMTs are digital representations of fiat currency — just as the euro or StablR USD (USDR) is a eurozone-issued, MiCA-compliant stablecoin fully backed 1:1 with US dollar reserves held in EU-regulated financial institutions. Essentially, EMTs are a form of stablecoins, and are digital versions of traditional e-money, combining the speed and efficiency of blockchain with the reliability of government-issued currencies.

To be classified as an EMT under MiCA, a stablecoin must meet strict regulatory requirements, including full reserve backing, daily redemption rights and transparency around reserve holdings. Issuers must also be authorized by an EU financial authority, and comply with ongoing audits and consumer protection measures.

EMTs are designed to enable everyday payments, digital commerce and cross-border transactions, offering a compliant and stable alternative to more volatile crypto assets.

You can buy USDR on Bybit’s Spot trading platform (Netherlands only), where it's available as part of two pairs, USDR/USDT and BTC/USDR.

To celebrate the listing, Bybit is holding three special events 

 that will run through May 11, 2025, 9AM UTC. You need to register for the events to get started.

As MiCA regulations take hold, StablR USD (USDR) is leading the way in trustworthy, tokenized value powered by blockchain technology. Its diverse range of use cases, from payments to DeFi, position it as a cornerstone for compliant digital finance. A reliable, MiCA-compliant stablecoin that’s purpose-built for the European digital economy with full 1:1 USD backing held in regulated EU financial institutions and the right of redemption, StablR delivers trust and security in the rapidly evolving stablecoin market.

usdr stablecoin.png

StablR USD (USDR): A trusted digital dollar for a borderless economy

In this article, we cover key economic releases amidst Trump's tariff hikes and resulting recession fears. We also look at what investors are watching leading up to the May 6 FOMC meeting, and how it might affect global markets and Bitcoin.

It's a tricky time for global financial markets, with worries swirling around US trade policy and its potential economic effects. Big tariff hikes in the ongoing US-China trade war have made the future feel uncertain, shaking things up for traders and investors.

As everyone tries to make sense of it all, key economic reports are giving us clues. Meanwhile, all eyes are on the upcoming Federal Open Market Committee (FOMC) meeting on May 6-7, 2025, for hints about where interest rates might be headed. Let's break down the latest data and look ahead to what the Fed might say.

Economic numbers released so far in April have significantly influenced market sentiment amid trade tensions and policy questions. These reports offer a snapshot of the US economy's health just before the newest tariffs start making their mark.

The US job market is still holding up, though some details suggest caution. Initial jobless claims for the week ending April 12 

. That's the lowest since February, and better than the 225,000 applications economists predicted, suggesting companies didn't immediately cut jobs after US president Donald Trump's 

However, continuing claims — the number of people receiving unemployment benefits after the first week — edged up slightly to 1.89 million for the week ending April 5. While new claims are low, higher continuing claims compared to a year ago suggest it might be getting tougher for laid-off workers to find new jobs. A strong job market could mean the Fed feels less pressure to cut interest rates, potentially helping the US dollar but weighing on riskier assets like stocks and crypto.

Good news arrived with the Consumer Price Index (CPI) report 

, showing inflation cooled more than expected in March. Headline CPI dipped 0.1% from the previous month, pulling the yearly rate down to 2.4% (from 2.8% in February), below the 2.6% Wall Street forecast.

More importantly for the Fed, core CPI (excluding food and energy) only nudged up 0.1% monthly. This brought the annual core rate down to 2.8%, its lowest since March 2021 and better than the 3% forecast. Lower energy costs — especially gas (−6.3% MoM) — played a big part. While softer inflation usually supports rate cuts, the looming impact of tariffs complicates things, as these duties are expected to push prices higher.

Following the encouraging CPI numbers, the Producer Price Index (PPI) on April 11 also pointed to easing costs for producers. Headline PPI 

 in March against forecasts of a 0.2% rise, slowing the annual rate sharply to 2.7% from 3.2%. Core PPI also fell 0.1% month-over-month, bringing its yearly rate to 3.3%.

Falling energy prices were again a major factor. But the report wasn't all positive — it showed early signs of tariffs hitting, with wholesale iron and steel mill prices jumping 7.1% in March, the biggest monthly leap since April 2021. If these input costs keep rising due to tariffs, it could squeeze company profits and push bond yields higher.

Markets have been volatile, reacting to economic data and trade policy shifts. US stocks saw big swings, with the S&P 500 reacting to both tariff fears and inflation news. When Trump 

 (excluding China) on April 9, it sparked a major relief rally. The S&P 500 had its 

, gaining 9.5% following the news, but overall uncertainty still lingers.

Bitcoin's price certainly reflected this turbulence. Following the April 1 JOLTS report

 from $82,563 to hit a recent high of $86,891 on April 2. However, the gains didn't last, as the price subsequently fell to $74,830 by April 7 amid intensifying US-China trade war tension. 

A recovery brought BTC back to $83,020 by April 10, but it dipped again before getting a boost from the better-than-expected core PPI report on April 11. This pushed the price up from $79,664 on April 11 to $84,074 by April 17. As of April 22, 2025, Bitcoin is trading at around $88,000.

As the US dollar weakened and recession worries grew, gold prices 

, hitting record highs as investors sought safety in the precious metal.

Fed FOMC on May 6–7: What are investors watching?

The upcoming FOMC meeting on May 6–7 is a key focus for traders seeking clarity on interest rates. Markets widely expect the Fed to keep the federal funds rate steady at 4.25%–4.50%. Although March's inflation cooled somewhat, it's still above the Fed's 2% target. Officials have signaled patience, especially with the job market looking stable — something Fed Chair Jerome Powell recently described as being in 

Most investors will watch the FOMC's statement and Powell's press conference for changes in tone, especially regarding tariffs. Fed officials like New York Fed President John Williams have acknowledged tariffs will likely boost inflation and slow growth.

 GDP growth could fall below 1% and inflation could rise to between 3.5% and 4% this year, due to tariffs and less immigration, stating it's "simply too early to know the answers" because of the uncertainty. Powell himself also noted signs the economy might have slowed in the first quarter.

While a May rate cut looks highly unlikely — the 

 shows slim odds — investors will listen for hints about when future cuts might occur. Market analysis suggests a cut at the June 18 meeting is more likely than not. Further out, markets might be pricing in about 

, but predictions vary (from one cut to five). Any sign that cuts could be delayed beyond June, or that the Fed is more worried about inflation, could negatively impact risk assets such as crypto.

Current market sentiment has sunk to extreme fear territory for the past month. Tariffs and recession fears drove a sharp sell-off in global markets and crypto, while economic data is sending mixed signals — a strong job market alongside cooling March inflation right before new tariffs hit.

The upcoming FOMC meeting is pivotal. A rate hold is expected, but the Fed's view on tariff impacts and future rate cuts will be critical. Crypto and equity traders should pay close attention to Fed communications and economic data in order to navigate the uncertainty and adjust their strategies.

If you're looking to diversify or manage risk across different assets, 

 makes it easy to trade gold, forex and other traditional finance markets alongside crypto via our

. You can trade over 100 pairs with features like tight spreads, tailored fees, top-tier liquidity and up to 500x leverage. 

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Macro this week: Tariffs, recession fear and the Fed’s next move ahead of May 6 FOMC meeting

Blockchain

Explainers

Understanding how hashing (hash rate) works on blockchain is fundamental to mining. Learn how hashing works and to apply it effectively.

 technology has revolutionized the way we store and secure data, with one of its core components being the concept of hashing. “What is hashing in blockchain?” you might ask. Hashing is the backbone of the blockchain, ensuring data integrity and preventing fraudulent transactions. But what exactly is hashing, and how does it contribute to the secure and robust nature of blockchain systems? This blog post will unveil the mystery of hashing in blockchain and guide you through its various applications and implications.

We will explore the role of hash functions, different hashing algorithms, and the connection between hashing and the 

 consensus algorithm. We will also delve into cryptographic hash functions, their properties, and practical applications in blockchain, such as transaction verification and password storage and security. Finally, we will compare the energy consumption of 

 and Ethereum, shedding light on the environmental impact of their respective consensus mechanisms.

Hashing in blockchain implies the transformation of input data into a fixed size output through a specific algorithm. It establishes data integrity and averts fraudulent transactions. At the core of this process are hash functions, which create unique digital fingerprints for data. The output, known as a hash value, is unique to the input data, even if the input data is altered slightly, the hash value will be drastically different. This property of hash functions makes them an indispensable component of various data structures, including blockchain technology, where each block contains the hash of the previous block.

Different hashing algorithms like SHA-256 for Bitcoin and Scrypt for 

 are available, each boasting unique properties and applications. A good hash function is essential for maintaining the security and integrity of the blockchain, as it guarantees that unique hashes are generated for different inputs, ensuring the authenticity of transactions and preventing tampering.

A cryptographic hash function operates as a cryptographic tool, generating a unique digital fingerprint for data. Different algorithms produce different output sizes, but a good hash function should be deterministic, meaning that the same input will always produce the same output. This property ensures that regardless of how many times the input is hashed, the output will remain consistent, allowing for easy verification of data consistency.

Hash functions also possess the capability to verify message integrity and authenticate information. For instance, 

 and RIPEMD-128 are among the cryptographic hash functions utilized in blockchain technology. These functions aid in securing the data integrity across various applications, including blockchain technology, where each block incorporates the previous block’s hash.

Different blockchains employ different hashing algorithms, with Bitcoin utilizing the Secure Hashing Algorithm 256 (SHA-256) as its hashing algorithm. 

 that generates a 256-bit hash value. It is widely used in various data structures, including blockchain technology, to ensure the security and integrity of data.

The array of hashing algorithms includes Scrypt, a password-based key derivation function used across various cryptocurrencies like Litecoin. Scrypt generates a unique output hash for each input, ensuring the security and integrity of the data.

Ethash, on the other hand, is a memory-hard hashing algorithm specifically designed for implementation in the Ethereum blockchain, developed to counteract the potential for ASIC miners to be utilized. Various hashing algorithms possess distinct levels of complexity, which influences the rate at which miners can find a valid hash, ultimately impacting the security and stability of the blockchain network.

The Connection Between Hashing and Proof of Work

Hashing forms a core part of the Proof of Work consensus algorithm, where miners resolve intricate mathematical problems using hashing to validate transactions and generate new blocks. Mining involves using computational power to find a valid hash for a block of transactions. The first miner to find the valid hash is rewarded with cryptocurrency, incentivizing miners to participate in securing the network.

The mining difficulty undergoes periodic adjustments to uphold a steady rate of block production, thus contributing to the blockchain’s security and stability. Various factors affect the adjustment of mining difficulty, such as:

This process guarantees the integrity and immutability of the blockchain.

Mining in blockchain encompasses the verification and validation of transactions on the blockchain network. Miners utilize computational power to solve intricate mathematical problems, which assists in securing the network and adding new blocks to the blockchain ledger. This process guarantees the integrity and immutability of the blockchain, as it ensures that only valid transactions are added to the chain.

To validate the integrity of a transaction, the hash value of the transaction is compared to the hash value stored in the block. If the two hash values match, it implies that the transaction has not been altered and is considered valid. By utilizing hashing, blockchain technology guarantees the immutability and security of transactions, as any changes to the transaction data would result in a different hash value, making it easily detectable.

Mining difficulty is an adjustable parameter that is periodically modified to ensure the security and stability of the blockchain by maintaining a consistent rate of block production. It is influenced by factors such as:

The mining difficulty of Bitcoin, for example, is adjusted every 2016 blocks, which is estimated to occur every two weeks. This adjustment is based on the amount of time taken to locate the preceding 2016 blocks. If the blocks are found in a shorter than expected duration, the difficulty is increased, and conversely, if the blocks are located over a longer period, the difficulty is decreased. This mechanism ensures that a new block is discovered approximately every 10 minutes, preserving the security and stability of the blockchain network.

Securing Data with Cryptographic Hash Functions

Cryptographic hash functions safeguard data in the blockchain through the following properties:

These properties ensure data integrity and hinder tampering in the data structure of the blockchain.

Comprehending these properties of cryptographic hash functions is necessary for understanding the security and reliability of blockchain technology. These functions provide a strong foundation for the secure storage and transfer of data within decentralized networks, protecting sensitive information and maintaining the integrity of the blockchain.

Deterministic outputs in hashing relate to a hash function’s ability to consistently generate the same hash value for a specified input. This ensures that regardless of how many times the input is hashed, the output will remain consistent, allowing for easy verification of data consistency. In the context of blockchain technology, this property guarantees that the same input will always produce the same result, maintaining uniformity and trust in the blockchain network.

Deterministic output enables foreseeable and verifiable execution of code, which is fundamental for the decentralized nature of blockchain systems. It plays a key role in the validation of transactions in a blockchain, as it guarantees that the same input will always generate the same output, ensuring that all participants in the blockchain network can independently verify the validity of transactions and arrive at a consensus on the state of the blockchain.

Preimage Resistance and Collision Resistance

Preimage resistance and collision resistance constitute significant properties of cryptographic hash functions that establish data integrity and hinder tampering in blockchain technology. Preimage resistance makes it computationally difficult to find the original input (pre-image) given the hash value. This ensures that the hash function is one-way, meaning it is easy to compute the hash value from the input, but difficult to reverse the process and find the input from the hash value.

Collision resistance, on the other hand, ensures that distinct inputs yield distinct hashes, thus preserving the integrity of the data stored in the blockchain. By minimizing the chances of two different inputs producing the same hash value, collision resistance helps maintain the security and trustworthiness of the blockchain network.

Together, preimage resistance and collision resistance form the basis of securing data with cryptographic hash functions in blockchain technology.

Practical Applications of Hashing in Blockchain

Hashing exhibits numerous practical applications in blockchain, encompassing transaction verification and password storage and security. Transaction verification relies on hashing to confirm the authenticity and integrity of data, ensuring that transactions are valid and secure. Hashing is also used to securely store passwords, protecting user data and preventing unauthorized access to accounts.

Understanding the practical applications of hashing in blockchain provides insight into the numerous ways hashing fortifies and secures decentralized networks. From verifying transactions to safeguarding sensitive information, hashing plays a vital role in maintaining the integrity and trustworthiness of blockchain systems.

Transaction verification forms a significant aspect of blockchain technology, ensuring the security and accuracy of transactions. Utilizing hashing, the transaction data is hashed using a hash function, and the resulting hash value is incorporated into the block alongside other transaction data. To validate the integrity of a transaction, the hash value of the transaction is compared to the hash value stored in the block. If the two hash values match, it implies that the transaction has not been altered and is considered valid.

By utilizing hashing, blockchain technology guarantees the immutability and security of transactions, as any changes to the transaction data would result in a different hash value, making it easily detectable. This process of transaction verification is widely used in various blockchains, such as Bitcoin and 

, ensuring the integrity and security of the network.

Blockchain employs hashing to store passwords securely, safeguarding user data and prohibiting unauthorized account access. When a user creates an account or sets a password, the password is hashed using a cryptographic algorithm, and the resulting hash is then stored in the blockchain instead of the actual password. When a user attempts to log in, the entered password is hashed using the same algorithm, and the resulting hash is compared to the stored hash in the blockchain. The hashes are compared. If they match, the user is granted access..

Since the hash is a one-way function, it is computationally infeasible to reverse-engineer the original password from the hash. This makes it extremely difficult for attackers to crack passwords by guessing or using brute-force methods. As a result, hashing is an effective technique for ensuring the security and integrity of password storage in blockchain technology.

Comparing Energy Consumption: Bitcoin vs. Ethereum

Bitcoin and Ethereum exhibit differences in energy consumption, attributable to their respective consensus algorithms. The energy-intensive mining process of Bitcoin raises environmental sustainability concerns. Bitcoin mining, which relies on Proof of Work, consumes a significant amount of energy, estimated to be around 137.68 TWh per year. In contrast, Ethereum’s move to a 

 consensus algorithm aims to reduce its energy consumption by 99%, making it more sustainable and environmentally friendly compared to Bitcoin.

The energy consumption differences between Bitcoin and Ethereum underline the need to consider the environmental impact of blockchain technology. By understanding the implications of different consensus algorithms on energy consumption, we can better appreciate the benefits of more sustainable and energy-efficient solutions such as Ethereum’s Proof of Stake.

Bitcoin’s mining process consumes a significant amount of energy as it relies on Proof of Work and involves solving complex mathematical problems. This energy-intensive nature of Bitcoin mining has raised concerns about its environmental impact, as the estimated energy consumption is approximately 

Various indexes and estimates, such as the Bitcoin Energy Consumption Index provided by platforms like Digiconomist and Cambridge Center for Alternative Finance (CCAF), are used to measure Bitcoin’s energy consumption. These measurements demonstrate the environmental concerns surrounding Bitcoin’s energy consumption and emphasize the need for more sustainable and energy-efficient solutions in blockchain technology.

Ethereum’s shift to a Proof of Stake consensus algorithm signifies a significant move towards enhanced sustainability and environmental responsibility in blockchain technology. By utilizing ETH instead of energy to secure the network, Ethereum’s Proof of Stake system significantly decreases the energy consumption of the blockchain, with an estimated reduction of over 99%.

The environmental benefits of Ethereum’s move to Proof of Stake include:

By adopting more energy-efficient consensus mechanisms, blockchain systems like Ethereum are leading the way towards a more environmentally friendly and sustainable future for decentralized networks.

Throughout this blog post, we have unveiled the mystery of hashing in blockchain, exploring its various applications and implications. From the role of hash functions and different hashing algorithms to the connection between hashing and Proof of Work, we have delved into the critical components of blockchain technology that ensure data integrity and prevent tampering.

As we have seen, hashing is a fundamental aspect of blockchain technology, providing the foundation for secure storage and transfer of data within decentralized networks. By understanding the importance of hashing and its practical applications, we can better appreciate the robustness and security of blockchain systems, ultimately contributing to a more secure and trustworthy digital landscape.

What is hashing in blockchain with example?

Hashing in blockchain is a cryptographic process which takes an input (such as text) and turns it into an output of fixed length and structure known as the 'hash value'. It is always the same length and one-way, meaning it cannot be reversed.

Hashing is the process of transforming data into a fixed-length code using a hash function. This makes it easier to find and employ the original data and is used most commonly for hash tables.

What is the difference between encryption and hashing?

Encryption is a two-way process that scrambles data so it can be unscrambled later, while hashing is a one-way process that maps data to a fixed-length value, used mainly for authentication purposes.

A hash in a blockchain is a cryptographic function that converts random data input into a fixed length and structure output known as a hash value. This makes it easy to identify transactions on the blockchain, as each transaction has its own unique hash.

How does Proof of Work relate to hashing in blockchain?

Proof of Work is a consensus algorithm that leverages hashing to confirm transactions and generate new blocks in the blockchain. Hashing is used to solve complex mathematical problems and produce a valid hash that meets specific requirements.

Explained: What Is Hashing in Blockchain?

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Explained: What Is Hashing in Blockchain?

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