<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="576" src="https://api-blog.alphaguilty.io/wp-content/uploads/2023/03/Potential_LayerZero_airdrop_—_How_to_be_eligible_and_get_free_crypto-1024x576.jpg" alt="" class="wp-image-1131" srcset="https://api-blog.alphaguilty.io/wp-content/uploads/2023/03/Potential_LayerZero_airdrop_—_How_to_be_eligible_and_get_free_crypto-1024x576.jpg 1024w, https://api-blog.alphaguilty.io/wp-content/uploads/2023/03/Potential_LayerZero_airdrop_—_How_to_be_eligible_and_get_free_crypto-300x169.jpg 300w, https://api-blog.alphaguilty.io/wp-content/uploads/2023/03/Potential_LayerZero_airdrop_—_How_to_be_eligible_and_get_free_crypto-768x432.jpg 768w, https://api-blog.alphaguilty.io/wp-content/uploads/2023/03/Potential_LayerZero_airdrop_—_How_to_be_eligible_and_get_free_crypto.jpg 1200w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



There is no doubt that the popularity of LayerZero will continue to grow. From the moment crypto appeared, it was clear that blockchain would be the most promising technology. Now, this is a reality and we are constantly facing new challenges and problems. Blockchain is not easy: it is the inevitable cost of a secure and functional system.



But how can LayerZero protocol help and why LayerZero Labs has made a breakthrough? Today we will talk about that and also discuss a possible LayerZero airdrop.



<h2>What is Layer 0 protocol (Layer Zero)?</h2>



So, LayerZero is a special application that allows you to send and receive transfers between blockchains using the ULN model. It uses an oracle and a relayer for processing. In other words, LayerZero is an interoperability protocol (omnichain). Now LayerZero enables the realization of cross-chain applications with a low-level communication primitive.



<h2>How does LayerZero protocol work?</h2>



LayerZero allows you to achieve cross-chain operational compatibility and functionality. LayerZero uses the Chainlink oracle, which has one of the clearest and most robust security policies. So, if someone decides to perform some questionable operations with LayerZero, they will encounter protections that cannot be easily bypassed. Moreover, LayerZero provides uniform liquidity across all chains with guaranteed finality at the source chain.



<h2>Who is the team behind LayerZero?</h2>



LayerZero Labs is a startup based in Vancouver. The LayerZero Labs was founded in 2021 by friends who worked together in computer network research labs.&nbsp;



Sequoia Capital and Andreessen Horowitz led a $135 million Series A+ investment in LayerZero Labs, with additional investors including Coinbase Ventures and Uniswap Labs. The LayerZero Labs previously raised $6 million in Series A funding from Binance Labs, and Sino Global Capital, among others.



But what about LayerZero&#8217;s potential airdrop and free crypto tokens? LayerZero does not currently have a crypto token, and there is no official airdrop date yet. But it is widely expected that $ZRO will be launched soon. We know for sure that the $ZRO crypto token exists because you can see it in LayerZero&#8217;s info code.How you can get a $ZRO crypto token from LayerZero? If you want to have a chance to win a retrodrop from LayerZero, just complete some tasks on AlphaQuest.

AlphaGuilty

How to invest in DeFi

How much does crypto get taxed

How can NFTs be used in DeFi (decentralized finance)?

What is DeFi

How to calculate market cap crypto

How to find new crypto coins

Arbitrum

Optimism

LayerZero

Aptos

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="576" src="https://api-blog.alphaguilty.io/wp-content/uploads/2023/03/Cryptocurrency-market-cap-1024x576.jpg" alt="" class="wp-image-1162" srcset="https://api-blog.alphaguilty.io/wp-content/uploads/2023/03/Cryptocurrency-market-cap-1024x576.jpg 1024w, https://api-blog.alphaguilty.io/wp-content/uploads/2023/03/Cryptocurrency-market-cap-300x169.jpg 300w, https://api-blog.alphaguilty.io/wp-content/uploads/2023/03/Cryptocurrency-market-cap-768x432.jpg 768w, https://api-blog.alphaguilty.io/wp-content/uploads/2023/03/Cryptocurrency-market-cap.jpg 1200w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



Today the rise in the value of digital assets leads to an increasing inflow of new funds into the crypto ecosystem. Investors typically rate cryptocurrencies based on several factors and try to predict their long-term value. So, the market cap is often used as an argument when deciding whether to buy a particular coin or token.



Right now, we are going to tell you how to calculate the market cap of cryptocurrencies so that you can make the right investment decisions. It&#8217;s not as complicated as it may seem at first glance. To get newbies up to speed, let&#8217;s start with the basics and definition of crypto market capitalization.



<figure class="wp-block-image"><img alt=""/></figure>



<h2>What is the market cap of cryptocurrency?</h2>



So, crypto market capitalization is a measure used to define the overall value and scope of the digital assets market. Bitcoin has long been at the top of the list for this metric. Market cap is determined by multiplying the current price of each coin or token by the total amount of digital assets in circulation.



Note that market capitalization does not always indicate the greater popularity of a cryptocurrency. Let&#8217;s take Bitcoin and Ethereum as an example:



<ul>
<li>BTC now has a much higher cost. As a result, it is far ahead of ETH in terms of market capitalization.</li>



<li>The total amount of ETH in circulation is much higher. About 121 million tokens are now in use, compared to 19.39 million BTC (as of January 2023).</li>



<li>However, because ETH is worth less, the market capitalization of this asset is more than half that of BTC.</li>
</ul>



When analyzing cryptocurrency, you need to consider the diluted market cap. By figuring it out, you can see how undervalued/overvalued a particular asset is. This metric is produced when you multiply the number of all coins that could exist by the price of each coin.



<h3>Calculating the market capitalization</h3>



As we said above, to determine the market capitalization, you need to multiply the current price of the cryptocurrency by its circulating supply. Let&#8217;s break this down a bit more so that you can easily make calculations in the crypto market:



<ul>
<li>Crypto market cap = current price x circulating supply. Let&#8217;s consider the first figure is $200 and the supply is 20,000 tokens.&nbsp;</li>



<li>Crypto market cap = $200 x 20,000 = $2,000,000. This means that the total cost of all tokens is $2,000,000 at the current price.&nbsp;</li>
</ul>



This is an important metric in a crypto market used by investors and analysts to check the size and potential of cryptocurrency. If you don&#8217;t want to do the math yourself, there are options such as Trading View or CoinMarketCap.



<h2>Are there any problems with a crypto market cap?</h2>



The formula for determining market cap seems simple, but there are several important things to consider. The main difficulty is that all metrics on the cryptocurrency market are not static. Every second the cost increases and decreases, and the assets are either issued or burned (if the protocol provides for it).



In addition, many coins are lost. Someone forgot a password, someone&#8217;s hard drive burned out, and in some cases, the assets were stolen. So, the figures quoted today are only close to reality. Everyone knows how many assets have been created, but whether they exist at the moment is a mystery.



<h3>Why should you care about the market cap?</h3>



First of all, it is an evaluation of the attractiveness of an asset on the crypto market. By studying this metric, you can see in which direction capital is moving, and this info is helpful when deciding to buy or sell crypto. Cap is also used to compare various assets and even economic sectors.



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This is an important economic indicator that helps to assess the open interest of investors. However, as practice shows, this fact doesn&#8217;t guarantee further growth of the asset. Make a balanced decision and don&#8217;t forget the risks.



<h2>To Sum It Up</h2>



The cryptocurrency market is very unstable and each exchange shows its pricing policy. This is why the figures of the market cap will not be the same at various times of the day. However, despite the impossibility of getting perfectly accurate figures, the crypto market continues to flourish and develop, attracting more and more investors.

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="576" src="https://api-blog.alphaguilty.io/wp-content/uploads/2023/03/All-you-need-to-know-about-decentralized-finance-1-1024x576.jpg" alt="" class="wp-image-1158" srcset="https://api-blog.alphaguilty.io/wp-content/uploads/2023/03/All-you-need-to-know-about-decentralized-finance-1-1024x576.jpg 1024w, https://api-blog.alphaguilty.io/wp-content/uploads/2023/03/All-you-need-to-know-about-decentralized-finance-1-300x169.jpg 300w, https://api-blog.alphaguilty.io/wp-content/uploads/2023/03/All-you-need-to-know-about-decentralized-finance-1-768x432.jpg 768w, https://api-blog.alphaguilty.io/wp-content/uploads/2023/03/All-you-need-to-know-about-decentralized-finance-1.jpg 1200w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



Today, DeFi and blockchain technology have become an integral part of the cryptocurrency economy and counterparts to the traditional financial system. Now people store money in a secure digital wallet and conduct financial transactions in seconds without intermediaries and third parties. Anyone with a stable Internet connection can use the DeFi application, plus it&#8217;s very convenient and transparent.



So we will be discussing a very important and relevant topic of DeFi work. DeFi is likely to be the fastest-growing trend in the cryptocurrency industry in 2023. That&#8217;s why both beginners and experienced crypto enthusiasts need to know how decentralized finance works and who can benefit from it.



<figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="960" height="480" src="https://api-blog.alphaguilty.io/wp-content/uploads/2023/03/image-19.png" alt="" class="wp-image-1157" srcset="https://api-blog.alphaguilty.io/wp-content/uploads/2023/03/image-19.png 960w, https://api-blog.alphaguilty.io/wp-content/uploads/2023/03/image-19-300x150.png 300w, https://api-blog.alphaguilty.io/wp-content/uploads/2023/03/image-19-768x384.png 768w" sizes="(max-width: 960px) 100vw, 960px" /></figure>



<h2>What is decentralized finance?</h2>



This is a publicly available ecosystem of financial services and apps based on public blockchains (mostly ETH). DeFi also works without any centralized authority. DeFi covers all aspects of financial services and financial transactions (it can also be lending, borrowing, and trading).&nbsp;



At a time when the government is trying to centralize all financial services, a solution based on blockchain technology is just perfect. Any user can interact with decentralized finance and manage assets through P2P and dApps. Let&#8217;s take a look at all the major advantages of DeFi right away:



<ul>
<li>It&#8217;s transparent. The source code of DeFi applications is open, which allows anyone to understand the functionality of a smart contract or identify bugs. All transaction activity is public (financial transactions are pseudo-anonymous).</li>



<li>There are no centralized structures in DeFi and that&#8217;s great. All rules are written in a smart contract. Once the smart contract is deployed, the DeFi app can run autonomously, requiring minimal or no human intervention. Smart contracts govern all financial services.&nbsp;</li>



<li>Anyone can create and use the DeFi app. Unlike the traditional financial sector, there are no dispatchers or accounts that require complex forms to work with. Through wallets, users interact directly with smart contracts.</li>



<li>New DeFi apps can be created by combining other DeFi products (e.g. stablecoins or exchanges). This feature of DeFi is similar to a model in which a given structure can be assembled in various combinations. In addition, most of these apps are available to any user.</li>



<li>Decentralized finance also provides an adaptable user experience. If you don&#8217;t like the app interface, you can create your own. Smart contracts are like an open API for which anyone can build apps.</li>
</ul>



So, DeFi refers to a new financial system built on blockchain technology. In DeFi, apps are created using smart contracts on a blockchain, allowing for control and management of financial services or transactions without the need for third parties.&nbsp;



The DeFi ecosystem also consists of crypto assets, such as tokens, and stablecoins. Users&#8217; funds are stored in digital wallets. All transactions here are quick to execute, there is no long chain of brokers. This is convenient for deposits and lending. For example, the lender doesn&#8217;t have to share the profits with the bank, which accepts deposits at one interest rate and gives loans much higher.



<h3>Some disadvantages of DeFi</h3>



However, despite the many advantages, such financial services on blockchain technology also have their drawbacks:



<ul>
<li>One of them is the low performance of the system. This is because blockchains are slower than their centralized counterparts, requiring additional product optimization.</li>



<li>Another drawback is the high risk of user error. These apps transfer responsibility from intermediaries to users, which can be a negative aspect. Developing solutions that can minimize the risk of error is particularly challenging when products are deployed on top of a blockchain.</li>



<li>One more disadvantage is that development control is in the hands of one team. This problem is not always relevant, as some platforms involve working with users on improvements, but it is faced by many. In particular, challenges arise at the point where responsibility is delegated to the community.</li>
</ul>



In addition, this ecosystem is also characterized by instability. Finding the most appropriate app can be difficult, and users must have a certain skill set to choose the best option.



<h2>What does DeFi do?</h2>



DeFi&#8217;s primary goal is to change the conventional financial system, which relies on centralized institutions to facilitate transactions. Thanks to these technologies and open-source DeFi protocols, more people have access to new financial services, exchanges, and platforms. DeFi also helps users earn money on cryptocurrency assets and save on transaction costs. To make it easier to understand, let&#8217;s look at all the DeFi uses and how it works:



<ul>
<li>Generate ongoing income and rewards on your cryptocurrency by lending it out instead of receiving a monthly payout.</li>



<li>Secure a loan instantly and without the need for extensive paperwork, including access to ultra-short-term loans that are not available from traditional institutions.</li>



<li>Engage in P2P trading of selected cryptocurrencies, similar to buying and selling stocks without a brokerage intermediary.</li>



<li>Allocate your cryptocurrency holdings to alternative savings accounts and earn higher interest rates compared to traditional accounts.</li>



<li>Take advantage of long or short positions on specific assets, similar to the crypto counterpart of stock options/futures.</li>
</ul>



Let&#8217;s also talk about other ways to use this technology. You already know that stablecoins are cryptocurrencies whose value is tied to a fiat asset. MakerDAO, for example, offers another model of stablecoins. The issuance pattern of Dai&#8217;s stablecoins can be compared to gold-backed money. The distinction is that ETH cryptocurrency is used instead of gold.



Now let&#8217;s talk about exchanges, in this case, DEX (most people today have confidence only in these exchanges). It is a decentralized exchange, which doesn&#8217;t keep funds and users&#8217; info on exchange servers. Such an exchange acts solely as a platform for matching orders to buy/sell cryptocurrencies.



The system of these exchanges works in such a way that each transaction is conducted between users directly, and the exchange doesn&#8217;t access/store the crypto of its clients. Such exchanges offer a new model of crypto trading and exchange. One of the most successful and actively developing decentralized exchanges is Uniswap.



DeFi is also used to create prediction markets, services, and games (items in these games are usually non-fungible tokens that can be sold). The number of these projects is steadily growing. Some DeFi protocols enable liquidity mining and yield farming. The last concept refers to any action aimed at obtaining crypto for some kind of activity. It can be giving or taking credits, providing liquidity. Farming has gained a lot of popularity because of the opportunity to earn a good income.



<h2>What is the total value locked in DeFi?</h2>



Before you try to make money on a project, you need to analyze how dangerous it is to invest tokens or other digital assets there. This is where the TVL can help. One indicator of a project&#8217;s sustainability is how much funds other users currently have in its contract. Let&#8217;s understand what TVL is and why you should always pay attention to this indicator.



TVL shows the amount of blocked or frozen crypto funds on the project&#8217;s smart contract or liquidity pool. In other words, when you see the TVL abbreviation, it means how much cryptocurrency is currently invested in that particular project. The higher the number of funds, the better and safer it is for the potential investor.



With a high TVL, there is no risk of a sharp collapse of staking/farming. There will not be a situation where multiple users who have invested their tokens will take them out, sell the accumulated cryptocurrency and leave you with nothing. The more frozen tokens — the more people are interested, supporting, and developing this crypto project.



<figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="960" height="640" src="https://api-blog.alphaguilty.io/wp-content/uploads/2023/03/image-18.png" alt="" class="wp-image-1156" srcset="https://api-blog.alphaguilty.io/wp-content/uploads/2023/03/image-18.png 960w, https://api-blog.alphaguilty.io/wp-content/uploads/2023/03/image-18-300x200.png 300w, https://api-blog.alphaguilty.io/wp-content/uploads/2023/03/image-18-768x512.png 768w" sizes="(max-width: 960px) 100vw, 960px" /></figure>



<h2>Conclusion: how does DeFi challenge banking?</h2>



In a world where states are trying to centralize all transactions, this technology comes in handy. Now DeFi offers many of the same services as banks, including earning interest, borrowing/lending, buying insurance, trading derivatives/assets, and more. However, this technology is faster, more efficient, and doesn&#8217;t require extensive paperwork or a third-party intermediary in transactions.



Today DeFi could provide financial services and transactions that are more accessible, and inclusive. All applications are accessible to anyone with a smartphone or computer. This eliminates the need for a physical bank branch and allows people to participate in financial activities from anywhere in the world. Now, cryptocurrency is opening up new opportunities for innovation and growth in the financial area. So, this is a real contrast to ordinary banking, where a central government controls the system.



<h3>Is Bitcoin a decentralized finance?</h3>



BTC is considered a decentralized digital currency, but it is not a comprehensive DeFi on its own. However, some DeFi applications may use BTC as a form of collateral or payment.

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="576" src="https://api-blog.alphaguilty.io/wp-content/uploads/2023/03/Aptos-blockchain-—-Claim-free-tokens-on-Aptos-airdrop-1024x576.jpg" alt="" class="wp-image-1128" srcset="https://api-blog.alphaguilty.io/wp-content/uploads/2023/03/Aptos-blockchain-—-Claim-free-tokens-on-Aptos-airdrop-1024x576.jpg 1024w, https://api-blog.alphaguilty.io/wp-content/uploads/2023/03/Aptos-blockchain-—-Claim-free-tokens-on-Aptos-airdrop-300x169.jpg 300w, https://api-blog.alphaguilty.io/wp-content/uploads/2023/03/Aptos-blockchain-—-Claim-free-tokens-on-Aptos-airdrop-768x432.jpg 768w, https://api-blog.alphaguilty.io/wp-content/uploads/2023/03/Aptos-blockchain-—-Claim-free-tokens-on-Aptos-airdrop.jpg 1200w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



Aptos blockchains have generated serious hype in the crypto space, but is it that good? Aptos blockchain, created by a team of more than 350 developers, aims to reinvigorate the L1 with new ideas for consensus mechanisms, blockchain security, performance, and decentralization.



If you look at Aptos blockchain now, it&#8217;s the most hyped crypto project in recent memory. In a moment, we will discuss Aptos, APT tokens, and Aptos airdrops in more detail.



<h2>What is Aptos?</h2>



Aptos is a blockchain platform based on the Aptos BFT consensus algorithm. The project was founded by Aptos Labs, the team includes a staff of Diem (blockchain designed for Meta). Aptos Labs use a unique programming language called Move to create smart contracts.



What&#8217;s more, the Aptos Labs team raised $350 million in investment in 2022. According to Aptos Labs, the use of special execution technology allows the Aptos blockchain to achieve speeds above 160,000 operations per second. In addition, Aptos Labs engineers claim the delay is less than a second.



<h2>How to get Aptos crypto token</h2>



Aptos has a native APT crypto token, an airdrop was conducted among Aptos community members in October 2022. According to Aptos Foundation, a total of 20,076,150 APT tokens were issued to more than 110,000 users.



Today you can get Aptos tokens on major crypto exchanges like Coinbase. However, there is another option with AlphaQuest. All you have to do is complete the quests for a chance to win a second-wave crypto retrodrop and get some Aptos tokens.



<h2>What makes Aptos special?</h2>



Aptos is designed as a flexible, easily updatable platform for the ever-changing Web3 market. The MoveVM provides the interaction of users, applications, and smart contracts on the network.



In addition, the modularity of Aptos allows the network to be broken down into conditional segments for rapid deployment of applications and new mechanisms for using Web3 solutions. It also provides the ability to test protocol-level updates without having to shut down the network.

LayerZero

What is Layer 0 protocol (Layer Zero)?

How does LayerZero protocol work?

Who is the team behind LayerZero?

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