Tag Page finance

#finance
Jennifer Howard

🧵prettier charts ≠ better data

1/ DeFi depends on oracles. Without them, protocols are flying blind. But here's the problem: Oracles are not just data feeds. They are systems of trust. 👇 2/ Price oracles don’t just report the truth — they decide when it’s true. A 15s delay? That’s the difference between a healthy liquidation or a protocol exploit. Most hacks? Start with the oracle. 3/ Compare: Chainlink: secure, decentralized, but slow and costly. Pyth: fast, low-latency — but updates only on trades, not time. UMA: optimistic oracle — fast by default, but challengeable. Each one trades off speed, cost, and trust assumptions. 4/ You can’t just pick an oracle. You have to design around it. If your protocol assumes real-time data, you'd better be damn sure your oracle can deliver. Otherwise? Someone will front-run you. Or drain your vault. 5/ Better charts don’t mean better data. Look deeper. Because in DeFi, whoever controls the oracle... controls reality. #Finance #MakeMoney

🧵prettier charts ≠ better data
Jennifer Howard

🧵modular blockchains aren't legos — they're supply chains

1/ You’ve heard it before: "Modular blockchains are like Lego bricks — stack what you need." Nice metaphor. But misleading. Because real modular systems have trade-offs, dependencies… and bottlenecks. Let’s go deeper. 👇 2/ In a true modular architecture, tasks like execution, settlement, data availability (DA), and consensus are separated across layers. This gives flexibility — but at the cost of coordination. Think less "toy bricks" — more like a supply chain with delays, interfaces, and failure points. 3/ Take Optimism and Celestia. Optimism: Executes on its own rollup, settles to Ethereum, and may use EigenDA for data. Celestia: Does only data availability. Other chains must bring their own execution logic. Same “modular” claim. Totally different stack. 4/ The catch? You can outsource performance but not outsource responsibility. If one piece fails — say, a DA layer goes down — the whole chain can stall. That’s why coordination and trust assumptions matter more than ever. (And why shared sequencers are a hot topic.) 5/ Modular is powerful. But not magic. Before you ape into a modular L2, ask: Who handles data? Where’s execution verified? What happens on failure? Because in this Lego box, some bricks break. #Finance #MakeMoney

🧵modular blockchains aren't legos — they're supply chains
Diana Armstrong

🧠 Diana’s Guide: Questions About Virtual Currency

✨ You’re new here? Perfect. Let’s break down some of the biggest questions people have when stepping into crypto. 📍1. Where does the credibility of crypto come from? Will it collapse? 🔹 Code Rules Bitcoin has hard-coded rules: Only 21 million will ever exist New coins are mined every ~10 minutes Rewards decrease over time These rules are public and can't be changed. 🔹 Network Consensus If enough people use it and agree on its value, it holds worth—like any currency! 🔹 Decentralized Operation There’s no CEO. No central bank. Just a global network running the same software. 🔹 Transparency Every transaction is recorded on the blockchain—open for anyone to see. ❗But can it collapse? Yes, and it has. Projects like LUNA or FTX collapsed due to bad design or fraud. So don’t believe “every crypto is safe.” Only strong, decentralized projects like Bitcoin or Ethereum have real staying power. 🎮 2. How are items turned into NFTs in games? In blockchain games: Weapons, skins, pets = can be minted as NFTs NFTs give true ownership to players You can trade them without needing the game company’s permission 🧪 Example: You win a rare sword. The game turns it into an NFT. You sell it on a market. Boom. 💡 But not everything should be an NFT. Good NFTs: rare skins, event tickets, digital certificates. Bad NFTs: random screenshots, low-effort images, copy-paste junk. 💵 3. Do cryptocurrencies tie to the US dollar? Most crypto like BTC and ETH = ❌ not tied to USD They float based on market demand. Prices go up and down. But... there’s a type called stablecoins, and these are tied to USD: Stablecoin How it works USDT/USDC Backed by real dollars in a bank DAI Backed by crypto collateral UST (failed) Algorithmic, no real backing ❌ They help people use crypto like dollars—stable for payments and trading. 🌐 4. In the metaverse, does money need to link to real-world currency? Not always. You might use in-game tokens like MANA, SAND, or ETH inside virtual worlds. But once you want to cash out (buy groceries, pay rent), you'll need to convert to USD (or your local currency). ⚠️ If USD collapses someday? Crypto might also take a hit—because many coins are still priced in dollars. This is a real risk people are thinking about. 🕹 5. In GameFi, who gives out the money and how do companies make profit? GameFi = games + finance 👾 How do players earn? NFTs and tokens come from smart contracts (pre-coded rules) You earn them through gameplay: mining, battling, trading 💰 How do companies earn? Selling NFTs early (like land or characters) Taking a cut of every trade Holding their own tokens Selling premium features Launching governance tokens (used for voting, also tradable) 🚨 But! If no new players come in, or if token prices drop… → That’s how many GameFi games collapse. So, only games with real use cases and long-term plans are sustainable. ✅ To Summarize: You asked... What it really means Can I trust crypto? Depends on decentralization + code Can it collapse? Yes. Many already have. What’s the dollar link? Crypto still priced in fiat today Who gives out game rewards? Smart contracts + coded logic How do GameFi firms profit? NFT sales, token holdings, etc 🙋‍♀️ New to crypto? Don’t worry, Diana’s here to break it down for you—one post at a time. Follow along for more beginner-friendly guides. 🌸 #Finance #Make Money #crypto #Economic #NFTsForBeginners

🧠 Diana’s Guide: Questions About Virtual Currency
Tag: finance - Page 10 | zests.ai