Store digital promises in an Ethereum DApp: A basic breakdown of how decentralized applications work.

A Semi-Basic Breakdown of an Ethereum DApp

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Over the last few years cryptocurrency has seen an influx of adopters that have found themselves in a new space with a new technology. Satoshi Nakomoto created Bitcoin with the goal of decentralizing money. For some people, crypto is viewed strictly as a speculative sport that is labeled with great risk, warnings and rewards. For others, its the first time in human history that we are able to control our own wealth in a decentralized manner.

A Few Examples of DApp Use Cases:

1. Legal contracts

2. Property deeds

3. Shares

4. Votes

5. Digital Collectibles

6. Crowdsales

7. Gambling

6. Agreements

The term cryptocurrency describes digital currency or tokens issued on a distributed public ledger, known as the blockchain. The blockchain in short is a network of computers that verify funds and transactions independent from any government, entity or centralized bank system. Hence the term ‘Decentralization’ which means not controlled by any one person or authority.

Although the concept came to light attached to a cryptocurrency, Bitcoin to be specific, the blockchain technology can be applied as far as innovation permits. In 2013 The Theory of Decentralized Applications was published as a README.md document on Github that broke down exactly what a Dapp is and how to identify the different types.

There are three classification of DApps

Type 1 — A Decentralized Application that has its own blockchain (eg: Bitcoin)

Type 2 — A Decentralized Application or protocol, that allows you to use the blockchain of Type 1 to create tokens (eg: Omni Protocol, Waves)

Type 3 — A Decentralized Application that uses the protocol of Type 2 but allows developers to build an application that interacts with Type 1 and uses the tokens from Type 2 in order to function. (eg: MaidSafe, Ethereum)

For the purpose of this article — I will be discussing ‘Type 3’ DApps. At the moment the Ethereum blockchain provides the most seamless integrations of DApps and users. In 2014 Vitalik Buterin posted a blog entitled DAOs, DACs, DAs and More: An Incomplete Terminology Guide. The article touched on how Type 2 and Type 3 DApps fit within the Ethereum ecosystem.

Despite using the same technology as a cryptocurrency, a DApp (pronounced Dee-App) or Decentralized Application is NOT a cryptocurrency. For starters, a key differentiation between a cryptocurrency and a DApp is that a DApp does not have to be financial. It is up to the developers what to put inside this shell. I use the word shell to describe Ethereum’s DApps because you are able to store information within the application on the back end which users can interact with on the front end.

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A basic DApp is made up of a few parts:

1. A Smart Contract — The smart contract is your ERC-721 or a similarly structured code. Smart contracts allow you to exchange value (money, property, etc) in a direct way excluding the need for a middle man.

2. A UI & Server — The User Interface or UI is the medium a DApp uses that will allow people to interact with your smart contract and its contents. You can even host your website on a decentralized server called an IPFS

3. Web3.js — Also know as the Ethereum JavaScript API which is a collection of libraries that allow your to interact with an Ethereum Node.

After coming across the ERC-721 and the ERC-821 open source code on Github, I found myself again, becoming slightly obsessed with the blockchain space. For me DApps expanded some of the limits that I though most cryptocurrencies had. They allow you to utilize blockchain databases with real life situations.

Although ERC-721 Tokens are heavily based on the ERC-20 Token standard, a ERC-721 Token was created to be a non-fungible token backed asset (which means it cannot be divided into fractions like money or bitcoin can because it represents something 1 of 1.) The ERC-821 token standard came later and was named the ‘Distinguishable Assets Registry’ or DAR for short. Since NFTs are capable of storing instructions within their smart contracts that are executed once the requirements written by the developer are met, many have started experimenting with DApps.

StateOfTheDapps is a great site to find a ton of DApp based projects.

One of the most popular DApps that uses Ethereum blockchain and the ERC-721 code is a collectible styled game called “Crypto Kitties.” The basic idea of the Crypto Kitties is they are digital collectibles whose smart contracts can interact with one another in the form of “breeding”. According to the DApps “White Papurrr” the creators receive 3.75% of all sales made from the Kitties. The creators have managed to pull in over 300,000 sales with well over $25 million in revenue. One of the most expensive kitties created on this DApp sold for $110,707 USD in December 2017.

Crypto Kitties was a novelty approach to a new technology that can eliminate massive fees, intermediaries and the lack of trust that tons of people and companies face. When the term ‘Smart Contract’ was coined by Nick Szabomore than 20 years ago, he described the contracts as being “a set of promises agreed to in a meeting of the minds.” He also predicted it would change the way we view traditional contracts as technology advanced.

DApps are a way that we can digitize promises in a free market economy.

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An Honest Review and Quick Setup of The Digital Bitbox Cryptocurrency Wallet

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I attended a Trading Seminar in LA hosted by a friend named Tone Vays, where I got my hands on a Digital Bitbox Hardware wallet, which was cool because I already have a few Trezors and Ledgers and I love testing new crypto products… especially wallets.

Did i mention I am a huge fan of cold storage?

Prior to my mini collection of hardware wallets, I used to store my long term Bitcoin holdings using paper wallets. Paper wallets are still one my favorite way to store or even gift cryptocurrency.

I appreciate the minimalistic approach to this wallet, a flat brown box with 2 items inside, a USB styled wallet and a mini SD styled memory card. No wires or chargers or even paper instructions.

The Installation + Setup

I’ve installed many of plenty of programs… apps… and so on, setting up this wallet was done in under 5 minutes.

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The front flap of the packaging directs users to start by logging on to their website and downloading the desktop app @ (https://digitalbitbox.com/start ), once on the installation page you have the option to download the application on Windows, Mac OS, Linux and using the Source Code once you’ve finished installing Digital Bitbox UI you will be able to set up your device.

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The download should only take a few minutes. Once you click ‘finish’ you will be prompted to create a wallet with a name and a password. NOTE: That password is important! *Please make backups of this password and all passwords and seed words for your crypto wallets. (this wallet doesn’t have seed words)

You can also back up your device is by using the SD card that comes in your Digital Bitbox package.

 

Simple User Interface

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Primary Selections –
1. History – List of sent and received transactions
2. Receive – Displays QR code and Wallet address
3. Send – Displays options to send Bitcoin
4. Options
5. Multi-Sig Wallet

A video walk-through to test if its easy to receive crypto on a Digital Bitbox wallet.

Which…. It was.. It took about 4 minutes for my transaction to show in my ‘receive’ tab. As I mentioned in my video, it’s a simple hardware wallet for people who like plug and play set ups. The device itself is kind of cute, Trezors are for some reason one of my favorites design wise but I do appreciate the convenience of a USB styled wallet.

I love products with simple and clean user interfaces so this is a plus for me.

Synopsis: I think the Digital Bitbox is a great wallet especially for starters. It has a durable design and easy to use interface. The fact that it is almost plug and play ready makes it handier than most wallets. The lack of seed words might be a minus feature for some.

Digital Bitbox only supports Bitcoin and Ethereum as of now.


twitter: @BarbieBuysDips

shop: Buy The Dip

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How I Make Money Selling Bitcoin – Mini Guide

 

Paxful is a peer-to-peer market where anyone can list and sell their bitcoins. Think of it as eBay for bitcoins except you control how you get paid. There are over 300 ways to sell Bitcoin on Paxful.

 

A 2 Minute Video On Paxful

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The top 5 most popular payment methods might even be able to get you started as a seller today. If you don’t see a payment method that you want to accept listed on Paxful you can submit it to be added to the categories. There are categories for everything from Xbox Live cards to Cash by Mail.

The general ‘profit rule’ is the bigger the risk, the more sellers charge for the exchange. I recommend sticking to low risk trades especially as a new seller.

Selling Bitcoin for cash can be a little side gig or even a stay at home opportunity. So when people ask me how to make money quickly from their bitcoins I tell them about Paxful. Legacy sellers and top traders make a few hundred to thousands a week.

Of course there are tons of ways to buy and sell bitcoins, Localbitcoin, Kraken, bitrex, coinbase, etc.. but since Paxful is what got me into crypto, I figured pass on what I’ve learned.

So as promised here is my breakdown: Selling Bitcoins on Paxful.

What is the goal of a Paxful Seller?

The goal of a Bitcoin seller on Paxful is to make a profit off of the sale of bitcoin. So as an example;

If one Bitcoin is valued at $3000, as a Bitcoin Seller if you were to charge 3% to exchange your Bitcoins you could make $90 from that sale.

Since this is a decentralized industry and Paxful is a peer-to-peer exchange you are free to charge whatever you’d like.

Also keep in mind, as a seller you have to pay attention to the rate you buy bitcoin at. From my experience, there are always ways to make gains selling bitcoin even if you start at a loss point (Charge a higher percent to cover your loss) however, if you buy bitcoin low and sell when bitcoin is a bit higher, you make money two ways.

How Much do Sellers Make on Trades?

Sellers can easily make 4%-10% per sale. I’ve seen sellers make more than 250% on a single trade.
It all comes down to demand and the methods of payments that you accept. I’ve experimented with a lot of methods on the site, learned about the safe ways to sell and messed up a bit dealing with the risks associated.

When it comes to risk assessment on Paxful the two main issues you want to be aware of are the scammers and the chargebacks. (Usually the scammer is the cause of the chargeback)

A ‘chargeback‘ is when you sell bitcoins for a payment method other than cash and after the exchange is done, the buyer chargesback the payment, or reverses it. Leaving you with no bitcoin and now no money. So it’s imperative to your success as a seller to keep them at a minimum.

How to avoid chargebacks?

•Avoid doing high risk trades.
•If you do them vet your buyers.
•Only take small amounts.
•Make sure the buyer is the owner of the payment method.
•Make sure pictures are not photoshopped.
•Make sure gift cards were purchased with cash by requiring the receipt.
•Avoid large risky trades.
•Never release your coins from escrow before confirming/receiving your payment.
•Always double-check everything.
•You always reserve the right to cancel trades if someone is fishy.
•Look at the buyers feedback and trade history for red marks.

As you get more experience in selling on paxful experimentation with the payment methods is a good thing, just keep in mind the general rule of any investment —
Never put in more than you can risk to lose.

 

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WesternUnion/MoneyGram

What You Need To Sell: An ID To Pick up Your Money Transfer

Cash Bank Deposit
What You Need To Sell: A Bank Account or Credit Union That Accepts Walk In Cash Deposits from Non-Members.

PayPal
What You Need To Sell: A Verified PayPal Account in Good Standing.

Visa/MasterCard Gift Cards
What You Need To Sell: A Credit Card Processor

Cash in Person
What You Will Need To Sell: A mobile phone or tablet that can access Paxful

Once you decide what payment method you want to accept and you have bitcoins in your Paxful wallet, its time to create an offer. This is pretty much an advertisment for your bitcoins. A buyer contacts you based on your offer and you message them with your seller instructions.

How To Create an Offer

1. Log in your Paxful account and go to your Dashboard
2. Create New Offer 
3. You then select I want to Sell Bitcoin 
4. Choose the currency you want to accept,
5. In payment method type in Western Union or MoneyGram.
6. Enter your % markup $$
For WesternUnion and MoneyGram
Generally markups for these methods are between 4% and 13%.
7. Select your minimum trade amount and maximum trade amount
Or select predetermined amounts.
8. Your payment window is how long the trade is open before it
automatically cancels. WesternUnion and MoneyGram trades
take between 30 minutes to90 minutes
depending on how fast the buyers send and you pick up.
9. Write up your *Offer Terms* these are important.
They are shown to the buyer before they open the trade to show what’s
required and what to expect when trading with you.
For Western Union and MoneyGram terms can say things like
– When the trade is opened, type “Hi”
I will send you the name, city and state to send payment to
-Take a Clear Picture of your WesternUnion
receipt with the MCTN circled.

-Type Out Full Name, City and State used to send.
– Allow me XX minutes to pick up the payment, once payment is
received I will release Bitcoin from Escrow.

-If directions are not followed I reserve the right to refuse trade.
In trade instructions you can reiterate your terms and/or give the
information they need to send you cash.
10. Then click Create Offer.

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