**Tokenization is the process of creating digital fragments of real-world assets (RWA) with low liquidity, allowing anyone - from institutional investors to individual retail investors - to own a portion of assets such as real estate, artworks, or commodities at a low cost. This process is optimized with blockchain technology, ensuring that each part or token of the asset is securely and transparently recorded, making it nearly impossible to counterfeit. This enhances the liquidity of assets, making them more accessible, and allowing fractional ownership, thereby enabling more investor groups to participate in the market.**

Tokenization is not merely a passing trend; it will reshape how we perceive ownership and investment in the digital age. Data published by DefiLlama indicates that by 2023, the total value locked (TVL) in RWA protocols will exceed $6 billion, demonstrating the immense potential in this domain that is far from being realized.

**So, how do RWA protocols tokenize real-world assets?**

At its core, tokenization involves transforming the rights of real-world assets into digital tokens on a blockchain. Encoding real-world assets into metadata or 3D internet is a process that blends physical and digital realms, bridging the gap between tangible assets and their ability to be traded, stored, and transferred in the digital world.

Below is an analysis of each step in the tokenization process within the metaverse:

Asset Identification: The first step is to identify assets in the real world for tokenization, such as real estate, commodities, artworks, or collectibles. These assets must have clear value and ownership rights.

Valuation and Verification: Assets must undergo a valuation process to determine their accurate value and decide whether they should be divided into digital tokens. Verification ensures that the assets are legal and that the owner has the right to tokenize them.

Legal Structuring: Subsequently, legal entities will structure an asset into a token-friendly format, ensuring compliance with current legal requirements and establishing the owner's rights to tokenize it.

Choosing a Blockchain Network: The next step is to decide on a public or private blockchain network for token issuance. For example, Ethereum is popular for supporting smart contracts and has a large developer community.

Token Creation: Tokens representing ownership rights or a portion of real-world assets are created using blockchain technology. These tokens are unique, indivisible, and encrypted for security. Determining whether tokens will be fungible or non-fungible, selecting appropriate token standards (such as ERC20 or ERC721), and establishing core token attributes are addressed in this step.

Smart Contract Development: Smart contracts are programmed to manage ownership and transaction terms of tokenized assets, providing a robust, secure, and transparent framework for managing encrypted assets. These are self-executing contracts with agreement terms written directly into code. Smart contracts automate many processes, including dividends, voting rights, and buyback options. For example, concerning real estate, smart contracts play a crucial role by automatically distributing dividends to token owners, rationalizing what would otherwise be a manual and complex process. Besides operational mechanisms, smart contracts also serve as tools to ensure legal compliance, strictly adhering to regulations, including KYC (Know Your Customer) and AML (Anti-Money Laundering) standards.

Launch and Trading: Tokens are released on the blockchain platform, making them available for trading on secondary markets. Investors can buy, sell, or trade tokens, with each token representing a share in a real-world asset.

Management and Compliance: Continuous management of tokenized assets is crucial, ensuring compliance with regulations and legal frameworks.

**Tokenizing real-world assets offers significant opportunities to restructure financial infrastructure into a safer, more transparent, and efficient auxiliary foundation to address critical interest conflicts and risk management challenges associated with traditional financial infrastructure. The road ahead for the RWA field will continue to pose many challenges, but the potential for widespread adoption remains greater and more worthwhile than any challenge to be faced.**


Join BHO Network in exploring Real World Asset (RWA) tokenization and the process of tokenizing real assets through today's article!

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RWA: HOW TOKENIZE REAL ASSETS?

**In the spirit of building shared values and fostering brand development for both parties, BHO Pad and DApp Centre have officially become communication partners.**

Within the framework of this collaboration, BHO Pad and Dapp Centre will share their multifaceted resources including technology and marketing services, while also connecting partners to expand the influence of both sides.

Dapp Centre is one of the leading Web3 marketing companies, offering diverse communication services across various platforms such as X, Telegram, Youtube, and more. Dapp Centre supports projects in building brands and communities, aiming to achieve the necessary coverage for their products. Established since 2020, Dapp Centre has assisted hundreds of different Web3 projects in various fields, successfully implementing marketing strategies.

BHO Pad is a multichain launchpad within the BHO Network ecosystem. BHO Pad aims to support crypto startup projects in raising capital through public sale rounds, while also enabling investors to access early investment opportunities in potential projects, thus garnering attractive and secure profits. Additionally, BHO Pad provides marketing solutions to assist projects in building their brands as a launching pad for their products.

**Through this collaboration, BHO Pad and Dapp Centre can expand their partner networks, further improve and develop their resources, and support the development of both parties.**


BHO Pad and DApp Centre have officially become communication partners.

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BHO PAD COLLABORATES WITH DAPP CENTRE IN COMMUNICATION

**BHO Pad emerges as a Multichain Launchpad platform, offering critical support to projects in mobilizing capital through Public Sale phases while providing comprehensive assistance regarding expansion strategies and product development. Furthermore, BHO Pad enhances user experience by facilitating the incorporation of diverse blockchain networks, thus enabling participants from different ecosystems to access IDO investment opportunities effortlessly and securely.**

Investors are invited to commence staking BHO on BHO Pad immediately to secure an enticing IDO slot on the platform!

**Instructions for Staking on BHO Pad:**

**Step 1:** Navigate to bhopad.io. For those utilizing a 3S Wallet, simply enter bhopad.io in the search field or swiftly access BHO Pad from the Recommended section.
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**Step 2:** Select the 'Staking' option.
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**Step 3:** Opt for 'Connect Wallet' to establish a wallet connection. It is advisable to utilize the 3S Wallet for optimized compatibility with the platform.
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**Step 4**: Within the Staking interface, users can ascertain their Staking level and the quantity of BHO staked. Scrolling down reveals various Staking packages, each with distinct durations and APRs. Choose the desired amount of BHO for staking and then click on 'Stake'.
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'Approve Token' to authorize your wallet to permit the staking of tokens into the smart contract.
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**Upon signing for permission, you will have successfully engaged in Staking on BHO Pad. Staking BHO on BHO Pad not only enables users to generate a passive income but also ensures a guaranteed slot for IDO investment on BHO Pad! Thus, please visit bhopad.io and commence your staking today!**


In this article, BHO Network will guide investors through the steps to easily navigate the process of participating in Staking on BHO Pad!

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GUIDE TO STAKING ON BHO PAD VERSION 2

**In the crypto market, two cryptocurrencies consistently lead in both market capitalization and influence: Bitcoin (BTC), the world's first blockchain-based digital currency, holds the largest market share and Ether (ETH), the native token used in the Ethereum network, ranks second. Let's explore the differences between these two largest cryptocurrencies in the world today.**

**Differences between Bitcoin and Ethereum**

The primary distinction between Bitcoin and Ethereum lies in their design purposes. Bitcoin is crafted as a means to facilitate relatively simple digital payments, while Ethereum is a network supporting a much more complex financial ecosystem.

Bitcoin (BTC) and Ethereum (ETH) share many similarities. Both are cryptocurrencies, collectively commanding a significant portion of the overall cryptocurrency market capitalization.

Fundamentally, both Bitcoin and Ethereum are based on similar blockchain technology and attract numerous investors. They can be traded on virtually every cryptocurrency exchange.

However, upon closer comparison of Bitcoin and Ethereum, several fundamental differences emerge:

Bitcoin remains the highest-valued cryptocurrency.
Bitcoin has seen a warmer reception from traditional finance, evidenced by the approval of bitcoin spot ETFs in 2024.
Ethereum can support smart contracts, software programs that execute automatically upon meeting certain conditions. Bitcoin lacks this capability.
Bitcoin employs a resource-intensive method called Bitcoin mining to verify transactions. Ethereum initially used a similar protocol but transitioned to a process called Staking, which has less environmental impact.

Bitcoin is recognized as the first cryptocurrency. It was launched in 2009 by the mysterious developer Satoshi Nakamoto. Bitcoin paved the way for thousands of other cryptocurrencies. It was developed as a secure digital payment method without the need for a central arbiter like a bank.

While it has not yet achieved widespread adoption as a form of payment, Bitcoin has become a popular investment asset, even offered in some retirement plans like 401K. Moreover, bitcoin spot ETFs were approved in 2024 and issued by some of the world's largest financial organizations, including BlackRock, Fidelity, and Invesco.

Ethereum was released in 2015, a product of developer Vitalik Buterin, with the lofty goal of decentralizing the economy.

The biggest difference is that a developer can write programs directly interacting with the Ethereum platform, enabling the provision of services that Bitcoin cannot. For example, Ethereum supports a range of lending and trading protocols, as well as games and various content.

Ethereum, also known as ETHER, can be used to pay for services or transaction fees on the network. Additionally, Ethereum is gradually following Bitcoin's footsteps in being recognized as a mainstream investment vehicle, a path perhaps made more challenging because unlike Bitcoin, Ethereum lacks a company behind it.

**Choosing Bitcoin or Ethereum?**

With the largest market capitalization and holder count, Bitcoin has established itself as a preferred store of value asset. With the advantage of having a fixed supply issued over a controlled timeline, Bitcoin is an efficient investment vehicle for many and tends to be less volatile than Ethereum. Bitcoin has built a reputation for decentralization and security but faces criticism for its energy-intensive Proof of Work (POW) system.

Ethereum processes more network transactions than Bitcoin due to its multifunctionality. Ethereum's technology is on a different level compared to Bitcoin, attracting more attention to the blockchain technology aspect and accelerating Mass Adoption. With a smaller market capitalization among the top two cryptocurrencies, Ethereum historically has been more volatile, but its Proof of Stake (POS) system offers newer security features. Since transitioning to POS in 2022, Ethereum's energy consumption has been significantly lower—much less than Bitcoin's.

**Both Bitcoin and Ethereum have their own distinct advantages. There are things Ethereum can do that Bitcoin cannot; however, Bitcoin remains the king, thanks to its first-mover advantage and possession of a fixed supply. As an investment vehicle, each has its own merits and demerits. That's why many traders prefer to hold both Bitcoin and Ethereum. More importantly, investors can easily and securely hold both Bitcoin and Ethereum in the 3S Wallet.**

________________________________________

3S Wallet is a blockchain wallet product developed by BHO Network, built on three main pillars: Simplicity, Security, and Safety. 3S Wallet has been refined to simplify the interface and operations, providing users with the smoothest and easiest experience. With 3S Wallet, users can connect to Dapps and decentralized derivative exchanges for trading, seizing opportunities while ensuring full control over their assets.

Furthermore, 3S Wallet is currently rolling out a Gift feature with an attractive participation mechanism to help users earn additional income. Anyone using the 3S Wallet can participate in this feature by inviting friends to use 3S Wallet and receive passive income with your own referral system, up to $20 for each successful referral.

Find detailed instructions for 3S Wallet's Gift feature here: https://3swallet.com/en/reward


Let's explore the differences between these two largest cryptocurrencies in the world today!

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BITCOIN AND ETHEREUM: WHAT'S THE DIFFERENCE?

**Restaking, also known as compounding, is a process in which investors reinvest the rewards they earn from staking crypto back into the staking pool to generate additional profits. Staking is the process of locking assets in a cryptocurrency wallet to support the operations of a blockchain network. In exchange for staking, participants receive rewards, usually in the form of tokens, as an incentive to encourage staking, helping to secure and validate transactions on the network.**

With restaking, instead of withdrawing these rewards, investors choose to reinvest them, increasing the amount staked and thus, increasing their potential rewards in the future. This compounding effect can significantly amplify the overall profit generated from staking activities over time.

**Mechanism of Restaking**

For example, on the largest network today, Ethereum: Restaking projects will deploy smart contracts on the Ethereum network so that those who stake ETH can restake their assets on external protocols. These projects will function as a channel through which you can restake your staked ETH tokens, as well as a decentralized delegation market for stakers looking to compound their rewards.

There are 2 methods of restaking:

Native restaking: Allows you to restake your ETH directly for the Restaking protocol.

LSD Restaking: Restaking liquid staking tokens (LST). You can stake ETH on liquid staking platforms like Lido and Rocket Pool. Liquid Staking is less complex and has a much lower minimum stake requirement compared to running your Ethereum validator. Then, you can restake the LST received from these LSD protocols to continue receiving rewards.

**Advantages**

More rewards: The most obvious advantage of restaking for validators is the ability to compound staking rewards by staking on other protocols.

Reducing the initial costs of new protocols: By restaking Ethereum's asset pool, new protocols can economically benefit from Ethereum's security services without needing to start their own validation service.

Maintaining protocol sovereignty: By building on restaking protocols like EigenLayer, protocols will be able to flexibly customize their architecture without having to adhere to rigid rules imposed on the Ethereum layer 2 chain.

**Disadvantages**

Slashing: When you stake ETH, you risk being slashed if the validator behaves maliciously. Restaking increases the risk, and you may lose staked ETH if you engage in harmful activities on the protocol.

Risk to Ethereum's performance: Restaking projects are concerned that with Ethereum's computational power being redirected to secondary networks, there may be computational overload issues for Ethereum's consensus layer.

Centralization risk: Restaking on protocols like EigenLayer may attract ETH stakers with promises of high profits, leading to increased centralization of networks and a decrease in the number of individual ETH stakers.

**While still in its early stages, Restaking is an interesting approach to both network validation and security, as well as how users can positively contribute to both. In particular, restaking Ethereum could set a precedent for how blockchain protocols harness the power of collective participation and pooled economic incentives to shape the future of decentralized finance.**

Join BHO Network in exploring the mechanism, the benefits that Restaking brings, as well as its risks through today's article

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MECHANISM, BENEFITS, AND RISKS OF RESTAKING

**You may have wondered, what are memecoins and why have they become so popular? Memecoins originate from memes, internet jokes and cultural phenomena. Essentially, they are jokes, but in the crypto market, these jokes are incredibly valuable, with the total market capitalization of memecoins reaching the $60 billion mark. Join BHO Network to explore the memecoin frenzy and why they persist.**

Memecoins, as their name suggests, are cryptocurrencies spawned from internet jokes or memes. Initially, no one took them seriously, but through the mysterious power of the internet, some of them became extremely popular and attracted enormous amounts of money. Some notable examples include Dogecoin, Shiba Inu, Floki Inu, and Pepe.

**Why do they have value?**

Memecoins typically don't serve any practical purpose or have any utility. They don't solve real-world issues or advance blockchain technology like some other types of cryptocurrencies. Their value stems almost entirely from hype and popularity. When many people show interest and buy, the prices of these memecoins skyrocket rapidly, but when the frenzy cools down, interest diminishes sharply, and their value plummets just as swiftly.

Investing in meme coins is highly risky because they are unstable and unpredictable. However, with significant exaggeration, profit opportunities can also be significant. Some have made millions from meme coins, while others have lost pursuing those expectations.

Despite lacking utility, memecoins have communities. These communities are fervent supporters, and they are essential for a memecoin to succeed. It can be said that the value of memecoins comes entirely from the community. The more people discuss a memecoin on platforms like Reddit, Twitter, and Telegram, the more attention it attracts, creating a FOMO effect. This effect draws in new investors looking to enter the market, thereby driving up the price of memecoins. Memecoins are particularly popular with younger investors, who accept higher risks, viewing memecoins as a life-changing opportunity.

Another aspect to consider regarding memecoins is their positive impact on the market. Memes spread like wildfire on the internet, and everyone loves memes. For typical crypto projects, marketing teams have to rely on technology to create a story, a vision to attract investors. Memecoins don't need to do that; memecoins themselves are already a story. Additionally, understanding memecoins is not as complex as understanding a typical crypto project; there's no need to delve into whitepapers, technology potential, investors, or roadmap progress. This makes memecoins extremely accessible to entry-level or completely uninformed investors, and from here, funds from retail investors flow into the cryptocurrency market more effectively than any other marketing campaign. That's simply it; memecoins have excellently fulfilled their mission, becoming an indispensable and unique part of the crypto market, coexisting forever with the market.

**Whether love them or hate them, memecoins are an interesting cultural phenomenon in the world of cryptocurrency. As long as there are internet jokes and exaggerations, memecoins are here to stay.** 


Join BHO Network in finding the answer to this interesting topic through today's article.

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ANATOMY OF A MEME: WHY MEMECOIN IS HERE TO STAY

**Restaking is a concept that is increasingly gaining popularity within the cryptocurrency community. This technology refers to an efficient method of boosting capital-efficiency, enabling users to stake the same token on the main blockchain as well as other protocols, thereby contributing to the security of multiple networks simultaneously. While this method offers users more rewards for securing multiple protocols, it also entails facing higher slashing risks.**

The security architecture of blockchain is primarily divided into two types: Proof of Work (PoW) and Proof of Stake (PoS). In the case of PoS networks, assets are committed to the network's security infrastructure through a process called staking. Users stake their assets with a validating node on the network, where the network's security depends on the number of active validators, the percentage of total circulating tokens staked, and how these tokens are distributed across active validators.

To enhance the utility of these staked tokens, restaking protocols have emerged to put them to use. One prominent example of this is EigenLayer, which allows protocols to leverage Ethereum's trusted network without needing to establish their own validation set.

**So, what exactly is Restaking?**

Restaking involves staking an asset again after the initial stake. Restaking assets allows users to stake them on a different staking program or platform, improving the utility of staked tokens and providing owners with additional rewards (though with added slashing risks).

Let's consider Ethereum as an example. The Ethereum network is one of the safest PoS networks due to the density of validators and the allocation of staked assets on these validators. However, as mentioned earlier, staked ETH remains idle within the Ethereum network, prompting the emergence of Liquid Staking Derivative tools, where staked ETH is transformed into LST (Liquid staked tokens) usable in DeFi. Moreover, Liquid Staking Derivative tools have no minimum stake requirement unlike original staking on the Ethereum network, which requires a minimum of 32ETH, enabling smaller investors to participate and benefit from the staking process.

Restaking goes a step further than LSD. Restaking protocols enable other decentralized protocols to use assets staked on Ethereum to improve their own security. Validators and assets committed to this purpose are rewarded according to incentivization terms set by the protocol or platform for hire. Validators and nominator stakers earn rewards from both the original Ethereum network and the network or protocol on which they are restaked.

**The goal of restaking is simple: to provide more value to stakers and other protocols, including the project itself providing restaking resources. Before this technology emerged, staked assets were locked and committed to a single purpose within a single protocol. Restaking has changed this, effectively managing resources in terms of capital. Stakers provide more services with a single asset and earn more rewards for this role, as restaking protocols turn restaked assets into flexible assets that can be used for various investment methods. For assets staked on PoS networks, restaking aims to enhance security across multiple protocols by turning the PoS security layer into a commodity. This means that other protocols and networks can borrow this foundation to develop or reinforce their security. As this idea continues to evolve, we may see more interesting use cases for staked assets through restaking protocols.**


Join BHO Network to learn more about Restaking through today's article!

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WHAT IS RESTAKING?

**Liquid Staking is a new solution and is of interest to many people in the cryptocurrency community. It combines the benefits of staking, including earning rewards, while still providing flexibility for users and the blockchain network, which helps maintain liquidity.**

**However, like any other financial instrument, Liquid Staking also has its own risks and limitations.**

**Liquid Staking concept**

When talking about Liquid Staking, we are looking at two different methods. First, traditional staking requires locking assets in the network to participate in the consensus mechanism and receive rewards. However, these assets are often illiquid and cannot be accessed or traded until the staking term ends.

The second method, Liquid Staking, is the opposite, introducing a tradable representation of the staked asset. These assets often exist in the form of tokens - called Liquid Staking Tokens. These LSTs allow users to enjoy the benefits of staking while retaining the ability to trade and use in DeFi or transfer assets to other users.


**Smart contract vulnerabilities**

The main risk of Liquid Staking Tokens is related to the dependence on smart contracts, which are the basis of the creation and management of these tokens. Any vulnerabilities or errors in these contracts can lead to loss of assets and exploitation by entities with malicious intentions.

To minimize this risk, users need to conduct thorough research and choose Liquid Staking platforms and projects carefully. Choosing smart contracts that are tested and reputable is extremely important to protect their assets.

**Network Security**

Network security is an important factor when participating in Liquid Staking, especially when it comes to proof-of-stake (PoS) networks. Although PoS is known for its energy efficiency and security, there is still a risk of attacks.

A successful attack on the PoS network can result in the loss of staked assets, including liquid staking tokens. To mitigate this risk, choosing PoS networks with updated security features is important. Additionally, maintaining a track record and considering diversifying staked tokens across multiple networks can help mitigate centralization risk.

**Market Volatility**

Market fluctuations can affect the value of liquid staking tokens significantly. These tokens are susceptible to market volatility, which can result in profits or losses independent of staking rewards. This can create a difficult environment for those seeking balance and price stability.

To deal with market volatility, users need to be willing to take risks and carefully manage their portfolios. Diversifying assets and setting stop-loss orders can help minimize the risks associated with market volatility and sudden fluctuations.

**Uncertainty in regulation**

Regulatory and regulatory uncertainty is a challenge for the cryptocurrency industry as regulatory frameworks are evolving around the world. Liquid staking tokens may face scrutiny from regulators, which could impact their availability and use in certain territories. Changes in regulations could create uncertainty for users and platforms.

To counter this, it is necessary to stay informed about cryptocurrency regulations in specific regions and consider platforms and tokens that prioritize regulatory compliance and transparency. This helps users and platforms ensure legal compliance and minimize risks associated with regulatory fluctuations.

**Slashing Risk**

Slashing risk is an important issue in proof-of-stake (PoS) networks, as validators can lose a portion of their staked assets if they take malicious actions. malicious or does not meet network requirements. This may cause losses to users staking their assets.

To minimize this risk, it is important to prioritize validators with a history of trust and strong security. Some PoS networks offer insurance mechanisms to protect against slashing risks. Additionally, there are reputable organizations that offer crypto escrow insurance against staking, such as Munich Re and Boerse, with fully secured staking solutions. This gives users more peace of mind when participating in staking assets in PoS networks.

To choose a trustworthy Liquid Staking platform, you need to consider factors such as security measures, reputation, smart contract audit history, user community, and feedback from the community. Conducting thorough research before pawning your property is important.

**In short, Liquid Staking Token offers an attractive combination of staking rewards and liquidity. Therefore, it is important for participants to be aware of the risks and limitations involved. Risks such as smart contract vulnerabilities, market volatility, regulatory uncertainty, and potential slashing risks highlight the need to perform careful research when engaging with innovative aspect of the cryptocurrency ecosystem. Keeping a balance between the potential benefits and risks is critical to participating in Liquid Staking smartly and responsibly.**


Join BHO Network to learn about Liquid Staking Tokens!

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RISKS AND LIMITATIONS ASSOCIATED WITH LIQUID STAKING TOKEN

**Derivatives, especially perpetual futures contracts (perps), are undeniably the largest sector in the cryptocurrency space, representing a significant portion of the total cryptocurrency trading volume.**

Almost all derivative trading occurs on centralized exchanges. Ironically, while most traders and organizations advocate for decentralized asset values, they operate on centralized servers. In recent years, decentralized exchanges (DEX) built on blockchain smart contracts have emerged. For those familiar with cryptocurrency, DEX like dYdX and GMX have garnered considerable attention and become viable alternatives to traditional centralized exchanges. However, the trading volume and user base of these decentralized alternatives remain a small fraction compared to centralized exchanges.

Perpetual futures contracts are the largest trading instrument in the cryptocurrency market. To grasp the scale, perpetual futures contracts have accounted for approximately 75% of Binance's total trading volume since 2021. Other non-US cryptocurrency exchanges have similar or higher ratios. The story differs in the US, where regulations hinder exchanges like Coinbase and Kraken from establishing a robust derivatives market. It's no surprise that Coinbase recently launched a cryptocurrency derivatives exchange overseas just a few months ago.

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Source: The Block Research, Amber

However, almost all derivative trading volume occurs on centralized exchanges. To understand how centralized volume dominance compares to decentralized volume, consider that the total volume on DEX is usually 10–20% of CEX. In fact, Uniswap's monthly trading volume has exceeded Coinbase's for four consecutive months this year. In contrast, that ratio is only 1–3% for derivative trading volume.

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Source: The Block, Coinalyze, Coinglass, Dune, Amber, based on 7DMA as of June 30, 2023

The main reason for this disparity between spot and perps trading lies in the greater difficulty in creating DEX for perps on par with CEX. While creating a spot DEX might be acceptable (variants of x * y = k) and relatively straightforward, doing the same for derivatives trading is much more challenging due to additional factors such as managing margin requirements, cross-margining, funding rates, leverage ratios, price oracles, insurance funds, etc.

Furthermore, since derivatives are a cash cow for centralized exchanges, competition is fierce. DEX not only have to keep up with CEX but also match the pace of innovation and improve derivatives trading like many major CEX.

To compete with CEX in the derivatives space, DEX needs various improvements such as:

Enhancing UX/UI and system security to increase stability, improving order matching engine, adding liquidation safety nets.
Increasing user capital efficiency, adjusting maker/taker fees, as well as flexible adjustment of funding rates and introducing cross-margining.
Leveraging MEV.
Enhancing liquidity, reducing bid/ask spread.

Although all factors are essential, liquidity is the most crucial aspect of an exchange. Without it, the exchange holds no value for buyers, sellers, or market makers. Most exchanges stagnate or fail due to a lack of liquidity.

All other factors are aimed at improving liquidity on the exchange. For example, cross-margining significantly reduces capital costs for market makers, thus enhancing liquidity. A robust infrastructure allows professional market makers to manage risks when providing bids and asks. Traders also prefer exchanges with high performance and flexibility with protective measures against black swan events.

While surpassing CEX seems unlikely, we believe that perp DEX will gain a significant market share by competing in advantages that CEX cannot replicate, similar to how Uniswap and other spot DEX have garnered attention:

Composability: By bringing DEX infrastructure or parts thereof onto the chain, other DeFi projects can connect to DEX derivatives to create new features.
Decentralization and transparency.
Listing a diverse range of assets.

**In conclusion, DEX could likely emerge victorious by applying strategies and operational models that centralized exchanges cannot mimic. Researchers at Amber Group believe that, with proper development, the perp DEX sector could reach a valuation of over $25 billion.**

**Compared to CEX, the current DEX market structure is still nascent and fragmented. We have every reason to maintain our confidence that the decentralized derivatives sector will continue to develop over the next few cycles.**

Join BHO Network to explore PERP DEX - Decentralized Derivatives and its future in the cryptocurrency industry through today's article.

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THE FUTURE OF PERPETUALS DECENTRALIZED EXCHANGES

**Occurring approximately every four years, the upcoming Bitcoin Halving event once again attracts the attention of investors worldwide. This is because the block reward for mining Bitcoin is set to be halved every 210,000 blocks, reducing the efficiency of the creation rate and introduction of new BTC into circulation. This mechanism is at the core of Bitcoin's deflationary economic model, designed to limit the total supply of Bitcoin to 21 million.**

The reduction in mining rewards raises questions about sustainability in the mining sector, particularly how it can drive the transition to greener, more energy-efficient technologies amid declining profits. Such changes are crucial for the long-term viability of Bitcoin, especially as environmental concerns become a focal point of discussion alongside economic factors.

**Concerns about Bitcoin's energy consumption**

According to the United Nations, the halving of Bitcoin mining rewards has amplified debates over its already high energy consumption, particularly because its associated computational processes consume a significant amount of electricity, much of which until recently has predominantly been derived from fossil fuels.

Critics further argue that if the halving of mining rewards leads to more energy-intensive activities to sustain miners' profits, this could exacerbate Bitcoin's carbon emissions, thus conflicting with many of the United Nations' global sustainability goals.

However, not everyone believes that the Halving will necessarily lead to increased energy consumption and negative pressure on power grids and the environment.

The Halving could increase operational costs for mining companies if the value of BTC or transaction fees does not rise to compensate. This may force some less profitable miners to temporarily halt operations. However, efficient mining companies will upgrade to advanced ASIC rigs to maximize productivity and minimize energy costs. The latest mining equipment tends to be much more energy-efficient in terms of hash rate per watt.

The Halving may contribute to a short-term reduction in energy consumption if mining companies with unprofitable operations shut down, while broader industry encouragement of efficiency and innovation may drive continuous energy improvements.

This transition process may promote more sustainable mining methods, but the speed and scope of this change will depend on factors such as the availability of renewable energy sources, technological advancements in mining equipment, and changes in energy prices.

Many research groups believe that another effect we may witness is a geographical redistribution of miners worldwide. According to their perspective, the allocation of these individuals and organizations may change significantly because several regions worldwide — especially throughout Eastern Europe and Africa — offer abundant and inexpensive renewable energy sources. This could impact energy markets and regulatory frameworks in those areas.

**With advancements in Bitcoin-related technologies, such as the integration of the Lightning Network for payments, further positive impacts on energy consumption and sustainability may be realized. Layer 2 solutions allow transactions to be conducted off-chain, thereby reducing the energy demand while still enhancing computational capabilities.**


Join BHO Network as we explore the impact of Bitcoin Halving on the environment in today’s article.

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BITCOIN HALVING AND ITS IMPACT ON THE ENVIRONMENT

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