Before we can understand zkBNB, we must first understand zk Rollups or zero knowledge Rollups.

What is zk(zero knowledge) Rollups?

ZK Rollups is a Layer-2 solution that performs all calculations and state changes off-chain, i.e. on a sidechain. With this design, a description of the alterations, as well as specific cryptographic proofs proving their authenticity are posted to the Mainnet later.

What is zkBNB?

ZkBNB is based on the ZK Rollup architecture, which bundles hundreds of transactions off-chain and generates cryptographic proofs such as SNARKs to validate them.

This implies that funds are maintained on BSC while computation and storage are handled by Binance's Side Chains, resulting in lower costs and faster performance. zkBNB can achieve the same security as BNB by using zkSNARKs.

So, if you are a developer creating large-scale BSC-based apps with high throughput and low transaction fees, zkBNB is the best infrastructure you can get.

What does zkBNB provide?

Security - With the usage of zkSNARKs, zkBNB has the same degree of security as its L1 BNB Chain.

Seamless Transactions - BNB and BEP20/BEP721/BEP1155 tokens generated on BSC or ZkBNB can easily transfer between the two systems seamlessly.

High TPS - Fast transaction speed and faster finality.

Higher Transparency - If a user believes that his transactions are being censored by ZkBNB, he or she can request a "full exit" operation to withdraw funds at any moment. This implies that consumers can withdraw their money at any moment from L2 to L1.

Conclusion

ZkBNB from BNB Chain is an innovation that aims to have a substantial influence on the development of large-scale BNB Smart Chain-based applications with assured security and transaction speed, faster finality, and much lower transaction fees.

Its debut follows the earlier this year announcement of BNB sidechains, a platform for constructing sidechains within the BNB Chain ecosystem.

The Mainnet is scheduled to launch in Q1 of 2023, Therefore let us hope that it will be a significant milestone in the BSC Ecosystem.

-Alok S K

The ongoing #Ripple vs #SEC lawsuit has been a hot topic in the dynamic world of cryptocurrency. With the case nearing its conclusion, the anticipation within the crypto investing community is palpable. This lawsuit garnered significant attention due to the implications it had for XRP, which was a highly sought-after investment before the market downturn in 2022, which saw it lose more than 70% of its value​​.

Despite this setback, XRP has shown resilience as the markets have started to recover. The token has seen a substantial price uptick in the second quarter of 2023, hitting around $0.50. Back in 2020, the Securities and Exchange Commission (SEC) accused Ripple of not registering its security features, an oversight that could potentially result in enormous losses for all token holders. The lawsuit zeroed in on the potential fallout if Ripple were to lose, including significant financial penalties​​.

Interestingly, Ripple's CEO opted to contest the charges rather than settling, a route that most other projects in similar situations have taken. The legal skirmish has stretched out for three years, and as things stand now, it seems likely that Ripple will come out on top. If this happens, it would be a significant victory for Ripple, clearing its name and inspiring a wave of investor adoption of its distinctive global payments system. In addition to this, it would result in XRP tokens being fully legitimized and regulated, akin to Bitcoin, thereby solidifying XRP's position as one of the most reliable cryptocurrencies in the market​​.

Such developments would likely trigger a substantial bull run for XRP token holders. Some market experts predict that the price of XRP could equal its previous all-time highs of $3.84 mere hours after the court decision. The most bullish predictions even suggest that the price of XRP could hit $21.84 by late 2023 or early 2024, presenting investors with massive returns​​.

Given the circumstances, it's clear that the outcome of the Ripple vs SEC#lawsuit could dramatically alter the trajectory of XRP and potentially lead to a new era of growth and acceptance for this popular cryptocurrency.

#BinanceTournament #Binance

Total Value Locked (TVL) is the total value of assets locked in a DeFi protocol like staking, yield farming, and lending collaterals. TVL has been used to assess how useful and popular the entire DeFi ecosystem or a specific project is. It can also be used as an indicator for general DeFi market circumstances. This post will explain what TVL is, why it is essential, and how to apply this helpful indicator.

What is TVL?

To begin, the decentralised finance (DeFi) ecosystem is built on the blockchain network, which has no central authority. This signifies that the system's contributors are part of a decentralised network. Contributors lock their assets in a liquidity pool in order to establish a functioning decentralised financial system. The liquidity pool may comprise funds staked, farmed, or used as loan collateral. The entire value of these locked assets is measured by TVL.

So how is TVL determined? It is a rather simple mathematical method. TVL is computed by multiplying the assets locked up as collateral in an ecosystem by their current value. In a short, we may say:

Total Value Locked = invested assets * the asset's price.

Why is TVL important?

New projects are offered on a regular basis as investor interest in DeFi rises. With so many new ideas popping up, hearing about scam projects is unsurprising. To guarantee that a project is trustworthy and healthy, various signs must be checked. When investing in a DeFi enterprise, consider market capitalisation and transaction volume.

Yet, TVL is another component that has a unique relevance in the world of DeFi. The higher the TVL, the more dependable and healthy the project. Furthermore, it may be utilised as a signal for the overall DeFi market circumstances.

In addition, some investors use TVL to see if the project they intend to invest in is overvalued or undervalued. This can be done by calculating the TVL ratio. Three factors are critical for calculating the TVL ratio: 

project’s supply

maximum circulating supply

current price

To get the TVL ratio of a DeFi project, do the following two steps:

Multiply the project’s supply by its current price. This gives you the total market capitalization of that project.

Divide the market cap by the maximum circulating supply.

If the final amount is less than one, the project is undervalued and hence appealing to investors. But, if it is more than one, the market is likely overpriced and less appealing for investment.

Conclusion

TVL is the entire asset value that is locked in the universe of DeFi. TVL can serve as a benchmark for the general state of the DeFi ecosystem and particular initiatives. Moreover, TVL is a reference measure for a DeFi protocol's utilisation, value, and legitimacy.

-Alok S K

#DeFi #dyor #tvl