The study was held by CoinGecko and Blockchain Research Lab between December 2022 & January 2023 and examined 421 crypto investors' responses.

8 out of 10 investors store their digital assets in hot wallets.

It might be driven by the popularity of NFTs and crypto holders practicing self-custody.

7 out of 10 investors store their digital assets on centralized exchanges.

Prioritization of convenience over security.

3 out of 10 investors store their digital assets in cold wallets.

Cybersecurity awareness is not that high and most crypto holders are not on-chain native yet.

Where do you store your crypto?

Comment

🔥 Hot wallet

👍🏼 Centralized exchange

👌🏼 Cold wallet

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What is Directed Acyclic Graph (DAG) in crypto?

DAG - Directed Acyclic Graphs - are a data structuring method. In crypto this means transactions are recorded on top of one another, as opposed to in a chain like with typical blockchains.

DAG and blockchain are both types of Distributed Ledger Technology (DLT), which underpins most digital assets.

Blockchain vs DAG data structure

The DAG approach to data is similar to a blockchain in that Directed Acyclic Graphs are composed of a network with numerous different nodes confirming transactions. Each new transaction that's submitted requires the confirmation of at least two earlier transactions before it is successfully recorded onto the network.

As more transactions are submitted, more transactions are confirmed and entered, resulting in a distributed web of doubly-confirmed transactions. This is great for both throughput and security.

However, Directed Acyclic Graphs are different to blockchains in a couple of important ways.

Directed Acyclic Graphs vs Blockchains

Thanks to the two parent transactions that confirm the validity of a transaction, DAGs do not require miners to authenticate transactions. By removing this element of human intervention, the process is accelerated considerably.

With no need to have minors validating transactions and blocks of data, the transaction throughput is close to instant.

In addition, because there are no miners, there are also no mining fees. This helps keep actual transaction fees and gas fees to an absolute minimum. And with this low-fee structure it opens up DAG to another important feature.

The structure of Directed Acyclic Graphs makes it the perfect way to process micro transactions - something which has thwarted many layer 1 blockchains and impeded cryptocurrency's wider adoption since Bitcoin's inception in 2008.

Directed Acyclic Graphs in data structure

It's useful to consider Directed Acyclic Graphs outside of crypto to fully grasp how they work and their potential both within and outside of digital currencies.

Directed Acyclic Graph

Think of a DAG like a representation of a series of activities. The order of the activities is depicted by a graph. You can see from the image above that this graph is visually presented as a series of circles - each circle represents an activity.

These activity circles are connected by lines, which represent the flow of activity moving from one activity to another.

Each activity circle is known as a 'vertex'

Each line is called an 'edge'.

'Directed' means that each edge has a defined direction, so each edge necessarily represents a single directional flow from one vertex to another.

'Acyclic' means that there are no loops or 'cycles', in the graph. So for any given vertex, if you follow an edge that connects that vertex to another, there is no path in the graph to get back to the initial vertex.

Both these forms of Distributed Ledger Technology have pros and cons. Blockchain has dominated the crypto space for the last decade and a half, but DAG is proving to be a worthy challenger to blockchain's title, because it presents potential solutions to the flaws inherent in using blockchain technology for cryptocurrency and as the basis of a universal payment system.

~ Zac Colbert, The Crypto Journo

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Token standards are sets of rules and conventions for governing how a crypto token works. Popular standards include ERC-20, BEP-20, ERC-721, and ERC-1155. Although tens of thousands of cryptocurrencies exist, you might be surprised to know that most of them are built with the same blueprint. These blueprints, called token standards, define some of the key functionalities and properties of blockchain tokens.

Why Use Token Standards?

Interoperability :

Token standards ensure that all products built using that standard can interact or work together. If a project issues a token built according to a token standard, the new token will remain compatible with existing platforms and applications like wallets. For instance, ERC-20 assets are interoperable with other products and services developed using the same token standard.

Composability :

In programming, having a system that is composable allows developers to reuse existing components to create new products. This applies to token creation as well – by using token standards, less time is spent on basic functionality, so developers have more time to experiment and innovate.

Efficiency :

Token standards also facilitate the interaction between smart contracts. After smart contracts follow token standards and deploy tokens, they may be used to monitor the created tokens.

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Introduction

Cryptocurrencies are revolutionizing the way we think about money, and Sri Lanka is no exception. With an increasing number of Sri Lankans getting involved in the crypto world, it’s important to provide education and resources to ensure that everyone can participate in this exciting new economy. In this article, I will explore the importance of crypto education in Sri Lanka, and how it can empower the next generation of innovators.

The Need for Crypto Education

Cryptocurrencies and blockchain technology can be complex and intimidating, especially for those who are not familiar with the concepts. However, it is important to understand the potential benefits of this technology, such as decentralization, transparency, and security. By providing crypto education, Sri Lankan citizens can learn how to use this technology to their advantage, whether it’s for investing, trading, or simply understanding how it works.

The Role of the Education System

The Sri Lankan education system has an important role to play in providing crypto education. By incorporating blockchain technology and cryptocurrencies into the curriculum, students can learn about this technology from an early age. This can help to foster a culture of innovation and entrepreneurship and create a new generation of tech-savvy Sri Lankans who are ready to take on the challenges of the 21st century.

The Importance of Accessibility

In addition to the education system, it is also important to provide accessible resources for those who are interested in learning more about cryptocurrencies and blockchain technology. This can include online courses, workshops, and community events. By providing these resources, more people can gain access to the knowledge they need to participate in the crypto economy.

Overcoming Challenges

Of course, there are challenges to providing crypto education in Sri Lanka. One of the biggest challenges is the lack of understanding and awareness about this technology. However, by working together to provide education and resources, we can overcome these challenges and create a more inclusive and innovative society.

Current State of Crypto Education in Sri Lanka

The majority of Sri Lankan students are not yet familiar with cryptocurrency or blockchain technology.

However, some universities and institutions have begun offering courses on these topics.

Additionally, there are online resources and communities available to learn about cryptocurrency and blockchain.

Benefits of Learning about Cryptocurrency and Blockchain

Cryptocurrency and blockchain are transforming industries such as finance, healthcare, and real estate.

Learning about cryptocurrency and blockchain can lead to career opportunities in fields such as software development, finance, and entrepreneurship.

Understanding cryptocurrency and blockchain can also help students become better informed about technology and finance, making them more financially literate and able to make informed investment decisions.

How to Get Started with Crypto Education

Begin by researching online resources such as cryptocurrency blogs, forums, and educational videos.

Consider attending conferences or meetups related to cryptocurrency and blockchain.

Some universities and institutions in Sri Lanka offer courses on these topics, which could be a great place to start.

Joining online communities can also be a great way to learn about cryptocurrency and blockchain from peers and experts

Frequently Asked Questions (FAQs)

Q: What is cryptocurrency?

A: Cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets.

Q: Why is crypto education important?

A: Crypto education is important because it empowers Sri Lankan citizens to participate in the crypto economy, and understand the potential benefits of this technology, such as decentralization, transparency, and security.

Q: How can I learn more about cryptocurrencies?

A: You can learn more about cryptocurrencies by taking online courses, attending workshops and events, and reading articles and books on the topic.

Conclusion

Crypto education is an important component of Sri Lanka’s economic and social development. By providing accessible resources and incorporating this technology into the education system, we can create a more inclusive and innovative society, and empower the next generation of innovators. With the right knowledge and tools, Sri Lankans can be at the forefront of this exciting new economy.

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