Beautiful illustration from Be Street Smart Glendale on Behance !

Blockchain has been around for almost a decade yet most people don't really know much about it

. And some words seem weird or strange, acronym no one understand.

Today, let's talk about KYC and AML, taht are 

buzzwords thrown around by compliance departments

What exactly do they mean? What do they entail? And why should you even care? I'm here to help with answers to these questions and the big picture! Ready ? Let's go !

Cryptocurrencies and the blockchain technology that it is based on are still very new to most people. But as more individuals, companies, and even governments begin to adopt this new type of technology into their daily lives, there are some questions that will have to be addressed. One of the most pressing issues at the forefront of people's minds when talking about cryptocurrencies is 

identification process of a client's identity and status within a business

. It's why you might have been asked to provide identification and proof of address to receive a parcel delivery or pre-order any products online. This kind of due diligence process is carried out for financial services companies as part of money laundering prevention measures.

AML is a set of regulatory requirements developed to detect and deter money laundering and the financing of terrorist activities

. The regulations impose internal controls on businesses so that they are able to establish customer identities, monitor effectively the activities of customers and report suspicious transactions.

To go deeper, computers make it easier to track and trace financial transactions than ever before. But, with great power comes great responsibility, and this is something AML professionals don't forget. Compliance with the AML laws is something that is vital for most financial organizations. The people who work in compliance are called

 and their main task is to make sure financial institutions have adequate processes in place to prevent money laundering activities, such as the financing of terrorism.

. Both terms belong to the bigger block of concepts that are known collectively as compliance . And both functions were created for a reason. Both acronyms are well established in financial sector and by now, probably anyone has heard about them.

 If you want precisions, here is a schema of the differences from Shuftipro.

Conclusion: we all have a role to play in helping combat money laundering 💭

If we all took a step back, my guess is that the cryptocurrency industry would be larger than it is today. It's clear 

money laundering is going to go on no matter what

, so perhaps we should make it easier for law enforcement agencies to combat money laundering. And maybe some day, the cryptocurrency industry will be bigger and more decentralized – 

with more hands in the pot working together to fight this major issue

Hope you liked it, and if so, make sure to share it on Twitter ! Do you own research, and see you soon for others articles !

Michael Spot

KYC and AML definitions, the big picture

Does this sound like a lot of buzzwords to you?

 Well, it's "the future". The next generation of blockchains. And I'm here today to tell you about it. Don't believe me? Well, let me "convince" you by explaining what Layers 3 Blockchains are, and how they can help your business in the future. Dealing with layers 3 is a hard thing. But let's make it simple together.

I tried to popularize the concept the best I could. I probably made some errors, if so, 

contact me to complete / correct the article. Thanks !

Ready to discover Layer 3 blockchains ? Let's go !

What are Layer 0, 1 and 2 blockchain : a recap 😃

In this section, let's recap the concepts of layer 0, 1 and 2 blockchains so that anyone can understand them easily !

Layer 0: The physical layer (the hardware)

The physical layer (also known as layer zero) refers to all of the 

hardware involved in running a blockchain network

. This includes computers, smartphones, tablets and any other device capable of running software code. The physical layer is also where miners’ machines are located when they are mining for new blocks on behalf of their clients.

Layer 1: The protocol layer (the software)

The protocol layer is defined by all of the 

software code used to run a cryptocurrency network or blockchain platform such as Bitcoin or Ethereum

. It includes things like operating systems like Windows or Linux as well as applications such as browsers like Google Chrome or Mozilla Firefox that facilitate access to websites over the Internet (which is also considered part of Layer 1). The protocol layer is the most visible part of a cryptocurrency network.

 It’s what people think about when they imagine “the blockchain.”

 The protocol layer can also be thought of as the operating system for blockchains.

Layer 2 networks are built on top of existing blockchains, such as Bitcoin and Ethereum, to 

. They are designed to provide users with greater privacy and scalability by moving some transactions off the underlying blockchain onto these secondary systems.

The main benefit of layer 2 solutions is that they can significantly

 increase the number of transactions that can be processed in a given period of time without slowing down the underlying blockchain

. This allows them to handle large volumes of transactions without requiring significant changes or upgrades to the underlying blockchain itself. Ethereum 2.0, for instance, will be a Layer 2.

The limitations of current blockchain systems 🙁

The main problem with layer 2 blockchains is their versatility.

 They can host any kind of decentralized application, from non-fungible token platforms like OpenSea to decentralized exchanges like Uniswap.

Although this is useful for users, it has several drawbacks. The most significant one is 

. Because layer 2 blockchains are fast and cheap, they attract layer 1 regulars as well as new users who are looking for a faster and cheaper solution. In addition to the large number of new users who want to use the blockchain, new protocols come from around the world who want to implement without having to pay expensive costs on layer 1.

This layer 2 congestion is particularly bad during trends—when "Play-to-Earn" applications (or video games in which players are paid to play), 

, they experienced this problem immediately. The congestion was so bad that it caused the 

. In addition, the blockchain could not keep up with the number of transactions per second required by such applications, 

which led to long wait times and downtime

. And that's not what every crypto user wants.

Why is fractality important : the layer 3 solution 💡

The concept of fractality is at the heart of the layer 3 solution

. Fractality is a property found in nature. It helps us understand the structure of complex systems, from the way that a river meanders to how plants grow from seeds. It is a phenomenon that occurs at all scales.

Fractal geometry is based on repeating patterns

, which are not necessarily self-similar. Self-similarity means that an element can be divided into smaller and smaller copies of itself, but these smaller copies are identical to each other as well as being identical to the original element.

 example of self-similarity is a snowflake

 — every part of it looks exactly like any other part (and it also looks very similar to many other snowflakes). An example of non-self-similarity would be a tree trunk — each branch could be split into smaller branches but they would not look exactly alike or identical to each other or to the original branch (i.e., they would not be self-similar).

Layer 3 is a term used in the blockchain space to describe a 

new class of networks that build on top of existing blockchains

specific use cases and are optimized for that purpose

. For example, layer 1 blockchains (like Bitcoin or Ethereum) are designed to be used as digital cash and store value. Layer 2 blockchains (like Lightning Network or Plasma) allow us to scale these networks by using them as payment channels between users, while still being able to settle on the underlying layer 1 chain at any time.

While these layers have been extremely successful at solving problems associated with scalability, they do not provide all the benefits that we might need from our blockchain infrastructure in other use cases

. For example, if you want to develop an application that needs to store data permanently but still be flexible enough to allow you to change its configuration over time; this is not possible with current layer 1 and 2 solutions (or too complicated).

The solution? Layer 3 blockchains! These new networks will be optimized for different use cases than layer 1/2 blockchains, 

allowing developers to build applications that cannot be built today on top of existing chains

Quant Network, a well-known example among layer 3 blockchain technologies, offers 

multi-ledger tokens and multi-DLT smart contracts through its Overledger protocol

. Quant is one of the first companies that created an ecosystem for cross-chain communication with its Overledger protocol.

 A layer 2 scaling solution – Overledger

Overledger is a layer 2 scaling solution that enables

 interoperability between blockchains and other private and public networks

. It connects every blockchain, enterprise system, mobile application, and device to the same global hyper-fast data network.

 This unlocks a world of possibilities for decentralized applications (dApps) built on top of Overledger

Plus, the layer 3 protocol has partnered with well-known companies including 

 A lot of people are talking about blockchain scalability.

 I think we’re on the verge of a major breakthrough.

 I believe that we can build blockchains that scale linearly with the number of nodes, and do so without sacrificing decentralization or security.

The problem with most blockchain solutions is that they are designed to have every node process every transaction. This results in 

huge bottlenecks when there are more transactions than there are nodes willing to process them.

The solution of layer 3 blockchains is to 

, that allow these types of blockchain to be really scalable, because they are ready for certain types of actions. But others solutions exist, such as 

, which have others solutions to be more scalable in every situation.

If we want blockchains to be scalable, we need to think outside of the box.

It was long to write, and there might be some errors. That's why I recommend that you 

It's important to stay curious and to learn more about the new technologies that are implemented in the crypto field. 

Stay curious, and see you soon for others articles !

Layer 3 blockchains : "not only is it the future, but it's the present"

If you've already had a conversation with a friend in the crypto field, it's likely that you've heard the name 

Binance even if you don't completely understand what they do

. This is because the exchange has become well-known as one of the most important players in the cryptocurrency world and its significant rise in popularity over the past year has put it at the center of attention.

, and how it intends to rise its reputation through the next few years. Let's go !

Binance and its influence in the crypto industry 👑

 Binance, a cryptocurrency exchange platform that operates in Malta and Japan, is the largest in terms of volume. In the last 24 hours, 

$59.5 billion worth of cryptocurrencies were traded on Binance !

The exchange has been growing rapidly since it was launched by 

, in 2017. It’s currently one of the most popular destinations for cryptocurrency traders because it offers low fees and fast transaction times. It also has a wide range of coins available for trading — 

Binance’s influence on cryptocurrencies and blockchain technology is massive. It’s as if every other cryptocurrency exchange has been built around Binance’s model; 

most exchanges have copied its features or at least tried to do so

billions of dollars in profit each year from trading fees

 alone and will continue to grow until something happens to change the way cryptocurrencies are traded online forever.

BUSD became one of the main players in the stablecoin industry 📍

BUSD is one of the most important stablecoins in the crypto market.

 It has become one of the main players that can compete with USDT and GUSD.

As a stablecoin, BUSD is likely to be used by investors who want to get their hands on cryptocurrencies without having to worry about their value dropping dramatically overnight.

But the Binance platform allows users to trade 

 as well as other fiat currencies such as EUR or GBP. This means that you will be able to buy Bitcoin (BTC) using your credit card and then convert it into another cryptocurrency such as Ethereum (ETH) or Litecoin (LTC).

In order to make things easier for new users and help them get started with their trading journey, Binance has created its own stable coin called BUSD (Binance US Dollar). 

This is a cryptocurrency that is pegged at a 1:1 ratio with USDT but also comes with some additional benefits for investors

Binance Coin (BNB), a strong crypto even in 2022 ! 🎈

The BNB token is used as an incentive to use their platform, but it also acts as a currency that can be traded on the platform. It has been used as a stable coin since its launch and has proven itself to be very useful.

The main reason why BNB has been so popular is because it's been used as an incentive to use their platform. 

People who hold BNB get discounts on trading fees, which can be up to 25%

. This means that if you're holding BNB, you'll get 25% off your trading fees when trading with them! This makes it very appealing to use their platform over other exchanges because you could save yourself some money while doing so!

Another reason why BNB is such a strong cryptocurrency is because it 

was created by the founder of Binance himself, Changpeng Zhao (CZ)

. CZ was able to create this new coin by using his experience from working at OKCoin and Bitfinex, two of the biggest exchanges at that time. He wanted something similar but better than both exchanges combined so he came up with Binance!

Binance Launchpad and its “Boom” 📈

platform for upcoming tokens to gain exposure

. It was launched in June 2019 and has helped many cryptocurrencies get their first listing on Binance.

The token sale process on Binance Launchpad has been streamlined and made easy for buyers by Binance themselves. The launchpad is divided into two stages; pre-token sale and main token sale. The pre-token sale stage allows investors to purchase tokens before the main sale begins, 

The main token sale then opens after the pre-token sale has ended, with no discounts available. This enables investors to buy large amounts of tokens at a cheaper rate than they would be able to when buying during the main token sale stage.

Binance Launchpad also offers an ICO advisory service, which helps blockchain companies raise funds through an I

. This service includes assistance with marketing campaigns, legal advice, technical audits, compliance procedures and other services that are required by law before starting an ICO campaign.

What makes this exchange so popular? 🤨

it offers a very easy way to enter the crypto world and start trading cryptocurrencies at low fees with high liquidity

. Another great feature is its native token BNB which provides discounts on trading fees when used instead of BTC or ETH as payment currency (up to 50%).

Binance also offers something called 'Community Coin Voting' where users can vote for new tokens to be added to the exchange or get listed on other exchanges as well as voting for new features like 

. This mechanism allows users to participate in deciding which coins should be added next in order to increase trade volume and attract new customers through their voting power. Binance also offers a 

mobile app for both Android and iOS devices which makes it easy to trade on the go

. This exchange is considered one of the best cryptocurrency trading platforms in terms of security, features, and ease of use.

, and it seems that they are not slowing down. The company is one of the most important platforms in the world of cryptocurrency. They have been able to become a leader in this field by offering their users very good services and products. 

The company uses innovative solutions to offer its users with a great experience

The future of Binance is still very bright and it seems that they will continue to grow in the years to come. This is one of the reasons why so many people are interested in investing in cryptocurrencies such as Bitcoin (BTC) or Ethereum (ETH).

 They want to be part of this revolution, which promises to change our lives forever !

If you liked it, make sure to share it with friends, or even write about it on Twitter ! And see you soon for others articles !

How Binance intends to confirm its reputation in the coming years

I've always been interested in computers and software

, but my knowledge of cryptography was limited to the types of encryption that keep your credit card number safe when you buy something online.

Then I started to use a blockchain, the Bitcoin one, and then Ethereum, and from one blockchain to another, I though 

"why don't I create a little Dapp myself?"

. After hours of researchs, I had a problem : how could I pay for all the gas fees for just a test Dapp that I wanted ?

Today, let's talk about how testnets are important to the crypto-space, and how it could evolve in a much more efficient tool. 

In my articles, we always start with the basics, 

just to be sure everyone is on the same page

A testnet is a blockchain that is developed for testing purposes.

 It can be used to experiment with new features and applications without having to use real money.

Most of the cryptocurrencies have their own Testnets where you can 

try out new things without risking any actual money

. The testnet coins are usually different from the main coin in terms of value, but they can be exchanged for each other on exchanges if you want to invest in them.

The most notable use case for testnets is when developers want to test a 

new feature before it is implemented into the mainnet

. For example, if you want to make sure that your new version of your cryptocurrency wallet works properly with your updated code, you would deploy it onto the testnet first so that you can 

The testnet is an alternative chain to the main network. It works exactly like a mainnet, with miners (for PoS). Let's take the example of Bitcoin, the first testnet to exist :

The two most popular types of testnets are:

 who provides the entire hashpower and pays a small fee for each transaction, usually around $0.05. This is useful if you want to quickly set up your own private blockchain with low latency, but it’s not very flexible if you want to use the same testnet for multiple purposes (such as testing different consensus algorithms).

 who provide their own hashpower, in proportion to their stake in the network (e.g. 1/10th of all blocks are mined by each miner). This is more flexible and better suited for real-world use cases, but it also has higher latency than “private” testnets because every block must be broadcasted to all miners first before being mined.

The central role of the testnet in crypto development

The testnet is the main reason why cryptocurrencies are so well suited for building applications.

The testnet allows developers to experiment with different development tools, such as the Ethereum Wallet and Mist browser, without having to spend money on their own private blockchain.

The Ethereum Foundation provides a free testnet environment that anyone can use to deploy smart contracts, build decentralized apps (dapps), or take advantage of any other features of the Ethereum platform. This network is called Ropsten

Example of Ethereum 2.0 which goes through a lot of testnets before mainnet

The Ethereum 2.0 roadmap is a full node software release that will allow for greater scalability and performance. The Ethereum 2.0 roadmap was first proposed by Vitalik Buterin in January 2019, which included details on what would be included in the new version of Ethereum: Casper FFG, sharding, and Plasma.

Ethereum 2.0 is a major upgrade to Ethereum’s blockchain that will include numerous improvements such as sharding, scalability and privacy-preserving technologies like zk-SNARKS

 (zero knowledge proofs). The goal of this update is to increase the throughput and scalability of the network by making it easier to process transactions at once. This will be achieved by splitting up the network into smaller parts called shards which can process transactions in parallel.

The Ethereum team has been working on different testnets since early 2018 and has released several versions of them so far: 

 (Testnet 4). Each of these testnets uses different consensus algorithms and each one has its own use cases.

An interesting schema I found on the web,  by Aragon's blog

What will be the testnets of the future? One answer are 

The current state of testnets is very limited. They are mostly used by developers to test their products and by miners to improve their rigs. Some projects also use them to run a temporary blockchain before launching their mainnet. However, they are not really useful for other purposes.

A few projects have tried to improve on this situation but they still have limitations. For example, 

Stellar has created an innovative way to run a testnet using its own currency (the stellar lumens)

. This sounds good but it’s not really useful because it doesn’t allow much experimentation with smart contracts or dApps.

I believe that there is room for improvement in this area and it's a new type of testnet: 

 I hope you enjoy the content, and all is from my personal knowlege, so there are probably some errors ! 

That's why I can always encourage you to search by yourself

What are the testnets of the future, and why are they important ?

You probably know this story : you start investing in cryptocurrency to the first piece of advice and put all your money on it. After that investment implodes, like it happened a few times already, you see the light. But by then it's already too late.

Today, we'll see the 7 advices you can apply to change your perspective as a crypto-investor. 

When you think like a contrarian, you're looking to invest in something that's not popular, which means that most people are going to be against it—or at least not interested in investing. But if you can find a way to see the potential in an unpopular thing, then you'll be able to make some great investments.

In cryptocurrencies, for example, there are some coins or tokens that might be unpopular because people don't understand them or don't know enough about them yet. They're still valuable and have lots of potential for growth, so if you invest in them early on, your investment will pay off big time!

 Don't get me wrong. It's easy to get caught up in the day-to-day fluctuations of crypto markets. It's hard not to think about how much money you could make if you were just a little more patient, or if you hadn't sold at the wrong time.

But what's more important than short-term gains is long-term success. When you adopt a long-term time horizon for your investment, it takes pressure off of you and puts it on the market to do its thing. You'll have the opportunity to stay focused on what matters most—your plan, your goals, and the future of your portfolio.

I'm sure you've heard the phrase "read between the lines," right? It's a common expression that refers to looking beyond what someone is saying in order to understand what they really mean.

It's a useful tool in any situation—whether it's with your friends and family or at work or school. But what if I told you that this same technique could help you make better investment decisions?

In fact, knowing how to read between the lines is critical for anyone who wants to build a solid crypto portfolio. With all of the noise out there about cryptocurrencies, it can be tough to figure out which ones are worth investing in. And if you don't know what you're looking for, it can be easy to get swept up into hype without doing any research first!

Don't let greed cloud your judgement 🚨

If you see an opportunity that seems too good to be true, it probably is! You should never invest in something just because it promises big returns—you should only invest in something if it makes sense for your long-term goals and values.

Be rational rather than emotional about your investments. This means not making impulsive decisions based on fear or excitement (or greed). When making investment decisions, make sure they align with your long-term financial goals and values so that you don't end up losing money by investing emotionally instead of rationally.

And finally: patience! Be patient when looking at opportunities and avoid impulsive decision-making—this will help keep your emotions in check while making sure that whatever investment opportunity you take is one that will help achieve those long term goals.

If a particular cryptocurrency doesn't feel right to you, don't invest in it. If you're not sure about how something works, ask questions until you get answers that make sense to you. And if someone tells you something about cryptocurrencies that just doesn't sound right—like telling you that investing in Stepn will be like winning the lottery—it probably isn't true, so be careful, and smart.

Cryptocurrencies are still new, and they're constantly evolving. But by listening to your gut, asking questions, and being skeptical of what other people tell you, you'll be able to navigate this exciting new world with confidence.

Learn from history, both ancient and modern 🖥️

The history of cryptocurrencies is filled with ups and downs. Some cryptocurrencies have died out completely, while others have become more popular than ever before. The only way to learn from this history is by paying attention and learning from mistakes as they happen, so that we can avoid repeating them.

One thing we can learn from history is that being an early adopter has its benefits—but it also has its drawbacks. If you'd like to get into cryptocurrency investing, make sure you're prepared for a roller-coaster ride!

Before you buy any cryptocurrency, put yourself in the shoes of someone who's been burned

 Before you buy any cryptocurrency, put yourself in the shoes of someone who's been burned.