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🗞️ In The News
Bitcoin price tests $120k resistance before dropping back to the $115k range.The US Federal Reserve keeps interest rates unchanged.The SEC approves in-kind creation and redemption processes for crypto exchange-traded products (ETPs).Ethereum celebrates its 10-year anniversary.Michael Saylor’s Strategy has acquired 21,021 BTC for ~$2.46 billion at ~$117,256 per bitcoin.SharpLink Gaming acquired 77,210 ETH for ~$295M, exceeding Ethereum’s net issuance over the past month and reinforcing its position as the second-largest corporate ether holder.Monero faces a hashrate takeover effort by Qubic, a mining network led by IOTA co-founder Sergey Ivancheglo.Rakbank became the first bank in the UAE to offer crypto trading services to retail customers.South Korea’s central bank will establish a virtual asset committee and has renamed its CBDC team to focus more actively on digital currency development.

📖 Binance Academy Knowledge
Who Is Michael Saylor?What Is a Bitcoin Treasury Strategy?What Is a Strategic Bitcoin Reserve?Central Bank Digital Currencies (CBDC) ExplainedWhat Is Tokenomics and Why Does It Matter?What Is Treehouse (TREE)?

🔥 Binance Blog Highlights
Binance Pay Travel Route – Bhutan, the Land of Gross National HappinessBNB at ATH – Long-Term Structural Drivers at WorkFrom Our CEO: Bhutan’s Crypto Leap – A Nation’s Vision, Powered by TrustFrom Pizza Day to Clubhouse Dubai – Here's How Binance Angels Shaped Q2 2025 Community EventsThe Malware Trap – How One Click Could Cost You Your Crypto in 2025Binance Discount Buy – Here's How You Can Buy Crypto Below Market Price or Earn Rewards“5 Blockchains Lead The Market: Which L1 is Most Active?” – Alex Svanevik, CEO of Nansen on Altcoins

Key Takeaways

Treehouse is building the foundation for fixed income products in crypto, similar to bonds and treasury notes in traditional finance.

Users can deposit ETH or liquid staking tokens (LSTs) to receive tETH, which earns optimized yields through arbitrage.

Decentralized Offered Rate (DOR) is Treehouse’s mechanism for setting reliable benchmark interest rates for crypto, starting with Ethereum.

By standardizing rates across DeFi, DOR is designed to reduce market fragmentation while bringing greater transparency and predictability to yield products.

Introduction

DeFi can give users different ways to earn on their crypto holdings, but finding steady, reliable returns isn’t easy. Interest rates for lending the same asset (like ETH) differ between DeFi protocols, and there is no common benchmark to compare your options. 

This lack of consistency makes it hard to manage risk or carry out long-term income strategies. Treehouse aims to address this by creating a fixed income layer for digital assets, starting with Ethereum, to help you earn more stable, predictable returns over time.

What Is Fixed Income? 

Fixed income refers to investments that pay a steady, predictable return over time. For example, lending someone $1,000 and receiving $50 each year in interest for five years. It’s considered a more stable asset class that makes it easier to plan ahead and manage risk.

What Is Treehouse? 

Treehouse is a decentralized protocol designed to bring fixed income products to crypto through two main components:

tAssets: Yield-generating tokens, like tETH, that use smart arbitrage strategies to help align interest rates across decentralized finance (DeFi) and generate steady returns.

Decentralized Offered Rate (DOR): On-chain versions of traditional benchmark interest rates. They are created through a consensus process and serve as the foundation for new fixed-yield products.

tETH

tETH is a token you receive when you deposit ether or liquid staking tokens like stETH into the Treehouse protocol. But it’s more than just a wrapper for your assets. tETH actively searches for the best yield opportunities across the Ethereum ecosystem and uses arbitrage to boost your returns.

For example, if ether staking rewards are higher than borrowing costs on a lending platform, the protocol takes advantage of that difference and passes the extra yield back to you. So rather than manually moving your ether between platforms to chase better returns, tETH does the work for you. 

tETH holders also earn points through Treehouse’s rewards program, which gives additional incentives to early tETH holders and Treehouse users.

What Are Decentralized Offered Rates (DOR)?

DOR (Decentralized Offered Rates) are on-chain benchmark interest rates for digital assets, much like how traditional finance relies on reference rates such as the Secured Overnight Financing Rate (SOFR). In simple terms, DOR helps answer the question: “What’s a fair, reliable average lending rate for ETH?”.

Instead of guessing or relying on one source, DOR is built through a community-driven consensus process, where different participants come together to share rate data and keep things transparent. The stakeholders in the DOR ecosystem include:

Operators: These are the coordinators of the system. Treehouse, for example, acts as the first Operator, responsible for launching and maintaining the benchmark rate feeds.

Panelists: These are specialized entities, like market makers or staking platforms, that supply interest rate data or forecasts using Treehouse’s tools. 

Delegators: Regular users who delegate their tAssets to Panelists. They maintain ownership of their assets while letting trusted participants submit rate data on their behalf, similar to staking delegation.

Referencers: These are platforms like DeFi protocols, exchanges, or lending apps that use DOR as a pricing reference for their products.

Treehouse Ethereum Staking Rate (TESR) Curve

The TESR (Treehouse Ethereum Staking Rate) curve is Treehouse’s first DOR, created to act as a benchmark yield curve for Ethereum-based fixed income products. Much like how traditional finance uses the U.S. Treasury yields as a baseline, the TESR Curve uses Ethereum staking yields as a reference point for pricing returns in DeFi.

Treehouse considers Ethereum staking as the ideal base rate because it’s built into the protocol, helps to secure the network, and delivers steady, predictable returns. Compared to alternatives like bitcoin mining or stablecoin lending, the protocol supports Ethereum staking as a more decentralized and consistent option for defining a crypto-native benchmark rate.

Use cases

Having a reliable, decentralized benchmark like the TESR Curve opens the door to more advanced financial tools in DeFi:

Interest rate swaps (IRS): Agreements that allow you to trade fixed and floating interest payments, which can help manage risk when rates change.

On-chain treasury products: Crypto’s version of government bonds, which offer more stable, lower-risk options for long-term holders.

Yield curves: With clear rates across different timeframes, protocols can better price loans, savings products, and other fixed income instruments.

Using TESR as a reference can improve risk management for borrowers and lenders and help make DeFi products more accessible to institutional and traditional finance participants.

tETH Risks 

Treehouse has pointed out a few important risks to keep in mind when using tETH since it interacts with both staking and lending platforms.

One major risk is the potential collapse of an underlying protocol, whether it’s a liquid staking service or a lending platform. There’s also the risk of a sudden drop in the value of staked assets, known as a depeg, which could trigger liquidations and lead to losses.

Other potential issues are bugs in the smart contracts, inaccurate data from blockchain oracles, and lending pools becoming overcrowded. When that happens, borrowing costs can increase and reduce the returns you earn from tETH.

How Treehouse Helps Protect Users

Treehouse has implemented multiple safeguards, including a contingency plan for significant depegs, a dedicated insurance fund to cover unexpected losses, and a Protocol-Owned Peg Protection (PPP) mechanism that buys up undervalued tETH during volatile markets. These measures work together to enhance user protection while supporting the long-term foundation for fixed income in DeFi.

TREE Token

The TREE token is the native utility token of the Treehouse protocol. The token is used for a variety of purposes, including:

Paying for DOR data: When smart contracts or businesses use Treehouse’s DOR benchmark data, they pay a small query fee in TREE tokens. This helps generate revenue for the protocol and ensures the fair use of its data infrastructure.

Staking by panelists: To maintain the integrity of DOR rates, panelists (the entities who submit rate data) are required to stake TREE tokens or tAssets. This ensures they have skin in the game and are motivated to submit accurate data.

Earning rewards: After each data submission round (or “observation period”), TREE tokens are distributed as rewards to both panelists and delegators based on how accurate the submitted rates were.

Governance: Holding TREE also gives you the power to vote on key protocol decisions like adjusting parameters, upgrading the system, or changing how rewards are distributed. 

Funding innovation: Through the Treehouse decentralized autonomous organization (DAO), TREE tokens are also allocated as grants to support partnerships, developer tools, and new products built on top of the protocol.

Treehouse (TREE) on Binance HODLer Airdrops

On July 28, 2025, Binance announced TREE as the 29th project on the Binance HODLer Airdrops. Users who subscribed their BNB to Simple Earn and/or On-Chain Yields products from July 10 to 13 were eligible to receive TREE airdrops. A total of 12.5 million TREE tokens were allocated to the program, accounting for 1.25% of the total token supply.

TREE was listed with the Seed Tag applied, allowing for trading against the USDT, USDC, BNB, FDUSD, and TRY pairs.

Closing Thoughts

Treehouse is addressing a key challenge in DeFi by creating the foundation for fixed income products in the crypto space. With innovations like tETH, the TESR Curve, and the DOR mechanism, it aims to bring more predictability to yields, make it easier to compare rates, and create more advanced financial products on-chain.

Further Reading

What Are Funding Rates in Crypto Markets?

What Are Decentralized Derivatives and How Do They Work in DeFi?

Four Ways to DYOR on DeFi Yield Farms

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

Key Takeaways

Vitalik Buterin is a Russian-Canadian computer programmer and is best known as the creator of Ethereum.

Vitalik proposed Ethereum in 2013 to overcome the limitations of Bitcoin and support more complex applications through smart contracts.

He was an early contributor to the Bitcoin Magazine and continues to be a thought leader in the blockchain space.

His views often shape discussions around blockchain scalability, decentralization, and cryptoeconomics.

Introduction

Vitalik Buterin is widely known as the creator of Ethereum, the blockchain behind many of today’s decentralized applications and digital assets. Since publishing the Ethereum whitepaper at the age of 19, Vitalik has played a key role in the platform’s development and remains an influential figure in the blockchain space.

Early Life and Background

Vitalik Buterin was born in 1994 in Kolomna, Russia, and moved to Canada with his family at age six. Vitalik stood out for his natural talent in math and programming and was placed in a gifted program at school. He later attended the University of Waterloo, where he took advanced computer science classes and worked with cryptography experts like Ian Goldberg.

As a teenager, Vitalik was also a dedicated player of World of Warcraft (WoW). After a game update removed one of his favorite features, he felt powerless and was frustrated by how a central authority could make such changes at its will. This experience would spark his interest in decentralization, which would later become central to Ethereum.

First Encounter With Bitcoin

Vitalik first came across Bitcoin in 2011. While he was initially unsure about its value, he quickly became fascinated by its decentralized design and the possibilities it opened up for rethinking financial systems. 

Wanting to learn more, he started writing about Bitcoin and eventually co-founded Bitcoin Magazine, one of the first major publications dedicated to cryptocurrency news and analysis. Through his writing and involvement in the community, Vitalik began to develop both a technical understanding and a broader philosophical perspective on blockchain technology. 

He saw how Bitcoin enabled peer-to-peer transactions without intermediaries but also recognized its limitations. Vitalik felt that Bitcoin’s scripting language was too limited and began to imagine a more flexible blockchain that could support general-purpose programming. 

The Birth of Ethereum

The Ethereum whitepaper 

In 2013, at just 19 years old, Vitalik published the Ethereum whitepaper. His main idea was to build a blockchain that functioned like a global, decentralized computer. 

While Bitcoin was designed primarily as a peer-to-peer currency, Ethereum would support a Turing-complete programming language. This would give developers the ability to write arbitrary logic in the form of smart contracts and create decentralized applications (DApps) that can operate without the need for central authorities.

Launch and development

Ethereum officially launched in July 2015 after a successful crowdfunding campaign that raised around $18 million worth of ether (ETH). Alongside Vitalik, co-founders such as Gavin Wood, Joseph Lubin, Charles Hoskinson, and others played key roles in building the protocol’s early infrastructure. 

To support its ongoing development, the Ethereum Foundation, a nonprofit organization based in Switzerland, was established to coordinate and fund open-source contributions to the network.

Soon after launch, Ethereum began attracting developers interested in building a wide range of DApps. The ecosystem grew quickly, and Ethereum became the foundation for new sectors like decentralized finance (DeFi), non-fungible tokens (NFTs), and decentralized autonomous organizations (DAOs). Vitalik’s vision helped shift blockchain usage from a focus on digital currency to a broader range of use cases and decentralized innovation.

Ethereum Milestones and Vitalik’s Role

Over the years, Ethereum has gone through several defining moments that shaped its technical trajectory, community culture, and public perception. Vitalik has often played a key role during these events, whether as a technical leader, public communicator, or contributor to community governance.

The DAO attack (2016)

One of the earliest crises in Ethereum’s history came in 2016 with The DAO, a decentralized venture fund built on Ethereum. It raised over $150 million in ETH during its crowdsale, making it one of the most ambitious projects at the time. 

However, a vulnerability in The DAO’s smart contract code was exploited, and roughly 3.6 million ether (worth around $50 million then) was siphoned off into a child DAO.

Vitalik proposed several mitigation paths, including a soft fork to blacklist the stolen funds. Ultimately, after significant community debate, the Ethereum Foundation supported a hard fork to roll back the exploit and return funds to the original DAO investors. This decision was controversial and led to a split:

Ethereum (ETH): The chain that implemented the rollback.

Ethereum Classic (ETC): The original chain that preserved immutability and rejected the fork.

The incident sparked a lot of debate about how decisions should be made on decentralized networks. It also challenged the idea that code alone could govern everything. Looking back, Vitalik said the DAO hack made it clear that rules written in code are not always enough and that sometimes human judgment and coordination are just as important.

The Merge: transition to Proof of Stake (2022)

Ethereum originally launched with a Proof of Work (PoW) consensus model, similar to Bitcoin. But the vision to move to a more sustainable and scalable Proof of Stake (PoS) system had been part of Ethereum’s long-term roadmap.

Vitalik played an active role in shaping this transition. He co-authored technical specifications and regularly participated in discussions on validator design, network security, and upgrade planning. Through blog posts, talks, and community engagement, he helped explain the transition’s purpose and implications to a broader audience.

After years of development, testing, and incremental upgrades, Ethereum successfully completed The Merge on September 15, 2022. This milestone marked the official switch to PoS and reduced the network’s energy consumption by more than 99%.

Public Persona and Thought Leadership

Vitalik remains one of the most influential voices in the Ethereum ecosystem. While he continues to guide protocol development by reviewing Ethereum Improvement Proposals (EIPs) and publishing research, his role has shifted throughout the years. 

In April 2025, the Ethereum Foundation announced that Vitalik would gradually step back from daily coordination and crisis response duties to focus more fully on long-term research and innovation. This change would let him return to the exploratory work that shaped Ethereum’s early vision, while leaving day-to-day operations in the hands of other core contributors.

Outside of technical contributions, Vitalik is also known for his thoughtful writing and public commentary. His blog posts and social media threads often spark meaningful discussion not just about Ethereum’s future, but about the broader evolution of digital infrastructure and decentralized systems. 

Vitalik is also active in the world of effective altruism and philanthropy. Over the years, he has donated millions to causes including COVID-19 relief, anti-aging research, and open-source development.

Criticism

As both the public face of Ethereum and a core contributor, Vitalik’s decisions and influence have often been scrutinized by different corners of the community. 

One common concern is the extent of his influence. Although Ethereum is designed to be decentralized, some in the community argue that the project often leans too heavily on Vitalik’s guidance. 

While Vitalik doesn’t control the network, his opinions can sway everything from protocol design to community sentiment. Vitalik himself has acknowledged this and taken a step back to encourage others to take the lead.

Vitalik’s openness to experimental ideas like Soulbound Tokens (SBT) or public goods has also drawn mixed reactions. While many admire his forward thinking, others feel Ethereum risks losing focus by trying to explore too much at once. 

Despite this, Vitalik is known for engaging with critics in good faith. He rarely ignores tough questions and often uses them as opportunities to learn and improve personally and for the Ethereum ecosystem.

Closing Thoughts

Vitalik Buterin has played a central role in the development of Ethereum and the broader blockchain space. From technical design to public dialogue, his contributions have influenced how decentralized systems are built and understood.

Further Reading

What Is an Ethereum ETF?

What Is the Ethereum Pectra Upgrade?

Who Is Satoshi Nakamoto?

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

🗞️ In The News 
Bitcoin continues to hold steady above $110K.BNB hits a new all-time high, crossing the $800 mark.Telegram’s TON Wallet is now available to users in the United States.Michael Saylor’s Strategy has acquired 6,220 BTC for ~$739.8 million at ~$118,940 per bitcoin.Goldman Sachs and BNY Mellon are launching tokenized money market funds for institutional clients.BitMine Immersion Technologies has acquired over $2 billion worth of ether in just 16 days, becoming the largest holder among emerging ETH treasury firms.Solana sets sights on internet capital markets with a new 2027 roadmap.

📖 Binance Academy Knowledge
Who Is Michael Saylor?What Is a Bitcoin Treasury Strategy?What Are Money Markets?What Are Internet Capital Markets (ICM)?How Do Gas Fees Work on Ethereum?What Is Chainbase (C)?

🔥 Binance Blog Highlights
Binance Named on CNBC’s 2025 World’s Top Fintech Companies ListU.S. Crypto Week Sees Digital-Asset Rules Take Shape – Here’s What it Means For The IndustryBinance Convert 2025 Guide – Trade Crypto InstantlyHow Binance Connect Is Powering Fiat-to-Crypto On-Ramps for Web3 Wallets and DAppsBinance CEO Richard Teng Joins The Digital Chamber Advisory BoardBitcoin Keeps Breaking Records – What’s Fueling the Growth?“Bitcoin hits ATH of $123K++, What’s Next?” – Pete Rizzo on BTC All-Time Highs, its Future and Impact

Key Takeaways

Gas fees are transaction fees required to execute transactions and smart contracts on blockchain networks like Ethereum.

These fees compensate validators for the computational work involved in verifying transactions and executing smart contracts.

Gas fees are often paid in a blockchain’s native token. On Ethereum, they are often measured in gwei, a subunit of ether (ETH).

The total cost of a transaction depends on the amount of gas used and the gas price set by the user. As such, gas fees can vary significantly depending on network congestion and demand.

Introduction

If you’ve ever sent cryptocurrency or interacted with a decentralized application (DApp) on a network like Ethereum or BNB Chain, you’ve likely encountered gas fees. These fees are fundamental to how blockchain networks operate. They essentially act as the “fuel” that keeps the network running smoothly.

The pricing mechanism of gas fees was introduced by Ethereum and the term gas is commonly used in relation to Ethereum transactions and smart contracts. 

This article will focus on the Ethereum gas system, but you might also see users of other blockchains referring to transaction costs as gas fees.

What Are Gas Fees?

A gas fee is the cost required to perform operations on a blockchain. Whenever you are sending or receiving cryptocurrencies like ETH or BNB, each of those transactions requires computational power to be validated and added to the blockchain ledger.

In other words, gas refers to the pricing mechanism that measures the computational effort needed to perform actions—from simple transfers of ETH to more complex smart contract executions. Think of gas as the “energy” that powers every transaction.

How Do Gas Fees Work?

When you initiate a transaction or execute a smart contract, your action requires a certain amount of computational steps. Each step consumes gas, and more complex transactions naturally consume more gas.

Gas fees are paid in gwei, a small denomination of ether (ETH). One ETH equals 1 billion gwei. By paying gas fees, you incentivize validators to include your transaction in the next block.

Gas fees calculation

To simplify, imagine that before submitting your transaction, you have to specify two things:

Gas limit: The maximum amount of gas you’re willing to spend.

Gas price: The amount of ETH (in gwei) you’re willing to pay for each unit of gas.

The fee you pay depends on the total gas used (which will always be equal or lower the gas limit) and the gas price:

Total Gas Fee = Gas Used x Gas Price

The gas limit protects you from spending more ETH than you intend. If your transaction consumes less gas than the limit, the leftover gas is refunded. However, if the gas runs out before the transaction completes, it fails, but the validators still collect the fees for the work done up to that point.

However, since the Ethereum London Upgrade in 2021, the gas pricing mechanism became a bit more complex. The gas pricing formula now looks like this:

Total Gas Fee = Gas Used x (Base Fee + Priority Fees)

EIP-1559

The London hard fork included the EIP-1559, which revamped the gas fee formula by introducing:

A base fee: A minimum amount of gas required per transaction, which is burned (removed from circulation), reducing ether’s total supply over time.

A tip (priority fee): An optional extra paid directly to validators as an incentive to prioritize a transaction.

Before this upgrade, all gas fees went directly to validators, and users had to manually guess how much to pay. This guesswork often led to overpayment or delayed transactions. With EIP-1559, the base fee adjusts automatically based on network congestion, improving fee predictability and helping stabilize costs.

Why Do Gas Fees Change?

Total gas fees change based on two main factors: network congestion and transaction complexity. 

The Ethereum network is decentralized and shared by millions of users worldwide. Every transaction must be processed and verified by validators. Naturally, validators prefer to process transactions that pay higher gas fees so they can earn more rewards.

So, gas fees can change based on how complex a transaction is and also depending on supply and demand:

High demand periods: When too many users send transactions simultaneously or interact with popular DApps, the network might get congested. This competition drives gas prices upward since users bid higher priority fees to get their transactions processed faster.

Low demand periods: When network activity is light, gas fees tend to drop, making transactions cheaper and more accessible.

This dynamic pricing mechanism helps allocate limited network resources efficiently, though it can make transactions costly during busy times.

Still, even if the network isn’t busy or congested, a complex transaction that involves multiple tasks or smart contract interactions, will naturally have higher gas fees.

Why Gas Fees Matter

Gas fees aren’t just a hurdle or a cost to overcome—they play vital roles in the Ethereum ecosystem and other similar blockchains:

Network security: Fees prevent spam and abuse by imposing a cost on every action, which keeps the network safe from overloads.

Economic incentive: Validators receive gas fees as rewards, motivating them to process transactions and maintain the blockchain.

Fair resource management: By charging fees for computational resources, blockchains encourage developers to write efficient smart contracts and avoid wasting resources.

Transaction prioritization: Users can pay higher fees to speed up their transactions during times of congestion, providing a market-driven prioritization system.

Tips for Managing Gas Fees

Being familiar with how gas fees work can help you save money and make your transactions smoother. Here are some practical suggestions to keep fees manageable:

Choose wallets or apps that provide real-time estimates of gas fees, so you know what to expect before sending a transaction. You can also use blockchain explorers like Etherscan or Bscscan to check gas prices in real time.

If you’re not in a hurry, consider setting a lower gas price to save costs, but be prepared for your transaction to take longer to confirm.

More complicated transactions, such as interacting with smart contracts, usually require more gas, so plan for higher fees in those cases.

Consider transacting during off-peak hours when gas fees tend to be lower.

Keep an eye on ongoing network upgrades and second-layer solutions designed to reduce fees and improve transaction speeds.

Closing Thoughts

Gas fees are a fundamental element of how Ethereum and other similar blockchains operate. They allow the network to remain decentralized, secure, and efficient by compensating those who contribute computing power to process and validate transactions.

While gas fees can fluctuate based on network demand, recent improvements like EIP-1559 have made fees more predictable and less volatile. For anyone using Ethereum or exploring decentralized finance (DeFi), NFTs, or DApps, having a clear understanding of gas fees can help you save money and improve transaction efficiency.

Further Reading

What Is the Ethereum London Hard Fork?

What Is the Ethereum Pectra Upgrade?

What Is Ethereum and How Does It Work?

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

Key Takeaways

Chainbase is a decentralized network that takes data from different blockchains and turns it into structured datasets that are easy to work with.

It runs on a dual-chain design where Cosmos handles network coordination and governance, and EigenLayer brings in Ethereum’s security and computing power through restaking.

The network runs on four core layers: Data Accessibility, Co-Processor, Execution, and Consensus.

Developers can write and publish manuscripts to transform raw blockchain data into useful formats, earning rewards whenever others use their work.

Introduction

Blockchain networks record a lot of valuable information, like every token transfer, smart contract interaction, NFT mint, and DAO governance vote. Even though the data is permanent, it’s often spread across different chains and stored in different formats. If you want to pull data from multiple networks, you might have to run your own nodes, write custom indexing code, or depend on external services that may not be reliable.

Chainbase is building a hyperdata network that pulls together data from different blockchains, organizes it, and makes it easy to work with. This lets developers create data-driven applications such as AI tools, DeFi analytics dashboards, and cross-chain wallets more efficiently and with fewer technical barriers.

What Is Chainbase?

Chainbase is a decentralized network that takes data from different blockchains and turns it into clean, structured datasets that are easy to work with. Instead of dealing with scattered or raw blockchain data, developers can use the platform to query, analyze, and act on multi-chain data in real time. 

This is especially valuable for artificial intelligence (AI) agents and cross-chain applications that depend on accurate, high-quality data to make decisions and operate effectively. 

How Does Chainbase Work?

Chainbase is powered by a dual-chain architecture that combines Cosmos and EigenLayer. The platform operates through a four-layer system, with each layer handling a specific part of the data journey. 

Data accessibility layer

Chainbase collects and organizes data from both on-chain and off-chain sources. On-chain data includes information like transaction histories and smart contract interactions, while off-chain covers larger or more private information like AI models or app metadata that are stored in decentralized systems. 

The data comes from a network of decentralized providers, so no single party has control. The platform is also able to verify the accuracy of data without revealing any sensitive information with zero-knowledge proofs (ZKP).

Co-processor layer

This layer is powered by manuscripts, which is a core concept of the Chainbase ecosystem. A manuscript is a script that defines how blockchain data should be processed, like what to extract or how to clean and format it in a way that apps and AI tools can use. 

For example, a developer might write a manuscript that filters out the token transfers from a smart contract or tracks wallet behavior patterns for fraud detection.

Once the manuscript is published to the network, anyone can use it and the original creator earns rewards each time it’s used. It’s a way for developers to turn their knowledge into something valuable and reusable. As more developers contribute, the platform evolves into a growing library of trusted, ready-made data tools that anyone can plug into.

Execution layer

The Chainbase Virtual Machine (CVM) is a custom-built environment designed for executing manuscripts at scale. It uses data and task parallelization to handle multiple jobs at once and enable fast and efficient processing even at scale.

This layer is secured by EigenLayer, which lets Autonomous Verifiable Services (AVS) node operators restake ether or liquid staking tokens (LSTs) to provide the computing resources needed. They help keep the network decentralized and secure and are rewarded based on how much work they do.

Consensus layer

Chainbase uses CometBFT, a Byzantine Fault Tolerant (BFT) consensus algorithm that offers fast and reliable finality. It also uses a Delegated Proof of Stake (DPoS) system, where validators check data operations and ensure everything stays consistent, while delegators can support trusted validators by staking their tokens.

Ecosystem Participants 

Developers 

Developers not only consume data to power their applications, but also produce it by building manuscripts. Using the Chainbase Software Development Kit (SDK), developers can:

Create manuscripts to extract and transform data for real-world use cases like AI models, DeFi dashboards, or fraud detection tools.

Access verified, cross-chain datasets to build smarter, faster DApps.

Earn rewards based on how often their manuscripts are used and how valuable they are to the ecosystem.

Operators

Operators provide the computing power that runs the Chainbase network’s execution Layer. They play a key role in processing manuscripts and keeping data workflows running efficiently at scale.

They run the CVM to execute data tasks and handle large volumes of information.

By restaking ETH or LSTs through EigenLayer, they gain the ability to participate in Chainbase’s decentralized execution system.

Their contributions are rewarded in tokens, with earnings on the performance and reliability of their infrastructure.

Validators

Validators are responsible for maintaining the integrity and security of the network. They confirm that all data transformations and transactions are valid and consistent. 

They take part in the network’s consensus process using the CometBFT and DPoS system.

They validate manuscript results, update the network state, and help maintain fast, fault-tolerant finality.

In return, they earn rewards for keeping the system accurate, trustworthy, and tamper-resistant.

Delegators

Delegators help secure the network by staking their tokens with trusted validators and operators. While they don’t run infrastructure themselves, their support is vital to the health and decentralization of the system.

They choose who to support by delegating their tokens to validators or operators they trust and earn a share of the rewards generated. 

Delegators can also take part in governance, voting on protocol upgrades, funding proposals, and other key decisions that shape the future of Chainbase.

C Token

The C token is the native utility token of the Chainbase ecosystem. The token is used for a variety of purposes, including:

Dataset access: C is used to pay for accessing datasets and running Manuscripts across the Chainbase network.

Staking & network security: Validators and operators are required to stake C tokens to help maintain the network and data processing workflows. Delegators can also stake their C tokens to back trusted participants, helping to secure the system and earning a share of the rewards in return.

Governance: C token holders have the ability to vote on important protocol decisions including upgrades, incentive structures, and ecosystem parameters, helping to guide the future of Chainbase.

To make Chainbase easier to access and use, the C token was launched on both Base and BNB Smart Chain (BSC). By supporting multiple chains, Chainbase aims to broaden its reach while giving users and developers more flexibility in how they interact with the ecosystem.

Chainbase (C) on Binance HODLer Airdrops

On July 18, 2025, Binance announced C as the 28th project on the Binance HODLer Airdrops. Users who subscribed their BNB to Simple Earn and/or On-Chain Yields products from July 6 to 9 were eligible to receive C airdrops. A total of 20 million C tokens were allocated to the program, accounting for 2% of the total token supply.

C was listed with the Seed Tag applied, allowing for trading against the USDT, USDC, BNB, FDUSD, and TRY pairs.

Closing Thoughts

Getting useful data from blockchains is difficult when you are dealing with multiple networks and different data formats. Chainbase is designed to make that process easier by turning scattered blockchain data into something clean, structured, and ready to use.

Further Reading

What Is a Virtual Machine (VM)?

What Are Modular Blockchains?

The Relationship Between Blockchain and AI

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

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Key Takeaways

Caldera is a Rollup-as-a-Service (RaaS) platform that helps developers launch custom, app-specific rollups with just a few clicks. 

The platform is built around two parts: the Rollup Engine (to create and manage rollups) and the Metalayer (to connect them for cross-chain communication). 

Rollups launched with Caldera are automatically connected and can communicate, share liquidity, and transfer assets with each other easily. 

Introduction

Building on Ethereum can be challenging when the network is busy. As more people use the network, transactions can take longer and cost more. Rollups help by moving activity off the main chain, but many still operate on their own like isolated islands, making it hard to move data or assets between different chains.

Caldera lets you launch your own rollup in minutes, designed specifically for your app and automatically connects it to other chains. That means faster transactions, lower costs, and a smoother experience for users and developers.

What Is Caldera?

Caldera is a Rollup-as-a-Service (RaaS) platform that lets developers launch rollups that are designed specifically for their app’s needs. Instead of starting from scratch, teams can use Caldera’s tools to quickly spin up fast, flexible rollups tailored for use cases like decentralized finance (DeFi), gaming, Non-Fungible Tokens (NFTs), or social platforms.

The Rollup Engine

At the heart of Caldera is the Rollup Engine, a powerful deployment system that lets developers launch and manage custom rollups in just a few clicks or Application Programming Interface (API) calls. This is similar to how Amazon Web Services (AWS) makes it easy to run web applications in the cloud, the Rollup Engine takes care of the heavy lifting so developers do not need to stress over the technical details or be blockchain experts to get started.

Metalayer

The Metalayer is the invisible network that links all Caldera rollups together, allowing them to communicate, share liquidity, and pass messages securely. Instead of each rollup being an isolated island, apps can interact with each other across chains, and users can move assets like tokens or NFTs seamlessly between them.

Together, the Rollup Engine and Metalayer let developers build flexible, application-specific chains without giving up the benefits of a shared ecosystem.

How Does Caldera Work?

1. Launch a rollup 

Developers start by choosing their rollup settings using the Rollup Engine:

Execution layer: Choose from popular rollup frameworks such as Arbitrum Nitro and Optimism Bedrock for optimistic rollups or go with zero-knowledge (ZK) solutions like zkSync’s ZK Stack or Polygon CDK.

Data availability: Choose between options like Ethereum, Celestia, or Avail to store transaction data.

Customization: Adjust performance settings, roll out software upgrades, and scale computing resources on demand

2. Connect instantly with the Metalayer

Once deployed, your rollup is automatically plugged into the Metalayer, which enables:

Intent-based bridging: If you want to move stablecoins like USDC from one rollup to another, the system automatically finds the fastest and cheapest way to do it. This is powered by bridging partners like Across (a cross-chain bridge), Eco (a protocol for efficient transaction routing), and Hyperlane.

Fast settlement: With Hyperlane handling the messaging layer, transfers and cross-chain communication are completed in seconds.

Developer Tools:  Caldera provides APIs, SDKs, and ready-to-use UI components for developers to build cross-chain apps without writing custom bridging logic.

3. Scale on demand

Caldera’s modular architecture lets developers:

Launch new rollups: A DeFi app could spin up a separate rollup just for high-volume traders, while a gaming platform might launch dedicated rollups for different game worlds or regions.

Upgrade without downtime: Developers can roll out protocol upgrades like adding new features or integrating with different data availability layers without disrupting the user experience.

Scaling compute resources: If demand increases, like during an NFT drop or a major in-game event, teams can increase computing power to maintain performance.

Ecosystem Overview 

Caldera is powering an expanding network of over 50 active rollups across a wide range of use cases, including DeFi, gaming, social apps, and infrastructure protocols. 

Some of the notable chains built on Caldera include:

Manta Pacific: A modular Layer 2 focused on ZK applications.

ApeChain: Designed for the ApeCoin ecosystem, enabling fast and cheap transactions for NFTs and gaming.

Injective’s inEVM: A rollup that brings EVM compatibility to the Injective ecosystem.

ERA Token

The ERA token is the native utility token of the Caldera ecosystem. The token is used for a variety of purposes, including:

Gas fees: ERA is used to pay for transaction fees across the Metalayer, supporting interactions between rollups.

Staking & Network Security: Validators stake ERA to help secure the network, verify cross-rollup messages, and support future subnets like those involved in generating ZK proofs.

Governance: ERA holders can propose and vote on protocol changes, grant funding, and elect members to roles such as the security council. While initial governance is bootstrapped by the Caldera Foundation, long-term decision-making will move to on-chain community voting.

Caldera (ERA) on Binance HODLer Airdrops

On July 16, 2025, Binance announced ERA as the 27th project on the Binance HODLer Airdrops. Users who subscribed their BNB to Simple Earn and/or On-Chain Yields products from July 1 to 5 were eligible to receive ERA airdrops. A total of 20 million ERA tokens were allocated to the program, accounting for 2% of the total token supply.

ERA was listed with the Seed Tag applied, allowing for trading against the USDT, USDC, BNB, FDUSD, and TRY pairs.

Closing Thoughts

Caldera offers a modular way to build and scale blockchain apps by letting teams launch custom rollups with built-in connectivity across chains. With the Rollup Engine handling deployment and the Metalayer supporting cross-chain communication, Caldera aims to make building on-chain apps faster, smoother, and more flexible.

Further Reading

What Is Cross-Chain Interoperability?

Quantum Computers and Cryptocurrencies

What Are Bitcoin Layer 2 Networks?

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

Key Takeaways

The Great Depression was a global economic crisis that began in 1929 and lasted through the 1930s. It led to substantial declines in employment, industrial output, and living standards worldwide.

The crisis began with the 1929 stock market crash and was worsened by bank failures, reduced trade, and falling consumer demand.

Government interventions, such as the New Deal in the United States and World War II production efforts, contributed to the eventual recovery.

The Great Depression influenced economic policymaking and the development of safety nets for future generations.

Introduction

The Great Depression stands as one of the most important events in economic history. Marked by widespread job loss, business failures, and a decline in quality of life for millions, it reshaped how governments and societies view economic stability and policymaking. Understanding the Great Depression not only sheds light on an important period of the past but also helps inform measures taken to avoid similar crises in the future.

What Caused the Great Depression?

The Great Depression didn’t have a single cause but rather emerged from a combination of factors. Let’s go through the main ones.

Stock market crash of 1929

The economic downturn began in the United States with the stock market crash of October 1929, often referred to as "Black Tuesday." Speculation had run rampant on the stock market throughout the decade, leading to artificially inflated valuations. 

When investors lost confidence and share prices began to collapse, it triggered a cascading effect. Millions of Americans—many investing with borrowed money—lost their savings overnight as the stock market spiraled downward.

Failures in the banking system

As panic spread, numerous banks experienced runs and failed. People who lost their savings had less and less to spend, further slowing economic activity.

Panic soon spread beyond Wall Street. Waves of bank failures swept across the United States as depositors tried to withdraw their money en masse. Since there was little insurance or regulation to protect savers, the demise of a single bank often meant that entire communities lost their life savings. With banks folding, credit lines dried up and impacted every sector of the economy.

Decline in international trade

While the crisis began in the United States, its effects were felt worldwide. Many European economies, already weakened by the costs of World War I, faced shrinking markets for their exports. 

Governments created new tariffs and protective barriers—such as America’s Smoot-Hawley Tariff Act of 1930—in hopes of shielding domestic industries. Unfortunately, these policies triggered retaliatory measures abroad, causing global trade to plummet.

Decreased consumer spending and investment

With rising unemployment and uncertainty, individuals and businesses cut back on spending and investment, creating a cycle of declining demand and further layoffs. The economic crisis became self-reinforcing, leaving little room for organic recovery.

Global Impact and Human Cost

The effects of the Great Depression were felt across the globe, with industrialized nations in North America, Europe, and beyond experiencing severe economic contractions.

Unemployment and poverty

In some countries, unemployment reached as high as 25%. Many people lost their jobs, and entire families struggled to afford basic necessities. Homelessness increased, and soup kitchens and bread lines became common in urban centers.

Business closures

Businesses failed by the thousands, from small local shops to industrial giants. Popular manufacturers, agricultural producers, and financial firms were forced to close as demand evaporated. The decline in production echoed through supply chains and entire communities.

Social and political shifts

The widespread economic hardship contributed to social unrest and political change. In some countries, economic instability became a breeding ground for political extremism and led to changes in leadership and government ideology. Democratic nations instituted reforms, while others saw the rise of authoritarian movements.

The Path to Recovery

The road to recovery from the Great Depression was long and uneven. No single solution sufficed. It took a combination of innovative policies and the extraordinary circumstances of global conflict to reignite economic engines.

Government programs

In the United States, President Franklin D. Roosevelt undertook an ambitious program of economic relief and reform known as the New Deal. These measures sought to provide jobs, stimulate demand, and restore faith in the financial sector. 

Initiatives ranged from public works projects to the establishment of regulatory bodies overseeing banks and the stock market. Many developed countries introduced their own versions of unemployment insurance, pension plans, and other welfare benefits during this era.

The impact of World War II

The onset of World War II prompted governments to inject resources into industry and infrastructure. This helped boost production and job creation, playing an important role in reversing the economic downturn in many countries.

Lasting Effects and Lessons Learned

The Great Depression had a lasting influence on both economic thought and government policy. In response to the crisis, regulators introduced important reforms and safety nets, including deposit insurance, securities regulation, and social security programs. 

In other words, policymakers developed a more interventionist approach, with governments taking on greater responsibility for managing the economy, ensuring bank stability, and providing a social safety net in times of crisis.

Closing Thoughts

Looking back, the Great Depression serves as an important reminder of how fragile the world economy can be. While a lot has changed since the 1930s, the lessons learned from that era still influence how leaders and experts handle today’s challenges.

Further Reading

What Is Crypto Market Sentiment?

The 2008 Financial Crisis Explained

The Psychology of Market Cycles

Black Monday and Stock Market Crashes Explained

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

🗞️ In The News 
Bitcoin surged past $118,000, setting a new all-time high.Metaplanet purchased 2,205 BTC, bringing its total holdings to 15,555 BTC.Remixpoint raised ¥31.5 billion (~$215M) to expand its Bitcoin treasury to 3,000 BTC.Tokyo-listed energy and fintech firm Remixpoint has raised 31.5 billion Japanese yen ($215 million) to expand its Bitcoin treasury, aiming to accumulate 3,000 BTC.Polygon deployed its most complex hard fork to date on July 10, introducing Heimdall 2.0.Decentralized exchange GMX was exploited for $42 million.

📖 Binance Academy Knowledge
What Is a Bitcoin Treasury Strategy?What Is a Strategic Bitcoin Reserve?What Is Lagrange (LA)?What Is a Virtual Machine (VM)?A Beginner’s Guide to TradingView

🔥 Binance Blog Highlights
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Key Takeaways

Lagrange is a decentralized infrastructure platform made up of three main parts: a ZK Prover Network, ZK Coprocessor, and the DeepProve zkML library.

The project helps developers outsource heavy computations and prove the results are valid using zero-knowledge proofs (ZKP).

Developers can use it to verify historical data, run off-chain logic, and move trusted information across blockchain networks.

Introduction

Let’s say you are trying to figure out the average price of ether (ETH) across several blockchain networks. It’s not an easy task if you are trying to avoid using oracles or paying high transaction fees to access historical data. 

Lagrange makes the process easier by moving the heavy computation off-chain, generating zero-knowledge proofs (ZKP) and verifying the results on-chain. This way, you can move, compute, and prove data across different blockchains more securely and efficiently.

What Is Lagrange?

Lagrange is a crypto infrastructure project that features three key products: a zero-knowledge (ZK) Prover Network, ZK Coprocessor, and the DeepProve zkML library.

ZK Prover Network

Lagrange’s Prover Network is a decentralized network of operators that is able to generate ZKP on demand. If a decentralized application (DApp) needs to prove that a result was computed correctly, it simply sends a request to Lagrange. 

The Prover Network does the complex math off-chain and returns a compact proof that smart contracts can verify. There is no need for the DApp to rerun the computation on-chain or rely on a third party for validation. 

Unlike traditional setups that rely on a single coordinator (which can become a bottleneck), Lagrange splits its network into independent subnetworks. That means multiple blockchains, rollups, or apps can use it all at once and the network can scale with demand.

The ZK Coprocessor

Lagrange’s ZK Coprocessor is designed to work like a trustless query engine for blockchain data. Developers can write SQL queries to pull data from smart contract storage across thousands of blocks, run calculations like averages or sums, and get a ZKP. This proof can then be plugged directly into a smart contract and verified.

This feature works across blockchain networks, so you can query data from Layer 2s like Base and verify the result on Ethereum without needing a bridge. Developers now have another option for querying blockchain data besides building their own blockchain indexers, writing complex custom logic, or relying on centralized APIs.

zkML DeepProve 

DeepProve is Lagrange’s zkML system that lets developers prove their Artificial Intelligence (AI) models are running correctly without revealing the model or its inputs. It works by generating ZKP for machine learning inferences, so anyone can verify that a prediction came from the right model and has not been tampered with. This gives you more confidence and trust in the AI response as it is backed by cryptographic proofs.

How Does Lagrange Work?

Prover Network

Lagrange’s Prover Network runs on EigenLayer and is backed by more than 85 institutional-grade Autonomous Verifiable Services (AVS) operators. These operators run a lightweight program called a worker binary that listens for incoming tasks. When a developer needs a proof, the network picks up the job and the assigned operators run the computation off-chain before returning a ZKP. 

There is a strong incentive for prover operators to stay reliable. If they do not complete their assigned jobs correctly or on time, they risk getting slashed, meaning they lose part of their staked funds. The Prover Network is designed to be flexible, with support for proof systems like Plonky2, Plonky3, and potentially other systems in the future, depending on their needs.

DARA (Double Auction Resource Allocation)

DARA is Lagrange’s resource allocation system that powers the Prover Network behind the scenes. The system matches developers who need computation with operators who provide it. Here’s how it works in practice:

If you're a developer, you define how much computation you need and how much you're willing to pay.

If you're an operator, you share how much capacity you can offer and your cost.

DARA automatically matches both sides, ensuring that developers don’t overpay and operators are rewarded fairly.

The system is designed to be efficient and fair: you only pay if your entire job can be completed. If the network can’t fully process your request, it won’t go through. By encouraging truthful bidding and eliminating partial or manipulated results, DARA helps ensure the marketplace runs smoothly.

Potential Use Cases

Cross-chain governance: Use Lagrange’s services to generate proofs of events across multiple blockchains. If a DAO vote takes place on Scroll, you can generate a proof and verify that result directly on Ethereum without needing a bridge.

Rollup infrastructure: Rollups can plug into Lagrange to outsource generating ZK or fraud proofs instead of building their own proving infrastructure.

Healthcare: AI models can be trained on sensitive patient data and can make predictions and prove correctness without revealing any personal health information. This enables privacy-preserving diagnostics and medical tools.

Finance and compliance: Financial institutions can verify that AI models meet regulatory requirements while keeping proprietary algorithms and data confidential. 

Lagrange Foundation and Labs

The Lagrange Foundation is a new, independent organization focused on growing the Lagrange ecosystem. It manages the day-to-day operations of the Prover Network and supports builders with resources like technical guidance, marketing, and ecosystem partnerships. On the other hand, Lagrange Labs will focus on research and development in areas like ZK proof generation and verifiable AI. The technologies developed by Labs will be integrated into the Prover Network over time, helping to support real-world use cases and long-term ecosystem growth.

LA Token

The LA token is the native utility token of the Lagrange ecosystem. The token is used for a variety of purposes, including:

Proof generation: You can use the token to submit ZK proof requests on the Lagrange network. The cost depends on how much computation your task requires.

Reward system for provers: Operators who generate or aggregate ZK proofs are paid in the token, no matter what currency the request came in. This helps align provers with the long-term success of the network.

Staking and delegation: Token holders can stake or delegate the token to specific provers. This helps reduce proving costs for selected operators and gives the community a say in distributing the rewards.

Securing the network: Provers must meet performance standards or risk losing part of their staked tokens. Delegators earn rewards based on how well their chosen provers do. Everyone has a shared interest in keeping the network trustworthy and running smoothly.

Lagrange (LA) on Binance HODLer Airdrops

On July 9, 2025, Binance announced LA as the 26th project on the Binance HODLer Airdrops. Users who subscribed their BNB to Simple Earn and/or On-Chain Yields products from June 22 to 25 were eligible to receive LA airdrops. A total of 15 million LA tokens were allocated to the program, accounting for 1.5% of the total token supply.

LA was listed with the Seed Tag applied, allowing for trading against the USDT, USDC, BNB, FDUSD, and TRY pairs.

Closing Thoughts

Lagrange offers a practical solution for developers and protocols that need scalable, verifiable off-chain computation. By combining a decentralized prover network, an efficient resource allocation system, and a developer-friendly coprocessor, Lagrange makes proving data and computation easier, faster, and more accessible.

Further Reading

What Is Liquid Staking?

Improving Crypto Transparency With Zero-Knowledge Proof

What Are Zk-Rollups? The Layer-2 Scalability Technique

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

Key Takeaways

Virtual machines (VMs) let you run different operating systems or applications on the same device without extra hardware. 

VMs are great for safely testing new software, trying out other systems, or isolating programs that might be risky.

VMs like the Ethereum Virtual Machine (EVM) enable smart contracts and decentralized applications (DApps) to run reliably across a global network of computers.

While VMs offer flexibility and control, they can come with trade-offs in performance, resource usage, and complexity.

Introduction

Have you ever wanted to run Windows on your MacBook or test a Linux app without changing your operating system or buying a separate computer? VMs let you do that by creating an isolated environment where different operating systems and applications can run safely. They’re also widely used in blockchain networks to support smart contracts and decentralized applications (DApps).

What Is a VM?

A VM is like a computer you can set up with just a few clicks, and no extra hardware is needed. You can install an operating system, save files, run apps, and connect to the internet, but you're running it inside your existing computer, also known as the host.

Your host system does the heavy lifting behind the scenes, lending out its memory, processing power, and storage so the VM can run smoothly. This is especially useful if you need to use software that's only available on another operating system. 

How Do VMs Actually Work?

Behind the scenes, a piece of software called a hypervisor manages all of this. The hypervisor takes your computer’s physical resources like CPU, Random Access Memory (RAM), and storage and divides them up so multiple VMs can use them at once.  

There are two main types of hypervisors:

Type 1 (Bare-metal): These are installed directly on hardware and are often used in data centers or cloud platforms. They’re built for performance and efficiency.

Type 2 (Hosted): These run on top of your regular operating system (like apps) and are suited for testing and development.

Once a VM is set up, you can start it just like a real computer and install software, browse the web, or build applications.

Why Use a VM?

1. Test new operating systems 

With a VM, you can test different operating systems without making any changes to your main computer. It’s like trying out a new system in a safe, separate space.

2. Isolate risky software

Need to open a file you are not sure about or test an unfamiliar app? Running it in a VM keeps your computer protected, so if you encounter malware or a system crash, your main computer won’t be affected.

3. Run legacy or unavailable software

Some programs only work on older systems like Windows XP. A VM can recreate that environment, letting you keep using software that might not run on today’s devices.

4. Develop and test code across platforms

VMs make it easier for developers to test code on different operating systems and simulate how new applications will behave in different environments.

5. Power the cloud

Many cloud services (like AWS, Azure, and Google Cloud) are built on VMs. When you launch a cloud instance, you are starting a VM in a remote data center that is ready to host websites, apps, or databases.

How Blockchain Networks Use VMs 

While traditional VMs are isolated sandboxes, blockchain virtual machines act as the engine that runs smart contracts in blockchain networks. The Ethereum Virtual Machine (EVM) lets developers write smart contracts in languages like Solidity, Vyper, and Yul and deploy them on Ethereum and other EVM-compatible networks. The EVM ensures that every node on the network follows the same rules when creating or interacting with smart contracts.

Blockchain networks implement their own types of VMs based on design goals. Some focus on speed and scalability, while others aim to be more secure or flexible for developers. Networks like NEAR and Cosmos use WebAssembly (WASM)-based VMs, which support smart contracts written in multiple programming languages. 

Other blockchain networks like Sui use MoveVM, which executes smart contracts written in the Move language. The Solana blockchain uses a custom runtime, often called the Solana Virtual Machine (SVM), that is designed to process transactions in parallel and handle large amounts of network activity.

Virtual Machines in Action 

You might not notice them, but VMs are working behind the scenes every time you interact with decentralized applications (DApps).

If you’re using a Decentralized Finance (DeFi) application like Uniswap to swap tokens, your transactions are being handled by smart contracts running inside the EVM.

If you’re minting an NFT, the VM is running the code that keeps track of who owns each NFT. When you make a purchase or transfer, the VM updates the records so ownership of the NFT stays accurate.

If you’re using a Layer 2 rollup, your transactions may be carried out by a specialized VM, such as a zkEVM. zkEVMs make it possible for zk-rollups to run smart contracts while benefiting from zero-knowledge proofs (ZKP).  

Limitations of VMs

1. Performance overhead: VMs add an extra layer between the hardware and the code being executed. This can slow things down or require more computing resources compared to running apps directly on a physical machine.

2. Operational complexity: Maintaining VMs (especially across cloud infrastructure or blockchain networks) takes a lot of effort to set up and update. This will take time and often requires specialized tools and knowledge.

3. Compatibility: Smart contracts are often designed for a specific VM environment. Code written for smart contracts on Ethereum will need to be rewritten or adapted to work on other non-compatible blockchains like Solana. This means developers need to spend extra time and effort if they want to launch the same app on multiple environments.

Closing Thoughts

VMs play an important role in how both regular computers and blockchain systems operate. They let you run different operating systems, test software safely, and use the same hardware for multiple tasks. 

Virtual machines are also used in blockchain networks to power smart contracts and decentralized apps. Even if you are not an expert, knowing how VMs work can give you a better sense of what’s happening under the hood in many of the DeFi tools and platforms we use.

Further Reading

What Are Modular Blockchains?

What Are Bitcoin Layer 2 Networks?

What Is a Smart Contract Security Audit?

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

🗞️ In The News 
Bitcoin climbed above $110,000, nearing its previous all-time high.The US Senate passed Trump’s budget bill.Michael Saylor’s Strategy has acquired 4,980 BTC for ~$531.9 million at ~$106,801 per bitcoin.Metaplanet purchased 1,005 BTC, bringing its total holdings to 13,350 BTC.The SEC approved the conversion of Grayscale’s large-cap crypto fund into a spot ETF.The European Central Bank announced a blockchain-based euro settlement pilot starting in 2026.A euro stablecoin project by DWS and Deutsche Bank received regulatory approval.The first US-listed Solana ETF officially went live, expanding institutional access to SOL.

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Who Is Michael Saylor?What Is a Stablecoin?What Is a Bitcoin Treasury Strategy?What Is Risk Premium?What Are Internet Capital Markets (ICM)?What Is Sahara AI (SAHARA)?

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Key Takeaways

Risk premium is basically the extra return you expect when you choose an investment that’s riskier than just keeping your money somewhere safer.

There are different types of risk premiums depending on things like market volatility, the chance a borrower won’t pay back (default risk), or how hard it is to sell an asset (liquidity).

Understanding risk premiums can help investors sort out which investments might be worth it, based on their investing style and risk profile.

Introduction

Investing is all about trying to get a good return without taking on more risk than you can handle. Some assets are considered safer than others, like government bonds or gold. On the other hand, investing in things like stocks, cryptocurrencies, or real estate usually means accepting higher risks.

Risk premium is a handy idea that helps guide investors as they look for ways to grow their money while keeping an eye on potential risks.

Risk Premium Explained

When you put your money into riskier options, there is a natural expectation of better returns. That extra bit you’re hoping to earn, compared to a safe investment, is what we call the risk premium. It’s basically the gap between what you hope to earn from a risky investment and what you could earn from a safe one.

For example, in the US, government Treasury bonds are considered safe because the chances of a government default are low. If you decide to buy into something less predictable, you want to get paid more for taking on that risk. The difference in potential returns between the safe bet and the riskier choice is the risk premium.

If a US bond pays 2% interest and a company bond is offering 5%, the risk premium is 3%. The company has to offer you more because there’s a real chance they could miss a payment or even go out of business.

Why the Risk Premium Matters

The main reason investors care about risk premium is because it helps them compare options. It’s not always smart to just go for the highest return; you have to weigh how likely you are to actually get that return—or lose money.

Risk premium is also important in models that professionals use, like the Capital Asset Pricing Model (CAPM), which helps estimate how much return an investment should ideally give when you consider its risk level.

On top of that, thinking about risk premiums can encourage people to diversify, or spread out, their investments. By having a mix of assets with different risk premiums, you can try to strike a balance between aiming for bigger returns and not exposing yourself to unnecessary risk.

Types of Risk Premiums

There are different reasons why investors want extra reward for taking risks, and so there are different types of risk premiums. 

For instance, the equity risk premium is the extra return people expect when they buy stocks instead of sticking with safer options like government bonds. Stocks generally swing up and down more, so the premium can be bigger.

Then there’s something called credit risk premium. That’s the added reward for lending money to borrowers that might not pay you back, like a company or a country with shaky finances.

Another kind is the liquidity risk premium. Some things you invest in, like certain real estate or rare collectibles, aren’t easy to sell on short notice. To make it worth your while, those investments might need to offer a higher expected return.

Cryptocurrency risk premium

Cryptocurrencies come with their own kind of risk premium. Because the crypto market is still fairly new and can be very volatile, investors usually expect higher potential returns compared to traditional investments like stocks or bonds.

While bitcoin is considered the safest option, altcoins tend to bring much higher risks. Things like price swings, changing regulations, rug pulls, hacking risks, and shifting narratives all add more uncertainty to crypto investments.

How to Calculate the Risk Premium

Working out the risk premium is pretty simple. You just subtract the return you could get from a safe investment (like a government bond) from the expected return on the riskier choice. For example, if you think a stock could return 8% a year, and a government bond pays 3%, the risk premium would be 5%.

This number isn’t set in stone. How big or small the premium is can change a lot, depending on what’s happening in the markets, how investors are feeling, and what makes the investment special or unusual.

What Can Impact the Risk Premium?

Risk premiums go up and down all the time. Things like the overall health of the economy or a sudden shock to the markets can make investors want more compensation for risk—or sometimes they’re willing to settle for less. When uncertainty is higher, the risk premium tends to increase. When things seem stable or everyone feels confident, the risk premium can shrink.

It also comes down to details about the investment itself. Investments that are new to the market, difficult to sell quickly, or very volatile usually have bigger risk premiums. Big news or macro events can also have an immediate impact on risk premiums across an entire industry or country.

Closing Thoughts

Understanding risk premium is helpful for anyone trying to make smarter investment choices. Knowing what it is, how to calculate it, and what might cause it to change gives you a better shot at building a portfolio that matches your goals and how much risk you can handle. 

At the end of the day, the risk premium reminds us that if you want a shot at bigger returns, you’ll almost always have to take on some extra risk. The trick is to figure out when that trade-off makes sense for you.

Further Reading

What Is Crypto Market Sentiment?

The 2008 Financial Crisis Explained

The Psychology of Market Cycles

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

Key Takeaways

Internet Capital Markets refer to digital assets that let anyone raise or invest money via blockchain without going through traditional banking or venture capitalist methods.

ICM platforms let creators launch tokens in seconds and give users early access to new projects. 

While they open up new opportunities, they also come with risks like scams, volatility, and lack of regulation. 

Introduction

Imagine if launching a startup could be as easy as making a single post on social media and getting funding from people all over the world. That’s the purpose of ICMs and ICM tokens. ICMs simplified the process of turning ideas into digital assets on the blockchain.

Traditional Fundraising Is Hard

Starting a business is tough, especially when it comes to finding money. Even if a founder lands a meeting with a venture capitalist (VC), the process can be slow, competitive, and full of gatekeeping. In some locations, you aren’t allowed to invest in early-stage startups at all or may be blocked by regulations that favor accredited investors. 

How Internet Capital Markets Work

ICMs use blockchain to make it easier and quicker for anyone to raise or invest money in new ideas. Instead of needing connections to VC firms or special investor status, you can launch a token straight from a social media post with no coding required. ICM platforms are designed to automate the entire process: once the post is made, a bot deploys the token, sets up a dynamic pricing model based on demand (see bonding curve), and distributes tokens to early backers. 

This model mirrors how traditional capital markets function but brings it fully on-chain, making the process faster, simpler, and open to anyone with an internet connection and a crypto wallet.

What Are Internet Capital Markets (ICM) Tokens?

ICM tokens are digital assets that let you take part in a project early on. Depending on how the token is set up, it might give you a say in how the project evolves (through voting), early access to features or content, or even a share of future earnings. 

However, ICM tokens aren’t the same as owning stock in a company. You’re not getting legal ownership or equity. Instead, you're getting something defined by code and shaped by the community around it. Although ICMs offer a more flexible, internet-native way to support and engage with ideas, it’s important to consider the inherent risks.

Pros and Cons of ICM Tokens

Pros

1. Open to everyone: No need to be an accredited investor—anyone with a Web3 wallet can participate. ICMs break down traditional barriers and make early-stage investing more inclusive.

2. 24/7: No waiting for stock markets to open. You can buy or sell ICM tokens anytime, from anywhere, because they live on public blockchains.

3. Simplified fundraising: Launching a token can be as simple as posting a tweet. Projects can raise capital quickly and test ideas without waiting months for funding.

4.  Growth potential: Integrated with social media, these tokens can go viral quickly and support internet-native projects looking to build fast.

Cons

1. Lack of regulation: ICM platforms generally operate without the regulatory protections found in traditional financial markets. This means you may come across projects that are unverified or misleading. It’s easier for scams, fake projects, and rug pulls to happen.

2. Volatility: Prices of ICM tokens can change quickly and unpredictably, sometimes rising or falling more than 50% in a single day. These shifts are often driven by sentiment or online trends rather than underlying fundamentals.

3. Security: Crypto wallets and users are constantly targeted by hackers and scammers. Without strong security and private key practices, you risk losing your funds. There is also the risk of exploits and bugs if the smart contracts aren’t coded properly.

Closing Thoughts

ICM tokens are opening up investing to everyone. Now, if you have an idea, you can launch a token in minutes. If you’re a supporter, all you need is a wallet to invest. However, Internet Capital Markets are risky, unregulated, and often tied more to hype than real value. Make sure to do your research and only risk what you can afford to lose.

Further Reading

What Is a Bitcoin Treasury Strategy?

What Is the Satoshi Test and How Does It Help With the Travel Rule?

How Can Tariffs Impact the Crypto Markets?

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

🗞️ In The News
Bitcoin rebounded from a weekly low of $98K to reach $107K.U.S. President Donald Trump announced a full ceasefire between Israel and Iran.Michael Saylor’s Strategy has acquired 245 BTC for ~$26 million at ~$105,856 per bitcoin.Metaplanet purchased 1,234 BTC, bringing its total holdings to 12,345 BTC and making it the fifth-largest corporate holder.Hong Kong unveiled new stablecoin regulations and plans for tokenized bonds.Invesco became the ninth firm to file for a spot Solana ETF.Trump-backed World Liberty plans to release a stablecoin audit and enable token transfers for its WLFI token.Mastercard expands stablecoin push with Paxos, Fiserv and Paypal integrations.Tether CEO Paolo Ardoino says the firm will become the biggest bitcoin miner by the end of 2025.
📖 Binance Academy Knowledge
Who Is Michael Saylor?What Is a Stablecoin?What Is a Bitcoin Treasury Strategy?What Is World Liberty Financial USD (USD1)?What Is Sahara AI (SAHARA)?What Is Newton Protocol (NEWT)?
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Key Takeaways

Sahara AI (SAHARA) is a decentralized platform that makes AI development, ownership, and usage accessible to everyone.

The project provides an accessible and transparent way to build, share, and monetize AI tools and data.

By using blockchain, Sahara ensures fair rewards for contributors and permissionless use of AI assets.

Introduction

Most of the AI we interact with today is developed and controlled by a small number of tech giants. While this is convenient, it also comes with trade-offs such as limited access, lack of transparency, and fewer opportunities for others to build or benefit. Projects like Sahara AI aim to change that by creating decentralized platforms that are open, fair, and designed to let anyone build, use, or contribute to AI in a meaningful way.

What Is Sahara AI?

Sahara AI is a decentralized platform designed to make working with artificial intelligence easier, fairer, and more open. Instead of relying on a few major tech companies, Sahara lets anyone, from solo developers to global teams, build, use, and earn from AI tools in a transparent, permissionless way. 

Whether you’re creating an AI model, sharing valuable data, or simply exploring what’s available, Sahara gives you the tools and freedom to participate. Everything is recorded on the blockchain, meaning your contributions are protected, and your rewards are handled automatically through smart contracts.

How Does Sahara AI Work?

Sahara AI is made up of five key parts, each helping users build, manage, and share AI tools and resources:

1. Sahara Blockchain

The Sahara Blockchain is the foundation that records all transactions, model ownerships, and contributions in a way that’s transparent and tamper-proof. Big datasets and models are stored off-chain to keep things fast and efficient, but important details such as ownership and transaction history are saved on-chain.

2. AI infrastructure

Training AI models takes a lot of power and coordination. Sahara provides a shared system where users can pitch in their computing power or collaborate on model development. This lets anyone, from a solo developer to a large team, train and deploy models efficiently.

3. Sahara AI Marketplace

Think of this as an app store for AI. Here, people can buy, sell, or share AI models, datasets, and agents. It’s powered by smart contracts that handle licensing and payments, so transactions are transparent and automatic. If you’ve built something useful, you can use the Sahara AI Marketplace to monetize it.

4. Development tools

Whether you're a coder or not, Sahara gives you the tools to create. Developers can use the Sahara Software Development Kit (SDK) and API to build powerful AI products, while non-technical users can use drag-and-drop interfaces and templates to launch AI tools without writing code.

5. Secure storage

Sahara includes secure vaults where you can store your models and data safely. Encryption and access controls ensure that only you or the people you choose can access what you’ve built or uploaded.

The Architecture of Sahara AI

Sahara AI is built on four interconnected layers that work together behind the scenes to power the platform:

Application layer

This is where you interact with Sahara AI through dashboards, apps, or no-code tools. It includes:

Sahara ID: Your identity and reputation on the platform.

Sahara Vaults: Your secure storage for models and data.

Sahara Agent: AI agents you can build and deploy.

Toolkits: For coding or no-code creation.

Marketplace: Where you can buy, sell, or share AI assets.

Transaction layer

This is the part of the system that keeps track of who owns what and what happens when someone buys, licenses, or uses an AI asset. It’s powered by:

Sahara Blockchain with the Tendermint algorithm for Byzantine Fault-Tolerant consensus.

Smart contracts that handle licensing, payments, and rewards.

Precompiles and protocols that make AI tasks more efficient and cost-effective.

Data layer

AI needs lots of data. This layer handles the storage and management of that data:

Metadata and key records are saved on-chain.

Large files are stored off-chain for efficiency.

Security features protect sensitive data.

Execution layer

This is where the real work happens. It runs AI training and inference tasks using the following:

High-performance infrastructure.

Coordinated task execution.

Abstractions for datasets, models, and computations.

Decentralized Governance

Sahara AI is governed by its community through the Sahara DAO. That means major decisions like protocol upgrades or funding allocations are made by the people who use and contribute to the platform. A supporting group, the Sahara Foundation, helps manage the transition to full decentralization and supports ecosystem growth, research, and long-term development.

SAHARA Token

The SAHARA token is the native utility token of the Sahara AI ecosystem. The token is used for a variety of purposes, including:

Access or license AI training data: You can use the token to obtain datasets needed to train AI models.

Use existing AI models: Rather than building a model from the ground up, you can pay to access AI models created by others.

Tap into computing power: Developing or running AI models takes a lot of resources. You can instead rent the computational infrastructure needed for training, deploying, or running inferences.

Pay per usage: With a pay-as-you-go pricing model, you are charged per interaction or inference.

Sahara AI (SAHARA) on Binance HODLer Airdrops

On June 24, 2025, Binance announced SAHARA as the 25th project on the Binance HODLer Airdrops. Users who subscribed their BNB to Simple Earn and/or On-Chain Yields products from June 18 to 21 were eligible to receive SAHARA airdrops. A total of 125 million SAHARA tokens were allocated to the program, accounting for 1.25% of the total token supply.

SAHARA was listed with the Seed Tag applied, allowing for trading against the USDT, USDC, BNB, FDUSD, and TRY pairs.

Closing Thoughts

Sahara AI offers a fresh approach to how AI is developed and distributed. Instead of concentrating control in the hands of a few, it opens the door for anyone to participate. Whether it’s by creating models, contributing data, offering compute resources, or simply using AI in practical ways.

Further Reading

What Are AI Agents?

What Is Newton Protocol (NEWT)?

What Is a Decentralized Autonomous Organization (DAO)?

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.