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Blockchain Layer 1 vs. Layer 2 Scaling Solutions
TL;DR
The popularity of crypto and blockchain is growing exponentially, and so is the number of users and transactions. While it's easy to see how revolutionary blockchain is, scalability – a system’s capacity to grow while accommodating increasing demand – has always been a challenge. Public blockchain networks that are highly decentralized and secure often struggle to achieve high throughput.
This is often described as the Blockchain Trilemma, which states that it’s virtually impossible for a decentralized system to simultaneously achieve equally high levels of decentralization, security, and scalability. Realistically, blockchain networks can only have two out of three factors.
Fortunately, however, thousands of enthusiasts and experts are working on scaling solutions. Some of these solutions are designed to tweak the architecture of the main blockchain (Layer 1), while others target Layer 2 protocols that operate on top of the underlying network.
Introduction
With a large number of blockchains and cryptocurrencies available, you might not know if you’re using a Layer 1 or Layer 2 chain. There are benefits in hiding blockchain complexity, but it’s worth getting to understand a system you’re investing in or using. With this article, you’ll understand the differences between Layer 1 and Layer 2 blockchains and various scalability solutions.
What is a blockchain Layer 1 vs. Layer 2?
The term Layer 1 refers to the base level of a blockchain architecture. It’s the main structure of a blockchain network. Bitcoin, Ethereum, and BNB Chain are examples of Layer 1 blockchains. Layer 2 refers to networks built on top of other blockchains. So if Bitcoin is a Layer 1, the Lightning Network that runs on top of it is an example of a Layer 2.
Blockchain network scalability improvements can be categorized into Layer 1 and Layer 2 solutions. A Layer 1 solution will change the rules and mechanisms of the original blockchain directly. A Layer 2 solution will use an external, parallel network to facilitate transactions away from the mainchain.
Why is blockchain scalability important?
Imagine a new highway being built between a major city and its fast-growing suburb. As the amount of traffic passing through the highway increases and congestion becomes common – especially during rush hours – the average time to get from A to B can increase significantly. No wonder, given that road infrastructure has its limited capacity and the demand is ever-growing.
Now, what can the authorities do to help more commuters travel via this route faster? One solution would be to improve the highway itself, adding extra lanes to each side of the road. This, however, is not always practical as it is an expensive solution that would cause considerable trouble to those already using the highway. An alternative is to get creative and consider various approaches not associated with making changes to the core infrastructure, such as building additional service roads or even launching a light rail transit line along the highway.
In the world of blockchain technology, the primary highway would be a Layer 1 (the main network), while the additional service roads would be Layer 2 solutions (secondary network to improve the overall capacity).
Bitcoin, Ethereum, and Polkadot are all considered Layer 1 blockchains. They are the base-layer blockchains that process and record transactions for their respective ecosystems, featuring a native cryptocurrency – typically used to pay fees and provide broader utility. Polygon is one example of a Layer 2 scaling solution for Ethereum. The Polygon network regularly commits checkpoints to the Ethereum mainnet to update it of its status.
The throughput capability is a vital element of a blockchain. It’s a measure of speed and efficiency that shows how many transactions can be processed and recorded within a specific timeframe. As the number of users increases and the number of simultaneous transactions goes up, a Layer 1 blockchain can become slow and expensive to use. This is especially true of Layer 1 blockchains which use a Proof of Work mechanism as opposed to Proof of Stake.
Current Layer 1 issues
Bitcoin and Ethereum are good examples of Layer 1 networks with scaling issues. Both secure the network through a distributed consensus model. This means that all transactions are verified by multiple nodes before being validated. The so-called mining nodes all compete to solve a complex computational puzzle, and the successful miners are rewarded in the network’s native cryptocurrency.
In other words, all transactions require the independent verification of several nodes before getting confirmed. This is an efficient way of logging and recording correct, verified data to the blockchain while mitigating the risk of attack by bad actors. However, once you have a network as popular as Ethereum or Bitcoin, the throughput demand becomes an ever-increasing issue. In times of network congestion, users will face slower confirmation times and higher transaction fees.
How do Layer 1 scaling solutions work?
There are several options available to Layer 1 blockchains that can increase throughput and overall network capacity. In the case of blockchains using Proof of Work, a transition to Proof of Stake could be an option to increase transactions per second (TPS) while reducing processing fees. Still, there are mixed views in the crypto community regarding the benefits and long-term implications of Proof of Stake.
Scaling solutions on Layer 1 networks are typically introduced by the project’s development team. Depending on the solution, the community will need to hard fork or soft fork the network. Some small changes are backward compatible, such as Bitcoin’s SegWit update.
Larger changes, like increasing the Bitcoin’s block size to 8MB, require a hard fork. This creates two versions of the blockchain, one with the update and one without. Another option to increase a network’s throughput is sharding. This splits a blockchain’s operations across multiple smaller sections that can process data simultaneously rather than sequentially.
How do Layer 2 scaling solutions work?
As discussed, Layer 2 solutions rely on secondary networks that work in parallel or independent of the main chain.
Rollups
Zero-knowledge rollups (the most common kind) bundle off-chain Layer 2 transactions and submit them as one transaction on the main chain. These systems use validity proofs to check the integrity of transactions. Assets are held on the original chain with a bridging smart contract, and the smart contract confirms the rollup is functioning as intended. This provides the security of the original network with the benefits of a less resource-intensive rollup.
Sidechains
Sidechains are independent blockchain networks with their own sets of validators. This means the bridging smart contract on the main chain doesn’t verify the validity of the sidechain network. Therefore, you need to trust the sidechain is operating correctly as it’s able to control assets on the original chain.
State channels
A state channel is a two-way communication environment between the transacting parties. The parties seal off a part of the underlying blockchain and connect it to an off-chain transaction channel. This is usually done via a pre-agreed smart contract or a multi-signature. The parties then execute a transaction or a batch of transactions off-chain, without immediately submitting transaction data to the underlying distributed ledger (i.e., the main chain). Once all transactions in the set are complete, the final “state” of the channel is broadcasted to the blockchain for validation. This mechanism allows to improve transaction speed and increases the overall capacity of the network. Solutions like the Bitcoin Lightning Network and Ethereum's Raiden operate based on state channels.
Nested blockchains
This solution relies on a set of secondary chains that sit on top of the main, “parent” blockchain. Nested blockchains operate according to the rules and parameters set by the parent chain. The main chain doesn’t participate in executing transactions and its role is limited to dispute resolution when necessary. The day-to-day work is delegated to “child” chains that return the processed transactions to the main chain upon completion off the main chain. OmiseGO’s Plasma project is an instance of a Layer 2 nested blockchain solution.
Limitations of Layer 1 and Layer 2 scaling solutions
Both Layer 1 and Layer 2 solutions have unique advantages and disadvantages. Working with Layer 1 can provide the most effective solution for large-scale protocol improvements. However, this also means that validators must be convinced to accept changes through a hard fork.
One possible example where validators may not want to do this is changing from Proof of Work to Proof of Stake. Miners will lose income by this switch to a more efficient system, disincentivizing them from improving scalability.
Layer 2 provides a much quicker way to improve scalability. However, depending on the method used, you can lose a lot of the security of the original blockchain. Users trust networks like Ethereum and Bitcoin for their resilience and track record of security. By taking aspects off the Layer 1, you often have to rely on the Layer 2 team and network for efficiency and security.
What’s next after Layer 1 and Layer 2?
One key question is whether we will even need Layer 2 solutions as Layer 1s become more scalable. Existing blockchains see improvements, and new networks are created with good scalability already. However, it will take a long time for major systems to improve their scalability, and it’s not guaranteed. The most likely option is for Layer 1s to focus on security, and allow Layer 2 networks to tailor their services to specific use cases.
In the near future, there’s a good chance large chains like Ethereum will still dominate due to their large user and developer community. However, its large, decentralized validator set and trusted reputation creates a solid base for targeted Layer 2 solutions.
Closing thoughts
Since crypto began, the hunt for improved scalability has created a two-pronged approach with Layer 1 improvements and Layer 2 solutions. If you’ve got a diverse crypto portfolio, there’s a good chance you already have exposure to both Layer 1 and Layer 2 networks. Now, you understand the differences between the two as well as the different approaches to scaling that they offer.
The popularity of crypto and blockchain is growing exponentially, and so is the number of users and transactions. While it's easy to see how revolutionary blockchain is, scalability – a system’s capacity to grow while accommodating increasing demand – has always been a challenge. Public blockchain networks that are highly decentralized and secure often struggle to achieve high throughput.
This is often described as the Blockchain Trilemma, which states that it’s virtually impossible for a decentralized system to simultaneously achieve equally high levels of decentralization, security, and scalability. Realistically, blockchain networks can only have two out of three factors.
Fortunately, however, thousands of enthusiasts and experts are working on scaling solutions. Some of these solutions are designed to tweak the architecture of the main blockchain (Layer 1), while others target Layer 2 protocols that operate on top of the underlying network.
Introduction
With a large number of blockchains and cryptocurrencies available, you might not know if you’re using a Layer 1 or Layer 2 chain. There are benefits in hiding blockchain complexity, but it’s worth getting to understand a system you’re investing in or using. With this article, you’ll understand the differences between Layer 1 and Layer 2 blockchains and various scalability solutions.
What is a blockchain Layer 1 vs. Layer 2?
The term Layer 1 refers to the base level of a blockchain architecture. It’s the main structure of a blockchain network. Bitcoin, Ethereum, and BNB Chain are examples of Layer 1 blockchains. Layer 2 refers to networks built on top of other blockchains. So if Bitcoin is a Layer 1, the Lightning Network that runs on top of it is an example of a Layer 2.
Blockchain network scalability improvements can be categorized into Layer 1 and Layer 2 solutions. A Layer 1 solution will change the rules and mechanisms of the original blockchain directly. A Layer 2 solution will use an external, parallel network to facilitate transactions away from the mainchain.
Why is blockchain scalability important?
Imagine a new highway being built between a major city and its fast-growing suburb. As the amount of traffic passing through the highway increases and congestion becomes common – especially during rush hours – the average time to get from A to B can increase significantly. No wonder, given that road infrastructure has its limited capacity and the demand is ever-growing.
Now, what can the authorities do to help more commuters travel via this route faster? One solution would be to improve the highway itself, adding extra lanes to each side of the road. This, however, is not always practical as it is an expensive solution that would cause considerable trouble to those already using the highway. An alternative is to get creative and consider various approaches not associated with making changes to the core infrastructure, such as building additional service roads or even launching a light rail transit line along the highway.
In the world of blockchain technology, the primary highway would be a Layer 1 (the main network), while the additional service roads would be Layer 2 solutions (secondary network to improve the overall capacity).
Bitcoin, Ethereum, and Polkadot are all considered Layer 1 blockchains. They are the base-layer blockchains that process and record transactions for their respective ecosystems, featuring a native cryptocurrency – typically used to pay fees and provide broader utility. Polygon is one example of a Layer 2 scaling solution for Ethereum. The Polygon network regularly commits checkpoints to the Ethereum mainnet to update it of its status.
The throughput capability is a vital element of a blockchain. It’s a measure of speed and efficiency that shows how many transactions can be processed and recorded within a specific timeframe. As the number of users increases and the number of simultaneous transactions goes up, a Layer 1 blockchain can become slow and expensive to use. This is especially true of Layer 1 blockchains which use a Proof of Work mechanism as opposed to Proof of Stake.
Current Layer 1 issues
Bitcoin and Ethereum are good examples of Layer 1 networks with scaling issues. Both secure the network through a distributed consensus model. This means that all transactions are verified by multiple nodes before being validated. The so-called mining nodes all compete to solve a complex computational puzzle, and the successful miners are rewarded in the network’s native cryptocurrency.
In other words, all transactions require the independent verification of several nodes before getting confirmed. This is an efficient way of logging and recording correct, verified data to the blockchain while mitigating the risk of attack by bad actors. However, once you have a network as popular as Ethereum or Bitcoin, the throughput demand becomes an ever-increasing issue. In times of network congestion, users will face slower confirmation times and higher transaction fees.
How do Layer 1 scaling solutions work?
There are several options available to Layer 1 blockchains that can increase throughput and overall network capacity. In the case of blockchains using Proof of Work, a transition to Proof of Stake could be an option to increase transactions per second (TPS) while reducing processing fees. Still, there are mixed views in the crypto community regarding the benefits and long-term implications of Proof of Stake.
Scaling solutions on Layer 1 networks are typically introduced by the project’s development team. Depending on the solution, the community will need to hard fork or soft fork the network. Some small changes are backward compatible, such as Bitcoin’s SegWit update.
Larger changes, like increasing the Bitcoin’s block size to 8MB, require a hard fork. This creates two versions of the blockchain, one with the update and one without. Another option to increase a network’s throughput is sharding. This splits a blockchain’s operations across multiple smaller sections that can process data simultaneously rather than sequentially.
How do Layer 2 scaling solutions work?
As discussed, Layer 2 solutions rely on secondary networks that work in parallel or independent of the main chain.
Rollups
Zero-knowledge rollups (the most common kind) bundle off-chain Layer 2 transactions and submit them as one transaction on the main chain. These systems use validity proofs to check the integrity of transactions. Assets are held on the original chain with a bridging smart contract, and the smart contract confirms the rollup is functioning as intended. This provides the security of the original network with the benefits of a less resource-intensive rollup.
Sidechains
Sidechains are independent blockchain networks with their own sets of validators. This means the bridging smart contract on the main chain doesn’t verify the validity of the sidechain network. Therefore, you need to trust the sidechain is operating correctly as it’s able to control assets on the original chain.
State channels
A state channel is a two-way communication environment between the transacting parties. The parties seal off a part of the underlying blockchain and connect it to an off-chain transaction channel. This is usually done via a pre-agreed smart contract or a multi-signature. The parties then execute a transaction or a batch of transactions off-chain, without immediately submitting transaction data to the underlying distributed ledger (i.e., the main chain). Once all transactions in the set are complete, the final “state” of the channel is broadcasted to the blockchain for validation. This mechanism allows to improve transaction speed and increases the overall capacity of the network. Solutions like the Bitcoin Lightning Network and Ethereum's Raiden operate based on state channels.
Nested blockchains
This solution relies on a set of secondary chains that sit on top of the main, “parent” blockchain. Nested blockchains operate according to the rules and parameters set by the parent chain. The main chain doesn’t participate in executing transactions and its role is limited to dispute resolution when necessary. The day-to-day work is delegated to “child” chains that return the processed transactions to the main chain upon completion off the main chain. OmiseGO’s Plasma project is an instance of a Layer 2 nested blockchain solution.
Limitations of Layer 1 and Layer 2 scaling solutions
Both Layer 1 and Layer 2 solutions have unique advantages and disadvantages. Working with Layer 1 can provide the most effective solution for large-scale protocol improvements. However, this also means that validators must be convinced to accept changes through a hard fork.
One possible example where validators may not want to do this is changing from Proof of Work to Proof of Stake. Miners will lose income by this switch to a more efficient system, disincentivizing them from improving scalability.
Layer 2 provides a much quicker way to improve scalability. However, depending on the method used, you can lose a lot of the security of the original blockchain. Users trust networks like Ethereum and Bitcoin for their resilience and track record of security. By taking aspects off the Layer 1, you often have to rely on the Layer 2 team and network for efficiency and security.
What’s next after Layer 1 and Layer 2?
One key question is whether we will even need Layer 2 solutions as Layer 1s become more scalable. Existing blockchains see improvements, and new networks are created with good scalability already. However, it will take a long time for major systems to improve their scalability, and it’s not guaranteed. The most likely option is for Layer 1s to focus on security, and allow Layer 2 networks to tailor their services to specific use cases.
In the near future, there’s a good chance large chains like Ethereum will still dominate due to their large user and developer community. However, its large, decentralized validator set and trusted reputation creates a solid base for targeted Layer 2 solutions.
Closing thoughts
Since crypto began, the hunt for improved scalability has created a two-pronged approach with Layer 1 improvements and Layer 2 solutions. If you’ve got a diverse crypto portfolio, there’s a good chance you already have exposure to both Layer 1 and Layer 2 networks. Now, you understand the differences between the two as well as the different approaches to scaling that they offer.
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Binance News
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Binance Alpha to List Fireverse (FIR)
Binance announced on X that Binance Alpha will list Fireverse (FIR) on August 6, 2025.Eligible users can claim their airdrop using Binance Alpha Points on the Alpha Events page once trading opens, with further details to be announced soon.
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Binance Academy
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Who Is Vitalik Buterin?
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?
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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.
nice
Binance Academy
--
What Is Crypto Staking and How Does It Work?
Key Takeaways
Staking is when you lock cryptocurrency to support the security and functionality of a blockchain, earning rewards in return.
Popular among crypto holders, staking allows investors to support their favorite blockchains while growing their holdings over time.
Staking is only available in certain blockchains that use the Proof of Stake consensus mechanism. Examples include Ethereum, Solana, Cardano, Avalanche, Polkadot, Cosmos, and many others.
Although staking can increase your crypto holdings, it’s important to consider potential risks, including loss of funds due to volatility, slashing, or technical failures.
What Is Staking in Crypto?
Staking is the process of locking up a certain amount of cryptocurrency to help secure and support the operations of a blockchain network. By doing so, stakers are rewarded with additional cryptocurrency, making it a popular method for investors to earn passive income. Staking is an important part of Proof of Stake blockchains.
What Is Proof of Stake?
Proof of Stake (PoS) is a consensus mechanism used to verify and validate transactions. It was created in 2011 as an alternative to the Proof of Work (PoW) mechanism used by Bitcoin.
The main difference between PoW and PoS is that PoS does not rely on mining, which is a resource-intensive process. Instead of having miners use computational power to solve complex math problems, PoS networks rely on validators selected based on the number of coins they hold and are willing to stake.
How Does Crypto Staking Work?
In short, staking involves locking up your cryptocurrency to participate in the activities of a blockchain network. The process may differ depending on the blockchain, but here's how it typically works:
1. Selection of validators: In PoS blockchains, validators are chosen based on a combination of factors, including the number of coins staked, the length of time they’ve been staked, and sometimes random selection.
2. Validation of transactions: Once selected, the validator is responsible for checking and validating transactions, ensuring they are legitimate.
3. Block creation: The validated transactions are grouped into a block, which is then added to the blockchain, which is essentially a distributed ledger.
4. Rewards: As a reward for their work, validators earn a portion of the transaction fees and, in some cases, new cryptocurrency coins.
Types of Staking
Depending on your level of technical expertise and the amount of crypto you want to stake, there are different ways to do it. Some of the most common types of staking include:
Solo or self-staking: Involves running a validator node. This option gives you the most control but requires significant technical knowledge and responsibility. If not done properly, you may lose your assets due to slashing penalizations.
Exchange staking: Some cryptocurrency exchanges offer staking services, providing the easiest way to stake without handling the technicalities yourself. This method is also known as “staking as a service”. For example, you can earn daily rewards with Binance ETH Staking.
Delegated staking: You can delegate your coins to a trusted validator or staking service, allowing them to handle the technical aspects. Some altcoins offer this option directly from their native crypto wallets.
Staking pools: Pooled staking allows you to stake coins with other users, increasing your chances of earning rewards without the need to run your own node.
What Is a Staking Pool?
A staking pool is a group of cryptocurrency holders who combine their staking power to increase their chances of being selected as validators. By pooling resources, participants can earn staking rewards proportionally to their contribution to the pool.
This option is especially beneficial for smaller investors who may not have enough coins to meet the minimum staking requirements. However, it’s essential to research and choose a reputable staking pool, as fees and security can vary.
Staking vs. Liquid Staking
Liquid staking is a newer form of staking that allows users to stake their assets without losing liquidity. Unlike conventional staking, where assets are often locked and inaccessible during the staking period, liquid staking introduces mechanisms that enable users to maintain liquidity while still earning staking rewards.
One common approach involves issuing liquid staking tokens (LSTs), which are tokens that represent the staked assets. For instance, when you stake ETH on Binance, you will receive WBETH in return, which can be traded or used elsewhere without compromising the ETH staking rewards. Similarly, when you stake ETH on a platform like Lido, you will receive an LST called stETH in return.
There are also platforms that allow direct staking without issuing LSTs, known as native liquid staking, as seen with ADA on the Cardano blockchain. This innovation gives users the benefits of staking while retaining the ability to use their assets freely.
The Advantages of Staking Your Crypto
Staking is a way to make your idle assets work for you, meaning you can generate rewards while helping secure your favorite blockchain networks. Crypto staking is particularly common among long-term crypto holders who want to get the most out of their holdings.
Why stake?
Earn rewards: Staking allows you to earn additional cryptocurrency by holding your coins in a staking wallet, which can be a great way to generate passive income.
Support the network: By staking, you help secure the network and ensure its proper functioning, contributing to its overall health.
Governance participation: In some networks, staking grants you voting rights, allowing you to influence the network’s future direction.
Energy efficiency: Unlike PoW mining, staking requires significantly less energy, making it a more environmentally friendly option.
Is Staking Crypto Worth It?
Yes. It’s usually worth staking your idle crypto assets to generate passive income – especially if you are a long-term holder and want to support the project. However, the potential rewards and risks can vary depending on the cryptocurrency and platform of choice.
For example, if a DeFi staking platform offers great returns but fails to provide security, your staked assets could be stolen or lost. Market volatility is another risk factor that may offset rewards or cause losses.
Risks of Staking
While crypto staking can generate rewards, it also involves risks. Some of the potential risks of staking include:
1. Market volatility: If the price of the crypto you are staking drops significantly, there is a good chance your staking rewards won’t be enough to cover your losses.
2. Slashing risk: If you become a PoS validator, you need to ensure your staking operations are working as intended. Validators who act maliciously or fail to maintain their node can be penalized, resulting in a loss of staked funds.
3. Centralization risk: If a small number of validators control most of the staked coins, it could lead to centralization, which may threaten the network’s security.
4. Technical risk: Some types of staking require locking up your coins for a specific period. Technical issues, like smart contract mistakes or software bugs, can result in loss of access or frozen funds.
5. Third-party risk: If you stake through a third-party service, you are trusting others with your funds. If the platform gets hacked, your funds may be at risk. DeFi platforms may also involve similar risks, especially when you are required to grant full access to your crypto wallet.
How to Stake Crypto in 2024
1. Choose a PoS cryptocurrency: Select a cryptocurrency that supports staking. Ensure you understand the staking requirements and rewards.
2. Set up a wallet: Use a wallet compatible with staking. It’s safer to use popular wallets, such as Binance Web3 Wallet, MetaMask, or TrustWallet.
3. Start staking: Follow the network’s instructions to stake your coins, either by running a validator node, delegating to a validator, or joining a staking pool.
Keep in mind that the Web3 wallets are just interfaces to staking services and do not control the underlying protocols. Give preference to well-established blockchains like Ethereum and Solana and do your own research before taking financial risks.
How Are Staking Rewards Calculated?
Staking rewards vary by network and are often determined by factors such as:
The amount of cryptocurrency you stake.
The length of time you've been staking.
The total number of staked coins in the network.
The network’s transaction fees and coin inflation rate.
In some blockchains, rewards are distributed as a fixed percentage, making it easier to predict your earnings. Staking rewards are often measured by their estimated annual returns, i.e., annual percentage rate (APR).
Can You Withdraw Staked Crypto?
Usually, yes. You should be able to withdraw your staked crypto at any time. However, the exact mechanisms and rules will vary from one staking platform to another. In some cases, withdrawing staked assets early may lead to partial or total loss of the staking rewards. Check the staking rules of the blockchain or platform you are using.
It’s worth noting that the Ethereum Shanghai upgrade of 2023 enabled staking withdrawals on the Ethereum network. The upgrade enables ETH stakers to opt in to automatically receive their staking rewards and withdraw their locked ETH at any time.
Why Can’t You Stake All Cryptocurrencies?
Staking is specific to PoS blockchains. Cryptocurrencies like Bitcoin, which operate on a PoW consensus mechanism, cannot be staked. Even within PoS networks, not all cryptocurrencies support staking, as they may use different mechanisms to incentivize participation.
Closing Thoughts
Staking cryptocurrency offers a way to participate in blockchain networks while earning rewards. Still, it’s crucial to understand the risks involved, including market volatility, third-party, slashing, and technical risks. By carefully choosing your staking method and thoroughly researching the network, you can effectively contribute to the blockchain ecosystem and potentially earn passive income.
Further Reading
What Is Liquid Staking?
What Is Proof of Stake (PoS)?
Liquid Staking Token (LST)
Proof of Work (PoW) vs. Proof of Stake (PoS)
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. 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 here 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.
Staking is when you lock cryptocurrency to support the security and functionality of a blockchain, earning rewards in return.
Popular among crypto holders, staking allows investors to support their favorite blockchains while growing their holdings over time.
Staking is only available in certain blockchains that use the Proof of Stake consensus mechanism. Examples include Ethereum, Solana, Cardano, Avalanche, Polkadot, Cosmos, and many others.
Although staking can increase your crypto holdings, it’s important to consider potential risks, including loss of funds due to volatility, slashing, or technical failures.
What Is Staking in Crypto?
Staking is the process of locking up a certain amount of cryptocurrency to help secure and support the operations of a blockchain network. By doing so, stakers are rewarded with additional cryptocurrency, making it a popular method for investors to earn passive income. Staking is an important part of Proof of Stake blockchains.
What Is Proof of Stake?
Proof of Stake (PoS) is a consensus mechanism used to verify and validate transactions. It was created in 2011 as an alternative to the Proof of Work (PoW) mechanism used by Bitcoin.
The main difference between PoW and PoS is that PoS does not rely on mining, which is a resource-intensive process. Instead of having miners use computational power to solve complex math problems, PoS networks rely on validators selected based on the number of coins they hold and are willing to stake.
How Does Crypto Staking Work?
In short, staking involves locking up your cryptocurrency to participate in the activities of a blockchain network. The process may differ depending on the blockchain, but here's how it typically works:
1. Selection of validators: In PoS blockchains, validators are chosen based on a combination of factors, including the number of coins staked, the length of time they’ve been staked, and sometimes random selection.
2. Validation of transactions: Once selected, the validator is responsible for checking and validating transactions, ensuring they are legitimate.
3. Block creation: The validated transactions are grouped into a block, which is then added to the blockchain, which is essentially a distributed ledger.
4. Rewards: As a reward for their work, validators earn a portion of the transaction fees and, in some cases, new cryptocurrency coins.
Types of Staking
Depending on your level of technical expertise and the amount of crypto you want to stake, there are different ways to do it. Some of the most common types of staking include:
Solo or self-staking: Involves running a validator node. This option gives you the most control but requires significant technical knowledge and responsibility. If not done properly, you may lose your assets due to slashing penalizations.
Exchange staking: Some cryptocurrency exchanges offer staking services, providing the easiest way to stake without handling the technicalities yourself. This method is also known as “staking as a service”. For example, you can earn daily rewards with Binance ETH Staking.
Delegated staking: You can delegate your coins to a trusted validator or staking service, allowing them to handle the technical aspects. Some altcoins offer this option directly from their native crypto wallets.
Staking pools: Pooled staking allows you to stake coins with other users, increasing your chances of earning rewards without the need to run your own node.
What Is a Staking Pool?
A staking pool is a group of cryptocurrency holders who combine their staking power to increase their chances of being selected as validators. By pooling resources, participants can earn staking rewards proportionally to their contribution to the pool.
This option is especially beneficial for smaller investors who may not have enough coins to meet the minimum staking requirements. However, it’s essential to research and choose a reputable staking pool, as fees and security can vary.
Staking vs. Liquid Staking
Liquid staking is a newer form of staking that allows users to stake their assets without losing liquidity. Unlike conventional staking, where assets are often locked and inaccessible during the staking period, liquid staking introduces mechanisms that enable users to maintain liquidity while still earning staking rewards.
One common approach involves issuing liquid staking tokens (LSTs), which are tokens that represent the staked assets. For instance, when you stake ETH on Binance, you will receive WBETH in return, which can be traded or used elsewhere without compromising the ETH staking rewards. Similarly, when you stake ETH on a platform like Lido, you will receive an LST called stETH in return.
There are also platforms that allow direct staking without issuing LSTs, known as native liquid staking, as seen with ADA on the Cardano blockchain. This innovation gives users the benefits of staking while retaining the ability to use their assets freely.
The Advantages of Staking Your Crypto
Staking is a way to make your idle assets work for you, meaning you can generate rewards while helping secure your favorite blockchain networks. Crypto staking is particularly common among long-term crypto holders who want to get the most out of their holdings.
Why stake?
Earn rewards: Staking allows you to earn additional cryptocurrency by holding your coins in a staking wallet, which can be a great way to generate passive income.
Support the network: By staking, you help secure the network and ensure its proper functioning, contributing to its overall health.
Governance participation: In some networks, staking grants you voting rights, allowing you to influence the network’s future direction.
Energy efficiency: Unlike PoW mining, staking requires significantly less energy, making it a more environmentally friendly option.
Is Staking Crypto Worth It?
Yes. It’s usually worth staking your idle crypto assets to generate passive income – especially if you are a long-term holder and want to support the project. However, the potential rewards and risks can vary depending on the cryptocurrency and platform of choice.
For example, if a DeFi staking platform offers great returns but fails to provide security, your staked assets could be stolen or lost. Market volatility is another risk factor that may offset rewards or cause losses.
Risks of Staking
While crypto staking can generate rewards, it also involves risks. Some of the potential risks of staking include:
1. Market volatility: If the price of the crypto you are staking drops significantly, there is a good chance your staking rewards won’t be enough to cover your losses.
2. Slashing risk: If you become a PoS validator, you need to ensure your staking operations are working as intended. Validators who act maliciously or fail to maintain their node can be penalized, resulting in a loss of staked funds.
3. Centralization risk: If a small number of validators control most of the staked coins, it could lead to centralization, which may threaten the network’s security.
4. Technical risk: Some types of staking require locking up your coins for a specific period. Technical issues, like smart contract mistakes or software bugs, can result in loss of access or frozen funds.
5. Third-party risk: If you stake through a third-party service, you are trusting others with your funds. If the platform gets hacked, your funds may be at risk. DeFi platforms may also involve similar risks, especially when you are required to grant full access to your crypto wallet.
How to Stake Crypto in 2024
1. Choose a PoS cryptocurrency: Select a cryptocurrency that supports staking. Ensure you understand the staking requirements and rewards.
2. Set up a wallet: Use a wallet compatible with staking. It’s safer to use popular wallets, such as Binance Web3 Wallet, MetaMask, or TrustWallet.
3. Start staking: Follow the network’s instructions to stake your coins, either by running a validator node, delegating to a validator, or joining a staking pool.
Keep in mind that the Web3 wallets are just interfaces to staking services and do not control the underlying protocols. Give preference to well-established blockchains like Ethereum and Solana and do your own research before taking financial risks.
How Are Staking Rewards Calculated?
Staking rewards vary by network and are often determined by factors such as:
The amount of cryptocurrency you stake.
The length of time you've been staking.
The total number of staked coins in the network.
The network’s transaction fees and coin inflation rate.
In some blockchains, rewards are distributed as a fixed percentage, making it easier to predict your earnings. Staking rewards are often measured by their estimated annual returns, i.e., annual percentage rate (APR).
Can You Withdraw Staked Crypto?
Usually, yes. You should be able to withdraw your staked crypto at any time. However, the exact mechanisms and rules will vary from one staking platform to another. In some cases, withdrawing staked assets early may lead to partial or total loss of the staking rewards. Check the staking rules of the blockchain or platform you are using.
It’s worth noting that the Ethereum Shanghai upgrade of 2023 enabled staking withdrawals on the Ethereum network. The upgrade enables ETH stakers to opt in to automatically receive their staking rewards and withdraw their locked ETH at any time.
Why Can’t You Stake All Cryptocurrencies?
Staking is specific to PoS blockchains. Cryptocurrencies like Bitcoin, which operate on a PoW consensus mechanism, cannot be staked. Even within PoS networks, not all cryptocurrencies support staking, as they may use different mechanisms to incentivize participation.
Closing Thoughts
Staking cryptocurrency offers a way to participate in blockchain networks while earning rewards. Still, it’s crucial to understand the risks involved, including market volatility, third-party, slashing, and technical risks. By carefully choosing your staking method and thoroughly researching the network, you can effectively contribute to the blockchain ecosystem and potentially earn passive income.
Further Reading
What Is Liquid Staking?
What Is Proof of Stake (PoS)?
Liquid Staking Token (LST)
Proof of Work (PoW) vs. Proof of Stake (PoS)
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. 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 here 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.
nice
On Fire?
#trading challenge on #Binance
Capital $7.01
Target 1: $100 - Completed
Target 2: $1000 - In Progress
I have made #USDT $961.28 on day 7.
How did i manage to do this even with $7.01?
1. Trade pair with high liquidity i.e $BTC or $ETH
2. Use max leverage but with 20% margin maintenance.
3. Repeat no.1 and no.2
I can do this, you can do it too!
Update:
$7.01 -> $1000 🔥 completed 🔥
Latest: $1112.91
#trading challenge on #Binance
Capital $7.01
Target 1: $100 - Completed
Target 2: $1000 - In Progress
I have made #USDT $961.28 on day 7.
How did i manage to do this even with $7.01?
1. Trade pair with high liquidity i.e $BTC or $ETH
2. Use max leverage but with 20% margin maintenance.
3. Repeat no.1 and no.2
I can do this, you can do it too!
Update:
$7.01 -> $1000 🔥 completed 🔥
Latest: $1112.91
nice
Convert 13.32942205 TREE to 4.87028515 USDT
nice
Binance Global Türkçe
--
Join the Favorite Token Campaign!
Celebrate your favorite Binance tokens and share which one you like the most for a chance to win part of the 1,500 #FDUSDT prize pool.
How Can You Participate?
1. Choose Your Token: Choose your favorite token on Binance.
2. Share Your Thoughts: Write a short post (at least 100 characters) explaining why you love it.
3. Cashtag and Hashtag: Tag the token of your choice and use the hashtag #FavoriteToken.
Awards:
Shared Prize Pool: All qualified participants share a prize pool of 1,350 FDUSD.
How Can You Participate?
1. Choose Your Token: Choose your favorite token on Binance.
2. Share Your Thoughts: Write a short post (at least 100 characters) explaining why you love it.
3. Cashtag and Hashtag: Tag the token of your choice and use the hashtag #FavoriteToken.
Awards:
Shared Prize Pool: All qualified participants share a prize pool of 1,350 FDUSD.
nice
Binance Square Official
--
CreatorPad FAQ and T&Cs
CreatorPad is a new monetization platform for Binance Square creators to earn rewards for high-quality content creation.
More about CreatorPad.
FAQ:
How do I participate in the campaigns?
Check out the available campaigns on Creatorpad and complete the tasks.
Tasks might include:
Posting about a project on Binance SquareUsing a specific hashtag or coin tagFollowing official project accountsMaking a trade on Binance
Why is my Square post task not verified?
Ensure that all task requirements are met, all required tags will need to be highlighted in yellow for it to be eligible. Double check for spelling errors in hashtags and make sure to mention the right project account.
How do I check that all my tasks are verified as completed?
Beside each task box a green tick will appear when the task is completed.
What is the difference between the two leaderboard tabs?
The Creator Leaderboard ranks the top 100 creators on Square, not tied to a specific campaign or project. The Project Leaderboard ranks the top 100 creators about a project, based on the quality and quantity of relevant, project related content you produce.
Mindshare refers to the comprehensive score that evaluates a creator’s content quality, influence, engagement, and other factors.
The Creator Leaderboard ranks the top 100 creators on Square. If you are not on the leaderboard, you rank outside of the top 100.
Project Leaderboard is a specialized ranking for creators working on a specific project. Only creators who’ve completed all the tasks for that project are eligible to be listed. Rankings are determined by the quality of content produced by each creator, with higher-quality content earning better positions on the leaderboard.
How are scores calculated?
Posts will be reviewed and ranked using our content scoring algorithm, which takes into account the following criteria:
Creativity
This measures how novel, unique, or fresh your ideas and expressions are. Originality is highly encouraged—using AI-generated content is not promoted, as we value high-quality, creative, and original works. We appreciate posts that introduce new concepts, formats, or perspectives. It’s more about high-quality, original work that stands out. Whether it’s through new ideas, unique storytelling, or clever use of multimedia, if your content is creative and adds something new, it’ll score higher.
Professionalism
This looks at how deep and well-crafted your content is, plus the quality of multimedia elements like images, videos, charts, or infographics. We really want creators to focus on high-quality, in-depth content that shows off their expertise. Whether it's a researched article, industry analysis, or expert commentary, we value creators who dive deep into niche areas—whether that’s on-chain analytics, GameFi, or EVM technology. If your content helps people understand complex topics better, it’s going to get a higher score.
Relevance
Here, we’re looking at how well your content taps into trending topics in the crypto and blockchain space. Posts that give in-depth analysis, research, or timely insights into emerging trends will rank higher. We want creators to approach crypto projects, markets, or trends from different angles—whether that’s reviewing new projects, analyzing market movements, or exploring tech advancements. Whether it’s DeFi, NFTs, or Layer-2 solutions, content that’s practical, explores real-world use cases, or uncovers market opportunities will stand out. Plus, if you can make smart predictions based on current trends, that’ll give you extra points.
Terms and conditions:
All eligible users are required to complete account verification (KYC) to receive rewards from this Activity.Illegally bulk-registered accounts or sub-accounts are not eligible to participate or receive any rewards. Each X account can only be linked to one Binance Square account. Only participation via Binance master accounts will be eligible for rewards. Winners will be notified via a push notification under Creator Center > Square Assistant. Voucher rewards will be distributed within 14 working days after the Activity ends. Users may check their voucher rewards via Profile > Rewards Hub. The validity period for the token voucher is set at seven days from the day of distribution. Learn how to redeem a voucher.Binance reserves the right to cancel a user’s eligibility in this Activity if the account is involved in any behavior that breaches the Binance Square Community Management Guidelines or Binance Square Community Platform Terms and Conditions.Binance reserves the right to disqualify any participants who tamper with Binance program code, or interfere with the operation of Binance program code with other software.Binance reserves the right at any time in its sole and absolute discretion to determine and/or amend or vary these terms and conditions without prior notice, including but not limited to canceling, extending, terminating or suspending this activity, the eligibility terms and criteria, the selection and number of winners, and the timing of any act to be done, and all participants shall be bound by these amendments.Binance reserves the right of final interpretation of this Activity.Additional promotion terms and conditions can be accessed here.Trading volumes on all FDUSD, TUSD, and USDT trading pairs will not count toward the trading requirement for EEA users in the Activity.In compliance with MiCA requirements, unauthorized stablecoins are subject to certain restrictions for EEA users. For more information, please click here.There may be discrepancies between this original content in English and any translated versions. Please refer to the original English version for the most accurate information, in case any discrepancies arise.
Earn your share by visiting CreatorPad and completing tasks now!
More about CreatorPad.
FAQ:
How do I participate in the campaigns?
Check out the available campaigns on Creatorpad and complete the tasks.
Tasks might include:
Posting about a project on Binance SquareUsing a specific hashtag or coin tagFollowing official project accountsMaking a trade on Binance
Why is my Square post task not verified?
Ensure that all task requirements are met, all required tags will need to be highlighted in yellow for it to be eligible. Double check for spelling errors in hashtags and make sure to mention the right project account.
How do I check that all my tasks are verified as completed?
Beside each task box a green tick will appear when the task is completed.
What is the difference between the two leaderboard tabs?
The Creator Leaderboard ranks the top 100 creators on Square, not tied to a specific campaign or project. The Project Leaderboard ranks the top 100 creators about a project, based on the quality and quantity of relevant, project related content you produce.
Mindshare refers to the comprehensive score that evaluates a creator’s content quality, influence, engagement, and other factors.
The Creator Leaderboard ranks the top 100 creators on Square. If you are not on the leaderboard, you rank outside of the top 100.
Project Leaderboard is a specialized ranking for creators working on a specific project. Only creators who’ve completed all the tasks for that project are eligible to be listed. Rankings are determined by the quality of content produced by each creator, with higher-quality content earning better positions on the leaderboard.
How are scores calculated?
Posts will be reviewed and ranked using our content scoring algorithm, which takes into account the following criteria:
Creativity
This measures how novel, unique, or fresh your ideas and expressions are. Originality is highly encouraged—using AI-generated content is not promoted, as we value high-quality, creative, and original works. We appreciate posts that introduce new concepts, formats, or perspectives. It’s more about high-quality, original work that stands out. Whether it’s through new ideas, unique storytelling, or clever use of multimedia, if your content is creative and adds something new, it’ll score higher.
Professionalism
This looks at how deep and well-crafted your content is, plus the quality of multimedia elements like images, videos, charts, or infographics. We really want creators to focus on high-quality, in-depth content that shows off their expertise. Whether it's a researched article, industry analysis, or expert commentary, we value creators who dive deep into niche areas—whether that’s on-chain analytics, GameFi, or EVM technology. If your content helps people understand complex topics better, it’s going to get a higher score.
Relevance
Here, we’re looking at how well your content taps into trending topics in the crypto and blockchain space. Posts that give in-depth analysis, research, or timely insights into emerging trends will rank higher. We want creators to approach crypto projects, markets, or trends from different angles—whether that’s reviewing new projects, analyzing market movements, or exploring tech advancements. Whether it’s DeFi, NFTs, or Layer-2 solutions, content that’s practical, explores real-world use cases, or uncovers market opportunities will stand out. Plus, if you can make smart predictions based on current trends, that’ll give you extra points.
Terms and conditions:
All eligible users are required to complete account verification (KYC) to receive rewards from this Activity.Illegally bulk-registered accounts or sub-accounts are not eligible to participate or receive any rewards. Each X account can only be linked to one Binance Square account. Only participation via Binance master accounts will be eligible for rewards. Winners will be notified via a push notification under Creator Center > Square Assistant. Voucher rewards will be distributed within 14 working days after the Activity ends. Users may check their voucher rewards via Profile > Rewards Hub. The validity period for the token voucher is set at seven days from the day of distribution. Learn how to redeem a voucher.Binance reserves the right to cancel a user’s eligibility in this Activity if the account is involved in any behavior that breaches the Binance Square Community Management Guidelines or Binance Square Community Platform Terms and Conditions.Binance reserves the right to disqualify any participants who tamper with Binance program code, or interfere with the operation of Binance program code with other software.Binance reserves the right at any time in its sole and absolute discretion to determine and/or amend or vary these terms and conditions without prior notice, including but not limited to canceling, extending, terminating or suspending this activity, the eligibility terms and criteria, the selection and number of winners, and the timing of any act to be done, and all participants shall be bound by these amendments.Binance reserves the right of final interpretation of this Activity.Additional promotion terms and conditions can be accessed here.Trading volumes on all FDUSD, TUSD, and USDT trading pairs will not count toward the trading requirement for EEA users in the Activity.In compliance with MiCA requirements, unauthorized stablecoins are subject to certain restrictions for EEA users. For more information, please click here.There may be discrepancies between this original content in English and any translated versions. Please refer to the original English version for the most accurate information, in case any discrepancies arise.
Earn your share by visiting CreatorPad and completing tasks now!
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Binance Square Official
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CreatorPad FAQ and T&Cs
CreatorPad is a new monetization platform for Binance Square creators to earn rewards for high-quality content creation.
More about CreatorPad.
FAQ:
How do I participate in the campaigns?
Check out the available campaigns on Creatorpad and complete the tasks.
Tasks might include:
Posting about a project on Binance SquareUsing a specific hashtag or coin tagFollowing official project accountsMaking a trade on Binance
Why is my Square post task not verified?
Ensure that all task requirements are met, all required tags will need to be highlighted in yellow for it to be eligible. Double check for spelling errors in hashtags and make sure to mention the right project account.
How do I check that all my tasks are verified as completed?
Beside each task box a green tick will appear when the task is completed.
What is the difference between the two leaderboard tabs?
The Creator Leaderboard ranks the top 100 creators on Square, not tied to a specific campaign or project. The Project Leaderboard ranks the top 100 creators about a project, based on the quality and quantity of relevant, project related content you produce.
Mindshare refers to the comprehensive score that evaluates a creator’s content quality, influence, engagement, and other factors.
The Creator Leaderboard ranks the top 100 creators on Square. If you are not on the leaderboard, you rank outside of the top 100.
Project Leaderboard is a specialized ranking for creators working on a specific project. Only creators who’ve completed all the tasks for that project are eligible to be listed. Rankings are determined by the quality of content produced by each creator, with higher-quality content earning better positions on the leaderboard.
How are scores calculated?
Posts will be reviewed and ranked using our content scoring algorithm, which takes into account the following criteria:
Creativity
This measures how novel, unique, or fresh your ideas and expressions are. Originality is highly encouraged—using AI-generated content is not promoted, as we value high-quality, creative, and original works. We appreciate posts that introduce new concepts, formats, or perspectives. It’s more about high-quality, original work that stands out. Whether it’s through new ideas, unique storytelling, or clever use of multimedia, if your content is creative and adds something new, it’ll score higher.
Professionalism
This looks at how deep and well-crafted your content is, plus the quality of multimedia elements like images, videos, charts, or infographics. We really want creators to focus on high-quality, in-depth content that shows off their expertise. Whether it's a researched article, industry analysis, or expert commentary, we value creators who dive deep into niche areas—whether that’s on-chain analytics, GameFi, or EVM technology. If your content helps people understand complex topics better, it’s going to get a higher score.
Relevance
Here, we’re looking at how well your content taps into trending topics in the crypto and blockchain space. Posts that give in-depth analysis, research, or timely insights into emerging trends will rank higher. We want creators to approach crypto projects, markets, or trends from different angles—whether that’s reviewing new projects, analyzing market movements, or exploring tech advancements. Whether it’s DeFi, NFTs, or Layer-2 solutions, content that’s practical, explores real-world use cases, or uncovers market opportunities will stand out. Plus, if you can make smart predictions based on current trends, that’ll give you extra points.
Terms and conditions:
All eligible users are required to complete account verification (KYC) to receive rewards from this Activity.Illegally bulk-registered accounts or sub-accounts are not eligible to participate or receive any rewards. Each X account can only be linked to one Binance Square account. Only participation via Binance master accounts will be eligible for rewards. Winners will be notified via a push notification under Creator Center > Square Assistant. Voucher rewards will be distributed within 14 working days after the Activity ends. Users may check their voucher rewards via Profile > Rewards Hub. The validity period for the token voucher is set at seven days from the day of distribution. Learn how to redeem a voucher.Binance reserves the right to cancel a user’s eligibility in this Activity if the account is involved in any behavior that breaches the Binance Square Community Management Guidelines or Binance Square Community Platform Terms and Conditions.Binance reserves the right to disqualify any participants who tamper with Binance program code, or interfere with the operation of Binance program code with other software.Binance reserves the right at any time in its sole and absolute discretion to determine and/or amend or vary these terms and conditions without prior notice, including but not limited to canceling, extending, terminating or suspending this activity, the eligibility terms and criteria, the selection and number of winners, and the timing of any act to be done, and all participants shall be bound by these amendments.Binance reserves the right of final interpretation of this Activity.Additional promotion terms and conditions can be accessed here.Trading volumes on all FDUSD, TUSD, and USDT trading pairs will not count toward the trading requirement for EEA users in the Activity.In compliance with MiCA requirements, unauthorized stablecoins are subject to certain restrictions for EEA users. For more information, please click here.There may be discrepancies between this original content in English and any translated versions. Please refer to the original English version for the most accurate information, in case any discrepancies arise.
Earn your share by visiting CreatorPad and completing tasks now!
More about CreatorPad.
FAQ:
How do I participate in the campaigns?
Check out the available campaigns on Creatorpad and complete the tasks.
Tasks might include:
Posting about a project on Binance SquareUsing a specific hashtag or coin tagFollowing official project accountsMaking a trade on Binance
Why is my Square post task not verified?
Ensure that all task requirements are met, all required tags will need to be highlighted in yellow for it to be eligible. Double check for spelling errors in hashtags and make sure to mention the right project account.
How do I check that all my tasks are verified as completed?
Beside each task box a green tick will appear when the task is completed.
What is the difference between the two leaderboard tabs?
The Creator Leaderboard ranks the top 100 creators on Square, not tied to a specific campaign or project. The Project Leaderboard ranks the top 100 creators about a project, based on the quality and quantity of relevant, project related content you produce.
Mindshare refers to the comprehensive score that evaluates a creator’s content quality, influence, engagement, and other factors.
The Creator Leaderboard ranks the top 100 creators on Square. If you are not on the leaderboard, you rank outside of the top 100.
Project Leaderboard is a specialized ranking for creators working on a specific project. Only creators who’ve completed all the tasks for that project are eligible to be listed. Rankings are determined by the quality of content produced by each creator, with higher-quality content earning better positions on the leaderboard.
How are scores calculated?
Posts will be reviewed and ranked using our content scoring algorithm, which takes into account the following criteria:
Creativity
This measures how novel, unique, or fresh your ideas and expressions are. Originality is highly encouraged—using AI-generated content is not promoted, as we value high-quality, creative, and original works. We appreciate posts that introduce new concepts, formats, or perspectives. It’s more about high-quality, original work that stands out. Whether it’s through new ideas, unique storytelling, or clever use of multimedia, if your content is creative and adds something new, it’ll score higher.
Professionalism
This looks at how deep and well-crafted your content is, plus the quality of multimedia elements like images, videos, charts, or infographics. We really want creators to focus on high-quality, in-depth content that shows off their expertise. Whether it's a researched article, industry analysis, or expert commentary, we value creators who dive deep into niche areas—whether that’s on-chain analytics, GameFi, or EVM technology. If your content helps people understand complex topics better, it’s going to get a higher score.
Relevance
Here, we’re looking at how well your content taps into trending topics in the crypto and blockchain space. Posts that give in-depth analysis, research, or timely insights into emerging trends will rank higher. We want creators to approach crypto projects, markets, or trends from different angles—whether that’s reviewing new projects, analyzing market movements, or exploring tech advancements. Whether it’s DeFi, NFTs, or Layer-2 solutions, content that’s practical, explores real-world use cases, or uncovers market opportunities will stand out. Plus, if you can make smart predictions based on current trends, that’ll give you extra points.
Terms and conditions:
All eligible users are required to complete account verification (KYC) to receive rewards from this Activity.Illegally bulk-registered accounts or sub-accounts are not eligible to participate or receive any rewards. Each X account can only be linked to one Binance Square account. Only participation via Binance master accounts will be eligible for rewards. Winners will be notified via a push notification under Creator Center > Square Assistant. Voucher rewards will be distributed within 14 working days after the Activity ends. Users may check their voucher rewards via Profile > Rewards Hub. The validity period for the token voucher is set at seven days from the day of distribution. Learn how to redeem a voucher.Binance reserves the right to cancel a user’s eligibility in this Activity if the account is involved in any behavior that breaches the Binance Square Community Management Guidelines or Binance Square Community Platform Terms and Conditions.Binance reserves the right to disqualify any participants who tamper with Binance program code, or interfere with the operation of Binance program code with other software.Binance reserves the right at any time in its sole and absolute discretion to determine and/or amend or vary these terms and conditions without prior notice, including but not limited to canceling, extending, terminating or suspending this activity, the eligibility terms and criteria, the selection and number of winners, and the timing of any act to be done, and all participants shall be bound by these amendments.Binance reserves the right of final interpretation of this Activity.Additional promotion terms and conditions can be accessed here.Trading volumes on all FDUSD, TUSD, and USDT trading pairs will not count toward the trading requirement for EEA users in the Activity.In compliance with MiCA requirements, unauthorized stablecoins are subject to certain restrictions for EEA users. For more information, please click here.There may be discrepancies between this original content in English and any translated versions. Please refer to the original English version for the most accurate information, in case any discrepancies arise.
Earn your share by visiting CreatorPad and completing tasks now!
@calderaxyz and use hashtag #Caldera
Create at least one original post on Binance Square with a minimum of 100 characters. Your post must include a mention of @calderaxyz and contain the hashtag #caldera and $ERA to be eligible. Content should be relevant to Caldera and original. Top 300 creators on the leaderboard will share 70% of the reward pool
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Create at least one original post on Binance Square with a minimum of 100 characters. Your post must include a mention of @calderaxyz and contain the hashtag #caldera and $ERA to be eligible. Content should be relevant to Caldera and original. Top 300 creators on the leaderboard will share 70% of the reward pool
very very nice
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I still primarily expect that we are entering a Wave 4 correction.
Key correction zone: $4,285 – $3,535
Rule: corrections usually retest the previous internal Wave 4 → so we should at least see a lower low under $4,062.
Wave 4 corrections are time-based → likely we’ll see an extended sideways range before continuation.
On the right side of my chart, I’ve sketched an alternative scenario: Wave 4 already completed, which would mean we push directly into Wave 5. In that case, the target zone would be $5,700 – $6,800, but that would also imply the completion of this upward structure, followed by a much larger correction.
I favor the Wave 4 sideways scenario for several reasons:
Wave 3 itself was very extended → not typical for a clean new 1–2 setup.
Within Wave 3, Wave 4 to Wave 5 was extremely extended → extended 5s often appear in Wave 3s.
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