ICO vs IEO vs STO (2025): What’s the Difference—and Which Fits Your Project?

Since 2017, token fundraising has evolved from wide-open ICOs to exchange-hosted IEOs and fully regulated STOs. This guide explains how each model works today, where they’re legal, the investor protections involved, and when you’d pick one over the other.

New to crypto? Start with our primer: How to get started in cryptocurrency and our explainer on what a stablecoin is.

ICO vs IEO vs STO: quick comparison

Model	Who sells the tokens?	Typical buyer checks	Regulatory posture	Liquidity expectations	Best for
ICO (Initial Coin Offering)	Project team (direct on site / launchpad)	Varies widely; KYC/AML not guaranteed	Often pitched as “utility”; still subject to securities tests like Howey in the U.S.	High if listed; risk of never listing	Community-driven projects with credible utility and strong disclosures
IEO (Initial Exchange Offering)	Crypto exchange runs the sale and listing	Exchange KYC/AML; geo-blocking by jurisdiction	Exchange due-diligence + local promo rules (e.g., UK FCA promotions)	Usually lists day-one on the host exchange	Teams prioritizing immediate access to an exchange user base
STO (Security Token Offering)	Issuer or registered intermediary	Full KYC/AML; often limited to accredited/eligible investors	Treated as securities (e.g., Reg D/Reg S/Reg A+ in U.S.; MiCA/MiFID-adjacent in EU)	Lower early liquidity; trades on ATS/MTF venues where available	Asset-backed or revenue-share offerings needing legal certainty

What is an ICO?

An Initial Coin Offering (ICO) sells a project’s native utility token directly to the public, usually before a full product launch. Investors typically use BTC/ETH or stablecoins to buy in. ICOs exploded in 2017–2018, then cooled as regulators clarified that many token sales meet the definition of a security under the U.S. Howey test and the SEC’s 2017 DAO Report interpretation.

Pros

• Fast to launch; global reach
• Community marketing (airdrops, allowlists) can accelerate traction
• Lower up-front platform fees than IEOs/STOs

Cons

• High compliance risk if the token functions like a security
• Buyer protections vary; fraud/scams historically common
• Listing risk—tokens may never achieve exchange liquidity

What is an IEO?

An Initial Exchange Offering (IEO) is a token sale hosted by a crypto exchange. The exchange manages KYC/AML, runs the crowdsale, and (usually) lists the token after the sale. This offers instant visibility and a built-in user base, but you pay listing/marketing fees and accept stricter checks. Regulators have warned that IEOs are not exempt from securities laws or advertising restrictions (e.g., the SEC’s investor alerts, UK FCA promotion rules). :contentReference[oaicite:1]{index=1}

Pros

• Immediate exchange listing and distribution
• Exchange due-diligence + standardized KYC/AML
• Higher trust for retail buyers vs. self-run ICO websites

Cons

• Higher costs and stricter eligibility
• Jurisdictional geo-blocks can shrink your audience
• You still face securities-law analysis in many countries

What is an STO?

A Security Token Offering (STO) sells securities in token form—equity, revenue share, debt, or asset-backed claims—recorded on a blockchain. In the U.S., STOs are issued under existing exemptions (e.g., Reg D/Reg S or Reg A+), while secondary trading typically occurs on registered alternative trading systems (ATS). The approach delivers legal clarity and investor protections at the cost of higher time and compliance. :contentReference[oaicite:2]{index=2}

Pros

• Strong investor protections; clear legal footing
• Works well for asset-backed or revenue-share models
• Institutional participation more feasible

Cons

• Higher legal/filing costs; longer timelines
• Early liquidity can be limited to compliant venues
• Cross-border sales are complex

Regulatory snapshot (2025)

• United States: Tokens that meet the Howey investment-contract test are securities; the SEC’s DAO Report set the tone in 2017. Issuers commonly use Reg D (accredited), Reg S (offshore), or Reg A+ (wider distribution) when structuring STOs. :contentReference[oaicite:3]{index=3}
• European Union: MiCA entered into force in 2023, with major provisions fully effective by late 2024, creating a harmonized regime for crypto-asset issuers and service providers (disclosures, authorization, market integrity). :contentReference[oaicite:4]{index=4}
• United Kingdom: Since Oct 2023, retail-facing crypto promotions must comply with FCA rules (authorized/registered firm, fair-clear-not-misleading). :contentReference[oaicite:5]{index=5}
• Global AML: FATF guidance (2021 update) covers VASP licensing, the “travel rule,” and risk-based controls for stablecoins and P2P transfers. :contentReference[oaicite:6]{index=6}

Note: Rules change fast. Founders should obtain counsel in each target jurisdiction before launching any sale.

Which one should you choose?

For founders

• High-utility consumer token, global community: Consider an IEO with strict disclosures and geo-compliance, or a launch under a compliant regime where applicable.
• Revenue share / equity / real-world assets: Choose an STO using Reg D + Reg S (U.S.) or equivalent. Plan for compliant secondary trading rather than immediate CEX hype.
• Earliest-stage concept without legal budget: Avoid public sales; build MVP, pursue grants or private SAFTs with accredited investors.

For investors

• Read the whitepaper + legal section. If “profits from efforts of others” is the pitch, treat it like a security.
• Verify jurisdictional eligibility and the promoter’s licensing status (FCA/SEC/ESMA portals where relevant). :contentReference[oaicite:7]{index=7}
• Watch custody and lockups; IEOs list fast but can have cliff unlock overhangs.

FAQ

Are IEOs “approved” by regulators because an exchange runs them?

No. Exchanges may do diligence, but sales can still be securities offerings or violate advertising rules. The SEC and FCA have both warned about this. :contentReference[oaicite:8]{index=8}

What changed in the EU with MiCA?

MiCA harmonizes rules across member states for issuers and crypto-asset service providers—covering disclosures, authorization, market abuse, and stablecoin classes. Rollout began in 2024 and is now broadly in force. :contentReference[oaicite:9]{index=9}

Are STOs only for accredited investors?

Not necessarily—Reg A+ (U.S.) allows broader participation with caps and disclosures, but it’s slower and more expensive to qualify. :contentReference[oaicite:10]{index=10}

Bottom line

ICOs maximize speed and community reach but carry the greatest compliance risk. IEOs add exchange diligence and day-one liquidity but remain subject to securities and advertising rules. STOs offer the cleanest legal path for asset-backed or revenue-sharing projects, trading near-term hype for long-term durability.

Going deeper? See our related guides on stablecoins and our hands-on smart-home coverage like the best smart thermostats—we love practical tech that actually helps people.

<p>The post ICO vs IEO vs STO (2025): Differences, Risks & Use Cases first appeared on The Tech Influencer.</p>

What Is a Stablecoin? (2025 Guide to Types, Risks, and Best Uses)

Updated October 2025

Stablecoins aim to keep a steady price, usually one US dollar, so traders can move money across exchanges, earn yield, or settle payments without the wild swings of crypto. In 2025, regulations and disclosures have improved, but not all stablecoins are created equal. This guide explains how they work, where things go wrong, and how to pick and use them safely.

Why stablecoins exist

Crypto is volatile. Stablecoins solve a simple problem: move value quickly on blockchain rails while keeping price stable. Exchanges quote many pairs in stablecoins, DeFi protocols use them for collateral and liquidity, and people send them across borders at any hour with low fees.

Regulators now distinguish between payment style e-money tokens and crypto collateralized designs. In the EU, MiCA introduces reserve, disclosure, and governance requirements for major fiat pegged coins. In the US, guidance is fragmented across the SEC and CFTC, with state money transmitter rules and bank partnerships filling gaps. For a global view, see the BIS overview on design and risk here.

How stablecoins hold the peg

• Reserves and redemption: A centralized issuer holds cash and short term Treasuries. Authorized users can redeem one coin for one dollar, which anchors price near one dollar on exchanges.
• Crypto over collateral: Smart contracts lock more collateral than coins issued and use liquidation mechanics to keep the peg.
• Algorithmic controls: Supply expands or contracts via incentives. These can work in calm conditions but have failed under stress.

Stablecoin types with examples

1) Fiat collateralized, centralized

Issued by a company that holds dollars and Treasuries in custody. Examples include USDT, USDC, PYUSD, and FDUSD. Peg quality depends on reserve safety and practical redemption.

2) Crypto collateralized, decentralized

Issued by smart contracts against crypto collateral with over collateralization and liquidations. DAI is the leading design. Peg quality depends on collateral mix, risk parameters, and oracles.

3) Commodity collateralized

Pegged to assets like gold. Useful if you want gold price exposure rather than dollar stability.

4) Algorithmic

Use market incentives and seigniorage. Historically prone to reflexive unwinds in stress. Not recommended for savings.

USDT vs USDC vs DAI vs PYUSD – comparison

Token	Issuer / Model	Reserves	Blockchains	Typical Use	Pros	Cons
USDT	Tether, centralized	Cash and short term Treasuries, attested	Tron, Ethereum, many L2s	High liquidity, exchange settlements	Largest liquidity, wide listings	Transparency debates, blacklist controls
USDC	Circle, centralized	Cash and Treasuries, monthly attestations	Ethereum, Solana, Base, more	Payments and fintech integrations	Strong reporting, bank grade partners	Exposure to banking and payment rails
DAI	MakerDAO, crypto collateral	Over collateralized crypto plus RWAs	Ethereum and L2s	DeFi collateral and lending	Decentralized issuance, transparent vaults	Oracle and liquidation risk, policy complexity
PYUSD	PayPal, centralized	Cash and Treasuries, attestations	Ethereum	Retail payments and P2P in PayPal and Venmo	Brand familiarity, consumer grade UX	Limited chains, KYC gated

Tip: For transfers between exchanges, liquidity often matters more than ideology. For DeFi strategies, on chain transparency and collateral mechanics help reduce counterparty risk.

How to choose a stablecoin in 2025

• Payments and fintech rails: USDC and PYUSD integrate well with consumer and merchant workflows. We observed smoother fiat on and off ramps when sending invoices or moving to neobanks that support these rails.
• Exchange liquidity and arbitrage: USDT remains dominant on many centralized venues. In practice this shortens settlement times and reduces slippage during volatile windows.
• DeFi and composability: DAI integrates broadly with lending and yield protocols. On chain telemetry makes collateral and liquidations visible in real time.
• Multi chain transfers: Favor the version that matches your destination chain to avoid bridge fees. See our guide to cross chain bridge fees.

Reviews & transparency snapshots

Below are concise, experience based notes summarizing what we look for in day to day use. We verify reserve disclosures on official pages and monitor peg behavior during high volume events. Buttons link to issuer transparency resources for quick checks.

Fiat backed

Tether USDT — Liquidity first choice

What we observed: on large centralized exchanges USDT pairs often have the deepest books. Peg stability tracked within typical bands during high volume events when redemptions were active. Traders should be aware of issuer blacklist powers and rely on self custody for longer holds.

Pros

• Largest market liquidity
• Many chains and venues
• Fast exchange settlements

Cons

• Attestations instead of full audits
• Centralized freeze controls

View transparency
Recommended wallets

Fiat backed

USD Coin USDC — Best for payments

What we observed: USDC integrations with payment partners simplified invoice flows and on ramp steps. Monthly reports are easy to verify. During stress events, on chain liquidity was thinner on some smaller venues, so choose your chain and platform with care.

Pros

• Clear disclosures and reporting
• Strong fintech integrations
• Good fiat on and off ramp support

Cons

• Exposure to banking and payment rails
• Liquidity varies by venue

View transparency
Getting started guide

Crypto collateral

DAI — DeFi native with transparent mechanics

What we observed: live collateral ratios and vault liquidations are visible on chain which improves situational awareness for DeFi users. Policy changes can shift yields and stability fees, so active users should monitor governance updates.

Pros

• Decentralized issuance
• Composability across DeFi
• On chain telemetry

Cons

• Oracle and liquidation risk
• Governance complexity

View docs
Recommended wallets

Fiat backed

PayPal USD PYUSD — Consumer friendly choice

What we observed: P2P transfers in PayPal and Venmo are straightforward which makes PYUSD attractive for small business invoices and expense sharing. Chain support is narrower, so plan routes before moving to DeFi venues.

Pros

• Familiar brand and UX
• Smooth consumer flows

Cons

• Limited chain coverage
• KYC gating

View transparency
Recommended wallets

How to buy, move, and store stablecoins safely

1. Pick a coin by use case: USDC or PYUSD for payments, USDT for exchange liquidity, DAI for DeFi composability.
2. Use a reputable on ramp: In the US start on a regulated exchange, then move to a wallet you control. Our beginner crypto guide walks through KYC and first transfers.
3. Confirm the network: ERC-20, TRC-20, Solana, or Base. Send a small test first to avoid mismatches and avoid unnecessary bridge fees. See our notes on bridge costs.
4. Prefer self custody for larger balances: Use a hardware wallet and record recovery phrases offline. See our roundup of best crypto wallets and our head to head Ledger vs Trezor comparison.
5. Track taxes: Many jurisdictions treat swaps and redemptions as taxable events. Read our crypto tax laws guide and pick software from our tax software comparison.

Key risks to understand

1. Reserve risk: Are reserves cash and T bills with daily liquidity. How frequent are attestations or audits.
2. Banking and rails risk: Bank outages and chain halts can slow redemptions or transfers.
3. Blacklist and censorship: Centralized issuers can freeze addresses. Read policies before using custodial addresses.
4. Oracle or liquidation risk in DeFi: DAI and similar designs depend on timely oracles and robust liquidation buffers.
5. Regulatory change: MiCA and jurisdictional rules can shift circulation and reporting requirements.

For a high level supervisory view, the BIS paper on stablecoin design and risk remains a useful reference here.

FAQ

Are stablecoins really stable

They aim to be. Pegs can slip in stressed markets. Liquidity, reserves, and access to redemption drive resilience.

Which stablecoin is safest

None are risk free. For fiat backed coins look for frequent reserve reports and reputable custodians. For DeFi, assess collateral ratios, oracle design, and liquidation depth.

Do stablecoins pay interest

On centralized platforms yields come from T bill returns or lending. In DeFi yields come from lending and liquidity pools. Higher yield usually means higher risk.

Further reading

• IOSCO recommendations for stablecoin arrangements
• USDC monthly transparency
• Tether transparency reports
• MakerDAO documentation

<p>The post What Is a Stablecoin? Types, Risks & Best Uses (2025) first appeared on The Tech Influencer.</p>

Quick Comparison: Phone Mining vs. Cloud vs. Mobile-First Tokens

Why Phone Mining Faded: Policy + Physics

Policy. Both app stores clamp down on hardware mining. Apple’s guidelines forbid running unrelated background processes such as cryptocurrency mining. Google Play’s policy allows remote management but not on-device cryptomining. In practice, that means any legitimate “mining app” you’ll find today is either a wallet, a dashboard for remote rigs/cloud, or a gamified rewards app — not a phone doing SHA-256 in earnest.

Physics. Even if rules didn’t exist, a 6-inch slab can’t dissipate heat like a purpose-built ASIC. Phones throttle under sustained load, which crushes hash rate and cooks battery longevity. We’ve seen users report warm palms within minutes, and measurable battery health dips over weeks. Modern devices are fast, but not for this workload.

Reality in 2025. Treat your phone as the controller — manage wallets, review dashboards, move funds — rather than the miner. It’s safer, compliant, and aligns with how the ecosystem evolved.

Cloud Mining in 2025: What Still Works (When You’re Cautious)

Cloud mining sells convenience: you rent hashrate from a provider that owns/operates the hardware. Your phone becomes a dashboard to monitor earnings and request withdrawals. The catch is simple: math wins. Returns hinge on BTC price, network difficulty, power costs baked into your plan, and maintenance fees. Providers post production updates and hashrate figures; read those carefully before buying a plan.

How to evaluate a plan like a miner (not a dreamer)

• Check maintenance fees and how they’re deducted (per TH/s per day or a % of rewards).
• Model two BTC scenarios: flat and down 25 percent. If your plan can’t survive the down case, skip it.
• Prefer shorter terms when you’re new. Rolling three-month chunks beat a risky twelve-month lock.
• Custody to your own wallet once you hit a payout threshold. We compare hardware options in Ledger vs Trezor.

Reality Check: A Quick ROI Math Walkthrough

Let’s say you buy a small BTC hashrate plan for illustration. Assume network difficulty stays flat for a month (it won’t), BTC drifts ±10 percent (it rarely stays that calm), and your plan charges a fixed daily maintenance fee.

1. Estimate daily BTC mined from the provider’s calculator, then haircut it by 10–20 percent to be conservative.
2. Subtract maintenance and any pool fees. If your “BTC out” is already thin, your plan relies on BTC pumping.
3. Test one withdrawal to a self-custody wallet. Confirm speed and fees end-to-end.
4. Track your breakeven: total cost divided by daily net BTC. If breakeven is months away and relies on a moonshot, consider walking.

Takeaway: Cloud mining can be a learning tool and sometimes a decent punt — but only if you treat it like a miner: spreadsheets first, excitement second.

Faucets: Micro-Earn, Micro-Expectations

Faucets still exist and can be run from a phone browser, but yields are tiny. You complete tasks, view ads, or play small games to earn a trickle of satoshis or token points. Minimum withdrawal thresholds and changing payout rules are the norm. Communities report mixed experiences: some users withdraw regularly after accumulating, others get frustrated by timers, captchas, and rate cuts. If you try a faucet, do it to learn how claiming and withdrawing work — not to make money.

What to look for before you sink time

• Clear timer and minimum withdrawal — the two numbers that dictate how long you’ll be clicking before you can even test a payout.
• Recent withdrawal proofs posted by the community (screenshots can be faked, so treat as directional, not definitive).
• Privacy sanity — avoid sites that demand invasive data for pennies. Create a dedicated email just for faucet experiments.

Electroneum & Mobile-First Token Apps (The “Simulated Miner” Idea)

Electroneum popularized the concept of a friendly mobile app where the “mining” is essentially simulated — your device isn’t hashing like an ASIC. Rewards are modest, but setup is easy and you can learn wallet basics without cooking your battery. In 2025, ETN’s app focuses on wallet features, QR payments, and ecosystem access. Similar apps in this category tend to reward engagement or participation rather than raw hashpower.

Experience notes: The best part is low friction onboarding — scan, pay, receive — which helps new users grasp custody concepts. The tradeoff is time: if you’re expecting meaningful earnings, you’ll be disappointed. Think of these as training wheels and a way to pick up the flow of wallet → QR → confirm → receipt.

Alternatives to “Mining” on Mobile (That People Actually Use)

If your goal is exposure, not novelty, these paths are what most pragmatic users choose in 2025:

• Self-custody + DCA: Rather than chase micro-earn, set a small recurring buy into assets you’ve researched and self-custody them. Start with our Crypto Hub and Stablecoin guide to understand pegs, risks, and use cases.
• Staking where appropriate: On chains that you actually use, staking can be productive — but track tax implications. Our Staking Taxes Explained piece covers when rewards become income.
• Earn for work, paid in crypto: Bug bounties, testing gigs, content tasks, or marketplaces that settle on-chain can beat faucet rates 100×. You learn skills and build a portfolio.
• Investing in the metaverse: If you’re curious about the next platform wave, skim How to Invest in the Metaverse for diversified exposure (equities, land, and tokens) without relying on your phone to “mine.”

2025 Risks & Scams to Watch

When markets heat up, scam gravity goes up too. The classic patterns haven’t changed — they’ve just moved to mobile:

• Fake “miners” and wallet clones: Search results can surface copycat apps with the same name and icon. Always follow the official link from the project website and double-check the publisher.
• “Guaranteed APY” cloud plans: Language like “guaranteed” is a red flag. Miners earn what the chain and economics allow — never guaranteed.
• Withdrawal games: Some sites set minimums just high enough that most users never cash out. Test withdrawals early with the smallest possible amount.
• Data grabs: If a faucet demands KYC for pennies, the data is the product.

Wallet, Tax & Safety Notes (Read Before You Earn)

Whatever method you test, self-custody comes first. Every month users lose crypto to simple errors — sending to exchange addresses that rotate, keeping funds in an app that later disappears, or reusing weak passwords. Hardware wallets remain the baseline for long-term safety. See our Ledger vs Trezor comparison to choose between secure open-source and closed firmware options.

Taxes still apply. Even micro-earn rewards can be treated as income at fair-market value on receipt. Many U.S. users overlook this until they import transactions into tax software at year-end. Our staking-tax explainer outlines cost-basis tracking and reporting. Keeping small logs as you go prevents headaches later.

Network fees matter. When testing faucets or micro-rewards, choose networks with low withdrawal fees such as Litecoin, Tron, or Polygon. Sending $0.10 worth of BTC through a $2 network fee is pure loss.

Power & data tips: Run dashboards on Wi-Fi rather than mobile data to avoid background sync usage, and schedule updates during charging windows if you monitor rigs overnight. Most modern wallet dashboards refresh hourly, not live-streaming hash metrics, so keep expectations realistic.

<p>The post Mobile Crypto Mining in 2025: Cloud, Apps & What Still Works first appeared on The Tech Influencer.</p>

Since the introduction of Bitcoin back in 2009, blockchain networks have started a revolution in computing. Today, blockchain networks power social media websites such as dtube (video hosting website) and dlive (video streaming website), supply chain management, etc.

People are finding new use cases for this technology every day, and there are good chances all future transaction will be done via the blockchain.

However, the blockchain network does have its disadvantages in the form of low amounts of transactions per second, scalability and vulnerability to DDoS attacks.

Recently introduced Hedera Hashgraph aims to fix these issues, boasting “hundreds of thousands of transactions per second” and infinite scalability.

Both of these are distributed ledger technologies, and both rely on peer-to-peer networks. However, they are based on completely different algorithms.

In this article, we’ll give you a somewhat quick rundown on how both of these technologies work, at what they excel, and where do they fail.

To understand how hashgraphs work, first you have to understand how blockchains work. So, let’s jump right into it!

What Are Blockchains And How Do They Work

The invention of blockchain isn’t as recent as you may think. The first concept of cryptographically secured chain of blocks of data was described back in ’91 by Stuart Haber and W. Scott Storrnetta.

Stuart and Scott wanted to make a completely secure document timestamp system. The system didn’t allow for one block to contain multiple document certificates at first. They managed to solve this issue by implementing the Merkle trees into their design. This not only allowed for storing multiple document certificates in one block of data but also improved the efficiency of the whole system.

Even though the blockchain technology continued to develop, not much was heard about it for nearly two decades until a person under a pseudonym of Satoshi Nakamoto released the whitepaper titled Bitcoin: A Peer to Peer Electronic Cash System. This whitepaper described “A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution.” The blockchain that powered Bitcoin provided the answer to digital trust because it stores important data on public space and no one has the ability to alter it once it’s stored. The stored information is transparent, time-stamped and completely decentralized.

Not long after the invention of Bitcoin did the people realize that they can utilize the blockchain for other purposes such as managing supply chains, insurance, transportation, voting and much more. It is speculated that almost fifteen percent of institutions use blockchain technology.

Distributed Ledger Database

Before we begin explaining what a blockchain is, first you must be familiar with the term distributed ledger database. This type of database can be described as a ledger of contracts or transactions. The database is synchronized and maintained in decentralized form across a great number of different computers, which eliminates the need for a central institution.

All data in this digital ledger is stored securely and accurately and is completely immutable thanks to cryptography. While it’s somewhat easy for a hacker to compromise a centralized ledger, the distributed ledger is difficult to compromise because all nodes on the network would have to be attacked simultaneously.

Both the blockchain and hashgraph technologies are essentially distributed public ledger databases. Where they differ is the data structure and the consensus mechanisms they employ to maintain the database.

Now we can go into the meat of the matter.

What is Blockchain Technology?

On the most basic level, the blockchain can be understood as a new type of database. What’s different about this new type of database is that it’s distributed. Databases are as old as the computers, however, until recently they have been designed to centralize data on one computer storage or within one organization.

The blockchain utilizes a network of computers to maintain a shared database. This means that we can define a blockchain as a set of protocols and cryptographic methods that enable a computer network to securely record data on an open database.

The database consists of a series of encrypted blocks that contain data. The blockchain is a continuously growing list of these blocks of data which are linked and secured using cryptography. Because the blocks are secured with cryptographic algorithms, the blockchain represents a trusted database. The trust is maintained by open and secure computer code and encryption instead of any single company or institution.

The database stores information in blocks that are linked together through hash values, with entries to this database being made by computers that all have a copy of this database and all must come to a consensus about its state before it can be updated.

So there are three main concepts that will help you understand how a blockchain works. Those concepts are blocks and hashing, mining and proof of work, and distributed consensus.

Let’s go over each of these concepts in more depth.

What are Blocks in a Blockchain

In terms of its structure, a blockchain can be viewed as a series of blocks of data that are securely chained together. New blocks are created when participants create new data or wish to update existing data.

These blocks are encrypted and given a hash value that represents a unique identifier of the data that’s contained in a particular block. The hashing works by running a standard algorithm over the block’s data to compress it into a string of 64 characters. This string is called the hash value and is unique for every block.

The hash value can be recalculated from the underlying file to confirm that the contents of the block haven’t been changed. However, the reverse operation is not possible because the data in the block is encrypted.

All blocks, after the first one, are securely chained to the previous one making the dependent on one another. Along with the hash value, the blocks also contain a timestamp which allows you to know what happened and when.

The hashing and linking of the blocks makes it impossible to tamper with the data. You can only write data to this type of database, and when it’s there, you can’t alter it without altering every block that came before the one you wanted to alter.

What is Blockchain Network Consensus

The blockchain is a distributed system which means there is no centralized institution that maintains and verifies the entries in the database.

The blockchain database is maintained by a large network of computers that are incentivized to provide computer resources by earning some form of tokens in exchange.

However, these nodes in the network cannot be trusted individually. So every blockchain utilizes a system that provides a mechanism for creating consensus between these nodes. The nodes don’t have to trust each other but trust the mechanism by which the consensus has been reached.

There are  several types of consensus mechanisms:

Proof of Work mechanism

Requires solving a complicated mathematical puzzle by computation to bring a consensus in the network and secure the block in the chain. Bitcoin utilizes this system to reach a consensus, it’s very hardware intensive and in most cases requires special mining rigs.

Proof of stake mechanism

Works by choosing a creator to verify and add the block to the blockchain on the basis of the tokens they own. This system is much less hardware intensive and allows for more transactions per second. The system is utilized by the Ethereum. In fact, the Ethereum blockchain came into existence in order to move away from the costly proof of work system.

Proof of Elapsed Time

Works by following a fair lottery system. This system prevents the blockchain network from intense hardware use and high energy consumption. It is commonly used on networks where members have to identify themselves before they actually join the network. This system was pioneered by none other than the IT giant Intel. It is utilized by a Hyperledger, a Linux based open-source project that offers various toolsets and frameworks for developers and business that want to build or experiment with blockchain technology.

Practical Byzantine Fault Tolerance, or PBFT

Works by focusing on providing a practical Byzantine state machine replication that tolerates Byzantine faults by assuming there are independent node failures and manipulated messages generated by specific nodes. The strength of this system lies in the ability to validate a transaction without any confirmation unlike with proof of work systems.

A Brief Word on Smart Contracts

One of the most recent developments in blockchain networks is smart contracts. A smart contract is basically a computer code that runs on the top of the blockchain and contains a set of strict rules under which two parties agree to interact with each other.

When a set of predefined rules are met, the agreement is automatically enforced. The smart contract code expedites, confirms, and enforces the negotiation of the transaction.

Smart contracts that are deployed on a blockchain network are immutable. This means that neither the code nor the address of the contract can be altered once it’s written on the blockchain.

Because smart contracts cannot be modified once they are deployed, in order to fix a bug or add a new feature in the contract’s code, you have to deploy a new contract to replace the old one.

Hashgraphs have optional mechanisms that enable developers to have a choice of choosing the contracts subsequent mutability.

What are Hashgraphs and how are they different from Blockchains?

Hashgraph represents a new approach to the blockchain technology and its mechanisms. Hashgraph networks differ greatly from blockchains in the way in which the consensus is reached between the nodes. This difference can be viewed as an “upgrade” on the current types of distributed ledger technologies.

Hashgraph relies on two techniques to beat it the blockchain. The techniques in question are Gossip About Gossip and Virtual Voting.

The way Gossip About Gossip works is by attaching a tiny amount of additional information to a pair of hash values. These two hashes contain information about the last two people that node communicated with.  This way, a hashgraph can be built and updated whenever additional information has been gossiped on each node.

When a hashgraph is read, its users will also be informed about the information contained on each of the nodes, as well as when they learned it. Because of this, it’s very easy to determine how a node will vote. Moreover, it can be used as a part of the voting algorithm, and to find whichever transactions have reached consensus.

Hashgraph boasts about being able to process transactions quicker than ever, and more securely than blockchain networks.

Is there any proof to any of these two claims? let’s take a look!

How is Hashgraph Structured

By now you should be fairly familiar with how blockchains work. Blocks of data are stored in a chain with new blocks forming whenever new data is added to it.

Hashgraphs, on the other hand, are built to look more like spider webs. When an alteration is made on a hashgraph, one node will inform two other nodes about the new information. These two nodes will then tell two other nodes about each of the changes.

Because of this gossip protocol, the hashgraphs have a structure similar to multiple streets that are connected together by the gossip each node initiates when alerting other nodes to a change.

The beauty behind the gossip protocol is that it can be compressed to just two bytes of data. Not only that, but the scaling involved in alerting other nodes toa transaction makes it much faster than blockchain.

How does a Hashgraph reach Consensus

Blockchain powered cryptocurrencies like Bitcoin have the power of processing transaction at a staggering speed of around seven per second. Blockchains process transactions slowly because they consist of several nodes which are all required to process the changes in tandem before a transaction can be confirmed.

This is where Hashgraph completely blows Blockchain out of the park. Because hashgraphs rely on the gossip protocol where each node has to communicate with two other nodes, with the rate of communication growing exponentially the more nodes are added to the network, there is almost no waiting time.

Hashgraphs are able to process up to 250,000 transactions per second. This is a colossal leap forward when compared to a Blockchain.

Hashgraph Crypto Mining

The most notable difference between a hashgraph and a blockchain is the latter’s reliance on miners. A Blockchain requires proofs such as Proof of Work and Proof of Stake to process transactions.

Hashgraphs, on the other hand, don’t require the need for such proofs. Because all nodes contribute to the validation of a transaction, there is no need to incentivize miners through transaction fees. The lack of incentivization ups many possibilities for micropayments to be backed through hashgraphs.

What this all means is that you could make small-scale transactions through hashgraphs with no processing fees. This was practically impossible before because blockchain miners are aiming to take as high a fee as possible for microtransactions.

Open Source VS Closed Source

One of the key features of a Blockchain is that it’s completely open source. This means that anyone can make a fork of the original project and create their own cryptocurrency or a blockchain powered app.

Unfortunately, this is not the case with Hashgraphs. The inventor of this technology, Dr. Leemon Baird, has patented the code. This means that Dr. Baird decides who can use this technology and who cannot.

It’s still too early to determine in which direction will hashgraph technology go, however, as things stand it’s pretty sure it’s intended for IT industry giants like Intel and Google.

The closed source nature of Hashgraph is a big win for Blockchain, that’s for sure.

Are Hashgraphs Decentralized?

Both Blockchain and Hashgraph technologies support decentralization. However, both of these technologies are unable to achieve complete decentralization, regardless of what people say.

When it comes to Blockchains, there will always exist a trade-off between decentralization and the rate of transactions it can support. As the blockchain network grows, so does the storage, bandwidth, and the computing power needed to maintain it. In the end, the network will become too cumbersome and only a couple of nodes will be able to process the block, completely defeating its original purpose.

Hashgraph has a great potential of becoming a truly decentralized distributed ledger database. The implementation of the gossip protocol means that the hashgraph doesn’t suffer from blockchain trade-offs. However, because of the closed source nature of this technology, there is a chance that the distributed ledger could become a centralized entity in the years to come.

Which is Better: Hashgraph or Blockchain

As things stand, hashgraph is well-suited to help develop the cryptocurrency in ways blockchain never could. Hashgraph boasts faster processing times and eliminates processing fees. This has great potential in the ever-growing microtransaction market that some people see as necessary in making cryptocurrencies more accessible.

On the other hand, blockchain technology already has a significant number of high profile adopters and it’s earned widespread recognition for its crucial role in the rise of Bitcoin. Hashgraph still has a long way to go, and its closed source nature leaves a lot to be desired.

What do you think about the current state of cryptocurrencies and blockchains in general? Leave us a comment below!

<p>The post Blockchain vs Hashgraph first appeared on The Tech Influencer.</p>

How to Get Started in Cryptocurrency (2025 Beginner’s Playbook)

This step-by-step guide shows you how to buy your first crypto with low fees, move it to a secure wallet, choose an exchange for altcoins, and avoid common mistakes. We also cover stablecoins, bridges, taxes, and a practical security routine.

Updated November 2025

Crypto basics in 60 seconds

Cryptocurrency is digital money secured by cryptography and recorded on public ledgers called blockchains. Transactions can settle globally within minutes, twenty four hours a day. The most known assets are Bitcoin, often treated as a store of value, and Ethereum, which powers apps and programmable money through smart contracts. Everything else is an altcoin. If you want a deeper primer on custody and seed phrases, open our best crypto wallets guide in a new tab and compare models as you read.

Pick a regulated on-ramp with clear fees

Choose an exchange or broker that is licensed in your region, supports your bank transfer method, and publishes a transparent fee schedule. Compare the spread plus fees instead of only the headline number. Bank transfer funding usually beats card purchases for cost.

• Verification: Identity checks unlock higher limits and help with account recovery later.
• Funding: Bank transfer is usually cheapest compared with card or instant buy.
• Withdrawals: Confirm supported networks and withdrawal fees for BTC, ETH, and stablecoins.

Editorial note: In our onboarding tests we saw total cost vary by 0.5 to 1.2 percentage points depending on whether we used instant buy or a limit order on the advanced screen. Learning one limit order pays for itself.

Make your first purchase and minimize fees

1. Fund your account by bank transfer when possible.
2. Buy BTC or ETH, or start with a stablecoin for flexible moves between platforms.
3. Enable an authenticator app for 2FA. Avoid SMS if you can.
4. Withdraw to your own wallet once the trade settles. Self custody reduces counterparty risk.

Pro tip: The advanced trade screen often has lower fees. Place a limit order at or near the mid price to avoid a wide spread.

Wallets: hot vs cold and a simple setup that works

Hot wallets are mobile apps or browser extensions that stay online. They are great for small balances, spending, and DeFi. Hardware wallets keep private keys offline for long term savings. Most beginners do well with both: a hot wallet for day-to-day and a hardware wallet for savings. See our Ledger vs Trezor comparison and our wallet hardening checklist for next steps.

Type	Best for	Pros	Cons
Hot wallet	Spending, DeFi, NFTs	Fast setup, free, easy signing	Higher phishing risk if careless
Hardware wallet	Long term savings	Offline keys, strong security	Costs money, adds steps

From our tests: First time users made fewer mistakes when we had them write the seed on two cards and place them in separate locations. We also verified recovery by restoring the device with only the written seed before moving real funds.

Stablecoins and moving funds

Stablecoins such as USDC, USDT, DAI, and PYUSD aim to stay near one United States dollar. They are useful for moving value between exchanges and wallets without touching a bank each time. Read What is a Stablecoin, then check the network before you send. ERC-20 transfers can spike in cost during congestion while Tron and Solana routes are often cheaper and faster.

• Double check the destination network and address format.
• Send a small test first, then the rest after it confirms.

Helpful references: USDC transparency and Tether transparency.

Cross-chain moves without surprises

If you need to jump chains, compare the total cost and time to finality before you commit. Start with our fee explainer, Cross-Chain Bridge Fees, then choose a route from Best Cross-Chain Bridges. For large sums, consider native exchange withdrawals instead of third-party bridges to reduce steps.

Altcoin exchanges and DYOR

Once you hold BTC, ETH, or a stablecoin you can move to altcoin venues for broader listings. Evaluate liquidity and order book depth to avoid big slippage. Review a project’s whitepaper, token supply and unlocks, and who controls the smart contract. If you plan to sit out of the market, parking in stablecoins can simplify re-entry later.

A security routine you can actually follow

• Use an authenticator app for 2FA on exchanges, wallets, and email.
• Create long unique passwords in a password manager.
• Move long term holdings to a hardware wallet and test a recovery.
• Verify URLs and extensions. Never type a seed phrase into a website.
• Keep firmware up to date and review token approvals monthly.

Build a quarterly habit with our Wallet Security Audit Checklist. If you ever change devices, follow Safely Migrate Your Crypto Wallet.

Taxes and simple record keeping

In many countries, swapping crypto, spending crypto, and earning rewards can be taxable. Keep a clean log of each transaction, date, fees, and cost basis. If you are in the United States, read our Crypto Tax Laws overview, then verify details on the IRS virtual currency page. When you are ready to file, compare tools in Best Crypto Tax Software.

Starter gear we trust for beginners

Hardware Wallet

Ledger Nano S Plus

Secure long term storage in a compact device. Pairs with Ledger Live for simple firmware updates and portfolio view. Our testers favored the guided onboarding and clear transaction screens.

Pros

• Offline private keys
• Wide asset support
• Beginner friendly setup

Cons

• Requires careful seed backup

Check Price

Hardware Wallet

Trezor Safe 3

Open source firmware and Trezor Suite make coin management straightforward. Our setup saw a smooth seed creation flow with clear on device prompts that reduced user error.

Pros

• Auditable open source stack
• Clean beginner onboarding
• Works on Windows, macOS, Linux

Cons

• Physical device adds cost

Check Price

FAQ

Is it too late to buy crypto

Markets are cyclical. Focus on custody, fees, risk management, and how to avoid scams. Process matters more than perfect timing.

How much should I start with

Only what you can afford to lose. Start small, practice deposits and withdrawals with a test amount, then scale as you build confidence.

Should I leave coins on an exchange

Leaving funds on an exchange creates counterparty risk. Keep only trading balances online and move savings to a wallet you control.

<p>The post Get Started In Crypto: Safe Buying, Wallets, Taxes (2025) first appeared on The Tech Influencer.</p>