kenson Investments | Blockchain
Blockchain

Introduction to Blockchain Technology

Blockchain technology has completely transformed our perspectives on data, security, and transactions. Essentially, a blockchain is a decentralized, distributed record that documents transactions on numerous computers. This guarantees that the recorded transactions cannot be changed after the fact, ensuring a high level of security and transparency. Blockchains serve as the underlying technology for cryptocurrencies such as Bitcoin and Ethereum, yet their uses go beyond just digital money.

In the past few years, there has been a notable increase in the use of blockchain technology in different sectors. Recent reports indicate that the global blockchain market is projected to increase from USD 3 billion in 2020 to USD 39.7 billion by 2025, with a compound annual growth rate (CAGR) of 67.3%. This growth is expected to continue, reaching USD 94.0 billion by 2027 at a CAGR of 66.2% and USD 943 billion by 2032 with a CAGR of 56.1%. The surge in growth is fueled by the growing need for reliable and clear transaction systems, the increasing use of cryptocurrencies, and the wider adoption of blockchain solutions in areas like finance, healthcare, supply chain, and government.

Kenson Investments is leading the way in this blockchain revolution. Acknowledging the transformative possibilities of digital assets and blockchain technology, we offer our clients creative investment options for the digital currency environment. Our goal is to enable individuals and forward-thinking businesses to leverage the possibilities offered by blockchain technology. With our strategic advising and technical consultation services, we assist clients in utilizing blockchain technology for secure, and transparent investment opportunities.

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Protocols for Blockchain technology

Blockchain protocols are the guidelines and processes that control the addition of data to the blockchain, the attainment of consensus, and the validation of transactions. These protocols play a crucial role in the security, efficiency, and scalability of the blockchain.

Proof of Work (PoW)
Proof of Work is considered one of the oldest and most famous blockchain protocols. Miners must solve intricate mathematical puzzles in order to verify transactions and generate fresh blocks. Bitcoin utilizes Proof of Work (PoW) to guarantee security and decentralization, although it can be demanding on resources and sluggish.

Proof of Stake (PoS): PoS is a more environmentally friendly protocol when compared to PoW. In Proof of Stake, validators are selected to produce new blocks and verify transactions depending on the amount of coins they possess and are ready to “stake” as security. The shift from PoW to PoS in Ethereum aims to improve scalability and decrease energy usage.

Delegated Proof of Stake (DPoS): Delegated Proof of Stake requires token holders to vote for a limited number of delegates who validate transactions and produce new blocks. The goal of this protocol is to enhance effectiveness and quickness while maintaining decentralization. EOS and TRON are instances of blockchains that utilize DPoS.

Blockchain Ecosystem

The blockchain ecosystem is made up of different parts that collaborate to support the operation and usefulness of the blockchain. These elements consist of nodes, smart contracts, decentralized applications (dApps), and consensus mechanisms.

kenson Investments|Blockchain
kenson Investments|Blockchain

Nodes

Individual computers that are part of the blockchain network are referred to as nodes. Every node stores a complete copy of the blockchain and verifies and shares transactions. Various kinds of nodes exist, such as full nodes that keep the entire blockchain history and light nodes that store only a part of the blockchain.

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Smart Contracts

Smart contracts are contracts that are automatically executed based on code that contains the agreement’s terms. When specific conditions are satisfied, they will act and uphold the terms of the contract on their own. Ethereum is the leading blockchain platform for smart contracts, allowing for a variety of decentralized applications (dApps) and services to be created.

kenson Investments|Blockchain

Decentralized Applications (dApps)

Decentralized applications operate on blockchain platforms and use smart contracts to operate independently without a central authority. These dApps cover a wide range of categories, including financial services like DeFi, as well as games and social networks. The primary benefit of dApps is their capability to function transparently and securely without the need for third parties.
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Consensus Mechanisms

Consensus mechanisms are the protocols used by blockchain networks to agree on the validity of transactions and maintain the integrity of the ledger. They are crucial for ensuring the security and decentralization of the network. Proof of Work (PoW) and Proof of Stake (PoS) are two of the most common consensus mechanisms. PoW requires significant computational power to solve complex puzzles, while PoS relies on validators staking their own tokens to propose and validate new blocks. Other consensus mechanisms, such as Delegated Proof of Stake (DPoS) and Byzantine Fault Tolerance (BFT), offer variations that aim to balance security, efficiency, and decentralization in different ways.

Layers of Blockchain Technology

The structure of a blockchain is made up of multiple layers, with each one having its own role in how it functions. Comprehending these layers aids in understanding the operation and communication between blockchains.
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Level 0: World Wide Web

Layer 0 serves as the base framework for blockchains, offering both the physical and protocol groundwork. The internet, hardware, and communication protocols are essential components for blockchain networks to function effectively.

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Layer 1: Protocol of the Blockchain

Layer 1 serves as the foundational layer, incorporating the authentic blockchain protocol. This involves the agreement process, verifying transactions, and forming blocks. Bitcoin and Ethereum are instances of Layer 1 blockchains.

kenson Investments|Blockchain

Layer 2: Solutions for increasing scale

Layer 2 solutions are created on top of Layer 1 blockchains to improve scalability and effectiveness. These remedies manage transactions outside of the primary blockchain, decreasing traffic and enhancing velocity. Some instances are the Lightning Network for Bitcoin and Plasma for Ethereum.

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Layer 3: Application Layer remains unchanged

Layer 3 is comprised of the applications and protocols that engage with the blockchain. This consists of decentralized applications (dApps), wallets, and other interfaces for users. Layer 3 is the stage where end-users engage with the blockchain ecosystem, making use of its functions and offerings.

Types Of Blockchain Asset Investments

Investments in blockchain assets are quickly changing the finance industry, providing investors with unique chances to diversify their investments and minimize risk. Nevertheless, it is crucial to have a clear grasp of the various types of Blockchain asset investments before making well-informed choices regarding your financial prospects.
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Cryptocurrencies:

The most well-known and widely traded blockchain assets, cryptocurrencies like Bitcoin, Ethereum, and Litecoin have gained mainstream acceptance. They are used for transactions, store of value, and as speculative investments.

kenson Investments|Blockchain

Utility Tokens:

These tokens are typically linked to a specific blockchain platform or project, providing users with access to services, products, or exclusive features within the ecosystem. They are not meant as investments but can appreciate in value as the project grows.

kenson Investments|Blockchain

Security Tokens:

Security tokens represent ownership in real-world assets, such as real estate, stocks, or commodities. These tokens are often subject to regulatory oversight and can offer dividends or profit-sharing.

kenson Investments|Blockchain

Non-Fungible Tokens (NFTs):

NFTs are unique digital assets that represent ownership of digital or physical items, such as art, music, or virtual real estate. They are gaining popularity as collectors' items.

kenson Investments|Blockchain

Why Choose Blockchain Asset Investment With Kenson Investments?

Don’t miss out on the future of finance – start your Blockchain asset investment journey with us today.

Expertise:  Kenson Investments excels in the blockchain asset sector. Our Digital Asset Specialists diligently monitor the market to find opportunities while focusing on minimizing risk.

Security: We prioritize the security of your investments. Our stringent security measures protect your assets from potential threats and breaches.

Diversification: Kenson Investments offers a wide range of Blockchain asset investment options, allowing you to diversify your portfolio with ease.

Personalized Support: Our team of digital asset investment specialists is available to provide personalized support, ensuring you make informed decisions aligned with your financial goals.

Transparency: We believe in full transparency. We provide comprehensive reports and updates, so you’re always in the know about your investments.

Tailored Solutions: We understand that every investor is unique. Our customized investment solutions cater to your specific needs and risk tolerance.

Kickstart Your Journey In The Digital Asset Space

Our digital asset specialists our dedicated to helping you navigate crypto asset space while focusing on minimizing risk.

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