Hedera Knowledge Center

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What is Hedera?

Hedera is a fully open source public distributed ledger that utilizes the fast, fair, and secure hashgraph consensus. Its network services include Solidity-based smart contracts, as well as native tokenization and consensus services used to build decentralized applications.

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What is asynchronous Byzantine Fault Tolerance (ABFT)?

Asynchronous Byzantine fault tolerance (ABFT) is a property of a consensus algorithm that allows the nodes on a network to agree on the order and timing of transactions.

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What are voting-based consensus algorithms?

Voting-based consensus algorithms achieve consensus on transactions (and sometimes network decisions) by tallying the number of votes cast by nodes on a distributed ledger network.

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What is hashgraph consensus?

The hashgraph consensus algorithm enables distributed consensus in an innovative, efficient way. Hashgraph is a distributed consensus algorithm and data structure that is fast, fair, and secure.

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What is gossip about gossip?

Hashgraph utilizes the gossip protocol to send information between network nodes and come to consensus on transactions. Gossip about gossip is the history of how these events are related to each other, through their parent hashes, resulting in a directed acyclic graph (DAG) called a hashgraph.

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What are economy-based consensus algorithms?

An economy-based consensus algorithm simulates an economy, where economic rationality drives the underlying consensus.

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What is the Hedera mirror network?

The Hedera Mirror Network is a parallel network dedicated to propagating the state and transaction history of the Hedera Main Network.

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Open Source at Hedera

Hedera made history in 2024 by becoming the first Layer 1 public ledger to donate its entire codebase to the Linux Foundation, reinforcing its commitment to transparent, community-driven development.

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Proof-of-work, and its flaws, explained

The proof-of-work form of distributed ledger technology presents room for improvement in terms of fairness, security, expense and efficiency.

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Understanding leader-based consensus algorithms

Systems that rely on leader-based consensus algorithms are vulnerable to problems of security and fairness.

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What are the strengths of the hashgraph virtual voting algorithm?

The hashgraph virtual voting algorithm provides strong math proofs, excellent security and the highest speeds possible.

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Proof of Stake (PoS) vs. Proof of Work (PoW)

A consensus algorithm is a method of synchronizing the data across a distributed system.

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Distributed ledger technology

What are distributed ledger technologies (DLTs)?

A distributed ledger is a database shared by multiple participants in which each participant maintains and updates a synchronized copy of the data. Distributed ledgers allow members to securely verify, execute, and record their own transactions without relying on an intermediary, such as a bank, broker, or auditor.

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What Is Cryptography: An Introduction to Cryptography in DLT

Cryptography is the backbone of distributed ledger technologies like blockchain and other consensus-oriented distributed networks. If you are interested in building decentralized applications, it’s essential to understand wallet generation and transaction signing processes. Both of which rely heavily on underlying cryptographic protocols.

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What is a decentralized application (dApp)?

Decentralized applications (dApps) are built using blockchain or distributed ledger technologies. dApps allow users to transparently complete transactions, verify claims, and collaborate without needing to trust a centralized intermediary.

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What are smart contracts?

Smart contracts are digital contracts that define the terms of a transaction via computer code. They also verify, execute, and enforce that transaction without the need for a third-party intermediary.

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Layer 1 v. Layer 2

If you are learning about web3, cryptocurrency, or blockchain the chances are that you have heard different projects referred to as being a layer 1 or a layer 2 project. Hearing these terms without any prior knowledge or context can be confusing. This post will explain the differences between layer one and layer two networks and provide examples of both.

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Smart Legal Contracts Explained

As more people begin to recognize the potential of smart contacts, the uses for them across distributed ledger technologies continue to grow. And as it grows, the legal systems in the United States and other countries have been trying to catch up. Since the term “smart contract” implies a legally binding contract, it’s natural to wonder whether the term “smart legal contracts” is redundant. There are differences, however. It’s time to look at the intersection of blockchains and common law.

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Smart Contract Advantages

Smart contract advantages in areas like speed, transparency and security are helping to accelerate the use of this blockchain tool.

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Smart Contract vs. Traditional Contract

In the debate of smart contract vs. traditional contract, it appears most likely that both will continue to evolve and be valuable.

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What Is the Ethereum Virtual Machine and how does it work?

The EVM is a Turing complete virtual machine that can be accessed globally through a participating network node. The EVM’s Turing completeness is measured by the fact it can run any program. Without the EVM, developers wouldn’t be able to implement the numerous dApps (decentralized applications) for which Ethereum is known.

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How to Assess Smart Contract Platforms

With DeFi growing exponentially, more businesses are looking at smart contract platforms as a base for new opportunities.

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What Is a Smart Contract Audit?

A smart contract audit involves a detailed analysis of the contract’s code to identify security issues and incorrect and inefficient coding, and to determine ways to resolve the problems. The audit process is an important part of ensuring the security and reliability of blockchain applications.

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10 Real-World Smart Contract Use Cases

Smart contracts are digital programs stored on blockchain networks. When predetermined terms and conditions are met, these contracts are automatically executed. It’s a straightforward concept with huge implications. The number of smart contract use cases grows daily as more people see the tremendous potential of smart contract technology.

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How to Create a Smart Contract

To give you a high-level overview of what’s involved in smart contract development, we’ll provide a breakdown of the basic steps of the process. We won’t delve into the actual code, but we’ll provide you with a detailed dive into how to get a smart contract written.

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Smart Contract Design Patterns Explained

Smart contract design patterns are reliable coding segments used in new contracts because the coding has worked in other programs to do routine functions.

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A Guide to Smart Contract Security

Smart contract security refers to the principles and practices used by developers, users, and exchanges when creating or interacting with smart contracts.

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How to Call a Smart Contract and Why

Understanding how to call a smart contract is a big part of developing this revolutionary type of program and a great way to learn about them.

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Smart Contract Applications

Smart contract applications keep growing as a range of industries explore the possibilities of using blockchain technology.

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What Is an NFT Smart Contract?

An NFT smart contract is blockchain computer programming that manages and enhances digital assets, or non-fungible tokens.

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Smart Contract Challenges

Plenty of smart contract challenges remain, but developers and technological advances are making progress.

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Testing Smart Contracts

Testing smart contracts is a must. Here’s a look at some of the most important tests and popular tools used for this vital function.

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Types of Smart Contracts

As the foundation types of smart contracts become more useful, their adoption by a wide range of industries keeps multiplying.

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Smart Contracts in Finance

The growth of smart contracts in finance continues as new applications are found in tokenization, KYC, and insurance.

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Smart Contracts in Construction

As developers find new uses for smart contracts in construction, leaders in that industry are using it to get ahead of competitors.

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Smart Contracts in Healthcare

The use of smart contracts in healthcare fields continues to grow. Here’s a look at some specific, new applications.

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Directed Acyclic Graphs

Learn how directed acyclic graphs offer a scalable, secure, and eco-friendly alternative to blockchain.

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Smart Contracts Real Estate

Smart contracts real estate is gaining momentum as new ways are developed for investing in property and streamlining traditional functions.

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Blockchain Transactions

What happens during blockchain transactions? Learn the basics about this essential part of cryptocurrency.

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DAG vs Blockchain

Understanding the difference between DAG vs blockchain is essential for keeping up with the evolving distributed ledger landscape.

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How Web3 Projects are Using Smart Contracts to Change the Web

Web3 projects are driving innovation in the digital economy and capturing the attention of users and venture capital investment.

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What Is Data Integrity and How Can It Be Protected?

It’s easy to define what data integrity is, but it takes rigorous application of the right tools to make sure data stays accurate and safe.

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How Decentralized Identity Systems Help Us Protect Our Data

Decentralized identity systems let users manage their data and send only what they are comfortable sharing to centralized websites.

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Zero-knowledge Proof: Don't Say the Secret Word

Zero-knowledge proofs refer to cryptographic mechanisms by which an actor is able to prove knowledge of some fact without disclosing that fact.

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Blockchain and Edge Computing: A Powerful Data Duo

Blockchain and edge computing can be used together to improve network efficiency and fuel dynamic, transformative, real-time applications.

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How to Take Advantage of Blockchain for IoT Security

Blockchain offers a promising solution to the growing security needs of both businesses and consumers. By providing a secure and transparent framework, blockchain can help to shore up many vulnerabilities in IoT systems.

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Blockchain Scalability Solutions

Blockchain scalability is being improved in a variety of ways to make decentralized networks more efficient and practical for mainstream use.

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Blockchain Anonymity

Explore blockchain anonymity, from cryptography to privacy coins, and discover how technologies like zero-knowledge proofs enhance privacy.

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Blockchain and Digital Transformation

Discover how blockchain drives digital transformation across industries with innovative solutions to improve security, transparency, and efficiency

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Industry insights

What is decentralized finance (DeFi)?

Decentralized finance (DeFi) is a way to conduct business using distributed ledger technology for cryptocurrency and alternatives to traditional methods.

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What is a cryptocurrency exchange?

Cryptocurrencies have erupted into a $1.50 trillion industry, sparking a wave of global disruption with blockchain technologies. Like traditional stock and commodities exchanges, cryptocurrency exchanges are platforms by which users can buy and sell digital assets.

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What is a stablecoin?

Stablecoins are an attempt to create a cryptocurrency token with a stable price—their stability commonly achieved by pegging the token to an asset such as gold or fiat. By being backed by more traditional investments, the market has greater confidence in their price.

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What is a security token offering (STO)?

A security token is a unique token issued on a permissioned or permissionless blockchain, representing a stake in an external asset or enterprise. Entities like government and businesses can issue security tokens that serve the same purpose as stocks, bonds, and other equities.

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What is a central bank digital currency (CBDC)?

CBDC is short for Central Bank Digital Currency — it’s an electronic form of central bank money that citizens can use to make digital payments and store value. A CBDC is a digital currency, it’s issued by a central bank, and is universally accessible.

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Custodial vs non-custodial wallets

Learn the differences between custodial and non-custodial cryptocurrency wallets and why every web3 developer needs one. This concept is vital for users of the decentralized web.

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What is asset tokenization?

Asset tokenization is the process by which an issuer creates digital tokens on a blockchain or other form of distributed ledger to represent digital or physical assets. Blockchain technology guarantees that once you buy tokens representing an asset, no single authority can erase or change your ownership, making it entirely immutable.

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What is a non-fungible token (NFT)?

A non-fungible token is a type of cryptographic token unique in its attributes typically programmed into the NFTs issuing smart contract or are part of the initial native configuration of the NFT before issuance.

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Understanding the Basics of a Decentralized Autonomous Organization (DAO)

A decentralized autonomous organization or DAO is a member-owned group that operates without centralized leadership using blockchain technology.

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The Rise of DeFi Lending and How to Get Involved

DeFi lending enables users to select which money market they want to lend to and earn interest from, depending on the market’s yield.

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The Ins and Outs of Decentralized Exchanges (DEXs)

A decentralized exchange (DEX) uses smart contracts to enable cryptocurrency traders to execute trades without an intermediary.

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The Importance of DeFi Liquidity in Cryptocurrency

DeFi liquidity is the ability for tokens, or cryptocurrency, to be swapped for other tokens. Without it, there is no decentralized finance.

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Blockchain Oracle: How Smart Contracts Talk to the World

A blockchain oracle conveys information to and from smart contracts to enable them to perform their self-executing functions.

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A Beginner's Guide to DeFi Yield Farming

DeFi yield farming is becoming one of the most popular ways to earn passive income with cryptocurrency, but learn about the risks before diving in.

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Understanding DeFi Prediction Markets

DeFi Prediction markets create additional earning opportunities for crypto traders and act as a predictive tool for organizations.

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DeFi Insurance: The Next Generation of Insurance

DeFi insurance can refer to blockchain-based replacements of traditional policies or insurance that covers blockchain-related activity.

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Deciphering the World of DeFi Derivatives

DeFi derivatives bring together the volatile worlds of derivatives trading and cryptocurrency to allow for cutting-edge investment and speculation.

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NFT Collectibles FAQs

FAQs on NFT collectibles covers the who, what, when, where and how regarding the market in non-fungible tokens.

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Carbon Credits: What Are They and Do They Work?

Carbon credits offer one way to try to mitigate the effects of climate change. Here’s a look at how they work

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How the World Is Using Blockchain for Energy Efficiency

The use of blockchain for energy efficiency is growing all the time. Here are some prime examples of how it works.

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Carbon Markets: A Guide to Understanding this Global Tool

Carbon markets enable companies and individuals to help control greenhouse gas emissions through financial incentives.

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Is DeFi Safe? Learn and Use These Security Measures

The qualities that make decentralized finance valuable also can increase its risks. Learn how to use it in the safest manner possible.

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DeFi Stack: Getting a Grip on the DeFi Ecosystem

It’s important to know as much as possible about decentralized apps before diving in. Learning about the DeFi stack is a good place to start.

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NFT Games: How to Jump In and Start Playing

NFT games allow players to have fun in new worlds and new ways, and you can even make real money by playing.

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Defi Risks: Watch Out for These Trouble Spots

DeFi risks come from all directions. Here’s a look at 5 principal threats to decentralized finance and the people who use it.

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Types of Tokenization for Commerce, NLP, and Blockchain

Learn about the types of tokenization that relate to security devices, finance, blockchain networks, and natural language processing.

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How to Transfer an NFT Securely

Understanding how to transfer an NFT will enable you to move them between your wallets and trade them with others.

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How to Sell an NFT: A Comprehensive Guide

Learn how to sell an NFT with this step-by-step approach that covers both promotional and technical aspects.

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How to Mint an NFT

Learn how to mint an NFT so you can get started with your first NFT collection.

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How to Start a DAO: From Community to Code

The NFT DeFi world is evolving as developers find new ways to merge their individual strengths in powerful ways.

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NFT DeFi Applications Are Gaining Power

The NFT DeFi world is evolving as developers find new ways to merge their individual strengths in powerful ways.

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What is the Metaverse? The Vision Is Gaining Focus

We will look at the origins of the metaverse, how it can benefit businesses and individuals, and the hurdles it must overcome.

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Institutional Defi: A Guide to the Next Wave in Finance

In this guide, we’ll cover the value, design, and future of Institutional DeFi. We’ll also go over use cases of companies at the forefront of integrating decentralized finance into their mission.

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Web3 Gaming: Taking Stock and Looking to the Future

Web3 gaming continues to build on the advantages of blockchain, NFTs and decentralization to change the way we view, and interact with, video games.

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NFT Rarity and How to Figure Out a Rating

Each NFT has its own value. And rarity is part of that value. Learn how to use online tools to determine rarity or calculate it yourself.

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NFT Use Cases: Creative Ideas for a Revolutionary Tool

Learn about 11 NFT use cases from the practical (supply chains and digital identity) to the profound (art, climate protection and heritage preservation.)

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NFT Royalties: Who Is Winning the Cat-and-Mouse Game?

NFT royalties support creators and encourage new ones, but high royalties can dampen collectors’ enthusiasm and participation.

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CBDCs: What They Are and How They Work

Many central banks have expressed interest in using a digital form of fiat currency known as a CBDC — central bank digital currency.

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NFT Terms: A Crypto Glossary

NFT enthusiasts have come up with hundreds of terms, many of which may end up in the national lexicon. This list will help you get ahead of the curve.

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TradFi and DeFi: Key Differences

Many people see TradFi and DeFi as being at odds, with one eventually prevailing. However, they can exist side by side and even be synergistic.

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What Is Fintech, and What Does the Future Hold?

Financial technology has become widely accepted, and many businesses and individuals prefer to handle transactions digitally.

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Fintech Regulation: Balancing Innovation and Consumer Protection

Fintech regulation sometimes struggles to provide consumer protection, data privacy, and stability without hampering innovation.

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Fiat vs Crypto: A Comprehensive Comparison

Fiat currencies are legal tender controlled by governments. Cryptocurrencies are digital assets that use blockchain technology.

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The Multi-Faceted Role of Blockchain in Finance

The role of blockchain in finance continues to evolve and grow. Here’s a look at its many use cases and benefits.

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Fintech vs DeFi: The Evolution of Financial Services

DeFi is a subset of fintech, but as time passes, it’s an increasingly large subset. Find out how decentralized finance interacts with fintech.

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Asset Tokenization: Improving Data Protection

Discover how tokenization strengthens data protection, offering unmatched security and compliance in digital asset management.

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How AI integration is helping to solve tokenization challenges

Discover how AI integration can support tokenization by boosting efficiency and security, leading to future innovations in digital asset management.

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Boosting Supply Chain Resilience Through Tokenization

Discover how tokenization boosts supply chain resilience through transparency and efficiency, addressing logistical challenges with blockchain innovation.

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Real Estate Tokenization: Transforming Property Investment

Learn how real estate tokenization enhances liquidity, security, and efficiency, reshaping investment accessibility and market trends.

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