A peer-to-peer (P2P) economy is defined as an ecosystem wherein any two individuals may interact to buy/sell goods and services directly with each other without the intervention of a third-party, demonstrating a highly efficent and flexible economic network.
Ichimoku Kinko Hyo is a versatile technical indicator used to identify trends, support and resistance, gauge momentum, and to generate buy or sell signals. The name of the indicator translates into “one look equilibrium chart”. Must read: What Is Technical Analysis? The indicator reflects on all of the above parameters by taking multiple averages into consideration and plotting them on a chart, and the interpretation of the chart is factual in nature, i.e., it remains the same irrespective of the time frame. Originally developed by a Japanese journalist – Goichi Hosoda in 1960s, the indicator provides more data points as compared to the traditional candlestick chart, and it could be applied on any type of chart, irrespective to the chart’s own data points, i.e., the chart could be a bar chart, a candlestick chart, or a simple line chart. While at first glance the indicator could seem intimidating and highly technical to novice traders or investors. However, the indicator is relatively easy, and once a trader understands the nitty-gritty of its derivation and implications, it could become quite handy to gauge the market sentiment. Moving Parts of Ichimoku Kinko Hyo The Ichimoku Kin Hyo mainly contains two short-term moving averages- the conversion line (kenkan sen) and the base line (Kijun sen), one medium-term average – Leading Span A (senkou span A), one long-term moving average – Leading Span B (senkou span B), and a historical closing plot – Lagging Span (chikou span). Derivation of Components The conversion line of the indicator is derived by taking the mean value of 9-period high and low. Likewise, the base line of the indicator is derived by taking the mean value of 26-period high and low. The leading Span A is typically the mean value of the conversion line and the base line. The leading Span B is the mean value of 52-period high and low. And the lagging Span is the close plot of 26-period in the past. Cloud 1 – Span A crosses above Span B. Cloud 2 – Span A crosses below Span B. In the definition, we mentioned that the Ichimoku Kin Hyo is factual in nature; thus, in the derivation section, we have used PH and PL notions. The period here could take any from, such as daily, weekly, monthly. So, if we are applying Ichimoku kin Hyo on the daily chart, the PH and PL notion would consider 9-day high and 9-day low. Likewise, if are applying the Ichimoku Kin Hyo indicator on a weekly chart, the PH and PL notion would consider 9-week high and 9-week low, and so on. Interpretation For interpreting signals from the Ichimoku, the first thing which should be considered is the crossover between the conversion line and the base line along with relative position of Span A and Span B. When the conversion line crosses above the base line from below, it is typically considered as a positive signal, and when the conversion line crosses the base line below from above, it is considered as a negative signal. Furthermore, if the positive crossover between the conversion line and the base line takes place above Span A, it reflects on the strength of the trend towards upward. Likewise, if the negative crossover between the conversion line and the base line takes place below Span B, it reflects on the strength of the trend towards downward. Ideally, if Span A trades above Span B, the trend is considered to be an uptrend. Likewise, if Span A trades below Span B, the trend is considered to be a downtrend. The behaviour of the cloud as either support or resistance depends upon the relative position of the price with respect to the cloud. For example, if the price of an asset is trading below cloud, the cloud acts as the resistance zone for the price. Likewise, if the price of an asset is trading above cloud, the cloud acts as the support zone for the price.
What is blockchain and blockchain technology? Blockchain: Blockchain is a list of records, also known as blocks, that store data publicly chronologically. The information within the blocks is encrypted and ensures the privacy and safety of the users and data. DO WATCH: Key Concepts you need to know around Blockchain (Blockchain Explained) Blockchain Technology: Blockchain Technology is also known as the Distributed Ledger Technology that stores transactional records of the public in multiple databases connected via peer-to-peer node. The transactional record in blockchain technology is known as a block. The blocks are in multiple databases, called chains, and the storage is known as a digital ledger. Put simply, every transaction that takes place is a ledger that is authorised by the digital signature of the owner, which not only authenticates the transaction but protects them from getting tampered. An example to help understand the concept in a better way is the use of Google doc. Most of us are familiar with Google doc. When a Google doc is prepared, the document can be shared with a set of people instead of getting photocopied or transferred. The document is decentralised, allowing full real-time access. This is the simplest example to understand the concept behind the blockchain technology. However, this technology is much complex than Google Doc. What are the components of blockchain? Image Source: © Kalkine Group 2020 Blockchain comprises of six core components: Node: A node refers to the user or the system within the blockchain. Transaction: Transaction is a building block of the system. Block: Block refers to a data structure that is used for keeping a set transaction to be distributed to all nodes in the network. Chain: Chain refers to the sequence of the blocks in a particular order. Miners: Miners perform the block verification process before anything is added to the blockchain structure. Consensus: Consensus refers to the set of guidelines and arrangements to conduct blockchain operations. How does blockchain work? In the first stage, a transaction is requested. After the request, a block is created, which represents the transaction. After the block is created, it is sent across all the nodes in the blockchain network. Once the block reaches a node, the transaction is authenticated. After the verification, the node receives a Proof of Work reward. The block is then appended to the existing blockchain, signalling transaction completion. The blocks in the transaction comprise of three components. These include data, the hash of the block, and a hash from the previous block. The data that stored in each block depends on the type of blockchain. For example, in a bitcoin blockchain infrastructure, the block has data concerning, sender, receiver and the number of coins. A hash which acts as a fingerprint gets generated with the help of a cryptographic hash algorithm. The hash is a long record comprising some digits and letters that help detect blocks quickly in the blockchain structure. Once a block is created, it is attached to a hash which changes if there is any modification in the block. The hash helps to find any changes in the blocks. The final element within a block is the hash from the previous block, which creates a chain of blocks and is the reason behind the security of the block architecture. What is the reason behind blockchain’s popularity? Record keeping of data and transactions form a crucial part of the business. In most cases, this information is either handled within the organisation or passed through a third party, like brokers. The process involves both time and cost. The problem could be overcome with the help of blockchain. Blockchain helps in reducing the long process and allow faster movement of transaction. Blockchain technology has the potential to support several applications related to various industries like supply chain, finance, manufacturing etc. Blockchain is an emerging technology and has many advantages in this digital world. They are: Highly secure It is a decentralised system. It means that the transaction happens with the mutual agreement between the parties involved resulting in smoother, safer, and faster transactions. In a conventional transaction, there is a need for permission from a regulatory body. However, for a transaction via blockchain technology, this is not the case. Automation capability - This means that the blockchain technology is programmable and is capable of generating events, systematic measures, and payments automatically once the trigger conditions are fulfilled. ALSO READ: Blockchain Makes Inroads; More Diverse Sectors Adopt this Decade-Old Technology Are blockchain and bitcoin the same? Most of us get confused that blockchain and bitcoin are the same. However, it is not so. Bitcoin is a cryptocurrency or a digital form of money. Blockchain technology facilitates bitcoin. The scope of blockchain is beyond that. What are the applications of blockchain technology? Blockchain technology has a wide range of applications. Some of them are mentioned below: Secure sharing of medical data Cross-border payments Real-time IoT operating systems Music royalties tracking Anti-money laundering tracking system Personal identity security Voting mechanism Supply chain and logistics monitoring Advertising insights Cryptocurrency exchange Original content creation Real estate processing platform INTERESTING READ: Future Innovation Lies in Blockchain Technology
What are payday loans? Payday loans are short term loans that usually involve high interest rates. They are usually due on the forthcoming payday of the borrower. These loans are high cost loans that are riskier than other covered loans. The borrower may not be asked to provide collateral in exchange for a payday loan. People usually take payday loans when they are short on money to get through the month till their payday. Even though these loans involve small amounts, they are very expensive, and, in some cases, the most costly loans offered. Non-bank institutions offer these loans. Companies may offer payday loans to those people who have difficulty making ends meet. If consumers start becoming dependent on these loans to get through the month, then the company would benefit hugely. How does a payday loan work? Payday loans are offered online or through a physical payday lender. The laws governing payday loans might be different for different countries. The limits on how much can be borrowed or lent and how much interest can be charged are different between states as well. Taking a payday loan comes with a cost called a finance charge. The borrower must repay the borrowed amount along with the finance charge, which depends on the amount borrowed. A period of 14 days might be offered after the borrower earns his pay check to repay the loan. The borrower must request the amount of loan, once the request is accepted, the loan is granted. The payday loan can be rolled over to the next month in case the borrower is unable to pay. However, since the interest charged on payday loans if excessively high, the cost keeps on accumulating. The rollovers may be limited in certain areas. What are the advantages of payday loans? Immediate access: Payday loans are easier to access than other loans. Once accepted, the lender may offer the money within 24 hours. There is also not a lot of gap between the time when the request is put in and the time when it is accepted. Thus, they are a good option when there is an immediate need for money. Unsecured loans: Lenders may not be asked to provide collateral against a payday loan. This again makes them more accessible and more smoothly operated than other loans. However, sometimes lenders might have access to the bank accounts of the borrower. So even if the lender may not be able to seize any collateral in case of a default, they might pursue legal actions against the borrower. Few Requirements: Contrary to other personal loans, payday loans do not require as many documents and can be granted more quickly. The absence of these regularities makes these loans appear informal. No credit check required: Traditional loans would require thorough checking of the credit history of the borrower. However, no such requirement is there in case of payday loans. Thus, payday loans may be easier to attain for people with a lower credit score than attainting other traditional loans. What are the problems associated with payday loans? Despite all the advantages offered by payday loans, it is important to note that these loans are much riskier than traditional loans and can be extremely hard to repay if they accumulate over time. Some major issues with payday loans are: Expensive: As mentioned, payday loans are costlier than other loans available. The rates charged on these loans may be as high as an average annual interest rate of 400%. This is much higher than the average interest rates charged on personal loans which may fall between the range of 6% to 10%. Endless debt cycle: It is highly likely that a borrower who is not able to make ends meet with his regular salary, would not be able to repay the loan within the small time frame that is offered for repayment. This is impacted further because of the high interest rates charged on these loans. Therefore, borrowers might find themselves in an endless debt cycle, from which they are unable to come out. They might have to take another loan to finance the previous one, and this might go on. Providing Access to bank account: Certain lenders might require bank account details of the borrowers to make the monthly payments easier. A Lender usually has postdated cheque to access money directly from the borrowers’ bank. However, this direct payment from the bank may turn out to be an additional expense for the borrower incase he is short of money in his account, Informal methods: As the relaxed procedure might make payday loans appear more lucrative, they make the process of procuring repayments informal as well. Many times, debt-collectors might adopt informal methods to procure loan repayments from borrowers, especially when the borrower is in a debt trap. Easy process may lead to hasty decisions: As the process of obtaining a loan is easy and quick, many people might make hasty decisions. However, they can not back out from the agreement once it has been signed. Thus, easier access of payday loans might be more of a disadvantage than an advantage. Disparity between lender and borrower: The lenders of payday loans are wealthy companies that enter into the loan agreement with the intention of collecting profits, rather than with the intent of helping the borrowers. This may lead to exploitation of the borrowers, as they do not have much financial backing. Thus, lenders might choose legal measures to get back their money, which would be difficult for a borrower to fight because of the cost and length associated with the procedure. What are the alternatives to payday loans? Payday loans are usually highly discouraged. They are not seen as frequently and might be more popular in the regional areas. There are various methods with which payday loans can be avoided. This includes improving upon the credit score and building a credit history to be eligible for traditional loans. A great alternative would be to save from one’s salary and keep an emergency fund ready for the case of an emergency. If one job does not suffice the financial requirements, then having a side job for weekends can also be an effective solution. Many people start peer-to-peer lending system that do not have very high interest rates. This can be done by pooling in a certain amount into an emergency fund, and each member taking a loan from the money collected by them. This is a local alternative that would ensure there is no exploitation of borrowers. It is always better to go for a secured loan, as usually secured loans have lower interest rates.
What is Near Field Communication? Near Field Communication (NFC) refers to the contactless or short-range wireless technology that allows the transfer of the data between two NFC-enables devices. Using NFC technology, it is possible to make smartphones, wearables, payment cards, tablets, and many other smart devices smarter. Through NFC, you could even transfer data at a faster rate with a single touch. Source: © Audioundwerbung| Megapixl.com Evolution of NFC NFC is a new short-range wireless connectivity technology that evolved from the integration of contactless identification and interconnection technologies. The first patent related to the Radio Frequency Identification Technology (RFID) was given to Charles Walton in 1983. The patent related to the concept of Radio Frequency powered transponder was filed in 1970, and the patent was granted in 1973 to M. Cardullo and W. Parks. In March 2002, Sony and Phillips provided the force to progress NFC field by joining forces to determine specifications. In 2004, Sony, Nokia and Phillips founded NFC Forum to progress the development and implantation of NFC. This forum creates requirements that confirm the interoperability of the NFC components. In 2006, the first device with NFC functionality was introduced by Nokia under the product model Nokia 6131. In 2010, Samsung became the first company to introduce Android with NFC Support. The product was Samsung Nexus S. In 2011, RIM was the first company to be certified by MasterCard to provide the PayPass functionality on their devices globally. In 2013, Samsung and Visa entered into a partnership to develop mobile payment. In 2015, Apple introduced NFC to its iPhone 6 and iPhone 6 plus. The NFC application was limited to mobile payment. How does Near Field Communication work? Near Field Communication allows data transmission via electromagnetic radio field that allows two devices to communicate. It is essential to know that two devices using this technology can communicate with each other if they are NFC-enabled or simply, we can say that the devices have NFC chips. Source: © Scyther5| Megapixl.com Advantage of NFC over Bluetooth technology Both NFC and Bluetooth technology allow two devices to communicate with each other. However, there are certain advantages of NFC over Bluetooth. Let’s look at the key advantages. In Bluetooth technology, the two devices need to be paired to communicate or transfer data. However, in the case of NFC technology, devices pairing is not required. The connection between the two devices gets automatically established once they come close in the communication range. As NFC communicates in a shorter range, there is a high-security level compared to the Bluetooth technology. NFC also works even if one of the devices is not powered by a battery. An example of this is a contactless smart credit card. NFC requires less power as compared to the Bluetooth technology. What are the types of NFC devices? NFC devices are classified into two types- Passive NFC devices and Active NFC devices. Passive NFC devices Passive NFC devices comprise tags or small transmitters that send information without any power source requirement. These devices do not process any information that is sent from other sources. Besides, these devices cannot connect to other passive components. Active NFC devices Active NFC devices can send as well as receive data. They are capable of communicating with both active and passive NFC devices. An example of an active NFC device is a smartphone. Another example of active NFC device is a card reader most commonly used when one is travelling using a public transport. What are the different modes of operation? At present, there are three different modes of operation to determine the type of information that would be exchanged between the devices. These are: Peer-to-peer mode: In peer-to-peer mode, the exchange of information is allowed between two devices. The most common example is a smartphone. In this mode, both devices switch between active when they send data and passive while they are receiving data. Read-write mode: In this mode, one of the NFC-enabled devices links with the other to read information. Here, the active device is probably a smartphone. In this mode, advertisement tags are used. Card emulation: In card emulation, the NFC device can operate as a smart or a contactless credit card. These are capable of making payments or can be used in public transport systems. Application of Near Field Communication Near field communication has multiple applications. Let us look at them in detail. Smart Cards Making a payment using a smart card (NFC enabled) makes payment easy compared to the traditional multiple-step payment process. An example of this the payment services like Visa and MasterCard. These companies are offering smart cards to their customers. These cards help customers to make faster payment to different stores, restaurants, parking tickets and many more. E-Wallet Nowadays, we are familiar with the term e-wallet. Most of the transactions are now taking place cashless, thus, making payment more convenient for customers. Here, the payment can be made using a simple tap or through waving the card within the close vicinity. You might have also seen many service providers integrating payment option into smartphones via NFC embedded tags inside the device. Some of them are Apple pay, Samsung Pay etc. Smart Ticketing NFC technology has made it possible for customers to replace the conventional ticket system with smart tickets. These smart tickets can be used for purchasing airlines tickets, train tickets, bus tickets. Customers are now able to use these smart tickets for purchasing movie tickets, concert tickets etc. Medicine and Healthcare The role of NFC technology can be seen in the field of healthcare and medicine. NFC technology allows better communication between the medical practioners and patients. These medical practioners helps them to remain updated. Eliminate the need for keys In the present time, we might have seen in many places where NFC technology is used for opening the doors. A most common example here is the cards use for opening the hotel rooms. NFC and RFID are being used for entering the door or places with restricted entry. Manufacturing Near Field Communication helps manufacturing firms furnish their products, parts, tools as well as a machine with NFC tags. NFC tags help in identifying each product from its distinct procedure phases within the Firm. Because of the unique identification number, it is possible for the manufacturers to effectively handle the product in case of any situation like replacement, packaging, transportation etc. Inventory management NFC technology has an important role to play in the fields of inventory management. Big retail shops and supermarkets use smart RFID tags to manage the inventories in the system. Using smart inventory management software, it would be possible for them to have a real-time update on the customers’ product details. The products are available at the store and in the current inventory. The best part here is that, through this NFC technology, the store gets an alert in case of low quantity. Protection from theft When any product has RFID tags, it is possible to protect it from theft. In case a person tries to steal a product with embedded smart tags and passes RFID vicinity, it would get triggered immediately. Better Robotics In present times, robotics is becoming popular gradually. Robotics has a key role to play in manufacturing. In the manufacturing sector, these NFC tags help the robots to carry out the process effectively. Robots would be able to tell the correct components and tools that would be needed to do a particular task. By this, these manufacturing units would reduce the production of any faulty or damaged product. Future of NFC We have seen the usage of NFC in our day to day life. However, NFC will have a much broader scope in the near future. In the upcoming period, the application of NFC could be seen in the below-mentioned fields: Smart Home Because of NFC and RFID, we would be able to personalise and program application via a smartphone. Once the NFC tags get activated, it is possible to control the different types of equipment, door access, set the alarm or execute any other household-related work via the smartphone. IoT and 5G Days are not far when we see the application of NFC in IoT and 5G technologies. IoT and 5G will bring new prospects for new technologies to emerge. Hence, there are possibilities that NFC technologies would be needed in IoT and 5G-enabled network to get the work done efficiently and easy implementation. Advantage and Disadvantage of NFC Advantage of NFC It makes the process of making payment easy along with other transactions via mobile wallet. It can be used in fields of banking, ticketing etc. Allow secure entry to the authorised person within the premises. It is more secure than the magnetic stripped credit or debit card. There is no requirement for any search and pair procedure for the device to communicate. Instead, when NFC enabled devices comes in close vicinity, they automatically establish connectivity. It is friendly with the prevailing RFID networks. The Disadvantage of NFC The biggest drawback with the NFC technology is that it works when the devices are in close proximity in between 10 to 20 cms. The rate at which the data gets transferred from one device to another is relatively slow compared to other technologies. NFC enabled devices are pretty expensive. Though NFC technology is safer than magnetic strip-based credit and debit card, one cannot assure that it is 100% risk-free. Devices being able to communicate at small distances, mobile data may get hacked. NFC devices consume more power.