What Is Serum (SRM)?
Serum refers to both the Serum decentralized exchange and SRM, its utility token.
As a cryptocurrency, the Serum token runs natively on the Solana blockchain, which means Serum transactions take place very quickly. The token is cross-listed as an ERC-20 token on Ethereum.
Serum is also available in a 1 million-token denomination, the MegaSerum. Users can convert SRM to MSRM and vice versa. The Serum Foundation has created a supply cap of 1,000 MSRM. Holders of MSRM tokens enjoy special privileges in Serum ecosystem governance.
SRM’s main purpose is to serve as the utility token of the Serum decentralized cryptocurrency exchange. The Serum DEX is the primary application of Serum tokens.
How Does Serum Work?
Serum works much the same way Ether does. It may be held, traded, and exchanged like any other currency. The Serum team even takes advantage of Solana’s virtual machine to support the execution of smart contracts.
Its cross-listing as an ERC-20 fungible token means that it can collaborate in native exchanges with tokens based on the Ethereum blockchain.
Because Serum is implemented on the Solana blockchain, transactions happen very quickly. Solana can handle 50,000 or more transactions per second, compared with 15 to 30 tps on Ethereum.
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Who Are the Founders of Serum? (History of Serum)
The Serum team is headed by Sam Bankman-Fried, who started his career as a Wall Street investment banker and financial advisor at Jane Street Capital. Bankman-Fried left Jane Street in 2017 to launch Alameda Research, a cryptocurrency trading firm that currently executes trades worth $600 million to $1.5 billion in digital assets and derivatives every day. The company provides liquidity and manages digital assets for individuals and institutional investors.
In 2019, Bankman-Fried and Alameda launched FTX, which – with a major investment from China’s Binance exchange – quickly became one of the world’s largest trading platforms for crypto derivatives. Not yet 28 years old, Bankman-Fried was identified as one of the world’s youngest billionaires by publications like Bloomberg and Forbes. His current net worth is estimated to be $11.5 billion, mostly derived from holdings gained at the FTX derivatives exchange.
Serum is Bankman-Fried’s latest venture. The project is a player in the emerging field of decentralized finance – banking services, investing, and trading in a fully decentralized manner, without the participation of banks or other institutions. As a decentralized exchange, Serum allows users to buy, sell, and exchange crypto funds without involving a central database, user list, or website.
Openly idealistic, Bankman-Friend says he is working so hard to amass a fortune so he will have more money to donate to charity projects and start-ups that will change people’s lives for the better. Each of his companies sets aside a portion of its revenue for charity.
What Makes Serum Unique?
Two factors make Serum unique.
The first is its distributed architecture. Although crypto funds are stored on fully distributed blockchains, exchanges tend to be traditional websites. That means customer lists and crypto storage lockers may be hacked. Virtually all of the big crypto thefts that have made headlines over the past five years have been focused on centralized cryptocurrency exchanges. With a decentralized exchange like Serum, there is no central authority to approve or deny transactions, charge high transaction costs, or expose users to security risks.
The second factor is Serum’s status as a Solana-based coin. That means it is suitable for a great many jobs that are currently beyond the reach of mainstream digital currencies. Solana’s scalability is a tremendous advantage over other coins.
What Gives Serum Value?
Serum gains value primarily because of its use as a utility token on the Serum DEX. It is attractive to investors because of its unique scalability, its interoperability with Ethereum, and the reputation of the project’s charismatic founder. SRM also appeals to investors who like their crypto served with a side order of philanthropy.
Once in widespread use, the coin will provide benefits to users because of low transaction costs associated with the elimination of a central exchange.
How Many Serum (SRM) Coins Are in Circulation?
The supply of SRM is limited to 10 billion. are currently in circulation. Serum initially launched about 10% of SRM tokens in unlocked form. The remaining 90% unlock according to a fixed schedule over six years. This means that initial seed investors will see a return on their investments only gradually. As the SRM website says about the locked tokens, “they are meant for long-term supporters of the Serum ecosystem, not quick profit.”
Other Technical Data
Serum is able to support smart contracts via Ethereum interoperability and on the Solana blockchain thanks to Solana’s Low-Level Virtual Machine, which works like the Ethereum Virtual Machine that supports smart contracts conducted on the Ethereum blockchain. The LLVM was created by the Solana team, not Serum, but it is a key advantage of SRM as a general-purpose cryptocurrency.
How Is the Serum Network Secured?
Because the Serum DEX is fully distributed, the Serum ecosystem does not have a single point of failure. There is no central exchange website for hackers to target.
Transactions and data on the Solana blockchain are cryptographically secured.
How To Use Serum
Most current Serum users are investors who don’t mind having their investments locked up for years as the funds gradually thaw. The coin is specifically designed to appeal to long-term investors, not speculators looking to make a quick killing.
Making a larger investment in Serum lets you participate in governance decisions about the Serum Exchange and the project team’s DeFi ambitions.
How To Choose a Serum Wallet
Serum recommends the SOL wallet from sollet.io, which is specially designed for use with Solana-based digital assets. However, an SRM coin can be secured in just about any crypto wallet. Interoperability with the Ethereum blockchain means that Ethereum-based wallets are fully compatible.
Among the most popular Ethereum-compatible wallets are Bitski, Arkane, MetaMask, and Brave.
If you have a big investment in SRM or you are holding coins that are only gradually thawing into liquid form, a hardware wallet or cold wallet might be the best choice. These wallets provide extra security and are perfect for securing long-term investments. Wallets from Ledger and Trezor provide some of the most secure options for storing cryptocurrencies with offline storage and backup.
But a special wallet isn’t required. You’ll find plenty of free, easy-to-use SRM-compatible wallets on the internet, most compatible with desktop computers, smartphones, and other devices. Keep your password secure and any of these wallets will do an excellent job of providing prompt, secure access to your SRM and other digital assets whenever you need it.
Kriptomat offers a secure storage solution, allowing you to store and trade Serum tokens without hassle. Storing SRM with Kriptomat gives you the ideal combination of enterprise-grade security and user-friendly features.
Serum: Mining or Proof of Stake?
Because it is based on the Solana blockchain, Serum uses neither Proof of Work nor Proof of Stake to validate transactions. Instead, Solana uses a unique Proof of Time strategy in which links to previous blocks establish the sequence of entries to the blockchain’s distributed ledger. It is this creative solution to making older ledger entries immutable that allows Solana to process 50,000 to 70,000 transactions per second.
The Bottom Line
SRM is a unique opportunity to invest in decentralized finance and a crypto future that is wholly divorced from the expensive, controlling effects of central banking authorities. This is a compelling vision. Add the philanthropic commitment of Sam Bankman-Fried and the Serum project represents a rare chance to put your money where your mouth is. The currency has shown steady growth, so SRM and the Serum exchange can also be an opportunity to do good while doing well.
Here’s some information to help you get started with this unique cryptocurrency.
Can Serum Be Staked?
Setting up a node requires a minimum of 10 million SRM, which must contain at least 1 MSRM. Nodes perform important on-chain actions, for which they receive staking rewards. Users may also stake towards another node in order to receive a fraction of its staking rewards.
How To Buy Serum
You’re already here at Kriptomat. You can take the next step with a single click. Just visit Kriptomat’s how to buy Serum page for step-by-step instructions.
How To Sell Serum
If you are holding SRM tokens in your Kriptomat wallet, selling is easy as can be. Just use your wallet’s interface to choose your desired payment option.
Serum’s price is influenced by market factors, news reports, economic developments, and the general state of the economy. The price also fluctuates in response to announcements regarding the Serum DEX, including new institutional partners.
The current Serum price is EUR and the 24-hour trading volume is EUR.
Serum is currently ranked of all cryptocurrencies by total market cap, with a market cap of EUR. It has a circulating supply of SRM and a max supply of SRM.
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