How to convert cash app balance to Cardano

To solve the problem of converting your Cash App balance to Cardano, here are the detailed steps, though it’s crucial to understand the inherent risks and the speculative nature of cryptocurrencies like Cardano ADA. This process typically involves an intermediary cryptocurrency exchange, as Cash App primarily supports Bitcoin and doesn’t directly facilitate ADA transactions.

1. Withdraw Bitcoin from Cash App:

   • Open your Cash App.
   • Navigate to the “Bitcoin” tab.
   • Tap “Withdraw Bitcoin.”
   • You’ll need a Bitcoin wallet address from a reputable crypto exchange that supports Cardano.
   • Scan the QR code or manually enter the Bitcoin wallet address from your chosen exchange e.g., Binance, Coinbase, Kraken.
   • Confirm the withdrawal. This process can take some time, from minutes to an hour or more, depending on network congestion.

2. Transfer Bitcoin to a Reputable Cryptocurrency Exchange:

   • Sign up and complete KYC Know Your Customer verification on a major cryptocurrency exchange that lists Cardano ADA. Examples include Binance, Coinbase, Kraken, or KuCoin.
   • Locate your Bitcoin BTC deposit address on the chosen exchange.
   • Use this address to send Bitcoin from your Cash App.

3. Convert Bitcoin to Cardano ADA on the Exchange:

   • Once your Bitcoin deposit confirms on the exchange, navigate to the trading section.
   • Look for the BTC/ADA trading pair.
   • Place a “Market Order” to instantly convert your BTC to ADA, or a “Limit Order” if you want to set a specific price.
   • Confirm the trade.

4. Consider Self-Custody Optional but Recommended:

   • After acquiring ADA, it’s generally safer to withdraw it from the exchange to a personal Cardano wallet e.g., Daedalus, Yoroi. This provides you full control over your assets and mitigates exchange-specific risks. You can find official wallet links on the Cardano Foundation website or Emurgo’s official resources.

This multi-step process highlights the indirect nature of converting a Cash App balance to Cardano. Given the speculative nature of cryptocurrencies, and the potential for financial loss, it’s highly recommended to exercise extreme caution and consider seeking advice from qualified financial professionals. Investing in volatile assets carries significant risk, and from an Islamic perspective, engaging in highly speculative financial ventures can be discouraged due to elements of gharar excessive uncertainty and potential for riba interest if loans or certain financial products are involved in the process. Always prioritize lawful and ethical financial practices that align with Islamic principles.

Understanding the Landscape of Digital Assets and Financial Prudence

Navigating the world of digital assets requires a thorough understanding of their mechanisms, the associated risks, and the ethical considerations, especially from a principled perspective.

While the allure of quick gains can be strong, a disciplined approach is crucial, focusing on long-term stability and ethical investment avenues rather than highly volatile and speculative ventures like many cryptocurrencies.

The Nature of Cryptocurrency and Its Volatility

Cryptocurrencies, including Cardano ADA, are digital or virtual currencies secured by cryptography, making them nearly impossible to counterfeit or double-spend.

They are decentralized, meaning they are not subject to government or financial institution control.

This decentralization, while appealing to some, also contributes to their inherent volatility.

Price Fluctuations and Market Dynamics

Cryptocurrency prices are influenced by a myriad of factors, leading to rapid and significant price swings.

• Supply and Demand: Like any asset, if demand for ADA increases and supply is limited, its price tends to rise, and vice-versa.
• Technological Developments: News of upgrades, partnerships, or adoption of Cardano’s blockchain can significantly impact its price. For example, the Cardano Alonzo hard fork in September 2021, which enabled smart contracts, led to a surge in ADA’s price, reaching an all-time high of over $3.00. However, subsequent market corrections saw its value drop significantly, demonstrating the rapid shifts.
• Regulatory News: Government regulations or bans in major economies can cause widespread panic selling and price drops. For instance, China’s crackdown on crypto mining and trading in 2021 sent shockwaves across the global crypto market.
• Macroeconomic Factors: Global economic conditions, interest rate changes, and inflation concerns can also affect investor sentiment towards riskier assets like cryptocurrencies.
• Market Sentiment and Speculation: A large portion of crypto trading is driven by speculation and ‘fear of missing out’ FOMO, leading to irrational exuberance or panic. In fact, research by the National Bureau of Economic Research NBER in 2022 highlighted that individual crypto investors often exhibit speculative behavior, leading to disproportionate losses for less experienced participants.

Risks Associated with Crypto Investment

Beyond price volatility, several other risks are paramount to consider.

• Lack of Regulation: Many parts of the crypto market are unregulated or loosely regulated, offering little protection to investors compared to traditional financial markets. This regulatory vacuum can expose individuals to scams, fraud, and market manipulation.
• Cybersecurity Threats: Crypto exchanges and wallets are prime targets for hackers. Billions of dollars in cryptocurrencies have been stolen from exchanges over the years. A notable example is the Mt. Gox hack in 2014, which resulted in the loss of 850,000 Bitcoins, valued at hundreds of millions of dollars at the time. More recently, the Ronin Network bridge hack in March 2022 saw over $600 million in Ethereum and USDC stolen.
• Irreversible Transactions: Unlike traditional banking, crypto transactions are irreversible. If you send funds to the wrong address, they are generally lost forever.
• Complexity and Technicality: Understanding wallets, private keys, blockchain networks, and smart contracts can be complex, posing a barrier for less technically inclined individuals.
• Environmental Concerns: The energy consumption of some proof-of-work cryptocurrencies though Cardano uses proof-of-stake which is more energy-efficient raises environmental concerns, prompting a re-evaluation of their societal impact.

Cash App’s Role and Limitations in Crypto Transactions

Cash App, developed by Block Inc.

formerly Square, has become a popular mobile payment service in the United States, allowing users to send and receive money, invest in stocks, and buy/sell Bitcoin.

However, its cryptocurrency functionality is quite limited. How to convert visa gift card to Cardano

Bitcoin-Only Crypto Offering

Cash App’s primary focus on cryptocurrency is Bitcoin.

This means users can buy, sell, and withdraw Bitcoin, but not other cryptocurrencies like Ethereum, Cardano, Ripple, or Dogecoin.

• Simplicity: This limited offering simplifies the user experience for newcomers to crypto, as they don’t have to navigate a multitude of altcoins.
• Regulatory Compliance: Focusing on Bitcoin might also simplify regulatory compliance for Cash App, given Bitcoin’s longer history and relatively clearer regulatory stance compared to newer, less understood digital assets.
• No Direct Altcoin Support: The inability to directly purchase or hold altcoins like Cardano within Cash App necessitates the multi-step process outlined in the introduction. This adds layers of complexity, transaction fees, and potential delays for users looking to diversify beyond Bitcoin.

Withdrawal Limits and Fees

Like most financial platforms, Cash App imposes limits on Bitcoin withdrawals and may charge fees.

• Withdrawal Limits: Cash App has daily and weekly withdrawal limits for Bitcoin. For instance, verified users typically have a withdrawal limit of $5,000 per day and $10,000 per week. These limits are subject to change and can vary based on account verification status.
• Transaction Fees: While Cash App often advertises low or no fees for certain services, Bitcoin withdrawals involve network fees miner fees which fluctuate based on network congestion. Cash App may also add a small service fee on top of the network fee. For example, during periods of high Bitcoin network activity, fees can range from a few dollars to tens of dollars per transaction. Users should always check the exact fee displayed before confirming a withdrawal.

Choosing a Reputable Cryptocurrency Exchange

When converting Bitcoin to Cardano, selecting a secure, reliable, and user-friendly cryptocurrency exchange is paramount.

Not all exchanges are created equal, and due diligence is crucial.

Key Criteria for Selection

Several factors should guide your choice of a crypto exchange.

• Security: This is the most critical factor. Look for exchanges with robust security measures such as two-factor authentication 2FA, cold storage for the majority of user funds offline storage, insurance funds, and regular security audits. Reputable exchanges like Coinbase, Binance, and Kraken invest heavily in security infrastructure.
• Supported Cryptocurrencies: Ensure the exchange supports both Bitcoin for deposit and Cardano ADA for trading. Some exchanges specialize in a few major coins, while others offer hundreds of altcoins.
• Fees: Compare trading fees taker/maker fees, deposit fees, and withdrawal fees across different exchanges. Fees can significantly eat into your profits, especially for frequent traders. For example, Binance’s spot trading fees can start as low as 0.1%, while Coinbase’s fees can be higher, particularly for smaller transactions.
• Liquidity: High liquidity means you can buy or sell your assets quickly at stable prices without significant price slippage. Major exchanges generally have high liquidity for popular trading pairs.
• User Interface UI and User Experience UX: A clean, intuitive interface makes trading easier, especially for beginners.
• Customer Support: Responsive and helpful customer support is invaluable, especially if you encounter issues with transactions or your account.
• Regulatory Compliance: Choose exchanges that comply with regulations in their operating jurisdictions, as this often indicates a higher level of trustworthiness and operational integrity.

Popular Exchanges Supporting ADA

Several top-tier exchanges facilitate the trading of Cardano ADA.

• Binance: The world’s largest cryptocurrency exchange by trading volume, offering a vast array of cryptocurrencies, competitive fees, and advanced trading features. It supports numerous ADA trading pairs.
• Coinbase: A user-friendly exchange popular for beginners, known for its strong regulatory compliance and security. It offers ADA trading and has a simple interface for buying, selling, and converting assets.
• Kraken: A long-standing and highly respected exchange known for its robust security, wide range of fiat funding options, and professional trading features. Kraken offers ADA trading with various fiat and crypto pairs.
• KuCoin: A popular choice for altcoin trading, offering a wide selection of cryptocurrencies, including ADA, and often listing newer projects. However, it’s generally considered less regulated than Coinbase or Kraken in some jurisdictions.
• Gate.io: Another exchange with a broad selection of cryptocurrencies, including ADA, often favored by users looking for a wider variety of altcoins.

Always visit the official websites of these exchanges to verify their services, fees, and supported assets before committing funds.

The Conversion Process on an Exchange

Once you have Bitcoin on your chosen exchange, the next step is to convert it into Cardano ADA. This process involves understanding trading pairs and order types. How to transfer Cardano through cash app

Understanding Trading Pairs e.g., BTC/ADA

A trading pair represents the exchange rate between two different assets. When you see BTC/ADA, it means you are trading Bitcoin the base currency for Cardano the quote currency.

• Base Currency: The asset you are selling. In BTC/ADA, if you are converting BTC to ADA, BTC is the base currency.
• Quote Currency: The asset you are buying. In BTC/ADA, ADA is the quote currency.
• Inverse: If you saw ADA/BTC, it would mean trading ADA for BTC.
• Market Impact: The liquidity of a specific trading pair determines how easily you can execute large orders without significantly affecting the price. Major pairs like BTC/ADA generally have high liquidity.

Executing Buy/Sell Orders

Exchanges offer different order types to facilitate trading.

• Market Order: This order type executes immediately at the best available market price. It’s the simplest way to convert assets quickly.

  • Pros: Instant execution.
  • Cons: You might not get the exact price you saw if the market is highly volatile, as the price can move between the time you place the order and its execution. This is known as slippage.

• Limit Order: This order type allows you to set a specific price at which you want to buy or sell an asset. Your order will only be executed if the market price reaches your specified limit price.

  • Pros: Allows you to control the price at which your trade is executed, potentially getting a better deal.
  • Cons: Your order might not be filled if the market price never reaches your specified limit. You might miss out on a trade if the price moves away from your desired level.

• Stop-Limit Order: A more advanced order that combines a stop price and a limit price. When the stop price is reached, a limit order is placed. This is often used for risk management.

• Common Steps:

  1. Navigate to the “Trade” or “Spot Trading” section of the exchange.

  2. Select the BTC/ADA trading pair.

  3. Choose your desired order type Market for quick conversion, Limit for price control.

  4. Enter the amount of Bitcoin you wish to convert or the amount of ADA you wish to receive. How to transfer Cardano to your account

  5. Review the details, including potential fees, and confirm the order.

  6. Once executed, your Bitcoin will be converted to Cardano, and the ADA will appear in your exchange wallet.

Post-Conversion: Securing Your Cardano ADA

Leaving your Cardano ADA on an exchange exposes you to exchange-specific risks, including hacks, insolvency, or regulatory actions.

For greater security and control, it’s generally recommended to transfer your ADA to a personal, self-custodied wallet.

The Importance of Self-Custody

Self-custody means you hold the private keys to your cryptocurrency, giving you direct control over your assets.

• Reduced Counterparty Risk: You are not relying on a third-party the exchange to secure your funds. If the exchange is hacked or goes bankrupt, your funds are safe as long as you control your private keys.
• Full Control: You have immediate access to your funds and can transact without needing exchange permission.
• Empowerment: It aligns with the decentralized ethos of cryptocurrencies.
• Responsibility: With great control comes great responsibility. If you lose your private keys or seed phrase, your funds are irretrievable.

Reputable Cardano Wallets Software & Hardware

There are several trusted wallets specifically designed for Cardano.

• Software Wallets Hot Wallets: These are applications installed on your computer or mobile device. While convenient, they are connected to the internet, making them slightly more susceptible to online threats.
  • Daedalus Wallet: The official full-node desktop wallet for Cardano, developed by IOHK. It downloads a full copy of the Cardano blockchain, offering maximum security and functionality, including staking. It’s available for Windows, macOS, and Linux.
  • Yoroi Wallet: A light-client browser extension and mobile wallet for Cardano, developed by Emurgo. It’s faster to set up and use than Daedalus as it doesn’t require downloading the full blockchain. It also supports staking. Available for Chrome, Firefox, Edge, Android, and iOS.
• Hardware Wallets Cold Wallets: These are physical devices that store your private keys offline, offering the highest level of security for your crypto assets.
  • Ledger Nano S/X: Popular hardware wallets that support Cardano ADA along with many other cryptocurrencies. Transactions are signed offline, providing strong protection against online threats.
  • Trezor Model One/T: Another widely used brand of hardware wallets supporting ADA. Similar to Ledger, they keep your private keys isolated from internet-connected devices.

Steps for Transferring ADA to a Personal Wallet

1. Install/Set Up Wallet: Download and install your chosen software wallet e.g., Daedalus or Yoroi or initialize your hardware wallet.
2. Generate Receive Address: In your wallet, navigate to the “Receive” section to generate your unique Cardano ADA deposit address. This address typically starts with addr1....
3. Initiate Withdrawal from Exchange: On the cryptocurrency exchange where you hold your ADA, go to the “Withdraw” section.
4. Select ADA: Choose Cardano ADA as the asset you want to withdraw.
5. Enter Address: Paste your Cardano wallet’s receive address into the withdrawal address field on the exchange.
6. Enter Amount: Specify the amount of ADA you want to withdraw.
7. Review and Confirm: Double-check the address, amount, and any associated withdrawal fees. Confirm the transaction.
8. Confirmation: The ADA should appear in your personal wallet after the transaction is processed and confirmed on the Cardano blockchain typically within minutes.

Ethical and Financial Considerations from an Islamic Perspective

While the technical process of converting Cash App balance to Cardano is straightforward, it’s crucial to address the broader ethical and financial implications, especially from an Islamic viewpoint.

Speculative ventures like many cryptocurrencies are often discouraged due to elements of excessive uncertainty and the potential for financial harm.

Understanding Gharar Excessive Uncertainty

Gharar refers to excessive uncertainty or risk in a contract or transaction that could lead to harm or injustice to one of the parties.

In Islamic finance, transactions involving significant gharar are generally prohibited. How to transfer Cardano to robinhood

• Speculative Nature of Crypto: The extreme price volatility of cryptocurrencies makes them highly speculative. Investors are often buying based on the hope of future price increases rather than intrinsic value or productive economic activity. This resembles gambling maysir, which is explicitly forbidden.
• Lack of Tangible Backing: Unlike traditional assets like real estate or productive businesses, many cryptocurrencies do not have tangible underlying assets or generate profits through productive means. Their value is largely driven by market sentiment and speculation.
• Risk of Loss: The high risk of losing a significant portion or even all of one’s investment in crypto is a major concern. Responsible financial stewardship in Islam emphasizes preserving wealth and avoiding unnecessary risks.

Avoiding Riba Interest and Promoting Halal Financing

Riba interest is strictly prohibited in Islam, whether it’s charged or paid.

While the act of buying and selling cryptocurrencies itself doesn’t directly involve interest, the broader financial ecosystem surrounding crypto can.

• Interest-Bearing Products: Many crypto platforms offer interest-bearing savings accounts, lending, or staking services that pay fixed or variable returns on crypto holdings. These often involve interest and are considered haram.
• Leverage Trading: Using leverage or margin trading on exchanges to amplify gains or losses often involves borrowing funds, which typically incurs interest. This practice is also problematic.
• Ethical Alternatives: Instead of speculative investments, consider halal financial alternatives:
  • Halal Stocks: Investing in publicly traded companies that comply with Sharia principles e.g., not involved in alcohol, gambling, pork, conventional finance, or excessive debt.
  • Sukuk Islamic Bonds: Asset-backed financial certificates that represent ownership in tangible assets or a share in a project, offering returns without interest.
  • Islamic Mutual Funds: Funds that invest in a diversified portfolio of Sharia-compliant assets.
  • Real Estate: Investing in tangible properties that generate rental income or appreciate in value.
  • Ethical Businesses: Investing in or starting businesses that provide genuine goods and services, contribute positively to society, and operate on principles of fairness and justice.

The Concept of Mal Wealth and Its Purpose

In Islam, wealth mal is seen as a trust from Allah.

It should be acquired through lawful means, utilized responsibly, and distributed equitably.

• Productive Use of Wealth: Wealth should ideally be used for productive investments that benefit society, create jobs, and foster economic growth, rather than purely speculative endeavors that merely redistribute wealth without creating new value.
• Avoiding Waste and Extravagance: Engaging in highly speculative investments, especially with funds that are essential for one’s livelihood or dependents, can be seen as a form of waste or irresponsible behavior.
• Financial Security for the Future: Islam encourages planning for the future and ensuring financial stability for oneself and one’s family. Gambling-like investments contradict this principle.

In conclusion, while the technical steps to convert Cash App balance to Cardano exist, the inherent risks, speculative nature, and ethical considerations surrounding cryptocurrencies warrant extreme caution.

Prioritizing halal and ethical financial practices that align with Islamic principles of wealth preservation, productive investment, and avoidance of excessive uncertainty is paramount.

Always consult with knowledgeable scholars or ethical financial advisors for personalized guidance.

Frequently Asked Questions

What is Cardano ADA?

Cardano ADA is a decentralized public blockchain and cryptocurrency project.

It is known for its rigorous, peer-reviewed academic research approach to development and aims to be a more scalable, sustainable, and interoperable blockchain platform for smart contracts and decentralized applications dApps.

Is it Haram to invest in Cardano ADA?

Whether investing in Cardano ADA is considered Haram is a complex question with differing scholarly opinions. The primary concerns from an Islamic perspective revolve around gharar excessive uncertainty/speculation and whether the underlying technology serves a permissible purpose. Given the high volatility and speculative nature of cryptocurrencies, many scholars advise caution, as it can resemble gambling. Furthermore, involvement in interest-bearing crypto products like lending or certain staking models would be considered Haram. It’s crucial to seek guidance from a qualified Islamic scholar familiar with financial technology. How to convert sweatcoin to Cardano

Can I directly send money from Cash App to Cardano?

No, you cannot directly send money from Cash App to Cardano ADA. Cash App currently only supports buying, selling, and withdrawing Bitcoin.

You would need to withdraw Bitcoin from Cash App to a cryptocurrency exchange that supports Cardano, and then convert your Bitcoin to ADA on that exchange.

What are the fees for withdrawing Bitcoin from Cash App?

Cash App charges a small service fee on Bitcoin withdrawals, in addition to the standard network miner fee.

These fees can fluctuate based on network congestion and the amount being withdrawn.

Always check the exact fee displayed in the app before confirming your withdrawal.

Which cryptocurrency exchanges support Cardano ADA?

Many major cryptocurrency exchanges support Cardano ADA. Popular options include Binance, Coinbase, Kraken, KuCoin, and Gate.io.

Always verify the exchange’s offerings and regulatory compliance in your region.

How long does it take for Bitcoin to transfer from Cash App to an exchange?

The transfer time for Bitcoin from Cash App to an exchange can vary.

It typically takes anywhere from a few minutes to an hour or more, depending on Bitcoin network congestion and the number of confirmations required by the receiving exchange. How to convert paypal to Cardano

What is the minimum amount of Bitcoin I can withdraw from Cash App?

Cash App usually has a minimum withdrawal limit for Bitcoin, which can be as low as 0.00001 BTC.

However, it’s always best to check the current minimums within your Cash App account before initiating a transfer.

Is it safe to leave my Cardano ADA on a cryptocurrency exchange?

Leaving your Cardano ADA on a cryptocurrency exchange carries inherent risks, including potential hacks, exchange insolvency, or regulatory issues.

For better security and control, it is generally recommended to withdraw your ADA to a personal, self-custodied wallet once your transaction is complete.

What are the best wallets for storing Cardano ADA?

For storing Cardano ADA, reputable wallets include Daedalus a full-node desktop wallet, Yoroi a light-client browser extension and mobile wallet, and hardware wallets like Ledger Nano S/X and Trezor.

Hardware wallets offer the highest level of security as they store your private keys offline.

What is KYC on a crypto exchange?

KYC stands for “Know Your Customer.” It’s a mandatory process for most regulated cryptocurrency exchanges where users must verify their identity by providing personal information e.g., name, address, date of birth and government-issued identification e.g., driver’s license, passport. This is done to comply with anti-money laundering AML and counter-terrorism financing CTF regulations.

Can I sell Cardano ADA back to Cash App?

No, you cannot directly sell Cardano ADA and have the funds deposited into your Cash App balance.

You would first need to sell your ADA for Bitcoin or a stablecoin on a cryptocurrency exchange, then potentially convert that to Bitcoin, and then withdraw the Bitcoin to your Cash App Bitcoin wallet, or convert it to fiat and withdraw to your bank account linked with Cash App.

What is a “trading pair” on a crypto exchange?

A “trading pair” refers to two different cryptocurrencies or a cryptocurrency and a fiat currency that can be exchanged for each other on an exchange. How to convert Cardano to satoshi

For example, BTC/ADA means you can trade Bitcoin for Cardano, and vice-versa.

What is the difference between a “Market Order” and a “Limit Order”?

A Market Order executes immediately at the best available price on the exchange. A Limit Order allows you to set a specific price at which you want to buy or sell, and the order will only execute if the market reaches that price. Market orders prioritize speed, while limit orders prioritize price control.

Are there taxes on crypto transactions?

Yes, in many jurisdictions, including the United States, cryptocurrency transactions, including buying, selling, or converting one crypto to another, are considered taxable events.

You may be liable for capital gains tax depending on how long you held the asset and your profit. It’s crucial to consult with a tax professional.

What is “staking” Cardano ADA?

Staking Cardano ADA involves holding your ADA in a wallet and delegating it to a stake pool.

This helps secure the network and validate transactions, and in return, you earn rewards in ADA.

While the technical process is simple, some forms of staking that guarantee fixed returns can raise concerns regarding riba interest from an Islamic perspective.

How does Cardano compare to Bitcoin?

Cardano and Bitcoin are both cryptocurrencies, but they have different purposes and technologies.

Bitcoin is primarily designed as a decentralized digital currency store of value, while Cardano is a blockchain platform for smart contracts and decentralized applications, aiming for greater scalability and sustainability using a Proof-of-Stake consensus mechanism Ouroboros compared to Bitcoin’s Proof-of-Work.

What are the risks of using third-party crypto services?

Using third-party crypto services like exchanges or certain wallets introduces counterparty risk. How to convert Cardano to solana on phantom wallet

This means your funds are not entirely under your control and are subject to the security practices, financial stability, and regulatory compliance of that third party.

If the service is hacked, goes bankrupt, or faces legal issues, your funds could be at risk.

Is Cardano considered a “Shariah-compliant” investment?

There is no universal consensus on whether Cardano or cryptocurrencies, in general, are “Shariah-compliant.” The debate centers on the nature of their value, the presence of gharar uncertainty, and how they are used.

Some scholars argue against their speculative nature, while others consider specific crypto assets as permissible if they serve a real economic purpose and are not involved in haram activities.

It is highly recommended to seek guidance from an Islamic finance expert.

What are some ethical alternatives to speculative crypto investments?

Ethical alternatives to speculative crypto investments include investing in Shariah-compliant stocks companies not involved in haram activities, Sukuk Islamic bonds, Islamic mutual funds, real estate, and direct investment in ethical businesses that provide genuine goods or services and operate on principles of fairness and justice. These alternatives focus on productive assets and avoid interest and excessive speculation.

What does “decentralized” mean in cryptocurrency?

“Decentralized” in cryptocurrency means that the network is not controlled by a single entity, like a bank or government.

Instead, it is maintained by a distributed network of computers nodes that collectively validate transactions and secure the blockchain.

This reduces the risk of censorship, single points of failure, and external control.

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