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98-366 - Networking Fundamentals - Dump Information

Vendor : Microsoft
Exam Code : 98-366
Exam Name : Networking Fundamentals
Questions and Answers : 270 Q & A
Updated On : November 14, 2018
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98-366 Questions and Answers

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98-366 Networking Fundamentals

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98-366 exam Dumps Source : Networking Fundamentals

Test Code : 98-366
Test Name : Networking Fundamentals
Vendor Name : Microsoft
Q&A : 270 Real Questions

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Microsoft Microsoft Networking Fundamentals

Fundamentals of an endemic-free community | killexams.com Real Questions and Pass4sure dumps

here's the first in a collection of six articles that allows you to aspect what I trust to be the basics to having a pandemic-free community. I even have recognized these fundamentals via trial, error and observation within the essentially three years of working in the dual function of programs management servervirus insurance plan administrator at my final region of employment. The aggregate of those fundamentals has allowed that business to have zero network downtime, as a result of virus an infection, when you consider that January 2000 to now.

the primary of these fundamentals is attention.

easily put: You can't offer protection to your community towards a hazard, in case you don't know the probability exists.

directors should keep up to this point on viruses, present virus traits and application and working gadget safety vulnerabilities. How mindful an administrator is set these subjects is terribly essential; it influences all the selections that an administrator will make to be able to give protection to a community from viruses.

There are a few ways in which this will also be completed.

For assistance on viruses and virus trends, the premiere place to beginning is on the net sites of antivirus utility carriers (i will speak more about antivirus utility in my subsequent article). All those corporations have some sort of virus guidance section on their internet websites.

i would suggest checking the net web site that corresponds with the antivirus utility that your business makes use of a few times a day, and each couple of hours could be even stronger. Virus writers are becoming smarter and extra devious daily, and another virus like Nimda or Blaster might unfold throughout the globe in a remember of hours, or even minutes with the appropriate circumstances. The greater frequently you assess, the superior possibility you have got of getting a heads-up on the next virus that goes international.

for the reason that antivirus carriers partly rate the danger level of a deadly disease on what number of samples of a pandemic were submitted through their consumers, it's also a good suggestion to assess a couple of internet site for virus counsel. i would advocate checking out two or three, just to maintain a watch on issues.

listed here are some links to a few respectable antivirus internet websites:

Symantec

network pals

vogue Micro

computer acquaintances

F-cozy

I usually be aware of Symantec's, network buddies Inc.'s and trend Micro Inc.'s internet sites. in keeping with the newest ICSA Labs 2002 Virus prevalence Survey, these three groups make up about 89% of the world antivirus software market share. If a brand new worldwide virus outbreak occurs, one of those three companies is likely going to be the first to have tips on it.

Microsoft has also currently put up an Antivirus tips net web page to provide one vicinity for assistance on viruses that contain protection vulnerabilities in their utility or working programs. here's additionally a brilliant supply of tips for the use of Microsoft items to aid you preserve viruses from infecting your network. Microsoft additionally has an information Base article listing other antivirus application providers here: checklist of Antivirus utility providers (Q49500).

For utility and working gadget protection vulnerabilities, the primary aspect i might suggest is signing up for the NTBugtraq mailing listing at www.ntbugtraq.com. If a security vulnerability comes out, that you can usually examine it on this list before you'll see it anywhere else. other first rate internet sites are www.securityfocus.com, www.cert.org, and www.icsalabs.com.

i would additionally advocate signing up for Microsoft's security Notification provider, so that you can be notified via electronic mail each and every time a security vulnerability from Microsoft is announced, and receive guidance if there is a repair.

The complexities of viruses are increasing each day, because the Nimda and Blaster viruses have taught us all. The vulnerabilities that Nimda used to propagate had been several months historic when that virus went global. The Blaster virus taught us this lesson once again, because it unfold globally under a month after the vulnerabilities it used had been introduced. If greater directors had been privy to these vulnerabilities, then Nimda and Blaster do not have had as massive an have an impact on as it did. To win the war in opposition t viruses, cognizance is the first weapon that you should definitely have on your arsenal.

For more assistance see these studies:

Fundamentals of an epidemic-free community -- half 2 -- with the aid of Chris Mosby

Fundamentals of an epidemic-free community --part three -- by way of Chris Mosby

Chris is the creator of SMS Admin apparatus and currently works because the SMS Administrator for a large regional financial institution in Tupelo, Mississippi. His other accomplishments encompass Beta checking out the present edition of SMS Installer for Microsoft, designing and imposing the initial SMS 2.0 gadget of Bechtel country wide's Waste medicine Plant mission and acquiring his Symantec Product specialist Certification in Norton AntiVirus company version 7.5/7.6.

this article first regarded in myITforum, the premier on-line vacation spot for IT experts chargeable for managing their businesses' Microsoft home windows methods. the center-piece of myITforum.com is a set of member boards the place IT professionals actively exchange technical information, share their expertise, and download utilities that help them more suitable manipulate their windows environments, specifically Microsoft techniques administration Server (SMS). It is a part of the TechTarget community of web websites. To register for the site and sign up for the myITforum daily e-newsletter, click on here: http://myitforum.techtarget.com/registration/kind.asp?user=0.

Microsoft Launches getting to know internet site Fundamentals On web site Builder network | killexams.com Real Questions and Pass4sure dumps

REDMOND, Wash., Dec. four, 1997 — Microsoft Corp. nowadays announced the provision of the studying net site Fundamentals CD-ROM on the Microsoft® web site Builder network net website. gaining knowledge of web website Fundamentals is designed to assist net designers and builders master applied sciences and construction ideas for the web. With the getting to know web site Fundamentals practicing CD, clients will learn the competencies they need to create Dynamic HTML pages for intranet and websites the usage of Microsoft equipment such because the FrontPage® 98 net web site creation and management tool and applied sciences such as these in Microsoft cyber web Explorer 4.0. net designers can use this self-paced practising tool to gain knowledge of the latest in designing and establishing dynamic net sites.

learning internet web page Fundamentals joins Microsoft’s already huge line of award- profitable mastering sequence titles. These content-prosperous, self-paced interactive practicing equipment are designed to support builders and designers immediately arise to pace on Microsoft building equipment and technologies. builders and net website designers can preview mastering internet website Fundamentals and start developing for the internet these days via travelling the web page Builder network at http://www.microsoft.com/sbnmember/data/studying/getting to know.asp for a free on-line preview of the CD-ROM and a downloadable pattern (connect-time charges may additionally apply). learning internet Fundamentals will even be showcased at Fall information superhighway World ’ninety seven in long island metropolis at booth 303 Dec. 10-12.

learning net web site Fundamentals

studying net web page Fundamentals is the primary working towards title to bring practising for web Explorer 4.0 and Microsoft FrontPage 98. It teaches builders and designers a way to take advantage of the latest web applied sciences for developing internet sites by delivering greater than 40 hours of coaching, together with fingers-on exercises, video demonstrations of items and applied sciences, and a variety of sample code that may also be copied. web web page builders and designers will be taught web and intranet ideas, the way to create HTML files that help ActiveX ™ Controls and Java applets, and the way to make use of FrontPage ninety eight to publish documents to a web server, all with a focus on building net pages for Microsoft cyber web Explorer 4.0.

FrontPage 98, the newest edition of the world’s most efficient-selling net web site advent and management tool, supplies a enormously improved set of facets to aid clients construct and control expert-nice web websites readily. Microsoft information superhighway Explorer 4.0 has accomplished big recognition and large industry guide considering that its release in October, with over 2 million downloads from the Microsoft net site in the first week by myself. contemporary stories from Roper Starch worldwide and Dataquest record that information superhighway Explorer’s share of use among net surfers now tops 40 p.c, and that internet Explorer is probably the most conventional browser in the home workstation class.

“learning web web site Fundamentals offers builders the use of visual Studio ™ and designers working with FrontPage a method to leverage existing capabilities and create content material-wealthy, data-pushed web websites,” noted Michael Risse, community manager for visual Studio, developer tools division at Microsoft. “It’s the optimal means for developers and designers to stand up to pace right now on what they should comprehend.”

in regards to the Microsoft learning collection

All gaining knowledge of series titles include a direction of interactive classes, narrated demonstrations, palms-on labs, pattern code, a library of reference fabric to complement classes and exercises, and a flexible searching and looking out equipment that makes it possible for builders to navigate without delay to the information they need. For greater tips on the Microsoft gaining knowledge of collection, please talk over with http://www.microsoft.com/studying/ .

Pricing and Availability

gaining knowledge of web web site Fundamentals is scheduled to be attainable Dec. eight for approximately $99.ninety five from local resellers or through Microsoft licensed Technical education facilities (ATECs). website Builder community participants can be in a position to order the CD-ROM on-line at a different introductory cost of $seventy nine . The web site Builder network is a membership software and on-line useful resource that supports web web page designers and builders, presenting a wealth of free tools, ideas, information, counsel and a brilliant internet building community.

founded in 1975, Microsoft (NASDAQ “MSFT” ) is the worldwide chief in utility for personal computers. The company offers a big range of items and services for business and private use, each and every designed with the mission of creating it more convenient and extra enjoyable for americans to take potential of the entire vigour of non-public computing every day.

Microsoft, FrontPage, ActiveX and visual Studio are both registered emblems or emblems of Microsoft Corp. within the u.s. and/or different international locations.

different product and enterprise names herein can be emblems of their respective house owners.

word to editors: in case you have an interest in viewing additional information on Microsoft, please consult with the Microsoft web page at http://www.microsoft.com/presspass/ on Microsoft’s corporate information pages.


Fundamentals of Networking | killexams.com Real Questions and Pass4sure dumps

publication reviews

Fundamentals of Networking

a fantastic reference to networking applied sciences for the novice.

  • by means of Rick A. Butler
  • 07/01/2002
  • a lot of books accessible are attempting to be the one definitive useful resource for networking. In all fairness to the box, this is just now not viable; however Chris Zacker has performed an honest job of writing a volume that encapsulates a lot of the networking world. when you are starting down the MCSE music and want a broad view of a range of Microsoft applied sciences, you may additionally discover this ebook positive.

    constituents 1 via three cover networking fundamentals, and it does a superb job with the details of different networking applied sciences. The booklet opened with a thorough evaluation of networking and the OSI mannequin.

    My only disappointment involving the first section is the absence of VPN and VPN technologies. VPN is impulsively becoming a first-rate carrier on a very good many networks, yet this ebook under no circumstances touches the field. Such an absence does not befit a "finished reference."

    in part 4, the ebook goes over community working methods. This chapter covers Microsoft material more than Novell and Unix put together (about 90 pages committed to Microsoft, 70 to Novell and Unix). i would like to have viewed more on Unix, which simplest grabbed 20 to 25 pages of the complete ebook. The author focuses on growing area controllers for active directory, but only briefly discusses the different flavors of Unix, and especially the Berkley and DARPA command sets. now not satisfactory stability throughout all alternatives for my taste. Novell was lined in some aspect, but the enterprise that did directory capabilities on a community first is rarely given justice in comparison to what's coated in the chapter on energetic listing.

    This ebook gives a very good starting factor for the newbie Microsoft administrator to take into account advert. The writer logically breaks down the ideas of advert pretty neatly. This chapter could be a fine examine for someone starting to be taught listing functions and warms the reader up for more intensive references on the area.

    materials 5 and 6 talk about community connection services. This became first rate examine. The author does a superb job of explaining DHCP, even taking a while to do some packet evaluation pictures. He also goes into WINS and DNS in element, which is decent for figuring out these vital protocols.

    half 7 appears at administration. again, the Microsoft-centricity of this e-book suggests through. in reality, Chapters 30 and 31 are ordinarily Microsoft's tackle community administration. With the insurance of NetWare and Unix in the previous chapters, there should still had been more about administration in NetWare and Unix environments. The chapter on backup changed into the top-rated area, with insurance of backup ideas, media and recommendations.

    This isn't a volume for the pro knowledgeable. A e-book that covers this a good deal fabric can not give in-depth talents in each area. but when you are new to the business, this reference will train you a whole lot.

    about the writer

    Rick A. Butler, MCSE+I, is the Director of advice features for the united states grasp Gliding association.


    98-366 Networking Fundamentals

    Study Guide Prepared by Killexams.com Microsoft Dumps Experts


    Killexams.com 98-366 Dumps and Real Questions

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    98-366 exam Dumps Source : Networking Fundamentals

    Test Code : 98-366
    Test Name : Networking Fundamentals
    Vendor Name : Microsoft
    Q&A : 270 Real Questions

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    Networking Fundamentals

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    Networking Fundamentals to Know Before Handing Out Your Business Card | killexams.com real questions and Pass4sure dumps

    As a professional, you probably have been to countless events that presented you with the opportunity to network. But, do you really know what the fundamentals of networking are? There is so much that goes into networking before you approach someone to connect with them, whether you are being intentional about meeting someone you’ve been eager to speak with or you are encountering someone for the first time. In preparation for the Entrepreneurs Summit next month in Charlotte, North Carolina, we spoke with Ramon Ray, founder and editor of Smart Hustle magazine about the ins and outs of networking.

    As a serial entrepreneur and branding expert, Ray will be facilitating the Speed Networking session for attendees at the summit who want to sharpen their skills and make authentic connections with other entrepreneurs and small business owners. But, before he heads to Queen City, he wants to help you understand the fundamentals of networking so that you can shy away from common mistakes people often make and take your networking to the next level in a three-part series.

    So, let’s jump right into it. Before you head to the summit or your next networking event, Ray says that you have to be clear about what it is that you want.

    Know your why

    “It’s important to know why you want to network. If you’re just networking to network, you might not get the results you want. You have to network with purpose.”

    In addition to knowing why you are putting yourself out there to connect with people, it is equally as important to set goals.

    Set goals

    Ray says that identifying and knowing your needs can help you set your goals. “That is the best way to set goals because if you are clear on the needs that you have then you can match the goal accordingly. Is your need to have a mentor? That could be one goal you could be networking toward. Is your need to get funding for a business? Is your goal to get more employees? Depending on the need that you have, that is the best way that you can be set up for success,” says Ray.

    He adds, “What I find is that people who don’t know their needs, those are the people who are most disappointed when networking because they are just collecting cards to add someone to a spam email database and that’s not networking, that’s misery.”

    Prepare ahead of time

    Like with anything that you do in life, preparation is key. Before you attend any networking event you should thoroughly prepare ahead of time, which can include but is not limited to researching speakers, practicing your elevator pitch, and knowing what you bring to the table as you seek to connect with others and potentially build with them.

    “Always be prepared. I’ve already been contacted by people within the Black Enterprise community about Charlotte. They’ve hit me up on LinkedIn and Twitter saying, ‘Hey Ramon, I can’t wait to see you!’ That’s amazing!” says Ray.

    Laser your focus

    It is nearly impossible to connect with everyone at large events. And for that reason, Ray says that it is important to have laser focus because time is precious.

    “Let’s say that I’m looking for funding for my business. In the case of the BLACK ENTERPRISE Entrepreneurs Summit, that means that I am going to be looking at who are the speakers, who are the panelists, and who are the people that are going to be there who are funders? I am going to laser my focus, know when they are speaking, learn their interest, follow them on Twitter, and follow them on LinkedIn. And, I’m not saying to connect with them but follow them. You can follow people so that you can be all in their grill,” says Ray.

    That way when it is time to engage with who it is you want to connect with you will know enough about them, which Ray says is, “half of being prepared.”

    Be Intentional

    Networking is equally about the person you are connecting with as much as it is about you and what you hope to gain. Therefore, be intentional.

    “You have to network with a giving heart. You can’t just say, ‘give me your business card.’ That’s not networking. You have to ask yourself, how can I serve this person and advance their goals? When two people are talking they should be thinking about how they can advance one another’s goals,” says Ray.

    So, are you ready to network? If so, join us for the 23rd annual Entrepreneurs Summit presented by Nationwide in Charlotte next month from June 6–9 for speed networking with Ramon Ray and more.

    Get your ticket today and stay tuned for part two of this series on how to avoid making common mistakes when networking.

    Join the Conversation Lydia Blanco

    Lydia T. Blanco is a proud Afro-Latinx digital-first multimedia journalist with a strong passion for truthful storytelling, photography and creative content strategy.


    Crypto Network Fundamentals | killexams.com real questions and Pass4sure dumps

    Crypto networks are my catch-all name for everything surrounding an individual cryptocurrency (i.e. the technology, community, developers, etc.)

    1) Introducing the Crypto Network

    Crypto networks have taken the world by storm. The vast majority of people don’t understand what is happening, and have rushed to describe the phenomenon as a “bubble”. They are partly right; there are some very clear signs of speculative excess in the crypto space. But this is missing the far deeper point. Crypto networks represent a fundamental change in the way society transacts, organizes, and works with each other.

    Many of the largest technology companies in the world over the last ten years have been technology platforms. This type of business model typically involves setting up an online exchange for buyers to interact with sellers. The company then acts as the intermediary, and charges a transaction fee.

    For example:

  • Facebook/Instagram/Twitter: Platforms for users to exchange content amongst each other. Transaction fees come in the form of ads.
  • Uber/Lyft: Platforms for users to buy transportation from amateur drivers. Transaction fees come in the form of a commission.
  • AirBnB: Platform for users to buy hospitality services from other users. Transaction fees come in the form of a commission.
  • This type of business model create huge network effects that protect them from competition. These barriers allow these firms to generate large profit margins, and public markets have responded by valuing them at far higher multiples than other business types:

    However, there is a fundamental problem with the business model. Platform owners are for-profit companies that can only generate revenue by reducing the utility of the platform to its users (in the form of transaction fees). This creates a severe misalignment of incentives between the platform users and platform owners.

    Crypto networks are similar to platform companies. But rather than having a central owner that coordinates activity between users, they are decentralized systems that are coordinated by an underlying blockchain-based crypto asset (i.e. the cryptocurrency). This currency acts as the incentive mechanism to ensure that all stakeholders work towards the success of the network.

    This system has a number of advantages. First, it solves the mis-alignment problem by decentralizing ownership among its users. Second, because users have their net worth (and therefore, to a certain extent, their self-worth) tied up in the network, they often have extreme levels of loyalty to its success. This can lead to rapid viral growth as users evangelize others to join. Lastly, because of their unique structure, new types of decentralized business models we can’t even imagine suddenly become possible.

    2) Crypto Network Economics

    Crypto networks can each be thought of as their own enclosed economy with their own unique incentive systems, governance mechanisms, and monetary policies.

    In a real-world economy, we measure economic activity using gross domestic product (GDP). GDP is the sum total of all goods and services produced in an economy. Using the expenditure approach, it is measured by summing the total amount spent by all ultimate or final consumers of products and services. The higher the expenditure (i.e. transaction) volume, the larger the economy.

    The process of measuring economic activity is similar for a crypto network. The only difference is that all transactions happening in a crypto network are recorded on a transparent, shared public database (i.e. blockchain).

    Transactions are simple to understand — there are buyers provisioning money to sellers in return for a good or service. In traditional economies, the scope of products or service offered is vast. In contrast, the product or service provisioned by crypto networks can be much more narrow in focus, and is highly dependent on the focus of the network.

    For example, in the Golem crypto asset network, participants use the GNT cryptocurrency to buy cloud computation resources from each other. This is in contrast to the bitcoin crypto network, where some of the initial ideas were to have every product and service in society offered/denominated in bitcoin (though the network seems to have narrowed its focus to provisioning a store of value outside of state control).

    3) The Three Core Forces of Crypto Networks

    Economic textbooks teach us that real world economies are driven by three forces: long-term aggregate supply, short-term supply, and short-term aggregate demand.

    This is roughly analogous in crypto networks, which we believe are also driven by three core forces. The three main forces that drive crypto network activity are:

  • Long-term Technology Utility Trend (Years)
  • Intermediate-term Ecosystem Growth (Months)
  • Short-term Market Prices (Days)
  • Each of these forces work in different timeframes and evolve differently as time passes. The technology utility of a crypto network tends to increase in a linear fashion over time, as improving the codebase is a highly manual process typically done by a core team of trusted developers. The ecosystem of a crypto network evolves in an exponential fashion, with a very small initial group of enthusiastic early adopters evangelizing the network to broader society, often in a viral fashion. Finally, market prices fluctuate hour-to-hour based on the emotional sentiment of the investor community.

    These three forces are sketched out below:

    The following sections will analyze each of these core forces in more detail, showing the factors to consider when evaluating the strength of each.

    4) Technological Utility

    In the long-run, the vast majority of all activity on a crypto network is dependent on the underlying technological utility of its protocol. Technological utility represents the different economically valuable activities that users can perform on the network. A crypto network with high technological utility will see increased activity on its network over time relative to a crypto network with low utility. Similarly, a crypto network that can improve its technological utility faster than other networks will also see more activity on its network.

    It is extremely difficult to quantitatively compare technological utility across different crypto networks. Crypto networks are typically open-source software, so one way to gauge utility (albeit crudely) is to measure the amount of development activity on a network’s Github repositories. In this way, crypto networks with more development activity could be used as a rough approximation of technological utility. This is crude as it solely measures development quantity, rather than quality, although it at least does so in an objective and consistent manner.

    The chart below shows the cumulative number of “commits” (i.e submitted changes) to the bitcoin codebase over time:

    As we can see from the chart, technological utility (as measured by commits) has progressed fairly consistently upward over time for bitcoin as developers continually improved the underlying protocol of the network. While this measure is a crude approximation of true technological utility, the principle holds that in a well-functioning crypto network, the underlying protocol will continually improve over time.

    The difficulty of objectively measuring technological utility means that expert subjective assessments of the technology are crucial. This is a highly manual process of diligently reading white papers and testing source code, requiring a deep expertise of cryptography, blockchain engineering, and game theoretic methods.

    When analyzing a crypto network’s technological utility, there are three broad factors that determine its value:

    i) Flexibility — The types of activities that are enabled on the network

    ii) Scalability — The transaction throughput of the network

    iii) Security — The security of the network

    The most valuable protocols are ones that have the most flexibility in the types of activities they support, have the largest scalability, and are the most secure. Of these three features, flexibility is the most important, followed by security and then scalability. There is often a trade-off between these three characteristics. For example, increasing scalability often comes at the expense of security through increased centralization risk.

    The flexibility characteristic is our catchall term for everything that a crypto protocol enables stakeholders to do with the technology. It is vitally important to the network’s success as it determines the scope of different use cases for the underlying currency and the potential audience size. It is also the core factor differentiating the network from competitors. Flexibility is determined by the different types of transactions that are possible on the network.

    For example, the Ethereum crypto network has built a distributed computer called the Ethereum Virtual Machine (EVM) into their underlying blockchain. The EVM makes it possible for users to create their own customized transactions (“smart contracts”) that are self-executed by the network. The applications for this technology are endless, creating an enormous amount of end use cases for the technology and the crypto asset (i.e. ether) behind it.

    Some of the more common features enabled by crypto protocols:

  • Wallets
  • Private transactions
  • Decentralized exchange
  • Side chains
  • Smart contracts
  • Crypto network scalability can be thought of as the potential GDP of the network. We measure economic activity in terms of transaction volume (in both the real-world and crypto network economy), and transaction throughput represents the upper limit on this. It is possible for overall volume to continue increasing after transaction limits have been hit, as average transaction sizes can increase.

    This is not sustainable in the long-term though, as the competition to be included in a block leads to increasing transaction fees. As transaction fees increase, wallets become “stranded” in that the transaction fees are greater than the amount in the wallet. For example, if the minimum transaction fee to send bitcoin gets to 0.1 BTC, then any wallet with less than that amount will be unable to spend, effectively becoming frozen. Extrapolate this trend further, and eventually only a select few are even able to use the currency, decreasing community support.

    Lastly, the security of the network is also extremely important, and is comprised of two main risk factors. The first risk is related to the underlying technology of the crypto network. The consensus mechanism utilized to secure the blockchain must keep the network secure from malicious attacks and prevent transactions from being “double-spent”.

    The second risk is political, and relates to the degree that the network relies on centralization to function. For example, the bitcoin network uses the SHA256 algorithm to secure its proof-of-work (PoW) based blockchain. The problem is that specially designed chips called ASICs can be used to gain a huge computational advantage on other miners, effectively rendering small miners unprofitable. ASICs are expensive, which, when combined with the high electricity costs associated with PoW mining, means that the security of the bitcoin network has become extremely centralized.

    Technological Utility Growth

    There are three factors that determine how fast the technological utility of the network protocol will grow over time:

    i) Governance efficiency — System for development decisions

    ii) Active development team — People that are actively paid to work

    iii) Developer community — The surrounding open source community

    Crypto networks with large, well-funded, high-quality development teams and efficient governance systems will improve their technological utility faster relative to other crypto networks. On average, we believe active development teams are likely to add more value than passive developers as they have direct incentives to work on the protocol.

    Governance efficiency is difficult to quantify. There’s the same balance between decentralization and decision-making speed prevalent in country political systems. Decentralization is a benefit as it prevents the leaders of the network from acting in their own personal best interests over the best interests of the network. On the other hand, too much decentralization can lead to “leaderless” networks with no ability to agree on even simple changes to the protocol.

    Crypto networks that build on-chain governance systems that incentivize stakeholders to quickly come to consensus on network decisions will likely outperform networks that have little formal governance systems. Typically, these types of networks utilize an on-chain voting system (in which the number of votes is equal to the amount of each user’s tokens) to come to consensus on which network upgrades to implement.

    For example, in the Dash crypto network, 10% of miner revenue is allocated to a special fund controlled by master nodes (users that own 1000 DASH and run a special service nodes). The network then utilizes a decentralized governance and budgeting system in which users can submit proposals to help the network, and which the master nodes can then vote on.

    Looking at a screenshot of this system below, we can see that a user named “Hando” submitted a proposal to run a Dash marketing campaign in Estonia. The user requested 21 DASH ($25k) of the monthly budget of 6,651 DASH (~$8 million). As this user brings more users to the Dash network, the value of the DASH currency increases, increasing the monthly budget and allowing for even more marketing campaigns and development proposals to be funded.

    The active development team will be the most important factor driving the technological utility of the platform. Key factors to look at are each team member’s past experience, the size of the team, and the amount of funding they have secured.

    Lastly, the surrounding open source community around a crypto network can dramatically accelerate the technology’s utility as it enables far more human capital to help develop it. Crypto networks that have open source codebases and position themselves ideologically with the OSS ethos will attract more of this human capital, and accelerate faster. This was huge problem for the Ripple crypto network when it first started, as they belatedly made their code open source, attracting widespread developer criticism and leading to a 75% decrease in the price.

    5) Ecosystem Growth

    The economic activity of a crypto network is determined by the size of its underlying community, because at the end of the day, the technology is useless if there is no one using it. The size of the community is what separates crypto networks from each other. Anybody can go clone the source code of bitcoin and launch their own copycat version, but no one will ascribe any value to that crypto asset if there isn’t a community backing it.

    Crypto networks have the same economics as any technology platform, in that the utility of the network grows exponentially as more users join. This is similar to Metcalfe’s law, which states that the value of a communications network is proportional to the square of the number of connected users of the system:

    Source

    Crypto networks function in a similar fashion, because as the user base of a network grows, the number of economic links between users increases exponentially.

    The ecosystem of the network is comprised of four main communities, each of which are incentivized by different factors and add value in unique ways:

    i) User community — Incentivized by utility & ownership stake.Core users generate the bulk of real economic activity and incentivize other communities to join.

    ii) Developer community — Incentivized by utility & reputation. Developers build directly on the underlying technology or additional applications surrounding the network, increasing its technological utility and facilitating broader network adoption.

    iii) Mining community — Incentivized by short-term mining profit. Miners maintain the network’s technology, ensuring security and transaction throughput.

    iv) Investor community — Incentivized by short-term price returns. Investors don’t generate real network economic activity, but do provide liquidity, funding, and incentivize others to join. They can also transition to becoming long-term core users.

    Each of these four communities is crucial to the success of a crypto network. Depending on the degree of centralization and the lifecycle phase the crypto network, some communities may be more important to the success of the network than others.

    For example, in a highly centralized crypto network like Ripple, investor communities are less important to the network’s success. This is because the currency is backed by a well-funded company that is able to support development efforts irrespective of the market price. The opposite would be true for an extremely immature crypto network (such as an ICO), as the size of the investor community determines the amount of funding they receive and the size of their initial user base.

    There are also three sub-communities that aren’t necessarily involved in every crypto network but can play a crucial role and/or provide valuable support functions:

    i) Exchange support — Incentivized by trading volume. Increases network adoption and liquidity for the asset (see price of Bitcoin Cash when it was added to Coinbase).

    ii) Business support — Incentivized by # of users / technological flexibility. Can significantly increase network economic activity and network adoption.

    iii) Regulator support — Incentivized by consumer/investor protection. Potential to impact adoption of network both positively or negatively.

    iv) Venture capital support — Incentivized by short-term profit.

    These sub-communities aren’t necessary, but can accelerate the adoption of a crypto network. For example, a crypto network’s asset price will often increase significantly when it gains entry onto a major exchange, as it opens the asset up to an entirely new pool of investors and users.

    Business support can accelerate adoption as well, as they can drive significant new economic activity onto the network and bring new users. For example, Apple recently approved Dash as an official digital currency, allowing it to be integrated into any iOS application on the Apple Store. This opens the currency up to a number of different use cases, increasing the economic activity of the network.

    Regulator support can cut both ways. On the positive side, regulators can erect regulatory barriers protecting a network from competition. For example, the Chinese government’s hardline stance on ICOs could mean that they will only allow pre-approved projects in the future. This would benefit the Chinese founded NEO network over North American based rivals like Ethereum.

    On the other hand, regulators can erect barriers to adoption and other obstacles if they deem a network to be fraudulent. This could be a significant risk factor in the future for privacy-focused coins, as regulators will have no way of monitoring transactions that take place on them.

    In short, the ecosystem of the crypto network looks like the graph below, with the core technology in the middle, and core communities and sub-communities surrounding it.

    6) Short-Term Market Cycles

    Over the long-term, crypto asset prices should revert to their intrinsic network value. As mentioned earlier, this value is determined by the size of the network ecosystem, which itself is mostly determined by the core technological utility of the network.

    In the short-term, prices of crypto assets fluctuate in a volatile manner. These fluctuations are highly chaotic, and many investors would be better served by simply ignoring these gyrations and focusing on the long-term fundamentals of the network. However, humans trade markets, meaning that prices often reflect certain predictable behavioural patterns.

    Academics have extensively studied these patterns over the years in the traditional financial markets, and there is an abundance of research on return anomalies that can’t be explained by risk. We have found some evidence in our own studies that these patterns also exist in the crypto markets. This is key as we can utilize these patterns to better understand the short-term pricing dynamics of a crypto asset and potentially time them. In particular, there are three patterns to look for:

    i) Post-news announcement drift: Asset returns tend to drift in the direction of news flow (1–30 days). Positive news flow for a crypto asset tends to lead to subsequent outperformance, and vice versa for negative news. This is due to the fact that information tends to diffuse slowly across the market, meaning that it takes time for market participants to price in news. This is particularly prevalent in the crypto space as news sources are highly fragmented, and crypto asset developer teams are not bound by securities laws to disclose material information broadly.

    A great recent example of this is the IOTA crypto network, which announced a partnership with Microsoft on November 28th. The price drifted sideways for a couple of days as the news diffused through the market, before quadrupling in price as hype grew around the partnership.

    ii) Intermediate-term price momentum: Asset returns tend be autocorrelated in the intermediate-term (3–12 months). Crypto assets that have outperformed over the last six months tend to continue outperforming in the future. In traditional financial markets, the momentum anomaly is often ascribed to cognitive biases and the existence of irrational “noise traders” that use price returns as an indicator of fundamental quality.

    In a perfectly efficient stock market and assuming no changes to fundamental value, it would make no sense that the stocks that go up in price the most would continue outperforming in the future. Because if stock price goes up and fundamental value stays flat, then expected returns mathematically have to decline.

    This is not necessarily true with crypto assets, because investors that buy into crypto assets often end up becoming end users themselves. This increases the size of the community and thus increases the crypto network’s fundamental value. Price momentum therefore becomes a self-fulfilling prophecy, as price increases lead to a larger user community, which then justifies the higher valuation. Essentially, crypto asset networks are reflexive.

    iii) Short-term mean reversion: Asset returns tend to be mean reverting in the short-term (1–30 days). Crypto assets that have risen in price the most over the last month tend to underperform other assets the following month. This is especially true when the high short-term returns were due to a liquidity shock event rather than actual news flow.

    Combining these three general patterns implies that investors should buy into long-term upward-trending crypto assets that have recently fallen in price but have just released some positive news.

    7) Conclusion

    Crypto networks are a radically new system for humans to coordinate and create economic value. Because they decentralize ownership to their users, they create incredibly high levels of loyalty among their community. Investors looking to evaluate crypto networks on their investment potential should focus on the technological utility of the protocol, the size and veracity of the surrounding community, and the short-term pricing dynamics of the crypto asset.


    Despite Hitting Monthly Price Lows, Bitcoin Network Fundamentals Keep Growing | killexams.com real questions and Pass4sure dumps

    Monday, May 28: crypto markets are experiencing a significant decline with all top ten cryptocurrencies listed on Coinmarketcap (CMC) in the red. Some altcoins such as Cardano (ADA) and Bitcoin Cash (BCH) are seeing losses up to around 30 percent over the last 7 days.

    Market visualization

    Market visualization from Coin360

    With a decline of around 35 percent over the last 30 days, Bitcoin (BTC) has hit a monthly low of $7,259 at press time. The cryptocurrency continues its downward trend started in early May after the price almost touched the $10,000 mark on May 6.

    Bitcoin price chart

    Bitcoin price chart. Source: Cointelegraph Bitcoin Price Index

    Ethereum (ETH) is down 20 percent over the past week, trading at $536 at press time.

    Ethereum price chart

    Ethereum price chart. Source: Cointelegraph Ethereum Price Index

    Total market cap has lost up to $85 bln over the last 30 days, currently at $313 bln.

    Total market capitalization chart

    Total market capitalization chart. Source: Coinmarketcap

    Of the top 10 coins, Cardano has seen the largest loss over the past 7 days, currently trading at $0.18, according to Coinmarketcap.

    BCH has lost 26 percent over the past week and is down 7 percent in 24 hours to press time, currently trading at $934.

    While the crypto markets overall are seeing a downward trend, some of the fundamental Bitcoin indicators such as the hashrate and the number of the Segregated Witness (SegWit) transactions are growing steadily, indicating the continued development of the network.

    Last recorded on May 27, the current Bitcoin network hashrate is at around 35.75 petahash per second (PH/sec), according to BitInfoCharts data.

    Bitcoin Hashrate historical chart

    Bitcoin Hashrate historical chart. Source: BitInfoCharts

    Ran Neuner, the host of CNBC’s Cryptotrader show, tweeted May 27 that despite the fact that Bitcoin has lost up to 50 percent over 2018 so far, its price is still up 700 percent since January 2017, when the coin was trading at around $1,000.



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