After using xLog to write a blog, naturally you will have some curiosity about blockchain. The most obvious question is what tokens are needed to publish articles? Therefore, as a blockchain novice, I tried to break down the question into several steps and deepen my understanding through practical operations.
- What is the difference between virtual currency and cryptocurrency?
- How to buy cryptocurrency in China?
- How is cryptocurrency exchanged?
- Can $CSB be recharged?
Difference between Virtual Currency and Cryptocurrency#
I always thought that virtual currency and cryptocurrency were different names for the same thing. However, that is not the case.
Virtual currency is a digital currency issued and managed by a central institution or platform, such as Alipay and WeChat Pay.
Cryptocurrency is a type of digital asset that uses encryption technology to secure transactions and is not subject to central institution intervention, such as Bitcoin.
The difference between virtual currency and cryptocurrency is that virtual currency is issued and managed by a central institution, while cryptocurrency is issued and managed through decentralized technology.
Virtual currency can only be used on specific platforms or systems, while cryptocurrency can be traded and used in a wider market.
Actually, I still don't quite understand, but at least I understand that I need to buy a decentralized cryptocurrency instead of virtual currency.
How to Buy Cryptocurrency in China#
Since I have decided to buy cryptocurrency, is there a platform that allows me to use Alipay or WeChat Pay in China, where it is not allowed?
After searching and comparing, I chose to use Binance. Although the installation requires various verifications, such as mobile app, Google Authenticator, and personal identity verification, the operation is in Chinese and supports WeChat Pay and Alipay. The authentication process is a bit troublesome, but it becomes smooth sailing afterwards.
Which cryptocurrency should I buy?
For beginners, I recommend USDT (Tether), which is a cryptocurrency that is pegged to the US dollar at a 1:1 ratio. It is issued by Tether Limited and aims to provide stability in the cryptocurrency market, maintaining a fixed ratio with the US dollar.
The purchase process is relatively smooth.
Some things to note when using Binance:
- VPN needs to be set to global mode. Some countries' IPs are not supported, so please switch nodes.
- There is a minimum requirement for buying and selling. For example, for USDT, the minimum is 10 coins.
- Both buying and selling require double verification, email verification, and Google Authenticator.
How Cryptocurrency is Exchanged#
What is the purpose of buying this USDT?
Because I saw the MIRA exchange tutorial in the xLog backend. My preliminary understanding is that I can convert platform rewards or MIRA received from others into USDC through this website, recharge it to Binance, sell it, and convert it into Chinese yuan.
But what I need now is to transfer USDT to MIRA and then exchange it for CSB, the token used on the xLog website.
- Little Fox (Metamask) browser extension, which is like a digital wallet, similar to Alipay or WeChat Pay. It allows you to manage and use cryptocurrencies in a web browser.
- Crossbell and Polygon, they are both extensions of Ethereum. Ethereum is the second largest cryptocurrency network, with Bitcoin being the first.
- Different networks are like different companies. If you want to transfer money from WeChat to Alipay, imagine how you would do it. You need a bank as an intermediary, which incurs fees.
- GAS is fuel. Each transaction requires fuel as a fee to be paid to miners.
This is what I did:
Withdraw USDT from Binance to the Polygon network, and then transfer the USDT to MATIC on the same network. How to understand this? It's like transferring money from one bank card in Construction Bank to another bank card in Industrial and Commercial Bank of China (ICBC) through Alipay.
This step went smoothly. Little Fox received the USDT withdrawn from Binance and then exchanged it to MATIC using the built-in SWAP function of Little Fox. This step may encounter an error because MATIC requires a certain amount of initial funds for fees.
How to understand this? It's like sending a package from USDT to MATIC. Normally, as the sender, I should pay for it. But now the logic is that the recipient needs to pay for the shipping fee, which means there must be a cash on delivery.
But what if the recipient doesn't have money? It will remind you that the gas fee is insufficient and the transaction cannot be completed.
Alipay doesn't care, so we go to the local bank of Polygon and tell them that both of my cards are from your bank, so please help me transfer money from Card A to Card B within your bank. This process does not incur any fees.
There is actually such a service Polygon Bridge: Bridge Assets from Ethereum to Polygon zkEVM. I want to recharge 1 MATIC from the USDT card, which is a free exchange, but at least 1 MATIC is required. In other words, your USDT card must have at least 0.7 coins to transfer.
It went smoothly. At this point, I have money in both the USDT and MATIC cards of this bank in Polygon, so I can perform operations such as transferring cryptocurrencies using Little Fox.
Why do I have to deposit money into MATIC? Actually, I mixed up MATIC and MIRA. MATIC is a cryptocurrency on the Polygon network, while MIRA is a cryptocurrency on the Crossbell network.
My goal is to deposit money into MIRA and then transfer it to CSB. Fortunately, although MIRA is not listed, it can still be circulated and exchanged.
I can exchange MATIC for MIRA through the Uniswap Interface.
Actually, Uniswap can directly exchange USDT for MIRA. This was a mistake I made, but it was a lesson learned.
The last step is to exchange $MIRA for CSB through $MIRA. This is where things get tricky, so pay attention.
The xLog official exchange tutorial states that MIRA rewards can be transferred to the Polygon network. I am now doing the reverse operation, trying to exchange MIRA for CSB. From this official exchange website, my preliminary understanding is that if it can be transferred out, it should be able to be transferred in.
In fact, it can be transferred in, but it is still MIRA. Why is that? What is the meaning of this transfer? My preliminary understanding is that it's like receiving a red envelope on WeChat and opening it yourself. The balance remains the same after going around, but these incoming and outgoing records are recorded.
But the logic of this MIRA transfer is a bit puzzling. After exchanging MIRA on Uniswap, it still needs to be transferred from the Polygon network to the Crossbell network? I haven't tested what would happen if I don't do this step, but I guess that if I don't do this step, maybe I don't really own MIRA.
After completing this step, I have reached the lowest level of cryptocurrency circulation. There is no way forward unless I go back.
The attempt to exchange MIRA for CSB failed. This path is not feasible.
Can $CSB be Recharged?#
The conclusion is that CSB, which is used on the xLog blog, cannot be recharged or exchanged with other cryptocurrencies, not even MIRA on the same Crossbell network.
It's like Crossbell is a university, MIRA is the tuition fee, and CSB is the points earned by students through scholarships or academic achievements. Tuition fees cannot be exchanged for points, and points cannot be used as tuition fees. They are not interchangeable.
Points can only be used for operations such as publishing articles, modifying articles, and updating configurations. They do not have channels for exchange, recharge, or circulation. The only way to obtain points is through the faucet. When CSB is below 0.02, you can go there to receive "relief funds" for free.
Therefore, in order to circulate, exchange, or withdraw CSB on xLog, MIRA cryptocurrency is used, while CSB is only used as an interactive token for operations. They are two different systems with different functions.
So for those who are curious like me, I hope this explanation clarifies things. Apart from receiving the minimum "relief funds" from the faucet, there is no other way to increase CSB.
If your CSB is below 0.02 and the faucet is not working, so you cannot receive the minimum interactive token, theoretically, you will not be able to publish articles on xLog. Of course, this situation is highly unlikely, but you should know that it is a possibility.
The official explanation states that in the future, it is likely that other cryptocurrencies will be supported, such as using MIRA to pay for gas fees. So there is no need to worry too much.
As for withdrawing the MIRA rewards from the platform, you can reverse the process.
Transfer MIRA out, exchange it for stablecoins through Uniswap, recharge it back to Binance, and finally sell it for cash.
For blockchain novices, understanding to this extent is sufficient. After all, we are using xLog to write articles, not researching cryptocurrencies on this platform.