The Disrupt Weekend

“Later this year, when Ethereum transitions to staking, $26 billion of Ether will immediately be convertible into yield-bearing instruments.

ETH staking is like a bond offering for a new type of digital nation. Staked ETH is like a crypto T-bill.

If bitcoin is digital gold and ETH is digital oil, staked ETH is a digital bond.

[Further], unlike a conventional bond, it has no counterparty risk – there is only protocol risk. Staked ETH gives you yield at the protocol level and not via a counterparty. Staked ETH is therefore an intrinsic yield instrument.

For the first time ever you can compound your ETH holdings organically without assuming any counterparty risk.”

Recommended read.

“Q2 saw an explosion of new entrants along with major protocol upgrades. While DeFi’s favorite liquidity protocol – Uniswap – launched V2 in May, we also saw new additions to the field including Balancer, Ren, Gnosis, and Loopring. As such, we’re beginning to see an increasingly diverse ecosystem for DeFi protocols as they begin to compete for a slice of the market share.

On average, DeFi assets in Q2 increased by 199%, substantially outperforming both ETH and BTC which increased by 70% and 43%, respectively.

The combination of a decrease in earnings along with a surge in asset prices has generally led to an increase in PE ratios for DeFi tokens across the board.

The DEX sector in Q2 experienced new records in terms of volumes. Uniswap dominated the market as the untokenized liquidity protocol was just shy from reaching $1B in Q2 volume. The next two players, Curve and dYdX, also saw substantial volumes.”

See Also: The Life of a Protocol Politician

How to Maximize DeFi Lending Interest with Yield Bouncers

See Also: Overview of DeFi Yield Farming (Video)

“Polymarket is an information markets platform, where speculators bet on the world’s most highly-debated topics—producing actionable insight on the matters most important to society, and helping people plan better plan for their future.

Built on Ethereum and using USDC as the underlying currency, in this article we’ll walk you through how you can start using Polymarket to profit from accurately predicting DeFi trends.

Polymarket makes some interesting tradeoffs. It uses Ethereum’s financial infrastructure but keeps its oracle—the thing settling bets—centralized. For Polymarket it’s more about building a UX good enough to for mainstream than about maximal decentralization.”

See Also: How to Trade BTC Perpetual on dYdX
See Also: Polymarket

“Polkadot uses bridge parachains that can connect to external blockchains. Ethereum could connect to the Polkadot ecosystem via a bridge parachain so that DApp developers could interact with any other Polkadot parachain. Interoperable platforms like Polkadot could be key enablers of Ethereum’s future development.

We knew that bridging with the Ethereum ecosystem to help extend capabilities on either side would be one of the key points of the network.

It will be intriguing to see how the two platforms play together once the full Ethereum 2.0 implementation is completed. If all goes well, each platform can complement the strengths of the other to create a connected blockchain network greater than the sum of its parts.”

AA on the Coming Blockchain ‘Infrastructure Inversion’

18 July

“Beijing has released a 145-page plan to become a blockchain hub by 2022.

Beijing will build a system for digital governance, create avenues for data-sharing between agencies and businesses, and enable cross-regional collaboration. All of these will be carried on a national blockchain platform.

Twelve use cases have been identified in the plan. They range from implementing blockchain applications at airports, to customs, to finance platforms for small businesses, and to general municipal and governmental services for the citizens.

Ports and customs will see data shared via the central ledger—eliminating the long wait times associated with current digital and paper-based alternatives. Solutions for enterprise banking and billing will provide identity authentication and reimbursement tracking respectively.

Under the plans, small and medium businesses will enjoy improved capital access for their entities while lenders manage risk via the ledger.”

“The Bank of Thailand (BOT) has confirmed the bank is already using a CBDC for transactions with some businesses.

The central bank plans to expand the use of the digital currency among large businesses. Transactions with the Hong Kong Monetary Authority will be conducted with the CBDC from September.

Access to the general public, complete with a state-backed wallet provider, is currently under consideration.”

See Also: The Bahamas Edges Closer to Hurricane-Proof Digital Currency
See Also: Top Spanish Banks Finalize Trial of Payments Using Smart Contracts

“Ethereum 2.0 developers have stated there’s almost nothing left to do before launching the ethereum 2.0 full testnet, a key milestone and the final stage prior to the live launch of the genesis block.

I expect we announce a date Monday/Tuesday.”

“Under the new law, the Hong Kong government will be able to freeze and confiscate assets from people or organizations that are suspected of being involved in national security crimes.

Data suggests people in Hong Kong are increasingly using stablecoins as a way of keeping their assets independent of a banking system that is subject to government control.

Many people don’t believe they can trust the government or banks to keep their assets safe anymore.”

“Although DeFi is still in its infancy, it ‘could leapfrog the current FinTech industry, providing a new structure of financial services‘ in the years to come.

In their view, DeFi will become a trillion dollar industry and ‘provide income for thousands of gamers, streamers, and influencers.’ It will also be adopted by European financial institutions who will switch to offering ‘DeFi-enabled savings and pension accounts.’

As more traditional financial institutions are exposed to the benefits of DeFi and its complexity there will be a greater need for professional services firms to cater to and audit these activities.”

See Also: Aave’s LEND Token Is Now Up 1,600% in 2020
See Also: Investors Are Dumping Compound Token as Soon as It Gets Listed
See Also: In an Ethereum-based ‘Initial DEX Offering,’ open doesn’t always mean fair

“We have added the following assets to binary options, allowing traders to take positions on yes/no outcomes on their prices: COMP, LEND, KNC, and REN. Please note that these assets are not available as Synths.”

See Also: Toronto Options Exchange Picks BNC to Power Crypto Markets

DOT spot trading against Tether’s USDT stablecoin on OKEx started at 8:00 AM UTC today.

DOT deposits and withdrawals aren’t supported yet, and the tokens can currently only be obtained by claiming them on the mainnet from Ethereum’s blockchain.”

“British artist Terry Flaxton, a cinematic artist who has been producing work since 1970, has debuted his first tokenized work on blockchain today via digital platform MakersPlace.

Flaxton has held more than 200 exhibitions around the world for his artwork, with pieces of his currently on display in Berlin’s Museum of Modern Art, London’s The Lux Centre, and many other collections.

With blockchain, artists can for the first time, digitally sign and issue limited editions of their artworks to be owned by a collector.”

See Also: Under Every Desert a Sea

“The pair are calling on developers to compete in their July 31 “GameJam” hackathon that aims to build Web 3.0 novelties for the state-run lottery.

Winners could ultimately see their finished projects premiere in Colorado bars and restaurants. Colorado is betting this jam will yield novel lottery products with broad gamer appeal.

17 July

Good read.

“Perhaps most damning, leaked screenshots revealed more information about Twitter’s secretive abilities to control accounts and narratives on the site. The leaked internal dashboards (evidence of which Twitter is aggressively deleting from the site) contain keywords like “trends blacklist” and “search blacklist,” seemingly an admission that Twitter does exercise some editorial judgment when it comes to which concepts receive algorithmic boosting and which don’t.

The hack plainly illuminates issues that cryptocurrency and Web 3.0 enthusiasts have been raising for years. “Trusted third parties are security holes” isn’t just a slogan; it’s a concept that millions of people will have intuitively grasped for the first time yesterday. The sheer centralization at play evidenced by the godmode key is striking.

One wonders why it’s even possible in the first place for Twitter employees to commandeer any account on the platform. Everyone knows that Twitter is the political discussion platform of choice for world leaders. Had the attacker been more inclined towards chaos rather than entrepreneurship, they could have used their access to contrive an international incident among hostile nations.

Additionally, the accidental reveal of Twitter’s long-rumored deboosting tools will intensify the view among critics that Twitter is a partisan, editorializing service rather than the neutral one it claims to be. As many have pointed out, it invites governments to pressure or infiltrate the platform to obtain efficient tools to control speech.

A user-owned and operated social internet built on a public key infrastructure is an absolute necessity, if we are to resist tyrants both in the public and the private sector.”

“The social media platform confirmed that hackers responsible for the massive breach of high-profile figures’ accounts had conducted a ‘coordinated social engineering attack to gain access to internal systems and tools.

We know they used this access to take control of many highly-visible (including verified) accounts and Tweet on their behalf. We’re looking into what other malicious activity they may have conducted or information they may have accessed.

Employee admin panels targeted in the hack have significant access to a variety of tools to control the affected accounts, including posting messages on their behalf and changing the verification phone number and email address.

Sounds bad that a Twitter developer can just login to my account and tweet anything, read my private stuff and all.”

See Also: Chainalysis and CipherTrace Confirm FBI Investigation
See Also: Coinbase, Binance, BitGo May Know Hackers ID
See Also: Hidden Messages Found in Transactions to Twitter Hack Bitcoin Address

“The pandemic forced Congress to look at new technology for money in a sweeping way.

We have seen almost a 180 in that conversation. The pandemic has forced congress to go digital.

There is now consensus among policymakers that it is a good idea to upgrade our money, and that is progress.”

One big factor was MakerDAO shifting the stability fee (SF) down to 0% following the mid-March crypto crash. The Dai Savings Rate (DSR), which was previously as high as 8%, also fell to zero as Maker battled to keep its dollar peg at the right place.

The move saw earnings for Maker fall from over $1.2 million in the first quarter down to around $150k for the second. Kyber was the highest earner for the period with $634,000 generated over the three months, while Compound came in a close second with just under $625,000.”

“Despite seeing very little controversy, the community is still debating on the proper procedure on how to implement it more than six months after the BIPs were published.

The issues stem from the necessity of conducting a soft fork that would be accepted by all relevant stakeholders. According to a Reddit thread pinned in the r/Bitcoin community, ‘the biggest problem with activating Taproot is PTSD from the previous softfork, SegWit.’

Despite the relatively uncontroversial and limited set of features, Taproot may take months — if not years — to be activated. The maximum length for this procedure would be 42 months, or three years and a half.”

“The United States Food and Drug Administration released a blueprint and pilot study for food safety.

The technologies mentioned include artificial intelligence, the Internet of Things, sensor technologies and blockchain, and are looked at in relation to four topics: tech-enabled traceability, prevention and outbreak response, retail modernization and food safety culture.

“This integration aims to provide a solution for Stellar end-users to store private keys on selected Galaxy smartphones.

Developers from the Stellar ecosystem will be able to create blockchain-related apps and services for Samsung Galaxy smartphone owners.”

16 July

Hackers pumping a crypto giveaway scam appear to have compromised the Twitter accounts of leading exchanges, individuals and at least one news organization.

The unknown attackers tweeted identical messages promising that they were “giving back 5000 BTC ($45,889,950) to the community” on Wednesday afternoon from the accounts of Gemini, Binance, KuCoin, Coinbase, Litecoin’s Charlie Lee, Tron’s Justin Sun, Bitcoin, Bitfinex, Ripple, Cash App, Elon Musk, Uber, Apple, Kanye West, Jeff Bezos, Michael Bloomberg, Warren Buffett, Barack Obama and CoinDesk.

At least some of the compromised accounts have multi-factor authentication enabled. The address linked to the scam appears to have received more than 11.3 BTC, or roughly $103,960.

Shares of Twitter fell as much as 3% in after-hours trading.”

See Also: Everything We Know About the Bitcoin Scam Rocking Twitter’s Most Prominent Accounts
See Also: Obama, Biden, Netanyahu, Musk: Here’s a List of Every Hacked Twitter Account
See Also: Twitter Breach Reactions: Security Professionals Offer an Early Assessment

Ethereum 2.0 client Prysm is “basically ready” to launch. Lighthouse is halfway through an independent audit as well.

Prysm client’s code was ‘well-written and documented.’ The firm identified 65 issues relating to the granularity of timestamps, pseudo-random number generation and second pre-image attacks on Merkle trees.

Ma described the concerns as “low-level optimizations,” with 75% having been addressed already. Ten engineers combed over Prysm’s ETH 2.0 codebase, programmed in the Go language, for two months.

However, where money is on the line, audits alone don’t greenlight code for launch. Eth 2.0 clients have joined various testnets to run simulations of Phase 0 throughout the spring months.”

“During rigorous stress testing, the Matic Network CS-2008 testnet was able to reliably handle a performance level of 7,200 TPS! This level of performance can be reliably extrapolated to the Matic mainnet.

During stress testing, 122 validators were active and running validator+sentry nodes. Thus, the network was truly decentralized, ensuring reliable results.

We will continue to optimize the network for even greater performance. Regardless, the current performance capabilities of the network as it stands means that Matic can be instrumental in helping the Ethereum ecosystem to overcome its performance constraints and reach its full potential.”

“Non fungible tokens (NFT) representing diamonds have made their way to the OpenSea marketplace.

Before they are tokenized, all diamonds are certified by the Gemological Institute of America (GIA) and are then sent to the Gem Certification & Assurance Lab (GCal) , which audits the GIA certificate and provides a guarantee.

The problem that Icecap solves is that it is currently almost impossible for retail investors to sell diamonds without a steep discount as there is no secondary market. According to Voorhees, this is an untapped $10 billion opportunity.”

“SEBA said it is the first digital bank to offer clients the ability to issue and invest in blockchain tokens that represent real tradable assets like treasury bonds or foreign exchange contracts on the open-source blockchain platform Corda.

SEBA said in its statement that it will create a custodial wallet for customers, issue digital securities and distribute them to investor networks.”

“The New York-based fund provider reported two consecutive record quarters Wednesday, with more than $400 million increase in capital inflows quarter-on-quarter. Overall, Grayscale raised $1.4 billion in the first half of this year.

The vast majority of commits (85%) came from institutional investors in H1 2020; Grayscale said most have started diversifying away from just bitcoin.”

“China wants to trial its digital yuan using online food seller Meituan-Dianping, as well as another two Tencent-backed companies.

Listed in Hong Kong, Meituan-Dianping’s 400 million active users make it one of the largest food delivery platforms in the world. Tencent, which also owns popular messaging and payments app WeChat, is set to be one of the primary commercial issuers for the digital yuan when it goes live.”

See Also: Japan Is Seriously Considering a Digital Yen
See Also: Former Chinese Official Says CBDC Will Pave Way for Digital Stocks

“A former Coinbase user who last August received the now-infamous Internal Revenue Service (IRS) crypto letter is suing to block the tax agency from unlawfully seizing private financial records.

Harper’s case is an opportunity to put some checks on the power of the administrative state.

If they acquired it via the Coinbase summons – and we don’t know that for sure – it was a defective process that denied me the opportunity to contest the seizure of my data.

I’ll be seeking destruction of the records in the IRS’s control. A win would allow all recipients of the letter to seek the same.”

Brave users can now use the Gemini cryptocurrency exchange to buy, sell and store crypto within their browsers.

The Gemini Trading Widget is now live in Brave’s Nightly version, the testing and development version of Brave, and will go live in Brave’s general release in the next few weeks.

Brave-verified content creators can now also custody their digital assets in a Gemini Creator Wallet.”

15 July

“Speaking during an online event, Bank of England Governor Andrew Bailey told a group of U.K. students on Monday the bank is debating such a move.

Calling it a “very big issue,” he anticipated a CBDC could be a real possibility in several years.

“PayPal has confirmed that it is developing capabilities in the cryptocurrency space, according to a letter to the European Commission.

Since the [Libra] project’s inception, PayPal has taken unilateral and tangible steps to further develop its capabilities in this area, and therefore — without questioning the value of the project — took the decision not to participate in the Libra Association and to continue to focus on advancing our existing mission and business priorities to democratize access to financial service.”

“Powered by Swipe, the card allows users to spend crypto – currently bitcoin, Binance coin, Swipe coin and Binance USD – at any merchant that supports Visa payments.

Many existing crypto cards are prepaid and require users to top-up before using; Binance card is connected directly to a user’s wallet and works like a traditional debit card. The card only converts crypto into the local fiat currency at the point of sale.

Users in the European Economic Area (EEA) will be able to apply for a card from August while those in the U.K. will be able to do so afterwards.”

Brock Pierce Attempts to Avoid Prosecution with US Presidential Candidacy

The storage will be offered on Kingdom Trust’s Choice retirement account, a hybrid self-service retirement platform where investors can buy, sell or hold stocks, exchange-traded funds (ETFs) and digital assets in one tax-advantaged account.

We think this is meaningful for a lot of people that already have Fidelity retirement accounts but have really been waiting for Fidelity Digital Assets’ mandate to mature from just an institutional one to institutional and retail.”

“Letter 6173 was the most aggressive variant in a trio of soft letter types the IRS sent to more than 10,000 suspected crypto holders in the summer of 2019.

The virtual currency letter smashed through two tenets of the Taxpayer Bill of Rights – the right to privacy and the right to be informed – when it ordered taxpayers who were not under audit to submit examination-esque information to the IRS.

Among Letter 6173’s demands: the taxpayer’s entire crypto trading history; a “statement of facts”; an explanation of how they got their crypto books clean; and copies of tax documents from 2013 through 2017, even though the statute of limitations caps the number of reviewable years at three.

Collins requested the IRS remove the examination-like demands from Letter 6173 and a second unrelated soft letter on the grounds they violated compliant taxpayers’ right to privacy and right to be informed. The IRS refused.

It could potentially lead to litigation from taxpayers.”

See Also: Even the IRS Admits Some Crypto Tax Regulations Are ‘Not Ideal’

Erik Vorhees on the Global Debt Crisis

14 July

“On July 11, officials revealed that the G20 will be laying the groundwork to accept digital payments. The changes are expected to begin in October, presumably at the G20 Finance Ministerial and Deputies Meetings in Washington DC and before the next summit in Riyadh in November.

G20 officials enacted the policy change in response to China’s progress on creating a digital yuan, and Facebook’s anticipated release of Libra.”

“Project Ubin, a blockchain-based multi-currency payments network created by the Monetary Authority of Singapore (MAS), JP Morgan, and state-investor Temasek, is ready for a commercial roll-out following the successful implementation of its prototype.

According to the press release, possible commercial use-cases include cross-border payments using multiple currencies, settlement of foreign currency securities, and foreign currency exchange.

An international settlement network, modeled after this payments network prototype, could enable faster and cheaper transactions than conventional cross-border payments channels.”

“The DTCC sits at the heart of US capital markets [and] processes nearly $2 quadrillion worth of transactions per year. The corporation’s goal is to strengthen post-trade processes, provide efficient infrastructure, and support economies of scale, all while maintaining security.

The platform, which uses Ethereum as its core technology, embraces a new approach to the representation of value in capital markets and signals an era of increased efficiency for financial services.

The Whitney Platform is a blockchain-based prototype that mints tokens and records asset transfers on the public Ethereum network, while maintaining an independent digital record of security ownership off-chain.”

“According to the SEC’s release, Abra effectively offered “security-based swaps” to retail investors without the proper registration, in addition to ‘failing to transact those swaps on a registered national exchange.’

In soliciting and accepting orders for these contracts, the respondents illegally operated as an unregistered futures commission merchant.”

“Open to all DOT holders, there are four options on the table: no change or redenomination based on increasing supply by 10x, 100x, or 1,000x. If any of the redenomination proposals passes, the DOT price, according to CoinGecko, could well move from its present $152 to $15, $1.52, or $0.15, respectively.

A 10 million supply was originally agreed for the 2017 initial coin offering but Web3 Foundation said in a tweet thread Monday that a billion token supply would now be more ‘logical.’

“The DeFi ecosystem needs a decentralized mechanism for self-regulation.

Tokens could apply for badges having some desirable qualities such as being ERC 20, being a stablecoin, etc.

Based on these badges, different agents could make decisions to accept the tokens into different places. For example, with what conditions should comply a token to qualify as an acceptable collateral in Compound?”

“ReGenesis would bring stateless client research to the current Ethereum chain (also known as Eth 1.x) by “nuking” certain node’s states and swapping them with a math proof on a rolling basis. The purpose? Make Ethereum’s data set scalable with minimal sacrifices to security.

Akhunov’s proposal works like a video-game checkpoint. Every time the Ethereum blockchain hits a certain block number, the network would auto save. Then it would delete all its progress minus a “proof” or “witness” of all the past transactions.

I call this ‘relaunch’ ReGenesis, and it can be done regularly to ease the burden on the non-mining nodes. It also represents a less dramatic version of Stateless Ethereum.”

“On July 6, the price of LINK surpassed its previous record high at $5.31 and officially entered a price discovery phase, which typically leads to a “fear of missing out” rally among investors.

Throughout 2020, Chainlink has secured several high-profile partnerships with companies within the cryptocurrency sector. On July 8, Chainlink partnered with Nexo, a crypto lender with reportedly 800,000 users, to deploy its oracle solutions.”

See Also: Twelve-Fold Gains for Aave’s LEND Token Might Be More Than DeFi Hype
See Also: Compound Tops $1B in Crypto Loans as DeFi Farmers Keep Digging for Yield

“Fidelity International has doubled its equity investment in bitcoin mining company Hut 8, bringing its total stake to over 10%.

Hut 8’s share price spiraled since listing on the Toronto Stock Exchange, falling from $3.35 in April 2018 to a low of $0.50 in March 2020. Hut 8 closed a C$8.3 million funding round (US$6.1 million) on June 23.”

See Also: Inside the Craze for Filecoin Crypto Mining in China

11 July

“At the Unitize conference, Vitalik Buterin provided an up-to-date picture on the latest progress for the stateless client transition.

Stateless clients rely on cryptographic techniques to only compute state changes and verify them without having to hold the state itself in memory. But the cryptography involved is still imperfect.

Merkle proofs are easy to partially update due to their tree-like structure, but Polynomial Commitments require a complete change of the entire curve, which would make calculating witnesses expensive.

There are a variety of potential solutions to this problem, involving for example a hybrid model of “Verkle trees,” which combines polynomial commitments into a tree-like structure.

Currently, Ethereum’s transactional capacity is being purposefully capped due to concerns of making the blockchain too heavy for average devices. For the average user, this means that gas prices are likely to remain high for the foreseeable future, unless layer two solutions pick up the slack.”

“Bitcoin’s one-month correlation to the S&P reached a multi-year high of 0.79 on Wednesday. The closer a correlation coefficient is to 1.0, the more likely two things are to move in the same direction.

Bitcoin has historically exhibited little to no correlation to traditional asset classes. But more consistent correlations are likely as the cryptocurrency space matures.”

“Tether (USDT) has blacklisted 39 Ethereum addresses worth $46 million in USDT. This revelation comes on the back of Centre’s first blacklisting of an Ethereum address holding $100,000 USDC.

Tether addresses that receive a blacklisting function are no longer able to transact with Tether, freezing any existing coins held in the address.

Tether routinely assists law enforcement in their investigations.

Kyber KNC Staking Tutorial

“In order to support Lightning transactions, the developers actually wrote an entirely new implementation of the Lightning protocol ‘from scratch’.

[We] decided to adopt Lightning because we see it as the way forward for Bitcoin. Lightning is quite complicated and not without its issues but ultimately it is the most promising currently known way of scaling Bitcoin.”

See Also: Bitcoin App Bottlepay Is Back From the Dead With a New Lightning App

The Macro Picture (Good Watch)

“Now here’s a clever way of funding your artwork. The QR code allows anyone who scans it to donate Bitcoin directly to Boyart without any sort of intermediary.

And it’s working. Boyart tweeted today that he has thus far received 0.0514 BTC since first revealing the artwork five days ago, or just less than $500 to date.

Furthermore, Boyart has tokenized his own artwork as non-fungible tokens (NFTs), selling several pieces—some with added animation—split into collectible fragments via OpenSea.”

“Chris Larsen, paid over $4 million to install 1,000 high-definition cameras on the streets of San Francisco. He claims his goal is to combat crime, specifically theft. Ripple’s executive chairman stated that he sees this as an alternative urban security system.

Larsen – who recently recovered from COVID-19 – decided to take up this project after a group of unknown men climbed into his garden in 2011 and cut the wires to his home security.”

10 July

“One of the world’s largest cryptocurrency exchanges is said to be preparing to list on the U.S. stock market sometime in early 2021.

Sources said Coinbase had already begun the process for a listing; it isn’t clear on which exchange venue this would take place. Rather than an initial public offering, it’s said the firm would prefer to go down the route of a direct listing on an exchange.

Should it be approved, Coinbase would be the first crypto exchange to go public in the U.S.”

“The London Stock Exchange Group (LSEG) added 169 digital assets to its SEDOL Masterfile service, a global database that assigns unique identifiers to financial instruments.

The assignees included digital currencies (such as bitcoin), “digital platforms” that allow issuance of multiple assets (such as Ethereum) and security tokens. The seven-digit alphanumeric codes help LSEG’s customers keep track of traded assets from execution to settlement.

The addition of bitcoin and its ilk to the database, in response to customer demand, is a sign that institutional investors are slowly embracing the asset class.

Naturally with the gradual institutionalisation of digital assets, a number of our clients were starting to invest in that space, so we felt it was an appropriate time to add these to SEDOL.”

See Also: ING Joins Crypto Industry Body Working to Set Codes of Conduct


“The CENTRE Consortium blacklisted a USDC address in response to a law enforcement request, freezing $100,000 worth of the stablecoin. The incident underscores the limits of decentralization when regulated businesses interact with permissionless networks.

Centre can confirm it blacklisted an address in response to a request from law enforcement. While we cannot comment on the specifics of law enforcement requests, Centre complies with binding court orders that have appropriate jurisdiction over the organization.”

Bitfinex will have to face allegations from New York State that it hid millions in lost funds. New York prosecutors alleged in April 2019 that Bitfinex lost $850 million in client and corporate funds, and then used money from affiliated stablecoin Tether to cover the loss.

In its decision, the appeals court rejected the argument that tether was neither a commodity nor a security, and affirmed the stablecoin falls under the court’s jurisdiction.

We will respect the court’s order. We have no further comment on this matter at this time.”

ETH TA: Testing Longterm Trends

“The PieDAO platform, a decentralized application built atop the Ethereum blockchain, produces its own incarnation of digital tokens called “pies.” They work like tokenized investment funds whose value is linked to a basket of other digital tokens, which in turn are sourced from a decentralized liquidity pool.

In April the project rolled out its first pie, called BTC++, which is backed by tokenized versions of bitcoin. And stakeholders in the project have since pushed out a second pie called USD++, backed by U.S. dollar-linked stablecoins.

Instead of ‘trusting’ a single authority like an asset manager, you are trusting the wisdom of the crowd with these decentralized autonomous organizations. Is it proven? No. Is it interesting and can potentially be disruptive? Yes.”

“Orchid said users of its app would be able to make in-app purchases to get VPN bandwidth. The in-app purchases would essentially work like gift cards for the OXT token, Orchid’s cryptocurrency used for transactions on its network.

Orchid uses the Ethereum blockchain to enable users to buy and sell VPN bandwidth using its OXT token.”

“‘Braver’, designed as an adware-free fork of the Brave Browser, has allegedly been forced to rebrand due to legal threats. Braver rebranded itself to ‘Bold Browser’ earlier today citing legal threats from a ‘certain party.’

We plan to make Bold a Chromium-based browser that contains the features that people expect from privacy-respecting ad-blocking browsers, with next generation integrations (such as web3 and ipfs), without any advertising programs or token reward schemes.”

9 July

“DiDi, the Chinese equivalent of Uber, has entered into a strategic partnership with PBoC in an effort to accelerate the application of the CBDC, or DCEP.

While the details of the rollout are not yet clear, the pilot plan could see one of the first real applications of China’s digital Yuan initiative as Didi touts a reach of over 500 million users in China.”

See Also: China has more than 45,000 Registered Blockchain Companies

“A subsidiary of India’s industrial giant Tata, the second-largest company in India, has launched a way for banks and financial institutions to offer crypto trading services to their clientele.

Tata Consultancy’s head of Quartz, said in a statement that cryptocurrencies are rapidly becoming a viable investment vehicle and that the new product allows banks to quickly capitalize on the new trend.

The launch of Quartz is a strong signal that future regulation is likely to be supportive, not punitive.”

“The CFTC has made comprehensive crypto regulation a strategic objective to accomplish over the next few years, referring to digital assets as ‘21st century commodities.’

The new framework puts out goals for the next four years, up until 2024, which is when current Chairman Heath Tarbert’s term is scheduled to end. The broad strategy includes heavily pro-innovation language.

We will develop a holistic framework to promote responsible innovation in digital assets.”

See Also: CFTC Is Waiting on SEC to Allow Futures Trading of More Digital Assets, Says CFTC Chairman
See Also: Coinbase Exec Says Capital Will Flee US Due to Crypto Tax Laws

“The relay network alerts users to incoming blockchain transactions quicker than the typical network can by cutting a high-speed path through the chain’s peer-to-peer (P2P) architecture.

OpenWeaver hopes to strengthen the decentralization of the Ethereum network by providing another rail for crypto transactions to be processed. Relayers could provide a way for dapps to cover a user’s gas tab on the front end. Relays can also work as an emergency backup in case of political crackdowns on node operators.”

See Also: Matic Network Launches an Initiatives Program for Mainnet Adoption

Catalyst allows institutional investors to create and trade securitized versions of sophisticated strategies without trading or holding the digital assets themselves. The underlying assets are custodied by Copper.

Each security is an actively managed certificate (AMC), a highly flexible instrument akin to an exchange-traded fund that can be set up and issued in weeks. They will be tradable on regulated European stock exchanges and subject to existing securities regulation.”

See Also: Monex Becomes First Japanese Securities Firm to List Cryptocurrency CFD

“Rather than spawning a Bitcoin Utopia, so far the cryptocurrency trend has further aligned Brazil with the U.S. dollar. Crypto fans are looking for value outside the ailing Brazilian currency system because the Brazilian real hit a record low against the dollar in May 2020.

We have a trend of dollarization, so of course having stablecoin access is interesting for … access to smart contracts for more stable savings.

From the user’s perspective there’s very little reason to have a real-pegged stablecoin.”

“Libra’s original vision in 2019 had been to release one multi-currency stablecoin backed by a basket of up to 30 fiat currencies. This was hit with resistance from government officials who were concerned about a private entity challenging their monetary sovereignty.

We’ve not abandoned the multi-currency stablecoin, drawing its DNA from the [International Monetary Fund’s] special drawing fund, which remains an important design feature.

He added that Libra was also exploring ways it could make its governance structure closer to a public-private partnership with national governments.

A legally binding contract grants the rights to the film to the holder of the ERC-721 token in which the hash and metadata of the artwork is stored. This means that if, for instance, the Museum of Modern Art wanted to purchase the piece, it would first need to acquire an Ethereum wallet.

Additional tokens have been minted and distributed between the contributors to the film. If somebody buys the piece, the proceeds will be split based on the percentage holdings of these additional tokens.

For any further sales, 10% of the sale price will go directly back to the original artists.”

See Also: Tech Mahindra Employs IBM Blockchain in New Platform to Combat Digital Piracy

8 July

Q2 was another dominant quarter for Ethereum, recording big increases in users and daily transactions both sequentially and compared to competing protocols.

Active dapp users on Ethereum grew from around 637,000 in Q1 to more than 1.25 million in Q2. Ethereum saw 45 new dapps launched in the second quarter. Fewer dapps being released points to more work being performed on existing applications.”

See Also: Ethereum, Bitcoin Locked in DeFi Hits All-time High of $2 billion
See Also: Nearly $60M in Bitcoin Moved to Ethereum in June

“The Aave lending protocol recently launched a new feature called Credit Delegation. This feature allows users to provide peer-to-peer loans with no formal collateral requirements.

The two parties must enter into a formal legal agreement that would define terms such as repayment schedule, interest and other necessary conditions. Through an integration with OpenLaw, a project to create legal contracts recorded on a blockchain, these terms can be formalized on-chain.

The uncollateralized loan model could help bring DeFi into the mainstream as it makes loans more flexible. The initial purpose of the system is to ‘simplify the matching for Credit Delegators with borrowers that are both either institutions or businesses.'”

See Also: 3 Big Blockchain Companies Teamed Up on a DeFi Product That Pays Passive Income

“As the U.S. moves to pass legislation that threatens to weaken end-to-end encryption, Unstoppable Domains is planning to give users full control over their chat data with a new decentralized protocol.

Dchat would enable users to encrypt and store messages “directly,” unlike apps like Tinder or Facebook where a user’s messages can be read by third parties.

MyEtherWallet and imToken are already planning to launch their own apps using the Dchat protocol, which is expected to go live in the coming weeks.”

“We are excited to announce that we have successfully launched our Katalyst Protocol Upgrade and KyberDAO on mainnet! Katalyst is an important technical upgrade meant to meet the liquidity needs of the fast-evolving space.

KNC holders can [also] stake their tokens on the KyberDAO and govern the protocol by voting on important proposals and parameters, while earning rewards (in ETH) for their efforts. Any KNC holder can contribute to Kyber’s development by participating in the KyberDAO.

You need to vote or delegate your vote to someone else in order to receive rewards. Through, you always have full control and ownership over your KNC staked, and you can withdraw it anytime.”

See Also: Gelato Gives Developers a New ‘Money Lego’ Tool for DeFi Applications
See Also: Twitter Users Can Now Send Crypto to Each Other With Torus

“The Financial Action Task Force (FATF), whose advice is heeded by more than 200 countries, will meet in October to discuss ways to create a stronger global framework for the regulation of cryptocurrencies.

The organization will work to develop an international framework for authorities to coordinate and share information about virtual asset service providers (VASPs). The framework would help regulators get up to the same speed worldwide.”

See Also: SEC Votes on Expedited Review Process — Shorter Wait Times for ETFs?
See Also: Crypto Tracer Chainalysis Raises $13M as It ‘Doubles Down’ on Government Ties
See Also: FATF Under Germany: Expand Digital AML/CTF Efforts

“China’s push to roll out a digital version of its yuan isn’t likely to end the U.S. dollar’s century-long reign as the dominant currency for international payments and central bank reserves. But it could make a dent.

That’s the conclusion of foreign-exchange analysts at Bank of America, who argue a Chinese digital currency might be welcomed by regional trading partners as payments become increasingly electronic.”

“Swipe users can purchase cryptocurrencies from within the app and the debit cards automatically convert stored cryptocurrency into fiat currency, using the Visa payment network.

Swipe is already available in 31 countries, mostly in the European Union, and currently supports transactions in major fiat currencies, including the U.S. dollar, euros and pound sterling.”

“Hoskinson recently said that he would not mind working with Litecoin founder, Charlie Lee, to test cross chain communication.

It would be great to do something together.”

“The new designation will allow the industrial area to create a high value biomaterials market through the industrialization of medical hemp.

The blockchain-based platform will provide production line tracking solutions, classifying the products by categories of quality, origin, and final destination.

This special regulatory zone has a special meaning different from that of the existing special zone in that it seeks a rational industrialization plan for narcotic drugs.”

See Also: Major Indian Farmer Producer Organization to Use Blockchain for Supply Chains

“The much-delayed blockchain role-playing game Neon District will be launching on Ethereum layer-two scaling solution Matic. Matic claims that its infrastructure can support 10,000–15,000 transactions per second, and one to two second block times.

Neon District was previously slated for release on the Loom network, before the Loom project announced it had ‘pivoted from blockchain games to enterprise’ and went AWOL.”

See Also: Dev Outlines Three Requirements for Decentralizing Gaming

“Crypto asset Dogecoin (DOGE) has leaped 18% in 24 hours and almost 20% over the past week. The price action is happening against the backdrop of a viral TikTok challenge that encourages users to pump the coin.

Let’s all get rich! Dogecoin is practically worthless. There are 800 million TikTok users. Invest just $25. Once the stock hits $1, you’ll have 10 grand [$10,000]. Tell everyone you know.”