The Disrupt Weekend

“The Ethereum researchers have gone through an epic research and development phase to maximally optimize both its applied cryptography and its internal economics. We call this effort “Ethereum 2.0”. The entire design effort around ETH 2 is to enable Ethereum to create a maximally secure platform with the minimum necessary resource expenditure necessary to maximize longevity and sustainability.

As a result of this, ETH the asset has been optimized for soundness. You can’t maximally protect Ethereum without also maximizing the moneyness of ETH.

Proof of Stake allows for orders of magnitude more security than Proof of Work. Because stakers don’t have large operational costs, PoS engines don’t need to consume as much energy to provide security. Ethereum 2.0 can achieve the same level of security while issuing less ETH to do so. This makes ETH more sound.

In the same vein as PoS, EIP1559 makes ETH more sound by reducing the need to issue ETH to power Ethereum’s economic engine. EIP 1559 captures excess transaction fees and returns the captured value back into ETH. Most importantly, this allows Ethereum to only issue what is necessary to achieve security.

While it’s likely that ETH issuance will still dwarf transaction fee burning at the genesis of EIP 1559 introduction, what about after Proof-of-Stake eliminates the 2 ETH / Block issuance from the PoW ETH 1 chain? What happens when burned transaction fees outpace ETH issuance?

ETH goes from an inflationary asset to a deflationary asset.

If Ethereum truly becomes the value layer of the internet, then the GDP of Ethereum will perpetually march closer to being the same thing as the GDP of the Earth. Ethereum block space will always become more and more in demand, and the ETH furnace will only get hotter and hotter. …and ETH is the fuel that runs that engine.

If Bitcoin is sound money, then Ether is UltraSound money.”

“The content and metadata that an NFT represents are stored separately from the NFT smart contract itself. It’s on you, the NFT buyer, to take steps to protect and store your NFT.

The contract is a different thing than the data. And that means the contract can still exist while the data disappears.

There are several ways a purchased NFT could get lost or changed. For starters, the token with the smart contract might not link directly to the asset. Or the asset could be on a centralized provider such as Cloudinary, which NiftyGateway uses, that could eventually shut down.

While many say Protocol Labs’ InterPlanetary File System (IPFS) is a silver bullet solution to guard against this, Williams said that’s not how IPFS works. The file can still become “unavailable” if the asset is stored on IPFS and the only node storing it is disconnected from the network. ‘When you ‘upload’ to IPFS there is no guarantee that your data is replicated.’

To make the most of IPFS, Filecoin’s Darrow recommends “pinning” data to IPFS. It’s taking that content hash and saying, ‘I’m going to keep storing this file’. Several services do this for you, including Pinata and Infura. CheckMyNFT recommends going a step further and using, which both pins the NFT and stores the data on Arweave, where people can store data for 200 years upfront for around $0.05 per megabyte.

This creates a sustainable system where you can put large amounts of data into a blockchain and have it replicated, basically indefinitely, for thousands and thousands of years at minimum.”

See Also: 5 Legal Considerations When Dealing in NFTs (Recommended read)
See Also: Porn Creators Are Getting In on the NFT Craze
See Also: Lessons From the Nifty Gateway NFT Heist: Not Your Keys, Not Your Art

A radical experiment is being considered in the US state of Nevada. It would allow new local governments to be formed on land owned by tech firms. Jeffrey Berns, the cryptocurrency millionaire who proposed the idea, is convinced of its revolutionary potential.

Unveiled last year, the plan envisions a city of more than 36,000 residents, 15,000 homes, and 11 million sq ft of commercial space. Blockchain estimates that, eventually, the city will generate $4.6bn in output annually.

For this to happen, Mr Berns says a new model of local government is needed in Nevada. This government would have powers to raise taxes, enforce the law, and administer public services such as schools, utilities and transport.

In Mr Berns’s imagined smart city, residents would manage most of their affairs on blockchain applications, eliminating the need for “middlemen” such as banks. In theory, these residents would control their own data, with their devices, with their digital identity. The governor’s bill is expected to be presented to Nevada’s legislature within the next few weeks.

I want to create a place where we can rethink things. Where we can democratise democracy.”

“Pendle aims to leverage on the volatile nature of yield and allow more options to manage yield according to individual risk appetites. Our novel AMM system enables the trading of tokenized future yield. This will allow for a higher level of trading in DeFi, where one party can exchange streams of yield payments for immediate cash while the other can hedge and speculate on pure yield exposure. This is an integral part of any functioning fixed income market and will lead to the creation of a new DeFi building block, allowing the ecosystem to further evolve and flourish.

At the highest level, Pendle incentivizes the pooling of yield-generating assets and the creation of yield markets across DeFi platforms. Holders of yield-generating assets can sell their rights to yield for a fixed period of time, allowing them to lock in their profits and receive upfront cash.

Buyers of these rights gain exposure to the fluctuating rates in a more capital-efficient manner as they do not need to purchase and stake the core underlying asset. As such, there is no need to worry about collateralization or liquidation risk.”

See Also: Introducing Overlay

“Republic Real Estate – which buys distressed condos in the real world, is launching the virtual land fund next week.

Republic has purchased over 30 parcels across four metaverses, and is in talks with a real-world hospitality brand to co-develop a hotel and bar on one of those sites. The goal is to become a well-regarded watering hole, which then draws other retailers and developers to snap up nearby parcels.

Plots sell daily in online worlds such as Decentraland, a virtual place with its own economy, currency and social events calendar, accessible to anyone with a web browser. And values for such assets are multiplying.

Buying land today in virtual worlds may end up feeling a lot like buying land in Manhattan in the 1750s. There is massive growth ahead, and now is the time to get in on the ground floor.”

“For the digital yuan to achieve global adoption, China would thus need to work with trading partners or regional financial hubs to have a platform where the digital yuan is technically, legally and financially interoperable with other countries’ digital currencies.

To that end, China has been quietly testing pilot digital currency trading platforms in different nations as well as setting up a legal framework for CBDCs with global financial regulators. The project will act as a cross-border corridor network for big financial institutions. It would entice more central banks to join the network by offering a more competitive foreign exchange rate than the open market.

Some countries might be reluctant to trade central bank digital currencies on a platform designed by China due to privacy concerns. In contrast to a platform that is controlled by China, a more neutral and inclusive platform by MAS could be more acceptable for many other countries.

The Monetary Authority of Singapore (MAS) has worked with JPMorgan and state-backed conglomerate Tamasek to use CBDCs and other digital currencies, including the tokenized dollar JPM coin, on the Ubin platform.The Ubin project aims to settle inter-bank transactions, cross-border remittances and tokenized securities through distributed ledger technology.”

See Also: Inside China’s Effort to Create a Blockchain It Can Control

“Similar to VPNs, decentralized private networks, or decentralized VPNs, also use encrypted tunnels to route web traffic, but they do this over decentralized rather than centralized networks. DPNs are serverless and distributed, ensuring higher security levels such that user data is not logged, hacked or subpoenaed.

The negation of a central point of control in DPN services means there are no central points to attack; the network cannot be taken down. Users also have control over their data, as no centralized provider has access to the information they are trying to protect.”

No reason was given for the delay, but Bloomberg noted the SEC has been reviewing the exchange’s plan for a direct listing.

Yesterday, it was announced Coinbase will pay $6.5 million in a settlement with the Commodity Futures Trading Commission (CFTC) over allegations the exchange “self-traded” digital assets between 2015 and 2018.”

When it comes to DeFi platforms, the FATF said its standards may not apply to the underlying software or technology, but entities involved with the “DApp,” such as owners or operators may now be considered virtual asset service providers (VASPs) – regulator-speak for crypto entities that must meet the same AML requirements as traditional finance.

It’s a clear shot across the bows of DeFi founders, investors and VC firms.

As well as adding clarity on DeFi, the FATF guidance makes a careful change of terminology, which appears to nod in the direction of NFTs. NFTs that can facilitate money laundering and terrorism financing are “virtual assets” in the eyes of the FATF.”