The Disrupt Weekend

The Norwegian Government has announced the development of BRØK, a cap tables platform for unlisted companies on the public Ethereum network. With BRØK, you can easily share and update your company’s shareholder information using blockchain technology, making the process faster, more efficient, and more secure.

This platform, which is natively on the Arbitrum layer 2 scaling solution, will use the ERC1400 standard to represent shares and the Ceramic network to comply with the EU’s privacy regulation GDPR.

Currently, around 380,000 private companies in Norway maintain their own registers of shareholders, known as a cap table. This information is considered public and must be made available to anyone who requests it. But BRØK isn’t just about sharing information — it’s also about establishing a single, trusted source of truth that different systems can rely on.

This is a significant step forward for public Ethereum, and we can’t wait to see what the future holds for this innovative technology.”

“Polygon takes zero-knowledge rollups to the final testnet to gauge the performance of its zkEVM ahead of eventual mainnet integration.

According to Schwartz, Polygon zkEVM includes the first complete source code available EVM-equivalent zkProver, which passes all Ethereum vector tests at over 99%. He described the completion of validity proofs for conventional user transactions as “the most challenging and rewarding effort” since his team began developing its native zkEVM.

The development of the technology, called Polygon zkEVM (Ethereum Virtual Machine), has been ongoing for over three years by the Polygon Hermez team. The team has already confirmed that zero-knowledge proofs are possible on Ethereum by generating over 12,000 zk-Proofs in a primary version of the zkEVM testnet.

Two years ago, the Polygon team estimated that developing zk-Rollups with EVM compatibility would take up to ten years. Given the strides made, the team describes zkEVM as the end game, combining advances with layer-2 scalability and fast finality. This offers a myriad of benefits to users when adding greater throughput and lower fees.

Finally, we have zkEVMs, such as Polygon zkEVM, that offer all the above in addition to the equivalence to Ethereum Virtual Machine.”

“Blockchain developers increasingly recognize that human error is an inevitability, meaning it will be difficult to push crypto into the mainstream without fail-safes and better ease of use. One of those innovations is a concept called “Account Abstraction.”

Account Abstraction (AA) aims to use smart contracts to execute crypto transactions, by creating certain validity rules. With AA, users won’t need to sign off on every transaction with one’s private keys. Ultimately, through AA, developers want to make Ethereum as usable as a traditional fiat bank account, so users can make transactions more easily, program automatic bill payments and more.

Humans are the biggest security flaw in Ethereum account management.

According to a Chainalysis report, up to 23% of all bitcoins in circulation (or around 3.79 million BTC) could be lost forever because of forgotten keys. Account Abstraction addresses the shortcomings of EOAs by merging them with CAs – allowing people to create user accounts with built-in fail-safe mechanisms and other special features for verifying transactions.

Under account abstraction, user accounts could be programmed to include social recovery systems where several people – each with a key of their own – have the ability to return an account to its owner should the owner lose access to the private key. One could also create “multisig wallets” that hand account ownership over to a group – requiring multiple different parties to sign off on transactions as a sort of extra layer of security.

Accounts under AA could also avoid some of the other hard-coded limitations of EOAs. They could, for instance, define how users pay gas fees. Currently, under EOAs on Ethereum, users have to pay gas in ether (ETH). But with AA one can choose to use a different cryptocurrency to pay gas with (like DOGE), or you can assign someone else (like a parent or friend) to pay gas fees.

Some layer 2s on Ethereum are leading the way to natively integrate AA. StarkWare, the company behind the StarkNet blockchain, is already live with Account Abstraction. Eli Ben-Sasson, the co-founder and president of StarkWare, told CoinDesk that Account Abstraction could be used in the future to ‘use your facial recognition or biometrics to basically authorize [crypto] payments. The infrastructure for doing this is now possible.’

Last month, Visa also announced its proposal to eventually use Account Abstraction to deploy automatic payments with StarkNet infrastructure.

Slowly, interest in AA is increasing as more and more developers and users become aware of the potential.”

The addition of NFT trading for a platform like Instagram makes sense considering its huge global audience. The feature exposes users to Web3 concepts, many for the first time, in a way that doesn’t add friction to Instagram’s core business model. Users on Instagram also pay for NFTs in fiat currency, eliminating an otherwise challenging on-ramp for Web3 newcomers.

But attracting a Web3-native audience poses more challenges. Would seasoned NFT collectors be interested in purchasing assets sold on a highly centralized, Web2 platform? In addition, Instagram in-app purchases are subject to steep fees between 15% to 30% from Apple and Google, resulting in a smaller profit for sellers.

Despite this, early NFT sales on the platform have been a success, with collections selling out quickly. Instagram’s strategy of recruiting well-known NFT artists to tout the new feature has worked in two ways – it enticed NFT collectors and helped to bridge the gap between Web2 and Web3 users.

The platform’s partnership with well-known NFT artists has helped instill confidence across communities. Drifter Shoots (aka Isaac Wright), Refik Anadol, Amber Vittoria, Dave Krugman and Micah Johnson have each launched NFTs through Instagram over the past few months, selling out each time. Other popular NFT artists, such as Maliha Abidi and Bobby Hundreds, have used the platform to show off their NFT creations, praising the feature as an accessible way to reach prospective buyers.

Digital collectibles make a lot of sense when you consider where many of us do our social signaling.”

Copyright is obsolete, we just can’t admit it yet. It lasted almost 500 years and did a lot of good, but we don’t need it anymore. Why? Because NFTs have introduced a new way of compensating authors that is far more efficient.

Copyright was always a kludge, making works of authorship artificially scarce in order to indirectly subsidize their creation, publication, and distribution. It was a reasonable compromise when publishing and distributing works was costly. But now it’s free, and copyright is just a transaction cost on consumption. Sure, copyright still encourages authors to create works, but not very efficiently or effectively. We can do better, and the NFT market is proof.

Copyright gives authors certain exclusive rights to make and distribute copies of their works, in order to encourage the creation and distribution of those works. At least in theory, copyright is supposed to benefit the public — all of those consumers hungry for content — by encouraging authors to create new works and encouraging publishers to distribute them. Without copyright, works of authorship would be “public goods,” available for anyone to use however they like.

Yes, copyright makes content more expensive. But that’s ok, because it also encourages authors and publishers to create and distribute more of the works we love to consume. It’s a bargain, if the value of those works exceeds the cost of copyright. But the bargain starts to look like a swindle, when copyright expands, even as the cost of producing and distributing works decreases.

The NFT market proves that authors don’t need copyright to make money. For better or worse, we live in a clout economy. Value depends on fame and influence. Once upon a time, it was expensive to distribute ideas. Now it’s free. When technological changes make information free, markets need to change as well. Copyright was a great policy tool in a world beset by scarcity. But it sucks, in a world of abundance.

For the first time, NFTs promise authors and other creators access to capital markets.”

“One of the guiding principles that we have built on here at EY is the idea that blockchains will do for business ecosystems what ERP did inside the enterprise.

Enterprise transactions have been slow to take off because of the lack of privacy tools, which are essential. As that problem gets solved, we can start to think about how firms can interact with each other. The story of 2023 will, I hope, be about how useful applications start to emerge for connecting enterprises with each other, under privacy and on the public Ethereum ecosystem.

The likely order of development will be a risk-averse path. Companies are going to start with things like inventory management. The next step after tracking assets is the addition of shared business logic.

Eventually, of course, we’ll get back to where we started: money. It’s most efficient and useful to close the contract out by making payment with a stablecoin. Companies will also be able to do things like factor invoices and borrow against inventory value. But those financialization components are likely to be down the road and will be the last components of the system implemented by risk-averse enterprises.”

Applications will be available later in 2023 allowing virtual banks to act as financial services providers. The move focuses on increasing competition and boosting Thailand’s economic growth.

Regulations and supervision for virtual banks will be the same as those for traditional commercial banks under the licensing framework. There are at least 10 parties interested in granting permissions, the report states.”

Unlocking a door Using ‘Sign in with Ethereum’ (SIWE)