Reddit Partners with Ethereum Foundation to Create Scaling Solutions on Its Social App

Reddit Partners with Ethereum Foundation to Create Scaling Solutions on Its Social App

  • Reddit partners with the Ethereum Foundation to scale its “Community Points Rewards” system.
  • The points system rewards quality user posts with crypto tokens.
  • The new system will be open source and available for every developer to use.

In mid-June 2020, Reddit announced a possible partnership with the Ethereum Foundation to scale its ‘Community Points Rewards’ system. The move was widely regarded as the first step the popular discussion social app was taking in creating a decentralized community to promote freedom and incentivize “quality” posts on the platform. Now, Reddit is formalizing its steps to decentralization with an official partnership with Ethereum’s lead development team, the Ethereum Foundation, announced on Wednesday.

Reddit’s “first-ever blockchain partnership” aims to boost community participation through blockchain, accelerate scaling and development tools for Ethereum’s ecosystem and bring value and decentralization to its millions of customers globally, the post reads.

The two companies worked together on the Scaling Bake Off competition in August 2020 to promote decentralization on Reddit. A total of 22 projects submitted their detailed scaling solutions pitches, including Matic Network, NEAR Protocol, and SKALE Network.

The new partnership will focus on scaling the Community Rewards Points system for a start, the post reads. The point’s system will reward users with crypto bonuses for “quality posts” and comments. The developments will be led by the Reddit development team, with help from the Ethereum Foundation, but the system will be available for anyone to use. The Reddit post reads,

“We intend to help accelerate the progress being made on scaling and develop the technology needed to launch large-scale applications like Community Points on Ethereum.”

“The scaling technology developed through this partnership will be open-sourced and publicly available for anyone to use.”

The Community Points Rewards system is currently in the beta testing phase on the Rinkeby Network and tested in two communities on Reddit – r/CryptoCurrency and r/FortNiteBR. Each of these discussion groups has over 1 million users, and plans are underway to scale the rewards to every 430 million users on the social platform.

The report further states the rewards system aims to “utilize decentralized technology to empower individuals to have a sense of accountability and more ownership in the communities they create and contribute to.”

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Author: Lujan Odera

MoonBeam Network Aims to Bring Ethereum Developers to Polkadot by Recreating EVM

The MoonBeam Project is making some interesting plans. The project aims to create a custom parachain, one emulating the Ethereum Virtual Machine environment. Should they pull it off, they’d effectively recreate Ethereum (ETH) within the Polkadot blockchain (DOT).

MoonBeam Aiming For Ethereum Emulator

Polkadot developers, and most other interoperability projects, typically need to develop an entirely new blockchain in order to host their respective decentralized apps. The Substrate framework of Polkadot, however, is aiming to simplify the process, seeing as not all DApps need such a monumental level of control over the environment.

MoonBeam stands as the project for Polkadot aiming to become an Ethereum emulator, operating within the same virtual environment powering all the smart contracts within the Ethereum blockchain.

Strong Governance And Cheap Fees

The MoonBeam team further highlighted that developers of Ethereum DApps only need to make minimal code changes in order to maintain the use of developer tools, such as Metamask and Truffle. As this is happening, Polkadot integration would mean easier interoperability for the entirety of the Polkadot ecosystem. This is due to other modules of Substrate still being available, which would allow the implementation of social recovery for wallets, on-chain governance, and other features to be available by developers in ready-made code.

The MoonBeam team claims that it will stand as a more affordable smart contract platform, one with a strong on-chain governance system. This sentiment is often emphasized by the co-founders of Polkadot, with them believing that this stands as a necessity for blockchain systems.

The idea is that MoonBeam will be interoperable with both Bitcoin and Ethereum, and will be thanks to dedicated bridges that other teams have already built.

ETH Seeing Newfound Competition

Even so, the competition within the DApp scalability arena is a fierce one indeed. Multiple layer-one chains actively compute with the layer-two solutions that are already native with Ethereum. Ethereum’s dominance in the smart contract space is largely thanks to the booming DeFi market within the network, but the blockchain has its limitations, as seen in 2020’s Summer.

With a new demand established, many players are aiming to capitalize on it, such as MoonBeam and Polkadot, thus providing an alternative platform for users to leverage. Other big names in this growing new niche are as follows: Binance Smart Chain, Solana, Cosmos, and the Near Protocol.

As it stands now, Moonbeam has yet to determine a concrete launch date, since it depends on the Parachain auctions of Polkadot going live. The general consensus is this will happen around the first quarter of 2021, but nothing can be stated as a hard fact.

It won’t be long before Ethereum will need to compete against other big names for supremacy within the smart contract arena. Ethereum will be the top player for some time, but historically, technology groups such as this need to upgrade itself constantly, lest it fall on the wayside faster than anyone could predict.

With any luck, an increase in competition will ultimately benefit the consumer of these projects. Ethereum suffered from a massive influx of traffic driving the gas fees through the roof, so a bit of a load off its system wouldn’t be the end of the world.

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Author: Ali Raza

Kraken Gets Approval in Wyoming to Become America’s First Crypto Bank

Cryptocurrency exchange Kraken has obtained approval from the crypto-friendly State of Wyoming to create the world’s first Special Purpose Depository Institution (SPDI), tentatively called Kraken Financial.

The idea to become the bridge between the crypto economy and the existing financial ecosystem first came into existence in 2016 through the Delaware Blockchain Initiative, shared Marco Santori, Chief Legal Officer Kraken. Caitlin Long, founder, and CEO of Avanti tweeted,

“What a win-win for crypto & Wyoming! As of **NOW** Kraken has a US bank charter—a 100% reserves-required, audit required (w/ ProofOfReserves), custody via legal bailment, no rehypothecation type of bank!”

Source: @MSantoriESQHeadquartered in Cheyenne, Wyoming, Kraken Financial is the first digital asset company in the US to receive a bank charter. It will be able to provide deposit-taking, custody, and fiduciary services for digital assets. David Kinitsky, CEO of Kraken Financial said,

“Wyoming is a rare and shining example of how thoughtful regulation can drive innovation for FinTech companies.”

As a bank, by Wyoming law, Kraken Finance is required to maintain 100% of reserves of its deposits of fiat currency at all times and will have to meet every withdrawal demand of its client no matter the loans outstanding.

This development means Kraken’s reliance on third party financial institutions will be reduced, and they will be able to “launch a new wave of innovative products for our users.”

The exchange will start with the US first and then expand globally, which means for now only it will only offer accounts to US residents. Users can start with USD deposits and withdrawals and digital assets custody.

Over the next few years, the company plans to expand its services to digital asset staking, trust account, online and mobile banking, a debit card, and Proof of funds attestations, among other things. Kraken said in its official announcement,

“We expect to be able to offer additional retail, wealth management and treasury services (and potentially other asset classes such as securities).”

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Author: AnTy

KIMCHI is the Latest Hot Dish in DeFi with Over 30,000% APY

Sushi was yesterday; KIMCHI is now!

Uniswap’s clone SushiSwap has been forked to create KIMCHI.

Within four hours of its launch, the unaudited project saw half a billion dollars locked in KIMCHI, which claims to “become the next hot DeFi mining token.”

“KIMCHI is lit,” according to the pro yield farmer Arthur Hayes, co-founder, and CEO of crypto derivatives exchange BitMEX. “It’s a staple of the CHAD diet. Get on my level,” he added.

Launched today, KIMCHI token’s price jumped to $12.26 level and is now back at $4.27, as per CoinGecko. The token is expected to be listed on Gate.io soon.

When it was launched, the project offered APY in six digits percentage but has now come down 8.3x. Uniswap KIMCHI/ETH APY that started with 178,573% has now fallen to 21,500%.

Still, the APY offered on different swaps is between 1,800% to 31,000%.

Currency, it’s offering farming on ETH, USDT, SUSHI, TEND, and other Uniswap assets to earn above-mentioned interest rates for providing liquidity on the platform.

KIMCHI is a fork of automated money maker Sushi, which is a copycat of Uniswap but with a governance token, and Yuno, but apparently “unlike YUNO, in Kimchi, it is not exploitable because owner is set to a non-functional timelock contract.”

SushiSwap issues its SUSHI tokens to those providing liquidity to the platform and gives a cut of its trading fees to those who have locked their tokens in a smart contract.

But the latest farming token clearly states on its website, “SUSHI is way better with KIMCHI” and “TEND with KIMCHI is also fucking yammy.”

Sushi was the one that pushed Uniswap’s volume to surpass that of Coinbase Pro and its liquidity to go beyond $1 billion. This project locked in over a billion dollars in less than four days of its launch.

But according to KIMCHI, it is them that are writing a “new history in DeFi Crypto field. We’ve just entered new era.”

KIMCHI’s market cap has reached over $45 million since becoming available today. The DeFi sector meanwhile has total value locked (TVL) at a whopping $9.5 billion.

It goes without saying that these DeFi projects are extremely risky where people are acting first before thinking. Degens are yield farming the latest for a few days before jumping on the next hot thing, which like the 2017 ICO mania are popping in every other day.

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Author: AnTy

Filecoin to Begins its Incentivized Testnet This Week Ahead of Project Launch Next Month

Crypto project Filecoin which proposes to create a peer-to-peer storage system, will begin its incentivized testnet this week. This testnet will allow users to earn Filecoin by testing the scalability and robustness of the network.

The project is also expected to go live next month, Colin Evran, Filecoin’s ecosystem lead told Bloomberg.

Lately, it has been gaining a lot of interest from Chinese speculators, with the majority of its miners on the testnet also being Chinese miners.

The idea here is to build a decentralized version of the internet where no single authority, like the tech giants, Google and Amazon, have full control.

Created by Protocol Labs and raising $200 million in 2017, Filecoin is aiming to solve this issue through its distributed storage system, making it impervious to attacks on the internet. The added advantage of a P2P storage system is the lack of a central point of failure.

“It’s one of the missing pieces of the Web 3 ecosystem,” said Evran. “Anyone can become a data-storage provider, not just the big companies that do that now.”

The company has partnered with ConsenSys Labs to encourage the development of Filecoin and its Interplanetary File System, or IPFS, protocol. With this partnership, the firm will be distributing $1.6 million in grants to developer teams.

Just last week, ConsenSys introduced the Filecoin launchpad accelerator, which is powered by Tachyon. This cohort will focus on “startups building more open, interoperable, and programmable tools, infrastructure, and applications for the distributed web through IPFS and Filecoin.”

Once the project is released publicly in September, users who want to store their data on the decentralized system will have to buy that capacity using its cryptocurrency. The users who will provide the data storage will earn the cryptocurrency for their contribution as well.

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Author: AnTy

Chainlink Collabs With Colorado State Lottery to Create Innovative Web3 Games

Chainlink has partnered with the State of Colorado for a hackathon to create a new lottery game. The new hackathon will involve $17,500 in prizes to three winners as well as $8,500 in Web3 bonus prizes, which will be sponsored by Chainlink.

The Colorado Lottery has designed a GameJam Hackathon, which will be open to individuals from across the globe.

According to the State of Colorado, the new innovative games will aim at collecting around $1 billion in revenue which will be used for land conservation, outdoor fund recreation as well as improving the state schools. The state lottery will also aim at enhancing responsible gaming.

Excited by such similar successful projects in other states like Wyoming, Jared Polis, the Colorado governor, stated that he is committed to ensuring that the Colorado government becomes an example to other states when it comes to technology space.

Polis explained that the Colorado government is committed to serving its populace through innovative technology better. He explained:

“Last year, we launched Colorado Digital Services to begin developing critical public-private technology relationships to position our state government as a tech leader, but more importantly, to better serve our population through technology.”

Sergey Nazarov, Chainlink’s co-founder, stated that his firm was excited to partner with such lotteries. He also added that he desires to see the blockchain technology move beyond the traditional token sphere.

Nazarov also expressed his gratitude for working with Colorado Lottery in helping developers to come up with non-fraud gaming apps. He added:

“I think this shows that smart contracts, blockchains, and oracles can be successfully composed to go beyond tokens and on-chain financial products (DeFi), into the many markets that need truly tamper-proof and highly reliable digital agreements.”

According to a press release, the opening ceremony is set for the evening of July 31. Some of the keynote speakers will be Vitalik Buterin and Governor Polis.

The press statement claims that the new lottery becomes the ‘first-ever public-private partnership and hackathon.’

Keep it here for more updates on how the lottery will use the blockchain technology going forward.

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Author: Joseph Kibe

Abra to Venture Into Global Financial Services Powered by Stellar’s Blockchain

Abra, a popular crypto-fiat wallet along with an exchange application, is planning to create a decentralized global banking solution built on top of Stellar blockchain. The move could be inspired by Stellar’s $5 million investment in Abra earlier this year.

Bill Barhydt, CEO of Abra during the SDF’s digital second quarter review meeting on July 15, talked about the company’s roadmap and emphasized particularly on “interest-earning capability,” which will be one of the most sought after features in coming days. Barhydt while talking about the upcoming services and features and the interest-earning services commented:

“This allows consumers, for example, people who aren’t even familiar with cryptocurrency, to store dollars and earn significant interest on those dollars.”

During the meeting, Barhydt also said that the interest-earning features would also be made available for cryptocurrencies along with the staking services.

How Does Abra Work?

Abra being a crypto/fiat wallet exchange app and now collaborating with banks, exchanges, and other financial entities and acts as a liquidity provider through its platform. Recently it has shifted its focus towards retail players to offer its application and expand its reach.

Elaborating on his plans for introducing interest-earning, Barhydt explained that they would partner with large institutional players who would work in tandem with its backend infrastructure to offer “a very sophisticated lending system.” Talking about their plans and how Abra aims to create the global banking solution, Barhydt said:

“For us to take this to another level, Abra is building an entirely new part of our business to facilitate the movement of funds globally, in real-time, using the Stellar network. What this will enable for us in all forms of global lending.”

He also explained that the success of defi in the past couple of years made him believe that the crypto market is more than ready to accept crypto lending and interest-earning potential that these digital assets posses. He explained:

“We want to take this to another level, and use the Stellar platform to enable traditional banking applications at a global scale truly.”

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Author: Silvia A

Department of Homeland Security Seeks Blockchain Start-Ups to Mitigate Real Life Challenges

  • The U.S. Department of Homeland Security has called on Blockchain start-ups yet again to create real-life solutions that could solve problems they face.
  • Through their tech scouting wing, the Silicon Valley Innovation Program (SVIP), they have issued a set of potential use cases they would like solutions for.

Among the array of use cases, the SVIP has included traceability of supply chains revolving on the e-commerce, food and natural gas industry, essential personnel license compelled by Covid-19 travel restrictions, and a potential stand into their Social Security Number system.

SVIP’s technical director, Anil John, highlighted this during a virtual day event on Tuesday, insisting that they were seeking solutions to solve local shortcomings.

In a previous similar Blockchain start-up, the initiative by the DHS and SVIP, where they dangled an $800k grant incentive for start-ups with solutions whose purview could help supplement their anti-counterfeiting and anti-forgery measures. The U.S. Customs and Border Protection (CBP), U.S. Citizenship and Immigration Services (USCIS), and Transportation Security Administration (TSA) were all set to gain from the initiative.

Uses Cases That Blockchain May Optimize:

Social Security Number Alternative

Even though the SVIP often been commissioned with finding mitigations to unique problems facing the DHS on numerous occasions. They have called on the Blockchain start-ups to generate a unique identifier system to serve as an option to their SSN program for the DHS privacy office.

Senior director for Privacy Policy and Oversight at DHS, David Linder, has clarified that the system wouldn’t be a replacement to SSN rather a unique identifier that could be shared while averting the risk of revealing personal information.

Essential Personnel Verification

There has also been mention of a digital essential person verification system for U.S. Citizen Immigration Services. To lessen the spread of the Covid-19 virus, travel restrictions in the U.S. were imposed.

To curb the spread of Covid-19 in the U.S., they want to make verification for essential staff easier as core government functions have to carry on. Citing a border control analogy, John illustrated how such a system would come in handy in attestation of essential staff seeking to move across the border to and from Canada.

They have, however, confirmed that this would not be a version of the Covid-19 immunity certificate with John unsatisfied with the logic and science behind the issuance of immunity passports and certificates.

Streamline Supply Chain Traceability

Pitches for Supply chain tracing solutions are also welcome with a keen focus on e-commerce, food, and natural gas sectors.

Director of CBP’s business transformation division, Vincent Annunziato, disclosed that his agency is seeking to do away with paper-based systems in favor of a fully digitized system that has been greenlighted by auditors. He cited Walmart’s leafy greens and FDA’s projects that are all leveraging Blockchain Tech.

Blockchain Interoperability

The SVIP top brass, John, deems the exchange of information across the various Blockchain crucial. He has reiterated on the importance of operating standards that will allow the platforms to overlap hence facilitating information sharing across the Blockchains.

There will be accepting solutions from across the globe and not limit their search to local talents.

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Author: Lujan Odera

Ontology Integrates Chainlink’s Decentralized Oracles To Boost DApp Development

Ontology blockchain is the latest project to integrate Chainlink’s decentralized oracles to create a credible data management system.

According to a release post on Medium Ontology blockchain, which allows cross-chain transactions, launched its integration with Chainlink. The integration is expected to enable the ONT to developers to leverage off-chain data on their decentralized applications (dApps) in real-time.

The integration with Ontology is expected to create a new data management base for the platform by integrating the “ONT ID, Ontology’s digital identity framework, and the ONTO wallet” into the dApps. To make the integration compatible, the Ontology dev team had to switch the Chainlink smart contract to its native code, Python programming language.

Blockchain is usually independent, working on data on the chain at a specific time. Hence the need for off-chain ramps such as Chainlink. The co-founder of Ontology, Andy Ji, believes the integration of Chainlink is set to enhance the scalability and robustness of its platform. He further said,

“Ontology’s high-efficiency and low transaction fees, combined with Chainlink’s adept ability to provide secure and reliable oracles consistently is a potent combination that will drive mutually beneficial outcomes for our respective platforms and communities.”

A Tried and Tested Platform.

Ji believes Chainlink is the best oracle option for the platform, given the large and warm reception it has received from some prominent industry figures and companies.

“Chainlink has demonstrated a stellar track record in providing bespoke oracle solutions to leading global enterprises including Google, Oracle, and SWIFT,” Ji said. “This experience underlines Chainlink’s credentials as the undisputed, market-leading decentralized oracle network.”

In the future, Ontology hopes to build multiple Chainlink oracles on its HydraDAo in a bid to “enable stronger data accuracy within smart contracts, cross-chain interactions, and cross-data source collaboration.”

This is not the first partnership between Ontology and Chainlink. In November 2019, Ontology developers started the process of adding simple decentralized data oracle from Chainlink onto its platform.

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Author: Cody L

UMA Project Launches Synthetic Token ETHBTC Which Tracks Relative Value of ETH to BTC

UMA Protocol, a decentralized finance (DeFi) project, has approved an innovative contract to create a synthetic token called ETHBTC which would track the relative value of Ether concerning BTC.

This synthetic token would allow users to bet on the relative value of the second largest token concerning Bitcoin. However, the synthetic ETHBTC token would not involve either ETH or BTC for minting.

While introducing Bitcoin’s synthetic value (tBTC being the latest project) on the Ethereum network as a collateralized asset has been the trend in 2020, the idea of creating a synthetic token that is pegged against the value of bitcoin and Ether is one of a kind.

This synthetic token would be the first deployment of the UMA project, and they are calling it a priceless token model since it will be built from scratch without the need for any oracle.

Hart Lambu, the co-founder of UMA, commented on the reason behind going for an unconventional defi project model despite it being their first deployment, to which he responded:

“ETHBTC was selected as the first test for UMA’s priceless synthetic design because it’s DeFi-centric but not too serious.

This first token is still experimental, so it felt wise to choose a product that appeals to hardcore DeFi natives – the type of people that might want to bet on this rate, and who best understand the risks of ‘new’ things.”

The UMA team has, however, cautioned users who were enthusiastic about buying tokens to be careful. According to them, not only is the token quite new, but even the concept behind it hasn’t been widely tested, and thus users must proceed with great caution.

How ETHBTC Works?

In order to mint ETHBTC, a user needs to deposit DAI in a smart contract, allowing them to withdraw ETHBTC against it. The user can then either trade it in the open market like any other Ethereum based token until the contract expires or increase the liquidity of the ETHBTC pool.

When the contract expires, the collateralized DAI is split between holders and stakers, and if the relative value of the ETH against BTC is higher, the token holder receives a profit and if the value has declined the token staker receives a profit. This means ETHBTC holders would go long while the stakers go short on the synthetic token.

The other interesting aspect of this priceless synthetic token is that it doesn’t require any oracle to track the price, unlike many other token systems (see chainlink’s decentralized price oracles). Primarily because there is no on-chain activity required to keep this model flowing, and Lambur believes this could be a perfect way to scale the DeFi platform.

In case of any dispute, the involved parties can settle the issue through a vote, and the decision-makers who vote for the winning side would receive the same UMA tokens.

Lambur also explained that the voting would be unbiased since the UMA’s economy has been designed in a way that people buying tokens to gain an advantage in the voting process would remain unprofitable. As of now, the ETHBTC can be purchased on Uniswap, which just launched v2.

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Author: Rebecca Asseh