It’s Possible the US Gets Crypto, the “Next Internet Sized Opportunity,” Wrong says Coinbase Co-Founder

It’s Possible the US Gets Crypto, the “Next Internet Sized Opportunity,” Wrong says Coinbase Co-Founder

Fred Ehrsam, the co-founder of Paradigm, says China is already taking a stand on crypto, and it could beat the US in crypto that too “on multiple fronts.”

“The US is at a very important crossroads with crypto today,” says Coinbase Co-founder Fred Ehrsam, who is also the co-founder of crypto investment firm Paradigm.

In an interview with Bloomberg, Ehrsam talked about the regulation of cryptocurrency as more and more regulators are getting vocal about regulating the crypto space.

“The US is blessed with the best currency and the world’s reserve currency today,” and it also tends to be the de facto financial regulator for a whole bunch of the world, he said, noting that most of the highly valuable companies in the world are American Internet technology companies.

“I do think that crypto is a nuanced issue and that it’s possible the US gets crypto wrong.”

While regulators’ job is to mitigate risk and keep investors safe, at the same time, “crypto is the next Internet sized opportunity for the United States.”

According to him, crypto has the “potential to create as many if not more jobs than the Internet,” the same as economic growth.

China Could Beat the US in Crypto

Cryptocurrencies can actually help with the privacy internet issues as seen with big tech companies in the past decade, according to Ehrsam.

These technologies can be used to “continue to own our own data while still getting all the benefits of the Internet platforms we know and love,” he added.

Ehrsam further noted that China is already taking a stand on crypto, “for better or for worse.” On being asked if he has concerns that China is going to beat the US in crypto and if that’s kind of a big deal, Ehrsam said: “Candidly yes.. and it’s on multiple fronts…”

One front is government programs explicitly built using crypto, which is true both with their CBDC initiative, which is basically making a digital renminbi, and also true of local governments who are trying to use blockchain technology, he said.

Furthermore, most of the crypto mining is happening in China. But the recent crackdown on mining in the country is “actually a huge moment of opportunity today for miners in the United States or globally to step in and on the crypto side to make it more decentralized,” Ehrsam added.

It’s Still Very Early

During the same interview, Ehrsam advised new crypto adopters not to allocate more than what they are comfortable losing. “Perhaps it makes sense to allocate more but error on the conservative side when you’re allocating it first,” he said.

“It’s still very early and as the fundamentals improve over time conviction improves over time.”

He further advised focusing on technology in terms of where this is going and why it is important in the world. Also, “think about it on a fundamental basis,” because “if you have that belief, then it probably makes sense to own something in space. And if that belief grows, then you can always increase it.”

Lastly, Ehrsam said things are never as good as they seem, and things are never as bad as they seem, so think of a 10 to 20-year time horizon.

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Author: AnTy

China Back on Attack Mode, Internet Blocking Exchanges & Bitcoin Miners Ordered to Shut Down

China Back on Attack Mode, Internet Blocking Exchanges & Bitcoin Miners Ordered to Shut Down

This time, Bitcoin price is not responding to the reports of a crackdown from China which extends beyond the crypto sector, ahead of the 100th anniversary of the ruling Communist Party on July 1, trading around $36,500.

China has taken some strict measures against cryptocurrency exchanges and bitcoin mining yet again ahead of the politically sensitive 100th anniversary of the ruling Communist Party on July 1.

However, these measures aren’t restricted to the crypto sector alone but extends to banks, education, and the internet.

Major internet services in China, Baidu, Zhihu, and Sogo, are blocking the keywords associated with the top three crypto exchanges Binance, Huobi, and OKEx.

“According to the relevant laws, regulations, and policies, the search results have not been displayed,” reads the message on social media. Over the weekend, Weibo also blocked a large number of crypto Key Opinion Leaders (KOLs) in China.

Reportedly, the Payment and Clearing Association, a subsidiary of the Central Bank of China, has also stated that 13% of gambling websites support crypto and use the anonymity of blockchain technology to conceal fund transfers.

Additionally, the Reform and Development Commission in the Changji Hui Autonomous Prefecture in Xinjiang issued a notice on Wednesday ordering its subordinate government officials in the Zhundong Economic Technological Development Park to shut down all crypto mining activities.

Xinjiang province is one of the major economic and technological development zones in China, which is home to coal-based power plants and industrial factories, including some of the largest Bitcoin mining facilities due to fossil fuel energy.

This move was taken by the authorities based on the high-level bitcoin trading and mining crackdown brought up during the China State Council meeting last month.

This has resulted in the hash rate of the top mining pools plummeting by 20% to 25%, as per BTC.com. So far, Bitcoin’s hash rate per day is at 166.1 Th/s, up from last month’s 118.7 Th/s caused by China’s crackdown but still down from 171.4 Th/s ATH on May 13, according to Bitinfocharts.

According to the Chinese publication Wu Blockchain, there are three mining regions in China: Inner Mongolia, which relies heavily on coal-based mining and has already stopped mining cryptocurrency completely, Sichuan depends on hydropower which may not stop, and Xinjiang, where the situation is complicated but the term used in the document is “to suspend for rectification,” and not as strict as Inner Mongolia. It added,

“In addition to the uncertainties of government supervision, China is experiencing a new power shortage. The core reason is that China’s main power generation area and main power consumption area are separated in the west and east, which also has an impact on current Bitcoin mining.”

Bitcoin and other cryptocurrencies continue to face price pressure due to rising regulatory concerns from China. This time, however, BTC price is not affected, going to $36,700 despite the reports, after the drop to $31,000 on Tuesday.

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Author: AnTy

Ethereum Layer 2 Solution Polygon Launches SDK to Transform Ethereum Into An Internet of Blockchains

Ethereum Layer 2 Solution Polygon Launches SDK to Transform Ethereum Into An Internet of Blockchains

Popular Ethereum layer two scaling solution Polygon has added another milestone to its cap. Polygon said its SDK stack is now available for use on the Ethereum network in a Medium post.

Polygon SDK Is Live

This will see developers build Ethereum-compatible blockchains easily and seamlessly. With its pluggable modules, developers can finally utilize consensus algorithms like Istanbul, Hotstuff, and leverage on the Ethereum Virtual Machine (EVM).

The multi-chain scaling solution noted that the SDK release would further establish the importance of Ethereum to the blockchain ecosystem. This will transform the protocol into a full-fledged multi-chain system like an Internet of Blockchains (IOB).

Compared to other decentralized applications (dapps) facilitators, Polygon’s multi-chain Ethereum system will be similar to protocols like Polkadot (DOT) and Cosmos (ATOM) but with a few major upsides.

Developers using the Polygon SDK will be able to benefit from Ethereum’s network effects. They will also enjoy higher security as Polygon Chains will tap from the security architecture of the Ethereum network and grow further while enjoying more flexibility and power.

The Polygon SDK will support stand-alone chains – sovereign Ethereum chains in charge of their security for a start. Later on, it plans to include layer two solutions or secured chains like Optimistic rollups, zkrollups, Validium, and Plasma.

Commenting on the new development, Polygon co-founder Sandeep Nilwal noted that the layer two protocol is fixated on ensuring the multi-chain future of Ethereum.

According to him, Polygon’s SDK deployment is targeted at solving the pressing needs for Ethereum’s multi-chain future, including ease of deployment and inter-layer two communication.

Polygon is not done yet with its SDK deployment. The protocol plans to launch more consensus algorithms, enabling inter-chain or bridging modules, plugin systems, and enterprise modules for businesses later on.

Polygon Outshines All Layer 2 Protocols

The boom in decentralized finance (DeFi) has served as a wake-up call for the Ethereum network, given its slow march to a PoS consensus algorithm. Ethereum, which currently shares a proof-of-work (PoW) mining protocol with Bitcoin, has seen its gas fees shoot up and experienced slower transaction validation time due to network congestion.

Layer two scaling solutions like Polygon have retained the relevance of the Ethereum network as more developers have sought alternatives in building dapps.

Polygon, one of a multitude of scaling solutions, has quickly separated itself from the crowd, and its token price has been a reflection.

Polygon’s steady growth seems to have caught the eyes of billionaire Mark Cuban, as the Dallas Mavericks owner recently invested in the company. The company announced this feat in a tweet yesterday as Cuban also added Polygon to his website, further confirming his investment in the project.

After a run-up in price due to the news, it hit a 24-hour peak at $2.30. At press time, Polygon’s MATIC is trading for $2.14.

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Author: Jimmy Aki

DFinity’s ICP Token Rises By Almost 60% on Opening Day following Monday Listing

The much-anticipated Internet Computer (ICP) utility token has launched, and the token has seen much action on its first day of trading.

The utility token made by Zurich-based tech company DFinity quickly found its home on major crypto exchanges like Coinbase Pro, Binance, Huobi Global, OKEx, and many others yesterday.

ICP Tokens Fifth Most Valuable Crypto

Following a four-hour trading period, the price for the ICP tokens swung wildly, moving from its opening trade of $700 to $250 before self-correcting and rising 70% to $420 at press time.

Crypto data aggregator Coingecko estimates that over $2 billion has been traded in the last 24hrs with a fully diluted valuation of over $213 billion since opening trade.

According to market data aggregator Messari, following its max supply of 469,213,710 and a price valuation of $342, the market valuation of the five-year project would be in the region of $160.5 billion. Even though only 26% of the overall tokens are in circulation.

With that number, it would likely place the new entrant just behind meme coin DOGE with a market cap of over $57 billion, displacing Ripple’s XRP token and Cardano’s ADA as the fifth most valuable cryptocurrency.

ICP Set To Replace Legacy IT Infrastructure

The Internet Computer (TIC) blockchain has long been in development spanning five years. According to the parent company DFinity Foundation, TIC is the world’s first blockchain that runs at web speed with unbounded capacity.

It’s also the third major blockchain innovation alongside Bitcoin and Ethereum set to change how we interact with the internet and transfer value.

DFinity says the project’s mission is to change the way billions of people interact with the traditional IT infrastructure by enabling users to connect through standard protocols to a publicly accessible global supercomputer on its ICP protocol.

The project, founded in Oct. 2016 by former President and CTO of String Labs, Dominic Williams, aims to replace the present IT industry by allowing developers to host their codes directly on the public internet. This will see them forgo using traditional hosting companies, servers, commercial cloud services, and big tech companies.

According to Williams, the Internet Computer uses a scientific protocol called the Chain Key Technology (CKT), which comprises Non-Interactive Distributed Key Generation (NI-DKG), Network Nervous System (NNS), Internet Identity, and several advanced technologies.

The CKT platform uses a set of cryptographic protocols, and the system is separated into several subsections, including two “canisters” and “neurons” that help it run efficiently.

The project says it would allow developers to run computing applications on the decentralized web just like decentralized applications facilitator Ethereum. But DFinity says the TIC comes with superior scalability functionality.

Before its Mercury genesis launch, DFinity raised a total of $121 million from venture capital contributors like Andreessen Horowitz, Polychain Capital, SV Angel, Aspect Ventures, and several notable investors.

Its ICP tokens would be used in staking in its governance system, and users will be able to earn “voting rewards,” which they can now exchange for “cycles” they can use to run their computations.

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Author: Jimmy Aki

Every Internet Community Might Have Its Own Micro-Economy, Including NFT’s, Someday

Every Internet Community Might Have Its Own Micro-Economy, Including NFT’s, Someday

“Crypto, and specifically NFTs (non-fungible tokens), can accelerate the trend of creators monetizing directly with their fans,” reads a16z latest blog post written by Chris Dixon, a general partner at Andreessen Horowitz.

While social platforms will continue to be useful for building audiences, creators can increasingly rely on other methods, including NFTs and crypto-enabled economies, to make money, he said.

Non-fungible tokens (NFTs) are gaining a lot of attention lately as people digitize their art, videos, music, gifs, games, text, memes, and any number of things and sell them online.

HighestSellingNFT

Source: Twitter

While NFTs will have their own ups and downs, they offer fundamentally better economics for creators by removing rent-seeking intermediaries, enabling granular price tiering, and reducing customer acquisition costs to near zero by making users owners, he wrote.

As such, this new sector which is still early and will evolve, Dixon believes, will see an increase in their utility as digital experiences are built around them, including marketplaces, social networks, showcases, games, and virtual worlds. He added,

“Someday, every internet community might have its own micro-economy, including NFTs and fungible tokens that users can use, own, and collect.”

In this burgeoning sector, recently, the major auction house Christie’s also joined in through Beeple’s digital art, the payment for which was accepted for the first time in crypto, Ether.

ChristiesBeepleNFT

Source: Twitter

People are pouring in huge amounts of money in these NFTs, with a batch of digital collectibles known as CryptoPunks getting sold for about $1 million in cryptocurrency in just a few minutes recently.

These digital collectibles are created on the Ethereum blockchain using the ERC-721 standard and are embedded into a smart contract.

This obviously has people making copycats, as seen with “Binance Punks.” Larva Labs, the company behind the Punk collectibles, clarified last month that it “has taken the art from CryptoPunks and is selling it as a copy on another chain. This is in no way an authorized project.”

AmandaCernyNFT

Source: Twitter

On February 22nd, volume in the NFT space peaked above $64 million and over 44k traders, an uptrend of 114x and 26.5x respectively from the beginning of the year, as per Dapp Radar.

Since then, the volume on NFT marketplaces has come down to just under $16 million and traders to over 25k.

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Author: AnTy

Largest TopShot ‘Moments’ NFT Sale Fetches $100k; Available on the Internet for ‘Free’

Largest TopShot ‘Moments’ NFT Sale Fetches $100k; Available on the Internet for ‘Free’

NFTs are going off, and the latest sign of it was the largest TopShot sale.

Over the weekend, the digital basketball cards sold like hot pancakes, with two of them at a whopping price of $100,000 each.

Last week, FantasyLabs co-founders Jonathan Bales and Peter Jennings bought a Ja Morant highlight off NBA Top Shot, a Dapper Labs product, for $35,000.

Launched in July 2019, NBA Top Shot is an NBA-licensed product that lets users purchase digital packs of cards (or “moments”) that can be instantly bought and sold through a marketplace.

Bales’ called this “the deal of the century… for the low, low (record-setting) price of $35k.”

Talking about his “Investment Philosophy,” Bales explained the motive behind spending $35k on a video that can be found all over the Internet for free. For Bales, when it comes to sports trading cards, they are “fine art” and a “player stock market.”

And the reason is the same as an “art collector might want to buy one Picasso as opposed to 100 paintings from lesser-known artists.” He wrote,

“If you believe physical trading cards have value, then you absolutely must recognize the value of digital assets; if you don’t, you’re being stubborn and/or short-sighted.”

This is because, unlike physical trading cards, digital cards are provable, unfalsifiable, make fraud mathematically impossible, scarce (having a serial number), and have a transparent and liquid market.

“Gold is to Bitcoin as physical trading cards are to NFTs,” said Bales, who believes NFTs tokens have two purposes to “generate verifiable scarcity and ownership.”

Given his interest and conviction in NFTs, Bales believes “NFTs are the future of collecting” and predicts the consensus shift on digital items from “these are worthless and not real” to “this is the best way to prove ownership, scarcity, and authenticity.”

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Author: AnTy

Brave Pushes Towards A Decentralized Web; First Browser to Add Native IPFS Support

Brave rapidly built a reputation for itself as the challenger to conventional, centralized internet service providers. More recently Brave took its latest ambitious step to the support of an entirely decentralized web. How it intends to do this is through offering full native integration with a peer-to-peer networking protocol.

Known more commonly as the Interplanetary File System (or IPFS for short), this protocol sets its sights on fundamentally improving the dominant application layer protocol – HTTP. Along with processing content faster, IPFS also aims to make it easier to access, and more resistant to failure.

The prospect of any protocol dethroning HTTP is an impressive one, but how does it work? TechCrunch offers a concise view of how IPFS works and how it could accomplish all that it claims. To summarize – HTTP was originally designed for browsers to gain access to information stored on central servers. IPFS, however, accesses these same browsers with the use of a network of distributed nodes. While this is similar to obtaining or validating information on the blockchain, you can also liken it to downloading content from a solution like BitTorrent. This is a fundamental difference in how browsers can access information, with little to no difference from the end-user’s perspective.

IPFS offers a range of benefits over HTTP, such as faster speeds, better security, and more resilience to failure; being based upon a distributed network of nodes. One of the more pivotal attributes of IPFS is that web content could be made far more resistant to censorship.

“IPFS gives users a solution to the problem of centralized servers creating a central point of failure for content access,” Brave’s CTO Brian Bondy commented, regarding IPFS, adding that “the power to seamlessly serve content to millions of new users across the globe via a new and secure protocol.”

Brave has been a long-standing supporter of the IPFS protocol, having worked on it since 2018. At the moment, with the launch of version 1.19 of the Brave Browser, it’s 24 million monthly active users will be able to directly access IPFS content by resolving URIs that start with ‘IPFS://’.

Brave users can also choose to install a full IPFS node, making their Browser a contributing node to the P2P network.

Molly Mackinlay, the Project Lead for IPFS, shared the motivation behind the creation and launch of the IPFS protocol, citing that a decentralized web can help users fight back against ‘systemic data censorship’ from government entities and monopolistic Big Tech. Mackinlay said,

“Today, Web users across the world are unable to access restricted content, including, for example, parts of Wikipedia in Thailand, over 100,000 blocked websites in Turkey, and critical access to COVID-19 information in China.”

“Now anyone with an internet connection can access this critical information through IPFS on the Brave browser.”

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Author: James Fox

Bitcoin’s Decentralized Model is What The Internet Wants To Be: Twitter CEO

Bitcoin’s Decentralized Model is What The Internet Wants To Be: Twitter CEO

While calling banning President Donald Trump the “right decision for Twitter,” Jack Dorsey said this sets a “dangerous” precedent.

Twitter CEO Jack Dorsey took to Twitter on Wednesday to clarify his decision to ban President Donald Trump on the platform, which he maintained was the “right decision for Twitter.”

For starters, he isn’t celebrating or feeling pride in this move to ban Trump, but it was made “after a clear warning” and with “the best information we had based on threats to physical safety both on and off Twitter,” he wrote in his series of 13 tweets.

Despite calling this the “right decision,” Dorsey called this ban “a failure of ours ultimately to promote healthy conversation” and set a “dangerous” precedent of an individual or corporation having this much power over a part of the global public conversation.

As other companies made such decisions, Facebook being another big giant to do so, Dorsey says, over the long term it will be destructive to the noble purpose and ideals of the open internet.”

While a company moderating itself is different from a government removing access, Dorsey said it might feel so while adding, “If folks do not agree with our rules and enforcement, they can simply go to another internet service.”

But at the same time, he maintained that Twitter does need more transparency in such moderation operations.

And this is why he has all this passion for Bitcoin, which he has previously said that one day could be the currency of the Internet.

“The reason I have so much passion for Bitcoin is largely because of the model it demonstrates: a foundational internet technology that is not controlled or influenced by any single individual or entity. This is what the internet wants to be, and over time, more of it will be,” said Dorsey, the founder of payment company Square, whose Cash App supports BTC.

Dorsey has been calling for an open, decentralized standard for social media, and it has been towards this goal that they have been developing Bluesky — “a client of that standard for the public conversation layer of the internet.”

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Author: AnTy

Dfinity Project Hits Mercury Milestone, Launching Its ‘Internet Computer’ Mainnet

Dfinity Project Hits Mercury Milestone, Launching Its ‘Internet Computer’ Mainnet

Dfinity, a startup that has been building the ‘Internet Computer’, launched its Mainnet quietly on Dec. 18 according to a blog post update from the company’s founder Dominic Williams. The firm which was valued at around $10 billion last year enjoys the backing of heavyweight VCs such as Polychain Capital and Andreessen Horowitz.

Dfinity’s internet computer is an advanced computing system built on blockchain technology; it is set to compete with the likes of Amazon Web services. This new internet computer leverages Chain Key technology which basically reduces the computing workload by splitting smart contracts into two; query calls and update calls. The former can be executed in milliseconds while the latter can take between one and two seconds, depending on the rate of block production.

According to the 18,000-word blog post, Dfinity’s purpose is to extend the functionality of the public internet through blockchain technology, hence eliminating the need for legacy techs such as firewalls, databases, and cloud services. The blog goes on to highlight that,

“Ultimately, the Internet Computer allows entrepreneurs and developers to reimagine both how and what they build — a paradigm shift that will change everything.”

While Mainnet had met its release date target of Q4 2020, Dfinity had yet to go mainstream on this milestone. According to Williams, this release is more of an Alpha version given that the project is still on its path ‘Genesis’. Some of the required metrics for the Genesis version to be met include network stress testing as it grows, the release of documentation, and significant amounts of the source code.

Currently, the internet computer is decentralized and runs on nodes located in 7 independent data centers spanning Switzerland, Germany, and the U.S.A. However, the project has issued only a fraction of its 469 million governance tokens; these were allocated to the Dfinity team, early investors, and other stakeholders who will be obligated to vote once the Genesis is met.

The update, which also outlines a 20-year plan is fundamentally bullish on the prospects of an internet computer in the coming decades. It outlines that,

“The Open Internet will finally be significantly bigger than Big Tech’s closed proprietary ecosystem, which will now be in terminal decline, but will take forever to disappear for similar reasons COBOL code is still running.”

Dfinity believes that open versions of existing applications like TikTok, Uber, and Google Photos can be built on its advanced blockchain-based computing ecosystem. In fact, the firm has previously built a TikTok ‘replica’ which it dubbed CanCan to demonstrate the feasibility of its tech. Per the blog, Dfinity anticipates unlocking the Genesis version of its Mainnet within the next 2-3 months, after which the network will transition to beta.

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Author: Edwin Munyui