State of the DeFi Industry

DeFi is the abbreviation of “decentralised finance.” It differs from conventional financial systems in that it doesn’t require official identification documents or financial intermediaries (such as banks, insurance firms, stock exchanges, etc.) to perform transactions like trading, mortgage lending, or insurance payouts. DeFi employs blockchain technology to address the identity identification process and rising costs brought on by transaction fees to intermediaries, two major issues in traditional financial systems. New financial solutions have been created using this technology and are now in high demand. In this post, we’ll discuss the status of the DeFi industry.

DeFi—Is It Dead?

The development of Decentralized Finance (DeFi) has completely revolutionized the cryptocurrency market.

The plot originated in a hypothetical thought experiment posted on Reddit in 2016 by user u/v buterin, who is now well recognized as Vitalik Buterin, the co-founder of Ethereum. He put forth the concept of running prediction market-like on-chain decentralised exchanges in the manner of on-chain automated market makers. As a result, a decentralised financial system based on blockchain technology was developed.

Since then, the DeFi industry has expanded rapidly to create a thriving, multi-billion dollar ecosystem full of possibilities. DeFi had amassed a staggering $247.96 billion in total value locked (TVL) across various blockchain ecosystems and applications at its height in December 2021. The DeFi space has suffered significantly, with TVL falling to a low of $67.46 billion in June 2022 as a result of all the macroeconomic uncertainties, geopolitical tensions, increase in DeFi hacks and exploitations, general market downturn, and increasingly pessimistic outlook due to recent events (collapse of Terra, 3AC, Celsius).

This raises the query Is DeFi no longer alive?

Now, answering this question is difficult. If we respond too quickly with a yes or a no, we risk coming across as web3 maxis. Those who are living in denial and underestimating how powerful and active this market actually is, how much it has already been through simply to exist. Adding on how much more it has yet to develop and expand.

Therefore, the middle position is the optimum one. DeFi is by no means completely dead. But continuing along the same route that resulted in the market cap collapse . And TVL drain won’t do this sector any favors at all.

DeFi must resurrect from the remains of earlier cycles. We will begin by taking a thorough look at the past in order to influence our decisions about the future.

DeFi History

Uniswap, Maker Protocol, and Compound stood out among the first few explorers to seek out undiscovered territory from the dismal cold of the crypto winter. These initiatives share the goal of developing a decentralised, trustless financial system that is unwavering in its capabilities and efficiency, censorship-resistant, and economically inclusive.

The concept of trustless digital asset exchanges, stablecoins, and crypto loans became a reality with the help of this trio of decentralised services. DeFilLlama claims that by June 2019, these protocols had gathered a startling total of close to $500 million, which was an amazing achievement at the time.

Having said that, there were only a few smart contracts active on the Ethereum blockchain back then, and the concept of decentralised finance was not really a reality.

As a glimpse into the rosy future of a decentralised financial system, the term “DeFi” extensively bandied about. With the launch of Uniswap in November 2018, the significant move toward constructing DeFi really got under way.

Uniswap, the On-Chain Automated Market maker, And The Birth of DeFi

The first on-chain automated market maker protocol on Ethereum, Uniswap, introduced as a result of Vitalik Buterin’s experiment . Although Uniswap developed the ‘x * y = k’ constant product pool formula, Bancor credited for developing the idea of liquidity pools.

The goal of Uniswap V1 was to give users an interface via which they could easily exchange ERC20 tokens on Ethereum. It effectively allowed Uniswap to build a safe and secure mechanism for users to trustlessly trade their digital assets . Where they can trade without a centralised custodian thanks to its core focus on decentralisation, censorship resistance, and security.

The Uniswap protocol’s code is completely open source and there is no preferential treatment for early investors, adopters, or developers. No governance tokens or platform fees as it created public utility to advance the industry.

The decision to make the Uniswap protocol’s code completely open source has undoubtedly influenced the decentralised exchanges that exist today across a variety of blockchain networks.

DeFi
DeFi
Introducing the Maker Protocol and DAI, the First Decentralised Stablecoin

The first decentralised collateralized stablecoin, DAI, created and enabled anyone using the Maker Protocol platform . And this collateralized against digital currencies like ETH and BTC.

The demand for stablecoins was obvious given that the market value of cryptocurrencies often shown significant fluctuation. However, the only market products available at the time were centralised stablecoins backed by centralised parties’ assets. In which they were subject to custodial and regulatory issues.

The DAI upheld the original principles of the cryptocurrency industry—censorship-resistance and decentralization. And the product market fit for it was obvious in a decentralised economy.

As arbitrageurs suspended operations due to network congestion, there weren’t enough liquidators bidding on liquidatable collateral at the same time. Laterthe DAI depegged from its dollar peg and the price of MKR fell. It was a sharp fall by more than 50% on the same day. And this soon created stability difficulties.

The MakerDAO community advocated adding USDC, a centralised stablecoin supported by Coinbase’s Circle, as a collateral to mint DAI in an effort to save the DAI stablecoin. This would increase the protocol’s and the stablecoin’s stability.

ETHLend has its drawbacks because the entire loan and borrowing procedure was very difficult for users to use. Lenders expect to post, monitor, and oversee active loans and loan offers as part of the peer-to-peer protocol. Since loans had to be personally funded, the entire procedure frequently was drawn out and cumbersome. Participants on the platform also came from various timezones around the world, which further complicated the situation. This was obviously not the future of finance, if DeFi was.

Pushing the Limits of DeFi Lending with Aave (ETHLend) & Compound

ETHLend, the first decentralised lending marketplace on Ethereum introduced in 2017. The platform, connected private lenders and borrowers who wished to engage in collateralized loan arrangements in a secure manner.

The network used smart contracts on Ethereum to store user cash and their collaterals. So that to conduct P2P lending arrangements. And also ensuring its security and trustworthiness. The platform allowed traders to leverage or short crypto assets. While consumers and companies could access cash flow and liquidity without having to liquidate their underlying collateral.

Compound debuted its algorithmic and autonomous money market protocol on Ethereum in September 2018. It enabled anyone to borrow or earn interest on cryptocurrencies frictionlessly and without dealing with a third party. The advent of Compound’s peer-to-contract design and dynamic borrowing interest rates was what set it apart.

Lenders and borrowers did not communicate with other users. Instead, they only dealt with a lending pool, a smart contract reserve made up of user-pooled assets. Each loan and borrowing market generates a supply and borrow rate automatically, which fluctuates as market conditions change.

As a result, Compound is able to provide lenders and borrowers effective interest rates that respond to market circumstances.

Instead of requiring borrowers to negotiate a loan maturity and borrowing rate with a traditional credit middleman. Compound redesigned this service in a trustless and automated way to make lending available to everyone while also enabling lenders to earn interest on their crypto assets.

With the pool-based concept, loan positions could be opened indefinitely because the lender received interest on the assets they provided. And while the borrower paid a borrow rate. The loan-to-value (LTV) mechanism, a statistic to gauge a loan position’s liquidation threshold, balances this dynamic.

Compound played a significant role in developing the algorithmic on-chain money market protocol design in the decentralised economy as the protocol is an entirely open-sourced.

After learning from Compound and abandoning the P2P lending model, ETHLend later changed the name of the platform to become the well-known Aave Protocol.

Aave’s infrastructure centres on its pool-based vaults, just like Compound. Aave, advanced DeFi lending by incorporating cutting-edge elements like flash loans, interest rate swaps, and liquidity provider tokenization.

Since then, the protocol has undergone two modifications, becoming Aave V3.

Uniswap, MakerDAO, Aave, and Compound were setting the groundwork for the entire DeFi business to come. Though they may not have been aware of it at the time. As well as opening the door for many more well-known brands that we are familiar with today.

In reality, the years 2020 and 2021 significantly affected the emerging sector. As many major brands began expanding the definition of DeFi beyond what was initially envisioned only a few years earlier.

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Comparison of the Bear Market in 2018 and The Cryptocurrency Market Drawdown in 2022

When a cryptocurrency market sees steady price decreases, it enters a bear market. According to Investopedia, “it often depicts a situation in which securities values decline 20% or more from recent highs amid pervasive pessimism and negative investor sentiment.”

Bear markets can also be related to specific securities or commodities. Bear markets , frequently linked to decreases in an overall market or index, such as the S&P 500. They may also be linked to a financial crisis like a recession.

Investopedia claims that the causes can be several. However, in general, variables like a poor or declining economy, pandemics, war, or burst market bubbles can be an influence.

Is This Your First Time Facing A Bear Market

This article examines what happened during the previous bear market in 2018 and what is happening during the present crypto crisis. Learn about the main distinctions and what you could anticipate during current market collapse.

Price of Bitcoin During Bear Markets

Cryptocurrency market
Cryptocurrency market

A value of $19.1K was the all-time high (ATH) for Bitcoin in December 2017. It plummeted during the course of the following year, reaching a low of $3.2K, or a maximum drawdown of 83%.

From its 2021 ATH, #Bitcoin has currently dropped by 73%. It might drop as low as $11.4K if the drawdown is similar to what was experienced in 2017. To replicate the 18-month bear market experienced in 2018–19, another 11 months of loss may be in store.

Nevertheless, figures from Glassnode show that the current realised price of Bitcoin is $23,340. This represents the average cost per Bitcoin in the supply as of its most recent on-chain transaction. Rarely, and usually near the conclusion of a bear market, does the price of bitcoin go below this level.

Bitcoin’s Actual Price

Cryptocurrency market
Cryptocurrency market

BTC is currently selling at a discount of about 11% to its realized price, or $20,700. It’s also trading at a similar discount to what it would normally cost to mine. This can be interpreted as a sign that the bottom is not too far away.

Cryptocurrency market
Cryptocurrency market

The MVRV Z-score for Bitcoin, which measures the discrepancy between market value and realized value, indicates that the cryptocurrency is currently undervalued. However it did hit far lower levels in 2018 and 2020.

Cryptocurrency market
Cryptocurrency market

Between the 2017 and 2021 peaks, the number of daily active Bitcoin addresses climbed by around 10%, going from 966,701 in December 2021 to 1.041 million in April 2021. Comparatively, throughout the same time period, the market cap of Bitcoin rose by 300%.

The total number of Bitcoin addresses nearly tripled during this time, going from 354 million to 976.5 million. While the number of daily active addresses only climbed by 10%. Current rise in the number of active and total Bitcoin addresses has helped the network as a whole . It become more frequently used and transacted in this market cycle as opposed to 2017.

The average daily volume of bitcoin is currently close to $5–6 billion, up from $0.8–0.9 billion in 2017.

Price of Ethereum in Bear Markets
Cryptocurrency market
Cryptocurrency market

In the recent bear market, Ethereum performed far worse than Bitcoin. Between January and December 2018, $ETH experienced a 93.8% decrease, falling from an ATH of $1,396 to a low of $86.54.

Ether has dropped from $4,812 to $896 during the past 7 months. It represented an 81% decline from its all-time high (ATH) in 2021.

Cryptocurrency market
Cryptocurrency market

Despite the fact that Ethereum’s value increased by 244% between its 2018 and 2021 ATHs, the total value locked (TVL) in decentralised finance (DeFi) shot up to $66.7 billion in the wake of the introduction of DeFi apps on Ethereum like Uniswap, Compound, Synthetix, and Yearn (and reaching $184.5 billion at its peak), where the majority of activity is focused on the Ethereum network. The overall number of tokens listed increased throughout this time, going from 1,359 to almost 20,000.

Ether might drop as low as $292 if it replicates the 93.8% dip it experienced during the 2018 bear market. For comparison, that would mean a further 67% decline from its present all-time low of $896.11.

Bear Market Token List
Cryptocurrency market
Cryptocurrency market

It should be emphasized that over half of the top 10 crypto tokens by market cap in 2017 failed to regain their former glory, despite the belief of current investors that DCA-ing into some or all of the top 10 cryptocurrencies will best balance risk.

As a result of their declines, Bitcoin Cash (BCH), NEM, Stellar (XLM), and IOTA (MIOTA) no longer occupy a spot among the top 10. BCH (previously rank 4), NEM (formerly rank 6, now rank 102), XLM (previously rank 9, now rank 24), and MIOTA (previously rank 10, now rank 63).

In spite of experiencing a sizable rebound from their ATLs, all four of these cryptocurrencies failed to surpass their 2017 ATHs during the 2021 bull run.

Predicting precisely how a bear market would unfold is never easy, especially given the uncertain macroeconomic environment of today. It is generally understood. However, that those who act well now will stand to gain the most if/when the market recovers.

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Buying Bitcoin For The First time

No matter where you are in the world, we aim to make it simpler for you to buy cryptocurrencies like Bitcoin and Ethereum. Learn from us as we take you through some of the concepts that newcomers need to comprehend in order to get going.

How to Buy Bitcoin & Other Cryptocurrencies?

We are aware that introducing new customers to the world of Bitcoin, blockchain technology, and cryptocurrencies can be challenging and perplexing.

We’ve gathered data from more than 300 cryptocurrency exchanges around the world. Using that information, we’ve created a simple guide to assist you in picking the best cryptocurrency exchange so you may finally buy your first Bitcoin!

Due to the various restrictions , different countries have different possibilities for buying Bitcoins and other assets. Additionally, options for purchasing bitcoin with credit cards, debit cards, or bank account transfers vary from nation to nation and between exchanges.

There are thousands of crypto assets available. While the majority of individuals start with one of the most popular coins, such Bitcoin, Ethereum, Bitcoin Cash, or Ripple. It is also possible to buy very illegible, risky, and speculative commodities.

The Best Bitcoin Exchange to Use

Selecting a trading site or exchange that allows deposits and withdrawals in your local fiat currency is the first step. Numerous exchanges are regional and only accept a few different currencies. You may discover on this page which exchanges accept the currency of your choosing.

Using the data from all exchanges we are able to rate these exchanges based on volume, and liquidity . And each exchange’s estimated user numbers. We hope that this ranking will make it easier for you to choose where to get your first Bitcoin!

Additionally, you may look into the many deposit and withdrawal methods these exchanges accept. Their fees and trading commissions, and the price of bitcoin to see if they are authorized and controlled.

It’s crucial to keep in mind that a cryptocurrency exchange is subject to the same regulations as a stockbroker. This indicates that in order to abide by local legislation, they have very high criteria for documentation. It is useful to be aware of this in advance in selecting the ideal exchange for your needs. It helps you, while buying Bitcoin and other cryptocurrencies.

Knowing the Various Payment Methods That Are Available

On a crypto exchange, there are four basic ways to deposit local currency. There are the four types of payments, they are:

Local bank transfers,

International wire transfers,

Third-party payment processors,

Credit/debit cards, and local bank transfers .

For the first few years, usage of credit card, debit card, or third-party payment processor like PayPal helped to buy Bitcoin. These was not an option for buying any of the other early cryptocurrencies. Because those transactions may be reversed. It would have been feasible to pay, get the cryptocurrency, transfer it off the exchange. And also undo the payment because a blockchain transfer cannot be undone. This meant that the price of Bitcoin and all other cryptocurrencies sustained by real money for years without any borrowing.

Up until quite recently, local bank transfers or wire transfers were the only ways to purchase Bitcoins from an exchange.

Buy Bitcoin
Buy Bitcoin
Is instant Bitcoin Purchase Possible

Due to the documentation requirements , exchanges must meet it frequently takes several days to completely open and validate an account. Once an account is set up, it is easy to quickly fund it using a bank transfer, wire transfer, credit card, debit card, or cryptocurrency that is stored elsewhere. Then, you can purchase, sell, or make a transaction very quickly. While some exchanges do not, some do permit new consumers to conduct trades right away utilizing leverage, or borrowed money. This means that it’s crucial to confirm that any exchange you choose accepts cards like Visa, Mastercard, American Express, and Visa Electron.

Once the verification for the exchange completes, you can make a deposit . And now you can purchase any of the assets they make in a market. The offered assets vary significantly from exchange to exchange. But all of them provide the most popular coins, including Bitcoin, Ethereum, Ripple, and Bitcoin Cash.

What to Do in Order to Buy Bitcoin?

Create an account and obtain a Bitcoin address. Now that you’ve chosen the exchange you want to trade on! It is quite acceptable for exchanges to request that you confirm your identification after registration. We refer to this as “Know Your Customer,” or KYC. You will need to submit pictures as identification proof during the process. Following submission, the procedure could take a few hours or even a few days to finish. Be tolerant!

You should now be able to make a deposit into your account after KYC has finished. Please choose what makes the most sense to you in light of the aforementioned information. We advise, using a local bank transfer; however, a SWIFT transfer or using a third-party payment processor also function. Use credit cards sparingly because the fees can pile up quickly! (Exchanges often charge credit card fees of 3-4%)

You are now ready to purchase your first Bitcoin when the funds have been deposited. As each Bitcoin divides into 100 million Satoshis, keep in mind that you don’t have to purchase a complete Bitcoin. You can only purchase a portion of one!

Guide For Beginner’s To Buy Bitcoin

You must choose the coin you want to acquire on the exchange before you can execute your first transaction. You must select a coin, such as BTC, ETH, or another, in the “Trade” area of exchanges. Pairs of cryptocurrencies are traded. The largest coins will have matching pairs to the primary currencies of the governments. This entails that you can make purchases in your preferred coin directly using USD, EUR, GBP, etc.

You can either select a price that you’d want to buy at or make purchases at the going market rate. Your deal might not be closed for a while or even never if you set your pricing too low compared to what is currently being sold in the market. It won’t be finished until the asset drops to the price you specified.

There aren’t any pairs of smaller coins and assets with fiat money. You will need to conduct business using another asset, typically Bitcoin, Ethereum, or a stablecoin pegged to the US dollar, in order to buy or sell them. To do this, you must first choose a coin, then BTC, before making your purchase. A few seconds later, BTC rather than the money you initially deposited will appear in your account. Using BTC as one half of the pair and your preferred coin as the other, you can now choose a new trade. The transaction will be completed at the going market rate for coins to coins.

Ways to Store Your Bitcoin

Maintain Bitcoin On A Bitcoin Exchange

The most convenient storage option for people who are new to cryptocurrency is probably to keep your digital currency directly with a bitcoin exchange. Be mindful of the risks of holding Bitcoin on an exchange by keeping in mind that cases have happened when exchanges have been hacked or lost the BTC or altcoins belonging to their customers. As an alternative, you might decide to retain your Bitcoin in an external wallet, albeit doing so comes with hazards for novice cryptocurrency users who aren’t yet confident handling their own private keys.

Your decision on how to purchase and store your new cryptocurrency may be influenced by how you want to use it. It might be simpler and easier to keep your coins on the exchange you bought them from if, for instance, you wish to own Bitcoin or an altcoin as a short-term investment. Although there may be additional security concerns, the majority of people really hold at least some of their coins on an exchange. This is probably the simplest choice if all you want to do is learn how to invest in Bitcoin.

When buying BTC or other assets for trading, you must keep them in storage on the exchange. Since they serve as collateral—the thing you can stake or borrow against. There are numerous exchanges that let their consumers trade cryptocurrency on margin. This money management plan carries a very high risk, so we advise you to seek the right financial advice for your unique circumstances.

However, you should hold the coins yourself if you intend to purchase cryptocurrencies in significant quantities . Otherwise, if you intend to use it to make online purchases of goods and services. You will need a hardware or online wallet of some kind in order to accomplish this.

Keep Bitcoin In A Wallet

You might retain your BTC in a Bitcoin wallet as opposed to keeping your digital assets on a Bitcoin exchange. There are two types of wallets: hot and cold. Software called “hot wallets,” known for holding your Bitcoin online in a digital wallet or a mobile wallet, is always linked to the internet. A hot wallet makes transactions more convenient, but it is also more vulnerable to attack. Cold storage of your new Bitcoin is achievable by employing hardware wallets, but online wallets are possibly more user-friendly for crypto beginners.

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Can India Develop Into Haven For Millennial Web 3.0 Entrepreneurs

Young entrepreneurs under the age of 35 are thriving in India’s Web3 sector, but they are constrained by a “tricky” taxation system, a lack of domain knowledge, and security concerns.

The new taxation system, which was opposed by the cryptocurrency industry, is still an issue for Web3 entrepreneurs.

According to Mohammed Roshan, the founder and CEO of GoSats, “if a smart contract requires fees to operate, you purchase ether from an exchange. Then, transfer it to a wallet called a meta mask and then transfer it once more to the contract. You are taxed at every transfer.”

Buyers of digital assets in India must withhold 1% of the amount owed to sellers as tax as of July 1. This is in addition to the April 1st-starting flat 30 percent income tax on profits from cryptocurrencies.

Need For Regulatory Clarity

Most entrepreneurs in this field believe that there are many unanswered questions regarding regulatory clarity. It is common both in India and internationally in developing sector.

Anmol Chawla, co-founder of TaxCryp, thinks that existing solutions cannot resolved tax problems. He said, to aid these young founders in overcoming these obstacles while concentrating on the goal of their business, “clear guidelines, better formal reporting practices, and VDA-specific tax solutions will be necessary.”

Raj Kapoor, the founder of India blockchain alliance , asserts that investors and cryptocurrency exchanges are concerned about some of the tax-related proposals included in the Union Budget 2022–23. And that the community is uncertain about the future due to the government’s opaque stance.

According to Roshan, no nation has ever had a TDS on cryptocurrency withdrawals. The TDS is still acceptable, but the transactional tax of 1% “could effectively push India back in this innovation.”

He described the country’s taxation system as “extremely tricky” and predicted that the new laws, particularly the TDS, will be very challenging to understand.

But Allround.club founder Srijan Shetty sees the silver lining. The biggest difficulties that everyone in the ecosystem is currently facing are probably those related to regulation and information asymmetry uncertainties. And said, Taxation, is a welcome change because it gives the area legality and fosters audience trust.

He added, “its a good step towards providing regulation which can help us consolidate India as the frontier of Web3 innovation. Taxation isn’t as much of a problem as the uncertainty is.

“Taxation is a huge problem at this point, both at institutional and retail levels,” said Raghuram Trikutam, the founder of Descrypt. It’s also encouraging because it shows that regulators do frequently acknowledge the value of cryptocurrency investments and their status as a distinct asset class.

Security Concerns

Players of Web3 don’t just worry about taxes.

According to Kapoor of the India Blockchain Alliance, security will be one of the main issues that young entrepreneurs in this field will have to deal with.

“Since blockchain technology is trustless by design, Web 3.0 is still susceptible to certain types of attacks, such as DDoS, DNS hijacking, and sniping bots, as well as hard forks and 51% attacks. Regular scams, such as targeted advertisements, might also be effective in the new setting. Malicious smart contracts may also contain malware in their smart contract code, the author added.

Limited Expertise/Knowledge

Furthermore, he added that the third-party tools used to create solutions could also introduce flaws. The time and resources needed for testing, debugging, and auditing could lengthen the development cycle.

Since blockchain is a relatively new field, it is challenging and expensive to find qualified candidates, said Pearl Agarwal, founder and managing director of Eximius Ventures,

“Only a small number of people have begun to learn about the technological advancements in this field. Additionally, the majority of them only have 3–4 years of experience, making it challenging to find quality talent,” she added.

According to Eximius Ventures, Web3 is a popular choice among millennial entrepreneurs because it is easier to scale, costs less money, and requires less physical labor.

There is also a sizable capital infusion in the experimentation space. And young people are drawn to the concept of Web3 disruption. In which in a way has faster potential for career advancement.

The market is currently learning about engineering challenges and advancements. So there is only a limited amount of know-how that experienced founders and investors can impart to new founders.

Entrepreneurs
Entrepreneurs
The Assurance

What then is driving the Web3 market in India?

Web 3.0 is a new and emerging field that has drawn many young talent and investors in recent years. This is mainly because there are more opportunities for developing novel ideas in the sector. Additionally, more capital is available from institutional and retail investors to support this expansion.

Gen Z and millennials are digital natives who view their online personas as an extension of their physical selves.

This encourages them to want more control over the data they are producing. Also the ability to profit from it as well. And this is only possible in a Web3 environment.

Raj Kapoor of the India Blockchain Alliance thinks that the emergence of Web3 and the millennial backlash against centralized control of data and identity mark a generational shift.

“They think users ought to be in charge of their data and identities. This works well for Web3 apps because a user exists as a distinct entity in the community. One that is unrelated to their offline identity and these apps never use a single sign-on mechanism. Add to that the play-to-earn opportunities that involve cryptocurrency payments or a brand-related reward scheme. The scheme that doubles as a currency but isn’t actual cold, hard cash, he said.

What Millennial Entrepreneurs Believe?

Since learning about Bitcoin in 2014, Roshan of GoSats has been deeply interested in learning more. He acknowledges that there have been difficulties because a few bad actors have damaged the reputation of the sector. But he was passionate about starting his Bitcoin reward start-up firm.

Trikutam of Descrypt thinks the Web3 paradigm is gaining traction quickly.

“As millennials, what helps us is that we are better able to recognize these opportunities because of the experiences we have over the years. Experience tends to teach you “how to build a business” as opposed to “launch a project,” which may be why so many millennials are entering the space industry. In general, it’s good news for Web3 because the ecosystem will grow and become more mature, “he said.

The most exciting aspect of Web3, according to Shetty of Allround.club, is how early we are. And how much control we have over creating the foundation for the next generation of the internet.

He said, “We’re at the same crossroads now because I participated in some Usenet forums in the early 2000s, some of which helped shape the last 20 years of the internet. I’m excited about the future because we can learn from the shortcomings of Web2 in the past and create a more equitable internet infrastructure for the next generation.”

India Has Chance to Build and Rule the World Through Web3

In 2021, there was a buzz about the idea of Web3. In which it was referred to as the revolutionary next phase of the internet. India anticipates, generating new employment Web3 opportunities for a developed economy would raise the living standards of its citizens.

Global investors reportedly decided to invest millions of dollars in the Indian web 3 ecosystem. It was citing the country’s strong team of 4 million engineers, seasoned tech operators, and strongly established web 3 communities. Web3 is rumored to change everything for India’s industries and cutting-edge projects in the very near future.

Expert’s Opinion

Ashish Singhal, co-founder & CEO of CoinSwitch said, “India has a chance to build and rule the world with Web 3. India was unable to profit from the early years of the Internet, which were dominated by the West. It evolved into a services sector. The Web3 companies of today are actually defining the market and establishing them. In a standard for how the upcoming crop of Web3 businesses will conduct themselves. “We have the talent and materials to build Web3, so we shouldn’t pass up this chance .” He added, the future of Web3 in India’s technological ecosystem is uncertain. He was speaking at India Internet Day 2022, which was put on by TiE Delhi NCR.

The decentralization component of Web 3.0 gives websites the chance to process information in a clever way. This ultimately affects how effectively and efficiently work is done in India.

Ankit Jindal, co-founder of Biconomy, said that “The fundamentals of developers in India are phenomenal and they are very motivated.”

With its democratizing advantages of digital technologies, India is known to have one of the largest and most innovative communities. And that might includes startups, innovators, and developers from all over the world. It also has the capacity to make the nation an inclusive digital society.

India Poised to Become Haven For Web3

One of the world’s Internet consumer markets with the fastest growth is reportedly India. Co-founder of Sai Srinivas Kiran G said, “We didn’t have a sizable consumer market until about 5 or 6 years ago, but things have changed since then. The world is now looking at India. And we are only 2 to 3 years away from seeing a lot of consumer-based apps emerge. Gaming already contained some Web3 components, but we only became aware of them in the last three to four years. The go-to-market strategy needs to be very different when expanding outside of India because consumer preferences vary. Founders should exercise patience and be prepared for finger burns.” Report -Web3 will assist India in adding $1.1 trillion to its GDP over the course of the next 11 years.

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What Experts Say About Online Sports Making Waves With Cryptos

Blockchain-based play-to-earn online sports that reward fans with cryptos are at the forefront of the sports and cryptocurrency combination.

According to a recent report by DappRadar, a global app for decentralised applications, blockchain gaming is bucking the crypto winter, with almost one million daily, unique active wallets in use in July globally.

According to a report by Valuates, the gaming-driven global metaverse market will likely grow from $510 million this year to $28 billion by 2028. It is expanding at a compound annual growth rate of 95%.

In providing opportunities for their gaming communities to earn real money Indian companies connected to Non-Fungible Tokens (NFTs). NFTs are also known as the digital assets. They are also relying on NFTs to hold onto their positions in a bear market.

A shared database or ledger called blockchain and online gaming together have powerful applications. In recent years, games like Cryptokitties, Axie Infinity, Decentraland, and the Last Will have gained popularity among players.

Blockchain’s Transparency

Blockchain technology is used in games to ensure that everyone owns a copy of what they are playing. Not just one entity but to create true ownership. These games employ the same technology as cryptocurrencies like Bitcoin and Ethereum.

Some of these games use the metaverse, a virtual environment where players can communicate with one another. While others are play-to-earn games that use blockchain technology to encrypt data for transparency.

These games have intrigued not only Web3 users, but also Web2 users. According to experts, users between the ages of 15 and 60 are playing blockchain games.

Suvesh Malhotra, (CTO) at Hike, claims “Web2 players have been investing their time and money on games without being able to unlock any meaningful value in the real world.”

Blockchain serves as a digital notary in the meantime. It finally enables online players to own things. That’s really potent because you can start unlocking value from things once you own them. Additionally, the issue of a central actor is somewhat resolved by a decentralised digital notary, he continued.

Online Sports
Online Sports

General Adoption

According to Sunny Bhanot, co-founder and CTO of the cricket NFT platform Rario, blockchain gaming is making waves. Blockchain gaming is becoming more viable for widespread adoption in use case in recent times. This tendency is only going to increase in the future. Due to the transparency this collaboration offers in addition to the entertainment value it provides.

The fairness of the platform is one of the main factors luring players to a gaming platform. Especially in Real Money Games, biased platforms rarely draw serious users (RMG). Blockchain ensures that every transaction on the platform is transparent for the entire world to see and analyze. And also builds user confidence in the platform’s fairness.

According to Amanjot Malhotra, country head of cryptocurrency platform Bitay, putting the leaderboards and reward system on the blockchain, makes everything transparent.

“Consider the possibility that a game database hack would result in the loss of all user progress information and the need for the user to restart.” He added saying, by putting the data on a blockchain, this problem can be solved. And making this scenario almost possible.

Challenges

It does have its own challenges, that much is true. The key among them, according to Bhanot, is understanding the technology (private key, wallet), security, legality, taxes, and scale.

According to Rohan Rajguru, co-founder of the celebrity shoutout website Hey!Hey!, blockchain gaming will take off once the obstacles are overcome.

More and more international and Indian sports stars have begun interacting in some way with the cryptocurrency world. Some cricket players have taken things a step further and started their own NFTs, joining forces with NFT platforms. Players like Rishab Pant, Smriti Mandhana, and Zaheer Khan, among others have joined the NFT players.

Dinesh Karthik, a cricket player, actually introduced India’s first-ever sports NFT last year.

Some platforms offer users the chance to win the NFTs of their favorite athletes, increasing engagement from an emotional standpoint.

“Considering the emotions that get attached to NFT games and the exposure to technology, it will not be long before the collaboration becomes mainstream,” said Kameshwaran Elangovan, co-founder and COO of NFT marketplace GuardianLink.

He said , it would soon be strange to say that game assets are NFTs because that would be the de facto standard. He added saying “just like how it’s so odd to say that your car has an airconditioner today.”

Player In Control

According to Suresh Joshi, co-founder of the blockchain gaming network Battle Infinity, blockchain technology has the potential to give players more control. And they make it possible for both players and creators to make money from their work.

Joshi went on to say that, in addition, blockchain can make in-game items interchangeable on an interoperable basis. And liberates value from behind the walled gardens of individual gaming franchises.

He said that, “game asset value can be realized not only by trading within games, but also by bridging different games with the use of NFT technology “. He also added that, it could take the avatar from one game to another.

The cryptocurrency industry, which is made up of the same Gen Zs and millennials that these games appeal to, adds enormous value for competitions, franchises, and sports players worldwide, according to Arijit Mukherjee, founder of NFT marketplace Yunometa.

On the other hand, NFTs undoubtedly draw attention when internationally renowned athletes show off their collection to fans. He continued, “Imagine how crazy it would be to own Sachin Tendulkar’s bat and its NFT from his Desert Storm innings in Sharjah, as well as the digital avatar of your favorite sports team, should it ever be released.” The growth of NFTs in India and around the world will be accelerated by the sheer buzz and word-of-mouth.

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Why Elon Musk’s Twitter Whistleblower Probably Isn’t The Answer?

Legal professionals explain why the Twitter whistleblower’s complaint is not likely to be the magic solution Elon Musk may be hoping for, but it may persuade the business to let him pay to exit the agreement.

Experts Explanation

1.Elon Musk Unlikely to Benefit

It’s unlikely that Elon Musk will benefit from the Twitter whistleblower’s complaint in the company’s lawsuit against him. Peiter Zatko, Twitter’s former security chief, painted Twitter’s security practices as generally inadequate and dangerous in a series of complaints to regulators. But experts told Insider it probably won’t be the magic solution Musk needs to prevail.

In the complaint, Zatko claimed that the company had “lied” to Musk about the existence of spam accounts on its website among other things. The whistleblower’s statement may help Musk’s legal strategy by bolstering allegations he has already made against the business.

However, experts disagreed that Musk would necessarily benefit from the details. And it’s unclear whether the Delaware court, which will make the decision regarding Twitter’s lawsuit against him. And will treat the allegations seriously.

If the case goes to trial, one legal expert said, “I don’t think it will change who wins, but it might increase the chances of Twitter agreeing to settle for a large payment.”

2. Day 2 of Amazon Arrived

Amazon’s “Day 1” startup mentality might be over after 28 years. Ever since he founded Amazon, Jeff Bezos has emphasized the value of maintaining a Day 1 mindset. No matter how old a company gets, it should never lose the risk-taking spirit of its founding day. However, current and former Amazon employees say Day 2 has arrived amid an impending recession.

3. Ford Eliminates Thousands of Jobs

As it switches to electric vehicles, Ford is eliminating thousands of jobs. The company confirmed that it will be laying off about 3,000 workers. And industry experts predict a tidal wave of layoffs as the sector goes through a seismic shift.

Twitter
Twitter
4. Robinhood and Coinbase Are Diluting Investors

Analysts warned that the companies may be harming current shareholders by issuing more restricted stock units to employees. The firms could be impacting negatively with the existing shareholders.

5. Fake Accounts Becoming An Issue

Fake accounts are reportedly becoming a bigger issue for LinkedIn. Experts have cautioned that this is an example of the platform’s bot and cryptocurrency scam problem after Binance’s CEO claimed that thousands of people are falsely representing themselves as his employees on LinkedIn.

6. Member claims He was employed as Child Laborer

A former polygamous cult member claims that he was employed as a child labourer to construct Amazon warehouses. When he was 17 years old, Wendell Jeffson, a former Fundamentalist Church of Jesus Christ of Latter Day Saints member, claims he would occasionally put in 18-hour days to build the Amazon distribution centres.

7. Billionaire Regrets

A billionaire admitted that he now regrets passing up “slightly insane” Elon Musk. The decision to pass up the chance to invest in Tesla in 2007 was described as “probably the worst investment decision of all time” by John Doerr, who supported Jeff Bezos and Larry Page.

8. Instagram Internally Tests Feature Similar To BeReal

Instagram is internally testing a feature akin to BeReal. The “IG Candid” prototype feature, which is similar to the anti-social media app BeReal, gives users two minutes per day to post in-the-moment photos.

9. Peer- to- peer Car Sharing

I used Turo, the car equivalent of Airbnb, and I don’t think I’ll ever rent a car from a traditional rental agency. I thought the app was fantastic all around. It’s simple and practical, but it has a few minor flaws. Further, the benefits and drawbacks of using the peer-to-peer car-sharing website are discussed.

10. NZ Govt Rejects Plans

A New Zealand local government rejected the plans for Peter Thiel’s enormous estate, which resembled a bunker. Following objections from environmental organisations, the 10-bedroom compound’s plans, which were to be incorporated into the natural environment, were abandoned.

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While Building Web3, What Differences To Know From Web2

Understanding the principles of Web3-focused businesses, who represent a more intuitive, just, and interconnected ecosystem, can teach us a lot about the future of the internet. An increasing number of entrepreneurs and developers are entering this emerging market as a result of the rising popularity of digital assets like cryptocurrencies. And there is a noticeable rise in venture capital investments in crypto and blockchain firms.

However, blockchain-based businesses do not adhere to a predetermined or common template, unlike conventional internet-based or Web2 businesses like Meta and YouTube.

These businesses are working to develop Web3. The next iteration of the internet, will run decentralised and blockchain-based services and completely transform how people conduct business online.

Web3 startups are fostering new forms of interaction by giving users complete control over the platform. Adding to that, it gives users, the ability to determine its future direction. Which in contrast to Web2 behemoths that are frequently criticized for being anti-competitive and preying on user-generated content.

Instead of centralizing content and processing by using massive servers that are entirely under their control. Building for Web3 requires businesses and developers to create a network of interconnected computers . Which further, will facilitate closer and faster interaction among users.

Furthermore, these companies aren’t just handing over control. They also returning the business’s profits to the users who invested in them.

There is a need for an entirely new technology that can provide all of Web2’s functionalities. While doing away with the need for controls, or outside parties to oversee every aspect of the business in order for all these unique aspects to be incorporated.

Unrestricted Platform

Users were able to interact with numerous social media, microblogging, video-sharing, and other platforms . When the internet switched from the Web1 to the Web2 era, seemingly revolutionising how people communicated and consumed content.

Due to the need for multi-user access, Web2 companies had to invest in both processing power and storage space. In addition to developing custom software to power their distinctive applications.

In the last ten years or so, cloud computing has aided in the expansion of small businesses. Instead of spending more money on buying dedicated servers, they began using services offered by Amazon Web Services, Microsoft Azure, and IBM Cloud.

In addition to assuming a significant amount of importance in the Web2 ecosystem, there are some results of this transition. The companies also established a hegemony that has altered the dynamics of the internet.

For Web3-focused startups, it is obvious that they need to use a technology that can handle numerous transactions. It hides user identities unless there is a need for verification. And it relies on its user base to handle platform-specific transactions.

The need to bypass current tech giants becomes even more important because these new-age businesses don’t depend on user data for revenue.

Web3
Web3

Adoption of Blockchain

Blockchain technology, was first described in the Bitcoin Whitepaper in 2008, has emerged as the best option for Web3 developers.

This technology supported thousands of decentralised applications that gave the world new perspectives. Perspectives on conventional business applications by using cryptographic elements to sign contracts and execute them using a network of computers called nodes.

In addition to introducing cryptocurrencies as a new asset class, blockchain technology has assisted businesses in streamlining operations. And also in achieving efficiencies that were previously unattainable.

Leading cloud service providers are now offering blockchain-as-a-service (BaaS) to businesses . So that they can deploy distributed ledger technology without incurring the costs or risks . And they are associated with setting up their own protocols.

Instead of relying on BaaS providers, businesses that are committed to innovating for Web3 can choose to set up their own scaling solutions. By building upon already-existing protocols like Ethereum, Web3 can set solutions.

In either case, business owners and software developers have a solution to the decentralization issue . And will undoubtedly need to use blockchain technology to create a peer-to-peer (P2P) network . In order to drive the development of the internet of the future, it needs to use blockchain technology.

Personalizing Content

Any Web3 application or service will undoubtedly have blockchain technology at its core. But interactive and immersive technologies like artificial intelligence, augmented reality, and virtual reality also play important roles.

Web3 users will be able to tailor their experiences based on factors that are more important or relevant to them. Thanks to AI’s ability to take clues from human behavior. Users could thus have distinctive experiences through the same platform, assisting businesses in serving a larger global audience.

Additionally, by utilizing AI-enabled gadgets that are linked to the internet, people can interact with vehicles, gaming systems, production equipment, and other previously isolated machines to enjoy. In which it allows more to connected experience through handheld gadgets or wearables like VR goggles.

AR and VR technologies will be essential for applications that let users “touch and feel” things online in order to enhance the visual experience.

Although there are many AI, VR, and AR products on the market, Web3 entrepreneurs must integrate them into their platforms in order to provide a future-ready experience . So, that they won’t be limited by geographical, cultural, or social boundaries.

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Top Companies Among The 40, which Are Investors In Blockchain And Crypto

According to a study by crypto intelligence platform Blockdata, the biggest publicly traded companies to invest in blockchain and cryptocurrency companies between September 2021 and June 2022 include electronics giant Samsung, technology behemoth Alphabet, and investment management company BlackRock.

These start-ups received nearly $6 billion from the 40 companies. However, it was unclear how much each company contributed to each project because multiple investors took part in some rounds.

In the biggest rounds, Samsung, BlackRock, and Alphabet all participated.

According to a breakdown of the rounds these companies took part in, BlackRock ($1.1 billion over three rounds) Alphabet ($1.5 billion over four rounds) and Samsung were the largest investors in the biggest funding rounds.

Around the same time, notable companies like Morgan Stanley, Samsung, Goldman Sachs, BNY Mellon, and PayPal also made investments in blockchain start-ups.

Blockdata’s cryptocurrency intelligence platform used the size of funding rounds as a surrogate for investor participation. According to Blockdata’s analysis, the parent company of Google contributed to funding rounds totaling $1.5 billion for four blockchain startups in the last 10 months.

Companies
Companies

The study’s investments would have been made in part during the cryptocurrency market slump brought on by the crash of TerraUSD in May.

Sundar Pichai, CEO of Alphabet, previously acknowledged that the business was looking into how to incorporate blockchain technology. And also into its services like YouTube and Google Maps.

During an earnings call, Pichai stated, “Anytime there is innovation, I find it exciting, and I think it is something we want to support the best we can. We at Google have benefited greatly from open-source technologies, so we do plan to contribute there, he said. “The web has always evolved and it will continue to evolve.

Alphabet In Blockchain

The investments made in the sector between September 2021 and June 2022 were led by US tech giant Alphabet. Google invests US$1.5 billion to make a splash in the blockchain market.
According to Cointelegraph, Alphabet, the parent company of Google, disclosed that between September 2021 and June 2022. And it invested US$1.5 billion in the blockchain industry. Blockdata identified Alphabet as the investor with the highest capital backing. When compared to the top 40 public companies that made investments in blockchain and cryptocurrency companies during the time period.

According to Cointelegraph, Alphabet invested in four blockchain companies. They are

Digital asset custody platform Fireblocks,

The Web 3.0 gaming company Dapper Labs,

The Bitcoin infrastructure tool Voltage, and

The venture capital firm Digital Currency Group.

In comparison to last year, these changes have made public .When Google funded 17 blockchain-based businesses with US$601.4 million, including Dapper Labs, Alchemy, Blockchain.com, Celo, Helium, and Ripple. With 6 billion dollars invested during the time compared to US$1.9 billion between Jan 2021& Sept 2021. And US$506 million in the entire of 2020. Google’s increasing investment has been considered consistent with the top 40 publicly traded companies.

BlackRock & Samsung Companies In Blockchain

With $1.17 billion raised, financial behemoth BlackRock (NYSE: BLK) was involved in the second-highest fundraising. With $10 trillion in assets under management, BlackRock made investments in Circle, a maker of USDC, Sam Bankman-FTX, Fried’s and Anchorage Digital, a platform for digital assets aimed at institutions.

According to Cointelegraph, additional corporate investors include the asset management firm BlackRock, which invested US$1.17 billion. The investment banking firm Morgan Stanley, which invested US$1.11 billion. The electronics manufacturer Samsung, which invested US$979.2 million

Samsung is the most active investor with 13 investments, followed by UOB (OTC: UOVEY), Citigroup Inc. (NYSE: NYSE:C), and Goldman Sachs Group Inc. (NYSE: NYSE:GS) with each having six and five, respectively.

The top companies that invested in blockchain startups during the same time period included PayPal Holdings Inc., Goldman Sachs, Samsung, BNY Mellon, and Morgan Stanley (NYSE: NYSE: MS) (NASDAQ: NASDAQ:PYPL).

Information On Investments

61 blockchain and cryptocurrency companies received funding over the course of 71 investment rounds. These blockchain companies are currently active in more than 20 industries and 65 use cases.

19 distinct companies offer non-fungible tokens (NFT) solutions and services.

Several of these businesses operate in industries like gaming, distributed ledger technology, and the arts and entertainment (DLT).

There are 12 marketplaces in total, some of which facilitate the exchange of NFTs.

Eleven businesses offer gaming services.

For the businesses that provide NFT solutions, marketplaces, and gaming, there is a significant amount of overlap between use cases.

Concerns About Big Tech’s Influence


Big Tech companies have come under fire in the past for abusing their power. The same concept that underpins cryptocurrencies also guides Web3 businesses. And they were created with the assumption that future businesses will exist entirely on the blockchain. A single organisation like Google or Facebook can’t rule them.

In a recent interview with Bloomberg, Yat Sui, the board chairman of Animoca Brands, called Microsoft and Meta’s empires “digital dictatorships.” Animoca, a significant blockchain investor itself, claims that its mission is to empower individuals with control over their digital assets and eliminate Big Tech’s hold over society.

Businesses that provide infrastructure, smart contract platforms, scaling solutions, Blockchain-as-a-Service (BaaS), and platforms for the custody of digital assets received the majority of the remaining investments. Additionally, data analysis showed that banks have started to expand their exposure to blockchain and cryptocurrency businesses. As the customer demand for these services rises, it supports the bank. The list of cryptocurrency investors includes banks like United Overseas Bank and Commonwealth Bank.

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CEO of Finblox, Hong Kong-Based Cryptocurrency Lender Provides Fintech Adoption

Finblox, a 2021-founded cryptocurrency investment Platform, raised $4 million to establish itself to a a rising star in Southeast Asia.

According to co-founder and CEO Peter Hoang, the Finblox company gives customers simple access to their wealth via cryptocurrencies.

This article is a part of Insider’s “Master Your Crypto” series, which aims to help investors become more knowledgeable and skilled cryptocurrency users.

Finblox is at the right place and right time.

Despite being based in Hong Kong, the platform serves Southeast Asia. In which there are a significant number of underbanked or unbanked residents (more than 70%), much like in Latin America.

Southeast Asia is home to more than 600 crypto-related businesses. In the last 18 months, VCs have invested an estimated $2.5 billion in them. Southeast Asia had an average of 3.56% crypto users in 2021 compared to 10% in the US. And nearly 10% of Singapore’s 5.7 million residents are crypto owners.

People can use the Finblox app to deposit cryptocurrencies like bitcoin or ether and earn interest. Then, financial institutions receive loans made out of those coins. According to CEO Peter Hoang, his business gives more than 25,000 users in more than 40 countries. And made an easier way to manage their money.

Previously constrained by the financial products available locally, they now have access to a global asset class . And they can invest alongside the rest of the world.

Finblox
Finblox

“We are still here”

Hoang, 34, attended the Smith School of Business at Queen’s University in Kingston, Ontario, in 2008, graduated from Singapore Management University in 2011, and attended Harvard Business School in 2018.

He cofounded a social network in 2009 to link Vietnamese communities globally, and in 2011, he established Space Jump Studios, a developer of mobile games.

Hoang graduated from the well-known Silicon Valley incubator Y Combinator, which supported the 2019 co-founding of Gotrade, a zero-commission stock trading app. Since 2021, he has been an investor at the Singapore-based XA Network.

In 2017, he developed a fascination for the crypto industry. About 25 people work for his company globally, and Hoang said he aims to lead by engaging with them.

The founders would step in to contribute and occasionally challenge the logic of the thoughts in a positive way, according to Hoang. “They have a lot of freedom to innovate and present their own ideas and strategies.”

There are two important factors driving adoption in Southeast Asia are the availability of cryptocurrencies and the promise of potential rewards. Hoang is confident Finblox will survive this crypto winter despite the gloomy predictions.

However, we can learn from our past errors, Hoang told Insider. “No one can accurately predict when and where the next black-swan event could happen.” We have survived numerous crises brought on by egregious financial institution failures and overreach, yet we are still alive.

“People Shouldn’t View This Asset Class As A Way To Get Rich Quick”

Dmitriy Paunin and Hoang founded the cryptocurrency investment platform in the middle of 2021, and it raised almost $4 million in funding in its first four months of operation. They received VC funding from companies like Sequoia, Saison, and Dragonfly, as well as from the failed Three Arrows Capital, or 3AC.

More than 23 different coins, including dogecoin and bitcoin, are available for lending or investing on Finblox. The third-largest gaming-related asset, Axie Infinity, which is based in Vietnam and is owned by Sky Mavis. It offers a yield of up to 60% and is worth $4.6 billion. On the remaining coins, the company promises yields ranging from 4% to 12%.

Similar operations were carried out by the massive crypto lender Celsius before it failed during the bear market. Additionally, the platform offered astounding interest rates and made news for stopping withdrawals, trapping customer funds in the app. It is currently the subject of debate.

Due to its exposure to the cryptocurrency hedge fund Three Arrows Capital, which collapsed when a significant stablecoin went haywire, Finblox itself was forced to impose $1,500 withdrawal limits, but not freezes, in mid-June.

Some users’ claims that cryptocurrency can be a shortcut to wealth irritate him.

Hoang claimed that “this has been repeated on Crypto Twitter, Reddit, and some well-known crypto influencers.” The adage “the higher the risk, the higher the return” and “time in the market is more important than timing the market.” It’s still apply to the cryptocurrency asset class, so people shouldn’t mistake it for a get-rich-quick scheme.

Hoang, however, asserted that consumers’ common sense and companies’ transparency can increase consumer confidence in cryptocurrencies.

According to Hoang, “reports, disclosures, educational articles, and communication can go a long way.” However, the community “does not have the power to control the risk tolerance or decisions of individual users.” And that responsibility always rests with the user.”

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The Ethereum Merge Has a Scheduled Start Date

The official specifications for the long-awaited Merge blockchain upgrade to a proof-of-stake consensus mechanism were made public by the Ethereum Foundation. The most popular blockchain, Ethereum, is about to undergo a significant protocol upgrade, switching from proof-of-work to proof-of-stake.

The upgrade will significantly alter the Ethereum network and could alter the popular blockchain’s investment outlook. Advisors should be ready to inform their clients about the transition as a result. This entails first educating them about what Ethereum is, including some of the fundamental network architecture. And also about how the switchover might affect their current cryptocurrency holdings.

What is Ethereum

Ether (ETH), the second-largest cryptocurrency after bitcoin (BTC), has a market cap of more than $180 billion at the moment.

Ethereum uses its own cryptocurrency, ether, to power its decentralized blockchain. The development of smart contracts on Ethereum is what underpins many of the most significant crypto initiatives, including non-fungible tokens, decentralized apps, and decentralized finance (DeFi) (NFT).

A proof-of-work (PoW) consensus mechanism, which rewards network users for resolving arbitrary mathematical puzzles, powers and secures Ethereum at the moment. The current PoW system pays Ethereum miners 2 ETH for each block that is mined, which happens roughly every 10–19 seconds.

What Will The Merger Achieve

The Ethereum Merge will significantly alter the tokenomics of the blockchain and switch Ethereum’s proof-of-work security mechanism to proof-of-stake (PoS).

Users stake their coins in exchange for the right to validate new transactions on the network. This powers the proof-of-stake consensus mechanism (currently used by many protocols, including Cardano).

With the new PoS system, validators rather than miners will protect Ethereum. When selected by the blockchain and verified by others, these validators will produce blocks, aiding in network security. Reward tokens will be distributed in ETH proportional to each validator’s stake whenever a new block is added to the network.

Even though operating an Ethereum validator will require a high level of technical expertise, many investors will be able to do so by staking in a pool or with a third party’s help. A validator must stake 32 ETH in order to take part in the validation mechanism, according to the network.

By “staking” their ether, validators will protect Ethereum. Though it takes 32 ETH to become a validator, the likelihood of being chosen by the network increases with the amount of ETH staked. The network chooses a staker and rewards the validator.

The “gas fees” users pay to conduct transactions on the blockchain are the transaction fees paid to validators. Sharding, a technical advancement that divides the Ethereum network into various pieces in order to speed up transactions and lower network fees, will be introduced as part of the PoS transition. Sharding will be implemented, which should reduce costs and speed up transactions.

The Impact Of The Merger On Supply

In contrast to any existing fiat currency, investors have long held that bitcoin’s supply cap of 21 million BTC is one of its strongest characteristics.

In this regard, Ethereum differs from bitcoin at the moment. Since the project’s inception, the rate of ether inflation has been steadily rising. While, many cryptocurrency enthusiasts have frequently cited as a drawback of Ethereum.

Historically, Ethereum has experienced much greater inflation than Bitcoin and has no theoretical supply limit. The foundations of Ethereum may alter with the anticipated upgrade.

The Ethereum upgrade will probably reduce the total supply of ETH and give token owners the chance to stake their tokens. The total market interest in Ethereum is likely to rise as a result of the anticipated yield from staking. And as an investor can take part in income generation for holding their ETH.

The second largest cryptocurrency will probably benefit from a reduction in the total supply of ETH. According to Christine Kim, a research analyst at Galaxy Digital, “Supply should decrease over time rather than increase. I believe that gives Ethereum’s case for investment as a store of value and an inflation hedge a major boost.

Effects of the Merger On Energy Efficiency

The Ethereum network will operate more effectively as a result of the merger. The PoS upgrade will significantly reduce the energy requirements of the Ethereum blockchain. And, as a result, the network’s overall energy consumption.

Instead of running expensive and inefficient mining equipment, those who want to secure the network will be able to run validator nodes.

Although from a network security standpoint PoW blockchains are very secure, the PoW consensus mechanism necessitates heavy energy consumption from miners. According to ConsenSys, a blockchain software company founded by Joseph Lubin, co-founder of Ethereum, the amount of electricity needed to secure the Bitcoin blockchain has a carbon footprint comparable to many small nation-states.

Many investors who care about the environment have spoken out against the energy use of PoW blockchains. Due to the rising popularity of ESG investing, many investors are now unable to fund initiatives that have a detrimental impact on the environment or the climate. PoS blockchains are significantly more energy-efficient than PoW blockchains and use a tiny fraction of the energy. The merger will make investments into ether more appealing to investors with stringent environmental standards.

They have expressed concern about the energy needs of PoW networks and are governed by environmentally conscious investment standards (ESG). While PoW networks are secure, Ethereum’s transition to PoS will probably satiate the stringent ESG requirement and open the market to new players.

Ethereum Merge
Ethereum Merge
Benefits Of The Merger In Practice

The Merge will have a huge impact on the cryptocurrency market. The switchover of Ethereum from PoW to PoS will demonstrate how energy-efficient a decentralized, permissionless network can be. A successful switch to PoW will probably rekindle interest in Web3 initiatives aiming to construct on top of the Ethereum network.

When we consider the overall state of the cryptocurrency markets, Web3 is currently experiencing a surge in popularity. Despite the general bear market in cryptocurrency prices, non-fungible tokens (NFT), decentralized finance, and decentralized apps (dapps) are all expanding significantly. As more developers continue to enter the blockchain space, venture investment into Web3 has increased.

The development of Web3 is being held back by two main issues.

1) Developing secure, decentralized, and energy-efficient blockchains that can be built upon

2) Attracting talent and developers to the area to aid in the construction of these ambitious projects.

In other words, due to the high transaction costs and environmental restrictions imposed by the current PoW mechanism, the Ethereum blockchain cannot support any more high-volume projects.

Many Web3 companies will be able to develop their projects on an incredibly efficient and secure network. And this is likely to address these concerns in a way that PoW networks have not been able to. The network’s increased effectiveness will offer a reliable and effective base upon which to build.

The merge improves nearly all Ethereum blockchain metrics . This will be like opening the door for new applications and experiments in the future. Millions of people have joined Ethereum thanks to its smart-contract capabilities. Further, it also generated billions of dollars for users and investors.

We have witnessed the development of numerous significant projects thanks to Ethereum’s capabilities, including:

Decentralized autonomous organizations (DAO)

Decentralized finance (DeFi)

Initial coin offerings (ICO)

Security token offerings (STO)

Non-fungible tokens (NFT)

Stablecoins

How Investors Can Get Ready

Ethereum’s transition to a PoS mechanism will change its tokenomics, increase its diversification, and reduce its energy needs.

To keep in mind that, Ethereum upgrade is still pending when contrasting the tokenomics of ether with those of bitcoin. Since the upgrade has been planned for years, there is a chance that it will be further delayed. And that it will probably take longer than expected, and that problems could possibly occur. The price of ether as well as bitcoin and other cryptocurrencies may suffer from announcements of additional delays.

In contrast, Bitcoin has the most secure blockchain in use and is incredibly transparent. Before the upgrade, investors who prefer less volatility might find Bitcoin to be a safer investment.

Several variables, especially the general market environment, will determine whether or not investors stand to gain by investing in ETH before the upgrade. Advisors should inform about the risks to investors. Though many features will have changed significantly. Investors will need to view an investment in Ethereum through a different lens than they have in the past. Assuming that the Ethereum upgrade is successful.

The biggest and most established cryptocurrency that supports smart contracts at the moment is Ethereum. In which, is currently the second-largest cryptocurrency by market cap, just after bitcoin. There are many blockchains that compete with Ethereum, including Solana and Cardano. These networks for programmable smart contracts already use the PoS mechanism and are attempting to draw in new users. A successful implementation will guarantee that Ethereum stays the top smart-contract network. And set it up for future expansion.

The Ethereum Merge Has an Official Start Date

The Ethereum Foundation has made the long waited Merge blockchain upgrade public.

Proof-of-stake is a technique for preserving a blockchain’s integrity that prevents cryptocurrency users from minting coins they haven’t earned. It uses less energy than Ethereum’s current proof-of-work architecture. On September 6, the Bellatrix upgrade will go into effect on the Beacon Chain. The upgrade launches the remaining steps in the merging process.

After that, the value of the Terminal Total Difficulty (TTD) that causes the Merge to occur is 58,750,000,000,000,000,000. The TTD expects to reach between September 10 and September 20. The Ethereum developers have hinted that they are aiming for September 15–16 in previous calls.

During this time, the level of difficulty will rise to the point where proof-of-work crypto mining will eventually become impossible.

The network will combine its Execution layer with the new Consensus layer and switch to the new proof-of-stake consensus protocol when TTD reaches 58,750,000,000,000,000,000.

The Merge follows a series of dress rehearsals where proof-of-work to proof-of-stake transitions and tested on various test network (testnet) environments, such as Ropsten, Sepolia, and Goerli.

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Bitcoin Depot, a Cryptocurrency ATM, Announces Plans to List As $885 Million SPAC

Bitcoin Depot has announced its backdoor listing plans on the Nasdaq by the first quarter of 2023 the cryptocurrency ATM operator said in a statement. By merging with special purpose acquisition company (SPAC) GSR II Meteora at an estimated equity value of US$885 million.

It is one of the largest cryptocurrency ATM network and it is an INC 5000 company. Bitcoin Depot allows users to instantly buy and sell Bitcoin and more than 30 other cryptocurrencies at thousands of locations across the United States.

Its goal is to offer the fastest, safest, and most convenient cryptocurrency transaction. Our goal is to open up the cryptocurrency market to the general public.

Quick Info About Bitcoin Depot

According to the company, more than 7,000 kiosks in 47 U.S. states and nine Canadian provinces offer users the ability to exchange cash for cryptos.

According to data from Coin ATM Radar, there are about 38,746 cryptocurrency ATMs spread across 77 countries. For users who may not be familiar with cryptocurrency exchanges, bitcoin ATMs can act as on-ramps.

Although Hong Kong, which has the most Bitcoin ATMs in Asia, faces regulatory obstacles, crypto ATMs may not have as promising a future in the region’s financial hubs.

Singapore has also issued regulations that forbid companies from offering actual crypto ATM services in open spaces. Through a $885 million SPAC deal, Bitcoin Depot will list in the United States.

Bitcoin Depot
Bitcoin Depot

The deal will raise up to $321 million in cash, which will be kept in GSRM’s trust account. It will use the money to support working capital, complete acquisitions, and expand its platform and product line. According to a statement, the combined company will have an equity value of $885 million. A debt value of $755 million, and up to $170 million in cash proceeds from the deal, assuming no redemptions. The 2016-founded Bitcoin Depot is a North American bitcoin ATM operator that offers users the ability to exchange their fiat currency for bitcoin, ethereum, and litecoin.

Bitcoin Depot Offers

QUICK, SIMPLE, AND SECURE
You can quickly and easily verify your account, allowing you to start your cryptocurrency transactions without delay.
SECURITY
Bitcoin Depot doesn’t take ownership of your crypto. As a result, transactions are safer and you have a wider selection of cryptocurrency wallets.

DIFFERENT TRANSACTION MODELS
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Expert Says, Cryptocurrency May Be More Centralized And Less Anonymous As You Think

One of the main benefits of cryptocurrencies like bitcoin was their anonymity, which allowed users to transfer money without the involvement of a bank or the government.

However, according to one expert, the opposite is actually true, and we are actually witnessing some degree of centralization.

Eswar Prasad, an economist at Cornell University and the author of “The Future of Money: How the Digital Revolution is Transforming Currencies and Finance,” said on Yahoo Finance Live that “we could end up rather than having decentralization and more anonymity being led to a world where big corporations. And perhaps central banks, have even more visibility into our financial transactions.”

Prasad claimed that as central banks consider issuing their own digital currencies, the cryptocurrency industry may become more centralized. He claimed that digital currencies issued by central banks could weaken the case for many other private cryptocurrencies.

Cryptocurrency May Be More Centralized

According to Prasad, central bank digital currencies may end up providing governments or central banks acting as their agents with tools for monitoring both the economic and financial lives of their citizens.

Additionally, it goes beyond the potential intrusion of the government. Stablecoins are now more often issued by specific issuers and less frequently on decentralized platforms, according to Prasad.

Stablecoins, which are fiat currencies are backed by fiat currencies, could become very popular in the future if they are built on top of already established social media platforms.

More Centralized Crypto Being Less Anonymous

He claimed that even though setting up your own trading platform account and digital wallet, it gives you a little bit more anonymity than doing so on a centralized exchange. It’s still very challenging to conceal your identity if you use these cryptocurrencies frequently.

Anonymity
Anonymity

He claimed that the main benefit of these digital currencies was no longer anonymity. The relative lack of anonymity in crypto has a benefit, in Prasad’s opinion. He insisted that it indicates that the use of bitcoin for nefarious transactions has decreased over time. Prasad emphasized that if bitcoin is used extensively or to buy real goods, the FBI will be able to track transactions . And can link digital identities to real identities.

Crypto , Becoming More Centralized

As central banks look to issue their own digital currency, Prasad warned that cryptocurrency may become more centralized. He continued by saying that digital currencies issued by central banks could weaken the case for many other private cryptocurrencies. This might include online payment systems.

With cryptocurrency, our financial transactions may be more transparent. Furthermore, it is doubtful that only the government will attend. Stablecoins are now more often issued by specific issuers and less frequently on decentralized platforms, according to Prasad.

Since stablecoins are backed by fiat money, he said, “one can imagine a world in which they are of stable value, gaining a lot of traction if they are built on top of existing social media platforms or commercial platforms, such as Amazon or PayPal.”

If you use these cryptocurrencies frequently, keeping your identity afloat is still important and very challenging too. He claimed that the main benefit of these digital currencies was no longer anonymity. However, expert says that the opposite is true and that we are actually witnessing some centralization.

we might, somewhat paradoxically, create a world where big businesses and perhaps central banks enjoy greater anonymity than we do. Even more information about financial transactions is visible.

Prasad asserts that there is a benefit to cryptography’s relative lack of anonymity. The use of bitcoin for nefarious transactions has decreased, he continued, compared to earlier. And can connect digital identities to real identities, but much more challenging than some people think.

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