Unlocking Bitcoin’s Programming Potential: The Rise of Spiderchain

Ken Jacobs on September 25, 2023

In recent weeks, the cryptocurrency community has been abuzz with discussions surrounding Bitcoin drivechains, a concept aimed at enhancing the capabilities of the Bitcoin network. Amid this debate, another project has been steadily gaining momentum, promising to unlock the network’s programming potential. This project, known as “Spiderchain,” is attracting attention and intrigue from experts and enthusiasts alike.

Spiderchain: A New Proposal for 2-Way Pegged Sidechains

A sidechain, in the realm of cryptocurrencies, is a distinct blockchain closely linked to the main Bitcoin network. These sidechains typically share Bitcoin’s native currency, BTC, and may harness the security features inherent in the Bitcoin network. Sidechains offer Bitcoin users access to additional functionalities that the main network may not readily provide, including scalability, programmability, and enhanced privacy.

However, one significant challenge associated with sidechains is establishing a “2-way peg,” a mechanism that enables the secure transfer of BTC between the main network and the sidechain without the need for a centralized intermediary.

This is where Spiderchain, developed by Botanix Labs, emerges as a game-changer.

The Spiderchain’s Unique Approach

Willem Schroé, the founder of Botanix Labs, describes Spiderchain as a “Proof of Stake Layer 2 on Bitcoin.” This innovative system allows users to stake Bitcoin on Bitcoin within decentralized multisignature wallets.

The key players in managing these decentralized multisignature wallets are known as “orchestrators.” These orchestrators operate both a Bitcoin node and a Spiderchain node. Each time a request is made to transfer BTC to the Spiderchain, a new multisignature wallet is created, controlled by a random subset of 100 participants within the staker set.

Similarities to Ethereum

Spiderchain operates in many ways akin to Ethereum. It is compatible with the Ethereum Virtual Machine (EVM), boasts 12-second block times, and employs a proof of stake consensus mechanism for network security. Orchestrator nodes are required to stake BTC as part of their participation.

Furthermore, Spiderchain’s EVM is “fully equivalent,” allowing for a seamless transfer of existing Ethereum decentralized applications (dApps) to the network. Notably, Spiderchain enhances security by preventing a malicious majority of orchestrators from conspiring to steal users’ BTC.

No Need for Bitcoin Code Changes

A distinguishing feature of Spiderchain is its compatibility with the current Bitcoin core. Unlike some other proposals, such as Paul Sztorc’s drivechain, Spiderchain does not necessitate a soft fork or upgrade. This sets Spiderchain apart, as it can be implemented without requiring changes to the Bitcoin code that users and miners currently employ.

Comparison with Drivechains

Drivechains, introduced as BIP 300 and BIP 301 in 2015, offer a different approach. They place control of pegged BTC in the hands of Bitcoin miners while enabling the creation of numerous sidechains with diverse properties. Drivechains also leverage Bitcoin’s security through merge mining.

Notably, when asked about Spiderchains, Sztorc expressed reservations, deeming them “very complex” in comparison to his proposal. He also challenged the notion that Spiderchain requires changes to Bitcoin, likening it to installing an app on a phone rather than a network-wide upgrade.

Technical Considerations and Challenges

In a Monday blog post, Jameson Lopp, co-founder and CTO of Casa, raised technical concerns about Spiderchain. One notable concern is the risk that the BTC peg could be “broken” if the main Bitcoin blockchain experiences a reorganization longer than five blocks, due to how Spiderchain orchestrators are selected. However, Lopp suggested that the dispersion of funds across multiple multisignature wallets could mitigate potential catastrophes.

Schroé acknowledged that in the early stages, Spiderchain may be somewhat centralized until more users participate in staking their BTC. He emphasized the need to begin with a permissioned staking model.

Takeaway

Spiderchain represents a promising venture in the realm of Bitcoin sidechains, offering unique features and compatibility with the current Bitcoin core. While technical challenges exist, its potential to enhance the Bitcoin network’s capabilities and security is intriguing. As the project progresses, it will be fascinating to see how Spiderchain’s innovative approach impacts the cryptocurrency landscape.

Exploring Hal Finney’s Insights on Zero-Knowledge Proofs in Rediscovered 1998 Footage

Sarah White on September 25, 2023

In a fascinating rediscovery, a video featuring the late software developer and Bitcoin pioneer, Hal Finney, discussing zero-knowledge protocols from a quarter-century ago has recently emerged on Twitter. This video, originating from the 18th annual International Cryptology Conference at the University of California, Santa Barbara in 1998, sheds light on the early roots of zero-knowledge proofs and their significance in the world of cryptocurrency. Let’s delve into the details of this intriguing historical footage.

The Emergence of Zero-Knowledge Proofs

Hal Finney’s Perspective

Hal Finney opens the discussion with a compelling statement: “I want to prove to you that I know a message that hashes to a given hash value using the SHA-1 hash. I don’t want to reveal anything about the message to you.” This concept he introduces is known as a zero-knowledge proof, a cryptographic technique that allows one party to prove knowledge of a piece of information without disclosing the information itself.

Zero-Knowledge Proofs: The Origin

Credits to Ronald Cramer and Ivan Damgard

During his presentation, Hal Finney acknowledges the pioneers of the zero-knowledge proof system, Ronald Cramer and Ivan Damgard. These visionaries had just presented their groundbreaking work, titled “Zero-knowledge proofs for finite field arithmetic,” at the same conference. Finney commends their innovation, describing it as “very efficient and quite flexible.”

Zero-Knowledge Proofs in the Crypto Landscape

Securing and Scaling Blockchains

In today’s cryptocurrency landscape, zero-knowledge proofs play a vital role in enhancing the security and scalability of blockchain networks. These proofs find prominent application in a concept known as “rollups.”

Rollups: Scaling Solutions for Blockchains

Optimistic vs. Zero-Knowledge Rollups

Rollups are a crucial scaling solution that consolidates multiple transactions into a single transaction presented to the blockchain. There are two primary types of rollups: Optimistic and Zero-Knowledge.

Optimistic Rollups: These assume the validity of all rolled-together information while allowing observers to contest any transactions. They are then submitted to Ethereum network validators for verification and correction if necessary.

Zero-Knowledge Rollups (zk-rollups): In contrast, zk-rollups rely on zero-knowledge proof cryptography, enabling the mathematical verification of specific details without revealing additional information. For instance, one can prove their age without disclosing their birthdate.

Hal Finney: A Bitcoin Pioneer

An Insight into His Legacy

Hal Finney, born in California in 1956, made significant contributions to the early days of Bitcoin. He passed away in 2014, but his legacy endures. Notably, Finney’s involvement in the cryptocurrency world included claims of running Bitcoin in its early stages, making him a prominent figure in the crypto community.

The Mystery of Satoshi

Was Hal Finney Satoshi?

Finney’s connection to Bitcoin goes even deeper, as he received the first-ever Bitcoin transaction from the pseudonymous creator, Satoshi Nakamoto. This has sparked speculation within the Bitcoin community about Finney’s potential role as Satoshi Nakamoto or at least a key contributor behind the pseudonym.

A Revived Legacy

Rediscovering Hal Finney

Interestingly, at the end of the previous year, Hal Finney’s Twitter account, which had been dormant for a decade, came back to life, with his widow using it to prevent its removal by Elon Musk.

Early Glimpses of NFTs

Hal Finney’s Forward-Thinking Vision

Remarkably, Hal Finney’s insights extended beyond cryptocurrencies. He referred to the concept of non-fungible tokens (NFTs) two decades before they gained mainstream recognition, showcasing his visionary thinking.

Visa’s Crypto Expansion: Leveraging USDC on Solana for Faster Payments

Ken Jacobs on September 25, 2023

A Shift in Visa’s Crypto Quest

Visa, the global payments giant, continues its relentless pursuit of crypto innovations. In its latest move, Visa is delving into the world of stablecoins and blockchain technology, specifically USDC (USD Coin) and Solana. This strategic shift is poised to revolutionize cross-border payments and settle transactions with unprecedented speed and efficiency. Let’s delve into the details of Visa’s ambitious crypto venture.

Visa’s Crypto Ambitions: A Prelude to Innovation

Visa has reaffirmed its commitment to crypto with a bold expansion into the stablecoin territory. By collaborating with merchants, Visa aims to facilitate the movement of substantial sums in USDC, which currently stands as the sixth-largest digital asset with a staggering $26 billion market capitalization, as reported by CoinGecko. Furthermore, this development has had a positive ripple effect on Solana’s native token, SOL, which experienced a 4% surge upon this groundbreaking announcement.

Redefining Settlements: A Game-Changing Approach

Visa is leaving no stone unturned in its quest for innovation. The company is collaborating with merchant acquirers Worldpay and Nuvei to revolutionize settlements. Instead of traditional fiat currencies, these merchants will now have the option to settle transactions in USDC. But what exactly is a “settlement”?

In the realm of finance, a settlement refers to the process through which an issuing bank transfers funds from a cardholder’s account to the bank responsible for accepting card payments on behalf of the merchant. By adopting USDC for settlements, Visa is ushering in a new era of efficiency and reliability.

The Power of Stability: Understanding USDC

USDC, short for USD Coin, is a stablecoin, which means it is pegged to a stable asset – in this case, the U.S. dollar. Circle, the mastermind behind USDC, holds a reserve of dollars to back every USDC token in circulation. These stablecoins play a pivotal role in the crypto world by allowing traders to exit transactions when immediate access to traditional fiat currencies held in a bank is not feasible.

Visa’s Vision: A Modern Approach to Cross-Border Settlements

Visa’s Head of Crypto, Cuy Sheffield, envisions a future where stablecoins like USDC and robust blockchain networks like Solana and Ethereum collaborate seamlessly to enhance the speed of cross-border settlements. This innovation opens up modern avenues for Visa’s clients to effortlessly send or receive funds from Visa’s treasury.

A History of Crypto Ventures: Building Momentum

Visa’s foray into the crypto domain has been marked by ambition and resilience. The company initially planned to introduce crypto debit cards in 40 countries in partnership with the now-defunct crypto exchange, FTX. While the project seemed to stall following FTX’s bankruptcy, Visa rekindled its crypto ambitions earlier this year by advertising a senior software developer position for its crypto team.

Pioneering Ethereum Solutions and Beyond

In a testament to its commitment to innovation, Visa recently unveiled an experimental solution on Ethereum that enables users to pay gas fees using their credit or debit cards. This initiative showcases Visa’s determination to stay at the forefront of blockchain technology.

Solana: The Powerhouse Behind the Innovation

Solana, the blockchain that underpins SOL (Solana’s native token), stands as the 10th largest digital asset by market capitalization. Developers are increasingly turning to Solana to build decentralized applications (DApps) and mint NFTs (Non-Fungible Tokens), mirroring the trends seen on Ethereum.

Visa’s Vision for Ethereum: Streamlining Gas Fee Payments with Credit or Debit Cards

Last month, Visa unveiled an experimental solution on the Ethereum blockchain, aimed at simplifying the process of paying gas fees using Visa credit or debit cards. This innovative initiative promises to enhance the user experience and make decentralized applications (dApps) more accessible. Let’s explore the details of this groundbreaking endeavor.

Revolutionizing Gas Fee Payments: Visa’s Ethereum Experiment

Visa’s relentless pursuit of innovation has led to a pioneering experiment on the Ethereum blockchain. In a groundbreaking move, Visa has successfully conducted tests allowing users to cover Ethereum gas fees seamlessly using their Visa credit or debit cards. This marks a significant step toward simplifying interactions with dApps on the Ethereum network.

A Glimpse into the Test Environment

This successful test was carried out during an internal hackathon on the Ethereum Goerli testnet. Goerli serves as a replica of the Ethereum mainnet, designed specifically for testing purposes. Visa’s decision to conduct this experiment on Goerli underscores its commitment to meticulous testing and development.

Paving the Way for User-Friendly Digital Transactions

Visa’s innovative solution is not just about making transactions easier; it’s about redefining the entire digital transaction experience. According to Visa, this trial is a crucial step toward creating a more accessible and user-friendly approach to digital transactions. It seeks to eliminate the complexities associated with gas fee management and empower users to navigate the Ethereum ecosystem effortlessly.

Challenges Addressed: Simplifying Gas Fee Payments

Traditionally, Ethereum users had to acquire ETH from exchanges or on-ramp services and then transfer these coins to their wallets to cover fluctuating gas fees. This process often led to overspending or insufficient ETH balances, creating hurdles in conducting transactions. Visa’s initiative aims to eliminate these challenges and streamline the user journey.

Technological Marvels Behind the Experiment

Visa’s technical team leveraged cutting-edge technologies to bring this experiment to life. Key components include:

Paymaster Smart Contract Agreement: This smart contract agreement plays a pivotal role in enabling seamless transactions and managing gas fees efficiently.

Account Abstraction: Visa’s innovation goes beyond traditional crypto wallets. It transforms them into “smart contract wallets,” offering advanced features such as gasless transactions, batch transactions, and social recovery.

ERC-4337 Standard: This Ethereum standard outlines a specific approach for implementing account abstraction within cryptocurrency wallets, adding a layer of sophistication to the entire process.

Bridging the Bitcoin Gap: LNMesh Paves the Way for Offline Lightning Network Payments

Stephen Cook on September 25, 2023

Imagine a world without internet access, where the digital realm suddenly fades away. You can’t browse your favorite websites, check your social media, or even make those quick Bitcoin payments.

The absence of an internet connection can be daunting, especially when you rely on digital currencies. However, in the realm of Bitcoin and the Lightning Network, researchers have unveiled an ingenious solution to this conundrum – the LNMesh. In this article, we’ll delve into the fascinating world of LNMesh and how it opens up the possibility of offline Lightning Network payments.

The Quest for Internet-Free Bitcoin Payments

In scenarios like natural disasters or regions with intermittent internet access, the need for alternative payment methods becomes crucial. Wireless computer researcher Ahmet Kurt pointed to the 2017 hurricane in Florida as a glaring example. During the massive power outage, the inability to make electronic payments posed a significant challenge. This predicament triggered the quest for a solution.

LNMesh: A Beacon of Hope

Researchers from Florida International University, specializing in post-disaster research, embarked on a journey to explore sending payments over Bitcoin’s Lightning Network without the need for internet access. The Lightning Network, touted as the future of digital currency, offers speed and cost-efficiency compared to traditional Bitcoin transactions.

Building Bridges with Mesh Networks

The key to this innovation lies in local “mesh networks.” Instead of relying on the internet, nodes are interconnected directly via Bluetooth and WiFi, creating a localized Lightning Network – LNMesh.

Promising Results

The research findings are promising. Under the right conditions, offline Lightning Payments are entirely feasible. The research paper explains that their proposed approaches can achieve success rates of up to 95 percent on large mobile wireless mesh networks, provided Lightning channels have sufficient liquidity.

The Experiment

The researchers’ experimentation journey began with setting up a network of Bitcoin and Lightning nodes, the fundamental components of the digital currency world. These nodes were implemented using affordable Raspberry Pis, small standalone computers. However, the twist was in how they interconnected these nodes – not through the internet but via a local mesh network using WiFi and Bluetooth.

Surprisingly, even under these modest circumstances, they successfully conducted Lightning payments between the nodes.

The Magic of Off-Chain Payments

The Lightning Network protocol allows offline payments to settle. Since these payments are off-chain and not recorded on the Bitcoin blockchain, nodes can communicate through wireless technologies like WiFi or Bluetooth to perform offline LN payments.

Open Source Opportunity

For those eager to explore further, the researchers have generously open-sourced their code and results, inviting others to experiment with this groundbreaking concept.

Async Payments vs. LNMesh

It’s essential to distinguish this research from past studies on asynchronous payments, which enable online nodes to send payments to temporarily offline nodes, improving the user experience on the Lightning Network. LNMesh, on the other hand, takes it a step further. It demonstrates how Lightning can function when all nodes are offline, relying solely on WiFi and Bluetooth for transactions.

The Coordination Challenge

While LNMesh showcases the possibility of offline Lightning payments, the challenge lies in coordinating these channels effectively. The research paper addresses the issue of determining who should open channels with whom in a community where internet access is limited. Analyzing users’ mobility patterns and their proximity to Lightning nodes, merchants, or markets becomes crucial for making informed decisions about channel openings.

The Road Ahead

In the future, such coordination could potentially be automated, but there’s still work to be done to make Lightning payments seamless and practical in offline scenarios.

Takeaway

LNMesh, with its innovative use of mesh networks and off-chain Lightning payments, offers a glimmer of hope for Bitcoin enthusiasts in internet-challenged environments. While it presents exciting possibilities, the road to making offline Lightning payments a seamless reality remains an ongoing journey.

BitBoy Crypto Founder, Ben ‘BitBoy’ Armstrong, Ousted Amid Controversy

Karla Perry on September 25, 2023

A Notable Exit from BitBoy Crypto

In a dramatic turn of events, Ben Armstrong, the creator behind the influential BitBoy Crypto brand, has been removed from the company that he played a pivotal role in establishing. The company, known for its significant presence in the cryptocurrency space, recently made a public statement confirming Armstrong’s departure.

Legal Action and Serious Allegations

The decision to part ways with Armstrong was driven by BJ Investment Holdings, the parent company of the prominent Hit Network, which houses BitBoy Crypto. This decision was reinforced by decisive legal measures, and the removal was publicly announced through the brand’s official Twitter account.

Unconfirmed Allegations Raise Eyebrows

BitBoy Crypto’s statement alluded to the existence of “difficult” reasons for Armstrong’s removal. These reasons include personal allegations that cast a shadow on Armstrong’s character. Importantly, these allegations have not been substantiated by Armstrong himself, leaving room for speculation and uncertainty.

Hit Network’s Impactful Role

Hit Network, described as a creator-driven media network, has a multifaceted approach to content creation. It collaborates with diverse brands to offer informative and entertaining content spanning cryptocurrency, entrepreneurship, gaming, music, and sports. Within this network, BitBoy Crypto stood out as the premier brand, as stated on the official website.

CEO Addresses the Dismissal

TJ Shedd, the CEO of Hit Network, weighed in on Armstrong’s removal during a YouTube livestream. Shedd emphasized that the decision to remove Armstrong was also intended to address the emotional, physical, and financial repercussions inflicted upon Hit Network’s employees and the BitBoy Crypto community.

Armstrong’s Response and Uncertainty

Despite the announcement of his departure, Armstrong remained tight-lipped in the immediate aftermath. Decrypt reached out for his commentary, yet received no immediate response. The situation became more intriguing when a post on the BenCoin Twitter account attributed to Armstrong hinted at internal turmoil within BitBoy Crypto and Hit Network.

Community Reaction and Controversy

The news of Armstrong’s removal sparked a range of reactions within the crypto community across various social media platforms. During the YouTube livestream, viewers voiced their discontent with the decision, with some even demanding Armstrong’s return. Meanwhile, on Reddit, a post titled “End Of An Era? – Ben Armstrong” evoked both enthusiastic cheers and skepticism, showcasing the diversity of sentiments.

Armstrong’s Legal Woes

Armstrong’s exit from BitBoy Crypto coincides with his involvement in a class action lawsuit alongside other notable figures. The lawsuit revolves around allegations of promoting a now-defunct crypto exchange, FTX. Subsequent to the lawsuit’s filing, Armstrong found himself entangled in additional controversy, as he was accused of harassment, including making “daily violent threats” through phone calls and emails.

Lawsuit Involving FTX: A Star-Studded Controversy

The Allegations Unveiled

In November of 2022, a group of investors associated with the beleaguered cryptocurrency exchange FTX brought forward a lawsuit that has sent shockwaves through the industry. This legal action, with an impressive roster of plaintiffs including Larry David, Tom Brady, Giselle Bundchen, Steph Curry, Shaquille O’Neal, Naomi Osaka, and others, contends that FTX operated akin to a “Ponzi scheme.”

Unraveling the Alleged Scheme

As per claims detailed in the Hollywood Reporter, the lawsuit asserts that FTX adopted a modus operandi that mirrors a Ponzi scheme. This strategy allegedly involved utilizing capital from new investors to settle obligations owed to earlier investors, thereby perpetuating the appearance of liquidity within the exchange. The heart of the lawsuit also centers on the characterization of FTX’s interest-bearing accounts as securities. Such a classification would potentially necessitate endorsers to disclose their compensation from the company.

The Conspiracy Unearthed

In December, another lawsuit rocked the cryptocurrency sphere, this time implicating Yuga Labs, the parent company of the NFT series Bored Ape Yacht Club. The allegations put forth in this legal action assert that Yuga Labs colluded with celebrities in an attempt to defraud prospective investors. The lawsuit, documented in a report from Variety, paints a picture of a complex web of celebrity involvement in the alleged conspiracy.

Celebrity Involvement and Allegations

The lawsuit, filed on December 8 in a federal district court in Los Angeles, encompasses a staggering 37 defendants, among whom are the likes of Kevin Hart, Gwyneth Paltrow, Madonna, Justin Bieber, Serena Williams, Jimmy Fallon, Paris Hilton, Snoop Dogg, The Weeknd, Post Malone, and Curry. The lawsuit also highlights the involvement of Amy Wu, who recently disassociated from the embattled cryptocurrency exchange FTX. Wu had served as a consultant and board member of ApeDAO.

Interpreting the Allegations

In both the FTX and Yuga Labs cases, plaintiffs assert a diverse array of claims. These claims span across federal laws and state statutes, with each aiming to address various aspects of financial product promotion. Additionally, some lawsuits reference state laws that address unfair business practices, further underscoring the complexity of the legal landscape surrounding these allegations.

Implications and Considerations

The confluence of celebrity endorsements and the cryptocurrency domain has led to a legal battleground where allegations of fraudulent schemes and deceptive practices are being vigorously contested. As these lawsuits unfold, they shed light on the intricate relationships between fame, finance, and the ever-evolving regulatory frameworks that govern them. These cases not only raise questions about the responsibilities of endorsers but also underscore the need for transparency and accountability in the dynamic world of cryptocurrency.

Proof renews focus with art as the goal

Karla Perry on September 25, 2023

Proof — It’s been over a year since NFT project Moonbirds released their collection, and the scene has shifted dramatically.

Proof co-founder and CEO Kevin Rose was seen outside a gallery set up by the project during NFT NYC 2023 week.

There, he explained why his Web3 firm recently moved its focus to the art sector, with a greater emphasis on digital art, artists, and collectors.

“When everything is just ‘up and to the right’ and crazy and chaotic – like the whole crazy run-up that we saw [in the NFT market] – it’s easy to lose your north,” he said.

“Because you’re just running, running, running, running, and you’re so busy with all the chaos that you don’t have time to sit down and say, ‘Okay, what do we really stand for?’”

Rise to the top

Kevin gained fame in the Web2 space after co-founding Digg.

He eventually joined Google as part of an acqui-hire before going on to work as a venture investor with Google Ventures and then True Ventures.

Working in the realm of Web3 and constructing in the open has been a shock to the system, according to Rose.

“No one’s been a part of something like this that’s been this much of a roller coaster like that,” he said regarding the NFT market.

“Out of, say, the stock market in general – but even that is way more defined and more stable than what this has been.”

He also mentioned that for every NFT collector who purchased an asset low and sold it high, there is someone on the other side who purchased at the top and may be dissatisfied.

Proof cannot control market fluctuations, but one of the lessons learned in the last year is how and when to communicate with collectors.

“As an entrepreneur, it’s a really weird dynamic,” Rose admitted.

The Moonbirds mint

Since its April 2022 mint, proof has had an up and down year.

The Ethereum-based profile photos (PFP) NFTs had tremendous demand during their initial two days of operation, earning around $280 million in transactions.

Proof then generated additional money from the widely anticipated debut, as well as months thereafter.

With lofty goals, the business soon increased its personnel.

However, the NFT market suffered a setback soon after the mint.

Several holders disagreed with Proof’s decision to open-source Moonbirds artworks, allowing anyone to use and commercialize the works.

Some of the firm’s plans were thwarted.

For example, the 2023 Proof of Conference event was canceled due to insufficient interest.

A Project Highrise “social universe” platform was proposed, however it was subsequently canceled.

“It’s a lot of work to do,” said Rose. “Great businesses take many years to be built, it turns out. It can’t be done in less than a year.”

“I know we get some shit sometimes… [but] building in public is really difficult.”

“And so, if you show all your dirty laundry, your community has to be willing to understand that it’s messy along the way.”

Advice and new focus

Ben Horowitz, mentor and co-founder of venture capital firm Andreessen Horowitz, formerly advised Kevin Rose.

According to Horowitz, “it’s better to be right than consistent.”

Proof would benefit from narrowing its attention to digital artwork and collecting.

Projects that were not progressing well or did not support the firm’s focus would have to be cut.

During NFT NYC, the renewed focus manifested itself in Proof organizing exclusive events for collectors using its resources and connections.

The gallery show

“Evolving Pixels,” a gallery show, was hosted at Venus Over Manhattan.

Emily Xie, a generative artist who developed “Memories of Qilin” on Art Blocks, organized the exhibition.

Evolving Pixels also includes works by generative and AI-assisted artists.

Proof, according to Rose, was already focusing on curation with a point of view.

Its unique Grail mints for Proof Collective NFT holders are a demonstration of its commitment.

However, it also wanted to go beyond its own ranks and collaborate with other notable curators.

Proof also hosted a private event for 400 of its community members, which included Mike “Beeple” Winkelmann, the artist who created the top NFT sale.

Beeple made a piece of artwork live while receiving public input.

Only ten of the artworks were minted as NFTs and were later distributed to select attendees.

NFT NYC 2023

The main NFT NYC 2023 event felt more muted than the 2022 version.

Several side events hosted by projects, communities, and startups, on the other hand, maintained the spirit and peak excitement surrounding Web3.

According to Rose, the atmosphere at the events he arranged or attended remained positive, but he admitted that the NFT bear market was still on practically every creator’s mind.

“Holy shit have the last few months been tough, right? Every NFT collection has been impacted in some way,” said Rose.

“But we’re finally getting to a place where I think we’re kind of bottoming out, and people are like, ‘Okay, these are the people that are going to continue to build this space, and they’re going to be for the next decade to come.’”

Ethereum futures could come by October, courtesy of the SEC

Stephen Cook on August 28, 2023

Ethereum futures — There is a shift in the air, and the crypto world, with Ethereum at the core, is going to gain a huge boost.

According to rumors, the US Securities and Exchange Commission is poised to approve Ethereum futures exchange-traded funds, or ETFs. While there is no set timeline, the major migration is scheduled to take place in the next months.

The news

Unnamed sources close to the case told Bloomberg that the agency is unlikely to reject the applications of more than a dozen enterprises. The businesses listed below have recently applied:

Bitwise
ProShares
Valkyrie
Volatility Shares

Instead of gaining direct spot exposure, the ETF would be able to track Ethereum futures prices traded on the Chicago Board of Trade. Although it is uncertain if individual ETF applications would be granted, officials are thought to be leaning toward approving some filings as early as October.

ProShares confirmed receipt of their application with the following statement:

“We are in the quiet period and, due to Securities and Exchange Commission regulations, are not allowed to discuss products currently in the registration period with the SEC.”

Ethereum futures applications

Over the last couple of weeks, the SEC has been working on a dozen applications for Ethereum futures ETFs.

A few companies are likely to be first in line for a prospective launch before others, with the debut date planned for October 3. One of those likely to lead the debuts is Valkyrie’s dual Bitcoin and Ether Strategy ETF, a proposed conversion of the financial services firm’s current Valkyrie Bitcoin Strategy ETF.

Bitwise

Bitwise reapplied for its Ethereum Strategy ETF at the beginning of the month.

ETHG wants to invest in cash-settled, front-month contracts with a brief maturity and ETH futures contracts with no immediate exposure to Ethereum’s spot price, according to the filing.

It further said that the fund will not directly participate in ETH futures contracts since investments would be managed through a wholly-owned subsidiary in accordance with Cayman Islands law.

Proshares

The ProShares Ether Strategy ETF and the Short Ether Strategy ETF are two Ethereum-focused ETFs proposed by ProShares.

The Short Ether Strategy ETF seeks daily investment results that are the inverse of the S&P CME Ether Futures Index. Meanwhile, the ProShares Ether Strategy ETF pursues capital appreciation through investments in CME-listed Ether futures contracts.

Valkyrie

Valkyrie provided an update to its Valkyrie Bitcoin Strategy ETF on August 4, expressing plans to convert it into a dual Bitcoin and Ethereum futures ETF that would invest in front-month Bitcoin and Ether futures contracts.

According to the definitive materials in the filings:

“Notwithstanding anything to the contrary in the Fund’s Summary Prospectus, Prospectus or Statement of Additional Information, on or around October 3, 2023, the principal investment strategies of Valkyrie Bitcoin Strategy ETF will change to pursue its investments objective through managed exposure to a combination of bitcoin futures contracts and ether futures contracts.”

Volatility Shares

Despite the fact that other companies are likely to file with the SEC in early August, Volatility Shares may be the first ETF issuer as a result of its July 28 registration. The company’s first “pure” Ethereum futures ETF might go live around October 11.

According to the company’s proposal, the Ether Strategy ETF would invest 25% of its assets in cash-settled Ether futures contracts traded on the Chicago Mercantile Exchange. According to the petition, the fund may also invest in reverse purchase agreements and shares of other investment firms, but not directly in Ethereum.

The fund wants to float its shares and trade it on the CBOE BZX Exchange.

Reaction

ETF analyst Eric Balchunas was not surprised by the SEC’s rapid decision to authorize Ethereum futures ETFs.

“This is not surprising to us, we had said they would approve Ether Futures early on in the race. Nice to be validated,” Balchunas wrote.

“Now what does it mean for spot? Hard to say beyond it shows that their views, policy, and tolerance can change.”

So far, the SEC has mainly declined to approve spot crypto ETFs, with a few notable exceptions going back to late 2021. The SEC approved multiple Bitcoin futures funds that invested in Chicago Mercantile Exchange contracts at the time.

James Seyffart noted Roundhilll, which is also expected to be a primary focus for Ethereum Future ETF applicants, and revealed a 0.19% management fee for the planned fund.

“This is very low compared to BTC futures ETFs like ProShares’ $BITO’s 0.95%,” said James Seyffart. “And [it] is still drastically lower than VanEck’s $XBTF which is at 0.76%. Fee war [is] already starting on crypto ETFs.

Market drop

Although the likely approval of Ethereum Futures ETFs is reason for celebration, Bitcoin’s price has plummeted to its lowest level since June.

Bitcoin has also dropped below the $26,000 mark. Meanwhile, ETH dropped to $1,576 before rebounding. Ethereum continues to trade at low levels.

Cryptocurrencies worth considering investing in

Ken Jacobs on August 28, 2023

Crypto — With the current state of affairs, investors have prioritized investment in high-quality crypto enterprises.

Many people are seeking superior cryptocurrencies that can survive the bear market and develop in the future.

Three cryptocurrencies to consider for investment are listed below.

Arbitrum

Arbitrum is a Layer 2 scaling solution for Ethereum that seeks to give Ethereum users quicker and cheaper transactions.

It is not a cryptocurrency in and of itself, but rather a network that allows users to construct smart contracts and conduct transactions with lower fees and faster confirmation times than the Ethereum mainnet.

Arbitrum employs Optimistic Rollups technology, which enables off-chain transaction processing while maintaining transaction security and integrity by providing proof to the Ethereum mainnet on a regular basis.

This provides for much quicker transaction processing times and cheaper gas prices.

Arbitrum’s native token, ARB, is used to pay for transaction fees on the Arbitrum network.

However, unlike other cryptocurrencies, the value of ARB is generated by its utility inside the Arbitrum ecosystem rather than any specific use case or intrinsic value.

ARB’s value has skyrocketed in recent months, making it one of the most promising cryptocurrencies available today.

Arbitrum’s creation

Offchain Labs, a blockchain development business launched in 2018 by Ed Felten, Steven Goldfeder, and Harry Kalodner, invented Arbitrum.

Felten is a computer science professor at Princeton University who formerly served as President Obama’s Deputy Chief Technology Officer.

Goldfeder is a postdoctoral researcher at Princeton who has produced work on a variety of cryptography and blockchain subjects.

Kalodner is a PhD candidate at the University of Maryland and has worked on a variety of blockchain and security research projects.

The team has a solid academic background and competence in computer science, encryption, and blockchain technology, which has contributed to the creation of Arbitrum as a leading Ethereum scaling solution.

SingularityNET

SingularityNET is a decentralized artificial intelligence (AI) network with the goal of establishing a worldwide marketplace for AI services.

Ben Goertzel, a well-known AI researcher and entrepreneur, and many other AI professionals created it in 2017.

Developers and organizations may use the SingularityNET platform to create, distribute, and commercialize AI algorithms and services.

It is based on blockchain technology, which assures the network’s transactions are transparent, secure, and immutable.

SingularityNET’s AI agents may communicate with one another and with other AI systems to solve complex issues collaboratively utilizing a variety of machine learning and other AI approaches.

The platform’s underlying AGI token is utilized to enable transactions and to incentivise network involvement.

SingularityNET’s mission is to democratize AI access by establishing an open, decentralized marketplace where anybody may access and benefit from the potential of AI technology.

With the rise of artificial intelligence, SingularityNET’s worth is likely to explode.

Chimpzee

Chimpzee is a cryptocurrency based on the premise that users may earn money passively without causing environmental problems.

Instead, the cryptocurrency aims to rescue species and combat climate change.

According to the creators, 10% of the token supply and a portion of the earnings have gone to groups that support their goals.

Chimpzee will also launch an ambassador and community involvement program to bring more people to their cause.

Several groups have volunteered to sponsor the efforts because they feel it is an important component of the Chimpanzee ecosystem.

Chimpzee, being the most current token in the crypto realm, has the ability to alter how people perceive actions in crypto ecosystems.

The initiative is working on ways to assist people comprehend how cryptocurrencies may improve many aspects of life while also offering financial stability.

Chimpzee’s presale launch is intended to bring in a new wave of socially minded activities.

Bitcoin prices take a hit, now down by 9%

Karla Perry on August 28, 2023

Bitcoin — The state of the economy may have a huge influence on the cryptocurrency market.

Investors may turn to alternative assets such as cryptocurrency to diversify their portfolios and hedge against inflation during times of economic instability.

As a result, demand for cryptocurrencies may rise, potentially driving up prices.

When the economy is doing well, investors may be more confident in traditional assets such as equities and bonds, which might lead to a drop in demand for cryptocurrencies.

Furthermore, during a booming economy, central banks may boost interest rates to combat inflation, which can have a negative influence on the crypto market since investors may transfer their emphasis to high-yield savings accounts and other income-bearing assets.

Government regulation is another aspect that may have an impact on the crypto market.

If governments put limits or outright prohibitions on cryptocurrencies, their value and adoption rates may suffer.

Governments, on the other hand, may increase the value and legitimacy of cryptocurrencies by enacting more favorable regulatory regimes.

Overall, the economic environment and government actions have a substantial impact on the performance of the cryptocurrency market.

The Bitcoin situation

The start of inflation in 2022 severely shook the economic landscape.

Similarly, the crypto market was impacted, although various causes contributed to a large price collapse for several cryptocurrencies.

The market languished throughout 2022, but early 2023 witnessed hints of a recovery, with numerous crypto assets making a comeback.

However, the honeymoon phase may be gone, since Bitcoin has started declining.

According to CoinGecko, the crypto asset has dropped by more than 9% in the last week.

Bitcoin is currently worth $27,414.88.

The BTC drop has almost completely wiped the crypto asset’s early April gains above $30,000.

Instead, it has dropped to roughly $28,500, much below the closing price in March.

The downturn

While Bitcoin’s value has dropped, it is not alone.

Other popular cryptocurrencies have also fallen in value during the last week.

Except for stablecoins, the majority of the top 10 most famous cryptocurrencies by market cap have fallen by double digits.

The strengthening of the US currency is one of the causes of the slump.

The Federal Reserve of the United States is projected to boost the benchmark interest rate by another quarter basis point at its next policy rate meeting in May.

With a higher-yielding dollar on the horizon, non-yielding assets such as gold and cryptocurrencies may become less appealing to investors.

Bitcoin has a greater link with gold than traditional stock market indexes, according to Valkyrie Fund.

The debt ceiling crisis

The debt limit problem is another element influencing Bitcoin prices and the greater American economy.

The United States Treasury is in historic debt.

The present debt exceeds the $31.4 trillion debt ceiling, and loans totaling more than $31.46 trillion have already been made.

The US debt ceiling functions similarly to a credit card limit established by Congress for the US government.

If the government has to spend more than the cap, it must petition Congress to raise it.

Just as people must appropriately manage their credit card debt to minimize financial pressure, the US government must balance its expenditure and debt to avoid loan defaults and harming the economy.

However, in recent years, the problem of extending the debt ceiling has become a political battleground, with partisan differences and delays producing uncertainty and volatility in financial markets.

Bitcoin mining will face revolution with SV2

Stephen Cook on August 28, 2023

Bitcoin mining — Bitcoin mining is the process of confirming transactions and producing new Bitcoins by solving challenging mathematical problems with powerful computers.

Miners compete for Bitcoin prizes by solving the puzzle.

Because of its environmental effect, the process uses a substantial quantity of power and has become a sensitive topic.

Bitcoin mining tools are software or hardware equipment that are used to mine Bitcoin.

To earn Bitcoin incentives, these technologies employ significant processing power to validate transactions and solve challenging mathematical puzzles.

ASICs (application-specific integrated circuits) for hardware mining and software applications like CGMiner and BFGMiner for software mining are two prominent mining solutions.

Mining tools are required for Bitcoin mining, and their efficacy is determined by their computing power and energy efficiency.

Controlling the power

The power of Bitcoin mining pools is one of the most often discussed subjects in the crypto realm.

Some argue that they make Bitcoin overly centralized.

However, Stratum V2, a Bitcoin mining revamp, intends to toss the question out the window.

The open source version of the Stratum V2 (SV2) protocol was recently released by Stratum Reference Implementation (SRI) developers.

They stated that they had completed “job negotiation,” which is a crucial feature for the larger Bitcoin business since it gives pools less authority in transaction selection.

Mining is an essential component of Bitcoin’s success, since miners throughout the world get rewarded for the computer power required to protect the network.

However, anyone armed with the necessary machinery who goes in alone is sure to lose money.

Miners generally join mining pools to pool their resources and increase their chances of receiving Bitcoin rewards.

SV2

Since 2018, Bitcoin developers have been working on Sv2, which would more easily link miners to mining pools, making mining more safe and efficient.

“Job negotiation” is the most important piece, and it was added in the latest upgrade.

Stratum V1, while excellent, has flaws.

“[In] pooled mining, [the] entire network is prone to censorship, since mining pools are a single point of failure – a trusted third party,” explained pseudonymous Bitcoin program manager Pavlenex.

“Regulators could force mining pools to not include certain transactions in a block for example.”

When Bitcoin mining pools implement SV2, the exclusion might be lifted.

Transaction censorship

Bitcoin’s ultimate goal is to become a money that is not controlled by any corporation or government.

However, centralization is a common occurrence.

Many people are afraid that Bitcoin mining pools may become a centralized power.

When mining pools use the Stratum V1 protocol, the individual in charge of the pool has the power to halt certain transactions.

Governments, for example, might utilize mining pools as a barrier to prevent transactions they don’t like.

Concerns have persisted for years, and mining pools have a reputation for filtering transactions.

Upgrade

According to the newest SRI upgrade, the responsibility of transaction selection is now assigned to individual miners, taking the target off the backs of mining pools.

Rather than coming directly to Foundry USA and requesting that specific transactions be blocked, governments or other censoring bodies would have to travel through all of the miners that comprise Foundry to execute the request.

“For the entire network, the ability for miners to select transactions means that the power goes back from a handful of powerful entities back to thousands of individual miners,” said Pavlenex.

Development

Because developers are currently working on SRI, mining pools have yet to embrace SV2.

Pavlenex mentioned that they are seeking for early users to test the program while it is still in development.

“We’d like to invite miners, pools, and firmware makers to help us test out our latest update, provide feedback and directly influence the direction of our development,” he said.

Pavlenex believes that Bitcoin mining pools will welcome the new SV2 protocols.

Aside from the efficiency improvements, many miners dislike dealing with blocking transactions.

“[Pools are] likely to adopt SV2 because they don’t really want to be a central point of failure either,” he said.

“It’s a big responsibility, and our latest update helps them get rid of that pressure and risk.”