Blockchain

Ripple’s Chief Technology Officer (CTO) David Schwartz has further clarified the actual use case of his company’s XRP Ledger and its utility token XRP following comments that put the network’s reputation in question. 

XRP’s Actual Utility

A particular X page (@EthereumThaila1), which seems to be a pro-Ethereum user, had ignited this particular X thread following a comment about Ripple’s centralized nodes and went as far as alleging that Ripple’s CEO Brad Garlinghouse is making false representations about the ecosystem while “dumping” on the community’s face.

However, in a series of tweets released on his X (formerly Twitter) platform, Schwartz stated that the XRP Ledger and its XRP token were created to be used to cater for “low-value high-volume” transactions such as payments which ride-hailing company Uber makes to its drivers and remittances. 

He made this statement to quench any assumption that XRP’s use case was to handle high-value, low-volume transactions, as he believes those are already “well-served by existing payment systems.” 

From his statement, it is believed that Schwartz is referring to the fact that XRP is meant to facilitate day-to-day transactions that accumulate to a large amount of money as against high-value, low-volume transactions involving larger amounts of money transacted less frequently. 

Bitcoin and XRP Different

In the thread, another user tried to compare the Bitcoin and XRP ecosystems, stating that the former was superior. He mentioned that Bitcoin was “decentralized sound money,” unlike XRP, which was “100%” pre-mined. 

However, Schwartz noted there was no need to compare Bitcoin and the XRPL as they served different purposes based on their design and function. Unlike Bitcoin, which he suggested was created to be a store of value, he stated that the XRP Ledger was more suitable for “fast, cheap, censorship resistance transaction execution.”

He further mentioned that the XRP Ledger had a single DEX (Decentralized Exchange) and a multi-asset system created to process “cross-currency and cross-issuer payments.” As such, the XRP Ledger is more of a “payment engine than a store of value.”

The user disagreed and stated that Bitcoin was created to process transactions, which is why it has the “most value.” But Schwartz reiterated that Bitcoin was designed to be “sound money” and that the blockchain wasn’t designed to process transactions, which is evident in the resistance that people who have tried to expand Bitcoin’s use case have faced. 

As to Bitcoin having the “most value,” he presumed that this was so because Bitcoin had a first-mover advantage, and many considered it “good enough.” He believes that people don’t necessarily choose currencies based on “technical merit” but more on “popularity and demand.”

Nevertheless, Schwartz avoided being dragged into admitting that there was any sort of competition between Bitcoin and XRP, as they aren’t direct competitors even though there may be “some overlap in the possible use cases.”

In a surprising turn of events, Ripple CEO Brad Garlinghouse announced that the company has decided to abandon its direct acquisition of financial institution Fortress Trust. 

The decision marks a significant departure from Ripple’s earlier intention to acquire the firm, as they had signed a letter of intent just a few weeks ago. 

However, Garlinghouse emphasized that Ripple will continue supporting and investing in Fortress Trust, expressing admiration for their talented team and innovative solutions to real customer problems.

Ripple Changes Course

The initial announcement of Ripple’s intent to acquire Fortress Trust generated considerable buzz within the cryptocurrency community. Fortress Trust, known for its Web3 financial, regulatory, and technology infrastructure for blockchain innovators, seemed like an ideal fit for Ripple’s expansion plans. 

Garlinghouse, in particular, had expressed enthusiasm for the acquisition, pointing out the existing relationship between the two companies as early investors in Fortress Blockchain Technologies.

One notable aspect of the proposed acquisition was the potential expansion of Ripple’s regulatory licenses. Fortress Trust holds a coveted Nevada Trust license, and its incorporation into Ripple’s portfolio would have strengthened its regulatory standing. 

However, with the cancellation of the acquisition, Ripple will not gain direct access to the Nevada Trust license. While the decision to abandon the purchase may have surprised many, Garlinghouse assured that Ripple’s collaboration with Fortress Trust is not entirely off the table. 

The company remains committed to supporting Fortress Trust and expressed hopes of future collaboration. Garlinghouse stated:

A few weeks ago, we signed a letter of intent to acquire Fortress Trust – we’ve since made the decision not to move forward with an outright acquisition, though Ripple will remain an investor in Fortress Trust. The Fortress team is incredibly talented and has built products solving real customer problems. While this outcome is different from what was originally planned, we’ll continue to support them and hope to work together in the future!

As the crypto community eagerly awaits further developments, the spotlight on Ripple’s next steps now falls. Will the company pursue alternative avenues for expansion or strengthen its existing partnerships? 

Only time will reveal the company’s future trajectory and shed light on the outcome of its relationship with Fortress Trust.

Despite the overall positive performance of the top 10 cryptocurrencies in the market over the past 24 hours, XRP has emerged as the weakest performer. 

The token is trading at $0.5056, reflecting a modest 0.3% increase within the specified time frame. Despite this underperformance, XRP maintains its position as the fifth-largest cryptocurrency in the market.

Featured image from Shutterstock, chart from TradingView.com 

Big tech giants such as Microsoft, Tencent, Sony, Nintendo, and others joined the Web3 space in the past two years. A new report from crypto analytics firm Coingecko dives into the sector and the projects backed by these major companies to answer a question: how are they investing in the nascent industry?

How Microsoft And Nintendo Are Investing In Web3?

According to the report, Microsoft and other big tech companies employ different strategies to inject capital into the Web3 space. The data reveals that most companies, or 75.9%, chose a “measured and indirect approach.”

In that way, the investors can cover themselves in case of “adverse headlines” or if the project faces any particular challenges while keeping the benefit of backing blockchain-based companies. In other words, Nintendo and others can leverage the technology without exposing themselves to bad press.

Other major tech companies, such as the China-based Tencent and Unity Software, are pouring money into developing the infrastructure to run blockchain-based projects. The report highlights that their effort goes from developing tools to supporting blockchain developers to build on them.

Some of the projects these companies support include WeMade, a blockchain game producer; a metaverse company called Morpheus Labs; Startale Labs, a Web3 incubator; a joint venture between Game Freak and Nintendo; and much more.

Overall, over a dozen projects are receiving support from some of the top tech companies in the world in some capacity. The report also highlights some of these projects’ obstacles, including ambiguous regulations, developing a compelling product, and moving into mainstream adoption.

Gaming Sector Embraces Web3

While the Web3 space has grown, the sector is still relatively small. The report shows that the entire market cap of gaming tokens is around $5 billion, while the top 10 video game companies launching a project in the nascent sector have a combined market cap of $3,219 billion.

29 out of 40 big videogame companies, or around 72% of the sector, have ventured into the Web3 space, underscoring its relevance despite the persistent downtrend in the crypto market. Take-Two Interactive, Ubisoft, Bandai, Square Enix, and others are developing their blockchain gaming projects, as seen in the chart below.

However, only a handful of these are ready to launch this year, while others are set to debut as soon as 2024 and beyond. The report stated:

On the flipside, the adoption of blockchain technology by established video game companies has been relatively slow, attributed to concerns such as scalability, market acceptance, regulatory uncertainty, and past security breaches in previous blockchain games.

As of this writing, ETH’s price trades at $1,630 with sideways movement in the last 24 hours.

Cover image from Unsplash, chart from Tradingview

PRESS RELEASE. LBank recently concluded its Launchpad for MetaExpand, securing a total investment of 52,186,338 USDT from 35,229 participants. $UMM will be listed on LBank and open for trading on September 29th at 6 AM(UTC).

This event was highly anticipated, following the immense success of the previous $PINS Launchpad, which garnered a substantial total investment of 51,556,343 USDT and experienced a 2003% increase in value. $PINS’s success yielded significant returns for its 34,587 participants.

This year, LBank has emerged as a pivotal player in the cryptocurrency market, earning a prominent position in spot trading volume and establishing a noteworthy presence in various cryptocurrency sectors, including the MEME coin sector, according to the latest market data. LBank persists in offering its over 9 million global users specialized financial derivatives, expert asset management services, and a secure trading environment, fostering global adoption of cryptocurrencies.

The participation rules for $UMM, like $PINS, were meticulously crafted, focusing on a user’s daily average holdings of mainstream coins like BTC, ETH, USDT, and LBK. User balances across Spot, Futures, and Earn accounts were closely monitored over a specified period, and investment quotas were established based on this average. Additionally, to be eligible, users were required to complete at least one trade on LBank within the designated timeframe. These well-thought-out rules have been instrumental in elevating platform activity, including spot holdings, contract positions, earn account balances, and transaction volumes.

A spokesperson for LBank remarked, “We’ve experienced overwhelming engagement and support from our user community, especially following the success of our $PINS Launchpad, which brought substantial returns for the participants. The rules for the $UMM Launchpad were strategically designed to prioritize our active and asset-holding users, building on the lessons learned and successes experienced during the $PINS Launchpad. We are sincerely grateful for such vibrant participation and are excitedly anticipating the upcoming $UMM listing along with other exhilarating developments.”

The listing details for $UMM are as follows:

– Token Distribution Time: 28th Sep, 1 PM(UTC)

– Trading Time: 29th Sep, 6 AM(UTC)

– Withdrawal Time: 2nd Oct, 6 AM(UTC)

Please refer to the official link for details:

https://support.lbank.com/hc/en-gb/articles/23472949149209

MetaExpand（$UMM) is a universal metaverse expansion protocol, designed to bridge the technical gap between public chains and metaverse applications. It serves as a foundational infrastructure of the metaverse ecosystem, enabling the development of applications that are significantly user-friendly, and technologically advanced, accommodating features such as storage, communication, privacy, cross-chain capabilities, and transactions. MetaExpand’s aim is to allow developers to focus more on application development rather than the intricate details of underlying blockchain technology

This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

The legal team defending Do Kwon, the co-founder and former CEO of Terraform Labs, argues that the U.S. Securities and Exchange Commission (SEC) lacks the capacity to depose Kwon, deeming it an “impossible” feat. Kwon’s legal counsel additionally maintains that the SEC’s bid for a preclusion order is premature, given that no summary judgment motion has been tendered by either side, and the cutoff for such motions remains a month away.

Do Kwon’s Lawyers Label Deposition Bid ‘Impossible’

In a document tendered to the court on September 22, 2023, it’s unveiled that the SEC is seeking authorization to interrogate the former CEO of Terraform Labs, Do Kwon. “With less than a month left in discovery, however, the SEC has not yet been afforded a critical discovery tool used in nearly every civil case—the deposition of the defendant,” the court document highlighted.

Yet, another court submission by Kwon’s legal counsel on September 27, underscores their stance that such a request is “impossible,” urging for the SEC’s petition to be rejected.

“The SEC’s motion seeks leave to take the deposition of Defendant Do Kwon in the United States before October 13, 2023, even though the SEC knows that Mr. Kwon is detained in Montenegro with no scheduled release or extradition date,” Kwon’s attorneys wrote. The former Terraform Labs CEO’s legal team added:

The motion should be denied because it would be impossible for Mr. Kwon to appear for such a deposition.

The Terra blockchain ecosystem helmed by Kwon crumbled in May 2022, leading to his arrest in Montenegro in March 2023 over the use of falsified passports. This particular misstep landed Kwon a four-month tenure in the Montenegro prison system. His lawyers emphasize that Kwon has already faced the inquisitor’s chair on multiple instances. They underscored an alleged 21-hour discourse Kwon had with the SEC during their meticulous two-year-long probe.

This interrogation saga unfolded over two distinct days, with Kwon reportedly engaging for a solid five hours on each occasion, augmented by a five-hour session orchestrated by the Monetary Authority of Singapore, with the SEC in attendance. The narrative further includes another voluntary six-hour rendezvous with the SEC, as articulated by the legal representatives from Dentons US LLP.

The lawyers insist the “SEC’s motion relies on misrepresentations about irrelevant evidence to support its spurious claim that it has been unable to get discovery from Mr. Kwon.” Authorities from South Korea and the United States have sought Kwon’s extradition for his purported involvement in the downfall of the Terra blockchain ecosystem and the UST de-pegging debacle.

What do you think about Kwon’s lawyers telling the SEC that it is “impossible” to depose the Terra founder? Share your thoughts and opinions about this subject in the comments section below.

In the ever-expanding landscape of blockchain technology, the concept of cross-chain bridges has emerged as a critical component. These bridges serve as the vital connectors between various blockchain networks, enabling seamless interoperability and the transfer of assets and data across different chains. 

However, as the crypto industry continues to invest heavily in these bridges, Chainlink’s co-founder, Sergey Nazarov, has raised a red flag, asserting that most of these bridges are “absolutely not secure.”

Nazarov’s concerns highlight the significant implications of blockchain bridges and the urgent need for enhanced security measures within the crypto space.

The Illusion Of Decentralization: A Perilous Predicament

Nazarov contends that the crypto industry often falls into a pattern of investing in projects that promise robust security but ultimately fail to deliver. 

In his words, “The systems that are built in this industry promise a lot of things, but then they’re not able to secure the value one way or another.” This concern strikes at the core of blockchain’s promise: decentralized, secure, and trustless systems.

One of the primary issues Nazarov points out is the prevalence of single-server bridges that transmit information and value between two chains.

These bridges, he warns, are far from secure, and their reliance on a single entity raises questions about the true decentralization of these systems. In essence, they create a false appearance of decentralization while remaining susceptible to centralized control.

Chainlink: Vision For Secure Cross-Chain Communication

As an alternative approach, Nazarov envisions a cross-chain communication platform that operates through multiple independent networks capable of dynamically responding to risks.

The Cross-Chain Interoperability Protocol (CCIP) of Chainlink serves as an illustrative example of this vision. The protocol consists of three distinct networks on every bridge, a unique approach that sets it apart from traditional single-server bridges.

Two of these networks are responsible for validating and executing every transaction, while the third, known as the Risk Management Network, focuses on approving or denying transactions based on predefined risk parameters.

This separation of roles ensures that bridge creators, whether they be banks or decentralized applications, can introduce and configure risk parameters without the need to directly interact with transactions or touch the underlying value. It empowers users with greater control and transparency while enhancing security.

Implications For The Future

Nazarov’s cautionary words highlight the critical role that blockchain bridges play in enabling the broader adoption and functionality of blockchain technology. The security of these bridges is paramount to the long-term success and trustworthiness of the crypto ecosystem.

The call for more secure cross-chain bridges will likely gain momentum. Developers and stakeholders must heed this warning, investing in innovative solutions that prioritize security and decentralization to bridge the divide between blockchain networks successfully. In doing so, they can pave the way for a more interconnected, secure, and trustworthy blockchain future.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Shutterstock

In a significant move, the Shiba Inu community is on the brink of getting a dedicated domain service with the introduction of the Shibarium ID, which is scheduled for an official launch by the end of October. A tweet by the developers confirmed, “Shibarium ID is officially launching in late October. We’re here to help transform the entire SHIB ecosystem.”

Aimed at overhauling the SHIB ecosystem, Shibarium ID promises to deliver a comprehensive identity platform for the rapidly evolving web3 domains.

The platform’s vision was clear from the initial announcement on X (formerly Twitter) on August 31, stating: “.shib Name Service on Shibarium is coming! High Quality UI, Referral Program, Doxxed Team, with our own Built-in Marketplace for your Domain Trading! We’re working towards SHIB’s SSI vision of decentralization! ‘Not your Shib ID? Not your Identity!’ – Shytoshi Kusama.”

This Is What Awaits The Shiba Inu Ecosystem

Shibarium ID’s website further elaborates on its multifaceted functionalities. The platform focuses on creating a centralized discovery hub, allowing users to search across various supported top-level domains (TLDs).

Besides, it facilitates web3 domain registration across multiple chains including ETH, BNB, ARB, and Shibarium mainnet. The domains initially available include .shib, .arb, .bnb, and .eth. Additionally, a specialized domain trading marketplace will be integrated into the platform.

With the end goal of bridging decentralized identities with the physical world, Shibarium ID aims to serve as a universal name service network. The ambition is huge, but the platform is taking determined steps toward achieving it.

Their commitment is further accentuated by their funding source. A tweet from September 1 reveals that Shibarium ID is primarily funded by Poh Digital, a venture capital formed to amplify products within the digital identity industry.

Shibarium ID’s integration with the recently launched Shibarium network is a notable development in the SHIB community. This integration will afford Shibarium users access to another decentralized app on the newly launched network, enriching the SHIB community’s experience with blockchain-based digital identities and domain trading.

It’s an addition that aligns well with Shiba Inu offerings, notably complementing the forthcoming Shiba Hub app. Moreover, the development team has expressed its dedication to the Shibarium ecosystem.

Remarkably, a portion of the fees from domain sales will be channeled into SHIB-related initiatives, including SHIB burns and Doggy DAO contributions.

Related Reading: Shibarium TVL Plunge: What Lies Ahead For Shiba Inu Price?

SHIB Price At Crossroads

At press time, the SHIB price continued to trade just above the crucial support at $0.00000715. The support line on the 1-week chart may be crucial in determining whether SHIB confirms a bullish triple bottom or faces another price slump due to the formation of a descending triangle.

On September 27, 2023, statistics indicate that 13 cryptocurrency exchanges possess assets under management (AUM) exceeding $1 billion, collectively constituting 14.39% of the crypto economy’s total value of $1.05 trillion. Among these 13 digital currency trading platforms, Binance stands out by maintaining a 42.81% share of the $151.08 billion in cryptocurrency reserves.

A Handful of Billion-Dollar Cryptocurrency Exchanges Command $151B in Net Value

Data indicates that 13 distinct cryptocurrency exchanges collectively manage a total value of $151.08 billion, with Binance, the leading cryptocurrency trading platform in terms of global volume, maintaining $64.68 billion in reserves, as reported by Arkham Intelligence’s blockchain explorer.

Binance’s holdings include 21.02 billion tether (USDT) and 671,981 BTC, with a combined value of $38.7 billion. Additionally, Binance held assets valued at $6.55 billion in ETH and $3.21 billion in BNB on September 27.

Binance’s holdings represent 42.81% of the collective $151 billion in value held by these 13 exchanges. According to Arkham’s data, Coinbase controlled approximately $28.91 billion as of September 27, 2023.

The exchange holds a significant 946,618 bitcoin (BTC) worth $24.88 billion. Another $2.69 billion in value is attributed to Coinbase’s ETH holdings, and there is $530 million worth of LINK held by the San Francisco-based trading platform.

The digital currency exchange Okx manages a total of $14.37 billion, with $5 billion of that consisting of tether (USDT). Okx also holds $3.52 billion in BTC, $3.16 billion in OKB, and $1.64 billion worth of ETH.

On September 27, Bitfinex held $11.70 billion AUM with 225,231 BTC worth $5.92 billion. The exchange also holds another $3.22 billion in ether. Robinhood holds $6.27 billion total and $3.19 billion of that value is in bitcoin (BTC).

Around $2.74 billion of Robinhood’s cache consists of ETH holdings. Robinhood also commands $251.55 million in SHIB and $35.70 million in LINK. Among the five aforementioned exchanges, the trading platforms collectively hold $125.93 billion of the $151 billion aggregate.

The total reserves among the top five out of 13 equate to 83.39%. There’s also Kraken, with its treasure chest of $5.96 billion; Bybit, boasting a hefty $4.51 billion; Crypto.com, guarding a cool $3.61 billion; Gemini, with coffers holding $3.11 billion; HTX, formerly known as Huobi, possessing $2.89 billion; Kucoin, with a substantial $1.89 billion; Deribit, holding $1.79 billion; and Upbit, with a stash of $1.32 billion.

The latter eight exchanges command a slice of 16.61% of the $151 billion pie held by this select cadre of exchanges.

What do you think about the 13 crypto exchanges that hold more than 14% of the crypto economy’s net worth? Share your thoughts and opinions about this subject in the comments section below.

Bitcoin miner Marathon Digital found itself in the spotlight when it inadvertently mined an invalid block at height 809478 on the Bitcoin mainnet. The blunder was attributed to a transaction ordering issue, as revealed by pseudonymous Bitcoin developer and Spiral grant recipient 0xB10C. The incident underscores the intricacies and potential pitfalls of blockchain technology.

At the core of the issue was a transaction sequencing problem. Transaction A attempted to spend an input from transaction B, but here lies the crux: transaction B ended up being included in the block after transaction A. This seemingly minor misalignment in the chronological order of transactions rendered the entire block invalid. 

BitMEX Research delved into the technical specifics, shedding light on the intricacies of the invalid block at height 809478. 

Marathon Digital’s Experiments And Quick Response

In response to the incident, Marathon Digital clarified its position. The company explained that it allocates only a small percentage of its hashrate to experimental mining activities like these and stressed that there was no intention to tamper with the Bitcoin network. 

We can confirm that Marathon did mine an invalid block. We utilize a small portion of our hash rate to experiment with our development pool and research potential methods to optimize our operations. The error was the result of an unanticipated bug that came from one of our…

— Marathon Digital Holdings (NASDAQ: MARA) (@MarathonDH) September 27, 2023

In their social media update, Marathon firmly stated in no way was the experiment an attempt to alter Bitcoin Core in any way. The company highlighted its commitment to maintaining the integrity of the network.

Furthermore, Marathon Digital was swift in rectifying the error. As soon as the invalid block was identified, corrective measures were put in place. Importantly, Marathon asserted that the bug was an internal development issue, unrelated to its Bitcoin production pool or the Bitcoin Core software – the predominant software for connecting to the network and running a node.

Insights And Implications

This incident serves as a valuable learning experience for the Bitcoin community. It underscores the importance of precise transaction sequencing and the critical role it plays in maintaining the security and validity of the blockchain. Even seemingly minor issues can have significant consequences in the world of cryptocurrency.

Moreover, Marathon Digital’s transparency and quick response demonstrate the commitment of responsible actors within the crypto mining space to uphold the network’s integrity. It highlights the robustness of the Bitcoin ecosystem, where self-correction mechanisms are in place to rectify errors promptly.

The inadvertent mining of an invalid block by Marathon Digital at height 809478 serves as a cautionary tale, emphasizing the need for meticulous attention to detail in blockchain operations. It also reaffirms the resilience of the Bitcoin network and its stakeholders in swiftly addressing and rectifying unexpected challenges.

Featured image from Shutterstock

While both attackers and smart contract auditors are motivated to find vulnerabilities in code, according to Eyal Meron, the co-founder and CEO of Spherex, the former “is always more incentivized as the protocol’s total value locked (TVL) grows.” To overcome this challenge, Meron told Bitcoin.com News that decentralized protocols will need to put in place what he called “asymmetric countermeasures.”

Human Error and Smart Contract Vulnerabilities

The Spherex boss also suggested deploying an exploit prevention solution as another way protocols can prevent attackers from using errors in code to steal digital assets worth millions. Meron, a senior veteran of the elite Israeli 8200 cyber unit, nevertheless admits that most smart contract vulnerabilities are often the result of human error which in many cases is “inevitable.”

One common error, which according to Meron is almost impossible to detect, often occurs when developers “overlook how every code line affects the contract depending on the different states it might be in.” It is these errors that criminals often take advantage of before successfully siphoning digital assets worth millions of dollars. Many players in the Web3 space including Meron insist that when users lose funds through such incidents the entire industry suffers.

Meanwhile, in his written answers sent to Bitcoin.com News, Spherex’s chief product officer Ariel Tempelhof touched on how the collaboration between blockchains and onchain security providers can help turn the tide against code exploiters and other cyber criminals. He also offered his thoughts on some critics’ contention that an exploit prevention solution may eventually be used as a censorship tool.

Below are both Eyal Meron and Ariel Tempelhof‘s answers to all the questions sent to them via Telegram.

Bitcoin.com News (BCN): Smart contract vulnerabilities are often caused by human errors. What are some of the common mistakes developers make that give hackers an opportunity to look for and exploit weaknesses in smart contracts?

Eyal Meron (EM): There are a lot of common mistakes that, in our eyes, stem from the fact that a deployed smart contract is a state machine that grows exponentially with the code base and transaction volume. Due to this, human errors are inevitable, both on the developers’ part and the auditors’. The most common mistake is to overlook how every code line affects the contract depending on the different states it might be in (which is honestly impossible).

BCN: Once deployed, smart contracts become immutable and the vulnerabilities become a permanent part of the code. Therefore before they are deployed smart contracts are audited and in some cases, multiple times. However, it appears that has not helped to bring down the number of exploits. In what ways do the existing solutions for smart contract protection like auditing fall short?

EM: The fact that protocols are being audited multiple times proves that audits are best-effort and not enough. Audits are like playing on the attacker’s court. Both parties look for vulnerabilities in the code while the attacker is always more incentivized as the protocol total value locked (TVL) grows, while the auditors have limited resources. Protocols need to put asymmetric countermeasures in place to win this race.

BCN: Your company Spherex recently launched an exploit prevention solution for smart contracts called Spherex-Protect. Can you tell us how it works and whether blockchain protocols or applications have to compromise on decentralization to make it work for them?

EM: Sure, Spherex-Protect is essentially the missing piece in the Web3 security paradigm. Instead of looking at what’s wrong in your code, we look at how your protocol operates and make sure this line of operation stays the same. The protection is actually being done on-chain which has two important properties: The protection is verifiable – everyone (the protocol owners and customers) can look at the protection code and understand how it works.

The protection can be completely decentralized – The owners of the protection can be configured. It could be Spherex, the protocol owners, the assigned security council, the DAO, or completely revoked.

In that sense, Spherex-Protect is the most decentralized Web3 security a protocol can have. Moreover, this platform was planned with modularity and openness in mind. Everyone can write protection modules for the ecosystem to be audited and verified by the whole community.

BCN: How does Spherex differentiate between legitimate user transactions and suspicious ones and what happens to a suspicious transaction — including the false positive detections — once it is flagged?

Ariel Tempelhof (AT): This has been a year-long research by our research team. Finding the best way to distinguish between malicious and legitimate transactions, during transaction execution while maintaining a very low gas footprint.

We look at multiple data points, accessible from the contract itself, and gather them during the execution of the transaction. Those might be gas consumption, storage changes, input parameters, etc. When enough data is gathered, a decision is made whether to allow the transaction or revert it. The results were astonishing, we were able to prevent most of the hacks we’ve analyzed while maintaining a <0.1% false positive rate.

Once a transaction is reverted, it is further analyzed by our off-chain module to produce a recommendation of what to do with transactions sharing the same aspects in the future. Of course, it’s up to the protection manager to decide whether to accept the recommendation or disregard it.

BCN: How do you see smart contract security and threats evolving in an increasingly multi-chain future?

AT: A chain is not just a set of blocks, it’s a whole ecosystem of protocols that work together. As most blockchains would like to single themselves out as one of the most secure blockchains out there, they would have to implement a security baseline for the whole ecosystem to adopt. Spherex has already started collaborating with blockchains to incorporate chain-wide security countermeasures in place.

On another note, multi-chain means multiple bridges connecting them. Bridges, as we all know, are the most prone-to-be-hacked protocols out there. SphereX-Protect has already shown great success in preventing even the most sophisticated bridge hacks introduced in recent years.

BCN: Though they have their downsides including smart contract vulnerabilities, blockchain transactions are supposed to be irreversible by design. What’s the possibility of this ability to block or revert blockchain transactions being used as a censorship tool in the future?

AT: The exploit prevention solution is designed not to be used as a censorship tool. The data points we’re looking at are intrinsic to the protocol and are not affected by the entity sending the transaction. Applying such censorship, in our eyes, is futile since changing addresses is very easy on the blockchain.

What are your thoughts about this interview? Let us know what you think in the comments section below.

Layer one (L1) and layer two (L2) blockchains offer different approaches to scaling distributed ledger networks. While developers of L1 blockchains focus on improving the base protocol, L2 programmers have moved transactions off-chain to enable faster and cheaper transactions.

What Are Layer One Blockchains?

Layer one or L1 refers to a base blockchain protocol like Bitcoin or Ethereum. These networks operate on a decentralized ledger secured by proof-of-work (PoW) mining or proof-of-stake (PoS) staking. L1 chains such as Bitcoin and Ethereum offer unparalleled security. However, during peak times, both of these chains grapple with sluggish transaction speeds and steep fees.

Developers from several L1 networks are working to improve layer one scaling through methods like increasing block size, sharding, and introducing proof-of-stake consensus. However, substantial layer one upgrades require coordination among node operators and can take years to implement. Some blockchains intend to use L2 protocols as either a temporary or long-term solution.

What Are Layer Two Blockchains?

Layer two or L2 solutions take advantage of the security of an existing layer one blockchain while enabling faster and cheaper transactions off-chain. Then the data is summarized and settled on the L1, but that’s not always the case.

Here are some key L2 solutions:

Lightning Network for Bitcoin

Bitcoin’s Lightning Network (LN) is a second-layer scaling solution designed to facilitate faster, low-cost transactions on the Bitcoin blockchain (L1). It operates on top of Bitcoin’s base layer, allowing for instant payments by circumventing the need for block confirmations.

Transactions on the Lightning Network occur off-chain in payment channels between users. Only channel open and close transactions are recorded on the Bitcoin blockchain. Participants can transact multiple times within these channels, reducing congestion and fees on L1.

Critics target LN for its prevalent use of custodial wallets, as these demand users place trust in third parties to handle their money. Moreover, the off-chain method poses a risk: if nodes lack proper backup, it could trigger an irrevocable loss of funds.

Loopring and ZK-Rollups for Ethereum

Loopring uses zero-knowledge rollups (ZK-rollups) to batch hundreds of transactions off-chain and generate a cryptographic proof verifying their validity. This proof is submitted to layer one (Ethereum), avoiding the need to process each transaction on-chain.

Polygon ZKEVM also uses ZK-rollup technology to offer high throughput Ethereum transactions with lower fees. On the risk side, some believe that relying heavily on ZK-rollups can introduce centralization risks as validators and sequencers become key to the system.

ZK-rollups are also complex both in terms of their theoretical underpinnings and implementation. This complexity can lead to potential vulnerabilities if not implemented correctly or thoroughly vetted.

Optimistic Rollups

Optimistic rollups like Optimism and Arbitrum offer similar throughput improvements by processing transactions off-chain. However, they take a different approach than ZK-rollups for settling data on layer one.

While ZK-rollups cryptographically prove validity, Optimistic rollups assume transactions are valid and only settle/dispute transactions on layer one if needed. This requires a separate fraud-proof process.

Optimistic rollups are also complex and just like ZK-rollups the tech can lead to unforeseen vulnerabilities or bugs. Another critique is the delay in withdrawals from an Optimistic rollup back to the main chain.

Starknet and Validium

Starknet leverages Stark proofs to validate transactions off-chain for later settlement on Ethereum. Validium platforms like Boba Network also move contract execution off-chain but don’t settle back to layer one.

Starknet and Validium critiques include complexity, trust assumptions, and computational intensity. Moreover, relying on specific entities for off-chain data storage can lead to centralization, potentially making the system more vulnerable to attacks or manipulation.

The Scalability Trilemma

No solution offers speed, security, and decentralization in equal measure. Layer two aims for transaction speed without sacrificing the security of layer one. However, some believe decentralization is lost by moving computations off-chain.

Others insist the ideal long-term solution likely combines layers one and two. Meanwhile, numerous crypto enthusiasts remain firmly rooted in the belief that only L1s hold significance in the onward journey.

In summary, layer two platforms offer a different path to scalability by handling transactions off-chain, while some still benefit from the robust security model of layer one. To some this balance of speed and security makes layer two solutions appealing for blockchain adoption.

While some dismiss L2s as a complete waste of time or deem them entirely pointless, the discourse stretches on. Yet, through years of discussion, work continues to enhance both layers to achieve the optimum blend of scalability, security, and decentralization.

What do you think about the differences between L1 and L2 blockchain technology? Share your thoughts and opinions about this subject in the comments section below.

Is the Bitcoin mining network decentralized enough? Or do the big miners control a significant part of it? Here’s what the latest data says.

Public Bitcoin Miners Control Around 28% Of The Total Hashrate

In a new post on X, Bloomberg Intelligence market analyst Jamie Coutts discussed how the mining industry has evolved. The first thing Coutts talked about is what the share of the global Bitcoin hashrate is looking like between private and public miners.

The “hashrate” here refers to the total computing power the miners have connected to the Bitcoin network. This metric can serve as a measure of the security of the blockchain, as more mining rigs being attached means a 51% hack is harder to perform.

The security also depends, however, on how decentralized the hashrate is. A large amount of it being controlled by a single entity could make it easier to access all that hashrate, at least on paper.

Now, here is the chart that the CMT has shared that breaks down the hashrate contributions of public and private miners connected to the BTC blockchain:

As displayed above, 28% of the total Bitcoin hashrate is owned by public miners, while the rest is under the control of private entities. While public companies control a notable segment of the hashrate, it’s not alarming (at least not yet).

The fact that 72% of the hashrate is private does deal a blow to the FUD narrative that spreads around about the BTC network being centralized under the big public entities.

“Small-scale miners remain critical to keeping the industry decentralized and more anti-fragile,” explains Coutts. “But for some countries, mining is outlawed or economically unfeasible.”

Below is a chart from a recent CoinGecko report that shows how much the electricity costs to mine 1 BTC in different countries worldwide.

The analyst notes that the Western nations leading the charge towards a transition to clean energy have some of the most expensive electricity. Thus, the solo miners in these countries are effectively priced out of mining the cryptocurrency.

Here is a table that displays the top 10 most expensive nations in this metric in a more easy-to-digest format:

For the top nation on this list, which is Italy, a miner would end up incurring an electricity cost of $208,560 to mine just one token of the digital asset. The value of Bitcoin would need to rise multiple times over for the miner to break even.

On the contrary, some smaller nations have quite cheap electricity costs, as the table below shows.

“But even where electricity prices are dirt cheap, there are risks of overloading fragile energy grids,” says the Bloomberg Intelligence analyst. “Not to mention, these countries are some of the most politically unstable on earth.”

BTC Price

Bitcoin had made a sharp move towards the $26,800 level earlier in the day, but it would appear that the recovery move has failed, as the asset has already returned to under $26,300.

Researchers at the Federal Reserve have delved into the world of tokenizing real-world assets (RWAs) on blockchain technology. This exploration sheds light on the transformative power of tokenization, emphasizing its potential benefits and financial stability implications.

Tokenization, as elucidated in the paper, is the process of creating digital avatars, known as crypto tokens, for non-crypto assets, often referred to as reference assets. This innovative approach intertwines the digital asset ecosystem with the traditional financial system, creating a complex web of connections. 

As RWAs, including stocks, bonds, real estate, and commodities, undergo tokenization, they gain the ability to harness blockchain’s advantages.

Tokenization: Bridging The Gap Between Digital And Traditional Assets

One notable aspect explored in the paper is the idea that as tokenized assets gain momentum and scale, they may serve as conduits, transmitting volatility from the crypto markets to the markets of the token’s reference assets. This interconnectedness could have far-reaching implications for both digital and traditional financial markets.

The Federal Reserve paper underscores two primary advantages of tokenization. Firstly, it lowers the entry barriers for investors looking to access markets that were traditionally challenging to penetrate.

Secondly, it significantly enhances the liquidity of these markets, fostering more efficient asset trading and allocation. However, the paper does not shy away from addressing the potential financial stability risks associated with tokenization.

While tokenization is still in its nascent stages, the researchers at the US central bank believe it has the potential to become a more prominent component of the crypto ecosystem. Tokenization’s success, they argue, lies in its ability to simplify market access for a broader range of users, thereby increasing liquidity and potentially improving overall market stability.

Federal Reserve: Insights And Implications For The Future

The Federal Reserve’s exploration of tokenization highlights the growing significance of blockchain technology in the financial world. As tokenization continues to evolve, it could pave the way for a more inclusive and liquid financial ecosystem.

However, regulators and market participants must remain vigilant, as the interconnectedness between crypto and traditional markets brings forth new challenges in terms of financial stability.

The Federal Reserve paper on tokenization serves as a significant step toward understanding the potential benefits and risks associated with this emerging technology. It’s a bold step towards creating a more inclusive and accessible financial landscape. 

As the crypto landscape continues to grow, it is crucial for policymakers, investors, and market participants to stay informed and adapt to these transformative changes, ultimately shaping the future of financial markets.

Featured image from Shutterstock

Filecoin has grown to be one of the most beloved crypto with an active community that continues to keep it alive. However, questions about the blockchain’s origin, and its ICO in particular, are beginning to pop up as an on-chain sleuth has posted findings of his investigation.

Digging Into The Filecoin ICO

The on-chain investigator popularly known on X (formerly Twitter) as @BoringSleuth initially made headlines back in August when he posted a theory about who the founder of the infamous Shiba Inu meme coin was. This time around, the investigator has turned his attention to another token, Filecoin, questioning its origins.

In the report posted to X, BoringSleuth started out by explaining how he had gotten his findings. He explains that he had begun by mapping out wallets which led him to notice trends in funding transactions for a number of wallets. According to him, one thing that stuck out was the fact that these wallets would send ETH to the Filecoin ICO wallet with long decimal numbers. In total, the on-chain investigator was able to outline 1,255 transactions with these long decimal numbers.

Interestingly, 296 wallets had sent in ETH transactions ending in 937, as outlined in the image below:

Then 228 wallets ended with 967, 179 wallets ended with 697, and 111 of them ended in 696. The remaining 106 transactions were carrying unique last 3 digits but with the same long decimal numbers.

The investigator alleges that this was the work of the founders and VCs who were trying to make it look like there was high interest in the ICO. “when you want to make it look like a bunch of people are “Apeing” in to your token sale, that you and your handful of VC’s are going to dump on the pleb’s, you have to use some sort of code that helps group together who sent what,” BoringSleuth said.

Tying It To Ethereum Foundation

The report further dug in and the investigator seems to arrive at the fact that the likes of Ethereum founder Vitalik Buterin and the Ethereum Foundation were a part of this. He also links the CCP Group, as well as Cumberland and Prometheum to the Filecoin ICO which he refers to as a Ponzi.

BoringSleuth revealed that he had grouped the wallets together which he then crosschecked with the ‘Truth Labs Database of Networks and Wallets’. This is how the on-chain investigator was able to assign ownership of the wallet to different entities.

The report which is already making the rounds on social media seems to be the start of it. The investigator closed out the report by saying; “There of course is much more to this story, to be shared at a later date.”

Global businesses are confronting significant headwinds as cross-border payment volumes have rebounded to pre-pandemic levels while grappling with the looming challenges of escalating interest rates. Amidst these complexities, Ripple Labs’ latest insights into the shifting economic landscape reveal their crypto-enabled payment solutions as a countermeasure.

Major Pain Points In The Economic Landscape

In their recent exploration, Ripple delved deep into the repercussions of rising interest rates, focusing on their impact on both banks and global enterprises. The 2023 New Value Report states that “nearly half of enterprise respondents cited high-interest rates as a top challenge for cross-border payments.”

With a diverse global impact, interest rate variations can pressure businesses irrespective of their geographical base.

Three crucial pain points for businesses in the current economic environment include. First, there are currency fluctuations that impair growth. According to Ripple, one cannot ignore the intertwined relationship of cross-border payments and local currency conversions.

Ripple’s report emphasizes how interest rate increments can propel the “odds of pricing instability” and compound the unpredictability of international transaction costs. They noted the potential for greater losses, asserting, “this potential for greater losses can deter investment activity and economic growth.”

Second, the fintech company highlights the worldwide costly credit and reduced liquidity situation. A 2022 C2FO survey highlighted in Ripple’s discourse underscored that a bank’s line of credit or term loan remains the predominant source of working capital for most enterprises.

This liquidity underpins the efficiency of cross-border transactions. But there’s an alarming note of caution: “as interest rates rise, so does the cost of borrowing, resulting in reduced overall liquidity in the financial system and higher cross-border transaction expenses.”

Third, Ripple addresses uneven access to financial services. Regional disparities in interest rates can inherently lead to access inequalities in essential financial services like cross-border payments, especially for burgeoning businesses or those in developing economies.

Ripple pointed out the pressing challenges businesses face in regions with elevated interest rates, often stunting their ability to partake in international trade or market exploration.

Advantages Of Ripple Payment Solutions

Given the aforementioned challenges, Ripple is propelling the narrative that blockchain could emerge as a par excellence for reliable, efficient, and globally accessible payments.

Their rationale? Deciphering and debunking common crypto myths and harnessing the potential of “blockchain-enabled payments” could empower businesses to counterbalance the liquidity impediments fostered by swelling interest rates. This extends to a gamut of payments: from global treasury payments to supplier settlements.

Ripple advocates for its crypto-enabled payment solutions, highlighting the key features: “With Ripple Payments, customers can access greater working capital with reduced pre-funding requirements, upfront pricing and no hidden fees.” Such solutions promise to settle transactions in seconds at an almost non-existent failure rate.

Furthermore, the versatility of Ripple’s solutions manifests not just in cost-cutting and augmenting efficiency but also in paving pathways for business expansion. A compelling claim made by Ripple is the potential for businesses to “tap a payout network that represents more than 90% of the foreign exchange market,” making it easier for enterprises to venture into new payment corridors, even those deemed challenging.

Given the robust growth of the gig economy – with a forecasted disbursement reaching a staggering $298 billion in 2023 and a freelance workforce of 915 million – the importance of micro-payouts and geographical reach becomes even more pronounced. Ripple’s solutions, as posited by them, can address the burgeoning demand for efficient, high-volume, smaller payments, potentially allowing companies to gain a stronger foothold in international markets.

In conclusion, for businesses sailing through the choppy waters of economic uncertainties and looking to attain sustainable growth, Ripple’s crypto-enabled solutions might offer the bridge to success. A promise of a “white-glove service, single API integration, and dedicated customer support partners” seems to resonate as a beacon for businesses, even those with minimal exposure to the world of crypto.

The company’s Liquidity Hub is such a solution. Just recently, Ripple has expanded this offering to enhance the user experience, diversify its asset offering, and expand its global reach.

At press time, XRP traded at $0.5043, up 0.74% in the last 24 hours.

Data shows the Bitcoin miner “hashprice” has fallen towards all-time lows, a sign that these chain validators could be coming under pressure.

Bitcoin Miners Are On The Brink Of Becoming Unprofitable

In its latest weekly report, the on-chain analytics firm Glassnode has looked into some miner-related metrics to see how they are doing in terms of their revenue right now.

Miners earn their income through two means: the block rewards that they receive for solving blocks on the network and the transaction fees that they get for processing individual transfers.

The former of these stays fixed between halvings while the latter fluctuates depending on the network activity. How much of these rewards an individual miner would end up getting depends on the competition present on the blockchain.

The “mining hashrate,” that is, the total amount of computing power connected to the network, can serve as a way to track the degree of competition among the miners. The metric is measured in terms of exahashes per second (EH/s).

As displayed in the above graph, the 7-day Bitcoin mining hashrate has gone up by 52% since February and has set a new all-time high. A consequence of the competition between the miners hitting a new high has been that the “hashprice” has plunged toward a new all-time low.

The hashprice here refers to a measure of the total revenue that the miners are earning per exahash of their computing power.

From the graph, it’s visible that the Bitcoin miner hashprice has been trending down over the asset’s history, only observing temporary deviations during bull markets, as the price blowing up temporarily boosts the miners’ USD revenues.

Following the latest decline, the metric has hit a value of $60,000 per EH per day. “The endless logarithmic descent of hashprice shows just how cut-throat and unforgiving the mining industry is,” notes the analytics firm.

As mentioned before, the block rewards stay constant outside of the periodic halving events, where they are cut in half. The reason for this consistency is thanks to the presence of the “mining difficulty” feature in the cryptocurrency’s code.

The network adjusts its difficulty so that changes in the hashrate are countered and the miners produce BTC at the standard rate. When the hashrate goes up, for example, the difficulty also rises in response, so that the miners can’t leverage their extra computing power to mine at a faster pace than the chain intends.

Glassnode believes that the difficulty is the indicator that encapsulates all metrics related to miners in one, so it can be used as the base for a miner production cost model.

According to the firm’s “difficulty regression model,” miners’ break-even point currently stands at $24,300, which means that these miners are only making profits of less than 10% right now.

This could be an especially troubling fact for the miners given that the Bitcoin halving is going to take place sometime next year and will slash their rewards flat in half.

BTC Price

Bitcoin has shown some recovery during the past day as its price is now trading above the $26,800 level.

Ordinal inscriptions have quickly consumed Bitcoin’s available block space since their debut last year, a study by blockchain analytics firm Glassnode found. These text and image files act as “packing filler,” filling any remaining space in blocks after higher-value transactions are added, the study showed.

Bitcoin’s Block Space: Monetary Transfers Overpower Inscriptions

Though there’s been a surge in Ordinal inscriptions in 2023, a Glassnode study found that financial transactions remain the priority on Bitcoin’s blockchain. Glassnode researchers emphasized that “there’s little evidence inscriptions are pushing out monetary transfers.”

“Inscriptions appear to be buying and consuming the cheapest available blockspace, and are readily displaced by more urgent monetary transfers,” the report states. Despite the increase, inscriptions account for about 20% or less of transaction fees paid to miners.

The technology lets users add content to the Bitcoin blockchain using the Segwit data structure and Taproot. An initial wave of image NFTs shifted to mainly text files as the BRC-20 token standard appeared, Glassnode researchers said.

Daily transaction counts have exceeded 550,000 several times this year as inscriptions add more transfers to the limited block size. The average block now contains up to 3,500 transactions, up from 2,500 in past years, the report showed.

Of all confirmed transactions, inscriptions comprise 40% to 60% since May. The resulting UTXO set grew by more than 46 million entries (up 34%) in 2023, the quickest growth ever recorded. While miner revenue has increased, income per hash rate is near historic lows.

“With extreme miner competition in play, and the halving event looming, it is likely that miners are on the edge of income stress,” Glassnode said.

Overall network fees have doubled to about 38 BTC daily but represent only 4% of miner rewards. At the same time, Bitcoin’s mining difficulty has risen by 50% as more specialized and advanced mining equipment is used.

With the next halving predicted in just 206 days, Glassnode believes most miners will experience significant income challenges unless BTC prices increase significantly. Glassnode noted that while inscriptions might be taking up space, they haven’t boosted miners’ earnings.

What do you think about Glassnode’s report on inscriptions and monetary transfers? Share your thoughts and opinions about this subject in the comments section below.

Ripple Labs, a prominent blockchain technology firm, has recently appointed Lauren Belive, a former US White House staff member, as Head of US Public Policy and Government.

This appointment comes at a crucial juncture as Ripple executives have publicly voiced their concerns and criticisms regarding the US government’s recent position on cryptocurrencies. 

In response, Ripple has taken proactive steps by engaging with policymakers in Washington, D.C., seeking clearer regulatory guidelines and advocating for their stance in the ongoing legal battle between Ripple Labs and the US Securities and Exchange Commission (SEC).

Ripple Bolsters Advocacy Efforts

In a LinkedIn post dated September 26, Belive expressed her excitement about her new challenge and highlighted Ripple’s position as a pioneer in revolutionizing cross-border payments.

Belive’s responsibilities will involve leading Ripple’s engagement efforts in Washington, D.C., and nationally to participate in actively and drive conversations related to cryptocurrency policies. 

In the announcement, Belive emphasized the importance of advocating for regulatory frameworks that support the crypto industry and the individuals and businesses that benefit from technological advancements. Belive claimed:

As we navigate this transformative journey, engagement is pivotal. My role will be to lead our engagement in Washington and nationally, ensuring that we are not only part of the conversation but driving it forward with clarity and purpose. With regulatory landscapes evolving, it’s paramount that we advocate for policies that not only support the crypto industry but also the countless individuals and businesses that could benefit from these advancements.

With an extensive background in politics and policy, Lauren Belive could bring valuable experience to her role at Ripple. Belive previously worked on Capitol Hill, serving as Policy Director for the House Committee on Rules, where she collaborated with House leadership to coordinate messaging and facilitate the passage of legislation.

Belive’s career began in 2008 when she joined the Obama White House in the Office of Legislative Affairs, where she played a crucial role in advancing significant legislative agendas. 

Lauren Belive also contributed to the Obama for America Campaign 2008 as a Regional Research Director, showcasing her dedication to public service and political campaigns.

All around, Ripple’s decision to hire a former White House staff member underscores its goal to engage with policymakers actively and contribute to the development of crypto-friendly regulations. 

By leveraging Belive’s expertise and insights, Ripple aims to navigate the regulatory landscape effectively and promote the broader adoption of blockchain technology in the finance industry.

As of the current market update, the price of XRP stands at $0.5017, displaying a relatively stable trend over the past week. There has been a slight decrease of 0.1% in the past 24 hours and a 3.3% decrease over the seven days. 

Despite these minor fluctuations, XRP continues to maintain its position as the fifth-largest cryptocurrency in the market.

Featured image from Shutterstock, chart from TradingView.com 

XRP, DOGE, and SHIB have been some of the cryptocurrencies that have been undeterred by the persistent crypto winter as they have continued to appear in partnerships that promote mainstream adoption. This time around, all of these cryptocurrencies are making their way into the traditional finance market with a new partnership.

Pay Your Mortgage And Loans With DOGE, SHIB, And XRP

Blockchain payment system FCF Pay took to X (formerly Twitter) to announce a new partnership that changes how investors are able to use their cryptocurrencies in the real world.

The announcement revealed that FCF Pay had partnered with HSBC, one of the largest banks in the world, to allow users to make payments using their platform.

HSBC customers!

We are delighted to announce that @HSBC users are eligible to pay their mortgage bills and loans with cryptocurrencies through FCF Pay.

Some of the accepted cryptocurrencies you can pay with:
Bitcoin, Ethereum, Binance Coin, Ripple, Doge, Shiba Inu + Many more!… pic.twitter.com/SEzcveJ5vq

— FCF PAY – Blockchain Payment System (@fcfpay) September 26, 2023

As part of the partnership, FCF Pay users will be able to make payments on their loans and mortgages held with HSBC banks using cryptocurrency. The blockchain-based payments provider offers a wide variety of cryptocurrencies that users can pay with including but not limited to Bitcoin, DOGE, XRP, and SHIB.

This means that users who hold these coins now have the option to use them to make payments in the traditional finance space. The new partnership now adds loan and mortgage payments to an already wide array of payment capabilities offered by the platform for crypto payments.

Crypto Mortgage Payments Are Not New

Although the announcement by FCF Pay is exciting, this is not the first time that crypto would be allowed for loan and mortgage payments. In the last few years, the real estate industry has warmed up to crypto with purchases and mortgages being allowed in a number of places.

One of those who announced crypto mortgages is United Wholesale Mortgage, which is billed as the second-largest mortgage lender in the United States. The Michigan-based United Wholesale Mortgage announced in 2021 that it plans to start accepting crypto payments for mortgages. Although the firm reversed its decision not too long after its initial announcement, others have followed suit.

In 2022, a Miami-based Fintech called Milo announced mortgages backed by crypto holdings. At the time, the CEO of Milo, Josip Rupena, said that the firm was doing this in an effort to keep up with the needs of its customers. Additionally, in April 2022, US mega-bank Goldman Sachs announced the introduction of Bitcoin-backed loans.

These developments suggest that cryptocurrencies are already moving beyond the realm of just being speculative assets within a relatively small bubble. It shows that cryptocurrencies, albeit volatile, can find a place in the traditional finance sector.

YieldFlow is a platform worth considering if you’re looking for a way to make money off of your idle cryptocurrency assets in a user-friendly, decentralized ecosystem.

We shall examine the variety of instruments that this platform offers that are of interest in the ensuing in-depth evaluation of YieldFlow. In addition, we will evaluate the platform’s strong security measures, analyze any other noteworthy features, and carefully evaluate the competitive Annual Percentage Yields (APYs) that are available.

Crypto fans wishing to invest their idle assets have an exciting potential with YieldFlow, a platform in the decentralized finance market. YieldFlow presents itself as a potential remedy in the dynamic realm of cryptocurrencies, where clinging to assets may not be as profitable as actively engaging in decentralized finance protocols.

Democratizing DeFi for All: YieldFlow’s User-Friendly Approach

YieldFlow is a platform that aims to democratize access to the world of DeFi by offering straightforward financial products based on cryptocurrencies. Unlike many other DeFi platforms that may be complex, YieldFlow is designed to cater to both newcomers and experienced users.

The platform offers four proprietary tools:

Staking: Investors can deposit their cryptocurrency tokens into a blockchain ecosystem, and in return, they receive rewards. These rewards are essentially incentives for helping to secure and maintain the blockchain network.

Lending: YieldFlow enables users to lend their idle cryptocurrency tokens to others in exchange for a money-worth APY. This means that by lending their assets, users can earn interest on them.

Yield Farming: This tool is more intricate and involves users providing liquidity to decentralized exchanges. In doing so, they contribute to the smooth functioning of these exchanges and, in return, earn a share of the trading fees generated within the liquidity pool.

Liquidity Pools: In order to establish a trading pair, liquidity pools necessitate users to deposit two cryptocurrencies in equal proportions. The purpose of these tokens is to provide liquidity for the execution of trades. YieldFlow provides a proportionate share of the transaction fees received as compensation for contributing liquidity.

In essence, YieldFlow simplifies DeFi for a broader audience, making it accessible to both novices and experts, and offers a range of financial instruments to help users grow their cryptocurrency holdings.

Empowering Passive Income and Token Ownership with YieldFlow

YieldFlow provides a platform that facilitates passive income for investors while ensuring the retention of ownership of their cryptocurrency tokens, allowing them to benefit from potential price appreciation.

This dual approach enables investors to experience growth on two fronts. A noteworthy characteristic of YieldFlow is its decentralization, eliminating a single point of failure and ensuring that the platform never gains control over investors’ digital assets.

Instead, all investments, whether in staking, lending, or yield farming, are executed through smart contracts. Additionally, YieldFlow offers the advantage of enabling users to earn income without the need to disclose their identity.

Users can initiate their investment journey by connecting their wallets to the platform. Yields may vary based on the specific interest tools and crypto tokens used.

Enjoy APYs of +50%

Following the recent launch of the V3 liquidity pool, participants now have the opportunity to earn APYs exceeding 50% when they provide liquidity for pairs such as USDT and ETH. This significant increase in potential yield makes participating in these pairs particularly attractive for liquidity providers looking to maximize their earnings in the crypto space.

Stamp of Approval: YieldFlow is Certik Certified

YieldFlow stands out in the DeFi space for its strong focus on security and transparency. Unlike many other projects, it makes all of its smart contracts easily accessible on GitHub for public review. Furthermore, YieldFlow has undergone a thorough audit by Certik, a top authority in crypto security. This ensures a high level of safety for users’ assets.

About YieldFlow

YieldFlow, established in 2023, is a decentralized staking and lending platform designed to empower investors in generating passive income from their tokens while retaining control over their assets.

In light of recent disruptions in trust with centralized lending platforms and exchanges, YieldFlow’s mission, as outlined in its whitepaper, is to offer an easily accessible, sustainable, profitable, and anonymous cash flow by providing members with smart contract-based, automated, and carefully curated investment opportunities.

This initiative represents an exciting development in the crypto landscape, addressing the growing need for secure and user-centric financial services.