Blockchain technology is claimed to be according to blockchain proponents to be one of the most impactfull discoveries in the recent history. It is promised to have a massive potential to change how we handle online transactions. Despite some skeptics, the majority of experts agree that blockchain has the potential to disrupt the banking and financial industry, and many other ones! To put it simply, blockchain enables decentralized transactions across a P2P network. There are applications where those propertied can be very useful, but there are many cases where blockchain migh not be the best solution even though it is hyped to be solution for very many application (remember to ask Do you need a blockchain? often).
This 16 Blockchain Disruptions (Infographic) by bitfortune.net tries to help you understand how the blockchain technology can and will improve 16 different industries, from music to government.
Infographic by bitfortune.net
1,206 Comments
Tomi Engdahl says:
Olga Kharif / Bloomberg:
As Ethereum moves to proof of stake, about 11% of ETH is staked and earning but won’t be withdrawable until the “Shanghai” update, expected in about six months
Liquidity Risk Is a Side Effect of Ethereum Crypto Upgrade
https://www.bloomberg.com/news/articles/2022-09-14/-illiquidity-risk-is-a-side-effect-of-ethereum-crypto-upgrade#xj4y7vzkg
Staked Ether owners can’t offload until an upgrade months away
About 11% of all Ether supply has already been staked
David Pan / Bloomberg:
Ethermine, the largest Ethereum mining firm, will shut down its servers for miners after Ethereum’s Merge, switching its mining pool to withdraw-only mode — Ethermine, the largest Ethereum mining services provider by computing power, will shut down its servers for miners after the blockchain completes its historic technical upgrade.
World’s Biggest Ether Mining Firm to Shut Down After the ‘Merge’
https://www.bloomberg.com/news/articles/2022-09-14/world-s-biggest-ether-mining-firm-to-shut-down-after-the-merge#xj4y7vzkg
Ethermine will halt services for miners post-upgrade
As many as one million people will cease to mine Ether
Tomi Engdahl says:
Coinbase is getting political, adding features to evaluate crypto policy issues
https://www.theblock.co/post/170159/coinbase-is-getting-political-adding-features-to-evaluate-crypto-policy-issues
Coinbase is getting political: The exchange added new app features to help users evaluate lawmakers, register to vote and find political events.
The app will feature a new scorecard which evaluates members of Congress on crypto policy issues.
Coinbase users can evaluate lawmakers’ crypto bona fides, register to vote and discover political events on the exchange’s app, co-founder and CEO Brian Armstrong announced.
The company added the new features as part of its mission of “increasing economic freedom,” Armstrong said in a Twitter thread. Washington lawmakers and regulators are eyeing new rules for the industry after this summer’s market crash, and Coinbase launched a voter registration and education initiative last month.
“Crypto advocacy is very important for our mission of increasing economic freedom in the world, and Coinbase will do its part to help,” Armstrong said. “But the crypto community is much bigger than Coinbase – hopefully we can all rally to engage elected leaders and drive sensible policies.”
Tomi Engdahl says:
Mike Truppa / The Block:
Ethereum activates its long-awaited The Merge upgrade and transactions are now being processed under proof of stake — – The Merge upgrade is transitioning Ethereum from proof of work to proof of stake. — The Merge is one of the largest technological events in the industry to date.
Ethereum activates The Merge as it shifts to proof of stake
https://www.theblock.co/post/169299/ethereum-activates-the-merge-as-it-shifts-to-proof-of-stake
Quick Take
The Merge upgrade is transitioning Ethereum from proof of work to proof of stake.
The Merge is one of the largest technological events in the industry to date.
The first epoch has not yet been finalized.
Ethereum has activated The Merge and transactions are now being processed under proof of stake.
The Merge upgrade was activated at the agreed upon Total Terminal Difficulty (TTD) on Ethereum’s proof-of-work chain at 6:44 AM UTC today. TTD is a combined measure of how difficult it is to produce a block for transactions and how this has fared over time.
The first epoch was finalized at 6:59 AM. This is the key development that core developers were looking for to see if the upgrade has gone to plan.
“And we finalized! Happy merge all. This is a big moment for the Ethereum ecosystem. Everyone who helped make the merge happen should feel very proud today,” said Ethereum co-founder Vitalik Buterin on Twitter.
What is The Merge?
The Merge has been in development since 2020 and is the second and final step in the transition to proof of stake.
It represents the official switch to using the proof-of-stake Beacon Chain for block production. The Merge also represents the shift from mining — using computing power to produce blocks for rewards — to validating, where it is no longer a competitive environment for validating transactions.
The Beacon Chain’s launch in 2020 was the first step of The Merge. Ethereum developers wanted to break The Merge into two steps, giving optimal time to test the upgrade prior to fully switching to proof of stake.
This reduces Ethereum’s energy consumption by more than 99%. This means that Ethereum is now Environmental, Social, and Governance (ESG) compliant, which has been a regulatory concern dissuading businesses from participating in novel sectors such as DeFi and NFTs.
This has been an overarching concern as of late, largely centered around the carbon footprint of proof-of-work blockchains.
The Merge will also reduce Ethereum’s issuance of ETH by roughly 90%, according to ultrasound.money.
Ethereum developers will now focus on growing the blockchain’s scalability via rollups. Rollups, often referred to as layer 2 networks, bundle transactions on their own respective chains and settle them en masse on Ethereum. This divvying approach allows layer 2s to execute vastly cheaper and faster transactions, while still receiving the benefit of Ethereum’s security (albeit with some compromises).
Tomi Engdahl says:
Kryptovihaajilta lähti nyt yksi argumentti pois. Jäljellä on lähinnä huijausten suuri määrä, jota voisi yrittää korjata esimerkiksi lompakkojen paremmalla käytettävyydellä.
Moottorin vaihtaminen kesken lennon onnistui – Ethereum-lohkoketju hylkäsi sähköä syövän louhimisen
https://yle.fi/uutiset/3-12624764?origin=rss
Ethereum siirtyi onnistuneesti uuteen validointimalliin aamupäivällä. Muutoksen arvioidaan vähentävän Ethereumin sähkönkulutusta yli 99 prosentilla.
Tomi Engdahl says:
Miners flee to Ethereum Classic as ‘the Merge’ arrives
https://techcrunch.com/2022/09/15/miners-ethereum-classic-the-merge/?tpcc=tcplusfacebook
The Merge, the long-awaited software upgrade that promises to make Ethereum transactions a lot greener, is expected to put miners out of jobs. But miners are not quitting outright. With big bucks invested in computing hardware, many of them are seeking refuge in an alternative branch of Ethereum.
Ethereum Classic, a hard fork of the Ethereum network, saw its hash rate soar to a record high on Thursday morning shortly after the Merge was completed.
Hash rate is the computational power used to approve transactions on a blockchain, a mechanism called proof-of-work. Following the Merge, Ethereum is switching to a consensus method called proof-of-stake. Instead of competing with powerful computers and essentially chips, node operators stake their cryptocurrencies to win the chance to validate transactions.
Ethereum Classic, which trades as ETC, grew out of an ideological rift within the Ethereum community.
The other version of the fork, which became Ethereum Classic, kept the hack in order to preserve the immutability proposed by blockchain technology.
Aside from keeping the network’s ledgers pristine, Ethereum Classic also continues to practice the PoW method, attracting miners made redundant by the mainstream Ethereum (ETH). But the classic blockchain is far less popular than Ethereum today.
Nonetheless, miners are piling into ETC, which might undermine some of the environmental benefits of the Merge. As James, who has been mining since 2017, said: “ETH is an abandoned project by the ETH foundation and we are the abandoned miners. Rigs are invested and facilities are set up with nowhere to go. The only viable option at the moment is Ethereum classic.”
“Miners did not stop mining, they just shift to other options to mine. Energy consumption continued,” he added.
Tomi Engdahl says:
It’s estimated that Bitcoin consumes electricity at an annualized rate of 127 terawatt-hours (TWh).
https://www.forbes.com/advisor/investing/cryptocurrency/bitcoins-energy-usage-explained/
Tomi Engdahl says:
It’s estimated that Bitcoin consumes electricity at an annualized rate of 127 terawatt-hours (TWh).
“Of course, this is wasteful in the sense that 99.99% of all the machines that did work just throw away the result since they didn’t win the race,” says Brody. While this process produces a fair and secure result, it also creates a ton of carbon emissions. “I very much doubt [whoever founded] Bitcoin anticipated such enormous success in the future and, consequently, the enormous amounts of power we’re talking about,” Brody says.
This process also takes an immense amount of time: Upwards of 10 minutes per Bitcoin transaction. That’s the time it takes for a new block to be mined.
https://www.forbes.com/advisor/investing/cryptocurrency/bitcoins-energy-usage-explained/
Tomi Engdahl says:
How much energy? Bitcoin, the world’s largest cryptocurrency, currently consumes an estimated 150 terawatt-hours of electricity annually — more than the entire country of Argentina, population 45 million.
https://news.climate.columbia.edu/2022/05/04/cryptocurrency-energy/
Tomi Engdahl says:
Bitcoin mining now consumes 0.5 percent of the world’s electricity, and usage is rising, according to the researchers.13.9.2021
https://www.chicagobooth.edu/review/why-youre-paying-bitcoins-energy-bill
Tomi Engdahl says:
tarkkoja tilastoja tuskin on kenelläkään, mutta hyvin paljon on dataa siitä, kuinka valtavasti energiaa kuluu louhintaan. Tässä vain yksi tuhansista artikkeleista https://www.cnbc.com/2022/09/08/crypto-mining-could-hinder-battle-against-climate-change-white-house.html
Tomi Engdahl says:
Tässä on yksi arvio. https://ethereum.org/en/energy-consumption/
Tomi Engdahl says:
https://yle.fi/uutiset/3-12623106?
Kryptomaailma mullistuu torstaiaamuna, kun Ethereum luopuu louhinnasta – maailman toiseksi suurimman lohkoketjun energiankulutus putoaa murto-osaan
Vuonna 2015 käynnistetty Ethereum toimii alustana valtaosalle kryptosovelluksista. Ethereumin on tarkoitus vaihtaa lohkoketjun ylläpitoon käytettyä todistusmenetelmää aamulla.
Tomi Engdahl says:
https://m.facebook.com/groups/bisnessosialistit/permalink/1129337820988350/
keskustelusta:
Using these carbon intensities, it is found that the Bitcoin network could be responsible for 65.4 megatonnes of CO2 annually, which is comparable to country-level emissions in Greece.
Sami Kuusela Kiitos. Nopeasti haeskelemalla netin syövereistä sain semmoisia lukuja kuin. Cryptoihin kuluu energiaa noin 165TWh vuonna 2021. Vastaavasti Energian kokonaiskulutus maailmassa on 170 000TWh. Tässä luvussa on kaikki öljy, kaasu, kivihiili, sähkö(ydinvoima, vesivoima ja uusiutuvat muut) Aika marginaali kulutuksesta siis kyse. Sähköä käytettiin noi 23 900 TWh. Yllättävä asia oli pankkitoiminnan energian käyttö 264TWh ja kultaan kuluu 241 TWh.
Sanoisin itse että nyt ollaan marginaalinen äärellä puhuttaessa cryptojen aiheuttamasta ympäristötuhosta. Paikallista sähköenergian vajetta se tuottaa, siitä ei ole epäselvyyttä.
https://www.nasdaq.com/articles/research%3A-bitcoin-consumes-less-than-half-the-energy-of-the-banking-or-gold-industries
https://www.statista.com/statistics/280704/world-power-consumption/
https://www.iea.org/data-and-statistics/data-tools/energy-statistics-data-browser?country=WORLD&fuel=Energy%20supply&indicator=TESbySource
Siis tosissasi vertaat bitcoinia ja kansainvälistä pankkijärjestelmää? Ja oot tyytyväinen kun vaihdantaan lähes sopimaton krypto käyttää vain PUOLET energiasta, mitä pankkijärjestelmä kuluttaa?
suhteessa hyötyynsä btc:n pitäs kuluttaa miljardisosa pankkijärjestelmän energiakulutuksesta
Ei se ole ongelma, jos siitä ei halua tehdä ongelmaa. Sama energia kulutetaan tuohon maailman viheliäsimpään asiaan eli verkkomainontaan.
“we calculated the carbon emissions of online advertising, and found it produces 60 Mt CO2e (between 12 and 159 Mt of CO2e when considering uncertainty).”
Onko verkkomainontakin ympäristöä tuhoavaa. Sen vaikutushan ei jää yksistään siihen verkkoon, pitää ottaa huomioon myös lisääntyneen tuotannon aiheuttama ympäristö kuorma(energian kulutus, raaka-aineet)
https://www.researchgate.net/publication/328665574_Environmental_impact_assessment_of_online_advertising
Sami Kuusela Nyt on pakko sanoa etten ole varma tuleeko CBDC pohjautumaan millään asteella lohkoketjuihin. Tarkkaa määritelmää sille ei ole. Asian tiimoilta käydään kuitenkin kovaa keskustelua.
“There is a hot debate on adoption of blockchain in CBDC design. Characteristics of blockchain are suitable for requirements of CBDC design.”
https://www.sciencedirect.com/science/article/pii/S2405959521001399
Forbesin mukaan ei olisi tulossa lohkoketjuja
https://www.forbes.com/sites/davidbirch/2022/08/03/when-the-cbdc-revolution-comes-it-wont-be-on-the-blockchain/?sh=8b7d73283af5
PWC näkee hyötyjä lohkoketjujen käytössä. Ohjelmoitava raha olisi toteutettavissa lohkoketjuja käyttäen.
“CBDCs are a relatively new concept, but the exploratory and experimental phase by various Central Banks worldwide is already well underway, as well as the interest in understanding how new technologies, such as Blockchain, can support the creation of a new form of money that brings benefits in all its applications.”
Linkin takana sivulla linkki tarkempaan pdf versioon
https://www.pwc.com/it/it/publications/en-central-bank-digital-currency.html
Anssi Sarajärvi Ilmeisesti ajatuksena ei ole, että CBDC:t perustuisivat bitcoinin tavoin louhimiseen, joka siis sitä energiaa mässäilee. “therefore, CBDC does not require the energy-intensive consensus or mining mechanisms used by a cryptocurrency, so its energy consumption is lower (comparable to that of a credit card system). CBDC can be designed to use various systems, such as Real Time Gross Settlement (RTGS), Distributed Ledger Technology (DLT), or a mixture of both.” https://openknowledge.worldbank.org/handle/10986/37702
Tomi Engdahl says:
https://m.facebook.com/groups/bisnessosialistit/permalink/1129337820988350/
Älysopimuksia tukevat lohkoketjuthan ovat pohjimmiltaan laskenta-alusta, joka vähentää koordinointikustannuksia erityisesti yli kansallisvaltiorajojen. Aikamme suurimmat ongelmat eivät kunniota kansallisvaltiorajoja ja siksi kansallisvaltioiden on hyvin vaikea niitä myös ratkoa. Näen suuren mahdollisuuden natiivisti digitaalisissa yhteisöissä, jotka pystyvät luomaan ratkaisuja mm. ilmastonmuutokseen.
Näitä ReFI eli Regenerative Finance -projekteja on tekeillä paljon, yhtenä esimerkkinä NewAtlantis:
https://blog.refidao.com/introducing-new-atlantis-on-gr15/
Tomi Engdahl says:
Wall Street Journal:
Speaking hours after Ethereum’s Merge update, SEC Chair Gary Gensler says cryptocurrencies that let holders stake coins may be subject to US securities laws — SEC chairman says system used by ether following software update could trigger securities laws — WASHINGTON—Ethereum’s big software update …
Ether’s New ‘Staking’ Model Could Draw SEC Attention
SEC chairman says system used by ether following software update could trigger securities laws
https://www.wsj.com/articles/ethers-new-staking-model-could-draw-sec-attention-11663266224?mod=djemalertNEWS
Ethereum’s big software update on Thursday may have turned the second-largest cryptocurrency into a security in the eyes of a top U.S. regulator.
Securities and Exchange Commission Chairman Gary Gensler said Thursday that cryptocurrencies and intermediaries that allow holders to “stake” their coins might pass a key test used by courts to determine whether an asset is a security. Known as the Howey test, it examines whether investors expect to earn a return from the work of third parties.
“From the coin’s perspective…that’s another indicia that under the Howey test, the investing public is anticipating profits based on the efforts of others,” Mr. Gensler told reporters after a congressional hearing. He said he wasn’t referring to any specific cryptocurrency.
Issuers of securities—a category of assets that includes stocks and bonds—are required to file extensive disclosures with the SEC under laws passed in the 1930s. Exchanges and brokers that facilitate the trading of securities must comply with strict rules designed to protect investors from conflicts of interest. Cryptocurrency issuers and trading platforms face strict liabilities if they sell any assets that are deemed to be securities by the SEC or courts.
Staking is one of two ways in which cryptocurrency networks verify transactions. Used by some of the largest cryptocurrencies—including Solana, Cardano and, as of this week, ether—it allows investors to lock up their tokens for a specified amount of time to receive a return.
If an intermediary such as a crypto exchange offers staking services to its customers, Mr. Gensler said, it “looks very similar—with some changes of labeling—to lending.”
Competition for jurisdiction over crypto is heating up among federal agencies and the congressional committees they answer to. As the Senate Agriculture Committee, which oversees the Commodity Futures Trading Commission, held a hearing Thursday to vet a crypto bill, the Senate Banking Committee, which oversees the SEC, held a simultaneous hearing for members to question Mr. Gensler.
The crypto bill proposed by leaders of the agriculture group last month would specifically designate bitcoin and ether as digital commodities rather than securities. Under current law, such assets have no federal regulator. The bill would grant the CFTC, which oversees derivatives markets, authority to regulate digital commodities.
Exchanges such as Coinbase and FTX would be required to register with the CFTC, monitor trading, protect investors from abuse and only offer assets that are resistant to market manipulation, among other rules. They also would be obliged to disclose some information about the assets they list, such as operating structure and conflicts of interest.
Consumer-protection advocates worry that the CFTC lacks the resources and experience to look out for small investors in a market that Mr. Gensler has described as the Wild West. The CFTC’s staffing is a fraction of the SEC’s
To fund its oversight of the digital commodity market, the CFTC would need $112 million over the first three years for rule making, hiring, training and outreach purposes, CFTC Chairman Rostin Behnam said during the hearing. He said the amount would be generated from crypto companies in the form of a user fee. The agency has a current annual budget of $320 million, Mr. Behnam added.
The crypto industry has shown a strong preference to be regulated by the CFTC instead of the SEC, which has a rigorous disclosure regime that crypto lobbyists argue is expensive and impractical. Crypto firms have spent millions of dollars lobbying congress for its interests.
Before moving to the proof-of-stake model this week, ether previously relied on an alternative model, known as proof-of-work, the model bitcoin uses. The model is often criticized for its high energy use because miners commit massive amounts of computing power to the network.
Under the bill, the CFTC also would be required to work with other regulators with expertise in the energy space to produce a report on the energy consumptions of crypto projects.
Tomi Engdahl says:
Ethereum drops more than 17% after ‘way overhyped’ Merge
https://techcrunch.com/2022/09/19/ethereum-drops-more-than-17-after-way-over-hyped-merge/?tpcc=tcplusfacebook
Four days ago, just a few minutes before 3 a.m. EDT, a long-anticipated upgrade to Ethereum was executed. Since then, the second most valuable blockchain’s cryptocurrency, ETH, has tumbled — and some are saying its price hasn’t bottomed out yet.
When the upgrade, generally referred to as “the Merge,” transpired, ETH was priced at about $1,600. At the time of publication, ETH is worth about $1,327 down just over 17% from the landmark system change.
“The FOMO and speculation around the Merge are done, and it’s back to business as usual for most in the space.”
Flux co-founder Daniel Keller
Since Ethereum moved from proof-of-work (PoW) to proof-of-stake (PoS), it left its crypto miners “behind” in the transition, he added.
“Did they alienate a core demographic and remove one of the best parts of decentralization? I think we see the direct impact of that speculation to the downside,” Keller said.
Tomi Engdahl says:
Pian nähdään jättimäinen näytönohjainten alennusmyynti? Yksikään krypto ei ole enää kannattavaa louhijoille
https://fin.afterdawn.com/uutiset/2022/09/18/pian-nahdaan-jattimainen-naytonohjainten-alennusmyynti
Suosituin näytönohjainten laskentatehoa valjastanut kryptovaluutta oli vuosien ajan Ethereum-pohjainen ether ja sen tuottojen perässä juoksivat sekä yksityiset kryptovaluuttaa louhivat käyttäjät, mutta myös ammattimaiset, valtavat kryptojen louhintaan erikoistuneet kryptofarmit.
Mutta torstaina 15.9.2022 tapahtunut Ethereumin mekanismin täydellinen muutos eli The Merge vei kokonaan pohjan Ethereumin louhimiselta – sitä ei voi yksinkertaisesti enää luoda louhimalla uusia ether-kolikoita näytönohjaimen avulla.
Viime vuosina nimenomaan Ethereum on ollut se syy, miksi huipputehoiset NVIDIAn näytönohjaimet ovat karanneet tavallisten pelaajien ulottumattomiin.
Ethereumin muutoksen jälkeen useat kryptolouhijat ovat epätoivoisesti etsineet itselleen uutta kryptovaluuttaa, johon käyttää hankittua kallista rautaa. Turhaan. Kaikki näytönohjaimen laskentatehoon pohjautuvat kryptovaluutat ovat tällä hetkellä joko arvostukseltaan niin matalalla tasolla, että louhimiseen kuluisi enemmän sähköä (entisillä halvan sähkön hinnoillakin) että homma ei yksinkertaisesti kannata.
Varovaisia merkkejä siitä, että louhijat ovat itsekin huomanneet homman muuttuneen kannattamattomaksi, on jo olemassa. Suomessakin mm. Torissa on ollut jo heinäkuusta lähtien aavistuksen aiempaa enemmän RTX 3090 -näytönohjaimia ja kokonaisia louhintalaitteistoja myynnissä. Mutta useat mediat ja analyytikot arvioivat hullujen päivien olevan vasta nurkan takana.
Syksyn edetessä todennäköisesti kryptoihin käytettyjä näytönohjaimia alkaa virtaamaan käytettyjen komponenttien markkinoille – pahimmillaan valtavia määriä, jopa miljoonia. Vaikka louhintaan käytetty kortti onkin sinänsä jonkinasteinen riskiostos kulutuksen takia, tulisi tuhansien käytettyjen korttien rysähtäminen markkinoille sotkemaan myös uusien näytönohjainten myyntiä merkittävästi.
kannattaa odottaa hieman ja katsoa, miten rytinä lopulta näkyy näytönohjainten hinnoissa (ja milloin).
Tomi Engdahl says:
Frank Chaparro / The Block:
Sources: Nasdaq is exploring an institutional crypto custody service, pending regulatory approval, and a crypto-focused division called Nasdaq Digital Assets
Nasdaq is preparing to launch an institutional crypto custody service
https://www.theblock.co/post/171095/nasdaq-is-preparing-to-launch-an-institutional-crypto-custody-service
Quick Take
Nasdaq has been plotting a move into crypto custody, according to several sources.
The move is in line with its broader mission to be a service provider in the crypto space rather than facilitate trading of cryptocurrencies.
Equity exchange operator Nasdaq has been plotting a move into institutional crypto custody service, according to several people briefed by the company.
The firm, which operates markets in U.S. and global equities, is no stranger to the cryptocurrency market, having served as a provider of market surveillance technology to cryptocurrency exchange venues since at least 2018. In February 2021, the exchange announced the debut of the Hashdex Nasdaq Crypto Index ETF, which is based on its own index.
Historically, the firm has opted to provide technology to crypto market participants versus operating a market itself to compete with the likes of Coinbase and FTX.
The new offering is pending regulatory approval, according to a source. Nasdaq is also establishing a new crypto-focused division in tandem with its exploration into crypto custody, Nasdaq Digital Assets.
Tomi Engdahl says:
Sander Lutz / Decrypt:
In a federal lawsuit against crypto influencer Ian Balina, the SEC claims the entire Ethereum network falls under the US government’s purview — In a civil complaint against a crypto influencer, the SEC suggested that it believes the U.S. government has jurisdiction over all Ethereum transactions.
SEC Claims All of Ethereum Falls Under US Jurisdiction
https://decrypt.co/110107/sec-ethereum-us-jurisdiction
In a civil complaint against a crypto influencer, the SEC suggested that it believes the U.S. government has jurisdiction over all Ethereum transactions.
When the SEC filed a federal lawsuit Monday against crypto influencer Ian Balina for his failure to register a cryptocurrency as a security before launching a 2018 initial coin offering (ICO), everything at first appeared run-of-the-mill: the SEC has, for years, filed civil suits against individuals and organizations for rolling out unregistered ICOs
In a bold and potentially unprecedented move buried in the lawsuit’s 69th paragraph, the SEC today claimed it had the right to sue Balina not only because his case concerns transactions made in the United States, but also because, essentially, the entire Ethereum
network falls under the US government’s purview.
In a bold and potentially unprecedented move buried in the lawsuit’s 69th paragraph, the SEC today claimed it had the right to sue Balina not only because his case concerns transactions made in the United States, but also because, essentially, the entire Ethereum
network falls under the US government’s purview.
In its complaint, the regulator noted that the ETH sent to Balina was “validated by a network of nodes on the Ethereum blockchain, which are clustered more densely in the United States than in any other country.” The SEC then concludes: “As a result, those transactions took place in the United States.”
The SEC appears to be suggesting that, because more of Ethereum’s validating nodes currently operate in the United States than in any other country, all Ethereum transactions globally should be considered of American origin. Currently, 45.85% of all Ethereum nodes operate from the United States, according to Etherscan. The second-greatest density of nodes is in Germany, with only 19%, by comparison.
“Saying that enables [the SEC] to characterize doing business on the Ethereum blockchain, as doing business on a US securities exchange,” University of Kentucky law professor Brian Fyre told Decrypt. “Which, from their regulatory perspective, is convenient. It makes things so much simpler.”
If the SEC were to successfully classify activity on Ethereum as akin to that on an American securities exchange, it would amount to the regulatory body laying claim to jurisdiction over all activity on the ostensibly decentralized Ethereum network. Such a development would constitute a major escalation in the SEC’s role in overseeing both Ethereum, specifically—where the vast majority of NFT and DeFi activity takes place—and crypto as a whole.
SEC Charges Crypto Influencer Ian Balina Over Unregistered ICO in 2018
The SEC alleges that Ian Balina violated securities regulations when conducting Sparkster’s $30,000 ICO in 2018.
https://decrypt.co/110078/sec-charges-crypto-influencer-ian-balina-unregistered-ico-2018
Tomi Engdahl says:
Miljardien arvoinen toimiala jäi tyhjänpantiksi: Valtavia määriä sähköä syönyt Ethereumin louhinta lakkasi
18.9.202215:45
LOHKOKETJU
KRYPTOVALUUTAT
Ethereumin louhiminen käytännössä lakkasi torstaiaamuna historiallisen lohkoketjumuutoksen seurauksena.
https://www.uusisuomi.fi/uutiset/us/2ec33f76-2ec2-4982-a294-c4ed6c6ac208?utm_medium=Social&utm_source=Facebook#Echobox=1663505610
Todennäköisesti maailman käytetyin lohkoketju Ethereum koki torstaiaamuna varsinaisen mullistuksen. Lohkoketjun toimintaperiaatetta muutettiin merkittävästi, minkä seurauksena sen energiankulutus putosi murto-osaan aiemmasta. Kyseessä oli jo vuodesta 2016 asti suunniteltu mittava muutoshanke.
Torstaihin asti Ethereum-siirrot varmistettiin käyttäen niin kutsuttua työtodistusmenetelmää (engl. proof of work ), joka vaatii suurta määrää laskentatehoa. Käytännössä lukuisat tietokoneet – tarkemmin sanottuna näytönohjaimet – ympäri maailman ratkoivat kilpaa erittäin vaikeita laskutehtäviä. Tästä prosessista käytetään nimeä louhinta. Ensimmäinen oikeaan ratkaisuun päässyt louhija palkittiin louhintapalkkiolla. Tätä menetelmää käyttää myös bitcoin.
Menetelmän heikkoutena on aina ollut runsas sähkönkulutus. Käytännössä eniten laskentatehoa louhintaan uhraava taho on todennäköisesti saanut louhintapalkkion. Tämän seurauksena louhintaa varten on perustettu teollisen mittaluokan louhintakeskuksia ja kryptovaluuttojen sähkönkulutus on noussut julkiseksi keskustelunaiheeksi.
Torstaina Ethereum hylkäsi työtodistuksen ja siirtyi käyttämään osuustodistukseksi (engl. proof of stake ) kutsuttua menetelmää siirtojen varmistamisessa. Laskentatehoon perustuvan louhinnan sijaan uudet siirrot varmistetaan asettamalla pantiksi ether-kryptovaluuttaa. Näin ollen etherin omistajat laittavat omaisuuttaan pantiksi varmistettujen siirtojen puolesta ja saavat samalla siivun uusista siirroista. Mikäli varmistaja yrittää huijata, hän menettää osan tai kaikki pantiksi asettamansa varat.
Aivan pikkurahalla varmistajaksi ei pääse, sillä pienin mahdollinen pantti on 32 etheriä. Se on nykykurssilla yli 50 000 euroa.
Koska uusi varmistusmenetelmä ei enää vaadi laskentatehoa, järjestelmän energiankulutus putoaa lähes nollaan aiempaan verrattuna. Muutos on massiivinen, sillä Ethereumin sähkönkulutus on ollut vuositasolla yli 90 terawattituntia.
Muutos tarkoittaa myös sitä, että Ethereumin louhintaan keskittyneet suurilta louhintakeskuksilta eli louhintafarmeilta loppuvat työt. Esimerkiksi alan suurin toimija, louhintatehoa palveluna tarjonnut Ethermine sulki palvelimensa, kirjoittaa Bloomberg.
Ethereumin louhinnasta ehti kasvaa miljardien arvoinen toimiala siitä lähtien, kun lohkoketju aloitti toimintansa vuonna 2014.
Osa louhijoiden muodostamista pooleista eli yhteenliittymistä ovat kuitenkin Decryptin mukaan jatkamassa louhimista, minkä takia Ethereum-lohkoketju haarautuu kahdeksi erilliseksi lohkoketjuksi. Näin ollen varsinaisen Ethereumin rinnalla on jatkamassa myös työtodistukseen perustuva versio Ethereumista. Louhijat voivat myös jatkaa muiden kryptovaluuttojen louhimista.
Tomi Engdahl says:
MK Manoylov / The Block:
MoonPay helps Universal Studios create a “Halloween Horror Nights” NFT scavenger hunt in its Orlando and Hollywood theme parks, minting up to 7M NFTs
MoonPay, Universal create an in-person NFT-based scavenger hunt with more than 6 million tokens
https://www.theblock.co/post/171491/moonpay-universal-create-an-in-person-nft-based-scavenger-hunt-with-more-than-6-million-tokens
Quick Take
MoonPay will use its utility minting service Hypermint to create up to 7 million NFTs for an in-person scavenger hunt at Universal Studios Theme Parks.
Park guests will need little to no crypto knowledge to claim these NFTs.
The scavenger hunt will occur Sept. 15-Oct. 31, 2022.
“We’re really excited about this because this is a real world use case that we’ve been trying to demonstrate with people,” MoonPay CEO Ivan Soto-Wright told The Block. “We’re going beyond just the profile picture identity movement with NFTs to actual real world utility.”
Park guests won’t require advanced crypto knowledge — or even knowing how to set up a crypto wallet — to claim these NFTs. “It’s just basically a claim page where you put in your email address, and boom, what we do in the background is we mint that NFT, we spin up a wallet for that particular person and then they’re able to claim it when they’re ready,” Soto-Wright said.
Seven types of NFTs can be found in both the Orlando and Hollywood Universal Parks. Those who collect all seven NFTs receive a “gold medal NFT,” which is “eventually going to do something” Soto-Wright said, without sharing additional details.
MoonPay originally launched Hypermint in June of this year as a service that lets brands mint up to 100 million digital assets at once.
Universal Pictures, the U.S. film studio behind Universal Theme Parks, was one of Hypermint’s launch partners
Tomi Engdahl says:
Sam Reynolds / CoinDesk:
A New York judge orders Tether to produce documents related to the backing of USDT in a lawsuit claiming Tether conspired to issue USDT to pump bitcoin prices — The order relates to an ongoing lawsuit that alleges that unbacked USDT issuances have caused $1.4 trillion in damage to the market.
Stablecoin Issuer Tether Ordered to Produce Documents Showing Backing of USDT
https://www.coindesk.com/markets/2022/09/21/stablecoin-issuer-tether-ordered-to-produce-documents-showing-backing-of-usdt/
The order relates to an ongoing lawsuit that alleges that unbacked USDT issuances have caused $1.4 trillion in damage to the market.
Tomi Engdahl says:
Andrew Hayward / Decrypt:
Nova Labs and T-Mobile sign a five-year deal to launch Helium Mobile, a 5G MVNO service for smartphones that combines coverage from the two companies’ networks
Helium Founders, T-Mobile Launch Crypto-Powered 5G Mobile Service
https://decrypt.co/110111/helium-t-mobile-crypto-5g-mobile-service
Helium Mobile will tap both the decentralized 5G network and T-Mobile’s service while also offering crypto rewards to users.
In brief
Nova Labs and T-Mobile have partnered to launch Helium Mobile, a 5G wireless service for smartphones.
It will use Helium’s decentralized, crypto-powered 5G network as well as T-Mobile’s network, and switch between the two as needed.
Crypto-fueled wireless network Helium will soon be able to introduce its mobile 5G vision to many more users. Today, Helium network founder Nova Labs announced that it has partnered with T-Mobile to create a new 5G wireless service called Helium Mobile.
Helium Mobile will be a mobile virtual network operator (MVNO) service and will tap both the T-Mobile and Helium networks for customers in the United States. Set to launch in the first quarter of 2023, the service will rely both on T-Mobile’s nationwide 5G network and Helium’s user-operated 5G nodes.
By combining networks and switching between the two as needed, Nova Labs says the service will offer two significant economic differentiators from traditional services: plans will start at just $5 per month, and users can also optionally earn crypto token rewards for sharing data.
Boris Renski, co-founder and CEO of Nova Labs-owned firmware and hardware maker FreedomFi, said that using Helium’s decentralized 5G network—which includes more than 4,500 active user-operated nodes at present—means that Nova doesn’t have to invest in capital expenditures to build out infrastructure.
“That allows us to build a cellular network with absolutely disruptive economics,” he told Decrypt.
On top of that, Helium Mobile will allow users to opt into receiving the network’s MOBILE token rewards in exchange for providing anonymized data about their network usage. Renski said that the service will treat such users as contributors, as the data will be used to monitor network quality and availability as it scales—but it’s purely optional.
Helium is a network of decentralized wireless hotspots that incentivizes users with crypto tokens for running a node and supporting the network. The initial Helium network, focused on powering Internet of Things (IoT) devices like sensors and trackers, has more than 950,000 node operators at present.
The 5G network is newer and has far fewer users so far, as the 5G hardware is also currently much more expensive than the nodes that support the original IoT network. I
How it works
Helium’s own 5G network will be the preferred network for Helium Mobile when coverage is available, Renski said. It’s a relatively small network at present, but it’s growing: Helium’s second network has taken shape since launching MOBILE token rewards, with over 1,700 new user nodes activated in the last 30 days—and Renski said the pace is increasing.
Initially, voice calls will take place entirely on T-Mobile’s network, while data transfers will use service provided by node operators in the decentralized network where available. Otherwise, it automatically falls back to T-Mobile’s network. As Helium’s network expands, more of the load will be moved off of T-Mobile’s infrastructure.
There’s still work to be done in the months ahead to make the automated process of switching more seamless, Renski told Decrypt. Initially, users may encounter small delays as their smartphone switches between one network and the other
“I would say that we have traveled maybe halfway on this journey at this point,” said Renski of refining the technical infrastructure. “But we still have some way to go to make sure that all the users have a smooth user experience.”
Additionally, Nova Labs is working with smartphone makers to design phones that are specially designed to accommodate seamless switching. Users will be able to bring their own phone, as well, but a press release suggests that the Helium-certified phones will be “more efficient” at validating network coverage and thus can earn more MOBILE token rewards.
The Helium Mobile news comes following the launch of a proposal to move the network from its own custom blockchain to Solana, a rising blockchain platform for apps, DeFi, and NFTs.
Tomi Engdahl says:
Tory Newmyer / Washington Post:
DARPA hires crypto intelligence firm Inca Digital to conduct a year-long review of cryptocurrencies, assessing threats to national security and law enforcement
Pentagon launches effort to assess crypto’s threat to national security
New project is part of the U.S. government’s wider crackdown on illicit uses of digital assets
https://www.washingtonpost.com/business/2022/09/23/darpa-crypto-national-security/
The military’s innovation office is launching a sweeping review of cryptocurrencies to assess threats to national security and law enforcement posed by the rise of digital assets.
The Defense Advanced Research Projects Agency — better known as DARPA, the office that developed the earliest technology undergirding the internet — has hired crypto intelligence firm Inca Digital to conduct the year-long project. The company will develop tools that give the Pentagon a granular view of crypto markets’ inner workings, in part to help authorities crack down on illicit uses of digital assets.
“The program underway here involves mapping out the cryptocurrency universe in some detail,” Mark Flood, a program manager with the agency, said in an interview with The Washington Post. Beyond fighting illicit finance, the office aims to use the data for insights into dynamics shaping traditional financial markets, where detailed information is harder to gather.
The deal is the latest evidence that federal agencies are ramping up efforts to thwart rogue regimes, terrorists and other criminal actors using crypto to fund their operations.
The Treasury Department last month issued its first-ever sanctions against software code to target Tornado Cash, a service that helped North Korean hackers and others launder stolen crypto. This week, the department issued a request for public input on crypto’s national security and illicit finance risks.
Tomi Engdahl says:
Jamie Crawley / CoinDesk:
Study: in January 2022, 62.4% of bitcoin mining electricity came from fossil fuels, contradicting the Bitcoin Mining Council’s estimate that ~59% is sustainable — The CCAF uses publicly available data to run a theoretical model to estimate the environmental footprint of bitcoin mining.
Bitcoin Mining’s Sustainable Electricity Mix May Be Declining, Says Cambridge University Research Organization
The CCAF uses publicly available data to run a theoretical model to estimate the environmental footprint of bitcoin mining.
https://www.coindesk.com/business/2022/09/27/bitcoin-minings-sustainable-electricity-mix-may-be-declining-says-cambridge-university-research-organization/
Cambridge University’s Centre for Alternative Finance’s (CCAF) latest research into bitcoin mining suggests the mix of sustainable electricity used is in decline.
The CCAF, which is part of the Cambridge Judge Business School, uses publicly available data to run a theoretical model to estimate the environmental footprint of bitcoin mining. It does this by breaking down its electricity mix and calculating its greenhouse gas CO2 emission intensity per kilowatt-hour (gCO2e/kWh).
It found that emissions intensity for 2021 was 506.71 gCO2e/kWh, compared to 491.24 in 2020. Data for this year is so far only available up to January, so no conclusions can yet be drawn for 2022 for the time being.
CCAF’s bitcoin mining data tools
Since 2019, the CCAF’s Bitcoin Electricity Consumption Index (CBECI) has provided a daily estimate of the amount of electricity used by bitcoin mining globally. Additionally, its Mining Map, rolled out in 2020, is used to visualize the geographical distribution of mining activities.
Now the CCAF has combined the two elements to estimate greenhouse gas emissions attributable to bitcoin more fully. While electricity consumption is an important factor, it does not take into account the differing electricity sources that power mining from one country to the next, and how these different countries’ relative shares of the global hashrate vary over time.
In 2020, the CCAF found that China accounted for 65% of the world’s total hashrate, with the majority of mining activity there powered by either hydropower (33.7%) or coal (40.4%). Hydropower’s share in 2021, however, was down to 18.5%, with coal’s reduced slightly to 38.2%.
The CCAF concludes that 37.6% of electricity used by bitcoin miners comes from sustainable sources, compared to 62.4% from fossil fuels. This figure is at odds with that provided by the Bitcoin Mining Council, which says 59% of the electricity used by the industry comes from sustainable sources.
Tomi Engdahl says:
Aoyon Ashraf / CoinDesk:
SWIFT is working with blockchain data provider Chainlink on a cross-chain interoperability protocol to let SWIFT messages instruct on-chain token transfers — Interest from institutional investors moving into crypto has been “undeniable,” according to SWIFT’s Strategy Director.
SWIFT Partners With Crypto Data Provider Chainlink on Cross-Chain Protocol in TradFi Play
https://www.coindesk.com/business/2022/09/28/swift-partners-with-crypto-data-provider-chainlink-on-cross-chain-protocol-in-tradfi-play/
Interest from institutional investors moving into crypto has been “undeniable,” according to SWIFT’s Strategy Director.
Tomi Engdahl says:
Benjamin Pimentel / Protocol:
An interview with Binance CEO Changpeng Zhao on delisting tether and USDC, stablecoin and CBDC evolution, the “Chinese company” label, the downturn, and more
Binance CEO wrestles with the ‘Chinese company’ label
https://www.protocol.com/fintech/binance-ceo-cz-interview
Changpeng “CZ” Zhao, who leads crypto’s largest marketplace, is pushing back on attempts to link Binance to Beijing.
Tomi Engdahl says:
Eli Tan / CoinDesk:
Meta opens NFT sharing to Facebook users in the US and to all Instagram users in 100 countries, including the US, where digital collectibles are available
Meta Opens NFT Sharing on Instagram and Facebook to All US Users
https://www.coindesk.com/business/2022/09/29/meta-opens-nft-sharing-on-instagram-and-facebook-to-all-users/
Users in the U.S. can now connect their crypto wallets to Instagram as part of the app’s new digital collectible feature, which the tech giant has been testing since May.
Non-fungible tokens (NFT) have finally arrived on Instagram after parent company Meta announced Thursday the long-awaited arrival of its digital collectible feature to its millions of users in the U.S.
NFT functionality on Instagram has been in testing since May, but on Thursday it became available to every user in the U.S.
Users can connect wallets from Coinbase, Dapper Labs, MetaMask, Rainbow and Trust to Instagram. Instagram users can also crosspost their NFTs to their Facebook accounts, according to a blog post.
“Today we’re announcing everyone on Facebook and Instagram in the U.S. can now connect their wallets and share their digital collectibles,” Meta said in the post. “Additionally, everyone in the 100 countries where digital collectibles are available on Instagram can now access the feature.”
Tomi Engdahl says:
Brady Dale / Axios:
A look at “Crypto Twitter”, which acts as a town hall where traders, investors, scammers, content creators, founders, and others connect, do business, and relax — Twitter is different for crypto than it is for other areas of interest. To a certain extent …
How Twitter serves as the town hall of crypto
https://www.axios.com/2022/10/03/twitter-crypto-townhall-ct
Twitter is different for crypto than it is for other areas of interest. To a certain extent, the discussion of the industry on Twitter isn’t about the industry — it is the industry.
Why it matters: Twitter is (for now) indispensable to following blockchain technology. What might look to outsiders like idle badgering and joking, is in fact the process of people forming allegiances and making deals.
Crypto Twitter is the discourse layer running on top of all the various blockchains, where people collectively decide what is and isn’t important from one moment to the next.
Zoom out: If you aren’t on Twitter, it’s a text-dominated platform that basically displays posts going from the most recent stuff back. It thrives on people liking, commenting and re-posting those text posts.
“Crypto Twitter” or “CT,” refers to all the people tweeting about various blockchain projects all day.
They don’t all necessarily follow or interact with each other, just as everyone in a town doesn’t necessarily know everyone else, but a town still has its own character and so does CT.
What they’re saying: “Crypto is 24/7/365, and it needs a medium that matches that pace,” Variant Fund’s Spencer Noon tells Axios.
Tomi Engdahl says:
Nft-huuma päättyi karuun romahdukseen: 17,2 miljardin dollarin markkinoista suli 16,7 miljardia
3.10.202213:03|päivitetty3.10.202213:03
Nft-markkinat ovat pudonneet yli 97 prosenttia vuoden alusta.
https://www.mikrobitti.fi/uutiset/nft-huuma-paattyi-karuun-romahdukseen-17-2-miljardin-dollarin-markkinoista-suli-16-7-miljardia/5eba047a-f3e7-4823-9e44-a23183687f29
Tomi Engdahl says:
Matt Robinson / Bloomberg:
Source: the US SEC is investigating whether Yuga Labs, the creator of Bored Ape Yacht Club NFTs, violated securities laws by selling its NFTs and ApeCoins — The US Securities and Exchange Commission is investigating Yuga Labs Inc., the creator of the popular Bored Ape Yacht Club collection of NFTs …
Bored-Ape Creator Yuga Labs Faces SEC Probe Over Unregistered Offerings
https://www.bloomberg.com/news/articles/2022-10-11/bored-ape-creator-yuga-labs-faces-sec-probe-over-unregistered-offerings
Wall Street regulator is examining whether NFTs are securities
Regulator’s inquiry may not lead to allegations of misconduct
The US Securities and Exchange Commission is investigating Yuga Labs Inc., the creator of the popular Bored Ape Yacht Club collection of NFTs, over whether sales of its digital assets violate federal law.
The SEC is examining whether certain nonfungible tokens from the Miami-based company are more akin to stocks and should follow the same disclosure rules, according to a person familiar with the matter, who asked not to be named because the probe is private. Wall Street’s main regulator is also examining the distribution of ApeCoin, which was given to holders of Bored Ape Yacht Club and related NFTs. The cryptocurrency was created in part for web3, a vision of a decentralized internet built around blockchains.
Yuga hasn’t been accused of wrongdoing and the opening of an SEC probe doesn’t mean the agency will sue the firm.
“It’s well-known that policymakers and regulators have sought to learn more about the novel world of web3. We hope to partner with the rest of the industry and regulators to define and shape the burgeoning ecosystem,” Yuga said in a statement to Bloomberg News. “As a leader in the space, Yuga is committed to fully cooperating with any inquiries along the way.”
The investigation is the latest attempt by SEC Chair Gary Gensler to ensure the crypto market adheres to its regulations. Gensler has repeatedly said that most crypto assets should be regulated by the agency since they have characteristics of securities as defined by a 1940s Supreme Court decision. That ruling gave the agency authority to label investments as securities when there’s an expectation of profit from management. In recent years, the regulator has brought dozens of enforcement cases against digital asset firms for failing to register their offerings, including a $50 million penalty against BlockFi Inc. in February.
Yuga Labs, which was founded in 2021, has become one of the most prominent brands in crypto. Its NFTs of cartoon primates are a sought-after status symbol
NFTs are digital assets that can be used to denote ownership of items such as paintings or sports memorabilia. The tokens can also serve as certificates of authenticity that can’t be replicated.
The SEC has been probing the NFT market broadly, including the crypto exchanges where they trade, Bloomberg News reported in March. As part of that review, the SEC is investigating so-called fractional NFTs, which involve breaking down the assets into units that can be easily bought and sold.
The key legal question is whether NFTs are securities as defined by the agency. The SEC applies the so-called Howey test, which comes from a 1946 US Supreme Court decision, to decide if something is a security. Under that framework, an asset generally falls under the agency’s remit when it involves investors kicking in money to fund a company with the intention of profiting from the efforts of the organization’s leadership.
Tomi Engdahl says:
Huw Jones / Reuters:
The Financial Stability Board publishes nine crypto regulation proposals for public consultation until December 15, planning to finalize suggestions by mid-2023 — Cryptoasset companies should set aside capital like banks when undertaking similar activities, regulators proposed on Tuesday …
Regulators propose first global rules before ‘crypto winter’ thaw
https://www.reuters.com/technology/regulators-propose-first-global-rules-before-crypto-winter-thaw-2022-10-11/
Tomi Engdahl says:
Justin Baer / Wall Street Journal:
New York grants BNY Mellon, the US’ oldest bank, permission to receive some customers’ BTC and ETH; BNY will store keys, offer bookkeeping services, and more — Founded by Alexander Hamilton, BNY Mellon is the first large U.S. bank to safeguard digital assets alongside traditional investments
America’s Oldest Bank, BNY Mellon, Will Hold That Crypto Now
https://www.wsj.com/articles/americas-oldest-bank-bny-mellon-will-hold-that-crypto-now-11665460354?mod=djemalertNEWS
Founded by Alexander Hamilton, BNY Mellon is the first large U.S. bank to safeguard digital assets alongside traditional investments
The nation’s oldest bank said it would begin receiving clients’ cryptocurrencies on Tuesday, becoming the first large U.S. bank to safeguard digital assets alongside traditional investments on the same platform.
BNY Mellon won the approval of New York’s financial regulator earlier this fall to begin receiving select customers’ bitcoin and ether starting this week. The bank will store the keys required to access and transfer those assets, and provide the same bookkeeping services on those digital currencies that it offers to fund managers for their portfolios of stocks, bonds, commodities and other assets.
The move marks an important milestone for traditional banks and their growing acceptance of digital assets as a legitimate market and a source of new business. While many Wall Street executives still question crypto’s potential and aim to tread cautiously until Washington clarifies how the market will be regulated, firms have responded to calls from a growing number of large investment-firm clients to step into their traditional role as intermediaries.
Tomi Engdahl says:
Sleuth Discovers Satoshi’s Long-Lost Bitcoin Version 0.1 Codebase, Raw Code Contains Bitcoin Inventor’s Never-Before-Seen Personal Notations
https://news.bitcoin.com/sleuth-discovers-satoshis-long-lost-bitcoin-version-0-1-codebase-raw-code-contains-bitcoin-inventors-never-before-seen-personal-notations/
On October 7, 2022, a bitcoin supporter named Jim Blasko claimed that he discovered the oldest upload of Bitcoin’s version 0.1 codebase. The original code was thought to have been lost for more than a decade and with a “little browser hacking” Blasko was able to find the lost version 0.1 raw data and files stored on sourceforge.net.
Bitcoiner Scrapes Up the ‘Cleanest Original Version of Bitcoin’ Thought to Be Lost Forever
For well over ten years, Satoshi Nakamoto’s version 0.1 codebase was thought to be lost. If one is to search, it’s extremely difficult to find and some people have discovered bits and pieces of the code. Bitcoiner Jim Blasko revealed on October 7 via a Facebook post that using a touch of browser hacking he was able to scrape up the long-lost code. After explaining a bit of history, Blasko detailed that it took Bitcoin’s creator roughly six months to mine the inventor’s stash of 1 million BTC.
“Satoshi would take at least 6 months to mine 1 million bitcoin,” Blasko’s post explains. “As block 20,000 wouldn’t come until July 22nd, 2009, and others like Hal [Finney] were mining as well, so at least this time or shortly thereafter. [The network’s difficulty] was only 1 at the time and basic [CPU] mining would continue for a couple of years.” Furthermore, the bitcoiner explained that in late August 2009, Martti Malmi uploaded the raw code of Bitcoin v0.1 to sourceforge.net.
“Since 2012 it was thought that the raw code and the files were gone as they had been scraped from the Sourceforge search engine for some reason,”
Via Blasko’s discovery, the hidden code uploaded on August 30, 2009, by Martti Malmi aka SIRIUS can be found here and here. Blasko’s discovery is unique because it is the very first version of Bitcoin presented in an untampered way and it contains all of Satoshi’s personal notations in the early codebase. Blasko said that he was aware that there are older and existing versions of Bitcoin version 0.1’s codebase on Github, however, he believes it’s “the cleanest original version of Bitcoin.”
In the codebase, Nakamoto explains things like why base-58 was chosen instead of standard base-64 encoding, and other notations like things the inventor planned “to do” later in the future. There’s also a great description of the original Bitcoin operations codes (opcodes) and what each one does. Opcodes such as OP_CHECKSIG, OP_CHECKSIGVERIFY, OP_CHECKMULTISIG, and OP_CHECKMULTISIGVERIFY.
Tomi Engdahl says:
Visa dives deeper into crypto as FTX-linked debit card expands outside US
https://techcrunch.com/2022/10/07/visa-dives-deeper-into-crypto-as-ftx-linked-debit-card-expands-outside-us/
Tomi Engdahl says:
Anonymous Declares War on Bored Ape Yacht Club Over Alleged Nazi Symbolism
They say they have evidence. Let’s see it.
https://futurism.com/anonymous-bayc-hate-group-claims
Tomi Engdahl says:
Forbes Blockchain 50 2022
https://www.forbes.com/sites/michaeldelcastillo/2022/02/08/forbes-blockchain-50-2022/?sh=43ccb1e531c6&utm_campaign=socialflowForbesMainFB&utm_source=ForbesMainFacebook&utm_medium=social
Cryptocurrencies hog the spotlight, but blockchain’s biggest innovations are below the surface, saving billions each year for the world’s largest companies.
Tomi Engdahl says:
Mat Di Salvo / Decrypt:
NEAR Protocol shuts down USN, its stablecoin launched in April 2022, “to safeguard USN holders” after USN exhibited risky characteristics like those of TerraUSD — To avoid another LUNA debacle, the undercollateralized USN will be phased out. — NEAR Protocol’s stablecoin …
NEAR Protocol to Wind Down Its Terra-Like Stablecoin
To avoid another LUNA debacle, the undercollateralized USN will be phased out.
https://decrypt.co/112771/near-protocol-to-wind-down-its-terra-like-stablecoin
NEAR Protocol’s stablecoin is being shut down after it began to exhibit risky characteristics similar to those observed with TerraUSD, a cryptocurrency that spectacularly failed this year and lost investors billions of dollars.
Ethereum competitor NEAR is a popular blockchain for building decentralized apps (dapps) and minting NFTs. Since April, it has had its own stablecoin, USN, which was issued by the DAO Decentral Bank.
But USN recently became undercollateralized, according to a Monday statement by the NEAR Foundation, a non-profit which supports the blockchain. This means that there isn’t enough collateral backing the token.
As a result, the NEAR Foundation added, the token would be shut down. Decentral Bank announced later that day that it would indeed be winding down the USN project.
But USN recently became undercollateralized, according to a Monday statement by the NEAR Foundation, a non-profit which supports the blockchain. This means that there isn’t enough collateral backing the token.
As a result, the NEAR Foundation added, the token would be shut down. Decentral Bank announced later that day that it would indeed be winding down the USN project.
“USN has faced many headwinds over the last few months with increased regulatory focus, and changes in market perception from recent high profile incidents,” Decentral Bank’s statement said.
“As a result of these issues, we have taken the difficult decision to wind down the USN project in a controlled and responsible manner in a way that ensures USN holders are protected.”
Considered to be the backbone of the crypto economy, stablecoins are digital assets typically backed by real-world goods, like the US dollar or other fiat currency reserves.
But regulators have kept a close eye on them, mainly because Terra, one of the biggest blockchains with a market cap of over $30 billion, completely collapsed in May.
Terra had its own algorithmic stablecoin, known as TerraUSD (UST), which wasn’t backed by anything but rather relied on code to maintain its value. This code ultimately failed—eventually leading the stablecoin to lose its peg and crash.
Many investors got burnt, and lawmakers have repeatedly referred to the Terra project’s collapse when talking about regulating the crypto world.
NEAR Protocol’s USN was also an algorithmic stablecoin when it first launched, but later changed to be backed by USDT tokens—the crypto market’s largest stablecoin.
Despite the update, USN became “susceptible to undercollateralization during extreme market conditions,” which could put investors at risk, the NEAR Foundation said.
The NEAR Foundation said it was using $40 million to fund a “USN Protection Programme” to protect investors as the stablecoin shuts down.
Tomi Engdahl says:
From Tokyo to San Francisco, mobile game studios have sparred for years to captivate a fickle audience, fostering an overlooked problem — the average title has become so huge that players can no longer fit more than a few on their phones.
Japanese games publisher Gree Inc. expects an impending reckoning over escalating costs and ballooning file sizes, as developers pack their games with increasingly intricate graphics, voice acting and larger storylines, all to get players spending. That’s creating a winner-takes-all situation that could winnow out smaller studios in coming years, Gree Senior Vice President Yuta Maeda said in an interview. The situation will only get
Google’s new service helps Web3 developers build for blockchain-based platforms
https://www.zdnet.com/article/googles-new-service-helps-web3-developers-build-for-blockchain-based-platforms/
Ethereum will be the first blockchain platform supported by Google Cloud’s new Blockchain Node Engine, a fully managed node-hosting service.
Tomi Engdahl says:
The war on crypto continues. “Hacker uses $2,700 to drain $15.8 million from Team Finance”
Hacker uses $2,700 to drain $15.8 million from Team Finance
https://www.theblock.co/post/180369/hacker-uses-2700-to-drain-15-8-million-from-team-finance
An attacker has exploited flaws in the Team Finance migration function for moving locked liquidity tokens.
Today’s attack only required $2,700 on their part.
Team Finance has suffered a malicious exploit with the attacker draining $15.8 million worth of tokens from the protocol.
Team Finance is a DeFi platform that helps other projects lock their liquidity. This is done to reduce the risk of what’s known as rug pulling — where a project’s liquidity is withdrawn, causing the value of the token to crash.
Today’s attacker targeted the liquidity tokens under Team Finance’s custody, according to PeckShield. The attack affected four projects, namely CAW (A Hunters Dream), Dejitaru Tsuka, Kondux, and Feg. CAW was the most impacted in the incident with the attacker removing $11.5 million worth of its liquidity tokens.
The DeFi liquidity locker confirmed the incident, stating that the attacker exploited its audited version 2 to version 3 migration function. PeckShield stated that the flaw in the migration function allowed the attacker to manipulate the price of liquidity tokens when transferring from v2 to v3. This price skewing allowed the attacker to earn a significant profit after the migration process was completed.
“We have temporarily paused all activity through team finance until we are certain this exploit has been remedied. All funds currently on Team Finance are not at further risk of this exploit,” Team Finance stated.
Tomi Engdahl says:
Stacy Elliott / Decrypt:
CoinGecko: normalized exchange volume for Crypto.com has dropped 91% over the past year, 90% for Huobi, 77% for FTX, 75% for Coinbase, and 57% for Binance — Bad ad or bad timing? Either way, trading is down big. — Whichever version of the Latin proverb you choose …
Crypto.com Trading Volume Sinks 91% One Year After ‘Brave’ Matt Damon Ad
Bad ad or bad timing? Either way, trading is down big.
https://decrypt.co/113105/crypto-com-trading-volume-down-bad-matt-damon
Whichever version of the Latin proverb you choose, Crypto.com’s exchange volume isn’t looking very brave, bold, or strong one year after unveiling its Matt Damon commercial.
In the past year, Crypto.com’s normalized exchange volume has dropped by 91%, from $4 billion to $380 million per day, using a 7-day average, according to CoinGecko. That’s not to say the ad is to blame for the drop-off, but the company’s bid at spurring growth with an A-list celebrity doesn’t seem to have helped much.
There’s also the matter of the bear market in the room, which has caused crypto markets to shed two-thirds of their market capitalization compared to a year ago. But even before markets took their big tumble, the reception for Crypto.com’s Matt Damon spot was lukewarm at best.
The advertisement compared crypto investors to astronauts, mountain climbers, and the Wright Brothers. Shortly after it came out, in November, Crypto.com spent $700 million for naming rights of the Los Angeles arena formerly known as the Staples Center.
It’s not just trading volume that’s suffered.
Over the last couple of months, Crypto.com has also been through multiple rounds of layoffs and had to cancel a $495 million sponsorship deal with the European Champions League (EUFA).
It’s only fair to say that the exchange’s peers have seen their volume plummet, too.
Huobi has lost 90% of its normalized volume. FTX is down 77%, Coinbase is down 75%, and Binance, which rolled out zero-fee trading for Bitcoin and Ethereum over the summer, now has 57% less volume compared to last year.
The zero fee bid to boost volume has been especially pronounced at Bybit, where volume has surged 757% compared to late October 2021.
As FTX CEO has routinely pointed out over the years, zero fees can dramatically and artificially inflate an exchange’s trading volume. He even called it, “one of the most consistent historical facts in crypto,” on Twitter over the summer.
Tomi Engdahl says:
CoinDesk:
Sources: Galaxy Digital, the digital assets financial services company run by Michael Novogratz, plans to cut 20%+ of its workforce; its stock is down ~80% YoY
Crypto Finance Firm Galaxy Digital to Cut One-Fifth of Workforce: Sources
CoinDesk estimates that around 11,700 crypto jobs had been lost as of mid-October as a result of the crypto winter.
https://www.coindesk.com/business/2022/11/01/crypto-finance-firm-galaxy-digital-to-cut-one-fifth-of-workforce-sources/
Galaxy Digital (GLXY), the crypto-focused financial services firm run by Michael Novogratz, plans to cut at least 20% of its global workforce, according to four people familiar with the matter.
“While our industry continues to face macroeconomic headwinds, Galaxy remains focused on building for the future state of institutional adoption, and on enhancing long-term shareholder value. We are always considering optimal team structure and strategy and will share future plans when finalized,” a Galaxy spokesman told CoinDesk via email.
The crypto winter has cast a shadow over the industry, forcing some of the biggest actors in the digital assets sector to curb their growth ambitions. CoinDesk estimates that around 11,700 crypto jobs had been lost as of Oct. 14, 2022, based on media reports and press releases. Firms that have made significant job cuts include Coinbase (COIN), Gemini, NYDIG and Crypto.com.
Tomi Engdahl says:
A textless meme of a dog in a T-shirt tweeted by the world’s wealthiest man Elon Musk sent one of the world’s largest cryptocurrencies up 12% Tuesday.
https://www.forbes.com/sites/dereksaul/2022/11/01/musk-meme-fuels-2-billion-gain-for-dogecoin/?utm_source=ForbesMainFacebook&utm_medium=social&utm_campaign=socialflowForbesMainFB
Tomi Engdahl says:
NFT = BBC
Blockchain Based Collectible
How Reddit defied Crypto Winter and created a $10 million market for customizable avatars—just don’t call them NFTs
https://fortune.com/crypto/2022/11/03/how-reddit-defied-crypto-winter-and-created-a-10-million-market-for-customizable-avatars-just-dont-call-them-nfts/
Tomi Engdahl says:
Andrew Hayward / Decrypt:
Some NFT marketplaces stop honoring NFT royalties, usually a 5%-10% fee set by the creator and paid by sellers on secondary market sales, rocking the community — Creators sound the alarm after the marketplace reveals its plans, which include blacklisting rivals and potentially optional royalties.
OpenSea Breaks Silence on NFT Royalties, But Creators Don’t Like What They Hear
https://decrypt.co/113698/opensea-breaks-silence-on-nft-royalties-but-creators-dont-like-what-they-hear
Creators sound the alarm after the marketplace reveals its plans, which include blacklisting rivals and potentially optional royalties.
In brief
OpenSea shared its plans regarding NFT creator royalties, amid a growing trend of rival marketplaces not honoring them.
Notable creators suggest that OpenSea’s messaging is unclear and potentially misleading, and that part of its plan is anti-competitive.
As many NFT platforms shifted away from honoring creator-set royalties in recent weeks, top marketplace OpenSea had remained silent on the subject, apparently weighing its options. On Saturday night, the $13.3 billion startup finally showed its hand—but OpenSea’s newly expressed strategy isn’t sitting well with many prominent Web3 creators.
In a Twitter thread, OpenSea shared what it called a “thoughtful, principled approach” to NFT royalties, including the rollout of a system that would let creators of new projects blacklist certain marketplaces that do not require traders to pay royalties. That system takes effect on November 8.
OpenSea said that it is still considering what to do about existing NFT projects, and that it will garner additional community feedback ahead of a self-imposed December 8 deadline. After that date, the marketplace will make a decision—which could ultimately include making royalty fee payments optional for traders, as some other marketplaces have done.
In an accompanying blog post, OpenSea co-founder and CEO Devin Finzer detailed the firm’s history of honoring NFT royalties—typically a 5% to 10% fee set by the creator, which is paid by the seller on any secondary market sale. These royalty expectations are not fully enforceable on-chain, however the largest marketplaces (including OpenSea) have typically honored them.
On Creator Fees
https://opensea.io/blog/announcements/on-creator-fees/
Update as of November 7, 2022: OpenSea will continue enforcing creator fees for collections created using OpenSea’s shared storefront smart contract (i.e. created via the “Create” button on OpenSea) until at least December 8, 2022.
When the NFT standard was created in 2018, creator fees (sometimes referred to as ‘royalties’) did not exist. OpenSea supported them early to invite more creators into the space, and we hoped at the time that they would be durable. But the last few months have proven that off-chain enforcement is too brittle. Notably, on marketplaces where these fees are optional, we’ve watched the voluntary creator fee payment rate dwindle to less than 20%. And on other marketplaces, creator fees are simply not paid at all.
An unfortunate consequence of this ecosystem shift is that the business model used by the vast majority of creators in this industry is now subject to enforcement discretion of marketplaces rather than code. And for new creators entering the space, it can come as a surprise that the fees they set aren’t always enforceable. With many marketplaces choosing to stop enforcing creator fees, to put it bluntly, the last few months haven’t felt WAGMI.
Tomi Engdahl says:
Shaurya Malwa / CoinDesk:
In the wake of FTX’s dramatic fall, Binance, Gate.io, KuCoin, Poloniex, Bitget, Huobi, and OKX pledge to release their Merkle tree reserve certificates — Over seven crypto exchanges will publish proof of their reserve holdings in the next month. — Crypto exchanges are now scrambling
Crypto Exchanges Scramble to Compile ‘Proof-of-Reserves’ as FTX Contagion Grips Markets
Over seven crypto exchanges will publish proof of their reserve holdings in the next month.
https://www.coindesk.com/business/2022/11/09/crypto-exchanges-scramble-to-compile-proof-of-reserves-as-ftx-contagion-grips-markets/
Crypto exchanges are now scrambling to publicly publish their fund reserves as insolvency fears grapple crypto investors following contagion risks from liquidity issues at FTX.
In the past 24 hours, seven exchanges – Binance, Gate.io, KuCoin, Poloniex, Bitget, Huobi and OKX – have separately issued statements that they would publish their Merkle tree reserve certificates to increase transparency.
A Merkle tree is a data structure that is used in computer science applications. In bitcoin (BTC) and other cryptocurrencies, Merkle trees serve to encode blockchain data more efficiently and securely. They are also referred to as “binary hash trees.”
In a centralized crypto exchange, every user’s assets are recorded by the ledger of a centralized database. The recorded assets in the database are the total amount of the user’s assets.
Using Merkle trees allows exchanges to store each user account’s hash value of assets in the “leaf nodes” of the Merkle tree. The second step is to audit those assets in the leaf node of the Merkle tree and verify all the users’ holdings by a third party.
FTX came under scrutiny following a CoinDesk report last week that found the balance sheet of Alameda Research, a crypto trading unit owned by Sam Bankman-Fried, who also owns FTX, was full of FTX’s native FTT tokens. This meant that Alameda rested on a foundation largely made up of a coin that a sister company invented, not an independent asset like a fiat currency or another crypto.
The report sparked rumors of FTX becoming possibly insolvent, which in turn led to industry players selling FTX-linked coins to protect their own downside.
Changpeng Zhao / @cz_binance:
Binance CEO Changpeng Zhao says the company signed a non-binding letter of intent to acquire FTX.com and help cover its liquidity crunch, pending due diligence — This afternoon, FTX asked for our help. There is a significant liquidity crunch. To protect users, we signed a non-binding LOI, intending to fully acquire FTX.com and help cover the liquidity crunch. We will be conducting a full DD in the coming days.
https://twitter.com/cz_binance/status/1590013613586411520
Tomi Engdahl says:
Tanaya Macheel / CNBC:
Solana crashes 30%+ to ~$18; bitcoin falls 10%+ to <$18,000 and briefly hit $17,300 on November 8, its lowest since November 2020; ether drops 15% to ~$1,250 — FTX token plunges as Binance steps in to buy the crypto exchange's non-U.S. unit: CNBC Crypto World
Bitcoin briefly touches a new low for the year, FTX token plunges more than 75% in broad crypto sell-off
https://www.cnbc.com/2022/11/08/cryptocurrencies-slide-as-worries-about-ftx-fester-in-latest-crypto-liquidity-scare.html
The cryptocurrency market tumbled Tuesday after Binance and FTX, the world’s two biggest crypto exchanges, agreed to merge to address what Binance called a “liquidity crunch.”
Bitcoin
tumbled 12.6% to $18,203, according to Coin Metrics. Earlier in the day, it fell to $17,300.80, its lowest level since November 2020. Ether dived 18.2% to $1,311.50, after falling as low as $1,228.89.
Those declines spread throughout the rest of the market, at one point even stealing steam from the stock market rally.
In crypto equities, Coinbase slid 10.8%, and Robinhood, which also has a crypto trading business and in which Bankman-Fried has a 7.6% stake, lost 19%. Other crypto-related stocks, including crypto banks Silvergate and Signature and bitcoin miners Hut 8 and Riot Blockchain, also lost ground.
Tomi Engdahl says:
Jennifer Conrad / Wired:
As China encourages digital yuan adoption among its citizens, experts say the digital currency opens up new forms of government surveillance and social control — Government officials are urging citizens to adopt the official digital currency in a bid to gain more control over the economy.
China’s Digital Yuan Works Just Like Cash—With Added Surveillance
https://www.wired.com/story/chinas-digital-yuan-ecny-works-just-like-cash-surveillance/
Government officials are urging citizens to adopt the official digital currency in a bid to gain more control over the economy.
Visa has long paid to be the sole payments processor at the Olympic Games. But at the Winter Olympics in Beijing earlier this year it had competition—from the Chinese government. Visitors could, after scanning their passports, exchange foreign bills for eCNY, a new digital currency being rolled out by the country’s central bank, the People’s Bank of China. Visitors could splash their digital cash by using a card or mobile app to pay for things around the Olympic Village.
China launched its first pilots of digital cash in 2019, but the eCNY’s appearance at the Olympics was part of a project with global ambitions. As the first major country to roll out an official digital currency at scale, China is far ahead of the US and other countries, where the concept of an official form of digital cash is only at the discussion phase.
The hope for government-sanctioned digital currencies is that they will improve efficiency and spur innovation in financial services. But tech and China experts watching the country’s project say that eCNY, also known as the electronic Chinese yuan or digital yuan, also opens up new forms of government surveillance and social control. The head of UK intelligence agency GCHQ, Jeremy Fleming, warned in a speech last month that Beijing could use its digital currency to monitor its citizens and eventually evade international sanctions.
At the same time, China’s world-beating digital yuan has got off to a slow start. The People’s Bank of China reported that its official eCNY app had 261 million users at the end of 2021, and that by August 31 more than 100 billion yuan (about $14 billion) had changed hands across 360 million transactions. Those numbers are modest compared to the size of China’s population and economy, but they are expected to grow after a recent expansion of digital yuan trials in China from about two dozen cities to four entire provinces.
Unlike a cryptocurrency like Bitcoin, the digital yuan is issued directly by China’s central bank and does not depend on a blockchain. The currency has the same value as its analog equivalent, the yuan or RMB, and for consumers the experience of using the digital yuan is not that different from any other mobile payment system or credit card. But on the back end, payments are not routed through a bank and can sometimes move without transaction fees, jumping from one e-wallet to another as easily as cash changes hands.
Chinese citizens are being encouraged to adopt the digital yuan by both China’s central government and local authorities.
Yet many locals didn’t see the need for a new form of digital payment, because they could already use mobile payment services offered by Alipay, from an affiliate of online retailer Alibaba called Ant Financial, and WeChat Pay, from gaming and social giant Tencent.
Tomi Engdahl says:
SBF-Linked Tokens Lead Crypto Markets Downward 24 Hours After Shocking Merger Announcement
https://www.forbes.com/sites/stevenehrlich/2022/11/09/sbf-linked-tokens-lead-crypto-markets-downward-24-hours-after-shocking–merger-announcement/?utm_medium=social&utm_source=ForbesMainFacebook&utm_campaign=socialflowForbesMainFB&sh=1ba1f7841956
The crypto market continues to reel 24 hours after the sudden and surprising collapse of FTX.com, the offshore crypto exchange led by Sam Bankman-Fried.
Bitcoin, currently priced at $17,245, is trading at its lowest point since November 2020. Back then the asset was beginning a steep ascent upwards towards $70,000 from the economic collapse brought on by the onset of the global pandemic.
But the damage is far more widespread, and there could be more to come. After briefly holding the line around $18,400 in the immediate hours following the shocking announcement that FTX was going to be acquired by Binance, the bottom fell out of the market overnight. Bitcoin is now down 6.5% over the past 24 hours and ether has fallen 10.66%.
FTT, a crypto-exchange token unique to FTX that offers incentives such as reduced trading fees, has lost 84.98% of its value over the past five days. Trouble for the asset began over the weekend when it lost close to 20% of its value. But the asset entered a death spiral yesterday morning after the deal with Binance was announced with many FTT holders wondering if the value would ultimately go to zero.
BNB, the native token of Binance Smart Chain that also offers similar services to FTT on Binance initially jumped almost 20% when the acquisition was announced, but it is now down 27% from that point to now trade at $289.70.
Tomi Engdahl says:
Not.a.ponzi.scheme.