[Stay updated on the latest developments in Crypto , follow me on Yakihonne.com.
](https://yakihonne.com/users/nprofile1qqsdyek62drrrwaqmphkcp0yls2ehpqwf6cjzag9kcrmjnc9wgjdsdqpr3mhxue69uhkummnw3ez6vp39eukz6mfdphkumn99e3k7mgpremhxue69uhkummnw3ez6vpj9ejx7unpveskxar0wfujummjvuq3gamnwvaz7tmjv4kxz7fwv3sk6atn9e5k7vg76ry)

Earlier this week, I sat down with Matthew Black, the Chief Technology Officer of Atomic.Finance, to discuss Discreet Log Contracts (DLCs), a cutting-edge development in Bitcoin's often misunderstood smart contract ecosystem. Black unveils how DLCs are structured and set to revolutionize the world of financial agreements and transactions using the Bitcoin blockchain.

The discussion spotlights the specific infrastructure of Atomic.Finance, a pioneering platform specializing in Bitcoin-native financial services, and its overarching mission to redefine traditional finance within the Bitcoin ecosystem. Through a thorough examination of the underlying technology and the wider implications of Bitcoin-native financial services, Black explains how this paradigm shift may influence Bitcoin adoption, regulatory concerns, and the decentralization of financial services within the broader financial market.

*A transcript of our conversation, lightly edited for length and clarity, follows below.*

Mark Goodwin: Matthew, thank you so much for joining me. How many users roughly does Atomic.Finance currently have? And do you have an estimation on the number of bitcoin that's currently utilized in the system?

Matthew Black: It is still early days. We have 230 users, I believe. And just under 70 bitcoin locked at the moment. So we are still growing.

Goodwin: Have you guys encountered any regulatory issues while building these services? And is there a reason why you are based out of Toronto, in this current jurisdiction, versus being somewhere else?

Black: To be honest, we're in Canada because that’s where we're from. In general, there's certain laws and regulations that need to be followed around certain financial products, especially in certain jurisdictions. In our case, we take advantage of certain advantages that you get for building peer-to-peer applications in the current regulatory framework, especially, say, in the United States. And also, because of the jurisdiction that we're in, we're obviously not able to serve certain areas of the world, say sanctioned countries like Russia or Iran. We're not able to serve those countries, and that's unfortunate.

Obviously, I think the goal of anyone building sound finance for sound money is that you're able to serve the world. Bitcoin is money for the world. So you're able to serve the world but then we have to run into these very annoying jurisdictional problems. But the hope is one day we won't run into that. And other than that, we always just have to keep on top of the latest laws and regulations for these things. And it's always just a game; they create new laws, we have to keep up to date with them.

Goodwin: There's a cat and mouse game always with the regulatory regime. To be honest, I don't think it's going to slow down anytime soon. I think it's going to get more intense.

Let's get a little bit more into the tech here. I was reading your blog and there was an interesting comment made when describing previous iterations of smart contract based financial services. You guys made a comment that in other models, the entire contract appears on the blockchain for all the world to see, and that this information dense contract more quickly clogs the blockchain, leads to higher transaction fees, less privacy, and even enables Miner Extractable Value. Talk to me about how you address these risks within your current design.

Black: I think the biggest thing there is just the architecture design of DLCs versus Ethereum smart contracts. First of all, Ethereum smart contracts can be created by really any JavaScript developer and oftentimes there's this idea of creating a contract that can do anything that you possibly want to do and more. That results in you creating many different functions for all the possible things, whether it has to do with lending, whether it has to do with borrowing, whether it has to do with this or that. And all of that has to be spelled out and put transparently on the blockchain.

Ethereum is an account based blockchain. When you're using that published address, you must reuse that address every single time, right? And so the loss of privacy is enormous, versus looking at the architecture of something like DLCs. DLCs on-chain look very similar to a Lightning channel, actually. The funding transaction for a DLC looks identical to a dual-funded Lightning channel. And so what that results in is, first of all, that you can't tell if you are doing a Lightning channel or a DLC. And second of all, it's a 2-of-2 on-chain, and so the on-chain footprint is tiny, right? You're not really worried, to a certain extent, about fees, because the on-chain footprint is no different than opening a 2-of-2 and closing a multisig, which is really phenomenal. And the other thing too is no privacy is leaked about the actual contract itself.

Typically in Ethereum, you have these large kinds of honeypot contracts. And so say someone is using an AMM like Uniswap, someone can run a flash bot and come in and front run that transaction. That cannot occur in these types of contracts, right? Because it is that 2-of-2 multisig; it's the user and the market maker. And so those are the only two participants that were able to do anything related to that contract. So you don't run into this concern of MEV via a flash bot coming in and front running a particular transaction. And that's one of the things that DLCs really enable, I think the other thing with the current DLC paradigm is that you still have to go on-chain for every single position. There's also work being done on bringing this to Lightning as well, which I think is going to be the next iteration of the technology. You can open a channel with a market maker and do a bunch of trade and then go and close that channel, which makes this even more scalable for the long term.

Goodwin: Very interesting. You're basically incorporating an oracle of sorts in your HTLC state update, but otherwise it's structured exactly like a Lightning Channel. Is that the mechanism for how value goes back and forth in the channel, based on a price feed?

Black: Not quite. HTLCs themselves do not have these more advanced capabilities of DLCs, like being able to do bets, futures, and options contracts. However, the new upgrade, which I believe LND just pushed the other day, PTLCs, or point time locked contracts, do allow for these more advanced financial contracts to be created. In fact, you can do a DLC using a PTLC. Now the consideration for Lightning though, however, is that it doesn't really make sense to use routed lightning channels for these types of contracts.

So if you think of you and me, if we're going to enter into a bet, say like within a Lightning channel and say we have a bunch of peers between us — we've got you, Mark, we've got myself, and in-between us, we've got Bob and Alice. If we wanted to enter into that bet and say it's on the presidential election, in two years, if I wrote that DLC to you then Alex and Bob need to have their capital locked up for the next two years, right? Which is just insanity. That's never going to happen. So I think the way that this actually evolves is that you simply open up a channel to a market maker and then you go and do any trades that you want to them using DLCs and then you go and close it, maybe with one additional hop. But I think it's very unlikely that people are going to be willing to lock up capital all along these hops in a Lightning channel just to allow for people to do DLCs. And that's one of the drawbacks, obviously, of this system.

Goodwin: Interesting. In DLCs you utilize something called CETs, or Contract Execution Transactions. Can you explain how those work and what they are?

Black: I'll make a comparison to Lightning Network. So when you enter into a Lightning channel, typically what you do is you do state updates using HTLCs, right? If someone sends me a payment, then, I update my state in the background. That's really all a CET is, right? It just represents all the possible states of this DLC, of this 2-of-2 multisig. What you do when you first enter into a DLC is define what are all the possible outcomes that could be created. So the simple example: You're betting on the presidential election, Trump versus Biden. You have two CETs, right? Trump or Biden. Maybe you have a third one that's contested, right? These outcomes are all that a CET is. So there's two types of transactions that are created typically with a DLC. You have your CETs and you have your refund transaction. So the CETs represent all the possible outcomes, and the refund transaction is in the case that the oracle disappears, you still have a way to get your funds back. Even if that oracle disappears off the face of the earth.

So the simple example I gave was those CETs in which you have Trump, Biden, or contested, right? There's only three possible outcomes. But you can also do numerical-style DLCs, where say if you want to represent a curve, for example, a linear curve, or any type of financial contract that you can imagine. If you want to do a futures contract, you have a curve that's paid out based on the price, depending on what the price is. Maybe you're going long bitcoin, and the other party's going short. And then based on the outcome of what the price is of bitcoin, you have a payout. In our case, we're doing options. So say you have a long call contract, someone might come in and specify the payout, right? So this is the premium inside of the DLC. This is the possible payout, and then you have CETs that just represent every possible payout that can occur. So that's really all CET is; it's just what are the possible payouts.

Goodwin: Interesting. How are they actually constructed? It's not pre-signed, it's just pre-designated, correct? It's a spending condition, basically?

Black: It is actually pre-signed. You create signatures ahead of time. And what you do with these signatures, what's cool about them, is that it uses adapter signatures. The basic flow looks like this: In the process of the oracle creating their signature of a particular outcome, it basically decrypts and unlocks the signature of your counterparty, which then allows for you to sign the other side and then validate one of the CETs. So in the process of the oracle creating that signature, they validate one of the CETs, which then allows for you to go and take that transaction and broadcast that on-chain. This, of course, closes the DLC in the process.

Goodwin: That makes a lot of sense. You guys wrote on your blog that as long as the oracle correctly reports a result, the lone CET for that result is rendered valid. Talk to me about your confidence in the oracle systems present in your current design. How are they decided? Is it just a template that can input any Oracle system into it? Talk to me a little bit about that.

Black: That's a great question. So currently in our current system, we run the oracle. So there's us who run the oracle, and we've got a separate market maker that is the counterparty. Obviously there's opportunities here to distribute the risk even further. In terms of having a multi-oracle system. In the current system, obviously, there's a required trust in us, Atomic.Finance, to attest to the correct price. We actually run two types of oracles, to be fair. We run a price oracle, and that's for manual options contracts. And then we also run our strategies oracle, essentially. We have our covered call strategy, which is just an options trading strategy that's automated. They go and lock their funds into a DLC for a month at a time, and the oracle goes and attests to the P&L. These can be expanded to a multi-oracle setup in the future. You could have a two-of-three oracles, or a three-of-five.

One of the big considerations is the UI. As you add additional oracles into the system, in the current setup, it increases the amount of time that it actually takes to enter a DLC. Currently it takes around anywhere from 45 seconds to 2 minutes to enter a DLC on the Atomic Finance app. And the reason for that is because you have to create all of those off chain signatures, which obviously takes time. It doesn't actually take that much time to create the signatures, but it does when you consider that there's bandwidth considerations, right? If someone has a bad internet connection, they need to send that over to the market maker. The market maker needs to send those back. And then they need to back it up. We have a watchtower that backs it up just in case anything goes wrong. And so that's a really big consideration. And then if we're adding additional oracles on top of that it increases the amount of time it takes to sign even more.

Now, there's a couple of things that can solve this dramatically; number one is obviously CTV. We don't need to do any of this signature computation, in fact, all you need to calculate ahead of time, instead of the adapter signature, is the adapter point. This means about a 30 times improvement on the actual computation time related to DLCs. The other potential thing that could work is instead of adapter signatures, using BLS signatures. And Lloyd Furnier, he's a Bitcoin researcher. He's been doing a lot of work on this. With using BLS signatures instead, you could have the same setup that you have now, but have no slowdown in the amount of time that it takes to add multiple oracles.That might be really interesting, something that we look into down the line.

Goodwin: I definitely understand how the template aspect of CTV would help mitigate the need for constant party communications leading to a latency issue, but I'm not really familiar with BLS. Can you explain that to me?

Black: To be honest, I'm not an expert either. He was one that explained this to me, but I'll try to break it down. So basically with BLSs, the way that it improves this dramatically is that with these type of signatures, as long as there's a setup with the oracles ahead of time, say you had three large exchanges that were running oracles, as long as they compute a point together that they're going to attest to, it's like a Schnorr signature. You can aggregate signatures together, right? So with this you would aggregate the data points of the different exchanges together and, because you have that one point now, when you receive the signatures from those oracles, all you need to do is aggregate the signatures of those oracles together. At the end of it, you just have one signature that you utilize from the oracle rather than the alternative in the current adapter signature scheme where you would have three signatures that you then need to utilize and create different potential CETs. I think that the main advantage that you get is just that you're able to combine those signatures together.

Goodwin: Very interesting. You mentioned you guys have your own oracle, and you also mentioned the possibility of advancing distributed oracles, or weighted oracles, which I think is a good idea. Based on the current situation right now, or even going into this multi-oracle, multi-price feed scenario, are you concerned at all about any ability for market makers or people to manipulate these price feeds? I know there's a lot of issues with the more common smart contracts on Ethereum where a funky number from a funky feed can blow everything up. How do we mitigate that? Can these price metrics be manipulated by weighted users in the system?

Black: I think there's a really strange notion that exists within Ethereum that if we build decentralized oracles that will somehow solve the issue. And that just really looks like a bunch of anonymous oracles in which you don't know who's who. How do you know they're not all the same person? And so I'm actually of the opinion that it's not a decentralization metric. That's not what we're trying to run here. It's better to have a couple, like Liquid, right? You have a couple reputable functionaries that do a specific job and then they go and do that properly. In this case, I think it's a similar thing. If you have a couple of reputable folks that are running these price feeds that are all known, then it creates the right reputational environment for these price feeds to be correct.

So obviously, for our case, there's incentive for us to provide the right price feed to our users, because as soon as we provide an incorrect price feed, our users leave. And I think this is also a very important part of DLCs as well. When you think of a DLC people ask us, why don't you just use a multisig instead of a DLC? Why is it so much better? Imagine you enter into a multisig: You could have collusion between an arbiter, Alice or Bob. And it just affects that one contract. So you can steal from one user at a time. In this type of system, when you create that attestation, it's obvious to everyone and then as soon as that an oracle has been incorrect, you can stop using that oracle. I think the process of getting a proper price feed or proper oracle attestations is really just setting up either two-of-three or three-of-five oracles that are reputable and setting up the right incentives for them to continue providing these price feeds.

I think the other thing that's a bit wonky as well in Ethereum is that the oracles actually have to create a transaction in order to get that data on-chain to be utilized by the smart contracts. Whereas in Bitcoin DLCs, the oracle creates a signature completely off chain. And then the contract participants utilize that signature in order to close the contract. And so you never run into a situation like in Ethereum where gas fees were so high that the oracle price didn't update properly. You're never gonna run into that situation. It doesn't matter if you have Ordinals galore next week, you're still gonna be able to create that signature .

Goodwin: On your blog, you guys talk about covered calls, saying, “users always either end up with more Bitcoin or a Bitcoin stack that is worth more in U.S. dollars. There's never a risk of liquidation or total loss.” Explain to me how that's possible.

Black: An option is essentially like a coupon to be able to either buy bitcoin at a certain price or to be able to sell bitcoin at a certain price. What's the current price today, $27,000? So imagine I think that next week, bitcoin is going to be $35,000. And what I'll do is I'll tell my friend, “Hey, you know what? I'll pay you this coupon or this premium to be able to buy bitcoin at 30,000.” And he says, “Oh, you're crazy. bitcoin's going down next week. I'll take that bet. I'll take that premium. I'll receive income essentially from that premium because I think bitcoin is going to go down next week or even stay the same.” And that's the basics of a cover call: The person who's selling that call is the one that's earning that premium.

Now imagine in this scenario that bitcoin stays below the price, what happens? If I sold that call, I just earned that premium, right? And so I got more bitcoin. In the case that bitcoin goes up, and maybe it even goes all the way to $35,000, I still got that price appreciation from $27,000 to $30,000, plus I got the premium. Now I do end up with less Bitcoin at the end, but I end up with more in U.S. dollar terms. So that's the paradigm of cover calls and that's why it's just selling calls in general. It's a really interesting instrument because regardless of if bitcoin goes up or bitcoin goes down, you always end up with more bitcoin or more bitcoin in U.S. dollar terms. Now within our particular strategy, obviously lots of people don't want to end up with less bitcoin, right? And so we've built this particular strategy to be very conservative.

Goodwin: In Section 9 of your terms and services you mention that at your sole discretion, you may need to modify, suspend, disable temporarily or disable permanently some services, including possibly closing an open DLC. How is this possible within the system? And why is this feature important for you as a company?

Black: That's a good question. Actually in the current system, it's not possible for us to close any DLC of any user. They would have to do a mutual close with the market maker. It would only be possible to close it if we as the oracle provided an early attestation, right? So obviously that's always possible within the DLC, but I think it was basically just a legal clause to cover any potential eventuality. But the only ways that a DLC can be closed right now is either the user does a mutual close with the market maker, or we just don't create an attestation. In which case a refund occurs. And so I think the case for making an attestation early would be in the case that say our market maker isn't, for some reason, able to continue operating, and so we might just close it early to give people their funds back. And then, in the meantime, look for another market maker. I think that's the only possible case where that would ever occur.

Goodwin: And even in that setup, the user would still have to take the signature from your oracle to actually sign and close the transaction out themselves. So it's not like you guys could even force close a DLC at all. You can just provide the means to do it early, right?

Black: Exactly. Either the user can close it or the market maker can close it. And obviously I would assume that if the market maker is unable to continue, they would want to get their capital back. And so they might close it. But even if the market maker completely disappears, the user can always use the refund transaction. In the case that the market maker disappears, the user can still use our signature from the oracle to go close the DLC.

Goodwin: Makes sense. Do you even want to be the business running the oracle? Are you looking to get rid of that responsibility? Is that something you are aiming for, or is that considered mission critical to a solid infrastructure?

Black: I think we definitely, long term, want to move to a multi-oracle system where it's us plus some other parties, so it's not just on us. And we've even talked about the potential of working with some of the different DLC companies and actually creating a multi oracle system. Maybe we team up with 10101 or Lava, to all together create a multi-oracle system. Either that or just have exchanges that are actually running some type of oracle system. To be honest, I don't think we're tied to the idea of us just being the only oracle. In fact, I would rather that not be the case because then it's solely on us.

But at the same time, it's a business process of convincing other folks to go run that oracle and then the business considerations around the infrastructure costs of running an oracle. I think that's really the only thing, outside of the technical considerations, holding us back. Plus the discovery of who exactly can we get to run this right now? And can we trust them to run it effectively? Obviously our customers are on the line, and we want the best for our customers. I think it's best that we run the oracle right now, and then eventually it's a multi-oracle system in which we are one of the parties. Then eventually, we're just not running the oracles at all. That would be the perfect vision, I think.

Goodwin: Have you heard of UTXOracle? It's basically a UTXO set derived price feed or oracle. Do you see any merit to this idea? Do you see something like this maybe included in the future weighted oracle system? Or do you think it's just a cool idea that really has no economic utility?

Black: I think unfortunately it's the second, and I'll explain why. First of all, it is a really cool thing. And I love what they're doing. But at the same time, there's a couple considerations, especially for financial products. Options are very, very volatile in terms of their premiums and also very volatile in terms of volatility; that is what they thrive on. And so a ~10% range of accuracy is a really big consideration for us if we're utilizing that for an attestation. And then you have to consider that UTXOracle is software that's running alongside Bitcoin Core. It's not like there's some type of op code inside of Bitcoin Core that can go and utilize that price data. And even if there were, obviously this is very prone to manipulation, right? Because I think it was based on $50 or $100 increments, and they just looked at certain UTXOs.

So imagine someone starts putting in a bunch of UTXOs that are $53 or that are $47 or $45, right? And then that slowly modifies the price. So it's very manipulable. There's no obvious incentive to manipulate it, and I think it's a really cool tool, but maybe only useful as a validation check for an oracle. I'm making this attestation: Let me do a price check and validate against UTXOracle. And as long as it's in a certain range, then it makes sense. But in practical matters, I don't think it's too useful for DLC financial applications right now.

Goodwin: That's a good point. Perhaps you could use it as basically a sanity check within a double digit range. But a double digit range is very impractical for, 1%, 2%, 3% option. Acknowledging the difficulty of decentralizing price feeds, do you think it is even possible for a truly decentralized dollar instrument to exist?

Black:  A purely decentralized dollar instrument? So I know 10101 Finance right now is building a StableSats dollar that uses DLCs and all they're doing is a 1x short on Lightning that allows for folks to get access to, essentially, StableSats using DLCs. But I wouldn't call that decentralized because obviously there's an oracle at the end of the day, right? There's an oracle that's providing some type of price feed for this to occur. A purely decentralized version would involve a type of price feed that wasn't easily manipulatable and that would actually be able to be utilized.

Say in an alternate universe, we had UTXOracle and somehow it was designed in a way where it wasn't easily manipulable. I don't know how you would do that. And maybe you had op codes that were based on it and then you could just grab the bitcoin price directly from the Bitcoin blockchain. Maybe you could have some type of dollar in that manner that would be decentralized. But I think the reality is that it's manipulable. And I think that we'll never get that opcode, ever. That doesn't make sense in Bitcoin land.

I think we can get close. I think we can get a distributed risk dollar, but I don't think we ever get a purely decentralized dollar because I think it's too easy for price to be manipulated. And I think that's the attack factor. There's another potential solution, too, for distributing oracle risk. I think the team at DLC Link is working on a FROST implementation for basically being able to aggregate Schnorr signatures together into one oracle. So you'd have 15 oracles and they all attest on the price and then that gets aggregated into one point. I haven't looked into the details of it. I don't know if that answers your philosophical question.

Goodwin: I think it answers it perfectly. Yeah, we'll see. It's going to get fun, and it's gonna get weird. Matthew, thank you so much. I learned a ton.

By：MARK GOODWIN
Link：https://bitcoinmagazine.com/technical/dlcs-atomic-finance-and-bitcoin-financial-services

WHERE ETHEREUM FAILS: DLCS, ATOMIC.FINANCE, AND BITCOIN-NATIVE FINANCIAL SERVICES

Bitcoin Magazine sits down with Atomic.Finance's CTO Matthew Black, exploring DLCs, Atomic.Finance's infrastructure, the downsides of Ethereum smart contracts and the far-reaching implications of Bitcoin-native financial services.


[Stay updated on the latest developments in Crypto , follow me on Yakihonne.com.
](https://yakihonne.com/users/nprofile1qqsdyek62drrrwaqmphkcp0yls2ehpqwf6cjzag9kcrmjnc9wgjdsdqpr3mhxue69uhkummnw3ez6vp39eukz6mfdphkumn99e3k7mgpremhxue69uhkummnw3ez6vpj9ejx7unpveskxar0wfujummjvuq3gamnwvaz7tmjv4kxz7fwv3sk6atn9e5k7vg76ry)

![image](https://www.pnglog.com/qdd9ld.png)

The blockchain firm behind On-Demand Liquidity (ODL), a solution using XRP, decided not to proceed with the acquisition following a hack that saw Fortress Trust lose between $12 to $15 million in Bitcoin (BTC), USDT, and USDC, on Sep. 12.

![image](https://www.pnglog.com/4dNwja.png)
Ripple initially guaranteed to compensate Fortress Trust clients for their losses as part of the acquisition deal.

Despite this setback, Garlinghouse praised the skilled team at Fortress and expressed interest in collaborating with them in the future.

![image](https://i.ytimg.com/vi/s_Y2c7wbAEI/hqdefault.jpg)
Ripple will continue to invest in the company, including Fortress and its FortressPay services, as long as their original intentions remain intact.

By：Sarah Jansen
Link：https://crypto.news/ripple-backs-out-wont-acquire-fortress-trust/

Ripple backs out, won’t acquire Fortress Trust

On Sep. 28, in a post on X, Brad Garlinghouse, the CEO, revealed that Ripple has chosen not to acquire Fortress Trust. Instead, they will continue to be an investor in the blockchain-based payment network.


[Stay updated on the latest developments in Crypto , follow me on Yakihonne.com.
](https://yakihonne.com/users/nprofile1qqsdyek62drrrwaqmphkcp0yls2ehpqwf6cjzag9kcrmjnc9wgjdsdqpr3mhxue69uhkummnw3ez6vp39eukz6mfdphkumn99e3k7mgpremhxue69uhkummnw3ez6vpj9ejx7unpveskxar0wfujummjvuq3gamnwvaz7tmjv4kxz7fwv3sk6atn9e5k7vg76ry)

Court documents, submitted on Sep. 27, highlight that it is logistically unfeasible for Kwon to comply with the SEC’s timetable for a U.S.-based deposition before Oct. 13, as he is currently detained in Montenegro with no definite release or extradition schedule.

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

> That request violates the Court’s Individual Rules of Practice because the SEC did not obtain the Court’s permission to seek a preclusion order in the parties’ pre-motion call to Chambers”– Legal Representatives of Do Kwon, filed at the Southern District of New York.

Kwon’s lawyers argue that answering the SEC’s questions in writing would violate his right to due process. They are open to him being deposed, but only in Montenegro, where he is currently out on bail.

You might also like:
[Arkham unveils Terraform’s and Do Kwon’s secret holdings
](https://crypto.news/arkham-unveils-terraforms-and-do-kwons-secret-holdings/)

In March 2023, Kwon and Terraform Labs CFO Han Chang-Joon were arrested in Montenegro for allegedly using fake travel documents to leave the country. Their original passports had been taken by South Korean authorities in October 2022.

Kwon’s lawyer revealed that a court in Montenegro has tentatively proposed scheduling a hearing on Oct. 13 or 26, allowing the co-founder to address the SEC’s inquiries in person. However, the SEC has indicated that it might not consider this enough and may request further questioning after the discovery deadline.

> ” The SEC is well aware that Mr. Kwon has never opposed the SEC’s efforts to depose him. Although Mr. Kwon already testified for approximately 21 hours during theSEC’s nearly two-year investigation”

This case follows the SEC’s accusations, which were made on Feb. 16, against Terraform Labs and Kwon for allegedly committing “multi-billion dollar crypto asset securities fraud.”

The Anchor Protocol is at the center of this legal dispute, which was previously advertised as offering a 20% yield on deposits of TerraUSD (UST).

Other allegations include deceiving investors about the stability of Terra’s stablecoin.

By：Mohammad Shahidullah
Link：https://crypto.news/do-kwon-fights-sec-summons-over-terra-ecosystem-collapse/

Do Kwon fights SEC summons over Terra ecosystem collapse

Do Kwon, who co-founded the defunct Terraform Labs and LUNA, has been summoned by the United States Securities and Exchange Commission (SEC). The agency requests an in-person interrogation regarding the downfall of the Terra ecosystem. However, Kwon and his legal representatives have filed a petition to dismiss the request, citing impracticality and violation of due process rights.


[Stay updated on the latest developments in Crypto , follow me on Yakihonne.com.
](https://yakihonne.com/users/nprofile1qqsdyek62drrrwaqmphkcp0yls2ehpqwf6cjzag9kcrmjnc9wgjdsdqpr3mhxue69uhkummnw3ez6vp39eukz6mfdphkumn99e3k7mgpremhxue69uhkummnw3ez6vpj9ejx7unpveskxar0wfujummjvuq3gamnwvaz7tmjv4kxz7fwv3sk6atn9e5k7vg76ry)

The U.S. financial markets are buzzing with excitement as, for the first time in the country, an Ethereum (ETH) exchange-traded fund (ETF) stands on the brink of introduction.

On September 28, asset management company VanEck dropped a significant announcement, confirming the debut of their VanEck Ethereum Strategy ETF (EFUT). Investors can expect to see EFUT shares listed on the Chicago Board Options Exchange (CBOE), with the listing date still kept under wraps by VanEck.

But here’s the twist. While Ethereum futures ETFs like EFUT are seeing the green light, their counterparts that focus on actual cryptocurrencies, known as crypto spot ETFs, are still stuck at the regulatory crossroads.

The Ethereum ETF by VanEck is just the tip of the iceberg, leading a convoy of 14 other proposals knocking on the SEC’s door, each hoping to launch their version of this product.

What does this all mean for investors? Here is everything you need to know about Ethereum ETFs.

You might also like:
[What is Bitcoin ETF and which companies applied for it in the US?
](https://crypto.news/learn/what-is-bitcoin-etf-and-which-companies-applied-for-it-in-the-us/)

## Ethereum ETFs and their types
An ETF is a type of investment fund that’s traded on stock exchanges, similar to individual stocks. Essentially, it’s a basket of assets – whether that’s stocks, commodities, or other investment types – that offers diversification and accessibility to investors.

Taking that concept into the realm of cryptocurrency, an Ethereum ETF mirrors the behavior of Ethereum. By purchasing Ethereum ETF shares, investors get exposure to Ethereum’s price fluctuations without actually owning ETH coins.

There are two kinds of Ethereum ETFs: spot and future.

## Spot ETFs
Spot ETFs are essentially funds that directly purchase and hold Ethereum tokens. When you buy a share of a Spot ETF, you’re buying a piece of an actual Ethereum token, but it’s the fund that holds it for you.

### Key characteristics

- Direct exposure: With spot ETFs, your investment’s value moves directly with the price of Ether. When Ethereum’s price goes up, so does the value of your investment, and vice versa.
- Storage: Unlike individual investors in cryptocurrency who need to manage digital wallets and remember cryptographic keys, spot ETF investors don’t have to deal with these technicalities. The ETF handles the storage and security of the Ethereum tokens.
- Liquidity management: Because these funds hold the actual Ethereum cryptocurrency (ETH), managing the ability to quickly buy or sell can sometimes be more complex, especially in volatile markets.

## Futures ETFs
Futures ETFs are a bit different. They don’t buy or hold Ethereum directly. Instead, they invest in futures contracts. These are agreements to buy or sell Ethereum at a set price on a certain future date. It’s like agreeing today on the price for something you’ll buy or sell later.

### Key characteristics
I

- ndirect exposure: Futures ETFs are influenced by both the current price of Ethereum and predictions about its future price.
- No physical handling: These ETFs deal with contracts about Ethereum, not the cryptocurrency itself. This means the funds don’t have to manage the storage or security of actual Ethereum tokens.
- Rolling contracts: Futures contracts have expiration dates. So, when one contract’s end date approaches, the ETF’s managers have to replace it (or “roll it over”) with a new contract. This process can influence the ETF’s returns, especially if future prices are significantly different from current ones.

## Pros and cons of ETH ETFs
While Ethereum ETFs offer some exciting advantages, they come with their set of challenges.

#### Advantages of Ethereum ETFs

1. Diversification: Ethereum ETFs are an excellent tool for those looking to broaden their investment portfolio. By providing exposure to Ethereum’s price performance, these ETFs can act as a hedge, potentially mitigating risks inherent in other asset classes.
2. Regulatory compliance: Ethereum ETFs operate under established financial regulations, which can be a huge confidence booster. It’s a way of ensuring you’re not diving into murky waters.
3. Liquidity: Ethereum ETFs enjoy the advantage of being traded on well-established stock exchanges. This means investors can easily buy or sell their shares, capitalizing on market trends and ensuring ease of entry and exit.

### Disadvantages of Ethereum ETFs

1. Counterparty risk: Every investment has risks. With Ethereum ETFs, there’s the looming shadow of issuer credit risk. If the entity replicating Ethereum’s price movements falters, it could spell trouble for the ETF’s performance.
2. Limited control: When you invest in an Ethereum ETF, you’re placing trust in the fund manager’s hands. Unlike direct investments, where you control your destiny, here, you ride shotgun, relying on the manager’s expertise and decisions.
3. Fees: While convenience is great, it comes at a price. Management fees can eat into your returns over time. It’s crucial to weigh the costs against the potential benefits.
4. Market dynamics: Sometimes, the ETF’s performance might not exactly mirror Ethereum’s market moves. Discrepancies can arise due to a range of factors, potentially affecting returns.

You might also like:
[U.S. government shutdown looms, creating uncertainty in crypto market
](https://crypto.news/u-s-government-shutdown-looms-creating-uncertainty-in-crypto-market/)

## How Ethereum ETFs could impact the crypto market?
Ethereum ETFs are a relatively new addition to the financial ecosystem, and understanding their potential impact on the crypto market requires a deeper examination, juxtaposing the traditional ETF dynamics with the nuances of the crypto landscape.

ETFs’ unique structure, as pointed out by BlackRock, offers dual liquidity – from the primary market of underlying assets and the secondary on-exchange trades. Translating this to Ethereum ETFs, they could amplify the liquidity of Ethereum, making it more accessible to a wider range of investors.

But liquidity is just the start. While traditional ETFs have proven not to be major influencers of market direction, Ethereum ETFs operate in a different ecosystem. The crypto market is more volatile and less mature than traditional markets. As a result, large inflows or outflows from Ethereum ETFs might have more pronounced effects on Ethereum’s price, at least in the short term.

One of the principal benefits ETFs bring to traditional markets is stability. With their ability to act as “shock absorbers” during volatile sessions, Ethereum ETFs could introduce a new level of stability to the crypto sector, making it more resilient to sudden market swings.

Lastly, Ethereum ETFs’ potential role in price discovery cannot be understated. The crypto market could benefit from the reflective nature of ETFs, offering clearer indications of genuine investor sentiment.

This becomes particularly significant when considering the scale of the global ETF market, which, at over $10 trillion as of June 2023, towers over the $1 trillion crypto market where Ethereum holds a substantial $200 billion share. Thus, the introduction of Ethereum ETFs can be transformative and far-reaching, influencing not just its volatility but also propelling crypto into the mainstream.

## The road ahead
The green signal for the Ethereum futures ETF has sent ripples of positive sentiment throughout the crypto world. This sentiment is evident in the broader market’s response, as many assets trade in the green after a period of dormancy.

However, this newfound optimism should be approached with a measured mindset. The world of ETFs, though promising, is not devoid of risks. Especially in the crypto domain, where volatility is a given, sudden market corrections can be swift and severe.

In line with this, a golden rule in investment remains timeless: never commit more funds than you can afford to lose. As the market continues to evolve, cautious optimism should be your guiding principle.

By：Ankish Jain
Link：https://crypto.news/what-is-ethereum-etf-and-how-could-vanecks-launch-impact-crypto/

What is Ethereum ETF, and how could VanEck’s launch impact crypto?

The launch of Ethereum futures ETFs heralds cautious optimism in the crypto world. Here is everything you need to know.


[Stay updated on the latest developments in Crypto , follow me on Yakihonne.com.
](https://yakihonne.com/users/nprofile1qqsdyek62drrrwaqmphkcp0yls2ehpqwf6cjzag9kcrmjnc9wgjdsdqpr3mhxue69uhkummnw3ez6vp39eukz6mfdphkumn99e3k7mgpremhxue69uhkummnw3ez6vpj9ejx7unpveskxar0wfujummjvuq3gamnwvaz7tmjv4kxz7fwv3sk6atn9e5k7vg76ry)

Perimeter Protocol, an open-source standard for building tokenized credit markets on blockchain networks, is the first project by Circle Research.

The Perimeter Protocol aims to create a system of intelligent contracts and benchmarks for decentralized credit exchange on public blockchains. This will allow for a seamless flow of capital on secure, transparent, and decentralized networks.

Read more:
[Circle files appeal to remove stablecoins from SEC’s Binance lawsuit
](https://crypto.news/circle-files-appeal-to-remove-stablecoins-from-secs-binance-lawsuit/)

The objective is to eliminate obstacles in on-chain lending markets. The Perimeter Protocol facilitates invoice factoring, institutional crypto credit facilities, and merchant financing. It is an open-source platform that allows anyone to utilize, enhance, and contribute to the protocol.

Circle is inviting blockchain developers and the broader community to engage with Perimeter’s code base on GitHub, which could help evolve and expand applications for tokenized credit across use cases.

Circle Research was established under a charter focused on open-source knowledge sharing, believing that open research and collaboration will advance the public good and enhance security standards across emerging technologies like crypto and blockchain.

By：Adrian Zmudzinski
Link：https://crypto.news/circle-launches-initiative-to-advance-web3-innovation/

Circle launches initiative to advance web3 innovation

On Sep. 29, USDC-issuer Circle launched Circle Research, an initiative to advance crypto, blockchain, and web3 innovation through open-source research.


[Stay updated on the latest developments in Crypto , follow me on Yakihonne.com.
](https://yakihonne.com/users/nprofile1qqsdyek62drrrwaqmphkcp0yls2ehpqwf6cjzag9kcrmjnc9wgjdsdqpr3mhxue69uhkummnw3ez6vp39eukz6mfdphkumn99e3k7mgpremhxue69uhkummnw3ez6vpj9ejx7unpveskxar0wfujummjvuq3gamnwvaz7tmjv4kxz7fwv3sk6atn9e5k7vg76ry)

The Interchain Foundation, a non-profit with a mission to bolster the adoption of Cosmos, recently unveiled its roadmap for 2024. Their ambition is to redefine the landscape of what is popularly known as the “internet of blockchains.”

At the core of this 50-page document lies Cosmos’ commitment to blockchain modularity and interoperability, concepts that are fundamental to the network.

These underline Cosmos’ aim to serve as a conduit, connecting various blockchain protocols, allowing seamless communication and transaction processes without necessitating token wrapping.

The emphasis on Ethereum(ETH) rollups reveals a clear intention: to cater to developers who have found layer-2 solutions restricting.

![image](https://www.pnglog.com/1SKSUk.png)
A pivotal element in Cosmos’ strategy is its Inter-Blockchain Communication protocol (IBC).

In 2024, the primary goal of IBC is to integrate it with zero-knowledge and optimistic rollup frameworks, expanding its horizons further.

Alongside, Cosmos’ Software Developer Kit (SDK) emphasizes the platform’s edge over Ethereum, particularly in terms of customizability.

You might also like:
[Noble and Celestia partner to introduce native Cosmos stablecoin
](https://crypto.news/noble-and-celestia-partner-to-introduce-native-cosmos-stablecoin/)

This distinct advantage is attributed to Cosmos’ inherent flexibility, a byproduct of its modularity, which delineates blockchain functionalities.

However, it’s essential to note, as Cosmos SDK admits, that while their software is theoretically modular, practical application is somewhat challenging.

Maria Gomez, Interchain Foundation’s managing director, said Cosmos has found it challenging to appeal to developers, primarily due to the absence of a native token which could serve as a financial incentive.

![image](https://i.ytimg.com/vi/jj299iVoKwc/hqdefault.jpg)
Ethereum’s Vitalik Buterin, for instance, presents roadmaps that, even if not realized, stir excitement and foster conversations.

This narrative-driven engagement is what Cosmos aspires to replicate with its 2024 roadmap. As Gomez puts it, they’re aiming to capture developers’ imaginations in a manner similar to Ethereum.

Data from Token Terminal reveals that there were 660 changes to the Cosmos Hub, the foundational blockchain of Cosmos, in September.

By：Bralon Hill
Link：https://crypto.news/cosmos-plans-to-attract-ethereum-developers-in-2024/

Cosmos plans to attract Ethereum developers in 2024

The Interchain Foundation has revealed its 2024 roadmap for Cosmos, prioritizing blockchain modularity, interoperability, and attracting Ethereum ecosystem developers.


[Stay updated on the latest developments in Crypto , follow me on Yakihonne.com.
](https://yakihonne.com/users/nprofile1qqsdyek62drrrwaqmphkcp0yls2ehpqwf6cjzag9kcrmjnc9wgjdsdqpr3mhxue69uhkummnw3ez6vp39eukz6mfdphkumn99e3k7mgpremhxue69uhkummnw3ez6vpj9ejx7unpveskxar0wfujummjvuq3gamnwvaz7tmjv4kxz7fwv3sk6atn9e5k7vg76ry)

Balchunas speculates that the United States Securities and Exchange Commission (SEC) might have influenced their decision to halt these purchases.

![image](https://www.pnglog.com/9N7QWZ.png)
According to reports on Sep. 28, the Valkyrie Bitcoin Strategy exchange-traded fund (ETF) was reported to be adding exposure to Ethereum futures contracts, becoming the first American ETF to offer holders exposure to Ethereum and Bitcoin futures in one package.

![image](https://i.ytimg.com/vi/_RRLiijf2es/hqdefault.jpg)
Valkyrie was also the first company to receive approval for an Ethereum futures ETF, updating its prospectus and risk disclosures related to Ethereum.

![image](https://www.pnglog.com/ShxAip.png)
A senior ETF analyst has reported that there is competition in this space.

However, Valkyrie announced that it would not make any more purchases until next Tuesday, instead selling the futures they bought to “jump the line a bit.”

Bloomberg Intelligence analyst James Seyffart has also provided updates on the Ethereum futures ETF. Bitwise filed for a pure Ethereum ETF under AETH with a fee of 0.85% and an expected launch date of Monday.

![image](https://crypto.news/app/uploads/2023/09/ETFs.png.webp)
ETF Overview | Source: James Seyffart Post on X

The SEC delayed the WisdomTreeFunds spot Bitcoin ETF ruling, leaving only VanEck and Fidelity awaiting approval.

You might also like:
[US SEC delays ARK 21Shares Bitcoin ETF ruling until January 2024
](https://crypto.news/us-sec-delays-ark-21shares-bitcoin-etf-ruling-until-january-2024/)

ProShares ETF has also announced that they will file an updated prospectus for their equal-weight Bitcoin and Ethereum ETF, set to launch next week.

Seyffart reports that the expense ratio is set for 0.95% under ticker BETE.

![image](https://www.pnglog.com/9IYV29.png)
Balchunas notes that six ETFs are currently competing for launch early next week.

By：Sarah Jansen
Link：https://crypto.news/analyst-valkyrie-likely-pressured-not-to-buy-more-ethereum-futures/

Analyst: Valkyrie likely pressured not to buy more Ethereum futures

As per Eric Balchunas, a Bloomberg senior ETF analyst, Valkyrie has issued a 497, declaring that they won’t be buying any more Ethereum futures.


[Stay updated on the latest developments in Crypto , follow me on Yakihonne.com.
](https://yakihonne.com/users/nprofile1qqsdyek62drrrwaqmphkcp0yls2ehpqwf6cjzag9kcrmjnc9wgjdsdqpr3mhxue69uhkummnw3ez6vp39eukz6mfdphkumn99e3k7mgpremhxue69uhkummnw3ez6vpj9ejx7unpveskxar0wfujummjvuq3gamnwvaz7tmjv4kxz7fwv3sk6atn9e5k7vg76ry)

Toni Wahrstätter, an Ethereum researcher, noted that five of the six largest block builders on Ethereum’s blockchain actively censor certain transactions in line with the Treasury Department’s Office of Foreign Assets Control (OFAC) directives.

Most of these censored transactions originate from decentralized mixer Tornado Cash, according to Wahrstätter, a protocol blacklisted by the Treasury Department due to its use by bad actors, including the North Korean hacker organization Lazarus.

![image](https://www.pnglog.com/eGzvvX.png)

Wahrstätter’s research further pointed to censorship across three pivotal players that keep Ethereum’s network running – validators, relays, and block builders.

Censorship has been a front-boiler topic as blockchain technology advanced and crypto adoption spread worldwide. Decentralized network proponents frequently voice unease regarding centralized entities and the power they have over decentralized operations.

![image](https://crypto.news/app/uploads/2023/09/Screenshot-29-1024x586.png.webp)
Ethereum OFAC compliance | Source: Toni Wahrstätter

These concerns were raised by Wahrstätter, who noted that obstacles rooted in the concentration of power by a few network participants pose a threat to blockchain ecosystems.

> “Censorship resistance is key for political neutrality in blockchains. No single entity should control 2/3 of a blockchain’s content. Decentralization is essential; centralization at any layer of the stack may harm the whole ecosystem,”--Toni Wahrstätter stated.

You might also like:
[Payments shouldn’t be handled on the Ethereum and Bitcoin networks | Opinion
](https://crypto.news/payments-shouldnt-be-handled-on-the-ethereum-and-bitcoin-networks-opinion/)

In a bid to combat rising censorship and centralization on Ethereum (ETH), Wahrstätter suggested two solutions.

The first is an inclusion list to aid censoring entities in handling OFAC-sanctioned transactions. This solution also recommends booting out non-compliant operators. Notably, this inclusion list was designed by Ethereum founder Vitalik Buterin and developer Mike Neuder in August 2023.

Secondly, the researcher proposed encrypted mempools that would make it impossible for entities to censor on-chain transactions based on their origin or content.

Buterin, a long-standing advocate for privacy and decentralization, remarked that censorship resistance is a bedrock for any blockchain, crypto.news previously reported.

The Ethereum creator has also criticized the U.S. for its approach to crypto regulations and how they affect networks like Solana (SOL).

By：Naga Avan-Nomayo
Link：https://crypto.news/ethereum-censorship-concerns-raised-amid-rising-ofac-compliance/

Ethereum censorship concerns raised amid rising OFAC compliance

More and more Ethereum blockchain operators have complied with sanctions from the OFAC, raising censorship concerns among decentralization proponents and network participants.


[Stay updated on the latest developments in Crypto , follow me on Yakihonne.com.
](https://yakihonne.com/users/nprofile1qqsdyek62drrrwaqmphkcp0yls2ehpqwf6cjzag9kcrmjnc9wgjdsdqpr3mhxue69uhkummnw3ez6vp39eukz6mfdphkumn99e3k7mgpremhxue69uhkummnw3ez6vpj9ejx7unpveskxar0wfujummjvuq3gamnwvaz7tmjv4kxz7fwv3sk6atn9e5k7vg76ry)

## Ramp join forces with MetaMask
Ramp is designed to bridge the gap between traditional fiat and crypto spaces, allowing users to transition between the two. Ramp’s partnership with MetaMask aims to give over 100 million MetaMask users across 150 countries full access to Ramp’s utility.

During the initial integration, Ramp’s services would be available to users on the MetaMask mobile application and the MetaMask Portfolio. This would allow users to convert their cryptocurrencies into traditional fiat currencies, augmenting the long list of dapps available to MetaMask users.

In a press release shared with crypto.news, Ramp said the core reason behind the partnership is web3 evolution and global adoption. Aside from tech enthusiasts and experienced members of the crypto space, the average user of financial services experiences difficulties in accessing the digital asset space.

By integrating Ramp into the foremost self-custody wallet, the partnership would make web3 an integral part of the traditional finance landscape, integrating decentralized finance (defi) into the daily lives of users of financial services.

In a comment, Szymon Sypniewicz, the CEO at Ramp, said,

>  “MetaMask and Ramp’s collaboration has just accelerated the Web3 revolution! With Ramp’s unrivaled set up in South America and support for PIX instant payments in Brazil, we’re talking about onboarding 100 million Metamask users across 150+ countries and 40+ local currencies straight into web3 – from zero to crypto in mere seconds. Add to that mix direct access to nine different Ethereum Layer-2 networks (with more to come), and one thing is clear: this isn’t just another partnership. It’s a quantum leap forward. The user-friendly Ramp widget doesn’t just make it easier; it makes it inevitable. Welcome to the future where web3 is everyone’s reality.”

## MetaMask building a crypto-friendly ecosystem
Before its partnership with Ramp, MetaMask had moved to create a crypto-friendly extension into the traditional finance space by introducing the “Buy Crypto” feature within its Portfolio Dapp. The feature allows users to buy crypto directly with fiat, straight into the user’s wallet.

It also gave users across 189 countries access to approximately 90 cryptocurrencies via their MetaMask wallets while supporting a long list of local payment methods. However, there are limits to purchase due to regional laws and regulations.

Commenting, Lorenzo Santos, the Senior Product Manager at MetaMask, said:

> “ We recognize that seamless, secure, and user-friendly on-ramps are essential for bridging the gap between traditional and decentralized finance. Integrating Ramp Network is not just a technical enhancement; it’s a commitment to providing our users with the most intuitive and frictionless experience as they venture into the world of cryptocurrencies.”

By：Dalmas Ngetich
Link：https://crypto.news/ramp-partners-with-metamask-to-enhance-web3/

Ramp partners with MetaMask to enhance web3

Ramp, a fintech company focused on connecting crypto with traditional finance, has partnered with MetaMask, a popular non-custodial wallet, to integrate its on-ramp services on the wallet’s mobile application. ConsenSys, a Ethereum-focused technology company, is the developer of MetaMask.


[Stay updated on the latest developments in Crypto , follow me on Yakihonne.com.
](https://yakihonne.com/users/nprofile1qqsdyek62drrrwaqmphkcp0yls2ehpqwf6cjzag9kcrmjnc9wgjdsdqpr3mhxue69uhkummnw3ez6vp39eukz6mfdphkumn99e3k7mgpremhxue69uhkummnw3ez6vpj9ejx7unpveskxar0wfujummjvuq3gamnwvaz7tmjv4kxz7fwv3sk6atn9e5k7vg76ry)

A total of 400 ether (ETH) worth about $632,000 was transferred from Buterin’s wallet to the Coinbase cryptocurrency exchange in the early hours on Sept. 25. Over the past ten days, Vitalik’s wallet has systematically transferred ethers to multiple centralized exchanges. A total of 2,421 ETH worth almost $4 million have been deposited on Coinbase since Sept. 15.

![image](https://www.pnglog.com/Tet8I6.png)

According to an on-chain data platform, Spot On Chain, the source of the 2000 ETH transaction is the address (0xD04daa65144b97F147fbc9a9B45E741dF0A28fd7) that belongs to Buterin. The platform lists 321 ETH deposited on the Kraken exchange between Sept. 15 and Sept. 19.

Buterin also reportedly deposited a total of 1,700 ETH on Bitstamp in multiple transactions on Sept. 17 and 20, and deposited 500 ETH on Paxos on Sept. 19.

On Aug. 21, wallet 0xd8d, labeled by the Ethereum Name Service (ENS) as Vitalik.ETH, was seen moving 600 ETH worth $1.01 million to a Coinbase address.

You might also like:
[Ethereum co-founder Vitalik Buterin calls for privacy and decentralization
](https://crypto.news/ethereum-co-founder-vitalik-buterin-calls-for-privacy-and-decentralization/)

## Ethereum price
The price of ETH fell during trading on the morning of Sept. 25, according to CoinMarketCap. The leading altcoin lost 1% during the day, hitting a 24-hour low of $1,570. At the time of writing, ETH was trading at $1,566.

September is traditionally considered a bad month for ETH, but the long-term outlook for Ethereum remains optimistic.

By：Anna Kharitonova
Link：https://crypto.news/ethereum-co-founder-vitalik-buterin-sends-400-eth-to-coinbase/

Ethereum co-founder Vitalik Buterin sends 400 ETH to Coinbase

Blockchain analysts have discovered several transactions worth millions of dollars from a wallet associated with an Ethereum co-founder, Vitalik Buterin.


[Stay updated on the latest developments in Crypto , follow me on Yakihonne.com.
](https://yakihonne.com/users/nprofile1qqsdyek62drrrwaqmphkcp0yls2ehpqwf6cjzag9kcrmjnc9wgjdsdqpr3mhxue69uhkummnw3ez6vp39eukz6mfdphkumn99e3k7mgpremhxue69uhkummnw3ez6vpj9ejx7unpveskxar0wfujummjvuq3gamnwvaz7tmjv4kxz7fwv3sk6atn9e5k7vg76ry)

Earlier this year, it was reported that cryptocurrency investors were facing delays concerning withdrawing funds deposited on the Ethereum blockchain.

This was following its significant software upgrade, and it created persistent headaches for Ethereum, a platform, which aims to have its technology widely used for instant transactions. This resulted in ether worth around $1.4 billion being stuck in a withdrawal queue. The delays were a prime example of the limits in the transactions that Ethereum could process.

You might also like:
[Investing in crypto: guide to smarter portfolio rebalancing
](https://crypto.news/investing-in-crypto-guide-to-smarter-portfolio-rebalancing/)

This highlighted its potential shortcomings in terms of becoming a widely-used financial infrastructure. While Ethereum has grown popular within the crypto market, it has yet to be used in mainstream payments, commerce, and finance. Despite these challenges and issues, Ethereum holds a superior position, and users continue to stand by it.

The reason for this is that it is fairly decentralized, which is key for preventing a chain from being hijacked by those validating it and for network security. It is the most decentralized smart contract blockchain within the crypto world. Ethereum offers a low barrier to entry in that anyone with the ability to set up a miner can validate transactions on the network with its proof-of-work (PoW) consensus model.

This model also requires computational input to approve the transactions, which dislocates control from the network to control over supply. Bitcoin, on the other hand, has gained acceptance as a payment method for businesses across the globe. However, the volatility of it remains a barrier for others embracing payments on Bitcoin networks.

Handling payments on Bitcoin networks may offer some advantages, like the potential for increased profits. However, its value drop can cause serious losses for users, occasionally exceeding the profit from the transaction. The volatility of Bitcoin’s value and the anonymity increase the risk of fraud. When transactions are verified within the Bitcoin network, each node within the decentralized system has to verify every transaction.

Additionally, the network can only process a specific number of transactions within a certain timeframe, such as a block. International payments through stablecoins on blockchain networks could provide an improved experience over traditional fiat transactions because they offer increased speed.

## User experience and crypto wold
In saying that, the overall UX for crypto transactions still lacks integration with existing systems and accessibility. We are far away from having consumer-ready crypto products regular people can use effectively. The UX is obscene, and the steps to make crypto payments are exponentially more than fiat ones.

UX’s problems range from underlying flaws in the architecture to problems with business models and basic UI design issues. UIs are horrible, UX is obscene, and the steps to make crypto payments are exponentially more than fiat ones. Poor UX is everywhere in the crypto world, and the consequences of this are users losing significant amounts of money, but also woefully insufficient levels of security, and sub-optimal user adoption.

One of the biggest challenges facing transactions on these networks is their limited transaction processing capabilities. This leads to high fees and slow transaction times, which can certainly be barriers to wider adoption. Automatic payments are not really what’s important here. What is important is understanding all the minor things that make up for an excellent experience and seamless payments.

Without this, crypto payments will not have a future at all. Bitcoin has experimented with some scaling up, such as the Lightning Network, a layer-2 solution built on top of the Bitcoin blockchain. Its primary goal is to address Bitcoin’s scalability issues, allowing for cheaper and faster transactions by enabling off-chain transactions via a network of payment channels.

## The mainstream adoption?
The Lightning Network was launched in 2018 and hit a total value of $140 million. This network is growing, although there are still challenges that hinder its mainstream adoption. Therefore, it is uncertain whether it is the right solution for improving payments on Bitcoin networks. It is, after all, still an experimental technology. Despite the challenges facing Bitcoin as a payment method, it continues to be embraced as a viable alternative to traditional payment methods.

This only further reinforces the need for users to take an informative yet cautious approach. The future of payments on these networks will depend on their ability to address the current challenges of transaction processing, fraud, volatility, and the user experience whilst still ensuring advantages such as the potential for profit and anonymity.

When it comes to Ethereum, the ecosystem is growing due to the surging popularity of its dApps in areas like gaming, finance, and technology. However, although it may seem like a perfect platform to the naked eye, it has considerable issues that must be addressed. These issues surround accessibility and scalability.

Addressing these problems will ensure widespread adoption, but there is no doubt that this network is faced with many challenges. As time goes on, if these issues are not solved, it is difficult to predict whether Ethereum will be able to compete with its competitors. Investing in Ethereum comes with some disadvantages. Scalability is a problem, but there are also issues with its code and its supply.

Ultimately, Ethereum often has long transaction times and high gas fees. While Bitcoin is a decentralized currency, and this is generally a benefit, it can also be viewed as a disadvantage since it means Bitcoin is not regulated. It is not like with traditional currencies where they are regulated by central banks.

These kinds of transactions do not arrive with any legal protection and are irreversible. Due to its decentralized nature, there is also no guarantee of a minimum valuation. If investors decide to stop using them and sell them, their value can decrease significantly and impact users with a vast amount of cryptocurrency.

To support the worldwide adoption of cryptocurrencies for everyday transactions, we desperately need a network that demonstrates its capabilities to handle a certain amount of transactions without delays or processing issues. The network must also offer credibility that it can handle the growing amount of transactions in the future. In essence, these networks must be scaled up. The transaction capabilities of networks like Bitcoin and Ethereum are still quite low, and the demand to carry out these transactions will only grow.

By：Max Yakubowski
Link：https://crypto.news/payments-shouldnt-be-handled-on-the-ethereum-and-bitcoin-networks-opinion/

Payments shouldn’t be handled on the Ethereum and Bitcoin networks | Opinion

Crypto companies are currently making payments entirely wrong because they are not accounting for the most important people: the end consumers.


[Stay updated on the latest developments in Crypto , follow me on Yakihonne.com.
](https://yakihonne.com/users/nprofile1qqsdyek62drrrwaqmphkcp0yls2ehpqwf6cjzag9kcrmjnc9wgjdsdqpr3mhxue69uhkummnw3ez6vp39eukz6mfdphkumn99e3k7mgpremhxue69uhkummnw3ez6vpj9ejx7unpveskxar0wfujummjvuq3gamnwvaz7tmjv4kxz7fwv3sk6atn9e5k7vg76ry)

We’ve all encountered those tweets — from the audacious moon-landing promises and “I-should’ve-just-HODLed” moments to the euphoria of bull markets. Each has left its mark (and occasionally, a dent) on the crypto sphere.

So, whether you’ve dabbled in a bit of Bitcoin (BTC) or you’re here for some entertainment, let’s dive into these byte-sized texts and see how they have fared over time.

## From power-hungry to green-hungry
In September 2022, Ethereum (ETH) underwent a landmark transition. And who better to herald its triumphant march from proof-of-work (PoW) to proof-of-stake (PoS) than the platform’s co-founder, Vitalik Buterin?

![image](https://www.pnglog.com/psQY5G.png)
With Ethereum’s reputation having been tarnished over the years for being an energy guzzler, this change was Ethereum’s pledge to become more environment-friendly.

You might also like:
[Post Ethereum Merge: A Sneak Peak at Shanghai
](https://crypto.news/post-ethereum-merge-a-sneak-peak-at-shanghai/)

Fast forward a year, and the eco-conscious move seems to be paying off in both green creds and digital street creds. As of Sep 14., PayPal and Netflix are racking up 100x more energy than the new-and-improved ETH PoS.

The times are indeed changing, and Ethereum’s switch has proven to be both a feel-good and do-good transformation.

## Do Kwon’s 60-day humbling
It’s always wiser to tweet humbly. Do Kwon, the main man behind Terra (LUNA) and UST, learned this lesson the hard way.

March 2022 rolled around. An enthusiastic crypto observer predicted that if LUNA soared, he’d go all-in on shorting it, even suggesting it was a “ponzi” scheme. Do Kwon, never one to back down, quipped back, “Yeah, but your size is not size.”

![image](https://www.pnglog.com/3VE4uc.png)
But by May, the winds had shifted dramatically. The UST-LUNA pair decoupled from their peg. With UST’s value spiraling toward a near-zero mark, Kwon poured in more funds in a frantic attempt to steady the ship.

![image](https://www.pnglog.com/I3eVDI.png)
Regrettably, for Kwon and many investors, both LUNA and UST nosedived, wiping out billions in the blink of an eye.

The lesson? Perhaps it’s that in the world of crypto, a little tweet humility goes a long way. And as for Kwon’s Twitter confidence? Well, that took a bit of a tumble, too.

## The hypocrisy hangover
Back in 2019, Celsius Network was all about championing the freedom of your funds. Their main pitch? A world where your money was truly yours, without the constraints and grip of traditional banking. “#UnbankYourself” was their battle cry, and many heeded the call, lured by promises of profits without penalties.

![image](https://www.pnglog.com/6VlYAK.png)
Yet, by June 2022, things took a dramatic turn. The very platform that preached unlimited access to one’s funds suddenly halted withdrawals. And the irony peaked a month later when they declared bankruptcy.

In hindsight, maybe their initial tweet should’ve read, “Are they really your funds? A reminder for all, especially in the crypto world: always be careful of the promises you tweet; they might just come back to haunt you.

## From “poster boy” to “oops boy”
August 2022 showcased Sam Bankman-Fried, better known in the crypto corridors as SBF, being celebrated as the unsung hero steering the crypto community. He wasn’t just another name; he was the name.

![image](https://www.pnglog.com/aQ1PuQ.png)
Fast forward to November, and that star didn’t just dim; it imploded. FTX, once a paragon of stability, came crashing down in spectacular fashion, evaporating billions of investor funds.

From the pinnacle of admiration to the depths of disbelief, it was a wild three-month ride for SBF.

## El Salvador’s historic leap
Amidst the chaos and uncertainties of the crypto world, sometimes, a glimmer of hope shines bright. And back in September 2021, it was none other than Nayib Bukele, the President of El Salvador, who held the torch high.

With a tweet as simple as “In 3 minutes, we make history,” he set the stage for a game-changing moment.

![image](https://www.pnglog.com/Oouf9R.png)
What followed was monumental. El Salvador didn’t just flirt with Bitcoin – they went all in, officially making BTC a legal tender and becoming the first country to take this historic leap, proving that crypto had the power to rewrite the rulebook amidst the chaos.

You might also like:
[El Salvador’s international bonds offer 60% return in H1 2023
](https://crypto.news/el-salvadors-international-bonds-offer-60-return-in-h1-2023/)

## The digital gold rush
Back in the 1990s, the Internet was just stretching its legs. Remember the joy of hearing the dial-up connection successfully connect?

By 1997, the Internet had gathered a certain number of enthusiasts, much like Bitcoin’s user base today. An observant user made this comparison but pointed out something even more interesting.

![image](https://www.pnglog.com/rYhYTf.png)
While the Internet’s growth was remarkable for its time, Bitcoin seems to be on a turbocharged path. If predictions hold, Bitcoin could amass a user base of one billion in the next few years. That’s like experiencing the Internet’s growth from 1997 to 2005 but at hyper-speed for Bitcoin.

## Greg’s ever-expanding regret-o-meter
Back in 2011, Greg Schoen made a move that, at the time, seemed pretty savvy. He’d snapped up Bitcoin when it was just $0.06 a pop and cashed in for a tidy fivefold return at $0.30. Sounds smart, doesn’t it?

However, Bitcoin decided to throw a curveball and shot up to $8. Greg, realizing his premature celebration, took to Twitter to share his amplified regret.

![image](https://www.pnglog.com/flgCBb.png)
But here’s where the fun kicks in. Had Greg Schoen just held onto those 1,700 BTC, he’d now be lounging on a cool $45.9 million with today’s BTC price of around $27,000. For a bit of perspective: with that kind of money, Greg might’ve found himself in the same swanky circles as celebs like Mila Kunis or Ashton Kutcher.

While most of us regret that extra dessert or not learning the guitar, Greg’s regrets have definitely leveled up. Somewhere, Greg is out there, probably wishing he had a time machine.

## Read with caution
While it’s tempting to take every tweet as gospel, remember that even the most confident predictions can take a 180° turn. It’s like trusting Greg’s Bitcoin-selling instincts—looks good at first, but hindsight is 20/20!

As you navigate this digital domain, always corroborate information from multiple trusted sources. The crypto sphere, like any other industry, has its nuances and complexities and knowledge is your compass.

By：Ankish Jain
Link：https://crypto.news/the-good-the-bad-and-the-hilarious-7-iconic-crypto-tweets-we-cant-forget/

The good, the bad, and the hilarious: 7 iconic crypto tweets we can’t forget

From moon predictions to market madness, we revisit the most memorable tweets in crypto’s history.


[Stay updated on the latest developments in Crypto , follow me on Yakihonne.com.
](https://yakihonne.com/users/nprofile1qqsdyek62drrrwaqmphkcp0yls2ehpqwf6cjzag9kcrmjnc9wgjdsdqpr3mhxue69uhkummnw3ez6vp39eukz6mfdphkumn99e3k7mgpremhxue69uhkummnw3ez6vpj9ejx7unpveskxar0wfujummjvuq3gamnwvaz7tmjv4kxz7fwv3sk6atn9e5k7vg76ry)

## Fostering Web3 business growth
Turingum aims to gain access to international companies through MarketAcross and expand its global footprint. In contrast, MarketAcross expects to strengthen its presence in the Japanese blockchain landscape by reaching a broader clientele.

The deal is expected to be a win-win scenario that promises brand visibility and new avenues for client acquisition.

You might also like:
[Nomura launches Bitcoin adoption fund for institutional investors
](https://crypto.news/nomura-launches-bitcoin-adoption-fund-for-institutional-investors/)

## Empowering Web3 businesses
One of the key aspects of this partnership is the support it offers to businesses looking to navigate the Web3 landscape. Turingum, with its expertise in tokenomics, defi solutions, and innovative contract development, is well-positioned to provide essential insights and tools for effective Web3 strategies. Japanese firms seeking to embark on projects involving token-based solutions can now turn to Turingum for guidance.

Additionally, Turingum’s clients will have the advantage of tapping into MarketAcross’s extensive marketing experience. MarketAcross has played a pivotal role in the growth of major global blockchain projects, making services such as public relations, content creation, brand reputation management, influencer partnerships, SEO, and community building available to Turingum’s clientele.

Japan has become an attractive destination for Web3 ventures due to its transparent regulatory environment. The government’s support, as demonstrated by Prime Minister Fumio Kishida’s commitment to fostering a favorable ecosystem for Web3 technology, has drawn attention to Japan’s potential in the blockchain landscape.

MarketAcross has already made inroads into Japan’s Web3 community, collaborating with Astar Network and serving as the official media collaborator for prominent Web3 conferences like WebX and IVS Crypto. These efforts have contributed to MarketAcross’s growing influence in Japan.

You might also like:
[Chainalysis: Central, Southern Asia and Oceania dominate crypto adoption
](https://crypto.news/chainalysis-central-southern-asia-and-oceania-dominate-crypto-adoption/)

## Web3 adoption gaining momentum

Web3 adoption is no longer confined to the realm of startups and tech enthusiasts; large institutions are increasingly recognizing its potential. Recent developments in the space illustrate this trend.

In a strategic move, MarketAcross announced a notable channel partnership in July. The collaboration saw MarketAcross joining forces with Chainlink Labs, the developers of Chainlink (LINK).

PayPal recently introduced On and Off ramps for Web3 payments for businesses, allowing merchants to accept cryptocurrencies from customers. PayPal’s latest stride amplifies its embrace of cryptocurrencies, granting users the power to acquire, trade, and deploy digital assets in transactions across online merchants worldwide.

Meanwhile, to ignite the spark of exploration, Meta, the parent company of Facebook and Instagram, has launched an educational endeavor within the United States. This initiative seeks to rekindle the curiosity of students and spur them to explore opportunities within the metaverse.

This initiative acknowledges the growing momentum for VR education tools. It is a testament to Meta’s push to nurture innovative learning environments while adeptly recognizing and harnessing the inexorable rise in interest and anticipation surrounding the boundless opportunities that the metaverse holds as an educational conduit.

You might also like:
[a16z leads $25m round for Bastion to bridge corporates to web3
](https://crypto.news/a16z-leads-25m-round-for-bastion-to-bridge-corporates-to-web3/)

Sony and Startale Labs have unveiled an ambitious collaboration, setting their sights on transforming the very fabric of the Web3 landscape. This groundbreaking endeavor carried forth under the banner of Sony Network Communications Labs Pte. Ltd., represents a bold step into the world of blockchain innovation. Their joint mission is to craft a series of captivating and innovative Web3 applications poised to become the driving force behind widespread adoption.

## The future of web3 adoption
Research indicates that the global Web 3.0 blockchain market is expected to reach over $44.2 billion by 2031, with a remarkable CAGR of 44.13%. This rapid growth emphasizes the increasing importance of decentralized technology and applications.

Despite the promising future of Web3, it’s essential to address user experience challenges. Felix Xu highlights the need for simplicity and intuitiveness in Web3 adoption. According to Xu, for Web3 to transcend buzzwords, it must offer a user-friendly experience that appeals to a broader audience.

As institutions and companies continue to embrace Web3, the landscape of the decentralized internet is poised for remarkable growth.

By：Ogwu Osaemezu Emmanuel
Link：https://crypto.news/turingum-partners-with-marketacross-to-accelerate-web3-adoption/

Turingum partners with MarketAcross to accelerate Web3 adoption

MarketAcross, a global blockchain marketing firm, has partnered with Japanese Web3 specialist Turingum to expand its market reach and drive blockchain adoption.


[Stay updated on the latest developments in Crypto , follow me on Yakihonne.com.
](https://yakihonne.com/users/nprofile1qqsdyek62drrrwaqmphkcp0yls2ehpqwf6cjzag9kcrmjnc9wgjdsdqpr3mhxue69uhkummnw3ez6vp39eukz6mfdphkumn99e3k7mgpremhxue69uhkummnw3ez6vpj9ejx7unpveskxar0wfujummjvuq3gamnwvaz7tmjv4kxz7fwv3sk6atn9e5k7vg76ry)

Buterin cautioned that centralized entities like custodial exchanges are “vulnerable” and can be corrupted. Users should be able to transact directly on the Ethereum blockchain, he argues.

Here’s what the 29-year-old entrepreneur told CNBC at a recent crypto developer conference in Prague:

> We need the experience on-chain to actually be good for regular people to use. […] We need it to actually be possible to do Ethereum payments in a way where the transaction fee is less than five cents.

Vitalik Buterin — Ethereum co-founder
Buterin believes Ethereum can realize its greatest utility in emerging economies by enabling payments, savings and access to the global economy. He said crypto adoption is already spreading in countries like Argentina.

You might also like:
[Ethereum co-founder Vitalik Buterin exits MakerDAO position
](https://crypto.news/ethereum-co-founder-vitalik-buterin-exits-makerdao-position/)

> I literally got recognized on the streets of Buenos Aires more often than I got recognized in San Francisco.--Vitalik Buterin — Ethereum co-founder

However, he warned that centralized actors like Binance still dominate crypto usage in many developing nations. Buterin said Ethereum must become more decentralized and secure for regular users.

> People need to have wallets that are actually secure, where if they lose the keys, they’re not going to lose everything.--Vitalik Buterin — Ethereum co-founder

Buterin also advocated for more privacy technology such as zero-knowledge proof implementations. He argued that Ethereum’s move to proof-of-stake consensus makes it “easier to anonymize.”

> Proof-of-stake is actually easier to anonymize and harder to shut down than proof-of-work is. […] Proof-of-work requires huge amounts of physical equipment and requires huge amounts of electricity. These are exactly the kinds of things that drug enforcement agencies have decades of experience detecting.--Vitalik Buterin — Ethereum co-founder

He dismissed concerns about his own prominent role in Ethereum, noting that the network is now self-governing, with several independent organizations contributing. Buterin said his goal has always been for the Ethereum Foundation to foster independent ecosystems. Buterin said there are “diverging interests” between governments who want to crack down on crypto and developers who want to build with strong encryption.

> The ecosystem does need to find a way to fight hard for the right to continue to build things with the kinds of privacy that we’ve been used to for thousands of years.--Vitalik Buterin — Ethereum co-founder

Even mainstream countries are growing more concerned for privacy technology developers, Buterin warns, citing the charges against Tornado Cash developers by the U.S. and Netherlands as an example.

Tornado Cash is an Ethereum mixing service used to enhance privacy. But law enforcement has targeted Tornado Cash developers rather than just bad actors misusing the tool.

Buterin argued this sets a dangerous precedent. He said crypto developers should have the right to build privacy-focused products without fear of prosecution.

According to Buterin, privacy is essential for realizing the decentralization and censorship resistance that are foundational to blockchain networks like Ethereum. He contends that users should be able to transact peer-to-peer without relying on or being blocked by centralized intermediaries.

By：Adrian Zmudzinski
Link：https://crypto.news/ethereum-co-founder-vitalik-buterin-calls-for-privacy-and-decentralization/

Ethereum co-founder Vitalik Buterin calls for privacy and decentralization

Ethereum (ETH) co-founder Vitalik Buterin believes that privacy and decentralization should be key priorities for the blockchain network going forward.


[Stay updated on the latest developments in Crypto , follow me on Yakihonne.com.
](https://yakihonne.com/users/nprofile1qqsdyek62drrrwaqmphkcp0yls2ehpqwf6cjzag9kcrmjnc9wgjdsdqpr3mhxue69uhkummnw3ez6vp39eukz6mfdphkumn99e3k7mgpremhxue69uhkummnw3ez6vpj9ejx7unpveskxar0wfujummjvuq3gamnwvaz7tmjv4kxz7fwv3sk6atn9e5k7vg76ry)

Web3 is a catch-all term that refers to the next iteration of the internet: an open-source, decentralized, permissionless, and trustless system built on top of blockchain technology.

However, even as the reality of web3 draws closer, there seems to be an unwillingness among government authorities to embrace it. Some observers have hypothesized that this seeming hostility stems from government fears of losing control and oversight of the internet and the data carried within.

You might also like:
[SEC accuses Binance US of hampering securities violation probe
](https://crypto.news/sec-accuses-binance-us-of-hampering-securities-violation-probe/)

## Why governments might be worried about web3
On a fundamental level, the internet provides a platform for unrestricted and immediate communication, which should benefit global connectivity. However, various nations have adopted a trend of surveillance and regulation, resulting in the curbing of the freedom to access the internet and express opinions.

![image](https://i.ytimg.com/vi/dprdD8j2KZw/hqdefault.jpg)
This tendency of states to impose significant restrictions on technology underlines the uncomfortable reality that all technology possesses an inherent political dimension, and it’s no different with web3.

There are several reasons why more authoritarian governments, and even fairly liberal ones, might feel uncomfortable about the concept of web3. Below, we’ll explore a few of them.

## Regulatory challenges
Web3 is a radical departure from the traditional structure of the internet, especially considering its decentralized nature. Many experts have mooted decentralization as a strength of the new system, given its potential to enhance security and data privacy and reduce users’ reliance on centralized tech companies for hosting, social networking, and search, among other services.

However, policymakers may view the same decentralization as posing a significant challenge to traditional regulatory structures, which are inherently centralized and authoritarian.

For example, in the current web model, if fraudulent or criminal activity occurs, authorities may hold the service provider accountable. They can also implement regulatory measures and even penalize them if necessary.

You might also like:
[Tornado Cash case: crypto anonymity vs regulation
](https://crypto.news/tornado-cash-case-crypto-anonymity-vs-regulation/)

The U.S. Treasury’s sanctioning of two virtual currency mixing services, Tornado Cash and Blender.io, along with the Department of Justice’s indictment of two Tornado Cash co-founders for allegedly helping North Korea launder stolen cryptocurrency, is an example of the sort of regulatory authority governments can exercise in a web 2.0 environment.

![image](https://cdn-us.imgs.moe/2023/09/19/65094c5ec49c6.png)
However, in a decentralized framework, implementing such regulation can become problematic. It can also lead to a breeding ground for scams and frauds, as seen in the relatively unregulated rise of decentralized finance (defi), which is expected to be a big part of web3.

The sector has seen an increase in rug pull scams, where developers abandon projects and run away with investors’ money, leaving them with worthless tokens.

Such issues serve to highlight the complex challenges that web3 presents to traditional regulatory frameworks. As such, policymakers believe that the road ahead will require a fresh outlook and innovative approaches to ensure that the benefits of decentralization do not become a refuge for illicit activities.

You might also like:
[With web3, the sports industry would never be the same | Opinion
](https://crypto.news/with-web3-the-sports-industry-would-never-be-the-same-opinion/)

## Security concerns
Despite its promise, web3 is not without security risks. Foremost among these threats is hacking, which accounted for nearly $4 billion lost in 2022 alone, per data from Chainalysis.

According to the blockchain analysis company, bad actors stole at least 82% of the amount, around $3.2 billion, from defi protocols, especially cross-chain bridges connecting different networks.

The protocols also lost close to $400 million from oracle manipulation attacks, where hackers compromised oracles, mechanisms by which defi platforms get prices for crypto assets, and created conditions that enabled quick and highly profitable trades.

![image](https://cdn-us.imgs.moe/2023/09/19/65094c9a6883e.png)
Another security risk in the web3 environment pertains to smart contract failures. Smart contracts are not only fundamental to blockchain operations; they are also viewed as key web3 components.

Misconfiguring a token smart contract, for instance, is a common mistake. If developers incorrectly set parameters like token supply or security features, it can leave the contract vulnerable to hacks.

With various government agencies already grappling with the increased number of attacks on crypto platforms, some attributed to pariah nations such as North Korea, having an entire system reliant on such seemingly fallible technology as smart contracts may appear counterintuitive to policymakers, law enforcement authorities, and regulators.

You might also like:
[SIM swap scams: growing threat to crypto community
](https://crypto.news/sim-swap-scams-growing-threat-to-crypto-community/)

## Threat to national currencies
Cryptocurrencies will be central to the web3 paradigm. However, authorities may feel they pose a potential threat to fiat currencies owing to their decentralized nature, global accessibility, and relative freedom from governmental control.

Since they operate on blockchain technology, cryptocurrencies are inherently borderless, meaning their influence is not confined to the economy of one country. Furthermore, given their growing adoption, virtual currencies could challenge the monopoly of fiat currencies issued by central banks, leading to the displacement of the traditional financial system.

For instance, in extreme situations, citizens of economically volatile countries like Venezuela and Lebanon have increasingly opted to use established cryptocurrencies such as Bitcoin (BTC) as a more stable store of value despite their volatility.

In 2019, many Venezuelans turned to crypto as an alternative to the hyperinflated national currency, the bolivar. Reports at the time indicated that the country’s peer-to-peer (P2P) crypto exchanges traded more than $8 million in BTC weekly. It forced the Venezuelan government to intervene by launching a remittance service that capped the amount of crypto its citizens could receive.

You might also like:
[Exploring the early CBDC adoption results beyond the hype
](https://crypto.news/exploring-the-early-cbdc-adoption-results-beyond-the-hype/)

## Economic instability
Another reason governments may be reluctant to accept web3 is cryptocurrency’s potential to cause economic instability.

A case in point is the crypto winter of 2022, a prolonged bear market that led to the loss of more than $2 trillion in crypto value that had been gained following a massive price rally in 2021.

Furthermore, the crash triggered a series of events that caused the collapse of several cryptocurrencies and crypto firms, including TerraUSD (UST), Three Arrows Capital (3AC), Voyager Digital, Celsius Network, and FTX, among others.

The contagion also led to the loss of billions of dollars worth of investor funds and the laying off of thousands of employees in the crypto sector. It also contributed to the 2023 banking crisis in the United States, with two financial institutions with significant exposure to digital assets, Silvergate Bank and Signature Bank, being forced to close shop.

The proliferation of web3 and the increased importance of crypto that would accompany it could mean that a similar crash may have a far greater effect on the global economy than was seen in 2022 and 2023.

## Legal and ethical challenges
Finally, web3 can present governments with various legal gray areas and ethical dilemmas.

For instance, data privacy regulations in most countries require companies to notify users about any collected information and how it will be used and shared. Such regulations also require companies to allow users to refuse to collect their personal information or to destroy it if it is already collected.

However, unlike traditional web services, many web3 dApps and smart contracts store information in immutable, publicly accessible databases. While pseudonymous, these databases can reveal all transaction details for digital wallets, and the data can be traced back to the real-life identities of the transacting parties.

Not only can a blockchain’s immutability and transparency make it difficult to comply with user requests to have their data destroyed or not shown on the blockchain, but bad actors can also exploit the information if they wish to.

In terms of ethical issues, the pseudonymity provided by web3 platforms has been a considerable point of contention. While it can protect users’ privacy and freedom of expression, it can also help hide malicious activities and make it challenging to hold individuals accountable for their actions.

Furthermore, the environmental impact of blockchain technologies, which underpin many web3 services, has sparked ethical debates about responsible innovation and sustainability.

The power consumption and carbon emissions associated with cryptocurrencies like Bitcoin have led to significant concerns over their environmental footprint.

These debates and concerns are far from resolved, and they underscore the complex task that legislators, technologists, and society face in balancing the potential benefits of web3 with its ethical implications and legal challenges.

By：Julius Mutunkei
Link：https://crypto.news/5-reasons-why-governments-dont-accept-web3/

5 reasons why governments don’t accept web3

With recent advancements in technology bringing web3 closer to becoming a reality, some governments may be unwilling to cede control to the people.


[Stay updated on the latest developments in Crypto , follow me on Yakihonne.com.
](https://yakihonne.com/users/nprofile1qqsdyek62drrrwaqmphkcp0yls2ehpqwf6cjzag9kcrmjnc9wgjdsdqpr3mhxue69uhkummnw3ez6vp39eukz6mfdphkumn99e3k7mgpremhxue69uhkummnw3ez6vpj9ejx7unpveskxar0wfujummjvuq3gamnwvaz7tmjv4kxz7fwv3sk6atn9e5k7vg76ry)

In her new role, Evans will contribute to the scaling efforts and strategic decision-making of the company. Barry Silbert, founder and CEO of DCG, highlighted Evans’ expertise, stating that she is “a dynamic leader with extensive expertise in digital assets and blockchain technology.”

Silbert also emphasized that her deep understanding of the industry’s challenges and opportunities positions her as a thought leader in the fields of technology and regulation.

![image](https://cdn-us.imgs.moe/2023/09/19/65094b5006177.png)

You might also like:
[DCG and Barry Silbert hit with securities lawsuit
](https://crypto.news/dcg-and-barry-silbert-hit-with-securities-lawsuit/)

Evans has been active in both academic and entrepreneurial circles. She became a full professor at Penn State Dickinson Law in 2020 and served as the chairwoman of MakerDAO‘s Maker Ecosystem Growth Foundation from 2020 to 2021. Beyond academia, she is the CEO of an online education platform and is preparing for the publication of a forthcoming book.

Expressing her vision for her role on the board, Evans mentioned her longstanding admiration for DCG as an established entity in the digital asset space.

Evans thanked DCG for this opportunity, stating,

> “I’ve long admired DCG’s position as one of the most established companies operating in the space and am eager to support the company’s path forward,”.

She expressed alignment with DCG’s objective to transform the existing financial system, indicating a mutual interest in rethinking conventional financial models through digital innovation.

Evans will be joining Glenn Hutchins and Lawrence Lenihan on the board of directors. Hutchins is a co-founder of Silver Lake Partners, a private equity firm, and he serves in a governance and advisory capacity at DCG, contributing his experience in investments and technology to the company’s strategic initiatives. Lenihan is the founder and co-CEO of Resonance Companies, and his directorship taps into his expertise in entrepreneurship and venture capital, aiding in the oversight and strategic direction of the company’s endeavors in the digital currency and blockchain sectors.

Evans’ appointment comes at a crucial time when the industry faces multiple challenges ranging from regulatory hurdles to technological limitations.

With her specialized background in intellectual property and blockchains, Evans brings to the table an understanding of both the technological and regulatory aspects that the company will have to navigate. This dual focus could prove beneficial for DCG as it works toward achieving long-term objectives that involve both technological innovation and legal compliance.

By：Bralon Hill
Link：https://crypto.news/tonya-evans-blockchain-expert-joins-dcgs-board-of-directors/

Tonya Evans, blockchain expert, joins DCG’s board of directors

Digital Currency Group (DCG) has added Tonya Evans, a tenured professor at Penn State Dickinson Law with expertise in intellectual property, blockchains, and distributed ledger technology, to its board of directors.


[Stay updated on the latest developments in Crypto , follow me on Yakihonne.com.
](https://yakihonne.com/users/nprofile1qqsdyek62drrrwaqmphkcp0yls2ehpqwf6cjzag9kcrmjnc9wgjdsdqpr3mhxue69uhkummnw3ez6vp39eukz6mfdphkumn99e3k7mgpremhxue69uhkummnw3ez6vpj9ejx7unpveskxar0wfujummjvuq3gamnwvaz7tmjv4kxz7fwv3sk6atn9e5k7vg76ry)

Domini.art is a platform that uses blockchain technology and traditional art practices to offer services in the decentralized finance (defi) industry. It has been gaining attention in the crypto market for its combination of art and finance.

## Domini.art’s presale is also in progress.

![image](https://lh4.googleusercontent.com/gxv1n1fpY3Qc66RtkD7TDgZm0_TNuLOLyFnwf8fB5L6i6OrtxXPUhlOW2cVM8ckF0IPzlD7WwAG-X1JobtavCT60ocPbemrB-w-47z8ZVjqmfK0jTepoI0YPfM7u_-jUJX59zLHySi16DAjqsi0RnRc)

Deutsche Bank to secure crypto for institutions, TRX and DOMI may find support - 1
Domini.art allows investors to invest in blue-chip artwork through fractional ownership.

To make this possible, artworks are tokenized as non-fungible tokens (NFTs) and sold on the platform’s NFT marketplace.

Domini.art also has a portal where investors can list their NFT ownership stakes for sale or explore available fractions of other artworks. In this way, there is transparency, liquidity, and a fair trading environment, specifically for fractionalized blue-chip art assets.

You might also like:
[Cardano expands, investors eye Domini.art’s growth
](https://crypto.news/cardano-expands-investors-eye-domini-arts-growth/)

DOMI is the native ERC-20 token that powers the operations of the Domini.art ecosystem.

Its tokenomics structure involves a deflationary burn mechanism and a redistribution system.

In the ongoing presale, DOMI is available for $0.0021.

Deutsche Bank’s recent move to secure crypto storage could spur the adoption of coins like $DOMI.

## TRON promotes decentralization
Tron is a high throughput, smart contract platform that promotes decentralization by giving content creators full ownership of their content.

You might also like:
[TRON receives support from Huawei Web 3.0 Node Engine Service
](https://crypto.news/tron-receives-support-from-huawei-web-3-0-node-engine-service/)

TRX, the native currency of Tron, is used to facilitate transactions and reward users who actively participate in the network. The coin ensures the smooth functioning of the broader Tron ecosystem across its three essential layers: storage, core, and application.

## Final Thoughts
Deutsche Bank’s plan to provide crypto custody services for its institutional investors may positively impact TRX and DOMI, a deflationary token.

By： Dalmas Ngetich
Link：https://crypto.news/deutsche-bank-to-secure-crypto-for-institutions-trx-and-domi-may-find-support/

Deutsche Bank will provide secure storage solutions for institutional investors to address crypto investment concerns. This development could impact established and emerging projects like Tron (TRX) and Domini.art (DOMI).