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

In a recent Ask Me Anything (AMA) session, Ethereum Co-founder Vitalik Buterin touched on several topics that offer a glimpse into the potential trajectory of the Ethereum ecosystem. Drawing insights from a report by Odaily news, the discourse ranged from technical advancements to acknowledgments of decentralized projects, weaving a narrative of Ethereum’s evolving landscape.

Foremost, Buterin delved into the intricacies of quantum resistance—a burgeoning concern in the blockchain community given the potential of quantum computing to challenge existing cryptographic systems. He discussed the role of account abstraction, specifically through Ethereum’s proposal ERC-4337.

This initiative, according to Buterin, can imbue users’ accounts with quantum-resistant properties, fortifying Ethereum against future threats posed by quantum computers. Such a development underscores the proactive approach the Ethereum community is taking to ensure the blockchain’s continued security and relevance.

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/)

Beyond the technical realm, Buterin also spotlighted some decentralized projects that exemplify innovation and impact within the Ethereum ecosystem. Polymarket, a decentralized prediction market platform, garnered Buterin’s praise for its strides in decentralized finance (DeFi).

The platform allows users to speculate on future events, illustrating the versatility of DeFi applications. PoolTogether, a no-loss lottery system built on Ethereum (ETH), similarly caught Buterin’s attention. This unique model lets users pool funds, earn interest and stand a chance to win prizes—a testament to the creative possibilities of blockchain technology.

On a more personal tangent, Buterin expressed his admiration for several cities around the globe. Singapore, Taipei, Vienna, Toronto and the New York State’s City of Ithaca made the list, each resonating with Buterin for their distinctive mix of technological innovation and cultural vibrancy.

In wrapping up, the insights from Buterin’s AMA serve as a compelling indicator of Ethereum’s forward momentum, with an emphasis on both technological foresight and the value of innovative decentralized projects.

By：Bralon Hill
Link：https://crypto.news/vitalik-buterin-discusses-ethereums-future-and-innovative-projects-in-ama/

Vitalik Buterin discusses Ethereum’s future and innovative projects in AMA

In a recent interactive session, Ethereum’s co-founder, Vitalik Buterin, shed light on the platform’s technical advances and celebrated emerging decentralized projects within its ecosystem.


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

![image](https://www.coindesk.com/resizer/RYiQ9mBNmFTAKwfXlfWbHgqUvA0=/1056x705/filters:quality(80):format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/2RAZEXQUNVA4DJZZ7O74CRWJMU.jpg)
(Daniel Bernard/ Unsplash)

Korean crypto services firm Team Blackbird, which runs the blockchain data and analytics platform CryptoQuant, said it introduced a crypto wallet in partnership with SK Telecom (SKT), the biggest mobile phone company in South Korea by users.

Users of the T wallet product will gain access to a blockchain-based application on their phones that lets them store tokens and access CryptoQuant’s on-chain analysis tools – which may help aid their market activities, Team Blackbird CEO Ki Young Joo said in a message to CoinDesk on Wednesday.

Jong Seung Kim, SKT's Web3 business team leader, said the wallet could help contribute to a flourishing crypto market in Korea, which is known for its high trading volumes and significant local interest.

CryptoQuant is a data and research firm offering on-chain data analysis services with institutional customers worldwide. The firm has exclusive partnerships with global companies such as the Chicago Mercantile Exchange (CME Group) and Moody's credit rating agency to provide some on-chain data and research on terminals.

By：Shaurya Malwa
Link：https://www.coindesk.com/business/2023/10/18/korean-giant-sk-telecom-to-release-crypto-wallet-with-cryptoquant-as-partner/?_gl=1*p9izyw*_up*MQ..*_ga*MTUyNjA2MTk5OC4xNjk3NjMzMDA2*_ga_VM3STRYVN8*MTY5NzYzMzAwNS4xLjEuMTY5NzYzMzAxMi41My4wLjA.

Korean Giant SK Telecom Releases Crypto Wallet With CryptoQuant as Partner


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

Leading Ethereum scaling solution Scroll has officially unveiled its mainnet. After two years marked by rigorous development and testing, the zkEVM network aims to redefine Ethereum’s scaling capabilities.

The increasing adoption of Ethereum has created challenges related to network speed and transaction costs. Scroll’s technology leverages zero-knowledge (ZK) proofs, a cryptographic method that alleviates these bottlenecks. By compressing computations off-chain, ZK proofs substantially increase transaction throughput, offering quicker transaction speeds and lower costs.

![image](https://www.pnglog.com/x7LczT.png)

## Seamless transition for developers

Scroll has architected its bytecode-level EVM-compatible zkEVM to closely emulate the Ethereum experience. This development enables developers to migrate their existing Ethereum projects to Scroll without any alterations to the code, affirming Scroll’s dedication to scaling Ethereum without sacrificing security or decentralization.

You might also like:
[Investors analyze Ethereum Classic, VC Spectra, and Uniswap as Bitcoin slows down
](https://crypto.news/investors-analyze-ethereum-classic-vc-spectra-and-uniswap-as-bitcoin-slows-down/)

The mainnet debut follows a series of successful testnets for Scroll. During its Alpha and Beta phases, the network handled over 55 million transactions. Its most recent testnet, Sepolia, logged over 900,000 wallet addresses and more than six million transactions within a span of two months. Over one hundred diverse projects, ranging from DeFi to gaming, have utilized Scroll’s test environments, underscoring the network’s versatility.

Initially, Scroll’s mainnet will prioritize onboarding infrastructure providers. This will be succeeded by a series of deployments designed to enable global developers to begin crafting Web3 products, thereby ushering new users into the Ethereum fold.

By： Mohammad Shahidullah
Link：https://crypto.news/scroll-launches-mainnet-pioneers-next-gen-ethereum-scaling-solution/

Scroll launches mainnet, pioneers next-gen Ethereum scaling solution

Scroll officially unveils its mainnet, leveraging zero-knowledge proofs to significantly enhance Ethereum’s transaction speed and reduce costs.


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

Web3 workspace and file management application Fileverse raised $1.5 million in a pre-seed round, the firm told CoinDesk Tuesday.

Privacy-focused Gnosis Chain and venture capital firm Factor led the investment, according to a press release shared by the firm. Crypto wallet provider Safe, social media privacy solution Mask Network, decentralized file storage Arweave Ecosystem and its ecosystem incubator Forward Research, Web3 credentials network Galxe, ex-Coinbase Balaji Srinivasan and other angel investors also participated in the round.

Fileverse offers a decentralized file management and collaboration service, which aims to offer an alternative to centralized providers such as Google or Notion by giving users better ownership over their personal data, the company said. The platform leverages smart contracts and stores encrypted data on the InterPlanetary File System (IPFS), a popular peer-to-peer file sharing network created by Filecoin (FIL) developer firm Protocol Labs, to avoid relying on a single server provider. Fileverse also crafted a tool that is compliant to European data privacy regulation GDPR by design through cryptographic encryption.

“Lots of research and engineering has gone into crypto infrastructure and account abstraction in the past years," Lukas Schor, co-founder and CEO of Safe, said in a statement. "Fileverse is looking to bring these advancements to a range of on-chain tools for communication and collaboration."

The investment happened as crypto firms struggle to attract fresh capital in a grueling crypto winter. Venture capital fundraising dropped to a three-year low, Messari data showed earlier this month.

By：Krisztian Sandor
Link：https://www.coindesk.com/business/2023/10/17/web3-powered-file-management-app-raises-15m-to-offer-alternative-to-google/?_gl=1*i699bc*_up*MQ..*_ga*NzQwMjA5NzkwLjE2ODgwODI2MzE.*_ga_VM3STRYVN8*MTY5NzU1MTcxOS4xNy4xLjE2OTc1NTE3ODkuMC4wLjA.

Web3-Powered File Management App Raises $1.5M to Offer Alternative to Google

Fileverse offers a decentralized file management and collaboration service, an alternative to centralized providers such as Google or Notion.


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

Manta Network has unveiled its strategic decision to adopt the Polygon Chain Development Kit (CDK) for the network’s future development.

The Polygon CDK is an open-source toolkit designed for the creation of zkEVM Layer 2 solutions.

## Consistent growth trajectory
Following this announcement, developers now have access to the Universal Circuits, a versatile library of zero-knowledge (ZK) circuits explicitly tailored for versatile applications and decentralized application (dApp) creation.

![image](https://www.pnglog.com/JF37EX.png)

Co-founder of Polygon Sandeep Nailwal expressed enthusiasm about this integration, emphasizing the synergies between Manta Pacific, the Modular L2 with ZK-as-a-Service and the expanding Polygon ZK-powered Layer 2 ecosystem. He noted that the network effects are on a consistent growth trajectory, promising enhanced access to unified blockspace for users.

You might also like:
[Polygon proposes ApeChain and $3.35m dev fund
](https://crypto.news/polygon-proposes-apechain-and-3-35m-dev-fund/)

The announcement is said to be the first step in becoming a full mainnet for Manta Pacific. The platform shares they will soon unveil more information, like integration with Celestia’s data availability (DA) to reduce gas fees and the other specs in a full mainnet launch.

## CDK for Celo
A few weeks earlier, on Sept. 21, Nailwal, Polygon’s co-founder, voiced his proposal on Celo’s governance forum, stating, “We propose the Celo Ecosystem to employ the Polygon CDK for its L2 migration.”

It is worth noting that Polygon CDK has also garnered interest from blockchain enterprises, including Canto, Astar, Immutable, IDEX, and Palm Network.

By：Sarah Jansen
Link：https://crypto.news/manta-network-transitions-to-polygon-cdk/

Manta Network transitions to Polygon CDK


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

The partnership will allow Solana (SOL) to provide both technical and business development assistance to the crypto community within Dubai’s DMCC, according to the official statement.

The DMCC Crypto Centre is a thriving hub for digital asset companies, hosting over 550 crypto firms and establishing itself as the largest ecosystem of crypto and blockchain businesses in the MENA region.

Solana’s integration into this community is expected to enhance the ability of DMCC members to scale their projects and bring their concepts to fruition. With a market capitalization exceeding $9.4 billion, Solana is one of the top 10 global crypto projects, making it a significant addition to the DMCC ecosystem.

You might also like:
[Dubai offering 90% license fee discount to web3 projects
](https://crypto.news/dubai-offering-90-license-fee-discount-to-web3-projects/)

Ahmed Bin Sulayem, CEO of DMCC, stated that the free zone would offer complimentary business setup and licensing for projects within the Solana ecosystem.

> “Providing this type of supportive environment is our core philosophy for the DMCC Crypto Centre. It is through this strategy that we have developed one of the most dynamic and value-creating ecosystems for web3 firms, offering the largest concentration of crypto, blockchain and web3 businesses across the MENA region.”

Ahmed Bin Sulayem, CEO of DMCC
In addition to business and technical support, Solana will contribute to the community by delivering webinars and educational training sessions on various web3 topics.

This educational initiative complements the existing partnerships at the DMCC Crypto Centre, which include companies like Bybit, Hacken, and Brinc. These firms focus on the development of web3 and blockchain technologies, offering a comprehensive range of services needed by crypto businesses and entrepreneurs.

Recent data also highlights Solana’s growing influence in the crypto market.

Last week, the altcoin saw an approximately $24 million inflow, marking its largest capital influx since March 2022, as per a Coinshares report.

On October 6, Solana rolled out a “Confidential Transfers” feature, enabling users to carry out blockchain transactions without revealing particular details such as the transaction amount.

The key aspect of this feature is to maintain transaction confidentiality, achieved using zero-knowledge proofs, allowing one party to demonstrate possession of a specific secret to another without revealing it.

By：Rony Roy
Link：https://crypto.news/solana-partners-with-dubais-free-trade-zone-to-boost-web3/

Solana partners with Dubai’s free-trade zone to boost web3

The Solana Foundation has become an ecosystem partner with the Dubai Multi Commodities Centre (DMCC), the UAE’s largest free trade zone, to explore web3 opportunities in Dubai.


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

## Upcoming operational changes
The Peer-to-peer (P2P) team, known for their contributions to the Lido Decentralized Autonomous Organization (DAO) and the development of Lido on Solana since March 2022, recently presented two scenarios to the Lido DAO, either to continue the development or to discontinue Lido on Solana.

Following a discussion and a vote, the decision was made to go with the latter, to conduct a phased shutdown of Lido on Solana.

You might also like:
[P2P requests {{text}}.5m funding to sustain Lido on Solana
](https://crypto.news/p2p-requests-1-5m-funding-to-sustain-lido-on-solana/)

As part of the announcement, Lido also highlights Nov. 17 as being the date the voluntary process of node operator off-boarding is scheduled to commence and Feb. 4, 2024, being the date Lido on Solana Frontend support will come to an end. On this date, unstaking will only be achievable through the Command Line Interface (CLI).

## A vote begins
In a Sept. 5 post, Yuri Mediakov and the P2P team had put forth a proposition to cease Lido on Solana operations by February 2024, which entailed a gradual phase-out of Lido’s Solana support over a five-month period, with a monthly allocation of $20,000 to address maintenance expenses.

The voting process for this proposal was scheduled to commence in four weeks from this date, allowing community members to engage in a discussion about the proposal on Lido’s forum.

https://youtu.be/6aVcJ0LD6Ts

The Lido DAO currently determines critical parameters of liquid staking protocols by leveraging its governance-driven voting power.

By：Sarah Jansen
Link：https://crypto.news/lido-announces-phased-shutdown-of-solana-operations/

Lido announces phased shutdown of Solana operations

In an Oct. 16 post on the Lido blog, the multi-platform staking solution announced that it had decided that Lido on Solana protocol will be gradually phased out in the months ahead.


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

Lido, a decentralized finance protocol for staking cryptocurrencies, faces a penalty worth 23 ETH (around $35,500) after 20 of its validators have been slashed.

In an X post on Thursday, Oct. 12, Lido confirmed the incident, saying the slashed validators have been operated by Launchnodes, a pre-synchronized Geth node for staking, which is part of the Lido protocol.

![image](https://www.pnglog.com/edaItp.png)
No further details were given so far. Launchnodes is investigating “the root cause” of the issue while the slashed validators are offline. The team behind the protocol reassured users they are “not affected apart from a reduction in the daily rewards that will be reflected in tomorrow’s rebase.”

You might also like:
[Staking rewards are now taxable, says IRS
](https://crypto.news/staking-rewards-are-now-taxable-says-irs/)

As per Lido’s calculations, the penalty represents about 2.25% of average daily protocol rewards (or 0.00023% of the total value locked in the protocol). The project also noted Launchnodes “immediately expressed their desire to compensate stakers at the soonest possible time.” It means that stakers will see “no reduced rewards for the day resulting from the outage and slashing.”

![image](https://www.pnglog.com/TiU7j3.png)

## What is slashing on Ethereum
Slashing is a severe form of penalty in the Ethereum blockchain that results in the forceful removal of a validator from the network and an associated loss of their staked ETH when a validator breaches the proof-of-stake consensus rules.

However, this practice is pretty rare in the ecosystem. In early 2023, a pseudonymous Ethereum community consultant Superphiz pointed out that only 0.04% of Ethereum validators have been slashed over the past three years.

By：Denis Omelchenko
Link：https://crypto.news/lido-faces-35k-penalty-as-20-validators-violate-ethereums-rules/

Lido faces $35k penalty as 20 validators violate Ethereum’s rules

A multi-platform staking solution Lido faces its first serious penalty after its validators misbehaved.


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

The Maranello, Italy-based company will start accepting purchases of its luxury cars using crypto in the U.S., with plans to expand the new payment option in Europe in the first quarter (Q1) 2024, Reuters reported.

The company’s chief marketing and commercial officer, Enrico Galliera told the publication that many of Ferrari’s clients are crypto investors, and including crypto as an option will enable the company to connect with potential clients.

Potential customers include “young investors who have built their fortunes around cryptocurrencies” while others are “more traditional investors, who want to diversify their portfolios,” Galliera said.

You might also like:
[Former PayPal president explores vision for Bitcoin as global payment network
](https://crypto.news/former-paypal-president-explores-vision-for-bitcoin-as-global-payment-network/)

Currently, the luxury car manufacturer will support crypto purchases using Bitcoin (BTC) and Ether (ETH) — the two largest crypto coins by market capitalization. The company is also expected to accept stablecoin USDC, and has partnered with the cryptocurrency payment processor Bitpay for its initial phase in the US.

Bitpay will immediately convert cryptocurrency payments into fiat to guard against volatility associated with crypto and also certify that cryptocurrencies used for payments do not come from any illicit activity, but are from legitimate sources.

According to Galliera, payment through cryptocurrency will not attract surcharges, fees, or extra charges. The Ferrari executive did not state the number of cars that are expected to be sold via the new payment means.

## Renewable energy sources
Ferrari’s inclusion of crypto is in line with its target to be carbon-neutral by 2030. Galliera noted how cryptocurrencies have reduced their carbon footprint with the introduction of software upgrades and the use of more renewable resources.

Electric vehicle manufacturer Tesla, which allowed customers to purchase a Tesla car with Bitcoin in 2021, suspended the payment option less than two months later over environmental concerns.

According to Tesla CEO Elon Musk at the time, the company would resume BTC payments if miners’ clean energy sources were up to 50%. Since then, Bitcoin mining’s clean energy usage surpassed the 50% mark, leading to speculations on whether Tesla will start accepting BTC payments again.

By：Anthonia Isichei
Link：https://crypto.news/ferrari-accept-bitcoin-ether-payment-luxury-cars/

Ferrari to accept Bitcoin and Ether as payment for luxury cars

Italian luxury car manufacturer Ferrari has decided to include cryptocurrency as a payment option in response to demands from dealers and the market.


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

## KEY TAKEAWAYS

- Ethereum scaling solutions based on zero knowledge rollups are increasingly popular.
- The latest, Scroll, promises a higher degree of EVM compatibility than previous generations.
- Devs envision a transformation that promises to unlock new horizons for dApp builders within L2

Ethereum scaling solutions based on zero knowledge (ZK) rollups have exploded in recent times, and the technology’s proponents argue it represents the blockchain’s future. Already, there are over a dozen projects exploring ZK rollups for a variety of applications.

The latest Layer 2 to enter the fray — Scroll — launched  discretely on October 8. But how can the new technology stand out in an increasingly crowded field?

## Does Ethereum Need Another ZK Rollup Solution?
To date, more than a dozen Ethereum scaling solutions have been developed that deploy ZK rollups.

Some of these are application-specific. For instance, the dYdX crypto exchange built its own ZK roll-up system to help reduce fees for users.

Other solutions are more ambitious, like Loopring, which used the technology to build a general-purpose business platform for trading, swapping, liquidity provision, and payments.

![image](https://www.pnglog.com/2s8Pev.png)  ZKSync Era has the highest TVL of all zkEVMs.

Finally, at the most universal level, L2s like Starknet, ZKSync Era, and Linea are open to any Web3 application that could benefit from the scalability and lower gas fees offered by ZK rollups.

Although there are plenty of ZK rollup-based L2s already available, Scroll was developed with the vision of creating a user-friendly platform for the full spectrum of decentralized applications (dApps).

## ZK Rollups for the Masses
One major challenge Ethereum developers faced when working with ZK rollups was the lack of full compatibility with the Ethereum Virtual Machine (EVM). As such, they remain out of reach for many Ethereum dApp developers.

However, Scroll contributes to recent advances in EVM-compatible rollups known as zkEVMs.

![image](https://www.pnglog.com/5quU4i.png)
In fact, the new platform could even be the first “type 1” zkEVM according  to Vitalik Buterin’s four-part categorization whereby type 1 zkEVMs “strive to be fully and uncompromisingly Ethereum-equivalent.”

The lack of strong Ethereum equivalence in existing solutions makes them very difficult to use for the average dApp developer.  Many ZK rollups require the use of obscure programming languages and a deep understanding of zero-knowledge proofs.

However, with Scroll, developers can implement  smart contracts using any EVM-compatible language.

Arguing that existing solutions are “developer-unfriendly,” Scroll’s developers have said  they want to “provide the best developer experience […] so that existing Ethereum applications can simply migrate over onto the zk-Rollup as is.”

## Accelerating Zero-Knowledge Proofs
The ZK in ZK rollups refers to the use of zero-knowledge proofs: a cryptographic process for verifying information without revealing its content.

ZK rollups offload complex computation and state storage off-chain, processing numerous transactions in a batch and posting only summarized data to the Ethereum mainnet. Using ZK proofs, they can succinctly verify that the summary data is true.

A major obstacle to the widespread use of ZK proofs is the time necessary to generate them. For example, the ZCash network can take over 30 seconds to generate proof for each anonymous transaction. Meanwhile, Filecoin requires around an hour to make each proof.

However, Scroll co-founder Ye Zhang has developed  a new hardware acceleration method that can increase the speed of proof generation by 100x.

![image](https://www.pnglog.com/8dgh8R.png)
  Zhang et al’s novel architecture for accelerating zero-knowledge proofs.
In a recent blog post , Zhang observed that the ultimate goal for the Ethereum community was to “build an Ethereum-equivalent zkEVM which can be used to prove mainnet blocks.”

He also proposed a future Ethereum in which “validators don’t need to re-execute a layer 1 block, but instead, they only verify a succinct zk proof.”

The dream is surely a lofty one, which could dramatically streamline Ethereum’s entire operation. “Imagine one day, you can prove the whole history of Ethereum via one single proof,” Zhang said. “Isn’t that super exciting?”

By：James Morales
Link：https://www.ccn.com/news/what-is-scroll-ethereum-l2-zero-knowledge-rollups/

What is Scroll? The Latest Ethereum L2 to Join the Zero-Knowledge Family


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

It may be a crypto winter, but web3 projects are still churning out important announcements — from funding to partnerships to acquisitions. But the clamor for attention during pivotal announcements escalates, and the spotlight both online and from the media doesn’t swivel your way by chance. It demands a meticulously crafted public relations strategy — one that not only bellows your message across the digital vastness and vibes with the decentralized, community-driven ethos of web3.

You might also like:
[The advances in technology turning blockchain mainstream  | Opinion
](https://crypto.news/the-advances-in-technology-turning-blockchain-mainstream-opinion/)

And there is an art and science to leveraging PR to amplify web3 announcements, ensuring a project’s voice cuts through the digital babel. While I always suggest hiring a PR firm, the truth is that a lot of projects don’t have $5,000 – $10,000 to hire PR firms like Ditto. So, how can a web3 project handle an announcement on their own?

## Preparing the ground: A 30-day PR blueprint
Web3 projects should pencil in their announcements 30 days in advance. This buffer allows for a comprehensive strategy encompassing media targets, interview availability, content strategy, and a robust social media game plan for the announcement week. A well-orchestrated strategy is indispensable, especially when it’s about announcing milestones that could be pivotal in a project’s trajectory.

Moreover, eyeing “Week 2” stories is crucial. This could entail how the announcement is part of a larger trend, updates or dovetailing the announcement with current news, ensuring sustained visibility beyond the initial announcement buzz. As the web3 sector is projected to be worth over $6 billion in 2023 with a growth rate of 44.6%, the stakes and competition are sky-high, making a well-thought-out strategy paramount.

Announcements in the web3 era: How your start-up can get real attention | Opinion - 1
Web 3.0 Market Research Report | Source: Acumen Research and Consulting

![image](https://lh3.googleusercontent.com/-CqVvHizOlfCBtga0kFv_XPRIw2SmUYYlF2vJ1SoYWhQqKycDOD-g-uuHA7vGbv8z3nomyctaO6RxxAs5vglEb7gYsh-ceRrvg7SYVpDxHgEUsAZa_Rw4Rlmf7exsKvdZyeEINV17hcnB3ovVlKBZ0I)

## Media relations: Beyond just press releases
Crafting succinct yet enticing teasers to pique media interest is an art. For instance, a teaser for a funding announcement could read, “My company has a funding announcement in 2 weeks. It’s a sizable round. Would you be interested in seeing the information early, under embargo?” Most reporters will say yes to just see what the news is.

Similarly, weaving your announcement into a broader trend can snag a reporter’s attention, such as, “Next week, we are partnering with a financial institution to ease crypto transactions for institutional clients, dovetailing with the growing trend of traditional finance warming up to crypto.” Not every pitch will culminate in coverage, but it’s a doorway to fostering relationships with reporters, a long-term asset for any project. With 526 Web3 projects launched by 315 brands in 2022 and Q1 2023, the media landscape is brimming with announcements, making relationship-building with reporters a linchpin for future coverage.

## Content and social media: The twin engines of engagement
Web3 projects involving their  community early in the strategy phase is pivotal. Educating and preparing them to amplify the announcement on social media can create a ripple effect. While it’s not about scripting their narrative, ensuring they grasp the core messaging around the announcement and its significance is vital. This collective amplification resonates with the decentralized ethos of web3, fostering a genuine buzz around the announcement. And not only is it good for broader awareness, it’s good for your community to feel involved.

Additionally, a robust content strategy that precedes the announcement is indispensable. It positions the spokesperson and the project credibly in the public eye, setting a solid prelude to the announcement. The engagement doesn’t end with the announcement; ongoing content that delves into updates, trends, or how the announcement dovetails with current news can keep the momentum going.

The synergy between a well-strategized PR blueprint and the inherent community-centric ethos of web3 projects can significantly heighten the impact of announcements. As the digital landscape continually morphs with web3 at its helm, evolving and deploying PR ingeniously will be instrumental for projects to thrive and echo amidst the digital clamor.

By： Trey Ditto
Link：https://crypto.news/announcements-in-the-web3-era-how-your-start-up-can-get-real-attention-opinion/


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

## KEY TAKEAWAYS

- An average of just 7% of Ethereum users will stick with the platform for a year.
- Ethereum’s high churn rate contrasts with most mobile apps.
- Could more mobile integrations solve Ethereum’s user retention problem?

Despite the development of increasingly advanced and numerous decentralized apps (dApps) on the platform, research suggests that Ethereum has a serious user retention problem.

As it turns out, people are less likely to stick with the blockchain than they are with the average Web2 mobile app.

## Ethereum Retention Rates Poor Compared to Mobile Apps
According to research by Token Terminal , between August 2015 and September 2023, the average retention rate for Ethereum users was just 16.3% after a month. After a year, that figure falls to as low as 7%
![image](https://www.pnglog.com/A4DYCA.png)

Looking at different Ethereum-based dApps, although specific retention rates diverge, the overall pattern is repeated across the board.

For instance, the dropoff rate for the decentralized exchange Uniswap was even worse than for Ethereum as a whole. On average, just 5% of Uniswap users were still using the platform a year after first signing up, Token Terminal data  shows.

Ethereum’s high user churn contrasts with the retention rates observed among standard mobile apps. According to Geckoboard , on average, mobile apps have a 30-day retention rate of 42%. For the best-performing apps, that figure rises to 66%.

But what are Ethereum dApps doing wrong? Could a poor user experience be holding the network, and a move to blockchain-based apps, back from greater adoption?

## Do Web3 Apps Have a User Experience Problem?
Of course, there are some great Web3 dApps with an exceptional user experience. But to date, the most popular Ethereum-based applications have been designed for web browsers, or as standalone pieces of software.

In contrast, mobile apps have changed the way people access digital tools. And some of the most popular Web2 applications today are designed to be mobile first.

Thanks to Apple’s App Store and Google Play, downloading new apps to a smartphone is almost always simpler than installing new software on a computer or configuring a new browser extension.

In addition to offering a more streamlined onboarding experience, people find it easier to integrate mobile apps into their daily routines once they download them.

For developers, there is no better way to build an active user base than making an application accessible from a device that most people carry around in their pocket.

So, maybe Web3 apps don’t have a user experience problem as much as they have a mobile problem.

## App Stores Remain Hostile to dApps
In defense of blockchain developers, mobile ecosystems have hardly welcomed them.

For example, in the US, Congress deemed Apple’s developer guidelines hostile enough to warrant investigation  by the House Subcommittee on Innovation, Data, and Commerce.

At issue are App Store guidelines that impose a 30% levy on gas fees tied to NFT transactions.

Major blockchain developers, including Coinbase and Axie Infinity, have long objected to the policy, which they argue invalidates their business model and makes it nearly impossible for them to offer their apps in an iOS-friendly format.

In the case of Coinbase, Apple’s policy forced the firm to suspend NFT transfers for its iOS wallet users.

![image](https://www.pnglog.com/sRXg5r.png)

Meanwhile, to comply with the App Store guidelines, Axie Infinity had to dramatically redesign its platform for iPhone users, who can only play a “lite” version of the game without NFT functionality.

For Android users, on the other hand, Google only recently  moved to embrace blockchain integrations and in-app NFTs.

## Ethereum’s Mobile Future
Despite recalcitrance from mobile ecosystem gatekeepers, slowly but surely, Web3 is going mobile.

With new, mobile-focused Ethereum apps being developed all the time, alongside advances in blockchain-focused hardware , the greater integration of Web3 applications into mobile devices and networks looks almost inevitable.

And once everyone can easily access tools and services built on Ethereum from their smartphones, perhaps the blockchain’s dismal track record for user retention will improve.

By：James Morales
Link：https://www.ccn.com/news/ethereum-user-retention-dismal-compared-mobile-apps/

Ethereum dApp Hell: User Retention After 1 Month is Dismal Compared to Average Mobile Apps


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

## KEY TAKEAWAYS

- Charles Hoskinson addressed misconceptions surrounding the Hydra project in a YouTube video.
- Hoskinson emphasized that Cardano’s goals have evolved beyond increasing transaction per second (TPS) metrics.
- The founder and Cardano remain under pressure after calling their biggest competitor a ‘dumpster fire.’

Cardano co-founder Charles Hoskinson has finally responded to the growing chorus of criticism aimed at the Hydra project. After his public swipes at Ethereum and its limited transactions-per-second (TPS) potential, Hoskinson found himself on the back foot amid accusations of dishonesty around Hydra’s capabilities, but he has attempted to face these down with a rebuttal in a YouTube video.

![image](https://www.pnglog.com/6E7HIP.png)

## Hydra’s Potential for Scalability
To improve scalability through a novel approach to transaction processing, Cardano created Hydra. Additionally, the project has been enhancing Hydra’s functionality since its conception. New Application Programming Interfaces, for instance, were released by updated Hydra for Web3.0 developers to use.

Hoskinson explained that over three years, Hydra made a slight pivot and changed its focus to: “let’s build some middleware that is going to be really easy for you as a developer to plug into your application work with Plutus to help get a lot of that complex logic that should not run on the main network but run it in a different network.”

However, Hoskinson was faced with allegations of deceit regarding the Hydra project. To demonstrate Cardano’s throughput potential, he unveiled a TPS graphic that showed roughly 1,000 TPS, yet the narrative built that Hydra could lead to 1 million TPS. A Cadano developer has refuted this.

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

The ambiguous nature of Hydra’s potential and the narrative that built around its incredible TPS led many to question the founder of the project, yet he has come out in defense of Hydra and what has been said previously.

Hoskinson responded to the most recent skepticism and false information on their initiative. He claims that the majority of people spread misinformation online to damage Cardano’s reputation.

“Every time a lie is said, it takes ten times as much effort to undo that in people’s memory. So, when people run around and say Hydra’s failed, we lied about Hydra, there’s no way to achieve any of these performance claims…then what they’re really doing is they’re taking the hard work of dozens of people and everybody building on it,” he stated .

He added this is not okay, and it’s not fair, and it has to stop.

“You know the internet has become a cesspool where everything goes, and misinformation spreads, and people absorb it and does have an impact,” he said .

Hoskinson emphasized that Cardano is a credible project thanks to extensive study, open-source contributions from worldwide developers and engineers, and peer-reviewed fundamentals. Additionally, the ongoing initiatives to enhance the blockchain and provide cutting-edge solutions suggest a promising future for cryptocurrencies.

## Ethereum As a ‘Dumpster Fire’
Hoskinson has often been a controversial figure and recently made a risky  statement on Twitter by outlining some of Cardano’s greatest advantages over Ethereum.

In his response, Hoskinson primarily criticized Ethereum while also showcasing the advantages of his own system.

As part of the team that launched Ethereum, Hoskinson has a good understanding of the project, but he has been a long-time skeptic of the second-largest cryptocurrency by market caps and its potential to be a ‘World Computer.’ His outspoken attacks on Ethereum may be at the heart of some of the backlash he is getting for positioning Hydra as a superior offering.

![image](https://www.pnglog.com/Kj1nb3.png)
“Meanwhile, Ethereum has a dumpster fire of a consensus layer, has a terrible programming model that they can’t change, and are getting eaten alive by their own layer 2 ecosystem,“ he said.

## SEC Not Pursuing ADA
Despite the backlash he faces for Hydra, Hoskinson stated in a recent interview  that he doesn’t think the American Securities and Exchange Commission (SEC) will pursue the project’s native coin, ADA, as a security.

He emphasized that despite the fact that ADA was listed as a security in a complaint against a cryptocurrency exchange, there hasn’t been any enforcement action taken against it thus far, and that won’t change.

The SEC recently declared approximately 12 tokens, including Cardano (ADA), Binance Coin (BNB), Solana (SOL), Polygon (MATIC), and Filecoin (FIL), to be securities and demanded that they be registered before being listed on exchanges in two lawsuits brought against the world’s two largest cryptocurrency exchanges, Coinbase and Binance.

Hoskinson highlighted that the SEC’s activities have not affected ADA  in answer to a query about why the agency has been acting “somewhat antagonistically towards Cardano” and other blockchains.

By：Teuta Franjkovic
Link：https://www.ccn.com/news/cardano-hoskinson-defends-hydra-called-ethereum-dupmster-fire/

Cardano’s Hoskinson Cornered Defending Hydra Months After Calling Ethereum a ‘Dumpster Fire’


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

Immutable, a web3 game development platform, is expanding its strategic partnerships list to accelerate mainstream adoption of video games built on the Ethereum blockchain.

In a blog post on Oct. 11, the Sydney-based firm said it partnered with Amazon Web Services (AWS) to make it easier for game developers to launch products on blockchain networks.

> “AWS is supercharging Immutable’s development by onboarding new game studios, and providing them with resources through our flagship AWS Activate startup program and AWS’s ISV Accelerate Program, which give them the tools to accelerate their global launch.”--John Kearney, head of startups at AWS, Australia and New Zealand

With AWS, Immutable wants to scale its upcoming offerings, such as Immutable zkEVM, a gaming chain built on Ethereum (ETH) that allows game developers to introduce customized digital ownership.

The company expects it will help more developers “build web3 games without needing to learn a new programming language.”

You might also like:
[Amazon is reportedly launching NFT initiative
](https://crypto.news/amazon-is-reportedly-launching-nft-initiative/)

According to Amazon’s official website, AWS marketplace provides 70+ validated blockchain solutions and around 25% of all Ethereum workloads in the world run on AWS. In addition to Immutable, Amazon also has several other supported protocols such as Hyperledger, Corda, Quorum and many others.

Immutable says it plans to launch go-to-market programs with the help of AWS to accelerate the onboarding of game studios to web3.

Amid the news, Immutable’s native token IMX briefly gained 5% topping $0.55, but later fell back, losing 4%, according to CoinMarketCap.

![image](https://crypto.news/app/uploads/2023/10/IMX_7D_graph_coinmarketcap.jpeg.webp)

Founded in 2018, Immutable has raised $277.4 million in funding over four rounds, according to data from Crunchbase. The firm is backed by 27 investors, including Liberty Global and Arrington XRP Capital.

By：Denis Omelchenko
Link：https://crypto.news/immutable-taps-amazon-to-boost-web3-gaming-adoption/

Immutable taps Amazon to boost web3 gaming adoption

Blockchain-based games platform says it has chosen Amazon Web Services to support for successful deal closures.


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

## KEY TAKEAWAYS

- Charles Hoskinson addressed misconceptions surrounding the Hydra project in a YouTube video.
- Hoskinson emphasized that Cardano’s goals have evolved beyond increasing transaction per second (TPS) metrics.
- The founder and Cardano remain under pressure after calling their biggest competitor a ‘dumpster fire.’

Cardano co-founder Charles Hoskinson has finally responded to the growing chorus of criticism aimed at the Hydra project. After his public swipes at Ethereum and its limited transactions-per-second (TPS) potential, Hoskinson found himself on the back foot amid accusations of dishonesty around Hydra’s capabilities, but he has attempted to face these down with a rebuttal in a YouTube video.

![image](https://www.pnglog.com/X5GqqL.png)
## Hydra’s Potential for Scalability
To improve scalability through a novel approach to transaction processing, Cardano created Hydra. Additionally, the project has been enhancing Hydra’s functionality since its conception. New Application Programming Interfaces, for instance, were released by updated Hydra for Web3.0 developers to use.

Hoskinson explained that over three years, Hydra made a slight pivot and changed its focus to: “let’s build some middleware that is going to be really easy for you as a developer to plug into your application work with Plutus to help get a lot of that complex logic that should not run on the main network but run it in a different network.”

However, Hoskinson was faced with allegations of deceit regarding the Hydra project. To demonstrate Cardano’s throughput potential, he unveiled a TPS graphic that showed roughly 1,000 TPS, yet the narrative built that Hydra could lead to 1 million TPS. A Cadano developer has refuted this.

![image](https://www.pnglog.com/Nc4Imj.png)
The ambiguous nature of Hydra’s potential and the narrative that built around its incredible TPS led many to question the founder of the project, yet he has come out in defense of Hydra and what has been said previously.

Hoskinson responded to the most recent skepticism and false information on their initiative. He claims that the majority of people spread misinformation online to damage Cardano’s reputation.

“Every time a lie is said, it takes ten times as much effort to undo that in people’s memory. So, when people run around and say Hydra’s failed, we lied about Hydra, there’s no way to achieve any of these performance claims…then what they’re really doing is they’re taking the hard work of dozens of people and everybody building on it,” he stated .

He added this is not okay, and it’s not fair, and it has to stop.

“You know the internet has become a cesspool where everything goes, and misinformation spreads, and people absorb it and does have an impact,” he said .

Hoskinson emphasized that Cardano is a credible project thanks to extensive study, open-source contributions from worldwide developers and engineers, and peer-reviewed fundamentals. Additionally, the ongoing initiatives to enhance the blockchain and provide cutting-edge solutions suggest a promising future for cryptocurrencies.

## Ethereum As a ‘Dumpster Fire’
Hoskinson has often been a controversial figure and recently made a risky  statement on Twitter by outlining some of Cardano’s greatest advantages over Ethereum.

In his response, Hoskinson primarily criticized Ethereum while also showcasing the advantages of his own system.

As part of the team that launched Ethereum, Hoskinson has a good understanding of the project, but he has been a long-time skeptic of the second-largest cryptocurrency by market caps and its potential to be a ‘World Computer.’ His outspoken attacks on Ethereum may be at the heart of some of the backlash he is getting for positioning Hydra as a superior offering.

![image](https://www.pnglog.com/y5PE09.png)

“Meanwhile, Ethereum has a dumpster fire of a consensus layer, has a terrible programming model that they can’t change, and are getting eaten alive by their own layer 2 ecosystem,“ he said.

## SEC Not Pursuing ADA
Despite the backlash he faces for Hydra, Hoskinson stated in a recent interview  that he doesn’t think the American Securities and Exchange Commission (SEC) will pursue the project’s native coin, ADA, as a security.

He emphasized that despite the fact that ADA was listed as a security in a complaint against a cryptocurrency exchange, there hasn’t been any enforcement action taken against it thus far, and that won’t change.

The SEC recently declared approximately 12 tokens, including Cardano (ADA), Binance Coin (BNB), Solana (SOL), Polygon (MATIC), and Filecoin (FIL), to be securities and demanded that they be registered before being listed on exchanges in two lawsuits brought against the world’s two largest cryptocurrency exchanges, Coinbase and Binance.

Hoskinson highlighted that the SEC’s activities have not affected ADA  in answer to a query about why the agency has been acting “somewhat antagonistically towards Cardano” and other blockchains.

By：Teuta Franjkovic
Link：https://www.ccn.com/news/cardano-hoskinson-defends-hydra-called-ethereum-dupmster-fire/


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

## The rise of staking and centralization
Since implementing the Merge and Shanghai upgrades, Ethereum has seen a substantial uptick in staking activities.

Staking, a process where users lock up their crypto assets to support network operations, has its merits. According to a CoinDesk report citing JPMorgan research, this surge in staking activity comes at a cost: centralization.

Traditionally, many in the crypto community prefer decentralized liquid staking platforms like Lido over their centralized counterparts.

Lido’s approach included adding more node operators to ensure no single entity controlled a significant portion of staked Ether (ETH). The aim was to address centralization concerns.

However, centralization remains a risk. A concentration of liquidity providers or node operators could act as a single point of failure or even collude to create an oligopoly, potentially undermining the interests of the broader Ethereum community.

Ethereum, the world’s second-largest crypto, has become more centralized since the Merge and Shanghai upgrades. And JPMorgan is highlighting concerns over a decline in staking yields.

You might also like:
[Ethereum’s Dencun upgrade: the next major step in scalability
](https://crypto.news/ethereums-dencun-upgrade-the-next-major-step-in-scalability/)

## The menace of rehypothecation
Another highlight from the report is rehypothecation. This complex term refers to the practice of reusing liquidity tokens as collateral across multiple decentralized finance (DeFi) protocols simultaneously.

DeFi encompasses lending, trading, and other financial activities carried out on the blockchain.

The problem arises when a staked asset’s value sharply declines or faces a security breach or protocol error.

In such scenarios, rehypothecation could trigger a cascade of liquidations, jeopardizing the stability of the DeFi ecosystem.

Furthermore, the report points out that the increase in staking has diminished the appeal of Ethereum from a yield perspective.

This shift is especially noticeable amid rising yields in traditional financial assets. The total staking yield has fallen from 7.3% before the Shanghai upgrade to approximately 5.5%.

From a different perspective, the research data presented in December following Ethereum’s Merge upgrade in September 2022 reveals a significant reduction in the network’s energy consumption, akin to the energy usage of entire countries such as Ireland and Austria.

 This decrease in power consumption positively contributes to environmental sustainability, aligning with broader global efforts to reduce the carbon footprint associated with blockchain technologies.

Ethereum’s core developers have introduced an Ethereum Improvement Proposal (EIP-7514) as part of the upcoming Dencun upgrade, scheduled for activation in October 2023.

 This proposal aims to slow down the rate of Ether staking. The intention is to provide the Ethereum community with more time to devise a practical reward scheme for stakers on the network.

## ETH price analysis
As of the time of writing, the price of Ethereum (ETH) stands at $1,629, representing a 3.4%  decline on the weekly timeframe.

Ethereum’s Relative Strength Index (RSI) is currently sitting at 40.4.

 The price of ETH is struggling to maintain the $1600 level after facing rejection at the $1700 resistance level. A failure to hold the $1600 level could potentially lead to a further decline to the $1500 level.

By：Ogwu Osaemezu Emmanuel
Link：https://crypto.news/ethereum-2-0-upgrade-has-brought-more-centralization-to-the-blockchain/

Ethereum 2.0 upgrade has brought more centralization to the blockchain

JPMorgan Chase &. Co. has shed light on how the Ethereum network decentralization has decreased significantly since the Merge event and Shanghai upgrade went live.


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

Schwartz described AMMs as a fascinating aspect of decentralized finance in a post on social media. However, implementing this feature should only proceed with the consensus of the XRPL community, he explained.

The XRPL operates as a decentralized blockchain network, facilitating efficient and secure transactions for the XRP cryptocurrency.

Unlike conventional systems, XRPL employs the Ripple Protocol Consensus Algorithm (RPCA) for consensus, ensuring quick transaction processing and scalability.

It provides a practical foundation for developing decentralized applications (dApps), while the AMM is a decentralized exchange solution that relies on a mathematical formula to establish asset prices. This formula considers the supply and demand of the assets involved, adjusting prices accordingly.

You might also like:
[SEC and Ripple seek extension for filing unredacted cross-motions
](https://crypto.news/sec-and-ripple-seek-extension-for-filing-unredacted-cross-motions/)

![image](https://www.pnglog.com/iMk3ol.png)

When asked about the timeline for AMMs becoming active on XRPL after governance voting by a community member, Schwartz responded that if the majority supports the amendment, the changes could be implemented in as little as two weeks.

Schwartz highlighted that, as far as he knows, no validators currently support the majority vote. The AMM feature was introduced with the release of Ripple version 1.12.0, which also introduced the potential clawback feature.

The team says that incorporating an AMM doesn’t just involve adding a new trading engine; it will also facilitate integration with the XRPL decentralized exchange.

![image](https://www.pnglog.com/2udlyX.png)

Despite the feature’s importance, Schwartz cautioned validators against voting independently for these changes. He stressed the need for the community to reach a consensus first. Validators should vote ‘YES,’ overwhelmingly when they observe that the community agrees and sufficient nodes endorse the adjustment.

In April, Schwartz also urged caution for those considering investing in XRP through an AMM. He outlined three key reasons for this caution.

Firstly, Schwartz highlighted the exposure to other digital assets within the AMM, explaining that price fluctuations of one asset can impact the value of all other assets in the pool, including XRP.

While acknowledging the usefulness of AMMs for trading, Schwartz emphasized the need for investors to thoroughly research and understand the potential risks before choosing to hold XRP within an AMM.

Additionally, he pointed out the limited potential for significant gains as another risk. Despite AMMs providing liquidity for XRP and other tokens, there’s no guarantee of substantial price gains for XRP.

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

## Ripple scores another victory over an SEC
In related news, judge Analisa Torres has denied the U.S. Securities and Exchange Commission’s (SEC) motion to appeal its loss against Ripple Labs.

The SEC sought to appeal the partial ruling in Ripple’s favor, declaring that retail XRP token sales didn’t meet the legal definition of a security.

However, Judge Torres rejected the SEC’s motion, stating they failed to prove controlling legal questions or substantial differences of opinion. A trial date is set for April 23, 2024. Ripple execs and the Gary Gensler-led SEC will meet in person for at least an hour to discuss a settlement before the final pretrial conference.

Judge Torres had found the SEC’s appeal wouldn’t significantly expedite the case’s resolution. This ruling should mark a crucial win for Ripple, reaffirming the validity of the previous ruling.

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

By：Ogwu Osaemezu Emmanuel
Link：https://crypto.news/ripple-cto-urges-amm-feature-integration-xrp-ledger/

Ripple CTO urges AMM integration into XRP Ledger

Ripple chief technology officer David Schwartz advocates for integrating an automated market maker (AMM) feature with the XRP Ledger (XRPL) to enable the creation of decentralized exchanges (DEXs) on the XRPL.


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

Artificial intelligence (AI) and blockchain technologies are advancing rapidly. With the increased accessibility of AI, the risk of misinformation has grown, as tools like ChatGPT enable everyone to generate large volumes of misleading content. Experts suggest that blockchain has the potential to address this issue. Web3 could provide a secure and verified identity system, ensuring the accuracy and reliability of information in the AI era.

Crypto.news talked with Laurence Moroney, AI Lead at Google, during the SmartCon conference by Chainlink in Barcelona about this and other topics. We explored the synergy between web3 and AI, why you should not rely on ChatGPT and trading bots, and whether AI could really threaten humanity.

You might also like:
[AI won’t realize its potential without web3 | Opinion
](https://crypto.news/ai-wont-realize-its-potential-without-web3-opinion/)

## “Web3 enables AI3”
*Crypto.news: To begin, could you share your journey with Bitcoin and cryptocurrencies?*

**Laurence Moroney:** I first learned about Bitcoin and cryptocurrencies eight or nine years ago by reading the book “The End of Money” by the New Scientist magazine, and that opened my mind. At first, I thought this was a borderline scam, but then I read it and understood how it works and what it’s all about.

After that, I built my first mining rig. I need to go back and take a look at it to see if I ever actually mined anything. I remember leaving it running for a few weeks and getting a few scraps, but those scraps at the time were worth pennies.

I was also a little bit put off by the shilling of NFTs. I have a number of friends whose Twitter accounts got hacked by people wanting to sell NFTs, and it brought crypto into a bad light. That’s a shame because there’s so much good in there.

I think AI is facing a similar situation. When you go onto Twitter today or other social media today, AI has all these folks sharing how you can become a millionaire just by being a prompt engineer. In the same way, a year ago, they were sharing that you can become a millionaire by selling an NFT. Unfortunately, the industry got tainted by that, as well as by other things that we all know about. But I think it has legs because it has viable solutions. I’m mostly positive about crypto. And if web3 enables AI3, then the potential there is huge.

You might also like:
[5 reasons why governments don’t accept web3
](https://crypto.news/5-reasons-why-governments-dont-accept-web3/)

**Crypto.news** :  In your view, what are the key intersections between AI and cryptocurrencies?

**Laurence Moroney:** I think there are so many points that it’s hard to list them briefly.

There’s a joke that the industry doesn’t get anything right until version 3. When we look at where generative AI stands now, it faces many challenges. For example, questions arise when data is sourced from potentially copyrighted material – who owns the output? Instances like AI-generated art winning competitions have led to controversies, showing that AI art cannot be copyrighted. Technology has raced ahead, but considerations regarding data and its implications haven’t yet caught up.

Crypto can help with that. For example, consider data. In the future, if I’m an author and I grant permission for my data to be used in training models, with identity verification and data stored on-chain, when someone uses a model trained with my data, some of the tokens generated could flow to me—this benefits data creators.

For consumers of models, having the ability to verify information on-chain using trusted models increases trust in incoming data. Lastly, for model builders, working with validated data and user-permitted data allows them to go beyond those hurdles. In essence, web3 enables AI3.

You might also like:
[ChatGPT crypto integration: how web3 companies are leveraging AI
](https://crypto.news/chatgpt-crypto-integration-how-web3-companies-are-leveraging-ai/)

## Why you shouldn’t trust ChatGPT
**Crypto.news**: When it comes to practical applications like trading bots or utilizing ChatGPT for investment advice, what are your thoughts on this? Do they currently function as intended?

**Laurence Moroney**: First, it’s crucial to understand what a bot is fundamentally. A bot is built on a transformer, a machine learning algorithm that learns how one pattern of text can be converted into another. It predicts what comes next based on the patterns it has learned. For example, if I say, “If you’re happy and you know it,” you’d typically expect the next part to be “Clap your hands.” A transformer earns those kinds of patterns.

Now, imagine a massive corpus of text on the Internet, which includes investment advice. Some of it is good advice, some bad, and some fictional. The model doesn’t know the difference between those. Generative models like GPT, where “G” stands for generative, create content, which means they make things up. Are you willing to trust trading advice or conduct trades based on a model trained on a mix of good, bad, and fictional advice?

**Crypto.news**: But what if you feed the model exclusively reliable data from reputable exchanges? Could it perform effectively in that scenario?

**Laurence Moroney**: If you were to train a model exclusively on data from reputable exchanges and only on successful transactions, you might have a better chance of getting reliable output. But you can never predict the future. Analytics have been attempting this for years, both with AI and with traditional data science. There’s nobody out there who can predict prices correctly.

Moreover, if a million people use that model simultaneously, its verifiability and accuracy will go out the window. When everyone is buying something, the price goes up. If everybody sells it, the price goes down regardless of what you predict.

I don’t believe in the future of trading bots in that way. And I worry that if you have a million bots all doing the same thing, they can potentially move the market.

You might also like:
[What are Telegram bots, and why are they popular in crypto community?
](https://crypto.news/what-are-telegram-bots-and-why-are-they-popular-in-crypto-community/)

**Crypto.news**: So, you also don’t think that AI could eventually replace human financial advisors?

**Laurence Moroney**: AI will make human financial advisors much more efficient. Financial advisors often need to read extensive documents which can contain thousands of words, to find valuable insights. LLMs can help in querying and extracting meaningful information from these documents, thereby improving efficiency.

If you think about accountants, the invention of the spreadsheet didn’t make them obsolete. It put the accountants who worked with pen and paper out of business. But it made the accountants much more efficient.

**Crypto.news**: Another challenge experts often talk about is that the trading data is too centralized.

**Laurence Moroney**: That could indeed be one of the challenges, I agree. Another challenge to consider is centralized computing. However, as models grow bigger and their functionalities grow, we’re likely to see the split of these models into smaller ones.

We are already seeing signs of that. For example, with the latest GPT-4 release, the creators came out and said that it comprises several models working together.

We are entering an era where multiple models work together to be able to solve things. That’s when that starts getting exciting, especially when we consider the potential for decentralizing models once we can distribute them. Placing a gargantuan 300 billion-parameter single model directly on the blockchain is impractical. It’s just too big. However, by developing smaller, distributed models, each operating on different blockchains, and utilizing protocols like CCIP to bridge between chains, decentralization becomes a feasible future.

## Is AI a threat to humanity?
**Crypto.news**: In “Scary Smart” by Mo Gawdat, former Chief Business Officer for Google [X], there’s a notion that AI, once surpassing human intelligence, could pose a threat. Additionally, experts have called for a pause in advanced AI development due to fears of unintended consequences. What’s your perspective on this?

**Laurence Moroney**: I guess my viewpoint is slightly different. AI models are tools used by humans for various purposes. And man’s inhumanity to man is a bigger danger than any particular tool.

I often say, and it might sound like a joke, but I think it’s true, that I’m far more afraid of biological ignorance than machine intelligence. And when you look at the most powerful AIs of today, they are largely harmless.

**Crypto.news**: But some argue that AI is advancing exponentially.

**Laurence Moroney**: Indeed, AI’s power is growing exponentially, but its growth is geared towards being able to build better solutions. That doesn’t necessarily mean that they are more dangerous solutions. For example, the hallucination level in a large language model may go down. The ability for you to use it as a utility may go up.

However, there’s the famous case of a man in Belgium who committed suicide after a session chatting with ChatGPT. It’s obviously a very tragic situation. A more powerful model, ten times or 100 times more powerful, in my opinion, doesn’t mean that that will be ten times or 100 times more likely to happen. I think the circumstances that lead to a terrible outcome like that one have nothing to do with the model. The model may have been an enabler, and it would be good to learn guardrails on these things for circumstances like that one. But to me, the multiplication of the power of the model doesn’t mean a direct multiplication of the damage that the model can do.

I know my opinion isn’t shared by a lot of people, and I think only time will tell. But I have been in technology for a long time and have seen negative stories for a long time that didn’t pan out. Remember Y2K? Most people believed that on January 1st, 2000, every computer would crash. On YouTube, you can find videos that were made back then, including one by Leonard Nimoy, the actor who played Spock in “Star Trek”, talking about how the world’s going to end. And nothing happened. We’ve mostly forgotten about it.

I’m not going to say it’s going to be perfectly safe. I think there are bad people who use powerful things to do bad things. That’s exactly the problem. And that’s what I worry about. If you give somebody a bigger gun, they can kill more people. But you don’t stop that by stopping the development of the AI. I think the positive uses of AI greatly outweigh the negative uses. But having control, understanding how these things are used, and putting appropriate guardrails to prevent such things from happening would be, in my opinion, the right approach.

**Crypto.news**: And finally, recent research suggests that with the rapid progress of artificial intelligence, the “possibility of it becoming conscious is becoming less and less fantastical”. What do you think about it?

**Laurence Moroney**: It is possible but also depends on how we define consciousness. I don’t see any path to that with today’s technology, but technology does change rapidly. We’ll see.

One of the things around consciousness is the idea of emergence, where something isn’t intelligent, but based on how it behaves, we believe it’s intelligent. We’ve already seen incidences of this where people believe ChatGPT is alive or Bard is alive because it’s in the eye of the beholder.

I think that we’re going to see more of that: people believing something is alive, smart, intelligent, and self-aware. Does that make it alive, smart, and intelligent? It might be because what if a critical mass of people believe that to be true? If eight billion people suddenly believe that ChatGPT is alive, could it be alive? I don’t know.

When we look at plants or crows, we tend not to see them as intelligent. But where I live in the Seattle area, we have a lot of coyotes, and if I’m out walking my dog, the crows warn each other when they see a coyote, and as a result, they’re helping me. So, there are all of these places where we don’t see intelligence or self-awareness or sentience, and this is forcing us to rethink it. As we’re artificially creating stuff, we’re learning more about ourselves, and I find it fascinating.

By：Lena Bozhkova
Link：https://crypto.news/google-ai-lead-dont-take-trading-advice-from-chatgpt-interview/

Google AI Lead: “Don’t take trading advice from ChatGPT” | Interview

ChatGPT and trading bots are on the rise, but can you trust their recommendations? Laurence Moroney, AI Lead at Google, discusses the intersection of AI and web3 in an exclusive interview with crypto.news.


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

The layer 1 proof-of-stake blockchain released its version 1.16 update, which includes the new “Confidential Transfers” feature, providing encrypted SPL token transactions.

Helius Labs, the developer platform that specializes in building on the Solana blockchain, indicated that not all features of the v1.16 update will be immediately live.

Developed over 10 months by Solana Labs and audited by blockchain security firm Halborn, the update has received support from a majority of validators. Prior to the official release, the update underwent testing on Solana’s testnet.

![image](https://www.pnglog.com/35UpLd.png)

## Solana capabilities
Introduced by Token2022, Confidential Transfers extend Solana’s token capabilities. This feature allows users to conduct blockchain transactions without displaying specific transaction details, like the amount. The emphasis with this feature is on transaction confidentiality, achieved using zero-knowledge proofs. The mechanism involves the Twisted ElGamal Encryption method, with Sigma Protocols used for verification, allowing one party to demonstrate possession of a specific secret to another without revealing it.

Regulatory responses to privacy features in blockchain technologies vary globally. Some jurisdictions have led to the delisting of privacy coins from certain exchanges. Thus, features like Confidential Transfers might have implications for how Solana tokens are treated in different regions.

You might also like:
[Solana’s boss urges U.S. to embrace crypto to stop brain drain
](https://crypto.news/solanas-boss-urges-u-s-to-embrace-crypto-to-stop-brain-drain/)

## Additional updates
Beyond Confidential Transfers, version 1.16 has addressed prior inconsistencies and added several performance enhancements. A significant development is the enhancement in Zero-Knowledge Proof capabilities.

With the integration of the BN-128 elliptic curve, the update aims to reduce the overheads associated with proof generation and verification. This change also aligns Solana more closely with Ethereum’s smart contracts in terms of compatibility.

The update brings improvements for validators. There’s a reduction in RAM usage, an optimized gossip pull-requests system to manage bandwidth, and a repair request feature to help lagging validators synchronize faster with the network. Additionally, the update introduces resizable data accounts, allowing developers more flexibility in program deployment.

The latest features will be introduced in phases during specific Solana epochs, which are predetermined periods significant for network operations.

By：Bralon Hill
Link：https://crypto.news/helius-solana-upgrades-improvements/

Helius shows off Solana’s upgrades and improvements

Solana (SOL) is introducing a “Confidential Transfers” feature that provides encrypted SPL token transactions and various performance enhancements.


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

If the community approves, the Flow (FLOW) ecosystem could soon support Ethereum-based decentralized applications (dapps).

The proposal was published by Dieter Shirley, Dapper Labs co-founder and Lead Architect at Flow, who explained that no code changes would be required to make full Ethereum Virtual Machine (EVM) equivalence on Flow.

You might also like:
[Crypto assets see inflows first time in 6 weeks
](https://crypto.news/crypto-assets-see-inflows-first-time-in-6-weeks/)

Developers could wrap external transactions in Cadence, a smart contract programming language for the Flow blockchain, using the so-called “gateway” software.

If Flow opens its infrastructure for Ethereum-compatible virtual machines, blockchain developers could bridge not only ERC-20 tokens between the networks but also non-fungible tokens (NFTs) deployed on the ERC-721 standard.

However, some “tricky aspects” still need to be resolved, including EVM gas fees mapping on Cadence.

At the time of writing, the post has only received 12 likes, with no responses or deadlines on the proposal.

Flow is a permissionless layer-1 blockchain on the proof-of-stake consensus protocol developed by Dapper Labs and launched in 2020.

The project raised $18 million on CoinList across the community sale and auction from nearly 13,000 participants.

By：Denis Omelchenko
Link：https://crypto.news/flow-proposes-bridging-to-ethereum-via-gateway/

Flow proposes bridging to Ethereum via ‘gateway’

A new proposal has been suggested to create a “gateway” software that will enable transactions from Ethereum to be wrapped and submitted to Flow.


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

The impact blockchain technology is having on the entertainment, creative, and sports industries is profound. Web3 is revolutionizing how fans experience entertainment content and how they engage with their beloved sports athletes and teams. The web3 industry is disrupting sports, entertainment, and culture. This is particularly the case in Asia.

You might also like:
[The rise of blockchain gaming in Asia has just begun | Opinion
](https://crypto.news/the-rise-of-blockchain-gaming-in-asia-has-just-begun-opinion/)

Hong Kong, for instance, has already taken bold steps to embrace the potential of the next internet. Hong Kong announced its eagerness to invest in web3 and shared its plans to become a leader in web3 innovation. Web3 is also fuelling the digital transformation in Southeast Asia, unlocking new opportunities, connecting communities, and accelerating adoption across the region.

In Southeast Asia, web3 is being harnessed to power a range of different sectors but, primarily, the creator economy. Vietnam, Thailand, and the Philippines have all shared plans to utilize web3 technology to champion the blockchain revolution.

Web3 is already reshaping content creation by enabling creators to curate captivating, and unique experiences for their audiences. With this in mind, web3 technologies are empowering writers, musicians, artists, and other various creatives. Athletic superstars, artists and musicians are also leveraging NFTs to revolutionize the idea of digital ownership.

They can sell verifiable, unique copies of their work to their fans. This breathes new life into sports, music, art, and collectibles by transcending the limitations of physical media and bringing IP and royalty distribution into the digital century. For instance, in 2021, ONE Championship, Asia’s largest mixed martial arts (MMA) promotion announced they would be launching a marketplace with NFTs offering exclusive access to real-world benefits like ringside seats, backstage passes, and more to personalize the fan experience.

## Web3 and redefined industries
Web3 is bringing the metaverse and virtual worlds to life. These environments are incredibly immersive, and offer users enhanced social experiences and interactivity. Users and fans can attend virtual events such as concerts and exhibitions, interact with one another, and own virtual assets represented as NFTs. The metaverse is redefining how entertainment is both consumed and experienced by blurring the lines between the digital realm and reality.

The Philippine Basketball Association announced the arrival of digital collectibles with topical, gamification, and commemorative purposes to enhance the fan experience. Fans will be able to collect past and present live in-game moments and merchandise from the season on the virtualness platform. PBA’s aim with this is to unlock unique real and virtual world experiences like invitations to seats, player meet and greets, online exclusives and discounts, and more.

The arrival of web3 has redefined the relationship between sports stars, creators, and their audiences. It is doing this by elevating fan engagement through token-based reward experiences, loyalty incentives, and active participation. Fans can earn by participating in community events or supporting their favorite athletes, establishing a symbiotic relationship that benefits both parties.

Take the Resources Capital Football Club. They were the first Asian football team to launch NFT collectibles. The collection featured an exclusive card of the team’s captain and goalkeeper, one of their top players. The winning bidder received special access to all the team’s matches for the remainder of the year. With the launch of the collection, fans were able to own a part of the club and its history.

## Reinventing traditions with web3
Web3 is not only improving existing entertainment models but also disrupting traditional business practices. It is transforming existing entertainment models by providing immense potential for synergy and teamwork amongst web3 start-ups and entertainment businesses. These partnerships are fostering innovation, which is bringing about the best of both worlds.

Web3 is disrupting the sports sector, and many would argue it’s a perfect combination. One of the current hottest topics under this umbrella is digital collectibles, which are enhancing the fan experience and enabling teams to achieve new heights of fan growth, drive retention and ROI, and deepen relationships. The International Basketball Federation (FIBA) recently launched a series of distinctive digital collectibles.

Digital collectibles are allowing for increased audience ownership by giving them utility, control of their data, exclusive content, different membership packages, and more immersive virtual platforms. The FIBA NFT collection features four offerings, each of which caters to the interests of basketball collectors and fans. From the ‘Fan’s Frenzy’ to the ‘Nation Pride,’ each of the tiers features an array of designs and rewards.

In sports, these digital collectibles are being used to offer exclusive access to content. Sports organizations can further use them as a valuable acquisition and retention tool by rewarding their most loyal users who contribute to growing their community. The sports sector should take full advantage of web3; otherwise, they risk missing out on considerable revenue and growth opportunities. Web3 is a step in the right direction as more fans look for convenience, personalization, and value for money.

Web3 technology is also enabling secure and transparent ticketing systems. These work to ensure fair access to live events and reduce the likelihood of fraud. Smart contracts can also automate ticket transfers and sales, removing the need for using third-party ticketing platforms. Ultimately, web3 is providing new avenues for content monetization, fan engagement and transparent transactions. This creates a more immersive and inclusive experience for all stakeholders.

While the integration of web3 technologies into the sports sector is still in its early stages, the potential is significant. These technologies will continue to evolve, and as they do, we can expect to see more innovative applications. As more fans become familiar with web3 technologies, the adoption of them will accelerate. This presents exciting opportunities for sports organizations and fans but also for technology providers, entrepreneurs, and investors in the web3 space.

The ones who will take advantage of web3 technologies will be the ones to thrive in the years to come. By enabling change in ownership structures, monetization channels, and incentives, web3 can become a more empowering and equitable ecosystem for those within the sports, entertainment, and culture industries. We are already seeing this shift in Asia, and it’s only a matter of time before it is taken up across the rest of the world.

By：Max Yakubowski
Link：https://crypto.news/web3-is-disrupting-sports-entertainment-and-culture-in-asia-opinion/

Web3 is disrupting sports, entertainment, and culture in Asia | Opinion