ERC-404: Bridging Fungible and Non-Fungible Tokens

The ERC-404 token standard represents a groundbreaking advance in blockchain technology, blending the characteristics of ERC-20 fungible tokens with ERC-721 non-fungible tokens (NFTs).

This experimental standard, initiated by developers known as “ctrl” and “Acme” in February 2024, seeks to merge these distinct types of digital assets into a singular, more versatile format.

Understanding ERC-404

ERC-404, aptly named after the familiar “Error 404” webpage error, signifies a bold exploration into uncharted territory. The standard’s primary innovation lies in its ability to fractionalize NFTs within the Ethereum protocol, allowing for shared ownership and enhanced liquidity of unique digital assets.

Technical Foundations

The ERC-404 standard is designed around a core principle: integrating the divisibility of ERC-20 tokens with the uniqueness of ERC-721 tokens. This integration is achieved through a mechanism that links the fungible token’s value directly to an indivisible NFT, ensuring that the token’s market value dynamically reflects the NFT’s worth.

How ERC-404 Works

The operational framework of ERC-404 introduces a “mint-and-burn” strategy, which facilitates the fractional ownership and transferability of NFTs:

• Minting: When a user purchases a complete ERC-404 token, the system automatically mints a corresponding NFT and assigns it to their wallet. This NFT represents full ownership of the underlying asset.
• Burning: Conversely, when a user sells portions of their ERC-404 token, the associated NFT is burned. The smart contract then redistributes fractional ownership to the buyers of the token fractions. The NFT exists in its entirety only when a single user holds a complete token.

Comparing ERC-404 with ERC-20 and ERC-721

ERC-404 offers a unique blend of features that set it apart from its predecessors:

• ERC-20: Unlike purely fungible ERC-20 tokens, ERC-404 tokens can encapsulate unique attributes when assembled in full, making them partially non-fungible.
• ERC-721: While ERC-721 tokens are entirely non-fungible and indivisible, representing a single asset, ERC-404 tokens introduce the possibility of fractional ownership, thus increasing their liquidity and trading flexibility.

Use Cases of ERC-404

ERC-404’s innovative design opens up a myriad of applications across various sectors:

Asset Tokenization

One of the most promising applications for ERC-404 is in the tokenization of physical assets. This could dramatically transform sectors like real estate, art, and luxury goods by lowering the barriers to entry for investors and increasing the liquidity of traditionally illiquid markets.

Decentralized Finance (DeFi)

In the realm of DeFi, ERC-404 can broaden the scope of usable assets by allowing unique, non-fungible assets to be fractionally owned and used as collateral. This could lead to more diversified and resilient financial products and services.

Gaming

The gaming industry could also benefit significantly from ERC-404. It allows for the fractional ownership and trade of in-game items and assets, which could introduce new gameplay mechanics and economic models, enhancing player engagement and opening new revenue streams.

Challenges and Risks

Despite its potential, ERC-404 faces several significant challenges that could impact its adoption and functionality:

Lack of Official Recognition

The Ethereum Foundation has not officially recognized the ERC-404 standard, which might deter adoption due to concerns over security and long-term support. Official endorsement is crucial for wider acceptance and integration into mainstream platforms.

Market Volatility

The experimental nature of ERC-404 and its first token implementation, PANDORA, has shown substantial price volatility. Such fluctuations can deter investors and users from adopting the standard until it proves stable and reliable in the market.

Security Vulnerabilities

As with any new technology, ERC-404 is susceptible to potential exploits. Its innovative mechanism may attract attention from malicious actors looking to leverage any vulnerabilities in its design. Thorough testing and community vetting are essential to fortify ERC-404 against such risks.

Conclusion

ERC-404 represents a significant innovation in the field of digital assets, offering a flexible and dynamic approach to token design. It bridges the gap between fungible and non-fungible tokens, providing the potential for broader applications and greater liquidity.

However, the success of ERC-404 will depend on overcoming the challenges related to security, market acceptance, and official recognition. If these issues can be addressed, ERC-404 may well pave the way for new forms of digital ownership and asset management on the blockchain.

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What are Ethereum Address Checksums?

Understanding Checksums

A checksum is a small data sequence derived from a block of digital data for the purpose of detecting errors that may have been introduced during its transmission or storage.

Acting as a unique fingerprint for the original data, a checksum helps verify the integrity and authenticity of a file or data sequence.

It’s particularly useful in applications like network communications, file storage, and within blockchain technology, where any alteration or error can lead to significant issues.

What is an Ethereum Checksum Address?

In the Ethereum network, addresses serve as unique identifiers that facilitate the sending and receiving of cryptocurrency. They are generated using both public and private cryptographic keys, resulting in hexadecimal strings.

Ethereum addresses can appear in two forms: checksummed and non-checksummed. Checksummed addresses include a mix of capital and lowercase letters and are crucial for reducing the risk of sending funds to an incorrect address due to typographical errors.

Ethereum Improvement Proposal 55 (EIP-55)

The checksum mechanism in Ethereum addresses was introduced through Ethereum Improvement Proposal 55, or EIP-55. This standard dictates how checksums are integrated into Ethereum addresses to enhance error detection and prevent transactions to incorrect addresses.

The checksum feature differentiates between capital and lowercase letters in the hexadecimal address, thereby providing an additional layer of security and reducing the risk of errors.

How Checksums are Implemented in Ethereum Addresses

The process of adding a checksum to an Ethereum address involves several steps:

1. Conversion to Lowercase: The original Ethereum address, excluding the ‘0x’ prefix, is converted to lowercase.
2. Hashing: The lowercase version of the address is hashed using the Keccak-256 hashing algorithm, which is part of the SHA-3 family of cryptographic hash functions.
3. Character Comparison: Each character in the original address is compared against the corresponding bit in the hash:

• If a character in the original address is a letter (A-F) and the corresponding bit in the hash is ‘1’, it is capitalized.
• If the corresponding bit is ‘0’, the character remains lowercase.

This method ensures that the checksummed address contains a specific pattern of uppercase and lowercase letters, which is directly dependent on the hash of the address itself. This pattern helps detect any errors or alterations in the address.

Benefits of Using Checksummed Ethereum Addresses

Checksummed Ethereum addresses provide several advantages:

• Enhanced Security: The checksum adds a layer of security by ensuring that addresses are entered correctly, reducing the risk of assets being sent to the wrong address due to a typing error.
• Error Detection: The mix of uppercase and lowercase letters in checksummed addresses helps detect and prevent errors in address entry.
• Increased Confidence: Users can transact with greater assurance, knowing that the likelihood of errors is minimized, thereby increasing trust in Ethereum-based transactions.

Considerations and Limitations

While checksummed addresses significantly reduce the risk of error in Ethereum transactions, they are not foolproof. Users must still be vigilant, as checksums do not prevent sending Ether to a valid but unintended address, nor do they confirm the presence of an active account or smart contract at the address. Checksums also won’t alert users if they accidentally use an address for another cryptocurrency.

Furthermore, the presence of visually similar characters in addresses (like ‘l’ and ‘I’) could still lead to confusion, albeit a valid checksum will help mitigate most common errors.

Conclusion

Checksummed Ethereum addresses represent a critical security feature within the Ethereum ecosystem, enhancing the accuracy and reliability of transactions by incorporating error-detection capabilities.

As the adoption of cryptocurrency grows, the importance of such security measures becomes increasingly paramount, ensuring that users’ digital assets are protected from common mistakes and enhancing overall confidence in digital transactions.

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Understanding Reentrancy Attacks in Smart Contracts

Overview of Smart Contract Vulnerabilities

Smart contracts on blockchain platforms like Ethereum can automate transactions and enforce agreements without the need for intermediaries. However, these contracts are not free from vulnerabilities, which can be exploited by malicious entities.

Common issues include inadequate input validation, flaws in business logic, and insecure external calls. These vulnerabilities can lead to unexpected behaviors, potentially causing logical gaps that attackers can exploit.

What is a Reentrancy Attack?

A reentrancy attack is a specific type of vulnerability in smart contracts. It occurs when a contract makes an external call to another contract before it finishes executing its own state changes.

This vulnerability allows the called contract to make a recursive call back to the original contract, potentially leading to unexpected behaviors and harmful effects like multiple unauthorized actions or state changes.

Notable Examples of Reentrancy Attacks

One of the most infamous examples of a reentrancy attack was the DAO hack on Ethereum in 2016, where attackers drained millions of dollars in Ether due to a reentrancy flaw. This and other similar attacks in various DeFi protocols have highlighted the persistent risk and financial impact associated with reentrancy vulnerabilities.

How Reentrancy Attacks Work

Reentrancy attacks exploit the sequential and deterministic nature of smart contract executions. Here’s a step-by-step breakdown of how these attacks typically occur:

1. Initial Call: A smart contract (victim) calls an external contract or function.
2. External Interaction: The external contract receives control and can execute its code.
3. Re-Entry: The external contract makes a recursive call back to the victim contract before the initial execution is completed.
4. State Changes: The re-entered function can alter the state, potentially leading to actions like transferring funds or changing ownership, which were supposed to happen only once.

Example Scenario: The Withdraw Function Vulnerability

Consider a smart contract that allows users to withdraw funds. Here’s how a reentrancy attack could exploit a vulnerability in its withdraw function:

• The withdraw() function checks the user’s balance, sends funds, and then updates the balance.
• An attacker creates a malicious contract with a fallback function that is triggered when it receives funds.
• The attacker calls withdraw(), which transfers funds to the malicious contract.
• The fallback function of the malicious contract then calls withdraw() again before the first call has finished processing.
• This loop can continue until the victim contract’s funds are drained, as the balance update only occurs after the funds transfer.

Mitigating Reentrancy Attacks

Preventing reentrancy attacks involves careful programming practices and security measures. Here are some strategies:

• Checks-Effects-Interactions Pattern: This pattern suggests changing the state (checks), then altering the contract’s data (effects), and finally interacting with other contracts. This order helps prevent reentrancy by ensuring all state changes complete before any external calls are made.
• Use of Reentrancy Guards: Implement modifiers that prevent re-entrance into certain functions. These guards can ensure that functions cannot be re-entered while they’re still processing.
• Solidity Security Tools and Audits: Utilize tools like OpenZeppelin’s contracts, which offer secure implementations of common contract modules and features. Regular security audits and code reviews are also crucial to identify and fix vulnerabilities.

Conclusion

Reentrancy attacks pose a significant security challenge in the blockchain ecosystem, particularly affecting decentralized applications and financial protocols. By understanding how these attacks occur and implementing robust security measures, developers can enhance the integrity and resilience of smart contracts. This proactive approach is essential to safeguard user assets and maintain trust in blockchain technologies.

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Cryptocurrency Insurance: An Essential Safety Net for Digital Assets

Introduction to Cryptocurrency Insurance

Cryptocurrency insurance provides a crucial layer of security for individuals, companies, and institutional investors involved in the digital asset ecosystem.

With the unique risks associated with handling and storing cryptocurrencies—such as hacking, fraud, and operational errors—traditional insurance models often fall short.

Cryptocurrency insurance, also known as digital asset insurance, offers tailored solutions designed to protect stakeholders from these specific threats.

How Cryptocurrency Insurance Works

Cryptocurrency insurance operates through a process that involves risk assessment, policy customization, underwriting, and claims support:

1. Risk Assessment: Insurers evaluate the risk profile of the entity seeking insurance, considering factors like the value of digital assets held, security protocols in place, trading activities, and compliance with regulations.
2. Customization and Underwriting: Based on the risk assessment, insurers tailor insurance plans to meet the specific needs and risk tolerances of their clients. Underwriting involves setting terms and conditions for coverage and determining premium costs, which are influenced by the insured party’s security measures and the overall risk environment.
3. Claims Process: In the event of a loss or breach, the insured party files a claim with the insurer, providing necessary documentation and evidence of the incident. The insurer then verifies the claim and disburses funds according to the coverage terms, helping to mitigate the financial impact of the incident.

Types of Cryptocurrency Insurance Coverage

Cryptocurrency insurance encompasses several types of coverage, each designed to address different risks within the digital asset space:

• Theft Insurance: Protects against the loss of digital assets due to hacking, unauthorized access, and other malicious activities.
• Custody Insurance: Covers assets held in custody by third parties, such as exchanges or wallet services, against theft, operational errors, and bankruptcy.
• Cybersecurity Insurance: Offers financial protection against losses arising from cyberattacks, including reimbursing investigation costs and legal fees.
• Exchange and Wallet Insurance: Shields against financial losses due to operational disruptions, fraud, and hacking incidents at cryptocurrency exchanges and wallet providers.

Key Considerations for Choosing Cryptocurrency Insurance

Selecting the right cryptocurrency insurance policy requires careful consideration of several factors:

• Coverage Limits and Exclusions: Understand the maximum coverage limits and any exclusions that apply. It’s crucial to know what is not covered to assess the adequacy of a policy.
• Premium Costs: Evaluate whether the premiums are reasonable in relation to the coverage provided. This involves assessing the insurer’s risk calculation and how it impacts the cost of the policy.
• Security Requirements: Insurers often require adherence to certain security standards as part of the coverage criteria. Ensuring that these requirements are met is essential for maintaining coverage and protecting the assets.
• Claims Process: Familiarity with the claims process is important. Know the documentation required and the steps involved in filing a claim to ensure prompt and effective resolution.

Traditional vs. Cryptocurrency Insurance

Comparing traditional and cryptocurrency insurance highlights significant differences primarily due to the distinct nature of digital assets:

• Risk Profile: Cryptocurrency insurance deals with higher risks related to cybersecurity and regulatory challenges, which are less prevalent in traditional insurance.
• Market Dynamics: The volatility and evolving regulatory landscape of the cryptocurrency market present unique challenges that traditional insurance does not typically address.
• Specialization: Cryptocurrency insurance requires a deeper understanding of technology and digital asset management, whereas traditional insurance focuses more on physical assets and conventional risk factors.

Protecting Against Cryptocurrency Insurance Fraud

To safeguard against fraud in cryptocurrency insurance:

• Due Diligence: Thoroughly vet insurers for their credibility, financial stability, and track record in handling claims.
• Strong Security Protocols: Implement robust security measures like encryption, multi-factor authentication, and regular security audits to protect against breaches that could lead to insurance claims.
• Risk Management Protocols: Develop comprehensive risk management strategies that include regular reviews of security practices and compliance with regulatory standards.

Conclusion

Cryptocurrency insurance is an indispensable tool for managing the risks associated with digital assets. By providing financial protection against a range of potential threats, it helps secure the investments and operations of various stakeholders in the cryptocurrency space.

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Understanding Bitcoin Mining and Its Custody

What is Bitcoin Mining?

Bitcoin mining is the process by which transactions are verified and added to the public ledger, known as the blockchain, and also the means through which new Bitcoin are released.

Anyone with access to the internet and suitable hardware can participate in mining. The mining process involves compiling recent transactions into blocks and trying to solve a computationally difficult puzzle.

The participant who first solves the puzzle gets to place the next block on the blockchain and claim the rewards. The rewards, which incentivize mining, are both the transaction fees associated with the transactions compiled in the block as well as newly released Bitcoin.

The Process of Bitcoin Mining

Bitcoin mining requires a deep understanding of cryptographic principles and powerful computing hardware. Miners use their computational power to perform hashing functions on blocks of transactions.

The goal is to find a hash that meets the network’s difficulty target, a feat that statistically requires massive amounts of hashing attempts, and therefore electricity and time.

How Long Does It Take to Mine 1 Bitcoin?

The time it takes to mine 1 Bitcoin can vary significantly depending on several factors including the mining hardware used, the amount of competition (number of miners in the network), and the current difficulty of the blockchain’s hashing algorithm. The average time to mine a single Bitcoin is about 10 minutes per block, but this only applies to powerful mining setups as part of a larger pool.

Mining solo as an individual with a single setup is practically infeasible due to the sheer amount of power and resources needed to compete with large mining pools. Instead, individual miners often join a mining pool where they combine their hashing power with others, and share the rewards.

Mining Pools and Their Benefits

Mining pools are groups of cooperating miners who agree to share block rewards in proportion to their contributed mining hash power. This approach significantly decreases the statistical variance of receiving rewards, spreading the rewards more evenly. There are several types of mining pool payout structures:

• Proportional: Miners earn shares until the pool finds a block (which ends the round). After that, they earn a percentage of the Bitcoin earned depending on their shares.
• Pay Per Last N Shares (PPLNS): Similar to Proportional but only at the end of each round, not based on the round’s duration.
• Pay-per-Share (PPS): Offers an instant, guaranteed payout for each share that is solved by a miner.

Risks of Bitcoin Mining

Despite its potential rewards, Bitcoin mining carries significant risks, the most notable being its substantial electricity consumption, which can lead to high operational costs.

The initial investment in high-powered computer equipment can also be substantial. Additionally, the increasing difficulty rate of mining Bitcoin blocks, along with the planned reduction of block rewards over time, means that the profitability of Bitcoin mining is decreasing.

Bitcoin Custody Solutions

Given the value and digital nature of Bitcoin, securing it is paramount. Bitcoin custody solutions come in various forms:

• Custodial Solutions by Third Parties: Many choose to keep their Bitcoin on exchanges or with other services that offer to store and secure Bitcoin on their behalf. While convenient, this method relies heavily on the security measures of the third party.
• Self-Custody Solutions: Includes hardware wallets (like Ledger or Trezor) and paper wallets. These offer the highest level of security as they store Bitcoin offline, away from potential online threats.
• Multisig Wallets: Require multiple keys to authorize a single Bitcoin transaction, adding an additional layer of security by distributing the risk.

Legal and Regulatory Considerations

The regulatory landscape for Bitcoin mining varies by country and can impact mining profitability through taxes or outright bans. Understanding these regulations is crucial for anyone looking to invest significant resources into Bitcoin mining.

Conclusion

Bitcoin mining is a complex and resource-intensive process that plays a crucial role in the maintenance and development of the blockchain ledger. While it offers the potential for profit and helps secure the network, it also requires significant investments and carries notable risks.

As Bitcoin continues to mature, both the technology behind mining and the regulatory framework guiding it will evolve, potentially making it more accessible and sustainable in the future.

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Hong Kong Financial Regulators to Conduct On-Site Inspection to Crypto Firms

As Hong Kong seeks to become the burgeoning crypto hub in Asia, the regulators have stepped up to create a safe and secure environment for trading digital assets. On Monday, the Hong Kong Securities and Futures Commission (SFC) revealed plans to conduct on-site inspections of crypto asset service providers.

The inspection will assess whether the crypto firms comply with the new licensing requirement taking effect on June 1.

Hong Kong Adopt New Crypto Licensing Rules

After sending multiple reminders to the local crypto firms, the SFC expects all virtual assets service providers (VASPs) to complete the licensing requirements by June 1. 

The SFC stated that there will be no deadline extension for applying for the new license. After June 1, the SFC expects the local VASPs to be licensed or deemed licensed.

The financial regulators explained that VASPs grouped as deemed to be licensed would require a regulatory assessment to obtain their Hong Kong license. The deemed-to-be licensed category comprises crypto exchanges operating in Hong Kong before the new rules take effect. 

The SFC confirmed that from June 1, companies operating without obtaining the license will face legal charges. The financial regulator will consider unlicensed crypto firms to commit criminal offenses.

In the meantime, the SFC will conduct an on-site inspection to examine the compliance of the VASPs group under the deemed-to-be licensed category. The proposed inspection will evaluate whether the crypto firms were taking adequate security measures to safeguard customers’ funds.

Crypto Firms Withdraw Licensing Application in Hong Kong

Also, the SFC will examine whether the VASPs conform with the international know-you customers (KYC) measures. The financial regulators advised the residents of Hong Kong to only trade on authorized crypto exchanges. 

The financial regulator urged the VASPs awaiting for licensing approval not to onboard new users on their platform until they are licensed. The SFC’s new licensing regime aims to prevent individuals from mainland China from accessing Hong Kong-based crypto firms. 

China’s anti-crypto move compelled neighboring country Hong Kong to enact strict measures on cross-border transactions between the two countries. A review of the SFC website demonstrates that 18 applications were awaiting approval, while 11 application withdrew their application.  

The SFC report shows that only two crypto firms, OSL and Hash Blockchain Limited, have been legally allowed to operate in Hong Kong since June. The SFC noted that the day before the licensing deadline, fast-paced crypto firms, including IBTCEX, Huobi HK, and HTX, withdrew their application. 

Hong Kong New Crypto Rules

Earlier this week, the Gate.HK revealed plans to cease its operation in Hong Kong due to regulatory pressure. The Gate.HK withdrew its application on May 23  to address a significant overhaul of its trading platform. 

The Gate. The HK team confirmed that withdrawal and deposit will remain unavailable until the crypto exchange obtains a license to operate in Hong Kong. The Gate.HK confirmed new users should not be on board the platform or proceed with marketing activities. 

The Gate.HK will focus on reorganizing the platform, which will involve delisting tokens. The crypto exchange will resume operation in August this year. 

A statement from the TRM Labs policy adviser Angele Ang reveals that SFC on-site inspection will involve thorough regulatory scrutiny compared to the ordinary examination during the application stage.

The executive noted that the numerous applications that were withheld demonstrated SFC’s commitment to safeguard the crypto world.

Editorial credit: T. Schneider / Shutterstock.com

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Texas Authority Orders Arkbit Capital to Suspend Operation for Engaging in Fake Crypto Mining

In its advanced update, the Texas State Securities Board (TSSB) has issued cease and desist orders to Arkbit Capital for engaging in unlawful crypto mining. The regulators noted that Arkbit Capital’s cloud mining activities violated the law. 

The TSSB financial examiner, Alexis Cantrell, led the investigation to examine whether Arkbit Capital operations conformed with the law. Cantrell and his team noted that the Arkbit Capital team engaged in fraudulent activities.

Arkbit Capital Accused of Defrauding Customers

The probing team observed that the image and video used to promote Arkbit’s investment plan were misleading. The TSSB confessed that the video used in Arkbit advertising was aimed at duping the customer into their fraudulent schemes.

The video under investigation demonstrated that   Arkbit Capital’s top executive making a presentation at the crypto conference in Austin, Texas. The probing team noted that the video was fake and that no   Arkbit officials had attended the meeting.

Also, the market regulators observed that Arkbit Capital and its affiliate company ABC Holding LLC, ABC Mining, claimed to operate an Arkansas headquartered data center. The regulators stated that Arkbit Capital had deceived customers that it was running a cloud crypto mining facility.

Rise of Online Scams

In the report, the probing noted that Arkbit Capital assured their customers that their investment would increase by 1.6 to 2.8% for three months. The Arkbit team promised the customer that if they invested between $50 and $49,999, their returns would double.

Apart from fake promises, the TSSB noted that Arkbit Capital violated US regulations by using CoinPayments.Net as its payment option. Earlier, CoinPayment.Net prohibited US users from using the platform. 

To bypass the CoinPayment policy, the Arkbit team used an account registered by an Indian resident, Paras Khiversara to create an account on the payment processor. Arkbit fraud charges ignited heated debates among the crypto community.

Global Regulators Warns Community on Fake Crypto Investment

Elsewhere, the Director of Enforcement at TBBS, Joe Rotunda, requested the public to be careful when investing in investments promoted on social media. Mr. Rotunda urged the public to conduct due diligence checks before investing in any project.

The executive noted that companies are using deceptive approaches to hype their products to attract large following. For the past few months, customers have lost massive amounts of funds to ponzi schemes. 

In March, the US Securities and Exchange Commission (SEC) took legal action against CryptoFX for defrauding Latino investors. Correspondingly, the New York jury charges two influencers promoting the fake trading platform IcomTech.

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A Step-by-Step Guide on How to Purchase Solana

With the ongoing development in the crypto sector,  Solana has emerged as Ethereum’s top rival. Solana is a high-speed blockchain network capable of processing over 65,000 transactions per second.

The growing adoption of Solana has captivated investors’ interest in investing in its native token, SOL.

Compared to other blockchain networks, Solana has lower transaction costs, making it a suitable option for investors. This guide will explore the multiple methods to purchase SOL and their advantages and shortcomings.

What is Solana Network?

The Solana project was first developed by the renowned tech expert Anatoly Yakovenko in 2017. The project was launched when crypto was still a new concept after Yakovenko identified that Ethereum and Bitcoin had serious scalability concerns.

He noted that Ethereum and Bitcoin could not process 15 transactions per second (TPS). The scalability concerns forced Yakovenko to develop a unique Layer 1 protocol to house decentralized and scalable applications.

Having gained vast experience operating systems, Yakovenko was committed to creating a unique blockchain network named after the coastal province of San Diego Solana Beach. 

How Does Solana Operate?

After launching the Solana ecosystem, Yakovenko invested in distinguishing his project from another blockchain network by integrating the consensus mechanism, combining the proof of history (PoH) with proof of stake (PoS).

The integration of the consensus mechanism enables the nodes and devices storing transaction information on the blockchain to process the transaction seamlessly. The Solana reduced the transaction processing time through the consensus mechanism that does not require data sharing between nodes and devices.

With the ongoing development within the Solana ecosystem, the network can process 65,000 transactions per second. The fast processing speed has made Solana an attractive network for developers. The Blockchain Council has profiled Solana as the quickest and most efficient blockchain network in history.

Also, Solana is considered a cost-effective network, allowing users to pay network fees to process transactions. The developers building on the Solana project that the blockchain network will outpace centralized payment processors in future. 

Currently, Solana has supported numerous decentralized finance projects (DeFi), meme coins, non-fungible tokens (NFTs), decentralized applications (dAPPs) and smart contracts. The Solana network has gained prominence as a payment option to node operators.

To ensure the development of the Solana ecosystem, investors are allowed to stake their assets to reap profits.

Where to Purchase SOL?

The growing popularity of the Solana ecosystem has challenged the investor to invest in SOL tokens. You might be wondering where SOL tokens are bought. Lately, exchanges and platform have been offering Solana tokens.

A recent report shows that Solana is listed in over 200 crypto exchanges.  However, some exchanges are restricted from operating in certain countries. The investors are advised to select a crypto exchange that is legally allowed to operate in their home country.

Investors are encouraged to conduct due diligence checks to assess whether the crypto exchange conforms to the country’s legal and tax requirements. 

Also, the investors can use the decentralized crypto exchange to acquire SOL tokens. Unlike centralized platforms, decentralized crypto exchanges operate without central authority.  

How to Purchase SOL?

The investor is required to create an account on centralized exchanges such as Binance, Kraken or Coinbase. The account creation process involves opening an account with your preferred crypto exchange.

This process requires account creation and verification of password and username to complete the security requirements. After account creation, the investor should deposit funds in the exchange to purchase SOL.

On the other hand, investors preferring decentralized exchanges (DEX) to centralized exchanges will be required to have a digital wallet connected to the Solana network. Investors should deposit adequate crypto to purchase SOL tokens. 

The digital wallet should be connected to DEX to purchase SOL tokens. The DEX platform requires investors to carefully handle confidential information such as private keys and wallet security. Unlike the centralized exchange, DEX transactions do not involve third parties. 

How to Store SOL?

Investors are advised to ensure that the SOL tokens are secure. The centralized exchange offers the customer custodial services for the SOL purchased on the platform. Investors are urged to ensure that their centralized crypto exchange accounts are protected by alphanumeric and two-factor (2FA) passwords.

Similarly, investors who own DEX digital wallets are encouraged to remain the primary custodian of their private keys. The private keys should remain stored in cold wallets with no internet connection.

The investors seeking to hold their SOL tokens until the next bull market are advised to shift their assets to cold wallets. The cold wallet is less vulnerable to hacks than a hot wallet. Investor should not share their private keys with anyone at all times.

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A Comprehensive Guide to AI Tokens

Artificial intelligence (AI) evolution has been a transformational force in most industries. The adoption of emerging technologies in the crypto sector has inspired the development of AI-inspired tokens. In this guide, we will discuss AI tokens and how they operate and outline some of the best AI coins available in the market.

What Are AI Tokens?

An AI token refers to digital assets centered on blockchain technology but supported by artificial intelligence technology. These tokens leverage the power of AI to facilitate fast and reliable transactions. 

Lately, AI tokens have been considered a medium of exchange, just like ordinary crypto assets. The AI coin enables traders to access vital information and actively participate in developing AI activities.

With the ongoing development within the AI sector, the token enhances the governance protocol and utility. This implies that the AI tokens are critical in setting the rules and monitoring participant behavior in a particular ecosystem. 

Some tokens occasionally grant the holders the governance rights to participate in essential decision-making processes. Also, AI tokens encourage traders to provide their input and earn rewards and trading incentives. 

How Do AI Tokens Work?

Like ordinary tokens, the AI coins operate on existing blockchain networks such as Ethereum, Polygon, and others. The AI tokens are secure, decentralized, and transparent, exhibiting some of the features of blockchain technologies. 

These tokens are classified as protocol, governance, and utility tokens. The protocol token enables the user to access the features and services offered by a specific protocol. Also, the governance token confers voting rights to the holders in the ecosystem.

With the emergence of AI tokens, many people have wondered how these tokens operate. At the initial development stage, the AI tokens are created on blockchain networks such as Ethereum ERC-20 or BNB Smart Chain. The tokens are positioned in self-executing smart contracts to support the token executing its intended purpose. 

The tokens are then distributed through token sales to potential buyers.  The project issuing AI tokens ensures the coins are available on market and promotes its use case. 

To support the ecosystem’s growth, the project allows the users to stake their assets to boost the development of the AI projects. These tokens are user-friendly since all processes are fully automated.

Significance of AI Tokens

AI tokens have become a revolutionary force in the crypto sector, enabling investors to maximize their profits. The AI crypto allows the user to collaborate and participate in the project to tap the numerous benefits the token offers.

Democratization of AI

The myriad benefits of AI allow the user to access a decentralized marketplace offering a wide range of AI products and services at an affordable price. The AI coin bring innovation to the crypto world by automating critical processes of buying and selling digital assets.

Also, AI tokens have played a crucial role in onboarding new users to the vibrant artificial intelligence sector.

Transparency and Security

The AI token has proven to be a more powerful token that inherits blockchain and AI features. Similar to the ordinary token every transaction completed using the  AI token is recorded on the blockchain public ledger to enhance transparency and accountability. 

Promotes Innovation

The AI tokens have gained popularity in supporting AI-related projects to raise capital through Initial Coin Offerings (ICOs). This token has encouraged investors to actively support AI fundraising projects that targeting new developments or improvements of an existing product.

Encourages Collaboration and Participation

The decentralized nature of the AI tokens and the reward system has played a vital role in encouraging collaboration and participation in the AI industry. As investors seek financial independence, AI token offers an incredible opportunity to stake and earn rewards.

Developed within the AI principles, the token encourages the community to share their insights and expertise to promote the ecosystem’s growth. Interestingly, you can contribute to AI projects and earn rewards as a developer and data provider.

The AI sector has encouraged collaboration by granting users critical governance rights in decision-making.

Top AI Tokens

With AI’s evolving nature, most crypto firms are silently moving toward artificial intelligence to remain ahead of the curve. The following are top AI tokens with advanced trading tools you should consider. 

Injective (INJ) 

The Injective Chain is behind the largest AI token by market cap INJ. The Injective team leverages its expertise to integrate decentralized finance (DeFi) with artificial intelligence technologies to optimize trading strategies. 

The Injective offers a complete suite of AI tools capable of analyzing market trends and predicting the possible outcome.

The Graph (GRT)

The Graph is an analyzing platform capable of organizing numerous datasets for AI training. The Graph offers the second-largest AI token by market capitalization GRT. The GRT coin mirrors a governance token allowing users to contribute towards the protocol’s success. 

Render (RNDR)

Render is a decentralized network for rendering high-quality 3D graphics and simulations for training AI models. The Render network is supported by an RNDR token, allowing users to stake their assets to access the GPUs and other computing materials. 

The Render platform allows graphics creators to earn rewards through the Render Farm. In this platform the developers are allowed to lease their projects to earn RNDR tokens.

Bottom Line

The convergence of AI and blockchain technologies through AI tokens has posed a transformative force in the digital world. The AI tokens exhibit massive potential to unlock new opportunities in the crypto sector. 

The AI token has enhanced collaboration and participation to bring prosperity to the tech industry. The rewarding system and governance protocol have encouraged the user to participate in the development of AI tokens actively.

Despite the numerous benefits of AI tokens, investors are advised to conduct extensive research on suitable tokens due to the volatile crypto market.

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Ethereum Founder Vitalik Buterin Labels Tornado Cash Developer Sentencing ‘Really Unfortunate’

In a fireside chat with the cofounder of Ethereum, Vitalik Buterin, ignored the hype on the approval of Ether exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC). Buterin avoided commenting on the long-awaited approval of the ETH ETFs.

However, Buterin expressed concerns about the court ruling concerning the developer of Tornado Cash. Earlier this week, the Dutch court ordered Tornado Cash developer Alexey Pertsev to face a five-year and four-month imprisonment.

Vitalik Buterin Reacts to Sentencing of Tornado Cash Developer

The bench of judges argued that Pertsev’s contribution to building the coin mixer allowed criminals to launder multi-million dollars through Tornado cash. Buterin described the court verdict on Tornado Cash developers as “really unfortunate.”

 The crypto investor encouraged developers building on blockchain to develop privacy tools that offer next-gen solutions. At the DappCon event in Berlin, Buterin regretted that most developers were building their software based on assumptions. 

He noted that the software developers failed to consider user privacy when developing their software. From the Tornado Cash developer’s case, Buterin noted that fighting for software’s privacy was legal and legitimate. 

He noted that the assumptions made while developing the Tornado Cash should have been considered at the court. However, guided by the existing rule, the court found Pertsev guilty of money laundering. 

The judges argued that criminals used Pertsev software to launder illicit funds. Buterin lamented that Pertsev’s sentencing would affect other Tornado Cash developers awaiting trials. 

Buterin argued that ither Tornado Cash developer such as Roman Storm might receive a similar judgment since his facing money laundering charges. Unlike the crypto exchange, the coin mixer was created to obscure the source and destination of the money.

Ethereum Cofounder Advises Developers to Strengthen Software Privacy Tools

Despite prioritizing the privacy of individuals, the coin mixer has become a powerful tool for laundering illicit funds. The court noted that the North Korean hacker, the Lazarus Group, used the coin mixer to transfer large amounts of dirty money.

Following the growing adoption of Tornado Cash among criminals, the Office of Foreign Assets Control (OFAC) imposed restrictions on using coin mixers in the US. The OFAC noted that Tornado Cash supported the laundering of $7 billion.  

The ban on Tornado Cash operation forced the OFAC to file charges against the Tornado Cash developers and founders for their contribution to money laundering. Citing the court ruling of Tornado Cash developer Buterin anticipates the court to show leniency on Roman trial.

He expressed concerns about Pertsev’s sentencing which was “really sad” situation. The Ethereum cofounder advised the developers to consider privacy standards when developing their software. 

Significance of Balancing Software Privacy with Regulatory Compliance 

Buterin restated that it is important to consider the privacy of the user. He anticipates that the Railgun and oxbow will become the next-gen solutions to provide necessary privacy.

Earlier, Buterin teamed up with Tornado Cash executive Ameen Soleimani, a security expert from Chainalysis Jacob Illum, and a scholar at the University of Basel to introduce privacy tools into blockchain transactions. 

Buterin and his team formulated a synthesized research paper on importance of building privacy blockchain protocols that support user anonymity and compliance. The team intends to build the privacy blockchain protocol on Tornado Cash’s privacy pool created by Soleimani in March 2023 to uphold compliance with the regulations. 

Buterin stated that the research will focus on balancing privacy pool protocols and compliance with the existing regulations.

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Crypto Exchanges Create ‘Tech Against Scams’ Alliance for Combating Pig Butchering Scam

The rise of crypto-related crimes has compelled vital market players to explore ways to address the issue. On May 22, leading crypto exchanges, tech firms, and advocacy teamed up to combat crypto crime. 

Coinbase, Kraken, Gemini, Meta, Ripple Labs, Match, and the Global Anti-Scam Organization (GASO) attended the meeting to deliberate on ways to mitigate online scams. The group agreed to form an alliance dubbed “Tech Against Scams” that will address unlawful activities in the financial sector. 

Rise of Pig Butchering Scam

The “Tech Against Scams” alliance will provide education programs and run numerous safety initiatives to address crypto crime. The proposed education program will focus on online scams, fraudulent schemes, and ransomware attacks. 

The training will educate the public on effective strategies to avoid falling into the scammer’s trap. The Coinbase team noted that the evolving financial landscape has exposed the public to multiple risks. 

The report shows that $1.4 trillion is lost to financial scams yearly. This forced the alliance to take proactive measures to address the financial crime. The Coinbase team calls for a collaborative approach to address online scams. 

The new alliance members must share valuable insights and expertise to create a safe and secure digital world. Each member must develop security measures to prevent scams and fraudulent schemes.

Role of ‘Tech Against Scams’ Coalition in Mitigating Pig Butchering Scam

The report illustrated that the Coinbase team would lead the “Tech Against Scams” alliance. The alliance will first tackle the pig butchering scam, which has become one of the famous investment frauds. 

Coinbase believes that the partnership with key players in different industries will enhance the visibility of the alliance in mitigating crime. Also, the alliance will help develop best practices for addressing crypto crime.

A pig butchering scam is a unique approach criminals use to lure their potential victims to their fraudulent schemes by establishing romantic relationships. Criminals engaging in pig butchering scams invested their resources to build a strong rapport with the customers before stealing their hard-earned money. 

The criminals launching pig butchering scams commonly use social media platforms and online dating applications to lure the victims to their scams. The scammers promise their potential victims to generate high profits from their fraudulent schemes.  

In March, the US authorities confiscated assets worth $2.3 million from pig butchering scammers. The regulators plan to return the $2.3 million to the pig butchering victims.

The Coinbase team confessed that such scams have been in existence even before the inception of crypto assets and digital technology. 

Law Enforcers Teams Up to Address Crypto Scams

Reviewing the Crypto Crime Report by Chainalysis, around $5.9 billion was lost in crypto scams in 2022. The Chainalysis report demonstrated that with the changes in the financial sectors, scammers are advancing their skills to steal customers’ funds. 

A recent recent report from security experts shows that scammers are leveraging the power of artificial intelligence (AI) to conduct untraceable crimes. The prevalent use of AI in criminal activities aims at concealing the scam to the law enforcers.  

According “Global Financial Fraud Assessment report ” by Interpol, the regulators noted that the growing adoption of emerging technologies has enabled notorious illicit groups to engage in illegal activities. 

The ‘Tech Against Scams’ alliance comes when the global law enforcers are taking legal action against pig butchering scammers. According to Reuters, the US Department of Justice arrested two Chinese nationals, Yicheng Zhang and Daren Li, for running one of the largest pig butchering scams. 

The two suspects are charged with money laundering and defrauding customers of over $73 million. The prosecutors noted that Zhang and Li transferred the multimillion dollars through shell companies to conceal their unlawful activities. 

Also, some of the stolen funds were converted to Tether stablecoin USDT. The DOJ argued that if the two suspects are found guilty of money laundering, they will receive a 20-year imprisonment.

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SEC Penalizes ICE for Failing to Report Cybersecurity Attack

In its advanced report, the US Securities and Exchange Commission (SEC) penalized Intercontinental Exchange (ICE) for failing to report a cyber attack incident. The ICE received a $10 million fine for breaching the law. The SEC claimed that ICE was hit by a malicious attack in late 2021 but dealt with the matter internally. 

The ICE representative stated that the cyber attack involved failed attempts to access the company network. 

ICE Receives $10 Million Fine for Non-Compliance

He admitted that the attack had minimal impact on the ICE market operations and it was unnecessary to report the matter according to Regulation SCI. After analyzing the severity of the attack, the SEC found that bad actors launched a malicious attack on ICE’s virtual private network (VPN).

 The attacker aimed to get unauthorized access to the ICE corporate network to gain control of the system. An investigation conducted by chaired by SEC officials Melisa Hodgman and Carolyn Welshhans noted that ICE failed to conform with the SCI requirements of Regulation ICE.

The SEC observed that shortly after the criminals launched the malicious attack, the ICE technical team addressed the matter. To stop the attack from spreading, the ICE team took the shortest time to address the vulnerability. 

The regulators noted that ICE failed to inform the legal and compliance department of the malicious attack. Also, ICE subsidiaries, including the New York Stock Exchange, were not informed of the incident. 

SEC Demands Businesses to Report Cybersecurity Breach

Citing the ICE Regulation Systems Compliance and Integrity (SCI) requirements, the agency must inform the local authorities of any cybersecurity incident that threatens the company’s operation. The Regulation SCI emphasizes the importance of companies reporting potential cybersecurity threats.

The agency was also required to provide an update concerning the malicious attacks within 24 hours unless the exploit had minimal damages. The SEC noted that neither did ICE report the malicious attack to the local authority nor did it inform its subsidiaries.

A statement from SEC Director of Enforcement Gurbil Grewal argued that reporting any cybersecurity attack to the relevant authority is important. He urged the key market players to take the shortest time to report the cybercrime to protect the company’s interest.  

The official claimed that ICE breached the SCI requirement of Regulation, which is punishable by law. Grewal restated that the agency would be required to settle a $10 million penalty for failing to report the malicious attack on time. The rise of cyber-related crimes obliged the SEC to amend the Securities Act 1934. 

SEC Strengthens Enforcement Action on Public Companies

Under the new rules, companies must disclose cyber security risks to the authorities within four business days. Failure to report the cybersecurity risk subjects public companies to hefty fines. 

The ICE multi-million fine sparked speculation from the crypto community. A report by two officials from ICE described the SEC fine as an overreaction to a single de minimis attack. 

Reflecting on Regulation SCI, public companies under the act are entitled to follow the notification requirement before contacting the SEC about any cybersecurity risk. The ICE blamed the SEC for inappropriate use of its enforcement action. 

The ICE officials lamented that rather than supporting companies in addressing tech failures and vulnerabilities, the SEC focused on imposing hefty penalties. The companies stated that the SEC enforcement action was not the best approach to restoring market integrity.

In retaliation to the SEC’s new directives, the ICE affiliate companies, including the NYSE, and ICE Futures in the US and Europe, agreed with the commission cease and desist orders and the settlement of the monetary penalty with no objection. 

ICE ranks among key market players in the stock market. A review of the ICE website shows that the agency runs one of the world’s largest exchanges and clearing services networks. 

The ICE subsidiaries include Archipelago Trading Services Inc., NYSE Chicago Inc., ICE Clear Europe Ltd, NYSE American LLC, and CE Clear Credit LLC.

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Gala Games Losses $240 Million Worth of Tokens in an Exploit

In its May 20 report, the Gala Games suffered a multimillion exploit. The Gala Games lamented that a lousy actor minted 5 billion of its native token Gala valued around $240 million. The exploit interfered with the Gala’s market performance, impacting huge losses. 

According to CoinGecko, the GALA token dropped by 20% to reach the $0.038 support level within the last 24 hours. After the sudden drop, GALA established a significant recovery, reaching $0.041.

Hackers Drain $240 Million GALA Tokens

The incident grabbed the attention of a renowned blockchain analytic firm to probe the matter. The Gala team noted that after draining the 5 billion GALA tokens, the attackers managed to sell 600 million coins valued at $29 million through Uniswap.

On X, a pseudonymous security analyst, oxQuit, revealed that the Gala Games admin account minted 5 billion of GALA and has been actively selling stolen assets for the past 2 hours.

In a subsequent tweet, the chief executive of Gala, Eric  “Benefactor” Schiermeyer,  updated the community concerning the exploit and the damage caused by the multimillion attack.  The Gala Games CEO has been a critical contributor to the gaming sector. Apart from leading the Gala Games, Schiermeyer is the co-founder of the renowned mobile game Zynga.

The executive confirmed that the Gala technical team managed to identify the system vulnerability and took the shortest to address the matter. The Gala team blocked the unauthorized access to the GALA smart contract.

Gala Game Suffers an Exploit

The recently completed system maintenance ensured that the ETH contract for GALA was safe and secure. Schiermeyer confirmed that the Gala team integrates a multi-sig wallet to prevent criminals from compromising the contract. 

He admitted that the criminals compromised the Gala Game platform despite the security measures. Upon contacting Gala Games to enquire more about the ongoing investigation, the company claimed to freeze the crypto account under investigation.

Over $4.4 billion worth of crypto assets have yet to be sold, and the Gala Games seek to recover these funds. The proposed recovery plans involved freezing all the accounts used by the criminals. 

Gala Games Identifies the Perpetrator 

The Gala team stated that the changes in the market forced the Gala team to increase the supply of GALA tokens by $50 million. The executive blamed the Gala for failing to embrace adequate internal control measures. 

He never expected the exploit to occur but assured the Gala team that the mistake would never occur again. The  CEO confessed that the Gala team had discovered the suspect and would liaise with the Federal Bureau of Investigation (FBI) and Department of Justice (DOJ) to bring down the perpetrator.

Commenting on this, some X users described Gala as being exploited as an isolated incident. The exploit came months after the Gala Games’ top executives engaged in misunderstanding. 

In August 2023, Schiermeyer filed a lawsuit against Gala co-founder Wright Thurston for stealing $130 million worth of Gala tokens. Thurston claimed that Schiermeyer misused the company assets in retaliation to this allegation.

He blamed Schiermeyer for failing to consult the Gala community when making critical business decisions. In March, the US Securities and Exchange Commission (SEC) filed a lawsuit against Thurston and his other companies for selling unregistered securities.

The SEC claimed that Thurston sold unregistered securities similar to the GREEN crypto assets. 

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CME Launching Spot Bitcoin Trading: Report

In an official communication, the Chicago Mercantile Exchange (CME) revealed plans to launch spot Bitcoin trading on its futures exchange. The CME’s latest development demonstrates its commitment to joining other Wall Street makers to gain exposure to crypto assets. 

A source privy to the information confirmed that the CME has been holding intense discussions with traders seeking to invest in crypto assets. 

CME Futures Exchange  Plans to Introduce Spot Bitcoin Trading

According to the Financial Times, three individuals familiar with the situation confirmed that CME intends to offer crypto assets in a regulated market. Even though the CME crypto bid has not materialised, the Chicago Group plans to explore new opportunities in the crypto industry.

Following the approval of Bitcoin exchange-traded funds (ETFs), institutional and retail clients have shown a growing interest in these products. Therefore, the CME expected that the launch of Bitcoin spot trading on its future exchange would allow traders to generate returns from basis trades.

The basis trade approach has become a common trading strategy professional traders use to reap considerable returns. The process involves borrowing money to acquire underlying assets and selling futures to generate profits by exploiting the difference between the two assets.

The CME projects launching spot Bitcoin trading on its futures exchange will allow the derivative marketplace to offer Wall Street players easy access to crypto assets. 

Following the resurfacing of the Bitcoin bulls, vital financial institutions showed interest in crypto assets. If the CME spot Bitcoin trading plans actualize, the Chicago Group will join the authorized 11 spot Bitcoin ETFs in the United States. 

The announcement came when diverse investor have adopted cryptos as a tradeable asset. The growing adoption of Bitcoin ETFs has challenged renowned hedge funds, including Bracebridge Capital and Wisconsin Investment Board, to invest millions in acquired-the-spot crypto ETFs.

Growing Demand for Spot Bitcoin ETFs

In an interview with the DL News, the chief investment officer at Zerocap, Jonathan de Wet, described the CME spot Bitcoin ETF offer as a monumental step for the company. 

The executive stated that spot margining on Chicago Group offers traditional finance (TradFi) a world of opportunity. He projected that CME’s new offering would offer investors great access to spot Bitcoin products that would promote the adoption of crypto assets.

In support of de Wet’s remarks, the chief investment officer at Merkle Tree Capital, Ryan McMillin, argued that hedge funds and other asset managers would prefer to acquire spot Bitcoin ETFs from CME rather than crypto exchanges such as Coinbase. 

With the growing interest in crypto among institutional clients, CME has outpaced the world’s largest crypto exchange, including Binance, in the Bitcoin futures market. The Chicago Group ranks among the world’s largest futures exchanges, while global crypto exchanges dominate the spot crypto market.

CME Seeks to Gain Dominance in Spot Bitcoin Trading

The CME report demonstrates that hedge funds and professional traders are the top users of futures exchange. He admitted that most investment and wealth management companies have established stronger relationships with CME than Coinbase and other crypto exchanges.

The executive anticipates the CME will become a one-stop shop for investors to engage in spot margin trades. The CME’s plans to launch a spot trading market came at a time when its top rival, the CBOE global market, revealed plans to abandon spot market trading due to a lack of a comprehensive regulatory framework for digital assets in the United States. 

The CBOE  Digital Spot Market claimed it has been losing money due to a lack of regulatory clarity in the US. To remain profitable, the CBOE plans to redirect funds to promising ventures and suspend the operation of its  Digital Spot Market by Q3 of 2024.

The spot Bitcoin ETFs rank among the most successful crypto projects, with over $12.15 billion in inflows since the beginning of this year. The Bitcoin ETFs have contributed significantly to the mainstream adoption of digital assets and propelled most crypto assets to gain bullish momentum.

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President Biden Restricts MineOne Operations Cites National Security Concerns

On Monday, May 13, US President Joe Biden issued a desist order to a Chinese-based crypto miner MineOne Cloud Computing Investment company operating near Wyoming’s nuclear missile base. The president claimed that the operation of MineOne posed a threat to US national security. 

The crypto miner expanded to the US in June 2022 and established its presence near Francis E. Warren Air Force Base (F.E. Warren AFB). The F.E. Warren AFB ranks among the top three missile bases in the United States, protecting the country from external attacks.

MineOne Operations Suspended in US 

Serving as a strategic missile base for the US president, Biden ordered MineOne Investment to wind down operations in the region. A review of the company website demonstrated that MineOne offered specialized and advanced tools for surveillance and conducting espionage activities. 

Based on the operation of MineOne, President Biden was convinced that the Chinese-based firm threatened the US national security. He claimed to have gathered credible evidence on the operation of MineOne that contravened the US law. 

In his order, President Biden instructed MineOne to sunset their operations in the next 120 days. The embattled crypto miner was ordered to remove some of MineOne’s mining machinery and developments. 

Upon contacting the MineOne team, the officials did not comment. The plenary power of President Biden in strengthening the US national security mandates the government to ensure that foreign investments safeguard the rights of the citizens. 

In April, President Biden signed a bill to divestiture the operation of the Chinese-based social media platform TikTok. Under the new bill, the TikTok team was instructed to sell off the platform within 12 months. 

Biden Administration Explore Ways to Strengthen National Security 

In response to the new directives, the TikTok team vowed to challenge the new bill since it does not intend to sell the video app.  Earlier this week, the White House unveiled new tariffs on Chinese products. 

According to Reuter, the Biden administration plans to impose new tariffs on Chinese products such as semiconductors, solar equipment, medical supplies, personal protective tools, electric vehicles (EVs) and others. 

While amending Section 31 of tariffs, policymakers targeted industries that exposed local industries to fierce competition. A source privy to the information argued that the Chinese EVs threatened the American personal data.

With the new measure, the Chinese authority is expected to react to President Biden’s directives. The decision to ban the operation of Chinese-based crypto miners was suggested by the Committee on Foreign Investment in the United States (CFIUS) after probing the operation of MineOne.

The committee chaired the investigation to examine whether the operations of MineOne created any national security concerns. The recently completed investigation aligns with the 2018 law that grants the CFIUS legal authority to assess any corporate deal related to critical US facilities such as Francis E Warren Air Force Base.

The law allows the CFIUS  to identify any activity that poses a national security risk. The White House has instructed the CFIUS to conduct extensive investigations into TikTok’s operations. 

US Cracking Down Chinese Companies

In the ongoing operations, the CFIUS confessed that the MineOne team had failed to file the acquisition deal with the relevant authority. The CFIUS admitted that the operations of MineOne remained unknown to the government until the public reported the matter. 

A report from the US Secretary of the Treasury, Janet Yellen, revealed that the regulatory action against MineOne demonstrated the CFIUS commitment to regulate foreign investments. 

The executive outlined the roles of CFIUS in strengthening national security and restricting the operation of foreign investments that pose a threat. The regulatory action in the US  against the Chinese-based companies mirrors a similar move embraced by developing countries.  

In a recent report, the Chinese government enacted legislation restricting the sharing of top government secrets. The restrictive measures in China aim to reduce the risks that threaten national security. 

In an attempt to restore national security and build strong economic relations, the government of China enforced prohibitive measures on the operation of US-based tech companies, including Micron. The Chinese authority claimed that Micron’s network security review threatened national security.

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Jack Dorsey Sees Bitcoin Price to Hit $1 Million in 2030

Following the resurgence of the crypto bulls, key industry players have issued predictions about the price movement of Bitcoin. Even though some of the predictions turn out to be the opposite, the co-founder of Twitter, Jack Dorsey, remains optimistic that Bitcoin price will sustain an upward trajectory.

In an interview with the Pirate Wires, Dorsey forecasted that Bitcoin (BTC) would reach $1 million in the next decade. The interview focused on the future of the world’s largest crypto asset, Bitcoin, by daily trading volume. 

Jack Dorsey Predict Bitcoin Price to Increase

Commenting on the future of Bitcoin, Dorsey projects that by 2030, Bitcoin will reach the $1 million mark. The executive believes Bitcoin will attain the $1 million resistance level in the coming years. 

Dorsey’s predictions mirror Cathies Woods’ bullish outlook on the price of BTC. On March 8, the founder of Ark Invest forecasted that Bitcoin would reach $1.5 million by 2030. 

The executive projected that the US Securities and Exchange Commission’s (SEC) approval of spot Bitcoin exchange-traded funds will propel the crypto bulls.

Reflecting on the recent development in the crypto sector, Dorsey described Bitcoin as “a fascinating ecosystem and movement.” He acknowledged the exemplary work by the critical industry players to improve the Bitcoin ecosystem. 

Dorsey has also been a critical contributor to the Bitcoin sector by developing products that stimulate the growth of BTC. At the moment, Dorsey has launched unique Bitcoin wallets, ASIC mining chips, and other blockchain-oriented payment platforms such as Block. 

Benefits of the Crypto Bull Market

In April, Dorsey-led retail payment platform Square revealed plans to convert a certain percentage of the daily sales to Bitcoin. Apart from contributing to the development of the crypto industry, Dorsey has been actively engaged in leading giant social media platforms such as Twitter.

However, in the last few days, Dorsey announced plans to step down from Bluesky and focus more on developing Nostr. He lamented that Bluesky was still repeating the mistakes made by Twitter by operating more as a company with VCs and a board rather than striving to become more decentralized. 

The executive argued that Nostr operated that as an open protocol that addressed Twitter’s failures. Dorsey confessed that a protocol does not require the board of management to run Nostr successfully. 

He deleted his Bluesky account and vowed to improve the Nostr ecosystem. Commenting on this, the chief executive of Bluesky, Jay Graber, confessed that Dorsey failed to understand the company’s operation. 

The executive added that Bluesky had invested heavily in becoming a decentralized protocol. Graber stated that Bluesky focuses more on becoming a marketplace of algorithms. 

The executive explained that Bluesky had created a protocol that allowed Twitter to operate efficiently without changes. It implies that the Bluesky team placed decentralization under the hood.

Significance of Open Protocols

On X, the Bluesky lead developer Paul Frazee argued that the company needs an actual product and product thinking approach to stimulate growth. The executive noted that Dorsey’s pure protocol approach contradicted Bluesky’s approach. 

Initially, before Elon Musk acquired Twitter, the Bluesky team had created an AT protocol for his social media platform. The executive lamented that Bluesky AT Protocol failed to materialize after Musk acquired Twitter. 

The failure of the Bluesky AT Protocol ignited tides of criticism from the tech community. Dorsey advised the Bluesky team to invest in making the social media platform more open. He urged the Bluesky to make their platform open protocol like Nostr.

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Blockchain Education Programs Gain Traction Amid Crypto Bull Market

Following the resurgence of the crypto bulls, key market players have demonstrated their commitment to advancing their trading skills. In a May 7 update, the participants at  Women in Tech Global Summit 2024 (WITG) revealed plans for a significant development on its Web3 top-level domain (TLD). 

The proposed development will involve the integration of Unstoppable Domain on the TLD to enable the user to access educational materials and other training resources. 

Organizers for Women in Tech Global Summit Launching Blockchain Educational Program

The development will leverage the power of artificial intelligence (AI) and blockchain technology to give users a unique digital identity domain. During the meeting, the team behind the new development confirmed that theTLD upgrade will allow the users to build a “strong sense of community” to give women in tech a new recognition. 

The development will allow women in tech to build strong networks and explore viable opportunities. The collaborative approach on the WITG platform will offer the user mentorship and training sessions necessary to advance their career.

The WITG allows the user to leverage the powerful technology to learn tech. The primary objective of the education program is to offer women a platform where they can access the tools and resources necessary to navigate the digital sector.

The development came at a time when the demand for professionals in blockchain and crypto technologies has increased. In a recent survey by KuCoin, the young adults demonstrated an interest in pursuing courses in the blockchain and Web3 sectors.

The survey targeted young adults seeking to advance their careers. KuCoin noted that 88% of the 1900 respondents were interested in pursuing a career in blockchain technology, while 75% showed some interest in the Web3 sector. 

The survey report indicated that 15% of the respondents had over three years of experience in blockchain technology. The survey assessed whether Gen Z and Millenials were interested in blockchain and crypto technology.

Crypto Exchanges Investing in Education Programs to Build Sustainable Digital Economy

Months before the survey, the KuCoin team launched an education program to equip the learners with relevant skills in digital finance. KuCoin joins a slew of crypto exchanges seeking to prepare employees for future opportunities.

Earlier this week, the Bitget team commemorated its first anniversary of the Blockchain4Youth program. Entrenched to the Bitget principles, the Blockchain4Youth program supports the mainstream adoption of crypto and Web3 technologies among young adults.

At the event, the Bitget team was pleased to state that over 51 universities enrolled on the Blockchain4Youth program. The crypto exchange confirmed that over 2000 certificates would be issued to the participants who completed the Blockchain4Youth program. 

The Bitget team plans to offer more scholarship programs to individuals from less developed countries. The Blockchain4Youth initiative is expected to run till May 2028 to onboard more users to the blockchain and Web3 sectors.

Based on the transformative potential of crypto technology, the Bitget team anticipates offering more online courses and integrating successful stories on crypto projects to motivate young people to pursue careers in this field.

Significance of the Blockchain Education Program

The Bitget team believes that the millennials and GenZ have enormous potential to redefine the future of the crypto sector. The efforts to raise a crypto-savvy generation have challenged key market players, including the former Binance boss Changpeng “CZ” Zhao, to step in and offer an exclusive education program. 

Following his departure from the controversial crypto exchange Binance, Zhao revealed plans to invest in launching a not-for-profit education program, Giggle Academy. The new education program will target individuals from the vulnerable community to equip them with basic education.

The Giggle Academy will focus on equipping the learners with knowledge outside the traditional curricula. The program will utilize blockchain-oriented platforms to offer free formal schooling programs. 

On his X account,  Zhao hyped the new education program will represent Binance’s heritage. The executive told the X community that the Giggle Academy would symbolise growth, fun, and positive energy.  

Zhao’s belief in the revolutionary power of crypto and blockchain technology compelled him to launch an education program to build a sustainable and inclusive digital economy.

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Home-Based Bitcoin Mining in 2024: A Comprehensive Starter Guide

Mining Bitcoin at home has become an increasingly complex endeavor, particularly as the Bitcoin network’s difficulty level has escalated and specialized equipment has become essential. Here’s a detailed guide on how to get started with home-based Bitcoin mining in 2024, considering best practices and the current state of the industry.

1. Understanding Bitcoin Mining

Bitcoin mining involves validating transactions and adding them to the blockchain ledger. It is also the process through which new bitcoins are released into circulation. This is achieved through solving complex mathematical problems which in turn secures the network from fraudulent activities.

2. Is Bitcoin Mining Profitable?

The profitability of Bitcoin mining depends heavily on several factors such as electricity costs, the efficiency of the mining hardware, and the current market price of Bitcoin. To estimate profitability, miners must consider the initial setup costs (including hardware expenses) and ongoing electricity charges.

3. Equipment Needed for Home Mining

a. ASIC Miners

These are specialized devices designed specifically for mining cryptocurrencies. ASIC (Application-Specific Integrated Circuit) miners offer high processing power and energy efficiency compared to general-purpose hardware like CPUs or GPUs.

b. Power Supply

A robust power supply is crucial to handle the intensive power demands of ASIC miners.

c. Cooling Systems

Effective cooling systems are necessary to prevent overheating, which can reduce the lifespan of your mining equipment.

d. Bitcoin Mining Software

Choose reliable mining software that is compatible with your hardware and offers a user-friendly interface. Examples include CGMiner and BFGMiner.

4. Setting Up Your Mining Rig

a. Location

Choose a location with good ventilation and cooling. Basements or separate sheds are often ideal due to their cooler conditions and isolation from living areas (due to noise).

b. Internet Connection

A stable and fast internet connection is crucial since mining rigs need to stay constantly online.

c. Electricity Setup

Ensure your electrical wiring can handle the load. Consider hiring a professional electrician to set up a dedicated circuit for your mining operations.

5. Mining Pools

Given the high competition in Bitcoin mining, joining a mining pool is a more viable option for home miners. Mining pools allow miners to combine their computational resources to increase their chances of solving the mathematical puzzles and earning block rewards, which are shared among pool members.

6. Mining Software and Configuration

Install and configure your mining software to connect to your chosen mining pool. Input your wallet address to ensure that your mining rewards are correctly deposited.

7. Monitoring and Maintenance

Regularly monitor your mining setup to check for any issues such as overheating, hardware failures, or connectivity problems. Maintenance is key to ensuring your mining rig operates efficiently and profitably.

8. Legal and Environmental Considerations

a. Regulatory Compliance

Check local regulations to ensure that home-based Bitcoin mining is legal in your area. Some jurisdictions may have restrictions or specific requirements for mining operations.

b. Environmental Impact

Be aware of the environmental impact of Bitcoin mining. Consider using renewable energy sources to power your mining operations to reduce its carbon footprint.

9. Cost-Benefit Analysis

Periodically perform a cost-benefit analysis to determine if your mining operation is still profitable. This includes tracking electricity costs, hardware efficiency, and Bitcoin market conditions.

10. Stay Updated

The cryptocurrency landscape is constantly evolving. Stay informed about technological advancements, market trends, and regulatory changes that could impact Bitcoin mining.

Conclusion

While mining Bitcoin at home is not as accessible as it once was, it can still be feasible with the right equipment, setup, and access to cheap electricity. It requires a significant upfront investment and ongoing costs, but for those committed to the cryptocurrency space, it provides an opportunity to contribute to the Bitcoin network and potentially earn rewards in return. Always remember that Bitcoin mining, like any investment, carries risks and should be approached with careful planning and consideration.

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