The Freedom Tool enables Russian citizens to prove their citizenship and vote anonymously.

Rarimo’s Freedom Tool

Traditional voting faces challenges like logistical issues and security threats. Rarimo’s solution aims to overcome these obstacles using zero-knowledge proof technology.

“While voting makes the perilous consequences of the trade-off between privacy and digital identification particularly visible, it is in fact an endemic online issue. Rarimo’s mission is to reverse invasive online practices and embed privacy into the digital identity layer,” the company explains.

Indeed, zero-knowledge proofs have several practical applications, including private blockchain transactions, secure identity verification, tamper-proof voting systems, and ensuring supply chain integrity. They enable confidential transactions and protect sensitive data.

Read more: What are Zero-Knowledge Proofs? Securing Growth for Web3 Apps

Vitalik Buterin optimistically sees this tool as a significant step towards solving the challenges Russian citizens are facing today. Yet, he highlights the challenge of balancing verification and anonymity online.

“If you have a Russian passport then you can digitally prove your identity using zero-knowledge proof technology without revealing which one you are. So you can participate in an online vote and the results of the online vote are visible and they’re guaranteed to be tamper proof. It is an anonymous voting system,” Buterin said.

This technology can offer strong privacy while maintaining trustworthiness. According to Buterin, it solves the issue of verification against anonymity, creating an “infosphere that is at least guarded against you.”

“Either you’re verified, but then if you’re verified, people know who you are, and they can go after you. Or you’re anonymous, but if you’re anonymous, then no one has any need to trust you. This current batch of zero-knowledge proof technology manages to solve both of those problems,” Buterin added.

Therefore, zero-knowledge proofs can transform modern democratic systems by addressing current challenges and criticisms. While the tool is currently in beta, successful implementation could lead to growing influence and use cases worldwide.

The post Vitalik Buterin Talks About Rarimo’s Zero-Knowledge Proof Voting Tool appeared first on BeInCrypto.

“It’s the Liquidity, Mate”

The bull market never appears in just one market. While crypto investors enjoy the bull market cycle, the Nasdaq and the S&P 500 are continuously hitting new highs; precious metals such as gold and silver are also not to be outdone, and their performance has reached the best level in nearly five years.

In the interest rate market, traders optimistically estimate that the Fed will start cutting interest rates in Sept, and 4-5 rate cuts in the next 15 months will allow global investors to enjoy a feast no less than the bull market cycle in 2021.

SOFR fixing rate, which directly reflects inter-bank financing costs. Source: CME Group

However, unlike the previous bull market, which was caused by zero interest rates and excessive liquidity, this bull market was born against the backdrop of high interest rates. We are experiencing the highest interest rate period since the beginning of the 21st century; only the internet bubble cycle from 1995 to 2001 can be compared. Interestingly, these two bull market cycles also have many similarities.

Changes in the effective rate of Fed funds, as of Jun 2024. Source: FRED

The US banking crisis of 2023 was impressive. However, similar events occurred in the 1980s and 1990s, and the scale is no less than that of 2023. If inflation is considered, the impact of that year’s bank failures may be even more significant.  

The number of US Bank failures since 1934. Source: PEW Research Center

The large number of bank failures seriously hit investors’ confidence in the banking system and savings deposits. Although Greenspan and Powell chose to make high interest rates long-term, more investors still gave up deposits and risk-free returns instead of investing their funds in risky asset markets. This led to a significant slowdown in the growth rate of deposit size in the 1990s, and a similar situation occurred again 30 years later.

Changes in the scale of deposits in commercial banks, as of Jun 2024. Source: FRED

However, even if investors choose to enter the risky asset market, they remain cautious: they usually prefer to invest in stocks and other assets with sufficient potential, large market capitalization, and attractiveness. In 2000, the “Internet revolution” was about to peak; in 2024, AI was emerging. Both generations of investors chose to buy into the future; in 2000, the baby boomer generation held MSFT, CSCO, and INTC. Now, their children are holding NVDA, BTC, and ETH.

Top 20 S&P 500 companies by market cap in 2000. Source: Finhacker

Hey! Don’t forget that we are still in a high-interest-rate environment. Despite the liquidity from multiple sources, such as deposits and salaries supporting the prices of risky assets, investors still cannot laugh off the losses of investment failures as they did during the liquidity flood. 

The above has led to an interesting phenomenon. Although investors are willing to hold risky assets and invest in new narratives, they still hope to seek targets with sufficient risk resistance in the risky asset market to some extent. There is no better choice than large-cap stocks: they have enough liquidity, enough derivatives for hedging risks, and a large enough investor base.

As a result, the Matthew effect emerged: investors flocked to buy large-cap stocks as “safe havens,” further pushing up their market cap and attracting more investors with similar ideas. Eventually, the market concentration rose higher. In 2000, the total market cap of the Top 10 stocks accounted for 27% of the total market cap of the S&P 500 index, reaching a new high in decades. This proportion has reached 33.5% today, even higher than before.

Changes in the concentration level of S&P500, as of Jun 2024. Source: Goldman Sachs

For the crypto market, we are also going through a similar process. Magnificent 7 dominates the US stock market, while Magnificent 3 (BTC, ETH, and USDT), supported by numerous ETF providers and sought after by investors, occupies over 77% of the crypto market cap. MegaCap cryptos have also achieved more robust returns than altcoins. For HODLers, holding BTC and ETH is a perfect business. Investors can earn an average annual return of over 50% in the past five years by simply buying and holding. In contrast, the returns from altcoins are somewhat insignificant.

Comparison between the performance of MegaCap cryptos and Ex-MegaCap cryptos, as of Jun 2024. Source: SP Global

Obviously, the current macro environment is favourable for Magnificent 3 cryptos to gain more market cap. Since the beginning of 2024, the market share of altcoins has dropped from 22% to around 16%. The high interest rate environment will continue for months, so it isn’t easy to see better performance of altcoins in the short term.

Changes in cryptos’ market shares in the recent 12 months. Source: Coinmarketcap

Competition Between Giants: ETH’s Turn?

Of course, investors’ investment in Magnificent 3 is not fixed. As the spot ETH ETFs’ official listing date approaches, traders have gradually adjusted their investment portfolios. The relative strength of BTC has lasted for several months, but investors are changing their views: they seem to believe that the performance of ETH will strengthen for some time with the listing of the spot ETH ETFs.

The skewness data of options intuitively reflects the change in investors’ expectations. For most of the year, BTC’s skewness data has been more bullish than ETH’s. However, in recent weeks, this situation has reversed. Investors’ expectations for BTC’s short-term performance are biased towards “neutral” and “slightly bearish,” while ETH’s short-term performance is relatively more bullish.

Investors still maintain an apparent, bullish attitude towards the medium and long-term performance of BTC and ETH. However, their bullish attitude towards ETH has exceeded that towards BTC. One possible reason is that assets with relatively low market cap and relatively high volatility have a better potential for returns during the interest rate cut cycle. In addition, the “asset allocation period” after the approval of the spot ETH ETFs will positively impact ETH’s price, as BTC experienced in February and March.

Changes in BTC 25delta skew in the recent 14 days. Source: Amberdata Derivatives

Changes in ETH 25delta skew in the recent 14 days. Source: Amberdata Derivatives

The pricing of the “asset allocation period” can also be traced. The latest forward exchange rate term structure of ETH/BTC implies that investors believe that ETH will perform better than BTC in the next few months and push the exchange rate higher in the short term. The Risk Premium difference between ETH and BTC has also converged to within 25bps, and investors are looking forward to the potential new wealth effect brought by ETH after the listing of spot ETH ETFs.

ETH/BTC Forward Exchange Term Structure. Source: Deribit Metrics

BTC-ETH risk premium difference. Source: Deribit Metrics

From the perspective of volatility, investors also expect that ETH may experience relatively higher fluctuations in the coming months (17.6%/30 days, 33.5%/90 days). Ideally, it is not difficult for ETH to break through $4.1k; considering that ETH currently has more negative gamma than BTC, the hedging behaviour of market makers will become a significant force driving up prices.

ATM boxplots of ETH. Source: Amberdata Derivatives

The latest USD normalized gamma of ETH. Source: Amberdata Derivatives

The latest USD normalized gamma of BTC. Source: Amberdata Derivatives

In the spot market, ETH whales have also stopped reducing their holdings of ETH. Interestingly, whales have reduced their holdings of BTC in recent months; this may be due to miners regularly selling BTC for cash, but obviously, we cannot rule out the possibility of portfolio adjustments.

The number of addresses with BTC balances higher than 100, as of Jun 21, 2024. Source: Glassnode

The number of addresses with ETH balances higher than 1,000, as of Jun 21, 2024. Source: Glassnode

Overall, increasing some ETH-long exposure in the near future is a more appropriate choice. Besides, long-term holding is not a problem for BTC, but “wait and see” may be one of the few options for altcoins.

The post BloFin Whale’s View: Magnificent 3 appeared first on BeInCrypto.

This innovation aims to redefine the creation and functionality of Web3 technologies. Compared to traditional infrastructures, it offers a more efficient and cost-effective model.

How Modular DePin Infrastructure Solves the Pain Point of Startups

The surge in DePin startups highlights a growing interest in this technology. However, many face obstacles like limited funding and technical challenges, delaying their progress. To combat these issues, Modular DePin Infrastructure proposes a flexible, community-driven framework.

In a social media post, IoTeX outlined three major benefits of this modular infrastructure – it is cost-effective, allows the community to capture more value, and enhances collaboration. These ready-made modules resolve technical difficulties and also enable quicker and less expensive product launches. By decentralizing each module, the community retains greater value, strengthening the overall DePin ecosystem.

“That’s it! Modular DePin infra isn’t just efficient — it’s a catalyst for community empowerment and collaborative success,” Render Network said, supporting IoTeX’s views.

Read more: What Is DePIN (Decentralized Physical Infrastructure Networks)?

This infrastructure allows for the assembly of customized applications through various modules. These include hardware abstraction, connectivity, sequencer, data availability, long-term storage, off-chain computing, blockchain, identity, and governance. Developers can select and combine these modules based on their project’s specific needs, providing unparalleled adaptability.

One of the core advantages of this system is its community ownership. Different teams develop and maintain each module, fostering a collective ownership model. This setup creates a marketplace where developers can choose optimal modules for their applications, encouraging a module-specific economy.

In an interview with BeInCrypto, Domenic Carosa, the co-founder of Hivello, discussed how modular DePin infrastructure focuses on community-driven development.

“Unlike traditional centralized models, this decentralized approach ensures that value and decision-making power are more evenly distributed. Community members have a direct stake in the network’s success, encouraging continuous innovation and fostering a more collaborative and sustainable ecosystem. This participatory environment allows community members to contribute to and benefit from the network’s growth, driving innovation and long-term sustainability,” Carosa told BeInCrypto.

Moreover, the modular system’s flexibility supports the development of a wide range of DePin applications. These include sensor networks that monetize physical data, connectivity networks that utilize various wireless technologies for bandwidth monetization, and computing networks that offer decentralized computing resources.

Applications of the Modular DePin Infrastructure

Significant DePin projects such as DIMO, Hivemapper (HONEY), and WeatherXM in sensor networks, as well as Helium, Nodle (NODL), and Wicrypt (WNT) in connectivity networks, exemplify the successful application of this modular infrastructure. Additionally, computing resources are efficiently monetized through platforms like Render Network (RNDR) and Akash Network (AKT), showcasing the broad utility of the modular approach.

The connectivity module, in particular, explores wireless communication techniques to enhance connections within Web3 networks. Technologies such as Bluetooth, LoRaWAN, WiFi, and 5G have been incorporated into various projects, expanding the capabilities of these networks.

Furthermore, NetMind CEO Kai Zou also discussed his favorite applications of the modular DePin infrastructure with BeInCrypto.

“Of particular interest to me is its proposed use of token-incentivized, community-built PRN and DRN goods and services, as this direction fully aligns with my belief in a movement away from centralized web systems that benefit select corporations to more equitable distribution models that benefit all,” Zou told BeInCrypto.

Read more: Render Token (RNDR): A Guide to What It Is and How It Works

Furthermore, the sequencer and data availability modules have been adapted from existing solutions to better suit DePin applications. Long-term storage solutions like Filecoin (FIL) and Arweave (AR) play a crucial role in meeting these applications’ storage needs. While blockchain platforms such as Ethereum (ETH), IoTeX, and Solana (SOL) provide essential infrastructure for development.

The post IoTex Discusses 3 Huge Benefits of Modular DePin Infrastructure appeared first on BeInCrypto.

Powered by the Render Network, this feature has captured the attention of crypto enthusiasts and developers.

Render (RNDR) Shines Among AI Crypto Projects

Render Network’s decentralized GPU power enables Octane X on the iPad to offer Hollywood-grade computer-generated imagery (CGI) capabilities. This integration marks a significant milestone for Render, showcasing its technology on one of the most popular consumer electronics platforms.

Millions of Apple users now have the ability to tap into unprecedented rendering power, enhancing digital content creation.

“Octane X was featured in Apple’s Keynote! Apple users can augment the massive increase in rendering power on the M4 with access to near unlimited high performance decentralized GPU compute power on Render Network using Octane X,” Render Network stated.

This collaboration signals Apple’s endorsement of Render’s technology, potentially drawing a new wave of developers and creators to the network.

The integration is a strategic win for Render. It validates its vision and technology, indicating that a major player like Apple recognizes the value of decentralized rendering solutions. This could significantly expand Render’s user base and increase demand for its services, ultimately driving up the value of the RNDR token.

Read more: Render Token (RNDR): A Guide to What It Is and How It Works

Render Network offers a decentralized platform for GPU rendering, connecting artists with GPU owners who have unused capacity. This model creates a new revenue stream for GPU owners while providing artists with affordable, scalable rendering power.

It aims to support next-generation digital rights management, artificial intelligence, and virtual assets like non-fungible tokens.

“Render Network allows us to render 12K high resolution, high sample count, multiple passes in a very short amount of time that would otherwise take months to render on a single GPU,” Alex Pearce, Senior Creative Technologist at Light Sail VR, shared.

Read more: Top 9 Artificial Intelligence (AI) Cryptos in 2024

With the combination of Apple’s vast user base and Render Network’s advanced technology, RNDR’s future looks promising. Analysts like Mister Crypto are optimistic, predicting significant price growth, which could reach $100.

The post Apple’s New iPad Pro Puts Render (RNDR) in the AI Crypto Spotlight appeared first on BeInCrypto.

Speaking at the 30th Annual International Institute for Securities Market Growth and Development, Uyeda emphasized how technology has streamlined securities transactions, reducing costs and increasing efficiency.

SEC’s Mark Uyeda on Tokenization

In his remarks, Uyeda noted the evolution from physical securities certificates to digital transactions.

“Another way that we can learn from, and cooperate with, each other is through technology. Modern capital markets have the advantage of technology, which has significantly reduced costs and made the capital markets more efficient,” Uyeda stated.

He pointed out that countries in Europe, Asia, Africa, and Latin America have completely phased out physical certificates, leveraging technology for faster and more cost-effective settlements. The US has also benefited from these advancements, moving towards a T+1 settlement cycle for equity securities.

Uyeda identified tokenization as a key technological advancement with the potential to enhance market efficiency. Tokenization involves converting asset rights into digital tokens on a blockchain. This process promises greater security, transparency, and immutability in transactions. It could also reduce the need for intermediaries, further lowering transaction costs.

Read more: What is The Impact of Real World Asset (RWA) Tokenization?

However, Uyeda stressed the importance of regulators understanding the costs, benefits, and risks associated with tokenization. He referenced the UK Financial Conduct Authority’s (FCA) ongoing efforts to explore tokenization for FCA-authorized funds. The FCA’s detailed research and interim reports provide a valuable blueprint for other regulators considering similar steps.

The FCA’s approach underlines the necessity for thorough research and cautious implementation to protect investors while fostering innovation. Uyeda emphasized the importance of global regulatory cooperation in navigating the challenges posed by emerging technologies.

“As technology continues to evolve, regulators will face new and challenging issues. It is important that we continue our regulatory cooperation in order to advance our shared goal of protecting investors and facilitating capital formation,” he concluded.

By embracing technological advancements like tokenization, Uyeda suggests that capital markets can achieve greater efficiency and security, benefiting both investors and the broader financial ecosystem.

The post SEC Commissioner Mark Uyeda Praises Tokenization appeared first on BeInCrypto.

This development comes as federal regulations tighten around digital assets. These include mandates like IRS Form 1099-DA, which require detailed reporting on digital asset activities.

Ledgible Unveils Tax Reporting for RWA

Ledgible’s platform aims to help enterprises and institutions navigate complex regulatory requirements. In a statement, Kell Canty, the firm’s CEO, emphasized the platform’s readiness to ensure compliance.

“As federal regulations around digital assets, like IRS Form 1099-DA, mandate companies begin reporting out on their digital asset activities including tokenized real world assets, the Ledgible platform is uniquely positioned to ensure compliance,” Canty said.

Given the crypto industry’s trajectory towards tokenized real-world assets, the launch is timely.

Notably, Franklin Templeton, one of the world’s largest investment managers, recently launched the first US-registered fund to use a public blockchain to process transactions and record share ownership. The firm partnered with Ledgible, reflecting the necessity for tax reporting solutions.

“This is an exciting step in our continued journey to make the digital assets ecosystem more accessible to both traditional and blockchain-native investors. We are also building the framework for BENJI tokens to be interoperable with additional tokens in the not-too-distant future,” Roger Bayston, Head of Digital Assets at Franklin Templeton, said.

Read more: How To Invest in Real-World Crypto Assets (RWA)?

Franklin Templeton’s collaboration with Ledgible highlights the capability to integrate multiple blockchains and on-chain data, enabling tax obligation calculations and advanced financial reporting. It also showcases proficiency in cost-basis calculation, data normalization, and reconciliation with legacy systems, which are critical for producing Forms 1099 and 1042-S.

The post Ledgible Launches Tax Reporting for Tokenized Real-World Assets (RWA) appeared first on BeInCrypto.

However, as Tap to Cash gains traction, it could potentially overshadow the utility of cryptocurrencies for payments.

Does Apple Tap to Cash Endanger Crypto Payments?

Crypto has been steadily gaining global acceptance, with 6.8% of the world’s population having cryptocurrencies. Despite its growth, widespread adoption faces significant hurdles.

Key among them is the lack of regulation, which leaves crypto assets vulnerable to security risks and volatility. Unlike traditional financial institutions, which are regulated and protected, cryptocurrencies operate in a decentralized environment. This lack of oversight can deter merchants and consumers.

Although the regulatory environment for cryptocurrencies is improving, it remains inconsistent. Countries like South Korea, Japan, and Germany have established clear frameworks. However, many others, including the United States and India, have ambiguous guidelines. This inconsistency hampers the confidence needed for broader adoption.

Read more: Crypto Regulation: What Are the Benefits and Drawbacks?

Moreover, the user experience of crypto payments is often seen as cumbersome. The inconvenience of managing multiple wallets contrasts sharply with the simplicity of using debit cards or Apple’s Tap to Cash. Additionally, the scalability of blockchain networks lags behind that of mainstream payment processors, limiting their capacity to handle high transaction volumes efficiently.

Apple’s Tap to Cash leverages its existing ecosystem to offer a frictionless and secure payment method. This could appeal to users who prioritize convenience and security. With Apple Pay’s enhanced support for rewards and event tickets, the platform becomes even more attractive.

Read more: 7 Ways To Buy Bitcoin and Other Crypto With Apple Pay

Until crypto can match the ease and security of traditional payment methods, it may struggle to compete with innovations like Apple’s Tap to Cash.

The post Apple’s Tap to Cash Threatens the Future of Crypto Payments appeared first on BeInCrypto.

While AI has been a game-changer for many industries, its misuse in crypto is becoming a significant concern.

How AI is Transforming Crypto Crime: Elliptic’s Insights

Elliptic’s report identifies five core typologies of leveraging AI in crypto crimes. The first and perhaps most notorious is the use of AI-generated deepfakes. Often, scammers use fake images or videos featuring public figures to create convincing scams.

For example, fraudsters have used deepfakes of figures like Elon Musk and former Singaporean Prime Minister Lee Hsien Loong to promote fraudulent investment schemes. Scammers distribute these deepfakes on social media platforms like TikTok and X.com, duping unsuspecting investors. To combat these scams, Elliptic advises looking for specific red flags.

Read more: How Will Artificial Intelligence (AI) Transform Crypto?

“There are, fortunately, a number of red flag indicators that can help prevent you from falling victim to deepfake scams. To verify the video’s authenticity, you can check whether lip movements and voices synchronize, make sure shadows appear where you expect them to, and check that facial activity such as blinking looks natural,” Elliptic noted.

Another prevalent crime facilitated by AI is the creation of scam tokens. On many blockchains, it is relatively easy to create a new token, which scammers exploit to generate hype and artificially inflate prices before executing a “rug-pull” or a “pump-and-dump” scheme.

Tokens with names referencing AI, like “GPT,” have been particularly popular targets. Elliptic’s investigation revealed numerous exit scams involving such tokens, emphasizing the need for vigilance in token investments.

Cybercriminals have also co-opted large language models like ChatGPT to aid their illicit activities. These AI tools can generate new code or audit existing code, which can be misused to identify and exploit vulnerabilities.

Although companies like Microsoft and OpenAI have reported malicious use by state actors from Russia and North Korea, the technology has yet to reach a point where it can consistently facilitate successful cyberattacks. Nevertheless, the emergence of unethical AI tools like HackedGPT and WormGPT on dark web forums poses a significant threat, offering services for phishing, malware creation, and hacking.

The Intersection of AI and Crypto: Opportunities and Threats Unveiled

Another area where AI is impacting is the automation of scam deployment. Some scam operations involve creating fake investments, airdrops, or giveaway sites widely promoted through social media and messaging apps.

Once exposed, these sites are abandoned, and the process starts anew with fresh sites and marketing. AI is being used to streamline this cyclical process, making it more efficient and harder to trace.

Identity theft and the creation of false documents have long been staples of the dark web. Now, some services are incorporating AI to scale their operations. For instance, one document-rendering service advertised using AI to produce high-quality fake IDs and passports.

“Elliptic has identified a crypto address used for payments to this service, which has received enough payments to generate just under 5,000 fake documents in the space of a month,” the firm added.

In January, the Commodity Futures Trading Commission (CFTC) issued a consumer alert about AI-fueled scams. The agency warned about schemes promising massive returns through crypto arbitrage algorithms and other AI-assisted technologies.

The CFTC highlighted that scammers often make false promises of quick profits, exploiting the public’s fascination with AI. One notable scam resulted in the loss of 30,000 Bitcoin (BTC), valued at approximately $1.7 billion at the time.

Read more: AI in Finance: Top 8 Artificial Intelligence Use Cases for 2024

Indeed, the intersection of AI and crypto presents both immense opportunities and significant challenges. While AI can enhance security and efficiency in crypto, its potential for misuse highlights the need for a well-planned and knowledgeable response. By understanding these new trends, stakeholders can better protect the crypto ecosystem from the evolution of criminal tactics.

The post Top 5 New Trends in AI-Enabled Crypto Crime: Elliptic’s Report appeared first on BeInCrypto.

This initiative seeks to leverage current market conditions to offer users a comprehensive framework for staking, integrating advanced risk management tools and customized staking strategies.

New Crypto Staking Strategy

Salvage Warwick, spokesperson for CryptoHeap, outlined the rationale behind this new approach. He mentioned that the blueprint includes a combination of technological enhancements, educational initiatives, and community engagement efforts to support stakers.

“The cryptocurrency landscape is rapidly evolving, particularly during a bull run. Our strategic blueprint is crafted to guide our users to not only navigate this volatility but to thrive,” Warwick said.

At the heart of CryptoHeap’s new strategy is an analytical approach that utilizes real-time market data, predictive analytics, and user behavior metrics to adjust staking protocols dynamically. This method aims to optimize returns while managing risks associated with market fluctuations.

“Our platform’s enhanced capabilities will allow users to adjust their staking positions based on predictive insights and market conditions,” Warwick stated.

Read more: Top 7 High-Yield Liquid Staking Platforms To Watch in 2024

The adaptive staking strategy relies on educational components to help users understand market trends and make rational decisions. The strategic blueprint also aims to enhance user experience and engagement.

“We are ramping up our community forums, webinars, and support systems to ensure that our users feel supported every step of the way,” Warwick added.

In preparation for the increased activity and demand typical of a bull run, CryptoHeap has upgraded its infrastructure to ensure scalability, security, and uninterrupted service. These improvements are intended to maintain the platform’s reliability and performance, thus reinforcing user confidence and satisfaction.

The post CryptoHeap Reveals Crypto Staking Strategy to Maximize Yield appeared first on BeInCrypto.

In an exclusive interview with BeInCrypto, Jieyi Long, CTO at Theta Labs, explained how the Web3 firm aims to disrupt video delivery through decentralization, enhanced security, and novel incentives for content creators and viewers.

A Decentralized Video Streaming Network

According to Long, Theta Network, developed by Theta Labs, offers a fundamentally different approach to video streaming.

“Theta Network consists of three main components: the Theta protocol, which enables decentralized video delivery; the Theta blockchain, which records and validates transactions; and the Theta token, which incentivizes users to contribute their resources,” Long told BeInCrypto.

This decentralized model contrasts sharply with the centralized servers used by Netflix and YouTube. By leveraging a peer-to-peer network where users share their excess bandwidth and computing power, Theta reduces dependency on centralized servers.

Such a setup enhances network reliability and decreases buffering times, improving video quality.

“The decentralized nature of Theta’s platform ensures increased reliability and eliminates the dependence on a single server,” Long emphasized.

Security is a critical concern for any digital platform. Theta Network addresses this with a hybrid consensus mechanism combining proof-of-stake (PoS) and Byzantine Fault Tolerance (BFT). Validators stake their tokens to secure the network, which discourages malicious activities and ensures transaction validity.

“By utilizing end-to-end encryption and advanced cryptographic techniques, user privacy is protected, reducing the risk of unauthorized access or data breaches,” Long said.

This heightened security can appeal to users wary of data breaches and privacy issues plaguing other platforms.

The Unique Selling Point: THETA and TFUEL

Another distinguishing factor is Theta’s incentive structure. Users earn THETA tokens by sharing their excess bandwidth and computational resources, fostering active participation. This system contrasts with the ad-based revenue models of Netflix and YouTube. Indeed, they primarily rely on subscription fees and advertising revenue.

The ability for users to earn tokens just by participating could attract a significant user base seeking more value from their viewing experience. Likewise, users can earn Theta Fuel (TFUEL) simply by watching content, providing a tangible benefit for their engagement.

The model incentivizes viewership and fosters a more interactive and rewarding ecosystem for users. Unlike YouTube and TikTok, where algorithms largely determine revenue distribution, Theta allows for direct viewer-to-creator transactions. This system ensures that creators receive a larger portion of their earnings.

“Theta’s model enables users to reward content they genuinely appreciate. By embracing blockchain technology, Theta provides a solution that empowers content creators with more control over their monetization strategies,” Long pointed out.

Theta Network also addresses reliability concerns through its decentralized nature, eliminating single points of failure and enhancing the system’s overall resilience. The network employs off-chain micropayment channels to facilitate fast, inexpensive transactions, addressing scalability issues typical of blockchain systems.

The multi-level node architecture, including edge nodes and caching nodes, efficiently distributes processing loads, resulting in faster content delivery and reduced latency. This approach ensures a smoother and more reliable viewing experience, which could attract users dissatisfied with the occasional buffering and latency issues on traditional platforms.

“The design is aimed to achieve a good balance between transaction throughput, consistency, and level of decentralization. Validator and Guardian nodes stake THETA and participate in block production and transaction processing. In return, they earn TFUEL, which powers bandwidth/video relaying,” Binance Research wrote.

Read more: 9 Cryptocurrencies Offering the Highest Staking Yields (APY) in 2024

However, the road to overtaking Netflix and YouTube is not easy. Theta’s blockchain integration can introduce processing delays, a significant concern for real-time video experiences. Additionally, every node participating in the network needs sufficient bandwidth to handle data transfer without delays, which can be a hurdle in achieving widespread adoption.

While challenges remain, particularly in scalability and real-time processing, Theta’s user-centric incentives suggest it has the potential to disrupt the traditional video streaming industry. The question of whether it can beat Netflix and YouTube ultimately hinges on its ability to scale effectively and attract a critical mass of users and creators.

The post How Theta Network Challenges Streaming Giants Like Netflix and YouTube appeared first on BeInCrypto.

However, this issue was resolved in approximately 45 minutes. The Consolidated Tape Association, operating under an NYSE subsidiary, switched to a backup data center with a different software version to fix it.

How Decentralization Can Prevent Trading Halts?

Forced pauses began just before 09:45 in New York as CTA implemented a software update. This software controls the opening prices displayed on the Securities Information Processor. This feed consolidates bids and asks for quotes from various exchanges.

Around 09:50, traders exchanged about a dozen Berkshire Class A (BRK.A) shares for $185.10. The stock had closed on Friday at $627,400. Following the incident, the NYSE announced it would cancel any trade between 09:50 and 09:51 at or below $603,718.30.

Read more: What Is a Blockchain Oracle? An Introductory Guide

The disruption did not affect Nasdaq-listed shares and had little impact on the broader market. It occurred as trading infrastructure moved towards one-day settlements, down from two, known as T+1.

A glitch on Thursday left the S&P 500 Index without live pricing for over an hour. Two days earlier, another exchange had interface problems with the data feed.

While the issue is now resolved, Sergey Nazarov, co-founder of Chainlink (LINK), emphasized that traditional financial systems are susceptible to significant weaknesses because of their centralized structure. He outlined how Chainlink’s oracle network could offer a resolution.

“Decentralized oracle networks, which Chainlink invented, can mitigate these risks by providing accurate, tamper-proof data. These networks aggregate data from various sources and use consensus mechanisms to validate information, ensuring data integrity and preventing erroneous trades and price manipulations,” Nazarov said.

Oracle networks like Chainlink provide smart contracts with the real-world data required to function as financial instruments and business contracts. They decentralize the process of validating data. This method prevents a single point of failure that is common in centralized systems.

Adopting blockchain technology would allow real-time verification and automated responses to anomalies. This shift could significantly enhance modern financial markets’ reliability and transparency.

Nicolas Liochon, Head of Layer-2 protocol Linea at ConsenSys, highlighted the security advantages of blockchain technology. He explained that blockchain is designed for adversarial environments, anticipating potential malicious behavior from any component.

“Building for these environments makes the resulting software much more secure than what can be found in traditional exchange infrastructures. Blockchain is now fully embracing zero-knowledge cryptography for increased security; specifically, Layer-2 solutions such as Linea are using zero-knowledge proofs to prove the correctness of computations, making errors mathematically impossible,” Liochon explained to BeInCrypto.

Separately, Edward Snowden, an IT system expert and former contractor for the National Security Agency, humorously responded to this incident by writing, “Bitcoin fixes this.” Crypto enthusiasts frequently use this iconic one-liner to support the technology. While this statement is witty, Bitcoin, as a blockchain-based asset, is historically less prone to sudden trading halts like the NYSE experienced.

According to data, Bitcoin has maintained a 99.99% uptime throughout its history. The network has experienced only two downtime events, the last occurring over ten years ago.

Read more: The 7 Hottest Blockchain Stocks to Watch in 2024

Since then, Bitcoin has maintained continuous uptime. However, most Bitcoin trading happens on centralized exchanges, which are susceptible to outages.

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Tokenization, which represents these assets as digital tokens on a blockchain, unlocks a multitude of benefits, including increased liquidity for previously illiquid asset classes, enabling fractional ownership and democratizing investment, 24/7 trading across global markets, and enhanced transparency around ownership and transactions.

However, this novel capability to tokenize traditional asset classes and unlock their boundless potential requires stringent security, threat mitigation, and compliance measures. Deddy Lavid, CEO at AI Web3 security firm Cyvers, told BeInCrypto that failing to implement robust safeguards could expose investors to undue risks and liabilities and curb the impressive growth of this booming market.

Unique Risks Demanding New Solutions 

While the RWA tokenization empowers this asset class, it also introduces new attack vectors that conventional security approaches struggle to address adequately. According to Lavid, smart contract vulnerabilities, sophisticated DeFi exploits, digital wallet vulnerabilities, scams, and others represent clear dangers that bad actors are actively looking to exploit:

• Smart Contract Risks: The smart contracts that activate tokenized asset transactions can contain code flaws, which hackers can exploit to manipulate transactions or drain funds if they are not comprehensively audited. 
• DeFi Protocol Threats: Decentralized finance protocols that enable tokenized lending, borrowing, and trading face novel threats, including flash loan attacks that drain liquidity pools. 
• Digital Wallet Vulnerabilities: Asset ownership and transactions occur through digital wallets, which are vulnerable to evolving attack methods, such as phishing, malware, and theft of private keys. 
• Scams & Fraud Risks: Malicious actors may attempt to steal tokenized assets through phishing scams, address poisoning attacks where legitimate addresses are swapped with malicious ones, and other fraudulent schemes.

The inherent features of blockchain, such as pseudonymous transactions and immutability, have become a double-edged sword, hampering fraud investigations and illegal activities with tokenized assets.

Navigating the Compliance Labyrinth

Lavid added that businesses dealing in tokenized real-world assets must also navigate a complex web of regulatory compliance obligations.

• Securities Regulations: Tokenized assets may trigger certain securities rules and reporting requirements related to the issuance, trading, anti-money laundering provisions, and more. 
• Tax & Reporting Duties: Blockchain’s global, pseudonymous nature creates particular hurdles for tax reporting, withholding, and documentation demands. Reporting crypto taxation can be a very convoluted task due to problems such as spam transactions. 
• KYC & AML: Tokenization platforms must implement robust identity verification and anti-money laundering screening of all counterparties. The existing intelligence and screening solutions often offer obsolete data on wallets and smart contracts due to the latency in the process of “framing” malicious addresses in their databases. This often causes companies to interact with malicious actors, even though they were “cleared” by the prominent screening services.

Avoiding regulatory traps and proactively guaranteeing compliance from the start is crucial for avoiding devastating penalties, reputational damage, or disruptions later on.

New Security Paradigm

According to Lavid, there must be a comprehensive shift towards real-time security monitoring and automated preventative measures to protect this dramatic transformation. Just as blockchain offers significant innovation in a variety of segments, from banking to derivatives trading, its security paradigm must change to meet these new needs head-on:

1. 24/7 Proactive Monitoring: Continuous monitoring of network transactions and smart contract activity to detect anomalies, vulnerabilities, and active threats in real-time before damage occurs. 
2. Instantaneous Mitigation: Automatically implementing protective measures immediately when a threat is found, stopping the flow of funds at risk, alerting the right people, and blocking active attack paths. 
3. Attack Pattern Recognition: Advanced visual mapping technology to identify and categorize multi-phase, multi-signature attacks by their unique transactional patterns across the blockchain. 

Robust security for tokenized platforms mandates implementing holistic solutions that fuse regulatory compliance with proactive criminal risk monitoring. Integrating advanced blockchain intelligence provides comprehensive visibility, from onboarding diligence to continuous transaction screening. 

Read more: What Are Tokenized Real-World Assets (RWA)?

This unified approach surfaces not only regulatory risks but also proactively identifies addresses associated with hacks, scams, fraud, and money laundering based on transactional forensics. It enables mapping complex, multi-phase attack strategies from inception through laundering stages. 

This empowers a deeper understanding of how to disrupt threats in ways that retrospective analysis cannot preemptively. Converging compliance duties with leading-edge risk analytics is vital to safeguarding tokenization’s evolutionary potential.

Rising to the Challenge 

Realizing blockchain’s revolutionary vision necessitates security capabilities that are equally innovative and dynamic:

The crux lies: traditional reactive security models and fragmented compliance procedures are fundamentally ill-equipped to tackle tokenization’s uncharted complexities.

“Current security approaches based on post-mortem analysis simply cannot handle blockchain’s immutable and lightning-paced environment. Securing this transformative journey towards tokenized real-world assets demands an entirely new paradigm,” Lavid told BeInCrypto.

This new reality necessitates robust real-time security monitoring, preventative mitigation measures, and recognizing multi-vector attack patterns to disrupt coordinated strategies. 

Read more: ERC3643: The Token Standard For Real-World Assets (RWAs)

Continuous 24/7 monitoring of all blockchain transactions, smart contract activity, and networked ecosystems is critical to detecting anomalies or active threats in real-time before damage occurs. According to Lavid, complementing this is the capacity to instantly halt malicious fund flows, alert relevant parties, and implement defensive countermeasures upon identifying risks. 

“All stakeholders—investors, institutions, developers, regulators, and beyond—must collaborate to uplift security standards to meet this generational challenge head-on. Through industry-wide innovation elevating real-time security, we can both unleash and safeguard tokenization’s transformative potential,” Lavid added.

Securing the Frontier

To fully realize tokenization’s disruptive potential, defenses must be strengthened with cutting-edge preventative solutions that can proactively disrupt cyber attacks and mitigate regulatory and criminal risks, including fraud, scams, and money laundering. Next-generation systems must have multi-layered security and compliance controls adapted to tokenization’s specific complications to survive this evolutionary leap.

Read more: The Future of Finance: Tokenization of Real-World Assets

The blockchain ecosystem pioneers new finance. A pioneering confluence of proactive defensive paradigms—continuous monitoring, instantaneous mitigation, and preventative risk controls across cyber and compliance domains—is needed to protect this paradigm change.

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