In an exclusive interview with BeInCrypto, Ilya Volkov, CEO of crypto platform YouHodler, shared his insights on how MiCA will shape the future of crypto-financial services.

Impact on Crypto Growth, Innovation, and Consumer Trust

MiCA is the first explicit regulation for crypto assets in the EU, offering legal clarity for stakeholders. It categorizes digital assets, specifies applicable regulations, and designates accountability for enforcement.

This regulation addresses regulatory issues, ensuring a level playing field for crypto institutions in the EU and eliminating regulatory fragmentation among member states. Moreover, it protects investors, prevents fraud, and ensures compliance with anti-money laundering (AML) and financial laws. Volkov views MiCA as a groundbreaking step in creating a cohesive regulatory environment for crypto assets across the EU.

Read more: What Is Markets in Crypto-Assets (MiCA)?

“The major advantage is that MiCA is a meaningful step forward to fixing the long-existing disconnect between global operations and local regulations,” he opined.

He pointed out that financial markets, including crypto, operate globally but are subject to local regulation. This inconsistency has historically posed significant hurdles for international Web3 companies and individual customers alike.

“For companies like Youhodler, regulatory frameworks like this will significantly facilitate access to international markets. In MiCA’s case, it allows companies to reach all EU member states without submitting repetitive license applications in every country,” he added.

Furthermore, MiCA’s comprehensive requirements and guidelines to enhance consumer protection can foster a more transparent and trustworthy crypto market. Volkov believes that transparency is crucial for building consumer confidence. 

“Protected by MiCA, consumers can now tell whether their digital wealth is in the hands of a legitimate service provider. This peace of mind goes a long way for individuals and the mass adoption of crypto,” he stated.

The regulations also address environmental concerns associated with crypto operations. YouHodler has proactively aligned its operations with sustainable practices, with its research and development team working to update the company’s tech infrastructure to save energy and reduce environmental impact.

MiCA’s regulatory framework also offers unique opportunities for companies like YouHodler to stay ahead in the competitive crypto market. By expediting the licensing process, MiCA facilitates the expansion of YouHodler’s footprint across the EU.

Volkov acknowledged the hard work required to upgrade the platform for compliance but emphasized that the additional layers of regulation and protection will help the company stand out by filtering out unqualified players, such as non-compliant offshore companies targeting EU customers.

Balancing Advantages and Disadvantages of MiCA

Despite the clarity, adapting to MiCA’s requirements presents unique challenges. For instance, providing yield products on stablecoins has been a common practice for Crypto Asset Service Providers (CASPs) and exchanges for the past five years. However, companies serving EU customers will no longer be able to do this due to the initial phase of MiCA, which addresses stablecoins.

Recent reports also indicate that several crypto exchanges, including Binance, are delisting certain crypto assets to comply with MiCA regulations. Volkov highlighted the necessity for YouHodler and other Web3 platforms to migrate from non-compliant stablecoins to those meeting MiCA standards. Currently, he sees USDC as the most compliant dollar-backed stablecoin, but Volkov anticipates the emergence of more compliant options soon.

“Our team is working diligently to update our products and services to ensure full compliance and timely support for customers looking to convert their digital assets,” Volkov affirmed.

Additionally, the current version of MiCA has yet to cover decentralized finance (DeFi) adequately. However, Volkov is confident that future updates will address this innovative and active part of the crypto ecosystem.

Nonetheless, the global implications of MiCA cannot be overstated. Volkov believes that MiCA sets a precedent for international crypto regulation, serving as a model for other regions.

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

“Countries in Latin America and Asia will adopt similar approaches in the near future. Speaking of this, we’re also getting ready for the LATAM market. We have submitted our application in Argentina,” he told BeInCrypto.

As the industry prepares for potential market turbulence within the first year of MiCA’s implementation, Volkov remains optimistic about long-term sustainable growth. He believes that MiCA represents a significant step forward, instilling a sense of readiness and anticipation for the future of crypto.

The post The EU and Beyond: How MiCA Can Balance Innovation, Compliance, and Crypto’s Future appeared first on BeInCrypto.

Since then, the nation has experienced significant economic and social shifts, highlighting the impact and potential of this bold move.

The Rise and Fall of Bitcoin’s Value: Impact on El Salvador

El Salvador’s embrace of Bitcoin has been mixed with challenges and successes. The country now holds over $411 million in Bitcoin, with a more than 5,772 BTC portfolio.

Read more: Who Owns the Most Bitcoin in 2024?

President Nayib Bukele was recently sworn in for a second term, reinforcing his pro-Bitcoin stance. The country has continued to purchase Bitcoin, acquiring up to 30 BTC per month. As of May, El Salvador had more than $70 million in unrealized profits from its Bitcoin investments.

“Let’s not lose perspective. Here we are not just changing a country, we are changing a paradigm. We have already accomplished more than anyone could have imagined. Other people would like to have what we have now,” Bukele declared during his re-election.

Despite the crypto market’s volatility, El Salvador’s government remains unwavering in its support for Bitcoin. The government has preserved its Bitcoin holdings and consistently invests in them. Moreover, El Salvador continues to integrate the asset into various sectors of the economy.

For instance, Salvadorian citizens can use BTC to pay for goods and services, taxes, and even through the official Chivo Wallet. The government has also implemented policies and incentives to attract crypto investments, including citizenship and mining services passports.

El Salvador has also invested in Bitcoin mining using volcanic energy. The state plant on the Tecapa volcano operates around 300 processors, capitalizing on the country’s geothermal resources. This investment comes when Bitcoin’s mining difficulty has reached an all-time high, highlighting the nation’s innovative approach.

Recent developments have further strengthened El Salvador’s Bitcoin journey. First, the first Bitcoin spot exchange-traded funds (ETF) approval in January 2024 raised BTC’s price from $41,670 to over $70,000 in just a few months.

Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030

Additionally, the fourth Bitcoin halving on April 20 reduced mining rewards from 6.25 BTC to 3.125 BTC per block, potentially increasing BTC’s price and profitability. Experts predict Bitcoin could rise to $100,000 by the end of the year, with some estimates suggesting it could reach $150,000 by 2025. Such growth could significantly boost El Salvador’s BTC profits.

The post El Salvador’s Bitcoin Journey: Reflecting on Three Years of Change 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.

This crackdown reflects the necessity for Web3 startups to adapt their strategies to navigate the regulatory environment effectively.

Regulation Boosts Investors’ Confidence

The US regulatory environment for cryptocurrencies has become increasingly stringent. Regulatory bodies emphasize compliance with financial regulations, anti-money laundering (AML) standards, and customer protection mechanisms.

“The $4 billion settlement with Binance, along with the legal actions against its CEO, represents a significant moment for the global cryptocurrency market,” Maria Fiorentini, co-founder at Mujeres en Derecho, told BeInCrypto.

This heightened scrutiny necessitates that Web3 founders implement robust crypto compliance frameworks to align with regulatory expectations. Indeed, investor confidence plays a critical role in the success of Web3 startups.

Regulatory actions against major players like Binance, Coinbase, and Kraken have shaken investor confidence due to the highlighted risks and uncertainties within the cryptocurrency market. However, in the long term, stringent regulations could clean up the industry, thereby bolstering investor trust.

“The impact on investor confidence can be seen from two angles… These actions could either bolster investor confidence by cleaning up the industry or discourage them due to strict regulations,” Fiorentini noted.

Web3 founders should focus on transparency and compliance to reassure investors and attract long-term investments.

Therefore, to navigate the regulatory environment, Web3 startups must implement robust AML and Know Your Customer (KYC) programs. Effective KYC procedures involve verifying customer identities, conducting background checks, and ensuring compliance with international sanctions lists.

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

Enhanced due diligence is essential for high-risk customers, including those engaging in large transactions or operating from high-risk jurisdictions. According to Fiorentini, Web3 founders can mitigate risks by establishing these programs and demonstrating their commitment to regulatory compliance.

A Comprehensive Compliance Framework

Fiorentini believes that a comprehensive compliance framework is vital for Web3 startups. This includes establishing a dedicated regulatory compliance team responsible for understanding, implementing, and updating the company’s practices in line with current laws and regulations.

Regular internal and external audits of compliance programs can help identify vulnerabilities and ensure adherence to regulatory requirements.

Advanced monitoring and reporting systems are also crucial for detecting and preventing suspicious activities. Indeed, real-time transaction monitoring technologies can identify large transactions, rapid movements of assets, or patterns indicative of money laundering.

Procedures for promptly reporting suspicious activities to relevant authorities are also relevant. These include developing clear processes for identifying, reviewing, and filing Suspicious Activity Reports (SARs), which are essential for maintaining regulatory compliance.

For Web3 startups operating internationally, compliance with regulatory standards across all jurisdictions is imperative. This includes adhering to the Financial Action Task Force (FATF) recommendations and other international guidelines. By ensuring global compliance, Web3 founders can mitigate risks associated with cross-border operations and build a robust foundation for sustainable growth.

“There are more requirements depending on which country the exchange is operating. These are just general things that need to be done. I would advise having a strong legal team that truly understands how crypto works and that investigates in depth its regulation according to each country,” Fiorentini told BeInCrypto.

Read more: How Does Regulation Impact Crypto Marketing? A Complete Guide

Collaborative efforts with regulatory bodies can significantly enhance the compliance capabilities of Web3 startups. Global cooperation among regulatory and enforcement agencies is essential for combating cross-border crypto scams and tracking down perpetrators.

Encouraging the development of industry standards and best practices for transparency, security, and customer protection can also foster a more secure and reliable cryptocurrency market.

Emphasizing Education and Awareness

Education and awareness campaigns are crucial for protecting investors and maintaining market integrity. These campaigns should inform investors about the risks of cryptocurrency investments, how to spot scams and the importance of due diligence.

Establishing easy-to-use reporting mechanisms for suspected frauds and scams can ensure swift action and protect investor interests.

“Educational campaigns and reporting mechanisms are essential… Investors need to understand the risks and how to navigate them,” Fiorentini emphasized.

The regulatory environment for cryptocurrencies is evolving, with a trend toward greater clarity, stricter compliance, enhanced consumer protection, and international coordination. Although challenging for some market participants, these regulatory adjustments are crucial for the long-term sustainability and legitimacy of the cryptocurrency industry.

“While the details and pace of these changes will vary across jurisdictions, the overall direction indicates a maturing market that is increasingly integrated into the global financial system,” Fiorentini concluded.

In conclusion, Web3 founders must adopt comprehensive strategies to effectively navigate the US crypto crackdown. By implementing robust compliance frameworks, building investor confidence, and ensuring international compliance, Web3 startups can thrive and contribute to the maturation of the global cryptocurrency market.

The post What Web3 Entrepreneurs Must Do Amid US Crypto Scrutiny appeared first on BeInCrypto.

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.

The post Real World Assets Need Real-Time Security: Cyvers CEO appeared first on BeInCrypto.

Nicola Massella, a Web3 Lawyer at Storm Partners, shared invaluable insights with BeInCrypto on how crypto companies can avoid compliance pitfalls.

Understanding AML Compliance

Anti-Money Laundering (AML) standards are critical for the cryptocurrency industry. Massella emphasized that adhering to these standards is not optional.

“AML concerns have been at the forefront for regulators since Bitcoin’s early days. Therefore, ahering to AML standards is paramount,” Massella noted.

The European Union, for instance, initially regulated “virtual currencies” primarily to mitigate AML risks. Today’s crypto industry boasts advanced tools for wallet screening and transaction analysis.

Blockchain’s immutability and transparency offer an opportunity to surpass traditional financial systems in preventing AML threats. Crypto platforms must fully embrace these technologies to elevate their compliance standards.

While some argue that AML compliance contradicts crypto’s decentralization and autonomy principles, Massella countered this view. Preventing illicit activities is essential for the mainstream acceptance of cryptocurrencies. He highlighted zero-knowledge proofs as a promising innovation that balances AML prevention with privacy and decentralization.

Crafting Effective Contracts

Crafting contracts in the crypto industry presents unique challenges due to the innovative nature of transactions like token sales and DeFi liquidity provision. These contracts often involve parties from different countries and are executed online, adding complexity.

One critical aspect is the enforceability of remedies in case of a breach. Engaging with entities lacking substantial assets can render court decisions ineffective. Traditional courts may also struggle with crypto-related disputes due to a lack of established precedents.

Massella advised against using generic contract templates or reusing contracts from acquaintances. Crypto-related agreements require a lawyer with in-depth field knowledge to tailor contracts to each deal’s unique characteristics.

“My foremost advice to crypto entrepreneurs is to steer clear of generic contract templates or reusing contracts from acquaintances as a cost-saving measure,” Massella told BeInCrypto.

Read more: How Does Regulation Impact Crypto Marketing? A Complete Guide

Moreover, he emphasized that dispute resolution strategies in the crypto industry are similar to other commercial contexts. The initial step involves evaluating the client’s position and potential for settlement. This is followed by negotiations with the other party’s legal representatives to reach a mutually agreeable resolution.

For consumer-related disputes, additional factors come into play. Reputation holds significant weight in the crypto industry. Platforms may not be legally obligated to compensate users for losses due to hacking or system malfunctions, but doing so can enhance customer trust and brand integrity.

Maintaining a professional demeanor and separating emotions from business decisions is crucial. For crypto entrepreneurs, focusing on constructive engagement and growth rather than conflicts is key.

Structuring a Crypto Company

When structuring a crypto company, especially with an eye toward mergers and acquisitions, several factors must be considered. The regulatory environment tailored to each crypto project’s specific activities is vital. Compliance with relevant regulations is essential, as the legal framework governing Web3 varies significantly across jurisdictions.

Corporate structures in the crypto industry are often complex, involving multiple entities across various jurisdictions. This complexity is a response to the diverse legal and regulatory environments worldwide. Entrepreneurs must navigate this to ensure compliance with each jurisdiction’s laws and regulations.

Understanding the regulatory environment’s impact on the deal’s feasibility and structure is crucial in mergers and acquisitions. Legal due diligence, company valuation, operational integration, and future growth prospects all hinge on regulatory compliance.

Additionally, the crypto industry often involves foundations and associations in its corporate structures. These entities can be beneficial in connection with token-based organizations, safeguarding the rights and interests of token holders.

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

In summary, avoiding compliance pitfalls in the crypto industry requires a deep understanding of AML standards, effective contract crafting, robust dispute resolution strategies, and a comprehensive approach to company structuring. With these expert tips, crypto companies can navigate the regulatory environment more effectively and position themselves for long-term success.

The post How Crypto Companies Can Avoid Compliance Pitfalls appeared first on BeInCrypto.

This approach optimizes resource usage and paves the way for more flexible and cost-effective computing solutions.

Earn Crypto With Computing Power

The blockchain industry has seen significant advancements in monetizing unused computing resources in recent years. According to Tobias Adler, CEO and Founder at Nuco.Cloud, the integration of blockchain and cloud mining has accelerated, driving the efficient use of previously idle computing power.

“Companies are increasingly using cloud platforms to operate and offer blockchain applications more efficiently which promotes and also necessitates the monetization of previously unused computing power. In addition to this, serverless blockchain architectures like decentralized cloud computing enable a more flexible and cost-efficient use of resources,” Adler told BeInCrypto.

This trend promotes the monetization of unused computing power and enables more flexible and cost-efficient use of resources.

Blockchain technologies have revolutionized the use of unused CPU and GPU power, storage space, and internet bandwidth. Decentralized platforms now enable users to rent out their unused storage or offer computing capacity for complex tasks. In return, they earn cryptocurrencies.

Read more: Best Cloud Mining Sites 2024: A Beginners Guide

However, it is essential to distinguish between pure data calculations and time-critical content requiring low latency. Poor infrastructure in some regions can hinder the performance of decentralized platforms. In Germany, for example, some rural areas still rely on slow mobile connections, which can affect the decentralized networks.

Despite these challenges, the earning potential for individuals providing computing resources through decentralized cloud mining can be significant. Compensation in cryptocurrencies or platform-specific tokens depends on the amount of computing power provided, the duration of its availability, and the current demand within the network.

A crucial aspect is whether the provider allows users to set their own service costs or employs an automatic calculation based on supply and demand. Still, a user-friendly interface and simplified pricing model are essential for attracting and retaining customers.

“The problem with a marketplace is that every miner can set their own prices at which they are willing to provide their computing power, similar to eBay. This means for the customer, it is unnecessarily complicated to select the specific server. But if this is automatically calculated based on supply and demand, it opens up brand new possibilities with a user-friendly interface,” Adler noted.

Decentralized Computing Will Thrive

The future of decentralized computing and storage networks looks promising. The global cloud computing market is expected to grow from $626.4 billion in 2023 to $1,266.4 billion by 2028, with a CAGR of 15.1%.

This growth is driven by increasing demand in sectors like retail, consumer goods, and healthcare. This is further fueled by the rapid adoption of AI, machine learning, big data, edge computing, and 5G technologies.

“The future of decentralized computing and storage networks is closely tied to the overall development of the cloud computing market and will benefit from technological advancements and increasing acceptance across various industries,” Adler told BeInCrypto.

Read more: Free Cloud Mining Providers to Mine Bitcoin in 2024

Decentralized networks can benefit from this development by positioning themselves as flexible, secure, and cost-effective alternatives to traditional cloud mining solutions. Integrating AI and machine learning into decentralized networks will enhance their efficiency and scope.

At the same time, advancements in 5G technology will improve their performance in handling large data volumes and high-speed requirements.

Centralized cloud services like Amazon, Microsoft Azure, and Google Cloud demonstrate the scalability and security possible with cloud computing and storage. Decentralized networks offer similar functionality, with the added advantage of enhanced data security and privacy.

The post Expert Explains How to Earn Crypto With Unused Computing Power appeared first on BeInCrypto.

It is important to understand the importance of aligning investment approaches with individual goals and risk tolerance, while navigating the decentralized finance (DeFi) sector.

One DeFi Protocol Does Not Fit All

In a recent interview with BeInCrypto, Lucas Kiely, CIO at Yield App, shared his insights on effective strategies for earning passive income through cryptocurrency. He emphasized the importance of aligning investment strategies with individual goals and risk tolerance.

“What constitutes an ‘effective strategy’ very much depends on individual investors’ goals and risk tolerance,” Kiely remarked.

He highlighted the allure of high short-term interest rates, such as a one-month lock-in promising 20% interest on Bitcoin. However, he cautioned that the events of 2022 demonstrated the substantial risks associated with such promises of astronomical passive yields.

Kiely advised those seeking guaranteed passive income to compare rates, benefits, and security features across different platforms while avoiding outliers. He suggested that sophisticated investors with moderate-to-high risk tolerance explore yield-enhancing crypto-structured products.

Read more: Top 4 Crypto Passive Income Ideas That Really Work in 2024

He also stressed the importance of evaluating several factors before entrusting funds to any crypto platform. These include security, tokenomics, historical performance, personal goals, and risk tolerance.

“While crypto is home to many high-risk investors who may be happy to place an all-or-nothing bet, the current environment calls for caution and well-informed, balanced strategies that can absorb market fluctuations caused by external factors, such as regulatory and geopolitical uncertainty,” Kiely explained.

Lending, Research and Diversification

Lending platforms like Aave and Compound have become integral to DeFi. These platforms eliminate intermediaries like banks or crypto custodians from lending and borrowing transactions, allowing for direct and trustless interactions.

Lenders provide liquidity by depositing cryptos into a pool, which borrowers can access for a fee. Smart contracts automatically execute these transactions based on predefined rules.

The benefits of lending include the absence of a central authority controlling rates, potentially higher profits, immediacy, and privacy. However, Kiely noted that the benefits come with greater risks.

“It is estimated that $3.7 billion was lost in DeFi hacks in 2022, and though this number decreased to $1.3 billion last year, security remains one of DeFi’s biggest issues. Smart contract failures can also result in loss of funds, as can uncollateralized lending when markets go south,” Kiley told BeInCrypto.

He advised thorough research before investing in DeFi lending protocols, emphasizing the importance of technical and trading expertise. “DYOR” (Do Your Own Research) is a critical principle in the crypto market, reflecting its high-risk nature and susceptibility to hacks and scams.

Read more: 7 Ways To Earn Passive Income With Crypto in 2024

In addition to thorough research, Kiely recommended diversification to minimize risk. Investing across various projects or cryptocurrencies can help mitigate the impact of any single underperforming investment. He also stressed the importance of using reputable and secure exchanges with a proven track record of protecting user funds.

Learning from Previous Mistakes

Understanding one’s limits is crucial in the crypto market. Kiely advised investors to consider their experience level and how much they can afford to lose. Newcomers with moderate risk appetites might find traditional finance-like platforms and earning strategies more suitable for easing into the crypto space.

Kiely concluded with a vital piece of advice for newcomers: understand how passive income is generated by the platforms they are exploring.

“Are the yields promised by a platform sustainable, regardless of market conditions? How transparent is the platform about the assets they invest in and the investment strategies they use to offer yields? Might they be investing in particularly volatile assets, tokens with poor foundations, or offering un- or under-collateralized loans to generate higher than market average yields?,” Kiely questioned.

The crypto market crash of 2022, which saw billions wiped off the market, highlighted the importance of informed investing. As the industry recovers, it is the responsibility of all investors—new, old, institutional, or retail—to be well-informed and avoid repeating past mistakes.

The post Yield App CEO Explains Top Strategies for Crypto Passive Income appeared first on BeInCrypto.

This integration improves how content is created and distributed while bringing significant benefits in terms of efficiency, creativity, and intellectual property protection.

AI’s Role in Creativity and Content Creation

Mitch Liu, CEO of Theta Labs, told BeInCrypto in an exclusive interview that AI tools are revolutionizing the creative process. These tools automate routine tasks, enabling crypto influencers and content creators to concentrate more on their unique ideas and visions.

When combined with blockchain technology, AI streamlines creativity and ensures the protection and proper attribution of digital content.

“AI and machine learning algorithms can automatically assist in detecting, verifying, and then ‘tagging’ the origin of creative works such as stories, images, or videos, marking them with a unique digital fingerprint. This is where blockchain steps in – serving as a tamper-proof ledger, it ensures that the original creators are acknowledged and credited for their work,” Liu said.

As AI enhances creativity, the computing power behind blockchain, particularly through distributed computing networks, protects against unauthorized leaks or reproductions. This allows creators to focus on the meaningful aspects of their projects.

One of the most transformative aspects of AI in content creation is its democratizing effect. AI tools level the playing field, making advanced technologies accessible to all creators, regardless of their technical expertise or budget.

This accessibility ensures that emerging content creators have the same opportunities as established ones, fostering innovation and diversity in the creative community.

“Think of it this way: while anyone with a license can drive a race car, beating the fastest lap takes skill and expertise. Similarly, while AI provides the tools and platforms for anyone to create and distribute content, the quality and appeal of that content still rest in the hands of the creators,” Liu stated.

While there is fear that AI might replace human jobs, there is also excitement about the possibilities it brings. AI is a super-efficient assistant, enhancing creativity by cutting down hours of brainstorming, editing, and devising new ways to connect with audiences.

Instead of replacing content creator’s abilities, AI enhances them, offering new ways to engage with audiences, protect intellectual property, and monetize their content effectively.

“Remember those art classes as a kid, learning to draw 3D shapes? That was hard work. Now, you can just upload a sketch, and AI turns it into a 3D model, saving hours of effort. This lets creators focus more on the meaningful parts of their projects. What’s next lies in everyone’s hands — the creators, the techies, and the fans,” Liu concluded.

Read more: Top 8 Artificial Intelligence Use Cases for 2024

The launch of ChatGPT in November 2022 marked the beginning of a new era in AI technology. The potential of new generative AI technologies, such as text-to-video and text-to-3D, offers endless possibilities for content creators. Indeed, it empowers creators to innovate and connect with their audiences more effectively.

The post How AI Boosts Crypto Influencers’ Content appeared first on BeInCrypto.

These technologies are not a rising trend but a transformative movement in the gaming industry.

The Boken Play-to-Earn Model

Kieran Warwick, co-founder of Illuvium, told BeInCrypto about Southeast Asia’s pivotal role in GameFi’s resurgence. According to him, Southeast Asia, with its young, tech-savvy population and high crypto adoption, is a crucial player in this sector.

The region’s preference for mobile and accessible gaming platforms integrated with blockchain technology highlights the potential of localized content and mobile-first strategies to engage players in emerging markets. Likewise, societal and cultural trends heavily influence GameFi development.

Games like Axie Infinity have successfully integrated local myths and cultural elements into game narratives, boosting player engagement significantly. Still, Axie Infinity’s tokenomics model contained a critical flaw. It prioritized immediate profits over sustained player engagement.

Participants could acquire AXS tokens by breeding Axies and selling them in the marketplace. This sparked a breeding surge, as players aimed to produce as many Axies as possible to maximize their token earnings. For this reason, Warwick highlighted the importance of balancing in-game asset scarcity with accessibility.

“Our approach to tokenomics and game mechanics aims to balance long-term player engagement with financial sustainability. Balancing in-game asset scarcity with accessibility is crucial; too much scarcity can hinder new player involvement, while too much availability may deflate value,” Warwick said.

This balance is crucial to avoid deterring new players with excessive scarcity or deflating asset value through overabundance.

Read more: Top 7 Metaverse Games to Play in 2024

The concept of real yield, offering tangible rewards within games, is another step towards sustainability. However, this also introduces risks such as hyperinflation of in-game assets and reliance on external economic factors. A balanced approach is essential for long-term viability.

For instance, dual-token systems can offer depth in economic and governance aspects even though these systems require meticulous management to prevent economic imbalances.

“They allow for a more complex economy and give players a say in governance, enhancing engagement,” Warwick told BeInCrypto.

The transition from Play-to-Earn to Play-and-Earn or Play-to-Own models reflects a holistic approach, focusing on enjoyable gameplay alongside earning potential. Success in these models hinges on the delicate balance between fun gameplay and economic incentives.

The Catalyst for GameFi’s Resurgence

The entry of major gaming companies into GameFi is a significant trend. Potential partnerships between traditional gaming companies and blockchain innovators could revolutionize the industry.

For instance, Integrating GameFi elements into popular games like GTA VI could drastically change player expectations and encourage traditional gaming industries to explore blockchain technologies.

Virtual real estate is another growing sector within GameFi. This new economy impacts asset valuation and player investment strategies, underscoring the need for robust economic models and transparent regulatory frameworks.

Likewise, the release of high-end VR headsets like Apple’s Vision Pro is poised to significantly impact GameFi, offering more immersive experiences.

“Adapting GameFi to these technologies will be crucial for future growth. GameFi developers must balance innovation with user experience, especially for blockchain newcomers,” Warwick affirmed.

Still, cyber security remains paramount. Warwick emphasized the importance of multi-layered security measures, regular audits, and transparent smart contract operations to protect players’ assets. “Building a secure and trusted environment is vital for the industry’s growth,” he asserted.

GameFi developers must balance innovation with user experience, particularly for blockchain newcomers. This includes intuitive interfaces, educational resources, and seamless integration of blockchain elements. Community feedback is critical in GameFi’s success, shaping projects through community-driven feature development and beta-testing feedback.

Integrating GameFi with the Metaverse promises more immersive and interactive gaming experiences. This convergence will likely lead to new forms of social interaction and digital economies within the virtual worlds.

The post GameFi Is Coming Back, Says Illuvium Co-Founder appeared first on BeInCrypto.

Gold, with its long history, symbolizes traditional wealth. Bitcoin, on the other hand, represents the forefront of digital innovation.

Gold vs Bitcoin: Which Is Better Now?

Gold mining has stood the test of time. For centuries, it has been a symbol of wealth and stability. The process of extracting gold from the earth is labor-intensive and environmentally taxing. Yet, it remains a cornerstone of the global economy.

Gold’s tangible nature and historical significance make it a reliable store of value, especially during economic uncertainty.

In stark contrast, Bitcoin mining represents the cutting edge of digital innovation. It involves solving mathematical problems to validate transactions on the blockchain, a decentralized ledger. This process, known as Proof-of-Work (PoW), requires significant computational power and, consequently, large amounts of energy.

Rob Chang, CEO of Gryphon Digital Mining, told BeInCrypto about Bitcoin miners’ strategic approach. He emphasized that Bitcoin mining can stabilize local grids and support renewable energy projects, offering a unique benefit that traditional gold mining lacks.

“Miners seek low-cost power, usually in areas with low demand or where there might not even be enough demand to support a stable grid. The presence of a Bitcoin miner who uses consistent amounts of power is beneficial for regions where the local area may not have the demand to justify a stable grid,” Chang said.

Both gold and Bitcoin mining have significant environmental footprints. Gold mining often leads to deforestation, water pollution, and habitat destruction. Efforts to mitigate these effects include stricter regulations and the development of more sustainable practices.

However, the inherent physical nature of gold extraction poses ongoing environmental challenges.

Bitcoin mining, on the other hand, is criticized for its high energy consumption. Although Bitcoin’s carbon footprint has drawn scrutiny, the industry increasingly turns to renewable energy sources.

Chang noted that Bitcoin mining’s competitive nature drives efficiency and innovation, which can lead to more sustainable practices over time.

“Bitcoin mining difficulty is an inevitable outcome of Bitcoin’s success and is something miners should expect and in fact embrace since it would only occur if Bitcoin continues to succeed.  It incentivizes miners to be as efficient as possible and to innovate to stay as low cost as possible,” Chang added.

Read more: Free Cloud Mining Providers to Mine Bitcoin in 2024

Competitive Mining Market for Both Assets

The economic viability of mining operations is crucial for both industries. Gold’s value is influenced by geopolitical stability, currency fluctuations, and market demand. Despite its stability, the profitability of gold mining can be affected by fluctuating ore grades and increasing production costs.

Bitcoin’s market dynamics are even more volatile. Its value is subject to market sentiment, regulatory changes, and technological advancements.

Chang explained that energy prices are the most critical cost variable for Bitcoin miners. Efficient energy management can make or break a mining operation.

“The best measure of this is the Bitcoin efficiency ratio, which measures the amount of Bitcoin generated per deployed exahash. A good way to think about this is Bitcoin is to oil as hashrate is to oil derricks. The more exahashes or oil derricks a company has, the more Bitcoin or oil they should generate,” Chang told BeInCrypto.

Read more: Top Countries Where You Can Mine Bitcoin Legally

Moreover, hardware competition at the ASIC miner level is welcome and good for the industry. Historically, a few dominant players controlled the mining machine market, squeezing profitability by repricing equipment based on real-time Bitcoin prices. This has made it difficult for miners to compete, as most are forced to provide large upfront payments to procure machines.

The centralization of mining power is a potential concern for the Bitcoin network. While not an issue currently, vigilance is necessary to prevent bad actors from gaining control over the global hashrate. Decentralization is key to ensuring a secure blockchain.

Regulations also play a crucial role in the future of mining. Poor political environments can kill off mining operations altogether. Chang pointed out that most laws impacting Bitcoin mining relate to its energy use.

If a miner is carbon neutral, they can avoid regulations targeting carbon-emitting operations.

Read more: 5 Best Platforms To Buy Bitcoin Mining Stocks Ahead of 2024 Halving

Looking ahead, gold will remain a safe haven asset, but its environmental impact may drive stricter regulations and push for greener mining technologies. With its potential for supporting renewable energy and stabilizing grids, Bitcoin may pave the way for a more sustainable future in digital asset mining.

The post Gold or Bitcoin: What is the Future of Mining? appeared first on BeInCrypto.

Amid speculations about the decline of NFTs, Finzer provided a clear vision of continued growth and innovation.

The Rise of Gaming and Physically Backed NFTs

Finzer highlighted that NFTs are not dead. In fact, gaming and physically backed NFTs are areas of growing interest among market participants.

For this reason, OpenSea has partnered with Courtyard on projects involving Pokémon cards and with leading game developers like Parallel and Revolving Games.

“We see emerging use cases popping up on OpenSea all the time. Ensuring OpenSea is a home to all types of NFTs is crucially important to onboard the next wave of collectors,” Finzer told BeInCrypto.

OpenSea has also revamped its collection pages, offering creators richer, customizable pages to tell their project’s story. This adaptability extends across various types of NFTs, whether profile pictures, games, or physical items.

According to Finzer, the platform is committed to evolving with new utility trends, ensuring the marketplace remains one of the best places to buy, sell, and collect NFTs.

Read more: 7 Best NFT Marketplaces You Should Know in 2024

For now, OpenSea’s significant focus is enhancing the user experience in gaming. The company has introduced immersive game trailer videos and a new standard for redeemables, which enhance the core user experience. These features aim to deepen OpenSea’s verticalization for specific NFT areas.

“A good example of this is gaming where it’s important to have gameplay highlighted through video,” said Finzer.

The massive gaming industry is expected to drive the adoption of NFTs. As more gamers become first-time NFT owners, a frictionless onboarding experience becomes essential.

Finzer noted the importance of gamers experiencing the game before purchasing an NFT pass, which requires richer merchandising. He also highlighted the potential of interoperability, where items or statuses earned in one game could unlock experiences in another, facilitated by open digital ecosystem standards.

The Journey to One Million More NFT Users

The crypto market’s recent uptick has sparked innovation, with infrastructure improvements making NFT transactions more engaging and cost-effective. Finzer believes these developments are essential for onboarding the next wave of users.

“We believe these investments are an important foundation for onboarding the next million users,” he said.

For instance, OpenSea’s new cold start onboarding experience simplifies wallet creation and broadens the use of fiat payments. The only thing a user needs is an email to create an OpenSea account with a self-custodial wallet. This integration allows users to buy, sell, send, and receive digital assets and NFTs seamlessly, a crucial step for new entrants to the crypto ecosystem.

Finzer also expressed his admiration for Parallel, a leader in the Web3 gaming sector, highlighting their engaging and ambitious projects. He sees the expansion of utility-backed NFTs as vital for the industry’s growth.

“If our space is going to continue to grow and expand beyond the core community, we need to continue to see more collections coming to life with real-world utility,” he stated.

Read more: How To Create an NFT for Free Using Picsart

Despite the volatility of the NFT market, Finzer remains optimistic about its future. He wants to continue building out new features and opportunities to ensure a safe place at the forefront of the NFT sector.

“As new utility comes to life, we’ll evolve the marketplace to better merchandise and bring to life the utility behind an NFT,” he affirmed.

Finzer’s insights dispel the notion that NFTs are dead. Instead, these digital assets are evolving, with new use cases, improved infrastructure, and innovative features driving the space forward.

The post Are NFTs Dead? OpenSea CEO Weighs In appeared first on BeInCrypto.