Established in 1930, the BIS, or Bank for International Settlements for short, is a group of central banks. The main goal of the BIS is to help central banks accomplish and maintain financial and monetary stability through inter cooperation. Another important task of the BIS is to serve as a bank for various central banks.
The Bank for International Settlements is owned by 63 central banks that represent nations worldwide. Altogether, those countries account for around 95% of the world’s GDP. The headquarters are located in Basel, Switzerland. Also, it has two representative offices, one in Mexico City and the other one in Hong Kong SAR. Plus, the BIS has Innovation Hub Centres around the globe.
By analyzing banking services, they keep innovating their processes to pursue financial and monetary stability. Although, the concerns keep increasing about networks that offer DeFi services that might not be as “decentralized” as they claim. Since the DeFi sector is rapidly growing and many new investors are joining this trend, the BIS urges the regulation of DeFi networks.
The institution set a medium-term strategy called Innovation BIS 2025, aiming to leverage tech. The plan seeks to create new collaboration channels for the central banking community in these fast-changing times.
There’s a growing concern about DeFi platforms, the way they operate and advertise their products, but mainly the lack of regulation. They stated their preoccupation about DeFi being a “decentralization illusion” at the beginning of December. Decentralized finance is a fast-growing sector of the crypto economy. This particular sector promises to provide classic financial products such as savings accounts and loans without intermediaries such as banks.
However, the main worry is that platforms may offer DeFi services or products that might not be as decentralized as they claim. The BIS urges the regulation of DeFi networks as they hope this will help stabilize the new economy.
The general manager of the BIS, Agustín Carstens, stated that they found that DeFi tends to be elusive. He also mentioned that there are some issues related to the fact that at some point, some agents playing a critical role might not be in it for the best interest of their users. The BIS urges the regulation of DeFi services so investors can be safe, which eventually could boost trust in the market.
The co-founder of Swarm Markets, Timo Lehes, stated that there are areas of opportunity to improve. However, he mentioned that many institutions in the crypto space are already working to fix the issues pointed out by the BIS.
Lehes said that even though the BIS urges the regulation of DeFi ultimately, each protocol will decide whether or not to transition to a compliant business model. DeFi could gain from operating within the framework that focuses on protecting investors while maintaining open access to the markets.
Many decentralized finance services work on top of Ethereum, which token’s Ether, one of the biggest crypto coins. The transactions are facilitated by smart contracts that automate processes through code lines. Currently, over $100 billion worth of funds sits on Ethereum-based decentralized finance protocols. Curve, Maker, and Compound are a few of the biggest platforms.
The Bank for International Settlements believes the risks surrounding DeFi have been contained to crypto markets. Although, their concern is that if it goes forward, the growth of DeFi might be a threat to financial stability.
It’s well known that DeFi platforms are luring new investors with the promise of big returns on their savings and loans. But one should keep in mind that there has been an increase in the number of fraudsters and hackers taking advantage. In 2021 there was a loss of over $10 billion in DeFi thefts and scams.
The BIS flagged “severe” vulnerabilities within the sector, including highly-leveraged trades, lack of shock absorbers, and liquidity issues. Although it’s not all bad, there may be safe aspects, but there are others that may not. DeFi, although it might be on its way to regulation, still has a long way to go. Meanwhile, all of these pros and cons should make us seriously think about it.
The world is already head over heels for cryptocurrency. Rumors about Amazon, the giant in the e-Commerce industry, are most likely going to end up being true. They seem to be almost ready to enter the crypto market. You probably heard something about it in the past few months. However, all indications suggest that Amazon will present its crypto token in 2022.
Amazon is thinking in the same direction as Tesla, exploring the possibility of letting customers use cryptocurrencies for their payments. Although these rumors have been out there, the details remain unclear.
It looks like Amazon is setting up a blockchain – Amazon Managed Blockchain, and at the same time preparing to launch its cryptocurrency. Also, an article published in one tech magazine confirms that the company is looking for a new Head of Digital Currency and Blockchain. More information leads to the same conclusion. Amazon is ready to enter the crypto void.
The company denied its cryptocurrency ambitions and explained that this is one of their many experiments, and the job postings, like the one mentioned above, mean nothing more than that.
The rumor itself has increased the value of Bitcoin, and at the same time, Amazon shares gained about 1% in New York.
Still, many believe that this is inevitable. They are convinced that Amazon will eventually accept Bitcoin payments and that this turn of events will probably happen by the end of the year. As for the introduction of its crypto coin, it might happen sometime in 2022.
Let’s look at the current trends: other tech giants are doing it, why not Amazon? Competitors like Facebook (Meta) create their blockchain concepts, and Amazon needs to respond. Google’s partnership with Bakkt is clearing the road for crypto payments in the Google Pay app, as well.
The game rules are changing, and Amazon must accept it, like all other prominent players in the industry, or at least prepare everything necessary when conversion to crypto takes place.
Currently, Amazon doesn’t accept Bitcoin or other cryptocurrencies directly as a means of payment. That can change in the near future, possibly in 2022, and customers will have the option to use Amazon Crypto Token for shopping on their platform. It is in the early stage of development, and many things are still unknown.
Many sources are coming to the same conclusion, and that is the acknowledgment of the fact that Amazon’s cryptocurrency is at the final stage of development, and it is arriving in 2022. When exactly, it’s still unknown.
Amazon is preparing crypto payment with Bitcoin and expanding its complete offer to eight other coins. This project has been under construction since 2019.
One of the concerns that can cross one’s mind is that this could mean too much power in one company’s hands. A company of that magnitude has the capacity to control the market, everything you buy or give, your refunds or loyalty points transferred into crypto money. For now, it is only a hypothesis. The year 2022 will reveal more.
All of the big tech companies are part of the crypto frenzy. A well-known example is Facebook experimentation with Libra (Diem) that faced so much criticism. Others encounter it will not stop Amazon, and many are impatient to witness Amazon’s crypto future.
Let’s start from the beginning; what is Polygon, and why is it so relevant for Ethereum? Polygon, known before as Matic Network, is a framework for scaling and interoperability designed to build blockchains compatible with Ethereum. The network has a token on its own, known as MATIC, which is utilized for staking, governance, and gas fees.
At the beginning of 2021, Ethereum made changes and rebranded the Matic Network, which was known as Polygon from that moment on. Now, the framework deals with some of the limitations that Ethereum has. Lack of high speed, delayed transactions, lack of community governance, and lousy throughput, to name a few. Unlike its predecessor, Polygon is designed to be a platform for launching interoperable blockchain technology.
With the new changes Ethereum is implementing, many experts are wondering about the future of Polygon after Ethereum 2.0. In this article, we’ll explain how Polygon is aiding Ethereum and what to expect after the launch of Ethereum 2.0.
Polygon works on a four-layer principle: Polygon’s layer, Ethereum layer, security layer, and execution layer. In fact, two of those layers are of mandatory nature – the Polygon layer and the execution layer. The first one is the layer of the network, the blockchain networks on Polygon. The second mandatory layer is the execution one, which executes smart contracts.
The Ethereum layer represents a group of smart contracts executed on Ethereum. Those contracts take care of tasks like staking, transaction finality, and the communication between Polygon chains and Ethereum.
The security layer works simultaneously as Ethereum, and it grants “validators as a service” status. That role enables chains to get benefits from an extra security layer. It’s important to mention that both Ethereum and the security layer are not mandatory.
Chains set on Polygon can communicate with the main chain of Ethereum thanks to Polygon’s capabilities. Therefore, this will open a variety of possibilities for decentralized apps and the exchange of value among different platforms.
As the Ethereum team announced, Ethereum 2.0 will fix the congestion problem that Ethereum currently faces. As the new launch will to deal with current issues Polygon was helping with, does it mean that Polygon will disappear? Not likely. Polygon has helped to ease the pressure of demand and lower fees. It is easy to conclude that Polygon still has big plans after Ethereum 2.0.
On December 9, 2021, at the ZK Day event, they announced the purchase of the Mir protocol. This platform utilizes “zero-knowledge proofs” for designing and building decentralized apps away from Ethereum’s network. Finally, they mentioned the transaction, according to Polygon, will be worth around $400 million in MATIC tokens.
The zero-knowledge proofs are based on the privacy principle. They are a way of verifying things without giving away any private information. It’s like having $100 in your wallet and having the ability to prove this without opening it. Mir uses that concept to run transactions so that developers can build privacy-compliant apps.
Polygon is planning to introduce a recursive proof system to be faster than anything else, and it’s practical to verify on Ethereum. What is most important about this is that it can translate to Ethereum 2.0. Vitalik Buterin, the creator of Ethereum, declared that the network would use it in conjunction with other solutions for scalability.
As the network stated before, there’s no apparent cause for concern. The future of Polygon after Ethereum 2.0 seems to be set as the platform plans to keep it close for much longer now. Although, crypto space keeps rapidly growing, evolving, innovating, the launch of Ethereum 2.0 is for sure one of the most anticipated events. Expectations are very high since experts believe it will set the bar to a new high while respecting users’ privacy. One thing is for sure. We can expect much more exciting news from crypto space in the future years. We’ll be eagerly waiting for the next new thing.
It seems that the last hearing at the Congress brought some light on the Democrats and Republicans Vote on Crypto legislation. During the hearing, major crypto companies stepped into the scrutiny of Congress for the first time. They argued that the booming industry requires federal supervision without the rigid policies that regulators advocate for.
One key discussion point was deciding if digital currencies are assets that the Securities and Exchange Commission should police. Alesia Haas, Chief Financial Officer of Coinbase Global Inc., testified that she strongly disagrees with that approach. Haas argues that rules that are decades old, designed specifically for different kinds of assets, like stocks, are not appropriate for digital currencies.
The hearing lasted for almost five hours, and companies expect it to help legitimize the crypto industry. On the other hand, it revealed the difficulties that the federal government faces in trying to regulate the industry.
The leaders of significant crypto projects, such as Circle Internet Financial Inc., and Coinbase, were questioned. Interviewers wanted to know how their businesses should be overseen, to which the executives answered clearly.
The lawmakers raised clear divisions that demonstrated that the prospects for approving the legislation are not clear. However, the hearing allowed crypto companies to assert that this could be a milestone for the industry.
Millions of Americans have dived into investing in cryptocurrency assets; the market value is nearly $2.4 trillion. The regulators and lawmakers are struggling with how to monitor the securities.
The executives’ testimonies provided some light on the learning curve that the government officials at the capital will have. Some members of the democratic party expressed their concerns about fraud and other abuses of such nature. Meanwhile, republicans focused on the fact that too much regulation will slow down the natural innovation process.
Maxine Waters cautioned that the industry is vulnerable to manipulation, fraud, or abuse without federal supervision. People in the US keep making financial investments in digital assets by the hour. Without the proper regulation, officials expect for fraud to increase too.
On the other hand, Patrick McHenry, from the republican party, argues that the Democrats first need to understand tokens. He also stated that Congress should embrace digital assets, like cryptocurrencies, to make sure investment grows in the US.
Some Democrats in the panel stated their concerns as executives mentioned that tokens could help people without access to banks. Jeremy Allaire from Circle pointed out that it’s an open financial system. The system allows anyone with a mobile device to exchange value with another person anywhere in the world.
The committee of democrats kept questioning the protection provided for investors on tokens. Moreover, they allege that they notice extreme volatility in this market and question the possibility of a bubble.
There have been a lot of people working in the creation of something new that could potentially bring technology to the masses. We’ve been witnesses to the evolution of the crypto industry. We have seen the advantages as well as the areas of opportunity for it. Unfortunately, it seems clear that it will take a few more attempts to get some of this progress done before the Democrats and Republicans vote on crypto can favor the industry.
Elliptic, a risk management firm, declared that users of DeFi lost billions to scams and hacks. The number goes around $10.5 billion. The number is significantly higher when compared to the $1.5 billion from 2020.
Decentralized finance stands for apps based on blockchain that enable people to go around the traditional banking system. With DeFi, it’s possible to bypass financial intermediaries to borrow, lend, save, or trade with other users. This is an option due to making use of automated smart contracts connected to protocols.
This particular sector of the crypto space currently has more than $250 billion in assets. Back in June 2020, its worth was less than $1 billion. A successful cycle was created by the rising prices of the coins, governance tokens, and increased use of protocols. People invested in the crypto space are seizing the moment and fast-growing their earnings.
As networks like Binance and Solana keep growing, they become more popular by the day. Although DeFi networks experienced growth in acceptance, subsequently, it also brought more theft. As the sector keeps riding the wave of popularity, many projects struggle to keep up with the industry.
For thieves, all of this new boom in the industry translates to the possibility of stealing more funds. The firm Elliptic, an expert in risk management, stated that the core of this problem is poor cybersecurity. The issue with DeFi projects is that many startups don’t put enough resources into reinforcing the security.
Another issue is that once the theft is done, recovering the funds is almost mission impossible. Crypto transactions are of irreversible nature, which makes the process of taking them back a challenging one. Which makes it one of the main reasons why DeFi lost billions in a short amount of time.
New projects are not the only one to blame. It is also the pressure of trying to keep up with this fast-paced industry. To satisfy the high demand for new products, the security of these protocols is exposed to threats. The mix of the named factors makes these startups the most attractive victims for attackers. When we say attackers, we mean of all kinds, from hackers working alone to nation-states.
Although a third party is the culprit behind the attacks in most cases, sometimes that’s not the case. Mistakes in cybersecurity can result in inserted “backdoors” by developers that lead to stealing the users’ funds.
Just in the last couple of years, over $2 billion were stolen straight from DeFi applications. Elliptic also attributes $10 billion in losses as the value of some tokens declined due to theft or fraud. Although it’s a complex number to pin down, it’s even harder to calculate its total impact. Usually, when news breaks about some new theft, it translates to decreased confidence in the asset.
Last year, most of the losses came from DeFi Ethereum, with $8.6 billion. The protocol started lending decentralized exchanges, derivatives products, and protocols. Uniswap, Synthetic, and MakerDAO are only some examples of this. Protocols of Binance Smart Chain are also responsible for $2.5 billion in losses since last year.
According to Elliptic metrics, users should be more careful when dealing with lending protocols. This mechanism enables people to borrow crypto from pools of other users. The protocols are highly vulnerable to economic exploits, just as they are to code exploits. As the crypto space becomes more mature, attacks will eventually be happening only at risky platforms. Until then, users should keep their eyes wide open and guard up. One thing is undeniable, as numbers show, DeFi has become an alluring paradise for hackers.
Crypto enthusiasts, get excited! Now it’s possible to start earning Helium token rewards if you plan on helping the expansion of Dish Network. The cryptocurrency startup, Helium, which provides wireless networks, is joining forces with the Dish company. Now, Dish customers have the option to deploy a 5G node to share a connection and earn token rewards.
The Helium startup made it official that a wireless network run by users is now linked to token rewards. Nowadays, their Internet of Things network possesses over a quarter of a million active nodes. Their next step is to try to do the same with a 5G connection, in collaboration with FreedomFi as the provider of infrastructure. All the focus is set on the TV and mobile service provider Dish Network, who just joined the project.
On October 26th, Dish Network announced the contract with Helium, making it official to the rest of the world. The deal enables Dish users to share 5G by managing a node of Helium in exchange for HNT tokens as a reward.
COO of Helium, Frank Mong, declared that Dish Network understands the vast possibilities that blockchain technology can have paired with the wireless industry. The partnership is definite proof that the Helium model of incentivization with tokens can be a potent tool.
By rewarding users with HNT tokens more people will be drawn to participate in the expansion. The goal of Helium 5G is to have a wider reach while the user also benefits from the tokens and the apps it offers.
The first LongFi network of Helium was planned only to power Internet of Things devices like trackers and sensors. Currently, it has over 250,000 nodes operated by users, as mentioned before. Helium stated that 500,000 more are ordered, which translates to a more relevant scale coming soon.
However, the network was not planned to handle other kinds of devices such as smartphones, laptops, and tablets. On the other hand, the 5G network built with FreedomFi will be able to do it. The tokens that users get as a reward can naturally be exchanged for any other crypto of choice.
Mong declared that the first batch of 5G wireless nodes for the network of Helium would soon be shipped by FreedomFi. The expansion plan establishes that by the end of 2022, around 40,000 of Helium’s network nodes will be already deployed. However, some experts think that that scenario is optimistic, others that it will be more. In the end, it all depends on the demand. This project is not the only one working on 5G nodes. Other producers of hardware are also working on it. It’s expected that more plans like this will be announced shortly.
Although in the crypto space, anything can happen, Helium’s token has shown great promise. Throughout 2021, it went from $1.36, and it’s currently at $43.41 a token. Back in August of the same year, the project announced funding of $111 million. The main goal of such financing is to scale the plans of the decentralized project. The following month, Helium made public knowledge of its partnership with the City of San Jose in California. The association is for a pilot program that will fund internet access for households with low-income. All of that will be raised by nodes of LongFi that volunteers will operate.
It is still unknown what the future holds, especially when we talk about crypto-related news. Although it can seem to be promising in theory, you should also keep in mind that anything can happen. In this fast-changing world, what might seem certain today might change tomorrow.
Be sure to consider all the factors involved in the crypto world, not only what the protocols make public. It’s always a good idea to make a decision when you’re well informed, and as mentioned before, invest only what you can afford to lose.
In the world of crypto, sudden shifts are the only thing you can count on. The mass popularization of crypto technology leads to entire countries changing their financial course and leaning towards crypto. The newest addition to the crypto team is Singapore.
The latest news gave us a clear insight into Singapore’s determination to become one of the leading crypto forces out there. Crypto-related businesses around the world keep wrestling with one of the fastest-growing fields in finance.
Compared to countries like China that are clamping down on crypto to sustain fraudulent activity, some countries embrace crypto, making way for new solutions that might give better long-term results. Crypto Digest covers the story of Singapore and its newly found crypto plan.
Mr. Ravi Menon, the Monetary Authority of Singapore (MAS) managing director, explains that the “clamp-down” approach isn’t the correct way to handle things. Instead of banning crypto, MAS is planning to enforce solid regulations. Subsequently, businesses, companies, and firms that comply with these requirements and face multiple risks regarding crypto can operate freely.
The broader liberalization in the financial sector brings Singapore’s plans of building a digital infrastructure based on crypto technology. The country sees significant economic possibilities in crypto’s tokenized economy. Eventually, cross-border payments will come at a lower price, and hard physical assets will be traded differently.
Not everyone had the same ideas regarding crypto. As we briefly mentioned, some countries had different, more restricting approaches. We have China cracking down on almost all crypto activities in the past couple of months, while Japan only allowed crypto investment funds recently.
On the other hand, El Salvador legalized Bitcoin as legal tender and embraced crypto in a completely opposite way. The United States has a variety of digital investment options with the ever-expanding asset class. However, regulators are worried about everything related to crypto, from yield-generating products to stablecoins.
Singapore is taking a somewhat optimistic yet cautious approach. MAS believes that all crypto activity is a profitable future investment, a future that’s not clear at the moment.
As Ravi Menon explains, not getting into the game early on means instant disqualification. He believes that the country would be left behind if it had taken another route. Having a strong head start is the way to go. Therefore, if the new crypto technology is faced right at the beginning, it will be easier to spot the benefits, along with risks.
Singapores’ stakes are high, as it has already established itself as one of the leading global wealth hubs. Raising safeguard is the primary action step. Counter risk measures will surely battle illicit flows that are highly possible in the crypto space.
Singapore and its plans to develop crypto technology, understand blockchain and smart contracts are only a preparation for a 3.0 Web version of the world, as Mr. Menon said. It is important to note that Singapore is not alone in its crypto plans. Various locations include Miami, El Salvador, Dubai, Malta, and Switzerland.
Ultimately, Singapore’s plans give us a rather interesting picture regarding the third generation of online services. With multiple countries having various approaches to this new technology, we have yet to see how the crypto future will unfold. One thing is certain, though; we will have a solid case study. If we know that crypto is here to stay, the only thing left to do is watch, learn and implement.
Decentralized finance (DeFi) is still reigning as one of the most popular terms related to financial markets. The peer-to-peer network is becoming a regular part of a colorful cryptocurrency landscape, capturing the interest of traders and investors of all sorts As we slowly inch towards 2022, we decided to look at the top 5 DeFi projects set to dominate 2022.
Let’s have a quick reminder about some DeFi basics. DeFi wants to bring the convenience of peer-to-peer transactions to investors. Decentralized finance platforms develop a space for lending, borrowing, trading, saving, and profiting from interest. And without that pesky usual bureaucracy! DeFi harnesses the positive parts of efficiency and smart contracts, which are virtual contracts that live on the blockchain.
Decentralized finance aims to get rid of needless paperwork since it’s situated on a digital blockchain. That also means less time wasted on bank transactions. Also, DeFi is beloved for removing third parties and other human intermediaries, such as attorneys.
Here are some of the Top 5 DeFi Projects that experts have singled out as interesting for 2022:
Aave started out named as ETHLend, and is a pioneering decentralized financial platform on the marketplace. To be more exact, it is a decentralized liquidity space that lets you borrow assets and earn incentives on deposits. Lenders and borrowers get connected in this DeFi area and they have equal lending opportunities. And did you know you can get rewards and incentives by staking the AAVE coin on the Aave DeFi platform?
This project is hailed as one of the quickest smart contracts platforms in the blockchain sector. They are no strangers to non-fungible tokens, as well. Avalanche also teamed up with SushiSwap (SUSHI), Chainlink (LINK), and the Graph (GRT) for a seamless DeFi experience. You could say that Avalanche rivals the popular Ethereum. That is due to the fact that it also offers quick transactions that take a blink of an eye. The project recently acquired $230 million in funding to go on with its decentralized finance initiative.
This DeFi system and project has the goal to connect digital contracts with real-world information via oracle tech. The project will also publish a Programmable Token Bridge that will bring in a new communication system between decentralized finance blockchains. That will assist decentralized finance to scale as it should and skip over some hurdles that kept other blockchain projects from properly developing.
This DeFi project is ideal for lending and borrowing opportunities. When you make a deposit to this project, you get CTokens which are used to buy cryptos on the platforms. These CTokens are a stamp of approval that lets others know that you have staked assets in the network and can borrow. And a whopping $800 million is the number of the platform’s value now.
Band Protocol resembles Chainlink and rounds up our Top 10 DeFi Projects. It focuses on DeFi oracles and gathers real-world info, which goes to digital contracts on digital ledgers such as ETH and Cosmos. Since decentralized finance requires outside data, like weather reports and sports scores, transferred safely to blockchain space, Band Protocol will remain an important player in the decentralized playing field.
The DeFi protocol known as Indexed Finance got hacked at the beginning of October; the lost amount goes as high as $16 million. Index Finance is a decentralized finance project whose base is Ethereum. It issues tokens that track indexes in the market. Allegedly, the hacker got hold of the assets backing up the value of the index tokens and used the opportunity to strike through a vulnerability in the smart contracts protocol. This project is the latest to be hacked in a series of attacks perpetrated by hackers trying to bring money into their pockets.
The intrusion was a classic case of exploiting DeFi. The attacker employed the flash loan procedure, overloading the protocol with different new assets. That fact alone lowers the value of Indexed tokens, enabling the hacker to issue new ones and exchange them for cash. That’s precisely what happened this time; that’s how Indexed Finance got hacked.
Currently, out of the six main assets in the protocol, two, DEFI5 and CC10 lost almost all of their value. One hour after the attack, DEFI5 had already dropped by 85%; the price went from $88.73 to an unfortunate new low of $3.67. CC10 was even more affected, declining by 98%, from a price of $62.50 to $0.74. The other three tokens known as NFTP, ORCL5, and DEGEN seem to be safe for now. And finally, the sixth asset, FFF, a meta index containing DEFI5 and CC10, was critically damaged and will have to end in the current form it is known. After Indexed Finance got hacked, a compensation plan was put in place.
On Friday 15th, the day after the hack, members of the project identified the culprit. The thief didn’t manage to cover his tracks well enough. Indexed Finance made him an offer in an attempt to resolve the matter as soon as possible. Since they didn’t get a response from him, they proceeded with an ultimatum. The company stated that they gave the attacker until Saturday midnight to refund all that was taken, or they would notify law enforcement.
Later on, members of the DAO said through their Twitter account that they were pulling the breaks on the conditions previously stated. They found out that the hacker was a lot younger than they believed. They haven’t officially declared if they’re negotiating with him or what’s the current status of the situation.
DeFi is a flourishing industry and a bright new opportunity for projects that wish to automate financial tools, such as banks. Most are built on the blockchain that has the second biggest crypto by market capitalization, Ethereum. Although promising, we have to be aware that it’s still an experimental industry in an unknown territory. The technology that serves as the foundation for the protocols is still very new, and obviously vulnerable to hackers. The decentralized finance space requires auditors to prevent attacks; until that happens, we should be aware of the risks. Mainly to avoid loses and unpleasantries, like the protocol users had to go through when Indexed Finance got hacked.
Mark Zuckerberg, born in New York in 1984, developed an interest in technology and computers from an early age. At the age of 12, he created a program for messages called Zucknet, also computer games just for fun. Years later, he developed software that big companies such as Microsoft and AOL were interested in buying. He enrolled in Harvard University but dropped out to focus full-time on developing his new company, Facebook.
Mark Zuckerberg, the co-founder of Facebook, the most famous social networking site, announced that they plan to transform the company into a metaverse. The info was made public through a statement claiming that the firm is looking to invest 50 million. The budget should be spent in the next two years, bringing the Facebook Metaverse to life. Such ambitious projects aim to create a platform that has it all, social media, games, working space, DeFi, crypto, and more.
Many experts in the field have stated their disapproval of this particular project. Even though this is not the first metaverse in the crypto space, it is still the first of its kind. Other social media pioneers who have also mentioned having plans of a similar kind are only focusing on providing DeFi services that use Bitcoin. On the other hand, crypto platforms are not aiming to dabble into social networks. The idea of Mark Zuckerberg is to use his already well-established media to boost his new project. Unlike Ethereum, the most famous metaverse for crypto, the Facebook Metaverse will implement the most extensive social networks into the mix.
With this move, the social network pioneer is trying to get ahead of the next stage of the Internet. It seems to be that they are trying to create a new trend before the rest of the platforms out there go in a different direction and their tools become obsolete.
The skepticism comes from the fact that Facebook has been breached several times and compromised user information. Not only has the social network been the target of scrutiny, Mark Zuckerberg himself has also been called to court. He has attended court to clarify data breaches, electoral manipulation, and the sale of private user information. Realistically there is a significant amount of distrust about anything related to Facebook. Although not only that but to Zuckerberg as well.
Experts have advised him not to build this platform but to use the blockchain that already exists instead. Blockchain technology is a significant threat to social networks. Eventually, if they’re not able to adapt, they’ll most likely disappear. Will Zuckerberg be able to deliver his very ambitious metaverse or not still remains to be seen. For sure, this young entrepreneur from New York is not going anywhere and will give us more to talk about in the future.
The central part of Europe, the West and the North, also known as the European block have reached the highest volume of digital trading currencies. That makes it the block with the most activity in crypto. A company specialized in blockchain analytics shared the news a few days ago through one of its reports. The report stated that the block received over $1 trillion in crypto only last year. That amount means that the region by itself represents 25% of the total activity in the crypto market.
According to the report mentioned before, said block accomplished this due to a variety of factors. East Asia, the biggest longtime competitor , would always take the crown.Nonetheless, the main reason for the European block’s climb to the first place is the implementation of several new crypto regulations, especially those in China. Since July 2020, the activity in the crypto market has plummeted in the East Asian sector. Therefore, the region went down to third place on the list of most significant economies in the crypto space. North America, which holds second place, has a slower but more steady pace of growth.
The same analysis also revealed that the volume of transactions in the European block went up in a dramatic way. The block went up not only on digital assets but in services related to the industry as well. This finished the consolidation of the region in the world economy of cryptocurrencies. Additionally, them adopting crypto and starting implementing them into their day-to-day life makes a big statement. It means crypto is here to stay. Statistics show that Europe sent 25% of its crypto to other blocks around the world. As much as 34% of North America’s last year’s crypto acquisition came from Europe alone.
There was a flow of institutions willing to invest, which provoked the excess of transactions. According to Chainalysis, $10 million was the total amount worth of said transactions. The crypto transactions made by institutions went from $1.4 billion to $46.3 billion in 12 months. Furthermore, institutional investors activity was responsible for over 50% of the crypto activity alone in the European block.
Most of those funds went to protocols in decentralized finance. Wrapped Ethereum and Ethereum are clear evidence of the info stated in the report. Bitcoin, stablecoins and altcoins went down 20%.
During those 12 months, DeFi protocols represent some of the five top services. Some protocols like Instadapp, UniSwapp, and dYdX are constantly on the Chainalysis list of the top services that got crypto-related transactions from the European block. The most searched centralized exchanges are Binance and Coinbase.