Cryptocurrency & Blockchain News and Discussions

[Nanotechandmorefuture]

New proposal for a layered, conceptual, NFT-based patent framework
https://techxplore.com/news/2022-02-lay ... ework.html
by Li Yuan, Chinese Academy of Sciences

By taking advantage of blockchain technology, digital assets are broadly grouped into fungible and non-fungible tokens (NFT). NFT refers to those with unique and non-substitutable properties.

A research team led by Prof. QU Qiang from the Shenzhen Institute of Advanced Technology (SIAT) of the Chinese Academy of Sciences and Prof. Seyed Mojtaba Hosseini Bamakan from Yazd University has proposed a layered, conceptual, NFT-based patent framework.

The study was published in Scientific Reports on Feb. 9.

Although NFTs have had many applications so far, it has rarely been used to solve real-world problems.

Applying for a patent and trademark is time-consuming and costly. With the help of unique features of NFT technology, it is possible to accelerate this process. In fact, tokenizing patents would provide more transparency, traceability, and cost-efficiency of commercialization. NFT-based patents may facilitate reliable information sharing among offices and patentees around the world, reducing the burden on examiners and perhaps even accelerating harmonization efforts.

NFTs can offer IP protection while an applicant waits for the government to grant his/her more formal protection. By using hash and asymmetric cryptography, IP owners can record a claim, such as hash or ciphered claims in the blockchain network. The IP owner can prove his/her property right using the original document and its hash or private key without third-party involvement.

And there it is NFT helping control some part of the internet. I knew those funny little images were up to something. I would imagine some good would come from a part of this as long as it is not too crazy I guess.

[caltrek]

President Biden to Sign Executive Order on Ensuring Responsible Development of Digital Assets
March 9, 2022

https://www.whitehouse.gov/briefing-roo ... al-assets/

Below is a press release from the Whithouse. As a public document, copyright related size restrictions do not apply.

(The Whitehouse) Digital assets, including cryptocurrencies, have seen explosive growth in recent years, surpassing a $3 trillion market cap last November and up from $14 billion just five years prior. Surveys suggest that around 16 percent of adult Americans – approximately 40 million people – have invested in, traded, or used cryptocurrencies. Over 100 countries are exploring or piloting Central Bank Digital Currencies (CBDCs), a digital form of a country’s sovereign currency.

The rise in digital assets creates an opportunity to reinforce American leadership in the global financial system and at the technological frontier, but also has substantial implications for consumer protection, financial stability, national security, and climate risk. The United States must maintain technological leadership in this rapidly growing space, supporting innovation while mitigating the risks for consumers, businesses, the broader financial system, and the climate. And, it must play a leading role in international engagement and global governance of digital assets consistent with democratic values and U.S. global competitiveness.

That is why today, President Biden will sign an Executive Order outlining the first ever, whole-of-government approach to addressing the risks and harnessing the potential benefits of digital assets and their underlying technology. The Order lays out a national policy for digital assets across six key priorities: consumer and investor protection; financial stability; illicit finance; U.S. leadership in the global financial system and economic competitiveness; financial inclusion; and responsible innovation.

Specifically, the Executive Order calls for measures to:

• Protect U.S. Consumers, Investors, and Businesses by directing the Department of the Treasury and other agency partners to assess and develop policy recommendations to address the implications of the growing digital asset sector and changes in financial markets for consumers, investors, businesses, and equitable economic growth. The Order also encourages regulators to ensure sufficient oversight and safeguard against any systemic financial risks posed by digital assets.

• Protect U.S. and Global Financial Stability and Mitigate Systemic Risk by encouraging the Financial Stability Oversight Council to identify and mitigate economy-wide (i.e., systemic) financial risks posed by digital assets and to develop appropriate policy recommendations to address any regulatory gaps.

• Mitigate the Illicit Finance and National Security Risks Posed by the Illicit Use of Digital Assets by directing an unprecedented focus of coordinated action across all relevant U.S. Government agencies to mitigate these risks. It also directs agencies to work with our allies and partners to ensure international frameworks, capabilities, and partnerships are aligned and responsive to risks.

• Promote U.S. Leadership in Technology and Economic Competitiveness to Reinforce U.S. Leadership in the Global Financial System by directing the Department of Commerce to work across the U.S. Government in establishing a framework to drive U.S. competitiveness and leadership in, and leveraging of digital asset technologies. This framework will serve as a foundation for agencies and integrate this as a priority into their policy, research and development, and operational approaches to digital assets.

• Promote Equitable Access to Safe and Affordable Financial Services by affirming the critical need for safe, affordable, and accessible financial services as a U.S. national interest that must inform our approach to digital asset innovation, including disparate impact risk. Such safe access is especially important for communities that have long had insufficient access to financial services. The Secretary of the Treasury, working with all relevant agencies, will produce a report on the future of money and payment systems, to include implications for economic growth, financial growth and inclusion, national security, and the extent to which technological innovation may influence that future.

• Support Technological Advances and Ensure Responsible Development and Use of Digital Assets by directing the U.S. Government to take concrete steps to study and support technological advances in the responsible development, design, and implementation of digital asset systems while prioritizing privacy, security, combating illicit exploitation, and reducing negative climate impacts.

• Explore a U.S. Central Bank Digital Currency (CBDC) by placing urgency on research and development of a potential United States CBDC, should issuance be deemed in the national interest. The Order directs the U.S. Government to assess the technological infrastructure and capacity needs for a potential U.S. CBDC in a manner that protects Americans’ interests. The Order also encourages the Federal Reserve to continue its research, development, and assessment efforts for a U.S. CBDC, including development of a plan for broader U.S. Government action in support of their work. This effort prioritizes U.S. participation in multi-country experimentation, and ensures U.S. leadership internationally to promote CBDC development that is consistent with U.S. priorities and democratic values.

The Administration will continue work across agencies and with Congress to establish policies that guard against risks and guide responsible innovation, with our allies and partners to develop aligned international capabilities that respond to national security risks, and with the private sector to study and support technological advances in digital assets.

[weatheriscool]

Crypto Aims to Boost Influence With Washington Hires

Facing scrutiny, cryptocurrency industry builds ranks with advisers and lawyers familiar with Capitol Hill

March 12, 2022 5:30 am ET

WASHINGTON--The cryptocurrency industry has staked out a spot at Washington's revolving door, hiring scores of former government officials and regulators as it seeks to shape policies to govern the largely unregulated market. ... Those working for or advising cryptocurrency firms or investment funds include three former chairs of the Securities and Exchange Commission, three former chairs of the Commodity Futures Trading Commission, three former U.S. senators, and at least one former White House chief of staff, former Treasury secretary and former chair of the Federal Deposit Insurance Corporation.

The Tech Transparency Project, a watchdog group, has identified more than 200 former staffers of federal agencies, congressional offices and national political campaigns who have worked in crypto. They've gone to companies such as Coinbase, Circle and FTX, venture-capital funds such as Andreessen Horowitz, law firms representing cryptocurrency clients, and crypto-focused trade associations. ... The push comes as regulators are scrambling to craft rules to protect investors in the cryptocurrency market and safeguard against illicit activity or financial instability. President Biden on Wednesday signed an executive order tasking federal agencies with a broad review of cryptocurrencies.

"You just don't normally have industries this new accumulate this much hard and soft power in Washington," said Jeff Hauser, executive director of the Revolving Door Project, a progressive group. He noted that lobbying activity and political spending by crypto firms have surged alongside the recruiting of former government officials. ... The hires span a variety of roles and include alumni of both Republican and Democratic administrations. Industry representatives say former government officials can help companies comply with the law and understand regulatory expectations.

{snip}

Write to Paul Kiernan at [email protected] and Dave Michaels at [email protected].

Read more: https://www.wsj.com/articles/crypto-aim ... 1647042604

[caltrek]

Q1 Crypto Losses Spike 695% on Year Following Massive Hacks
by Jacquelyn Melinek
April 4, 2022

https://techcrunch.com/2022/04/04/q1-cr ... ive-hacks/

Introduction:

(TechCrunch) We’re a little over three months deep into 2022, and with each month it seems the scale of crypto exploits grows as the sector continues to expand.

Just last week, play-to-earn Axie Infinity’s Ronin Network announced it was exploited for about $625 million, making it the largest decentralized finance (DeFi) hack to date

While that was the biggest hack in history, a number of massive multimillion-dollar exploits also transpired in 2022. As people and capital flood into crypto, losses are becoming larger, Adrian Hetman, a DeFi expert at web3 bug bounty and security services platform Immunefi, told TechCrunch.

This year’s hacking history

Wormhole, one of the biggest cryptocurrency platforms that offers bridges to Solana and other blockchains, was hacked for about $320 million, or 120,000 ether, on February 2. A week prior to the Wormhole hack, DeFi protocol Qubit Finance was hit by hackers who stole 206,809 Binance Coin from Qubit’s QBridge protocol, worth about $80 million at the time.

“The Wormhole and Ronin hack, both massive in nature, represent serious vulnerabilities or failures in the crypto ecosystem,” Anthony Georgiades, co-founder of NFT and web3 blockchain provider Pastel and general partner at Innovating Capital, told TechCrunch.

[caltrek]

Crypto's Latest Disruption May be Investor Expectations
by Natasha Mascarenhas
April 9, 2022

https://techcrunch.com/2022/04/09/web-2 ... 3-has-not/

Introduction:

(TechCrunch) I’ve noticed that the long-awaited re-correction of private tech startup valuations and fundraising expectations has a web3-sized asterisk next to it.

While many funds are returning to more conservative check writing, with a focus on profitability and business fundamentals, crypto remains a sector in the spotlight that attracts dedicated billion-dollar funds and investment terms that remind us more of 2021 than 2022.

So, is it hype, the promise of innovation in crypto, or a little bit of both? Venture capitalists and founders across all fundraising stages spoke to current investment strategies when it comes to investing in this cohort of startups. The contrasting strategies come down to technical differences in cap tables, the culture of communities that many companies in this space are built upon, and, of course, the non-crypto world’s fear of missing out. As Freestyle’s Jenny Lefcourt tells me, “Web2 got the memo about valuations coming down, and web3 has not.”

For my full take on this topic, check out my latest TechCrunch+ column with our new crypto reporter Jacquelyn Melinek: Crypto is altering the investing landscape for even the most disciplined VCs.

[Nanotechandmorefuture]

What do you guys think about IoT crypto like IoTA? From what I saw with that it seems Internet of Things is where blockchain will really start streamlining the mining, stacking, and more of crypto.

[raklian]

What do you guys think about IoT crypto like IoTA? From what I saw with that it seems Internet of Things is where blockchain will really start streamlining the mining, stacking, and more of crypto.

Huge potential especially in the data storage decentralization aspect. One of the cryptos, Safemoon, is planning on running a blockchain on a decentralized mesh-like low-power, wide-area network (LoRaWAN) powered by renewable energy. With this setup, any smart contract running on this system will never again be at the mercy of centralized Internet and energy providers.

[wjfox]

Bitcoin becomes official currency in Central African Republic

Published
12 hours ago

The Central African Republic (CAR) has approved Bitcoin as legal tender - just the second country to do so.

CAR is one of the world's poorest countries, but is rich in diamonds, gold and uranium.

It has been wracked by conflict for decades and is a close Russian ally, with mercenaries from the Wagner Group helping fight rebel forces.

Lawmakers voted unanimously to adopt Bitcoin as legal tender, said a statement from the CAR presidency.

The move puts CAR "on the map of the world's boldest and most visionary countries", it said.

https://www.bbc.co.uk/news/world-africa-61248809

[caltrek]

California's Governor Newsome Signs Executive Order Shaping Cryptocurrency Regulation in the State
by Emma Roth
May 7, 2022

https://www.theverge.com/2022/5/7/23061 ... ency-usage

Introduction:

(The Verge) California Governor Gavin Newsom signed an executive order on Wednesday that lays the groundwork for bolstering and regulating the cryptocurrency industry in the state (via CNBC). As outlined in the executive order, Newsom’s goal is “to create a transparent and consistent business environment for companies operating in blockchain,” that balances “the benefits and risks to consumers.”

The executive order calls upon the California Governor’s Office of Business and Economic Development (GO-Biz) to collaborate with the state’s Department of Financial Protection and Innovation (DFPI) and Business, Consumer Services and Housing Agency (BCSH). Together, the state agencies are tasked with devising “potential blockchain applications and ventures,” which could include applications in the “private sector, academia, and community.”

It also orders the DFPI to shape a regulatory approach to cryptocurrency, create consumer protections, as well as produce educational materials that inform California’s residents about both the risks and benefits associated with cryptocurrencies. The order specifically says the materials will “include information about how to avoid scams and frauds,” one of the major concerns about crypto.

“Too often government lags behind technological advancements, so we’re getting ahead of the curve on this, laying the foundation to allow for consumers and business to thrive,” Newsom said in a statement.

Newsom’s plan aligns with the executive order President Joe Biden signed in March, serving as the White House’s framework for future cryptocurrency regulation. Right now, it’s too early to tell how Newsom’s order will impact California’s cryptocurrency industry — no regulatory measures have been rolled out just yet, but the plans are in place to do so.

[weatheriscool]

Bitcoin tumbles more than 50% below its all-time high as crypto plunges again
Source: CNN

The world's most valuable cryptocurrency was down 5% Monday after plunging again over the weekend. Bitcoin prices have now plummeted nearly 15% in the past week. At a price of just above $32,000, bitcoin is more than 50% below its record high of near $69,000 from late last year and at its lowest point since July 2021.

Other cryptocurrencies, sometimes referred to as altcoins, have been hit hard too. Ethereum, binance, solana and cardano are all down about 15% in the past week, while Elon Musk's beloved dogecoin has tumbled 10%.

Cryptocurrencies are proving to be just as risky as stocks and susceptible to the same concerns that are dragging down the Dow, S&P 500 and Nasdaq.

"Volatile trading in digital assets has not been that unusual in previous years," said Michael Kamerman, CEO of trading platform Skilling. "Cryptocurrencies are increasingly moving in sync with tech stocks with investors treating both as risk assets and often retreating to safer corners of the market during bouts of market volatility."

Read more: https://www.cnn.com/2022/05/09/investin ... index.html

[caltrek]

How Do You Tax Non-Fungible Tokens? States are in a Quandary.
by Jennifer A. Kingson
Updated May 9, 2022

https://www.axios.com/2022/05/09/nfts-s ... ederal-irs

Introduction:

(Axios) Is a non-fungible token a piece of property? Is it tangible? Tax authorities are grappling with these and other questions as they start to set policy on the sale and transfer of NFTs.

Why it matters: NFTs are being bought and sold for huge sums — the $69 million Beeple is an anomaly, but symbolically important — and federal and state revenue departments want to get their due shares.

• But the fact that NFTs can take many forms — physical and digital — and be sold in nontraditional ways place them outside the scope of current tax codes.

• So states are losing out: "At least 31 states apply sales taxes to digital products and services, but few if any tax dollars are flowing to them from the hottest commodity in the digital economy," NFTs, reports Bloomberg Tax.

Conclusion:

The bottom line: By the time the tax authorities figure out how to regulate it, the entire NFT market may already be in a state of collapse.

[caltrek]

Coinbase CEO Says India Central Bank's "Informational Pressure" Prompted Trading Halt
by Manish Singh
May 10, 2022

https://techcrunch.com/2022/05/10/coinb ... -of-india/

Introduction:

(TechCrunch) Coinbase halted trading service in India because of “informal pressure” from the Reserve Bank of India, the crypto exchange’s chief executive said on Tuesday, addressing the notable Indian episode for the first time in a month.

The Nasdaq-listed firm launched its eponymous crypto trading service in India to much fanfare on April 7. The app allowed users in the world’s second largest internet market to buy crypto tokens using UPI, a highly popular Indian payments infrastructure built by a coalition of retail banks. But just three days after the launch, the firm rolled back the service without an explanation.

The move followed a strange statement made by the National Payments Corporation of India, the governing body that oversees UPI in the country, in which it refused to acknowledge UPI support on Coinbase’s app.

Asked about the Indian episode on the company’s earnings call, Coinbase co-founder and chief executive Brian Armstrong said Coinbase disabled UPI “because of some informal pressure from the Reserve Bank of India.”

Further Extract::

"And there’s a lot of work to go meet with policymakers around the world and kind of teach them about what the AML capabilities are and what are the positive benefits. The people of these countries generally really want crypto. And so to me, that says that most places in the free world and democracies, crypto is going to eventually be regulated and legal, but it’s going to take time for them to get comfortable with this."

caltrek's comment: I don't pretend to be an expert on cryptocurrency. Still, the vague impression I get is that it was first introduced as an alternative to central banks and government regulated currency. Now it seems to have morphed into: "it can work with the proper government regulation."

Say what?

[caltrek]

One wonders if Africa might be a place where cryptocurrency can proceed with a minimum of government regulation.

MARA Raises $23 Million from Coinbase Ventures and FTX to Build Africa's Portal to the Crypto Economy
by Tage Kene-Okafor
May 11, 2022

https://techcrunch.com/2022/05/11/mara- ... o-economy/

Introduction:

(TechCrunch) The use of cryptocurrency in sub-Saharan Africa, particularly among its young people, cannot be overstated. Data from blockchain intelligence firm Chainalysis says the region’s crypto usage grew 1,200% last year, making it the third-fastest growing cryptocurrency economy.

But despite the proliferation of local and foreign crypto exchanges and the introduction of novel models by up-and-coming web3 platforms, some observers believe there are still notable barriers to using crypto in Africa.

This reflection has led to new upstarts such as MARA, a pan-African crypto exchange platform that wants to “increase the number of Africans who can participate in the crypto economy.” Today, the startup is announcing that it has completed a seed round of $23 million in equity and token sale from multiple investors. They include high-profile crypto and web3 investors such as Coinbase Ventures, Alameda Research (FTX) and Distributed Global.

Other VCs in the round include TQ Ventures, DIGITAL, Nexo, Huobi Ventures, Day One Ventures and Infinite Capital and DAO Jones (investment DAO backed by Mike Shinoda, Steve Aoki and Disclosure), while about 100 other crypto investors participated too.

“We are pleased to partner with MARA as it embarks on building a digital financial system for Sub-Saharan Africa,” says Schuster Tanger, co-founder of TQ Ventures, one of the investors, in a statement. “With the right resources, this region has potential for mass adoption of cryptocurrency. To that end, the local knowledge and specialized skills of the MARA team is quite promising.”

[caltrek]

Crimes of the Future
by Lucas Matney, Anita Ramaswamy
June 5, 2022

Introduction:

(TechCrunch) The crypto space has been moving so quickly over the past couple years that builders have generally seemed to believe existing rules didn’t apply to them. Well, after years of snails’ pace legal action, it seems U.S. prosecutors are starting to feel it’s time to challenge that perception.

This week, the U.S. Attorney’s Office in the Southern District of New York arrested and filed charges against a former OpenSea executive who used his position to front-run NFT (Nonfungible Token) projects that were going to be listed on the home page of the marketplace. Members of the community discovered his actions by tracking his activity on public blockchains.
…
The arrest was pretty much a massive shock to people in the NFT space who generally believed that Nate Chastain had acted unethically but that it couldn’t be “insider trading” because NFTs weren’t securities. This is a framing that was held by many, including Chastain’s boss at OpenSea who fired him.

“I do think there was a misframing of it as insider trading. We don’t view NFTs as financial assets, so that does not apply. That’s a very specific term for a very specific thing,” OpenSea Devin Finzer told Decrypt in September.

There are an awful lot of people taking a very close reading of the SDNY press release, which states it specifically charged Chastain “with wire fraud and money laundering in connection with a scheme to commit insider trading in Non-Fungible Tokens.” They notably describe NFTs as “digital assets” later in the release.

Read more here: https://techcrunch.com/2022/06/05/the- ... to-world/

[funkervogt]

Here's an excerpt from an interview with Michael Saylor about the recent "shocks" to the global financial system that will impel people to adopt cryptocurrency (probably Bitcoin) as a reserve currency and investment. Basically, recent events have shown that the American government and other governments can't be trusted to manage currencies.

[weatheriscool]

Bitcoin plunges below $24,000 and the crypto meltdown claims another casualty
Source: CNN

Bitcoin and other cryptocurrencies plunged Monday, and two of the world’s biggest cryptocurrency platforms restricted activity as the market meltdown continued apace.

The Celsius Network, which has 1.7 million customers, said that “extreme market conditions” had forced it to temporarily halt all withdrawals, crypto swaps and transfers between accounts.

“We are taking this necessary action for the benefit of our entire community in order to stabilize liquidity and operations while we take steps to preserve and protect assets,” the company said in a blog post.

The UK-registered company has about $3.7 billion in assets, according to its website. It pays interest on cryptocurrency deposits, and loans them out to make a return.

Read more: https://www.cnn.com/2022/06/13/investin ... index.html

[wjfox]

New York Senate passes Bitcoin mining moratorium

Jun 3, 2022 - Economy & Business

The New York State Senate passed a two-year crypto mining moratorium bill that now moves to Gov. Kathy Hochul's desk.

Why it matters: New York State is home to some of the more onerous cryptocurrency regulations in the country, which some say will stifle a blossoming industry and send it (read jobs) elsewhere.

What's happening: The New York State Senate voted to pass the bill overnight that would establish a two-year moratorium on permitting new crypto mining that uses proof-of-work authentication methods using carbon-based fuel.

• It would also require an environmental impact study.
• Mining operations with existing permits would be grandfathered.

https://www.axios.com/2022/06/03/bitcoi ... york-state

[weatheriscool]

No let up in crypto slide as Celsius halt leaves investors 'panicking'
Source: Reuters

Cryptocurrencies tumbled afresh on Tuesday, with bitcoin and ether falling to new 18-month lows, after major cryptocurrency lending company Celsius Network's freezing of withdrawals delivered the latest jolt to investors in the asset-class.

Bitcoin fell as much as 7.2% to $20,816 its lowest since Dec. 2020, extending Monday's 15% plunge.

The world's largest cryptocurrency is down over 50% year to date and 28% since Friday.

No. 2 token ether lost as much as 10% to $1,075, its lowest since Jan 2021, and smaller tokens have taken even more of a battering.

Read more: https://www.reuters.com/technology/no-l ... 022-06-14/

[wjfox]

[weatheriscool]

Bitcoin drops below $20,000 as crypto meltdown continues
Source: CNN

The price of bitcoin breached $19,000 and ethereum fell below $1,000 Saturday morning, extending the brutal crypto bear market to new lows.

Bitcoin plunged nearly 10% in less than 24 hours, adding to a series of sustained losses over the last several months. It now sits below $20,000 for the first time since November 2020, down more than 70% from an all-time high of $68,000 per coin in November 2021. B itcoin has lost $900 billion in value since that peak.

...

This week, the Federal Reserve increased interest rates by 75 basis points, the largest hike since 1994. The change led to a retreat from all assets. The S&P 500 is also in a bear market and posted its worst week on record since 2020.

The crypto world is reeling from the $60 billion collapse last month of two other major tokens, Terra-Luna and Celsius. Those losses have increased doubts about the general stability of digital currency.

Read more: https://www.cnn.com/2022/06/18/investin ... index.html