Crypto Guides, Knowledge & Insights

Bank Of England Governor Bullish On Blockchain Technology, Not Crypto

Central banks have released more and more statements on crypto following the Terra ecosystem debacle. For example, recent statements from the Bank of England (BoE) Governor Andrew Bailey reveal that the official thinks very little of cryptocurrencies.　　Bailey Remains Opposed To Crypto　　On Monday, BoE governor Andrew Bailey speaking on the Jobs of the Future podcast, hosted by a former adviser to the Prime Minister on business Jimmy McLoughlin, expressed skepticism on the value of crypto. According to the official, cryptocurrencies could not serve as practical means of payment.　　Bailey believes that digital assets have no “intrinsic value,” noting that their value was purely extrinsic. Furthermore, trying to explain why cryptocurrencies are in high demand, the official said, “people collect all sorts of things.”　　It is not the first time Bailey has dumped on the nascent market. In April, the BoE governor expressed that crypto was mainly a tool for criminals. Notably, this narrative remains despite reports from the US Treasury showing that illicit activity represented only a tiny part of the crypto market, and cash remains the number one choice for criminals.　　Baileys statements follow those of European Central Bank (ECB) president Christine Lagarde who said that crypto assets had no value. “My very

2022-05-31Deep Dive

Elon Musk obtains license to launch his Starlink network in Nigeria and Mozambique

By: Damian Okonkwo　　Elon Musk - the South African-born billionaire, also reputed as the worlds richest man, has finalized plans to launch his satellite Internet service known as Starlink in Nigeria and will further extend this service to Mozambique.　　This development was verified by the Nigerian Communications Commission through a public statement. According to NCC, the company had been given two licenses to begin operations in Nigeria such as “the International Gateway license and Internet Service Provider license, and will be trading as Starlink Internet Services Nigeria Ltd.” The commission further explained that the International Gateway license is valid for the next 10-year while the ISP license remains valid for the next 5-years. The two licenses are dated to take effect this month of May 2022 and are subject to renewal after expiration.　　Musk probably, due to his African citizenship and love for Africa had considered it essential to take his internet services first to the giant country of Africa before taking it to other African countries including Mozambique which is the second country mentioned in his tweet.　　This development comes just a few days after Musk promised Nigerian Twitter users not to worry that his satellite service would spread to Africa also.　　Henceforth, the

2022-05-30Deep Dive

Are Stablecoins Really Stable?

Stablecoins are designed to maintain a steady value throughout a transaction. However, the collapse of Terra has cast doubt on the future of all stablecoins. After depegging its value, it crashed to a record low of around $0.20 from $1.　　USDC is Overtaking USDT　　According to data by Coinmarketcap, stablecoins have traded between $0.95 and $1 during the week. Despite the industrys negativity, BUSD and USDC have still managed to hold the $1 mark.　　There has been a shift in the thinking of some of the most prominent crypto investors, such as whales. The USD coin has become the preferred stablecoin on the Ethereum blockchain, according to Coinmetrics.　　The biggest cryptocurrency holders are the whales, deep-pocketed individuals who can move large sums of money in the market. These individuals closely monitor the movements in the market and anticipate significant price changes.　　According to data from blockchain analysis firm, CoinMetrics, the number of wallets that have more than $1 million in USDC is greater than the number of wallets that have USDT in their wallets.　　A Shift in Preference　　According to Edward Moya, a senior market analyst at Oanda, the USD is the preferred stablecoin among investors too. He noted that due to the current market conditions, people

2022-05-30Deep Dive

Could Quantum Computers Defeat Bitcoin? Not So Fast.

One of the most overlooked problems of blockchain systems is their ability to resist the fast-evolving machines known as quantum computers.　　These powerful computers use quantum physics to solve complex problems that are beyond the reach of traditional devices by using qubits—an evolution of the classic binary bit. Qubits are able to represent the value 1 or 0 at the same time, which promises to deliver an exponential increase of computing power.　　The worlds top superpowers are pouring billions of dollars into the development of this technology—and for good reason. The first nation or company to harness quantum computing will be poised to crack the encryption protecting rivals sensitive documents.　　In the case of blockchain systems, the cryptography protecting their tamper-proof ledgers may be at risk. Researchers at the University of Sussex estimated in February that a quantum computer with 1.9 billion qubits could essentially crack the encryption safeguarding Bitcoin within a mere 10 minutes. Just 13 million qubits could do the job in about a day.　　Fortunately, the ability to deploy quantum computers with so many qubits still seems many years away. IBM unveiled its 127-qubit processor just last year, while a unit sporting 1,000 qubits is set to be completed by the

2022-05-30Deep Dive

Nike’s RTFKT Buys ‘DotSwoosh’ Ethereum Domain Name For $35K

RTFKT, Nikes Web3 arm, now owns 10 Ethereum Name Service (ENS) domains following the purchase of dotswoosh.eth for 19.72 ETH, roughly $35,000. RTFKT is pronounced “artifact.” 　　Nikes exact reason for the dotswoosh purchase on Friday remains unclear. But as some have pointed out on Twitter, Nike may have plans to use the domain for issuing ENS subdomains in the future. ENS subdomains are controlled by the main domain name holder.　　For example, Nike could allow holders of specific NFTs or other assets the ability to register an ENS subdomain under dotswoosh.eth (kate.dotswoosh.eth would be one such example).　　Graphic designer Carolyn Davidson created Nike‘s iconic swoosh logo back in 1971 and was reportedly only paid $35 for her work. So Nike’s 19.72 ETH purchase price may be a nod to the year 1972, which was when Davidsons swoosh logo first appeared on shoes.　　RTFKT now owns 10 ENS domain names. Image: OpenSea.　　In addition to dotswoosh.eth, RTFKT also owns artifacts.eth, rtfkt.eth, skinvial.eth, drmos.eth, mintvial.eth, dreamos.eth, spacedrip.eth, dripcoin.eth, and m2tekno.eth.　　Nikes ENS plays do appear to be a part of a larger strategy based on its current holdings. The Mint Vial is likely a reference to the CloneX Mint Vial Ethereum NFTs, which can be burned to

2022-05-30Deep Dive

Will Ethereum Layer-2 chains survive after The Merge?

Ethereum is finally moving to proof-of-stake this year, and with that, the aim is to:　　“Ultimately address some of the gas fee issues.”　　One of the primary methods to reduce gas fees are layer-2 solutions. Chains such as Polygon process over 3 million transactions per day and have hundreds of millions of addresses.　　The question is, will layer-2 networks like Optimism, Boba Network, Arbitrum One, and Polygon be viable after The Merge？ We spoke to various web3 founders to get their perspectives on the most significant event in crypto history.Layer-2 solutions　　Layer-2 networks work on top of the Ethereum network, referred to as Layer-1. There are several types of Layer-2 protocols. Essentially, layer-2s independently process transactions to complete more transactions per second with lower gas fees; the transactions are then registered in the Ethereum blockchain at a later time.　　If Ethereums move to proof-of-stake achieves its goal of addressing gas fees and transaction volume, then the need for layer-2s becomes reduced. Additionally, the move to proof-of-stake comes with the potential to improve the mechanism for securing the network. Founder of Ethereum, Vitalik Buterin, argued that proof-of-stake offers:　　“Greater efficiency and their better ability to handle and recover from attacks.”Post-merge scaling solutions　　The increased efficiency of Ethereum may

2022-05-30Deep Dive

Circle CEO Believes Crypto Crash Could Speed Up Regulations

The past weeks were a very turbulent one for the crypto markets as all witnessed the crash of the Terra ecosystem amid a market-wide correction. Consequently, Circle CEO Jeremy Allaire has said that recent events will speed up crypto regulations.　　Market Crash Will Speed Up Regulations　　Speaking with Yahoo Finance Live on Monday, Jeremy Allaire, CEO of blockchain peer-to-peer payments solutions firm and issuers of USDC stablecoin Circle, discussing the market crash, said he expected the recent happenings to push lawmakers to create regulations for the crypto markets. Allaire said:　　“When you have a major blowup, its certainly going to accelerate the need for Congress to act and establish some perimeters around who and what is involved in operating a dollar stablecoin in the United States of America.”　　Terra and its algorithmic stablecoin TerraUSD (UST) grabbed headlines eclipsing even the overall market crash that saw Bitcoin drop to 2020 price levels in the past week. Notably, in just a matter of days, the once-promising stablecoin innovation came tumbling down, along with the LUNA token.　　Allaire, during the discussion, said the high yield offered to investors on Terras Anchor protocol was an indicator that the system was not sustainable. Notably, the first sign of UST losing

2022-05-30Deep Dive

India's Central Bank RBI to Adopt a 'Graded Approach' to Digital Currency Launch

India‘s central bank, the Reserve Bank of India (RBI), has proposed to adopt a “graded approach” to launching the country’s central bank digital currency (CBDC). The RBI also said it is exploring the pros and cons of introducing a digital rupee in India.　　RBI on the Upcoming Digital Rupee Launch　　The Reserve Bank of India released its annual report for 2021-22 Friday. Indias central bank digital currency (CBDC) is among the many topics discussed in the report.　　“The design of CBDC needs to be in conformity monetary policy, financial stability and efficient operations of currency and payment systems,” the report details, elaborating:　　The Reserve Bank proposes to adopt a graded approach to introduction of CBDC, going step by step through stages of proof of concept, pilots and the launch.　　In addition, the report reveals that the central bank “has been exploring the pros and cons of [the] introduction of CBDC in India.”　　The RBI further detailed that “the appropriate design elements of CBDCs that could be implemented with little, or no disruption are under examination.”　　India‘s Finance Minister Nirmala Sitharaman announced the central bank’s plan to launch a digital currency in February while presenting the Union Budget 2022-23.　　The RBI report concludes: An appropriate amendment to the RBI

2022-05-30Deep Dive

Bank of America CEO Dismisses Crypto

In a recent interview with Yahoo! Finance, Bank of America CEO Brian T. Moynihan stressed that the banking giant was in no rush to dip its toes into cryptocurrencies.　　“We are not missing on anything. We are driving payments through the roof,” Moynihan said.　　While recognizing cross-border payments as a legitimate use case for cryptocurrencies, Moynihan said that stringent regulation prevents it from engaging with the nascent asset class.　　Bank of America is limited to researching cryptocurrencies on the trading side, but it cannot go as far as managing customers accounts with digital assets. As reported earlier, the bank created its dedicated crypto research team last July.　　“They‘ve said ’You have to ask us before you do it, and by the way don‘t ask.’ It was basically the tone,” Moynihan commented on regulatory scrutiny.　　Moynihan underscored the fact that his bank has made significant progress in terms of digitalization:　　“So, the reality is that we run a payments business across our platform. It was trillions of dollars a day. And almost all of it digital.” Please download WikiBit for more blockchain news.　　According to Bank of America‘s most recent earnings call, digital channels 53% of the customers’ sales. Moynihan estimates that the bank has 54 million digital

2022-05-30Deep Dive

CFTC Will Beef Up Resources To Combat Crypto Fraud, Says Behnam

Crypto fraud and exploits have grown even more rampant in recent times. Consequently, the Commodity Futures Trading Commission (CFTC) Chair Rostin Behnam has said the commission would expand its resources to tackle these issues.　　Crypto Enforcement Now A Priority For Regulators　　CFTC chair Behnam has raised concerns about the rapid rise of crypto-related fraud in a recorded message for a Chainalysis conference on Wednesday. According to a report by The Wall Street Journal, Behnam has revealed that the CFTC will be increasing its efforts and resources in crypto enforcement.　　“Headlines about the loss of tens of millions of dollars in digital assets due to protocol exploits, phishing attacks, preying on vulnerable people, and other fraudulent and manipulative schemes have become far too common,” Behnam said.　　Notably, the CFTC has filed over 50 cases related to crypto enforcement since 2015. Behnam noted that over half of these cases were fraud-related, with 23 cases in the last fiscal year alone.　　Meanwhile, the CFTC is not the only financial regulatory body looking to increase enforcement. The SEC earlier this month nearly doubled its crypto enforcement unit with 20 new members. Please download WikiBit for more blockchain news.　　Furthermore, SEC chair Gary Gensler speaking before the House Appropriations Committee on

2022-05-30Deep Dive

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