Crypto Guides, Knowledge & Insights

How Cardano’s Hydra scaling solution beats the Bitcoin Lightning Network

Cardano founder Charles Hoskinson tweeted a link to the Hydra website on April 20. The website contains node installation instructions, a quick start guide, and demo content.　　Dubbed by Input Output (IO) as the “ultimate layer-2 scalability solution,” Hydra will improve the underlying performance of the chain to support growth and adoption via increased capacity.　　Whats more, the launch of Hydra will add a new dimension to Cardano, similar to the Lightning Network for Bitcoin — except better, according to Hoskinson.What is Hydra？　　In December 2021, Haskell Dev Matthias Benkort tweeted that Hydra is moving closer to testnet. Many assumed this meant a sooner than expected rollout for the scaling solution protocol.　　Fast forward to now, and it appears as though a final version will launch soon. Hydras launch means a scaling solution to maximize throughput, minimize latency, incur low to no costs in doing so, and significantly reduce storage requirements.　　It will achieve this by utilizing a process called isomorphic scaling, which works by processing transactions off the main chain while reserving the main chain as a secure settlement layer.　　Through isomorphic state channels, or heads, Cardano functions such as native assets, non-fungible tokens (NFTs), and Plutus scripting are all available within each head. Therefore,

2022-04-22Deep Dive

Crypto millionaires flock to El Salvador to invest in the Bitcoin City project

Crypto millionaires have been queuing to visit El Salvador, the only country that has made Bitcoin (BTC) legal tender thus far. While El Salvador allows its citizens to use BTC for everyday purchases, this is not the main attraction behind the growing number of tourists to the central American territory.　　The crypto tourists seek to weigh the potential of investing in Bitcoin City. President Nayib Bukele announced plans to build the city in November 2021. At the time, he said the country would issue BTC bonds to finance the development of the city, which will sit at the base of the Conchagua stratovolcano.　　His plans for the city involve tapping geothermal energy from the stratovolcanic mountain and using it to mine BTC. Notably, BTC will be the citys currency, and residents will only have to pay taxes for goods and services. The government shared a rendering of the city, which will be a circular urban area with a B-shaped central plaza.　　With such ambitious plans and promises, it is no wonder that crypto proponents are making their way to El Salvador. If built, Bitcoin City would qualify as the perfect utopia for crypto adopters, who are big on creating crypto-friendly jurisdictions with flexible

2022-04-22Deep Dive

Bank of England Urges Banks to Fund Bigger Scrutiny of Crypto

Bloomberg has reported that the central bank of Englands (BOE) Prudental Regulation Authority intends to raise funds from local commercial banks in order to sponsor the hiring of more staff to oversee the crypto market and businesses operating in it.　　“Britains banking regulator will tap the lenders it oversees for funds to help it increase oversight of the growing crypto market.”— Bloomberg Crypto　　The financial regulator wants to hire an extra hundred people, the source says, and it needs $419 million for that (321 million pounds sterling). It plans to raise the money this year through February of next year. That would be 8% more than it raised in 2021.　　The regulator plans to set up a framework for crypto assets that would be used internationally. Please download WikiBit for more blockchain news.　　The BOE has certain concerns that the crypto market, now valued at $1.7 trillion, keeps expanding and is already big enough to disrupt the traditional financial system in hard times. Besides, the regulator intends to keep working on a regulatory basis for stablecoins.　　Presently, the valuation of the crypto market comprises only 0.4% of the $469 trillion value of the worlds financial system. However, in the BOE, they believe that the digital

2022-04-22Deep Dive

Australian Regulators Reveal Crypto Policy Roadmap

The Australian Prudential Regulation Authority (APRA) has published a regulatory roadmap for cryptocurrency assets.　　Australian Crypto Policy　　Australia may be implementing new cryptocurrency regulations over the next few years, according to the Australian Prudential Regulation Authority.　　APRA, a regulatory authority that ensures Australian financial institutions maintain certain liquidity standards, among other requirements, has put forward a proposed framework for cryptocurrency regulation in a public letter published Apr. 21.　　APRAs proposed framework covers at least three areas of business. First, APRA will develop requirements for authorized deposit-taking institutions (ADIs)—such as banks—that wish to work with cryptocurrency. Consultations will begin in 2023, while the regulations themselves are set to take effect in 2025.　　APRA will also put forward requirements for operational risk management related to both cryptocurrency and other business operations. Consultation for these regulations will begin in mid-2022; the regulations themselves will come into force in 2024.　　Finally, APRA will consider regulations for stablecoins that will treat the technology similar to stored-value facilities (SVFs) such as prepaid cards. Consultation in this area will begin in 2023, while the regulations are set to take effect in 2025.　　APRA noted that although cryptocurrency activity in Australia is limited compared to other countries, “the potential scale and risks of such activities

2022-04-22Deep Dive

IMF Warns That Crypto Mining Could Aid Countries Hit by Sanctions

Nations like Russia and Iran may utilize cryptocurrency mining to monetize their energy resources and circumvent sanctions, the International Monetary Fund predicts in a report. Repercussions of the war in Ukraine continue to reverberate globally and cryptoization is one of the effects, the IMF says.　　War, Sanctions Lead to Wider Spread of Crypto Assets, Report Indicates　　The consequences of the ongoing military conflict in Ukraine will test the resiliency of the global financial system, may affect the role of the U.S. dollar, and lead to the establishment of blocs of central bank digital currencies, the IMF warns in its Global Financial Stability Report, April 2022. Energy security priorities may put climate transition goals at risk, according to the document.　　Accelerated “cryptoization,” with wider use of crypto assets in emerging markets, is another issue policymakers will have to address in the coming years. As proof of that trend, the IMF points to a spike in crypto trading volumes after the introduction of sanctions, including financial penalties, against Russia over its invasion of Ukraine. The report emphasizes:　　“This is occurring against a longer-term increase in such cross-border transactions, bringing to the fore the challenges of applying capital flow measures and sanctions.”　　Capital restrictions imposed in both countries

2022-04-21Deep Dive

GensoKishi Metaverse secures KuCoin listing, launches ROND whitelist competition

GensoKishi Metaverse (MV) is now listed on KuCoin with a USDT pair and will begin trading starting April 20. The metaverse company is conducting giveaways and a private sale to celebrate the launch.　　The Japanese 3DMMORPG launched a new whitelist competition for a $10,000 private sale of its in-game currency ROND, which can only be acquired via staking MV. The company said it decided to hold another private sale due to high demand from the community.　　ROND constitutes the in-game economy, while the MV token can be used for accessing exclusive games and events within the gaming Metaverse and unlocking discounted prices for in-game items.　　GensoKishi’s MV token is also listed on Singapore-based crypto exchange ByBit since late January. The token had a market cap of roughly $93 million at press time.　　GensoKishi is the GameFi and metaverse “incarnation” of the popular video game IP called Elemental Knights, which has a 14-year history in the gaming industry. The Polygon blockchain powers the GensoKishi metaverse.GensoKishi NFTs　　GensoKishi recently tapped famed Final Fantasy artist and character designer Yoshitaka Amano to design various aspects of its metaverse, including the company’s logo.　　Amano will also play a part in character design, concept art for cosplay NFTs, and a new NFT

2022-04-21Deep Dive

Sanctioned Russia, Iran May Turn to Crypto Mining to Monetize Energy, IMF Says

War, Sanctions Lead to Wider Spread of Crypto Assets, Report Indicates　　The consequences of the ongoing military conflict in Ukraine will test the resiliency of the global financial system, may affect the role of the U.S. dollar, and lead to the establishment of blocs of central bank digital currencies, the IMF warns in its Global Financial Stability Report, April 2022. Energy security priorities may put climate transition goals at risk, according to the document.　　Accelerated “cryptoization,” with wider use of crypto assets in emerging markets, is another issue policymakers will have to address in the coming years. As proof of that trend, the IMF points to a spike in crypto trading volumes after the introduction of sanctions, including financial penalties, against Russia over its invasion of Ukraine. The report emphasizes:　　This is occurring against a longer-term increase in such cross-border transactions, bringing to the fore the challenges of applying capital flow measures and sanctions.　　Capital restrictions imposed in both countries have also contributed to the increase, the IMF notes. At the same time, “liquidity in the ruble and hryvnia trading pairs in centralized exchanges remains limited and has even declined more recently in the case of ruble,” the authors remark. In their opinion, this

2022-04-21Deep Dive

U.S. Treasury Sanctions Russian Crypto Miners

The U.S. Treasurys Office of Foreign Asset Control (OFAC) has placed sanctions on a Russian crypto mining firm and its subsidiaries for the first time.　　Treasury Targets Russia Crypto Mining　　In a statement, the Treasury said that the sanctioned crypto mining companies “help Russia monetize its natural resources.”　　It added that despite Russias strong crypto mining industry, its companies “rely on imported computer equipment and fiat payments” and thus can be sanctioned effectively. It noted that this is the first first time that it has sanctioned a crypto mining firm.　　BitRiver and 10 of its subsidiary companies are affected by the sanctions. Though BitRiver is now owned by a Switzerland-based holding company, it was originally founded in Russia and still has three offices operating out of Russia.　　The sanctions against BitRiver are part of a list of approximately 80 sanctions against companies and individuals published on Apr. 20. Most of these sanctioned entities are not related to crypto and blockchain, but many are related to banking and finance.　　Prior to todays sanctions, Russia had an advantage in crypto mining due to its plentiful energy and cold climate, which together allow for efficient crypto mining. According to Statista, Russia performed 11.23% of all Bitcoin mining worldwide in

2022-04-21Deep Dive

India’s Finance Minister says crypto could be used for illicit activities

Indias Minister of Finance, Nirmala Sitharaman, believes crypto can help facilitate terrorist financing and money laundering. She said this during the G20 Finance Ministers meeting and the Central Bank Governor Meeting (FMCBG) Spring Meetings in Washington DC.　　Sitharaman participated in the Money at a Crossroad panel discussion hosted by Kristalina Georgieva, IMFs Managing Director. She pointed out that Digital Money will inevitably play a significant role.　　Talking about cryptos ability to facilitate illicit activities, she said,　　“I think the biggest risk for all countries across the board will be the money laundering aspect and also the aspect of currency being used for financing terror.”　　Sitharaman added,　　“I think regulation using technology is the only answer. Regulation using technology will have to be so adept, that it has to be not behind the curve, but be sure that it is on the top of it. And thats not possible. If any one country thinks that it can handle it. It has to be across the board.”　　According to her, the Indian government has been ramping up efforts to build the countrys digital infrastructure, especially after the COVID-19 pandemic resulted in a sharp uptick in the digital adoption rate.　　She cited data from 2019, which shows the digital adoption

2022-04-21Deep Dive

Cannabis Company to raise funds by selling equity via Crypto

Global Cannabis Capital, a fund that invests in Latin American cannabis companies, is planning to raise funds to expand with the sale of security tokens to private investors. 　　As Cannabis users around the world light up to celebrate 420, a different campaign to help future investment in the industry is gathering momentum with crypto tokens. 　　GCC is planning to raise more capital with crypto tokens rather than the traditional offering of shares, as reported on Bloomberg on April 18. 　　The reports stated that the company is about to sell tokens on the Ethereum blockchain. Unlike most cryptocurrencies, the tokens in these offerings are backed by the assets or equity of the issuer. 　　This token offering could set a new precedent for other cannabis companies, particularly those based in countries with limitations on banks supporting marijuana-related businesses (MRBs). 　　“The tokenization route provided us a significantly more efficient option than the traditional IPO process. Both in terms of time and costs. The cannabis industry will grow exponentially over the next year, so from our perspective timing is everything.” said Chief Executive Officer Andres Israel to CryptoSlate.　　He continued saying,　　“With tokenization, we can reach thousands of investors in a short period of time. And

2022-04-21Deep Dive

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