Crypto Guides, Knowledge & Insights

Columbia Uni professor heads up a16z's new crypto research unit

Following his appointment as head of research, Tim Roughgarden stated that a16zs funding into crypto research will grow by “many multiples of the next couple of years.”　　Theoretical computer scientist and Columbia University professor Tim Roughgarden has been appointed the head of Andreessen Horowitzs (a16z) new crypto research unit.　　Roughgardens resume includes more than three years as a professor of computer science at Columbia University in New York, along with a 14-year stint at Stanford. He has also served as a research partner at a16z since February last year.　　a16z is one of the most active venture capital firms in crypto, with its funds reportedly worth around $9 billion. Partly guided by the firms new unit which was announced earlier today, Roughgarden has stated that its funding into crypto research will grow by “many multiples of the next couple of years.”　　“Were currently in a particular moment in time, witnessing a new multidisciplinary field (spurred by web3) blossom before our eyes. There are enormous opportunities to shape this field through research and education.”　　8/ As a research lab within a VC firm, a16z crypto research represents a new funding model for basic research—one that seems obvious in hindsight (with the long-term focus necessary for fundamental

2022-04-22Deep Dive

Russian Tax Body Suggests Allowing Crypto Pay in Trade Deals, Digital Ruble May Be Ready by 2023

The Russian tax agency reportedly wants to allow companies involved in cross-border trade to accept crypto as a form of payment – and pay foreign exporters in cryptoassets. And the Central Bank has claimed that its digital ruble could be ready as soon as next year.　　Izvestia claimed it had seen written comments submitted by the Federal Tax Service (FNS) in response to the Ministry of Finance‘s draft crypto law – which suggests regulating the industry, placing caps on retail investors’ annual spending on crypto, and policing (as well as taxing) miners.　　Per the report, the FNS suggested that a legal exception be made to a key provision in the draft law, which would outlaw the use of crypto to pay for goods and services. But the FNS suggested that businesses be exempted from the law and added the following draft clause:　　“Legal entities will be allowed to pay for goods, work, services under foreign trade contracts and receive proceeds from foreign entities in digital currencies.”　　“Digital currencies” is just one of the many umbrella terms used by Russian ministries and lawmakers to refer to cryptoassets.　　The report claimed that the Ministry of Finance “partially supports” the proposal, and has indicated that it would require

2022-04-22Deep Dive

EU officials considered Bitcoin trading ban to enforce proposed mining ban

Previously unseen documents detailing the EUs conversations around banning Bitcoin have come to light following a freedom of information request.　　European Union (EU) officials discussed banning Bitcoin trading during a debate on a proposal to ban Proof of Work mining according to documents obtained through a freedom of information request.　　According to a report, published by German digital culture organization Netzpolitik, officials from the EU went as far as suggesting that an all out ban on trading Bitcoin (BTC) should be enforced in order to curb its overall energy consumption.　　The most worrying comments from the crypto community‘s perspective came from a document that detailed the minutes from an EU meeting with Sweden’s financial supervisor and an environmental protection agency in which officials suggested that regulators pressure the Bitcoin community to switch to a Proof of Stake (PoS) mechanism, instead of its current energy-intensive Proof of Work (PoW) mechanism. A unidentified official in the discussion said:　　“Ethereum started moving [to PoS] because of its community…if Ethereum is able to shift, we could legitimately request the same from BTC. We need to ‘protect’ other crypto coins that are sustainable. We don‘t see [the] need to ’protect the Bitcoin community.”　　Another unnamed speaker suggested that the EU

2022-04-22Deep Dive

5 emerging Metaverse, NFT trends to watch out for in 2022

The metaverse and NFTs have influenced the digital world as well as industries spanning from art to gaming to even investing. However, these industries have yet to attain their full potential.　　Twitter, Meta, and Reddit are all working on NFT or Metaverse projects, investors are betting big on NFTs, and new companies are cropping up.　　So, how do the metaverse and NFTs‘ future look？ What industry will they disrupt next？ And what developments will define the next few years？ Let’s look at five emerging trends within the metaverse and NFT spaces.1. Augmented Reality　　Augmented Reality (AR) will reduce entry barriers into the metaverse because AR-compatible devices are cheaper to acquire and use. Anyone can use their smartphone to access AR features. One example is Pokemon GO which had over 1.1 million cumulative app downloads in 2020.　　Augmented reality is currently in its early stages, but it will mature in the future years. It is a novel method that will bring value to daily life. The worldwide augmented reality industry is estimated to expand in the following years, with a market valuation of up to $300 billion by 2024.　　Several businesses are developing augmented reality (AR) solutions for their clients. Apple, for example, is working on

2022-04-22Deep Dive

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

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