This Week in Crypto #16
This week the crypto space encountered the demise of Web3 and the rise of Web5. What happened with Web4? Well, we don’t have all the answers.
The markets are still red, but this doesn’t mean that both regulators and the builders from within the ecosystem have stopped shaping the future of the blockchain. Thorchain continues on the path that leads to its mainnet, and the UK joins the club of western countries that want to become a beacon of good practices regarding crypto regulation.
Paypal and Crypto
Let’s start with some great news that will bring the traditional world of finance closer to the emerging crypto markets. PayPal’s CEO, Jose Fernandez da Ponte, has announced that PayPal has plans to allow users to withdraw their crypto assets from their app into third-party wallets. And this is no heat-of-the-moment decision, as PayPal has been working on these plans since 2021, says Jose.
This comes as no major surprise, as this feature has been the most frequently requested amongst paperless customers since its major debut in Crypto, which started in October 2020.
We’re excited to announce that PayPal will begin supporting the transfer of cryptocurrencies between PayPal and other wallets and exchanges. This feature is rolling out to all eligible US customers in the coming weeks. Learn more: https://t.co/PelvFv7eRW pic.twitter.com/YkzPOV7teq
— PayPal (@PayPal) June 7, 2022
At approximately 16:30 UTC on Wednesday, June 1, Solana’s Mainnet Beta cluster ceased producing blocks due to stalled consensus caused by a bug in the durable nonce transactions feature. Over the next four and a half hours, validator operators worked to identify the point of furthest progress and collectively instituted a restart of the network, which resulted in durable nonce transactions being temporarily disabled. Block production resumed at 21:00 UTC the same day, and network operators continued to restore client services over the next several hours.
Are those outages an inherent part of the innovation process? Are they unpardonable blunders? what do you think?
On June 1st, Solana's Mainnet Beta cluster suffered a four and a half hour outage caused by a bug in the durable nonce transactions feature, which resulted in stalled consensus. Read the full report belowhttps://t.co/1r3vGXnYrB
— Solana Status (@SolanaStatus) June 5, 2022
Thorchain, the network that aims to provide decentralized liquidity via its THORNodes, has its mainnet release imminent. The leading crypto exchanges are already preparing. We have seen the likes of exchanges like Binance and FTX give us details of how they plan to adapt to the launch.
The mainnet is set to release in 2022 and is bound to replace the ChaosNet era. The main difference is that after the mainnet release, the network will be fully self-sustained, and the admin keys will be removed.
As you can see, disregarding the ecosystem, the crypto space is continuing the building spree unhinged by the evolution of the market.
— Binance (@binance) June 2, 2022
BAYC discord was exploited again 200eth stolen
Probably the key term in this news is “again”. It seems that putting together Discord and crypto, especially NFTs, results in an explosive mix. With each new exploit, it becomes more apparent that a new social platform for crypto interactions should become a reality as soon as possible. Still, we have to acknowledge that usually, the Discord hack itself would be harmless if it were not for the greed that urges crypto users to “ape in” every “alpha”, an attitude that was catered by many crypto projects that enforced “first came, first served” philosophy.
To summarize: we will continue to see those kinds of exploits and fund losses until the crypto space transitions to both new social platforms and new ethics.
Our Discord servers were briefly exploited today. The team caught and addressed it quickly. About 200 ETH worth of NFTs appear to have been impacted. We are still investigating, but if you were impacted, email us at [email protected]
— Bored Ape Yacht Club (@BoredApeYC) June 4, 2022
Web3 is old news; prepare for Web5
At least, according to Jack Dorsey, the founder and former CEO of Twitter. Jack is known as one of the supporters of decentralization, and his posts are treated with interest by the crypto community. Now he announced the schism from the notion of Web3 through his Bitcoin-focused venture called TDB. TDB released a new approach on how to construct a decentralized internet, and they call it Web5.
Still, is the proposed approach that new? It will rely on three key elements: Decentralised Identifiers (DIDs), Decentralised Web Nodes, and Self Sovereign Identity Services, all glued together by Bitcoin’s security. If you take each component apart, you can not be struck by the fact that all are currently researched and developed by numerous ecosystems. Countless projects tend to create in one way or another DIDs, focused on a specific network or cross-chain, decentralized web nodes represent basically the backbone of Web3 and Sovereign Identity Services looks way too similar to Vitalik’s SBTs. To be honest, the TBDs approach fits perfectly in the Web3 narrative. Yes, maybe it is more coherent than others, but at the end of the day, the main difference seems to be more at a semantic level.
TBD’s Web5 takes a different approach than Web3 on how to build a properly decentralized internet, with #Bitcoin being the single blockchain used in the project.@namcios reports:https://t.co/cqEJvQqoED
— Bitcoin Magazine (@BitcoinMagazine) June 10, 2022
Elon Musk and Twitter
The Twitter saga never ends. Elon Musk tries now to find ways to withdraw his takeover bid. He accuses the company of withholding data necessary in the due diligence process, more specifically data regarding the number of actual platform users, as opposed to the number of bot accounts. Twitter considers that only 5% of the accounts are bots while there are voices that consider that bots represent up to 20% of the total accounts.
JUST IN: Elon Musk says he will withdraw Twitter takeover bid, accuses the platform of "material breach" for withholding data.
— CryptoWhale (@CryptoWhale) June 6, 2022
The entire debate was reflected in a sudden plunge in the Twitter stocks. Even if it’s still unclear if this is just part of a renegotiation strategy on Musk’s part to be able to buy the platform at a discounted price, it is certain that it fuels volatility and doubt about the future of Twiter.
Twitter Responds To Musk's Deal-Threats Over Fake Accounts Disclosure https://t.co/6Ja7ymEs5K
— zerohedge (@zerohedge) June 6, 2022
While crypto is plunging, regulation is being drafted
In a more paradoxical twist, it appears that regulators are true believers in the future of crypto, and they are convinced that this technology is here to stay. Probably are even more convinced than the market itself, which gives signs of capitulation. Why are we stating this? Because all the significant regulatory bodies from the western world are drafting undisturbed the legal framework for the future crypto space. This time was UK’s turn to brag about how they desire to become a “global hub for crypto”.
NEWS: 🇬🇧UK Finance Ministry aim to make the country a "global hub for crypto"https://t.co/dUBjQusnUm
— Mara (@TheMARAverse) June 10, 2022