Category Archives: Smart Contracts
IOTA to Have One More Stablecoin: What is USPlus? – U.Today
Vladislav Sopov
DeFi ecosystem of veteran blockchain network IOTA keeps gaining traction as Fluent Finance announces launch of USPLUS stablecoin
With the new integration, users of USPLus will be able to redeem their stablecoins on new blockchains. This is one of the first on-chain stablecoin releases for IOTA and its associated smart contracts platform Shimmer.
Fluent Finance, a decentralized finance platform, announced yesterday, Oct. 13, 2023, that it was set to roll out smart contracts on IOTA and Shimmer blockchains. The release of the USPlus stablecoin, a USD-pegged cryptocurrency backed by fiat, is the primary goal of its integration.
Platform representatives stressed that the launch on the IOTA ecosystem is of paramount importance for Fluent Finance's vision and massive adoption of its stablecoin product:
Fluent is pleased to be (...) joining forces with a robust community of bright innovators
Also, the team expressed excitement about the features of IOTA as a technical platform, including its innovative design of blockchain consensus and Tangle's gasless digital ID functionality.
Fluent Finance appreciated the role of the Tangle community in "getting the wheels turning" during the procedure of USPlus deployment.
USPlus, a USD-pegged stablecoin by Fluent Finance, can be obtained on the Bitrue centralized exchange as well as on Ethereum-, Celo-, and Arbitrum-based versions of the Uniswap v3 decentralized exchange platform and DeFi on XDC Network, an Ethereum (ETH) fork.
As covered by U.Today previously, last September, Shimmer launched an EVM-compatible smart contracts platform for dApps.
The team of Fluent Finance is considering further collaborating with the IOTA blockchain and its community.
The product is focused on building deposit tokens, stable-valued, regulatory-compliant digital assets interoperable with core banking systems. Through the solutions by Fluent Finance, banks will be able to issue their own digital currencies and interact with government-backed CBDCs.
Its USPlus stablecoin's 1:1 peg to U.S. dollar can be tracked via banking APIs for the maximum level of transparency in Web3.
About the author
Vladislav Sopov
Blockchain Analyst & Writer with scientific background. 6+ years in IT-analytics, 3+ years in blockchain.
Worked in independent analysis as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)
Read more from the original source:
On-Chain Tracker Notices Major Difference Between Bitcoin And … – NewsBTC
As earlier reported, Bitcoin holders have steadily held on to their coins in the past few months. Bitcoin whales, in particular, seem to be doubling despite the current uncertainty in Bitcoins future projection. Long-term holders add an average of 50,000 BTC to their wallets every month, as indicated by the HODLer Net Position Change indicator provided by Glassnode.
On the other hand, whales of Ethereum, the second largest crypto in the world, appear to be on a different trajectory. On-chain data has shown that while Bitcoin whales hoard their coins, Ethereum whales appear to be dumping their holdings in recent years.
Bitcoin whales, meaning the largest holders with 1000 BTC or greater, have been steadily accumulating more BTC since 2018, according to data from on-chain analytics firms. However, there have been sell-offs, either through extended bear markets or during profit-taking after a strong bullish uptrend.
A research analyst for Cryptoslate named James Straten posted on social media that Ethereum whales with more than 1,000 ETH have been selling since the same period. While sharing a Glassnode chart, he shared a correlation between the whales of the blockchains.
On-chain data shows ETH whales have offloaded 20 million ETH since 2022, with 12 million ETH being sold off this year alone.
The story these on-chain metrics tell provides insight into the prevailing mood among large crypto holders of different blockchains.
Although the amount of ETH held by whales might indicate they have sold or moved their funds to other cryptocurrencies, a better possibility is that these whales transferred their ETH into Ethereum smart contracts. Since Ethereum version 2.0 kickstarted its journey in December 2020, the number of tokens in the staking protocol has grown significantly.
ETH 2.0 requires validators to stake 32 ETH in its deposit contract to validate transactions on the Ethereum blockchain. At the moment, the contract now has 31.2 million ETH worth $48.6 billion locked. This seems consistent with on-chain data, which shows that the percentage of supply tied in smart contracts overtook the supply in addresses holding 1000+ ETH in late 2020.
Crypto research analyst Andr Dragosch shared this correlation on social media platform X. The correlation buttresses that the Glassnode data doesnt consider the ETH tied in smart contracts for its whale supply metric.
With a domination of 17.8% over the whole cryptocurrency market, the Ethereum blockchain continues to solidify its position as the undisputed leader of smart contracts. Unlike Bitcoin whales, bullish ETH whales are not just HODLing but employing techniques to maximize their crypto gains.
At the time of writing, ETH is trading at $1,557. However, a recently failed bullish pattern formation could send the price of ETH falling below $1,000.
Cover image from Unsplash, chart from Tradingview
Read the original post:
On-Chain Tracker Notices Major Difference Between Bitcoin And ... - NewsBTC
Coinbases security team has fought crypto hackers for a decade: Heres what has to change – Fortune
Philip Martin is an impressive guy. A veteran of the U.S. Army, where he spent years working on counterintelligence, he did stints at Amazon and Palantir before coming to Coinbase to lead its security operations. So his views on the crypto industrys horrendous hacking problems carry considerable weight.
I caught up with Martin last week, and asked him how the industry beset by hackers since the very beginning has evolved when it comes to security. He noted that, while fundamental principles remain the same, the rise of smart contracts has made the job considerably harder.
Today, we have these massive, immutable, interrelated smart contracts that are storing tens of billions of dollars. I equate it to whipping back to 1970 and asking a dev to write secure codethey would fail miserably, Martin observed. He added that, because building and accessing smart contracts is extremely easy, it has meant many core code libraries have gaping security holes.
Martin said it doesnt have to be this way, but many in the industry lack the incentives to build with security in mind. Coinbase, which has a strong track record on cyber defense, is trying to set an example with its new Base blockchainbuilding an open-source monitoring tool called Pessimism onto the chain itself. More broadly, Martin said, he hopes the crypto industry will imitate Microsoft, which famously switched to a security-by-design approach with the launch of Windows 7 in 2009.
The crypto industry may have no choice if it wants to grow and be taken seriously. I wrote recently about an embarrassing incident where a custody firm, ironically named Fortress, let itself get robbed, and how this was just the latest in a long series of sloppy behavior that has made crypto a byword for hacking. It doesnt help that the most formidable threats are not rogue individuals, but a nation-stateNorth Koreaand organized crime outfits in Eastern Europe. Little wonder companies are getting robbed every week.
The news isnt all bad, though. Martin noted correctly that smart contracts are barely five years old and that the basic building blocks of security to support them are still being built. Its also encouraging that big crypto companies that are fierce rivalsincluding Coinbase and Binanceregularly help each other when it comes to unmasking and stopping hackers.
But Martin said the industry needs to move faster and, in his words, act like grownups. He has that right. Each new breach is yet another blow to the industrys already battered reputation, and, if there is going to be another crypto boom, it will have to be built around a new ethos that values security as much as getting rich quick.
Jeff John Robertsjeff.roberts@fortune.com@jeffjohnroberts
FTXsformer CTO testified that Sam Bankman-Frieds hedge fund dipped into customer money as far back as 2019, and that the exchange lost or squandered $14 billion. (Fortune)
New rules from the U.K. financial regulator that impose a host of strict rules on crypto firms, including those outside the country, are now in effect. (Bloomberg)
A Swiss company is using Coinbases Base blockchain to create tokens that represent shares in a T-bill ETF, though they are only available outside the U.S. for regulatory reasons. (Blockworks)
Yuga Labs laid off an undisclosed number of U.S. employees as its CEO said the firm, best known for its Bored Apes brand, has pursued too many projects. (Decrypt)
A new research note from Bank of America says U.S. Treasuries have been oversolda situation that in the past has been a precursor to major volatility in crypto. (CoinDesk)
Its not fine:
Follow this link:
Coinbases security team has fought crypto hackers for a decade: Heres what has to change - Fortune
Redefining Crypto Standards with Bitcoin Spark, Avalanche, Stellar … – CryptoPotato
The crypto landscape has evolved significantly since the inception of Bitcoin (BTC). And market observers suggest Bitcoin Spark (BTCS), Avalanche (AVAX), Stellar (XLM), and Monero (XMR) are redefining crypto standards.
Avalanche is a blockchain platform that seeks to tackle the blockchain trilemma of scalability, security, and decentralization with its unique Proof of Stake (PoS) consensus mechanism.
Avalanche supports smart contracts and decentralized applications (dApps), utilizing the Solidity language used by Ethereum. This creates greater blockchain interoperability by integrating a number of decentralized finance (DeFi) ecosystems.
AVAX is the native token of the Avalanche network, and it powers transactions within the platform, serves as a medium for distributing system rewards, facilitates governance participation, and covers transaction fees.
Stellar is a blockchain that was created to facilitate fast and cost-effective cross-border payments and issuance of digital assets. It operates on a consensus algorithm known as the Stellar Consensus Protocol (SCP), which enables quick and secure transaction processing by a network of distributed nodes.
Stellars native cryptocurrency, Lumens (XLM), plays a pivotal role in the platforms ecosystem, serving as a bridge currency for facilitating transactions, preventing spam on the network, and supporting the creation of assets on the platform.
Monero is a fork of the Bytecoin blockchain that was launched in 2014. The blockchain was designed to provide users with enhanced privacy, making it nearly impossible to trace the sender, recipient, or transaction amount. It achieves this high level of privacy through advanced cryptographic techniques like ring signatures, stealth addresses, and confidential transactions.
As a result, Monero has gained popularity among users who prioritize privacy and anonymity when conducting digital transactions, making it one of the leading cryptocurrencies in the privacy coin category.
Bitcoin Spark is a new Bitcoin fork. It has gained notoriety in the crypto space for retaining Bitcoins fixed supply of 21 million coins while introducing a range of features and improvements that solve its limitations and bring forth a new age of digital transactions.
The Bitcoin Spark blockchain assures lightning-fast transactions and low gas fees with its short block time, high individual block transaction capacity, and extensive nodes. The blockchain also primes itself as a scalable platform for building and using diverse smart contracts and decentralized applications (DApps). It boasts a multiple-layered architecture with a seamlessly integrated smart contract layer, ensuring scalability. The smart contract layer includes separate execution systems that all reach finality on the main network, allowing developers to use a variety of programming languages, including Solidity, Vyper, and Rust.
Bitcoin Spark distinguishes itself with its groundbreaking consensus mechanism, the Proof-of-Process (PoP). The PoP requires users to provide processing power to the network in order to confirm blocks and earn rewards. However, the mechanism exponentially diminishes rewards per additional power, promoting a fairer system. This nonlinearity of rewards, combined with the networks massive nodes, allows even those with low-powered devices to participate in network validation, ensuring true decentralization.
Notably, the Bitcoin Spark application, which will serve as the networks native wallet, will also enable users to participate in network validation. The projects team has made notable steps to ensure the app is safe, easy to use, lightweight, and compatible with popular operating systems, including Windows, iOS, and Android.
The contributed power will be rented out as remote computing power through Bitcoin Spark, with payments required in BTCS. This gives rise to a new concept of decentralized CPU and GPU rental, helping institutions and individuals get additional computing resources while providing a new way to incentivize network validators, as they will receive 97% of the revenue generated in addition to newly minted BTCS and transaction fees from confirmed blocks.
Going further, the Bitcoin Spark application and website will have small spaces for community-policied ads, also paid for in BTCS. This integrates the decentralized ecosystem with the marketing industry, creating income for the participants and the team as they will share the revenue equally. Notably, those involved in policing the ads will also receive extra incentives for their efforts.
The massive investments made in Bitcoin Sparks ongoing Initial Coin Offering (ICO) suggest great belief in its prospects.
Bitcoin Spark (BTCS), Avalanche (AVAX), Stellar (XLM), and Monero (XMR) are attempting to redefine crypto standards, expanding what crypto and blockchain technology can achieve.
For more information on Bitcoin Spark and its ICO:
Website: https://bitcoinspark.org/
Buy BTCS: https://network.bitcoinspark.org/register
Disclaimer: The above article is sponsored content; its written by a third party. CryptoPotato doesnt endorse or assume responsibility for the content, advertising, products, quality, accuracy, or other materials on this page. Nothing in it should be construed as financial advice. Readers are strongly advised to verify the information independently and carefully before engaging with any company or project mentioned and do their own research. Investing in cryptocurrencies carries a risk of capital loss, and readers are also advised to consult a professional before making any decisions that may or may not be based on the above-sponsored content.
Readers are also advised to read CryptoPotatosfull disclaimer.
PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.
See more here:
Redefining Crypto Standards with Bitcoin Spark, Avalanche, Stellar ... - CryptoPotato
‘Tokenised’ assets could save markets $17b a year: RBA – The Australian Financial Review
These could come from reducing the cost of capital and transaction costs. The calculations are based on a fraction of the benefits which emerged when trading went electronic, the RBA said.
Estimated cost savings for Australian financial markets sit in the range of $1 billion to $4 billion per year. These could be created by tighter bid-ask spreads, reflecting higher trading volumes as tokenised assets are made available to a wider range of investors. There could also be gains from atomic (instant) settlement, such as for cross-border payments without needing to rely on corresponding banks. Savings could also come from lower collateral requirements, and reduced costs relating to failed settlements.
The numbers seem sufficiently large to us that, at a minimum, its worthy of further investigation, Mr Jones said.
Commonwealth Bank managing director of blockchain and digital assets Sophie Gilder said the RBAs estimates were very aligned to what were seeing in terms of the potential for cost savings. These would come from operational efficiencies and reduced levels of regulatory capital. Well get more and more refined in terms of understanding what those cost savings actually are, she said.
CBA is exploring use cases in debt capital markets. Ms Gilder said if digital currencies could be combined with tokenised assets to create instant settlement, that would produce some huge benefits.
David Lavecky, co-founder of Canvas Digital, said its focus was foreign exchange markets. It has been working alongside the RBA in one of its pilots to test a CBDC in Australia, known as the eAUD.
In some cases, it may be quicker to take cash out of the ATM, get on a flight and take it to another country rather than using your regular bank accounts, he said. Using a CBDC presents an entirely new way of doing foreign exchange. We were able to show that an hour-long process went down to seconds and became atomically settled across blockchains.
Mr Jones said in a world of tokenised real assets, the role of traditional financial intermediaries would evolve as market-making activity was reduced along with manual reconciliation of records.
He also pointed to various risks and challenges. One was regulatory uncertainty about compliance, such as who is accountable if smart contracts go awry and for anti-money laundering responsibilities.
Markets would need to be interoperable with traditional infrastructure for the foreseeable future to limiting fragmentation between assets traded across different venues, Mr Jones said. Trades, and even orders, would need to be prefunded, which could increase liquidity requirements for market participants.
The CBDC project has highlighted opportunities for a wholesale CBDC to act as a complement to, rather than substitute for, new forms of privately issued digital money, such as tokenised bank deposits and asset-backed stablecoins.
It is certainly plausible that stablecoins issued by well-regulated financial institutions and that are backed by high-quality assets (i.e. government securities and central bank reserves) could be widely used to settle tokenised transactions, Mr Jones said.
But it is more contestable whether this would be the case for stablecoins issued by institutions that currently sit outside the prudential regulatory perimeter, including non-bank financial institutions and technology companies.
Read more here:
'Tokenised' assets could save markets $17b a year: RBA - The Australian Financial Review
What is blockchain network congestion? – Cointelegraph
Blockchain network congestion, explained
Blockchain network congestion refers to a situation where the number of transactions exceeds the networks capacity, resulting in processing delays.
When there are more pending transactions than the network can handle, blockchain networks get congested. Limited block sizes and the length of time required to construct a new block are the causes of this issue.
Transactions are delayed, and users notice slower processing times when the volume of transactions exceeds the networks capacity to confirm them quickly. The release of BRC-20 tokens on the Bitcoin blockchain led to a rapid increase in transactions, resulting in Bitcoin network congestion.
Increased usage, high transaction volumes and events like initial coin offerings (ICOs) can strain the system and cause congestion. Users may choose to pay extra fees to have their transactions prioritized, which raises expenses even more during these busy periods. Moreover, transactions become more expensive and less efficient as a result of the congestion, which also affects the overall user experience.
However, blockchain networks are always working on ways to improve scalability, ensure smoother transactions, and reduce congestion-related problems, such as protocol updates and layer-2 scaling solutions. These initiatives are essential for widespread adoption because they increase the robustness and effectiveness of blockchain networks, even in times of heavy demand.
Efficient blockchain transaction processing is vital for enabling high throughput, low latency, reduced transaction fees and enhanced data security across various industries.
The widespread use and integration of blockchain technology into various industries depend on effective blockchain transaction processing. Scalability is one of its main advantages; it enables blockchain networks to manage a large volume of transactions quickly and concurrently.
Scalability has been a problem in conventional systems, but effective blockchain processing eliminates this problem, providing smooth operations even during periods of high usage. Additionally, by lowering latency and congestion, it improves network performance and enables real-time transaction validation and confirmation. Transaction fees are also reduced by efficient transaction processing, making blockchain technology more affordable for both private individuals and commercial enterprises.
Furthermore, effective blockchain processing ensures swift, safe and tamper-proof transactions in industries where data security is crucial, such as finance, healthcare and supply chain management. The speed at which blockchain can handle transactions will be a deciding factor in how quickly new technologies are developed and adopted.
Blockchain network congestion arises from factors such as high transaction volumes, increased adoption, DApps, ICOs and malicious activities, causing delays and higher fees in transaction processing.
The processing capacity of the blockchain network is strained by a number of issues, which cause delays and higher transaction fees. For instance, a large number of transactions that exceed the networks capacity can overwhelm the processing power, delaying confirmation of transactions.
Moreover, as blockchain technologies are more widely used, more individuals and companies make transactions, which increases network traffic. Decentralized applications (DApps), platforms for decentralized finance (DeFi) and the concurrent execution of smart contracts all place a considerable burden on the networks resources and cause congestion.
In addition, as investors participate in events like ICOs and token sales, the network is further clogged with transactions. Last but not least, malevolent actors can cause system disruption by sending a large number of low-value transactions, and physical restrictions in the network architecture, like poor internet connections, can obstruct the smooth flow of data and cause congestion problems.
In blockchain systems, network congestion can have serious repercussions for users, businesses and the general operation of decentralized applications.
One immediate consequence is delayed transaction confirmations. Services that depend on timely payments or transactions are affected when a network is crowded because transactions take longer to process. For instance, Ethereums network was severely congested during the CryptoKitties boom in late 2017, which led to delays in platform transactions.
Higher transaction fees are also a result of significant demand for transaction processing. Users frequently bid higher fees to speed up their transactions when there is congestion or a transaction backlog. Transactions may become more expensive as a result of the increase in fees, especially for smaller transactions. Due to the high demand for DeFi apps, the Ethereum network experienced congestion in 2021, which caused transaction costs to soar.
Additionally, the user experience of DApps is impacted by network congestion due to slow transaction processing. Prolonged congestion and a bad user experience may make users reluctant to interact with the DApp. Users who are frustrated or dissatisfied might abandon the platform completely, which would have an impact on the success of the DApp and its user base.
Also, developers may need to set aside more resources to boost the DApps performance when it is congested. This diversion of resources may have been used to improve user functionality or experience instead, delaying the development of the DApp as a whole.
Blockchain network congestion needs to be addressed with a diverse strategy that includes both short-term fixes and long-term scaling solutions.
Optimizing transaction fees is one such strategy. To prevent unnecessary bidding wars during congestion, users can set reasonable costs. Also, layer-2 solutions, like rollups for Ethereum and the Lightning Network for Bitcoin, can be implemented by developers to reduce the load on the primary blockchain by allowing some transactions to take place off-chain.
Furthermore, by increasing the number of transactions executed in each block and enhancing block propagation methods, throughput can be increased. Additionally, switching to proof-of-stake or other efficient consensus algorithms lowers the computational load, allowing blockchain networks to support more transactions.
As a crucial tactic to deal with blockchain network congestion, sharding, as implemented by the Ethereum blockchain, stands out. Each of the shards created by dividing the blockchain into smaller parts can operate independently to process transactions. The capacity of the network is greatly increased by this parallel processing, enabling numerous transactions to take place simultaneously.
Finally, encouraging DApp developers to improve their smart contracts and code can lessen the needless load on the network. Blockchain platforms can reduce traffic by combining various techniques, resulting in smooth transaction processing and improving the user experience.
More:
Japanese tokenized deposit network DCJPY to launch mid-2024 – Ledger Insights
Today DeCurret, the operator of Japanstokenized depositnetwork DCJPY, announcedplansto commercialize its offering in July 2024.Since 2020, a digital currency forum of over 100 Japanese institutions and enterprises have explored proofs of concept (PoCs) for various use cases. DeCurret raised$62 millionin funding in 2021, including backing from MUFG, SMBC and SBI Holdings. Mizuho Bank and Japan Post are also forum participants, meaning Japans big four banks are involved.
However, thereporton the DCJPY published today does not reference any corporate participants who have committed to launch on the network. It outlines several consumer oriented use cases, including retail in-store usage, to buynon fungible tokens, and consumercarbon credits. All of them have programmable money elements.
Separately, it announced the first concrete use case. It is partnering with the Internet Initiative Japan (IIJ) and GMO Aozora Net Bank, which will provide a digital currency. IIJ will join the Japan Electric Power Exchange (JEPX), allowing it to convert environmental values into digital tokens to be settled using DCJPY.
Work on DCJPY preceded Japansstablecoinlegislation. And two of the three stablecoin options involve banks. Commercial banks can issue stablecoins backed by deposits. And trust banks can hold reserves on behalf ofthird party stablecoin issuers. In contrast, DCJPY creates a network of interoperabletokenized deposits.
DeCurret Director Eijiro Katsu (formerly deputy Finance Minister) spoke about the benefits of DCJPY. These include the efficiency of business processes and the entire financial system with smart contracts, but it also enables businesses to utilize all data stored in the blockchain. Hence the benefits include instant settlement, traceability and transparency, as well as supporting new business models.
The DCJPY platform involves more than digital currencies. It envisages two zones as separate blockchain networks. One is a financial zone where banks issue deposit tokens and the money transfers take place. Business zones are separate DLT networks. For example, a metaverse zone, an NFT zone and an environmental value zone. It mentions security tokens but not a security token zone. Thats despite a heavy weight working group on the topic including Nomura, Daiwa Securities, JPX and the Osaka Digital Exchange.
Tokenized assetsof any sort can be issued in the business zones. Smart contracts are executed and asset transfers take place on the business network. But not payments. The asset transfers are synchronized with payments in the financial zone, which is where banks mint, burn and transfer tokens using open banking APIs.
DCJPY has been developed on the premise of a multi-bank system in which multiple banks use a common settlement infrastructure (Financial Zone), said Toshihide Endo, Senior Advisor, Digital Currency Forum and former Commissioner at the Financial Services Agency. Business entities using the Business Zone will be able to conduct transactions without being aware of their bank, creating an organic connection among the customers of each bank and expanding the network geometrically.
The (Cosmos) IBC framework is used for blockchain interoperability. In turn, the business zones can link to external systems and networks. And the financial zone can be linked for payments on external networks.
Banks settle up amongst themselves bilaterally by netting all transfers once a day.
Business smart contracts involve two types. One is the user asset contract, which defines the nature of an asset. For example, that might be an NFT, a carbon credit or an insurance policy. Separately there is a money contract, which can trigger functions in the asset contract, such as a transfer function or burn the token.
However, some aspects were less clear in the paper. For example, are all business zones permissioned? Who operates the nodes? And how is the network governed? We hope to answer these issues soon.
Read more from the original source:
Japanese tokenized deposit network DCJPY to launch mid-2024 - Ledger Insights
Citi goes live on 2 smart contract platforms for stocks, syndicated loans – Ledger Insights
YesterdayCitiSecurities Services announced it went live on theHKEX Synapsesmart contract platform to settle securities between Hong Kong and China. Separately,Versanasaid Citi went live on its smart contract solution for syndicated loans.
Last week we reported that Hong Kong Exchanges and Clearing (HKEX) was about togo live with its Synapsesmart contract solution for post trade processes for Northbound Connect. The latter is the HKEX conduit enabling Hong Kong and international investors to sette stock trades on Chinas mainland Shanghai Stock Exchange. Stock settlement involves numerous intermediaries. Synapse lets them all share data simultaneously rather than processing transactions through each sequentially.
Citihas worked with HKEX since the 2019 pilots and is one of the first live Synapse participants. The bank is the worlds fourth largest global custodian, with $27.8 trillion in assets under custody. Its also the first bank to fully integrate its custody solution with Synapse.
ChinaAMC(HK) was involved in the initial transaction on Citis Synapse offering.
We are delighted to be among the first group of asset managers to pilot the HKEX Synapse platform. This marks another significant win in optimizing the two-way flow of capital between Hong Kong and the Mainland, said Tian Gan, CEO of ChinaAMC (HK). As a leading Chinese fund management company in Hong Kong, we are working diligently with our partners such as Citi as our custodian, to prepare for this rollout, as we connect China and the world.
A separate division of Citi is involved in the other smart contract platform, Versana.
On Friday we reported that syndicated lending platformVersanahad surpassed $900 billion worth of loans. It was co-founded by Bank of America, Citi, Credit Suisse and J.P. Morgan to help digitize the syndicated lending process. Citi is the last founder agent bank to go live on the platform.
Citi has been committed to the Versana platform from the very beginning as we recognized that real-time information sharing is critical for the growth of the syndicated loan market, said Michael Hershkowitz, COO of Wholesale Lending for Citis institutional businesses.
In March Versana closed a $40 million funding round, including new investors Deutsche Bank, Morgan Stanley, U.S. Bancorp and Wells Fargo. Apart from U.S. Bancorp, the others are major syndicated loan agents and will onboard onto Versana in the coming months.
Both HKEX Synapse and Versana use Digital AssetsDAML smart contracts. Digital Asset was also one of the providers involved in theU.S. Regulated Liability Network (RLN)trials for interbank payments. While the RLN is an industy collaboration, Citi was the founder. Additionally, Citi recently launchedCiti Token Services, which supports money movements between Citis global branches around the clock usingtokenized deposits.
Read this article:
Citi goes live on 2 smart contract platforms for stocks, syndicated loans - Ledger Insights
Coinbases security team has fought crypto hackers for a decade: Heres what has to change – Yahoo Finance
Philip Martin is an impressive guy. A veteran of the U.S. Army, where he spent years working on counterintelligence, he did stints at Amazon and Palantir before coming to Coinbase to lead its security operations. So his views on the crypto industrys horrendous hacking problems carry considerable weight.
I caught up with Martin last week, and asked him how the industry beset by hackers since the very beginning has evolved when it comes to security. He noted that, while fundamental principles remain the same, the rise of smart contracts has made the job considerably harder.
Today, we have these massive, immutable, interrelated smart contracts that are storing tens of billions of dollars. I equate it to whipping back to 1970 and asking a dev to write secure codethey would fail miserably, Martin observed. He added that, because building and accessing smart contracts is extremely easy, it has meant many core code libraries have gaping security holes.
Martin said it doesnt have to be this way, but many in the industry lack the incentives to build with security in mind. Coinbase, which has a strong track record on cyber defense, is trying to set an example with its new Base blockchainbuilding an open-source monitoring tool called Pessimism onto the chain itself. More broadly, Martin said, he hopes the crypto industry will imitate Microsoft, which famously switched to a security-by-design approach with the launch of Windows 7 in 2009.
The crypto industry may have no choice if it wants to grow and be taken seriously. I wrote recently about an embarrassing incident where a custody firm, ironically named Fortress, let itself get robbed, and how this was just the latest in a long series of sloppy behavior that has made crypto a byword for hacking. It doesnt help that the most formidable threats are not rogue individuals, but a nation-stateNorth Koreaand organized crime outfits in Eastern Europe. Little wonder companies are getting robbed every week.
Story continues
The news isnt all bad, though. Martin noted correctly that smart contracts are barely five years old and that the basic building blocks of security to support them are still being built. Its also encouraging that big crypto companies that are fierce rivalsincluding Coinbase and Binanceregularly help each other when it comes to unmasking and stopping hackers.
But Martin said the industry needs to move faster and, in his words, act like grownups. He has that right. Each new breach is yet another blow to the industrys already battered reputation, and, if there is going to be another crypto boom, it will have to be built around a new ethos that values security as much as getting rich quick.
Jeff John Robertsjeff.roberts@fortune.com@jeffjohnroberts
This story was originally featured on Fortune.com
Excerpt from:
ESMA assesses market developments in DeFi and explores the … – ESMA
DeFi: developments and risks in the EU market
The article on DeFi developments and risks in the EU shows that DeFi raises serious risks to investor protection, because of the highly speculative nature of many DeFi arrangements and important operational and security vulnerabilities. Risks to financial stability are not meaningful at this point owing to DeFis small size but require monitoring. In addition, DeFis unique features have led to new market manipulation issues that need to be addressed.
DeFi has seen significant development over the last few years, although it remains very small in size (the Total Value Locked in DeFi protocols reached USD45bn as of end-June 2023 representing less than 4% of the total crypto-assets market capitalisation), and has garnered attention from consumers, but also from global regulators because of the risks it raises.
The article introduces a methodology for the categorisation of smart contracts which leverages on the latters source code and on topic modelling. It explores the rate of deployment of smart contracts belonging to the identified categories over time, contributing to an enhanced and nuanced understanding of DeFi,and also to identifying related significant risks.
ESMA defines five major smart contract categories and monitors their relative incidence over time. It notes a significant difference in terms of heterogeneity between the first and the second surge in smart contract deployment (occurring in 2017 2018 and in 2021 2023, respectively), reflecting the adoption of increasingly complex and interdependent protocols that have come to characterise DeFi.
ESMA is organising a public webinar on the findings of these articles. During the webinar, the authors of the articles and OECD representative will deliver a presentation, followed by a Q&A session.
The webinar will be held online on Wednesday, 25 October 2023 from 11:00 to 12:00.
Interested persons are welcome to register by Monday, 23 October 2023 at 12:00 via this link.
More:
ESMA assesses market developments in DeFi and explores the ... - ESMA