Category Archives: Smart Contracts

How AI-powered smart contracts shape the future of social networks – Cointelegraph

ICX, a blockchain-based social network, is poised to address social networks fundamental problems through enhanced privacy and user ownership by integrating AI into smart contracts.

Data reveals that 62% of the global population has at least one social media account. However, social networks face challenges such as privacy concerns, misinformation distribution and algorithmic biases.

It is a known fact that centralized social networks make money by selling their users' data. On the other hand, the monopolization of the social media space by a few dominant companies such as Facebook, Twitter and YouTube is another hot topic.

The good news is that blockchain and artificial intelligence (AI) technologies can potentially relieve social networks pain points. Blockchains encryption capabilities can address privacy issues, and AI technologies can tackle the remaining challenges.

ICX, a decentralized social network, aims to facilitate online social interactions and the exchange of information among users via blockchain-based innovations. The platforms primary goal is to advance communication models featuring enhanced privacy, ownership and community-driven governance.

All user data on the network, including posts, images and videos, is stored on-chain. Therefore, users have full ownership and control over their data in accordance with the fundamental principles of privacy and user autonomy.

ICX is being developed on the Internet Computer (ICP) blockchain, a decentralized computing platform that allows software to run without traditional web servers. By leveraging the capabilities of the IC blockchain, ICX is set to embed AI within smart contracts self-executing agreement codes.

The Web3 social network is also planning to integrate large language models (LLMs) AI programs that can recognize and generate humanlike text to provide users with features like digital clones.

In addition to AI-driven innovations, ICX wants to differentiate itself from traditional social platforms by giving its community approval power. In the upcoming release, ICX will be governed by a decentralized autonomous organization (DAO) a structure run by member votes without central authority.

ICX developers suggest the DAO model will allow advanced crypto features to be used

With the DAO model, any significant updates or changes to ICX's decentralized application (DApp) will occur following a voting process. Users who want to participate in governance also called neurons need to lock their ICX tokens into the network to gain voting rights.

The democratic governance framework will also enable sophisticated features such as ragequitting. Ragequitting is a feature that enables DAO members to exit the DAO by burning tokens and withdrawing their share of the treasury.

As part of the development phases, ICX is preparing to release proof of concept, which is a preliminary demonstration used to confirm that certain theories have the potential to be developed.

In the first release, the platform will leverage AI to test new forms of social interaction. ICX's goal, which will evaluate initial reactions and feedback from users, is to determine the feasibility and effectiveness of AI in improving social networking experiences.

How integrating AI into social communication works. Source: ICX

Once the proof of concept receives positive feedback, the platform will move all its functionality on-chain and become fully decentralized, adhering to the principles of the Internet Computer blockchain protocol.

Aiming to transform the way people interact both online and offline, ICX argues that a better future can be built on the basis of AI-supported social networks. "We envision a future free from endless social feed scrolling, where humans connect more in the real world," ICX founder Marcio says, adding: "I believe robots and AI can guide us towards this paradise."

As traditional models come under increasing scrutiny for invading privacy and commoditizing data, the application of decentralized technologies presents a promising alternative. While the digital landscape evolves, the fusion of blockchain and AI may well redefine the foundational structures of social networking, steering it toward a more secure and user-centric future.

Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you with all important information that we could obtain in this sponsored article, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor can this article be considered as investment advice.

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How AI-powered smart contracts shape the future of social networks - Cointelegraph

Can Bitcoin Ever Become Smart? –

Key Takeaways

Bitcoins Taprootupgrade laid the groundwork for Ordinals inscriptions. Many in the Bitcoin community expect the network to debut DeFi capabilities and smartcontract functionality directly onto its base layer with cryptographic advancement.

In April, a decentralized blockchain network Internet Computer Protocol (ICP) integrated threshold-Schnorr signatures to allow web3 applications on Bitcoin.

CCN spoke to Lomesh Dutta, Vice President of Growth at Dfinity, a contributor to Internet Computer blockchain, to understand if advancements in Bitcoin can make itsmart.

The Internet Computer Protocol (ICP) recently introducedBitcoinadvancementwhichwill potentially allowit to do more thanjusthandle payments.

During the integration in April, ICP claimed that its programs could interact with Bitcoin directly. It used a cryptographic method called Schnorr signatures.

The threshold-schnorr method can offer potential enhancements toBitcoinsnetwork by increasing efficiency and security, especially for multi-signature transactions. Traditional multi-signature transactions in Bitcoin require each participant to individually sign a transaction, which can be inefficient and costly as it increases the transaction size and potentially the fees. Threshold-Schnorr simplifies this by allowing a single signature to represent a transaction approved by multiple parties.

Dutta explains,Bitcoin uses twodifferentdigital signature cryptographic schemes: ECDSA and Schnorr. In themost simpleterms, a digital signature proves that the owner of the funds has authorized the spending of those fundsi.e.if you have to send your Bitcoin to someoneelseit needs to be digitally signed by you (using your private key).

Dutta states that a lot of recent developments onBitcoin, including digital assets and features, are using Schnorr signatures.According to him, ICP is also adopting threshold Schnorr signatures to allow it to manage various types of Bitcoin-related activitiessecurely.

The VP adds,This means that you can build any form of advanced smart contracts on Bitcoin involving these assets (BRC-20, Runes, Ordinals, ARC-20, etc.) in an extremely secure way with 1-2s transaction finality andextremely lowgas fees (fee could even be paid by developers, so bitcoin smart contract transactions can even become free for end users).

When it comes tosmart contracts capabilities, Bitcoinwas never consideredto be on the list. Ethereum became the firstsmartchainfollowed by other players like Solana and Cardano.

Dutta points out that while Bitcoin is a highly recognized and widely used cryptocurrency, itwasntcreatedwith the capability to support smart contracts directly. He adds thatBitcoinssystem has inherent limitations such as slow transaction processing, limited ability to handle large volumes of transactions, and highcosts associated with transactions. Therefore, it is less practical for developerstoeffectivelybuild and operate applications directly onBitcoinsplatform.

According to the Dfinity VP, ICP is being used to address some ofBitcoinslimitations. Firstly, ICP claims to check how much Bitcoin someone has and can also authorizeBitcointransactionsdirectly,without needinga middleman.

Thismeans ICP can potentially manage, send, and receiveBitcoinand other Bitcoin-based digital items. Secondly, ICP claims to provide an environment for creatingsmartcontracts by supporting developers and overcoming its design limitations around transaction speed, scalability, and costs.

When we asked Dutta what it could mean for Bitcoin, he said,It enables a plethora of use cases that have never been possible on Bitcoin earliersuchas decentralized exchanges (DEXs) offering BTC or BRC20 trading pairs, lending markets using Ordinals as a collateral, decentralized fundraisers accepting BTC, or Web3 SocialFi services allowing satoshis tobe sentvia chat messages!

According to Dutta, recent developments like Ordinals and BRC-20 tokensare designedto add new functions to Bitcoin, allowing it to handle different types of transactions and services.

More transactions also mean higher revenue for minerswhichis critical for the long-term security of Bitcoin (instead of simply relying on the assumption that price will continue to skyrocket),he added.

The answer to the question is No. Bitcoin itselfisntbuiltto function asa smartcontract platform. Bringingsmartcontract functionalities directly toBitcoinsbase layerisntstraightforward due to its design and the census challenges within the community.

Therefore, sidechains like RSK andLayer 2 solutionslike the Lightning Network bring additional functionalities to Bitcoin.

Dutta agrees thata smartBitcoin is a far-fetched idea when he says,Wedontneed to change Bitcoin to enable these functionalities. As a matter of fact it would be subject to major political and controversial debates if one were to implement changes in the core bitcoin architecture.

The VP suggests that to enablesmartcontract functionalities for Bitcoin,itsbetter to use separate systems rather than changingBitcoinscore structure.

The executive explains that the systems operate alongside Bitcoin without the need formiddlemen, relying only on thesecurity of theblockchainsthemselves.He highlights a current issue where some groups use insecure, centralized methods, known as bridges, to add functionalities to Bitcoin.

Dutta notes,Our biggest goal should be tostay away fromthese insecure bridges, a model that has lost billions of dollars for users.

Looking forward, Dutta dubsBitcoinand interoperability as two major themes. He states,Bitcoin is the most popular digital asset, with the most liquidityanditwill continue to be a dominant force in the web3 space.

Dutta pointed out that different blockchains have distinct features that make them useful for specific purposes.For example, Ethereumis often usedas a platform for executing and recordingcontracts and transactions.He emphasizes that Bitcoin, with its unique properties and recognition, will continue to beimportantand should be able to work in conjunction with other blockchains.

The goal for the blockchain industry is to achieve this interoperability in the most secure manner possible.Thiswill bring the trust of end users to our industry,Dutta added.

Advanced cryptographic techniques, such as threshold-Schnorr signatures,are enhancingBitcoinscapabilities. However, it is not directly on its core layer.

While Bitcoinitselfdoes not support these advanced functions natively due to its original design limitations, new technologiesare allowingsecure interactions with Bitcoin without intermediaries.Dutta highlights that these integrations enable the creation of smart contracts on platforms linked to Bitcoin, which can make transactions quicker and more cost-effective.

However,Bitcoinitselfcannot transform intoa smartcontract platform at this stage. Yet, these external advancements are vital as they circumventBitcoinsinherent constraints. By leveraging sidechains and Layer 2 solutions, Bitcoin can extend its functionalitywellbeyond its traditional role asdigital gold,supporting a broader array of applications.

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Will Regulation Clip Ethereum: Navigating The Uncertain Regulatory Landscape For Ethereum Tokens In 2024 – Blockchain Magazine

May 9, 2024 by Diana Ambolis


Ethereum, the worlds second-largest cryptocurrency by market capitalization, is a powerful blockchain platform that fuels a vast ecosystem of decentralized applications (dApps) and digital assets known as tokens. However, a looming cloud of uncertainty hangs over this innovative landscape: government regulation. The Rise of Ethereum and its Tokenized Ecosystem Ethereums programmable blockchain allows developers to

Ethereum, the worlds second-largest cryptocurrency by market capitalization, is a powerful blockchain platform that fuels a vast ecosystem of decentralized applications (dApps) and digital assets known as tokens. However, a looming cloud of uncertainty hangs over this innovative landscape: government regulation.

The Rise of Ethereum and its Tokenized Ecosystem

Ethereums programmable blockchain allows developers to create smart contracts, self-executing agreements that power dApps in various sectors, from finance (DeFi) to gaming (NFTs). These dApps often rely on Ethereum tokens, digital units with specific functionalities within their respective ecosystems.

Ethereum, the second-largest blockchain by market capitalization, faces a complex challenge: fostering innovation while navigating an uncertain regulatory landscape. Heres a closer look at this tightrope walk:

The Allure of Innovation:

Smart Contracts and dApps: Ethereums programmability allows for the creation of smart contracts (self-executing agreements) and decentralized applications (dApps) that revolutionize various industries, from finance (DeFi) to supply chain management.

Open Source and Decentralized: Ethereums open-source nature fosters a vibrant developer community that continuously pushes the boundaries of blockchain technology. Decentralization is a core principle, aiming to distribute power and control away from centralized authorities.

A Breeding Ground for New Ideas: The permissionless nature of Ethereum allows anyone to build upon it, fostering experimentation and the exploration of groundbreaking concepts like DAOs (Decentralized Autonomous Organizations).

The Challenge of Regulation:

Uncertain Regulatory Landscape: Regulatory frameworks for cryptocurrencies and blockchain technology are still evolving globally. This uncertainty creates challenges for businesses and developers building on Ethereum, as compliance requirements remain unclear.

Concerns About Security and Scams: The anonymity associated with cryptocurrency transactions raises concerns from regulators about money laundering and illegal activities. Additionally, some DeFi projects on Ethereum have been susceptible to hacks and scams, highlighting the need for potential regulations to protect investors.

The Howey Test and Classification: The Howey Test, a legal framework in the US, classifies investment contracts as securities. Some regulators are scrutinizing whether certain Ethereum-based projects might fall under this category, potentially triggering stricter regulations.

Finding the Balance:

Self-Regulation Efforts: The Ethereum community is actively exploring self-regulation initiatives to address concerns about security and scams. These efforts demonstrate a commitment to responsible innovation within the ecosystem.

Collaboration with Regulators: Open dialogue and collaboration between the Ethereum community and regulatory bodies are crucial for establishing clear and workable regulations that foster innovation while mitigating risks.

Technological Solutions: The development of tools and technologies that enhance transparency and accountability on the Ethereum network can help address regulatory concerns without compromising decentralization principles.

Also, read Your Ultimate Guide To Blockchain Powered Data Exchange And Its Top 5 Benefits

The ever-evolving regulatory landscape surrounding Ethereum can be daunting for both developers and investors. Here are some strategies to navigate this uncertainty:

For Developers:

Stay Informed: Keep yourself updated on the latest regulatory developments related to cryptocurrency and blockchain technology. Resources like industry publications, legal forums, and conferences can be helpful.

Focus on Building Compliant Applications: While maintaining core decentralization principles, consider incorporating features that enhance transparency and accountability within your dApps. This could involve implementing Know Your Customer (KYC) procedures or collaborating with regulated entities.

Engage with Regulatory Bodies: Participate in discussions and contribute to shaping regulations. The Ethereum communitys voice can be influential in establishing fair and effective frameworks.

Consider Building Regulatory Compliance Tools: Theres a growing need for tools that help developers ensure their dApps comply with evolving regulations. Building such tools could be a valuable niche within the Ethereum ecosystem.

For Investors:

Conduct Thorough Due Diligence: Dont be swayed by hype. Research any Ethereum-based project youre considering investing in, understanding its underlying technology, purpose, and potential regulatory risks.

Diversify Your Portfolio: Spread your cryptocurrency investments across different assets, including established projects with strong track records. Avoid overexposure to highly speculative ventures.

Stay Up-to-Date on Legal Developments: Follow legal news related to specific projects or the broader cryptocurrency space. Understanding potential regulatory hurdles can inform your investment decisions.

Seek Professional Financial Advice: Consider consulting a financial advisor with expertise in cryptocurrency to navigate the complexities of this emerging asset class.

General Strategies:

Embrace Transparency: Both developers and investors should prioritize transparency in their activities. This fosters trust and can help mitigate regulatory concerns.

Prepare for Change: The regulatory environment is likely to remain fluid for some time. Be prepared to adapt your strategies as regulations evolve.

Advocate for Innovation: Support initiatives that promote responsible innovation within the Ethereum ecosystem, while ensuring regulatory compliance.

While the path forward is uncertain, staying informed, adapting to changing regulations, and prioritizing responsible development and investment practices will be key to success in the Ethereum ecosystem. By working together, developers, investors, and regulators can navigate this uncharted territory and unlock the full potential of Ethereums groundbreaking technology.

The question of how regulation will impact Ethereums future is a complex one. While regulations can stifle innovation, they can also bring much-needed clarity and legitimacy to the blockchain space. Heres a closer look at how regulation might even act as a catalyst for Ethereums growth:

Potential Benefits of Regulation:

Increased Investor Confidence: Clear and well-defined regulations can provide investors with more confidence in the Ethereum ecosystem. This could attract new institutional investors who might have previously been hesitant due to the uncertainty surrounding cryptocurrencies.

Reduced Risk of Scams and Fraud: Regulations aimed at combating money laundering and illegal activities could improve the overall security and stability of the Ethereum network. This would create a more trustworthy environment for users and developers.

A More Sustainable Ecosystem: Regulations could potentially address concerns about energy consumption associated with Proof-of-Work (PoW) mining, the current consensus mechanism used by Ethereum. This could encourage the adoption of more sustainable alternatives like Proof-of-Stake (PoS).

Mainstream Adoption and Integration: Regulatory frameworks that provide a path for compliance could lead to wider adoption of Ethereum by established financial institutions and businesses. This would integrate Ethereum technology into traditional financial systems, unlocking its potential for mainstream use cases.

A Catalyst for Innovation: Regulations can sometimes act as a catalyst for innovation. Developers might be spurred to create new solutions and applications that comply with regulations, further expanding the utility of the Ethereum network.

Challenges and Considerations:

Overly Restrictive Measures: Regulations that are overly restrictive could stifle innovation and hinder the growth of the Ethereum ecosystem. Finding the right balance between protecting investors and fostering innovation will be crucial. Striking this balance will require careful consideration of the potential consequences of regulations on the core principles of decentralization and technological advancement.

Maintaining Decentralization: Regulations that give too much control to central authorities could undermine the core principles of decentralization that underpin Ethereum. Striking a balance between regulation and decentralization will be a complex task. Regulatory frameworks need to be crafted in a way that safeguards users and promotes responsible development, without compromising the essence of a permissionless and distributed network.

Global Coordination Needed: The success of regulations will depend on a coordinated effort from governments around the world. A patchwork of regulations across different jurisdictions could create confusion and hinder global adoption of Ethereum technology. International collaboration among regulatory bodies will be essential to establish clear and consistent frameworks that promote responsible innovation on a global scale.

One of the major regulatory hurdles for Ethereum tokens is the Howey Test, a legal framework in the US that classifies investment contracts as securities. If certain Ethereum-based projects are deemed securities under the Howey Test, they might fall under stricter regulations akin to traditional stocks and bonds. This could significantly impact the development and operation of these projects.

Navigating the Uncertainty: A Multi-Stakeholder Approach

Despite the uncertainties, there are ways for Ethereum to navigate this complex regulatory landscape. Open dialogue and collaboration between the Ethereum community, regulatory bodies, and industry players are crucial. The Ethereum community can contribute by:

Regulatory Considerations for a Sustainable Future

For regulators, crafting effective frameworks requires a nuanced approach. Here are some key considerations:

The Road Ahead: A Potential Catalyst for Growth

While the immediate impact of regulation remains uncertain, its not all doom and gloom for Ethereum. Thoughtfully implemented regulations can bring several benefits:

A Collaborative Future for Ethereum

The future of Ethereum in the face of regulation hinges on a collaborative effort. The Ethereum community, regulators, and industry players all have a role to play. By fostering open communication, prioritizing responsible innovation, and crafting clear and adaptable regulations, they can ensure that Ethereum continues to thrive and reach its full potential. The year 2024 might not provide definitive answers, but it presents a critical opportunity to shape the future of Ethereum and usher in a new era of responsible and transformative blockchain technology.

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Will Regulation Clip Ethereum: Navigating The Uncertain Regulatory Landscape For Ethereum Tokens In 2024 - Blockchain Magazine

Stellar Development Foundation Q1 2024 Report: Smart Contracts Live on Stellar and $533m in Real World Assets – Crypto Reporter

Today the Stellar Development Foundation (SDF) released its Q1 2024 report. In the first quarter of 2024, Stellar launched smart contracts. Soroban is a developer-friendly, Rust-based smart contracts platform designed for scale and sensibility. The total supply of real world assets held on Stellar also topped $533 million. The total payments volume expressed on Stellar in Q1 was $1.6 billion. Stellar continues to be an industry leader in low transaction costs, with an average transaction cost of $0.000065.

Stellar kicked off the new year with the launch of smart contracts, marking the biggest change on the Stellar network since it launched a decade ago, said Stellar Development Foundation CEO Denelle Dixon. The Stellar Community Fund awarded $3.2 million to projects being built on Stellar and that funding will help grow the Stellar community and support projects that will bring real world utility to the Stellar network. Tokenized assets continue to grow on Stellar as more financial institutions recognize the advantages of tokenized assets and the power Stellar gives them to issue and control those assets. The year is off to a great start and we look forward to gathering with the Stellar community on October 15-17 in London to celebrate what we have accomplished and the exciting projects being built on Stellar.

SDF is committed to a future proof and sustainable Stellar. Stellars low transaction fees, smart contract capability and the Stellar Community Fund are critical parts of building a sustainable Stellar network that is enabling real world utility today and will grow as blockchain technology is adopted more widely.

Financial inclusion and real world utility are integral to SDFs mission. SDF is focused on everyday financial services because we want to help build a global financial system that includes everybody. Asset tokenization, on and off-ramps, and wallets are all key parts of the network that are providing real world utility to people across the globe. SDF is also pushing for increased adoption of the utility that Stellar Aid Assist and the Stellar Disbursement Platform (SDP) are providing to organizations engaged in humanitarian work, like the United Nations High Commission for Refugees (UNHCR). To date UNHCR has used Stellar Aid Assist to disburse more than $2.2m to internally displaced people in Ukraine.

SDF also believes that a trustworthy technology stack is the best kind to advance adoption of blockchain technology. That is why SDF has collaborated with the ecosystem to make sure not only that Soroban is the best smart contract platform, but also that it is secure. This quarter, the Stellar Development Foundation has focused on the technical capabilities and third party services necessary to establish smart contracts on Stellar as a leader in safety. Thats why SDF launched the Soroban Audit Bank as part of SDFs ongoing commitment to promoting high standards for smart contract security throughout the Stellar ecosystem. The program is distributing up to $1 million dollars in security audit credits in coordination with six top-tier audit firms. Audit credits have been used for 15 projects thus far.

SDF leaders have traveled across the globe and conducted listening sessions in Ghana, Nigeria, and Kenya to hear directly from Stellar community members in places too frequently left out of the global financial system. At Meridian 2024, October 15-17 in London, SDF will convene our community to celebrate what weve achieved and look ahead to what we will build next on Stellar.

About Stellar

Stellar is more than a blockchain. Powered by a decentralized, fast, scalable, and uniquely sustainable network made for financial products and services and a thriving and passionate ecosystem that includes a non-profit organization driven by a mission, Stellar is paving the path to unlock the worlds economic potential through blockchain technology. Built with speed and low costs in mind, the Stellar network provides builders and financial institutions worldwide a platform to issue assets, and to send and convert currencies in real time creating real world utility. Founded in 2014, the Stellar Development Foundation (SDF) supports the continued development and growth of the Stellar network and also serves the ecosystem of NGOs, corporations, universities, small businesses, governments, and solo entrepreneurs building on the Stellar network through tooling, funding and strategic collaborations. Together, Stellar is where blockchain meets the real world.

About the Stellar Development Foundation

The Stellar Development Foundation (SDF) is a non-profit organization that supports the development and growth of Stellar, an open-source network that connects the worlds financial infrastructure. Founded in 2014, the Foundation helps maintain Stellars codebase, supports the technical and business communities building on the network, and serves as a voice to regulators and institutions. The Foundation seeks to create equitable access to the global financial system, using the Stellar network to unlock the worlds economic potential through blockchain technology. For more information, visit

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Stellar Development Foundation Q1 2024 Report: Smart Contracts Live on Stellar and $533m in Real World Assets - Crypto Reporter

Stellar Smart Contracts Bring DeFi to the Real World – CoinDesk

Existing services built on DeFi are not broadly accessible, particularly to the underbanked, unbanked and people living in the developing world. Transaction costs on some chains, such as Ethereum, and CEX fees, are not economically tenable to these users, and the necessary infrastructure to bring fiat into DeFi may not exist at all.

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5 Common Crypto Attacks And How TO Protect Yourself –

Key Takeaways

The crypto world presents fascinating opportunities for decentralized systems and financial innovation. But just like any new technology with substantial potential, it also draws bad actors looking to take advantage of weaknesses.

Knowing the most prevalent attack methods and how to defend oneself are essential for successfully navigating the cryptocurrency world. The most common crypto attacks to be aware of include:

This article will explain the above listed crypto attacks and how to protect yourself against them.

Phishing is one of the most widely used attack vectors in cryptocurrencies and traditional finance. Attackers that use phishing attacks frequently pose as reputable companies, exchanges, wallet providers, or well-known cryptocurrency initiatives.

To fool victims into disclosing their private keys, seed phrases, or login credentials, they may utilize phony websites, emails, or social media communications.

To protect yourself from phishing attacks, one can use the below measures:

Malicious software, often known as malware, can take many different forms and is intended to steal crypto assets or private data. Typical forms of malware found in the cryptocurrency world include:

To safeguard against crypto malware attacks, consider these precautions:

Although 51% attacks are mostly dangerous for smaller blockchains, they are nonetheless important to be aware of. When one person or organization controls more than 50% of the network hash rate (computer power) of a blockchain, an attack of this kind takes place.

With this control, they can:

Use following safety measures to protect yourself from 51% attacks:

On blockchains, smart contracts are self-executing programs that carry out agreements or automate transactions.

Even though smart contracts are very helpful, badly written ones may have vulnerabilities that hackers might take advantage of. These flaws can occasionally result in money theft or alter the intended behavior of the smart contract.

Employ these safety precautions to shield yourself from smart contract vulnerabilities:

Dusting attacks are meant to compromise the anonymity that is the foundation of many cryptocurrencies. Attackers transfer small quantities of cryptocurrency (dust) to numerous wallets.

They then keep an eye on the blockchain to trace the movement of this dust and when. By connecting wallets to potentially identifiable exchanges or transactions, the intention is to deanonymize wallets.

Employ these safety protocols to defend crypto dusting attacks:

Attacks using cryptocurrencies demonstrate why security and awareness are essential in this changing environment. Risks include phishing scams, malware and attacks on blockchains and smart contracts. Its critical to be knowledgeable, use robust security methods like hardware wallets and multi-factor authentication, and practice vigilant caution.

Give top priority to funding initiatives with a track record of success and open security procedures. Recall that your best line of protection against losing your cryptocurrency holdings to dishonest parties is vigilant awareness.

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5 Common Crypto Attacks And How TO Protect Yourself - v2 airdrop could introduce non-transferable token – TradingView

Decentralized social media platform is preparing for its version two launch and airdrop on May 3, but a leaked smart contract suggests it may have controversial features, including a non-transferable token.

The nontransferable tokens may be introduced with the airdrop, according to pseudonymous decentralized financeresearcher CBBOFE, who claims in a May 2 X postto have potentially found the smart contracts.

Ticker is $POINT, not transferable unless to some whitelisted addresses. $POINT will be tradable on BunnySwap (FT native DEX).

A nontransferable token means that airdrop recipients wont be able to sell or exchange the coins, except for certain whitelisted protocol addresses.

Restaking protocol EigenLayer has also decided to issue a nontransferable token for its EIGEN airdrop, which was one of the main reasons behind the recent outrage surrounding EigenLayer. made the token nontransferable to make users pay the 1.5% fee, according to Kasper Vandeloock, a quantitative crypto trader and adviser at the X10 exchange. He told Cointelegraph:

If you cant transfer it, you are forced to sell it through them, which has the 1.5% fee. [] Which is kind of ironic, they bring this strong we are anti-VC vibe to the table while being a profit factory for Paradigm.

The new potential token, POINTS, will function as a utility token that allows for the creation of social clubs on the platform, which may cost a 1.5% platform fee, according to CBBFOE:

New smart-contract called Clubs. Anyone can create multiple clubs and a bonding curve among several options. 1.5% platform fee and 1.5% staking contract. Club keys are bought with $POINT.

The new tokens will also be offered as rewards for users staking their Ether (ETH) and POINTS tokens in the smart contract.

The announcement caused concerns among crypto enthusiasts. Pseudonymous crypto trader MK commented:

I hate Eigen so much for starting this non-transferrable meta.

Related: EigenLayer sees over 12,000 queued withdrawals How far will TVL fall?

Non-transferable tokens could reduce initial airdrop selling pressure

While nontransferable tokens have been causing significant community outrage, they could benefit the long-term price action of the cryptocurrency, as tokens tend to see drastic declines following airdrops.

At the end of April, the Omni Networks OMNI token fell 55% in less than 18 hours following it airdrop, losing over half of its market capitalization.

Wormholes W token is another example, falling nearly 25% in value only a couple of hours after anairdrop on April 3. The token is down over 47% since the airdrop, according to CoinMarketCap.

Crypto airdrops are often riddled with professional airdrop hunters (or squatters) that farm the same airdrop with multiple cryptocurrency wallets with no intention of using the protocol in the long term and market selling the rewards after claiming.

In March 2023, it was revealed that airdrop hunters consolidated $3.3 million worth of tokens from Arbitrums ARB airdrop from 1,496 wallets into just two wallets they had controlled.

Related: LayerZero cross-chain interoperability protocol completes first airdrop snapshot

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Eclipse And Neon EVM Drive Solana-Ethereum Integration For Blockchain Interoperability – TradingView

Layer 2 (L2) blockchain Eclipse and developer-oriented bridge Neon EVM have formed a new collaboration to implement changes in the blockchain landscape, increasing interoperability and scalability with the integration of Ethereum (ETH) and Solana (SOL).

Aiming to combine the capabilities of both blockchains, Eclipse has consolidated the compatibility between the Ethereum Virtual Machine (EVM) and the Solana Virtual Machine (SVM) by deploying Neon Stack.

Solana And Ethereum Integration

The primary objective of this collaboration is to integrate Solanas transaction handling capabilities, which can process thousands of transactions per second, into Ethereum.

This integration will be facilitated by Neon Stack, a standardized development stack that enables smart contract developers to achieve Ethereum Virtual Machine compatibility on Solana Virtual Machine-based blockchain networks. Eclipse plans to leverage Neon Stack on its SVM L2 to facilitate this integration.

The Neon Stack consists of Neon EVM smart contracts and Neon Proxy. It has been live on the Solana mainnet since July 2023. It has deployed numerous Ethereum-native Solidity decentralized applications (dApps), including decentralized finance (DeFi), gaming, and decentralized exchanges (DEXs), on Solana from its existing codebase.

Neon EVM-Eclipse Partnership For Cross-Chain Development

Davide Menegaldo, Chief Commercial Officer (COO) of Neon EVM, expressed enthusiasm for Neon Stack and the collaboration, stating:

With Neon Stack, we are paving the way for high-performance, scalable dApps infrastructure that transcends the limitations of traditional blockchain architectures and redefines computational efficiency. We are pleased to see Eclipse as the first industry partner to utilize the Neon Stack.

On the other hand, Neel Somani, founder of Eclipse Labs, the company behind the development of the Layer 2 blockchain, also emphasized the importance of the partnership, saying:

Our collaboration with Neon Stack enables developers to seamlessly deploy their dApps from EVM chains to Eclipse, further strengthening the harmonization between Solana and Ethereum. Solidity developers who wish to build on a high-performance L2 that leverages the strengths of the SVM can finally do so.

Interestingly, the Ethereum ecosystem hosts over 13,000 dApps, with only a small fraction, 0.4%, cross-chained with Solana. This collaboration between Neon EVM and Eclipse could also provide further opportunities for developers to build new dApps with the new integration.

In sum, it is believed that developers will be able to build advanced dApps that leverage the features of Ethereum and Solana, along with their respective native ecosystems and virtual machines, by leveraging the design of the NEON Stack and Eclipse.

As of the current update, the native token of NEON EVM, NEON, is trading at $1.0135. It has shown a 2.6% recovery over the past 24 hours, aligning with the overall positive movement in the cryptocurrency market. However, during the past 7 days, the token has witnessed a price decline, experiencing a nearly 8% drop.

Featured image from Shutterstock, chart from

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What Is Tokenized Real Estate –

Key Takeaways

The concept of real estate tokenization focuses on two primary objectives.

Through the integration of blockchain technology and smart contracts, tokenization facilitates for:

Traditional real estate investment is known for its capacity as a store-of-value and investment returns over time, however, the property market is known for its illiquidity because traditional ownership of real estate is:

Essentially, tokenizing real estate using the blockchain involves the creation of either non-fungible tokens (NFTs) or fungible tokens, based on the specific needs. NFTs are ideal for representing entire properties or groups of properties as a single token.

On the other hand, fungible tokens are better suited for dividing a property into multiple shares where one property is split into X amount of tokens, allowing an individual to open a percentage or hold fractional ownership.

By converting real estate assets into digital tokens, which represent a share of ownership in a specific property. The tokens will then be bought and sold on blockchain platforms or marketplaces, facilitating a more liquid real estate market.

Tokenization will then adopt smart contracts which will automate and enforce contract terms such as the distribution of dividends from rental income or sale proceeds.

This ultimately will reduce the need for intermediaries and cut transaction costs and times significantly.

Tokenizing commercial properties involves converting office buildings, retail spaces, and industrial sites into blockchain tokens that comply with legal standards.

This method not only simplifies the investment and sale process but also broadens the investor base by providing easier access to high-value assets.

This approach allows for the fractional tokenization of residential properties, such as apartments and homes, making it feasible for investors, asset owners, and developers to engage with the market on a more detailed level.

Residential tokenization democratizes property investment, enabling smaller investors to participate in markets previously dominated by wealthy individuals or institutional investors.

Tokenizing iconic and famous buildings such as landmark skyscrapers or historic structures in prime locations, harnesses the specific real estate value for broader market participation.

These trophy properties often attract international investors looking to add prestigious assets to portfolios, which will increase liquidity in the real estate market.

Tokenized assets generate revenue by opening up new investment opportunities and lowering entry barriers, allowing more investors to participate in the real estate market. Property owners are more able to quickly raise capital selling tokens representing parts of a property.

Investors can potentially earn returns through appreciation of token value and income generated from the property, such as rent or lease payments.

Dynamic tokenized real estate uses dynamic NFTs (dNFTs) which are an upgrade on traditional NFTs because dynamic NFTs automatically update the data to reflect changes which might include renovations or ownership transfers. These NFTs will then serve as digital representation of property ownership and can include information about the property that updates in real-time.

One blockchain that facilitates dynamic NFTs is Chainlink, which is a tool that connects smart contracts to external data sources where dynamic NFTs can integrate continuous updates such as images or videos showcasing the propertys current state. Ongoing visual documentation will only enrich the propertys digital profile, offering prospective buyers detailed and updated insights which can greatly inform and influence future investment decisions in a true and fair manner.

Fractionalized real estate tokenization leverages blockchain technology to break down property ownership into smaller manageable shares through Non-Fungible Tokens (NFTs).

This approach makes real estate investment more accessible, reducing the entry cost and allowing investors to buy, sell, or trade shares on digital platforms, increasing liquidity. With each tokenized share a clarity in ownership is reached using immutable ownership records.

Tokenizing real estate involves transforming property assets into digital tokens on a blockchain, enabling easier and more fractionalized ownership. The steps involved in the process are as follows:

In the first step of real estate tokenization, stakeholders will have to agree on all the key details to do with the property and the propertys valuation along with the share of equity that will be tokenized.

It is important to select a blockchain platform that adequately fits the needs of the project, considering factors like scalability, security, and the cost of transactions. Options like Ethereum, Algorand, Tezos, and BNB Smart Chain are popular due to the varying advantages in handling transactions and executing smart contracts.

This process involves converting the propertys legal and financial documents into digital form to integrate them into the blockchain, ensuring that all details are accurate and meet legal standards to maintain the tokens validity and security.

Tokens that represent ownership or equity in the property are created as either fungible or non-fungible tokens and distributed to investors via sales. This process leverages smart contracts to automate and regulate the distribution process in accordance with securities laws.

Real estate tokenization is legal, but it is heavily dependent on local and international regulations. Compliance with securities laws, KYC (Know Your Customer), and AML (Anti-Money Laundering) regulations is required.

The legal standing of real estate tokenization continues to be understood more fully, impacting how and where tokenization can be implemented.

Tokenization can make real estate assets more liquid, allowing for easier buying and selling of shares in property, much like trading stocks.

By lowering the entry cost, tokenization allows smaller investors to participate in real estate markets that were previously accessible only to wealthy individuals or institutional investors.

Investors can buy tokens representing fractional shares of a property, enabling them to diversify portfolios without needing to invest large sums in single properties.

Blockchain technology offers a transparent transaction ledger, which helps reduce fraud and ensures all parties have access to the same data regarding transactions and ownership.

Tokenization can streamline the process of buying and selling real estate, reducing the need for intermediaries such as brokers and lawyers, which cuts down on fees and transaction times.

Investors from around the world can easily participate in tokenized real estate markets, providing properties with access to global capital.

Smart contracts can automate legal and regulatory compliance, reducing the complexity and potential for error in traditional real estate transactions.

The legal framework for tokenized real estate is still evolving, which can pose risks when converting property into tokenized NFTs, due to regulatory changes and jurisdictional variations.

Traditional investors may be hesitant to adopt tokenization because of unfamiliarity with the technology or concerns about the validity and security of digital transactions.

Dependence on blockchain technology means that any fundamental issues with the blockchain used such as security vulnerabilities or scalability problems could impact tokenized real estate assets.

Managing a tokenized property can be complex, especially in determining the value of tokens when the underlying asset appreciates or depreciates.

Despite increased liquidity potential, the actual liquidity of real estate tokens can be limited by market demand, which might not be as high as anticipated.

Integrating blockchain and real estate registries requires significant changes to existing systems, which can be costly and complex.

While blockchain increases transparency, theres still a risk of fraud in initial token offerings or from platforms hosting token sales without adequate security measures.

The future of tokenizing real estate looks toward greater integration with financial markets and the potential for interoperability among different blockchain platforms, with developments in the space of decentralized finance (DeFi) potentially allowing for more sophisticated financial maneuvers like real estate-backed loans.

The real estate sector is likely to see more innovation and acceptance as regulatory frameworks adapt to suit this novel approach. Tokenization of real estate has the ability to completely change the market by creating new investment opportunities and altering the purchasing, selling, and management of real estate.

Tokenization of real estate using blockchain technology is creating a new form of property investment tackling illiquidity issues, barriers to entry, and overall efficiency. Tokenization of real estate allows for fractional ownership, broadens investor bases globally, and will reduce transaction complexities, all this while ensuring compliance and transparency through smart contracts.

As the industry navigates through the regulatory landscapes and technological challenges, the future of real estate tokenization is promising with a potential for transforming how properties are bought, sold, and managed on a global scale.

Tokenization could potentially stabilize property prices by increasing market efficiency and transparency, although its largely dependent on market dynamics and adoption rates.

Disputes in tokenized real estate are handled through predefined smart contract terms, and legal arbitration may be used as necessary, following the legal stipulations embedded within the tokenization platform and the smart contract in place.

If a blockchain platform hosting tokenized real estate fails, recovery mechanisms predefined in the platforms architecture would be activated, and legal safeguards and backups help protect asset ownership data.

Governments will set the legal and regulatory frameworks that guide the tokenization of real estate, focusing on protecting investors, ensuring market stability, and preventing fraud.

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