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As the world continues to evolve, so do our technological advancements. One of the most recent developments in the European Union (EU) is the introduction of the smart contract kill switch. But what exactly is it, and how does it affect the world of decentralization?

The EU parliament recently passed a bill requiring smart contracts to include a kill switch. This means that in the event of a security breach or other emergency, the switch can be used to terminate the contract and prevent any further action from taking place. Some have expressed concern about the impact this could have on the autonomy of smart contracts, but others argue that it is a necessary precaution to prevent potential damage.

The EUs Smart Contact Kill Switch

On March 14, the European Parliament passed a bill designed to protect data privacy while promoting innovation, but a controversial clause known as the Data Act has raised alarm bells in the Blockchain ecosystem. Essentially, the new law requires all smart contracts to include a mechanism that can either destroy the contract or pause its operation in the event of a major bug or security breach.

This mechanism is commonly used by administrators to shut off a device or software in the event of a security threat. In a smart contract setting, the kill switch can either destroy the contract or deploy a halt, patch, and re-release of the contract in the case of a major bug or breach.

Article 30 of the Data Act requires smart contracts to have a clearly defined mechanism to terminate or interrupt their operation. The provision aims to ensure that a mechanism exists to terminate the continued execution of transactions and that the smart contract includes internal functions which can reset or instruct the contract to stop or interrupt the operation to avoid future accidental executions. The conditions under which a smart contract could be reset or instructed to stop or be interrupted should be clearly and transparently defined.

The other provisions in Article 30 are less controversial. Section B of the article requires smart contract providers to incorporate control mechanisms for terminating transaction execution, which offers an extra layer of security against exploits. However, this focus may offer some contradictions to what DeFi is supposed to be. Smart contracts are supposed to provide autonomy in transactions, thus eliminating third parties.

At first glance, this might seem like a sensible precaution. After all, were all concerned about cyber attacks and data breaches these days. But in the world of Blockchain and cryptocurrency, where autonomy and decentralization are key tenets, the idea of a kill switch has ignited a firestorm of controversy. Many in the crypto community worry that the kill switch could give regulators and government entities too much power over decentralized finance (DeFi) and other Blockchain-based systems.

Whats more, the language of the Data Act is currently vague, leaving room for interpretation and speculation. Is the kill switch really a self-destruct button? Or is it more like a pause function, which can freeze a smart contract until the situation is resolved? And what exactly are the conditions under which non-consensual termination or interruption of a smart contract would be permissible? These questions and more have been swirling around the Blockchain community since the passage of the Data Act.

Some argue that the kill switch is a necessary evil, a way to ensure that smart contracts can be terminated in the event of a major security breach or bug. Others worry that the kill switch is a slippery slope, a tool that could be abused by regulators or powerful entities to control and manipulate the Blockchain ecosystem. As with most things in life, the truth probably lies somewhere in between.

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Why did the EU introduce it?

The European Union introduced the smart contract kill switch as part of its Data Act to address data privacy without stifling innovation. The aim was to give people more control over their personal information. The kill switch was introduced to ensure that smart contracts are secure and to prevent unauthorized access or data breaches. However, the introduction of the kill switch has generated concerns in the Web3 community. Some fear that the kill switch mandate would curb the decentralization of smart contracts by giving one person or a group of people the power to shut down operations.

How the Kill Switch Affects Decentralization

So, how dangerous is the smart contract kill switch? It really depends on who you ask. Some argue that it is a necessary tool to prevent hacks and other security breaches from causing serious damage, while others worry that it could be used to manipulate contracts unfairly and stifle innovation. Ultimately, it will be up to individual companies and organizations to decide how they want to incorporate the kill switch into their smart contracts

Pros of the Kill Switch for Decentralization

Proponents of the smart contract kill switch argue that it provides a safety net for consumers and prevents incidents such as the DAO hack of 2016, which resulted in millions of dollars worth of cryptocurrency being stolen due to a flaw in a smart contract. On the other hand, critics suggest that the kill switch undermines the very purpose of smart contracts, which is to enable trustless, decentralized transactions without the need for intermediaries.

Despite this controversy, the European Union believes that the smart contract kill switch offers significant benefits, such as:

Compliance with GDPR

The General Data Protection Regulation (GDPR) requires companies to ensure the security and protection of personal data. If a smart contract processes personal data, a kill switch can provide a way to stop the processing if a breach or security issue is detected. This feature offers an added layer of security to ensure that personal data is not compromised and reinforces trust in the technology.

Consumer Protection

If a smart contract is used in a consumer-facing application, such as an e-commerce platform, a kill switch can protect consumers in case of a malfunction or vulnerability in the smart contract. This can help prevent financial losses and ensure consumers trust in the platform. With the integration of a smart contract kill switch, users can have peace of mind knowing that they are protected from potential losses due to technical issues.

Regulatory Compliance

In the EU, financial services are heavily regulated, and smart contracts used in financial applications need to comply with various regulations, such as the Markets in Financial Instruments Directive (MiFID II). A kill switch can provide a way to comply with these regulations by allowing the suspension or termination of a smart contract in case of a violation. This feature is particularly crucial in ensuring that financial transactions are conducted in a secure and compliant manner.

Risk Management

Smart contracts can be used in applications involving high risks, such as insurance or derivatives trading. A kill switch can help manage these risks by pausing or terminating the contract if certain conditions are met, such as a sudden market crash or a security breach. When compared with a classic kill switch mechanism, the pause functionality represents a better fail-safe. Not only does it protect the network if caught on time, but it also salvages the contract and its funds by enabling it to resume operations.

However, with the pause functionality comes the question of security. To pause the smart contract, code admins need to use the systems private key, which becomes vulnerable to cyber-attacks once used online. In theory, access to this private key could give hackers admin privileges to the entire contract and could compromise the immutability of smart contracts.

To address this concern, smart contract admins can deploy a pause functionality without endangering the security of the entire smart contract by using different keys. One key enables the pause functionality, while another enables the unpause functionality, with both keys stored in an offline manner for added security. Separating the pause and unpause keys and storing both in a truly offline manner strengthens the security of the smart contract and eliminates potential points of failure.

Also, read Top 5 Ways To Recover Funds From Crypto Currency Scam

Cons of the Kill Switch for Decentralization

There are also drawbacks to the smart contract kill switch that must be considered. For instance, on August 30, 2022, OptiFi, a decentralized exchange, accidentally triggered a kill switch to its mainnet. This kill switch led to a permanent shutdown and the loss of USDC stablecoin tokens worth $661,000. While this kill switch was not utilized in a smart contract setting, it highlighted the risks that a classic kill switch poses on crypto-related projects and businesses.

Read more from the original source:

The EUs "Kill Switch": What Does It Mean For The Future Of ... - Blockchain Council

Could Jack Dorseys Bluesky be the Twitter replacement that we need?

As legacy checkmarks are removed on Twitter, leaving many high profile users more vulnerable to impersonation, Bluesky, the decentralized Twitter alternative, has been released on Android, which follows its initial launch on iOS back in February.

Though it currently remains invite-only, which will restrict take-up for now. But still,Bluesky is growing fast, and as you can see, its essentially a re-skinned version of the classic Twitter UI, and as more people go looking for a Twitter replacement, maybe now is the time for Bluesky to make a move, and expand access to more users.

Like Mastodon, Bluesky is built on a decentralized framework, which will put more control over each element of the experience into the hands of users.

As per the Bluesky website:

Were focusing on re-building the social web by connecting disconnected silos and returning control of the social experience to users. Our mission is to develop and drive the adoption of technologies for open and decentralized public conversation.

Decentralization is also a key focus of the cryptocurrency movement, which essentially aims to take the power away from the traditional powers that be, and put it back into the hands of the people, by providing each person with a means to manage their own data and process.

From a social media perspective, Bluesky is a means to re-distribute power back to users, and away from the few big tech players, in the form of more control over how algorithms and engagement systems are developed.

At the launch of the project, former Twitter CEO Jack Dorsey, the main driver of Bluesky, outlined three key focus areasfor the project:

Which no doubt sounds pretty appealing to many social media users, and as Elon and Co. continue to erode what Twitter itself once was, it could be that Bluesky shapes up as a better alternative to the other Twitter clones that are cropping up within smaller communities.

Indeed, according to The Verges Jay Peters, its currently the best Twitter alternative:

Right now, its a pretty small community of over 25,000 people, and it feels like everyone is really dedicated to maintaining a positive environment. Its also a nice break from Twitter, which continues to get worse every day

Given that various former tweeps are working on it, it makes sense that Bluesky feels very Twitter-esque - and again, with more people now seeking an alternative, it could be the right time for Bluesky to rise, and gather-up cast-offs from its former parent app.

Which would no doubt anger Elon, whos repeatedly sought to penalize and punish companies that he feels have wronged him.

As part of Elon Musks takeover at Twitter, Dorsey rolled over his shares of Twitter into Bluesky, which had been wholly funded by Twitter at that point. If Bluesky emerges as a competitor, you can bet that Elon will see this as a slight, which could have impacts for the new app, if Elon decides to come after it.

But it is, indeed, increasingly looking like it will be a viable Twitter alternative. Which is probably needed and with Elon continuing to attack news organizations, it would be little surprise to see more of them emerge on Bluesky instead, which may spark the beginning of a bigger shift.

Originally posted here:

Twitter Alternative Bluesky Comes to Android - Social Media Today

The Web3 space has completely revolutionized online interactions, but it is still not completely risk-free. While underlying technologies such as blockchain bring more resilience, Web3 has inherited many security risks from Web2. Moreover, it also faces new forms of attack.

With Web3 progressing at a fast pace, it is imperative to identify the risks associated with this new iteration of the internet. Four main categories of risks emerge from the transition to Web3:

Data security. The broader network topology in Web3 introduces new data security risks. While blockchain transactions are encrypted, and data decentralization reduces single points of attack, it exposes data to various risks, including data authenticity and manipulation. Additionally, less centralized oversight raises concerns about endpoint attacks, traffic overloads and service availability exploits.

Social engineering. Despite the adoption of blockchain-based infrastructures, Web3 is still plagued with social engineering threats. These risks include smart contract logic hacks, flash loan attacks, cryptojacking, rug pulls and ice phishing, among others. Traditional social engineering threats such as phishing attacks still pose risks, and the complexity of Web3 interfaces makes matters worse.

Identity. Web3 offers users more control over their data thanks to features like user-controlled wallets, ID portability and data minimization. However, self-sovereign identity, pseudonymity and anonymity also bring downsides. Transparent public blockchains come with security and privacy tradeoffs. User experience, privacy, compliance and anonymity concerns arise due to the decentralized nature of Web3.

Market manipulation. Web3 relies on decentralized networks that require secure channels to communicate with the real world. Oracles are the most common solution, but they still cannot guarantee the fairness of market prices or that the markets are not manipulated. In 2022, a rogue crypto trader used millions of USDC tokens to manipulate the price of Mangos MNGO token on its decentralized exchange to drain more than $100 million in liquidity from the exchange.

Many people are exploring the features of Web3, but few of them pay close attention to potential risks, especially because of the misunderstanding that Web3 is automatically way more secure than Web2. Thankfully, there are specialized tools that ensure safer navigation of the Web3 space, and one of them is Web3 Antivirus.

The tool can be easily set up as a browser extension, and it can verify all parties and assets that users interact with on Web3 to notify them before taking potentially dangerous actions. Web3 Antivirus audits the smart contracts behind all transactions in real time to identify dangerous logic, vulnerabilities and compromising permissions to access user funds. It also verifies tokens and simulates transactions before execution to ensure a secure outcome.

To date, the tool has already blacklisted over one million websites and identified tens of thousands of dangerous smart contracts.

Web3 Antivirus is improving its capabilities thanks to regular upgrades. The team developing the extension launched its 0.6 version earlier in April, adding several new features, including:

Thanks to ongoing improvements and a user-friendly approach, Web3 Antivirus helps users explore the Web3 space securely while reducing potential risks in real time.

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, 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.

Link:

Web3 security: How to identify the risks and use protection tools? - Cointelegraph

BitcoinBTC and ethereum have added a combined $400 billion to their market capitalizations so far this year, with one analyst already predicting the bitcoin price peak.

Subscribe now to Forbes' CryptoAsset & Blockchain Advisor and successfully navigate the bitcoin and crypto market roller-coaster

The bitcoin price last week topped $30,000 per bitcoin for the first time since June but has since fallen back along with ethereum despite Bank of America naming a surprise "key driver of digital asset adoption" that passed $1 billion in value last month.

Now, analysts with brokerage Bernstein have said a new "crypto cycle" has already begun for the price of bitcoin and ethereumthough this hasn't been fully appreciated.

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This will be the "first crypto cycle which will see participation from leading institutional investors," Bernstein strategists wrote in a report seen by Coindesk, with macro catalysts, a new bitcoin mining cycle, and ethereum upgrades all contributing to what they predict will create a new bitcoin and ethereum price bull run.

In March, two of the world's largest financial institutions with a combined $14 trillion in assets under management began quietly laying the groundwork for the next bitcoin, ethereum and crypto price cycle.

Following ethereum's long-awaited upgrade last week, ethereum cofounder and the project's spiritual leader Vitalik Buterin issued a stark warning over the future of the network that he said needs to be addressed before the next bitcoin, ethereum and crypto price bull run.

"The opportunity to build a new institutional financial stack on the blockchain remains a worthy goal, and serious participants remain focused on the long term," the researchers added.

FTX's sudden and surprise implosion late last year signaled the end of what the analysts called "toxic crypto leverage" and taught crypto traders the need for decentralization and self-custody wallets.

Meanwhile, this year's banking crisis that triggered a surge of outflows toward money-market funds and so-called systemically important banks has raised concerns over the "centralization of money."

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"Any potential dislocation, whether on the bank's credit side or on the sovereign side positions bitcoin perfectly as a safe-haven asset alongside gold," analysts Gautam Chhugani and Manas Agrawal wrote, adding to a Bernstein report earlier this month that said it's "irrational" to like gold and dislike bitcoin at this point in the macro cycle.

Earlier this month, JPMorgan analysts said the bank chaos vindicated many bitcoin, ethereum and crypto believersand issued a bullish bitcoin price prediction as a "hedge to a catastrophic scenario."

I am a journalist with significant experience covering technology, finance, economics, and business around the world. As the founding editor of Verdict.co.uk I reported on how technology is changing business, political trends, and the latest culture and lifestyle. I have covered the rise of bitcoin and cryptocurrency since 2012 and have charted its emergence as a niche technology into the greatest threat to the established financial system the world has ever seen and the most important new technology since the internet itself. I have worked and written for CityAM, the Financial Times, and the New Statesman, amongst others. Follow me on Twitter @billybambrough or email me on billyATbillybambrough.com.Disclosure: I occasionally hold some small amount of bitcoin and other cryptocurrencies.

See the original post:

Biggest Ever Crypto Cycle Has Already Quietly Begun After Huge Bitcoin And Ethereum Price Rally - Forbes

In 1781, Benjamin Franklin and George Washington were among the first members elected to the American Academy of Arts and Sciences, one of the nations oldest and most prestigious honorary societies.

This year, three UCLA faculty members were elected to join them. UCLAs new members for 2023 are:

Heather MaynardMaynard is UCLAs Dr. Myung Ki Hong Professor of Polymer Science and a member of the California NanoSystems Institute at UCLA. A leader in the area of protein-polymer conjugates important therapeutics for a variety of diseases Maynard develops new synthetic methods to make the materials, invents new polymers to improve properties such as stability and demonstrates preclinical efficacy of her conjugates with an eye toward translation for human health. She also works in the area of smart materials for precision medicine.

I am honored and humbled to be elected to the prestigious American Academy of Arts and Sciences, a society established to recognize people, both past and present, whoseknowledge, discoveries and innovations enrich andmake betterthe world, she said. I hope to continue my work to addtotheir contributions.

Harryette MullenMullen, a professor of English, is a poet, short story writer and literary scholar whose most recent books are Open Leaves, Urban Tumbleweed: Notes from a Tanka Diary and Broken Glish: Five Prose Poems. Her collection Recyclopedia won a PEN Beyond Margins Award, and her book Sleeping with the Dictionary was a finalist for a National Book Award, National Book Critics Circle Award and Los Angeles Times Book Prize. She is also the recipient of awards and honors from the John Simon Guggenheim Memorial Foundation, the Academy of American Poets and the Foundation for Contemporary Arts, among others.

It is an unimagined honor to find my name added to the long, illustrious list of accomplished thinkers, performersand creators elected to the American Academy of Arts and Sciences, an organization that aspires to expanding knowledge, enriching cultureand working toward shared ideals, she said.

Daniel TreismanTreisman is a political science professor and a research associate of the National Bureau of Economic Research. His studies focus on Russian politics and economics as well as comparative political economy, including the analysis of democratization, the politics of authoritarian states, political decentralization and corruption.

Its humbling to be invited to join this incredible association of scholars, he said. So many of my intellectual heroes have been or still are Academy members.

This years nearly 270 inductees are drawn from academia, the arts, industry, policy, research and science, and include more than 40 international honorary members from 23 countries.

In its earliest days, the Academy sought members who would help address issues and opportunities confronting a young nation, said Nancy Andrews, chair of the academys board of directors. We feel a similar urgency and have elected a class that brings diverse expertise to meet the pressing challenges and possibilities that America and the world face today.

Continue reading here:

American Academy of Arts and Sciences elects 3 UCLA faculty ... - UCLA Newsroom