Značka: blockchain

Illicit cross-chain transfers expected to grow to $10B: Here's how to prevent them

Improved blockchain analytics will become increasingly important to combat the use of cross-chain bridges for illicit means, which are estimated to surpass $10 billion in value by 2025.Blockchain analytics firm Elliptic forecasts a 60% rise in the value of illicit cryptocurrency laundered through cross-chain bridges from $4.1 billion in June 2022 to $6.5 billion next year. This figure is projected to double midway through the decade.Cross-chain crime has been a major talking point in 2022 with over $2 billion fleeced in hacks targeting cross-chain bridges. Aside from these bridges and their contracts being targeted, these bridges have also become an avenue for criminals to launder cryptocurrency. A prime example is an unknown hacker moving stolen funds from the now bankrupt FTX using cross-chain bridges.Cointelegraph unpacked the findings of research released by Elliptic in correspondence with senior cryptocurrency threat analyst Arda Akartuna. The Elliptic analyst explained that billions of dollars in assets have been transferred between Bitcoin, Ethereum and other blockchains using bridge services such as Portal, cBridge and Synapse. Decentralized cross-chain bridges offer an unregulated alternative to exchanges for transferring value between blockchains.Related: After FTX: Defi can go mainstream if it overcomes its flawsWhile some bridges are used legitimately, Akartuna noted that the tools have emerged as a key facilitator in money laundering. ‘Chain-hopping’, or moving proceeds of crime between blockchains, has long been used to evade tracing efforts by exchanging cryptocurrency assets through decentralized or anonymous exchanges.As blockchain surveillance, enforcement and regulatory efforts have improved, criminals have turned to cross-chains to continue laundering illicit funds:“Decentralized cross-chain bridges provide unregulated alternatives that are being embraced by cybercriminals.”Akartuna also notes that the sanctioning of cryptocurrency mixing service Tornado Cash has seen a shift in the way criminals launder money. Decentralized exchanges, cross-chain bridges and coin swap services are becoming a new means of moving illicit funds:“Although the use of these platforms is overwhelmingly legitimate, they facilitate cross-chain money laundering and terrorist financing due to their lack of identity checks and anti-money laundering controls.”An example of increased use of a cross-chain avenue for illicit means is RenBridge, which Elliptic research found to have laundered around $540 million of criminal proceeds as of August 2022. Meanwhile centralized exchanges, which also facilitate cross-chain or cross-asset swaps, are less popular for illicit actors given the push for AML and identity screening/KYC solutions.The growing prevalence of cross-chain bridge usage for illicit means highlights the need for solutions or efforts to minimize criminal usage. Akartuna suggested users conduct due diligence on the services used to hop between blockchains and tokens and be wary of platforms associated with illicit activity.Businesses should make use of blockchain analytics tools to screen addresses and transactions and set clear risk rules for their cryptocurrency usage. Nevertheless, there are some circumstances that simply cannot be predicted or avoided, as Akartuna explained:“The sanctions against Tornado Cash is a prime example of how legitimate wallets may be inadvertently tainted due to sudden enforcement actions, as you now have ‘pre-sanctions activity’ which doesn’t carry the same risk as post-sanctions activity.”Existing single blockchain analytics solutions have done a lot to combat money laundering in the cryptocurrency space but fall short of capabilities to trace, screen or forensically investigate transactions across blockchains or tokens.As the Elliptic threat analyst highlighted, once an asset ‘hops’ to a different blockchain, investigations become significantly more complex and resource intensive. “The risk here is that a wallet can hold any number of different assets, and legacy blockchain solutions are not able to automatically trace the activities of the same entity across separate chains.”Screening the movement of funds on separate blockchains may see some assets flagged as sanctioned while others may show no risk. In theory, this could lead to an exchange or wallet user unwittingly transacting with a sanctioned entity.Elliptic, for example, makes use of a proprietary analytics tool with ‘holistic screening’ capabilities which merges existing blockchains into an interconnected system. This allows for visualization and screening across chains to better detect the movement of illicit funds.

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Blockchain-based fintech company prepares to enter $500B freight settlement market

The world is quick to blame inflation for the rising prices at grocery stores and retailers. This was the #1 political issue for recent Election Day voters in the United States. For example, media sources recently reported poll data that 85% of Americans could not afford to spend $200 on a Thanksgiving meal in November 2022, and only 25% could afford $100.However, few recognize inflation is only part of the problem. Higher costs for products and services are also directly attributable to settlement fees paid by transportation providers who are forced to take out the equivalent of payday loans against their freight invoices.Shipper payment terms in the transportation industry are known to be egregious, and most transportation carriers cannot afford to wait 30–180 days to get paid. When a carrier factors, it pledges the collection rights in its accounts receivable to the bank and, in exchange, the bank advances cash in about 10 business days.By industry averages, this cost to carriers is 3% of every receivable — often escalating up to a 25% annualized interest rate. The bank then waits the 30–180 days and collects directly from the freight shipper. If inflation is thought of as a silent tax, invoice factoring is a second layer of silent taxes on everything we buy.More than 1 million U.S. trucking companies are factoring 100% of their invoices, and 50% of third-party logistics companies are too. Due to inflation, larger transportation companies are also losing 3% or more of their invoice values when waiting over 60 days to get paid by shippers. These costs create higher freight rates, and the excesses ultimately trickle down to every household and consumer.Fixing a broken supply chain by settling on the blockchainTruckCoinSwap (TCS) is a fintech and freight-tech company utilizing a blockchain-integrated mobile app to provide fast and free freight receivables settlement to transportation companies. Moreover, TCS is listed on CrossTower in the U.S. and abroad in 80 countries, and is now also listed on Uniswap.Chief technology officer Jake Centner explained:“Centralized exchanges can work very well, and the team couldn’t be more proud of the relationships TCS has made. However, the TCS token must also have a decentralized exchange and non-custodial option in the ecosystem for transportation companies and holders. Uniswap has been the gold standard in this space.”To that end, TCS has created a process and platform identical to how carriers are settling now, with one added step. A few days after uploading freight documents into the TCS mobile app, a push notification is sent and settlement is made available in the real-time U.S. dollar (USD) value of TCS tokens.The carrier can then accept settlement via direct deposit from TCS. After receiving the balance in its crypto wallet, the carrier can immediately sell through its exchange market to regain USD liquidity. By taking settlement via TCS, and being able to sell in a matter of minutes, carriers avoid both factoring costs and crypto volatility.By industry averages, TCS estimates every factoring freightliner can recapture a significant portion of its net revenue. In the supply chain, reducing operating costs makes transportation companies more solvent and applies downward pressure on freight rates. In time, the costs of goods and, more specifically, food prices, can decrease.Regarding the company’s adoption, CEO Todd Ziegler shared:“TCS already has truckers involved in the beta, and we were just approached by two more large strategics. One has 223 trucks. The second is one of the largest companies in the U.S. managing freight documents, with over 500,000 transportation users. It speaks volumes that these companies are already interested in integrating with TCS.”The future of freight and blockchainEarlier this month, TCS presented its solution at the Future of Freight conference to over 20,000 attendees and has since gained traction in both the crypto and transportation communities with features in FreightWaves, business publications and other related media.With many strategic relationships already in play, TCS believes it is in a strong position to help carry the transportation industry forward into web3. In looking ahead to the intersection of the two industries, Ziegler offered:“Following recent court rulings and the acceleration of the DCCPA [Digital Commodities Consumer Protection Act] on Capitol Hill, we’re going to see U.S. crypto exchanges eliminate several coins. Many exchanges are already struggling for revenue and AUM [assets under management], and they’re not going to stick their necks out in the wake of FTX. The projects with no real use case will be the first to go, and the digital assets with value propositions to industry will see greater market share.”Material is provided in partnership with TCSDisclaimer. 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.

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How Web3 resolves fundamental problems in Web2

Web3 returns content rights to the author, enhances the security level, eliminates unfair censorship, ushers in transparency, automates the functioning of software and facilitates a creator economy. Thanks to the characteristics of Web3, businesses can take advantage of opportunities that are beyond imagination. Concepts like decentralization and permissionless cybersphere were just in sci-fi. Nonetheless, Web3 hopes to resolve the problems in Web2, paving the way to a decentralized era in the internet. Data ownership Decentralization puts greater control in the hands of users, ending the monopoly of Big Tech. Users can decide whether they want to share their data or keep it private. The fact that computing power and decision making is diversified makes the system inherently more stable than centralized systems where the whole operation is hinged on a cluster of servers or a core decision-making entity or individual. Though several Web2 applications have moved toward multi-cloud hosting, the resilience of projects that are decentralized in real terms is simply at another level. Enterprises can select a topography for their application, depending on their own data landscape and challenges to address. Data security Data stored in a huge centralized database is quite vulnerable. Hackers need to break through just one system to compromise valuable user data. Often, insiders play a role in tipping key information to external malicious players. Decentralized systems are designed to be resistant to such behavior by a section of participants, making security in Web3 more efficient than Web2 systems in keeping data secure. On the contrary, when almost every company is going digital and data-driven, the risk of malicious attacks has risen exponentially as well. In such a scenario, vandalism in cyberspace has become a big threat, threatening monetary and reputation loss. Decentralization enhances the security level, if not eliminating the problems completely. Unfair censorship Centralized systems often subject users to unfair censorship. Decentralization transfers the authority to the participants, making it difficult for any single entity to influence a narrative that doesn’t suit them. A Web2 social media site like Twitter, for instance, can censor any tweet at any time they want. On a decentralized Twitter, tweets will be uncensorable. Similarly, payment services in Web2 might restrict payments for specific types of work. In Web3, censorship will be hard, both for participants with good intent and malicious players. Decentralized web promises control and privacy to all participants. Moreover, network participants can take an active part in the governance of the project by casting votes.  Financial freedom In Web3, every participant is a stakeholder. Backed by an array of technologies that inherently resist control, Web3 promotes financial freedom. Decentralized finance (DeFi), where anyone can freely engage in financial activities, is a prime example of the independence participants enjoy. Complying with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations opens DeFi to new user groups and mass adoption. Moreover, payments in Web2 are made in fiat, while Web3 payments are made through cryptocurrencies, though fiat payment systems can be integrated as well. Transparency Transparency is something built into the design of decentralized ecosystems. Nodes work in tandem to ensure the frictionless functioning of the system and no single node can take a decision in isolation. Even other participants have a role in decision-making regarding governance through the casting of votes. Related: What are governance tokens, and how do they work? Web3 transactions are practically irreversible and traceable, thus ruling out any possibility of someone making changes in the database post-transaction. This makes Web3 a potent tool against fraudulent behavior. Automation Smart contracts automate the system that can function without any human intervention. The code reflects the agreement between various stakeholders, executing transactions that cannot be reversed. Smart contracts substantially bring down operational costs, eliminate prejudice and make transactions more secure. Projects, however, have to be careful about vulnerabilities in smart contracts code that hackers can take advantage of to steal the booty. This can be overcome by getting the smart contract code thoroughly audited by a team having a proven track record in vulnerability assessments using a mix of manual and automated tooling. A Web3 example of accelerating automation is Zokyo, which specializes as an end-to-end security resource for blockchain-based projects. Creator economy Nonfungible tokens (NFTs), a component of the Web3 ecosystem, have added another dimension to the web economy. These tokens make each digital asset unique in some sense. Regardless of the number of times it is duplicated, there is some way to distinguish it. This feature is useful to safeguard these assets against online forgery and maintain exclusive rights of the owner over their assets. In Web3, NFTs could serve as metaverse assets, game assets, certifications and whatnot, opening up endless possibilities and empowering content creators to make money in an unprecedented manner. Earlier, when audiences consumed the content of a creator, the audience only had the emotional or intellectual benefit. Thanks to NFTs, creators were now able to turn their community members into investors and provide them with some tangible value out of the interaction. For instance, if someone has started a group on a decentralized social media site, the first 50 subscribers might be rewarded with redeemable NFTs if they spend a certain amount of time interacting there. Contrary to what many think, one doesn’t need to have the technical know-how to create an NFT-based economy. No code solutions such as NiftyKit are available for various development needs like building NFT smart contracts, revenue splits, embeddable SDKs (software development kits), token gating and more. Without any coding, one can begin building a creator economy.

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How blockchain technology is used in supply chain management?

To trace the activities along the supply chain more efficiently, concerned parties can access price, date, origin, quality, certification, destination and other pertinent information using blockchain. Traceability, as used in the supply chain sector, is the capacity to pinpoint the previous and current locations of inventory and a record of product custody. It involves tracking products as they move through a convoluted process, from raw materials to merchants and customers, after passing through many geographic zones. Traceability is one of the significant benefits of blockchain-driven supply chain innovations. As blockchain consists of decentralized open-source ledgers recording data, which is replicable among users, transactions happen in real-time. As a result, the blockchain can build a supply chain that is smarter and more secure since it allows for the tracking of products through a robust audit trail with almost concurrent visibility. By connecting supply chain networks through a decentralized system, blockchain has the potential to enable frictionless movement between suppliers and manufacturers. Furthermore, producers and distributors can securely record information such as the nutritional value of items, product origin and quality and the presence of any allergens using a collaborative blockchain network. In addition, having access to a product’s history gives buyers more assurance that the items they buy are from moral producers, thus making supply chains sustainable. On the contrary, if any health concern or non-compliance with the safety standards is discovered, necessary action can be taken against the manufacturer based on the traceability details stored on the distributed ledger.

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Crypto is breaking the Google-Amazon-Apple monopoly on user data

For decades, banks and insurance firms employed the same mostly static but highly profitable and centralized business models. Also for decades, Big Tech firms such as Facebook, Microsoft, Amazon, Apple and Google have monopolized user data for their profit. However, blockchain projects could significantly challenge Big Tech’s grip on user data. In 2015, the future of money was at the forefront of financial experts’ minds at the World Economic Forum in Davos. There, they started to seriously focus on the challenges presented by the rise of Bitcoin (BTC), digital assets and fintech. The world of finance began to realize that new technologies were upending everything in the sector, from savings to trading to making payments and cross-border and peer-to-peer transactions.Then in the summer of 2020 came the decentralized finance (DeFi) renaissance. After a couple of years of seeing an extraordinary rise in this new concept, the machine economy started to take center stage and concern over who should own the world’s new greatest commodity, data. Thanks to blockchain, we have DeFi, SocialFi, GameFi and a new emerging asset category: machine financialization (MachineFi), or the decentralized machine economy. It enables the owners of the billions of internet-connected devices worldwide to monetize them and developers to build decentralized applications (DApps) that draw device data for monetization.Related: Nodes are going to dethrone tech giants — from Apple to GoogleOne obvious question is: Why? Why do devices need financialization or decentralized markets? The answer is quite apparent.Big Tech has built trillion-dollar empires selling user data. Blockchain can change that by democratizing the data and machine economy.Historically, machine economies have failed to garner traction due to the infrastructure and capital requirements needed to operationalize them. Blockchain changes that by providing users, businesses and developers with an end-to-end solution to distribute, orchestrate and monetize large numbers of smart devices as part of a unified machine network.There are currently more than 50 blockchain projects related to the Internet of Things (IoT). There are also several traditional tech companies — such as IBM, Azure, Samsung, Apple, Google and Amazon — that are combining IoT and blockchain to power the burgeoning machine economy.Single version of the truthSo, as we look back at 2021, we see it as the year blockchains became smart. Oracles introduced a new data source that provided facts about the real world to make them more secure and trustworthy. Agreement on the price of Bitcoin and other crypto assets soon followed, creating a “single version of the truth” that led to the growth of a whole new financial system. DeFi was the foundation for new concepts like peer-to-peer lending and borrowing, and yield farming, which opened new opportunities for investors to earn passive income. Verifiable real-world data became the proof needed for the DeFi revolution.Everyone in the crypto space knows about proof-of-work and proof-of-stake, evidence provided to the blockchain to receive a reward or permission. If a Bitcoin miner proves they have solved a computationally intensive problem, they become eligible to be the next block producer. For Ethereum, if someone stakes a certain amount of Ether (ETH), they qualify to become an Ethereum validator.Similarly, a “single version of the truth” from unbiased, secure machines will be proof-of-work done in the real world, creating limitless opportunities for new business models.Proof-of-anythingWhat if “proof” could also be generated from regular activities people perform in their daily lives? IoT devices and machines — like those in a smart home, wearables, cameras and autonomous vehicles — have the potential to become “proof providers” that can use blockchain to capture the utility and value that people generate from everyday activities. Related: Facebook and Twitter will soon be obsolete thanks to blockchain technologyProof-of-presence could be determined from an asset tracker on a vehicle that feeds real-time GPS location information to a crowdsourced map. In the insurance space, proof-of-health can be provided by wellness data from a wearable, or proof-of-safety can be obtained from driving patterns. Proof-of-humanity helps verify people’s identity with biometric information.Smart devices and machines on the blockchain will provide an opportunity to return data ownership to the people, enabling them to do what they wish with their property — including monetizing it. Blockchain-based IoT projects offer greater trust, security, interoperability and scalability than their predecessors, and they generate new efficiencies and business value by drawing on the data supplied by IoT devices and sensors.Smart devices: The new machine economyBy 2030, estimates suggest IoT projects will represent more than $12 trillion in value globally. But who will own this value? Will large corporations continue to manage devices on centralized cloud platforms and be the gatekeepers of the new machine economy? We are at a pivotal moment in history. The decisions about how the machine economy evolves will reap consequences — or benefits — for decades.A decentralized backbone, purpose-built to enable billions of machines on the blockchain, is what we need to democratize the machine economy/IoT industry and remove it from the domain of Big Tech. The IoT machine economy would require a combination of blockchain, secure hardware and confidential computing to empower user-owned devices, apps and services:Secure hardware captures and signs real-world data that anyone can verify and trust. Real-world data oracles then bring this verifiable data to the blockchain in a trusted manner.Decentralized identity enables humans and machines to own their data as digital assets they can earn and trade using DApps.By pairing the integrity of secure hardware with the immutability of blockchain, we can create a new paradigm for end-to-end trust to help ensure that the machine economy grows in a way that creates more opportunities for users and curbs the influence of the few large companies that would seek its control.Raullen Chai is the co-founder and CEO of IoTeX. He previously worked for companies including Google, Uber and Oracle. He holds a Ph.D. from the University of Waterloo, where his research focused on designing and analyzing lightweight ciphers and IoT authentication protocols. At Google, he led many important security initiatives for its technical infrastructure, including mitigation of SSL attacks, privacy-preserving SSL offloading and enabling certificate transparency for all Google services. He was also the founding engineer of Google Cloud Load Balancer, which now serves thousands of cloud services, with 1 million-plus queries per second.This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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Blockchain-based infrastructure forges the future for carbon markets, crypto and commodities

The environment is now a global priority, evidenced by the threat of increasing carbon dioxide emissions reaching 414.72 parts per million, a new record high in 2021, as reported by the National Oceanic and Atmospheric Administration’s Climate in the United States. With the impact of these emissions on climate change in mind, many countries have publicized their mission to lower their carbon emissions. For example, the United States has openly communicated its plan for environmental commodity measurement through the Bureau of Economic Analysis.However, for many sectors, achieving absolute-zero carbon emissions is impossible; carbon offsetting becomes crucial to counteracting residual emissions. Under this model, organizations can compensate for residual emissions by investing in projects which absorb carbon. Carbon offsets then become a method for tracking the number of credits an individual or organization needs to be carbon neutral.Consequently, the president and founder of 1GCX, Michael Wilson shares:“Environmental commodities, a class of assets that exist as non-tangible energy credits, are now recognized as the most crucial value creators in the next 10–50 years.”Consider that with the environment and carbon becoming a top priority for the world, the traditional way the world will view energy and, more importantly, value, is also likely to shift. As more countries begin operating on an energy-credit-first approach, a value denominated in U.S. dollars and debt that may never be repaid may no longer be sustainable.Value, which is a construct of perception, may shift for countries to recognize non-tangible energy credits — more specifically, carbon credits to their balance sheets. Recognizing energy over dollars makes sense when you consider how significant U.S. debt is and how paying it off requires a budget surplus, which hasn’t occurred in the country since 2001.Unifying the carbon marketCurrently, there is still no unified solution for the carbon market that allows participants to quickly and seamlessly capture the value of carbon commodities. Today, several private companies offer carbon offsets to companies or individuals, each representing investments of contributions to forestry or other projects with a negative carbon footprint.Alternatively, buyers may purchase credits on a carbon exchange, but unfortunately, traditional finance (TradFi) has a poor reputation for being archaic and part of a suppressive system. High-quality carbon credits are scarce since verification methods vary, among other reasons.For this reason, 1GCX believes that taking the best parts of TradFi and merging them with blockchain will prove to be the only solution that can support a global transition to this new value system.Michael Wilson goes on to share:“Freedom begins and ends with the decision to be responsible for yourself and your world, specifically the environment around you. Trade, economics, and currency are at the very core of our civilization. If freedom is to be ideal, then the only path forward is one of liberty and responsibility. Cryptocurrency is bringing money, value, systems, and philosophy to the forefront of people’s minds. We are at a precipice, a new age is upon us, and the choice is one of consciousness, which is the way we will go.”A commodity-first approach1GCX is addressing these concerns head-on. The exchange represents a green technology that can bring the benefits of new markets to market valuations in cryptocurrency by highlighting its most promising projects. The resulting two-way bridge for carbon offset trading becomes part of a broad, holistic market that can facilitate adoption, education and connection across the crypto industry.Unlike others in the space, 1GCX incorporated a market-making, commodities-first approach to redesign its financial markets. Moreover, the incorporation of the pairing and cross-application of crypto, commodities and carbon credits differentiate this platform from other exchanges. For users, this means a new user experience for trading on the platform, with access to live markets in carbon and energy. Therefore, 1GCX will become an ecosystem starting with a marketplace for everyday people to access one of the most well-kept secrets in global finance — carbon commodities, also known as Natural Asset Capital.Looking at the rest of the ecosystem, users will come face-to-face with transformative offerings centered around tokenized bonds, called black bonds, and new payment systems that integrate crypto with crypto-commodity pairings.Since May 11, 2022, 1GCX has continued to offer trading pairs with Bitcoin (BTC), Dogecoin (DOGE), Ether (ETH), USD Coin (USDC) and Tether (USDT), and some less common trading pairs against not just the U.S. dollar, but also the Canadian dollar, the euro and the British pound, in addition to other well-known digital assets and physical commodities. Built on the best fundamentals from TradFi, the platform’s exchange has resolved to add new cryptocurrency assets every week. It also shares roadmap plans for creating the first digitized carbon assets from a variety of offset verifiers around the world. These assets are said to be available for trade as early as Q4 2022.Unlike today’s private exchanges, 1GCX will offer smooth and fast settlements, complete with low fees. For new users, this means having access to one of the most accessible platforms to use, even if they have never used a traditional exchange before.R.A Wilson, the chief technical officer of 1GCX, reiterates the company’s mission:“Our economic principles of open and transparent markets begin with increasing the flow of capital and accounting for unavoidable emissions through the use of free market solutions such as carbon offsets in a way that benefits everyone.”Material is provided in partnership with 1GCXDisclaimer. 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.

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Crypto awakening: Researcher explains ETH exodus from exchanges

Blockchain analytics carried out by a Nansen researcher has highlighted outflows of Ether (ETH) and stablecoins from centralized exchanges in the wake of FTX’s collapse.Nansen research analyst Sandra Leow posted a thread on Twitter unpacking the current state of Decentralized Finance (DeFi), with a specific focus on the movement of ETH and stablecoins from exchanges.As it stands, the Ethereum 2.0 deposit contract contains over 15 million ETH while some 4 million Wrapped ETH are held in the WETH deposit contract. Web3 infrastructure development and investment firm Jump Trading holds over 2 million ETH tokens and is the third largest holder of ETH in the ecosystem.The current state of DeFi in @nansen_ai charts — sandra lmeow (@sandraaleow) November 22, 2022Binance, Kraken, Bitfinex and Gemini wallets feature in the largest ETH balances list while the Arbitrum layer 2 roll-up bridge also holds a significant amount of Ether.As Leow explained in correspondence with Cointelegraph, the percentage increase of ETH held in smart contracts can be seen as an indicator of ETH flowing into various DeFi products. This includes decentralized exchanges, staking contracts and custody services.The recent collapse of FTX may have als led to fears for users holding assets with third-party custodians like centralized exchanges. Leow highlighted the reality that the safety of funds held on exchanges may not be guaranteed:“There is an amplification for the quote, “Not your keys, not your coins”, and this is especially important given times like these.”According to Nansen’s exchange flow dashboard, Jump Trading stands out as an entity with significant withdrawal volumes from exchanges in comparison to their deposits. Leow presented a number of possible reasons for Jump Trading’s token movements, noting the firm’s exposure to liquidity hub Serum (SRM) tokens:“Due to their exposure to the FTX fallout, they had to offload some tokens out of exchanges in need of liquidity. In the last 7D, we’ve seen Jump Trading withdrawing ETH, BUSD, USDC, USDT, SNX, HFT, CHZ, CVX, and various other tokens from multiple exchanges.”A substantial amount of ETH has flowed out of a number of major exchanges over the past seven days as well. $829 million worth of ETH departed from Gemini, while Upbit saw $797 millions of ETH moved from its account. $597 million of ETH flowed out of Coinbase while Bitfinex also saw around $542 million worth of ETH withdrawn from its platform.The past week also saw a significant amount of stablecoins moved off exchanges. Stabelcoins worth $294 million flowed out of Gemini, while Bitfinex saw $173 million moved off its platform. KuCoin and Coinbase followed, with $138 million and $108 million of stablecoins withdrawn from the two exchanges respectively.Leow also unpacked in on the movement of stablecoins, telling Cointelegraph that outflows typically indicate users are on the sidelines and capital is not flowing into the cryptocurrency space:“Perhaps, the market contagion and prolonged bear market reduces the appetite for traders to be actively investing and involved in the space.”Nansen has played its part in delivering key insights into major ecosystem events in 2022. The blockchain analytics firm delved into on-chain data to piece together the collapse of Terra in May 2022. It then followed suit with a deep-dive into FTX’s collapse, with evidence suggesting collusion between the exchange and crypto trading firm Alameda Research. Both firms were created and controlled by Sam Bankman-Fried.

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Unique Web3 tech primed to democratize Internet of Things industry

We live in houses that are capable of monitoring and controlling a wide range of internal processes — from heating and cooling to security and surveillance mechanisms. Our cars keep track of external conditions and are well on their way to driving themselves. Our phones are constantly gathering valuable data and recording our activities — both on our devices and in real life.Smart homes, smart cars, smartphones — all of these and much more are part of the rapidly expanding Internet of Things (IoT), which serves as the foundation of the machine economy. The IoT is what connects all of our smart devices and machines, and while the industry has produced remarkable achievements that have improved lives around the world, it is also an industry that has been centralized for decades.That centralization has left smart device users with little control over their personal data. W3bstream, a leading project in MachineFi — the decentralized machine economy — has the potential to challenge the current IoT monopoly, benefitting billions of smart device users worldwide.The booming IoT industryMckinsey predicts the IoT is on pace to add anywhere from $5.5 to $12.6 trillion to the global economy by 2030. A huge chunk of that growth is attributed to IoT solutions in the retail, home and health sectors. There are many potential benefits to enhanced connectivity among our devices and the things we interact with, from health and safety improvements to time-saving advantages.However, for all of the promise of the IoT, the proliferation of smart objects and the increasingly important role they play in our lives is raising significant questions tied to privacy concerns and the dangers of concentrated power.One of the reasons that the IoT industry has proven to be so profitable is the increasing value of consumer data. While the IoT has brought improvements to human safety, longevity and quality of life, there are also downsides due to the sacrifices that come at the price of convenience. The privacy debate has been roiling for some time now in the tech sector, as a number of companies have gone to great lengths to acquire user data. The intrusiveness of these companies and the subsequent liberties they have taken in profiting off of the data they collect has drawn the ire of consumers across the world.Despite the concerns that many share regarding privacy overreach, given how thoroughly embedded into our lives services provided by companies like Google and Amazon are, there has been a general sense that little can be done to change the tide and give users control over their data. However, there is an alternative approach to IoT development that has the potential to recalibrate the industry’s power dynamics.W3bstream and the fight for the future of the IoTMachineFi Lab, the core developer of the IoTeX Network — a project that is working to merge blockchain technology with the IoT — has recently announced the rollout of a new product called W3bstream. W3bstream is a chain-agnostic system that has been developed to disrupt the monopoly that has been formed around user data and smart devices.The project has taken a leading role in the nascent MachineFi industry, which has emerged as more efforts are being made to decentralize the machine economy. Key to MachineFi is infusing the principles of Web3 into the IoT, so that users will be able to maintain control over their data and protect their privacy, while still enjoying the benefits of the vast interconnected network of devices and services.Beyond just protecting the end user, W3bstream will give users the option to profit from their own data, reshaping the current state of the industry. The key to being able to do this is the platform’s decentralized approach, which takes the ownership possibilities opened up by blockchain technology and applies it to the full spectrum of the IoT.The strong technological underpinnings of the platform allow it to penetrate into all industries that use and create smart devices. The full range of devices that can operate on W3bstream include sensors, smart TVs, smart homes, self-driving automobiles and even smart cities. Via the platform, Web3 tech can be implemented by connectivity services, supply chain operators, healthcare providers, manufacturing companies and environmental protection agencies, among many others.The benefits without the compromisesThe incentive to introduce Web3 paradigms to these sectors lies in the benefits it will bring to billions of people. Just like in the current iteration of the IoT, people will be able to use their devices to monitor and improve key activities and aspects of their lives. However, in the Web3 model, people also stand to get rewarded for participating in the collection of data, all while being able to maintain their privacy.The way this works is through data pools to which participants can contribute without having to reveal their names or any other information they wish to remain private. In the health sector, this could greatly advance research efforts without participants having to cede unnecessary personal information to third parties that may use the information to profit. Instead, the process would be much more democratic and streamlined to focus on scientific advancement and communal benefit rather than perpetuating revenue flows for corporations that have accumulated sprawling control over various facets of modern life.In addition to the advantages this kind of platform presents for end users, W3bstream is also remarkable for the ease it has introduced into the process of application building. MachineFi Lab’s one-of-a-kind data compute infrastructure enables developers, smart device makers, and businesses to build Web3 applications in less than 50% of the time — and at half the price — it takes to build similar applications with other comparable software.Currently, there are about 42 billion smart devices in use around the world. As substantial a figure as that is, this is still just the beginning of the machine economy; by 2025, people will own about 75 billion smart devices and machines. The more developed this industry becomes, the more difficult it is going to be to make substantial changes. W3bstream and other MachineFi projects are trying to lay the foundation for a democratized IoT now while it is still possible.

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High sentiment in FTX's shadow: event recap for Texas Blockchain Summit

Apparently, not everything is bigger in Texas. At least not in the days following a major crypto exchange declaring bankruptcy.The collapse of FTX and the ripples former CEO Sam Bankman-Fried made in the crypto space were on many people’s lips at the Texas Blockchain Summit held from Nov. 17-18 in the state capital of Austin. Unlike at the Texas Blockchain Council’s inaugural conference in October 2021 held over just one day, there were many open seats at the 2022 event, which featured speakers on energy, crypto mining, regulation, and innovations in the space.“Two years ago, this audience was packed,” said Chad Harris, chief commercial officer of crypto miner Riot Blockchain, at the summit — perhaps mistaking the year of the last event. “Today, this is an audience full of passionate people that believe that they can actually facilitate what they tell the public […] Every single time one of us fails in a disastrous way, it affects every one of us in this room.”Photo by authorUnited States lawmakers and regulators including Texas Senator Ted Cruz and Commodity Futures Trading Commission commissioner Summer Mersinger were in attendance, as were household names in the crypto space like podcast host Anthony ‘Pomp’ Pompliano and former presidential candidate Andrew Yang. The October 2021 summit had three U.S. senators speak, including pro-crypto lawmaker Cynthia Lummis. “Texas is a free state, and it’s attracted a lot of businesses […] I think we’re seeing the results of that,” Chamber of Digital Commerce founder Perianne Boring said to Cointelegraph at the summit.Kelsey Pristach, a senior policy adviser to Lummis, attended the 2022 summit to speak on a digital assets policy panel. However, some speakers scheduled to appear on panels on Nov. 17 were not in attendance for reasons unknown. Minnesota Representative Tom Emmer, announced as a confirmed speaker for the summit in May, did not appear on the final agenda. Although there were telltale signs of native Texans in the audience — a few cowboy hats and cheering whoop’s at bullish remarks — many attendees were dressed modestly in jackets, blazers, and slacks. Few sported attire like Bankman-Fried’s and other stereotypical “crypto bro” shorts and hoodies.“This industry needs to change, and it needs to change rapidly,” said Harris. “I think what’s going on today is a clearer sign and message that this industry… it’s time for us to mature.”He commented on the crypto market at one of its peaks:“Bitcoin was sixty plus thousand dollars, and everyone was driving lambos and flying planes and hanging on their yachts. And let me tell you something: it’s a much different world […] that type of bad behavior creates a bad environment for the people that are doing it right.”Cointelegraph’s Rachel Wolfson moderating a panel on ‘Bitcoin for Good’ at the Texas Blockchain Summit. Photo by author.”It was interesting to hear insights from speakers about how the FTX fallout will shape the industry moving forward,” said Cointelegraph’s Rachel Wolfson. “While the event wasn’t as heavily attended as last year, there were a number of high level speakers that had valuable insights to share regarding the FTX fallout and how Texas will continue to advance the industry forward with strong support for Bitcoin mining and blockchain innovation.”While Bitcoin (BTC), energy, and mining were largely the theme on Nov. 17, the last day focused on regulation and policy, with many speakers suggesting the fall of FTX could trigger a disproportionate response from lawmakers. Yang referred to a potential “appetite for regulation” among policymakers in the United States, while CFTC commissioner Mersinger suggested that the government may be “past the education stage” in crypto education and was moving towards action.Related: Event recap Austin’s SXSW 2022: NFTs everywhereMany in the crypto space said that they see Texas as a regulatory-friendly environment for mining firms as well as blockchain-based projects, as Governor Greg Abbott has publicly said he was a “crypto law proposal supporter.” The Texas Blockchain Council reported roughly 1,000 people attended the 2021 summit, while a report from the Texas Tribune suggested there were “hundreds of investors, legislators, professionals and enthusiasts” at the 2022 event.

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