Permissionless

permissionless

Cryptocurrencies, or let’s say, Bitcoin (the first one ever), started as a quite small geeky niche in 2009. Very few people fully understood the concept, let alone guessed its potential back then. It wouldn’t be until May 22, 2010, that the first-ever real thing would be bought using BTC, and it was two pizzas. In a P2P transaction made between two American developers. So, we can say for sure that crypto wasn’t popular enough to be regulated by big-shot lawmakers. That first purchase was like starting a snowball rolling downhill. People started to use Bitcoin as a global and permissionless payment method. Even for non-very-legal stuff, since it was a pseudonymous coin, difficult to track and block. That’s how the first BTC-focused marketplace was born: Silk Road, only available through the Tor browser, on the Darknet. That’s because it sold all kinds of illegal items —from drugs to weapons. It wasn’t the best publicity for Bitcoin, sadly. when they dismantled the site and arrested Ross Ulbricht, its founder. Bitcoin wasn’t designed to commit crimes, but it stayed in the general opinion (and in the lawmakers’ minds) that way for a while. This way, the first big ‘regulatory encounter’ the cryptocurrency had was against the US Federal Bureau of Investigation (FBI) in 2013 On the other hand, the terms “blockchain” and “distributed ledger technology” started to catch the attention of institutional players. Bitcoin’s underlying technology was becoming a promise to improve their own fields, so global regulators could be flexible about it. First Steps + Sandboxes Over the years, numerous companies and organizations started to test distributed ledgers in their own processes or directly created new services around this technology. developers in the crypto space should be generally free to experiment and explore new ways of using this technology without requiring explicit permission from regulatory authorities. To avoid stifling innovation, the general regulatory approach was “permissionless innovation:” For instance, US Commodity Futures Trading Commission (CFTC) Commissioner J. Christopher Giancarlo delivered a speech about it in 2016. According to : his words “«Do no harm» was unquestionably the right approach to development of the Internet. Similarly, “do no harm” is the right approach for DLT. Once again, the private sector must lead and regulators must avoid impeding innovation and investment and provide a predictable, consistent and straightforward legal environment (...) I believe that innovators and investors should not have to seek government’s permission, only its forbearance, to develop DLT so they can do the work necessary to address the increased operational complexity and capital consumption of modern financial market regulation.” Regulatory sandboxes for crypto Meanwhile, in the US and other parts of the world, started to appear for crypto companies as a provisional solution. These are programs launched by regulatory authorities where without immediately facing the full range of regulatory requirements. By considering the results of these tests, they could create proper rules for the future (in theory). regulatory sandboxes a controlled and supervised environment is created to allow businesses to test new products, services, or models One of the first authorities to apply the sandbox method for crypto companies was the Canadian Securities Administrators ( ), in 2016. In the same year, the UK Financial Conduct Authority (FCA) its own sandbox program with at least 24 crypto and fintech companies included. In the next few years, authorities from , , the , , the , and more regions would join this trend. But that would be just the starting point for crypto regulations worldwide. CSA launched Japan Panama Isle of Man Spain European Union Exponential growth and more incidents We can’t say sandboxes just died out because globally. However, authorities were always skeptical of cryptocurrencies more than their underlying technology, and that didn’t exactly change too much. For 2021, the global cryptocurrency market capitalization reached peaks of $2.7 trillion [CMC], and [ ]. they’re still around at least 103 countries (52%) were applying Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) laws and taxes for crypto-related activities US Library of Congress Report In a market of this size, some incidents and crimes were bound to increase. According to the by Chainalysis, “Cryptocurrency-based crime hit a new all-time high in 2021, with illicit addresses receiving $14 billion over the course of the year, up from $7.8 billion in 2020.” Stolen funds and crypto scams were the leading crimes that year. 2022 Crypto Crime Report Meanwhile, a huge regulatory step was taken in A fact that increased not only that coin use but maybe the whole crypto market cap. And the concerns of global organizations, starting with the International Monetary Fund (IMF). how this kind of adoption could cause a series of financial and legal issues for the American country and beyond. El Salvador by June 2021: Bitcoin officially became a legal tender. They expressed But 2022 would be the year of global lawmakers becoming really alert against the crypto world, due to several unfortunate and high-profile incidents. Terra, 3AC, and FTX It’s even difficult to believe that happened in the same year. However, we can say it was like big dominoes falling. The first market crash involved Terra (LUNA) and its stablecoin, Terra USD (UST). UST lost its $1 peg on May 8, 2022, leading to panic selling and causing UST's value to plummet to $0.1. This collapse, alongside the failure to restore UST's peg, resulted in a staggering $40 billion collapse of the Terra protocol. all of this The second ‘incident’ involved the venture fund Three Arrows Capital (3AC), which managed up to $10 billion in assets and investments, including significant holdings in Terra (LUNA) tokens. Their bankruptcy filing in June 2022 had a ripple effect, impacting institutional creditors and causing losses for crypto protocols like Genesis Trading, Voyager, and Celsius, as well as affecting retail investors. Following Terra's collapse, 3AC faced financial troubles, ultimately owing $3.5 billion to global creditors. The last case centered on FTX, the third-largest global cryptocurrency exchange at the time. FTX faced a liquidity crisis in November 2022 due to severe funds mismanagement. Binance's decision to sell its FTT holdings (FTX native token) led to a surge in customer withdrawals that FTX couldn't meet. FTX filed for bankruptcy, and its founder, Sam Bankman-Fried, was arrested in December 2022. This, along with Terra and 3AC in the same year, would of course bring visible consequences for the whole industry in terms of regulations. The collapse of FTX raised concerns about investor protection and regulatory oversight, causing massive losses (over $3 billion) for institutional and retail investors. The current outlook We must note that regulatory crypto-friendliness varies from region to region, but we’re likely in the “aggressive” mode in many countries these days. This approach isn’t exactly new, though. New York, in the United States, has been applying a tight for crypto businesses since 2015, while China and other countries have this industry. BitLicense completely banned In the US, for instance, the Securities and Exchange Commission (SEC) over 150 crypto projects and brands since 2013. In 2023, some big names entered their targets: the global crypto exchanges Coinbase, Kraken, and Binance. Right now, other regions are becoming stricter against crypto as well. has been suing As a consequence, Changpeng Zhao (ex-CEO of Binance) pleaded guilty to charges of violations of AML laws in the US. The exchange to pay over $4 billion in penalties, while Zhao will be judged in the country. At least, Binance's products are still working normally, and the company has a new CEO —so no more big crashes in 2023. is expected The new Markets in Crypto Assets (MiCA) is expected to regulate all cryptocurrency providers, including stablecoin issuers, for the EU 27 member states. In the European Union, the first cross-border comprehensive regulatory framework for cryptocurrencies is set to take in June 2024. full force According to a study by , cryptocurrencies are legal in 119 countries, illegal in 22, neutral in 25, and regulated in 62. The majority of crypto bans are applied in Africa and Asia. On the other hand, , at least 42 different countries worldwide have been developing new crypto regulations since 2023. They include rules for stablecoin regulation, travel rule compliance, licensing and listing guidance, and crypto framework development. CoinGecko as indicated by PwC Crypto regulation for the future We can’t know for sure what’s next, but we can take some educated guesses. . The European Union already put its limits with MiCA, and other regions will likely follow suit sooner rather than later. In the US, a is being considered. The , , , , and are on the same path. After the Terra and FTX incidents, stablecoins and crypto exchanges have become top priority for regulators stablecoin-specific bill UK Hong Kong Singapore Australia South Africa Meanwhile, according to the , “130 countries, representing 98 percent of global GDP, are exploring a CBDC (Central Bank Digital Currencies).” These countries will likely adapt their own cryptocurrency regulations around their CBDCs, adopting them as legal tender. They pose some control and , though. Atlantic Council privacy concerns Beyond this, Could this be touched by government laws in the future? At least we know about some cases already. some mostly unexplored territory by regulators in the crypto world includes Decentralized Finance (DeFi) tools like bridges, Non-Fungible Tokens (NFTs), smart contracts, ID solutions, and memecoins. For example, the EU mandating the inclusion of a "kill switch" in smart contracts. This measure would require these apps to have an accessible and reversible mechanism to terminate their execution in specific circumstances, like a scam attempt. Likewise, the International Organization of Securities Commissions (IOSCO) a report about potential regulations for DeFi activities. passed a bill published The future seems regulated for a lot of aspects of the crypto industry, especially the ones somehow related to fiat currencies. However, we can still use tools without middlemen like , and do our best to support P2P operations. Remember that “ ” is being developed to trade freely, too. Obyte freedom software The absence of a single central authority or control point in most crypto ecosystems makes it challenging for regulators to shut down or control the entire network. In general, peer-to-peer (P2P) transactions eliminate the need for intermediaries, making it difficult for regulatory bodies to monitor and control transactions. The absence of powerful centers (like block producers) in DAG-based crypto ecosystems like makes them entirely regulation-resistant. any Obyte Additionally, the privacy features of some cryptocurrencies, including Obyte, pose challenges for regulators in tracing and monitoring individual transactions. The immutable nature of distributed ledgers ensures that once a transaction is recorded, it cannot be altered or tampered with, further enhancing resistance to regulatory interference. If you want to protect your data and funds, and have to choose between a centralized service and a decentralized one, always go decentralized! Featured Vector Image by storyset / Freepik

From Permissionless to Aggressive: Evolution of Crypto Regulation

অনুমতিহীন থেকে আক্রমণাত্মক: ক্রিপ্টো রেগুলেশনের বিবর্তন

Von unerlaubt zu aggressiv: Entwicklung der Kryptoregulierung

De lo sin permiso a lo agresivo: evolución de la regulación criptográfica

Du sans autorisation à l’agressif : évolution de la réglementation cryptographique

अनुमतिहीन से आक्रामक तक: क्रिप्टो विनियमन का विकास

パーミッションレスからアグレッシブへ: 暗号通貨規制の進化

무허가에서 공격적으로: 암호화폐 규제의 진화

De sem permissão a agressivo: evolução da regulamentação criptográfica

От недопустимого к агрессивному: эволюция крипторегулирования

İzinsizden Agresifliğe: Kripto Düzenlemesinin Evrimi

Từ không được phép đến hung hăng: Sự phát triển của quy định về tiền điện tử

从无许可到激进：加密货币监管的演变

Keywords: Airdrop, Integration strategies, Point program trends, User loyalty Tl,dr: Points programs unify DeFi integration across various dApps, enhancing asset utilization and effectively driving protocol growth while tackling the cold-start problem.


Pendle, Curve, and Morpho emerge as the go-to platforms for initial liquidity scaling


As the institutional DeFi and Trafi/RWA matures, permissionless risk manager curated vault is the future The rise of Eigenlayer, the pioneer of restaking infrastructure, has amassed a peak TVL of $20 billion as a top3 protocol by size, representing a large portion of all staked ETH, with Symbiotic and Karak following suit; the assets built top on it like Etherfi, Renzo and Puffer also experienced exponentially growth in 2024. As blockchains continue to grow and become more scalable, on-chain consumer apps and the wide range of possibilities they entail are now poised to have a greater influence on the broader crypto experience than ever before. In this dynamic environment, DeFi integrations have become a critical solution for bootstrapping liquidity and addressing the cold-start problem. Airdrops and points programs, which have become standard in crypto in 2024, have played a pivotal role in this process. The industry's relentless pursuit of user liquidity and attention through innovation and token incentives has created a highly competitive landscape. Points, which are not a new form of user loyalty, have conquered DeFi in 2024 by introducing an element of unpredictability and excitement to asset restaking. Unlike fixed liquidity mining, points introduce variability in rewards, which keeps users engaged and motivated. According to the Hook Model, proposed by Nir Eyal, the variability of the reward is crucial to the hook model. Novelty activates the dopamine system, which causes us to feel pleasure when we experience something new. The unpredictability of rewards keeps users engaged, similar to how a slot machine operates. kinda assemble the craze of airdrop in DeFi. Players feel extremely motivated to participate since rewards are unpredictable and random. Integration Stack
We explore the ways in which decentralized finance (DeFi) protocols began to tokenize ever-more complex forms of value in a composable manner, enabling an entire sector of decentralized financial services on chain, including lending, borrowing, trading, yield generation, and more. In many respects, DeFi protocols represent some of the first on-chain consumer apps to achieve product-market fit, fundamentally altering the way users interact with blockchains and continuing to serve as a driving force for on-chain activity today. The combination of speculation and utility can be quite powerful. Speculation can serve as an effective tool for early user acquisition. The internet itself thrives on attention, and in a world where competition for attention is growing exponentially, every dApp needs a certain level of attention to remain relevant. These DeFi integration enables the asset’s use cases and facilitate its netflows growth in various sectors. One of the most significant trends in DeFi integration is the rise of Proof of Stake + Restaking. This concept has changed the landscape for on-chain dapps, particularly for lending protocols, which occupy a significant portion of DeFi usage seen above. When creating a lending pair where users could borrow ETH using an LRT/ a LRT DEX LP token as collateral or enabling them farm the points/yields with leverage (and multiplying LRT liquidity). The most important thing for the collateral assets is that users are willing to pay relatively high interest rates to borrow LRT against them, since this will increase lending rates for LRT and grow demand then drive TVL. Source: https://dune.com/Henrystats/lrt-utilization-specific Current Trends in DeFi Integration From Uniswap to Curve
During the recent restaking war, Curve has emerged as a leading platform for DEX liquidity, surpassing Uniswap. Curve's advanced trading mechanics and ecosystem support, including CRV bribes, access to DeFi power users, and co-mkt, have made it a preferred choice for projects seeking liquidity. Unlike Uniswap, Curve's ecosystem offers comprehensive support for early-stage projects, driving its dominance in this niche.


Pendle's Dominance in Yield Trading
Pendle has established itself as a go-to platform for yield trading and a key component of on-chain liquidity. By aligning with the crypto Twitter narrative around liquid staking tokens (LSTs), Bitcoin staking, and real-world assets (RWAs), Pendle has positioned itself at the forefront of yield provision. Its ability to cater to emerging trends has solidified its role in the DeFi landscape, achieving a peak TVL $6.7Billion during the point season.



Risk’s First Vault Popularity
As restaking gains momentum, projects are integrating with additional infrastructures like Karak and Etherfi to enhance yield and user retention. Etherfi’s liquid vaults simplify staking and have attracted significant liquidity, leveraging the expertise of risk management firms like Gauntlet and Chaos Labs to optimize financial strategies. The liquid vaults on etherfi, including Usual’s USDe and Elixir’s deUSD, not only enhance yield across various protocols but also simplify the staking process. By reducing manual effort and lowering entry barriers, these vaults have attracted significant liquidity, with Etherfi leading the charge due to its first-mover advantage, no.1 TVL in restaking sector and efforts on security. There has been increasing popularity to launch a vault managed by risk managers, like Gauntlet, Chaos Labs and MEV capital. For context, risk management companies are economic security institutions, they provide professional cryptoeconomic security service including but not least risk parameter optimization, financial risk monitoring system, token incentive design, and treasury management, etc. for crypto native projects. Because of their proficiency in financial engineering and risk-sensitive approach, they had some success on gaining trust and liquidity when operating a liquid yield strategy, best exampled by Morpho V2 launch and their LRT onboarding strategy. I personally fully recognize their role as risk manager in DeFi and bullish on the strong potential with growing institutional adoption and RWA. Looking Ahead While some may argue that DeFi integrations with points systems are not innovative, their combination has brought more attention, traffic, and TVL to newer assets on-chain. These have become an indispensable part of the new assets on-chain scaling solution. As the industry continues to evolve, we expect to see even more innovative solutions emerging to meet the growing demands of on-chain consumers. The future of DeFi is bright, and with the integration stack, we are poised to witness even greater advancements in decentralized financial services. Keywords: Airdrop, Integration strategies, Point program trends, User loyalty Tl,dr: Tl,dr: Points programs unify DeFi integration across various dApps, enhancing asset utilization and effectively driving protocol growth while tackling the cold-start problem. Pendle, Curve, and Morpho emerge as the go-to platforms for initial liquidity scaling As the institutional DeFi and Trafi/RWA matures, permissionless risk manager curated vault is the future Points programs unify DeFi integration across various dApps, enhancing asset utilization and effectively driving protocol growth while tackling the cold-start problem. Points programs unify DeFi integration across various dApps, enhancing asset utilization and effectively driving protocol growth while tackling the cold-start problem. Pendle, Curve, and Morpho emerge as the go-to platforms for initial liquidity scaling Pendle, Curve, and Morpho emerge as the go-to platforms for initial liquidity scaling As the institutional DeFi and Trafi/RWA matures, permissionless risk manager curated vault is the future As the institutional DeFi and Trafi/RWA matures, permissionless risk manager curated vault is the future The rise of Eigenlayer, the pioneer of restaking infrastructure, has amassed a peak TVL of $20 billion as a top3 protocol by size, representing a large portion of all staked ETH, with Symbiotic and Karak following suit; the assets built top on it like Etherfi, Renzo and Puffer also experienced exponentially growth in 2024. As blockchains continue to grow and become more scalable, on-chain consumer apps and the wide range of possibilities they entail are now poised to have a greater influence on the broader crypto experience than ever before. In this dynamic environment, DeFi integrations have become a critical solution for bootstrapping liquidity and addressing the cold-start problem. Airdrops and points programs, which have become standard in crypto in 2024, have played a pivotal role in this process. The industry's relentless pursuit of user liquidity and attention through innovation and token incentives has created a highly competitive landscape. Points, which are not a new form of user loyalty, have conquered DeFi in 2024 by introducing an element of unpredictability and excitement to asset restaking. Unlike fixed liquidity mining, points introduce variability in rewards, which keeps users engaged and motivated. According to the Hook Model, proposed by Nir Eyal, the variability of the reward is crucial to the hook model. Novelty activates the dopamine system, which causes us to feel pleasure when we experience something new. The unpredictability of rewards keeps users engaged, similar to how a slot machine operates. kinda assemble the craze of airdrop in DeFi. Players feel extremely motivated to participate since rewards are unpredictable and random. Integration Stack We explore the ways in which decentralized finance (DeFi) protocols began to tokenize ever-more complex forms of value in a composable manner, enabling an entire sector of decentralized financial services on chain, including lending, borrowing, trading, yield generation, and more. In many respects, DeFi protocols represent some of the first on-chain consumer apps to achieve product-market fit, fundamentally altering the way users interact with blockchains and continuing to serve as a driving force for on-chain activity today. Integration Stack The combination of speculation and utility can be quite powerful. Speculation can serve as an effective tool for early user acquisition. The internet itself thrives on attention, and in a world where competition for attention is growing exponentially, every dApp needs a certain level of attention to remain relevant. These DeFi integration enables the asset’s use cases and facilitate its netflows growth in various sectors. One of the most significant trends in DeFi integration is the rise of Proof of Stake + Restaking. This concept has changed the landscape for on-chain dapps, particularly for lending protocols, which occupy a significant portion of DeFi usage seen above. When creating a lending pair where users could borrow ETH using an LRT/ a LRT DEX LP token as collateral or enabling them farm the points/yields with leverage (and multiplying LRT liquidity). The most important thing for the collateral assets is that users are willing to pay relatively high interest rates to borrow LRT against them, since this will increase lending rates for LRT and grow demand then drive TVL. Source: https://dune.com/Henrystats/lrt-utilization-specific Source: https://dune.com/Henrystats/lrt-utilization-specific Current Trends in DeFi Integration Current Trends in DeFi Integration From Uniswap to Curve
During the recent restaking war, Curve has emerged as a leading platform for DEX liquidity, surpassing Uniswap. Curve's advanced trading mechanics and ecosystem support, including CRV bribes, access to DeFi power users, and co-mkt, have made it a preferred choice for projects seeking liquidity. Unlike Uniswap, Curve's ecosystem offers comprehensive support for early-stage projects, driving its dominance in this niche. Pendle's Dominance in Yield Trading
Pendle has established itself as a go-to platform for yield trading and a key component of on-chain liquidity. By aligning with the crypto Twitter narrative around liquid staking tokens (LSTs), Bitcoin staking, and real-world assets (RWAs), Pendle has positioned itself at the forefront of yield provision. Its ability to cater to emerging trends has solidified its role in the DeFi landscape, achieving a peak TVL $6.7Billion during the point season. Risk’s First Vault Popularity
As restaking gains momentum, projects are integrating with additional infrastructures like Karak and Etherfi to enhance yield and user retention. Etherfi’s liquid vaults simplify staking and have attracted significant liquidity, leveraging the expertise of risk management firms like Gauntlet and Chaos Labs to optimize financial strategies. From Uniswap to Curve During the recent restaking war, Curve has emerged as a leading platform for DEX liquidity, surpassing Uniswap. Curve's advanced trading mechanics and ecosystem support, including CRV bribes, access to DeFi power users, and co-mkt, have made it a preferred choice for projects seeking liquidity. Unlike Uniswap, Curve's ecosystem offers comprehensive support for early-stage projects, driving its dominance in this niche. From Uniswap to Curve During the recent restaking war, Curve has emerged as a leading platform for DEX liquidity, surpassing Uniswap. Curve's advanced trading mechanics and ecosystem support, including CRV bribes, access to DeFi power users, and co-mkt, have made it a preferred choice for projects seeking liquidity. Unlike Uniswap, Curve's ecosystem offers comprehensive support for early-stage projects, driving its dominance in this niche. Pendle's Dominance in Yield Trading Pendle has established itself as a go-to platform for yield trading and a key component of on-chain liquidity. By aligning with the crypto Twitter narrative around liquid staking tokens (LSTs), Bitcoin staking, and real-world assets (RWAs), Pendle has positioned itself at the forefront of yield provision. Its ability to cater to emerging trends has solidified its role in the DeFi landscape, achieving a peak TVL $6.7Billion during the point season. Pendle's Dominance in Yield Trading Pendle has established itself as a go-to platform for yield trading and a key component of on-chain liquidity. By aligning with the crypto Twitter narrative around liquid staking tokens (LSTs), Bitcoin staking, and real-world assets (RWAs), Pendle has positioned itself at the forefront of yield provision. Its ability to cater to emerging trends has solidified its role in the DeFi landscape, achieving a peak TVL $6.7Billion during the point season. Risk’s First Vault Popularity As restaking gains momentum, projects are integrating with additional infrastructures like Karak and Etherfi to enhance yield and user retention. Etherfi’s liquid vaults simplify staking and have attracted significant liquidity, leveraging the expertise of risk management firms like Gauntlet and Chaos Labs to optimize financial strategies. Risk’s First Vault Popularity As restaking gains momentum, projects are integrating with additional infrastructures like Karak and Etherfi to enhance yield and user retention. Etherfi’s liquid vaults simplify staking and have attracted significant liquidity, leveraging the expertise of risk management firms like Gauntlet and Chaos Labs to optimize financial strategies. The liquid vaults on etherfi, including Usual’s USDe and Elixir’s deUSD, not only enhance yield across various protocols but also simplify the staking process. By reducing manual effort and lowering entry barriers, these vaults have attracted significant liquidity, with Etherfi leading the charge due to its first-mover advantage, no.1 TVL in restaking sector and efforts on security. There has been increasing popularity to launch a vault managed by risk managers, like Gauntlet, Chaos Labs and MEV capital. For context, risk management companies are economic security institutions, they provide professional cryptoeconomic security service including but not least risk parameter optimization, financial risk monitoring system, token incentive design, and treasury management, etc. for crypto native projects. Because of their proficiency in financial engineering and risk-sensitive approach, they had some success on gaining trust and liquidity when operating a liquid yield strategy, best exampled by Morpho V2 launch and their LRT onboarding strategy. I personally fully recognize their role as risk manager in DeFi and bullish on the strong potential with growing institutional adoption and RWA. Looking Ahead Looking Ahead While some may argue that DeFi integrations with points systems are not innovative, their combination has brought more attention, traffic, and TVL to newer assets on-chain. These have become an indispensable part of the new assets on-chain scaling solution. As the industry continues to evolve, we expect to see even more innovative solutions emerging to meet the growing demands of on-chain consumers. The future of DeFi is bright, and with the integration stack, we are poised to witness even greater advancements in decentralized financial services.

Web3.0 Marketing Playbook #3 | How DeFi Integration Empower Protocol Growth

There are any number of ways that the future can unfold money-wise. What’s for sure is that the way we understand now is changing. The biggest driver of change is that everything is moving digital. money There was a period in the early days of email when people treated inbox messages like you would messages you get on a fax machine. If you don’t remember this period, then you might not even know what a fax machine is. No matter. The basic point I’m driving at is that people use to get an email and then print it out to read it. Or they might even print the email and file it in a filing cabinet. Pre-mobile, the printing of digital artifacts, things like map directions, for example, were also regularly put to paper because how else would you know where you are going once you left your computer? That’s how it used to be. And, it’s funny thinking back to that period, that all of the printing of digital communications and search results, and online research felt completely normal. But really, that activity was a time of transition. It was a time of behavioral change, moving from the world of analog communications to the world of digital communications. As in the case of the map example, in the early days of the internet, there was a disconnect between the vision (like downloadable map directions) and the reality (how do you use them without printing once you leave your internet-hardwired machine?) We find ourselves in a similar situation with the movement toward digital money. On the one hand, there is tremendous innovation happening (like completely decentralized non-custodial digital assets and payment networks). On the other hand, there is still a lot to figure out — we still need the mobile equivalent of tech or the behavioral equivalent of not needing to compile paper files of emails — in order to fully realize the vision of open money. In that spirit, here are a handful of frameworks of how money and financial systems might evolve as all of the pieces come together for true step function change. These frameworks are based on a paper by called Four Visions For the Future of Digital Money. OliverWyman Forum Frameworks for how money will work in the future There are any number of ways that the future can unfold money-wise. What’s for sure is that the way we understand money now is changing. The biggest driver of change is that everything is moving digital. Our money system, which is essentially built on ledgers or analog networks controlled by governments and banks, is still very much based on very old architecture. Not that there’s anything wrong with old architecture. It’s just that we might not want old architecture handling critical transactions when better, more efficient alternatives exist. If you’ve ever had to wait 5-6 business days to get an ACH transfer, which is essentially sending money from one bank to another bank, then you know what I’m talking about. It can be equally as frustrating and even costly to send money across borders. The two main reasons why sending money between institutions or jurisdictions is cumbersome and costly are because the backends are not compatible (meaning the ledgers run by banks and payment companies take time to settle) and because of legal/regulatory reasons. Here are a few ideas of how the backend of money can/is changing: Private networks One potential outcome is that banks and other financial institutions see the capability and the utility of moving money to a blockchain-based, smart-contract-enforced, programmatic, and interoperable system that runs at the speed and scale of the internet. But for a lot of reasons ranging from overall security and controllable access, banks aren’t going to move to full non-custodial mode, or at least not fully. Instead, maybe they build private banking networks that try to have the best of both worlds in terms of the network effects of a global distributed ledger while also maintaining control by creating networks that require permission and controlled access. Digital central bank Central bank digital currencies (CBDC) are becoming a very real thing. The basic idea of a CBDC is that instead of a central bank issuing money through a treasury or some other branch of government and then using banks as a distribution model, central banks would be able to issue digital currencies directly to supported wallets and services. On one hand, this has the potential to increase the overall efficiency of central banking. It could also make money more accessible and monetary policy decisions based on actual money movement data because the system could be easily monitored and analyzed in real-time. The growing concerns about CBDCs is that moving money to a digital system that is controlled by a centralized government agency leads to privacy and security issues and has the potential to be used as a means of command and control. An app eat app world Another potential for the future of finance is that apps and services are designed and built to provide the ease and speed of access to digital products but can also interface with the traditional monetary and banking system on the backend. Inertia is already taking us in this direction. It makes sense for a lot of reasons, but the biggest is that the reliance on digital intermediaries doesn’t require a complete overhaul of infrastructure or revamping the central banks. We can probably most intuitively understand this model because we all already have experience navigating payment apps and other kinds of intermediary financial tools. The biggest issue or drawback to this system is that building a financial system on top of intermediaries that are themselves designed to create solutions to pain points or roadblocks just leads to more complexity, which most often results in increased costs and fees. Fully decentralized financial networks Instead of closed loops, intermediaries, or controlled access, fully decentralized money networks are built as public ledgers. The backend is supported by a system of distributed nodes that handle network operations and maintenance. And on the front end, users join the network and then are free to interact with one another without a layer in between (but also without amenities like customer support for account insurance). This system most aligns with the open money approach where layer one networks are built on and then other kinds of monetary or financial apps can be built on top, using a system of interoperable wallets, programs, and protocols. permissionless distributed ledgers If 2023 taught us anything, it’s that financial regulations exist for a reason. One big drawback to the fully decentralized model is that it is a regulatory headache. Likely, as on-chain analytics and reporting become more accessible and useable for regulators and watchdog groups, then some of the regulatory concerns become alleviated, opening more investment and innovation. The everything approach What we are seeing now in terms of new money innovation is the everything bagel approach. Maybe this works, and the diversification of different kinds of apps, services, and financial products all find their product market fit. This would mean that consumers would have options, but it might also create a system of fees and complexity. If we’ve learned anything from the internet, it’s that networks prefer consolidation over fragmentation. But then again, maybe that’s just an aging architecture, too. Also published . here

Evolution of Currency: Remembering When We Printed Emails and Implications for Money's Future

Legacy social media is in a state of disarray, creating the possibility of an inflection point. Web3 promises a solution, or at least an alternative. But adoption is still elusive. web3 Creating, building, and delivering an innovative product is hard enough. Add to this special challenge that a popular product — with all of its features and user-centric greatness — also has to come along at the perfect time to align with the fickle tastes of the masses. It’s into this complex fray that we can start to look at — particularly related to social networks and info sharing — and start to try and tease apart why there is not more of an uptick in use and adoption, especially against the backdrop of disarray happening right now across legacy social media platforms. web3 applications Building products for the future Often, product market fit is easier to understand by looking backward. The iPhone was crushed because the conditions for its launch were perfect (earlier and maybe demand would have been softer, or the cellular infrastructure wouldn’t have been as good, or… Later, and maybe it feels like a copycat or doesn’t quite become the category definer that it is). The issue though is that people launching products don’t have the benefit of hindsight. Instead, they have deadlines, investor expectations, and real-world constraints like employee churn. But when we look back at how great products or services have launched, we can see that there can be optimal times and conditions for product market fit. These priming events usually come as big inflection points, such as: : When new laws or policies require a change, well-timed products or services can take advantage and become a first mover in a new market. In some states, for example, recent regulations require new commercial construction to incorporate gray water systems or rainwater management into their site plans. The idea is that these features will make larger commercial buildings more sustainable. So, in the states or jurisdictions that are rolling out these kinds of green infrastructure rules, it is a great time to launch a business or develop products for this vertical that all of a sudden will have an influx of demand. Regulatory inflection points When there is a massive shift in technology, there can also be a massive shift in demand for new products and services. Take Google’s recent overhaul of its analytics reporting, for example. I don’t know what the stat is, but a massive chunk of digital businesses, from e-commerce to advertising, rely on the reporting and metrics of Google Analytics. Recently, Google updated its analytics system to something called GA4. The new platform is not just an update — it’s like working with an entirely different product. So, naturally, people offering setup or consulting services — and others are building entire businesses (like courses and digital products) around the idea of filling a need of helping people understand a new spin on what has become a core piece of most online or digital businesses. Technological inflection point: One of the clear winners of the Covid global pandemic was the footwear company Crocs. Crocs have been around since 2002, but for almost 20 years, it remained almost a fringe footwear company. For a long time, Crocs were worn by… (well, nobody really knows who), but then once the pandemic hit, the simple slip-ons seemed like they were everywhere. Rocking Crocs with socks became a routine fashion staple. Cultural inflection point: We can all remember when there were major shifts in the economy — because the last one wasn’t that long ago. When the post-pandemic economic hangover hit, suddenly, interest rates were rising at a historic pace, layoffs were announced, and things like inflation, recession, and the future felt uncertain. Oftentimes, economic disruption can also lead to new ideas or new ventures. Famously, Bitcoin was launched on the heels of the 2008 global economic crisis. Economic inflection points: You get the idea: There are all kinds of mega-factors that can contribute to the success or failure of disruptive innovation and launching a successful business. Another way to think about this is that a lot of product market fit comes down to the right place, right time. And, with everything going on in the shuffle of social media, it seems like now is the right time for apps and services to gain a foothold. web3 social But they aren’t, really. Why? Web3 and the infinite possibility of creating user-centric social media Right now, social media is going through its own kind of inflection point. Let’s call it a state of fragmentation. I like this summary of the current state of things: We spent the last two decades answering a question — what would happen if you put everyone on the planet into a room and let them all talk to each other? — and now we’re moving onto the next one. It might be better this way. But the way it has all changed, and the speed with which it has happened, has left an everybody-sized hole in the internet. For all these years, we all hung out together on the internet. And now that’s just gone. SOURCE In the early days of social media, there was a race to become a leader in specific formats or verticals — YouTube won video sharing, Facebook won the friends and family format, and Twitter won short-form news and dankest memes. Later, competitors that had some new spin on the social media offering started to emerge — easy-to-use messaging, or disappearing messages, or mobile-first video sharing. With exceptions, if a competitor got big enough, it was acquired by one of the massive, more established networks. The consolidation and concentration of social media over the past couple of decades makes sense from a networking perspective. A network becomes more valuable as more people use it. And as more people use it, it creates a flywheel or a cycle that makes it really difficult to compete with the already established network. And that’s more or less how the state of social media looked and felt over the last decade at least. Sure, there were some variants or local competitors, but the frontrunners or dominant networks were established and entrenched. But then something happened — an inflection point or more like a series of little inflection points — that suddenly felt like it could major platforms have gone through existential-level changes over the last 12 months (Twitter got X’ed, Reddit wanted to cancel its moderator culture, and Meta tried to add to its constellation of control via the launch of Threads, to name just a few highlights). After years of monopolistic control, it suddenly felt like there were cracks in the walled gardens created by the big social media companies. The conditions almost seemed perfectly ripe for some kind of innovation across the space. This is where web3 comes in. The oversimplified gist of web3 is that it’s a tech stack that aims to by building on these foundational principles: make the Internet better Permissionless: This means that anyone can join the network as a user or contribute to the development or upkeep of the network. Permissionless architecture is not only inherently fair and accessible, but it also better aligns broader incentives with individual user incentives. Public key cryptography: This architecture allows users to interact with a network but also gives them ownership (and data portability) and makes it easier to port from one network to another without losing all of the content and information produced on a platform. Decentralized: Ideally, social networks of the future are not built as corporate databases but instead are designed with security, privacy, and data ownership in mind. Right now, we are seeing the confluence of two big forces: the disruption of social media (in some cases caused by the gatekeepers themselves) and the emergence of a tech stack that is finally robust enough to accommodate the creation of secure and user-centric social media platforms. So why is it so hard to create better social media? I think one of the biggest reasons for redesigning social media is that the original user-generated content design is kind of wonky, to begin with. Currently, massive social media is reliant on a disconnect between the idea of user-generated content (where all the value is) and the business of the network (where all the value is accrued). So building a new kind of social media first requires reimagining what's possible and who should actually benefit from all of the posts, photos, and updates. But, of course, starting over isn't exactly feasible. Here are three basic theories about why it’s so hard for web3 to compete with : legacy social media : Maybe most people don’t actually care about data ownership. One of the cornerstones of web3 is that internet users will have more control and ownership. Web3 systems allow users to hold and manage access to their digital life through a secure identity. Apathy for the core value proposition This identity can act like a hub for all kinds of activities ranging from accessing and posting on social media to collecting, purchasing, and selling digital products to using the ID as a means to access walled-off services like logging into an email account or something like a DMV profile. Currently, we use third parties to access most of our digital lives. While the third parties, usually the mega-corporations, use our profiles and data to create sticky experiences and targeted advertisements. Another downside is that running your life through third-party apps is not secure and is one of the reasons why there is exponential growth in things like cybercrime. The design of web3 systems is still not simple enough for people to easily join and/or promote. There are more walls and more friction before there is enough buy-in to make any of that stuff worth it. The current state of affairs is almost like having to go through a handful of security checkpoints, pass a quiz, and chug 32 ounces of water before entering a festival. When the alternative is simply entering an email and creating a password, it’s no wonder that people aren’t showing up. On this point, it feels like , like social media, are just serving up a clunkier version of what’s already available. Instead, the entire experience needs to be redesigned. Ease of use/onboarding friction: web3 versions of things : One of the things that makes established and high-functioning digital networks valuable is the network effects. The same principles are at work with social networks. On social media, it works like this: you are more likely to join a network if your friends or family are on it — or at least people you want to follow, like writers or athletes or stars, or whatever you are into. The more people that join, the more likely it is that new people will join because that’s where the action is or because of the massive psychological driver known as FOMO. (I’m not a psychologist, but I am a parent of four kids, and I’m pretty sure that FOMO starts when we are really young and continues with us — maybe forever. It’s just that it morphs and changes, and the things we worry about missing out on change over time.) Network effects are real What comes next? To sum up how we got to where we are now, social media networks are transitioning from a small handful of super-dominant companies controlling the social media scene to a phase of fragmentation and exploration. The outcome of all of this reorganization doesn’t really feel clear yet. Ideally, the time of disruption will lead to products and networks that are more user-centric from both a security standpoint and from the perspective of better aligning value creation and accrual with the users and developers who build and maintain the networks. Also published . here

What Is Going on With Web3 Adoption in a Time of Dying Social Media?

SCHWARZENBACH, Switzerland, May 25th, 2023/Chainwire/-- , the first dedicated decentralized exchange (DEX) built on the blockchain, has officially launched its testnet. Concordex Concordium The project from Tacans Labs, Skynet Trading, Seier Capital, Amdax, and Concordium blockchain in December 2022 to bring institutional-grade DeFi trading tools to the Concordium blockchain ecosystem. raised $1.7 million in seed funding Concordium is the permissionless green Layer 1 science-backed blockchain creating a safer digital world with an embedded identity verification layer. It provides a secure way for users and enterprises across the world to trade, and remain compliant while ensuring the privacy that crypto users have grown accustomed to. Concordex will utilize the regulatory-ready Concordium ecosystem to offer one of the first regulation-friendly DeFi platforms; a radical step forward in the evolution of DeFi. “The launch of our testnet today will offer a glimpse into the robust set of DeFi tools we are developing for the Concordium blockchain. By leveraging their regulatory-ready blockchain ecosystem, Concordex is set to be one of the first regulation-friendly DeFi platforms in the market, taking a significant step forward in the evolution of DeFi, while offering a unique trading experience for users," said James Davies, Chief Product Officer at Concordex Labs. "Concordium meets the growing demands from institutional investors for enterprise-grade DeFi. Together with Concordex we will provide the highest standards of security, compliance and scalability. Unlocking liquidity, diversification, and yield generation beyond traditional investments. " - Torben Kaaber, Head of Commercial at Concordium. Concordex will bring a variety of features to the Concordium ecosystem including simple trading, as well as concentrated liquidity and flexible fee levels for liquidity providers allowing them to optimize capital deployment and maximize returns over time. With a team of highly capable TradFi and DeFi veterans, the platform is set to bridge the gap between TradFi and DeFi with true on-chain derivatives and other tools dedicated to institutional investors. To celebrate the launch of its public testnet, Concordex has also launched a , allocating a total of USD 100,000 in its upcoming $CCDX token as rewards for participants in the program, which is set to continue for the duration of the testnet phase with rewards distributed after the token’s token generation event (TGE) later this year. Concordex Testnet Rewards Program About Concordex Concordex is an advanced institutional-grade liquidity management DEX built on the Concordium blockchain. The project was developed by DeFi venture studio Tacans Labs, with core team members including award-winning entrepreneur Mathias Lundoe and industry veterans James Davies, Ivan Ivaschenko, and Marie Tatibouet. The platform aims to launch on Mainnet in Q3 2023. For more information, please visit: concordex.io About Concordium is a permissionless green layer 1, a science-backed blockchain that balances privacy with accountability through its ID layer and Zero-knowledge proofs. Creating trust with ID is key to scaling businesses. Concordium Concordium provides a fast, secure, and high-scale blockchain platform that makes building use cases and using dApps easy. Concordium differs by having verified ID and instant finality with high throughput, and low transaction fees, pegged to FIAT. With leadership from Fortune 500 companies, Volvo, IKEA, Credit Suisse, Uber, and successful Fintech platforms, the team is scaling the chain to its extensive network of the world's biggest enterprises. For more information, please visit: concordium.com Contact PR Manager Dion Guillaume Tacans Labs dion.guillaume@tacanslabs.com 0734545400 This story was distributed as a release by Chaiwire under HackerNoon’s Brand As An Author Program. Learn more about the program here: https://business.hackernoon.com/brand-as-author

Concordex Launches Testnet Of Its Concordium-Built Institutional Focused DEX 

Concordex lanza la red de prueba de su DEX enfocado en instituciones creado por Concordium

Concordex lance Testnet de son DEX axé sur les institutions construit par Concordium

कॉनकॉर्डेक्स ने अपने कॉनकॉर्डियम-निर्मित संस्थागत केंद्रित DEX का टेस्टनेट लॉन्च किया

Concordex、Concordium が構築した機関向け DEX のテストネットを開始

Concordex lança testnet de seu DEX focado em instituições construído pela Concordium

Concordex ra mắt Testnet của DEX tập trung vào thể chế do Concordium xây dựng

Concordex 推出其 Concordium 构建的以机构为中心的 DEX 的测试网

SYDNEY, Australia, May 20th, 2023  - The 2023 organizing team has partnered with to deliver Permissionless Perks, an Open Loyalty solution that enables event attendees to independently verify ticket ownership to 3rd party perk providers. Attendees at EDCON 2023 in Montenegro from May 19th - 23rd, can claim over 30 exclusive perks available only to them. EDCON Smart Token Labs CEO of Smart Token Labs, Victor Zhang, said Permissionless Perks is one of the few commercial examples of Open Loyalty:  “It’s a permissionless Open Loyalty solution where the verification occurs between the ticket holder and the perk provider without involving the event organizer. A URL delivered to attendees is an attestation that attests ticket ownership and is then stored in the browser’s local storage to enable the seamless claim of perks on the providers’ websites.” Sky Harris, Marketing Lead of De University of Ethereum, co-organizer of EDCON, praised Permissionless Perks as a great way to create additional value for attendees: “What we love about this solution is it enables any 3rd party to add value to the attendee experience by providing perks for our ticket holders. It's a truly permissionless and decentralized solution, and attestations unlock unique value.” There are over 30 perks for attendees, ranging from the ability to free mint a derivative Cool Cat in EDCON swag to the chance to claim one of 50 serves of ‘Njegusi Prosciutto’ from a famed local Montenegrin restaurant. “We thank our friends at Smart Token Labs for supporting EDCON by enabling ticket attestations and Permissionless Perks via their fully open-source TokenScript technology.” STL has now delivered the Permissionless Perks as a public goods supporter to the three largest Ethereum developer events of 2022 and 2023 including EDCON 2023 in Montenegro, Devcon VI in Bogota, and DevConnect in Amsterdam. About Permissionless Perks Permissionless Perks is an open loyalty platform enabling any brand to offer a perk to event ticket holders through an open marketplace. Because it is open, any brand can create value for verified event attendees, removing the burden of value creation from the event organizer. At Devcon VI in Bogota, Permissionless Perks had a 58% engagement rate and a 20% claim rate on rewards which is 2X the industry average. About Smart Token Labs is the creator of SmartLayer, a chain-agnostic Token Utility Protocol that enables mainstream use cases between web2 and web3. SmartLayer consists of Smart Tokens that let businesses convert user data into smart tokens owned by those users. is enabled by SmartLayer seamlessly integrating token utility and logic into products and services across both web2 and web3. Smart Token Labs Token utility For more information visit: | | Official website Twitter Telegram Contact: CMO Brent Annells Smart Token Labs b@smarttokenlabs.com This story was distributed as a release by Chainwire under HackerNoon’s Brand As An Author Program. Learn more about the program here: https://business.hackernoon.com/brand-as-author

Smart Token Labs Introduces Open Loyalty Solution at EDCON 2023

Smart Token Labs presenta una solución de lealtad abierta en EDCON 2023

Smart Token Labs présente une solution de fidélité ouverte à EDCON 2023

स्मार्ट टोकन लैब्स ने EDCON 2023 में ओपन लॉयल्टी सॉल्यूशन पेश किया

Smart Token Labs が EDCON 2023 でオープン ロイヤルティ ソリューションを発表

Smart Token Labs apresenta solução de fidelidade aberta na EDCON 2023

Smart Token Labs giới thiệu giải pháp Open Loyalty tại EDCON 2023

Smart Token Labs 在 EDCON 2023 上推出开放式忠诚度解决方案

Blockchain technology arrived with many blessings and promises for almost every industry on the surface of the earth. In this article, we’ll be looking at its application in the gaming industry and how ambitious players like are making a mark in the emerging industry. DAO.Casino New decentralized technologies, game developers have found themselves a thriving ecosystem to build upon. Blockchain enables a protocol that allows developers to create decentralized games for users across all industries, particularly in the underserved gambling industry. Why decentralized gaming platforms are needed and how they affect developers and gamers ? Decentralization is a big game-changer in the industry as it brings much-needed to a traditional closed-door system. freedom and security Freedom in the sense that there is a high level of transparency, and individuals can participate in a permissionless environment. Freedom to easily participate in the ecosystem as a developer or gamer. Freedom to collaborate, learn, earn, and have fun in this new and exciting industry - and this is the solution DAO.Casino is bringing to the industry. The Journey So Far In June, DAO.Casino’sTestNet 1.0 was launched. The idea was to provide public access to the platform’s beta version. This allowed developers to get a feel of the platform’s update at the time. It was also a strategic move to get feedback from the blockchain gaming community. TestNet 1.0 was marked by several new and/or improved features. For instance, the update brought with it RANDPA, which is a consensus algorithm that finalizes transactions in a matter of seconds. This was and remains essential in the gaming ecosystem where speed is non-negotiable. Also, TestNet 1.0 (available ) made it possible for users to access their transaction information easily and quickly. here Committed to the continuous improvement of their product, TestNet 2.0 was released on August 1st, 2019. The dynamic validator system is easily the most noticeable feature of this version of the platform’s newest update. In simple terms, anyone can now join the DAO.Casino blockchain as either a validator or a delegator, and even earn test tokens as a reward for participation. Another feature which marked TestNet 2.0 is the validator voting using a dedicated staking resource. Again, it is now possible to sponsor transactions made by other users. What this means is simple: organization, employers or benefactors can easily cover the cost of transactions made by their employees or beneficiaries even when these people do not have any initial tokens deposited on the blockchain. All of these updates are aimed at making users familiar with how this particular blockchain works as the brains behind DAO.Casino prepares for the launch of MainNet in the future. The creators of this platform seem to be very interested in promoting ease of use, freedom, and speed in the decentralized gaming industry. It is expected that these will support on-the-job workshop where both studios and independent developers, as well as professionals and amateurs; can collaborate to achieve their respective dreams. In the words of Ilya Tarutov, CEO of DAO.Casino He is also quoted saying “We cannot wait to see our product helping developers unleash their creative and entrepreneurial talents and apply those to one of the most groundbreaking technologies of the XXI century.” “I am sure that the products we’re developing will transform the online gambling into a fair and transparent industry for all of the involved parties: casino operators, developers, and affiliate marketers.“ It is fair to note that DAO.Casino disrupted the online wagering industry in 2017 when they started the development of a protocol based on Ethereum blockchain technology. This protocol ensures the automation of transactions and facilitates interactions between all the industry participants: casino operators, game developers, and affiliate marketers. Again, it appears the brains behind this project are by no means interested in resting on their laurels as is often the case in the technology startup sphere. For instance, DAO.Casino created a performance testing protocol called TestNet some time ago. The idea (which proves to be mostly successful) is to periodically conduct performance tests to ensure that quality remains at the premium level and still maintaining an impeccable level of reliability. The creators of the platform reveal that for their , they simulated real-life transactions distributed among full-nodes. first performance test Prospects First, DAO.Casino’s own native launched with some initial supply of 167,270,821 BET. And here’s an idea of the tokenomics. token In summary, DAO.Casino has network nodes that create new blocks on the chain, and these nodes are called validators. Of course, anyone who holds a token in the blockchain (a delegator) can vote for validators. People who get the most votes (which must be anything between 21 and 100) get to become validators. Now the prospects are interesting for both DAO.Casino and blockchain gaming sphere as a whole. It would seem that the makers of this project are pretty much open to constructive criticism and feedback. The release of the project’s is a part testament to that fact. The next big thing from the blockchain is MainNet. But until it becomes a reality, it’s all about TestNet 2.0. source code If you’d like to learn more about the emerging decentralized gaming industry or DAO.Casino, follow every development on Twitter via . https://twitter.com/daocasino

Blockchain Technology and Emerging Decentralized Gaming Systems

Table of Links Abstract and 1 Introduction 2 Background and Related Work and 2.1 From Bitcoin to Blockchains 2.2 Open and Permissionless Blockchains 2.3 Interoperability Between Blockchains 3 Cross-Chain Query Language and 3.1 Integrated Data Model 3.2 Grammar and Query Processing Architecture 4 Evaluation of Implementation Feasibility and 4.1 Software and Hardware Configuration 4.2 Query Processing 4.3 Discussion 5 Conclusion and Outlook, Acknowledgment, and References 2 Background and Related Work The section at hand introduces blockchain fundamentals, discusses open and permissionless blockchains, and existing interoperability approaches. 2.1 From Bitcoin to Blockchains Following the posting of the Bitcoin whitepaper and corresponding software in 2008 and 2009, respectively [22,23], the term ’blockchain’ emerged as a general term encapsulating its technical architecture. The primary components: (1) a data structure of blocks, arranged in a backward-linked list or any graph, (2) a peer-to-peer network for data distribution, and (3) a consensus protocol, give rise to innovative properties. These notably include the ability to coordinate and validate all operations without trusted third parties or centralized control, open access to all data and operations, and permissionless access, whereby data and operations are not restricted to specific participants [9,1]. Ethereum and subsequent blockchains have enhanced these capabilities by incorporating smart contracts, acting as quasi Turing-complete programs [28,6]. Beyond payments and currency, smart contracts facilitate e-commerce, sales contracts, timestamping, and attestations, among other applications [16,18,11]. 2.2 Open and Permissionless Blockchains The progressive development and adoption springing from Bitcoin and Ethereum have yielded OPB with diverse characteristics. Table 1 catalogs five renowned OPB in the order of their public node count, highlighting the properties of their data structures, networks, and consensus protocols, as well as features pertinent to smart contracts. Data Structure. The original design of backward-linked blocks in Bitcoin is coupled with additional trees or graphs in most other OPB. Beyond transactional data from blocks, supplementary queries must be performed for nontransactional data or older data that has undergone pruning. For instance, separate tree structures are incorporated for state storage in Ethereum, where balances and smart contract variables can be accessed [19]. Network. Well-known OPB networks comprise approximately 1300 to 16000 nodes. With algorithmic operation and validation, an increased node count augments security, such as in mitigating the risks associated with 51% attacks and selfish mining [26,24], which are frequently observed in smaller Proof-of-Work systems, e.g. ’Bitcoin Gold’ [24]. Consensus Protocol. Between 2008 and 2022, a shift in the initially created protocols can be observed, veering away from Proof-of-Work towards Proof-ofStake, which introduces several trade-offs. While established blockchains such as Bitcoin and Ethereum have prioritized security and decentralization over the years, Cardano [15], Avalanche [21], and Solana [29] demonstrated enhancements in efficiency and scalability. This trend is mirrored in the development of novel consensus protocols based on by Proof-of-Stake [10,8] with higher efficiency, advantages to environmental impact, enhanced security, and potentially higher distribution and scalability. For example, Ethereum realizes Proof-of-Stake through GASPER, a combination of the consensus algorithm Caspar-FFG ("Casper the Friendly Finality Gadget") and LMD-GHOST (Latest Message Driven Greedy Heaviest Observed Sub-Tree)[7]. Based on Caspar-FFG, blocks are proposed in slots of 12 seconds, part of 6.4-minute epochs of 32 slots, by the staking network nodes. The node proposing a block is randomly chosen while other nodes are organized in randomly formed subnets to carry out validations that are aggregated in attestations. Typically, a block is finalized within two epochs with improvements toward single-slot finality[8]. In the case of chain splits, this design together with the fork choice rule has proven itself in practice, demonstrating improved efficiency, decentralization, and security[9]. Other blockchains focus especially on scalability, e.g. Solana. However, temporary protocol failures can be observed frequently, resulting in non-availability [12]. Smart Contract Support. Smart contract features are essential for data queries and software applications. Bitcoin offers a limited scripting language employed for programmable monetary transactions and the scalable lightning overlay network. The advent of general-purpose programming in Ethereum and similar platforms introduces a broader range of capabilities and complexity. Currently, most implementations are written and compiled for the Ethereum Virtual Machine, which is present in Ethereum and Avalanche. On the contrary, Cardano and Solana embrace markedly different paradigms. For instance, Cardano supports functional programming, preventing side effects and implementation errors, thus, possibly enhancing security and safety properties[10]. Author:
(1) Felix Härer[0000 −0002 −2768 −2342], Digitalization and Information Systems Group, University of Fribourg, Switzerland (felix.haerer@unifr.ch). This paper is available on arxiv under CC BY-NC-ND 4.0 DEED license. Table of Links Abstract and 1 Introduction Abstract and 1 Introduction 2 Background and Related Work and 2.1 From Bitcoin to Blockchains 2 Background and Related Work and 2.1 From Bitcoin to Blockchains 2.2 Open and Permissionless Blockchains 2.2 Open and Permissionless Blockchains 2.3 Interoperability Between Blockchains 2.3 Interoperability Between Blockchains 3 Cross-Chain Query Language and 3.1 Integrated Data Model 3 Cross-Chain Query Language and 3.1 Integrated Data Model 3.2 Grammar and Query Processing Architecture 3.2 Grammar and Query Processing Architecture 4 Evaluation of Implementation Feasibility and 4.1 Software and Hardware Configuration 4 Evaluation of Implementation Feasibility and 4.1 Software and Hardware Configuration 4.2 Query Processing 4.2 Query Processing 4.3 Discussion 4.3 Discussion 5 Conclusion and Outlook, Acknowledgment, and References 5 Conclusion and Outlook, Acknowledgment, and References 2 Background and Related Work The section at hand introduces blockchain fundamentals, discusses open and permissionless blockchains, and existing interoperability approaches. 2.1 From Bitcoin to Blockchains Following the posting of the Bitcoin whitepaper and corresponding software in 2008 and 2009, respectively [22,23], the term ’blockchain’ emerged as a general term encapsulating its technical architecture. The primary components: (1) a data structure of blocks, arranged in a backward-linked list or any graph, (2) a peer-to-peer network for data distribution, and (3) a consensus protocol, give rise to innovative properties. These notably include the ability to coordinate and validate all operations without trusted third parties or centralized control, open access to all data and operations, and permissionless access, whereby data and operations are not restricted to specific participants [9,1]. Ethereum and subsequent blockchains have enhanced these capabilities by incorporating smart contracts, acting as quasi Turing-complete programs [28,6]. Beyond payments and currency, smart contracts facilitate e-commerce, sales contracts, timestamping, and attestations, among other applications [16,18,11]. 2.2 Open and Permissionless Blockchains The progressive development and adoption springing from Bitcoin and Ethereum have yielded OPB with diverse characteristics. Table 1 catalogs five renowned OPB in the order of their public node count, highlighting the properties of their data structures, networks, and consensus protocols, as well as features pertinent to smart contracts. Data Structure. The original design of backward-linked blocks in Bitcoin is coupled with additional trees or graphs in most other OPB. Beyond transactional data from blocks, supplementary queries must be performed for nontransactional data or older data that has undergone pruning. For instance, separate tree structures are incorporated for state storage in Ethereum, where balances and smart contract variables can be accessed [19]. Data Structure. Network . Well-known OPB networks comprise approximately 1300 to 16000 nodes. With algorithmic operation and validation, an increased node count augments security, such as in mitigating the risks associated with 51% attacks and selfish mining [26,24], which are frequently observed in smaller Proof-of-Work systems, e.g. ’Bitcoin Gold’ [24]. Network Consensus Protocol. Between 2008 and 2022, a shift in the initially created protocols can be observed, veering away from Proof-of-Work towards Proof-ofStake, which introduces several trade-offs. While established blockchains such as Bitcoin and Ethereum have prioritized security and decentralization over the years, Cardano [15], Avalanche [21], and Solana [29] demonstrated enhancements in efficiency and scalability. This trend is mirrored in the development of novel consensus protocols based on by Proof-of-Stake [10,8] with higher efficiency, advantages to environmental impact, enhanced security, and potentially higher distribution and scalability. For example, Ethereum realizes Proof-of-Stake through GASPER, a combination of the consensus algorithm Caspar-FFG ("Casper the Friendly Finality Gadget") and LMD-GHOST (Latest Message Driven Greedy Consensus Protocol. Heaviest Observed Sub-Tree)[7]. Based on Caspar-FFG, blocks are proposed in slots of 12 seconds, part of 6.4-minute epochs of 32 slots, by the staking network nodes. The node proposing a block is randomly chosen while other nodes are organized in randomly formed subnets to carry out validations that are aggregated in attestations. Typically, a block is finalized within two epochs with improvements toward single-slot finality[8]. In the case of chain splits, this design together with the fork choice rule has proven itself in practice, demonstrating improved efficiency, decentralization, and security[9]. Other blockchains focus especially on scalability, e.g. Solana. However, temporary protocol failures can be observed frequently, resulting in non-availability [12]. Smart Contract Support. Smart contract features are essential for data queries and software applications. Bitcoin offers a limited scripting language employed for programmable monetary transactions and the scalable lightning overlay network. The advent of general-purpose programming in Ethereum and similar platforms introduces a broader range of capabilities and complexity. Currently, most implementations are written and compiled for the Ethereum Virtual Machine, which is present in Ethereum and Avalanche. On the contrary, Cardano and Solana embrace markedly different paradigms. For instance, Cardano supports functional programming, preventing side effects and implementation errors, thus, possibly enhancing security and safety properties[10]. Smart Contract Support. Author: (1) Felix Härer[0000 −0002 −2768 −2342], Digitalization and Information Systems Group, University of Fribourg, Switzerland (felix.haerer@unifr.ch). Author: Author: (1) Felix Härer[0000 −0002 −2768 −2342], Digitalization and Information Systems Group, University of Fribourg, Switzerland (felix.haerer@unifr.ch). This paper is available on arxiv under CC BY-NC-ND 4.0 DEED license. This paper is available on arxiv under CC BY-NC-ND 4.0 DEED license. available on arxiv available on arxiv

What Are Open and Permissionless Blockchains? 

Bringing Permissionless Lending: Making Sense of Euler

Jan permisompi maytʼasiñ apaniña: Euler chachan amuyupa

El préstamo sin necesidad de autorización: cómo entender el caso Euler

آوردن وام بدون اجازه: ایجاد حس اویلر

Traer préstamos sen permiso: dar sentido a Euler

अनुमति रहित ऋण लाना: यूलर का अर्थ समझना

הבאת הלוואות ללא רשות: הגיוני אוילר

許可なしの融資の実現: オイラーを理解する

Membawa Pinjaman Tanpa Kebenaran: Memahami Euler

අවසරයකින් තොරව ණය දීම: ඉයුලර් පිළිබඳ හැඟීමක් ඇති කිරීම

ፍቓድ ዘይብሉ ልቓሕ ምምጻእ፡ ትርጉም ምሃብ ኦይለር

Rugsat berilmedik karz bermek: Euleriň duýgusyny döretmek

Запровадження бездозвільного кредитування: осмислення Ейлера

Authors:
(1) Johannes Rude Jensen, University of Copenhagen, eToroX Labs (johannesrudejensen@gmail.com);
(2) Victor von Wachter, University of Copenhagen (victor.vonwachter@di.ku.dk);
(3) Omri Ross, University of Copenhagen, eToroX Labs (omri@di.ku.dk). Table of Links Abstract and Introduction 1 Literature Review 2 Methodology and Artefact Requirements 3 The Implementation and Integration of the Artefact 4 Artefact Evaluation 5 Discussion 6 Conclusion and Future Work, and References 5 Discussion While the present iteration of the artefact successfully executes the lifecycle of a leveraged trade on the blockchain, the evaluation exposed several weaknesses in the artefact design. These issues were primarily motived by the dissimilarities between a hardened environment such as an exchange database system and a permissionless computational environment, such as the Ethereum blockchain. The tentative achievements presented here came at the cost of several compromises all of which ultimately affects the potential competitiveness of a product of this, or similar, nature. Generalizing the findings produced in this work for a broader IS audience, we offer three propositions on the integration, implementation, and impact of permissionless blockchain technology in the enterprise setting. Proposition 1: The integration of permissionless blockchain technology in the enterprise setting introduces novel practical and theoretical contradictions. While the execution of key business processes with permissionless blockchain technology has been shown to introduce performance enhancements and improved risk mitigation across several use-cases in the financial industries (Labazova 2019) the integration of permissionless infrastructure in hardened enterprise infrastructure is likely to introduce ambiguities between traditional and standardized approach to risk management in siloed database architectures, and the radical ‘openness’ of blockchain technology (Schlagwein et al. 2017). Proposition 2: Client facing implementations of digital artefacts utilizing permissionless blockchain technologies succeed by assimilating relevant parts of the value chain to the key properties of permissionless blockchain technology. The successful integration of digital artefacts implemented with permissionless blockchain technologies, ought to assimilate necessary aspects of the value chain to the key properties of blockchain technology: Transparency, deterministic execution, and non-custodial management of tokenized assets. Attempts at assimilating business processes executed with blockchain technology into a legacy environment may translate into lack of competitiveness and redundancy. Our advice is to build from the blockchain and up, not the other way around. Proposition 3: The dissemination of permissionless blockchain technology and the deterministic execution of critical business processes introduces a level playing field for applications, users, and service providers. An interesting property of permissionless blockchain technology as a computational environment, is the equivalency of computations. Unlike cloud computing models where organizations operate in secured walled environments (Weinhardt et al. 2009), permissionless blockchains introduce a secondary market for transaction processing denominated in the native asset-class.[9] Consequently, computations are prioritized by transaction fees which are, in most cases, paid by the user. The shared computational environment for blockchain based applications is likely to introduce novel implications for competing organizations, as service providers utilizing the same blockchain must share the same resource-constrained computational environment. This paper is available on arxiv under CC BY 4.0 DEED license. [9] The native asset for computations on the Ethereum blockchain is called ‘gas’ and is denominated in a floating exchange with ETH. Authors: (1) Johannes Rude Jensen, University of Copenhagen, eToroX Labs (johannesrudejensen@gmail.com); (2) Victor von Wachter, University of Copenhagen (victor.vonwachter@di.ku.dk); (3) Omri Ross, University of Copenhagen, eToroX Labs (omri@di.ku.dk). Authors: Authors: (1) Johannes Rude Jensen, University of Copenhagen, eToroX Labs (johannesrudejensen@gmail.com); (2) Victor von Wachter, University of Copenhagen (victor.vonwachter@di.ku.dk); (3) Omri Ross, University of Copenhagen, eToroX Labs (omri@di.ku.dk). Table of Links Abstract and Introduction Abstract and Introduction 1 Literature Review 1 Literature Review 2 Methodology and Artefact Requirements 2 Methodology and Artefact Requirements 3 The Implementation and Integration of the Artefact 3 The Implementation and Integration of the Artefact 4 Artefact Evaluation 4 Artefact Evaluation 5 Discussion 5 Discussion 6 Conclusion and Future Work, and References 6 Conclusion and Future Work, and References 5 Discussion While the present iteration of the artefact successfully executes the lifecycle of a leveraged trade on the blockchain, the evaluation exposed several weaknesses in the artefact design. These issues were primarily motived by the dissimilarities between a hardened environment such as an exchange database system and a permissionless computational environment, such as the Ethereum blockchain. The tentative achievements presented here came at the cost of several compromises all of which ultimately affects the potential competitiveness of a product of this, or similar, nature. Generalizing the findings produced in this work for a broader IS audience, we offer three propositions on the integration, implementation, and impact of permissionless blockchain technology in the enterprise setting. Proposition 1: The integration of permissionless blockchain technology in the enterprise setting introduces novel practical and theoretical contradictions. Proposition 1: The integration of permissionless blockchain technology in the enterprise setting introduces novel practical and theoretical contradictions. While the execution of key business processes with permissionless blockchain technology has been shown to introduce performance enhancements and improved risk mitigation across several use-cases in the financial industries (Labazova 2019) the integration of permissionless infrastructure in hardened enterprise infrastructure is likely to introduce ambiguities between traditional and standardized approach to risk management in siloed database architectures, and the radical ‘openness’ of blockchain technology (Schlagwein et al. 2017). Proposition 2: Client facing implementations of digital artefacts utilizing permissionless blockchain technologies succeed by assimilating relevant parts of the value chain to the key properties of permissionless blockchain technology. Proposition 2: Client facing implementations of digital artefacts utilizing permissionless blockchain technologies succeed by assimilating relevant parts of the value chain to the key properties of permissionless blockchain technology. The successful integration of digital artefacts implemented with permissionless blockchain technologies, ought to assimilate necessary aspects of the value chain to the key properties of blockchain technology: Transparency, deterministic execution, and non-custodial management of tokenized assets. Attempts at assimilating business processes executed with blockchain technology into a legacy environment may translate into lack of competitiveness and redundancy. Our advice is to build from the blockchain and up, not the other way around. Proposition 3: The dissemination of permissionless blockchain technology and the deterministic execution of critical business processes introduces a level playing field for applications, users, and service providers. Proposition 3: The dissemination of permissionless blockchain technology and the deterministic execution of critical business processes introduces a level playing field for applications, users, and service providers. An interesting property of permissionless blockchain technology as a computational environment, is the equivalency of computations. Unlike cloud computing models where organizations operate in secured walled environments (Weinhardt et al. 2009), permissionless blockchains introduce a secondary market for transaction processing denominated in the native asset-class.[9] Consequently, computations are prioritized by transaction fees which are, in most cases, paid by the user. The shared computational environment for blockchain based applications is likely to introduce novel implications for competing organizations, as service providers utilizing the same blockchain must share the same resource-constrained computational environment. This paper is available on arxiv under CC BY 4.0 DEED license. This paper is available on arxiv under CC BY 4.0 DEED license. available on arxiv [9] The native asset for computations on the Ethereum blockchain is called ‘gas’ and is denominated in a floating exchange with ETH.

Permissionless Blockchain: 3 Propositions for Integration, Implementation, and Impact

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