Recently, OpenAI announced another wave of key management departures, including Chief Technology Officer Mira Murati, Chief Research Officer Bob McGrew, and Head of Post-Training Barret Zoph. These exits have intensified speculation about the future of one of the world’s most influential AI companies under Sam Altman’s leadership.
These departures follow earlier exits by key figures such as Ilya Sutskever and Jan Leike from the Alignment and Security team, Policy Research Head Gretchen Krueger, Security experts Daniel Kokotajlo and William Saunders, ChatGPT Architect John Schulman, and company co-founder and president Greg Brockman. While some have left to pursue their own initiatives or joined competitors like Anthropic, others have yet to announce their next steps. Leaving OpenAI, a company of such stature, seems to open doors effortlessly for many.
Internal Tensions Behind the Departures
The steady stream of senior leaders exiting OpenAI points to a mix of internal and external pressures. As the company continues to expand, it’s grappling with tensions, especially as it shifts from its non-profit research roots to a more commercial focus. This shift toward revenue generation has created friction between leaders advocating for ethical AI development and those driving faster growth and profitability.
Key figures, including co-founder Ilya Sutskever and security expert Jan Leike, left over concerns that OpenAI was prioritizing flashy, marketable products over crucial security research, especially regarding the development of Artificial General Intelligence (AGI).
Financial Strain Adds Pressure
In addition to internal discord, OpenAI is facing significant financial strain. Despite generating substantial revenue, its costs far exceed its earnings, prompting talks of new investment rounds and further commercialization. This drive for short-term financial gain is a core reason for the departure of influential figures like Mira Murati and John Schulman, as it clashed with their focus on ethical AI progress.
Leadership Struggles at OpenAI
The latest executive departures highlight ongoing leadership challenges, particularly following CEO Sam Altman’s brief ouster earlier this year, which destabilized the company. These ongoing exits create uncertainty for OpenAI, which is now facing challenges in maintaining leadership continuity, retaining talent, and managing the rapid pace of innovation in AI.
Losing pivotal figures like Schulman and Murati could severely impact OpenAI’s ability to sustain its current trajectory. Both played essential roles in creating core technologies like reinforcement learning and ChatGPT. As the company navigates this period of transition, employee morale may also take a hit, as confidence in OpenAI’s long-term stability and vision becomes shakier.
Ethics vs. Profit: The Internal Debate
OpenAI has long positioned itself as a leader in the responsible development of AI. However, the departures of experts like Sutskever and Leike raise concerns about the company’s focus. Their exits reflect growing tension between prioritizing ethical research and pursuing aggressive commercialization.
Former executives have openly criticized OpenAI for prioritizing profit over security, which could damage the company’s reputation for ethical AI development. OpenAI may face heightened public scrutiny and even regulatory challenges if this perception grows. Furthermore, losing trust in the research community could limit future partnerships with organizations prioritizing safe AI advancement.
The Shift Toward Commercialization
OpenAI’s pivot to a commercial, for-profit business model has led to internal and external friction. As the company seeks new funding and aims to push its valuation as high as $150 billion, it faces the delicate challenge of balancing profitability with responsible AI development. This ongoing conflict is made even more complex by competitors like Anthropic—founded by former OpenAI employees—who are attracting top talent and positioning themselves as more security-conscious alternatives.
Financial Struggles Pose a Long-Term Risk
Despite its commercial success and growing user base, OpenAI’s financial model is problematic. With annual costs nearing $7 billion, the company is spending far more than it earns, which adds pressure to commercialize its technology quickly. This urgency could lead to rushed decisions prioritizing short-term profits at the expense of long-term innovation and security.
OpenAI’s financial difficulties could also hurt its ability to attract and retain top talent. If its financial future remains uncertain, employees may become wary, especially as the value of their stock options might be at risk.
Challenges to Sam Altman’s Leadership
CEO Sam Altman’s leadership is now under scrutiny. His brief removal earlier this year created divisions within the company, and the continued exodus of senior management could raise further doubts about his ability to steer OpenAI through these turbulent times. If concerns about OpenAI’s ethical practices and financial health continue to grow, Altman may face increased pressure from the board and influential investors.
OpenAI’s Uncertain Future
OpenAI revolutionized the AI industry with the release of DALL-E and ChatGPT in 2022, and it still has the potential to shape the future of AI. However, its ability depends on maintaining stability, strong leadership, and a balanced approach between innovation and ethical practices. If the company fails to navigate these challenges, it risks more than just financial losses—the geopolitical implications could be significant.
The coming months will be critical for OpenAI as it seeks to stabilize and reassert itself as a leader in the AI space.
The following is a guest post by Greg Waisman, Co-founder and COO at Mercuryo.
Over the last few years, Web3 has been receiving a lot of talk. Promises of a decentralized internet where users control their money and data have sparked excitement across tech-savvy communities worldwide.
Some projections predict that the Web3 market will reach an astonishing $177.58 billion by 2033. However, despite this growth, real-world adoption of Web3 remains low.
This begs the question: what’s holding this space back?
Web3 has broken away from its original course
The original idea of Web3 was revolutionary in its vision: to put control back into the hands of users, eliminate intermediaries, and create a digital world based on interoperability, permissionless systems, and self-custody. Users could manage their assets independently and directly benefit from their data instead of allowing third parties to potentially exploit their users.
But while some progress has been made to this end—think decentralized applications that allow users to play games or stake funds without worrying about middlemen—Web3 hasn’t broken into the mainstream. The promise is there, but the execution, in my mind, is lagging.
Too complex to grasp, not good enough to adopt
One of the biggest barriers to Web3 adoption is its complexity. For the uninitiated, cryptocurrencies and Web3 platforms are difficult to understand and even harder to use. To the average user, they remain this confusing and inaccessible thing that simply exists ‘somewhere out there’. And this is a major hurdle to adoption in daily lives. Unless you’re already part of the crypto world, getting involved feels like trying to navigate a maze.
For example, consider the growing buzz around Layer 2 solutions (L2s) such as Base and Arbitrum. This technology is designed to improve the scalability and efficiency of blockchain networks, making interactions faster and cheaper, thus addressing some of the common pain points associated with Web3. However, despite the benefits they promise, most users have no idea why L2s exist or what makes them stand out.
The terminology alone—mainnet, L2s, gas fees—can leave non-crypto natives scratching their heads and not understanding why they should care about all these different layers or how they can interact with them. This lack of understanding and clear accessibility keep many potential users at bay.
This also isn’t helped because Web3’s reputation has taken some hits, largely due to the space often being associated with scams, hacks, and get-rich-quick schemes. Moreover, the idea of self-custody, where users are responsible for their own assets, is daunting to most people. Traditional banking has safety nets and customer support, which, to many, feels safer and simpler.
The Web3 world, on the other hand, is still seen as the risky Wild West. Technological innovations and changes are so fast-paced that even those working in the space often struggle to keep up. Naturally, this adds another layer of complexity for users to grapple with.
Finally, Web3 also suffers from a limited range of use cases. Beyond crypto trading and speculative activities, users cannot do much with their assets, and that’s not enough to attract a mainstream audience. To achieve widespread adoption, the sector needs to offer practical and engaging applications that people can use daily.
So, can Web3 be saved?
To break out of its niche and enter the mainstream, Web3 needs to refocus on what made it exciting in the first place: use cases built with interoperability, self-custody, and permissionless access in mind. But these concepts need to be integrated into platforms in a manner that users are already familiar with.
Imagine that you’re a neobank client and it suddenly starts offering higher yields through an embedded Web3 wallet. Or if non-crypto apps start providing smart wallet functionality. Just like that, the benefits of Web3 become a lot more available to the average person.
Focusing on user experience and simplicity of access is key here. Right now, Web3 is still clunky and complicated. To appeal to a broader audience, it needs to become as intuitive as the apps we already find ourselves using every day. This means better interfaces, clearer explanations, and easier onboarding processes. Education and marketing will also be crucial in demystifying Web3 while showing people why it’s worth their time.
The potential of Web3 is enormous, but it’s being held back by complexity and a lack of practical use cases. For Web3 to truly take off, the industry needs to integrate with existing Web2 platforms and focus on creating real value for everyday users.
xIf you’re looking to install Fizz Node on your Windows machine, you’re in the right place! In this guide, we’ll walk you through the process of setting up Fizz Node using Windows Subsystem for Linux (WSL). Don’t worry if this sounds complicated—we’ll break it down into easy-to-follow steps so you can get everything up and running smoothly.
For a step-by-step guide on getting started, head to our YouTube Tutorial below.
What You’ll Need
Before we dive into the process, here’s what you’ll need to have on hand:
A Windows 10 or Windows 11 computer with administrative privileges.
An active internet connection to download the required software.
A basic understanding of the command line (don’t worry, we’ll guide you through it).
Now that we have everything set, let’s start with enabling WSL.
Step 1: Enable Windows Subsystem for Linux (WSL)
Windows Subsystem for Linux (WSL) allows you to run a Linux environment on your Windows machine. Let’s enable it!
1. Open PowerShell as Administrator
To enable WSL, you’ll need to run PowerShell as an administrator. Here’s how:
Click the Start button (the Windows icon at the bottom-left of your screen).
In the search bar, type PowerShell.
Right-click on Windows PowerShell from the results and select Run as administrator.
2. Enable WSL in PowerShell
Once PowerShell is open, type the following command and hit Enter:
wsl –install
This command will:
Enable the WSL feature.
Enable the Virtual Machine Platform feature.
Install the latest Linux kernel.
Set WSL 2 as the default version.
Download and install a Linux distribution (most commonly, Ubuntu).
3. Restart Your Computer
After running the command, if prompted, restart your computer to complete the installation of WSL.
Step 2: Install a Linux Distribution (Skip the step if Ubuntu is already installed with the WSL command)
If WSL didn’t automatically install a Linux distribution, or you want to install a specific one like Ubuntu 22.04, follow these steps.
1. Open the Microsoft Store
Click the Start button and type Microsoft Store.
Click on the Microsoft Store app to open it.
2. Search for Ubuntu
In the Microsoft Store, click the search bar at the top.
Type Ubuntu 22.04 and press Enter.
3. Install Ubuntu
After the installation, launch Ubuntu from the Start menu to initialize the setup.
Step 3: Install Docker Desktop for Windows
Docker allows you to run applications in isolated environments known as containers. This is an important part of setting up Fizz Node.
1. Download Docker Desktop
2. Install Docker Desktop
Once downloaded, find the Docker Desktop Installer.exe file (usually in your Downloads folder) and double-click it to start the installation.
3. Enable WSL 2 Features
If during the installation, you’ll be asked to choose your preferred engine. Ensure that the Use WSL 2 instead of Hyper-V option is checked.
4. Follow Installation Steps
Follow the on-screen instructions, clicking OK or Next when prompted. Be sure to accept any agreements along the way.
5. Restart Your Computer
If prompted, restart your computer after the installation completes to ensure Docker is properly installed.
Step 4: Configure Docker for WSL
Now that Docker is installed, let’s configure it to work seamlessly with WSL.
1. Open Docker Desktop
2. Set WSL 2 as the Backend
Click the Settings icon (gear icon) in the top-right corner.
In the General tab, make sure the Use the WSL 2-based engine option is checked.
3. Enable Integration with Ubuntu
To ensure Docker works with the Ubuntu environment you installed earlier:
Click on Resources in the left-hand menu.
Then, click on WSL Integration.
Toggle on the Ubuntu option to enable integration.
4. Apply and Restart
Once the settings are configured, click Apply & Restart to save your changes and restart Docker.
Step 5: Registering Your Fizz Node
Once you’ve completed the requirements to run your own fizz node, setting things up only takes a few quick steps.
1. Registering and Configuring Your Fizz Node
Click on the “Register New Fizz Node” Button.
In the next window, select Linux as your node’s OS from the options provided (MacOS or Linux).
2. Resource Details
Provide accurate information about the resources you’re willing to lend, including:
CPU cores
RAM capacity
Available storage
3. Region
Select the geographical location where your node is situated. This helps users choose nodes based on their proximity requirements
4. Payment Tokens
Choose the cryptocurrencies or tokens you will accept as payment for your services.
5. Provider Selection
This is a crucial step. Choose a provider carefully, considering factors such as:
Uptime track record: A provider with high uptime increases your chances of getting deployments.
Provider tier: Higher-tier providers may offer better opportunities.
Overall reputation in the network
9. Click “Register Your Fizz Node, “To complete the registration, you’ll need some ETH on the Spheron chain for gas fees. If you don’t have any, you can get some from our faucet at faucet.spheron.network.
Once you confirm the transaction, your node will be officially registered in the Spheron network, and you can proceed to the next steps**.**
Boom 💥— You’re officially part of the decentralized revolution!
Step 6: Run the Fizz Script
After successfully registering your node, you need to set up and run the Fizz node client on your machine. This client software connects your node to the Spheron network and manages resource allocation. Follow these steps:
Access the setup page for your registered node. There, You should find a link to download the fizzup.sh script.
Download the fizzup.sh script to your machine. Save it in a location you can easily access via a ubuntu terminal.
Now that Docker and WSL are set up let’s run the Fizz Node installation script.
1. Open Ubuntu
Click the Start button and type Ubuntu.
Open the Ubuntu terminal.
2. Navigate to the Fizz Script
Determine the location of your fizzup.sh script. If it’s in your Windows Documents folder, it can be accessed from WSL using the path /mnt/c/Users/YourName/Documents/.
In the Ubuntu terminal, type the following command, replacing YourName with your Windows username:
cd /mnt/c/Users/YourName/Documents/
Hit Enter to navigate to the directory.
3. Make the Script Executable
Next, we need to make the script executable. Type this command:
chmod +x fizzup.sh
Press Enter.
4. Run the Fizz Script
Finally, run the Fizz script with the following command:
./fizzup.sh
Enter your Ubuntu username password when asked.
The script should now execute, setting up Fizz Node in your WSL environment.
5. Verify your fizz node is running
verify if your Fizz node is running, use the following command:
These commands will show you the logs of your Fizz node, allowing you to confirm it’s running correctly.
6. Check your fizz status on the dashboard
Once you’ve verified the node is running, return to the setup page on the Spheron Fizz App.
On the setup page, you’ll see a “Check Status” button and a switch to “Automatically check status.” Click the “Check Status” button to manually initiate a status check for your Fizz node.
Alternatively, you can toggle on the “Automatically check status” switch to have the system periodically check your node’s status without manual intervention.
The system will now perform checks to validate if your node is active and correctly configured.
The validation process may take a few minutes. During this time, the system verifies your node’s connectivity, resource availability, and configuration. Once your node is confirmed active, you will be automatically directed to your Fizz dashboard.
Congratulations! 🎉 You’ve successfully installed Fizz Node on your Windows machine using WSL. Now, you can run Linux applications in your Windows environment without the need for a separate Linux machine or virtual machine.
If you encounter any problems, feel free to revisit this guide or consult the official documentation for WSL or Docker.
Fizz Nodes earn rewards based on two factors: resource contribution and uptime.
Resource Contribution: You’ll earn more if your node provides higher-tier resources such as a powerful GPU or more CPU cores.
Uptime: Fizz Nodes must maintain at least 50% uptime within an ERA (24 hours) to receive rewards.
The final reward calculation is a combination of the resource performance and uptime factor. This system encourages node operators to maintain stable, reliable operations while rewarding those who contribute higher-quality resources to the network.
On top of that, Fizz Node operators also earn direct payments from users who lease their compute resources. Operators keep 90% of the payment, with a small fee going to the network and providers. You can withdraw these earnings at any time from your dashboard.
Fizz Node Benefits
Beyond providing decentralized compute resources, running a Fizz Node offers several exclusive perks:
Monetize your idle compute power by selling resources in an open market.
Earn $FN points that will eventually merge with $SPHN tokens.
Join the first DePIN Super Compute Network, designed to distribute energy usage and help reduce carbon emissions.
Become eligible for the Fizzer Special Discord Role, unlocking special rewards like $500 monthly quests—on top of regular rewards from resource contributions.
Early Access to Updates & Announcements – Be the first to learn about Spheron Network’s upcoming features so you can prepare and take full advantage.
And More to Come – As we approach our token launch, there are plenty of additional perks in the pipeline!
At the end of the day, Fizz Nodes represent a new model for decentralized compute—one that’s accessible, profitable, and easy to manage. They’re a critical piece in Spheron’s broader decentralized vision that lets anyone with a modest setup participate in a network traditionally reserved for institutional players.
So if you’ve ever wanted to dip your toes into decentralized compute without needing to break the bank on hardware, now’s your chance. Get your node up and running, and start contributing to the future of decentralized compute today!
Troubleshooting Tips
Encountering issues during the setup process? Here are some common troubleshooting tips.
In recent years, the development and expansion of Web3 technologies have not only redefined boundaries in the digital world but also garnered attention from nations like Ukraine. One notable visionary at the forefront of integrating Web3 into Ukraine’s cultural fabric is Rostyslav Bortman. His mission to foster a robust Web3 culture in Ukraine is not just revolutionary but also set to redefine how Ukrainians engage with digital technologies. Below, we delve into Bortman’s mission and its impact on Ukraine’s burgeoning digital landscape.
## Understanding the Core of Web3
**Web3** is essentially a new paradigm for the Internet, which aims to decentralize the web using blockchain technology. Unlike previous Web iterations, Web3 promises greater security, privacy, and control for users. With concepts like cryptocurrency, decentralized applications (DApps), and smart contracts, Web3 represents a shift towards an autonomous digital economy.
### Key Features of Web3
– **Decentralization**: Eliminating the need for intermediaries, allowing users full autonomy over their digital identity and assets.– **Enhanced Privacy**: Utilizing cryptographic principles to secure data, providing privacy and control over personal data.– **Interoperability**: Seamless integration across platforms, disconnected from traditional walled gardens.
## Ukraine’s Digital Awakening
Ukraine is fast emerging as a hub of digital innovation. With its strong IT sector and a government that champions technological advancement, Ukraine is well-positioned to embrace Web3 technologies.
### Factors Propelling Ukraine’s Web3 Adoption
– **Supportive Government Policies**: The Ukrainian government has initiated pro-crypto legislation, fostering an environment conducive to blockchain innovation.– **A Thriving Tech Sector**: Boasting thousands of tech companies and skilled developers ready to explore Web3 applications.– **High Crypto Adoption**: Ukraine ranks high in global crypto adoption, reflecting public readiness to engage with decentralized finance.
## Bortman’s Vision for Ukraine
Rostyslav Bortman is leveraging Ukraine’s strengths to integrate Web3 into everyday life. His efforts are shaping how Web3 culture takes root in Ukraine, across various sectors including education, business, and governance.
### **Educational Initiatives**
Bortman believes that **education** is pivotal for advancing Web3. By collaborating with educational institutions, he has initiated programs to introduce Web3 concepts and skills to students and professionals. Key areas of focus include:
– **Workshops and Seminars**: Hosting events nationwide to disseminate fundamental Web3 knowledge.– **Partnerships with Universities**: Establishing courses on blockchain technology and cryptoeconomics.– **Online Platforms**: Launching interactive online platforms offering comprehensive Web3 learning content.
### **Enhancing Business Ecosystems**
Moreover, Bortman is championing the cause of incorporating Web3 in Ukrainian businesses. His initiatives include enabling businesses to:
– **Adopt Smart Contracts**: Streamlining operations through automated enforcement of contracts without third-party involvement.– **Explore Decentralized Finance (DeFi)**: Offering training to adopt DeFi, reducing reliance on traditional banking systems.– **Implement Transparent Practices**: Improving transparency and accountability using blockchain-enabled traceability.
### **Effective Governance through Web3**
Bortman’s mission extends to transforming governance. By promoting the use of blockchain for governmental transactions, he aims to:
– **Prevent Corruption**: Using immutable transaction records to increase transparency.– **Enhance Digital Identity Management**: Creating secure digital IDs for citizens, reducing fraud and enhancing privacy.– **Facilitate E-voting**: Exploring blockchain-based voting systems for fairer, more transparent elections.
## Overcoming Challenges in Web3 Adoption
Despite its potential, there are hurdles in the widespread adoption of Web3 in Ukraine. Bortman and his team are actively working to address these challenges:
– **Regulatory Concerns**: Navigating regulatory landscapes to balance innovation with legal compliance.– **Infrastructure Development**: Advocating for better technological infrastructure to support decentralized networks.– **Public Perception and Trust**: Overcoming skepticism by educating and building trust among citizens about Web3’s benefits.
## The Future of Web3 in Ukraine
Bortman’s mission has begun to bear fruit, as more Ukrainians are embracing the possibilities of Web3. The future of Ukraine’s digital landscape looks promising, characterized by:
– **Increased Adoption**: More sectors are expected to adapt Web3 solutions for efficiency and transparency.– **A Flourishing Tech Community**: Continued growth and collaboration among tech communities, furthering innovations.– **International Collaborations**: Ukraine, with its solid Web3 foundation, is likely to form strategic alliances with global tech leaders.
## Conclusion
Rostyslav Bortman’s vision for a Web3-empowered Ukraine is a testament to his commitment to digital innovation and societal advancement. By nurturing a culture that embraces the full potential of Web3, Bortman is not only propelling Ukraine towards a digital future but also setting an example for other nations. As Web3 continues to evolve, Ukraine, spearheaded by visionaries like Bortman, is poised to become a pivotal player in this digital revolution.
With ongoing efforts in education, business transformation, and governance, the future of Web3 in Ukraine holds limitless opportunities for innovation and growth.
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Rostyslav Bortman is Head of Blockchain Development at IdeaSoft and founder of ETHKyiv Community. He is one of the main faces of the global and Ukrainian Web3 development and a driving force behind crypto community development.
He has developed many outstanding Web3 products, while this year’s Ethereum hackathon in Kyiv organised by him and his team was attended by Vitalik Buterin – his keen friend and a dedicated colleague.
We talked about the future of the Ethereum market and ecosystem, and the Web3 sector in Ukraine and its specifics.
How did you find yourself in blockchain development? What attracted you to the Web3 industry?
Smart contracts. In 2016, my professor at the university came to me and offered me a topic for my thesis – ‘Smart contracts on Ethereum’ or something like that. I agreed. Since then, I couldn’t tear myself away from Solidity and Ethereum – I was completely taken by the concepts of decentralisation and the absence of intermediaries.
At the Incrypted Conference 2024, Vitalik Buterin noted that Ukrainian Web3 developers have made significant progress in creating innovative solutions. What do you think about this and how do you see the contribution of Ukrainian developers to the global development of blockchain?
At starters, there are different ways to contribute: to build a profound product with a good foundation that will go mainstream and have a direct impact on the development of Web3, or to be a developer in a team that builds the future of Web3, or to contribute to open-source communities.
Of course, among the cool teams in Web3, you can often find Ukrainian developers who build cool things in a team, and that’s very cool. However, we don’t see a massive number of Ukrainians developing products that go mainstream. We still need to work on this.
I think that the Ukrainian Web3 community is just starting to develop. As the organiser of the largest hackathon in Ukraine, I can say that we still have a lot of work to do on the culture of building startups. People are focused on earning money and don’t want to take risks, express no desire to build something of their own, because outsourcing provides stability.
My team and I intend to change this – to build a culture of hackathons in the country, because I am convinced that this is one of the most effective ways to show developers that building your own product is awesome. It will take time for people’s mindsets to change, and for Ukrainians to start influencing global blockchain development with their products.
Do you think Ukrainian startups can compete internationally in the field of Web3 and blockchain technologies? And if so, how?
Of course they can. The Web3 market is global, and it does not matter in which country it is built. First of all, the product use case, UX, is important. Anyone who makes a cool product that people need can compete in this market.
‘Build something people need. Build a dead simple experience,’ – Jesse Pollak.
Over the past few years, a lot of Web3 projects with Ukrainian roots have emerged. Are there any Ukrainian blockchain development projects you can mention?
Global Ledger. I also like Trustee Plus – it is simple, convenient, and solves the problem of consumer payments. HackenProof.
It is also important to note that the concept of success is different for many people, so I am only speaking about the ones I personally like.
You are the founder of the Kyiv Ethereum Community. What are the biggest achievements of this community? How do you think it has influenced the development of the blockchain ecosystem in Ukraine?
We have been organising meetups since 2021. We have already held about 25 different events. We have collaborated with BNB Chain, Scroll, Diia education, and many others. You can see all our events here – kyivethereum.com.
Recently, we organised ETHKyiv, which was attended by Vitalik (Buterin) and three other people of the Ethereum Foundation (and many other guests of various cool Web3 protocols). We managed to get such giants as EtherFi, Scroll, Intmax, Zero1, Circles, The Graph Builders Dao, and others as sponsors. Also, 123 hackers visited the location offline and took part in the hackathon.
We raised $8000 for the FPV-drones for the Ukraine Armed Forces (UAF). And all this despite the war.
In your opinion, what role does the Kyiv Ethereum Community play in the development of the Ethereum ecosystem?
I believe that the strategy of developing local communities around the world is the right one, because only local leaders, not the global Foundation, can have the greatest impact on people from specific countries.
The role and influence depends not on me, but on the community. I alone can do little, but we are doing everything in our power to create favourable conditions for the development of the Ethereum community in Ukraine – gather cool founders, visionaries, and leaders.
You are one of the founders of ETH: Kyiv Hackathon. In your opinion, how do hackathons and developer conferences contribute to the development of the Ethereum ecosystem? What are the main challenges you can identify in organising a hackathon?
Let’s start with the sad stuff. I am the one and only organiser of ETHKyiv 2024 (with my Kyiv Ethereum team, of course). Sergiy Sevidov was formally a co-organiser, but, in fact, he did not fulfil his duties and did not take any part in the organisation of this event. Therefore, calling him one of the organisers would be unfair to the team that was involved in the organisation.
Unfortunately, it turned out that he controls the ethkyiv.org domain and social media, in which our team made absolutely all publications related to the ETHKyiv hackathon. He refuses to give up the social media and the domain (although he has nothing to do with Ethereum in Ukraine and did nothing to develop it, his only goal is to use the ETHKyiv name), because he wants to hold some of his own events there and claim ETHKyiv 2024 as his own to sell it to sponsors and partners. My team and I have already turned this page and created new social media.
Now, to answer your question:
I believe that hackathons have a direct impact on the development of Ethereum in Ukraine, because I think that developers are the main asset of the ecosystem. That is why our main mission is to onboard Ukrainian developers to Ethereum. As for conferences, I can’t answer because my main focus is on builders.
There was an incredible amount of difficulties, but this would be a story for an hour. There were a lot of problems with contractors and the amount of coordination, communication, management of all the details, such as on Taikai network and elsewhere, involvement of sponsors, hackers, judges and speakers, and media publications. This story deserves a separate publication.
Over the past few years, a lot of blockchains and protocols have emerged in the Web3 space, such as Base, Whitechain, or Near. In your opinion, what impact does this have on the Web3 market and blockchain development?
Base has a very good impact on Web3 because they are developing a culture of builders around them and promoting the message that building is cool. They’re focused on developing consumer apps, which is the right thing to do, in my opinion, and I think that’s Base is where we’re going to see a lot of cool innovations in Web3.
How do you see the future of such a diversified Web3 market? Would an oligopoly of a few large networks be better?
I’m an ETH Maxi, so it’s hard for me to think about that. There are so many new and interesting things happening in Ethereum every day that I simply don’t have enough time to follow other ecosystems.
However, I think that other blockchains are likely to take some market share, but Ethereum will remain the undisputed leader. For me, Ethereum’s principles are closer to my heart. That’s why I’m here, and most of the people in the community are here as well. And I think that’s what makes Ethereum the best.
With the deeper integration of blockchain technologies into finance, do you think DeFi will be able to displace traditional, centralised banking? Is the DeFi infrastructure suitable for large-scale financial transactions?
Currently, consumer payments are one of the biggest issues that are a priority in the industry, including, for example, Base (I wrote about it here). I don’t think that DeFi will replace centralised banking in the coming years, but I think that step by step, it will become more convenient and popular, the number of users will grow, and strategically, in the future, we will have some hybrid systems with the ability to completely abandon traditional centralised banking if necessary.
With the launch of Ether ETFs and rumours of Solana exchange-traded funds, is it possible to bring tokens of other blockchains to the stock markets? Does the blockchain industry need such a tendency?
I don’t think we will see a Solana ETF in the near future. There are objective reasons for this.
Firstly, the SEC (US Securities and Exchange Commission – author’s note) considers Solana a security. Secondly, the funds own 12% of SOL (or more, I don’t know the exact figure, but it is a significant disadvantage). Thirdly, if we talk about the classic path to ETFs (as was the case with BTC and ETH), Solana still needs 2-3 years to go all the way.
As for other assets, I think that the cryptocurrency market has to become much more mature first, because now all these memecoins and assets with no meaning and billions of dollars in capitalisation look very strange.
NFTs have seen better days in terms of popularity. Do you see any potential in this technology? How can NFTs be used to unlock their full technological potential?
NFTs are not going anywhere, but not the NFTs that everyone has heard about in 2021. NFT is a token standard that will be and is already being actively used in RWA (Real World Assets). They will tokenise everything they can with NFT. From real estate to items in virtual worlds and games. I have no idea what will happen to NFT monkeys.
In your opinion, which sectors of Web3 development can become trends in the near future?
You used to teach your own course at Sigma Software University. So, how do you assess the role of such educational initiatives in training new specialists for the Web3 and blockchain industry?
I believe it is very important. As far as I know, the situation in Ukraine is not very good.
I would really like to see us move faster and have more enthusiasm. If anyone wants to run Solidity courses, remember that we will always support you. Come, let’s talk.
I like the example of Argentina – they have integrated Ethereum and Solidity into the school curriculum in Buenos Aires. I think we should move in this direction – I have already texted to several of my friends on this topic.
In your opinion, how do you convey the benefits of blockchain technologies or a particular Web3 project to the masses?
Build something that people need. Build dead simple experiences. Create applications that people use, that’s all. They (masses – author’s note) will come to you. Someday, freedom of speech will become a very important aspect, looking at what is happening in the world now. So I think that the demand for decentralisation, security, and censorship resistance will grow.
How do you see the Web3 industry in 5-10 years?
This is a very difficult question. I think there will be a lot of applications that will go mainstream and users will not even know that they are Web3-based. I think that during this time, the main UX problems will be solved and we will be able to find killer use cases in the industry. I think we will see the same mass adoption in the next 10 years.
What motivates you the most to continue working in this field?
I am keen on the principles of decentralisation, censorship resistance, self-custody, etc. I like to remove trust from where it shouldn’t remain. I like to remove intermediaries and automate the conditions in smart contracts. I believe that this is the future, and we are moving in the right direction in general. I like being involved in this, and I am grateful for it.
People are also motivating. Such a concentration of incredibly smart, open-minded people is very incentive.
In the world of information and technology, safety and security have become the topmost priority in every aspect of our daily lives. From personal information to financial transactions, we trust the intermediaries to protect our data and transactions. Yet, traditional systems are vulnerable to hacking, fraud, and errors. Welcome to the Blockchain, a revolutionary technology that promises decentralized data, provides security, and makes it virtually tamper-proof. Blockchain spreads control across a network, ensuring that every transaction is recorded transparently. In this blog, we will explore what sets Blockchain apart from the conventional method we used to know and why Blockchain is rapidly evolving in this decentralized world.
What is Blockchain?
Blockchain is the decentralized, digital ledger technology that records transactions across the network of computers in a secure, transparent, and immutable way. Each transaction is recorded into a “block” (A block in the Blockchain is a digital record that contains a collection of data, a list of transactions), which is linked to the previous block, forming a continuous “chain.” It ensures that your data cannot be altered or deleted. Unlike the conventional way, Blockchain relies on a distributed network where every participant (node) has access to the same information, fostering trust and transparency.
Now let’s get to know about the key components of Blockchain.
Key Components of Blockchain:
1. Blocks: The basic units that store data, such as transaction records, and are linked together in chronological order.
2. Nodes: Independent computers within the blockchain network that maintain copies of the ledger, validate transactions, and communicate with each other to reach consensus.
3. Hash: A cryptographic signature unique to each block, ensuring data integrity. Each block also contains the hash of the previous block, linking them together.
4. Consensus Mechanism: The process by which nodes agree on the validity of transactions, ensuring the integrity of the blockchain. Common methods include Proof of Work (PoW) and Proof of Stake (PoS).
5. Smart Contracts: Self-executing contracts with the terms of the agreement directly written into code, enabling automated and trustless transactions.
6. Distributed Ledger: A decentralized, shared ledger where all participants have access to the same data, promoting transparency and reducing the need for intermediaries.
But you might wonder how Blockchain works. What is the actual process?
How Blockchain Works?
Source: Mindmajix
1. Transaction Origination:
The transaction occurs when any user wants to transfer assets (be it cryptocurrency, data, or any other digital good). It could be a straightforward payment in the case of Bitcoin or a highly complex operation that involves smart contracts. The transaction includes information about the sender, receiver, and amount, along with a digital signature that authenticates the identity of the user.
2. Transaction Broadcast to the Network:
Once a transaction is started, it is sent to a network of nodes or computers in the blockchain. Every node in the network receives the transaction request and verifies its authenticity by checking if the user has the right to perform this transaction.
3. Transaction Validation:
Nodes validate the transaction by verifying the user’s digital signature and ensuring that all transaction conditions are met (such as checking if the funds are available).
Proof of Work (PoW): Miners (nodes) compete to solve a complex mathematical puzzle to validate transactions and add them to the blockchain. The first miner to solve it gets to add the block and is rewarded with cryptocurrency.
Proof of Stake (PoS): Validators are selected to create new blocks based on the number of coins they “stake” in the network, with fewer energy requirements compared to PoW.
4. Transaction Collated into a Block:
Once confirmed, the transaction is grouped with other transactions that occurred around the same time into a block. A block contains several different elements –
The list of successful transactions.
A hash for the current block.
A hash of the previous block, linking it to the prior block, creates a sequence of blocks-thus the name “Blockchain”.
5. Block Added to the Blockchain:
Once the block is verified by the network through the consensus mechanism, it is added to the existing blockchain, becoming a permanent part of the ledger. The chain of blocks is stored across the distributed network of nodes, and all nodes update their copy of the blockchain to include the newly added block.
6. Immutability and Security:
After a block is added to the blockchain, its data may never be altered or deleted without affecting every block afterward. Because each block is secured by its hash and the hash of the block that it follows, if a person wants to alter a block, the hash would change, breaking the link to the block after it and signaling to the network that something was amiss. This immutability makes blockchain very secure and resistant to fraud or manipulation.
7. Complete the Transaction:
Once the block is appended to the chain, that transaction is finally complete and confirmed. The data is visible and accessible to nodes across the network. Depending on the blockchain, the transaction confirmation may require multiple blocks to be added after the current one to ensure security (for example, Bitcoin requires six blocks for full confirmation).
But why would you use Blockchain technology? Why Blockchain is so unique?
Benefits of Using Blockchain:
1. Decentralization:
Blockchain does not require any central authority because it scatters data across a network of nodes. Decentralization decreases dependence on third-party intermediary organizations such as banks or any other system for verification; because of that reason, it reduces the cost of transactions and enhances processes to work efficiently.
2. Security:
Blockchain uses advanced cryptography, and recorded data in the block cannot be altered, it would be linked to the prior block, hence it is impossible to alter or change information by hackers. Blockchain ensures that transactions are safe and of integrity.
3. Transparency and Trust:
All the participants of a blockchain system have access to the same data, which is verifiable. The transparency of the blockchain ledger fosters trust among participants because transactions are easily auditable and traceable, reducing the risk of fraud.
4. Increased Efficiency and Speed:
Traditional systems rely on the intermediary which causes the transactions to take more time. Blockchain technology automatically executes smart contracts and removes vast processes by determining the conditions when they are fulfilled for self-execution as payments, transfer of assets, and settling contracts.
5. Cost Savings:
Removing the intermediary in blockchain and automated verification, auditing, and record-keeping saves costs related to operations. Be it financial services, supply chains, or health care; organizations can cut transaction fees as well as labor-intensive processes.
Types of Blockchains:
There are various types of Blockchain. Public Blockchain, Private Blockchain, Consortium Blockchain, Hybrid Blockchain.
1. Public Blockchains vs. Private Blockchains:
Source: academy.moralis.io
FeaturePublic BlockchainsPrivate BlockchainsAccessOpen to anyone to join and participateRestricted access, typically within an organizationAuthorityDecentralized, no single entity controls the networkCentralized, controlled by one organizationConsensus MechanismUses mechanisms like Proof of Work (PoW) or Proof of Stake (PoS)Can use customized, permission consensus mechanismsTransparencyFully transparent, all transactions are visible to the publicTransactions are visible only to authorized usersExamplesBitcoin, EthereumHyperledger, Corda
2. Consortium Blockchains:
Source: slideteam.net
A Consortium Blockchain, known as Federated Blockchain, is a semi-decentralized network, where the blockchain is managed by a group of organizations or institutions rather than a single entity. Unlike, public blockchains, which are fully decentralized, and private blockchains, controlled by only one organization, consortium blockchains offer this middle-ground approach with a selective decentralization model.
Example: R3 (used in banking), Energy Web (used in the energy sector).
3. Hybrid Blockchains:
Source: slideteam.net
A hybrid blockchain combines the features of public and private blockchains. It offers a flexible solution that allows for both open and closed systems. While some parts of data may be public in a hybrid blockchain, the other parts remain private or accessible only to chosen participants. With such capability, organizations can control access to sensitive information while taking advantage of the transparency and security provided by blockchain technology.
Example: Dragonchain, XinFin.
Applications of Blockchain Technology:
There are various types of applications of Blockchain technology. Let’s get to know about them.
1. Blockchain in Finance:
Source: hyperhci.com
Blockchain is transforming the finance form with efficient, transparent, and secure platforms.
Cryptocurrency: Cryptocurrencies like Bitcoin and Ethereum, support decentralized cryptocurrency exchanges.
Smart Contracts: Smart Contracts will automate agreements and enforce compliance on both sides, without intermediaries, for example: loans or insurance.
Cross-border payments: Cross-border payments became faster and cheaper, and intermediaries such as banks were no more required.
DeFi: DeFi is short for Decentralized Finance. It means decentralized financial services that give access to lending, borrowing, and trading without central authorities.
2. Blockchain in Supply Chain:
Source: techment.com
While controlling and efficiently working with the supply chains, Blockchain technology also affords a higher level of operational transparency and traceability.
Traceability: Each and every step undergone from preparing such product for sale e.g. in the food or pharmaceutical industries can be stored and verified on the blockchain network.
Fraud Management: There is no way of keeping back or altering any record on the chain and therefore such enables risk or chance of fraudulent activities to an extent.
Smart Contracts: Entering supply or service agreements with the respective suppliers is a straightforward process that rarely has delays or disagreements.
Environmental Impact: Blockchain can facilitate the assessment and evidence of these kinds of ethical considerations and their practice – e.g. fair trade or organic certification.
3. Blockchain in Healthcare:
Source: blockchainappsdeveloper.com
With the rise of blockchain technology, healthcare management can also be more efficient in the management of patient data privacy and research.
Security of Patients’ Medical Data: Patients can share and control their medical data across different health providers while reducing the risk of duplicity and mistakes.
Pharmaceutical Chain Improvement: The potential of blockchain can be fully realized in tracking all manufacturers and patients of a given drug and hence include the fight against fake pharmaceuticals.
Clinical Studies: Blockchain allows for the preservation of sensitive results from research in clinical trials.
Sharing of Datasets: Blockchain may enable the controlled and secure sharing of linked de-identified patient data for the purpose of conducting clinical research.
4. Blockchain in Gaming Industry:
Source: in.pinterest.com
The advent of blockchain technology has come with digital property, distributed economies, and enriching play experiences that are revolutionizing gaming.
In-game Assets: Players can now buy, sell, or trade much-loved in-game characters, clothes, weapons, and skins as NFTs.
Play to earn: Players have a chance to earn some cryptocurrency or tokens by engaging in such games adding another layer of economic value.
Decentralized gaming: Games developed on the blockchain are more transparent, allowing for fewer unfair advantages and the ability to restrain the players.
Asset portability: One of the features of blockchain is it allows the assets to be used in more than one game or application by the same player.
Blockchain and its Cryptocurrencies:
The emergence of blockchain technology has taken the world by storm especially due to its use in cryptocurrencies. These unique networks have changed the way transactions, contracts, and assets are handled by providing a high degree of safety and eliminating the need for middlemen. Now, let’s try to highlight several essential blockchains and explain how these blockchains support various cryptocurrencies.
1. Bitcoin Blockchain:
Source: lens.monash.edu
Bitcoin’s blockchain, created in 2009 by the elusive Satoshi Nakamoto, is the earliest and the most famous of them all. It is the backbone of Bitcoin, the digital currency that started it all. The blockchain underpinning Bitcoin uses a consensus mechanism called Proof of Work (PoW), where participants known as miners help validate transactions and keep the network secure by solving puzzles that involve cryptographic hashes.
Due to its robustness and its dispersed nature, it is no wonder that even with the emergence of many other digital currencies, bitcoin remains the most prestigious and highly valued of them all. However, the issue of its scalability and how fast transactions are processed has always been a matter of contention.
2. Ethereum Blockchain:
Source: tarlogic.com
Ethereum, proposed in 2015 by the self-described geek Vitalik Buterin, is more than just an electronic currency. The Users can freely serve the ETH cryptocurrency, which is the default currency for Ethereum, but this is not what ETH is about. What makes Ethereum so different from the other blockchains is the smart contracts feature that simply allows the Ethereum blockchain to create contracts that are executed as codes on the blockchain. This allowed the emergence of dApps and many more uses including DeFi and NFTs.
While Ethereum started by using Proof of Work consensus, it is now based on the Proof of Stake consensus of Ethereum 2.0 in order to solve the issues of scalability and environmental impact.
3. Tron Blockchain:
Source: en.cryptonomist.ch
As launched by Justin Sun in 2017, Tron has adapted cryptocurrency technology to allow the free creation of content without the censorship threats on the creators. Thus, the platform focuses on high transaction speeds and the growing number of dApps available a majority are in the content sharing and entertainment sector.
Tron works under the Dpos model which is cost-effective and timesaving as transactions can be completed in a matter of seconds without costing much, that is why it is widely used in several mobile applications where content is shared, hosted, and played, games and social networks. TRX is the main token used in the TRON network and it is aimed at removing intermediaries allowing content creators to be rewarded directly.
4. Solana blockchain:
Source: 0xdev.co
Launched in 2020 by Anatoly Yakovenko, Solana Blockchain is popular for its incredible speed and low transaction cost, making it one of the fastest blockchains in its entire history. By utilizing a blend of proof of stake and a unique system of proof of history, Solana is capable of processing thousands of transactions in a matter of seconds which solves the scalability challenges many of the traditional blockchain networks face. This makes Solana especially suitable for DeFi, gaming, and NFT projects. Its coin SOL plays an important role in securing the network and staking.
5. Bitcoin Cash Blockchain:
Source: Quartz
This is a process of the Bitcoin Blockchain which is known as the Bitcoin Cash Blockchain. Bitcoin Cash (BCH) on the other hand came into existence in the year of 2017, which was a fork that addressed the issue of Bitcoin’s scalability issues by increasing the block size limit. This allows Bitcoin Cash to accommodate more transactions within a single block, thus making cheaper and faster transactions as opposed to Bitcoin.
Even though they both share the same basic tenets of being decentralized and providing security, Bitcoin Cash is more precise for daily transactions considering its speed and low charges, even though most people do not use it as much as they do with Bitcoin.
6. WAX Blockchain:
Source: defipedia.com
WAX Blockchain was launched in the year two thousand seventeen, it has gained popularity among gamers and NFTs because it is an eco-friendly, energy-saving Proof of Stake model. WAX (Worldwide Asset eXchange) is a blockchain focused on virtual and digital assets, particularly when it comes to games and NFTs. It is now possible for users to create, purchase, rent, or trade virtual items such as NFTs with very low costs of operations. There is also an easy dev interface, and the platform has collaborations with world-known gaming and entertainment companies. The ecosystem is powered by WAXP cryptocurrency which is used for staking, governance, and transactions.
Investment in Blockchain:
However, with developments in technology, Blockchain has expanded its scope to even further technologies. There are new things to explore for investors whereby blockchain introduces means to enhance one’s investments and it portrays the future of human beings. Investments in blockchain might take so many forms and two of them are Blockchain ETFs and Blockchain Certifications.
Blockchain ETF:
As an alternative, Blockchain Exchange Traded Funds will allow investors to access blockchain-related industries without buying volumes of cryptocurrencies concentrating on a particular one. These funds purchase stock in firms working on the blockchain, from manufacturers of the components to companies that create applications that run on blockchain technology.
Example: Technology companies like IBM or financial service firms like Square. By holding shares in blockchain ETFs, investors can indirectly gain from the growth of blockchain applications without the volatility associated with direct cryptocurrency investments.
Blockchain Certification:
Source: Software Testing help
As blockchain’s influence grows, so does the need for expertise in the field. Blockchain certification programs offer a direct investment in knowledge, enabling professionals to capitalize on the expanding job market for blockchain developers, analysts, and consultants. Programs like the Certified Blockchain Professional (CBP) or Certified Blockchain Developer (CBD) provide industry-recognized credentials that signal expertise to employers. These certifications not only boost individual career prospects but also make professionals critical contributors to blockchain’s continued evolution, providing a solid investment in long-term success.
Emerging Blockchain Technologies and Trends:
Over recent years, Blockchain has undergone numerous changes and improvements. Blockchain platforms and applications spreading across almost all industries. These changes are altering the perception of decentralized systems and are leading to the adoption of blockchains in activities other than cryptocurrencies. Below are some exciting blockchain technologies and trends to watch out for.
1. Riot Blockchain:
Source: watcher.guru
Riot Blockchain is one of the biggest Bitcoin mining companies in the USA. It mainly focuses on its mining operations and aims to enhance the infrastructure for Bitcoin by developing symbiotic large-scale mining operations. To improve mining capability and secure and decentralize the Bitcoin network as a whole, Riot employs state-of-the-art mining equipment and energy-efficient technology. With the rise in the popularity of cryptocurrency mining, this business sector must hopefully lead innovation, growth, and expansion of operations for Riot Blockchain.
2. Hive Blockchain:
Source: steempeak.com
Hive Blockchain combines cryptocurrency mining with a green energy approach, focusing on mining Bitcoin and Ethereum using renewable energy. With data centers in countries like Sweden and Iceland, Hive aims to operate sustainably by reducing carbon footprints in the energy-intensive mining process. By aligning with eco-friendly initiatives, Hive Blockchain is carving a niche in the mining industry while contributing to environmentally conscious blockchain practices.
3. Argo Blockchain:
Source: argoblockchain.com
Cryptocurrency mining has also become popular among other industries, so Argo Blockchain’s differences are not only in this it. Its focus is on energy-efficient mining. Based in the United Kingdom, Argo has several huge mining farms throughout the world but concentrates on climate change mitigation. With this agenda, Argo aims to lead the blockchain mining sector and be described as innovative, transparent, and environmentally responsible. So, this corporation is also diversifying its activities by researching technologies such as non-Bitcoin cryptocurrencies and decentralized finance (deFi) alongside blockchain.
4. Flow Blockchain:
Source: coingecko.com
Flow Blockchain is designed with NFTs, games, and decentralized applications in mind. Flow was developed by Dapper Labs, the guys behind CryptoKitties, and this is a fast, developer-centric blockchain that overcomes many of the scaling problems typical of other blockchains. Flow’s unique architecture allows for a high transaction throughput, while still maintaining a level of decentralization which is perfect for use in applications such as NBA Top Shot and other entertainment-orientated applications. Because of its emphasis on usability and scaling, this is one of the most advanced blockchains for gaming, digital assets, and consumer-orientated dApps.
Tools and Resources for Blockchain:
Blockchain technology is transforming industries across the globe, and understanding the tools and resources available can help you navigate this new digital frontier. Whether you’re managing cryptocurrency, tracking transactions, or deep diving into the technology behind a project, the following tools can be invaluable.
1. Blockchain Wallets:
Blockchain wallets are digital tools that allow users to store, send, and receive cryptocurrencies securely. These wallets come in various forms, including hot wallets (connected to the internet, like mobile or desktop apps) and cold wallets (offline, such as hardware devices). They ensure that only the wallet owner can access the private keys necessary to authorize transactions. Popular wallets like MetaMask and Ledger not only provide secure storage but also allow interaction with decentralized applications (dApps), enabling users to engage in various blockchain activities.
2. Blockchain Explorers:
A blockchain explorer is a tool that functions like a search engine for the blockchain network and its activity and displays information on various transactions, blocks, and addresses. Such tools allow for a very quick degree of transparency as users can observe the transactions being made or even the specific money being used in a particular transaction.
An example, Explorers like Etherscan (for Ethereum) and Blockchain.info (for Bitcoin) are widely used to monitor network activity, confirm transactions, and even audit smart contracts. They are essential for anyone involved in blockchain, as they offer a detailed look into the functioning of a blockchain.
3. Blockchain Whitepapers:
A blockchain whitepaper is a detailed document that outlines the technical and business aspects of a blockchain project. It’s often the first introduction to a new cryptocurrency or decentralized solution, offering potential investors or developers a deep dive into its mechanics, use case, and potential market impact.
The Bitcoin whitepaper, written by Satoshi Nakamoto, is one of the most famous examples, setting the stage for the entire cryptocurrency movement. Whitepapers help users understand the innovation and problem-solving approach behind blockchain projects, making them key resources for evaluating new opportunities.
Future of Blockchain:
Blockchain technology, once synonymous only with cryptocurrencies, is rapidly expanding into various industries, promising to reshape how we conduct business, share data, and build trust. As we look to the future, blockchain’s evolution presents both exciting opportunities and notable challenges. Below is a glimpse into the trends, predictions, and hurdles that will shape its path forward.
1. Trends and Predictions:
Mass Adoption of Decentralized Finance (DeFi):
DeFi is expected to grow, offering decentralized financial services that eliminate intermediaries like banks. With lending, borrowing, and staking becoming more user-friendly, DeFi could democratize access to financial tools globally.
Enterprise Blockchain Solutions:
More corporations are expected to adopt private and consortium blockchains for internal use. Sectors like supply chain management, healthcare, and finance will use blockchain for secure data sharing and operational transparency.
NFT Evolution:
Non-fungible tokens (NFTs) are evolving beyond collectibles into real-world applications, such as tokenized assets in real estate or intellectual property. NFTs could expand into digital rights management or even personal identity verification.
Interoperability Between Blockchains:
One significant trend is the focus on cross-chain interoperability, where different blockchain networks communicate seamlessly. This will help reduce the fragmentation of ecosystems and enable more fluid transactions across networks.
Governments and Central Bank Digital Currencies (CBDCs):
Countries are exploring CBDCs—blockchain-based versions of national currencies. Governments will likely use blockchain to improve the transparency and efficiency of their financial systems, with CBDC projects emerging from countries like China, the EU, and the US.
2. Challenges and Opportunities
Scalability Issues:
As blockchain networks grow, ensuring they can handle large volumes of transactions efficiently remains a significant challenge. Layer 2 solutions like rollups, sharding, and sidechains are emerging to improve scalability, but widespread implementation will take time.
Energy Consumption:
The high energy consumption of blockchain networks, especially those based on Proof of Work (like Bitcoin), poses environmental concerns. Shifting to more eco-friendly models such as Proof of Stake and adopting green blockchain initiatives will be crucial.
Regulation and Compliance:
Governments worldwide are grappling with how to regulate blockchain without stifling innovation. Clear regulations that protect users and encourage innovation could unlock more blockchain adoption, while restrictive rules may slow progress.
Security Risks and Hacks:
While blockchain is secure by design, hacks of decentralized applications and exchanges are not uncommon. Building more robust security frameworks and educating users will be essential for reducing risks in the decentralized space.
Opportunity in Tokenization of Assets:
Beyond digital currencies, blockchain presents a massive opportunity in asset tokenization, where real-world assets like real estate, commodities, or art are represented as digital tokens. This could revolutionize investment opportunities, making them more accessible to a broader audience.
Blockchain is reshaping industries with its potential for transparency, security, and decentralization, from finance to healthcare and beyond. While challenges like scalability and regulation remain, the opportunities for innovation are immense.
What do you think? Will blockchain drive the next wave of technological disruption? Share your thoughts in the comments!
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Elon Musk-inspired Telegram game X Empire turned off its gameplay on Monday ahead of the planned X token airdrop—and then brought it back on Wednesday with a short “Chill Phase” that will last about two weeks before the late October token launch on The Open Network (TON).
In this last sprint before the airdrop, X Empire has reset all progress, challenging the tens of millions of players to push hard for a share of 34.5 billion additional X tokens allocated for the event. The original airdrop allocations have already been calculated and won’t be changed, but the Chill Phase offers an opportunity to earn a little more crypto before the drop.
Luckily, if you’ve already been playing X Empire, then a lot of the familiar strategies still apply. You just have to start from zero, regardless of how far you’d gotten during the original phase.
But if you’re trying to make the most of the Chill Phase and boost your chances of receiving a solid share of the additional tokens, here are a few quick tips.
Invest in upgrades
As with the original airdrop, your “Coins per hour” rate of passive income will be key for determining how big of a bag you take away from X Empire’s Chill Phase. So tap that “Improve” button at the bottom of the screen and invest your earned coins on upgrades to your avatar’s traits, office, and team.
You’re spending money to make money, only it’s fake money you’re spending now—and real money (well, cryptocurrency) to ultimately claim in the airdrop. Some upgrades offer more bang for your buck, so choose wisely, continually spend your passive income on more and more upgrades, and level up your avatar as much as possible before the airdrop.
Screenshots from X Empire. Image: Decrypt
Do the daily combo
Another easy way to boost your in-game earnings is to invest in fake stocks via the City menu. Each day, three of the fictional stock market picks pay off handsomely, multiplying the amount of in-game coins you wagered on it. And each day, we update our X Empire daily combo guide with the current picks—so hit that up and don’t miss the added bonus.
Complete quests
Like many Telegram crypto games, X Empire also incentivizes engagement with social media and video content, and completing in-game quests is one of the stated criteria for the airdrop. Each day, the game serves up a number of daily quests, including improving five attributes, earning a certain amount of coins by tapping, and watching certain YouTube videos.
Complete all of the daily tasks and you’ll not only get a coin bonus, but also a Daily Lucky Box… which usually just gives you more coins, as well. Given the short timeframe for this Chill Phase, it might be worth watching the videos to complete all of the daily quests—so you can get an edge on other players.
Screenshots from X Empire. Image: Decrypt
There are also bonus quests to complete, such as solving the daily riddle and rebus puzzles—and you’ll find the solutions for both in our daily-updated guide. Connecting a TON wallet and making donations or other purchases will also play a role in the airdrop, the developers said.
Invite friends
Last but not least, the “quantity and quality of invited friends” is another primary criteria for the upcoming airdrop, so you might consider bugging a few pals if they’ll be a good sport about it—and won’t hold your badgering against you.
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Behavioral economics is a field that explores the effects of psychological factors on economic decision-making. This branch of study is especially pertinent while designing a token since user perception can significantly impact a token’s adoption.
We will delve into how token design choices, such as staking yields, token inflation, and lock-up periods, influence consumer behavior. Research studies reveal that the most significant factor for a token’s attractiveness isn’t its functionality, but its past price performance. This underscores the impact of speculative factors. Tokens that have shown previous price increases are preferred over those with more beneficial economic features.
Understanding Behavioral Tokenomics
Understanding User Motivations
The design of a cryptocurrency token can significantly influence user behavior by leveraging common cognitive biases and decision-making processes. For instance, the concept of “scarcity” can create a perceived value increase, prompting users to buy or hold a token in anticipation of future gains. Similarly, “loss aversion,” a foundational principle of behavioral economics, suggests that the pain of losing is psychologically more impactful than the pleasure of an equivalent gain. In token design, mechanisms that minimize perceived losses (e.g. anti-dumping measures) can encourage long-term holding.
Incentives and Rewards
Behavioral economics also provides insight into how incentives can be structured to maximize user participation. Cryptocurrencies often use tokens as a form of reward for various behaviors, including mining, staking, or participating in governance through voting. The way these rewards are framed and distributed can greatly affect their effectiveness. For example, offering tokens as rewards for achieving certain milestones can tap into the ‘endowment effect,’ where people ascribe more value to things simply because they own them.
Social Proof and Network Effects
Social proof, where individuals copy the behavior of others, plays a crucial role in the adoption of tokens. Tokens that are seen being used and promoted by influential figures within the community can quickly gain traction, as new users emulate successful investors. The network effect further amplifies this, where the value of a token increases as more people start using it. This can be seen in the rapid growth of tokens like Ethereum, where the broad adoption of its smart contract functionality created a snowball effect, attracting even more developers and users.
Token Utility and Behavioral Levers
The utility of a token—what it can be used for—is also crucial. Tokens designed to offer real-world applications beyond mere financial speculation can provide more stable value retention. Integrating behavioral economics into utility design involves creating tokens that not only serve practical purposes but also resonate on an emotional level with users, encouraging engagement and investment. For example, tokens that offer governance rights might appeal to users’ desire for control and influence within a platform, encouraging them to hold rather than sell.
Understanding Behavioral Tokenomics
Intersection of Behavioral Economics and Tokenomics
Behavioral economics examines how psychological influences, various biases, and the way in which information is framed affect individual decisions. In tokenomics, these factors can significantly impact the success or failure of a cryptocurrency by influencing user behavior towards investment
Influence of Psychological Factors on Token Attraction
A recent study observed that the attractiveness of a token often hinges more on its historical price performance than on intrinsic benefits like yield returns or innovative economic models. This emphasizes the fact that the cryptocurrency sector is still young, and therefore subject to speculative behaviors.
The Effect of Presentation and Context
Another interesting finding from the study is the impact of how tokens are presented. In scenarios where tokens are evaluated separately, the influence of their economic attributes on consumer decisions is minimal. However, when tokens are assessed side by side, these attributes become significantly more persuasive. This highlights the importance of context in economic decision-making—a core principle of behavioral economics. It’s easy to translate this into real-life example – just think about the concept of staking yields. When told that the yield on e.g. Cardano is 5% you might not think much of it. But, if you were simultaneously told that Anchor’s yield is 19%, then that 5% seems like a tragic deal.
Implications for Token Designers
The application of behavioral economics to the design of cryptocurrency tokens involves leveraging human psychology to encourage desired behaviors. Here are several core principles of behavioral economics and how they can be effectively utilized in token design:
Leveraging Price Performance
Studies show clearly: “price going up” tends to attract users more than most other token attributes. This finding implies that token designers need to focus on strategies that can showcase their economic effects in the form of price increases. This means that e.g. it would be more beneficial to conduct a buy-back program than to conduct an airdrop.
Scarcity and Perceived Value
Scarcity triggers a sense of urgency and increases perceived value. Cryptocurrency tokens can be designed to have a limited supply, mimicking the scarcity of resources like gold. This not only boosts the perceived rarity and value of the tokens but also drives demand due to the “fear of missing out” (FOMO). By setting a cap on the total number of tokens, developers can create a natural scarcity that may encourage early adoption and long-term holding.
Initial Supply Considerations
The initial supply represents the number of tokens that are available in circulation immediately following the token’s launch. The chosen number can influence early market perceptions. For instance, a large initial supply might suggest a lower value per token, which could attract speculators. Data shows that tokens with low nominal value are highly volatile and generally underperform. Understanding how the initial supply can influence investor behavior is important for ensuring the token’s stability.
Managing Maximum Supply and Inflation
A finite maximum supply can safeguard the token against inflation, potentially enhancing its value by ensuring scarcity. On the other hand, the inflation rate, which defines the pace at which new tokens are introduced, influences the token’s value and user trust.
Investors in cryptocurrency markets show a notable aversion to deflationary tokenomics. Participants are less likely to invest in tokens with a deflationary framework, viewing them as riskier and potentially less profitable. Research suggests that while moderate inflation can be perceived neutrally or even positively, high inflation does not enhance attractiveness, and deflation is distinctly unfavorable.
Source: Behavioral Tokenomics: Consumer Perceptions of Cryptocurrency Token Design
These findings suggest that token designers should avoid high deflation rates, which could deter investment and user engagement. Instead, a balanced approach to inflation, avoiding extremes, appears to be preferred among cryptocurrency investors.
Loss Aversion
People tend to prefer avoiding losses to acquiring equivalent gains; this is known as loss aversion. In token design, this can be leveraged by introducing mechanisms that protect against losses, such as staking rewards that offer consistent returns or features that minimize price volatility. Additionally, creating tokens that users can “earn” through participation or contribution to the network can tap into this principle by making users feel they are safeguarding an investment or adding protective layers to their holdings.
Social Proof
Social proof is a powerful motivator in user adoption and engagement. When potential users see others adopting a token, especially influential figures or peers, they are more likely to perceive it as valuable and trustworthy. Integrating social proof into token marketing strategies, such as showcasing high-profile endorsements or community support, can significantly enhance user acquisition and retention.
Mental Accounting
Mental accounting involves how people categorize and treat money differently depending on its source or intended use. Tokens can be designed to encourage specific spending behaviors by being categorized for certain types of transactions—like tokens that are specifically for governance, others for staking, and others still for transaction fees. By distinguishing tokens in this way, users can more easily rationalize holding or spending them based on their designated purposes.
Endowment Effect
The endowment effect occurs when people value something more highly simply because they own it. For tokenomics, creating opportunities for users to feel ownership can increase attachment and perceived value. This can be done through mechanisms that reward users with tokens for participation or contribution, thus making them more reluctant to part with their holdings because they value them more highly.
Conclusion
By considering how behavioral factors influence market perception, token engineers can create much more effective ecosystems. Ensuring high demand for the token, means ensuring proper funding for the project in general.
If you’re looking to create a robust tokenomics model and go through institutional-grade testing please reach out to contact@nextrope.com. Our team is ready to help you with the token engineering process and ensure your project’s resilience in the long term.
FAQ
How does the initial supply of a token influence its market perception?
The initial supply sets the perceived value of a token; a larger supply might suggest a lower per-token value.
Why is the maximum supply important in token design?
A finite maximum supply signals scarcity, helping protect against inflation and enhance long-term value.
How do investors perceive inflation and deflation in cryptocurrencies?
Investors generally dislike deflationary tokens and view them as risky. Moderate inflation is seen neutrally or positively, while high inflation is not favored.
Anthony Butler is a Chainlink advisor, and former CTO of IBM Services, Middle East and Africa.
Central Bank Digital Currencies (CBDCs) continue to be the subject of extensive research, experimentation, and analysis globally as central banks consider what the future of money may look like and whether tokenised central bank money should play a role in that future. This journey didn’t begin, of course, in 2024 but goes back many years: with the CBDC concept evolving substantially from the earliest domestic experimentations through to cross-border experimentation and now, the emergent concept of a “finternet” that seeks to weave together the worlds of tokenised and non-tokenised assets into a common fabric.
History of CBDCs
The first CBDC experiments appear to go back to 2014 when the Central Bank of Uruguay and China experimented with the e-Peso and e-CNY respectively. This was followed by various experiments such as Canada’s Project Jasper, South Africa’s Khoka, Monetary Authority of Singapore’s Ubin, and others. Some of these projects sought to replicate a form of digital cash (i.e. retail CBDC) and others sought to replicate the features and functions of the RTGS (i.e. wholesale CBDC).
Much of this early phase of experimentation was focused on understanding this new technology called “blockchain” and whether there was a potential to create something in a regulated context that resembled the innovations that were happening across the crypto ecosystem with Bitcoin, Ethereum, and so forth.
These domestic experiments were quickly followed by multi-jurisdictional experiments where the aperture was broadened to consider how CBDC could be used as instruments of cross-border settlement. For example, Hong Kong and Thailand’s Project Lionrock, Saudi Central Bank and UAE Central Bank’s Project Aber, Canada and Singapore’s integration of Jasper and Ubin (known as Jasper-Ubin), and Project Dunbar in which the BIS brought together the central banks of Australia, Malaysia, Singapore and South Africa to test multiple CBDCs on a single shared platform. This latter project demonstrated the efficacy of CBDCs for international settlement and led to Project mBridge.
The drivers for cross-border experimentation were different, with the primary goal of these initiatives being to address inefficiencies in international payments and remittances, which are often slow, costly, and opaque. For example, cross-border payments frequently take 3-5 days to clear and banks “continue to be the costliest channel for sending remittances,” with an average cost of 12.1% according to the World Bank.
Current CBDC landscape
Today, there are still experiments being conducted domestically and cross-border and there are a small number of countries that have, having seen projects provide significant efficiency, programmability, and composability advantages, made a decision to move forward with CBDCs. At the same time, there are now many examples of private money being tokenised too, such as the tokenised deposits that are issued as tokenised claims against commercial bank balance sheets. As with wCBDC, many of these are exploring cross-border scenarios too.
As we look at the evolution of this space and the efforts underway globally, it is clear that it is highly improbable that the world will converge on a single blockchain platform that will span the globe and be the “universal ledger” onto which all assets and forms of money will be tokenised.
Key reasons why a singular “universal ledger” will not be realised:
Not all countries will move towards tokenisation at the same time or same pace, so there will be a need for coexistence between the legacy and new systems for an extended amount of time. The choice of protocol or technology to tokenize an asset, such as permissioned or zero-knowledge based chains for privacy, fast-finality solutions for payments, and public blockchains for decentralized security, will be informed by the local jurisdictional requirements, the type of asset being tokenised, the types of markets that the asset will need to be listed in, and a myriad of other functional and non-functional requirements that will lead towards a particular technology. It is probable, for example, that different commercial banks may choose to use different technologies for tokenised deposits, central banks may use other technologies for their CBDCs, assets will be tokenised on a number of other heterogenous networks based on where there is demand and liquidity, and each system will need to interconnect with a myriad of other systems outside their jurisdiction such as the various DLT and non-DLT based messaging and cross-border payments systems. The technology is evolving quickly with scalability solutions that can support mass adoption and the barriers to entry are being lowered such that it is conceivable that, at some point in the future, instantiating a blockchain network will be analogous to the instantiation of a relational database today; a situation that will further lead to proliferation of networks. There are already emerging regional and other blocs in which different jurisdictions are coming together to build their own cross-border networks focused on a particular set of corridors or a particular region.
The end result is fragmentation, silos, and islands that, without bridges, will not be able to deliver on the original promise of blockchain.
Without blockchain interoperability, a fragmented ecosystem would emerge.
We can find synergies in the origins of the Internet. In the early days of the Internet, there were distinct networks that emerged to service different communities. There was ARPANET, CSNET, and NSFNET, for example, and a number of other networks that emerged in other parts of the world. They did not have any way to communicate with each other and were, like the various DLT networks of today, islands. On January 1st, 1983, this would change when they would adopt a common “language” known as Transfer Control Protocol/Internetwork Protocol or TCP/IP as it is commonly known today. It was the adoption of this universal language that led to the birth of the Internet.
As we see the various DLT-based financial networks following a similar trajectory with islands emerging, the question that must be asked is how will we solve the interoperability challenge? What, one might ask, is the TCP/IP of the blockchain era that will allow the TradFi and DeFi worlds to interoperate but also, within each, allow the various tokenised assets, deposits, and CBDC platforms to talk to each other? As with the Internet, it is only through the seamless integration of these networks that the true value can be realised.
What would a TCP/IP of the blockchain world need to offer?
A TCP/IP of the blockchain world enables an interoperable ecosystem.
Firstly, this protocol should enable tokens—the “packets” of blockchain-based finance (onchain finance) containing value and data—to move securely between networks, even heterogenous protocols, such as public and permissioned. It should do so in a way that ensures security and the integrity of the system. For example, it would obviously be problematic if some tokenised money was moved from one network to another yet it continued to persist in the original network since this would enable “doubling spending” and would undermine the integrity of the entire system.
Second, smart contracts should be able to govern and orchestrate the movement of these tokens such that sophisticated settlement use cases can be executed, such as the transfer of a CBDC from one network to another occurs only contingent on the transfer of a tokenised security from one network to another; or various payment versus payment scenarios such as exchanging CBDC on one network in one currency for CBDC on another network and in another currency. In order to support complex operations cross-chain, the interoperability solution must be programmable, embedding both tokens and instructions on what to do with those tokens in a single cross-chain transaction.
Thirdly, these tokens may be created as representations of some physical or “real-world assets”, such as a security or real estate. At the time of being created, this link will be established and, as the token moves between networks or cross-border, this link should not be broken but should continue to ensure that the token-holder has visibility and can have confidence in the linkage between the digital and physical worlds through real-time proof of reserve verifications. Further, as attributes of the physical asset change over time, the token should also be updated with offchain data being injected into the token’s smart contract to reflect these changing values.
Fourth, whilst TCP/IP was based on the movement of packets without consideration for what information was embedded in them, a TCP/IP of the blockchain world needs to take into account that much of what is being moved is of real financial value and is subject to a range of complex regulatory and other considerations. There needs to be an appropriate oracle-based privacy and permissions mechanism that ensures the security of the system while also supporting compliance with various regulations, enabling institutions to apply predefined controls and limits across transactional activity, including policies around identity, AML/KYC, legal requirements, organizational restrictions, and more.
Fifth, there needs to be a recognition that so-called legacy systems will need to co-exist and synchronize with the new systems and therefore the protocol should enable the seamless movement of value and data between these legacy worlds and the tokenised world—and vice versa.
Finally, as CBDCs or other tokenized assets move across chains through their lifecycle, they must be continually updated with key price, reserves ownership, compliance, and other data, regardless of which environment they’re transferred to. This would enable the creation of a unified golden record—a single source of truth that all stakeholders can read from.
SWIFT, the global bank messaging network, announced that banks across North America, Europe, and Asia will begin live trials of digital assets and currency transactions over its network starting next year, according to an Oct. 3 statement.
These trials will explore how financial institutions can leverage their existing SWIFT connections to process transactions involving both traditional and digital assets.
‘Digital islands’
SWIFT pointed out that institutional interest in digital assets is rapidly growing, with 134 countries exploring CBDCs. The tokenized asset market could reach $30 trillion by 2034, and 91% of institutional investors have shown interest in it.
SWIFT aims to demonstrate how its network can ease connectivity challenges between digital platforms, which remain a major barrier to broader sector adoption. The company highlighted that the trials will focus on streamlining connections between disparate digital systems, often referred to as “digital islands,” which hinder the seamless use of digital assets.
Tom Zschach, SWIFT’s Chief Innovation Officer, emphasized the importance of integrating both digital and traditional assets, stating:
“As new forms of value emerge, our intention is to continue offering our community the ability to seamlessly make and track transactions of all kinds of assets – using the same secure and resilient infrastructure that is integral to their operations today.”
To support these efforts, SWIFT plans to enhance its infrastructure, developing an advanced system capable of managing digital asset and currency transactions across various networks. This follows the company’s previous work in linking public and private blockchains, as well as its efforts to connect Central Bank Digital Currencies (CBDCs) and integrate other digital assets.
Already, the Hong Kong Monetary Authority (HKMA) and Banque de France are collaborating with SWIFT in preparation for next year’s trials. They are exploring SWIFT’s capabilities in foreign exchange experiments as part of the European Central Bank’s initiative to advance new technologies for wholesale payments.
SWIFT is also examining how its interlinking capabilities could connect emerging bank-led networks, like the US Regulated Settlement Network, to traditional financial systems.
Additionally, the company has joined Project Agora, a Bank for International Settlements-led initiative. This project focuses on integrating tokenized commercial bank deposits and tokenized wholesale CBDCs on a unified platform.
3Yuga Labs announced that the U.S. Securities and Exchange Commission (SEC) has closed its investigation into the company. The NFT firm shared the update...
