🏛Change of course for Bitcoin ETFs? US banks put pressure!
🏛Change of course for Bitcoin ETFs? US banks put pressure!
Welcome to the Daily Tribune Saturday, February 17, 2024 ☕️
Hello Cointribe! 🚀
Today is Saturday, February 17, 2024 and like every day from Tuesday to Saturday, we summarize the news of the last 24 hours that you shouldn't miss!
But first…
✍️ Cartoon of the day:
A quick look at the market…
🌡️ Temperature:
Rainy 🌧️
24-hour crypto summary ! ⏱️
🛡️ Bitcoin and Ethereum: Impenetrable Fortresses according to Coin Metrics
In a recent study published by Coin Metrics, the focus is on the robustness of Bitcoin and Ethereum in the face of attacks and their near-invincibility. This analysis introduces a new metric, the "Total Cost of Attack" (TCA), which takes into account various factors such as hardware, electricity, bandwidth, and storage required to orchestrate an attack. According to this study, an offensive against Bitcoin would require an investment of approximately $20 billion and the acquisition of 7 million ASIC mining platforms. For Ethereum, the cost would be $15 billion, requiring the purchase of 2.5 million graphics cards, a quantity that is difficult to access in the current market.
The study also delves into Ethereum's protection against attacks, particularly through the use of Lido validators, where an attempt at an attack would cost over $34 billion and require over six months of preparation. The acquisition of more than 8 million ETH on the market would lead to a significant increase in the price of the cryptocurrency, not to mention the management of over 200 nodes and associated costs. The resistance of the Ethereum community would also play a crucial role in defending against such attacks. Coin Metrics concludes that these leading cryptocurrencies are now well armed against attacks, thereby promoting their widespread adoption.
Coin Metrics' recent study on the security of Bitcoin and Ethereum reveals a crucial dimension of blockchain: economic security. By highlighting the prohibitive cost of attacks, this analysis underscores the evolution of blockchain towards a virtually impenetrable global financial infrastructure, where security no longer relies solely on technology but also on insurmountable economic barriers. This paradigm strengthens the thesis that Bitcoin and Ethereum are not just digital assets, but pillars of a new global financial system, where decentralization and economic security play a central role in protection against attacks and manipulation.
🚀 Uniswap v4: The next DeFi revolution in progress
The Uniswap Foundation recently unveiled the final details of Uniswap version 4, marking a crucial step in the evolution of decentralized exchanges. Scheduled for the third quarter of 2024, this update closely follows the deployment of Ethereum's "Dencun" upgrade, which introduced significant improvements, notably EIP-1153. This improvement proposal allows Uniswap to fine-tune their smart contracts to support more complex features, thus promising a considerable reduction in transaction costs through temporary asset storage and seamless integration of new features into liquidity pools.
The Uniswap v4 roadmap unfolds in three distinct phases: code freeze and testing, audits and deployment on the testnet, and finally, official launch on the Ethereum Mainnet. This methodical approach aims to ensure that version 4 is the most rigorously audited code on Ethereum, thereby minimizing risks in a sector where security is paramount. Users can expect significantly reduced transaction fees and the introduction of "hooks" extension points that will enrich liquidity pools with new features, opening the way to undiscovered DeFi applications. With Uniswap v4, the Foundation aims to propel decentralized finance towards new horizons, promising a historic update for the crypto ecosystem.
The announcement of Uniswap v4, with its post-Dencun improvements and the introduction of features such as temporary storage and hooks, marks a significant evolution in the DeFi space. These innovations could not only reduce transaction costs, but also open the door to new types of decentralized financial services, strengthening the interoperability and flexibility of DeFi protocols.
🧩 Bitcoin: The puzzle of an inexplicable rise
Bitcoin continues to fascinate and puzzle the financial world with its recent rally, defying traditional expectations and usual correlations with other economic indicators. Despite a significant rise in the US dollar and Treasury bond yields, bitcoin has seen its price soar, reaching over $52,000 after a increase of more than 35% since January 23, 2024. This trend sharply contrasts with the historically observed negative correlation between bitcoin and the US dollar, where generally, the strength of the dollar leads to a decrease in the price of bitcoin, and vice versa. This atypical situation raises questions about the underlying dynamics that could explain this resilience and growth of bitcoin in the face of adverse economic factors.
Experts are searching for explanations in various external factors, including the increased demand for bitcoin in regions facing economic crises, such as China and Nigeria, where bitcoin is seen as a hedge against inflation. Additionally, the recent introduction of ETFs in the US market may have also contributed to this rise. Technically, bitcoin has passed key resistance levels, with indicators suggesting a possible continuation of the uptrend. However, experts' opinions on the immediate future of bitcoin vary, with some predicting a short-term correction before another rise, while others anticipate a direct continuation of the ascent.
Rather than simply viewing it as a 'store of value' or 'digital gold,' this dynamic could indicate that bitcoin is becoming a separate asset class, with its own dynamics and decoupling from traditional financial markets.
🏦 US banks' call to the SEC: Towards a new era for Bitcoin ETFs?
A group of US banks recently took the initiative to address a letter to the SEC chair, Gary Gensler, expressing their wish to review the current regulation of Bitcoin ETFs. This coalition, including institutions such as the Bank Policy Institute, the American Bankers Association, and the Securities Industry and Financial Markets Association, highlight the constraints imposed by current capital and reserve requirements. These constraints limit their ability to offer custody services for Bitcoin ETFs, a role they already perform for the majority of other exchange-traded products (ETPs). The letter emphasizes the risks for investors and the financial system if regulated banks cannot provide custody services for Bitcoin ETFs, thus pushing investors towards less secure providers.
In response to these concerns, the coalition has proposed specific reforms, including revising the definition of cryptocurrencies in Staff Accounting Bulletin 121 (SAB 121) to exclude traditional financial assets registered or transferred on blockchain networks. This modification would allow banks to be exempt from asset accounting requirements while retaining disclosure obligations, thus facilitating their involvement in certain cryptocurrency-related activities in a transparent manner. These proposals aim to balance the necessary transparency for investors with the integration of banks into the digital asset ecosystem. The industry is now awaiting the SEC's response, with the hope that these changes could not only transform Bitcoin ETF regulation but also have a broader impact on cryptocurrency regulation in the United States.
The initiative of US banks to seek regulatory revision of Bitcoin ETFs from the SEC reflects a paradigm shift in traditional finance. This move indicates not only a recognition of the value and legitimacy of cryptocurrencies in the global financial system, but also a willingness to integrate these assets into conventional regulatory and operational frameworks.
Crypto of the day: The Graph (GRT)
The Graph is a crucial innovation in the blockchain ecosystem, acting as an indexing protocol to efficiently organize and make data from various blockchains accessible. Its added value lies in its ability to facilitate the development of decentralized applications (dApps) by enabling fast and precise queries on blockchain data. By simplifying access to on-chain data, The Graph supports interoperability and efficiency of decentralized applications, making the blockchain ecosystem more accessible and usable for developers and end users.
The native cryptocurrency of The Graph, GRT, is primarily used to incentivize indexers, curators, and delegators participating in the ecosystem. GRT has been distributed through a public sale, team and partner allocations, as well as network rewards. GRT holders benefit from several advantages, including the ability to participate in protocol governance, delegate tokens to secure the network, and earn rewards for their contributions to the ecosystem. GRT is essential for the decentralized operation and security of The Graph, enabling efficient management of blockchain data on a large scale.
Recent performance
Current price: 0.18793072815855724 USD (to be converted to EUR)
Percentage increase/decrease: -4.56% over the past 24 hours
Market capitalization: 1,769,757,100.4050937 USD (to be converted to EUR)
Rank on CoinMarketCap: 49
Web3 Social Networks: The decentralized future of online communication
Web3 social networks, embodying the new generation of communication platforms, promise to radically transform our online interaction. By leveraging blockchain technology, these networks aim to redefine data ownership, community governance, and transparency, marking a significant evolution from the current centralized models dominated by GAFAM (Google, Apple, Facebook, Amazon, Microsoft).
Foundations of Web3 Social Networks
Web3 social networks depart from the traditional centralized model to embrace a decentralized structure, offering a new approach to online communication based on transparency, security, and user autonomy.
Technology and protocols
Web3 social networks are built on two main pillars: blockchain and decentralized communication protocols. The blockchain provides an immutable and transparent database, ensuring the security and permanence of interactions and shared content. Protocols, such as SMTP for emails, enable direct exchanges between users without intermediaries, fostering more free and open communication.
Advantages of decentralization
Decentralization brings several key advantages. Firstly, it puts users back in control of their data, unlike Web2 models where centralized platforms exploit this information for commercial purposes. Secondly, it ensures greater network resilience, with each blockchain node contributing to the stability and security of the whole. Finally, the inherent transparency of the blockchain allows for increased verification and trust between users.
Examples of Web3 Social Networks
The emergence of Web3 social networks offers innovative alternatives to traditional platforms, focusing on decentralization and fair reward for content creators.
Innovative platforms
Among the emerging Web3 social networks are initiatives such as Mastodon, a decentralized social network that offers an alternative to Twitter, allowing users to manage their own servers or join existing communities. Another example is Steemit, a blogging and social networking platform that rewards users with its own cryptocurrency for publishing and curating content.
Differentiation and added value
These platforms distinguish themselves by their approach to content governance and monetization. On Steemit, for example, the distribution of rewards is determined by the community itself, through a weighted voting system based on token holdings. This mechanism encourages the creation of quality content and active community participation, while ensuring fair compensation for contributors.
Challenges and Perspectives
Despite their promises, Web3 social networks face several challenges to achieve mass adoption and realize their full potential as a viable alternative to centralized platforms.
Barriers to Adoption
Despite their promises, Web3 social networks face major challenges. Technological complexity and accessibility issues remain significant obstacles to mainstream adoption. In addition, content moderation in a decentralized environment raises ethical and practical questions, requiring innovative solutions to preserve safe and respectful spaces.
The future of social networks
The future of Web3 social networks will depend on their ability to provide a compelling user experience while addressing scalability and governance issues. The success of these platforms will require close collaboration between developers, users, and regulators to create a balanced ecosystem that respects freedom of expression while protecting against abuse.
In conclusion, Web3 social networks represent an ambitious and promising vision for the future of online communication. By focusing on decentralization, transparency, and user control, they offer a viable alternative to current centralized models. However, their long-term success will depend on their ability to overcome technical and social challenges, paving the way for a new and more democratic era of online interaction.
