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Modern Economic Nonsense — Web3 continues building despite the bear market

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The current bear market has been very hard on many projects, especially those that are not meant for a quick success. As a result, many projects have decided to cease development and wait until the market turns back. Some have even gone as far as closing down entirely. However, not all of them have given up or accepted the market conditions. Some projects have continued working despite the bear market by focusing on their user base instead of investors or funds. These include decentralized apps (DApps), which might be an exception in questionable markets but shows what can be done if you focus on users instead of money. Let’s take a look at some more examples of DApps that continue building despite the bear market:

Crypto Identification

Crypto Identification is a decentralized app that allows users to collect and prove ERC-721 non-fungible tokens (NFTs). It is one of the most successful NFT dapps of this kind and the one that will experience the biggest growth in coming years. However, the growth slowed down in 2018, and by January 2019, the number of active users dropped to only about 300,000 through NFT usages. This shows that the popularity of NFTs is not something that can last forever. The number of people interested in collecting and trading unique tokens is still great, but it can’t match the numbers of 2017, when CryptoKitties was one of the top dapps on both iOS and Android. The popularity of this kind of dapps is also impacted by regulations and the current bear market has shown that the craze for unique tokens ends just as quickly as it begins.

0x Protocol

The 0x Protocol is an open-source decentralized exchange that allows users to exchange Ethereum ERC-20 tokens without requiring a central organization or service. In the current bear market, 0x may have been one of the few projects that grew steadily. It is currently ranked 34th on the list of most active tokens on the Ethereum blockchain, with a transaction volume of more than $20 million in the last 30 days. The protocol is powered by off-chain orderbooks, allowing it to avoid high gas prices and improve overall transaction speeds. In its short history, 0x has successfully united major decentralized exchanges (DExs) like Coinbase Pro and Gemini. Combined, these platforms have the liquidity to handle tens of millions of transactions per day.

Decentralized Apps

There are a lot of attempts to create decentralized apps. Among them, there are those that focus on a single service and do not expand their functionality. Several examples of such DApps are 0x Protocol, Augur, and CryptoKitties. Other DApps are more ambitious. Status Network is one of those. It is a decentralized application that implements a peer-to-peer protocol for communication between decentralized applications. Users can use Status to communicate with other decentralized apps and to make decentralized apps communicate with each other. The protocol uses a combination of the Ethereum blockchain and IPFS to store data. This makes it possible to create a decentralized network that is decentralised and secure.

Status Network

Like 0x Protocol and Augur, Status Network has been built to decentralize existing services. It is a decentralized messenger and decentralized app platform that allows users to communicate with each other and access their decentralized apps. The messenger portion of the Status Network is similar to WhatsApp, Google Hangouts, etc. The difference is that it is built on decentralized technologies. The protocol uses Ethereum blockchain and IPFS to store data. This makes it possible to create a decentralized network that is decentralized and secure. The user interface of the messenger is available on both Status Network and other popular mobile apps, including Android, iOS, macOS, Firefox, and Sails. The Status Network is a decentralized application platform for decentralized apps that uses Ethereum and IPFS for data storage. The Status Network is a decentralized application platform for decentralized apps that uses Ethereum and IPFS for data storage.

Conclusion

The current bear market has been hard on many projects, especially those that are not meant for a quick success. However, some continue building despite the bear market by focusing on their users instead of investors or funds. These include decentralized apps (DApps) like CryptoKitties, which might an exception in questionable markets but shows what can be done if you focus on users instead of money. 

Reminder: I am not your financial advisor. 

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Crypto Research

The Future of Machine War II

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In late 2021, I wrote an article about A.I. vs. Blockchain. I realized it was closer than I expected.

https://medium.com/@xuanling11/artificial-intelligence-vs-blockchain-the-future-of-machine-war-b685d208ba20?sk=874af90c7acbe857fa004c0ebe0d5e28

Web2 is leading a future of technological centralism. 

The way we see the world in ancient is what we saw became what we believed. Later, the enlightenment process helped humans realize what they had seen was disguised by the nature principle. Once we tested our assumption and received accurate results, we thought we had mastered the nature principles. Yet, we did not make the world better than we thought we could. 

We are living in a world in which companies know more than you than yourself. Companies can likely tell you what you should believe without letting you know. 

The secret weapon that companies like Google invented is A.I. or Artificial Intelligence. 

If A.I. can think like a person, it can easily replace you! Since companies got all your data, you freely offer them by using their free services, and they can replace you one day without you realizing it. 

Without all conspiracy theories behind what Google may or will secretly develop, A.I. reaching consciousness is … impossible.

If it does, Google has successfully made a human – dumb!

The most advanced A.I. – Tesla Autopilot Program cannot distinguish objects between humans and other moving objects during driving.  

Using technology makes people dumber than they think because it takes away your consciousness – the ability to think uniquely!

Blockchain is the future of decentralization.

We need a peer-to-peer system to regain consciousness and break the chain from Web2. 

It gives individuals the power to rethink information.

Think about today’s media; all information is filtered to offer readers without any surprise. News is data that Web2 selected specifically for you to read. 

We need a decentralized system so that you can receive unfiltered information and gives you a surprise that sparks ideas of imagination.  

Web2 is afraid of the blockchain because they are too big to fail. 

 They mimic the blockchain by creating a centralized node system – social media network. 

It is a net growing outward through a single point. Only the problem is that connection is facilitated by technology. And the biggest failure is such technology has a single point of failure problem. 

And they cannot escape the law of economics – the law of diminishing. So we will see Web2 grow slower due to the law of diminishing that they require more data with few increments of advancement through A.I. without any breakthrough because A.I. is a deterministic system that works with a lack of randomness. 

In Web2, they assumed everyone was stupid, and they offered solutions to everyone.

In Web3, everyone is good and should anticipate solving a problem together.

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Photo by Aideal Hwa on Unsplash

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Crypto Research

Financial sanction to mixers

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Have you heard about financial sanctions from the US on virtual currency? At least, I have not yet. But the US Department of Treasury has issued sanctions on two crypto services: Blender.io and Tornado Cash.

To clarify, the US sanctions on tools but not target specific entities or groups of people.

So why bother to sanction something that the government probably won’t be able to sanction in the first place?

What is a mixer?

A cryptocurrency mixer, sometimes referred to as a tumbler, is a tool for money laundering. The sole purpose of the invention is to make transactions untraceable.

How to mix?

Even crypto is pseudo-anonymous, but it is traceable through your wallet address. A mixer is a black box service to filter your traceable wallet address into the untraceable wallet address.

How to wash your money clean in the traditional way?

https://dimensiongrc.com/the-stages-of-money-laundering/

The assumption is you will not get caught at each stage, and then you place your dirty money in a bank through companies and use the funds to purchase legal goods like houses or luxury goods.

There are mature regulations and rules to stop you from putting your dirty money into banks.

Digtial money landury

https://www.eurospider.com/en/know-how/compliance/211-what-is-a-cryptocurrency-mixer

A Crypto mixer or tumbler is a service to pool dirty digital currency in their favor and redistribute it into designated wallet addresses or addresses randomly generated. 

It is a challenge to stop transactions because there is no entry point for law enforcement to stop at each stage. 

https://home.treasury.gov/news/press-releases/jy0768

Ultimate Mixer

Tornado Cash is the king of the mixer. Unfortunately, there is just no way to trace transactions anymore. It is a smart contract with zk-SNARKs (zero-knowledge proofs) that does not require revealing a wallet address during transactions and ghostly distributed funds without leaving any traces.

This tool is the ultimate weapon that the government has to shut down, or there is no way to prevent transactions.

In Conclusion

Let’s change the future – legally. 

If you enjoy reading my articles, buy me a coffee here.

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Crypto Research

Why there is not crypto banking exist

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We have always heard about cryptocurrencies, crypto exchange, banking, and trading platforms, but we do not really grasp the idea of crypto banking. Crypto banking is a contradicted idea. If crypto is to replace banks and give users full control of digital money, why do you put your crypto into the bank? The new research paper argued that there are risks for banks to adopt crypto, but they did it anyway.

Banks want crypto

Cryptocurrency has a rough road at the beginning and continues to experience a bumpy road ahead. The institutional investors were watching its performance. In early 2017, institutional investors had opportunities to adopt crypto, but they found out the return of the investments was less than traditional financial assets. Regulations were not a concern for some individual institutional owners, but banks were conservative at the time. As a result, some investors adopted it in early 2018 than banks did. Then suddenly, the crypto market took off in 2020, leaving many banks to regret their decision in 2017. Many banks set up their digital investment group to rush into the market and increase prices. Of course, many of their investment positions are instead of shadow positions. It is unclear how much they have been invested in and what vehicles they took to invest in cryptos.

Crypto Exchange

Crypto exchange is a bank-like platform for crypto. Banks offered a place to purchase fiat currency. Crypto exchange did the same duty as traditional banks did. Since there was a gap between the crypto and banks, the crypto exchange took responsibility and offered crypto services. The crypto exchange took off after 2020, and they left banks in the dust. Then, crypto winter came in early 2022, and banks again hesitated to enter the crypto and started denouncing crypto usage, particularly in the Defi area. But interestingly, they tried to find ways to get into crypto without being directly exposed to cryptocurrencies—hint: through hedge funds.

How much banks exposure to crypto

We do not know how much banks have been exposed to crypto. We learned that the big Wall Street players were exposed to the services of the digital asset through State Street of their $41.7 trillion assets. Some have been exposed due to Luna’s collapse and 3AC bankruptcy. But again, no specific dollar amount was provided. 

Survivors

Since the crypto winter, institutional investors have been cautious about crypto exposure. However, crypto exchanges are the winner again. They are exposed to crypto and take risks more than banks do. As a result, they likely will weather the uncertainty. Furthermore, there is no need for crypto banking to handle your crypto assets since many such services will not survive long in the crypto environment. 

Crypto is resilience

Despite its fluctuating price and unsecured assets, crypto is resilient to phase out any bad business ideas and bad actors in the economy who wants to or try to dominate the market but who transfers risks to users to believe they are the one who should take responsibility for their carelessness. Unfortunately, those business models will not survive long.

If you enjoy reading my articles, buy me a coffee here.

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