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Cryptocurrencies And Decentralized Finance – Speech – Eurasia Review

My remarks today will focus on the risks and opportunities presented by crypto assets in an overall context of central banking in a post-Covid world. And with the volatile crypto market continuing to make headlines these days, it makes sense to focus on some of the risks of decentralized finance, or “DeFi,” which can be amplified by the volatility. To supplement the discussion, it will be useful to include a brief recap of the recent collapse of the stablecoin TerraUSD, which provides a useful example of the underlying risks of DeFi.

Cryptocurrencies carry with them a number of specific risks, such as market risks, liquidity risks, and cyber risks. Each of these can also apply to DeFi, and I will discuss each in turn. However, DeFi also presents significant opportunities. Without the need for a central entity and the accompanying labor and operational costs, DeFi has the potential to improve financial intermediation by enhancing efficiency and stability. These positive effects could also materialize through the increased competition brought on as DeFi providers enter markets traditionally occupied by conventional financial institutions. 

What are the risks?

In general, digital assets are like the traditional ones that came before them in that they are subject to market risks, where the asset may appreciate or depreciate in value depending on the prevailing conditions in the market. When it comes to DeFi, market risks reflect a heavy reliance on crypto collateral. And the high volatility of crypto asset prices can often lead to frequent (forced) liquidation of DeFi lending. Interestingly, the volume of liquidation increases not only when the crypto price drops but also when it increases sharply. Collateral shortages can occur either when the price of collateral is decreasing or when the value of borrowing is increasing.

The recent spike in liquidation was due to the collapse of TerraUSD, which affected its DeFi lending platform, known as Anchor. In May of this year, total liquidation was around $1.4 billion, but $1.3 billion of this came from Anchor. Compared to May 2021—where we witnessed over $700 million in liquidation—in this most recent round in May 2022, liquidation from other platforms was much smaller, as outstanding debt also collapsed.

Turning now to liquidity risks, these tend to arise due to the high concentration of liquidity providers in any given segment of the market. Indeed, only a handful of accounts make up nearly half of the total liquidity of DeFi platforms. 

Borrowers from DeFi platforms can repay the debt at any time. However, borrowers must always meet the collateral requirements. Suppose at any time a borrower’s collateral requirement falls below the required threshold as a result of adverse price movements. In that case, liquidation can be triggered by a liquidator who repays the debt and acquires the collateral in exchange for rewards—the liquidation bonus.

Finally, cyber risks, and in particular cyberattacks, are a critical risk for DeFi. The value of stolen crypto assets by cyberattacks increased substantially in 2021. The total value stolen in DeFi-related cyberattacks went from less than $100 million per quarter in 2020 to over $900 million in just the third quarter alone in 2021. And in most cases, over 30 percent of deposits were lost entirely—either because they were stolen by the attack or as a result of depositor withdrawals. 

These attacks undermine the platform’s reputation and induce a massive amount of deposit withdrawals, which can trigger a liquidity shortage on the platform. Taken to the extreme, the effects of a serious attack can be so severe so as to shut down a platform.

New opportunities

Although DeFi has many risks, it also brings some opportunities. Chief among these, DeFi can potentially reduce costs of financial intermediation by bypassing and shortcutting the intermediation chain. 

The left panel of the chart compares the estimated marginal costs of DeFi platforms and traditional financial institutions. As you can clearly see, the marginal cost of DeFi is much lower than the other banks and nonbanks in both advanced and emerging market economies, meaning DeFi is cost-efficient in lending. The low marginal costs incurred by the DeFi platforms are due to their automated and unregulated operation. Unlike traditional financial institutions, DeFi platforms do not bear labor and operational costs, because all aspects of the lending process are already automated using algorithms and interest rate models. 

However, this efficiency is still subject to high vulnerabilities. As depicted in the left panel, the gray areas are margins. The margins of DeFi are very small compared to the others. DeFi charges substantially lower margins compared to the traditional financial institutions, offering favorable prices to borrowers and high deposit rates to depositors, so that they can attract borrowers and depositors, while keeping their margins low. This is in part possible because DeFi doesn’t have to maintain regulatory buffers. But such low margins also raise concerns about under-pricing risks. 

The right panel of the chart assesses margins against risk exposures. The estimated (average) expected losses of DeFi platforms are compared with those of banks. This depiction suggests that, given the same risk exposure, the DeFi margins are too low. Or, the other way round, DeFi is significantly underpricing their risks. 

paper by Igor Makarov and Antoinette Schoar on cryptocurrencies and DeFi suggests these lower marginal costs could be offset by higher upfront costs. As they state in the paper, given smart contracts do not allow for ex-postrenegotiation or cancelation, the contract must be completed ex-ante. It therefore requires higher upfront costs of negotiating and specifying the precise terms of an agreement in all possible states of the world.

The collapse of TerraUSD (UST)

The aforementioned risks and vulnerabilities were proven when the third-largest stablecoin TerraUSD (UST) collapsed on May 9. Let me briefly explain what happened during the collapse and its effect on the market. 

UST is an algorithm-stablecoin pegged to the US dollar. Algorithm-based stablecoins attempt to maintain a stable value via protocols that provide for the increase or decrease of the supply of the stablecoins in response to changes in demand. 

However, unlike other cash or short-term asset-backed stablecoins, UST is designed to maintain its peg through arbitrage trading between UST and its sister crypto asset, LUNA, both of which are built on Terra blockchain. The protocol guarantees users the ability to trade 1 UST for $1 worth of LUNA regardless of the value of either token. The left panel of the chart depicts the nature of this relationship. When the value of 1 UST is higher than 1 US dollar, the algorithm burns $1 of LUNA and mints 1 UST, increasing the UST supply. In contrast, when the value of 1 UST is lower than $1, the UST is burned, and LUNA is minted to decrease UST supply.

If demand for UST rises and its price rises above $1 (1UST > $1), LUNA holders can bank a risk-free profit by swapping $1 of LUNA to create one UST token. Then the returned LUNA is burnt. If demand is low for UST and the price falls below $1 (1UST < $1), UST holders can exchange their UST tokens at a ratio of 1:1 for LUNA, which is worth more because of their scarcity. Then the returned UST is burnt.

The mechanism requires stable and consistent demand for LUNA and UST.

Terraform Labs, the entity running the Terra project, envisaged its plans for both crypto and real-world use cases: payment, lending, exchanges, and so on. One example is Anchor, a DeFi lending protocol, where users can deposit UST and/or borrow UST by pledging LUNA as collateral.

Anchor attracted UST deposits with the promise of 20 percent return and held close to 75 percent of UST before the fall. These unsustainably high returns were subsidized by the Luna Foundation Guard, which is an entity backstopping the Terra ecosystem by providing liquidity in case of a market crash, holding crypto assets—for example, Bitcoin, Avalanche, or others—as reserves.

In the end, the pegging mechanism, as well as interventions by the developers, failed to defend the peg. As you can see from the right panel of the chart, UST traded at around $0.1–0.2 as of May 18, 2022, and now UST is not traded in the most major exchanges.

The collapse of UST was triggered by large withdrawals of UST from both crypto exchanges and the Anchor protocol. It is unclear why and who initiated the withdrawal, but the amount of the withdrawal was large enough to significantly de-peg the UST from 1 US dollar. 

As the large withdrawals occurred, the peg stabilization mechanism kicked in (as intended) by increasing the supply of LUNA, but it put large downward pressure on LUNA’s price. In turn, the sudden plunge in LUNA’s value depleted the collateral value in Anchor, triggering the simultaneous liquidation of LUNA. UST holders, losing confidence in the peg, sold UST in a panic, and a “death spiral” collapsed the Terra system. Total value locked—that is, the value of user funds deposited in a DeFi protocol—of Anchor and other DeFi platforms in Terra blockchain dropped in parallel.

Spillovers

The collapse of UST affected not only the Terra ecosystem but also other DeFi platforms and other crypto assets. In response to the collapse of Terra ecosystem, the Luna Foundation Guard began to release its reserves to bring UST back to its 1 US dollar peg. 

As shown in the left panel, the massive inflow of BTC to the market dragged down Bitcoin prices, aggravating the sell-off in crypto markets. The incident underscored the market, liquidity, and concentration risks in the market, dealing a confidence blow to the viability and stability of some crypto projects. 

The failure in the Terra ecosystem caused ripple effects to the entire crypto market and weighed on risk sentiment. The massive liquidation and withdrawal from Anchor wiped out its liquidity pool almost entirely in the first three days since the onset of this event. 

The right panel shows many of the other DeFi platforms also experienced large withdrawals, as already noted. 

Policy recommendations 

The interconnectedness among DeFi, stablecoins, and traditional financial institutions is growing. As the concerns related to crypto assets are increasing, policymakers should be proactive in their actions in order to prevent negative spillover effects in financial markets. 

DeFi poses unique challenges to regulators. It is difficult to regulate anonymous entities without a centralized governance body. Compounding this, in many countries, the legal environment remains uncertain as lawmakers have yet to adequate address DeFi in regulatory legislation. 

To address legal uncertainties, regulators should prepare regulatory surveillance and globally consistent regulatory frameworks. As a first step, a more indirect approach would be to address regulatory gaps in the overall crypto ecosystem. As DeFi has no centralized body, the other centralized entities in the crypto ecosystem that have enabled the development of DeFi could be the focus of regulation. For example, stablecoin issuers could be the main regulatory target, given the importance of stablecoins to DeFi. Discussion is ongoing in international standard-setting bodies—such as the Basel Committee on Banking Supervision, the Committee on Payments and Market Infrastructures, and the International Organization of Securities Commissions—regarding the regulatory framework on stablecoin issues.

The second step is to regulate key functions within DeFi directly. This approach should take the form of collaboration between regulators and private sector. Authorities should also encourage DeFi platforms to adopt robust governance and establish self-regulatory organizations. Transparent and credible governance structure can be a natural entry point for regulators.

Closing the current regulatory gaps would help to ensure that DeFi risks currently at play are minimized, while still allowing borrowers to reap the benefits these decentralized financial services have to offer.

Bank for International Settlements 21st Annual Conference

Tobias Adrian, IMF Financial Counsellor and Director of the Monetary and Capital Markets Department


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Ticketmaster Teams With Dapper Labs’ Flow Blockchain For Live Event NFTs

Tickets have been associated with NFTs but have been largely untapped from some of the major conglomerates in the ticketing business to date. Ticketmaster could be looking to really get in the mix, however, with a renewed effort this week; Ticketmaster and Dapper Labs, creators and operators of the Flow blockchain, announced a partnership to spur growth in live event NFTs.

Ticketing is often cited among NFT advocates as one of the top potential use cases among NFTs beyond jpegs. Can ticketing unlock the next level of utility? A dominant powerhouse like Ticketmaster will be as strong as an advocate as humanly possible in the category. Let’s take a look at what we know from the newly budded partnership.

Ticketmaster’s Approach: How Dapper Can Help Innovate

Ticketmaster, which is owned by live event leader Live Nation, is showing more major strides into pursuing NFT engagement with this latest Dapper Labs partnership. To date, Ticketmaster has utilized Flow for a one-time digital asset airdrop for Super Bowl ticket holders, and has also explored the space with Polygon (MATIC) for an NFT earlier last NFL season. Elsewhere, emerging platforms have sought to challenge the Ticketmaster stranglehold, exploring the likes of blockchain-powered dynamic tickets, royalty-included tickets (that can put secondary sales profits back in the hands of the artist, team or promoter), and more.

The press release cites a desire to pursue “digital keepsakes – that can be shared online or activated to access unique loyalty rewards, VIP engagement opportunities and more.” This suggests a more ‘digital collectible’ approach, that many hope will help spur a broader ticketing approach, too.

Dapper Labs Flow blockchain (FLOW) has been onboarding a variety of unique properties and brands in sports and entertainment. | Source: FLOW-USD on TradingView.com

In A State Of ‘Flow’

The partnership is another notch on the belt for Dapper Labs, who continues it’s tear of top-tier partners across sports and entertainment. Dapper Labs made it’s way to multi-billion dollar valuation on the back of it’s flagship NFT marketplace product, Top Shot. It has since expanded beyond just the NBA & WNBA partnership, and taken it’s case study to other major leagues across some of the biggest sports, including the UFC, NFL, and La Liga.

Expansion into non-sport ticketing NFTs is a natural next step for Dapper, and offers a major step forward for it’s Flow product to prove it’s ability to handle another level of new volume and a new echelon of utility.

Featured image from Pixabay, Charts from TradingView.com

The writer of this content is not associated or affiliated with any of the parties mentioned in this article. This is not financial advice.

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Bitcoin Mining Execs Make Serious Bank Versus Other Industries

  • VanEck found Bitcoin mining companies reward their executives far more than the US’ largest companies
  • Riot Blockchain’s shareholders voted against an advisory vote on executive compensation in July

A recent shareholder vote to reject a major Riot Blockchain advisory vote on executive compensation hints at a potentially high-risk trend across the bitcoin mining industry.

Riot’s shareholders, in a rustic example of TradFi (traditional finance) governance, are allowed to vote on various decisions related to how the bitcoin mining company is run.

An 8-K filing shows Riot’s annual general meeting held on July 27 saw stockholders approve a number of proposals: electing a new director in Hubert Marleau; ratification of independent auditor Marcum LLP; and approval of an amendment to the 2019 equity incentive plan. 

But shareholders didn’t agree with the board’s unanimous recommendation urging them to vote in favor of a “say-on-pay” proposal, noted VanEck analysts, which would’ve paid out more than $90 million to five Riot executives.

CEO Jason Les and executive chairman Benjamin Yi were slated to receive about $21 million each. Even the lowest paid executive, general counsel William Jackman, was in line for a $13 million remuneration. Meanwhile, the annual bonuses were left blank, suggesting payments down the line.

The motion was designed to retain talent and ensure the achievement of long-term strategic goals. 

VanEck’s head of digital assets research Matthew Sigel and product analyst Naomi Zimmermann then decided to zoom out from Riot and check compensation at other major mining firms.

The analysts found bitcoin miners collectively paid “enormous” awards to named executive officers (NEOs), relative to the energy and IT industries and companies listed in the Russell 3000. The analysts also described Riot’s and its competitors’ compensation habits as “risky.”

The IT industry counted median total direct compensation of $2.2 million in 2022, according to VanEck. Riot other crypto mining companies paid out median compensation of $10.8 million — 390% more than the IT sector.

Image source: VanEck

“These more excessive executive compensation practices (amongst RIOT and its peers) might lead to pressure on peer companies in the digital assets industry to provide similarly large awards, in the absence of shareholder pushback,” VanEck’s analysts wrote.

“Seeing eight-to-nine figure sums for the leaders of firms that have yet to make a profit may be discomforting in any industry.” Blockworks has reached out to Riot for comment.

VanEck expects increased awareness of the environmental impact of bitcoin mining to draw attention to executive compensatory standards for the industry and other governance matters.

Riot, which has a market capitalization of over $1 billion, counts Vanguard, Blackrock, Morgan Stanley and Mirae Asset Global Investments among its top institutional holders.

The miner’s shares have plunged nearly 70% so far this year, and are down about 4% in the last month to $7.04 per share, data from TradingView shows.


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  • Blockworks

    Reporter

    Shalini is a crypto reporter from Bangalore, India who covers developments in the market, regulation, market structure, and advice from institutional experts. Prior to Blockworks, she worked as a markets reporter at Insider and a correspondent at Reuters News. She holds some bitcoin and ether. Reach her at [email protected]


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Best and worst performing cryptocurrencies as of 1 Sep 2022

Bitcoin is changing hands at US $20,160 after the world’s biggest and best-known cryptocurrency went up 1.3% overnight. Ether , the coin linked to the ethereum blockchain network, is trading around US $1,570.

Among Top 10 big caps, Polygon (MATIC) is the best performer up 2.3% in 24 hours.

Top 10 free-floating cryptocurrencies by market capitalisation over the past 24 hour period:

Crypto USD 24H Cap
Bitcoin (BTC) $20,160 1.3% $386B
Ethereum (ETH) $1,570 1.4% $191B
Binance Coin (BNB) $280 -0.9% $45.2B
Ripple (XRP) $0.33 0.4% $16.4B
Cardano (ADA) $0.45 -0.3% $15.3B
Solana (SOL) $31.9 0.5% $11.2B
Dogecoin (DOGE) $0.06 -0.1% $8.2B
Polkadot (DOT) $7.09 0.5% $7.9B
Polygon (MATIC) $0.8 2.3% $7.3B
HEX (HEX) $0.04 -2.8% $7B

Meanwhile, some cryptocurrencies below have differed strongly from the market trend on the volatility index.

Out of the relatively known digital coins, here are Top 10 cryptos that are doing better than the market over the day:

Crypto USD 24H Cap
(ARNX) $0.012 29450.7% $0.00025B
SwarmCity (SWT) $0.049 106.2% $0.00042B
Dentacoin (DCN) $2.0E-6 17.3% $0.0012B
Jobchain (JOB) $0.00028 16.1% $0.0028B
Verge (XVG) $0.0034 15.5% $0.06B
(CHZ-ECD) $0.22 9.3% $1.3B
Hydro (HYDRO) $0.0042 8.2% $0.00034B
UNUS SED LEO (LEO) $5.81 7.7% $5.5B
NEXO (NEXO) $1.1 7.5% $0.6B
Terra LUNA (LUNA) $1.83 6% $0.23B

10 underperforming cryptocurrencies over the past 24 hour period:

Crypto USD 24H Cap
Bread (BRD) $0.0045 -8.9% $0.0004B
SONM (SNM) $0.25 -7.5% $0.011B
Viberate (VIB) $0.019 -6.3% $0.0038B
DigixDAO (DGD) $198 -4.3% $0.015B
CryptoSoul (SOUL) $0.25 -4.3% $0.027B
iExecRLC (RLC) $1.16 -3.9% $0.09B
HEX (HEX) $0.04 -2.8% $7B
Compound (COMP) $46.9 -2.6% $0.34B
Dash (DASH) $45 -2.3% $0.49B
Maker (MKR) $774 -2.2% $0.8B

Risk Warning: Cryptocurrency is a unregulated virtual notoriously volatile asset with a high level of risk.  Any news, opinions, research, data, or other information contained within this website is provided for news reporting purposes as general market commentary and does not constitute investment or trading advice. 

/Public Release. This material from the originating organization/author(s) may be of a point-in-time nature, edited for clarity, style and length. The views and opinions expressed are those of the author(s). View in full here.


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Can Web3.0 Generate A SIX TRILLION DOLLAR Industry? What Does The Future Hold For Blockchain?

Just because the cryptocurrency is based on blockchain and it is the only popular thing right now, most people think, Web3.0 is equal to crypto absurdity and as the crypto market failed to make up to its initial promises, the common opinion is that Web3.0 hit a dead end. But in reality, crypto is just one part of Web3.0 and blockchain, a lot of other things are operated on the blockchain using Web3.0.

What actually is Web3.0?

Web 3.0 is the next thing concerned with the evolution of the Internet., Web 3.0 is built on blockchain technologies and encapsulates the shift away from centralized architecture and embraces distributed applications and systems that are open, transparent, and secure.

Decentralization of the systems is the biggest benefit that is initially and most crucial benefit of Web3.0.  It allows users to interact with data through artificial intelligence and machine learning and allows the system a hybrid of the Semantic Web and AI. This can immensely improve the AI industry and more and more realistic dimensions of AI can be reached.

How Much Can Web3.0 Grow?

According to many pieces of research, by the year 2025 Web3.0 will be adopted by every industry including food supply, medicine, agriculture to aircraft, war equipment, and automobile and everyone would like to tokenize their assets in order to protect them in many ways.

Aarti Dhapte, senior research analyst at Market Research Future said in an interview that;

“Blockchain has been a proven technology that ensured the security of the crypto and NFTs to the next level — now, it is ready to ultimately transform the next generation of web technologies, Web3 blockchain will completely transform the existing conventional processes of the different sectors.”

The benefits that blockchain can bring with itself are attractive. It can improve customer adoption by being easily accessible to anyone and its speed far exceeds that of traditional centralized operations it provides all these factors and can also be very cheap at the same time. The cybersecurity sector also suggests that these decentralized networks are safer, because, in order to breach a blockchain operation, an attacker must synchronize multiple attacks at once. The blockchain is also being integrated with IoT for logistics, supply chains, and factory line operations, attracting the industrial sector.

What Problems Can Web3.0 Face?

The blockchain has been criticized for its massive use of energy. Bitcoin is estimated to use 707 kilowatt-hours of electricity per transaction. While this consumption is significantly greater than other digital and centralized transactions, the crypto-energy problem has become a global concern.

Another challenge with no immediate cure is blockchain regulation. The global legal landscape for blockchain is complex, diverse, and often confusing or completely nonexistent. Around 40 countries have either completely banned or restricted the use of cryptocurrency, including China, Egypt, Qatar, Kuwait, and Vietnam.

In this regard, Aarti Dhapte said;

“This ban will not have much effect on the Web3.0 blockchain market developments since other major countries are promoting and actively supporting the upcoming Web3.0 era,”

Read More: How Pakistan is Participating in Web3.0




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The Off-Chain Bitcoin Bull Market – Bitcoin Magazine

This is an opinion editorial by Zack Voell, a bitcoin mining and markets researcher.

One of the more interesting and controversial developments in the Bitcoin ecosystem is off-chain use cases. Many of these applications are not technologically identical, but they all nonetheless expand the list of potential use cases apart from the Bitcoin base layer for a given bitcoin holder. And some of these products are completely outside the Bitcoin economy altogether.

This article takes no position on the unique merits of any particular off-chain use for Bitcoin, but it summarizes some growth trends and supply data showing growth and adoption across Layer 2 protocols, bitcoin-backed tokens and more. Using bitcoin in these ways is not suited for every investor, but anyone who cares about the broad scope of Bitcoin adopters should take note of these trends to better understand where and how bitcoin are moving.




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DPS Cyber Security Crypto Recovery Firm Successfully Recovers Over $8 Million of Stolen Cryptocurrency – Cryptocurrency News Today


DPS Cyber Security Crypto Recovery Firm Successfully Recovers Over $8 Million of Stolen Cryptocurrency – Cryptocurrency News Today – EIN Presswire


















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Bitcoin Hash Rate Touches the Highest Level in 2 Months

Bitcoin mining has always been one of the hottest topics in the crypto ecosystem because of the energy usage in its mining operations. While BTC’s mining difficulty has decreased in the past few months, its hash rate has climbed.

According to the data published by Blockchain.com, the total Bitcoin hash rate is currently hovering near 225 Exahash, compared to an all-time high of 231 Exahash in June this year. Since October 2021, BTC mining revenues have decreased by more than 60%.

After witnessing a minor price recovery in the first half of August 2022, Bitcoin’s price has dropped by almost 6% in the last seven days. BTC’s market dominance has also plunged in the past week. According to Coinmarketcap, BTC now accounts for nearly 40% of the total market cap of digital currencies.

Sustainable Mining

Amid criticism regarding the usage of electricity in BTC mining, several leading crypto miners are exploring different ways of clean mining.

Commenting on the recent developments across the Bitcoin network, Marcus Sotiriou, an Analyst at GlobalBlock, said: “Whilst Bitcoin hovers around $20,000, Bitcoin mining is becoming more and more sustainable. It has been reported that around half a dozen Colorado-based gas and oil companies are teaming up with bitcoin miners in order to implement gas-to-Bitcoin flare mitigation solutions. This is after Colorado banned gas flaring, venting and the release of raw gas into the atmosphere in November 2020.”

“In addition, crypto farms in Russia are being supplied with electricity generated by small power plants, which burn associated petroleum gas (APG). APG is a by-product of the extraction of black gold. This does not cost anything for oil companies, as they are required to dispose of APG anyway, but now they can earn extra revenue from APG. The ability for oil and gas companies to power Bitcoin miners with by-products of their operations, consequently leading to more revenue whilst benefiting the environment, is a great advert for Bitcoin’s future,” Sotiriou explained.

Bitcoin mining has always been one of the hottest topics in the crypto ecosystem because of the energy usage in its mining operations. While BTC’s mining difficulty has decreased in the past few months, its hash rate has climbed.

According to the data published by Blockchain.com, the total Bitcoin hash rate is currently hovering near 225 Exahash, compared to an all-time high of 231 Exahash in June this year. Since October 2021, BTC mining revenues have decreased by more than 60%.

After witnessing a minor price recovery in the first half of August 2022, Bitcoin’s price has dropped by almost 6% in the last seven days. BTC’s market dominance has also plunged in the past week. According to Coinmarketcap, BTC now accounts for nearly 40% of the total market cap of digital currencies.

Sustainable Mining

Amid criticism regarding the usage of electricity in BTC mining, several leading crypto miners are exploring different ways of clean mining.

Commenting on the recent developments across the Bitcoin network, Marcus Sotiriou, an Analyst at GlobalBlock, said: “Whilst Bitcoin hovers around $20,000, Bitcoin mining is becoming more and more sustainable. It has been reported that around half a dozen Colorado-based gas and oil companies are teaming up with bitcoin miners in order to implement gas-to-Bitcoin flare mitigation solutions. This is after Colorado banned gas flaring, venting and the release of raw gas into the atmosphere in November 2020.”

“In addition, crypto farms in Russia are being supplied with electricity generated by small power plants, which burn associated petroleum gas (APG). APG is a by-product of the extraction of black gold. This does not cost anything for oil companies, as they are required to dispose of APG anyway, but now they can earn extra revenue from APG. The ability for oil and gas companies to power Bitcoin miners with by-products of their operations, consequently leading to more revenue whilst benefiting the environment, is a great advert for Bitcoin’s future,” Sotiriou explained.


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Ticketmaster adopts Dapper Labs Flow blockchain to tie NFTs to event tickets

Event ticketing company Ticketmaster Entertainment Inc. announced today that it’s choosing Dapper Labs Inc.’s Flow blockchain to connect nonfungible tokens to tickets as part of a pilot program for select events.

Nonfungible tokens are a type of crypto asset linked to blockchain technology that represents the ownership of a virtual item, such as artwork, music and video files.

Using the Flow blockchain, Ticketmaster will be able to mint NFTs for ticket holders before, during or after events that will provide “proof of attendance” for ticket holders. They can then be traded and sold in the future as they will retain value, like real-world memorabilia, but they could also be used to unlock premium virtual content related to the event and possibly discounts for future tickets or merchandise.

Dapper Labs is best known for NBA Top Shot, a marketplace where sports fans can buy, sell and trade NFTs featuring basketball video clips. Launched in 2020, NBA Top Shot also launched on the Flow blockchain and has grown to over 1.5 million users and 20 million marketplace transactions and $1 billion in total volume traded.

Ticketmaster and Dapper Labs launched the pilot NFT program six months ago, in that time the platform has already minted more than 5 million NFTs for its event organizer clients. The events have included the Apollo Theater, Sebastian Maniscalco, The Black Crowes and Gavin DeGraw.

The two companies began working together during Super Bowl LVI, when Ticketmaster minted 70,000 virtual commemorative tickets NFT. Each virtual ticket sold for $52 and resembled collectible playing cards inspired by each of the league’s 32 teams. The cards themselves were not tickets but instead acted as virtual event memorabilia for the wider public.

With the partnership, Ticketmaster has created a digital wallet and marketplace for users to store their commemorative NFTs. Using the wallet and a gallery, users will be able to view and display their tickets – ideally in the sort of way that people who have gone to concerts and events would show off posters or T-shirts from attendance to their friends.

Photo: Pixabay

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