Issue 7 Sep 2021
INDUSTRY
REVIEW
COMPLIANCE THE BIG REGULATION QUESTION: FINANCIAL REGULATION MEETS SELF-REGULATION. An interview with
the Regulator that goes pear shaped has ramifications, this month‘s Blockchain Industry Review gives tips on how to nail it.
GUIDELINE
REGULATOR SELF-REGULATION
CONDUCT
BROUGHT TO YOU BY THE YOUR GATEWAY TO BLOCKCHAIN AND DIGITAL CURRENCY USE CASES AND APPLICATIONS
TABLE OF CONTENTS B L O C K C H A I N
I N D U S T R Y
R E V I E W
24 Symmetric -the newest DeFi challenger
4
by symmetric.finance
The regulator wants to meet you…
28
Maximising your performance when meeting the
How NFTs can expand the DeFi
regulator by Daniel Lawlor
ecosystem
at Aquest.ie
by Philipp Pieper, co-founder of Swarm Markets
12 Directors beware! the civil
32
penalties for ransomware
Proof of authority: the consensus
by Charlotte Hill, Senior Associate
mechanism for government
Pennigtons Manches Cooper LLP
blockchain applications
and president of the Junior
by IOV42
London Solicitor Litigation Association
36
16
Making money by investing in ESG
Crypto recoveries are real and can
by Stefan Rust
break ransomware cycles by Matthew Green IP, Tech, Media and Commercial Lawyer at Brandsmiths
20 DeFi- the big gas problem by Cent.Finance
goals using blockchain
THE FOUNDER´S NOTE
WELCOME TO BLOCKCHAIN INDUSTRY REVIEW
Welcome back to Blockchain
ware and how this can break ran-
Industry Review after a sum-
somware cycles.
mer break.
We look at the ongoing big gas
Regulation in crypto and DeFi
problem in DeFi as well as a DeFi
is a hot – and meetings with
challenger in the form of a decen-
the regulator – or lack thereof
tralised exchange, and question
due to the ongoing delays and
how NFTs can expand the DeFi
limbo faced by many com-
ecosystem.
panies in the space- is a key concern. Many crypto and DeFi companies are wanting to get regulated, but don’t know how best to go about it, others aren’t sure if regulation is indeed the best way to go. Sep-
Lastly, we look at proof of authority, the consensus mechanism being used by governments and touch on investing in ESG goals using blockchain. We hope you enjoy this issue!
tember’s issue brings a focus on meeting with the regulator- what they look out for and some best practice tips from an ex-regulator. We also look at the risks- and potential penalties – to directors of ransomware and recovering crypto in instances of ransom-
Top: Founder- Erica Stanford Bottom: Editor-in-chief Jilian Godsil Designer: Mauricio Cano.
Erica Stanford Founder of the Crypto Curry Club
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THE REGULATOR WANTS TO MEET YOU...
MAXIMISING YOUR PERFORMANCE WH
by the Crypto Curry Club
>>>>
005
tever the specific context, your
to act as a regulated firm.
best chance of achieving the
You only get one chance
optimal outcome for you and
to make a first impression,
your firm is to be fully prepa-
as they say, and once this
There are a number of scenari-
red for the meeting. And con-
flag has been raised, you
os where you will need to meet
ducting a thorough, cold-sweat
can expect your authorisa-
with the Regulator.
Someti-
inducing mock interview is per-
tion process to be lengthier
mes, it is a ‘tea and biscuits’-
haps the most important part of
and costlier than it might
type meeting where you get to
your preparation.
otherwise have been. And
by Daniel Lawlor at Aquest.ie
meet and greet with the Regulator in a relaxed and open atmosphere.
This happens,
for example, when you are deciding on which jurisdiction to establish in and are meeting various Regulators as part of the selection process.
mera - but keep in mind, the closer that you can replicate
the Regulator and its regulated firms) and stress. These meetings could be in the context of an application for authorisation, a fitness and probity interview, a thematic review or part of the Regulator’s programme of scheduled supervisory engagements with the firm. Wha-
2. Regulators assign risk ratings to regulated firms
and use different mini-
ter it will be for you to (i) achie-
mum supervisory enga-
ve the outcome you want and with the Regulator.
be a healthy tension between
teed.
the actual experience, the bet-
the Regulator form part of a se-
tension (there should always
authorised) is not guaran-
third party, or in front of a ca-
(ii) build a healthy relationship
and bring with them a level of
of the process (i.e. getting
conducted in-house, with a
However, most meetings with rious supervisory engagement
the successful conclusion
Your mock interview can be
gement models depending on the risk rating assigned. But remember
An interview with the Regula-
these are ‘minimum’ en-
tor that goes pear shaped has
gagement models - the
ramifications for both you and
Regulator’s supervisory
your firm such as:
teams always have the
1. If you are meeting the Re-
option to increase the
gulator as part of your application for authorisation, a poor meeting will raise a flag with the Regulator that you are ill prepared for the authorisation process and, by extension, not ready
HEN MEETING THE REGULATO
frequency of their enga-
gement with a firm (by
R
(AND HOW TO MANAGE THAT STRESS LIKE A PRO)
holding more meetings, for example). And this is
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exactly what they will do if you perform poor-
of documents and/or prepare a presentation in
ly in the meeting and create a doubt in the
advance of the meeting. This correspondence
Regulator’s mind regarding how well your
will form the basis for your meeting with the Re-
firm is being run. In that instance, the Regulator will want to keep a closer eye on you.
gulator. •
You, and whoever is helping you prepare for
3. Ultimately, meetings with the Regulator are ab-
your meeting, needs to critically review the do-
out building trust - the Regulator wants to look
cumentation from a Regulator’s perspective.
into the whites of your eyes and be assured that
And by ‘critically review’ we do not mean looking
you know what you are doing and running your
at the positives - we mean look for the gaps,
firm properly and in the best interests of your
the inconsistencies and the risks in your firm be-
customers. If you cannot convince the Regu-
cause this is exactly what the Regulator will be
lator of that, you are setting your firm up for a
doing.
difficult relationship with the Regulator where every ask you have will be challenged by the Regulator as it will need constant convincing and reassurance by you. The Regulator is meeting you because they… 1. Want to see if your business case for see-
king authorisation stacks up, whether you have the resources and commitment to bu-
ild a firm that can cope with the mountain of
regulation it will be subject to and whether you are serious about undertaking an authorisation process;
2. Are trying to identify standard industry prac-
tice and are looking for consistency ans-
wers, narratives and approaches across a number of firms;
3. Have identified one or more risks within your
firm and they want to understand how you
are monitoring, managing and mitigating these before they issue you with a Risk Mitigation Programme.
•
Having identified these weaknesses, you then need to understand what your firm is doing to address them.
You and your meeting prep. team will want to prepare a set of quality, tough questions you can expect to be asked by the Regulator. You will want to include questions pertaining to the focus of the meeting based on your document review. You should also cover broader matters that are topical in the industry. These could be things like: board meeting performance, culture, diversity, constructive challenge and the last challenge you had with the board and how it was addressed. When we help firms prepare for meetings with the Regulator, our document review will typically throw up 8 to 10 pages of relevant questions that the interviewee might be asked. So anything less than 7 pages (typed, single spaced) isn’t really good enough. Finally, don’t let the stress of meeting the Regulator trip you up.
Human Behaviour Specialist, Shannon Eastman
Your preparation begins with your correspondence
(She is also a fellow here at Crypto Curry Club) has
with the Regulator
facilitated, in partnership with Aquest.ie, dozens of
•
The Regulator will ask you to submit a range
individuals and regulated financial services firms meeting the Regulator over the years.
by the Crypto Curry Club
>>>>
Her guide to maintaining a clear
your physical being in ways that
head and delivering thoughtful
are (mostly) unconscious to you.
answers follows for you to use in
Your brain registers the discom-
your own preparations when mee-
fort after the body experiences
ting the Regulator.
stress. So, concealing discom-
“Let’s start with the bottom line you have a distinct state that you
fort is more difficult to implement. 2. Your words and your body lan-
show up in when you’re calm,
guage will either support each
comfortable and conversing on
other, or contradict each other.
subjects that feel good. In con-
If someone knows what they are
trast, you have a distinct presence
looking for, you will be hard pres-
that appears when you’re feeling;
sed to conceal the conflict.
stress, discomfort and a sense of being unprepared for an important
3. The two states you will likely
show up in during that inter-
situation.”
view - for the purpose of prepa-
When you are sitting in front of
ring to meet the Regulator, we’ll
the Regulator’s supervisory team
focus on just two obvious states
(watching your every move), they
that show up during these situa-
will easily observe if you present
tions.
as ‘Calm and Thoughtful’ or ‘ ‘Anxious and Agitated’.
•
State one: when you’re calm, your pitch, tone, speed of spea-
While how you present will most li-
king and choice of words will pre-
kely be as a result of how well you
sent accordingly. Your body will
handle stressful situations, the su-
be relaxed, you will make eye
pervisory team will come to their
contact, you will appear confi-
own conclusions. So it is in your
dent.
best interests to learn to manage stress like a pro. 3 things to know to manage stress like a pro
1. Be aware of the simple version of the science: when
your 5 senses perceive stress (most of which occurs outside of conscious awareness), your body responds by releasing stress hormones that animate
•
State two: when you’re anxious, your pitch, tone, speed of
speaking and choice of words will sharply contrast. Your eyes will do all sorts, but not necessarily make natural eye contact, so you will appear agitated. This is less rocket science, and far more about being attentive to those you are interacting with.
007
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S
EYES
Usua
mome
When your eyes move to the right
deflection,
you are accessing your creative center,
answer a point
what you’re telling us is being created
over share for the
right there in real time.
that the original questi
mon moment that trigge
When your eyes move to the left,
silences are used in c
you are accessing your memories. What
unnerved by silen
you are telling us is from a memory you are currently recalling.
fill it with
ne
THROAT Dry mouth, itchy throat, hard swallows -
THE BODY TELLS ITS
all signs of discomfort in the body.
OWN STORY, REGARDLESS OF WHAT YOU SAY
Clear, considered speaking with a body posture that reinforces our sense of con-
These are a few of the everyday tells VOICE we come across during our Mock Interviews with individuals and Tone, Pitch, Speed of speaking will have firms about to meet the a distinct set of characteristics when you Regulator. Consider this know you‘re bluffing, making things up, your cheat sheet.
fidence in what we are saying.
DI LA
When we do
to be swap
a
or unprepared for the question.
“I did not
wi Tone, Pitch, Speed of speaking will have
“Do you
a distinct set of characteristics when you
relations
are well prepared and know the answer.
your C
DEFLECTION This happens a lot in our Mock Interview experiences; a question is asked, and the answer provided is a deflection to side step the answer.
go
re
by the Crypto Curry Club
>>>>
OVER SHARING
ally an over sharing
HANDS
ent will accompany a When you don’t want to
Fidgeting, touching their neck
ted question, sometimes we
touching their face tend to be signs of
purpose of covering up the fact
anxiety or discomfort in the body.
tion wasn’t answered. Another com-
ers an over share is silence. Deliberate
conversations as most people feel
nce, and as such, fill the need to
h content they wouldn’t
Relaxed hands or purposeful hands (eg, taking notes during a meeting) suggest
MOUTH
calm and focussed participation in a
Tight lips - the upper
ecessarily reveal
situation
and lower lip firmly pressed
to the
against each other typically appears
Regulator.
when what you have just said, isn’t in fact what you believe in. Bottom lip goes up tends to appear after a statement you have no confidence in. Relaxed,. Natural Smile and an intrinsic choreography with the eyes is
ISTANCING ANGUAGE
usually accompanied with a relaxed body relaxed breathing.
Putting something between you and
o this with words, it tends
the person talking to you unconsciously
pping a familiar term with
protects you and makes you feels safer during that
a formal term.
moment of feeling ‘exposed’. Rocking, or knee boun-
t have sexual relations
cing is mostly an unconscious response from the
ith that woman.”
body to process a sensation of stress or anxiety.
u have a good working
ship with John Smith,
CEO? “I have a very
ood professional
elationship with the CEO!”
BODY
posture, dropped shoulders,
DISTANCING BODY LANGUAGE
All language that likely conflicts with the words being used in that moment.
“Do you have a good working relationship with John Smith, your CEO?” Both hands fold in front of the chest, body leans back in the chair - and the answer is - “Yes I have
a very good professional relationship with the CEO’!” The arms folded in front of you, and the body moving back away from the person posing the question, are unconsciously done to protect you from a question you are not happy about.” An obvious moment where the body and the words are in conflict with each other.
009
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meeting the Regulator Any time soon
The easy wins for you to have in place to manage your stress, include: 1. Bring water and sip it regularly as prevention for dry throat and hard swallows. 2. Keep your hands in your lap, or if appropriate, take notes. 3. Prepare a set of answers to use for the questions you don’t know. Here’s three good ones for you to take and make your own: For example: a. Great questions - would it be ok if I consulted my colleagues later today and forwarded that answer via email? (Write your action down so you remember to follow through) b. I don’t have those details to hand, would I be able to share my answer to that after this meeting by email? (Write your action down so you remember to follow through) c. I don’t know - but I can find out. Shall I include that answer in the email I am sending over to your after this meeting? (write your action down so you remember to follow through) 4. Do at least 1 mock interview as part of your preparation. a. Have your colleagues mimic the experience for an authentic mock interview- have at least 2 of your colleagues take the role of Regulator if this is a simple meeting. Have 4 colleagues comprise the Regulator’s supervisory team if this is a more serious meeting. b. Have your colleagues prepare a set of questions based on the correspondence you received from
by the Crypto Curry Club
>>>>
0011
the Regulator and the documents the Regulator have asked for. Aquest typically prepares 8 to 10 typed, single spaced pages of questions when we are invited in to perform the Mock Interview with you. So anything less than 7 pages (typed, single spaced) isn’t really good enough and risks not covering everything c. For every question you stumble over, take the next day to go and sufficiently prepare. Aquest.ie Regulatory Resources for Regulated Firms Danel Lawlor is an Ex-Regulator, Funds Lawyer and Managing Director of Aquest.ie daniel.lawlor@aquest.ie ShannonEastman.com Growth Matters for Business Owners & Professionals Shannon Eastman is a Growth Advisor, Human Behaviour Specialist, Communications Expert and Influence Architect shannon@shannoneastman.com Telegram +353 861 422688 Together, they offer authentic Mock Interviews for financial services firms meeting the Regulator.
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DIRECTORS BEWARE! THE CIVIL PENALTIES FOR RANSOMWARE soms were not paid, are a just small handful of those recently
BY >> CHARLOTTE HILL SENIOR ASSOCIATE PENNINGTONS MANCHES COOPER LLP AND PRESIDENT OF THE JUNIOR LONDON SOLICITORS LITIGATION ASSOCIATION
reported. Such an attack can be highly damaging, with sensitive data being published on the dark web or more widely distributed if a high ransom is not paid, reputations are being damaged or destroyed and, in circumstances where healthcare organisations such as the NHS have been attacked, they can (and have) put lives at risk. It may surprise some to learn that cyber-security is a board
level responsibility - directors could fall foul of the individual duties that they personally owe to the company if they do not consider and take reasonable steps to mitigate against potential losses and damage arising from such an attack.
While directors can obtain insurance cover to protect them
and the company against such risks, they will still need to demonstrate that they have taken reasonable steps to pre-
O
PHOTO: CHARLOTTE HILL
ver the past six months or so, you would be hard pressed to have not read or he-
ard about a cyber-attack. Attacks on the Colonial Pipeline in the United States; on Brenntag, a German chemical distribution company operating in over 77 countries; on the Harris Federation Schools, the largest academy trust in the UK where data from 38,000 pupils was stolen; the more recent attack on Kaseya, an US information technology company, over the 4th July weekend; and the two recently reported attacks on barristers chambers in London with threats to publish sensitive client data if ran-
vent a cyber-attack to escape potential liability.
SOME STATISTICS In the UK, the National Cyber Security Centre (the NCSC) has been working hard, along with law enforcement, including the National Crime Agency, and other governmental bodies across the globe, to fight cyber-crime: the NCSC has dealt with over 2,000 significant incidents since its creation in 2016, and has taken down more than 700,000 online scams in the UK in the last year alone; 80,000 of which were discovered from tip offs from the British public through the NCSC’s ‘Suspicious Email Reporting Service’1 . The Information Commissioner’s Office recorded a total of 8,815 data security incidents during 2020/21 and, over the past three years, police forces across England and Wales suffered an average eight breaches a week2 . It is, however, anticipated that hundreds, if not thousands, more attacks have taken place but have not been reported. Many victims of cyber-attacks choose not to report the crime to law enfor-
by the Crypto Curry Club
cement, or to publicise its payment of the demanded ransomware for fear of repeat offending, incrimination from regulators or law enforcement, bad press and/ or the potential withdrawal of cover from its insurer if a ransom is paid or dealt with in the wrong way. That is unsurprising given that the payment of ransomware – usually cryptocurrency - being demanded by the attackers is not illegal in the UK (despite the fact that the payment of a bribe is).
WHAT IS A CYBER-ATTACK?
>>>>
0013
IS PAYMENT OF A RANSOM DEMAND ILLEGAL? It is not currently illegal to pay a ransom demand in the UK which may surprise some considering the payment
of a bribe, which is akin to a ransom payment, is illegal, as is making a payment to terrorists and other prescribed groups. Equally, those falling victim to an attack in the UK
are not required by law to report it, although law enforce-
ment strongly recommend reporting it at the earliest opportunity to seek their assistance and expertise to maximise opportunities and to mitigate the threat.
Conversely, Australia – whose meat operations were impacted following the attack on JBS Foods until they paid a ransom of $11 million in June 2021 - has introduced a Parliamentary Bill
A cyber-attack is typically carried out
seeking to make the reporting of a ransom demand compulsory,
by an unknown third-party gaining ac-
and it has been reported that the Biden Administration in the US
cess to a computer system, server or a
is considering doing the same. While both of these positions are
set of files which are held ransom and
encouraged, the reporting of a ransom demand will only help
threatened to be released to the public
law enforcement to collect information and data about such at-
unless a demand is met. The third party often gains access by sending a fishing email asking for sensitive information (such as bank details) or encouraging the recipient to visit a fake website. In the UK alone, HMRC fishing scams are reported to have grown 87% during the COVID-19 pandemic, surging from 572,029 during 2019/20 to 1,069,522 during 2020/21 . Other ways in which 3
attackers can access systems is by the dispatch of an email which contains a trojan horse - an attachment, or a link for the unsuspecting to click on - which, once downloaded, hides malicious code within legitimate software for the task that the attacker designed it for, often to steal sensitive data or to spy on online activity and learn of passwords / sensitive information etc.
tacks; without the payment of a demand being made illegal,
ransomware demands will almost certainly continue to increase and so directors in particular ought to take steps to protect themselves and their companies from such attacks.
WHY SHOULD DIRECTORS CONCERNTHEMSELVES WITH CYBER-ATTACKS? As explained above, cyber-security is a board level responsibility – directors are likely to be held liable by the company if they fail to consider how best to mitigate against potential cyber-attacks. As will be known from just the handful of examples set out
above, when the existence of an attack enters the public domain, it can damage a company’s reputation (and stock value, if listed) and may have widespread repercussions
on the future trading of the company . Add to that the fact
that attacks take a lot of time, effort and costs to seek to
resolve, often requiring the assistance of a specialist incident response company (IRC), lawyers and other profes-
sionals, which adds to the layer of cost required in addition
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to the demand of a ransom pay-
ment, it is clear why this tangible
risk ought to be considered by the board of a company.
By way of demonstration, the Harris Federation Schools es-
timated that, in addition to the ransom of nearly £3m that was
demanded, it suffered around £500k of costs over the course of three months to deal with the at-
tack while the education of their
pupils was impacted – they could not
access
school
buildings
which were electronically con-
trolled, the CCTV was down, and registers were inaccessible from
day one. They were required to hire the services of a foreign IRC
(all UK companies were too busy to deal with this attack) to assess
the level of penetration and, in
parallel, work with others to understand the extent of the data stolen, contain it, seek to recover
it, eradicate the virus, monitor
the system, remediate them and
negotiate the ransom payment demanded. The impact of a cy-
ber-attack is far reaching and so steps must be taken to deter a cyber-attack and to prepare for one should the worst-case scenario come true.
by the Crypto Curry Club
HOW TO ESCAPE LIABILITY Given the increasing number of reported cyber-attacks of late, companies, directors and all key stakeholders ought to be on high alert and ready to act as soon as possible to provide sufficient protection against cyber-attacks and breaches.
>>>>
0015
WHAT NEXT? The situation is far from straight-forward. Some
sympathy must be offered to the victims who choose not to report or publicise the attack – it
can be seen how knowledge of an attack could fuel the risk in further attacks. By way of exam-
ple, on learning of the attack, criminals will
Companies ought to consider obtaining suf-
know that certain companies have sufficient
worst-case scenario and to fund (or indemnify)
will know that, if they breach that companies’
the attack and to remediate the systems to en-
Further, if a company has sufficient insurance, it
as soon as possible. They also ought to prepa-
more relaxed with regard to its cyber security
it on a regular basis (noting the results in doing
tack those systems assuming they will be easier
ficient insurance to protect them against the
insurance cover to meet any such demand and
the urgent response team required to deal with
systems, they are almost guaranteed a pay-out.
sure that the company is operat-ing as normal
could be considered that that company may be
re a detailed disaster recov-ery plan and to test
and so the criminals may be encouraged to at-
so by way of board minutes) so that they are
to penetrate than others.
ready to act out a doomsday scenario in real
life should the (hopefully unlikely) need arise.
On a more practical level, directors should ensure that their IT teams or directors responsi-
ble for their IT / cyber matters are implementing suffi-cient security measures with, at the very
least, regular backups of all data on, ideally, an off-site location; two-factor authentication; the regular changing of passwords; offering their employees cyber-security training etc.
That being said, while the reporting of an attack
remains voluntary, and the payment of a demand legal, it is no surprise that cyber-attacks
are increasing in monumental percentages on an almost daily basis. These criminal gangs prosper by the anonymity of the attacks and the payments being made: the cryptocurrency often used to pay the demands will no doubt be used for other criminal activities which will continue to fuel the dark web and black markets if it is not cleaned and taken
If a director can demonstrate that he/she acted
out as fiat in another, more favourable jurisdiction.
nal advice in this regard and acting upon such
ment of a ransom illegal, the trend in cyber-attacks
the Companies Act 2006 and other duties which
taken now to prevent, prepare for and know how to
reasonably by, for example, seeking professio-
Until reporting becomes compulsory and the pay-
advice, it is likely that he/she will not fall foul of
will continue to grow and so swift action must be
he/she owe to the company.
remediate any attack should the worst happen.
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CRYPTO RECOVERIES ARE REAL BREAK RANSOMWARE CYCLES by Matthew Green IP, Tech, Media and Commercial Lawyer at Brandsmiths
R
ecent newsreels are
be de-anonymised, even before
littered with stories of
those assets can be frozen and
ransomware
attacks,
returned to the victim. Not only
payment of cryptocu-
has this been done, but the pro-
rrencies to reobtain access to sys-
cess has been approved in and
tems and data, and gestured de-
by the UK Courts- see our press
bates on whether these ransoms
release and our High Court judge-
should be paid.
ment - setting an established path
But one fundamental aspect in this debate is missing- the idea of recovering those cryptofunds paid to satisfy the demands. This ultimately deprives the hackers from profiting from their actions and eliminates their raison d’être. It also ensures funds are rightfully returned to the victim. Here the process is driven by the victim to reclaim their assets, rather than law enforcement who chase the bad guys, and do not always have the capabilities or will to recover the assets for the wronged. To many, the road to recovery appears insurmountable. Crypto assets must be traced and located, and the account holders must
for more crypto ransoms to be recovered. So how is this done? THE PROCESS By their design, blockchains allow for assets to be traced, so
monitoring ransoms paid and
their traceable proceeds should be straightforward. Established
leaders like Chainalysis and Elliptic,
through
to
solitary
bedroom detectives, provide tracing services and can map out a ransom’s journey across
blockchains. The key is to un-
derstand what to do with the evidence detailing the wherea-
bouts of the cryptoassets and when to pounce.
by the Crypto Curry Club
>>>>
0017
AND CAN
Criminal enterprises need to cash
out and turn crypto into fiat currency (like pounds, dollars, euros etc.) and this is where the exchanges come in. Exchanges are
the gateway and can assist in both the freezing of funds and the revea-
ling of who owns the account the
funds sit within. They usually play ball with lawyers and investigators for several reasons, to uphold the
integrity of the industry from which they profit, to at least be seen to comply with increasingly relevant
financial regulations which propel them to legitimacy, and because
they do not want to be seen to assist criminals and withhold cri-
minal funds. In short, it is motiva-
ted by PR and financial regulations, both of which are crucial in valida ting the industry as a whole.
The next stage is focused on le-
gal principles, which allow for the freezing of the located assets, or
their traceable proceeds, and to discover the identity of the account holder.
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Until recently, the UK Courts had not recognised
coverage for, and payment of, ransoms in general.
cryptocurrencies as property, which the common
A recent BBC debate on whether ransoms should
law defines as either something capable of being
be paid failed to consider the recovery route, con-
possessed or enforced by an action. Interpreted
tinuing to perpetuate that no third way is available.
narrowly, cryptoassets are neither, given that they
The arguments go that an outright ban on
are virtual, intangible and do not embody a right capable of being enforced. The UK Jurisdictional Task Force’s Statement on Cryptoassets and Smart Contracts sought to widen the definition of property to include cryptoassets, and this approach was then
adopted by the UK High Courts. Now cryptocu-
rrencies can be subject to Court orders, and like any other asset, they can be frozen and seized just like a car, house or cash.
Lawyers can now make an emergency request
to the Courts that those located funds are fro-
zen and that exchanges provide the details of
the individual behind the account. Once given, the victim has a UK Court order preventing any
dissipation of these funds, the exchange is re-
quired to reveal the identity of the person who holds the funds. This person may not be the actual perpetrator who demanded the money
in the first place, but will likely be connected to that wrongdoing. In any event, the priority is the return of the funds. From there, lawyers can handle the recovery of funds in the usual way, which is in principle no diffe rent from the recovery of any asset from around the world. The UK Courts have sought to assist victims and can do so, provided that there is an appropriate link to the UK. THE THIRD WAY Much of the narrative on ransomware payouts is binary and authorities in the UK, France and the US have sought to mandate a strict ban on insurance
ransomware payments could up the ante, as key
utilities are paralysed, the most vulnera-
ble become increasingly targeted with ransom
demands skyrocketing. Conversely, paying ransoms has led to the explosion of organised digital crime and there are now customer friend-
ly call centres guiding victims on the best way to pay ransoms via cryptocurrencies.
One victim of this debate is the insurance mar-
ket and the insurers providing cyber policies. Either they are not allowed to pay ransoms and
their customers are vulnerable to operational meltdown, the destruction of customer trust and collapse in general, or they pay and continue to perpetuate the market for ransomware, itself an expensive enterprise and a PR disaster overall.
By utilising tracing and investigatory reports, the Courts can freeze assets, block accounts
and disclose the identities of the holders of stolen funds. This completely breaks the cycle of hackers profiting from their wrongdoing.
Insurers are then able to fulfil their contractual
obligations to their clients and pay ransoms and then seek to trace and recover those assets, costs of which may be built into their policies.
by the Crypto Curry Club
EXPERTISE IS AVAILABLE The seemingly impossible tasks of de-anonymising the nameless on the blockchain, and the tracing of crypto
assets are anything but. Victims must remember that at some point, cryp-
tocurrencies must be converted into fiat currency or other seizable assets
(could be real estate, or artwork for example), and it is at this moment
that the cryptoassets are vulnerable to attack.
Blockchain technology allows us to trace the funds in a way a £10 cash withdrawal cannot, and there is ex-
pertise available to recover funds, and deprive the criminal enterprises altogether.
It is a matter for professionals to spread the word that cryptofunds are
not only recoverable, but by the very
nature of blockchain technology, they are most traceable asset class out there.
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DEFI- THE BIG GAS PROBLEM The Big Gas Problem DEFI WHAT IS ‘GAS’ AND WHAT ISSUES ARE BTC AND ETH EXPERIENCING? If you were asked to name two assets synonymous
The term gas is synonymous with the Ethere-
with the cryptocurrency market, you’d probably offer
um blockchain, and in simple terms, it refers to
Bitcoin (BTC) and Ethereum (ETH) in response.
the fee (or pricing value) required to successfully
After all, BTC signalled the emergence of a new and trail-blazing form of digital currency and a mar-
process a transaction or execute a smart contract on the network.
ketplace that’s worth in excess of $1.25 trillion,
Historically, high and volatile gas prices have
whereas Ethereum heralded the second generation
been one of the biggest challenges facing
of blockchain technology and the advent of smart
Ethereum, exacerbated by the added complex-
contracts.
ity of on-chain, smart contract transactions.
Herein also lies the core difference between the two assets; as while the former was created as an alternative to foreign currencies and to establish a digital medium of exchange, the latter boasts far greater functionality in the form of smart contract facilitation and the development of decentralised apps (dApps). In short,- Bitcoin is a currency designed for transactions, Ethereum is an infrastructure development tool However, both assets are currently experiencing similar issues with transaction costs, due to rising and unpredictable gas prices (or network fees)
Fundamentally, however, inflated gas prices are caused by increased demand, with network usage having soared exponentially in line with the emergence of decentralised finance (DeFi) applications. Of course, such spikes in demand also translate into higher price points, particularly given the finite supply of crypto assets like BTC and ETH. Remember, miners also prioritise higher value and more complex transactions in order to Maximise their own rewards, but we’ll have a little more on this later in the article.
which is severely impacting network demand and
To put it in context, demand began to spike at
processing speeds.
the beginning of Ethereum’s bull run in early
So, why exactly are fees rising so high, and what’s
November, when Ether’s price initially peaked
the solution for this from the perspective of users?
at $478.40. Shortly afterwards, the average gas
by the Crypto Curry Club
BY
Cent is a mobile wallet designed to make investing in crypto & DeFi simple, easy and segure. To download Cent wallet go to ‘Cent Finance’ in your App store or go to here to find out more
fee soared to $68.30, which represented a record high in the asset’s relatively short history. Gas fees remained relatively high throughout the end of 2020 and continued into Q1 of this year, once again breaking beyond the $50 mark in May as the asset’s price reached an all-time high of $4,382.73. Since this peak, of course, Ethereum has been in the grip of a crypto bear run, with its price having shed more than 50% of its value through Q2. Naturally, this has caused demand and gas fees to fall accordingly, as the crypto market’s cooldown continues unabated. A similar trend also engulfed Bitcoin as the asset embarked on its own bull run last autumn. Initially, the average BTC transaction fee increased by 573% in just 12 days at the beginning of October 2020, creating a 28-month high and a fee in dollar terms of $11.66. This coincided with an initial price rally from $11,200 to $13,800, which built momentum well into 2020 before peaking at $62,926.56 on April 15th, 2021. Around the same time, BTC transaction fees reached an all-time high of $58.718, before once again tumbling in line with the asset’s value and demand towards the end of Q2 Rising Transaction Fees and On-Chain Congestion.
The issue here is clear; while increased transaction fees are indicative of a crypto asset that’s growing in
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Photo by Jordan Whitfield on Unsplash
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Blockchain Industry Review
value, they can also deter users
cope during busier time-frames.
from completing transactions at
So, without being fully able to
certain points in time as the costs rise disproportionately.
tackle the issues of scalability that cause congestion and contribute
At the same time, increased net-
to rising gas fees during periods
work usage can cause subse-
of high demand, the challenge
quent congestion and exacerbate
facing ETH and BTC remains as
underlying scalability issues. This
clear as it is troublesome.
may also trigger delays (espe-
Does the Solution Lie Else-
cially as miners prioritise transactions with inflated prices and total transaction fees), particularly when you consider the further impact of finite block space (limited capacity to process transactions) and the average transaction times on BTC and ETH. In the case of Ethereum, for example, the expected block time is between 10 to 20 seconds, while the network can process as few as 15 transactions per second during the busiest periods. The corresponding numbers for Bitcoin are even more troubling from the perspective of potential fee increases, with the forecast block time on the bitcoin networj being 10 minutes during periods of congestion. This translates into an average processing speed of seven transactions per second, highlighting the wider impact of high gas fees in real-time. To provide further context, the global
payment
system
Visa
currently processes 1,700 transactions per second, while also boasting significant scalability to
where?
Of course, some may argue that the solution lies in the form of Ethereum 2.0, which is an upcoming network update that seeks to address transaction fee issues and scalability directly. Even if this delivers on its promise to increase capacity and successfully process thousands of transactions affordably in a few seconds, there may be more performant blockchains emerging in the form of third-generation networks. Certainly, Ethereum 2.0 is underpinned by a switch from a proof-of-work (PoW) protocol to a proof-of-stake (PoS) alternative, but a handful of third-generation blockchains have already built on this to create their own highly effi-
tial to process more than 50,000 transactions per second while retaining the ability to scale as network usage grows. This is without relying on Layer-2 systems or sharding either, while SOLs’ innovative Proof-of-History (PoH) protocol can also deliver an optimal block time of just 800ms. As a result of this, several new and emerging De-Fi projects have already partnered with Solana ahead of ETH, while this trend is likely to continue at least until the rollout of Ethereum 2.0. Any conversation about newer blockchains would be incomplete without mentioning Celo
(an EVM chain), xDai (a side chain) and Polygon (a layer 2
solution) — since they are all
high quality alternatives and
networks we support through both Cent Finance and Sym-
metric and are commanding
great interest from the blockchain community. Follow Cent For the latest updates you can follow Cent Finance here:
cient architectures. With newer blockchains offering similar levels of competition to Ethereum, the answer to rising gas fees could well lie in exciting new technologies over time. Take Solana (SOL), for example, which currently has the poten-
For transparency: Erica Stanford of Crypto Curry Club is involved in Cent Finance
by the Crypto Curry Club
>>>>
YOUR DEFI CONTROL CENTRE Cent is a mobile wallet designed to make investing in crypto & DeFi simple, easy and segure. To download Cent wallet go to ‘Cent Finance’ in your App store or go to here to find out more
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SYMMETRIC -The Newest DeFi Challenger by symmetric.finance A brief introduction to a new decentralised finance (DeFi) platform called Symmetric What is Symmetric? Symmetric is a decentralised exchange (or DEX) also known as, an Automated Market Maker (AMM) in Decentralised Finance (DeFi). In traditional finance, centralised exchanges use an order book to match buyers and sellers. In contrast,
DeFi’s Automated Market Makers (AMMs) allow for
trades to be executed in an entirely decentralised, transparent and permission-less way. Symmetric is an AMM that enables decentralised exchange of digital assets through the use of liquidity pools on the Celo and xDAI network (Symmetric is also planning launches on other networks). The Problem(s) with DeFi DeFi has grown rapidly over the past couple of ye-
ars, but DeFi platforms, exchanges and applications (dApps) are designed for advanced users and pose the following challenges:
•
Highly volatile and rising transaction costs (gas prices)
•
Introduce new and poorly understood sources of risk (magnified by unclear regula-
•
Threat of ‘rug pulls’ (an increasingly frequent type of exit scam) by anonymous
•
Assume users have an in-depth understanding of crypto & knowledge of DeFi
•
Are usually self serving platforms, rather than benefit all stakeholders
tory guidance)
teams & malicious attacks by hackers
by the Crypto Curry Club
>>>>
•
0025
Predictable, stable & low transaction costs (gas prices), by leveraging blockchain networks such
All of these problems collectively create high
as xDai & Celo
barriers to entry, making DeFi simply inaccessible for most people. This means that users that
•
Reducing uncertainty with its unique ‘risk fund’
which further perpetuates the problems DeFi
•
Being a transparent & community run project
stand to benefit the most are unable to do so,
— with a known & experienced team from the
and crypto were created to tackle. The Solution
Symmetric is built to drive mass adoption of DeFi.
blockchain sector •
nable information to users and seamless con-
With a focus on simplicity, it is designed with newcomers in mind, and removes barriers to entry through:
Focus on education, providing relevant & actionectivity
•
Designed to benefit all stakeholders through the risk fund, the DAO & upcoming launch pad
Symmetric makes DeFi accessible to everyone,
regardless of the size of their portfolio, technical knowledge or risk appetite.
•
lock additional utility (e.g., new launches, index funds, ESG or thematic investing)
In its current state DeFi is both expensive and exclusionary, our mission at Symmetric is to eliminate barriers of entry to DeFi and make it accessible to those who stand to gain the most. We believe financial services are a fundamental right and should be
•
through transparent, permission-less & decentralised systems. We’re working to realise this vision — A new world of finance, of the people, by the people! Unique Selling Points (or key differentiators) compared to alternate DeFi platforms Symmetric is different, because it: •
Has the ability to hold up to 8 tokens in a pool
•
Allows anyone to create a pool, provide liquidity and earn fees
•
Provides added protection, with a separate risk fund
Supports multiple networks (live on Celo & xDai — coming to others!)
•
Has a separate token allocation to grow & engage community
accessible to everyone. We believe DeFi services should reflect our values
Has self-rebalancing and smart pools which un-
•
Is a decentralised autonomous organisation (DAO) governed by stakeholders
Founding Team & Operations The founding team consists of industry veterans from the blockchain space with diverse backgrounds and skill sets (entrepreneurs, developers and business professionals). The founders have previously built and launched a test network for a layer 1 blockchain and a DeFi focused mobile wallet. The founding team will run operations and provide strategic support to the DAO at launch and thereafter, until the token distribution is complete, and the community is large enough to independently
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Blockchain Industry Review
support the development, management
the form of Symmetric governance to-
and growth of the project.
kens.
Additional information about the foun-
Community is invited to contribute
ding team: click here
through the project backlog: click here
Symmetric Token
Token event information can be found
In addition to earning fees, liquidity providers on Symmetric will also be issued additional rewards, in the form of Symmetric governance tokens. Tokens can be used by token holders to vote on proposals to further development of the platform. Further details on Symmetric’s Tokenomics: click here Symmetric DAO Community-run and owned, anyone can create and raise a proposal for token holders to vote on. The Symmetric DAO is hosted on the DAOhaus platform. Additional information about the DAO and governance: click here How to Get Involved In addition to providing liquidity, community members looking for alternate ways to participate can get involved during the early stages of the project by completing predefined deliverables and
here Disclaimer: Symmetric advises all
users and stakeholders to do their
own research before participating
in any swaps or pools. We strongly suggest that users only add or swap
liquidity, that they can afford to lose. The views expressed in this post are not financial advice.
Additional Links All code is open source and available for inspection: click here External security audit report by Quillhash: click here Explore live pools on xDai: click here Live DEX for swaps on xDai: click here Follow Symmetric To join the community and qualify for airdrops you can follow us here:
getting compensated with bounties, in
For transparency: Erica Stanford of Crypto Curry Club is involved in Symmetric Finance
BOOK
AVAILABLE
RS E L L E S K O O B D O O G L L FROM A AND ON AMAZON
click here to pre-order your copy
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Blockchain Industry Review
HOW NFTS CAN EXPAND
THE DEFI ECOSYSTEM universe, providing access to interesting trading pairs and giving asset holders and traders more
autonomy
over
the markets they want to
NFTS TOKEN SALE hit over $100 million
participate in. By Philipp Pieper,
co-founder of Swarm Markets NFTs, or non-fungible tokens, have done more to market the crypto industry to the mass public since bitcoin’s infamous price boom and crash in 2017 and 2018. But NFTs are not new and their use case goes far beyond sky-high valuations for ‘just a JPEG’ We are transitioning to NFTs 2.0. This process of digitization offers a lean route of bringing assets with intrinsic value onto the Blockchain. The more assets we bring on-chain, the more we can expand the DeFi
NFTs 1.0 The NFTs that have dominated media headlines so far are often off-chain deals supported by provenance of the Blockchain. Digital
overtook the DeFi plat-
industry
form, Uniswap, in its
another entry point for
consumption of Ethere-
many into the ecosys-
celebrity-related content
um gas fees.
tem.
has attracted a big group
Phenomenal
art projects like Crypto Punks and Beeple’s first 5000 days as well as
of users to this area of the crypto industry. By July 2021, NFT token sales hit over $100 million according to Decrypt as people found creative ways of interacting with the latest edition of the metaverse. As reported by Coindesk, OpenSea, a marketplace for NFTs,
and
provide
stories
Summer 2020 saw the
of digital art, gifs and
swell of DeFi applica-
JPEGs being sold for
tions and a new catego-
millions of dollars may
ry of crypto emerged. Its
have started to veer the
emergence is capturing
masses off track from
the attention of big insti-
the original use case of
tutions that are viewing
crypto and Blockchain
this area of crypto as a
technology.
However,
necessity. NFTs are no
this trend has also done
different and offer a lens
some brilliant work to
into where the industry
raise awareness of the
is heading.
by the Crypto Curry Club
>>>>
connected with the re-
0029
Since last year, Uniswap has usually commanded the top spot.
al-world asset? The act of creating a digital twin of a real-world asset that resides onchain will give rise to an entire set of industries.
NFTs aren’t new HRD
diamond
certifi-
cates authenticate if a stone is a genuine diamond or not. This type of authentication is the same as the NFT process but the provenance of ownership is stored differently—in terms of NFTs, it is on the Blockchain. The uniqueness of each diamond is written into its certificate in the same way the uniqueness of an NFT is written into smart code. What people often fail to recognise is that the thing or asset that an NFT represents usually resides off-chain; either
Such infrastructure is currently being worked on by two key groups of people. Firstly, those on the user experience side who want to deliver NFT content in a user-friendly way. Secondly, those on
NFTs Over DeFi OPENSEA JUST OVERTOOK UNISWAP ON ETHEREUM USAGE
the legal side are working through a few iterations of how to create a reliable and trustworthy mechanism of creating NFTs. This new infrastructure, once created, can then be easily applied to any type of asset, which can then be used as a building block on the Blockchain.
The motivation to buy
ourselves whether such valuations are right or
wrong, but how different The use case of NFTs is groups apply value to interesting to observe. different types of assets. Some of the eye-watering valuations of these assets may be justified by the people who have paid these prices. Ultimately, celebrity-related
content
means
something to someone. We shouldn’t be asking
So while NFTs are already pointing to value that means something to some, more NFTs will now be pointing to assets that have intrinsic value that now have a way of moving onto the
on a server or it could be a tangible asset like a physical painting or real estate, for example. This opens up questions of attestation and veracity of data. How do you ensure the NFT is really
WEBSIRE: WWW.SWARM.MARKETS
SWARM MARKETS A Unified Exchange For Securities & Crypto. Swarm Markets is the world’s first licensed* high-liquidity DeFi protocol — the convenience and transparency of DeFi with the confidence of financial market compliance.
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Blockchain and becoming tradea-
own shops on Amazon. Why not
ble. Importantly, asset holders will
build their own marketplaces
have true liberation from central-
based on the assets they
ised financial markets because
want to trade? Conse-
NFTs offer them a programmable
quently, this could lead to
entity that they can auction, lend
more autonomy from col-
against and even fractionBlock-
lateral owners in tradea-
chain and becoming tradeable.
ble marketplaces.
Importantly, asset holders will have true liberation from centralised financial markets because NFTs offer them a programmable entity that they can auction, lend against and even fractionalise.
DeFi
platforms
offer
a
self-determined way for NFTs to be traded based on self custody and networked liquidity. It is a way for people with idle assets to do more with their collateral that
Suddenly, what wasn’t possi-
cannot be done in traditional mar-
ble in the real world, presents a
ket infrastructure.
huge amount of opportunities in the DeFi ecosystem. Consumer groups beyond the crypto insiders are getting ready to transact in this way. The gaming community is already a prime example of this where companies like Fortnite reportedly gain much of its revenue from selling skins instead of solely relying on subscription fees.
Liquidity for NFTS As we expect these types of marketplaces and their associated communities to increase in popularity, there is an increasing need for liquidity for such tokens. This is where DeFi and NFTs meet. The non-fungible becomes fungible and needs to be tradeable. People want to build their own platforms - they’re building their
The transparency of the blockchain is a magnitude higher than traditional markets. The appeal for people moving into this space moves beyond just novelty, but the esoteric nature of traditional market infrastructure is exposed by what building blocks on the Blockchain can do.
Hacking trustlestness In the real world, trust hacks trustlessness. There are chains of providers in the centralised world that all have to be regulated and verified in order to execute just one market order. Blockchain collapses the stack into a piece of smart code, building a single source of truth and verifiability, benefiting both sellers and buyers.
However, as more consumers move into the DeFi space, platforms will need to respond to regulatory pressure that demands protection for customers, such as introducing KYC and AML checks as a way to remove counterparty risk. In order for platforms to evolve along regulatory lines, clarity is needed from lawmakers to instill confidence in entrepreneurs. This will reduce risk that any investment made into the space will not be subject to regulatory scrutiny further down the line
YOUR GATEWAY TO BLOCKCHAIN AND DIGITAL CURRENCY USE CASES AND APPLICATIONS
WOULD YOU LIKE TO HAVE YOUR COMPANY HERE? email us to hello@cryptocurryclub.com
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Proof of Authority: The consensus mechanism for government blockchain applications BY: IOV42
Consensus mechanisms are the heart of any de-
gain traction, the limitations of these early consen-
centralised ledger technology (DLT). Leveraging
sus mechanisms began to show.
cryptography and decentralisation, consensus mechanisms dictate the security, performance, and environmental impact of any DLT. The first generation of mechanisms, Proof of Work (PoW) and, later, Proof of Stake (PoS), enabled the meteoric rise of Bitcoin and subsequent cryptocurrencies, sending off revolutionary ripples across our digital society. But as cryptocurrencies continued to
Early Challenges Take the case of Bitcoin and PoW, for example. Nobody in the crypto space needs to be reminded that Bitcoin often faces criticism over its energy-intensive PoW mining process (not to mention this shadow this negative reputation continues to cast across DLT writ large). PoW also poses limitations to a network’s ability to scale. PoS came along as a kind of
by the Crypto Curry Club
>>>>
answer to these issues. But sin-
tic origins of Bitcoin, it might seem
ce PoS relies on a participant’s
odd to imagine literal bureaucrats
given stake in the network, issues
leveraging a technology specifi-
around dubious power dynamics
cally designed to disrupt traditio-
and governance can arise.
nal institutions and bureaucracy.
These types of limitations contributed to blockchain sliding into the trough of disillusionment that many of us experienced firsthand. When it became clear to the market that the first-generation blockchains and their consensus mechanisms weren’t ready for widespread adoption in enterprise
Some of you reading may even think the phrase “blockchain for governments” is an oxymoron, if not downright heresy. Regardless of your opinion, there is no denying that the public sector’s earnest interest in blockchain signals an interesting moment in the history of DLT.
scenarios, belief in blockchain’s
One of the consensus mecha-
potential waned.
nisms that has proven to be parti-
Thankfully, new, evolving, and hybrid approaches to consensus have emerged in the past few years, ushering in a new generation of DLTs — enterprise-grade DLTs accessible to businesses and, more recently, governments. Blockchain for Governments? When you consider the anarchis-
cularly attractive to governments is Proof of Authority (PoA). For example, the European Blockchain
Services
Infrastructure
(EBSI) follows a PoA approach. Proof of Authority in a Nutshell The basic idea behind the Proof of Authority (PoA) model is that
participants need to disclose
0033
their identity in order to participate in the consensus process. This means that the participants, or nodes, that make
up the network are known to each other. Often, the right to
be a so-called “authority” in a PoA network requires some
kind of preliminary authentication. Nodes that are approved
to be part of a PoA network authorise transactions that they
agree are allowed to proceed,
normally using cryptographic signatures instead of energyexpensive PoW mining.
This approach to running a
blockchain network is distinct from
first-generation
chains,
since
block-
participants
need to disclose and verify
their identity. Because of this,
networks that follow a PoA model tend to be made up of a
small number of participants in
comparison to more traditional blockchains like Bitcoin or Et-
hereum, which can have thousands of participants.
Hyperledger BESU, VeChainThor, and our company, iov42 are examples of protocols that use some kind of PoA consensus. PoA Advantages Unlike PoW, PoA doesn’t result
in significant computational resources being expended to re-
ach consensus. This has bene-
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Blockchain Industry Review
fits for the speed, performance,
and energy efficiency of the
network. The limited number of network participants means
the network has a high throughput capacity, which enables
scalability. Furthermore, sin-
ce the participants are known entities who should be equally motivated to maintain the net-
work’s integrity, the network has a high fault tolerance. PoA Drawbacks PoA model necessitates a limited number of pre-authenticated participants. course,
this
approach
wouldn’t make sense for per-
missionless blockchains, which are accessible to anybody. And
since PoA nodes need to be aut-
henticated in some way to join the network, participation is selective. This makes PoA net-
works less decentralised than other more traditional models.
Why PoA Makes Sense for Governments
able to review and approve and, if necessary, remove the node operators that make up their network. This allows for governance, which is much harder to achieve with first-generation blockchains, which tend to be too decentralised, large, and anonymised to enforce any governance structures. throughput capacity of PoA models would also support the scalability needs of governments to deliver secure, high-quality products and services to their constituents. Whether it’s implementing a digital ID framework or using digital product passports for a circular economy, PoA enables the necessary scalability for government infrastructure to enhance existing initiatives and policies and lay the foundation for progress and growth. The energy efficiency of PoA is another key benefit for governments, which have various
Because PoA is built around known identities and reputation, it allows for trustworthiness, accountability,
With PoA, governments would be
The speed, efficiency, and high-
As we mentioned earlier, the
Of
regulations are being followed.
and
transparency
across the network. This is critical for governments and other organizations that need to make sure their processes, rules, and
climate change goals and ener-
gy security plans. Since PoA requires very little computing power, its energy consumption is trivial. This energy efficiency positively influences the scalability of the network, as well.
energy efficiency
Article 7
by the Crypto Curry Club
0035
>>>>
Looking beyond Cryptocurrency with PoA The PoA approach isn’t for everyone; it’s not one that
cryptocurrencies and block-
chain “purists” will be considering anytime soon. But it’s
a different way of leveraging the benefits of DLT for orga-
nisations that need to find the right balance between secu-
rity, transparency, efficiency,
and regulatory compliance. And when organisations like governments
and
enterpri-
ses begin embracing DLT, it drives
forward
widespread
adoption of the technology and catalyses further inno-
vation. This type of buy-in —
particularly from the public sector — is going to be im-
portant to the future of DLT in terms of interoperability, integration, and policy.
Keep an eye out for what’s happening with EBSI in the European Union (EU). This effort to “deploy cross-border blockchain services across Europe as soon as possible” is an excellent encapsulation of what is possible when the public and private sectors work together to drive innovation, improve products and services, and help create a digital society built on trust.
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MAKING MONEY BY INVESTING IN ESG GOALS USING BLOCKCHAIN by
Stefan Rust
The big issues facing the industry are threefold; 1. How do we use this technology to advance
atile value locked into cryptocurrencies tends to skew conversations away from the meaningful.
ESG, environmental social and governance,
Right now, it is hard on the Millennial genera-
projects
tion. Never before have a cohort of young work-
2. How do we attract bright young and driven talent into the market and 3. How do we explain that there are huge financial rewards here - and it is just a question of stitching them together. This is a very different conversation from the current FOMO chatter that arises every time Bitcoin goes on a bull run. And even in the current market dip (‘buy the dip’) the serious and often vol-
ers been more educated but compared to recent generations they own less and owe more. A recent TikTok video by Dan Price sums up the Millennial situation. At the same age Baby Boomers controlled 21% of all wealth, Generation X controlled 9%, but Millennials control less than 5%, of which 2% of that wealth is owned by one person, Mark Zuckerberg. Something has gone wrong with the system and the planet, and that’s not a coincidence, it’s
zo
by the Crypto Curry Club
>>>>
0037
both a symptom and an opportunity. At a recent dinner party I attended, the conversation turned to student debt. In contrast to most European universities where free or sponsored education is available, the average American student exits the halls of learning saddled down with debt the size of a modest home mortgage. The UK is no longer vastly better. Unless we look to fix this, to turn it around, our young people are going to sucked up on the treadmill of work without being able to look up ahead and at the future. Student Loans in 2020: A Snapshot
Micro fact: Scientists have also discovered that whales increase ocean phytoplankton, microscopic plants that consume CO2 and create oxygen. These small but mighty, phytoplankton are responsible for capturing 40 percent of all CO2 produced and are responsible for at least 50 percent of all oxygen on earth (link here).
oom imagen here
$1.57 trillion
Amount of student loan debt outstanding in the United States
54%
Percentage of collage attendess taking on debt, including student loans, to pay for their edication Average amount of student loan debt per borrower
$37584 14%
Percentage of adults carrying student loan debt
6.5%
Amount of student debt that´s at least 90 days past due or in default
sources: Experian, Federal Reserve, EducationData.org
Working to pay off debt is very different from working in general; it’s an extraction not a development. In the same way, for generations people have been rewarded for extracting
value from the planet rather than devel-
oping it. The two ideas are traditional and ultimately exploitative.
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Wealth has been derived from, for example, gold mining – which ex-
tracts the precious metal but poi-
sons our rivers and hollows out the seams. Wood is the same; forests
are cleared without regeneration
and whole landscapes butchered in the course of progress. Coal scars
a landscape and a people. We cut down the world’s oxygen lungs in the Amazon or chase the whales to near extinction.
Blockchain Industry Review
CATALYZING REGENERATION There may be nothing of more critical importance today than the regeneration of the world´s ecosystems. Regen Network is a global comunity and platform focused on ecological monitoring and regereation. By improving our understanding of the state of our land, ocean and watershelds, and enabling rewards for verified positive changes. Regen Network catalyses the regeneration of our ecosystems.
How can we reward the custodians of
Ecological State
the resources on our planet instead?
Regen Network monitors on-theground conditions and regenerates trusted alttestation about the ecological state of a piece of land.
The answer lies in blockchain technology. We can embed and secure the governance, tokenize our resources where we can freely and openly exchange those tokens.. It’s revolutionary, simple and highly effective. transcending physical borders.
Verified Change of State Network members assess the impact of their ecological actions on the land using Ecological State Protocols
It’s also happening now. One such project is the Regen.Network. This project began in US. It evaluates the biodiversity on ranches in Australia and quantifies the results. It then monitors the land using satellite technology. Based on
Direct Rewards
the acquired and monitored data they
Ecological Contracts allows organization to allocate funds and distribuite them according to specific verified outcomes.
convert this into carbon credits. From there it is converted into a token, registered on the regenblockchain secured and maintained by multiple third-party validators. These tokens can be purchased by any entity looking to offset their carbon footprint.
There are a lot of companies and entities looking to offset their footprint.
by the Crypto Curry Club
0039
>>>>
Reward the custodians To highlight how the custodians are directly rewarded on another project, is the example of Suku which works in supply chain management. Suku works with individual farmers to reward them for providing provenance data for up-chaining to the conscious The
consumers.
project
provides
rewards in the form of tokens which have real value and can be spent on Suku’s marketplace. In addition, these tokens can also be used to raise micro loans in fiat.
Article 8
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Blockchain Industry Review
Micro fact: Micro loans to people in the developing world are loans with huge repayment ratios and good performance
Further Rewarding the custodians Back to micro loans and consider the Kiva project where cash-rich people can loan micro
sums which are translated into loans for people on the other side of the world – the internet was
able to directly connect impact investor and local entrepreneur. The former could be a student with beer money and the latter a single mother weaving baskets to support her family.
Now technology is providing the automated market makers matching funds to loans – and
one-to-one was about to be supplanted with many-to-many. Tokenization is the new gateway
to giving – with rewards. DeFi has revolutionized this space allowing the many-to-many model to operate successfully at scale with yield.
The trick is to seek out the DeFi projects that
facilitate impact investing. DeFi automates the
process whereby people provide liquidity, earn rewards and the funds are then accessed by a third party or parties. By picking funds that work in regenerative spaces the investor can
earn money and do good at the same time. This is a key message. The world does not have to operate on a zero-sum basis; this is a major paradigm shift and one which will find resonance with Millennials.
Reward the impact investors: people can earn
money by investing in the renewable farming of the planet, thereby helping save the planet and feeling good about themselves – the last part, while intangible, is about as good an argument as can be found.
by the Crypto Curry Club
0041
Blockchain
>>>>
So, while DeFi provides the answer to impact investing without having to contact individual recipients, how do investors locate the right projects? This is where companies such as Sonic Capital comes in. Sonic are building a product that allows the first steps in providing financial rewards for investing or participating in these blockchain companies working in this space. Blockchain is the tool that ensures the ledger is secure, decentralized and open so that everyone can see the contributions. The projects are decentralized so no one entity can manipulate it or orchestrate outcomes. The entities supporting the decentralization are rewarded for providing this security. Sphere: provides verification and authentication of these projects and collects the rewards for this verification and authentication. Investing through
introducing trust. It does this by allowing investors to take part in the crypto revolution without any of the complexities and yes still participate in the financial rewards. It does this through the onboarding of people with fiat – doesn’t matter if it’s Hong Kong dollars, Indian rupees or Euros. All investors will get a share certificate which is your proof of ownership and a representation of the value and let Sphere do the rest. Sonic Capital has partnered with Tavis Digital, an arm of Tavis Capital which is a licensed FINMA registered fund manager based in Switzerland. In addition to huge fund administration experience, the management at Tavis Digital is very experienced in working with ESG projects. They are also experienced in ensuring none of the projects are involved in green washing. All investors will receive AMCs or certificates which are recorded on the blockchain too without need for KYC procedures. There is no
Sphere does two main things; first of all investors
lock-in period for the AMCs.
receive interest on the token and secondly the
Reward the impact investors.…. and just in case
token may rise when attached to successful projects. Sphere creates value without the complexity while
you still doubt what is happening in the era of exponential growth… just watch this video and don’t miss out on this great product. Link here.
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Issue 7- Sep 2021
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