Moon Mag #37

Welcome to the September Edition of MoonMag!

As we bask in the warmth of summer here in the Northern Hemisphere, I say that with a grain of salt, as I’m currently in England, but all the same, there's no better time to kick back, relax, and take a moment to level up your knowledge. Meanwhile, for our friends in the Southern Hemisphere, the chill of winter is beginning to thaw, making way for the refreshing breezes of spring. Whether you’re lounging by the pool, sipping iced tea on your porch, or enjoying the first hints of warmer weather, we’re here to equip you with the insights and tools you need to master crypto!

In this issue, we're exploring the essentials of portfolio diversification. With unpredictable markets, it’s crucial to spread your investments wisely. We’ll guide you through strategies to help you weather any storm and ensure your portfolio is robust and resilient.

But that’s not all. Ever wonder how to truly understand and evaluate a new project before jumping in? This month, we’re breaking down the art of the deep dive. From analysing whitepapers to understanding market potential, we’ll show you how to peel back the layers so you can make informed decisions about where to put your hard-earned money.

A significant merger is also making waves in the tech world: the coming together of OCEAN, FET, and AGIX has birthed ASI –Artificial Super Intelligence. What does this mean for the future of AI, and more importantly, how does it affect you as an investor or a tech enthusiast? We’ll explore the implications of this groundbreaking development and what it could mean for the landscape of artificial intelligence.

History has a funny way of repeating itself, and in this issue, we’ll examine the patterns of the past that could influence the future. Understanding these trends can give you a significant edge, whether it’s market cycles, technological advancements, or geopolitical shifts. As we move forward, we’ll point out what you should be excited about and what might warrant a closer look. Finally, we’ll demystify Account Abstraction. If this concept has seemed elusive, don’t worry—we’re breaking it down into digestible pieces so you can grasp the ‘how’ and ‘why’ behind it and understand its importance in the broader financial ecosystem.

A note from Lisa

So grab your favourite summer beverage. Do you like pina coladas? It’s possible this earworm is now stuck in your mind, so find a comfortable spot and get ready to dive into a month filled with knowledge, insights, and actionable tips that will empower you to make informed decisions and take control of your crypto destiny!

Cheers to a productive and enlightening September!

This issue is a bit secret. We're giving away some of our best tips and tricks on how to do your own deep dive on a crypto project! However, our motive is always in educating and informing people, so we don't mind that much, and, well, some of us don't have all the time in the world to scour the deep, dark depths of the internet and find some info about what projects have planned or how a project has allocated its token share....

However, to use an old adage - “Give a man a fish, and you feed him for a day; teach a man to fish, and you feed him for a lifetime.” I want to stress the importance of learning skills over seeking outcomes. Lisa and I talk about this with trading, too. We run Getting Started In Crypto, which is a fantastic platform to get access to trading signals and breaking market news but it's also heavily built on being a platform for education and helping others learn the skill of trading. Having a skill that makes you money at any point or any time in your life can be a huge personal asset to rely upon, and while the upfront work can be intense and demanding, the resulting skill you acquire can be pivotal in achieving life goals.

So much of what we do and share in the crypto world can be translated and used in other areas of life, and I think this is due to the psychology of being in crypto, especially trading. A great example is learning to be disciplined with oneself instead of succumbing to external factors. See how the knowledge you acquire from this issue helps you in other areas of your life! Otherwise, enjoy and indulge in the articles and as always, let us know if there's something you want us to write about or a project you've found lurking in the shadows of the crypto jungle.

A note from Josh

SPONSORS

We are incredibly grateful to the following sponsors for their support. We run a ‘Sponsor A Writer’ campaign where crypto projects take part in an altruistic act of sponsoring our talented writers. By doing so, they play a crucial role in keeping the crypto economy alive and thriving, not only for our readership, but for the writers who provide the awesome articles.

DISCLAIMER

All the content provided for you as part of the Moon Mag has been researched thoroughly and to the best of our ability however it is your choice, and your choice only, whether you wish to invest or participate in any of the projects. We cannot be held responsible for your decisions and the consequences of your actions. We do not provide financial advice. Please DYOR and above all, enjoy the content!

CONTRIBUTORS

Daniel

Daniel has been a blockchain technologyevangelist since 2012 and is a faithful believer in the Crypto ecosystem. Daniel also writes for Coin Telegraph!

Samantha

Freelance journalist dedicated to digital media, enthusiast of the crypto ecosystem and disruptive technologies MDC writer since 2018, currently writer for CryptoTrendencia.

Chris

I joined the crypto party in 2017 Worked as a DAO contributor, startup advisor, lead researcher and co-author My superpower? Translating complex blockchain concepts into clear, engaging content that resonates.

TRADERS PERSPECTIVE

Does History Repeat?

written by Lisa N. Edwards

The Evolution of Money: From Barter to Bitcoin

The history of money is a tale of human innovation, spanning millennia and crossing civilisations. Money, in its essence, is a system for the exchange, storage, and measurement of wealth. It evolved from simple barter systems, where goods and services were exchanged directly, to more sophisticated forms that allowed for the indirect fulfilment of these functions.

This evolution has been driven by the need for a more efficient, reliable, and universally accepted means of exchange. Previously, cross-border and international trade had no common currency that could be accepted by the world around, leading to complex barter systems or reliance on precious metals like gold and silver to facilitate transactions. This lack of a universal medium of exchange often created inefficiencies and complications in global trade, as parties had to agree on a mutually acceptable form of payment or undergo currency conversions, which were both costly and timeconsuming.

Money can take various forms. In its physical form, it appears as coins and notes tangible items that people can hold and exchange. However, money also exists as a written or electronic account, a record of value stored and transacted without the need for physical presence. Over time, money has taken on different values and meanings:

● Commodity Money: This type of money has intrinsic value, meaning it is made of materials that have value in themselves, such as gold or silver.

● Representative Money: This is money that is legally exchangeable for something with intrinsic value, like paper notes that can be exchanged for a fixed amount of gold.

● Fiat Money: The most common form today, fiat money, has no intrinsic value and is not backed by a physical commodity. Its value comes solely from the trust and recognition that it will be accepted in exchange for goods and services.

As we move further into the digital age, the concept of money continues to evolve, with cryptocurrencies representing the latest frontier in this ongoing transformation. This brings us to the central question of this article: Does history repeat itself when it comes to market bubbles, and how can we protect our financial future in an ever-changing economic landscape?

I strongly believe that cryptocurrency has the potential to revolutionise cross-border and international trade by providing a universal, decentralised currency that is accepted worldwide.

Unlike traditional currencies, which are subject to exchange rates, government regulations, and banking fees, cryptocurrencies like Bitcoin, Ethereum, and others operate on a global blockchain network that transcends national borders. This means that transactions can be conducted directly between parties without the need for intermediaries, reducing costs and processing times.

Moreover, the transparency and security inherent in blockchain technology ensure that transactions are verifiable and tamper-proof, offering a more reliable and efficient system for global trade. As adoption grows, cryptocurrencies could become the standard medium of exchange in international commerce, simplifying the process and making it more accessible to everyone.

Understanding Market Bubbles and Protecting Your Future

The financial world has always been a rollercoaster, with moments of soaring highs followed by devastating lows; it’s all about learning to surf the waves. From Tulip Mania in the 17th century to the Great Crash of 1929, the banking crisis of the 1980s, and the 2008 Global Financial Crisis, market bubbles have left their mark on history. These events raise a crucial question: Does history repeat itself? And more importantly, how can we protect ourselves from the worst while hoping for the best?

A Walk Through History’s Bubbles

Tulip Mania (1637)

In the early 17th century, the Netherlands was gripped by an obsession with tulips. What started as a simple admiration for a beautiful flower quickly turned into a speculative frenzy. Tulips became a status symbol, and their prices skyrocketed. People were willing to trade entire estates for a single tulip bulb. But as with all bubbles, the market eventually collapsed, leaving many in financial ruin. The lesson here is clear: irrational exuberance can lead to disastrous consequences.

The Great Crash of 1929

The Roaring Twenties were a time of great economic prosperity in the United States, with the stock market reaching unprecedented heights. However, this prosperity was built on shaky foundations, including excessive speculation and the widespread use of margin buying (borrowing money to buy stocks).

When the market began to wobble, panic set in, leading to a massive sell-off and the infamous crash of October 29, 1929, known as Black Tuesday. This event marked the beginning of the Great Depression, a decade-long economic downturn that affected the entire world.

The Banking Crisis of the 1980s

The 1980s saw a series of banking crises, particularly in the United States. The deregulation of the banking industry allowed for riskier investments, leading to the collapse of many savings and loan institutions. Speculative real estate investments, high interest rates, and reckless lending practices fueled this crisis. The fallout was severe, with many banks going bankrupt and the government stepping in with costly bailouts. It was a stark reminder of the dangers of unchecked financial speculation and poor regulatory oversight.

The 2008 Global Financial Crisis (The Big Short)

The most recent major financial crisis, the 2008 Global Financial Crisis, was triggered by the collapse of the housing market in the United States. Subprime mortgages, complex financial derivatives, and the excessive risk-taking by banks and financial institutions led to a global economic meltdown. The crisis wiped out trillions of dollars in wealth, led to widespread unemployment, and triggered government interventions on an unprecedented scale. The lessons from 2008 are still being learned as the world grapples with the consequences of excessive leverage and the interconnectedness of global markets.

Several Hollywood Movies can help you better understand what happened and how it happened.

What Causes Market Bubbles?

Market bubbles are typically fueled by a combination of factors:

1. Speculation: When investors believe that the price of an asset will continue to rise, they pour money into it, driving prices even higher. This creates a self-fulfilling prophecy until the bubble bursts.

2. Excessive Liquidity: Easy access to credit and low interest rates can fuel bubbles by encouraging borrowing and risktaking.

3. Psychological Factors: Herd mentality, fear of missing out (FOMO), and irrational exuberance often drive bubbles. When everyone else is buying, it can be hard to resist joining in, even if the fundamentals don't support the prices.

4. Lack of Regulation: Deregulation or inadequate oversight can allow risky behaviour to go unchecked, leading to bubbles.

How to Protect Yourself from the Worst

While it's impossible to predict exactly when a bubble will burst, there are steps you can take to protect yourself:

1. Diversification: Don’t put all your eggs in one basket. Spread your investments across different asset classes, industries, and geographic regions.

2. Risk Management: Understand your risk tolerance and avoid over-leveraging. Make sure you’re not taking on more risk than you can afford to lose.

3. Stay Informed: Keep up with market trends and be aware of potential warning signs. Educating yourself about market fundamentals can help you avoid getting caught up in irrational exuberance.

4. Be Wary of Speculative Investments: If an asset’s price is skyrocketing without a clear reason, it might be a bubble. Be cautious and do your research before jumping in.

Hope for the Best: The Role of Cryptocurrency in Monetary Reform

As the world recovers from past financial crises, there is growing interest in alternative forms of money, particularly cryptocurrencies. Bitcoin, Ethereum, Solana, and other cryptocurrencies represent a new paradigm in finance that is decentralised and immune to the control of central banks and governments. Many believe that cryptocurrencies could play a crucial role in monetary reform, offering a more stable and transparent financial system.

Some see cryptocurrencies, with their decentralised nature, as a potential safeguard against the excesses that have led to past financial crises. The underlying blockchain technology offers transparency, security, and a way to bypass traditional financial intermediaries. However, it's important to note that cryptocurrencies are still in their infancy and can be highly volatile. They are not immune to bubbles themselves, as evidenced by the rapid rise and fall of Bitcoin prices in recent years. It is likely still 10 years or more before we do see proper adoption.

History

has shown us that market bubbles are an inevitable part of the financial landscape.

While we cannot predict when or where the next bubble will occur, we can learn from the past to protect ourselves in the future. Diversification, risk management, and staying informed are key strategies to safeguard your investments. All strategies are spoken about here within my articles in TheMoonMag.com.

As we move into an era of potential monetary reform with the rise of cryptocurrencies, there is hope that a more stable and transparent financial system could emerge. However, caution is still necessary as we raise our sails in these uncharted waters.

The Art of Diversification in Crypto

written by Josh

Disclaimer: The following article is for informational purposes only and should not be construed as financial advice. Always do your own research before making any investment decisions.

So, you’ve dipped your toes into the crypto waters and have a solid grasp of the basics. Maybe you’ve even seen some decent gains along the way. But as anyone who’s been around the block in this volatile world will tell you, riding the crypto waves can be thrilling and nerve-wracking in equal measure. The secret sauce to keeping your nerves steady and your portfolio strong? Diversification.

What Exactly is Diversification?

Diversification is like a safety net for your investments. At its core, it’s about spreading your bets to reduce risk. Instead of putting all your eggs in one basket (or one token, in this case), diversification involves allocating your capital across various assets, markets, and strategies. This way, if one part of your portfolio takes a hit, the others might cushion the blow.

The aim isn’t just to maximise profits but also to manage risks so you’re not left holding the bag if a project goes south.

The Why Behind Diversification

Why is diversification so important? Picture this: You’ve gone all-in on a single altcoin because you’re convinced it’s going to the moon. But then, some unexpected bad news hits maybe a regulatory crackdown or a critical flaw in the code and suddenly, your prized asset tanks by 50%. Ouch.

By diversifying, you’re not as exposed to the whims of one particular asset. It’s about balance hedging your bets so that even if one asset or market crashes, you’ve got others that might hold steady or even rise. It’s like having multiple lifelines in the ever-unpredictable game of crypto.

How to Diversify in Crypto

Alright, so diversification sounds like a no-brainer. But how do you actually go about doing it in the crypto space?

1. Split Your Funds: Trading vs. HODL’ing

First things first, you need to decide how much of your capital you’re willing to actively trade and how much you’re going to HODL (hold on for dear life, for the uninitiated). A general rule of thumb is to only trade with 20% of your available capital. Why? Because trading is generally a riskier business in comparison. Even seasoned traders can get burned, and you don’t want to put your entire stack on the line.

By keeping 80% of your funds in a HODL portfolio, you ensure that most of your capital is invested in assets you believe in long-term, regardless of short-term price fluctuations.

2. Diversify Your HODL Portfolio

When it comes to your HODL portfolio, diversification is key. Don’t just dump all your funds into Bitcoin and call it a day (as tempting as that might be). Instead, consider spreading your investments across different niches within the crypto industry. Below are just some examples, but review the other issues in the Moon Mag for many more!

● Gaming: The intersection of blockchain and gaming is one of the most exciting areas in crypto right now. Projects that incorporate NFTs or play-to-earn mechanics have been gaining serious traction.

● Meme Tokens: Love them or hate them, meme tokens like Dogecoin have proven they can capture the public’s imagination (and capital). These are high-risk, high-reward plays, so don’t allocate too much here, but having a small stake can be fun and potentially lucrative.

● DeFi (Decentralized Finance): The DeFi space is transforming traditional financial systems, offering everything from lending platforms to decentralised exchanges. Diversifying into DeFi tokens can provide exposure to this rapidly growing sector.

● Layer 1 and Layer 2 Solutions: Beyond Ethereum, other layer 1 networks like Solana and layer 2 solutions like Polygon are gaining adoption for their scalability and lower fees. Having a piece of this pie could be smart as the ecosystem evolves.

3. Assess the Risk

Whether you’re trading or HODL’ing, assessing risk is non-negotiable. Not all assets are created equal. Some might have massive potential but come with equally massive risks. Others might be safer bets but with more modest upside.

Diversification isn’t just about spreading your money across different tokens it’s also about spreading your risk. Ensure your portfolio includes a mix of high-risk, high-reward assets and more stable, lower-risk options. This way, you’re prepared for whatever the market throws at you.

4. Review and Rebalance Your Portfolio

Once you’ve diversified your portfolio, your work isn’t done. It’s crucial to regularly review and rebalance your investments. Your trading fund is generally short-term, so analysis will be done more frequently. The crypto market is notoriously volatile, meaning the value of your assets can change rapidly. Over time, these fluctuations can skew the balance of your portfolio, potentially leaving you overexposed in certain areas.

Rebalancing involves adjusting your holdings to maintain your desired level of diversification. For example, if one asset has performed exceptionally well and now makes up a larger percentage of your portfolio than intended, you might sell some of it and reinvest in other assets to restore balance. This process helps you lock in gains, reduce risk, and ensure that your portfolio continues to align with your investment strategy.

Reviewing and rebalancing at regular intervals whether weekly, quarterly, biannually, or annually can help you stay on track and adapt to market changes, ensuring your diversification strategy remains effective.

5. Know When to Take Profit and Exit the Markets

One of the most challenging aspects of investing in crypto is knowing when to take profits and when to exit the markets. The temptation to hold onto an asset as its value climbs can be strong, but no market goes up forever. Having a clear profit-taking strategy is essential to maximise your gains and protect yourself from sudden downturns.

A good rule of thumb is setting specific profit targets when investing. For example, you might decide to take 20% of your profits off the table when an asset doubles in value or gradually sell portions as it reaches certain price milestones. This strategy ensures that you’re realising gains without entirely exiting a position that might still have room to grow.

Similarly, setting stop-loss levels is important to limit potential losses if the market turns against you. Deciding in advance how much you’re willing to lose on an investment can help you avoid panic selling during a dip and allows you to exit with minimal damage.

Finally, broader market conditions should be considered when deciding to exit the markets altogether. It might be wise to reduce your exposure if you notice significant signs of a market top such as widespread euphoria, unsustainable price increases, or adverse regulatory news. Exiting the market doesn’t have to be all or nothing; you can gradually scale back your positions to preserve gains while staying open to future opportunities.

Tools To Help You

If you’re looking for HODL inspiration on where to diversify next, look no further than Moon Mag. Our previous issues have highlighted some of the most promising projects in the crypto space, from emerging trends to under-the-radar gems.

And for those who want an all-in-one platform to manage both trading and HODL portfolios, head over to Getting Started In Crypto. We’ve designed our platform to be your go-to resource for smart, diversified investing, trading and know-how in the crypto world.

CoinGecko Portfolio is a fantastic resource for anyone looking to track their crypto investments in one place. This tool supports a vast array of coins and tokens, giving you a clear overview of your holdings across different assets. What makes CoinGecko Portfolio particularly valuable is its detailed analytics, which provide insights into your portfolio's performance.

For those venturing into the decentralised finance (DeFi) space, Zapper is a must-have tool. Zapper offers a comprehensive dashboard that lets you seamlessly track and manage your DeFi investments. Whether yield farming, providing liquidity, or exploring new DeFi opportunities, Zapper makes it easy to monitor your positions across multiple platforms. This is especially useful for diversifying within the DeFi sector, where opportunities are plentiful but can be challenging to manage

without the right tools.

Messari Screener is another invaluable resource. Its screener tool allows you to filter and analyse crypto assets based on various criteria, including market cap, trading volume, and sector. This makes it an excellent tool for identifying new investment opportunities that align with your diversification goals. Messari Screener can help you uncover hidden gems and ensure your portfolio is spread across different sectors of the crypto market.

Finally, for those interested in automatic portfolio rebalancing, Balancer is worth exploring. Balancer is a decentralised portfolio manager that allows you to create and manage liquidity pools with multiple assets. What’s unique about Balancer is its ability to automatically rebalance your portfolio by trading assets within the pool based on the weightings you set. This feature is particularly helpful for maintaining diversification without the need for constant manual adjustments, ensuring that your portfolio remains aligned with your long-term strategy.

Summing Up

So, there you have it a roadmap to navigating crypto with a well-diversified portfolio. Whether you’re splitting your funds between trading and HODL’ing, exploring different niches within the crypto industry, or keeping a close eye on when to rebalance or take profits, diversification is your best friend in managing risk and maximising potential gains.

But here’s something to ponder as you continue your crypto journey: in a space as fastmoving as this, where new projects and trends emerge almost daily, how will you stay adaptable?

Remember, diversification isn’t just about spreading your investments it’s about staying curious and open to new opportunities while protecting what you’ve already built.

Good luck!

Remember, diversification is your friend in the world of crypto. But always do your own research and never invest more than you can afford to lose. This article is meant to guide you, not to make decisions for you. Happy diversifying!

Do It Yourself: Deep Dives

written by Chris

Photo by Ben White

Have you ever found yourself needing help analysing a new crypto project that's been trending? That feeling like you’ve been dropped in the pool's deep end with no idea how to swim? Don’t worry you’re not alone. The crypto and web3 space are complex and constantly evolving, and you need to combine many puzzle pieces to ‘’dive in’’ and make sense of it all. Thankfully, this doesn’t require a PhD or insider connections. What it does require is patience, curiosity, and a solid game plan. That’s where this guide comes in.

Doing a deep dive isn’t just about becoming a walking encyclopedia of crypto knowledge. It’s about peeling back the layers of a project, understanding its core mechanics, and seeing the bigger picture. It’s about connecting the dots others might miss and coming away with insights that can shape your investment strategy or simply satisfy your curiosity. It’s a skill that turns you from a passive consumer of information into an active participant in the space, capable of making informed decisions and perhaps contributing meaningfully to discussions or even finding a work opportunity you haven’t planned.

At MoonMag, we’ve always been advocates for thorough research and exploration. We believe in going beyond the headlines, digging into the nitty-gritty, and really understanding what makes a project tick. And the best part? You can do it too!

Think of this article as a crash course in research, where we break down the process into actionable steps. We’ll cover many different aspects of how to do a deep dive yourself effectively, what tools to use, where to search for information, etc. Generally, here are some starting points:

▪ The fundamentals: This is your foundation. Find the key aspects to consider when evaluating a project’s core value, such as its technology, team, and tokenomics

▪ Market trends: Cryptocurrency projects or narratives move fast, and staying on top of trends can give you a serious edge.

▪ Social media platforms: Sometimes, the real alpha isn’t in official announcements but in what’s being whispered in Crypto Twitter, private Discord/Telegram channels, Reddit and so on.

▪ Upcoming events: Whether it’s a protocol upgrade, a partnership announcement, or a major conference, events can be catalysts for price movements. So you need to keep tabs on them!

▪ Niche forums: Beyond the big social platforms, there are specialised communities, like Bitcoin Talk, where deep, valuable discussions happen, like Bitcoin Talk.

▪ Crypto meetups: Don’t underestimate the power of face-to-face (or Zoom-toZoom) networking. We’ll explain why meetups are gold mines for insights and connections.

▪ Transaction volume and data: Metrics have always been strong indicators of a deep dive and analysis worth doing. For example, transaction volumes can tell you a lot about a project’s health and user engagement. To be honest with all of you, deep dives aren’t just about having all the right tools. It’s about the mindset. It’s about questioning everything, and not being afraid to challenge the narrative. It’s about verifying, cross-referencing, and digging until you’re satisfied that you’ve uncovered the truth.

By the end of this guide, you won’t just know how to do a deep dive you’ll be itching to start your own. Whether you’re looking to make smarter investments, contribute meaningfully to the crypto community, or simply satisfy your curiosity, this guide will equip you with the skills and confidence you need.

Let’s get started and see just how deep the rabbit hole goes!

Step 1: Identify Your Target

What’s Your Goal?

Before start writing down information, you need to know your target. What are you trying to uncover? Whether it's a hot crypto project, an emerging trend in Web3, or a new blockchain technology, you need a clear goal to guide your research. Without this, you’ll quickly get lost in the noise. So, start by defining exactly what you want to achieve. It might be as broad as understanding how a particular project works, or as specific as figuring out the utility of a token in a niche market. These 10 points will help you get started:

1. Start with the Basics

If you're a complete beginner, take it slowly and from where everything started. Begin with well-established cryptocurrencies like Bitcoin or Ethereum. Start by reading the original Bitcoin whitepaper by Satoshi Nakamoto or a beginner-friendly book like Mastering Bitcoin by Andreas Antonopoulos. In addition, Google is still your friend! So understanding the basics of wallets, how transactions are recorded on a blockchain, cryptographic technology, security and how to identify them will set you up for more complex research down the road.

2. Check the Project’s Website and Whitepaper

Ok, perhaps that’s step 1 if you are already familiar with the above–but once you’ve set your target, head straight to the project’s official website. This is where you will find (most likely) the litepaper or whitepaper a document that outlines the project’s vision, technology, and roadmap. Look at how professional the website is. Does it have up-to-date content, contact information, and clear explanations? A wellmaintained site is often a good sign, but don’t stop there. You still need to read the whitepaper to understand what the project is really about and whether it’s solving a real problem.

3. Understand the Market and Industry

Get a sense of the market the project is targeting. Is it a new or established industry? How does this project fit in? Understanding the broader market context will help you see if the project addresses a genuine need or just rides a hype wave. Research the industry’s pain points and evaluate whether that project offers a legitimate solution.

Projects often fall into specific narratives, e.g., Liquid Staking Derivatives (LST projects) or AI projects (essentially projects that have AI in their infrastructure or plan to advance through it). In addition, narratives change, but understanding which ‘niche’ the project falls into, can help you categorise it.

4. Analyse the Project’s Use Case

This is where it's a bit trickier. The project’s use case. What specific problem is it solving? How does it intend to disrupt or improve the current industry standards? Understanding this is important because a project without a real use case is likely just another speculative venture. Ask yourself if the project's solution is genuinely innovative, just a rehash of existing ideas, or worse, an existing project(s).

While this is not a metric for a project’s success, it's a metric to evaluate your thesis and potentially your goal by doing your research. Reading the official documentation (Gitbook, Github) can set you apart from the rest.

5. Assess the Tokenomics

To our beginners, tokenomics refers to the economic model behind the token or cryptocurrency. For example:

▪ How is the token distributed?

▪ Is there a hard cap on the total supply, or is it inflationary?

▪ How does the token’s design support the project’s goals?

▪ What are the initial supply, team allocations, vesting schedules

▪ Is it backed by any VCs/angel investors? What are their allocations and unlock schedules?

A solid tokenomics structure can indicate a well-thought-out project, while a poorly designed one could be a red flag for investors. Tokenomics DAO and Forgd are good places to start to see how they structure their research and evaluate a token’s value proposition.

6. Evaluate the Team

A project is only as strong as the team behind it. Research the backgrounds of the key members what have they done before, and do they have a track record of success? Check their presence on professional networks like LinkedIn or Twitter to see if they’re active and engaged with the community.

Often, team members on smaller projects may not be real. It is important to reverse search images and find if they are linked to real people, and if so, are these real people acknowledging the current project - it is a red flag if they are not.

Remember: a strong, transparent team with a solid background indicates a project’s potential.

7. Consider the Consensus Algorithm

The consensus algorithm is the backbone of any blockchain project. It determines how transactions are validated and how decentralised the network is. Common algorithms include Proof of Work (PoW) and Proof of Stake (PoS), each with its own strengths and weaknesses.

Understanding this will help you assess the project’s security and decentralisation. Now we have many different types: Nominated Proof of Stake, Proof of History, Proof of Time and so on.

8. Investigate the Roadmap

A project’s roadmap outlines its future plans and milestones. Is the timeline realistic are the goals achievable, or do they seem overly ambitious? Keep in mind that delays are common in crypto projects, but consistently missed deadlines could indicate more profound issues. A transparent and realistic roadmap is a good sign of a project’s long-term vision.

This can usually be found on the project’s website, either through a dedicated link or a nice infographic.

9. Strategic Partnerships/Collaborations

Check if the project has established partnerships with reputable companies or institutions. Strategic partnerships can provide additional resources, credibility, and market exposure. However, don’t be swayed by a logo-studded page verify these partnerships through press releases or official announcements.

For example, Coinmarketcap or Coingecko are usually not partnerships; they're where the token/coin is listed. You often see social media logos like Cointelegraph and Coindesk, but again, that’s paid PR, or if the project is big, they most likely covered a significant event. So make sure you cross-check these "partnerships" before writing anything.

10. Gauge Community and Sentiment

Finally, the temperature of the community should be taken into account. Are people excited about the project, or is there scepticism? Join Discord and Telegram, engage with members, or register in their forum to see if there are active proposals and discussions. Twitter posts or Reddit threads can give you a sense of the community’s vibe.

Additionally, pay attention to market sentiment what are other investors and analysts saying? Has the project been mentioned by others on Medium, Substack platforms, etc.? This will give you an idea of the project’s standing when you are researching.

Overall, that’s how someone can start doing a deep dive. The first step is about the fundamentals, especially if it's a new project rather than an existing one.

A quick tip: Find your own style if you are just starting now. You can do a deep dive covering only the technology, consensus, and technical details. On the other hand, you can do a deep dive on the token itself and its value proposition. Again, this is about finding what best suits you when evaluating and writing your deep dive. Don’t get intimidated or compelled to write how others do; you do you!

Step 2: Gather Your Tools

Google is Your Friend...But There’s More

When it comes to deep diving, Google is your starting point, but that’s undoubtedly not t enough when researching crypto, DeFi, etc. Most of us know how to perform a basic search, but to dig into the different aspects of a protocol and its mechanics, you need to master advanced search operators. These can help you filter out the noise of paid influencers and news or abstract info on the value you need.

Google or similar search engines can be used to find articles, forums, databases, and even obscure PDFs that might not rank high but contain goldmine information. And when Google starts to hit a wall, it’s time to branch out.

The Power of Social Media

The magic often happens on social media, especially in a fast-paced space. Crypto Twitter is like the heartbeat of the industry, where experts, influencers, and insiders drop real-time insights. To tap into this, create lists or follow hashtags like #DeFi, #Web3, #Layer1 and so on (depending on your search). Then, you need to be able to filter out the noise. Only some people are genuine, not everyone provides correct info, and there are thousands of scammers to look out for. But this will keep your feed streamlined with relevant information instead of a jumble of random posts, at least if you find fellow researchers and analysts.

Reddit, particularly subreddits r/CryptoCurrency, is another treasure trove. The discussions here are often in-depth and community-driven, making it a perfect place to gather opinions and spot emerging trends. Then there’s Telegram, which, despite being less organised, hosts channels and groups where leaks, rumours, and insider info often surface first. It’s usually chaotic but can be proven invaluable in some instances.

Specialised Sources

If you are serious about doing a deep dive, there are some better options than all of the above. You need to go beyond mainstream platforms. Niche forums like BitcoinTalk offer some of the most granular discussions about blockchain technology and individual projects. It’s where the community hangs out, discusses ideas, and often reveals insights long before they hit bigger platforms.

Photo on Bitcointalk forum (main page)

For project-specific information, whitepapers and GitHub repositories are essential. They provide the technical details that you won’t find in a regular article. Websites like Messari, Arkham, and DefiLlama offer detailed analytics, research reports, and data that can help you evaluate the viability of a project.

Additionally, platforms like CoinmarketCal help you track upcoming events, which can have significant impacts on market dynamics.

Photo by Arkham (Mantle Project)

Photo by Coinmarketcal (17th of August)

Paid Resources vs. Free Ones

Of course, nothing is free. When should you consider paying for information? Paid resources like Messari’s Pro subscription or research reports from Arkham Intelligence can be worth the investment if you’re serious about writing research papers. These platforms offer exclusive data, in-depth analysis, and insights that are often unavailable through free channels. However, free resources are more than sufficient if you're just getting started Platforms like Dune Analytics, Reddit, and various open-source repositories can provide a wealth of information without costing you a dime.

Step 3: Analyse and Interpret

Organise Your Findings

Many people may overlook this, but you need to organise all the information you find before you start writing anything. Even the most valuable insights can get lost in your notes without a clear system. This is where tools like Notion, Evernote, or even simple Google Doc spreadsheets become invaluable.

Notion, for instance, allows you to create databases, link notes, and categorise information in a highly visual and flexible way. Evernote is great for quick note-taking and clipping web content, while spreadsheets help in tracking quantitative data, such as transaction volumes or market cap changes over time.

Keeping track of your sources is crucial not just for credibility, but also for revisiting and cross-referencing information later (if you want to do an update, for example). Label your notes clearly, with dates, links, and brief descriptions, so you can easily trace back your thought process. The key is to make your findings accessible and actionable so that when you revisit them, you can immediately jump back into the flow.

Critical Thinking Is Your Best Friend

For good or worse, in crypto and the broader web3, information is abundant not all of it is accurate, unbiased, or useful. This is where critical thinking becomes ‘’critical.’’

Start by questioning everything:

▪ Who wrote this article or documentation?

▪ What’s their agenda?

▪ Is the data presented cherry-picked?

Remember, biases aren’t just in the sources but also in your interpretation. It’s easy to latch onto information that confirms your preconceptions, but true deep dives require you to challenge those ideas.

Look for corroborating evidence across multiple sources, and be wary of information that seems too good to be true it often is. Always ask yourself: ‘’What’s the counterargument to this point?’’ By constantly engaging in this internal dialogue, you can sift through the noise and identify the insights that truly matter.

Connect the Dots

With your findings organised and your critical thinking cap on, it’s time to start connecting the dots. This is where the magic happens raw data and disparate insights start forming a cohesive narrative. Look for patterns, recurring themes, or anomalies that might signify something important. For example, if several sources mention a particular blockchain protocol's scalability issues, that could be a red flag worth investigating further.

Synthesis is key here. Instead of just compiling information, aim to weave it together into a narrative that makes sense. For example:

▪ How do different pieces of information complement or contradict each other?

▪ What are the implications if certain trends continue?

This step involves transforming data into insight and eventually writing it all down.

Building a Hypothesis

Once you’ve connected the dots, it’s time to build your thesis (or hypothesis). Essentially that’s your educated guess about what all this information means. After all, this is not just a wild guess; it’s a well-informed theory you can test as more information becomes available. For example, if you notice that a certain altcoin consistently outperforms during specific market conditions, your hypothesis might be that its underlying technology is particularly suited to those conditions.

Forming a hypothesis helps you focus your future research and analysis. It gives you a framework for testing your ideas and considering various outcomes. Always be ready to adjust your hypothesis as new data comes in flexibility is just as important as having a solid starting point. This iterative process of hypothesis building and testing is what turns a deep dive from mere research into true understanding.

Step 4: Start Writing

Tailor Your Message

The last challenge is effectively communicating all your findings. The key to a successful presentation is knowing your audience. Are you sharing your insights with a general audience through a blog, pitching to investors, or engaging with peers in a niche forum? Each group requires a different approach. For a blog, you might want to simplify complex ideas and make them relatable. Conversely, investors will expect a more data-driven, concise pitch focusing on potential returns. Crafting a series of punchy, informative posts can help capture attention on platforms like X, where brevity is crucial.

Adapting your message ensures that your findings are understood and valued by the people you're addressing. The goal is to make your research accessible and impactful, no matter the platform or audience.

Free Tips

The Art of Storytelling

Data alone can be dry, but it becomes powerful when wrapped in a compelling narrative. Your findings are pieces of a puzzle. How do they fit together to tell a story?

Start by outlining the problem or question you set out to explore. Then, walk your audience through your research journey, highlighting key discoveries and how they led to your conclusions.

Engaging storytelling helps your audience follow your thought process and see the significance of your findings. Use metaphors, real-world examples, or case studies to make abstract concepts more tangible. A well-told story or research paper shouldn’t just inform, it should resonate with your audience to keep them hooked from start to finish.

Photo by Writers.com

Backing It Up with Data

No matter how compelling your story, it needs to be anchored in solid evidence. Supporting your narrative with reliable data and references strengthens your argument and builds credibility. Always cite your sources properly, giving credit where it's due. This is especially important in the crypto and Web3 space, where information can spread quickly, and misinformation can be damaging.

Use charts, graphs, and data points to back up your claims, but ensure that these visual aids are easy to understand and relevant to your audience. Avoid overwhelming them with too much data focus on the most impactful pieces that support your piece. Always remember that citing your sources properly is not just good practice; it’s an obligation.

Final Proofreading and Editing

It goes without saying, but if your research or article is getting published or you have to present your findings to your team, take the time to polish your work. Clear, concise, and error-free content enhances your credibility and ensures your message is communicated effectively. Tools like Grammarly can help catch grammatical errors, while the Hemingway App can simplify complex sentences, making your writing more readable.

source: Bitcoin ETFs on Dune by @hildobby

Editing isn’t just about fixing mistakes it’s about refining your message to ensure it’s as strong as possible. Consider getting a second pair of eyes to review your work if needed, or take a break and return to it with a fresh perspective. The goal is to present a final product that is both professional and polished.

Recap and Reflect

Conducting a deep dive is more than just an exercise in data collection. It’s about immersing yourself in a topic, connecting the dots, and ultimately gaining a deeper understanding. From setting clear objectives to presenting your findings, each step transforms raw information into valuable insights.

Remember, staying curious, critical, and committed is the key to successful deep dives As you continue to explore, keep questioning, keep learning, and most importantly, keep diving deep. The insights you uncover could be the key to understanding the next big shift or prepare you to make more informed decisions. Happy diving!

Tap2Earn The Next Generation Of GameFi

written by Daniel

Blockchain-based games that combine embedded finance properties with addictive mechanics seem to be growing fast, and the Tap2Earn narrative is driving the trend: Tap-toearn!

While it's true that everything has been cyclical in this industry, GameFi is no exception (first CryptoKitties, then Axie Infinity and now Hamster Kombat and co!); developers seem to have moved forward in their attempt to massify the use of cryptocurrencies through games.

Tap2Earn is a spin-off of the successful Play2Earn (P2E) games popularised by Axies' NFTs breeds, but with the simplicity of use offered by a mobile device, considerably shortening the learning curve for those wishing to dabble in both blockchain technology and cryptocurrencies in general.

Unlike P2E, its predecessor, which required some knowledge of technology and game mechanics - complicated for some - Tap2Earn (T2E) games introduced something as simple as TOUCHING your phone screen or making a few repetitive clicks with your mouse to start generating in-game assets.

Given the relevance it has gained in recent months because of the potential for impending airdrops of popular games based on this narrative, let's explore everything you need to know about Tap2Earn and what options the market currently offers before the euphoria subsides.

Key Takeaways

● Tap2Earn (T2E) is a trending sub-category of GameFi where players tap their screens in app-based games to earn real cryptocurrency rewards.

● Tap2Earn emerged from developers looking to create engaging gaming and earning experiences for users on browserbased applications.

● The Telegram App is the principal way to explore the Tap2Earn narrative, as many games do not yet work on the messaging app's desktop version.

● While Notcoin pioneered in implementing this narrative, Hamster Kombat, with more than 250 million users, has popularised this type of game.

● Hamster Kombat claims to be the thirdfastest app to reach 150 million users in history.

● Some Web3-based projects have started to generate their mini-app version based on Telegram with a Tap2Earn theme.

● According to the International Telecommunication Union (ITU), almost 80% of the world's population aged 10 and over owns a mobile phone, which opens the door for the massification of Tap2Earn games.

Origin & Evolution Of Tap2Earn

To talk about the origin of Tap2Earn games, we must undeniably mention TON's efforts to position itself as one of the top blockchains in the ecosystem thanks to the messaging application where it deploys its compatibility with Tap2Earn mechanics: Telegram.

Telegram is one of the most popular messaging apps, with over 900 million users and an average of over 350,000 DAU. One of its most prominent features is the ability to integrate games directly into the app, providing a seamless entertainment experience for users. This is made possible by the native bots functionality, which makes it easy for developers to deploy their projects within the Telegram interface.

Source: 2024 Digital Growth Report

Breakdown of the most popular messaging services by active monthly users

The rise of TON (The Open Network) has benefited from the momentum that early-stage projects and T2E pioneers such as Notcoin have and powerfully viralised the attraction of 'play to win', driving mass user participation in cryptocurrency-focused games.

How does Tap2Earn work?

The concept behind Tap2Earn is simple but powerful. In general, users must perform simple actions such as tapping their phone screen, participating in social tasks, referring acquaintances or watching advertisements to earn in-game assets, like coins, accessories and resources to level up within the game.

Some Tap2Earn games allow players to purchase automatic tap assists using the coins earned to free up time while increasing in-game earnings.

Tap2Earn games consist of a mix of transparency and traceability properties offered by blockchain technology and gamification properties to keep users engaged in a feedback process that generates satisfaction by tracking their progress.

Download the Telegram App on your smartphone, go to the game by clicking on the game bot link located through the search bar within Telegram, and follow the on-screen instructions to start tapping and winning! It's that simple to access Tap2Earn!

Why do they play Tap2Earn?

If you've been to CryptoKitties or Axie Infinity, you may have learned about blockchain or got bored trying.

Whatever the case, traditional Web3 games under the original Play-To-Earn or Play-andEarn narrative usually require a variety of resources in their initial stage: assets in the form of NFTs that cost money or are hard to get for free, suitable hardware, complicated user interface, time-consuming investment to level up, etc.

Generally speaking, the learning curve is often very high, which can deter people from choosing a typical blockchain-based game of an unfamiliar genre. In addition, casual players (like myself) lose interest in it because of the effort and investment required to excel in these Web3 games.

Source: BBG

In contrast, the Tap to Earn games offer a simplicity and accessibility that very few have achieved on the web3: running a bot within the Telegram messaging app. So, if you know how to chat with your friends on Telegram, you can certainly understand the instructions of a bot within the app.

On the other hand, Telegram and its vast users make it the ideal terrain for generating communities of players who interact with each other by supporting each other in or out of the game, increasing retention rates in the Tap2Earn narrative.

Add to this the fact that many of these games require simple actions, such as tapping the screen to earn coins or performing social interaction tasks, such as watching a YouTube video of the project to level up, which demonstrates not only the ease of use of Tap2Earn games but also the ingenious gamification system incorporated to keep you hooked on your mobile screen.

Of course, all of the above would not be possible without incentives. In this case, the incentive is financial, which adds further value to the narrative. With little or no skill or knowledge requirement of any kind, users can potentially earn income by touching the screen of their mobile devices! Crazy, isn't it?

While few projects based on this narrative have launched their token as Notcoin, the possibility of being rewarded with future airdrops by the various tap2earn projects generates a lot of attention from worldwide gaming communities and cryptocurrency enthusiasts.

Overall, the ease of use, gamification properties built into the game and integration with blockchain technology make the Tap2Earn narrative one of the most popular today, thanks in large part to the accessibility available for mobile devices around the world, generating economic opportunities even in nations where the daily employment landscape looks uphill.

How to play Tap2Earn?

As mentioned above, accessing this narrative game is very simple:

● Click on the link to the game bot.

● Select 'Play' from the bot's menu.

● Authorise the bot to link your Telegram account with the game's website.

● Click or tap to accumulate virtual currency.

● At a later stage, link a blockchain wallet to the bot.

● (Optional) Buy premium features like profit boosters with real cryptocurrency.

● Await the airdrop (if applicable).

However, it is imperative to know the game you choose for tapping. Although Notcoin was the first successful case of this narrative, it has encouraged other projects to follow in its footsteps, meaning that options seem to be increasing daily.

Although the mechanics are similar (tap to win), you should consider the following fundamental aspects when choosing a project under this narrative:

● Reward time: Some projects have a large number of users and require a lot of time to level up, so it is logical to think that the reward may be too low for the time invested.

● Airdrop: If you are interested in Tap2Earn just for the potential airdrop, check that the project plans to launch tokens with allocation for the community through this channel.

● Social networks: This is a good starting point for a promising project that allows you to monetise the time invested. Usually, networks like X and Reddit are good places to find out about the projects causing furore among crypto lovers.

● Fundamentals: Unlike the P2E narrative, projects today under the Tap2Earn narrative are relatively simple in their approach. Although some of them have little information about their founders, for example, Notcoin, you can visualise what other fundamental aspects, such as roadmap, investors, and utility, they propose so that you save time touching your mobile screen for nothing.

● Some T2E games have additional levels of participation that set them apart from the rest; find the one that appeals to you or reminds you of past success, like Catizen, for example, which evokes the style of the successful CryptoKitties

While this is not a definitive guide to guarantee participation in successful projects, it can serve as a good starting point to dive into the Tap2Earn narrative on the right foot.

Tap2Earn options

Several projects are launching their versions within this narrative, and others, like Notcoin, have decided to start their journey in the industry under the Tap2Earn umbrella.

● Notcoin: With over 40 million users worldwide and a successful token launch, Notcoin is at the forefront of the Tap2Earn narrative. While its airdrop has already taken place, the project is constantly growing and collaborating closely with other projects deployed on the TON network, making it a no-brainer for any user wishing to monetise their time tapping on their mobile screen.

● Hamster Kombat is currently the hottest new game. It is based on a virtual Hamster who serves as the CEO of a crypto exchange. With more than a third of the population playing the game, the project emphasises community participation and healthy competition between players by rewarding them with coins to be exchanged when they launch their native HMSTR token. The project envisions launching a layer2 blockchain solution focused on hosting Tap2Earn-based projects.

● Blum: Created by former Binance executives and focused on supporting Blum's decentralised exchange, the game features farming themes, referrals and daily social interaction challenges to reward players with Blum points (BP).

● TapSwap: Like Notcoin, TapSwap is a game in which players earn coins by tapping and completing various tasks. TapSwap plans to introduce additional features such as staking, a launchpad for new projects, and crypto payment APIs.

● Pixelverse: The game is focused on the cyberpunk theme, reimagining players as they tap the screen and participate in missions and battles. The project has plenty of users with more than 10 million battles per day, which has allowed it to obtain funding from exceptional venture capital firms such as Delphi Ventures and Mechanism Capital, among others.

● Catizen: The theme is managing a colony of cats in the style of CryptoKitties. The game combines strategy and simulation elements to earn cryptocurrencies while expanding your in-game progress. The game's charming graphics and engaging gameplay have made it a favourite among Telegram users seeking entertainment and earning opportunities.

How Much Can You Earn On Tap2Earns

Tap2Earn game winnings can vary considerably depending on the game's popularity, the built-in win mechanisms, and the player's strategy.

While there is no fixed or predetermined valuation for estimating how many dollars you can earn from tapping your mobile screen, the Notcoin airdrop highlights that those users who invested little time in the game paid out at the peak of the native token price, about two hundred dollars per user at the most conservative end.

Popular games, like Hamster Kombat, often offer more opportunities to win through ingame currency, activity bonuses, and referral programmes. In addition, purchasing automatic bots or boosters can increase efficiency when earning.

While they have not yet launched their native token, like most projects starting to emerge on Telegram, if the game allows earning cryptocurrencies, revenues also depend on current exchange rates, which can result in high volatility.

On average, a few dollars can be earned in a couple of hours of playing, even when there is the risk of not withdrawing the accumulated coins if the project dies in its attempt to become successful and lists its native token on a cryptocurrency exchange.

Promising Future

If we look at the number of users on Telegram and the number of people who own a mobile entertainment device, we can be optimistic about this cycle of the Tap2Earn narrative.

There are over 4 million active users on almost 3,200 different Web3 gaming protocols, according to Footprint Analytics data, so the Tap2Earn narrative has a lot of potential to gain a significant share of this market valued at $16B+ if we take into account the number of users of the most popular options in the sector such as Notcoin and Hamster Kombat (300M+ users).

It will be up to the industry's leading players to leverage the moment of euphoria to fairly and proportionally reward their community for their efforts without neglecting the simple gamification techniques they have implemented to retain the audience and make the narrative sustainable.

However, projects must face serious challenges to position themselves in the industry and not repeat the cycle of their predecessors, where the frenzy and enthusiasm to play fade as games fail to innovate and engage the user.

The sustainable success of this narrative will depend on its ability to evolve and adapt to a changing regulatory environment while offering safe and enriching experiences for its users, many of whom are adults who continue to love games.

These hurdles may determine whether it becomes a passing trend or a lasting component of the GameFi landscape and the adoption of blockchain gaming.

Writer's note:

What am I playing?

Hamster Kombat

Blum Dogs

Goats

Lost Dogs

Catizen

WatCoin

Byin

Fanton Fantasy Football

Cats

Potus

Pepes

Banana W-Coin

Dormint

MemePet

TapCat

Artificial Superintelligence Alliance

written by Chris

Key Insights

▪ The ASI Alliance merges Fetch.ai, SingularityNET, and Ocean protocols to advance decentralised Artificial Superintelligence (ASI) and democratise AI.

▪ The alliance aims to develop open, accessible AI technologies that benefit a broad audience and progress from Artificial General Intelligence (AGI) to ASI.

▪ Each Alliance member brings different skills:

- SingularityNET focuses on AGI and decentralised AI services. - Fetch.ai contributes autonomous AI agents and blockchain infrastructure.

- Ocean provides secure data sharing and tokenisation to support AI training.

▪ The ASI Alliance emphasises decentralisation to create a more democratic and secure AI ecosystem.

▪ ASI governance is multi-layered and features a council from the founding organisations and token holder voting, balancing expert guidance with community input.

▪ The alliance's model aims to foster a more inclusive and decentralised AI future, with its practical effect

image by https://www.superintelligence.io/

A New Era in AI?

If you haven’t been living under a rock, you have already heard of AI and blockchain technology and, most importantly, what it can achieve. Now imagine three powerhouses of AI Fetch.ai, SingularityNET, and Ocean Protocol joining forces to push the boundaries of what artificial intelligence can accomplish in a blockchain environment.

This is precisely what's happening with the creation of the Artificial Superintelligence Alliance (ASI). This shift is about merging their existing AI technologies and unique value propositions to essentially change the rules of the game.

So, what’s the big deal? The ASI Alliance is about making AI more accessible and democratic. Instead of letting big tech companies control the future of AI, this alliance wants to ensure that AI evolves in a way that benefits everyone, not just a select few.

This article will take you through the nuts and bolts of what this alliance means. We’ll look at why these three projects decided to merge, how they will do it, and what this could mean for the future of AI. Whether you're a beginner in all these, an AI enthusiast or just curious about the future of technology, this deep dive will help you understand why the ASI Alliance could start the next era in AI development.

The Vision Behind ASI

The Artificial Superintelligence Alliance (ASI) is more than just a merger; it’s a bold step toward shaping the future of artificial intelligence. But what drove Fetch.ai, SingularityNET, and Ocean Protocol to join forces? Let’s dive into the motivations behind the alliance and the shared vision guiding its path forward.

Origins of the Alliance

The formation of the ASI Alliance is all about combining the strengths of three distinct AI projects to create something bigger than the sum of their parts. Each member of the alliance brings a unique expertise to the table. Fetch.ai focuses on decentralised machine learning through autonomous agents, SingularityNET provides a marketplace for AI services, and Ocean Protocol specialises in secure data exchange. By merging, they aim to push the boundaries of decentralised AI, leading to innovations that are impossible for any entity to achieve alone.

What is the motivation behind the ASI Alliance?

It is rooted in a shared goal: to advance the decentralised Artificial General Intelligence (AGI) and, ultimately, Artificial Superintelligence (ASI). Unlike AGI, which is designed to perform a wide range of tasks at human-level intelligence, ASI surpasses human capabilities across virtually all domains. The alliance believes that a few large corporations should not control the development of such powerful AI. Instead, it should be open, accessible, and beneficial to all. This vision of a tech-independent AI ecosystem is what drives the ASI Alliance forward.

Image by: https://www.superintelligence.io/image by ASI whitepaper

Decentralisation and AI

More retail users use centralised AI projects daily. Still, they face a lot of scrutiny and are subject to new policies and regulations regarding how they handle user data. Decentralisation is a core principle for the ASI Alliance, and it’s not just a buzzword in this case it’s a necessity. In today’s AI world, a handful of tech giants hold the reins, controlling the direction of AI development and, by extension, the future of technology itself. The centralisation poses significant risks, from biased algorithms to the concentration of power and control over data.

The ASI Alliance is set on changing that. By decentralising AI development, ASI aims to democratise access to advanced AI technologies.

In simple words…

ASI Alliance wants to democratise AI tools and services to a broader audience, including developers, businesses, and even individuals, without a central authority dictating. terms. The alliance’s approach allows for more innovation, as different stakeholders can contribute to and benefit from AI advancements in a more open ecosystem.

Furthermore, ASI enhances security and trust, and the power of AI is not in the hands of a few; it is distributed across an open network, reducing the risks of misuse or exploitation. This democratic approach ensures that the benefits of AI are more evenly distributed.

In essence, by ‘’breaking away’’ from the centralised model we all know so far, the alliance is laying the groundwork for a future where AI is a tool for collective progress, not just a competitive edge for a privileged few. The vision (while far-fetched) behind ASI is to create smarter machines and, ultimately, a much more decentralised space.

The Role of Each Partner in the ASI Alliance

ASI Alliance should be a collaborative effort, and that’s precisely what it is. SingularityNET, Fetch.ai, and Ocean Protocol contribute their unique aspects and expertise to advance the mission of building decentralised Artificial Superintelligence (ASI).

SingularityNET (AGIX)

Overview, Mission and History: SingularityNET was founded with a bold vision: to democratise access to AI and foster the development of Artificial General Intelligence (AGI) in a decentralised, open manner. Since its inception, SingularityNET has focused on creating a global network of AI services accessible to anyone, anywhere. The platform allows AI developers to share their tools and models while users can access and combine these resources to build more complex AI systems.

SingularityNET's journey is marked by significant contributions to the AGI field. Through initiatives like the OpenCog Hyperon framework, SingularityNET had already initiated a neural-symbolic evolutionary approach to AI, integrating symbolic reasoning with neural network capabilities. This unique approach positions SingularityNET as a leader in the race towards the alliance’s mission.

Role in the ASI Alliance and Specific Expertise:

Within the ASI Alliance, SingularityNET provides the foundational AI infrastructure and the AGI development expertise that drives the Alliance’s mission. Key contributions include:

● OpenCog Hyperon: A sophisticated cognitive architecture designed to advance AGI by combining neural networks with symbolic reasoning.

● Decentralised AI Network: SingularityNET’s network of AI agents forms the backbone of the ASI infrastructure, enabling collaborative intelligence across different AI systems.

● NuNet and HyperCycle: These decentralised compute and ledgerless blockchain technologies are critical for scaling ASI, providing the necessary computational power and secure transaction framework.

SingularityNET’s deep expertise in AGI and its commitment to decentralised development ensure that the Alliance’s efforts are grounded in ethically aligned AI research.

Fetch.ai (FET)

Unique AI Agent-Based Technology: Fetch.ai is known for its innovative approach to AI through autonomous software agents that can perform tasks on behalf of users. These agents can learn, negotiate, and transact in decentralised environments, making them ideal for a wide range of applications, from smart cities to supply chains.

Fetch.ai’s technology is built on a native Layer 1 blockchain, optimised for delivering high-performance AI agent systems. This infrastructure supports a decentralised economy where agents can interact, share data, and execute complex tasks autonomously. So far, Fetch.ai has successfully deployed its agent-based systems in various commercial contexts, demonstrating the potential of decentralised AI.

Past Achievements and Future Vision within the Alliance: Fetch.ai has a track record of delivering real-world AI applications, such as autonomous energy grids and various DeFi solutions. These successes highlight Fetch.ai’s capability to bridge the gap between theoretical AI models and practical, impactful applications.

In the ASI Alliance, Fetch.ai’s role is centered on:

● AI Agent Integration: Fetch.ai’s agents will be integrated into the broader ASI infrastructure, enhancing the system’s ability to perform complex tasks autonomously.

● Enhanced AI Ecosystem: By leveraging Fetch.ai’s blockchain and agent frameworks, the ASI Alliance can scale its AI capabilities to handle larger, more diverse datasets and use cases.

● Future Vision: Fetch.ai aims to expand its agent-based technology into new domains, contributing to developing a unified AI stack that underpins the ASI ecosystem.

Fetch.ai’s contributions are as crucial for realising the Alliance’s vision where autonomous agents can drive the development of ASI.

Ocean Protocol (OCEAN)

Focus on Data Tokenisation and Its Importance for AI: Ocean Protocol’s mission is to unlock data for AI by creating a decentralised marketplace where data can be securely shared and monetised. For those of you unaware yet, data is the lifeblood of any AI system or framework. Ocean Protocol provides the tools to tokenise data assets, allowing them to be traded, shared, and used for training AI models while preserving privacy and ownership.

Ocean Protocol’s unique approach to data management includes its Compute-to-Data technology, which allows data owners to share their data without exposing it. This allows AI training on sensitive datasets without compromising privacy.

How Ocean Protocol Supports ASI’s Objectives:

Ocean Protocol’s role in the ASI Alliance is centered on its data management capabilities, which are essential for developing and deploying ASI. Key contributions include:

● Data Tokenisation: By enabling the tokenisation of data, Ocean Protocol ensures that valuable datasets can be easily integrated into the ASI ecosystem, providing the raw material needed for AI training and development.

● Compute-to-Data Integration: This technology is vital for enabling decentralised AI systems to access and utilise data securely, supporting the development of ASI in a way that respects user privacy and data ownership.

● Scalable Data Infrastructure: Ocean Protocol’s marketplace and data infrastructure are also important for supporting the large-scale AI computations needed to achieve ASI.

In the ASI Alliance, Ocean Protocol ensures that data will flow efficiently and securely through the network, empowering AI systems with the information they need to evolve into ASI.

Founding Team

For something like this to happen, you’d need a lot of visionaries, AI experts, technologists and thought leaders. It goes without saying that the core founding team are at the top of their game, being the actual leaders of the 3 Alliance protocols. More specifically:

Ben Goertzel, the CEO and Chief Scientist of SingularityNET and the CEO of the Superintelligence Alliance, is a pioneer in the field of Artificial General Intelligence (AGI). With over 25 books and 150 research papers to his name, Dr. Goertzel has been a driving force behind numerous AI organisations, including SingularityNET, TrueAGI Inc., and the OpenCog Foundation. His work on OpenCog Hyperon and his contributions to the development of advanced robots like Sophia demonstrates his deep commitment to advancing AGI.

Humayun Sheikh, the CEO of Fetch.ai and Chairman of the Artificial Superintelligence Alliance, is an entrepreneur with a profound understanding of AI, machine learning, autonomous agents, and blockchain. A founding investor in DeepMind, Humayun has been instrumental in commercialising cutting-edge AI technologies. His leadership at Fetch.ai is focused on building the autonomy of the future, integrating AI and blockchain to create a more connected and intelligent world.

Trent McConaghy, founder and CTO of Ocean Protocol, serves as a board director for the Artificial Superintelligence Alliance Council. With a background in AI dating back to 1997 and blockchain since 2013, Trent has worked on large-scale AI projects for semiconductors. He has been a pioneer in developing decentralised AI technologies. His extensive experience in launching and scaling AI and blockchain innovations is vital to the alliance's mission.

Bruce Pon, the Founder and CEO of Ocean Protocol, also holds a position on the ASI Council. With a rich history in building global financial systems and a deep understanding of data and AI integration, Bruce has driven innovation in decentralised data economies. His leadership at Ocean Protocol has been critical in bridging the gap between AI and blockchain.

Janet Adams, the COO of SingularityNET and a Board Director in the Superintelligence Alliance Council, is a passionate advocate for AI ethics and regulation. Her expertise in disruptive technologies and their impact on industries, coupled with her commitment to a positive and beneficial Singularity, makes her an influential thought leader in the AI and blockchain sectors.

The ASI Alliance wouldn’t settle for less on the people guiding its mission to harness the power of decentralised AI for the greater good. But of course, we still have governance to discuss!

And then we have…

ASI Governance

You can’t really democratise access to AI and form this powerful alliance without governance parameters. The governance of the Artificial Superintelligence Alliance is designed to be robust and flexible, integrating input from a diverse range of stakeholders. This new type is set to surpass the current structures of SingularityNET, Fetch.ai, and Ocean Protocol, respectively, in terms of power and decentralisation. By bringing together these three protocols’ governance under a shared framework, ASI governance aims to create a more diverse and collaborative community. The force behind the ASI Network's growth will be the collective participation of the community, particularly the $ASI token holders, who play a crucial role in the network's operations. But let’s analyse a bit further:

A Multilayered Governance Structure

The network’s governance is structured across several layers, each addressing different aspects of management and community involvement. This multi-layered approach allows for different mechanisms, ensuring efficiency and inclusivity in decision-making processes.

1. Formal Corporate Structure

At the top layer, governance has a ‘more’ formal corporate structure, with an Artificial Superintelligence Council at its core. This council brings together representatives from the three foundational organisations SingularityNET, Fetch.ai, and Ocean Protocol to form a consensus and execute a shared vision. This structure ensures that the strategic direction of the ASI network aligns with the goals of all participating entities while incorporating community feedback into its decisions.

The Superintelligence Alliance Foundation will be legally incorporated in Singapore, leveraging the favourable regulatory environment that has supported the operations of the member organisations for years. While the individual foundations will retain control over their operations, the council will coordinate the release of $ASI tokens and handle legal responsibilities. Additionally, as needed, the council may take on other roles, such as coordinated marketing efforts across the ASI ecosystem.

2. Network-Wide Participatory Governance

Decentralisation is key, and network-wide participatory governance is central to this approach. $ASI token holders are empowered to vote on important decisions, such as the introduction of new projects to the Alliance or changes to the Alliance Council's Constitution. This participatory model ensures that the broader community has a say in the network's direction, reinforcing the decentralised ethos that should underpin every so-called ‘decentralised protocol.’

The governance process allows for a 2/3 majority vote by the council and approval from $ASI token holders to enact significant changes. This system balances the need for expert guidance with the democratic input of the community, fostering a collaborative environment for decision-making.

3. Alliance Member-Specific Governance

Each member organisation within the ASI Alliance has specific pools of $ASI tokens earmarked for particular purposes. These token pools, such as Ocean's community incentives or SingularityNET's Deep Funding, will continue to function primarily as they did pre-merger, ensuring continuity in their respective networks. However, some adjustments will be made to align with the new, unified governance structure.

For instance, SingularityNET's various token pools, including those for liquidity, loyalty rewards, and staking rewards, will transition to $ASI tokens post-merger. These pools will maintain their original purposes, such as incentivising development and providing liquidity, while being integrated into the broader ASI framework.

Over time, the weight of the historic governance snapshot will decrease to zero, according to the weights above. Source: whitepaper

4. Self-Organised Subnetwork Governance

The ASI network also supports selforganised subnetwork governance, allowing for decentralised management within specific subnetworks. These subnetworks, which may include initiatives like the Beneficial Global Brain Network, operate with their own governance mechanisms tailored to their unique needs. This layer of governance reflects the evolving nature of the ASI network, providing flexibility for different projects to govern themselves while still contributing to the overarching ASI ecosystem.

For example, several SingularityNET spinoff projects, such as Rejuve, Jam Galaxy, and SophiaVerse, will leverage $ASI tokens within their native governance systems. These projects illustrate how the ASI network can accommodate diverse governance models, supporting innovation and experimentation within a decentralised framework.

Overall, the ASI governance model is promising. It offers a blend of centralised oversight and decentralised participation, designed to adapt as the network evolves.

Will it truly be decentralised in the future? This approach remains to be seen, but it ensures that the ASI ecosystem remains resilient and responsive to the needs of its community while maintaining a clear strategic direction. One thing is for sure: as the ASI Alliance grows, its governance structure will continue to evolve.

ASI Tokenomics

The ASI token proposal sparked many conversations around the dilution of existing holders, questions about the scope of this merge/alliance and concerns about the real motivation behind this move of converting AGIX, FET, and OCEAN tokens into the new $ASI token, a single utility token that can be used across all three platforms, as well as within any new ASI applications developed post-merger.

So why all these concerns? Like with any new merger, or change, people will start questioning. It's in our nature, after all.

Token Conversion Ratios

The conversion process involved migrating the existing tokens AGIX, FET, and OCEAN into $ASI tokens at predefined ratios:

● FET tokens will convert to $ASI at a 1:1 ratio.

● AGIX tokens will convert to $ASI at approximately 0.433350:1.

● OCEAN tokens will convert to $ASI at approximately 0.433226:1.

These ratios were carefully calculated to ensure fairness, taking into account the fully diluted valuations of each token based on a 15-day average of market prices. This approach somehow mitigated the effects of daily price volatility and provided a balanced foundation for the token merger.

Token Migration and Blockchain Support

Post-merger, the $ASI token will be deployed on multiple blockchains, including FetchChain (Cosmos), Ethereum, Cardano, BNB Chain, and Matic Chain. The migration process involves hard-forking FetchChain to adopt the ASI name and increasing its maximum supply to accommodate the new token supply. Cross-chain bridges will be established to facilitate the exchange of $ASI tokens across these networks.

So despite the initial ‘banter’ on crypto Twitter, the proposal passed. This unified tokenomics framework is designed to drive collaboration and true innovation across the ASI Alliance, laying the groundwork for the next generation of decentralised AI technology.

The End Party

So, what does all this mean for us? The formation of the Artificial Superintelligence Alliance (ASI) and the creation of the ASI token signal a transformative leap in AI and blockchain advancement. We can all imagine a future where the capabilities of AI aren't confined to a handful of tech giants. Instead, they’re accessible to the broader public.

That’s exactly what the ASI Alliance is setting out to achieve. While the concept is still in its first stages, it’s clear that the possibilities are boundless. Three crypto protocols are challenging the monopolistic tendencies of ‘’Big Tech giants’’ and centralised corporations. Well, we are excited, nevertheless!

The Beginner's Guide To Account Abstraction

written by Daniel

How many of us have never lost a wallet seed phrase? Or how many of you haven't had a hard time explaining to non-crypto people what key private is and how to interact with a dApp?

These are some of the most common problems encountered by people starting in the world of cryptocurrencies, which keep this technology from being mass-adopted.

Many of these newbies see cryptos, and blockchain technology in general, as a complex and abstract universe of unique terms that, far from encouraging adoption, complicate everything.

In this context, account abstraction emerges, a technology that is beginning to gain adoption and seeks to bring the general population closer to the vibrant world of decentralised applications through crypto wallets with a powerful and simple interface for the user.

Ethereum, the dominant ecosystem of decentralised applications, has begun implementing the ERC-4337 standard. This standard unleashes the power of account abstraction, which allows a more user-friendly experience when interacting with apps.

Account abstraction could be the key to improving the user experience with crypto wallets by allowing them to use smart contracts as their accounts. Due to its relevance, this time, we want to discuss account abstraction and the benefits of its adoption in the crypto ecosystem.

Account Abstraction Fundamentals

In simple terms, account abstraction is a type of blockchain technology that, as noted above, allows users to use smart contracts as their accounts. It aims to enhance the management and interaction flexibility of Ethereum accounts (EOA accounts).

To understand the concept and relevance, we must refresh the principal concept of external accounts and smart contracts. So far, the user has been using typical wallets, like Metamask or trust wallet (to mention the most common ones), with a private key and a secret recovery phrase (seed phrase).

Traditional wallets under this concept are categorised as externally owned accounts (EOA) and have been the most widely used in the crypto ecosystem, even though they are not necessarily the easiest for new crypto users to use.

In addition to EOAs, Ethereum's conception initiated its architecture with the contract account (CA) model, which, as the name suggests, is controlled by smart contract code.

Thus, Ethereum (and the vast majority of second-generation blockchain networks) operates in its architecture under the dual account model, where assets get controlled by private keys and secret recovery phrases (EOA), and the logic of interaction with applications in the ecosystem are executed by smart contracts (confirm the transaction, pay fee gas, bridge assets, etc).

So, when you interact with a decentralised application (dApp) on Ethereum or Tron, for example, you do so via an external ownership account (EOA), and its execution on the blockchain is governed by smart contracts that allow you to initiate and pay for a transaction with an EOA.

The above methodology is the traditional way conceived in blockchain since smart contracts were introduced with Ethereum a decade ago so that users can interact with decentralised applications deployed in its ecosystem.

Now, this interactive process, which at first glance seems straightforward for older crypto players, is complex at the level of blockchain developers and new users who wish to take the "decentralised" route, which in most cases ends up discouraging the less technical, extending the learning curve and slowing down the adoption of the technology.

However, account abstraction wants to shorten this learning curve, allowing the technical details involved in web interaction to remain hidden from the ordinary user's perspective.

When introducing the account abstraction concept a year ago at WalletCon in Denver and EthCC in Paris, the goal was to transform the user experience on Web3 so that users don't have to worry about private keys, seed phrases, and gas prices. While Buterin introduced the concept in his EIP-2938 in 2020, it was not until then that wallets with account abstraction started to develop.

Thus, account abstraction wishes to combine aspects of the account types that make Ethereum alive (EOA and CA) to improve account security and the overall user experience on the blockchain, making the whole process smoother and simpler at the development level.

Benefits of Account Abstraction

One complication users commonly encounter when diving into crypto is undoubtedly taking efficient security measures to safeguard their private keys and wallet seed phrase.

As interest in crypto grows, so does the appetite of bad actors to get their hands on users' funds, especially those most oblivious to basic security measures. Thus, we observe unwanted access to users' funds with some frequency, even when they remain in noncustodial wallets.

Your funds will be compromised if you forget or allow your seed phrase to leak. Even failure to take precautions when interacting with smart contracts from unknown sources can compromise your crypto wallet and expose you to loss of funds.

Account abstraction allows more programmability to Ethereum accounts, thus creating a more intuitive experience and preventing these events from happening.

On the one hand, account abstraction allows us to introduce the concept of "social recovery", something unthinkable in this ecosystem until a few years ago. Vitalik Buterin and company, as the driving force behind the account abstraction technology, believe that if we want to reach another billion users in crypto, we should get as close to Web2 as possible.

Therefore, backing up the private key and keeping assets secure is possible by eliminating users' need to back up private keys and secret recovery phrases during wallet creation. Instead, they can enable account recovery through multi-factor authentication and social recovery via email or other wallets you own (guardians).

On the other hand, interaction with smart contracts through account abstraction is more efficient, increasing overall operability. While the private key is the only evidence for controlling assets in your wallet today, signature abstraction expands user interaction with smart contracts in decentralised applications by preventing the private key from being used to manage account assets. Instead, the private key is used only to authorise the execution of a smart contract.

In addition, similar to a shared bank account, account abstraction allows you to authorise third parties to "withdraw" assets for a specific expenditure or to delegate partial control functions of your wallet to trusted parties for more complex operations, thus emulating the multisignature scenarios currently employed in corporations for the management of shared funds.

Account abstraction also introduces the option of performing batch transactions, something not possible under the traditional EOA scheme due to the rigidity of Ethereum's blockchain architecture, for example.

Alternatively, it is possible to use nonces (a concept introduced in blockchain that guarantees the order and integrity of chain transactions to avoid replay attacks) to allow batch processing of multiple transactions, thus improving work efficiency.

Last but not least, account abstraction allows for better on-chain interaction. One of the big headaches for many native crypto users, and for those new to this ecosystem, is undoubtedly the payment of transaction fees.

In the case of Ethereum, any transaction requires the payment of a fraction of ETH to power the blockchain transaction, meaning that if you do not have enough gas, you can not interact or withdraw with the respective dApp.

The process of obtaining ETH can be a headache for those who do not have the necessary knowledge to acquire funds at a CEX and then deposit them into their crypto wallet, or on the other hand, in those nations where the penetration rate of the banking system is not high enough to acquire ETH with debit or credit cards through payment processors that act as fiat/crypto on-ramps.

With account abstraction, the smart contract account (CA) created by the user can use other ERC-20 tokens to pay the gas tariff on their behalf. Some projects can even achieve commission-free interaction at the user level by donating or sponsoring commissions through the available on-chain relay.

Currently, at the code level, with the recent upgrade proposal EIP-4844 implemented in Dencun, commission sponsorship is sought to be promoted. In addition, transaction fee (gas fee) 'sponsorship' is expected to be possible with Pectra Upgrade through EIP-7702, which hopes to introduce substantial changes to the externally owned account (EOA) model to execute similar smart contract operations temporarily within a transaction.

In addition to the benefits mentioned above, account abstraction offers quantum computing resistant signatures and the flexibility to install a so-called "dead man's switch," which is essentially a rule or function that allows automatic transfers of ownership in case the original owner has died or is unable to access his funds.

ERC-4337 and its Implementation

One of the principal components in the account abstraction system is the ERC-4337 standard, which aims to implement this technology without hardforks or changes to the consensus layer.

ERC4337 is a standard for smart contract wallets, also known as smart accounts.

The idea behind this standard is to go beyond EOAs and enable the creation of smart contract wallets that can determine their logic for validating and executing transactions. With ERC-4337, you can create contracts and complete transactions with a single account.

The key features of the system are:

⦁ Users make pseudo-transactions called UserOperations (UserOps)

⦁ Bundlers bundle batches of UserOps into on-chain transactions

⦁ Apps can use Paymasters to pay for gas on behalf of their users

Despite multiple attempts to implement account abstraction in Ethereum, it was not until 2023 that EIP-4337, which enables the token standard of the same name, made this concept a reality.

The ERC-4337 allows developers to write custom smart contract wallets with ease. It also enables easy-to-use cryptocurrency wallets that could significantly expand adoption with user-friendly features.

Some essential aspects of ERC-4337 are:

● ERC-4337's flexibility allows it to integrate into several Ethereum Virtual Machine (EVM)-compatible blockchains.

● The ERC-4337 standard enables the creation of smart contract wallets, improving accessibility in the Ethereum ecosystem.

● ERC-4337 introduces several essential functions that facilitate account abstraction in Ethereum. These functions include Bundler and EntryPoint, which enable the programmatic execution of smart contract wallets.

There are several examples today of how the implementation of ERC-4337 is transforming the user experience in the Ethereum ecosystem, making it more accessible and secure.

Thanks to the ERC-4337 standard, some examples of account abstraction are beginning to emerge, from multi-signature systems, where a transaction is executed if it is signed by two or more users, to simplified payments, where users make payments without worrying about gas prices.

Examples of crypto wallets with account abstraction (AA Wallets)

Despite the short implementation time of ERC-4337 to activate the account abstraction functionality in Ethereum, some wallets already allow the activation of the programmatic function of contracts. Let's see which ones they are.

● Argent: A wallet developed by the Starknet team (L2) that enables social recovery where users can designate addresses of friends or family as recovery methods. It uses ERC-4337 to facilitate asset management without relying on seed phrases.

● Ambire: A non-custodial, open-source wallet for web3, implementing Account Abstraction technology. Its hybrid wallet is the first to support EOA (Externally Owned Accounts) and smart accounts, enhancing security and user experience in managing digital assets.

● PatchWallet: Patch Wallet is an account abstraction wallet that allows users to use their social media platforms, such as X and Email, as cryptocurrency wallets. It facilitates token reception via their social identifiers. In its experimental phase, it can also send airdrops to followers and fans using these identifiers. It also allows users to accept tokens and NFTs and withdraw them to an external cryptocurrency wallet, simplifying the digital asset management process.

● Avocado: is an AA (Account Abstraction) wallet designed to simplify and increase interaction security within the web3 ecosystem. The application eliminates the need to manage different native gas tokens, using USDC for all gas payments. It also uses features such as two-factor authentication (2FA) and allows the execution of DeFi strategies, otherwise not possible with external accounts (EOA), optimising position management.

● Candide Wallet: a cryptocurrency wallet focused on selfmanagement and censorship resistance, facilitating full user ownership through on-chain recovery without needing seed phrases. It also allows network fee payment with stablecoins, optimising costs for Ethereum users.

● Soul Wallet: Soul Wallet is an open-source social recovery wallet designed specifically for Ethereum and its L2s. The social recovery feature allows users to recover their wallets through trusted individuals instead of using traditional recovery phrases. Using passkeys facilitates signing transactions securely, replacing the need for private keys, and allows gas fee payments using ERC-20 tokens, improving the accessibility of transactions.

In addition to the AA wallets mentioned above, it is worth noting other efforts to spread the implementation of account abstraction In Ethereum:

● Nervos:CKB-VM an abstract virtual machine

● Etherspot - Account Abstraction SDK since 2019

● Biconomy - SDK for creating AA wallets and submitting transactions

● StackUp - Account abstraction infrastructure and bundler services.

● Safe - Smart contract accounts with AA support.

A market of opportunities

Account abstraction generates significant development within the Ethereum ecosystem while taking cues from the largest blockchain network when referring to decentralised applications (dApps).

In parallel to the push for a rollup-centric roadmap for Ethereum, 'smart accounts' are increasingly gaining ground to drive mass adoption of blockchain technology.

To put the above into context, since August 2023, five months after the deployment of ERC4337 on Ethereum mainnet, the number of active smart accounts has increased considerably, especially in layer2 solutions such as Base and Polygon.

A little over a year after the implementation of ERC-4337 functionality, Base dominates the number of weekly active smart accounts with 70.29% of the market share, followed by Polygon with 28.10%. Arbitrum, Optimism and Avalanche complement this nascent market.

As of today, more than 12 million smart accounts have been created on average, and Paymasters have covered more than $3.247 million in gas fees from users using account abstraction on Ethereum and other blockchain solutions such as Avalanche, Polygon, Optimism, and Base.

In recent weeks, the dominant pseudo-transactions on smart accounts have been in the gaming sector, with more than 70% of the market share, according to Bundlebear data. However, transactions involving ERC-20 tokens have dominated among users using account abstraction.

In recent weeks, the game sector has been dominated by applications such as BlockLords, a strategy game available on both the Epic Games Store and Steam. This demonstrates that using ERC-4337 can drive mass adoption through the simplification of web transactions3.

Moreover, Bundlers' gains amid a bear market are encouraging for those looking to profit from the opportunities offered by account abstraction.

There is no doubt that as more projects emerge with the adoption of the ERC-4337 standard, account abstraction will produce a circular economy that may present opportunities for investors of all sizes who closely follow each of the players adopting this technology in mainstream networks such as Ethereum and Avalanche, as well as in some layer2 solutions (Optimism, Arbitrum, Base, Polygon, etc).

Flexibility in asset management and integration with traditional practices are undoubtedly factors that can drive crypto mass adoption as the industry embraces account abstraction, allowing the general public to change perceptions about cryptocurrencies.

It is undeniable that account abstraction has the potential to transform the way users interact with their digital wallets on Web3, making them more accessible, secure and functional, which can undoubtedly be the definitive step towards the widespread adoption of decentralised applications and cryptocurrencies in general.