News

It’s Time for Cryptocurrencies to Become Real

Published

5 months ago

2 July, 2024

It's Time for Cryptocurrencies to Become Real

Few things excite your average crypto enthusiast like a brand new crypto abbreviation to rally around. In this cycle, the DePIN banner is flying highand compared to some of the fads of the past, this one is actually pretty healthy. Not only that, it’s exciting, has a lot of potential, and marries Web3 and the real world in a way that actually makes sense… All while being a beast that the mainstream crypto world isn’t prepared for.

Why? Before we dive deeper, let’s quickly highlight the “what.”

For now, many people, even crypto natives, raise their eyebrows at the mention of DePIN, as the term has yet to be fully assimilated. So, for clarity, DePIN stands for Decentralized Physical Infrastructure Networks, or in layman’s terms, real-world applications. DePINs leverage tokens to incentivize people to set up hardware to provide and render real-world services. Think car sharing, peer-to-peer solar trading, 5G or WiFi connectivity, road mapping, EV charging, smartphone environmental data collection, and other exciting use cases.

This opinion piece is part of CoinDesk’s new “DePIN Vertical” exploring the future of decentralized infrastructure.

As an example, consider Silencewhich allows people to record noise pollution levels with their smartphones and earn token rewards for doing so. Another DePIN, Wing bitesuses tokens to incentivize people to install private antennas that track aircraft location data transmissions. For the history buffs among us, the fundamental model behind DePINs is not new; only the term, coined by Messari in late 2022, is actually relatively recent.

At first, the name took its a good dose of satisfied smiles — no big deal, memes are the Web3 way — but its introduction has sparked a powerful movement imbued with the promise of change. And that change, interestingly enough, goes both ways, not only targeting how we manage and earn from devices, but also making us, the Web3 natives, rethink how we think about Web3.

Bringing cryptocurrency into the real world is an exciting idea, if not a unique opportunity. It’s what the masses have been waiting for: real, tangible use cases for blockchain that people actually need and use on a daily basis. The downside is that this unique opportunity requires a bit more effort than launching yet another dog-themed memecoin, and it has many of its own specifics.

So what makes DePINs special? To answer this question, let’s imagine a hypothetical DePIN that lets you earn tokens for measuring local temperatures via a smart thermometer. And this is where we run into one of the many, many elephants in the room: hardware.

How do we deal with thermometers? Do we let users connect third-party devices that can record and send data? Sure, and let’s applaud our open source spirit while we’re at it. But let’s not forget to write code that will support the widest variety of smart sensors and have a simple user interface that will make adding them a breeze. And that’s no easy task, mind you.

The alternative is to build the hardware ourselves, which brings us to another beast. Now, we are no longer just building a dApp, we are also building a custom piece of hardware and taking the joys of manufacturing, warehousing, and shipping. Of course, we can always buy a white-label solution, hire contractors, and do a bunch of other reasonable things, all of which brings us to our next truncated beast: the token economy.

You see, the price of all this has to be taken into account in the token economy. Whether or not we expect the community to buy a thermometer from us, we have to be aware of this investment when we set rewards and incentives. After all, people will expect a return on their hardware investment, and quite reasonably so. And with that, we are no longer writing the token economy for people, like regular dApps do, we are writing it for people and for the machines that generate value, machines that are becoming smarter by the day and are transforming from simple tools into economic agents.

See how significant this distinction is? And that’s just the supply side so far.

Now, let’s look at the other side of the equation. A crypto token can live off the hype, memes, and pure wild speculation that we know Web3 for. A DePIN can’t. In our case, it needs weather companies, researchers, and anyone else willing to buy the temperature data we collect. In other cases, it’s devices using its IoT connectivity network or drivers looking for charging spots; the bottom line is that DePINs need real demand for their real service. They need to push beyond the Web3 echo chamber and, quite often, even compete with Web2 rivals.

The good news is that they are. up to the challenge. When armed with a solid idea and execution, DePINs have several unfair advantages over their Web2 incumbents. For example, they can scale their way up, fast, and can undermine virtually any centralized competitor. You read that right; Uber, the weakest of the weak, may have found its match. The bad news is that cryptocurrencies aren’t as used to this business model as they think. So, strong corporate ties are a must for any aspiring DePIN ecosystem, as they help secure this demand and with various other headaches, such as hardware production.

Let’s not forget that we need to win hearts and minds too. DePINs need to appeal to a whole new audience, people who are an afterthought for most crypto projects. Think IoT and tech geeks, but also anyone who can host and run hardware, from drivers (them I really love their world mapping DePINs) to small businesses. This is no easy task, from a marketing perspective, and this further distinguishes DePINs as a unique Web3 industry.

Of course, none of this is fatal, as the industry continues to grow, but it does represent a challenge that requires a new mindset, architecture, and language.

Mindset: More aware of the real-world challenges DePINs may face and more adept at accounting for obstacles along the way, including things like actual product marketing and user experience, to compete with Web2 rivals.

Architecture: Combining smart contracts with edge computing and peer-to-peer device interactions, taking into account real-world challenges.

Language: More accessible to non-Web3, those who haven’t spent the last few years chasing cryptocurrencies, language of business cases and efficient solutions.

The beauty of DePIN is that it gives us all the power to judge cryptocurrency based on its real-world utility. By tapping into real supply and demand, DePINs give us all clearer metrics to follow. How many devices are on a DePIN? How many people are using DePIN’s services? Are their pricing and services better than Web2 rivals? It’s no longer about speculation, it’s about having a positive impact on the world. This is what truly sets DePINs apart from the entire Web3 space as a unique and autonomous industry. Their Layer 1 support backbones should be as cautious about this as the broader Web3 community if we want this space to finally lead to real-world blockchain adoption, this time for real.

Note: The views expressed in this column are those of the author and do not necessarily reflect those of CoinDesk, Inc. or its owners and affiliates.

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Cryptocurrency Price August 1: Bitcoin Dips Below $65K; Solana, XRP Down Up To 8%

Published

4 months ago

1 August, 2024

BlockChainBulletin Staff

Major cryptocurrencies fell in Thursday trading following the Federal Reserve’s decision to keep its key interest rate unchanged. Overnight, the U.S. Federal Reserve kept its key interest rate at 5.25-5.5% for the eighth consecutive time, as expected, while also signaling the possibility of a rate cut at its next meeting in September. The unanimous decision by the Federal Open Market Committee reflects a continued wait-and-see approach as it monitors inflation trends.

CoinSwitch Markets Desk said: “Bitcoin has fallen below $65,000 after the US Federal Reserve announced it would keep interest rates unchanged. However, with markets now anticipating rate cuts at the next Federal Reserve meeting in September, the outlook for a Bitcoin rally by the end of the year has strengthened.”

Meanwhile, CoinDCX research team said: “The crypto market has plunged after the Fed decision. Tomorrow’s US unemployment rate announcement is expected to induce more volatility, with the ‘actual’ figure coming in higher than the ‘expected’ one, which is positive for cryptocurrencies.”

At 12:21 pm IST, Bitcoin (BTC) was down 3.2% at $64,285, while Ethereum was down nearly 4.5% at $3,313. Meanwhile, the global market cryptocurrency The market capitalization fell 3.6% to around $2.3 trillion in the last 24 hours.

“Bitcoin needs to clear its 200-day EMA at $64,510 to consolidate further. Otherwise, a retest of $62,000 could be in the cards,” said Vikram Subburaj, CEO of Giottus.

Altcoins and meme coins, such as BNB (3%), Solana (8%), XRP (5.7%), Dogecoin (5%), Cardano (4.6%), Avalanche (4.3%), Shiba Inu (3.8%), Polkadot (3.4%), and Chainlink (4%) also saw declines.

The volume of all stablecoins is now $71.64 billion, which is 92.19% of the total cryptocurrency market volume in 24 hours, according to data available on CoinMarketCap. Bitcoin’s dominance is currently 54.99%. BTC volume in the last 24 hours increased by 23.3% to $35.7 billion.

(Disclaimer: Recommendations, suggestions, opinions and views provided by experts are personal. They do not represent the views of the Economic Times)

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Altcoins WIF, BONK, RUNE, JUP Down 10% While Bitcoin Drops 4%

Published

4 months ago

1 August, 2024

BlockChainBulletin Staff

Altcoins WIF, BONK, RUNE and JUP drop 10% as Bitcoin recedes 4%

Altcoins dogwifhat, Bonk, THORChain, and Jupiter have suffered losses of more than 10%, while Bitcoin is down 4% in the last 24 hours.

After a period of relative calm yesterday, July 31, Bitcoin (BTC) price action has seen a drastic change as the cryptocurrency dropped by more than $3,500, bringing its value to $63,300. At the same time, altcoins mirrored this trend, with the total value of liquidated positions rising to nearly $225 million over the course of the day.

Initially, the week started on a positive note for Bitcoin, which reached its highest point since early June, hitting $70,000. However, this peak was short-lived, as it was quickly rejected, leading to a substantial decline, with Bitcoin falling below $65,500.

The cryptocurrency managed to regain some stability, trading comfortably at around $66,800. However, following a Press conference According to Federal Reserve Chairman Jerome Powell, the value of Bitcoin has fallen again to $64,300, down more than 3% in 24 hours.

BTC Price Chart 24 Hours | Source: crypto.news

The recession coincided with a relationship from the New York Times stating that Iran had called for retaliatory measures against Israel following the assassination of Hamas leader Ismail Haniyeh in Tehran, increasing the risk of further conflict in the region.

Meanwhile, on the economic front, the Federal Reserve decided to keep its benchmark interest rates in place, offering little information on a planned September rate cut. Powell also hinted that while no concrete decisions have been made on the September adjustment, there is growing consensus that a rate cut is likely.

Amid Bitcoin’s decline, altcoins have suffered even more significant losses. For example, dogwifhat (Wife) saw a 12.4% drop and (DISGUST) has suffered a 10% drop. Other altcoins such as THORChain (RUNE) also fell by 10%, while Jupiter (JUPITER) and the Ethereum naming service (ENS) decreased by 8% and 9% respectively.

Among the largest-cap cryptocurrencies, the biggest losers are Solana (SOL) with a decrease of 8%, (Exchange rate risk) down 6%, Cardano (ADA) down 4%, and both Ethereum (ETH) and Dogecoin (DOGE) recording a decrease of 4.4%.

Data from CoinGlass indicates that approximately 67,000 traders have been negatively impacted by this increased volatility. BTC positions have seen $61.85 million in liquidations, while ETH positions have faced $61 million. In total, the value of liquidated positions stands at $225.4 million at the time of writing.

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Riot Platforms Sees 52% Drop in Bitcoin Production in Q2

Published

4 months ago

1 August, 2024

BlockChainBulletin Staff

Riot Platforms posts 52% decrease in Bitcoin production for Q2

Bitcoin mining firm Riot Platforms has released its second-quarter financial results, highlighting a decline in cryptocurrency mined due to the recent halving.

Colorado-based Bitcoin (BTC) mining company Riot platforms revealed its second quarter financial results, highlighting a significant reduction in mined cryptocurrencies attributed to the recent halving event that took place in early April.

The company reported total revenue of $70 million for the quarter ended July 31, a decline of 8.7% compared to the same period in 2023. Riot Platforms attributed the revenue decline primarily to a $9.7 million decrease in engineering revenue, which was partially mitigated by a $6 million increase in Bitcoin extraction income.

During the quarter, the company mined 844 BTC, representing a decline of over 50% from Q2 2023, citing the halving event and increasing network difficulty as major factors behind the decline. Riot Platforms reported a net loss of $84.4 million, or $0.32 per share, missing Zacks Research forecast a loss of $0.16 per share.

Halving increases competitive pressure

The Colorado-based firm said the average cost of mining one BTC in the second quarter, including energy credits, rose to $25,327, a remarkable 341% increase from $5,734 per BTC in the same quarter of 2023. Despite this significant increase in production costs, the firm remains optimistic about maintaining competitiveness through recent deals.

For example, following the Recent acquisition Cryptocurrency firm Block Mining, Riot has increased its distributed hash rate forecast from 31 EH/s to 36 EH/s by the end of 2024, while also increasing its 2025 forecast from 40 EH/s to 56 EH/s.

Riot Platforms Hashrate Growth Projections by 2027 | Source: Riot Platforms

Commenting on the company’s financials, Riot CEO Jason Les said that despite the halving, the mining company still managed to achieve “significant operational growth and execution of our long-term strategy.”

“Despite this reduction in production available to all Bitcoin miners, Riot reported $70 million in revenue for the quarter and maintained strong gross margins in our core Bitcoin mining business.”

Jason Les

Following its Q2 financial report, Riot Platforms shares fell 1.74% to $10.19, according to Google Finance data. Meanwhile, the American miner continues to chase Canadian rival Bitfarms, recently acquiring an additional 10.2 million BITF shares, increasing its stake in Bitfarms to 15.9%.

As previously reported by crypto.news, Riot was the first announced a $950 million takeover bid for Bitfarms in late May, arguing that Bitfarms’ founders were not acting in the best interests of all shareholders. They said their proposal was rejected by Bitfarms’ board without substantive engagement.

In response, Bitfarms She said that Riot’s offer “significantly understates” its growth prospects. Bitfarms subsequently implemented a shareholder rights plan, also known as a “poison pill,” to protect its strategic review process from hostile takeover attempts.

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Aave Price Increases Following Whales Accumulation and V3.1 Launch

Published

4 months ago

1 August, 2024

BlockChainBulletin Staff

Aave price surges amid whale accumulation and V3.1 launch

Decentralized finance protocol Aave is seeing a significant spike in whale activity as the market looks to recover from the recent crash that pushed most altcoins into key support areas earlier this week.

July 31, Lookonchain shared details indicating that the whales had aggressively accumulated Aave (AAVE) over the past two days. According to the data, whales have withdrawn over 58,848 AAVE worth $6.47 million from exchanges during this period.

In one instance, whale address 0x9af4 withdrew 11,185 AAVE worth $1.23 million from Binance. Meanwhile, another address moved 21,619 AAVE worth over $2.38 million from the exchange and deposited the tokens into Aave.

These withdrawals follow a previous transfer of 26,044 AAVE from whale address 0xd7c5, amounting to over $2.83 million withdrawn from Binance.

AAVE price has surged over 7% in the past 24 hours amid buy-side pressure from these whales. The DeFi token is currently trading around $111 after jumping over 18% in the past week.

Recently, the price of AAVE increased by over 8% after Aave founder Marc Zeller announced a proposed fee change aimed at adopting a buyback program for AAVE tokens.

Aave v3.1 is available

The total value locked in the Aave protocol currently stands at around $22 billion. According to DeFiLlamaApproximately $19.9 billion is on Aave V3, while the V2 chain still holds approximately $1.9 billion in TVL and V1 approximately $14.6 million.

Aave Labs announced Previously, Aave V3.1 was made available on all networks with active Aave V3 instances.

V3.1 features improvements that are intended to improve the overall security of the DeFi protocol. The Aave DAO governance has approved the v3.1 improvements, which also include operational efficiency and usability for the network.

Meanwhile, Aave Labs recently outlined a ambitious roadmap for the projectwith a 2030 vision for Aave V4, among other developments.

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