Speculation mounts over Polygon’s major announcement at the up and coming zk Summit

Ethereum layer-2 scaling platform Polygon is hosting the zk Summit next Thursday. The firm bills the event as a space to discuss zero-knowledge technology to examine its use in advancing the cryptocurrency sector.

Join the leading lights of the Zero-Knowledge space for a discussion about the future of zk-STARKs and applications of ZK proofs.”

Concluding the tweet thread, Polygon teased a major announcement to be revealed during the Summit – building speculation over what this could be.

4/4 And one more thing…

#Polygon will be making a major announcement during the summit.

Save Your Spot Now: https://t.co/eQxFL69MkP to witness the exciting announcement!

— Polygon | $MATIC – We’re hiring! (@0xPolygon) December 1, 2021

What is zero-knowledge?

Zero-knowledge refers to a verification method in which one party (the prover) can prove to another (the verifier) that a statement is true without revealing information about said statement.

“In a zero-knowledge proof system, the prover is able to prove to the verifier that they have the knowledge of a particular piece of information (such as the solution to a mathematical equation) without revealing the information itself.”

When combined with other technologies, such as zk-SNARKs, in which the prover and verifier do not interact, the bedrock for enhanced privacy and security is in place.

Similarly, combined with rollups, in which transactions are batched together and submitted to the mainchain via a single transaction, can improve scalability by cutting the number of transactions needed to be processed.

All in all, considering Ethereum’s scaling problems and the subsequent knock-on effect of a network at capacity on gas fees, Polygon’s research and development in this area are long overdue.

Polygon hosts the zk Summit

The schedule for the Polygon hosted zk Summit on December 9 is as follows:

16:00 GMT – Introduction featuring the Polygon co-founders Sandeep Nailwal, Jaynti Kanani, and Mihailo Bjelic.
16:20 GMT – Major announcement reveal.
17:00 GMT – Polygon Nightfall – a privacy-focused rollup solution.
17:30 GMT – Polygon Miden – an Ethereum Virtual Machine rollup solution.
18:00 GMT – Polygon Hermes – another rollup solution, but this time based on running on the Hermes Network, which integrated with Polygon in August in a $250 million deal.
19:00 GMT – Panel discussion.

The event promises live demonstrations of the technology in action. But the most enticing item in the schedule is the major reveal. Aside from the obvious, something concerning zk technology, speculation is rife surrounding how this relates to Polygon.

Since mid-November, $MATIC has been trending upwards, posting 16% gains on Wednesday off the back of news 21Shares is listing a $MATIC based Exchange-Traded Product (ETP) on Euronext Paris in EUR, and Euronext Amsterdam in USD.

21Shares is the world’s largest issuer of crypto ETPs, while Euronext is a pan-European stock exchange operating from various European capitals, those being Amsterdam, Brussels, Dublin, Lisbon, Milan, Oslo, and Paris.

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Hotbit Users Can Earn Up to 60% APY With BixBcoin

BixBcoin holders can now earn 60.60% APY on their holdings on Hotbit. The digital asset which had been listed on the exchange was added to the Hotbit Investment Panel. Users who sign up for this Incentive Plan can earn high interest on their holdings for 90 days. It is one of the many earning events that BixBcoin has participated in to bring good returns to its investors.

The token is hosted on its own blockchain, BIXB blockchain, which serves as the basis of the project’s strong structure. Being hosted on its own blockchain gives the token a unique edge over thousands of tokens in the market. This makes BixBcoin one of the most promising projects in the crypto market.

BixBcoin also offers a variety of features for its users ranging from wallets, the exchange, and decentralized finance (DeFi) services. The multi-platform financial service helps to facilitate fast and safe transactions without interference or restrictions from any government.

BixBcoin Token

The BixBcoin token has been a high performer for its investors after it launched. There are a total of 3 million BIXB tokens and transactions are recorded using a distributed ledger. The token launched in 2020 at a price of $25, a low price considering the promise of the project. It didn’t take too long for the market to catch up and push the price of the token towards an all-time high of $260.

BixBcoin also provides a secure wallet for holders of the token known as ‘BIXB WALLET’, available for download on Android, Windows, Web, and Linux. It features some of the lowest transaction fees across BixBcoin wallets, exchange, and all other supported platforms.

Perks of BixBcoin

BixBcoin allows holders to earn through a variety of ways. One of these is through providing computational power for confirming transactions on the blockchain. Every miner earns up to 0.1 BixBcoin for helping to solve complicated mathematical calculations by allocating computing power to the mining pool.

In addition, investors are also able to take advantage of the Loanypto lending protocol that operates on the blockchain. Loanypto features a creative and user-friendly interface that allows for easy accessibility to the platform. With Loanypto, BixBcoin holders can secure low-interest loans. Furthermore, holders can earn up to 5% APY on their collateral, while a bump in price helps to increase the borrower’s profit.

BixBcoin tokens are also available to trade on BixBcoin’s own exchange, BIXB EXCHANGE, where they have access to USDT, BTC, and FIAT trading pairs. Also available to trade on Coinsbit and Hotbit exchanges with the same trading pairs.

Is BixBcoin Legit?

BixBcoin is listed on some of the most reputable websites in the crypto space. These websites feature a rigorous vetting process which includes the provision of evidential documents with transparent and accurate information about the team members to be reviewed by experts and auditors on each site. BixBcoin has gone through this process and has been listed on sites such as CoinMarketCap, CoinGecko, CryptoCompare, etc.

BixBcoin’s source code is also available for all to see via its GitHub repository. The open-source project has guaranteed and maintained a high level of transparency and stability since its launch.

Since BixBcoin token supply is capped at 3 million, it is a valuable asset due to this scarcity. The project has one of the lowest supplies in the market, an important criterion for valuing a crypto project, placing it among the most unique and precious digital assets.

To learn more about BixBcoin, visit https://bixbcoin.com/.

 

Industry Executives Head to Congress to Clarify Crypto

Congresswoman Maxine Waters, Chairwoman of the House Committee on Financial Services, announced that the hearing will take place on Dec. 8.

Titled “Digital Assets and the Future of Finance: Understanding the Challenges and Benefits of Financial Innovation in the United States,” the assembly aims to demystify some of the misconceptions lawmakers have regarding the crypto industry and its underlying technology.

It will be attended by a number of prominent crypto industry leaders, including Circle CEO Jeremy Allaire, who welcomes regulation, Sam Bankman-Fried from FTX, Bitfury boss Brian Brooks, Paxos CEO Chad Cascarilla, Denelle Dixon from the Stellar Development Foundation, and Alesia Haas, CFO at Coinbase.

Coinbase Global CEO, Brian Armstrong, is notably absent as the company was recently embroiled in a regulatory battle over its crypto lending services. There are also no representatives from Tether, the world’s most popular stablecoin, which is also in the crosshairs for policymakers.

Clarifying Crypto

Congress has taken a deeper interest in the crypto asset industry as it now cannot be ignored after surpassing $3 trillion market capitalization last month.

On Dec. 2, Chad Cascarilla spoke on CNBC’s “Squawk on the Street” to elaborate on what the hearing may contain. He said that the first angle is how is our financial future going to be different and how this technology is changing lives. He then went on to speak about the national currency:

“Also it is going to be about the dollar, the dollar is changing and the type of product that the dollar represents is shifting. How people use it, what their daily lives look like and why its important for the U.S. to maintain its financial primacy in order to be able to adapt to the changing world.”

Crypto executives will testify before the House Financial Services Committee next week. @PaxosGlobal CEO & witness Chad Cascarilla joined us this morning to discuss the regulation he’d like to see in the space. #Bitcoin $ETH $USDP@CNBC pic.twitter.com/5YQqKkfX7N

— Squawk on the Street (@SquawkStreet) December 2, 2021

Eyes on Stablecoins

Congress has already held several meetings to address the crypto industry. In late November, head of the U.S. Senate Banking Committee Sherrod Brown sent a letter to stablecoin CEOs demanding more information on their issuance and redeeming processes.

Stablecoins have become a growing concern for U.S. regulators since their reserves and backing have yet to be officially audited. In early November, the Treasury Department recommended that stablecoins were subject to “appropriate federal oversight.”

Featured Image Courtesy of SeeNews

Bank of America now says the crypto metaverse is a ‘massive opportunity’

A strategist at the Bank of America, Haim Israel, in a recent interview has declared that the new buzzword in the crypto space, Metaverse, holds a lot of potential for the crypto industry and it could be the niche that would drive the global adoption of the space.

Bank of America sees massive opportunities in metaverse

According to Israel, the metaverse would create a massive opportunity for blockchain technology, and it could potentially lead to the use of crypto assets in mainstream financial transactions. Though he added that stablecoins like Tether and USDC would enjoy more patronage than private tokens which are very volatile.

In his words:

“I definitely believe this is a massive, massive opportunity. You need the right platforms… that are definitely going to be a big opportunity for this entire ecosystem…we’re going to start using cryptocurrencies as currencies.”

The strategist continued that he expects the large traditional financial companies to begin entering the space the moment crypto assets gain wider adoption and usage in the metaverse. He stated that there would be “a lot of collaboration between the two.”

What is the hype surrounding “Metaverse?”

In recent times, the word “Metaverse” has piqued the interest of crypto enthusiasts and the world generally after Facebook revealed that it was changing its name to “Meta” and refocusing its business into the space.

This rebranding by the top social media platform has drawn interests of the wider tech community to the limitless potential that the space holds.

In one of our earlier reports, we revealed that Grayscale stated that the metaverse has the potential of becoming a $1 trillion industry. Already, a number of institutional investors and retail investors around the world have begun investing in projects in the space.

DappRadar confirms this in its own report where it revealed that metaverse-related projects have been enjoying quite a lot of attention recently. According to the report, virtual properties like lands and real estates grossed over $100 million within the last seven days.

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Analysis: How Polkadot (DOT) could become Blockchain 3.0

Well, not always, but one of the biggest problems is the lack of interoperability, where it is impossible or inefficient for users on one blockchain to make transactions or transfer data with another. 

Just as the ARPANET became the internet we know today with the development of a TCP/IP, a handful of projects aim to be the connectivity technology that makes the whole blockchain ecosystem a seamless experience. 

Polkadot is one example.

Gavin Wood, its most well-known co-founder, was also the co-founder of Ethereum and authored the yellow paper (a more technical version of a whitepaper). 

As the project officially launched its much-anticipated first parachains slot auction (also called a parachain auction) on Nov. 12, now is a great time to understand what it aims to accomplish and how. 

Footprint Analytics: Polkadot Current base data shows (since November 2021)Footprint Analytics: Polkadot Token Price Growth by Day

About Polkadot

Polkadot, founded in 2015, is positioned as a next-generation blockchain protocol capable of connecting multiple dedicated blockchain networks into a common network, allowing them to operate seamlessly at scale.

It is a blockchain that can be composed of multiple chains and uses a scalable heterogeneous multi-chain system. 

Polkadot attempts to address the issues of scalability, speed, and cost by allowing for more personalized blockchains, interoperability and upgrades between chains, and self-governance of chains. In addition to supporting token transfers, Polkadot also supports the interchange of data between different chains.

Polkadot has three main network infrastructures.

Relay Chain: Called Polkadot’s master chain, it’s responsible for network sharing security, consensus and cross-chain interoperability, which can be thought of as a plug outlet with 100 slots.
Parachains: Processing data operations and transaction information, these can be thought of as different appliances connected to the plug outlet. These allow the blockchain to be expanded and solve the performance issues of the blockchain.
Bridges: These allow parachains and parathreads to connect and communicate with external networks like Ethereum and Bitcoin.

Polkadot was created to address the joint interaction of separate chains of value silos on Etheruem, similar to a Cross-Chain Bridge.

How Polkadot differs from Ethereum

Blockchain 1.0 essentially provided computing power for bookkeeping with a decentralized ledger, but there was no ecosystem. It was basically just Bitcoin.

Then Blockchain 2.0 emerged as Ethereum introduced programmable properties and smart contracts. However, there were problems like congestion and high transaction fees. 

To solve these problems and explore new possibilities, projects in so-called Blockchain 3.0 are now booming, including Ethereum 2.0,  Layer2 Rollups and other ecosystems.

Interoperability projects realize that blockchain is not a zero-sum game and that connecting these various proliferating projects and chains is inevitable. Gavin Wood set up Polkadot to create a pivotal core where different blockchains can interact, which could also help solve Ethereum’s network congestion problem.

Now, let’s get technical to see the main differences between Polkadot and Ethereum.

Sharding: Ethereum 2.0 will have 64 sharding chains by 2022 with the same transition function (STF) while Polkadot uses heterogeneous sharding, or unique STF  where each parachain can be customized and optimized for each case, running in parallel rather than the same across all shards.
Upgrades: Ethereum 2.0 follows the regular hard fork process (i.e. old and new versions are not compatible), while Polkadot uses the Wasm (WebAssembly) metaprotocol, the first to implement a chain upgrade without a hard fork.
Governance mechanisms: Ethereum 1.0 relies primarily on off-chain governance, whereas Polkadot network development is a DOT holder decision, with an overall reduced scope relative to the Ethereum governance mechanism.
Consensus mechanism: In order to increase efficiency and save resources, Ethereum 1.0 used the PoW mechanism and is now Ethereum 2.0 moving to PoS, which requires a lot of computing power as well as resources without being a game-changer. Polkadot uses the NPoS mechanism (Nominated Proof of Stake) to select verifiers from a smaller set, so it is cheaper and more efficient compared to Ethereum.

The current Polkadot ecosystem

Footprint Analytics: Polkadot Token Price

As seen in the DOT token price trend, Polkadot was hot at the beginning of August as the parachain slot auctions launched, which required pledging a large amount of DOT. This expanded the Polkadot ecosystem. According to Polkaproject’s statistics, there are now more than 510 projects, in categories including infrastructure, wallets, stablecoins, DApps, and more.

Some of the most popular projects are Kusama, Acala, Moonriver, Phala Network, and Parallel Finance. 

Let’s take a look at Kusama and Acala.

Kusama is Polkadot’s canary network

Kusama is known as a canary network, or test network, before Polkadot went live. It is like an earlier, unaudited and unapproved version of Polkadot. It was introduced to test the Polkadot—approximating the real Polkadot environment—to ensure the security of the Polkadot network.

Footprint Analytics: Kusama TVLFootprint Analytics: Kusama Market Cap

According to Footprint Analytics, Kusama’s TV  surged from $580,000 to $2.03 million on Sept. 22, an increase of 250% in one day, with the current TVL remaining above $3 million. Kusama’s growth has a lot to do with the development of the Polkadot ecosystem, where heterogeneous cross-chain information interactions are becoming increasingly popular.

Kusama serves as a testing ground where participants can build and deploy parachains in the Kusama network or test Polkadot’s governance, equity pledge and validation functions. 

It allows future Polkadot network participants to practice in advance. New projects on Polkadot have unknown risks, and all projects involving protocols and operating environments will be tested on the Kusama network first. 

Acala is the center of DeFi on Polkadot

Acala is a Polkadot parachain optimized for DeFi, the economic hub of Polkadot, and won the first auction slot. It has raised two rounds of funding totaling $8.5 million, led by Polychain and Pantera Capital.

Acala is positioned as a decentralised financial centre and stablecoin platform, providing substantial support for cross-blockchain liquidity, stability and applications.

Acala has completed three sectors:

Decentralized overcollateralized stablecoin system: Based on the Horizon protocol, generating a stablecoin, AUSD, through multi-asset over-collateralization, similar in principle to MakerDAO’s DAI.
Release of pledged liquidity: For users of DOT/KSM pledged for mining, the Homa protocol allows the exchange of DOT/KSM for Liquid DOT/Liquid KSM, a token that can be traded freely and other financial activities, for example, to alleviate the opportunity costs associated with pledged tokens when the coin price plummets during the pledge period.
Decentralized exchange with automatic market maker mechanism (AMM DEX): Similar to Uniswap and Pancakeswap.

While Acala has a grand vision that resembles MakerDAO’s, it will take some time for it to create a full DeFi ecosystem chain.

Polkadot’s unique facility for parachain slot auctions

Polkadot’s token DOT price broke new highs after the slot auction officially launched on Nov. 12. 

Why are parachain slots auctioned?

Parachains allow both Bitcoin and Ethereum networks, for example, to be able to link cross-chain information interactions via relay chains, so anyone who wants to participate in the auction can access the parachains.

The current goal of Polkadot is to support 100 parachains slots and it will take some time before these parachains live on Polkadot mainnet.

Because of the limited number of parachains, only projects with a large amount of DOT can access the services to communicate with other blockchains.

Note that Polkadot uses a candle auction, where the organisers open the auction for a set period of time and the winner is decided by who has the highest bid just before the candle goes out.  However, the random mechanism of this auction might result in low revenue when the candle will go out right after the first offer.

Polkadot will lock up the funds of the final winner of the parachains slot auction until the end of the slot usage period when the funds will be returned to the bidder, which is often years. 

A summary of Polkadot’s strengths and weaknesses

Strengths

Central hubs for data interaction between blockchains with different characteristics
Increased efficiency, saving resources and costs
A canary network to test projects in advance

Weaknesses

Long lock-up period for funds in parachain auctions
Lack of stablecoin: the introduction of stablecoins is an important factor in determining the success of all blockchain ecosystems, including Polkadot, either generated using collateral or introduced across chains,

Polkadot has been online for six years since 2015, and its ecosystem development has been slower compared to other blockchains like Solana.

The Polkadot ecosystem will also need more native and cross-chain projects to join in order to realize its vision of “running cross-chain projects seamlessly and efficiently at scale.”

For more data developments and content from the DeFi ecosystem, click on the Footprint link for more project dashboards and analysis.

The above content is only a personal view, for reference and information only, and does not constitute investment advice. If there are obvious errors in understanding or data, feedback is welcome.

This report was brought to you by Footprint Analytics.

What is Footprint

Footprint Analytics is an all-in-one analysis platform to visualize blockchain data and discover insights. It cleans and integrates on-chain data so users of any experience level can quickly start researching tokens, projects and protocols. With over a thousand dashboard templates plus a drag-and-drop interface, anyone can build their own customized charts in minutes. Uncover blockchain data and invest smarter with Footprint.

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Crypto Scams Are Always There. Avoid Getting Rug-pulled With These Tips

Cryptocurrency has captured the world’s attention after the pandemic, and notorious scammers have taken notice too. With the rising popularity of altcoins and meme tokens, there will be an upsurge of new crypto scams taking place on Telegram.

What is a Scam?

Scam, rug pull, you name it. They’re everywhere: Telegram chats, groups, fake communities. But what exactly is a rug pull? The next level.

They happen when developers create a token paired with a valuable cryptocurrency, list the token on decentralized exchanges (DEXs), and then pull out all the funds.

In simple words, a crypto rug pull occurs when the developers abandon a project after cashing out investors’ capital.

Consider the recent “Squid Game” scam where the developers created a ‘Play-to-earn’ SQUID token, drew in buyers, inflated the prices and made off with $3.38 million, according to Gizmodo.

How to spot a Rug Pull?

Though seasoned scammers create the Rug pulls, it is easy to spot them if the investor pays close attention to the following signs.

Low Liquidity

Low liquidity means it is difficult to convert the tokens to cash as the developer had limited funds to create the token. It is easier for the developer to manipulate the token’s price when the liquidity is lower. The best way to check liquidity is by looking at 24hr trading volume, which should be at least 20% to 40% of the coin’s total market cap.

Low TVL(Total Value Locked)

TVL refers to the total amount invested in a particular project and is a reliable metric to check the project’s authenticity. A legitimate project will have a few billion invested, whereas a scam project might have a few hundred dollars.

How to avoid a Rug Pull?

Here are some tips to avoid Rug pulls and exit scams

Read the Documentation

Every project should typically have a whitepaper, which provides investors with information like the concept, purpose and technology behind the project. A well-drafted whitepaper provides legitimacy and a professional outlook to the project. A poorly written or copied whitepaper is repulsive and considered a red flag.

Follow Social Media Channels

A scam token might usually have an essential, low-traffic website and social media channels that were created recently. At the same time, the most successful projects will have an active presence, investor outreach and community engagement. There will be active updates on platforms like Twitter, Telegram and Discord channels.

For Instance, CrypTalk is an encrypted messenger that verifies projects legitimacy and keeps investors in a safe place with access to KYC, charts, audits, reports, market cap, and bring exposure to valuable projects.

Using Tools

There are online tools that can detect a rug pull, like Token Sniffer and RugDoc. For a high level of scam detection, Etherscan or Binance Smart Chain explorer can help users evaluate the project’s legitimacy. However, navigating through different apps is time-consuming and information is always limited.

Closing Thoughts

With the Crypto industry growing bigger and garnering a lot of attention, rug pulls have become prevalent in DeFi and, to some extent, in NFTs. Most of these scams are well planned, marketed intensively and executed brilliantly.

By following the tips, conducting due diligence and conceptual research analysis on prospective projects, you can decrease the chances of being Rug pulled. Be an intelligent investor, not a greedy one!