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Where Is Your Seed Phrase
Every new owner of a cryptocurrency wallet goes through the process of recording a combination of words – a seed phrase. This phrase serves as the key to restoring access to the wallet if you ever fail to log in.
A seed phrase is never a logical sentence or a quote – it’s a string of 12 to 24 random words. They are selected out of a 2,048-word dictionary, and each one corresponds to a number.
The seed phrase is used to generate public-private key pairs with BIP32 or BIP44 algorithms, and these pairs are stored in your device’s memory.
During registration, you always see a reminder that the seed phrase should be written down and kept somewhere safe.
If anything happens, this is the only way to restore your wallet and regain access to your funds. Read More
Restaking could introduce ‘hidden risks’ to Ethereum — Coinbase
Ethereum restaking will form a “core part” of the network in the future — but there are still risks that come along with the new yield-bearing mechanism, say Coinbase analysts.
Ethereum restaking could form the “bedrock” for a wide range of new decentralized applications on the blockchain, but it could also introduce several new hidden risks, says Coinbase.
In an April 2 research report, Coinbase analysts David Han and David Duong noted several risks with restaking and the issuance of so-called liquid restaking tokens (LRTs).
Ethereum restaking protocol Eigenlayer allows users to earn extra rewards — LRTs — by securing actively validated services (AVS) by staking derivative tokens, which are given to those who have already staked Ether through liquid staking protocols such as Lido (LDO).
When the Eigenlayer protocol is first launched, the analysts explained the restaking process should be “fairly straightforward,” but a feature of EigenLayer is that staked tokens committed to one AVS can again be staked to another AVS’. Read More
Preserving art in the age of blockchain: How technology is saving fragile art
Merging art and technology transforms art preservation and accessibility, enabling digital and traditional art forms to coexist and thrive in an interactive landscape.
Building on the technological advancements in art preservation, nonfungible tokens (NFTs) and digital collectibles emerge as potent tools for safeguarding artistic expressions. By tokenizing artworks on the blockchain, NFTs ensure that digital creations are preserved in a secure and immutable ledger and retain their uniqueness over time.
NFTs facilitate a broader archival process, enabling the preservation of digital art and multimedia experiences that define contemporary culture. Furthermore, NFTs complement technological efforts in preserving art and redefine the scope of what can be preserved, ensuring that today’s digital art remains accessible. Read More
Polygon CEO: L3s Might Represent a Threat to Ethereum's Security
Marc Boiron, CEO of Polygon, an Ethereum-compatible sidechain scaling solution, gave his take on the rise of Layer 3 (L3) scaling structures in the Ethereum ecosystem. According to Boiron, L3s only take value away from Ethereum’s chain and concentrate it in their corresponding base L2, creating a security risk for the network.
Polygon CEO Criticizes Rise of L3 Ethereum Scaling Solutions:
Marc Boiron, CEO of Polygon, has warned about the effect that Layer 3 (L3) structures might have on the Ethereum ecosystem. On social media, Boiron referred to L3s, scaling solutions that pass all of their data and transactions in a single Ethereum rollup, as elements that might endanger the future of the Ethereum blockchain, siphoning value away from the base layer.
Boiron stated:
I’ll say the quiet part out loud: L3s exist only to take value away from Ethereum and onto the L2s on which the L3s are built.
Furthermore, Boiron specified that L3s were not needed for scaling Ethereum, and detailed that Polygon Labs has no intention of bringing any L3 to the market. Read More
Markethive Leading The Way In Web 3 Social & Market Media
Web 3.0 is the next generation of the internet, which people envision will be more decentralized and permissionless. One that's built on decentralized protocols, where users help with content creation and the governance of the web itself. They also have the ability to own a part of the network, so you can think of it as a Read-Write-Own Internet.
There are already several technologies that could serve as the backbone for a Web 3 world. Most point to blockchains like Elrond, Cardano, or Ethereum, for example, but other distributed technologies like IPFS can also be used to decentralize networks.
Thousands of dApps (decentralized applications) are already being built in the Web 3 environment. These often include native tokens to add value to the application to those who hold the tokens. These native crypto assets allow those who participate in the network to share in the value generated from it.
Web 3 promises a decentralized alternative where we are all users, owners, and developers. This quote from Fabric Ventures sums it up beautifully,
“Web 3.0 enables a future where distributed users and machines are able to interact with data, value, and other counterparties via a substrate of peer-to-peer networks without the need for third parties—the result: a composable human-centric & privacy-preserving computing fabric for the next wave of the web.” Read More
Coinbase partners with Lightspark for Bitcoin Lightning payments
Lightspark says the integration on Coinbase will offload more transaction activity away from Bitcoin’s base layer, where fees have increased considerably over the last 12 months.
Coinbase is one step closer to integrating Bitcoin Lightning on its platform amid a new partnership with Lightspark, an enterprise-focused Lightning solution led by former PayPal president David Marcus.
In an April 4 X post, Coinbase’s CEO Brian Armstrong said the integration of the Bitcoin layer-2 network will happen “soon” — which will allow its 108 million user base to leverage potentially faster and cheaper Bitcoin transactions.
“Lighting up all Coinbase touchpoints with Lightning” will offload more transaction activity to Bitcoin’s second layer, which will combat the recent rise in fees on Bitcoin’s base layer, Lightspark explained in an April 3 post.
Armstrong confirmed that Coinbase would integrate Bitcoin Lightning last September but didn’t provide further details on how or when that would occur. Read More
Bank of England and FCA launch Digital Securities Sandbox for DLT testing
The Bank of England and the U.K.’s financial regulator, the Financial Conduct Authority, aim for the inaugural group of applicants to join the Digital Securities Sandbox by autumn 2024.
The Bank of England (BoE) and the United Kingdom’s Financial Conduct Authority (FCA) have started a consultation on the draft guidance for their Digital Securities Sandbox (DSS), which is designed to allow participants to test distributed ledger technology (DLT) for trading and settlement of digital securities such as shares and bonds.
According to a joint consultation and draft guidance released on Wednesday, April 3, the sandbox will last five years and could lead to a new regulatory regime for securities settlement.
Successful applicants using the sandbox will be able to provide securities depository and settlement services, as well as operate a trading venue under modified regulations. Read More
Ethereum layer 2s to hit $1T market cap by 2030: VanEck
VanEck’s analysts were bearish on L2 tokens due to competition, but envisioned a future with thousands of use-specific chains.
Ethereum’s layer 2 scaling networks will hit a $1 trillion market capitalization in six years and will be made up of thousands of use case-specific chains, according to analysts from investment manager VanEck.
Layer-2 blockchains are set to capitalize on Ethereum’s “primary challenge” — its “limited capacity to process, store, and compute data,” VanEck’s senior digital assets investment analyst Patrick Bush and digital assets research head Matthew Sigel said in an April 3 report.
Busha and Sigel reached their $1 trillion market cap prediction by estimating Ethereum would take up 60% of the market share across all public blockchains and then estimating the volume of assets within the Ethereum ecosystem.
There are currently 46 Ethereum L2s with $39 billion total value locked, the largest being Arbirtum with $18 billion, according to L2BEAT. Read More
Dmail co-founder says email must be decentralized and protect data sovereignty
Dmail co-founder Daniel James explains why email needs to be decentralized.
Spam, phishing emails, and the risk of having one’s personal data either deleted or sold are common concerns shared among email users, and James says that “blockchain really enhances security” as “there’s no central point of failure that hackers can target.”
James added that Dmail prioritizes privacy by encrypting every email, which makes it “harder for attackers to compromise email accounts and intercept communications.” The decentralized nature of the service also gives users data sovereignty.
“It’s a battle world. It’s a more moral world where you are not the product. You are actually gaining something from this platform. And that’s really what attracts most people into Web3 initially, is that you do have data sovereignty. For me, the foray into Web3 was mostly about Big Tech essentially becoming the arbiters of truth and really overstepping the mark, getting political and censoring certain things. To me, that’s not the job for Big Tech, regardless of your political affiliation. That should not be happening.”
James explained that “email solves these kinds of problems, but it also brings something completely different to the table. It brings the Web3, the blockchain layer, and the possibilities are endless.” Read More
Disclaimer: These articles are provided for informational purposes only. They are not offered or intended to be used as legal, tax, investment, financial, or any other advice.
