Blockchain news - Fintech News. Online news ✅by @dTechValley https://www.fintechnews.org/blockchain/ And Techs news of your sector Thu, 06 Feb 2025 23:52:59 +0000 en-US hourly 1 https://wordpress.org/?v=6.1.7 How Blockchain tech can streamline treasury operations https://www.fintechnews.org/how-blockchain-tech-can-streamline-treasury-operations/ https://www.fintechnews.org/how-blockchain-tech-can-streamline-treasury-operations/#respond Fri, 07 Feb 2025 14:40:59 +0000 https://www.fintechnews.org/?p=36765 Blockchain is entering its institutional era. And the enterprise treasury function is all eyes and ears to the innovation. For example, news came this week that enterprise software maker MicroStrategy, whose business mission includes buying bitcoin, sold 13.6 million shares, tapping the public markets explicitly in order to fund further purchases of the nominal digital […]

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Blockchain is entering its institutional era. And the enterprise treasury function is all eyes and ears to the innovation.
For example, news came this week that enterprise software maker MicroStrategy, whose business mission includes buying bitcoin, sold 13.6 million shares, tapping the public markets explicitly in order to fund further purchases of the nominal digital asset.
Per a U.S. Securities and Exchange Commission filing on Monday (Nov. 18), MicroStrategy acquired about 51,780 bitcoin at a cost of around $4.6 billion between Nov. 11 and Nov. 17.
MicroStrategy also announced on Monday that it will be offering another $1.75 billion of its 0% convertible senior notes due 2029 for sale in order to fund the purchase of more bitcoin.
The company currently holds around $30 billion in bitcoin on its balance sheet.
While November must have been an exciting time for MicroStrategy’s treasury team, and the headlines harken back to actions taken by firms like Tesla and Block with their own digital asset-heavy balance sheets, today’s treasurers and finance leaders are separately finding out for themselves that blockchain technology holds several key applications across corporate finance as a technology — and not just an asset class.
With real-time transparency, reduced costs and streamlined operations, blockchain is reshaping traditional treasury practices. For corporate treasurers navigating a global economy defined by uncertainty and complexity, blockchain technology offers a compelling promise: a transformation of the treasury function from a cost center to a strategic enabler.

Blockchain’s Key Applications in Corporate Finance

Five of the most promising uses of blockchain within corporate finance include streamlining cross-border transactions, providing real-time liquidity and cash flow management, innovating trade finance and supply chain financing, as well as optimizing risk management, such as by way of tokenizing real-world assets.
The traditional system of cross-border payments — laden with inefficiencies, high fees, and multi-day delays — has long been a sore spot for corporate treasurers. Transactions often traverse a labyrinth of correspondent banks, each adding costs and time to the process. Blockchain technology disrupts this paradigm by enabling instantaneous settlements.
“Blockchain technology, and public blockchains in particular, are opening up a number of new use cases, one of which is to transfer value … from one country to another,” Raj Dhamodharan, EVP blockchain and digital assets at Mastercard, told PYMNTS.
When it comes to cash flow, managing liquidity across a web of subsidiaries, bank accounts and currencies has traditionally required a blend of guesswork and delayed reporting from the finance function. Blockchain changes the game by providing treasurers with real-time visibility into cash positions across the organization and allowing them to make more precise funding and investment decisions.
“In five years, we might have a blockchain or state-machine capability where financial institutions involved in a transaction can look at that common state and use it as a source of truth to update their own balance sheets,” Tony McLaughlin, emerging payments at Citi Services, told PYMNTS.
With instantaneous updates on balances and movements, treasurers can make more precise funding and investment decisions. Blockchain-based platforms also enable predictive analytics for liquidity needs, allowing firms to optimize working capital while minimizing idle cash.

Looking Ahead to an On-Chain Financial Future

While blockchain is no silver bullet, its applications in treasury management offer a glimpse of a more efficient and transparent financial future.
Trade finance, a linchpin of global commerce, is notoriously complex. Issuing letters of credit, managing compliance, and resolving disputes often involve reams of paperwork and significant delays. Blockchain helps digitize and simplify these processes.
Within supply chain financing, which has traditionally favored large buyers with strong credit ratings, blockchain can address traditional imbalances through dynamic discounting and invoice factoring, powered by tokenized transactions.
And in an increasingly volatile global economy, risk management is a top priority for treasurers. Blockchain enhances hedging strategies by enabling the creation and tracking of tokenized assets — digital representations of commodities or currencies. For example, a token representing a barrel of oil or a foreign currency can be tracked and traded in real time, giving treasurers unprecedented control over their hedges.
“The largest financial institutions are eager to explore tokenized assets,” Nikola Plecas, head of commercialization at Visa Crypto, told PYMNTS, but noted that they require regulatory certainty to do so at scale.
After all, while blockchain’s potential is clear in a sandbox environment, several key hurdles to its widespread adoption must be addressed. While regulatory uncertainty is chief among them, interoperability and technical complexity are also important challenges to consider.
But the marketplace is marching onward. And forward-thinking treasury teams must keep up.
Last month, Visa debuted its Visa Tokenized Asset Platform (VTAP), which allows banking partners “to create and experiment with their own fiat-backed tokens in a VTAP sandbox.” In an initial use case, the platform enabled the issuance, transfer and redemption of a bank token on a blockchain, along with interactions of the token with smart contracts.
Last week, Tether launched its own RWA tokenization platform, dubbed Hadron, which lets users “tokenize anything, anywhere,” including everything from stocks to loyalty points.
In March, BlackRock unveiled its first tokenized fund issued on a public blockchain, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL). The company said last week that it expanded the offering, “by enabling BUIDL to be used within leading blockchain-based financial products and infrastructure across ecosystems.”

 

Link: https://www.pymnts.com/blockchain/2024/how-blockchain-tech-can-streamline-treasury-operations/

Source: https://www.pymnts.com

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Escaping the casino: How tokenized assets will save DeFi from itself https://www.fintechnews.org/escaping-the-casino-how-tokenized-assets-will-save-defi-from-itself/ https://www.fintechnews.org/escaping-the-casino-how-tokenized-assets-will-save-defi-from-itself/#respond Fri, 07 Feb 2025 13:42:10 +0000 https://www.fintechnews.org/?p=35750 Vitalik Buterin is right: DeFi today is a circular speculative economy. The bigger opportunity lies in bringing traditional capital markets on-chain, so that crypto reaches the mainstream, says Zach Rynes (aka ChainLinkGod), who serves as a Chainlink Community Liaison. By Zach Rynes Ethereum Co-Founder Vitalik Buterin recently created a ripple on crypto twitter writing that […]

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Vitalik Buterin is right: DeFi today is a circular speculative economy. The bigger opportunity lies in bringing traditional capital markets on-chain, so that crypto reaches the mainstream, says Zach Rynes (aka ChainLinkGod), who serves as a Chainlink Community Liaison.

Ethereum Co-Founder Vitalik Buterin recently created a ripple on crypto twitter writing that DeFi “feels like an ouroboros [a snake eating its own tail]: the value of crypto tokens is that you can use them to earn yield which is paid for by… people trading crypto tokens.”

He went on to note that “while defi may be great it’s fundamentally capped and can’t be _the_ thing that brings crypto to another 10-100x adoption burst.”

Vitalik isn’t wrong.

The ethos of decentralized finance (DeFi) is the belief that a blockchain-based financial system will free society from rent-seeking intermediaries and make financial services accessible to the globally unbanked.

And yet, it’s not hard to miss that much of what is considered “DeFi” today really just feels like a circular casino that facilitates speculation on tokens whose value is primarily derived from monetizing token speculation.

It is not sacrilegious to acknowledge this fact, nor is it to accept that this current version of DeFi is clearly not sustainable. There is only so much demand for circular token speculation and there isn’t an infinite amount of retail capital to burn.

DeFi in its current state is not the catalyst that will scale crypto adoption beyond current levels, but that doesn’t mean the creation of an on-chain token casino was all for nothing.

DeFi, in its current form, has proven that an on-chain financial system can be created that provides all the core primitives that an open, globally accessible, and robust financial system would require: payments, swaps, lending, derivatives, insurance, and much more.

The infrastructure and protocols that underpin DeFi do indeed reduce counterparty risk and costs, while increasing transparency and accessibility — even if the initial product-market fit amounts to little more than token gambling.

So how can DeFi overcome its circular token gambling obsession and play its proper role in scaling crypto adoption?

Tokenized assets

At their most basic level, blockchains are the superior method of issuing, transferring, and tracking assets via the creation of digital tokens. Finance revolves around asset management, making DeFi the most tangible, obvious growth opportunity for crypto.

But, to grow, the DeFi economy needs access to more assets that can be represented as tokens. While cryptocurrencies have gotten DeFi to where it is today, evolving beyond the casino-stage means seeking out where most of the capital in the world resides. And the answer is blindingly obvious.

Tokenizing all the assets within the traditional financial system — bank deposits, commercial paper, treasuries, mutual funds, money market funds, stocks, futures, options, swaps, etcetera — would bring hundreds of trillions of dollars worth of capital on-chain.

One single firm, BlackRock, manages nearly five times more assets ($10.5 trillion) than the market capitalization of the entire crypto market ($2.2 trillion).

This is capital that can then be seamlessly plugged into existing on-chain finance protocols, in effect hotswapping token gambling with real-world financing. Far from just a pipedream, many of the world’s largest financial institutions are actively positioning themselves for a future where tokenization is the status quo.

In less than half a year, BlackRock’s tokenized fund on Ethereum, BUIDL, has exceeded $500 million AUM, bringing the total value of tokenized government securities on public blockchains to over $1.5 billion. While this amount is a small fraction of the value contained in the traditional system, the active participation of the world’s largest asset manager within a public blockchain ecosystem speaks volumes.

Furthermore, stablecoins have proven that the demand for tokenized assets is overwhelmingly real. With over $150 billion of U.S. dollars tokenized on-chain, and monthly transfer volume of $1.4 trillion, stablecoin usage now rivals that of established payments networks such as Visa. While not often thought of as a tokenized asset, the only difference between Circle’s USDC and BlackRock’s BUIDL is who receives the yield.

Stablecoins highlight the core value of tokenization as they allow anyone to transfer dollars to anyone else in the world with just an internet connection. Transactions are settled in under a second and for less than a penny in fees. For anyone in a country with a hyper-inflating currency, who has tried to make a cross-border remittance payment, or simply wants to make a financial transaction on a weekend or holiday, the benefits of stablecoins are immediately obvious.

While DeFi’s token gambling won’t ever completely disappear, it is clear that the underlying infrastructure that currently enables DeFi will come to define the way the world economy operates. The path forward comes from embracing a simple fact: tokenized assets are a superior way to represent financial assets.

 

Link: https://www.coindesk.com/opinion/2024/09/04/how-ethereum-20-can-transform-defi/

Source: https://www.coindesk.com

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Blockchain betting: Top 5 benefits of playing Bitcoin casinos  https://www.fintechnews.org/blockchain-betting-top-5-benefits-of-playing-bitcoin-casinos/ https://www.fintechnews.org/blockchain-betting-top-5-benefits-of-playing-bitcoin-casinos/#respond Fri, 07 Feb 2025 06:33:33 +0000 https://www.fintechnews.org/?p=36808 By Pratik Chadhokar Cryptocurrencies are becoming integral to daily life, with an expanding number of individuals reaping the benefits of this instrument. Due to its ease, accessibility, and effectiveness make it much more secure than conventional currencies, enhancing safety while making a bet.Fascinatingly, Crypto payments represent 25% of all online gambling transactions, and roughly 50% […]

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Cryptocurrencies are becoming integral to daily life, with an expanding number of individuals reaping the benefits of this instrument. Due to its ease, accessibility, and effectiveness make it much more secure than conventional currencies, enhancing safety while making a bet.Fascinatingly, Crypto payments represent 25% of all online gambling transactions, and roughly 50% of cryptocurrency holders only use them for wagering, with BTC at the forefront. Using Bitcoin Casinos provides several benefits to players, including improved security and heightened transparency. Therefore, it’s easy to understand how rapidly its popularity has become. However, with an endless list of positives to take from BTC use in casinos, we’ve compiled a top-five list of the leading benefits of using this crypto payment type at your favorite iGaming establishment.

Bitcoin’s reduced transaction expenses: An economical gaming experience

One of the leading benefits of using Bitcoin at online casinos is its capacity to provide a cost-effective gaming experience via reduced transaction fees. Conventional payment systems sometimes need middlemen like banks and payment processors, each imposing service costs.
Bitcoin transactions, characterized by decentralization and a peer-to-peer network, substantially reduce or eliminate middleman costs. It reduces transaction costs for both participants and casinos, enabling a greater portion of the money to be dedicated to the gaming experience itself.
Furthermore, the reduced transaction costs linked to Bitcoin foster inclusiveness throughout the online gambling environment. Lowered fees enable participants with diverse financial capacities to engage in gaming without incurring substantial transaction costs. The democratization of access highlights Bitcoin’s revolutionary effect on enhancing the financial accessibility and attractiveness of online casinos to a wider audience.

Enhanced security with blockchain technology

What’s the hype all about Bitcoin casinos in Canada? Well, nothing is more important to casino goers than feeling secure when making monetary transactions. In step BTC…
Utilizing BTC at online casinos affords the benefit of blockchain technology, which offers unparalleled security. The decentralized blockchain architecture guarantees encryption and immutability of transactions, reducing the likelihood of fraud and cyberattacks. This feature makes the crypto casino more attractive to gambling enthusiasts, as it ensures a secure environment for deposits and withdrawals. Furthermore, blockchain eliminates the need for intermediaries, protecting your assets from external intervention.

Enhancing transparency and trust via BTC in Online Casinos

Employing cryptocurrencies such as Bitcoin facilitates transparent and traceable transactions. Blockchain technology, the foundation of cryptocurrencies, documents each transaction on a public ledger, making manipulating or altering transaction data challenging. This openness enables players to ascertain the equitable nature of the games and the authenticity of the casino’s operations.
The use of smart contract technology in blockchain-based casinos might further augment transparency. Smart contracts are autonomous agreements that execute automatically based on established criteria and circumstances. They obviate the need for intermediaries, guaranteeing that disbursements are automated and precise, dispelling any equity uncertainties.
Online casinos might go through third-party audits and approvals to enhance trustworthiness. Independent auditors may validate the casino’s cryptocurrency utilization, the games’ equity, and the security protocols used.

Bonuses for participants in Bitcoin casinos

Furthermore, cryptocurrency casinos have implemented specific Bitcoin incentives as a strategic measure to attract and keep gamers using digital currencies. Unlike conventional casino promotions, these incentives are tailored particularly for individuals doing transactions using Bitcoin.
Bitcoin incentives sometimes include advantages such as augmented deposit matching, complimentary spins, or unique tournament access. These bonuses enhance the appeal for players and highlight the increasing acknowledgment of Bitcoin as a valid and valued currency within the online casino sector.
The uniqueness of Bitcoin incentives presents a distinctive value proposition for cryptocurrency casino participants. It transcends conventional bonus frameworks, recognizing the preferences and selections of users interacting with decentralized digital currency.

Worldwide Accessibility

Incorporating Bitcoin payments enhances accessibility. Bitcoin is a decentralized money that surpasses geographical limitations. Bitcoin casinos provide a worldwide platform, enabling players from many nations to engage without requiring currency conversions or incurring international transaction costs.

Final Thoughts: Rationale for adopting BTC in online gaming

Incorporating Bitcoin in online casinos is not only a fad but a purposeful response to technological progress and consumer preferences. Cryptocurrencies resolve several prevalent challenges online gamblers encounter via augmented security measures, heightened privacy, and expedited transactions.
As digital currencies increasingly acquire recognition, comprehending their use in online casinos is essential for anyone seeking to enhance their gaming experience. Whether prioritizing privacy or pursuing a more efficient transaction method, Bitcoin might revolutionize your gaming activity.

 

Link: https://www.thecoinrepublic.com/2024/12/23/blockchain-betting-top-5-benefits-of-playing-bitcoin-casinos/?utm_source=pocket_saves

Source: https://www.thecoinrepublic.com

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Cryptocurrency and Blockchain – The duo transforming finance https://www.fintechnews.org/cryptocurrency-and-blockchain-the-duo-transforming-finance/ https://www.fintechnews.org/cryptocurrency-and-blockchain-the-duo-transforming-finance/#respond Thu, 06 Feb 2025 14:33:35 +0000 https://www.fintechnews.org/?p=35033 By Elizabeth Abbott For the last few years, terms such as ‘cryptocurrency’ and ‘blockchain’ have become popular in the sphere of finance and IT (information technology). But what are these two, and how are they connected? Here we will explain these ideas further and establish how they are connected. Understanding cryptocurrency Cryptocurrency can be defined […]

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For the last few years, terms such as ‘cryptocurrency’ and ‘blockchain’ have become popular in the sphere of finance and IT (information technology).

But what are these two, and how are they connected? Here we will explain these ideas further and establish how they are connected.

Understanding cryptocurrency

Cryptocurrency can be defined as a digital or virtual currency that has attributes of money and makes use of cryptography to secure the transactions.

Cryptocurrencies are different from the government-backed currencies – known as fiat currencies as they are based on the technology known as blockchain.

This means they cannot be regulated by any central power such as a bank or a government.

Bitcoin is the first and the most famous kind of cryptocurrency it was developed in 2009 by a person or a group of persons, later known as Satoshi Nakamoto.

After that, thousands of cryptocurrencies have been created. Each of them has its own characteristics and use cases.

Some of the most recognized ones are Ethereum, Ripple (XRP) and Litecoin.

The role of blockchain

Cryptocurrencies can be described as being based on blockchain technology.

It is an electronic recordkeeping system that is distributed across a network of computers and keeps a record of all the transactions that occur in the network.

This makes the network transparent and secure because every node in the network has a copy of the ledger and cannot be cheated. For instance, you can verify a Bitcoin transaction on a block explorer to check if the transaction has been recorded accurately on the blockchain.

A blockchain is made up of blocks of which every block is a record of multiple transactions.

The created block is linked to other blocks, which form a chain. Once a block is added, it cannot be altered.

This partiality of blockchain makes it remarkably secure  mainly when any alteration in any of the blocks will affect all the subsequent blocks, making it almost impossible to do so, unless the person doing it controls the majority of the network.

The relationship between cryptocurrency and blockchain

It is important that you know that all cryptocurrencies work on blockchain technology.

Here’s how they are interconnected.

Decentralization

Cryptocurrencies and blockchain are similar in that they both are decentralized. This implies that no one organization or firm owns the whole network.

This is decentralization, which is one of the factors that guarantee security and confidence in the system.

Security

Cryptocurrencies entail the application of cryptography to protect the operations and the generation of new coins.

This security is boosted by blockchain which offers a public ledger of the entire flow of transactions.

Transparency

Transparency is why using blockchain is useful – because all the participants can see the records and check them. It reduces cases of fraud and manipulation, enhancing the trustworthiness of the cryptocurrencies.

Efficiency

A blockchain technology can therefore perform transactions better and faster than banking systems.

This efficiency is one among several factors that have made cryptocurrencies be adopted progressively in remittance and cross-border payments.

Applications beyond cryptocurrencies

Blockchain is the technology that powers cryptocurrencies but the use of blockchain does not stop with cryptocurrencies.

Here are a few examples.

Supply chain management

A supply chain application of blockchain is to track the movement of products in the supply chain and eliminate supply chain fraud.

Voting systems

Blockchain offers voting systems that are more secure and free from electoral fraud compared to the traditional methods.

Smart contracts

Such blockchains as Ethereum allow for the creation of smart contracts, which are contracts that contain or are defined by code that is automatically executed upon occurrence of specific conditions.

This can help to automate and improve numerous of your business activities.

Crypto and blockchain are changing the manner in which we look at money and transactions.

While cryptocurrency introduced a new type of electronic money, blockchain is a safe and effective system that can be used in other spheres apart from the financial one.

These technologies are still developing, and their presence will surely increase in the future.

So, they will influence the development of various industries and bring them new achievements in the realm of efficiency.

Therefore, knowledge of their relationship is important for anyone aiming to master the future of finance and technology.

 

Link: https://dailyhodl.com/2024/07/08/cryptocurrency-and-blockchain-the-duo-transforming-finance/

Source: https://dailyhodl.com

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Why DeFi will benefit from trade wars https://www.fintechnews.org/why-defi-will-benefit-from-trade-wars/ https://www.fintechnews.org/why-defi-will-benefit-from-trade-wars/#respond Wed, 05 Feb 2025 22:42:29 +0000 https://www.fintechnews.org/?p=37210 In the short-term, the crypto market will be negatively impacted by increased volatility in global trade, says ML Tech’s Leo Mindyuk. But over time, crypto will be less impacted than traditional finance. By Leo Mindyuk Bitcoin (BTC) tumbled over the weekend, sinking well below the $100K mark as markets reacted to the latest escalation in […]

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In the short-term, the crypto market will be negatively impacted by increased volatility in global trade, says ML Tech’s Leo Mindyuk. But over time, crypto will be less impacted than traditional finance.

Bitcoin (BTC) tumbled over the weekend, sinking well below the $100K mark as markets reacted to the latest escalation in the U.S. trade disputes. The broader digital asset market followed suit, leading to one of the most significant sell-offs since the outbreak of Covid and the collapse of FTX. Specifically, President Donald Trump announced sweeping new tariffs of 25% on imports from Canada and Mexico and 10% on Chinese goods.

Canada and Mexico initially retaliated but have since reached deals to delay the imposition of U.S. tariffs, while China has announced its own tariffs against U.S. goods. The developments have increased global economic uncertainty and sent risk assets into a temporary free fall.

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As global economies wrestle with trade disputes, crypto markets face ripple effects in the form of price volatility, mining disruptions and regulatory challenges. But could these tensions also fuel the rise of decentralized finance? Let’s explore how tariff wars could shape the future of crypto.

Market volatility: a double-edged sword

Tariff wars create uncertainty in traditional markets, often driving investors toward alternative assets like bitcoin, ether and other cryptocurrencies. During economic turbulence, crypto is sometimes seen as a “safe haven” similar to gold. However, even as institutional adoption of crypto grows, digital assets remain highly speculative. In the short term, the crypto market will be negatively impacted by increased volatility in global trade, with sudden surges or dips influenced by shifting trade policies — but over time, crypto will be less impacted than traditional finance.

Mining disruptions

Crypto mining relies heavily on specialized hardware, much of which is produced in countries like China. Tariffs on electronic components, semiconductors and mining rigs can drive up production costs and reduce profitability. Additionally, increased expenses could push smaller miners out of the market, potentially leading to greater centralization of mining power among major players with the resources to weather these financial storms.

Regulatory uncertainty and compliance hurdles

Tariff wars don’t just impact physical goods; they can also influence financial regulations. Governments engaged in tariff wars may use financial regulations as an additional tool to assert control. Increased scrutiny of international crypto transactions, exchanges and cross-border payments could lead to stricter compliance requirements. This, in turn, could slow adoption rates and make crypto less accessible, particularly in regions where trade restrictions are tightening. At the same time, heightened regulations may push some users deeper into decentralized finance (DeFi) platforms, which operate outside traditional banking systems.

Shift towards decentralized finance (DeFi)

As trade conflicts heighten distrust in traditional financial systems, decentralized finance (DeFi) may offer users a way to bypass some of the barriers imposed by tariffs and regulations. More users may turn to DeFi platforms for financial autonomy. DeFi applications allow for peer-to-peer transactions without intermediaries, reducing reliance on traditional banking, which is often impacted by trade policies. If tariff wars continue to disrupt traditional trade channels, crypto-based financial solutions could see increased adoption.

Conclusion

While crypto is often seen as a hedge against economic instability, it is not immune to the effects of tariff wars. From increased volatility and mining costs, to regulatory shifts and the potential rise of DeFi, the trade conflicts of today could shape the digital economy of tomorrow. While crypto may face new hurdles in the short term, it will emerge stronger in the long term as global markets seek an alternative to traditional finance amidst global governments’ ongoing economic battles. Investors, miners and policymakers should keep a close eye on trade developments as they navigate the complex relationship between geopolitics and digital assets.

 

Link: https://www.coindesk.com/coindesk-indices/2025/02/05/why-defi-will-benefit-from-trade-wars?utm_source=pocket_shared

Source: https://www.coindesk.com

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Beyond Crypto: Why Blockchain will be more disruptive in 2025? https://www.fintechnews.org/beyond-crypto-why-blockchain-will-be-more-disruptive-in-2025/ https://www.fintechnews.org/beyond-crypto-why-blockchain-will-be-more-disruptive-in-2025/#respond Wed, 05 Feb 2025 06:46:27 +0000 https://www.fintechnews.org/?p=36832 Blockchain in 2025: The Disruption That Will Redefine Industries By Anurag Reddy Why Blockchain Will Be More Disruptive in 2025 It was designed to be used in cryptos like Bitcoin, but now, blockchain is ready on the cusp of revolutionizing a whole range of industries in ways that were never considered possible. Blockchain will be […]

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Blockchain in 2025: The Disruption That Will Redefine Industries

By Anurag Reddy

Why Blockchain Will Be More Disruptive in 2025

It was designed to be used in cryptos like Bitcoin, but now, blockchain is ready on the cusp of revolutionizing a whole range of industries in ways that were never considered possible. Blockchain will be much more disruptive in 2025 purely and simply because businesses and industries across most sectors are embracing it.
This technology will be more significant than digital currency by 2025 and will spur radical changes in finance, healthcare supply chain management, and many other sectors. The reasons that make blockchain more disruptive this year will explain why.

Blockchain’s Core Value: Decentralization

The core of blockchain technology lies in its decentralized architecture, a stark contrast to traditional systems where central authorities control data. Blockchain’s distributed ledger ensures that data records are replicated across multiple locations, rendering it impossible to manipulate the system from a single point. This decentralized environment fosters trust through cryptographic principles, ensuring data integrity and security. By 2025, the global blockchain market is projected to reach $39.7 billion, growing at a CAGR of 69.4% (Source: MarketsandMarkets). As more companies adopt blockchain technology, they will realize that its decentralized nature enhances security, efficiency, and transparency while eliminating the need for intermediaries like banks and insurance companies. This shift is expected to decrease costs by up to 30%, accelerate transaction speeds by 50%, and minimize fraud risks by 80% (Source: World Economic Forum).

Blockchain in Finance: Revolutionizing Transactions

Blockchain technology is revolutionizing various industries, extending far beyond its impact on cryptocurrency. By 2025, blockchain is expected to be vital in transforming the financial system, enabling faster, cheaper, and safer transactions. According to a report by Accenture, blockchain-based systems can reduce transaction costs by up to 80% and increase transaction speed by up to 90% (Source: Accenture).
Moreover, blockchain will continue to disrupt traditional payment systems, including peer-to-peer transactions, eliminating the need for intermediaries. Cross-border payments, which currently take an average of 3-5 days and incur high fees, will become near-instant and cost-effective, with blockchain-based systems projected to save up to $20 billion in transaction costs by 2025 (Source: Juniper Research).
Additionally, blockchain’s transparent nature will help combat money laundering and fraudulent activities, with the global anti-money laundering (AML) market expected to reach $1.4 billion by 2025, driven in part by blockchain adoption (Source: MarketsandMarkets).
Smart contracts will be everywhere by 2025 because they automatically execute and enforce the terms of a contract. Self-executing contracts mean faster, more secure agreements between parties without the need for intermediaries like lawyers or notaries. It will transform industries that are based on contracts: real estate, insurance, and even employment agreements.

Healthcare: A New Era of Transparency and Efficiency

The health industry is well-positioned to adopt blockchain technology, as it holds vast amounts of sensitive patient data across various systems. By 2025, blockchain is expected to facilitate a secure and centralized environment for managing health records among different authorized parties, ultimately enhancing patient care while reducing administrative burdens.
Blockchain’s immutable ledger ensures that patients’ medical records remain unaltered and protected from tampering, which significantly decreases the likelihood of data breaches. This enhances patients’ control over their health information and fosters trust in healthcare providers. Additionally, implementing blockchain in pharmaceutical supply chains will improve transparency and help eliminate counterfeit drugs from the market, thereby enhancing drug safety.
Moreover, blockchain’s ability to track the origin of drugs and medical equipment will help minimize fraud and counterfeiting, which are prevalent issues in the industry. Over time, healthcare providers will likely begin integrating blockchain solutions into their daily operations, leading to a more efficient, secure, and cost-effective system.

Supply Chain Management: Improved Transparency and Accountability

One of the most promising applications of blockchain technology is in supply chain management. The sectors most impacted will be manufacturing, agriculture, and logistics, as blockchain will provide end-to-end visibility throughout these supply chains. By 2025, companies will be able to fully track the journey of goods from their origin to their final destination using blockchain.
The immutable ledger of blockchain will simplify the verification of product authenticity, significantly reducing the risk of counterfeit goods. This is particularly beneficial for industries such as luxury goods, pharmaceuticals, and food, where it is crucial to ensure that products are genuine and safe. Consumers will also benefit from increased transparency, allowing them to trace the origins of the products they purchase and confirm that they adhere to ethical and sustainability standards.
Additionally, blockchain technology will enhance the efficiency of supply chains by minimizing paperwork and administrative tasks. Smart contracts will automate transactions between suppliers, significantly reducing delays and improving overall efficiency. The tracking capabilities of blockchain will also help businesses quickly respond to changes in the market, further reducing potential issues.

Effect of Blockchain on Other Industries

Blockchain’s impact will extend beyond finance, revolutionizing sectors like education, voting systems, and entertainment by 2025. In education, blockchain will enable the secure and transparent verification of academic credentials, making it easier for employers to confirm qualifications. This is particularly significant, given that the global education technology market is projected to reach $252 billion by 2026, with blockchain-based solutions expected to play a key role in enhancing credential verification and authentication (Source: MarketsandMarkets).
In voting systems, blockchain technology will provide a transparent, secure, and auditable way to conduct elections, reducing the risk of fraud and increasing voter trust. According to a report by West Virginia University, blockchain-based voting systems can reduce election costs by up to 90% and increase voting participation by up to 20% (Source: West Virginia University).
The entertainment industry will also undergo significant disruption, as blockchain enables direct connections between content creators and audiences, cutting out intermediaries and ensuring fairer revenue distribution. The global digital entertainment market is expected to reach $4.8 trillion by 2025, with blockchain-based platforms poised to capture a significant share of this growing market (Source: PwC).

Conclusion

Blockchain technology holds significant potential and, over time, is expected to greatly disrupt various industries. By 2025, it is predicted that blockchain will transform business practices by providing safer and more transparent systems, as well as opening new opportunities in nearly every sector.
The ongoing innovation in blockchain technology suggests that the next few years will be transformative. Those who embrace these advancements will be well-positioned for success in a rapidly changing world.

 

Link: https://www.analyticsinsight.net/blockchain/beyond-crypto-why-blockchain-will-be-more-disruptive-in-2025?utm_source=pocket_saves

Source: https://www.analyticsinsight.net

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Three ways DeFi will revolutionize financial services https://www.fintechnews.org/three-ways-defi-will-revolutionize-financial-services/ https://www.fintechnews.org/three-ways-defi-will-revolutionize-financial-services/#respond Tue, 04 Feb 2025 08:47:10 +0000 https://www.fintechnews.org/?p=35794 DeFi is poised to create a future where financial services are digital, open, always-on, and borderless, says Bill Barhydt, CEO, Abra. By Bill Barhydt It’s widely accepted that our current banking system has significant flaws. Beyond systemic and geopolitical risks — like restricted borders, time zone barriers, and central bank dependencies — there are challenges […]

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DeFi is poised to create a future where financial services are digital, open, always-on, and borderless, says Bill Barhydt, CEO, Abra.

It’s widely accepted that our current banking system has significant flaws. Beyond systemic and geopolitical risks — like restricted borders, time zone barriers, and central bank dependencies — there are challenges with bank wires, international settlements, and the inconsistent availability of credit. A fundamental issue lies in the mismatch between banks’ balance sheets and their leverage. When a bank faces liquidity or insolvency issues, as seen with First Republic and Silicon Valley Bank in March 2023, depositors risk becoming creditors in a bankruptcy unless the government intervenes — leaving taxpayers to cover the fallout.

This fragility has led to growing interest in decentralized solutions from both retail investors and institutions. By removing human error and poor decision-making from the equation, Decentralized Finance (DeFi) offers a compelling alternative. We believe DeFi has the potential to fundamentally transform how we transact, bank, borrow, and invest.
Here are three emerging ways in which DeFi is poised to create a future where financial services are digital, open, always-on, and borderless.
1. Tokenization of real-world assets

The tokenization of real-world assets, such as real estate, fiat currencies, or bonds, is becoming a key trend. These tokenized assets can act as collateral in next-generation DeFi lending markets. Bitcoin and Ethereum, for instance, are considered pristine collateral because their use can be automatically governed by smart contracts without needing a third party, like a court, to adjudicate disputes.

Tokenizing physical assets like real estate or government bonds creates similar opportunities, although it requires oracles to provide real-world pricing and cash flow data. As this ecosystem evolves, individuals and institutions will increasingly use a broad range of tokenized assets to access lending services, unlocking liquidity and expanding borrowing options across global markets.

2. Always-on lending marketplaces

DeFi protocols are creating 24/7 marketplaces for lending, borrowing, and asset swapping. These platforms operate continuously, allowing users to lend assets like Bitcoin, Ethereum, and USDC, and earn yield in return. In the future, we expect to see tokenized assets such as government bonds and real estate added to these pools.

Unlike traditional markets, where hidden leverage and rehypothecation, the risky banking practice of lending out your assets multiple times,can create systemic risks, DeFi’s transparent smart contracts ensure that collateral is clearly managed, reducing counterparty risks. A growing number of Bitcoin holders are utilizing technologies like wBTC (wrapped Bitcoin) to borrow stablecoins on markets like Aave without selling their Bitcoin, maintaining exposure to its price appreciation.

In this setup, loans are secured by digital collateral, and if the value of the collateral decreases, the borrower either adds more collateral or risks liquidation — ensuring a healthier lending environment without the opaque risks present in traditional finance.

3. Becoming your own bank

Perhaps the most revolutionary aspect of DeFi is the ability for individuals to become their own banks. Throughout history, we’ve seen multiple banking crises — from the savings and loan crisis to the 2008 financial meltdown, and most recently, the 2023 crisis caused by rising interest rates. Historically, during times of instability, savers moved their wealth into physical cash outside the banking system.

Today, DeFi offers a modern solution. Advanced multi-party computation (MPC) wallets allow users to store and manage their assets securely, with on-chain verification ensuring they retain control. Individuals can now store value in stablecoins, invest in digital assets, and access decentralized lending and borrowing services — all without relying on traditional banks.

With tools like separately managed accounts (SMAs), users can hold their assets in their own digital vaults, free from the balance sheet risks of banks. This level of autonomy mirrors traditional financial strategies but extends them to the realm of crypto, giving people unprecedented control over their financial future.

Conclusion: A decentralized future

In the coming decades, DeFi will become the backbone of financial services. The term “DeFi-based banks” may fade away as it becomes the standard infrastructure for financial services. In this world, tokenized real-world assets will unlock new possibilities for borrowing and lending, decentralized platforms will provide always-on banking services, and individuals will have the power to be their own banks — maintaining full ownership and control over their assets.
If we want a future where financial services are transparent, secure, and democratized, we must pay attention to the innovations taking place in DeFi today.

 

Link: https://www.coindesk.com/business/2024/09/18/three-ways-defi-will-revolutionize-financial-services/?utm_source=pocket_saves

Source: https://www.coindesk.com

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Fintech has hit a wall. Blockchain will break through it. https://www.fintechnews.org/fintech-has-hit-a-wall-blockchain-will-break-through-it/ https://www.fintechnews.org/fintech-has-hit-a-wall-blockchain-will-break-through-it/#respond Wed, 15 Jan 2025 07:17:52 +0000 https://www.fintechnews.org/?p=35090 Relatively soon, blockchain will become the only part of fintech that matters. By BEN MILLS Financial technology has been an incredible growth sector for investors and innovators. But relatively soon, blockchain will become the only part of fintech that matters. The success story of fintech over the past 15 years has been defined by tremendous […]

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Relatively soon, blockchain will become the only part of fintech that matters.

Financial technology has been an incredible growth sector for investors and innovators. But relatively soon, blockchain will become the only part of fintech that matters.
The success story of fintech over the past 15 years has been defined by tremendous developments on the part of electronic and online payments systems, with companies like PayPal, Venmo and Stripe becoming household brands. (Not to mention the evolution of monoliths like American Express, Visa and Mastercard.)
Only three years ago, venture funding for fintech companies topped $140 billion. But since then, investment in the sector, particularly in early-stage rounds, has dwindled to levels not seen since Barack Obama was in the White House, totalling a mere $25 billion in 2023.
Caveat: I’m a huge admirer of fintech. It’s where I’ve spent most of my career, first at Braintree (acquired by PayPal), and later heading up Product at Venmo. I’ve seen firsthand how these companies have transformed societal habits around money.
But after diving down the rabbit hole with smart contracts and crypto, it became clear to me that blockchain is the new foundation we’ve been looking for to create a new global financial system.
Building anything involving traditional finance payments is complex and requires developers to take on a lot of scope — collecting user data, integrating payments and handling security, risk and compliance. If any one of those components is deficient, the entire system is doomed to fail. That’s a lot of responsibility for any project, and often requires small armies of developers to sustain.
So much time and resources are invested in overcoming risk-and-compliance barriers that you rarely see real innovation in building fintech products. Ultimately, many of these barriers relate to the complex web of regulations and requirements that have only become more complex as fintech has grown.
Blockchains not only solve those problems, but preclude them. Universal accounts mean there is no need to collect user data. Blockchains’ public and immutable ledger offers a single, universal and flexible payment system. Self-custody means developers can’t access user funds, which significantly simplifies considerations around security, risk and compliance.
In short, blockchain has eliminated many of the responsibilities that developers normally have to take on to build applications. That enables small teams to deliver uniquely valuable products to millions of people.
Just consider the impact that DEX pioneers like Uniswap and dYdX have had, springing from the heads of individual founders to quickly rival large corporate centralized exchanges in terms of trade volume, and then continuing to maintain absurdly small development teams thereafter.
Critics like to claim that crypto developers “don’t want to follow the rules,” but the reality is that blockchains and public key cryptography make many of the old rules irrelevant.
As a sector, crypto is burdened with regulatory inconsistencies and blind spots, of course. Applying old rules to new systems that have radically different characteristics was never going to make sense.
Innovation in fintech is being held back by the increasingly obsolescent traditional financial system. Blockchain gives fintech a new future because it is developing from a far stronger technical foundation where the possibilities have only just begun to be explored.

 

Link: https://blockworks.co/news/fintech-blockchain-breakthrough?utm_source=pocket_shared

Source: https://blockworks.co

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Blockchain gaming: An untapped goldmine https://www.fintechnews.org/blockchain-gaming-an-untapped-goldmine/ https://www.fintechnews.org/blockchain-gaming-an-untapped-goldmine/#respond Tue, 14 Jan 2025 13:53:45 +0000 https://www.fintechnews.org/?p=36415 By K Akash The Blockchain Advantage in Gaming At its core, blockchain technology is really a decentralized ledger ensuring complete transparency, security, and immutability. This benefits gaming at the grass-root level by allowing authentic ownership of in-game assets, creating new forms of play-to-earn models, and culminating in trust between players and developers. Game assets such […]

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By K Akash

The Blockchain Advantage in Gaming

At its core, blockchain technology is really a decentralized ledger ensuring complete transparency, security, and immutability. This benefits gaming at the grass-root level by allowing authentic ownership of in-game assets, creating new forms of play-to-earn models, and culminating in trust between players and developers.
Game assets such as skins, weapons, and other virtual real estate are tied to the specific games by which they are created and owned by developers. Blockchain disrupts this model by tokenizing assets as NFTs, thus giving players rights in owning, trading, or selling them on a cross-platform basis. A sword acquired in one game could be sold or used in another game and, hence, might give rise to a cross-game economy.

Emergence of Play-to-Earn Models

Another revolutionary concept in blockchain gaming has been the P2E, short for Play-to-earn. Here, players do not invest in cash without the possibility of material returns since every play is compensated with cryptocurrency or NFTs. Axie Infinity and Gods Unchained have already proven the viability of the model, with some players earning a full-time income through gameplay.
It democratizes gaming, empowers the players, mainly in regions with limited economic opportunities, and earns income while playing one’s favorite game. It also opens up a new category of professionals who thrive not in competitive e-sports but in blockchain-enabled virtual economies.

Opportunities for Developers

While revenues from such games can be extremely lucrative for players, blockchain gaming is also a goldmine for developers. By integrating blockchain technology, developers can tap into a passionate, rapidly growing community of gamers eager for decentralized experiences. Smart contracts automate distribution of awards and even transaction going through marketplaces, thereby reducing the operational costs and risk of frauds. In addition to this, the open architecture of the blockchain encourages collaboration, enabling rich gaming ecosystems, allowing developers to build from the earlier existing works.

Challenges on the Path to Gold

Despite its immense potential blockchain gaming faces massive obstacles. Scalability remains a challenge since most blockchain networks are yet to break the hardness of high transaction volumes, to which high gas fees on Ethereum-based platforms could limit involvement in many more transactions. It is for these reasons and issues that Layer 2 scaling and alternative blockchains like Solana and Polygon are offering some of the solutions.
Learning Curve is another hurdle. Most gamers are unfamiliar with blockchain wallets, cryptocurrency exchanges, and NFT marketplaces, which may make developers hard to onboard. It will need significant education to achieve mass adoption.
Another barrier is the steep learning curve. Many gamers are unfamiliar with blockchain wallets, cryptocurrency exchanges, and NFT marketplaces, creating an onboarding challenge for developers. Education and user-friendly interfaces will be critical to mass adoption.

The Road Ahead

Blockchain gaming is still in the initial stage, but the potential it has for disrupting games is considerable. As technology matures and more developers join, this is likely to reduce barriers to entry, leading to wider adoption.
Gamification, that is the combination of gaming and blockchain, would introduce novel games in which participants would be engaged as well as acquire wealth within decentralized economies. The governments and regulatory authorities would play a significant role in this new space as they protect fair practice while stimulating innovative ones in the process.

Conclusion

Blockchain gaming is the intersection of technology, creativity, and financial opportunities. It will empower a gamer’s right to economic freedom and introduce new innovation to the developers’ world. Right investments, partnerships, and strategies could turn this yet-untapped goldmine into the cornerstone of the next evolution of the gaming industry.

 

Link: https://www.analyticsinsight.net/gaming/blockchain-gaming-an-untapped-goldmine

Source: https://www.analyticsinsight.net

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How Ethereum 2.0 can transform DeFi https://www.fintechnews.org/how-ethereum-2-0-can-transform-defi/ https://www.fintechnews.org/how-ethereum-2-0-can-transform-defi/#respond Tue, 14 Jan 2025 07:10:02 +0000 https://www.fintechnews.org/?p=35661 The shift to proof-of-stake has raised worries about over-centralization. By reaffirming its commitment to decentralization, the blockchain can realize its goals, says James Wo, Founder & CEO of DFG. By James Wo The SEC’s decision in June to drop charges against Ethereum was a milestone in the platform’s journey toward maturity and greater acceptance in […]

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The shift to proof-of-stake has raised worries about over-centralization. By reaffirming its commitment to decentralization, the blockchain can realize its goals, says James Wo, Founder & CEO of DFG.

The SEC’s decision in June to drop charges against Ethereum was a milestone in the platform’s journey toward maturity and greater acceptance in the financial world.

For those who didn’t follow the case, the SEC believed ether (ETH) was sold as an unregistered stock, with concerns that it was being sold without following certain rules and protocols. However, Ethereum’s proponents argued that, since the network is decentralized, it does not meet the criteria of an investment contract or security.

While the SEC may have decided against direct legal action, it did open the door for further discussions around centralization. Some technological aspects of Ethereum’s architecture have stimulated an important dialogue around contracting power among influential entities. While these discourses are mainly internal, addressing these concerns can enhance the network’s upgrade goals and support true decentralization.

This is especially true as the network tries to embody the ideals of “Ethereum 2.0,” the stronger, more accessible, and more practical version of its token and infrastructure. Some say it’s already here, while others point out gaps that still need to be filled to definitively claim its arrival.

Yes, Ethereum 2.0 holds significant potential for transforming DeFi and the broader ecosystem, but we can’t just have a foot halfway through the door. To reach its full potential, key developments still have to be reached.

Validator centralization

By transitioning to a proof-of-stake (PoS) mechanism in September 2022, Ethereum now allows validators to stake ETH, with large stakes increasing validation chances and rewards. This upgrade clearly underscores Ethereum’s key role in DeFi by sparking countless innovative financial tools being created on the network for lending and trading, among other use cases.

However, emphasizing token ownership over the number of validators could potentially concentrate power among smaller groups, going against crypto’s ethos of decentralization. Moreover, staking requires an input of 32 ETH, meaning that validators with significant ETH staked can wield disproportionate influence over network governance and decision-making processes. This creates a feedback loop that favors certain participants, and can lead to power and wealth accumulating in the hands of a few individuals.

In March, Vitalik Buterin even expressed his concerns about “lazy stakers,” or those who engage solely in staking pools rather than solo staking — clearly indicating the relevance of the centralization issue.

At its core, Ethereum represents a shift in the way financial services are designed, accessed, and utilized. However, relying on a few entities continues to introduce risks and questions about how decentralized Ethereum 2.0 really is.

Shifting gears to DeFi

Ethereum’s path towards centralization sets the stage for more severe complications down the line — namely with regulators and reduced network resilience. Ultimately, Ethereum’s future within DeFi and the blockchain ecosystem as a whole hinges on balancing technical advancements while limiting centralization wherever possible. And there are ways to make it achievable.

If implemented correctly, concepts like rainbow staking could further enhance Ethereum’s adaptability while also combatting centralization. In essence, rainbow staking allows users to stake ETH across multiple pools and strategies simultaneously, effectively creating a “rainbow of rewards”, so to speak, that stakers receive while mitigating anti-competitive risks and building a more resilient ecosystem. The ETH validation process is separated into “heavy” and “light” staking — with “heavy” focusing on validation services for finalization and “‘light” staking zeroing in on censorship resistance of transactions.

For example, liquid staking protocols like Lido or Rocket could offer heavy service staking, while existing stakers can opt to run light service operators. Rainbow staking will eventually result in a more efficient and competitive network while granting more liquid staking provider diversity. However, executing it won’t be easy and could add confusion to the overall staking structure.

Beyond rainbow staking, Ethereum could leverage network-wide advancements already introduced in its initial 2.0 updates, like sharding. While sharding has been scrutinized for its security issues, justifying the shift to Layer 2 and zero-knowledge developments, that doesn’t mean the technology should be outright abandoned.

We have seen evolutions here thanks to developments like “danksharding” specifically for Layer 2s. Danksharding involves proposer-builder separation (PBS), a deviation from how Ethereum validators function now — proposing and broadcasting blocks entirely on their own. Instead, PBS shares the love and splits up these tasks among multiple validators.

Ultimately, danksharding helps implement data availability, allowing validators to verify blob data quickly and efficiently, while simultaneously identifying missing data.

The aim here is to make transactions on Layer 2 as cheap as possible for users and scale Ethereum to validate over 100,000 transactions per second. This would allow dApps such as Uniswap to process transactions at a significantly lower cost with quicker transaction approval times.

However, danksharding’s highly technical infrastructure and implementation leave out smaller rollups and potentially encourage centralization. So, while the technology has fallen out of favor as is, its benefits in reducing hardware and helping scalability show that the technology itself could be improved upon to benefit the next generation of Ethereum. Perhaps an Ethereum 3.0.

Ethereum 2.0’s significant strides in the regulatory and decentralization arenas shouldn’t be ignored. Reducing the network’s reliance on small groups of actors for network operations and legal wins are all positive steps forward. However, the next phase of Ethereum as a network must include adapting to evolving legal requirements to firmly establish itself as a transformative force in DeFi and mainstream blockchain usage alike.

Despite these hurdles, Ethereum 2.0’s current achievements have set the ecosystem on the right path. By focusing on the future and reaffirming a commitment to decentralization, Ethereum has the force behind it to maintain a dominant role as an innovator in the blockchain landscape.

Getting its affairs in order is just a small part of cementing its legacy.

 

Link: https://www.coindesk.com/opinion/2024/09/04/how-ethereum-20-can-transform-defi/?utm_source=pocket_saves

Source: https://www.coindesk.com

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