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Cosmos Hub greenlights ATOM inflation cut for security boost

The proposal secured a narrow passage, garnering 41.1% approval votes compared to 38.5% disapproval, marking the highest turnout vote in the Cosmos ecosystem.

The governing body of Cosmos Hub has endorsed a proposal to decrease the maximum inflation rate of its native token, ATOM (ATOM), from approximately 14% to 10%.

As per the proposal, the authorized modification would reduce Atom’s annualized staking yield from around 19% to approximately 13.4%. The Cosmos Hub is the primary blockchain within the Cosmos network, a system of interlinked blockchains. The native token of the Hub is Atom, employed for staking, governance, and transaction fees.

The proposal secured a narrow passage, garnering 41.1% approval votes compared to 38.5% disapproval, marking the highest turnout vote in the Cosmos ecosystem. Initially expected to fail shortly before the deadline, a last-minute influx of votes and some reversals from validators narrowly tilted the outcome in favor.

Screenshot of the proposal      Source: Mintscan

The proposal contended that Atom’s elevated inflation rate, compared to similar tokens, resulted in the Cosmos Hub overspending for security. It also argued that validators could still achieve breakeven or profitability even with inflation reduced to 10%.

Zero Knowledge Validator, the entity with the most substantial vote in favor of the proposal, justified its backing on X. A post asserted, “Double-digit inflation is unnecessary for security, undermines Atom price in the long run, and discourages the use of ATOM in DeFi and other areas within the Atom Economic Zone.”

Related: Azuki DAO rebrands to ‘Bean’ as it drops lawsuit against founder

The most significant opposition vote was cast by AllNodes, a validator, as outlined in a post on X. AllNodes argued that the change could negatively impact small validators, labeling the proposal as “...an abrupt, short-sighted, and ill-researched idea that might wreak havoc on retail and businesses engaged in building, trading, and validating Atom.”

Cosmos Hub recently upgraded to launch a liquid staking module, enabling users to bypass the previous 21-day unbonding period by unstaking ATOM funds. Before the upgrade, ATOM holders had a locking period of 21 days to move their funds after unstaking the token. With the new module, staked ATOM can be used in the Cosmos decentralized finance (DeFi) ecosystem without compromising yields from staking.

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Indexed Finance thwarts hijackers, set to compensate 2021 hack victims

In a thread on X, Laurence Day, a former core contributor, detailed the efforts of the Indexed community in overcoming two hijacking attempts on the remaining treasury of the Indexed DAO.

Indexed Finance, an Ethereum-based project that suffered a $16 million hack in 2021, has successfully thwarted two hijacking attempts. The project’s decentralized autonomous organization (DAO) control will be returned to its founders, aiming to allocate the remaining treasury to victims of the 2021 hack.

In a thread on X, Laurence Day, a former core contributor, detailed the efforts of the Indexed community in overcoming two hijacking attempts on the remaining treasury of the Indexed DAO. Both attackers acquired significant amounts of the protocol’s NDX token, aiming to take control of the DAO’s approximately $120,000 digital asset holdings through malicious proposals.

The initial proposal, lacking a title or description in an apparent effort to avoid detection, was thwarted as Day and fellow community members mobilized the Indexed DAO for votes against it. The attacker’s proposal neared approval within an hour, but sufficient 'no' votes were cast to prevent its passage.

Nonetheless, as the Indexed team had to openly coordinate votes against the proposal, Day anticipated the possibility of a copycat attack. Additionally, as Day detailed in his thread, an additional vulnerability could jeopardize funds beyond the DAO’s treasury if the DAO ends up in unfriendly control.

To mitigate the threat of a subsequent attack, the Indexed DAO approved a 'poison pill' proposal, granting them the authority to burn the remaining treasury funds if deemed necessary to deter potential attackers.

Related: Azuki DAO rebrands to ‘Bean’ as it drops lawsuit against founder

Upon the anticipated second attack, the assailant initially sought to negotiate for 50% of the remaining treasury, as revealed in on-chain messages. Indexed founder Dillon Kellar responded by proposing $10,000 in DAI stablecoins which is issued by MakerDAO and warned of burning the entire treasury if the attacker refused.

With only four hours left until Kellar’s ultimatum, and following an attempt to counter-negotiate for $17,000, the attacker accepted the original offer and withdrew their malicious proposal. Authority over the DAO will now return to a multisig controlled by Day, Kellar, and the pseudonymous co-founder PR0, with plans to compensate victims of the 2021 hack using the remaining treasury funds.

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Decentralized file sharing, explained

Decentralized file sharing is a peer-to-peer network system where files are distributed across multiple nodes, eliminating the need for a central server.

The importance of decentralization in file sharing

Decentralized file sharing revolutionizes data access by eliminating dependence on centralized servers and utilizing P2P technology to distribute files across a network of nodes.

Distributing and accessing data without depending on a centralized server is possible with decentralized file sharing. Rather, files are kept on a network of linked nodes, frequently through the use of peer-to-peer (P2P) technology

To enable file sharing, each network user can provide bandwidth and storage space. BitTorrent and InterPlanetary File System (IPFS) are two well-known instances of decentralized file-sharing protocols.

The decentralization of file sharing has completely transformed the way users access and store digital content. In contrast to conventional centralized file-sharing systems, which store files on a single server, decentralized file-sharing uses a P2P mechanism. Dispersing files among a network of linked nodes promotes a more robust and secure system.

Key components of decentralized file sharing

Decentralized file sharing depends on a number of essential elements to allow for a dispersed and safe data exchange. 

Firstly, P2P networks, which enable direct user contact in the absence of a centralized server, are the backbone of a decentralized file-sharing system. By doing this, a robust system where participants directly share files is fostered.

Blockchain technology is essential to maintaining integrity and trust in decentralized file-sharing networks. It improves the general security of transactions and file transfers by enabling transparent and impenetrable record-keeping. Smart contracts are self-executing contracts with pre-established rules that automate tasks like access control and file verification.

Furthermore, files are distributed throughout a network of nodes using decentralized storage systems, which often use protocols like BitTorrent or IPFS. This approach eliminates the need for a central server and enhances the availability and reliability of data due to its redundant nature.

Cryptographic methods also protect the integrity and privacy of data. User confidence in decentralized file-sharing systems is increased by end-to-end encryption, which guarantees that only authorized parties may view the content. Together, these elements essentially provide a safe and dispersed setting for easy file sharing via the decentralized web.

How does decentralized file sharing work?

Decentralized file sharing operates on P2P networks by leveraging a distributed architecture rather than relying on a central server.

Peer discovery

Participants in the network (peers) need a way to discover one another, which is accomplished by using distributed hash tables (DHTs) or decentralized protocols. Peers build a network without a central authority by keeping track of other peers with whom they are linked.

DHTs are decentralized systems that enable distributed storage and retrieval of key-value pairs across a network, while decentralized protocols enforce communication rules that enable peer-to-peer interactions without relying on a central authority or server.

File distribution

A file is split up into smaller parts where every component is dispersed among several network peers. This approach enhances file availability, as it is not stored in a single location, ensuring better accessibility and reliability.

Dispersed storage

By distributing file portions over several nodes, decentralized storage systems lessen reliance on a single server. For instance, IPFS employs a content-addressed approach, in which files are recognized by their content as opposed to their physical location.

Peer interaction

Peers request and share file portions directly with one another. The coordination of file transfers no longer requires a central server, thanks to this direct connection. Every peer participates in the file distribution process by serving as both a client and a server.

Blockchain and smart contracts

Blockchain technology is incorporated into several decentralized file-sharing systems to increase security and transparency. Smart contracts are self-executing contracts with pre-established rules that can automate tasks such as access restriction and file verification and reward participants with tokens.

Often, decentralized file-sharing systems use cryptographic techniques like end-to-end encryption to provide privacy and security for the shared files. This ensures that the content can only be accessed and deciphered by authorized users.

Working of a decentralized storage system

Advantages of decentralized file sharing

The benefits of decentralized file sharing include enhanced resilience, improved privacy, scalability and censorship resistance.

By removing a single point of failure, it improves reliability and resilience. In a peer-to-peer network, where files are dispersed among several nodes and peers, the system continues to function even in the event that some nodes go down.

Also, decentralized file sharing, by its very nature, offers enhanced security and privacy. By ensuring that only authorized users can access and decode shared content, cryptographic solutions like end-to-end encryption help lower the danger of unauthorized spying or data breaches.

Better scalability can also be attained as the network expands. In decentralized networks, more users add to the network’s capacity, allowing it to accommodate more demand and traffic without requiring modifications to the centralized infrastructure.

Additionally, decentralized file sharing encourages resistance against censorship. It is harder for any organization to censor or limit access to particular files or information because there isn’t a single entity in charge of the network.

Furthermore, decentralized file sharing frequently incorporates incentive mechanisms through token economies or other reward systems to encourage users to contribute resources like bandwidth and storage, thereby creating a cooperative and self-sufficient environment. 

Challenges and limitations of decentralized file sharing

Challenges associated with decentralized file sharing involve scalability issues, consistency concerns, user adoption complexities, security risks and regulatory uncertainties.

Firstly, as the network grows, scalability issues become more pressing. A poor user experience may result from increased involvement if it causes slower file retrieval times and greater bandwidth requirements.

Moreover, in decentralized systems, problems with consistency and coordination could surface. It may be difficult to maintain consistency in file versions throughout the network in the absence of a central authority, which could result in conflicts and inconsistent data.

Complicated interfaces and user acceptance present another difficulty. When compared to centralized options, decentralized file-sharing platforms frequently have a higher learning curve, which may put off consumers who are not familiar with P2P networks or blockchain technology.

Furthermore, security vulnerabilities still exist, especially in the early phases of decentralized file-sharing deployments. As these systems grow more widely used, they are targeted by different types of attacks, which makes the continuous development of strong security measures necessary.

Regulatory uncertainty is another difficulty. The adoption and long-term viability of decentralized file-sharing platforms may be impacted by the changing legal environment surrounding cryptocurrency and decentralized technology.

The future landscape of decentralized file sharing

The future of decentralized file sharing involves blockchain technology, P2P networks and tokenization for secure, efficient and collaborative data exchange, which challenge traditional models.

Decentralized file sharing is expected to bring about a more inclusive, secure and productive environment. Distributed ledger and blockchain technology will be essential in guaranteeing tamper-proof and transparent transactions and facilitating file sharing among users without depending on centralized intermediaries. 

Decentralized protocols powering peer-to-peer networks will enable direct data transmission between users, cutting down on latency and reliance on centralized servers. Strong encryption techniques will allay privacy concerns and provide consumers with more control over their data. 

Furthermore, tokenization could encourage resource sharing among users, resulting in the development of a collaborative ecosystem. Innovative file-sharing services will probably proliferate as decentralization gains pace, upending established paradigms and promoting a more robust and democratic digital environment.

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Yearn.Finance token tumbles 43%, community speculates on exit scam

Yearn.Finance's YFI token crashed over 43% in just five hours, after rallying almost 170% in November.

Yearn.Finance's governance token (YFI) plummeted over 43% in just five hours on Nov. 18 after rallying almost 170% early in the month, stirring fears about a possible exit scam. 

During the dramatic drop in value, over $300 million was wiped out in market capitalization from November's gains, according to data from CoinMarketCap. At the time of writing, the YFI token is trading at $9,069 from $14,185 a day before. However, the token is still up 83% over the past 30 days.

The sell-off has triggered another weekend of fear, uncertainty and doubt (FUD) within the crypto community. On X (formerly Twitter), some users claim that 50% of the token supply was held in 10 wallets controlled by developers. However, Etherscan data suggests that some of these holders may be crypto exchange wallets.

YFI token holders on Nov. 18, 2023. Source: Etherscan 

In addition, some X's users pointed out that opening short positions may have triggered the move. Data from Coinglass shows a jump in YFI open interest, indicating that traders are shorting the coin after November's gains.

"I bought the dip… someone sold 1000 coins perhaps that’s why it dropped massively. Will see," commented a trader on X. According to another user, YFI's price movement after the decline is unusual for exit scams:

"Doesn’t look like rugpull at all. Cuz inspite if so much sell off price is still stable at 9k which is 80% above its bottom."

Yearn.Finance is a decentralized finance (DeFi) protocol that provides automated trading solutions for DeFi markets. Andre Cronje, an Ethereum developer and entrepreneur, launched the protocol in July 2020. Cointelegraph reached out to Cronje and Year.Finance but did not receive an immediate response.

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Ethereum L2 Starknet aims to decentralize core components of its scaling network

Starknet has laid out its roadmap to begin decentralizing core components of its Ethereum L2 scaling network to defend against censorship and improve robustness.

Ethereum layer-2 scaling network Starknet has outlined plans to improve the decentralization of three core components of its zero-knowledge (ZK) proof rollup solution.

Speaking exclusively to Cointelegraph, Starknet product manager and blockchain researcher Ilia Volokh outlined the firm’s intent to address certain centralized elements of its protocol aimed at defending against censorship and making its system more robust.

Starknet operates as a validity rollup using ZK-proof technology to bundle transactions, with cryptographic proofs submitted to Ethereum to achieve security and finality for layer-2 transactions.

According to Volokh, Starknet’s protocol remains dependent on StarkWare for creating L2 blocks, computing proofs and initiating layer-1 state updates to the Ethereum blockchain.

“In this sense, the operation of the network is centralized. This is not necessarily a bad thing because although Starkware operates the network, it cannot steal money and can’t do any invalid state transitions because they require executing the verifier on Ethereum,” Volokh explained.

While Starkware remains a “centralized gateway” to enter Starknet, Volokh added that the protocol is “100% honest” and cannot falsify transactions or information, as Ethereum’s layer-1 blockchain acts as a filter.

The only tangible way in which Starknet can “misbehave” is either by being idle in not relaying proofs to Ethereum or by specifically censoring certain parties from including transactions or proofs.

“For example, if the sequencer decides to exclude a transaction from a particular entity, they’re free to do so. As long as the other things that they are trying to promote are valid.”

For Starknet, the latter consideration is part of the main reason to decentralize parts of its protocol in an effort to combat two main causes of censorship in consensus-based systems.

Intentional censorship is one consideration, while “non-robust” systems that have a single point of failure present another threat to decentralization, given that all network participants would be “censored” if this central point caused a network or system outage.

“We want to solve both of these problems, and we think the obvious solution to both of them at the same time is to have as many people operating Starknet as possible.”

Decentralizing these different components of Starknet’s system entails varying degrees of difficulty. This includes decentralizing block production through its consensus protocol, decentralizing the proving layer, which is in charge of computing proofs for blocks and decentralizing the process of L1 state updates.

“I want to emphasize that it’s crucial to decentralize each of them because as long as even one of them is centralized, you haven’t achieved much,” Volokh added before unpacking the relevant challenges of each component.

Decentralizing block production has been fairly straightforward given that all blockchains rely on a consensus protocol and sybil-resistance mechanism. Meanwhile, decentralizing Starknet’s prover has required a more novel approach.

“As far as I know, we’re the first rollup that has come out with a fairly complete and concrete solution,” Volokh said. He also went on to unpack how competing ZK-rollups all essentially aggregate transactions into proofs and post them on Ethereum, which by extension transfers its own decentralization to rollup solutions.

However, these systems all rely on respective central entities to create and prove blocks, which means these layer 2s are “equally centralized.” Whether end users are concerned about the philosophical implications of the centralized components of L2s is another conversation altogether for Volokh:

“The people who appreciate decentralization do so because they understand that it gives more security, and we share those values more than we think people will like them for commercial reasons.”

Volokh added that Starknet is still in the process of outlining the process of testing and implementing these decentralized mechanics in its network. This is likely to be carried out through a series of interconnected testnets to test the simultaneous functionality of the different components.

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Microsoft, Tencent and other tech giants join decentralized Infura network

Infura said the partnerships mark a major milestone in decentralizing and making its network more censorship-resistant.

Microsoft, Tencent and 16 other Web2 giants have partnered with Consensys on its mission to decentralize the Infura network — the key point of access to Ethereum for much of the decentralized finance (DeFi) sector.

The partnerships aim to increase decentralization on the Infura network — key to preventing outages of the Web3 services that leverage it, including the wallet service MetaMask.

Speaking to Cointelegraph, DIN senior product manager Andrew Breslin said the significance of the partnerships was less about “who they were” and more about the big-name firms aligning with Infura in “wanting to decentralize every layer of the blockchain infrastructure stack.”

Scheduled for a Q4 launch, the DIN stands as a solution to the problem of centralization for Infrua, with the network currently controlled by Consensys — meaning that there remains a single point of failure.

“The cost and complexity involved with running a service like Infura was kind of limiting in terms of who we could partner with to serve this traffic,” said Breslin. “Now there’s this huge flourishing ecosystem of Web3 infrastructure providers that can provide a service that’s complimentary to Infura.”

Breslin said one of the first major features offered in the DIN is “failover support” for the Ethereum and Polygon networks. Failover support means that in an outage, traffic can be re-routed to one or multiple DIN partners, guaranteeing higher uptime rates in the long run.

Upon launch, the DIN will allow for more reliable and censorship-resistant access to Ethereum as DApps won’t need to rely on a single service provider located in just one place, Breslin said.

Developed by the blockchain software giant Consensys, Infura offers a development suite that provides API access to the Ethereum and IPFS networks. At present, Infura is the access point for most DApps to access real-time on-chain data from the Ethereum blockchain.

In November 2020, the centralization issue came to light when the MetaMask wallet stopped working due to Infura suffering a temporary outage. Several centralized exchanges and DeFi projects were also affected by the downtime.

Decentralizing blockchain data providers on the Infura network is critical for censorship resistance in the long term because, at present, centralized data providers can be shut down with a single well-planned attack or sufficient legal action.

Related: ‘End of an era’ — Consensys sunsets Truffle, Ganache amid shift to MetaMask Snaps

Speaking to the roster of newly announced partners, Breslin said the current lineup was not a closed set and that Infura wanted to let other “highly reliable” internet infrastructure providers know that Infura is open to them joining the DIN as well.

“The success of DIN is reliant on us collaborating with more and more operators over time.”

The cohort of new companies is working with Infura in what Breslin called the “federated phase” of the DIN — a temporary trial period where the network remains centralized.

“Infura and these 18 partners are now participating in this federated phase of DIN, which means that we work as equal partners,” said Breslin.

In the future, Breslin said the DIN would ideally be governed as a decentralized autonomous organization (DAO) or some other type of governance structure that ensures each partner has a democratically weighted say in the direction of the network.

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Why the service industry needs blockchain, explained

The service industry needs blockchain for enhanced security, transparency and efficiency in managing transactions, contracts and customer data.

The need for blockchain technology in the service industry

Blockchain technology has the potential to completely transform the services sector by improving efficiency, security and transparency. 

Blockchain technology reduces the risk of fraud and errors in industries, including supply chain management, healthcare, and media and entertainment, by ensuring tamper-proof record-keeping through decentralized ledgers. 

Blockchain-based smart contracts, or self-executing contracts, automate work and lessen the need for intermediaries to manage legal and real estate services operations. Additionally, blockchain enables safe and quick transactions in the hospitality industry, facilitating easy international payments and loyalty program administration.

Moreover, blockchain improves data security in customer care, protecting the privacy and confidence of customers. Additionally, it helps with supply chain traceability, which is essential for confirming the legitimacy of goods in sectors like food and medicine. Blockchain lowers costs by doing away with the need for intermediaries, giving customers access to more economical services.

How can blockchain revolutionize retail transactions?

Blockchain technology improves trust, lowers expenses, and opens up new and creative alternatives for both customers and retailers.

One way it achieves this is by enabling secure and decentralized payment systems. For example, peer-to-peer transactions are made possible by cryptocurrencies, such as Bitcoin (BTC) and Ether (ETH), which use blockchain technology to eliminate the need for intermediaries like banks. This improves the consumer experience by lowering transaction fees and expediting the payment process.

Additionally, blockchain enhances retail supply chain management. Retailers can track a product’s route from manufacturer to customer with clear, tamper-proof ledgers. By guaranteeing product authenticity, this transparency lowers the possibility of fake items entering the market. For instance, IBM’s Food Trust Network uses blockchain technology to track the provenance of food products, giving consumers and retailers confidence in the legitimacy and caliber of goods shown on store shelves.

Retailers can also utilize nonfungible tokens (NFTs) that represent unique retail items, like limited edition products or digital assets, ensuring authenticity and provenance. This uniqueness appeals to collectors and enthusiasts, creating new revenue streams for retailers.

Furthermore, loyalty programs built on blockchain technology might encourage client involvement. To promote customer loyalty and maintain the security and integrity of reward programs, retailers can issue tokens on a blockchain that consumers can accumulate and redeem at different stores. 

The role of blockchain in health records management

Blockchain technology plays a pivotal role in health records management by ensuring secure, interoperable and tamper-proof storage of sensitive patient information.

Patient records in the healthcare industry are frequently dispersed among several systems and providers, which compromises data integrity and causes inefficiencies. By implementing a decentralized, unchangeable ledger where patient records are safely kept and unifiedly accessible, blockchain solves these issues.

For instance, people can be in charge of their medical records via MedRec, a blockchain-based platform that gives healthcare providers access to them when needed. Additionally, Estonia’s e-Health Authority implemented blockchain technology to safeguard medical records, guaranteeing that patient information is shielded from alteration and illegal access. This facilitates the exchange of medical information among experts, improving patient care and diagnosis accuracy while also enhancing data security and privacy.

Furthermore, patient records can be uniquely tokenized using NFTs, improving their integrity and thwarting tampering. Guaranteeing the confidentiality and legitimacy of medical data helps build confidence between patients and healthcare professionals.

How does blockchain enhance efficiency and reduce costs in the hospitality industry?

Blockchain technology enhances efficiency and reduces costs in the hospitality industry through various applications that streamline operations and improve customer experiences. 

Cryptocurrencies built on blockchain technology allow for quick and safe cross-border transactions; they eliminate the need for currency conversions and the transaction costs connected with using traditional banking systems. This simplified payment process lowers expenses for both customers and businesses while accelerating transaction speeds.

Blockchain also improves hotel reservations by doing away with intermediaries. By using blockchain-based platforms like LockTrip, hotels are able to list their rooms directly to consumers, negating the need for intermediary booking websites. Hotels can maximize earnings while providing clients with lower pricing by eliminating intermediaries. In addition to lowering commission expenses, this direct communication between hotels and visitors also promotes a more open and competitive pricing environment.

Furthermore, blockchain technology can be advantageous to hotel loyalty programs. Through blockchain technology, hotels may create digital tokens that can be tracked and securely establish reward programs. The simplicity of managing these tokens lowers the administrative burden and guarantees the integrity of loyalty programs.

Blockchain applications in legal and real estate transactions

By providing a secure and transparent framework, blockchain technology streamlines legal and real estate transactions, instilling trust among parties involved and paving the way for a more efficient and reliable future in these sectors.

Blockchain prevents fraud and tampering in the legal realm by using cryptographic hashes to guarantee the integrity of contracts and legal documents. Encoded in the blockchain, smart contracts are self-executing agreements that automate the performance of contractual obligations, eliminating the need for intermediaries and minimizing disputes.

Blockchain makes real estate transactions more transparent by keeping track of ownership information, past transactions and legal papers in a decentralized ledger. This unchangeable record guarantees the validity of property titles, lowering the possibility of real estate fraud. Furthermore, blockchain-enabled platforms streamline the process of buying real estate by reducing paperwork and administrative expenses and enabling speedier and securer transactions.

Through a process known as tokenization, real estate assets can be tokenized to allow for the division of properties into smaller, exchangeable parts. This allows tokens to be bought, sold and traded on blockchain-based platforms by investors.

This approach provides liquidity to traditionally illiquid assets, allowing for more efficient and diverse investment opportunities in the real estate market. Additionally, by enabling developers to sell tokens that reflect future revenue or ownership holdings in the project, it streamlines the fundraising process for real estate development projects.

How does blockchain technology impact and improve the media and entertainment industry?

By guaranteeing transparency, equitable pay and content security, blockchain technology transforms the media and entertainment industries.

Direct transactions between customers and artists are made possible by smart contracts, which remove the need for intermediaries and guarantee that artists are paid fairly and promptly.

Furthermore, by giving content creators the opportunity to directly monetize their work, decentralized platforms promote a more just economy. The immutability offered by blockchain technology improves copyright protection by discouraging piracy and guaranteeing that creators maintain ownership of their creations.

Additionally, it makes royalty distribution public, removing disparities and guaranteeing just compensation for all parties involved. Tokenization democratizes investment opportunities by enabling partial ownership of media assets. 

Digital rights management based on blockchain also guarantees safe and traceable content distribution. This technology empowers the industry to create a more effective, equitable and safe environment by empowering artists, creators and customers equally.

Blockchain implementation challenges in the service industry

Integrating blockchain into existing service industry infrastructure poses challenges due to diverse platforms, data privacy concerns and interoperability issues.

The difficulty of integrating blockchain with existing infrastructure and processes is a significant obstacle. Because service providers frequently use a variety of platforms and technologies, achieving seamless integration can be difficult. It might be difficult to protect data security and privacy while still adhering to regulations.

Blockchain’s transparency conflicts with the requirement to protect sensitive customer information, necessitating careful design and implementation of privacy measures. Another major challenge is establishing communication and data exchange across various blockchain networks and traditional systems. To facilitate seamless interoperability, service providers need to spend time developing standardized protocols, which can be expensive and time-consuming.

Moreover, there are scalability concerns. Blockchain networks, especially public ones, may face limitations in handling a high volume of transactions efficiently. Delays and higher expenses may result from this, especially in service industries where several quick transactions are necessary.

Finally, it’s critical to inform staff members and stakeholders about blockchain technology and its possible uses. Careful planning, teamwork and continual adaptability to the fast-changing blockchain landscape are required to overcome these obstacles.

Vijay Chetty Steps Up as CEO of Eclipse Labs After Founder Neel Somani’s Departure Over Allegations

Web3 social media to disrupt a $100B market: Pop Social joins Cointelegraph Accelerator

Web3 social media dApp Pop Social becomes the newest member of the Cointelegraph Accelerator program.

The growth of social media has made it possible for everyone to become a content creator. And while the creator economy grew, incentives to become part of it continued to diminish. Since the $100 billion market is dominated by a handful of centralized platforms, creators hardly ever see a fair compensation for their efforts. 

YouTube, for example, has only recently started paying out a minor share (45%) of the ad money from Short videos to creators. Streaming platform Spotify also cuts 30% from ad revenue, leaving creators to share $0.003 to $0.005 with right holders and publishers per stream. 

Add to this the growing concerns about data ownership and the lack of sustainable financial models, it becomes clear that the creator economy needs to reestablish itself by placing users and creators at its heart. As the digital landscape evolves, it’s crucial to utilize a decentralized approach to overcome the major challenges of the creator economy.

Web3 social media where users and creators come first

Pop Social, a Web3-friendly social media platform, combines SocialFi, Web3 and artificial intelligence (AI) to address the key pain points of content creation faced by users and creators alike. The platform aims to eliminate the exploitation of creators by providing fair compensation for creators while introducing a new mechanism to reward users for their engagement as well. To achieve this, Pop Social diversifies its revenue streams by including AdTech revenue, nonfungible token (NFT)-related earnings, Phygital Stores and Open-API subscription models, to ensure a sustainable financial foundation. 

Using an on-chain unique profile ID and enabling users to bring their own IDs from other decentralized protocols, Pop Social goes all in for true content ownership. With the AI integration, users will be able to see personalized recommendations based on meritocracy rather than popularity. Pop Social uses AI to provide a more balanced experience for users while building a foundation for reliable information flow to prevent fake news through its platform. It aims to create a vibrant and inclusive social ecosystem by focusing on social recovery, user-controlled data privacy and transparent content moderation policies.

An integral part of the Pop Social ecosystem, Pop Labs operates as a launchpad for innovation, driven by generative AI, creator incubation, and project initiatives.

“We envision a future where Social, Web3, and AI convergence redefines how we interact, create, and thrive in the digital realm,” Michael Shen, CEO of Pop Social, told Cointelegraph. “At the heart of this vision is empowering individuals, content creators, and communities through a seamlessly integrated ecosystem.” 

“SocialFi should aim to create an exciting and inclusive ecosystem where users, creators, and communities thrive financially while reaping the benefits of a decentralized, transparent, and secure social experience.”

Cointelegraph Accelerator welcomes Pop Social as a participant in its growing roster of promising projects. Given the disruptive potential the Web3-native social decentralized applications (DApps) hold against the $100 billion creator economy. With good traction regarding active users and app downloads, Pop Social has a founding team of experts who have substantial experience in the blockchain industry.

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‘107,000 GPUs on the waitlist’ — io.net beta launch attracts data centers, GPU clusters

Io.net’s recently developed decentralized physical infrastructure network has moved into its beta phase, allowing GPU computing providers to plug into the platform.

Over 100,000 GPUs from data centers and private clusters are set to plug into a new decentralized physical infrastructure network (DePIN) beta launched by io.net.

As Cointelegraph previously reported, the startup has developed a decentralized network that sources GPU computing power from various geographically diverse data centers, cryptocurrency miners and decentralized storage providers to power machine learning and AI computing.

The company announced the launch of its beta platform during the Solana Breakpoint conference in Amsterdam, which coincided with a newly formed partnership with Render Network.

Tory Green, chief operating officer of io.net, spoke exclusively to Cointelegraph after a keynote speech alongside business development head Angela Yi. The pair outlined the critical differentiators between io.net’s DePIN and the broader cloud and GPU computing market.

Related: Google Cloud broadens Web3 startup program with 11 blockchain firms

Green identifies cloud providers like AWS and Azure as entities that own their supplies of GPUs and rent them out. Meanwhile, peer-to-peer GPU aggregators were created to solve GPU shortages, but “quickly ran into the same problems” as the exec explained.

The wider Web2 industry continues to look to tap into GPU computing from underutilized sources. Still, Green contends that none of these existing infrastructure providers cluster GPUs in the same way that io.net founder Ahmad Shadid has pioneered.

“The problem is that they don't really cluster. They're primarily single instance and while they do have a cluster option on their websites, it's likely that a salesperson is going to call up all of their different data centers to see what’s available,” Green adds.

Meanwhile, Web3 firms like Render, Filecoin and Storj have decentralized services not focused on machine learning. This is part of io.net’s potential benefit to the Web3 space as a primer for these services to tap into the space.

Green points to AI-focused solutions like Akash network, which clusters an average of 8 to 32 GPUs, as well as GenSyn, as the closest service providers in terms of functionality. The latter platform is building its own machine learning compute protocol to provide a peer-to-peer “supercluster” of computing resources.

With an overview of the industry established, Green believes io.net’s solution is novel in its ability to cluster over different geographic locations in minutes. This statement was tested by Yi, who created a cluster of GPUs from different networks and locations during a live demo on stage at Breakpoint.

io.net's user interface allows a user to deploy a cluster of GPUs from different locations and service providers globally. Source: io.net

As for its use of the Solana blockchain to facilitate payments to GPU computing providers, Green and Yi note that the sheer scale of transactions and inferences that io.net will facilitate would not be processable by any other network.

“If you're a generative art platform and you have a user base that's giving you prompts, every single time those inferences are made, micro-transactions behind it,” Yi explains.

“So now you can imagine just the sheer size and the scale of transactions that are being made there. And so that's why we felt like Solana would be the best partner for us.”

The partnership with Render, an established DePIN network of distributed GPU suppliers, provides computing resources already deployed on its platform to io.net. Render’s network is primarily aimed at sourcing GPU rendering computing at lower costs and faster speeds than centralized cloud solutions.

Yi described the partnership as a win-win situation, with the company looking to tap into io.net’s clustering capabilities to make use of the GPU computing that it has access to but is unable to put to use for rendering applications.

Io.net will carry out a $700,000 incentive program for GPU resource providers, while Render nodes can expand their existing GPU capacity from graphical rendering to AI and machine learning applications. The program is aimed at users with consumer-grade GPUs, categorized as hardware from Nvidia RTX 4090s and under.

As for the wider market, Yi highlights that many data centers worldwide are sitting on significant percentages of underused GPU capacity. A number of these locations have “tens of thousands of top-end GPUs” that are idle:

“They're only utilizing 12 to 18% of their GPU capacity and they didn't really have a way to leverage their idle capacity. It's a very inefficient market.”

Io.net’s infrastructure will primarily cater to machine learning engineers and businesses that can tap into a highly modular user interface that allows a user to select how many GPUs they need, location, security parameters and other metrics.

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Moody’s unveils service that uses AI to predict stablecoin depeggings

Moody’s Analytics will use machine learning and a host of indicators to compile and analyze large-cap stablecoins and identify probable depeggings.

Moody’s Analytics is launching a new stablecoin service that will use AI to predict probable depeggings “in a 24-hour time horizon” while providing real-time insights about stablecoin issuers’ liquidity and stability.

The stablecoin market is getting stabler, Moody’s observed in its Nov. 6 announcement for the launch of Digital Asset Monitor. 

So far in 2023, there have been 1,914 depeggings, of which 609 were of fiat-backed large-cap stablecoins. This compares with 2,847 in all of 2022, of which 707 were large-cap. While some correlation to rising interest rates can be observed, a number of coin-specific causes can also be detected, Moody’s said.

Schematic of Moody's Digital Assets Monitor. Source: Moody's

Moody’s DAM will track 25 fiat-backed stablecoins that represent over 92% of total stablecoin market capitalization. They include Tether (USDT), USD Coin (USDC), and PayPal Coin (PYUSD). More stablecoins will be incorporated into the service in time, according to its website:

“Digital Asset Monitor (DAM) is a machine learning model that combines on and off chain data, financial statements and economic indicators.”

Besides identifying depegging risks, the service will indicate “the stablecoin’s market and liquidity dynamics, the stability of the stablecoin issuer, the custodians that hold the stablecoin’s assets, and the quality of these reserves.” In addition, it will provide “a transparency index that will highlight the quality of disclosures made by the entities behind these fiat-backed stablecoins.”

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“The tool was built in a year using agile-development frameworks to address customer needs,” Moody’s Analytics’ product innovation senior director, Yiannis Giokas, said in the announcement.

Reports that the company was developing the new service emerged at the beginning of the year. Moody’s Analytics is a separate company from Moody’s Ratings. It provides commentary on aspects of the crypto assets market on a regular basis.

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