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Economic Secretary Outlines UK’s Ambitious Plans for Digital Asset Adoption

Economic Secretary Outlines UK’s Ambitious Plans for Digital Asset AdoptionThe UK’s Economic Secretary to the Treasury has said the Digital Securities Sandbox is set to help facilitate the adoption of distributed ledger technology across capital markets. Examining Benefits of DLT in Debt Issuance Process Tulip Siddiq, the United Kingdom’s Economic Secretary to the Treasury, said the recently opened Digital Securities Sandbox (DSS) will help […]

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CFTC report endorses tokenizing trading collateral 

Distributed ledger technology can help solve longstanding challenges in US financial markets, the report says.

The Commodity Futures Trading Commission (CFTC) has endorsed using blockchain technology to manage trading collateral in United States derivatives markets, according to a Nov. 21 report by the CFTC’s Global Markets Advisory Committee.

Blockchain technologies — including distributed ledgers and tokenization — can address longstanding challenges for traditional derivatives exchanges and expand the variety of assets available to collateral trades, the report said.

“All over the world, there have been successful and proven commercial use cases for tokenization of assets,” CFTC Commissioner Caroline D. Pham said in a statement, adding:

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ECB official proposes unified European ledger for digital assets

European Central Bank executive board member Piero Cipollone would like to see a sort of European union for digital assets.

A European Central Bank (ECB) official has introduced the idea of a “European ledger” — a continental unified ledger. Such a blockchain could bring European digital assets and money together in one place, leading to greater efficiency and synergy. 

ECB executive board member Piero Cipollone said Europe’s traditional capital markets are fragmented and have unharmonized legislation to overcome, but there is a chance to create a unified platform for digital assets. He called that platform a digital capital markets union.

According to Cipollone, more than 60% of banks in the European Union are exploring or experimenting with distributed ledger technology (DLT), and another 22% already use it. But while DLT provides an opportunity to create financial integration, it does not guarantee it, Cipollone said at a symposium hosted by the German central bank. On the contrary:

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Here’s a Potential Downside Price Target for Cardano If ADA Sees New Correction, According to Benjamin Cowen

ASX sued over prior statements about its now-abandoned blockchain project

The Australian Securities and Investments Commission has sued the stock exchange for alleged “misleading statements” it made over its abandoned blockchain upgrade plan.

The Australian Securities and Investments Commission (ASIC) has sued the country’s leading stock exchange in Federal Court, alleging it made “misleading and deceptive” statements over its now-abandoned project to replace its aging systems with blockchain technology. 

ASIC said on Aug. 14 that the Australian Securities Exchange’s (ASX’s) statements that the replacement project for its Clearing House Electronic Subregister System (CHESS) trading platform was “on track for go-live” in April 2023 and was “progressing well” were misleading.

The regulator claimed the project “was not tracking to plan” at the time the statements were made in early February 2022, and the ASX had no “reasonable basis” to imply the project would be ready by that date.

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Here’s a Potential Downside Price Target for Cardano If ADA Sees New Correction, According to Benjamin Cowen

US military partner Constellation opens Hypergraph network to app developers

The “Layer 0” network was created in collaboration with the United States Department of Defense and is now open for commercial Web3 applications.

On July 15, Constellation Network opened its Hypergraph blockchain, created in partnership with the United States military, to application developers at a global hackathon event hosted alongside technology giants IBM and Panasonic.

The hackathon marks the debut of Constellation’s “meta graph” application layer, which enables third-party developers to build Web3 applications—or even new layer 1 blockchains—on top of Hypergraph’s existing network.

Hypergraph is a so-called “Layer 0” protocol designed to validate and store data from interoperable applications and networks—known as “meta graphs”—on its ledger. According to the announcement, its meta graphs can work with any data type, interface directly with external data sources, and accept mainstream programming languages such as Java.

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ECB’s Joachim Nagel Urges Central Banks to Evolve: ‘We Need to Work on Our Business Model’

ECB’s Joachim Nagel Urges Central Banks to Evolve: ‘We Need to Work on Our Business Model’Joachim Nagel, President of the Deutsche Bundesbank and Member of the Governing Council of the European Central Bank (ECB), has raised concerns about central banks’ business model. “If part of your core product is loosening attractiveness then you have to think about another new core product,” he stressed. ‘We Need to Speed up on All […]

Here’s a Potential Downside Price Target for Cardano If ADA Sees New Correction, According to Benjamin Cowen

IOTA makes 40%+ move after $100M ecosystem foundation announcement

IOTA price saw a high volume surge that took the altcoin to a near 1-year high, but are there reasons to support further upside?

IOTA, an open-source distributed ledger and cryptocurrency focused on the Internet of Things (IOT), saw its native IOTA token rally 43% on Nov.

According to a press release from the project, the foundation will be seeded with $100 million in IOTA tokens, which will be vested over a four-year period and traders clearly perceived the announcement and funding plan as a short-term bullish catalyst.

Historically, ecosystem and developer incentives by blockchain and DeFi protocols tend to attract liquidity to the project and boost market participants sentiment.

In August 2021, Avalanche’s AVAX token went on a 1,400% tear after the announcement of the Avalanche Rush DeFi incentive program.

A similar outcome was seen with Trader Joe’s JOE token in the months following December 2022 after the DeFi protocol announced plans to establish a presence on Arbitrum.

Currently, the Arbitrum ecosystem is hosting liquidity and developer incentives and these initiatives align with the recent 62% resurgence in ARB token price.

Was IOTA’s price move another sell-the-news event?

On Nov.

Traders often interpret funding rates and longs-to-shorts ratios as sentiment gauges and indicators of how active investors are positioned.

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IOTA launches $100 million Abu Dhabi foundation for Middle East expansion

The IOTA Ecosystem DLT Foundation is the first to receive approval from regulators in Abu Dhabi after its financial authority passed a new, related law earlier in the month.

The open-source blockchain developer IOTA announced on Nov. 29 that it is launching a foundation, the IOTA Ecosystem DLT Foundation, based in Abu Dhabi to focus on the growth of its distributed ledger technology (DLT) in the Middle East region.

According to the announcement, the new foundation will be supported by $100 million IOTA digital tokens, which will be vested throughout the course of the next four years.

One of the primary goals of the foundation is to push for accelerated growth of its DLT and “convert real-world assets into digital ones” according to the company’s co-founder and chairman Dominik Schiener.

"The market right now is being reshuffled so we have a big opportunity to position ourselves by focusing on onboarding institutions, offering them to work on-chain because now it's more feasible to do that in the UAE.”

In addition to growing its technology to support developments in the Middle East region, the network will begin “tokenizing” assets. 

Hamad Sayah Al Mazrouei, the chief executive of the Registration Authority of the Abu Dhabi Global Market (ADGM), said the country aims to be “the leading jurisdiction for the blockchain industry."

Related: Siemens and Microsoft partner to push AI adoption in industrial sectors

The IOTA Ecosystem DLT Foundation became among the first blockchain-focused organizations to be approved by regulators from the ADGM.

This development comes less than a month after ADGM introduced comprehensive regulations on Nov. 2 targeting DLT foundations like IOTA. The regulations claim to provide opportunities for organizations to expand into DLT in the region.

According to the new regulations, compliance includes disclosing names of key figures, having a name that ends with “DLT Foundation,” a council consisting of two and 16 members, tokenholders being treated as beneficiaries, and not being allowed to conduct activities licensable by the ADGM.

This new framework also paves the ways for DAOs to legally operate and issue tokens to its members.

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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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Blockchain adoption continues unabated — Bloomberg analyst

Blockchain adoption has been "unabated" throughout bull and bear markets over the past years, says Bloomberg analyst Jamie Coutts.

Should the current rate of adoption continue, blockchain technology could have 100 million daily users by 2028, according to projections by Bloomberg Intelligence analyst Jamie Coutts. 

On X (formerly Twitter), Coutts pointed out that blockchain adoption has been "unabated" throughout bull and bear markets over the past years. "Not having exposure to one of the largest structural trends of the next decade could be costly," said the analyst.

Daily active addresses exceed 5 million in the third quarter of 2023, up 14% from 2022, according to Coutts, while quarter-on-quarter growth has averaged 29% since 2019. "If we apply a more moderate 20% QoQ growth rate then we could reach 100 million daily users by 2028."

Coutts compared blockchain rate adoption with PayPal’s rate growth. According to him, it took the fintech giant 13 years to reach 100 million daily users. "If Ethereum was day zero for smart contracts (2015) then it may take a similar time frame for blockchains to reach similar level of adoption," he added.

Keeping the current pace of adoption, blockchain-based companies may also see a rise in valuations. Coutts noted that basic regressions show the blockchain ecosystem could be valued between $5 trillion to $14 trillion once 100 million users are onboard. "Thats up from $350b today."

Coutts projections are consistent with data suggesting sustained interest in blockchain technology. In spite of the market downturn, development in the crypto industry rose 5% in 2022. Additionally, a survey conducted by Celent in 2022 showed that 91% of institutional investors are interested in investing in tokenized assets — blockchain-based tokens that represent ownership of physical and digital assets.

"While overly simplistic extrapolations such as this should never be soley relied on for valuation purposes it, the exercise illustrates that users and prices are inextricably linked and that as adoption continues prices are likely to track much higher for some assets," Coutts predicted.

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