Consensus 2023: Businesses show interest in Web3, despite US regulatory challenges

May 4, 2023 Coin Telegraph

Analysis

Despite negative sentiment toward crypto adoption in the United States, Consensus 2023 attracted thousands of attendees to discuss the potential of blockchain technology and cryptocurrency.

Consensus, the annual crypto and blockchain conference, attracted over 15,000 attendees, 220 sponsors and 410 speakers to its 2023 edition in Austin, Texas, despite recent regulatory struggles around cryptocurrency adoption in the United States.

The turnout at Consensus 2023 demonstrated that U.S.-based companies and international organizations are still very much interested in implementing Web3 technology into their business models.

Caitlin Long, founder and CEO of Custodia Bank — a Wyoming-based digital asset bank — told Cointelegraph that the conference attracted serious ecosystem participants, saying, “We’ve seen during crypto winters before where Consensus gets overrun with high time preference people and companies (for example, multiple Lambo’s parked out front of the New York Hilton in 2018), and in bust years the low-time preference people and companies just keep building. This year was the latter.”

ADIOS AUSTIN! This was my fave #Consensus conf since 2017—by my guess it had the highest % in attendance of fellow “low-time preference peeps on principled missions” since that year. Huge thanks to everyone who showed your support—it was like a great big warm hug! Safe home! pic.twitter.com/NOPmU03VAV
— Caitlin Long ⚡️ (@CaitlinLong_) April 29, 2023

Businesses discuss Web3 strategies

Several large organizations were present at Consensus 2023, with Mastercard, Google, Robinhood and Coinbase, among others, gathering to discuss their Web3 strategies.

James Tromans, head of Web3 at Google Cloud, told Cointelegraph about some blockchain-based initiatives the company has recently launched.

“At the end of last year, Google Cloud announced Blockchain Node Engine, which allows users and developers to run an Ethereum node without having to manage or support it themselves,” he said.

Recent: Will compromise on anonymous crypto appease US regulators, spur adoption?

At Consensus, the firm announced that it had expanded support for the Blockchain Node Engine to Polygon proof-of-stake, in addition to Ethereum.

Tromans added that Google Cloud knows what Polygon has been doing in the zero-knowledge (ZK) space, noting that Polygon ZK Ethereum virtual machines (zkEVM) and Polygon supernets will benefit from the provision of Google Cloud’s infrastructure and developer tools.

Moreover, Tromans pointed out that Google Cloud’s startup program will help onboard companies interested in building on Web3 using existing Google Cloud products. “Polygon is an important part of this initiative, as they have provided a $3 million contribution from their venture fund to get this off the ground with us,” he said.

Global financial services giant Mastercard announced its “Mastercard Crypto Credential” solution during Consensus. Raj Dhamodharan, head of crypto and blockchain at Mastercard, stated during a fireside discussion at Consensus that he is “excited about the underlying potential of blockchain technology” due to its ability to store and move value seamlessly.

However, Dhamodharan explained that “this potential is not fully realized today,” so Mastercard has started working on several products like Mastercard Crypto Credential.

“I believe that once you have the right building blocks necessary for safety and simplicity, you can have more businesses building and relying on the basic utility of storing and moving value,” Dhamodharan said on stage.

Conversations continued at side events

While there were 10 dedicated stages for 285 panels during Consensus, many side events allowed important conversations to continue outside of the conference.

For example, zero-knowledge proofs (ZK-proofs) were widely discussed at Consensus, but in-depth conversations around ZK-proofs took place at the “ZK360” event hosted by Mina Protocol. Evan Shapiro, CEO of the Mina Foundation and co-founder of the Mina Protocol, told Cointelegraph that the goal of ZK360 was for attendees to learn about the latest advancements in ZK-proofs and how these can be applied in the real world. “Web3 needs both privacy and verified computation. ZK-proofs provide both of those at a time when applications are needing these features to be more effective, decentralized and scalable,” he said.

*Evan Shapiro, CEO of the Mina Foundation, spoke about ZK-proofs at the ZK360 side event. Source: Mina Foundation*

Other layer-1 blockchain networks like Ripple and Algorand hosted side events, allowing Consensus attendees to better understand specific blockchain offerings while networking with community members. These events also presented an opportunity for non-Consensus attendees to learn about important topics within the Web3 sector.

Lacking an international presence

While the turnout during Consensus 2023 was notable, some industry experts highlighted that the conference lacked an international presence.

Yat Siu, chairman of Animoca Brands — a venture capital company focused on blockchain-based games — told Cointelegraph that regions in Asia like Japan and Hong Kong are offering a progressive and welcoming regulatory environment for crypto adoption. He noted that most people he spoke with at Consensus seemed surprised or even skeptical at this. He said:

“I think that a larger presence of overseas participants would have helped allow Consensus participants to better understand the scope of excitement and opportunity that exists outside of the United States. I would love to see a stronger international presence at Consensus next year.”

Despite this, Siu said that Consensus 2023 was a well-attended, high-energy conference overall. “I was surprised at the level of deal-making activity that was taking place, even if the narrative was that the U.S. was negative on crypto,” he said.

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Echoing Siu was Keith Grossman, president of enterprise at MoonPay. He told Cointelegraph that he was impressed to see so many executives from some of the largest companies in attendance at Consensus. “Deals were being discussed, and I believe we will look back at Consensus 2023 recognizing it represented a maturation in the industry as it relates to how Web3 technologies can be deployed in a meaningful manner for businesses and their customers.”

The view from Paris Blockchain Week 2023: Web3 builds while the city burns

April 3, 2023 Coin Telegraph

Coin Telegraph

It was champagne and optimism for Paris Blockchain Week 2023 despite Parisian protests and economic uncertainty.

Paris Blockchain Week celebrated its fourth edition in spring 2023 against a backdrop of riots, protests and general civil malaise. The builders in the Bitcoin (BTC), crypto, and Web3 spaces were unfazed by protesters chanting and dancing on the doorstep of the conference venue.

The event took place against the backdrop of ongoing protests in Paris and worsening macroeconomic conditions in France. Many attendees expressed concern about the impact of these factors on the future of the blockchain and crypto industry, particularly in Europe.

Nevertheless, the overall mood at PBW 2023 was optimistic, with many attendees citing the recent surge in Bitcoin's price as a sign of growing mainstream acceptance of the technology. Plus, as Pascal Gauthier, CEO of Ledger, explained to Cointelegraph: “Bitcoin was designed for this.”

“Bitcoin was designed in reaction to Lehman Brothers in the 2008 crisis. It was designed because you can’t trust central authorities. And it’s designed because it’s clear that central authorities will fail. It’s not a question of if. It’s more a question of when.”

However, as protestors marched to the doorstep of the entrance to the “Les Salles du Carousel,” the crypt of the Louvre in which the event was held, there appeared to be a disconnect or rift between the Web3 space and reality.

Denelle Dixon, CEO of the Stellar Development Foundation, explained that “It is a little bit like we're not recognizing what's happening with the builders and what's happening with the protesters.” Nir Kouris, founder of Creator Nations, told Cointelegraph that the work of Paris Blockchain Week is “super important,” but it’s important to speak to those in the mainstream world:

“We need to not live in a bubble to include, to embrace, to empower all these people from outside. They don't have a clue about what is blockchain. So our goal is to use different and different terminology so we can include all of them into the conversation.”

Cointelegraph interviewed some of the protesters during the event; very few were aware of crypto, some had not heard the word “Bitcoin” before.

Cointelegraph speaks to protestors in front of the conference venue

The streets of Paris saw fires, trash as well as fire extinguisher liquid–an apocalyptic scene for many of the tourists visiting France–while Parisians were unperturbed, and some called for calm. Gauthier, a Parisian through and through, shrugged his shoulders at the protests. It’s part of French culture to take to the streets, he explained.

Another key theme throughout the event was the risk that Web2 companies, including Google, NasDaq and Facebook and traditional brands such as LVMH and Gucci, could be co-opting the Web3 vision. The headliners at PBW included established brand managers from the likes of Diesel and Fiat. What are established retail brands doing at a crypto conference? Animoca Brands CEO Robby Yung wades in:

“The reason that there is a place for them in Web3 is because brands themselves have power. You know, they resonate with consumers, whether it's gaming brands or, you know, handbag and and luxury watch brands. Brands have resonance with consumers.”

Web3 provides new ways to innovate, Yung explained. Ryan Nix, Head of Solutions Architecture at Coinbase agreed–to an extent. He explained that Web2 players want to get in on the action, but they must also “Obfuscate difficulty from their users.” Ultimately, Nix continued, to access a greater audience, simplifying the somewhat complicated crypto and blockchain tools could help.

An interesting omission for the 2023 iteration was the notable absence of the crypto exchange Binance. In 2022, Binance financed the largest stand at the conference, and the CZ, the CEO of the crypto exchange, hosted a keynote. This year, the world’s largest exchange is caught up in a U.S. lawsuit, while the crypto bear market rages on.

As the industry continues to evolve, events like the PBW 2023 will play an increasingly important role in bringing together key players and driving innovation. However, the crypto space must begin to address more real-world use cases if it is to reach out to the mainstream and catch the eye of those taking to the streets.

Hong Kong turns to Japan for advice after ‘mind-boggling’ Web3 influx

March 30, 2023 Coin Telegraph

Coin Telegraph

Hong Kong is looking to Japan for guidance to become a friendly environment for cryptocurrency following an overwhelming response to Web3 investment.

In light of Hong Kong’s commitment to developing cryptocurrency infrastructure, fintech official King Leung has visited Japan to talk with policymakers and regulators in Tokyo to better understand the idea around Web3 digital assets.

In an interview with Cointelegraph reporter Jesse Coghlan, King said that understanding the rationale behind Japan designing those regulations was something worth taking the trip for.

In October, Hong Kong initiated its efforts to establish itself as a leading global center for cryptocurrency by introducing policies aimed at fostering a crypto-friendly regulatory framework for the industry within its borders.

King also mentioned talking to industry players to get a holistic view. According to King, findings from his visit would be reported back to policymakers and regulators in Hong Kong to be included in the considerations for designing the city’s regulations concerning digital assets.

King explained that digital assets, including other assets such as tokenized bonds and tokenized revenue streams from internet protocols (IP), would likely be monetized to create revenue streams. This was in response to the strategic importance of Web3 and crypto in the context of the economic development of Hong Kong and was in line with one of the discussions he had in Japan.

According to King, “InvestHK did not expect this enormous, massive level of enthusiasm.” He described it as mind-boggling as he received statistics saying that, in March and April alone, Hong Kong has had over 100 Web3- or digital asset-related events. King mentioned that despite the fact that the natural inability to satisfy the needs of the market completely, the government is working as quickly as it can.

Regarding the readiness of the government toward these Web3 plans, King said the projects might not be ready by June 1 and that the government just has to prioritize and do the things that have the biggest impact first.

Magazine: Hong Kong crypto frenzy, DeFi token surges 550%, NBA China NFTs — Asia Express

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March 28, 2023 Bitcoin.com

Paris Blockchain Week 2023: Latest updates by Cointelegraph

March 20, 2023 Coin Telegraph

Coin Telegraph

Pre-summit events such as the Talent Fair, the Startup Competition as well as the Investors Day made up the day on March 20 at the Paris Blockchain Week.

Paris Blockchain Week 2023 (PBW) is about to kick off its ‍4th year as one of the world’s largest conferences tackling all things blockchain, crypto and Web3. The event hosts over 10,000 attendees and was sold out the previous year. The Cointelegraph team is stationed in Paris for the latest news from the ground.

This year’s edition of PBW has speakers from some of the industry’s biggest players, such as Consensys, Ledger, Animoca Brands, Alogrand, Reddit and more. The event consists of the main summit and Web3XP on all things Web3. The main themes of the summit and Web3XP include public policy, enterprise blockchain, open finance, Web3 art and investing in Web3 culture and entertainment, among others.

It also has a dedicated event for investors, a competition for startups, a hackathon and additional side events.

Cointelegraph editor-in-chief Kristina Lucrezia Cornèr, head of video Jackson DuMont and reporter Joseph Hall are deployed on the ground in Paris all week to deliver the most recent developments from Paris Blockchain Week.

*(From left to right) Jackson DuMont, Kristina Lucrezia Cornèr and Joseph Hall. Source: Cointelegraph*

On March 20, the investors' event kicked the week off by bringing together investors with interests in Web3, nonfungible tokens (NFTs), the metaverse and blockchain applications.

Stay tuned for continuous updates from the events, including key takeaways, highlights and behind-the-scenes footage.

Last year's event saw around 3,000 summit-goers with keynotes and fireside chats from some of the most prominent figures in the industry, such as Binance’s Changpeng “CZ” Zhao and Tether’s Paolo Ardoino, among many others.

‘AI can be defeated with cryptography,’ says Chelsea Manning at SXSW

March 15, 2023 Coin Telegraph

Cointelegraph sat down with activist and cybersecurity expert Chelsea Manning to discuss how blockchain technology can combat challenges associated with artificial intelligence.

Artificial intelligence (AI) has become a hot topic following the launch of ChatGPT, an AI chatbot created by research company OpenAI. Yet, while ChatGPT has the potential to write blogs and create crypto trading bots, some worry that AI could be harmful.

A survey conducted by sales platform Tidio found that 69% of college graduates believe AI could take their job or make it irrelevant in the coming years. Others have pointed out that the rise of AI will make it increasingly challenging to verify accurate information versus fake news generated by artificial intelligence.

For example, Chelsea Manning — an activist, security consultant for decentralized privacy platform Nym and former army intelligence analyst — told Cointelegraph that information verification would become a fundamental problem as AI is integrated into society. Manning told Cointelegraph about how blockchain technology can help combat AI challenges during an exclusive interview at South by Southwest 2023.

Cointelegraph: Why is the rise of AI concerning, and how can blockchain technology combat these concerns?

Chelsea Manning: The actual teachings of AI have been going on for a long time, yet as surveillance in AI becomes more efficient, it will reduce the effectiveness of virtual private networks and other circuits from protecting user data.

Another danger associated with AI and deep fakes is that these elements will eventually become so convincing that many of these instances will end up in a courtroom setting. For instance, there will be situations in the future where individuals will have to forensically verify to a court if something was generated by AI.

We can use blockchain technology to create a decentralized list of where information is coming from, who is producing it and where it was created. This can then be verified on a distributed ledger to prove that a particular event historically occurred, resulting in less dispute.

For instance, someone could take a photograph and then place that metadata on a ledger for verification. If someone tries to dispute that, they can go to the ledger and view the cryptographic signature for verification to see that a particular event occurred.

CT: Do you think we will see more companies evolve that will use cryptography to combat AI challenges?

CM: Yes — since verification is going to be a fundamental problem that arises between society’s exposure to products or surveillance that leverage AI. One way to challenge this is through cryptography, which is going to be fundamental.

*Manning (right) with Cointelegraph reporter Rachel Wolfson at SXSW.*

I also believe that a great battle within the technology space over the next decade is going to be this issue of verification and knowing if the information we are receiving is accurate. We are running the very real risk of having our entire reality exposed through our phones or televisions and other places online. Although this is a fundamental way to interact with the world, this information will increasingly not be accurate, yet it will be convincing. I believe there are solutions to these problems, and with some foresight and planning, these doomsday scenarios can be navigated.

CT: You also have strong views on taking an infrastructure approach when it comes to ensuring privacy and security. Can you explain what this means?

CM: One of the most frustrating aspects of developing hardware technology is ensuring that the hardware itself is secure. This is why hardware developers need to focus intensively on supply chain matters — who is developing the technology, who is designing it, etc.

I also believe in the added benefit of an open-source architecture, as these standards are common and universal. I’ve been looking at open-source architectures for designing and developing secure hardware technology for Nym. For example, RISC-V is open source architecture developed at the University of California, Berkeley. RISC-V was designed to grow over time as a standard that doesn’t require any intellectual property (IP). Users can build an IP based on RISC-V, but the architecture itself is available to anyone without requiring a fee.

CT: What are your thoughts on cryptocurrency?

CM: I was very interested in Bitcoin when the white paper came out, but I didn’t necessarily view tokens as being assets or the value behind blockchain technology. I was quite surprised and struck by how readily people were to view proof-of-work certificates as being something that they would buy, sell and speculate on.

This is not necessarily my interest, as I don’t play with speculative assets in general. But from a purely academic sense, I find the technology fascinating. I think cryptocurrency is still a proof-of-concept for what is possible down the line with blockchain technology, but not necessarily ripe and ready to change the world.

CT: Recently, we saw Silicon Valley Bank overtaken by regulators. How do you think this will impact the tech industry as a whole?

CM: This is a seismic event and it goes back to my skepticism of speculative assets in general. This shows that we are still at the whims of the economy, both with traditional banks and with token assets.

The Federal Reserve System and regulators are all interconnected, so it doesn’t surprise me that as inflation has been high, and as the Federal Reserve has tried to curtail the amount of currency flowing, we have seen a number of stressors on more speculative and risky ventures. We are now seeing the effects of that.

But out of every one of these cycles, there has been innovation. If anything, operating in an environment where there is less cash available forces people into a position where they have to innovate more in order to survive. I think this will be an interesting time for the technology industry. It will slow down startups for sure, but I think that existing startups that are able to survive this will be the ones to look out for the most over the next 10 years.

Ethereum layer-2 solutions may focus less on token incentives in the future

March 11, 2023 Coin Telegraph

Analysis

Token incentive models may become obsolete as layer-2 networks focus on ease of functionality and low fees, but how will this impact decentralization?

Layer-2 networks continue to gain momentum as the Ethereum ecosystem advances. For example, data from analytics provider Token Terminal found that layer-2 scaling solution Polygon had 313,457 daily active users as of Jan. 17, 2023 — a 30% increase in activity since October 2022.

Moreover, the Polygon ecosystem recently announced the launch of its beta version Zero-Knowledge Ethereum Virtual Machine. As a result, Polygon’s native token, Polygon (MATIC), maintains a bullish narrative.

While notable, some believe layer-2 networks offering token incentive models may soon become obsolete. For instance, Jesse Pollak — head of protocols and Base core contributor at American crypto exchange Coinbase — told Cointelegraph at ETHDenver 2023 that there are currently no plans to associate a token with Base, the Ethereum layer-2 network recently launched by Coinbase. He said:

“We think about tokens as a powerful incentive tool that can change user and developer behavior. At the same time, we have seen situations unfold over the last few years where tokens have been used as an incentive mechanism with a lack of product fit for the underlying chain. Tokens have also resulted in nefarious or risky situations in the past.”

According to Pollak, Base is a layer-2 solution that allows developers to easily build applications without requiring an incentive mechanism. “Our product will stand on its own. It will be very easy for developers to use to build applications and distribute those to real human beings,” he said.

Shifting focus from token models to user experience

Focusing on ease of use and distribution are important points, as Pollak pointed out that many of today’s decentralized applications have been used solely for trading cryptocurrencies. “Trading is not enough to make cryptocurrency the future of the economy. At Base, we are making it easy for developers to build useful applications that people actually want to use,” he added.

Pollak explained that Base is investing in core infrastructure, such as Ethereum Improvement Proposal 4844, which will make the network secure and low-cost compared with other layer-2 networks. “It costs about 10–15 cents to conduct transactions on layer-2s. We aim to bring that down,” he mentioned.

While Base launched its testnet in February, Pollak shared that the Base mainnet launch will take place in the coming months. Moreover, while no plans exist for Base to offer a native token, several ecosystem participants have already expressed interest in building on Base.

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For example, Konstantin Richter, chief operating officer and founder of Blockdaemon — a blockchain infrastructure provider — told Cointelegraph at ETHDenver 2023 that Blockdaemon will serve as an official infrastructure partner for Base. Richter shared that he thinks Base shouldn’t have a token associated with the network, as he believes proof-of-stake (PoS) is an entirely broken system. “Blockdaemon runs more PoS nodes than anyone else, and I can tell you that proof-of-stake only works when token prices go up,” he said.

Richter further explained that Blockdaemon plans to use the Base network to determine how to allow network participants to run nodes while possibly earning a fixed U.S. dollar fee. “This may result in a different type of PoS mechanism, possibly around commitment of compute rather than a staked percentage of tokens that may not serve the network well,” he said. Richter added that such a model could result in a better user experience. He said:

“This could be the biggest paradigm shift within the cryptocurrency ecosystem since the invention of PoS. We are moving away from incentive models that reward users for using a product. We are now focused on ease of functionality and low fees.”

Yet it remains questionable how exactly Base will attract users and developers to the platform without a token incentive model. Given Coinbase’s vast understanding of institutions and decentralized finance (DeFi), Richter doesn’t think this should be an issue: “I prefer to work with Base given Coinbase’s understanding of institutions and DeFi. It’s remarkable that a public Fortune 500 company is committed to putting transactions transparently on Base.”

While it’s too soon to predict future outcomes, it’s important to note that Arbitrum, another Ethereum layer-2 network, also functions without a native token. This has certainly not stopped users from interacting with the Arbitrum network. According to data from the analytics website L2Beat.com, Arbitrum has about $3.35 billion total value locked, making up about 54% of the market share on Ethereum.

However, rumors have been circulating that Arbitrum may initiate a token airdrop in the future. While this may or not be the case, it demonstrates Arbitrum’s ability to determine product market fit before launching a token. Gil Rosen, president of the Stanford Blockchain Accelerator, told Cointelegraph at ETHDenver 2023 that finding product market fit is about ensuring projects acquire the right customers whose value is accretive to the ecosystem, which often isn’t the case with tokens. “Early projects that launch tokens are often locked into tokenomics models before finding product market fit and then are unable to pivot dynamically,” Rosen said.

“DeFi Dad,” a partner at digital asset investment firm Fourth Revolution Capital, told Cointelegraph that he believes the main driver behind layer-2 tokens is to ensure decentralized control over layer-2 networks.

For example, he explained that the upcoming launch of zkSync’s Zero-Knowledge Ethereum Virtual Machine would use a PoS mechanism to allow zkSync tokenholders to act as stakers. “Layer-2 tokens are necessary for building the decentralized future,” he said.

Thanks to our community and the entire ecosystem for an energizing ETHDenver 2023. For the remainder of the week, we’ll share highlights from ETHDenver around ZK scaling and building a future-proof zkEVM. First topic, hyperscalability.

1/7 pic.twitter.com/qOVSQ475a2
— zkSync ∎ (@zksync) March 8, 2023

DeFi Dad thinks a layer-2 network without plans to implement a native token could be successful if users are willing to sacrifice decentralization and censorship resistance in the short term.

Recent: Banks with crypto services require new Anti-Money Laundering capabilities

He said, “Base could be successful as a network for transacting with a user’s crypto. However, make no mistake; Base will be a layer-2 (at least for the foreseeable future) that makes trade-offs. As DeFi users, we tend to deprioritize security and censorship resistance until we really need it.”

With this point in mind, Rosen mentioned that he believes token models will remain for many decentralized projects with large developer and user communities, but these will launch later. “A project may launch a token when the networks themselves are more mature and have found product market fit.”

Technical discussions take center stage at Advancing Bitcoin conference in London

March 6, 2023 Coin Telegraph

Coin Telegraph

A look back on a highly technical Bitcoin conference hosted in London, in which ordinals, silent payments and the Lightning Network were studied and discussed.

The Bitcoin (BTC) bear market builders convened in London, United Kingdom, during the Bitcoin-only conference “Advancing Bitcoin.”

Common Bitcoin conference vernacular, words like “macro,” “shitcoin,” or “debt spiral” were absent from the debate, replaced by computer science terms; words like “OP_return,” “nonce,” and “ordinals” dominated the discussion. The two-day developer conference was technical and thoughtful, a space to get one’s hands dirty writing code.

Fedi's Leon Johnson organised and kicked off the conference. Source: michaelayophotography79

Leon Johnson, a conference organizer and the head of operations at Bitcoin company Fedi, told Cointelegraph that the conference is entering its fourth year and the profile of attendees has slowly evolved:

“In 2019, we had a lot of what I would call hobbyists, enthusiasts, tinkerers. And those same people have now kind of progressed to work for Bitcoin companies.”

True to its name, the conference has advanced Bitcoin hobbyists to Bitcoin companies. Gaming company Zebedee, for example, spun up from interactions at Advancing Bitcoin, Johnson explained.

Alex Leishman, CEO of River, a U.S.-based Bitcoin accumulation and Lighting company told Cointelegraph that the event is a high-quality arena for builders:

“It's nice to be in workshops and presentations that really dig into the weeds and the inner workings of the innovations happening in the space, whether it's ordinals, lightning network, protocol upgrades, and what those then mean for user experience and for improving the actual products we're all trying to build.”

True to form, developers and computer scientists pitter-pattered on their keyboards throughout the conference. Attendees as young as ten constructed hardware wallets from scratch, spun up code and interrogated the blockchain and Bitcoin Mempool. An entire day was dedicated solely to workshops.

Cointelegraph's Joe Hall was conference compère. Source: michaelayophotography79

Echoing comments made by other developers and computer scientists, Johnson highlighted that progress is good, but the layer-2 Lightning Network is still in its infancy and Bitcoin is a teenager at almost 15 years of existence. So what does Bitcoin need to mature?

“Bitcoin needs people. We need more than speculators. We need people that care about applications.”

Eric Sirion, cofounder of Fedi and maintainer of the Fedimint protocol joined in: “Don’t gamble–it’s a bear market and bear markets are for building.” It’s time to “get out there and inspire people, he suggested.

Uncle Rockstar (not his real name), the brains behind some of Bitcoin company Strike's inner workings that built out the Lightning Network integration with El Salvador’s Chivo wallet, concluded the first day of talks. Rather than delve deeper into technical specifications as with the other talks, Rockstar chose to chide, reassure and motivate developers, particularly those working on free, open-source software (FOSS).

Uncle Rockstar (who chooses to hide his features, gives a talk) Source: Alex Waltz

Bear markets can burn out the best of us, he explained during his talk. “It’s OK to take a break and pick up a fiat job before returning to building.” Leishman agrees:

“I think Bitcoin is going to become the money of the world is going to completely change everything. We can speed that up if we're smart about how we approach it.”

With the Bitcoin price continuing to wallow in the low 20,000s, the bear market continues to grind on. Advancing Bitcoin recently announced its intention to travel to Málaga with the concept in autumn. The Spain edition focuses o businesses and institutions and will have less of a developer focus.

Most blockchain advocates haven’t even used Bitcoin

March 2, 2023 Coin Telegraph

Barcelona

Bitcoin, the original blockchain, struggles to gain traction among blockchain advocates; an opinion from one of Europe's largest blockchain conferences.

Bitcoin (BTC) popularised the term blockchain. Blockchains, or “decentralized and distributed digital ledgers used to record transactions across a network of computers,” have been around for over thirty years, the household name for a blockchain is Bitcoin.

That’s despite the fact that the Genesis block was mined well over 14 years ago when George W. Bush was president and “I Gotta Feeling” by Black Eyed Peas topped the charts–Bitcoin is still top of the blocks.

It’s to be expected, then, that most blockchain advocates would have used, understood or a the very least experimented with Bitcoin.

Nope. Not so.

*Speaking with Victoria Gago, co-founder of the European Blockchain Conference. Source: José Val Bal*

Here’s an example. While MC’ing at the European Blockchain Conference in February, I asked the audience for a show of hands. I inquired of the circa 250 blockchain believers sitting in front of me:

"Who here has used Bitcoin?"

Maybe 20 audience hands shot up. “Okay. Keep your hand up if you’ve used Bitcoin’s Lightning Network,” I said. The Lightning Network or (LN) is the payments network built on top of Bitcoin which allows near-instant, near-free transactions. Over half those hands went down.

One data sample is insufficient. So, the following day I quizzed the audience on stage. I was surprised to receive the same result. Four-fifths of the blockchain conference audience had never used Bitcoin.

Why is that? Why is it that so few people have touched arguably the only blockchain that solves what is known as the “scalability trilemma;” that of decentralization, security and scalability?

The Bitcoin blockchain, or timechain as Satoshi Nakamoto called it in the white paper, is still relatively small. Anyone with an old laptop can download the entirety of all transactions in order to run a node; the network can scale to reach millions and soon billions of people with layers, while the Bitcoin blockchain has never been hacked. And yet at the blockchain conference, very few attendees run nodes or have transacted on Bitcoin.

However, there are not enough data points to yet form this conclusion. I wanted to quiz individuals across the conference if they were blockchainers or Bitcoiners–and if so, why is that the case?

I quizzed conference-goers about a simple question. I asked around 15 conference goers to choose Web3 or Web5, and only one person of the fifteen chose Web5. Ironically, the sole Web5 proponent in the interview is Bitcoiner Antonia Roupell, whose job title is “Web3 lead” for Save the Children.

If @JoeNakamoto happened to give you one #Bitcoin at the @EBlockchainCon, what would you do with it? pic.twitter.com/tV3hdEIA0n
— Cointelegraph (@Cointelegraph) February 20, 2023

Most respondents looked confused when presented with the choice of webs. “What is Web5?” They queried.

Web3 is a world of reportedly decentralized blockchains in which tokens (and token sales) drive the economy forward; Web5 is the decentralized internet built on Bitcoin. Naturally, Bitcoin maximalist Jack Dorsey champions Web5.

Dorsey explained in December 2021 that Web5 will allow true ownership of identity and data, unlike Web3. Dorsey explains that “Web3" has the “Same corporate incentives [as Twitter] but hides it under "decentralization.”

The Twitter founder reckons Web3 will never achieve true decentralization as underneath the marketing spiel and tokenomics it’s the venture capitalists and limited Partners who own the blockchains and the data underpinning the systems.

Web5 already boasts social media applications such as Zion in which users can easily send Bitcoin to one another and own their data, built atop one decentralized blockchain and. Which blockchain? You guessed it, Bitcoin.

Web3 has existed since Ethereum coder Gavin Wood coined the term in 2014 and thus has more time on its side. Plus it’s a catchy, catch-all term that is often used interchangeably with blockchain, crypto and metaverse. It’s hard to define, underline or frame without referring to financially lucrative projects.

It finally struck me that the focus of most attendees at the European Blockchain Convention was business over Bitcoin. Or to put it another way–and to attempt to be a little less naive–the attendees wanted to make money over work towards a new monetary policy.

Moderating a panel on Web3 during the conference. Source: José Val Bal

I had the same experience when discussing Nostr, which stands for Notes and Other Stuff Transmitted by Relays. The relatively new, decentralized network enables private messaging and uncensorable communication–among other projects.

One of the applications of Nostr, called iPhone app Damus, helped Nostr reach nearly half a million daily users in mid-February. User count multiplied by 5 since its listing on the Apple iOS store and the protocol is full of Bitcoin advocates.

I asked conference attendees for their public key so I could follow them on Nostr. I was met with bemused looks. The blockchain believers and champions of decentralized protocols had not tested nor heard of Damus.

Do you want one more example?

An employee at a popular Bitcoin company–who I won’t dox in this opinion piece–approached me during the conference. “I saw you sending sats to people on stage. You sound like a [Bitcoin] maxi,” he joked.

“Guilty, officer” I joked. I only hold Bitcoin and am passionate about bringing Bitcoin to the world, especially those living in financially kneecapped countries.

“You would probably recognize the company I represent then. I work for Blockstream.”

Of course! I told him. I actually played Jenga in the park with Blockstream’s CEO, Adam Back, recently. We immediately bonded.

The Blockstream employee confided in me that not a single conferencegoer had clocked his employer. Blockstream is a well-known Bitcoin companies. Blockstream pioneers lightning adoption, side chains, affordable hardware wallets and liquid, while Back was one of the few names mentioned in the Bitcoin white paper published in 2008.

He shared his surprise with me, but it was 5pm on the last day of the conference–by this point I understood. “It’s a Bitcoin company, mate” I explained. And after all, “Bitcoin and blockchain don’t really mix.” Bitcoin has a marketing problem, I said.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

P2P Financial Systems panel: Crypto core values and transparency are critical for DeFi

December 1, 2022 Coin Telegraph

Coin Telegraph

Cointelegraph’s editor-in-chief Kristina Cornèr moderated a panel discussion on DeFi's future among market dynamics, cyberattacks and regulatory uncertainty.

As one of the main growing sub-sectors in the crypto industry, decentralized finance (DeFi) has faced a challenging year amid market dynamics, cyberattacks and regulatory uncertainty. Its future demands more transparency and clarity in the regulatory landscape, according to a panel discussion at the International Workshop on P2P Financial Systems 2022 on Dec. 1.

Moderated by Cointelegraph’s editor-in-chief Kristina Cornèr with Gaspard Pedruzzi, CEO of APWine; Daniel Perez, co-founder of Mero; Hugo Philion, CEO of Flare, and Niall Roche, CTO-in-residence at the University College London School of Management as panelists, the discussion focused on the DeFi future among a disruptive landscape worldwide.

Perez emphasized the need for transparency for DeFi's long-term success, as well as the role of central bank digital currencies in promoting crypto's core values to society and restoring trust in the industry following recent events such as the collapse of cryptocurrency exchange FTX.

"The point of using DeFi infrastructure is transparency [...] Why not the OPEC nations should be able to be transparent too. [...] If there is a formal, transparent and traceable solution, and it's good to bring more confidence in the industry, like the stablecoins, I'm not going to say it shouldn't be there.", commented Perez.

After FTX: Defi can go mainstream if it overcomes its flaws

Regulation is a key point for DeFi. As Roche explained, innovation has been stifled due to the uncertainty of whether a project now complying with regulatory requirements today will be able to do so in the near future. Roche also noted:

"We need clear rules [...]. People don't know the limits. We need ways to ensure that it's very clear with the lines and that there are rules there that you can test, verify that you're on the right side of the line. Otherwise, we'd just be in this situation where regulation is not clear and innovation is delayed because people will try it, and they'll get shut down."

Educating people about finances and technologies driving innovation is another challenge for DeFi development, since most people are learning about cryptos from friends or television. The panelists also emphasized that communication with society has been focused on making profit on cryptocurrencies, and not on promoting core values such as privacy and decentralization. Flare's Philion stated:

"The primary product market right now is to get rich. There isn't really a use case that ensures you can get rich. But that's kind of the message we're telling to people. [...] I don't think the primary thing we should be marketing to people is a way to get rich."

Event