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Forget HTTP: Ethereum has a new URL standard that can’t be blocked

Under a newly rolled out Ethereum standard, DApps and NFTs can be accessed by internet users without the worry of centralized censorship.

Web3 URLs — enabled with the launch of ERC-4804 — have made it onto Ethereum, allowing internet users to access Ethereum apps and NFTs without worrying about centralized censorship.

The new Ethereum standard, titled “Web3 URL to EVM Call Message Translation,” was first proposed on Feb. 14, 2022, and was co-authored by ETHStorage founder Qi Zhou, Ethereum researcher Sam Wilson and Chao Pi.

It described the proposal as an “HTTP-style” URL to directly access on-chain Web3 content, such as decentralized apps (DApps) front-ends and NFTs. More than a year later, ERC-4804 was approved and finalized on the mainnet on March 1.

Anthurine Xiang, a spokesperson for layer-2 storage protocol ETHStorage, explained that in many cases, the ecosystem is still reliant on centralized web servers to provide access to “decentralized” apps. 

“Right now, all the DApps like Uniswap [...] claim to be decentralized apps," Xiang explained, adding: "But how [do] we get on the webpage? You have to go through the DNS. You have to go through GoDaddy. [...] All those are centralized servers.”

Graphic explaining how the new model compares to Web2. Source: w3eth.io

Today, most users access the internet via “Hypertext Transfer Protocol,” widely known as HTTP. 

When an internet user clicks a link or types in a website address, the computer uses HTTP to ask another computer to retrieve the information, such as a website or pictures.

Under ERC-4804, internet users have the option to type in web3:// (as opposed to http://) in their browsers to directly bring up DApps such as Uniswap or on-chain NFTs. This is because the standard allows users to directly run a query to an Ethereum Virtual Machine (EVM).

Flow chart explaining how Web3 URL standard works with Uniswap. Source: w3eth.io

Entire websites can also theoretically be accessed by these means as long as their content is stored on the Ethereum blockchain or a compatible layer-2 protocol. However, the costs of doing this are still very prohibitive, according to ETHStorage founder Qi Zhou.

“The critical issue here is that the storage cost on Ethereum is super, super expensive on mainnet,” Zhou said in a recent presentation at ETH Denver.

“For example, 1 Gigabyte of on-chain data will cost roughly $10 million. [...] That is unacceptable for a lot of Web2 applications and even a lot of NFTs,” Zhou added, noting that layer-2 storage solutions could help mitigate some of the costs.

Xiang suggested that given the costs, the new URL standard makes sense only for specific applications. 

“Not everything needs to go decentralized. If you are running a pretty good Web2 business and you don’t have to worry too much about centralized censorship. [...] You can just go for that.”

On the other hand, the new standard would be useful for DApps or websites that are at risk of censorship, with Tornado Cash as an example.

“For example, for Tornado Cash, a lot of people can’t get to them through their website because there’s censorship,” Xiang explained.

“If you’re a DApp and you’ve already been decentralized, why are you still using a centralized website for people to get access to you?”

Example of websites that are able to be accessed via web3:// URL Source: w3eth.io

Asked whether the new standard could be leveraged by bad actors to partake in illicit activity, Xiang said:

“This is really hard to say just like how Bitcoin was founded. I think Bitcoin was not born for evil, but still, in the beginning, people [were] doing shady things like the Silk Road, they had been using Bitcoin.”

Instead, Xiang believes like Bitcoin, they're just giving people a decentralized option they may not have otherwise. 

The new Ethereum standard is the first of its kind for the blockchain, noted Xiang, though it’s not the first solution to decentralized web hosting. 

Related: How to host a decentralized website

IPFS, or the InterPlanetary File System is an example of a network that was created to do what centralized cloud servers currently provide, only via decentralized means. However, Xiang noted that an IPFS URL can only link to static content, which can’t be amended or changed.

ERC-4804 however, will allow for “dynamic data,” such as allowing people to leave likes and comments and interact with content on a website, explained Xiang. Being Ethereum native, the standard is also expected to be able to interact with other blockchains much easier, Xiang added.

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Makerdao Issues Emergency Proposal to Address $3.1B in USDC Collateral After Stablecoin Depegging Incident

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LinksDAO likely to put in ‘compelling offer’ to buy Scottish golf course

If the final tally remains in favor of the purchase, the LinksDAO acquisition committee will officially put out a “compelling offer” to purchase the golf course.

The decentralized autonomous organization (DAO)-operated golf startup, LinksDAO, may soon put in an offer to purchase the newly marketed Spey Bay Golf Club in Scotland worth about $900,000. 

LinksDAO — self-described as a “global group of golf enthusiasts” that is on a mission to build the “world’s greatest golf community” — officially opened the proposal vote on Feb. 20, which came after a few weeks of informal deliberation.

It would be the DAO’s first ever golf course purchase.

While voting officially closes on Feb. 22 at 12pm Eastern Time, over 88% of the 4,100 LinksDAO token holders have already voted in favor of the proposal.

If the final tally remains in favor of the purchase, the LinksDAO acquisition committee will meet with the relevant parties required to construct a “compelling offer” for the purchase of the club “with the full intent of successfully purchasing the golf course,” the proposal stated.

The current voting tally of LinksDAO token holders on the proposal to put in an offer for the Scottish golf course. Source: LinksDAO

The authors of the proposal — “Bez”, “Jim”, “cbruce”, and “nickwalkermsu” — explained that while much of the DAO’s research efforts have gone into finding a suitable golf course purchase in the United States, “this listing was too special to ignore.”

“In our search for our first golf course to purchase, we have identified a promising property in Scotland called Spey Bay Golf Club. This vote is to determine if we should move forward with submitting an offer and working to purchase the course.”

The authors added that the course is “playable today,” and that its high ceiling to low price ratio makes it a worthy investment.

“Even a price of triple the ‘guide price’ would be cheaper than most mediocre courses we have assessed thus far in the US,” the authors explained.

As such, LinksDAO compressed the voting window to 48 hours in order to act swiftly on the potential purchase and hopefully get good price for the club:

“The timing of the sale requires us to act now should we decide to participate in the process. [...] We intend to execute this purchase while maintaining velocity on our efforts to acquire course(s) in the US.”

LinksDAO is expecting to pitch an offer in the vicinity of $900,000, which is said to be roughly its current market value, according to Golf Business News.

The 18-hole golf course is located in Fochabers, about 3.5 hours away from Scotland's capital city of Edinburgh.

The DAO explained the potential purchase would be financed with capital from its fundraise and that it would transfer funds from its treasury to a corporate bank account to support ongoing operations.

The authors of the proposal noted that this would occur within 30 days of the purchase.

LinksDAO officially established itself as a DAO in January 2022, which came on the back of a $10.5 million fundraising effort where more than 9,000 of its “leisure” and “global” membership NFTs were sold on OpenSea in a short 24 hour period.

There are now 5,302 owners of LinksDAO memberships, which are issued on the Ethereum network, according to nonfungible token (NFT) marketplace OpenSea.

The average floor price of the memberships is 0.29 Ether (ETH), or about $480 at current prices.

Related: Types of DAOs and how to create a decentralized autonomous organization

While it is not known how much is in the LinksDAO treasury, the LinksDAO market cap is currently $4.34 million, according to CoinGecko.

NBA superstar Stephen Curry is a notable figure to have invested in a LinksDAO membership. However it is not known whether he is still a token holder.

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SEC to target crypto firms operating as ‘qualified custodians’ — Report

If a majority of the five-member SEC panel votes in favor of the draft proposal, it will proceed to the next stage, which will be reviewed by other members of the SEC.

The United States Securities and Exchange Commission (SEC) is reportedly planning to propose new rule changes this week that could impact what services crypto firms can offer their clients. 

According to a Feb. 14 report from Bloomberg citing “people familiar with the matter,” the securities regulator is working on a draft proposal that would make it difficult for crypto firms to hold digital assets on their client’s behalf as “qualified custodians.”

This may, in turn, affect the many hedge funds, private equity firms and pension funds that work alongside such crypto firms.

According to those cited, a five-member SEC panel will vote on Feb. 15 whether the proposal proceeds to the next stage.

A majority vote — 3 votes out of 5 — will be needed in order for the rest of the SEC to officially vote on the proposal. If that is approved, the proposal would be amended with feedback where necessary.

While the SEC has deliberated on what should be required to be a qualified custodian of cryptocurrencies since as early as March 2019, the people familiar with the matter said it isn’t clear what specific changes the U.S. financial watchdog is seeking.

If finalized, Bloomberg explained that some crypto firms might have to move their customer’s digital asset holdings elsewhere.

The report added that these financial institutions might be subject to “surprise audits” related to their custodial relationships or other ramifications.

Related: SEC chair issues warning to crypto firms after action on Kraken staking

The news of Wednesday’s vote proposal comes on Jan. 26 report from Reuters suggested that the SEC would soon come after Wall Street investment advisers over how they’ve offered crypto custody to their clients.

In recent days, the SEC has had its hands full with Paxos Trust — the stablecoin issuer of Binance USD (BUSD) — which they believe to have issued as an unregistered security.

Paxos said they will be prepared to “vigorously litigate” if necessary.

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Brussels Wants All Crypto Service Providers to Report Transactions of Europeans

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