Forem: Alex

The influence of Web3 on the development of crypto: Interview Thee Web3 Qing

Alex — Fri, 31 May 2024 11:26:26 +0000

Thee Web3 Qing is a young professional in the space of video content and Web3, the founder of Thee Creator’s Lounge.
Digitization is becoming a daily impulse for us, pushing us, so to speak, to the next phase of the Internet: Web 3. It is this Internet ecosystem, based on crypto wallets, blockchains, non-fungible tokens (NFTs) and decentralized autonomous organizations (DAOs), that encourages convenient application in business and beyond. What changes are happening with the advent of Web3, and how will they affect the market? Thee Web3 Qing tells about it.

ABOUT THE PECULIARITIES OF ENTERING THE WEB3 SPACE

Q: How did you get into Web3, and how long have you been in the sphere?
A: I was given a scholarship into a web3 academy, owned by my Ex-mentor.
Q: I saw that you are the founder of Thee Creators Lounge. Can you tell me more about it?
A: It was a community of Vreatirs in the Web3 space where I teach how to create content with my friends. The new community now is “Thee Qingdom”.
Q: What is your experience with decentralized platforms or applications?
A: Well, my experience with Dexs and Dapps has been good so far. I’ve never experienced hacking or draining, and I hope I don’t.

ABOUT ADVANTAGES AND RISKS OF THE WEB3

Q: How in your opinion web3 has affected security and privacy of users?
A: It has affected it positively because obviously you can’t compare web2 to Web3.
Q: What do you see as the main security risks associated with Web3?
A: Saving seed phrases in the phone, Google Drive, or mail. We should always back up manually. Writing it down somewhere.
Q: What do you think are the key features that make Web3 more secure compared to Web2?
A: The whole concept of Decentralization makes it more secure.
Q: Do you know any examples of successful Web3 security implementations? Have you personally used any of them?
A: Most Ethereum L2s like Base and Op worked on Eth’s security and made it better. Some other protocols followed suit.
Q: What are the benefits of Web3 for you personally?
A: I can make more money here without being restricted. I’m more respected in this space than the normal world because of how I’ve grown myself.
Q: In your opinion, what are the most difficult barriers for developers in Web3?
A: Making it completely decentralized yet risk-free.

SYSTEMATICITY IN ACTION AS THE KEY TO SUCCESS

Q: Can you give advice for those who are just starting out on the Web3 path, how to overcome these challenges?
A: Be patient, don’t drag anybody, never be satisfied or get too comfortable, have friends. Don’t trust anybody, but stay loyal till lines are crossed.

Web3 and cryptocurrencies: what you need to know?

For example, there are literally thousands of cryptocurrencies based on the blockchain, in the literal sense of the word. Some of them are not distinguished by special technologies, so their price is much lower. However, everything depends on the level of security and quality, which is a key indicator of Web3, and then the question arises — how does this process take place?

The core principle of Web3 — decentralization

And we begin to understand that this system is based on decentralization. Even in the case of Bitcoin, we can say that there is a category of specialists who are responsible for maintaining the code. There are many new blockchains that are not decentralized at all, such as TRON or Cardano.

So let’s go back to decentralization, and how it focuses on the main task of blockchain technology, which is opposite and different, and the huge circulation of cryptocurrency. There are certain driving forces in digital currency — these are people who own the majority of the money; respectively, they have a greater impact on the value of the currency and other management decisions.

Therefore, when switching to the Web3 ecosystem, it becomes clear that it will play a significant role. Crypto was the first, but for Web3, it is important to have a wallet — this is the basis; in 2023 the most popular according to the selection of CoinGecko are MetaMask and MyEtherWallet.

Unlike Web2, which only needed a browser, Web3 requires money and a wallet. Now let’s take a closer look at what Web3 offers in the crypto industry business and how it contributes to decentralization. The world of cryptocurrencies is taking a step towards the mainstream with the release of the first decentralized payment card, MetaMask and Mastercard. This innovation allows cryptocurrency owners to seamlessly spend their assets “anywhere cards are accepted”. Decentralization empowers users — Web3 emphasizes decentralization through dApps, smart contracts, and DAOs, giving users greater control over their data and finances.

MetaMask and Mastercard unlocks a new financial frontier

The collaboration of MetaMask, a leading crypto wallet, and Mastercard, a payment giant, leads to a new level of accessibility and convenience for cryptocurrency users. We understand that MetaMask and Mastercard card open the “door” to the world of Web3, where crypto assets become an integral part of everyday life. As the MasterCard company reports, it can guarantee a high level of transaction security, and MetaMask will ensure reliable storage of cryptographic assets. According to preliminary information, the card will not require intermediaries, giving users full control over their finances. Also, Metamask partners with other global leaders such as BitGo, Cactus Custody™ and Cobo. These partnerships provide the security and operational backbone including the world’s top cryptocurrency exchanges and platforms. Collaboration between MetaMask and Mastercard brings cryptocurrency spending into the mainstream by offering convenience and security through a shared payment card, signaling increased affordability and security.

Another impetus was the fact that Visa, the world leader in digital payments, announced the signing of a Memorandum of Understanding (MoU) with the European crypto exchange WhiteBIT, which is a partner of Mastercard. This cooperation aims to help WhiteBIT establish links with banks and other financial institutions, promoting the wider adoption of cryptocurrencies. This indicates that Visa is once again becoming an active player in the cryptocurrency market, recognizing its growing popularity and potential.

It is worth noting that Web3 can be used to create decentralized virtual worlds where users can own and use their digital assets. This leads to the emergence of new types of cryptocurrencies that are used to purchase virtual goods and services, as well as decentralized gaming platforms. It is important to emphasize that Web3 is an active component in crypto-circulation and decentralized financial protocols (DeFi)

The rise of Web3: powering the future of cryptocurrency

Therefore, Web3 is becoming the driving force behind the development of the cryptocurrency sphere, which is adapted to the requirements of the time. This can be confirmed by the use of decentralized applications (dApps) that work on the blockchain, the application of smart contracts, and the concept of a Decentralized Autonomous Organization (DAO). The peculiarity of such organizations is that they are represented by rules that are encoded in the form of a special program, which cannot be influenced by the central management but is under the control of its members. Web3 adoption on the rise: major payment processors like Visa are recognizing the potential of crypto by forging partnerships with crypto exchanges (e.g., WhiteBIT) to facilitate wider adoption.

CONCLUSION

The main requirement of the modern user is the confidentiality of their data. Therefore, Web3 is focused on a society that will have control over its data, digital life and financial transactions, which will be reliably protected. The crypto world is adapted to new requirements, because it promotes innovation, freedom and security.

Unlocking Potential: DeFi and AI ushering in a transparent financial system

Alex — Fri, 31 May 2024 11:14:51 +0000

Decentralized finance (DeFi), an innovative concept in the blockchain and cryptocurrency realms, has established an open and accessible financial system without centralized intermediaries. This has sparked a wave of discussions, with notable figures like Tyler Winklevoss, co-founder of ConnectU, asserting, “The DeFi revolution is here to stay. It promises a world without banks, where you don’t need permission to save or invest your money. Like any new technology, there will be bubbles and manias, but DeFi is real, and it’s here to stay. This is just the beginning.”It marks the dawn of a transformative and radical shift in how we approach traditional financial interactions.

However, no technology, new or old, can guarantee absolute security for its users. This is where the need for machine learning methods — AI — arises. DeFi and AI, two titans of the modern technological era, have the potential to revolutionize the financial world by merging their capabilities. This fusion will unlock unprecedented possibilities, making the financial system more transparent, decentralized, and accessible to all.

AI, with its analytical prowess and self-learning abilities, can revolutionize DeFi by automating routine processes, optimizing algorithms, and predicting market trends. DeFi, in turn, offers AI a decentralized platform for seamless data and algorithm exchange, fostering collaborative improvement and innovation.

Despite its transformative potential, the system is not without its flaws and vulnerabilities to manipulation. Classic risks and financial threats are prevalent in DeFi markets. These shortcomings, which include smart contract vulnerabilities like re-entry exploits (as exemplified by the infamous DAO attack in 2016) and time dependency issues (evident in the 2017 attack on the Ethereum lottery game SmartBillions), pose significant challenges that demand urgent attention.

Financial issues are also common, particularly in smart contract-based liquidity pools. Even minor coding errors can lead to loss of funds or unauthorized pool access, which can be exploited by cryptocurrency scammers. The recent TinyMan exploit on the Algorand blockchain serves as a stark reminder of these liquidity pool risks. Attackers leveraged a vulnerability in the TinyMan protocol to artificially inflate their liquidity pool assets, stealing over $3 million in cryptocurrencies. To mitigate these risks, DeFi requires the integration of AI, which can assist in combating various manipulations and automating processes.

AI-Powered Predictive Analytics in DeFi

AI algorithms can analyze vast amounts of data and identify patterns, making them highly applicable in cryptocurrency. For instance, they can be used to formulate market trends, which can be valuable for traders on popular exchanges like WhiteBIT, Kraken, or Coinbase. Volodymyr Nosov, CEO of WhiteBIT, a European crypto exchange with Ukrainian roots, emphasized the introduction of auxiliary tools of AI technologies in the company’s work and said: “Analytics in our company is based on a large amount of data, so we use specialized tools. They are based on well-known artificial intelligence models but adapted to our needs. In addition to the obvious, they also help us develop products in our ecosystem. We see their effectiveness, so we are always ready for new integrations”.

Pecan, another company utilizing AI, offers a revolutionary solution for businesses: Predictive GenAI. This generative AI model enables accurate forecasting in any industry without the need for specialized personnel.

AI-Driven Portfolio Management

AI’s continuous learning has opened up new possibilities for optimizing asset allocation, diversifying investments, and achieving dynamic balance in DeFi portfolios. This is achieved through constant adaptation to market conditions.

SingularityDAO, a blockchain project addressing liquidity and volatility issues, utilizes AI and a well-designed tokenomics model to enhance token liquidity in DeFi. This makes investments more attractive to a wider range of buyers and investors. SingularityDAO offers a suite of innovative features, including DynaSets — dynamically managed asset sets that automatically rebalance based on AI algorithms and signals.

The DeFi and AI Symbiosis: A Glimpse into the Future

The convergence of DeFi and AI has the potential to be one of the most groundbreaking technological advancements of our time. This alliance holds the promise of democratizing finance, making it more accessible and transparent for all. AI in DeFi can swiftly respond to potential hacks or manipulations, automate mundane tasks, enhance process efficiency and security, and improve risk assessment, management, and decision-making. This will lead to a better user experience and drive the development of more sophisticated financial products.

Conclusion

However, it is very important to have realistic expectations about the possibilities of DeFi and AI. Careful consideration and resolution of issues such as ethical research related to the development and implementation of AI-based DeFi is of paramount importance. AI in DeFi can quickly react to some hacks or manipulations, and automate daily tasks. However, this is one tool that should be an ally in the work, not a complete replacement for human input.

How to avoid fraud on Web3 apps

Alex — Fri, 31 May 2024 10:32:57 +0000

When we hear about Web3, it often seems like a futuristic vision of the internet that could revolutionize our lives. This is not far from the truth, as its core concepts aim to decentralize and establish transparency in relationships between users, platforms, and developers.

In simple terms, Web3 is an upgraded version of the “traditional” internet that we are all used to. The main difference lies in the absence of a third party when using it. This means that no government agencies or large corporations are needed to securely use assets, entertainment, or educational resources.

This new phase of the internet offers more freedom, opportunities, and control over development in the digital world, but it also brings new challenges. First and foremost, security issues always require careful preparation and immediate solutions. The recent news of the imprisonment of Sam Bankman-Fried, the founder of the bankrupt cryptocurrency exchange FTX, shook the community. He was sentenced to 25 years in prison for stealing $8 billion from clients. According to [[REUTERS](https://www.reuters.com/technology/sam-bankman-fried-be-sentenced-multi-billion-dollar-ftx-fraud-2024-03-28/#:~:text=NEW%20YORK%2C%20March%2028%20(Reuters,former%20billionaire%20wunderkind's%20dramatic%20downfall.), the 32-year-old billionaire was found guilty after a lengthy trial on 7 counts of the Criminal Code for conspiracy and fraud that occurred after the collapse of FTX in 2022. Prosecutors in the case confirmed that it was one of the largest frauds in US history.

This shows that when it comes to assets, education, entertainment, or health, everyone needs to be able to protect themselves from scammers, especially during the smooth transition and adaptation to the Web3 system and its applications. There are special precautions called SLAM (Source of information, Links, Accounts, Activities, Approvals, Authentications, Mind) that can help to avoid phishing and potential attacks.

S — (source of information). Always be aware that if you receive an email or message on Telegram or Discord from an unknown or unfamiliar sender, you should pause and check before responding. Basic cybersecurity knowledge and practices can help with this.

L — (Links). The same applies to links. It is not recommended to immediately go to any website, even if it looks like the official one. This is especially true for the user experience on many popular cryptocurrency exchanges, which guarantee a high level of security, such as Bitfinex, WhiteBIT, or Gate.io, when using cold or hot wallets. After all, this is a fairly young and promising area that is a direct “ally” of the Web3 phase.

A — (Accounts, Activities, Approvals, Authentications). In this case, it is worth monitoring your own activity in accounts and authentication. This is especially important when working with DApps (decentralized applications), where wallet approval is required. This is because hacker platforms can be very similar to well-known ones like 1Inch or Uniswap, but they may request excessive access. Regular checking of your e-wallet should be a habit for everyone who actively participates in investing, trading, or buying cryptocurrency. It is also recommended to review DApp permissions and periodically grant and revoke them. This will reduce the risk of potential attacks on the wallet that may occur due to enabled, unreliable or dormant programs.

M — (Mind). Use strong passwords. This means that instead of creating the easiest ones with your date of birth, use strong and complex combinations to create accounts on platforms. The same applies to personal wallet keys, which should never be given to anyone, as this will mean that access will be lost in the future.

Conclusion

Web3 promises a new era of the internet, free from centralized control. However, this freedom comes with security challenges. The recent FTX scandal highlights the importance of user vigilance against scams during the transition to Web3. SLAM (Source, Links, Accounts, Mind) offers a framework to stay safe. Be wary of unknown senders, don’t click suspicious links, and monitor your wallet activity on DApps. Strong passwords and keeping your private keys secure are crucial as well.

AI Tools for Protecting User Data and Crypto Assets

Alex — Fri, 31 May 2024 10:24:40 +0000

A quote by Richard Clarke, the United States’ former cybersecurity czar, serves as a stark warning: “If you’re spending more on coffee than on IT security, you will be hacked. What’s more, you deserve to be hacked.”

This statement highlights the critical importance of data security, which is often overlooked by individuals and organizations alike. Data security is paramount for both businesses and users, as it ensures the reliability and privacy of financial information, health data, and job prospects. However, in the age of data dominance, there is a significant risk of sensitive information being leaked, potentially affecting hundreds of millions or even billions of people.

The digital revolution has led to an exponential increase in the amount of information circulating worldwide. Consequently, the number of data breaches has also increased, as malicious actors exploit personal and confidential information. Several high-profile cases illustrate the severity of the problem. In June 2021, LinkedIn suffered a data breach that exposed the details of 700 million users, including phone numbers, email addresses, geolocation records, and gender. Marriott International acknowledged that hackers had accessed the personal data of half a million guests in September 2018 . The incident involved unauthorized access to the Starwood guest reservation database dating back to 2014. In November 2018, hackers copied and encrypted data, including email addresses, passport numbers, booking dates, and phone numbers. However, Marriott managed to decrypt the data and resolve the global issue.

These incidents emphasize the importance of investing in the development and implementation of innovative AI-based tools to ensure data and crypto asset protection in the future. Governments, private companies, and research institutions must collaborate to stimulate innovation in this space. The digital society is creating AI-based solutions that will provide transparency and protection for users, companies, and organizations. Some of these solutions include:

Biometric authentication: this process involves analyzing user behavior patterns to create cyber fingerprints, keystroke dynamics, and personal typing patterns. Several startups are actively using biometric authentication, such as [Behaviosec](These incidents emphasize the importance of investing in the development and implementation of innovative AI-based tools to ensure data and crypto asset protection in the future. Governments, private companies, and research institutions must collaborate to stimulate innovation in this space. The digital society is creating AI-based solutions that will provide transparency and protection for users, companies, and organizations. Some of these solutions include:

Biometric authentication: this process involves analyzing user behavior patterns to create cyber fingerprints, keystroke dynamics, and personal typing patterns. Several startups are actively using biometric authentication, such as Behaviosec, which analyzes users’ typing rhythm, and Bionym’s Nymi bracelet, which authenticates users based on their heartbeat. Mastercard even implemented this technology to allow customers to make payments.

Blockchain-based encryption: this method uses a special structural model that contains raw data obtained from the supplier and a hash code stored in the blockchain. The raw data is fed to the AI, compared to the hash code, and if there are any discrepancies, it allows the supplier to be tracked and identified as malicious or not. CertiK actively uses this encryption method. Core Scientific integrates personalized blockchain and AI infrastructure with current business networks, updating the physical structure of businesses, servers, and software.), which analyzes users’ typing rhythm, and Bionym’s Nymi bracelet, which authenticates users based on their heartbeat. Mastercard even implemented this technology to allow customers to make payments.

Anomaly detection: specific algorithms can be used to identify problems. For example, LOF (Local Outlier Factor) investigates the local density of data points. SVM (Support Vector Machines) aims to divide data points into classes using hyperplanes in a multidimensional space. As a result, the machine model learns to recognize “data point norms” and assess whether these points are “familiar” with the integrity policy. The LeewayHertz generative platform is based on algorithms that detect anomalies.

Autoencoders: these use artificial neural networks to encode data, compressing its size. The data is then decoded and presented to the company with a complete analysis to identify potential threats, as viso.ai demonstrates.

AI for crypto assets: in the digital age, cybersecurity is becoming increasingly important for investors. Outdated, centralized systems used by traditional asset management companies are vulnerable to cyberattacks. ATPBot offers an innovative solution that takes data security to the next level through alternative encryption methods and cryptographic protocols. Web3 authorization and Web3 deposits are highly relevant, aimed at increasing trust among clients, primarily cryptocurrency exchanges such as WhiteBIT, Kraken, Bybit, and many others.

Conclusion

It is clear that our present must be focused on securing our data and its integrity. Losing even partial access to this chain can result in the loss of not only reputation but also personal funds. By investing in AI-powered cybersecurity solutions, we can build a more secure and resilient digital future for everyone. Data security is crucial in today’s digital world, where breaches can expose sensitive information to millions. AI-powered solutions offer promising ways to combat this growing threat.

AI as the key to a Secure Web3 future

Alex — Fri, 31 May 2024 10:13:11 +0000

Modern society lives in a world of advanced technologies and is inevitably influenced by them. The two driving forces behind the transformation of our usual processes are Web3 and AI. It is important to note that this innovative power lies not only in the availability of advanced gadgets, such as Apple Vision Pro augmented reality glasses, although they are also a good device, but deeper. In particular, in creating a more reliable financial infrastructure and solving complex problems related to space exploration or health.

Web3 internet technology is a next-generation solution based on machine learning, AI, and blockchain technology. The “father of Web3” is considered to be Gavin Wood, a British developer and co-founder of Ethereum, who coined the term in 2014, well before it became mainstream in 2021. The advantage of the technology is the creation of intelligent websites and web applications with improved machine data understanding and a structure built on decentralization. Thus, working in decentralized networks increases security and transparency in finance, data management, social networks, and blockchain-based games. Web3 finds its direct application in crypto, implementing the basic principles of decentralization in the blockchain network.

What are the risks?

However, there are risks that Web3, due to its novelty, may not be adapted to. These include technical failures in blockchain networks, data risks, social engineering attacks, and identification and anonymity problems. For example, the cryptocurrency exchange [Binance](What are the risks?
However, there are risks that Web3, due to its novelty, may not be adapted to. These include technical failures in blockchain networks, data risks, social engineering attacks, and identification and anonymity problems. For example, the cryptocurrency exchange Binance has been in a long-standing legal battle with the Netherlands, Belgium, and France over the provision of illegal services.

The problem of technical failures can lie in damage to hardware, such as a server or hard drive. Network failures also occur when nodes do not have access to each other. Let’s look at the main security problems of Web3:) has been in a long-standing legal battle with the Netherlands, Belgium, and France over the provision of illegal services.

Data risks

The wide network infrastructure requires transaction control. In the case of blockchain transactions, the emphasis is that no one can guarantee the status of participants, whether they are malicious, anonymous, or ordinary clients. It follows that without centralized control, no one will be responsible for transaction and data problems if they are damaged. For example, the DeFi protocols Cream Finance and PancakeSwap were attacked by DNS spoofing, which compromised users’ crypto assets.

Identification

Web3 mechanisms called SSI (Self-Sovereign Identity) are aimed at a maximally confidential identification mechanism for each network participant and their data. Therefore, regulators cannot track whether users are financing terrorism or money laundering. The increased level of secrecy raises concerns about social norms, consumer protection, and accountability. However, this did not prevent Binance, one of the world’s largest cryptocurrency exchanges, from being a channel for laundering illegal money, according to a REUTERS investigation.

Engineering attacks

Changing the logic of smart contracts, which involves unauthorized influence on the management of personal projects or crypto wallets. This creates a stir when scammers attract customers with phishing attacks, withdraw funds, and then disappear. It follows that modern Web3 companies benefit from focusing on artificial intelligence. This can be explained by improving productivity, efficiency, and personalization through several key factors:

Secure Digital experience

AI integration will allow companies to introduce personalized services for their users. This is done by implementing special AI algorithms that will adapt interaction, recommendations, and content on Web3 platforms.

AI-Based data analytics and Cybersecurity

AI algorithms can detect potential threats and anomalies in real time. This means that transactions will become even more secure. In particular, this will be a great option for cryptocurrency exchanges and their clients. For example, for the most security ones crypto exchanges OKX, Coinbase, WhiteBIT, and many others. As a result, it will be possible to obtain a holistic Web3 ecosystem. Web3 projects that are already using the potential of AI are gaining popularity. In particular, the decentralized prediction market Augur, which uses AI to make more accurate predictions by analyzing data from various sources. Ocean Protocol is another Web3-based platform that uses AI to provide personalized solutions. The Medibloc program is focused on healthcare and uses AI for decentralized management of medical data, allowing patients to control their medical records.

Conclusion

Against the backdrop of the rapid development of digital technologies, the merger of AI and Web3 opens up a promising future that will transform many areas, from healthcare to supply chain optimization. This impact will only grow stronger, paving the way for new opportunities that will pose new challenges to society. Data security is crucial in today’s digital world, where breaches can expose sensitive information to millions. AI-powered solutions offer promising ways to combat this growing threat.

Governments, businesses, and researchers need to collaborate on developing AI tools for data protection. These solutions include biometric authentication, blockchain encryption, anomaly detection algorithms, and autoencoders for threat identification. The financial sector is particularly vulnerable, and AI can enhance cybersecurity for crypto assets. New encryption methods and Web3 authorization can increase trust among investors on cryptocurrency exchanges. As AI continues to evolve, it has the potential to revolutionize data security across various industries.

Can AI bridge the gap between DAO complexity and user understanding?

Alex — Fri, 31 May 2024 10:02:15 +0000

Interest in AI has grown significantly in the past few years. Its applications are known to be vast, ranging from education to technical recommendations for developers. For example, a selection of the datacamp platform showed its applications in data analytics. It seems that this 20th-century breakthrough has the potential to change every aspect of our lives and influence its course. However, the question arises: will it really be beneficial?

Artificial intelligence is closely related to autonomy, as its algorithms can link and identify information from different databases without the direct involvement of a specialist. This can be explained by its development and structure, which analyzes cognitive processes and, as a result of research, develops intelligent software and systems that can provide a wide range of diverse services. Therefore, when DAOs (Decentralized Autonomous Organizations) appeared, it became clear that a synergy could arise between AI and DAO. This issue was raised as early as 2016, when many examples of DAO and AI interaction were given, such as the ability to personalize the experience, improve fraud detection, and increase transparency and security.

What is a DAO?

To elaborate, a DAO is a digital organization that operates on a blockchain and uses smart contracts to govern rules and decision-making processes. These are groups that are formed to manage Stablecoins, tokens with a fixed rate. Another purpose of such organizations is to invest in startups or buy NFTs. Such organizations are promising for decentralized cryptocurrency exchanges, investment funds, social networks, and blockchain-based games. Therefore, there are many examples of DAOs, including Uniswap (UNI) — a decentralized exchange that generates automated markets for pairs of liquid assets. BitDAO (BIT) is a community that provides development support, as well as liquidity and funding for launching projects in NFT, DeFi, DAO, and online games. The Mango DAO (MNGO) organization is engaged in lending and margin trading, based on the Solana blockchain using the Serum exchange. The potential benefits of integrating AI and DAO include:

AI bots for DAO functionality.
This connection will be useful in the case of asset trading, summarizing management decisions, and attracting new customers;

Integration of AI into the product or service offered by DAO.
Such synthesis will provide management of crypto assets, as shown by the experience of the decentralized portfolio management protocol SingularityDAO;

Delegation of own tokens to an AI agent. This means that instead of an investor manually signing a transaction using an e-wallet, they will be able to delegate their tokens to an artificial intelligence agent to vote on their behalf. This option is offered by TRUST AI. However, of course, DAO should be further developed to ensure customer confidentiality;

AI and smart contracts
DAO allows you to install a plugin that will allow AI to participate in transactions. However, if the address for sending funds does not match the address specified in the proposal, then such an action will be marked as malicious. This will primarily ensure the safety of the storage and use of funds. Another potential application option is offered by the company EncrypGen, which uses AI smart contracts to transfer patient DNA data for further clinical trials.

The risks of DAO are that it is difficult for members of such organizations to understand what others are doing, and for token owners to understand the specifics of DAO. This is what causes the need for artificial intelligence as a kind of assistant that will coordinate actions for quality work. However, the modern crypto industry is moving forward and is starting to actively implement AI services for its products. For example, the WhiteBIT exchange began to combine blockchain and AI, and several crypto projects joined it. The Edain project provides AI-based big data analytics services, and the NOOFT token will promote NFT on the platform. CEO of the exchange Volodymyr Nosov said in one of the interviews: “Artificial intelligence brings drastic changes in society. And this is something we have to come to terms with and adapt to as soon as possible. We cannot stop this process. So, it’s time to tighten up a little, think about the consequences and start taking action”.

Some blockchain projects include Render Network, a blockchain platform for peer-to-peer sharing of AI-generated graphics, and Fetch.AI, a platform for creating apps, according to Reuters research.

Conclusion

According to SingularityDAO CEO Marcello Mari, the use of AI technologies has great potential to increase the autonomy of DAO, but it is important to emphasize that achieving a high level of quality in these processes requires further research and ensuring reliability for all participants in this process. It is also worth noting that DAOs are undergoing significant changes under the influence of artificial intelligence and its transformative technologies. Therefore, it is undoubtedly true that, as a result, society can get a transparent and efficient way of doing business.

Investing in Web3 projects: a guide for modern business and finance

Alex — Fri, 31 May 2024 09:53:16 +0000

The web3 world is booming, and so are the number of talented developers. This surge has led to the emergence of many new and exciting companies that are building the future of the internet. According to Decrypt, there are already over 10,000 known web3 companies in the cryptocurrency and blockchain space. This is a testament to the fact that despite the bear market of 2022, interest in web3 remains strong. Investors poured $7.1 billion into the space, a 4.5x increase from 2021 when Bitcoin was at its peak price.

In today’s rapidly evolving digital landscape, businesses are constantly faced with a barrage of opportunities and tools to automate processes and enhance overall quality of life. This necessitates a proactive approach and a willingness to embrace new possibilities, especially in the realm of entrepreneurship. As competition in the global market intensifies, businesses must adapt quickly to the ever-changing dynamics of the business world.

The advent of Web3, the next generation of the internet, has brought about a paradigm shift in how businesses operate. In essence, Web3 for business signifies data control without intermediaries. This is underpinned by the principles of decentralization and transparency in financial transactions, enabling direct legal transactions without the need for centralized institutions. Before diving into Web3 adoption or business creation, it’s crucial to understand the various ways in which this can be achieved. Let’s delve into some of the diverse use cases of Web3 technologies in business:

1. Web3 gaming

While a sustainable model for crypto gaming that guarantees success has yet to emerge, here are three useful metrics to help evaluate the potential of P2E projects:

Active player count

This metric, reflecting the number of daily (or monthly) active users, is crucial for determining the game’s growth and popularity. Equally important is the project’s ability to retain this active audience.

Transaction volume per user

This metric refers to the average amount of money spent per player. It reflects both the level of user engagement and the soundness of the token design.

Number and quality of guild partnerships

In Web3 games, growth and distribution typically rely on player referrals and guild partnerships. Crypto gaming guilds are communities of gamers who play together, share information and in-game assets, and support other players. Guilds like Yield Guild Games, Ancient8, Good Games Guild, and Merit Circle enable new players to start playing by lending them in-game assets they otherwise couldn’t afford.

Web3 gaming presents a novel and exciting opportunity, catering to a growing niche of users. These games leverage blockchain technology to provide gamers with greater autonomy, enabling them to earn rewards and enhance their characters. Illuvium, a high-budget, open-world AAA fantasy RPG, exemplifies this trend. Players can capture and train powerful Illuvials, each represented by a unique NFT with distinct abilities.

2. Web3 social networks

Web3 social media platforms offer a unique blend of features designed to attract a large audience seeking new solutions, analysis, and shared resources. Friend.tech, a decentralized social media app built on the blockchain, stands out as an example. Its unique structure allows users to trade shares linked to their profiles, granting access to exclusive private chats with relevant individuals. Communities formed on this platform are characterized by their distinctive concepts and financial incentives, moving away from traditional social media models and towards a business-oriented communication tool.

According to NINJA’s predictions, Diamond App is poised to become a major player in the social media realm in 2024. This decentralized ecosystem seamlessly blends elements of social networking, cryptocurrency, and NFTs. Built on the DeSo blockchain, the Diamond App grants users unprecedented control over their data and content, empowering them to monetize their creativity and influence. At the heart of the Diamond App lies a unique token system. Each user is assigned their own token, representing their reputation and clout within the network. These tokens can be bought, sold, and held, providing users with the opportunity to invest in creators they admire. The platform goes a step further by enabling users to earn real-world rewards for their posts and interactions with the audience. Likes and comments are converted into cryptocurrency, while posts can be transformed into NFTs, which can be sold or collected.

Another platform gaining traction is MINDS, a project that prioritizes user privacy. MINDS stands out by refusing to sell user data to advertisers or track their activity. Users maintain complete control over their information, deciding who has access to it. Minds Tokens serve as the platform’s native currency, rewarding users for their content creation and engagement with others. These tokens can be utilized to boost the visibility of posts, support fellow creators, or be exchanged for fiat currencies.

3. Cryptoinvestment: a new level for modern business

Investing in cryptocurrencies has emerged as a promising avenue for traders and crypto enthusiasts, offering enhanced security, improved efficiency, and access to a broader range of assets. According to a study by the World Economic Forum, amid heightened political polarization both within and beyond the United States, cryptocurrency is emerging as an asset that unites Democrats and Republicans. According to the poll, over half of Americans (53%), namely 59% of Democrats and 51% of Republicans, believe that cryptocurrencies are the future of finance. Approximately 22% of registered voters own cryptocurrency, with ownership levels similar among Democrats (27%) and Republicans (22%).

Decentralized exchanges and peer-to-peer trading enable users to conduct transactions without intermediaries, maintain control over their assets, and reduce the risk of breaches and scams. Among the reputable exchanges, Forbes ADVISOR lists Kraken with fixed fees of 0.9% for stablecoins and 1.5% for other cryptocurrencies, and Gemini with a maker fee of 0.2% and a taker fee of 0.4%. Regarding the other popular exchange, WhiteBIT, the exchange offers some of the lowest trading fees on the market, starting at 0.1% for both takers and makers. This makes the platform attractive to traders of all experience levels who are looking for favorable trading conditions.

Conclusion

Web3 marks a pivotal evolution of the internet, ushering in a new era of ownership and decentralization. Unlike Web2, where users lacked control over their data and creations, Web3 empowers individuals with sovereignty over their digital assets. Businesses can leverage this to develop innovative products and services, foster stronger customer relationships, and reap the benefits of a more democratic and equitable internet, free from the dominance of a few large technology companies.

From data consumers to data owners: Web3 and AI empowering users in the digital age

Alex — Fri, 31 May 2024 09:39:16 +0000

Web3, as the next generation of the Internet, is characterized by decentralization, user-centricity and the integration of artificial intelligence (AI). This revolutionary paradigm shift is moving away from centralized platforms, where control over data and resources is concentrated in the hands of the few, to an ecosystem where users have greater autonomy and ownership of their data. Web3 marks the transition from passive content consumption to active user participation. Users become creators, owners and actors in this new digital ecosystem. AI makes this possible by providing data analysis, prediction and decision-making tools that help users take better control of their online experience. In this new environment, Web3 and artificial intelligence play a key role, leading to revolutionary changes in the way we interact with data and personalize our own experiences. Companies specializing in Web3 in synergy with AI are coming to the fore, developing innovative solutions for decentralized data markets. These platforms empower users to own, control and monetize their data, eliminating monopolies and promoting greater transparency and honesty. Thanks to AI algorithms, these data markets have become more efficient, secure and flexible, opening up new opportunities for collaboration and information sharing.

What are Web3’s specific AI projects?

Smart contracts with AI

This is heavily exploited by the Zilliqa blockchain platform, which takes a significant step forward in computing by relying on its own Scilla smart contract programming language and an innovative parallel processing architecture based on sharding. Through sharding, the blockchain is broken up into smaller, more manageable networks known as subnets. This allows you to distribute computing tasks between them, making their execution parallel. Zilliqa differs from other blockchain platforms, such as Bitcoin and Ethereum 1.0 due to its unique architecture that allows for high scalability. Although Zilliqa uses a Proof-of-Work (PoW) consensus mechanism similar to those platforms, it solves the scaling problem. Sharding, in turn, breaks the decentralized Zilliqa network into smaller segments called shards. This allows for parallel processing of transactions in different shards, greatly increasing the throughput and efficiency of the blockchain. The company became the first public blockchain platform to implement sharding when its main net launched in 2019. This is a significant achievement that underscores Zilliqa’s leadership in blockchain innovation and scaling.

*Predictive modeling and data analysis
*

A clear example is Numerai, a decentralized artificial intelligence platform based on the Ethereum blockchain. It enables anyone to submit their own machine learning models to predict stock market movements. The project is a kind of collective artificial intelligence for forecasting the stock market. The main goal of the project is to create more accurate and reliable machine learning models by combining the predictions of thousands of data scientists from around the world. Numerai is based on encrypted data that will prevent manipulation and abuse of underlying financial data. Numerai is a unique platform that combines blockchain, encryption and artificial intelligence to create a new paradigm in stock market quantitative analysis and forecasting. Instead of using traditional forecasting methods, the project uses the collective mind of the machine learning community. This will find its direct application on crypto-exchanges, where everyone will be able to do their job well. For example, we have a wide selection of exchanges, especially popular ones such as Upbit, KuCoin or WhiteBIT.

Computing platforms

DeepBrain Chain combines artificial intelligence and blockchain and is a computing platform in its essence. Its goal is to create a decentralized neural network that will significantly reduce the cost of artificial intelligence calculations. DeepBrain Chain combines the power of mining machines to create a decentralized network that offers affordable and scalable GPU computing power for deep learning and AI. By using inactive mining resources, DeepBrain Chain significantly lowers the cost of access to computing power, making AI more accessible to a wider range of users. The platform can run deep neural network models and algorithms for training artificial intelligence systems, and has its own DBC token that incentivizes network participants and rewards resource providers. The main application areas of the platform could be fraud detection systems that can analyze transactions and user behavior to detect suspicious activities. Also in the space of healthcare, in particular drug development, disease diagnostics and personalized medicine.

Conclusion

Growing investments and research in the space of blockchain and artificial intelligence give reason to expect significant progress in the coming 5–10 years. Improvements in blockchain platforms and AI models will likely lead to exponential growth in the possibilities these technologies can offer together.

The synergy between blockchain and artificial intelligence has the potential to drive innovation in both directions. The decentralized and stable nature of the blockchain can be the foundation for the scaling and secure operation of artificial intelligence algorithms. On the other hand, artificial intelligence can optimize and automate many aspects of blockchain operation, making it more efficient and user-friendly.

Although projects combining blockchain and artificial intelligence are in the early stages of development, they already show enormous potential. Thanks to the synergy of these technologies.

Ready to Build dApps? Explore the Possibilities of EVM-Compatible Blockchains

Alex — Fri, 24 May 2024 14:46:20 +0000

When we hear or read something about EVM, many questions arise, including what it is and what it is for? In other words, it is a kind of platform for a secure blockchain-based coding process. The Ethereum network is the foundation for using the EVM virtual machine and is one of the key innovations. Today, there are a number of EVM-compatible blockchain networks that expand the horizons of decentralized technologies, offering users a wide range of choices and opportunities. Blockchains such as Polygon, Avalanche, and Fantom combine EVM compatibility with unique features and benefits, making them attractive for a variety of developer and user needs.

More about Ethereum Virtual Machine compatible blockchains

The Ethereum Virtual Machine (EVM) is a virtual computer that underpins the Ethereum blockchain. It provides an environment for processes related to the execution of smart contracts stored on the blockchain. The EVM ensures the secure and decentralized execution of these contracts, making Ethereum a powerful platform for decentralized applications (dApps). The advantages of EVM-compatible blockchains are the speed of transactions, lower fees, which are beneficial for large-scale applications, and a wide range of options for creating dApps and storing crypto. According to Shardeum.org, there are many EVM-compatible blockchains, including Avalanche, Fantom, Shardeum, and others.

Avalanche (AVAX)

Avalanche is another powerful blockchain platform that stands out for its lightning-fast transaction speed, low fees, and scalability. Its unique consensus protocol ensures fast transaction confirmation without compromising security.
Designed to support a wide range of decentralized applications (dApps) and special blockchain networks, Avalanche is known for its compatibility and flexible infrastructure. These qualities make it a favorite in areas such as DeFi, gaming, and enterprise blockchain solutions. Avalanche allows for the creation of multiple subnets, enabling different blockchains to coexist and interact within the ecosystem. The emphasis on speed and reliability eliminates many of the common problems faced by other blockchain networks. Companies like KKR, Deloitte, and MasterCard are already using Avalanche for their operations.

Fantom (FTM)

Fantom is another EVM-compatible blockchain that seeks to address the problems of scalability and efficiency. Fantom uses a consensus mechanism called Lachesis, which provides near-instantaneous transaction completion, making it ideal for DeFi and other applications. Its structure not only supports smart contracts but also ensures Ethereum compatibility, allowing developers to seamlessly port their applications and leverage the growing Ethereum ecosystem, as does the Hacken audit project and Verichains, a world-class security guarantor.

Shardeum (SHM)

Shardeum is an innovative layer-1 blockchain designed to address three key challenges: scalability, decentralization, and security. Through dynamic state sharding, Shardeum can process a high volume of transactions with low gas fees. This unique technology makes Shardeum the first smart contract platform where TPS (transactions per second) grows proportionally with the number of nodes. The platform can dynamically expand or contract based on network load, providing both linear and automatic scaling without compromising transaction speed. Shardeum strives to become the foundation for Web3, offering a decentralized user interface (UX) that rivals, if not surpasses, its centralized counterparts. The platform has the potential to accelerate the mass adoption of decentralized technologies and open up new possibilities for people around the world. Some of the most well-known Shardeum projects include the new gaming metaverse Zuraverse, the P2P file-sharing protocol FileMarket, and the Web3 gaming platform FusionwaveAI.

Aurora (AURORA)

Aurora is another interesting blockchain and ecosystem that is also EVM-compatible. It works as a layer 2 blockchain protocol on NEAR. Its EVM compatibility makes it an attractive platform for developers familiar with Ethereum. One of the features of Near Protocol is its internal structural scaling solution, Nightshade. Thanks to Nightshade, Near Protocol can handle a large volume of transactions with low fees while maintaining a high level of decentralization and security. The Aurora Cloud special development expands Aurora's capabilities, allowing multiple instances of the EVM (Ethereum Virtual Machine) to be deployed on NEAR. These instances, known as Aurora Chains, are united into a network that dynamically interacts thanks to XCC (cross-contract calls) on the NEAR base layer.

This can be represented schematically:

source: doc.aurora.dev

Aurora is relevant for many cryptocurrency exchange transactions and uses ETH as the base currency for transactions. Additionally, the ecosystem is compatible with a wide range of Ethereum ecosystem tools, such as MetaMask, Foundry, Truffle, Hardhat, and Remix. Aurora is available on many cryptocurrency exchanges, including MEXC, BingX, and WhiteBIT.

Current price on 05/24
Source: WhiteBIT Trading View

Conclusion

The blockchain landscape is rapidly evolving, with new players emerging and introducing innovative solutions that expand the realm of possibilities. Among these advancements, EVM (Ethereum Virtual Machine)-compatible blockchains stand out as a transformative trend, marking a significant leap forward in this technological revolution.
These blockchains, in essence, are modern interpretations of Ethereum technology, maintaining compatibility with its thriving ecosystem while simultaneously introducing a range of enhancements and unique capabilities. This opens up a world of possibilities for developers and users alike, seamlessly blending the familiarity of Ethereum with the advantages of a new frontier.