New type of blockchain designed to power Web 3.0 decentralized social networks. DeSo Blockchain announced that they have created over 1.5 million accounts on their network.
DeSo, short for “decentralized social,” is the first and only blockchain custom-built from the ground up to power and scale a new category of decentralized social applications to one billion users.
The DeSo blockchain is supported by the non-profit DeSo Foundation, whose broad mission is to support the decentralization of social media.
Decentralized Social was up nearly 90% in the last 24 hours, hitting $61.21. The current CoinMarketCap ranking is No.222, with a live market cap of $543,835,284, according to the CoinMarketcap.
DeSo also said it is about to update its consensus model, from Proof of Work (PoW) to Proof of Stake (PoS), launching a new platform called DAODAO.
Nader Al-Naji, the Founder of DeSo commented that:
“With these new updates, we move closer to a world in which social media is not controlled by three centralized companies, but instead, is owned by the users and creators of the network,”
DeSo combines the paradigm of an open P2P financial system offered by cryptocurrencies with an efficient and scalable database infrastructure tailored to the next generation of Web 3.0 social networks.
According to Alex Valaitis, Head of Strategy and Operations at DeSo, “The first thing people need to realize is that social graphs and content should be stored on blockchains. The second is that in order to do this at scale, dedicated blockchains are needed,”.
On Monday, The Biden Administration released its budget plan for the fiscal year of 2023. The budget proposal, which totals $5.8 trillion with a $1.15 trillion deficit, features some hints on the administration’s long-term plans for cryptocurrency.
The budget plan proposes modernizing rules for digital assets through expanding tax reporting requirements. The expansion of the crypto tax rules would enable the White House to bring in over $10 billion in new revenue over the next decade. The proposed federal budget expects about $5 billion in additional revenue in 2023 alone.
The projected tax revenue is based on proposals to revise rules related to digital assets. The bulk of the additional revenue would come from a proposal seeking to extend “mark-to-market” rules to more digital assets. This could mean that cryptocurrencies that appreciate prices might be taxed regardless of whether they make sales or not.
The plan is part of the Biden administration’s effort to reduce the national deficit by more than $1 trillion over the next decade.
The Biden budget also seeks an additional $52 million in funding for the Department of Justice to hire more agents and acquire analytical capabilities as part of the administration’s commitment to counter cyber threats, including boosting programs to combat the misuse of crypto coins.
Major Step for Crypto Use
Earlier this month, President Biden issued an executive order that confirmed the importance of cryptocurrencies while stressing the need to protect the financial system as well as consumers and investors.
The executive order is a call to action rather than a specific game plan. It highlights a series of non-controversial policy statements, such as the need to protect US consumers, investors, and businesses and support technological advances that promote responsible use and development of digital assets.
The administration seeks to strike the right balance between the positives of cryptocurrency —financial inclusion, efficiency, American leadership in global finance— and its negatives: regulatory arbitrage, potential business and consumer abuse, and illicit financing.
On Monday, the Central Bank of Sudan warned citizens against investing in cryptocurrencies because of the risks associated with such coins, which include market volatility, financial crime, and electronic piracy.
The watchdog also stated that digital currencies couldn’t be regarded as legal tender because they are not issued by accredited or authorized legally bound bodies.
The warning by the Central Bank comes as a response to the increased adoption of cryptocurrencies like Bitcoin in the nation during the economic crisis. Recently, Sudan’s Central Bank noticed the widespread global spread of the phenomenon of promoting trading in crypto coins through social networking sites. Investing funds in cryptocurrencies is small but a growing trend in Sudan.
The North African nation’s economy is under increasing strain after an October military coup derailed its path to democracy and suspended overseas aid worth billions of dollars. Inflation soared 360% in 2021 before slowing to 260% in February last month.
The Status of Cryptocurrency in Sudan
Sudan is an African country where some tech-savvy groups and start-ups have started to adopt cryptocurrencies. In the past years, cryptocurrency has been adopted by many sectors in the nation. Digital currencies are trendy among young, tech-savvy people, and the group’s members are actively working to make the system viable for moving money out of the country and purchasing goods abroad.
Digital currencies have become a viable alternative in Sudan because the nation is a “sanctioned country.” Remittances are high cost and quite complex via official channels, making cryptocurrency the most accessible and affordable way to transfer funds.
In June 2020, Sudan joined the Better Than Cash Alliance, a global partnership of 77 governments, firms, and international organizations that accelerate the transition from cash to responsible digital payments to assist in achieving the Sustainable Development Goals.
Sudan joined the alliance as part of its efforts to modernize the government services and payment system. As a result, the new digital environment and shift in the culture have helped accelerate crypto adoption at the state level.
In a country with only 31% internet penetration, the acceptance of Bitcoin by users has been high. Sudan is recognized as one of the countries with a high demand for cryptocurrencies, despite the low trading volume. The adoption currently might be limited to certain areas like the capital, Khartoum, and within tech companies and investors.
A group of U.S. lawmakers announced Monday that they introduced a law bill that calls for developing an electronic version of the U.S. dollar that has the same privacy expectations and legal status as fiat currency.
Supported by serval lawmakers, including Stephen Lynch (D-Mass.), Jesús Chuy Garcia (D-Ill.), Ayanna Pressley (D-Mass.) and Rashida Tlaib (D-Mich.), the bill titled ‘Electronic Currency and Secure Hardware (ECASH) Act,’ would direct the Treasury Department to develop and issue a digital dollar.
The e-cash would be used directly by the general public via widely available hardware devices without the necessary involvement of third-party payment processing or custodial intermediaries. As defined in the draft bill, the electronic dollar would be a bearer instrument that enables people to hold onto their phone or a card. It would be a token-based system, not account-based. If someone were to lose their card or phone in an account-based system, they would lose the funds.
The e-cash would also support peer-to-peer (P2P) transactions and support fully anonymous transactions. Users wouldn’t be subject to any more severe know-your-customer rules. They would access the e-cash dollars via a bank account, P2P transaction or a store, and do whatever they liked with it.
Rohan Grey, assistant professor of law at Willamette University, who provided advice on the drafting of the bill, said unlike other digital dollar proposals, the e-cash would not be issued by the U.S. Federal Reserve and therefore would not be a CBDC. He further stated that the e-cash would not involve any form of distributed ledger, blockchain, or other intermediated account.
“We’re proposing to have a genuine cash-like bearer instrument, a token-based system that doesn’t have either a centralized ledger or distributed ledger because it had no ledger whatsoever. It uses secured hardware software and it’s issued by the Treasury. The e-cash would be purely P2P, capable of offline transactions, and able to be held and used completely anonymously like physical cash is today,” Grey elaborated.
Grey added that the system could help serve people who are unable to hold bank accounts because of minimum balance requirements or those who don’t trust banks because banks may freeze accounts or charge fees.
The Digital-Dollar Dilemma
The global currency market is facing digital disruption. Consumers across the globe are adopting crypto coins, ushering in a more decentralized era in global finance. Governments are taking notice and are moving to develop central bank digital currencies (CBDCs).
The U.S. is facing a classic “innovator’s dilemma” in which it is expected to respond to an insurgent innovator that threatens its dominant position in leading the adoption of an increasingly digital financial system.
Early this month, The Biden administration began to address this issue by signing a recent executive order that directed U.S. government agencies to prioritize the development of policies to regulate digital assets and examine the feasibility and requirements of launching a digital dollar.
On March 10, President Biden issued an executive order that called for the responsible development of digital assets. It focuses on the development of cryptocurrencies, stablecoin, and CBDC. The executive order embraces digital asset innovation and signalled the end of regulatory uncertainty surrounding such digital assets. The order also encourages a whole government approach and inter-agency coordination in the research and development of a CBDC.
In January, The Federal Reserve released a discussion paper that examined the pros and cons of creating a CBDC for the U.S. The paper invites public comments and says that the Fed will not favour any particular policy outcome. The regulator disclosed that the paper is an initial step in determining whether and how a CBDC could enhance the domestic payments system while keeping it effective and safe. As previously mentioned, the Fed is accepting comments in response to the Paper until May 20, 2022.
To render its fans a new experience through non-fungible token (NFT) trading cards, World Wrestling Entertainment (WWE) has signed a deal with the digital sports platform Fanatics.
As an American integrated media and entertainment company known for professional wrestling, WWE sees the partnership as a game-changer that will give its global fanbase more opportunities to showcase their pride and passion for its star-studded roster and marquee events.
Vince McMahon, WWE chairman and CEO, welcomed the collaboration and stated:
“We believe this multi-platform partnership will set a new standard for WWE e-commerce, apparel and merchandise, while providing our fans globally with more ways than ever to engage with WWE and our Superstars.”
For elevated fan experience, WWE will be able to access Fanatics Collectibles, Fanatics Commerce, and Candy Digital.
Fanatics Collectibles, the NFT trading cards, will help revamp WWE’s physical and digital cards.
Michael Rubin, Fanatics CEO, noted:
“From e-commerce and licensed merchandise to trading cards and more, we’re going to offer up an incredible set of capabilities to help WWE’s passionate fans worldwide celebrate their favorite Superstars, marquee events and the WWE brand overall.”
WWE is one of the most widely admired sports and entertainment properties worldwide. Rubin added that it made perfect sense to activate many parts of our Fanatics global platform to create a first-of-its-kind, all-in fan experience.
The organisation has shown its preference for non-fungible tokens, given that it launched John Cena-inspired NFTs just in time for SummerSlam in August 2021.
Meanwhile, a recent PricewaterhouseCoopers (PwC) report acknowledged that NFTs would be at the epicentre of the future of sports as they would revolutionise the way fans consume and interact in the sporting arena.
In the past week, inflows into crypto investment products reached $193 million, a scenario is last seen in mid-December 2021, according to digital asset management firm Coinshares.
Bitcoin (BTC) took the lion’s share of these inflows at $98 million, driving year-to-date investments to $162 million. Per the report:
“Following last week’s price recovery, total assets under management (AUM) now sit at $57 billion. Regionally, the majority (76%) of inflows came from Europe at $147 million, while the Americas lagged at $45 million, with some providers continuing to see minor outflows.”
Solana (SOL) also witnessed notable investments of $87 million, representing 36% of AUM.
With an AUM of $241 million, Solana emerged as the fifth largest crypto investment product. Therefore, it comes second in the altcoin class after Ethereum (ETH).
Coinshares added:
“Most other altcoins saw inflows last week, most notable were Cardano, Polkadot and relative newcomer ATOM, with inflows of US$1.8m, US$1.2m and US$0.8m respectively.”
These statistics by Coinshares indicate that institutional crypto investments reached levels not seen in the last three months. The inflows witnessed correlate with the surge in the prices of Bitcoin and Ethereum.
Bitcoin was up by 12.18% in the last seven days to hit $47,398 during intraday trading, according to CoinMarketCap. Ethereum was up by 13.44% during the same time frame to reach $3,394.
Institutional investments have played an instrumental role in pumping more liquidity into the crypto market, leading to all-time high (ATH) prices. For instance, institutional investments enabled Bitcoin to breach the then ATH of $20,000 in December 2020 after trying to do so for three years.
Meanwhile, Janet Yellen, the U.S. Secretary of the Treasury, recently acknowledged crypto’s rising role in American finance. Yellen pledged to look at guidance and regulations needed to boost innovation in the digital asset space.
Bitcoin’s impact on the environment is about to face the limelight as several climate activist organizations such as Greenpeace and crypto billionaire Chris Larsen are launching a campaign to tackle its power usage system, Bloomberg reported.
The campaign titled “Change the Code, Not the Climate” is trying to push the Bitcoin society to change the way it orders transactions. According to Bloomberg, Bitcoin transactions consume as much power as Sweden.
Larsen said in an interview that Bitcoin might consume as much power as Japan in five years’ time.
Over the next months, the campaign will purchase advertisements in leading publications. Bloomberg said that Greenpeace, Environmental Working Group and some local activist groups have begun working on grassroots efforts to battle Bitcoin miners.
According to the person in charge of the campaign – Michael Brune, the team has already reached several key people and corporations. Some of them have pledged Environmental, Social and Governance (ESG) compliance, even though they are involved in Bitcoin.
“We are in this campaign for the long haul, but we are hoping – particularly since Bitcoin is now being financed by entities and individuals who care about climate change – that we can compel leadership to agree that this is a problem that needs to be addressed,” said Brune. “Goldman Sachs, BlackRock, PayPal, Venmo, Fidelity – there are lots of companies we anticipate will be helpful to this effort.”
The campaign also said that a supporting cause is increasing frustration in some communities in the U.S. that have found themselves hosting Bitcoin miners and dealing with issues such as excessive noise.
Meanwhile, Bitcoin’s rival, Ethereum, is working on a software overhaul to become more environmentally friendly. Currently, it is using giant server farms to order transactions via a process called Proof of Work (PoW), similar to Bitcoin. However, Ethereum’s software overhaul could see a switch to Proof of Stake (PoS), which is projected by some to cut its energy consumption by 99%, Bloomberg reported.
“Now, with Ethereum changing, Bitcoin really is the outlier,” Larsen said. “Some of the newer protocols – Solana, Cardano – are built on low energy.”
Larsen claims to have put in $5 million to fund the campaign as he feels that Bitcoin will not continue to enjoy investors’ support unless it changes. “I want to see Bitcoin and Ethereum succeed,” said Larsen, who owns some Bitcoin and Ether and XRP.
Bitcoin’s impact on the environment was highlighted last year after Elon Musk announced that Tesla Inc. would resume taking Bitcoin only after at least 50% of the mining relies on renewable energy.
According to Larson, Bitcoin’s energy consumption problem could be solved through a soft or a hard fork – both changing the network’s code to make Bitcoin less power-hungry.
A soft fork would preserve Bitcoin as a single blockchain. A hard fork would split Bitcoin into two separate networks, one supporting miners and the other running different code – perhaps PoS.
Bloomberg reported that the campaign believes that about 50 key miners, crypto exchanges and core developers have the power to change Bitcoin’s code.
Non-fungible token (NFT) marketplace Blur stated that it has raised $11 million in new seed funding.
Blur’s NFT marketplace focuses on professional traders. The funding round was led by venture capital firm Paradigm. Some of the other participants included firms such as eGirls Capital, 0xMaki and LedgerStatus.
The startup firm said “current NFT marketplaces prioritize the retail experience, but they neglect the growing needs of pro traders,” in a blog post after completing the funding round.
“Infrastructure has failed to keep up as monthly trading volumes hit billions, and web2 business models hold the space back with poorly aligned incentives. Our mission is to solve these problems and move the NFT space toward becoming institutional-grade while increasing decentralization,” the company added.
Many other NFT projects and startups have also raised funding in recent months.
According to a report by Blockchain.News from last week, Bored Ape Yacht Club (BAYC) creator Yuga Labs said that it raised the sum of $450 million in funding in a round led by Andreessen Horowitz (a16z).
The fund effectively placed Yuga Labs at a $4 billion valuation and the team aimed to inject the funds into building a media empire that will predominantly feature NFTs, the report added.
Immutable, which focuses on layer-2 tech for NFTs, also raised a fund worth $200 million.
In November last year, Paradigm broke the previous cryptocurrency venture fund.
Blockchain.News said that Crypto investment firm Paradigm smashed a previous record of $2.2 billion with $2.5 billion for the largest cryptocurrency venture fund ever, aimed at the “next generation of crypto companies and protocols.”
The three-year-old investment firm surpassed the $1.5 billion target set last month when it started to raise the fund. Ultimately, raising $2.5 billion to beat VC firm Andreessen Horowitz’s $2.2 billion funds from earlier in 2021.
National Football League (NFL) announced Monday that the NFL 2024 draft will be held on April 24 at Matthews Campus Park in downtown Detroit, and began seeking blockchain sponsorship deals this week.
Currently, teams are still banned from cryptocurrency sponsorships. However, NFL clubs are allowed to seek blockchain sponsorships through platforms like Coinbase and FTX.
Reportedly, the revenue from NFL’s sponsorship has been reached nearly $2 billion in the 2021 season, and sponsorships related to the blockchain industry in the next season will exceed last year’s total sponsorship amount.
The possible deals could attract multiple partners to boost the business development, rights including the NFL’s “official digital wallet” and “official blockchain” partners, said NFL chief revenue officer Rennie Anderson.
In a bid to commemorate the return of the League to Los Angeles in more than 30 years, the NFL is set to gift virtual commemorative tickets in the form of non-fungible tokens (NFTs).
Rennie Anderson called NFTs an “endless opportunity” and said the NFL is still learning the technology.
“I think we’ll learn a lot about the use cases about how it can transform our future,” Anderson said.
Crypto looks attractive to athletes as well. As reported by blockchain.News on November 23 last year, NFL star Odell Beckham Jr has become the latest high-profile athlete to accept his remuneration in Bitcoin from his team Los Angeles Rams.
Blockchain and cryptocurrency company DMG Blockchain Solutions announced a record revenue of $14.2 million in the first quarter of 2022, up 639% year over year.
The company said thanks to the delivery and installation of ordered crypto miners, the company’s hash rate has been increased to over 400PH/s as of December 31, 2021, resulting in a leap in revenue increase.
Compared to the first quarter of last year, gross margin and net income were $11.5 million and $5.9 million, an increase of 2,000% and 826%, respectively.
The financial report stated that as of December 31, 2021, the total assets were $119 million, with 432 BTC. Earning per share(EPS) rose to $0.03 per share, up from a loss per share (0.01) a year ago, CEO Sheldon Bennett said:
“A tremendous amount of work has gone in by the entire team to reach these results. For the first time, the company is posting strong financial gains and we believe this will continue through many more quarters due to our large investment in new mining equipment. The whole team is focused on operational excellence for this new fleet of servers as well as working hard to launch several new software solutions throughout the year,”
DMG is a publicly traded and vertically integrated blockchain and cryptocurrency company that manages, operates, and develops end-to-end digital solutions to monetize the blockchain ecosystem. The company announced that it will hold a conference call to review its financial results for the fourth quarter of 2021 and the first quarter of 2022 and to provide an update on the results of the review on Wednesday, March 30.
