Category Archives: Editor’s Picks

Summary of Building on Lightning with Ben Arc

Read Time:5 Minute

00:00:00 – 01:00:00
In the video, Ben Arc discusses how to build on Lightning with extensions that will swap between Lightning and an unchained network. He also discusses how different users of the Lightning Network can use different payment journeys to manage their bitcoins. Finally, he covers the importance of having a lightning node in order to use the network and the various ways to open a channel.

00:00:00 In this video, Ben Arc discusses how his experience as an ex-smoker has led him to become interested in bitcoin and the cryptocurrency scene. He also discusses how he plans to support the bitcoin community in the UK.
00:05:00 Ben Arc is a developer and organizer of bitcoin meetups. He discusses his work on custodianship, lightning nodes, and ATM projects. Arc wants to make it easy for people to develop and use extensions for their nodes, and expects this to attract more developers and entrepreneurs.
00:10:00 This hackathon contestant created a jukebox that uses Spotify’s API to play songs from a playlist. You can pay for the songs with Lightning Payments. The project requires you to download and run the software, and it is currently only available in the UK.
00:15:00 In this video, Ben Arc discusses how he uses two different wallets- Blue Wallet and Moon- to store his bitcoin. Arc also explains how he uses an “insta wallet” extension on his website to pay for items without having to enter his bitcoin address. He also describes how the football club he works for uses bitcoin as a way to bring in new customers and collect money from the gate.
00:20:00 The video demonstrates how to use a Bitcoin atm made by Ben Arc, which uses his simple bitcoin wallet software. The atm is low-powered and can be plugged into a 12-volt battery, allowing it to be used anywhere. Arc also demonstrates how to use his wallet to sell bitcoins, and provides a “starter point” for those looking to start using Bitcoin.
00:25:00 Ben Arc explains how his open source software, “Alanbits,” helps small businesses accept bitcoin as a form of payment. He also discusses how the software can be used to manage split payments between team members. Finally, he notes that the software is in early development and that there is no guarantee of a return on investment.
00:30:00 Ben Arc discusses how his company, Onchain, is building an extension to the Bitcoin software that will allow for easier and cheaper access to Bitcoin wallets. He also discusses the dangers of supply chain attacks on Bitcoin businesses.
00:35:00 The author of the video discusses how to build on Lightning with extensions that will swap between Lightning and an unchained network. He also mentions Moon Wallet, which allows users to make transactions on both networks. Finally, he points out that there are a variety of ways to use Bitcoin, and that it is never too late to learn about it.
00:40:00 The video discusses how different users of the Lightning Network can use different payment journeys to manage their bitcoins. Ben Arc discusses how OpenNote has helped his football club manage its sales of merchandise.
00:45:00 Building on Lightning with Ben Arc covers the importance of having a lightning node in order to use the network, the various ways to open a channel, and how to use a hosted channel to mitigate risks of on-chain theft. Ben Arc emphasizes that lightning is still in its early stages and there is much to be explored in the technology.
00:50:00 In the video, Ben Arc discusses the possibility of bitcoin reaching a “zero rate of inflation,” which would be in the best interest of most users. He also discusses the economic consequences of this idea.
00:55:00 Ben Arc discusses the different ways in which bitcoin can be used and the benefits of having a variety of voices in the community discussing ideas. He argues that questioning oneself and one’s ideas is the best way to build the best value proposition for bitcoin.
01:00:00 – 01:20:00
Ben Arc discusses the various ways in which Bitcoin and blockchain technology can be used, with market-based solutions being the most immediate, followed by more complicated algorithmic solutions. He goes on to say that one of the main concerns he has with the Lightning project is that it is in good hands, but that there are great people working on it and that it is possible for them to make something reality.

01:00:00 Ben Arc discusses the importance of open dialogue and constructive criticism in the Bitcoin community, highlighting the dangers of toxicity and censorship. He believes that the community could benefit from more active contributors, and concludes by calling for a return to constructive debate.
01:05:00 Ben Arc discusses the possibility of inflation in the Bitcoin network, and how it could benefit the currency. He also touches upon the idea of a stable medium of exchange, and how it could benefit various countries around the world.
01:10:00 Ben Arc discusses some of the work being done to improve the stability of cryptocurrencies, including stable mediums of exchange like bitcoin. He also discusses the project Standard Stats, which is being developed by some of the same people behind the popular simple bitcoin wallet.
01:15:00 The video discusses the various ways in which Bitcoin and blockchain technology can be used, with market-based solutions being the most immediate, followed by more complicated algorithmic solutions. Ben Arc, a Bitcoin supporter and developer, goes on to say that one of the main concerns he has with thecash project is that it is in good hands, but that there are great people working on it and that it is possible for them to make something reality.
01:20:00 Ben Arc is a software developer who is excited about the Lightning project. He first wants to get Legend out of beta and fully functional and then do some things with it, like extrapolate extensions out. He also mentioned that he is working on a Cyberpunk project.

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Summary of Building on Lightning with Ben Arc 2

Decoding Cardano (ADA) Whitepaper

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cardanologo 5bfc32b1c9e77c0026b65328 Decoding Cardano (ADA) Whitepaper
Decoding Cardano (ADA) Whitepaper 4

Introduction

  • Cardano is a project that began in 2015 with the goal of changing the way cryptocurrencies are designed and developed.
  • The overall focus is on providing a more balanced and sustainable ecosystem that better accounts for the needs of its users.
  • Cardano embraces a collection of design principles, engineering best practices, and avenues for exploration.
  • The project has a long-term view on improving the design of cryptocurrencies.
  • Cardano is standards-driven and uses a dedicated foundation to lock down the final protocol design.
  • The project seeks to find a healthy middle ground for regulators to interact with cryptocurrency commerce.

Proof of Stake and Social Elements of Money

  • Cryptocurrencies are a prime example of the social component of money.
  • A large part of the value of a cryptocurrency is derived from its community, the way it uses the currency, and its level of engagement in the currency’s evolution.
  • Disagreements about philosophy, monetary policy, or even just between the core developers lead to fragmentation and forks.
  • Cardano will implement a system of overlay protocols built on top of CSL to accommodate the needs of its users.
  • Funding discussions force a relation of long and short term goals, the cryptocurrency’s social contract, priorities and the belief in value creation with particular proposals.
  • The use of formal methods, machine understandable specifications and merging a treasury with this process for financial incentives are being explored as possible avenues for inspiration.

Designing in Layers – Cardano Settlement Layer

  • When designing protocols and languages, one should look to history for inspiration, as many great ideas have been lost over time.
  • Simplicity usually wins over complexity.
  • Once a standard is set, it is likely to stick around, regardless of whether it is optimal.
  • Bad ideas can evolve into good ones if there is a will to do so.
    Cardano is a financial system that accepts its social nature.
  • Cardano’s design borrows from TCP/IP the concept of separation of concerns.
  • Blockchains are ultimately databases ordering facts and events with guarantees about timestamps and immutability.
  • Adding complex computation by storing and executing programs is an orthogonal concept.
  • It is incredibly tempting to choose the latter as Ethereum has done because it is more flexible, but it violates the design principles above.
  • Figuring out the story means that a single protocol has to be able to understand arbitrary events, script arbitrary transactions, permit arbitration in cases of fraud and even potentially reverse transactions when new information is made available.
  • Thus, we have chosen the position that the accounting of value should be separated from the story behind why the value was moved. In other words, separation of value from computation.
  • This separation does not mean that Cardano will not support smart contracts. On the contrary, by making the separation explicit, it permits significantly more flexibility in the design, use, privacy and execution of smart contracts.

Scripting – Sidechains – Signatures

  • Cardano is a cryptocurrency that is based upon Composing contracts, an adventure in financial engineering.
  • The primary advantage of Cardano is that security and execution can be extremely well understood.
  • Cardano will support a new protocol developed by Kiayias, Miller and Zindros (KMZ sidechains) based upon prior results from proofs of proofs of work.
  • In order to securely move value from Alice to Bob, Alice needs to prove she has the right to move the funds. The most direct and reliable way of accomplishing this task is to use a public key signature scheme where funds are connected to a public key and Alice controls an associated private key.
  • Cardano has been designed with special extensions that will allow us to add more signatures schemes through a soft fork.

Whats is the Point of All of it?

  • The main purpose of Cardano is to provide a vision for a self-evolving financial stack that can be used in jurisdictions where traditional banking systems are too expensive to deploy.
  • Cardano has been designed with feedback from hundreds of experts in the cryptocurrency industry, and it features tireless iteration, peer review, and the incorporation of great ideas from other projects.
  • Even if Cardano does not succeed in its ultimate goal, it can still make a significant impact on the way cryptocurrencies are designed, evolved, and funded.

Sustainability

  • The Cardano project is designed to create a reference library of Marketplace DAOs for smart contract developers to use.
  • The goal of the project is to promote decentralization and to encourage the community to participate in the governance of the protocol.
  • IOHK is working with a team of researchers from Lancaster University to develop a reference treasury model for Cardano.
  • IOHK is also working on a mechanism to formalize the process of proposing and vetting changes to the protocol.
  • Finally, work is being done to improve the incentives for Ouroboros, the proof-of-stake protocol used by Cardano.

Conclusion

  • Cardano is a cryptocurrency that is designed to be better than previous protocols.
  • The team behind Cardano has been careful to avoid cognitive biases, learn from history, and follow a rigorous process.
  • Cardano is meant to be a digital embodiment of the evolutionary process, able to adapt to changing needs.
  • The goal of Cardano is to be a pragmatic dreamer that is a good citizen in its community and always finds a way to pay its bills.

“New Asset Class or Just a Fad? The Relationship Between Cryptocurrencies and the NFT Market”

Read Time:1 Minute
  • NFTs have received mainstream attention due to prominent examples such as the artist Beeple selling a piece of digital art for $69 million (Christie’s, 2021) or Twitter CEO Jack Dorsey auctioning off his first-ever tweet for $2.9 million (Valuables, 2021).
  • NFTs are unique certificates of authenticity on blockchains that are usually issued by the creators of the underlying assets.
  • NFTs serve not as a currency, a commodity or a technology but as an asset.
  • Within less than half a year (by May 16, 2021), hundreds of thousands of NFTs worth over $800 million were traded (NonFungible, 2021).
  • Most of these NFTs referred to digital art, collectibles, music, in-game items or metaverses.
  • To access and use cryptocurrencies is a complex task; therefore, those who have mastered it are more likely to also participate in the NFT market.
  • There are few prior studies on the financial aspects of NFT markets.
  • The aim of the present study is to investigate how the markets for NFTs and cryptocurrencies are related.
  • We extract macro data on the Ethereum-based NFT market, more specifically the trading volume of all NFTs in USD and the number of blockchain wallets participating in the NFT market (sellers and buyers), and analyze how these relate to the pricing of Bitcoin and Ethereum using a cointegrated vector autoregressive (VAR) model, i.e. a vector error correction model (VECM).
  • Our data on overall trading volume and users should permit a better understanding of the NFT phenomenon, with the existing research focusing on pricing aspects of NFT (sub)markets.
  • We find that BTC and ETH pricing affects the NFT market, while the NFT market does not significantly influence the pricing of cryptocurrencies.
worms eye view of spiral stained glass decors through the roof
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The Flaws of Proof-of-Stake: Why It’s a Defective Cryptosystem

Read Time:2 Minute
  • Proof-of-stake algorithms implemented as distributed consensus mechanisms in the base layer of blockchain networks are defective cryptosystems by nature.
  • By trying to improve the energy efficiency of blockchains using proof-of-work in the consensus mechanism, proof-of-stake is introducing a set of significant new flaws in both monetary and governance models.
  • Such systems are plutocratic, oligopolistic, and permissioned.
  • Initial supply and distribution are fundamental problems to tackle and consider when designing a cryptocurrency.
  • Proof-of-stake essentially means proof of wealth.
    Block rewards are directly linked to the amount of coins participants own and stake.
  • The more coins stakeholders have, the more they will be earning in the future.
  • Stakers receive coins, and miners earn coins.
  • There is a centralized creation of the initial supply, followed by its distribution, and ending with stakeholders (shareholders) receiving block rewards (dividends) by holding coins (stocks).
  • Blockchain networks implementing proof-of-stake algorithms as distributed consensus mechanisms are oligopolistic cryptosystems.
  • In oligopolies, the supply side is small, and it is non-competitive. There is no natural selling pressure for the recipients of block rewards.
  • However, miners of blockchain networks implementing consensus mechanisms relying on proof-of-work are, in a certain way, forced to partially sell their rewards to cover costs (pay equipment and electricity bills).
  • That is when newly issued coins enter the market — there is a market distribution coming from the participants engaged in the opportunity cost that the mining process offers.
  • Contrarily, in proof-of-stake systems, stakeholders are incentivized not to sell their coins due to the perpetual oligopoly and the plutocratic governance model.
  • For a blockchain to not be dependable on external trusted third parties nor central authorities, it must be permissionless.
  • In blockchains using consensus mechanisms based in proof-of-work, anybody can become a node operator or a miner, and consequently, participate in the distribution of coins and in the validation and verification process by running a full node without having to own any stake.
  • Conversely, in blockchain networks using proof-of-stake as a consensus mechanism there is only a single way for users to join the network, by buying coins from coin owners willing to sell.
  • There is no possibility that somebody without coins can participate in the reward distribution, in the process of securing the network, or running a node.
  • Moreover, the total amount of nodes is limited by the network rules and its supply, preventing a major decentralization, and making many users dependable of external node operators in view of the minimum requirements to run a node.
  • One of the main concerns of oligopolies is that their members may block new entrants.
  • In this case, with a central authority managing the initial supply of the cryptocurrency, attached to the fact that the system is plutocratic and oligopolistic, this centralized authority is the one dictating who can join the network.
  • Therefore, proof-of-stake implemented in the protocol layer of a blockchain network only enables a permissioned system.
  • By trying to improve the energy efficiency of blockchains using proof-of-work in the consensus mechanism, proof-of-stake is introducing a set of significant new flaws in both monetary and governance models.

In conclusion, it is clear that proof-of-stake algorithms are defective cryptosystems by nature. By trying to improve the energy efficiency of blockchains, they are introducing a set of significant new flaws in both monetary and governance models. Such systems are plutocratic, oligopolistic, and permissioned.

black and red caliper on gold colored bitcoin
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The Metaverse: A New Frontier for Economic Opportunity

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Introduction

  • The Metaverse is a shared vision among technology entrepreneurs of a threedimensional virtual world that overcomes spatial, temporal, and resourcerelated constraints imposed by nature.
  • The technological infrastructure of the Metaverse, i.e. Web3, consists of blockchain technology, smart contracts, and NonFungible Tokens (NFTs), which reduce transaction and agency costs, and enable trustless social and economic interactions.
  • The Metaverse may give rise to new products and services, new job profiles, and new business models.
  • The market capitalization of incumbent (Web 2.0) firms working on Metaverse technologies is $14.8 trillion, while the estimated value of (Web 3.0) Metaverse entrepreneurs is only $0.03 trillion.
  • Metaverse entrepreneurship is on the rise, with an explosive growth in decentralized applications (dApps) specifically designed for the Metaverse.
  • The Metaverse has several advantages, including expanding the living and working space, extending human intelligence to knowledge robots, and enabling humansuperproductivity via multiple avatars.
  • There are also several challenges that need to be overcome, such as data privacy, moral and ethics, healthrelated concerns, and the adoption of decentralization logics.

What is the Metaverse?

  • The Metaverse is a shared vision among technology entrepreneurs of a threedimensional virtual world, an embodied internet with humans and the physical world in it.
  • The Metaverse is a persistent virtual system with realtime information processing capabilities that makes available the current state of knowledge to all users at the same time at all times.
  • The Metaverse is a decentralized platform that features a high degree of interoperability to enable the mobility of digital identities, experiences, and possessions across the Metaverse from one place, event, or activity to another.
  • The Metaverse overcomes limitations of Web 2.0based virtual realities by enhancing users selfperception and presence, increasing human interactivity, and improving realistic expressions of human qualities, such as emotions.

NFTs the enablers of the Metaverse

  • NFTs are the enablers of the Metaverse because they are based on technical standards for interoperability.
  • NFTs have betweenapplication utility.
  • NFTs can be expected to spur economic activity in and the development of the Metaverse.
  • The elasticity of the supply consensus is an important determinant of NFTs value.
  • The degree of NFTs compatibility with thirdparty applications creates value.
  • Similarly to the second pillar, betweenapplication utility enables continuous social identities that transcend across Metaverse applications.
  • Metaverse developers can extract some of this value, for instance, by selling minted NFTs, charging commission fees for facilitating NFT trade, or entrance fees for new developers to join existing Metaverse projects.
  • The virtual NFTbased world is fundamentally capitalistic.
  • In contrast to the governments monopoly of setting the rules of the game in the physical world, the Metaverse allocates governance rights in a decentralized way to applications communities.

The Metaverse Economy

  • The Metaverse is demanddriven in the sense of Keynes (1937) because digital objects can be created largely without any constraints thanks to the infinity of digital resources.
  • A survey by Newzoo (2021) reports that more than onethird often or occasionally join game worlds for social rather than gaming purposes.
  • When asked about activities that respondents would be interested or very interested to shift to the Metaverse, more than twothirds reported routine social activities.
  • The Metaverse will also produce new business models and job profiles, such as smart contract lawyers and digital fashion designers.
  • The Metaverse could also have a positive impact on social inclusion, for example by virtual identities not being bound to their physical identities disabilities.
  • The Metaverse may also reconcile economic growth with environmental sustainability, for example by activities that are environmentally unsustainable in the physical world being sustainable in the virtual world.
  • The Metaverse could also serve as a bootstrap mechanism to improve human and modelbased decisionmaking.

Metaverse Economics

  • The Metaverse will be built by either startups or incumbents.
  • The public Metaverse is a decentralized, open and interoperable virtual world, while the private Metaverse is a centralized future controlled by big corporates.
  • The Metaverse may improve the efficiency of social and economic interactions by reducing transactions costs and increasing productive time.
  • However, the Metaverse will also feature granular markets with high market participation and completion, which will lead to search frictions and resource misallocations.
  • The path to equilibrium in the Metaverse economy may feature resource misallocations, e.g., in the form of bespoke footware for avatars long before they can beworn“.
  • An interesting study finds that virtual land plots in the Metaverse auctioned by Decantraland have various premia attached to them, depending on their virtual proximity to important virtual landmarks or memorable addresses.
  • Related work finds that the pricing of NFTs, as enablers of the Metaverse, are relatively inefficient.
  • The inefficiency of the market for Metaverse assets may reflect a deeper issue, at least during the earlyadoption phase of the Metaverse: The pricing of digital goods in the Metaverse is difficult.

Fuzzle: The revolutionary new way to digital companionship

  • Fuzzle is an NFT project that totally takes this idea of digital companionship to the next level.
  • Powered by AI and language prediction tools, Fuzzles are reactive and adaptive in conversations, finally bringing digital pets into the modern era.
  • Fuzzles are designed to be able to converse in a casual and human voice, and they’re empathetic and understand human emotions.
  • With their advanced AI, they can offer insightful discourse based on contextual cues and adapt to dynamic conversations full of varied speech patterns and emotions.
  • The team at Endless AI has taken advantage of GPT-3 language prediction tech that was created by OpenAI and paired it with Clockwork, their in-house intelligent production platform.
  • The sale itself starts on April 27th.
  • At first, your digital pet will learn from you on a per-conversation basis. However, the team at endless is working towards Fuzzle eventually being capable of learning from all of your interactions over time so that your Fuzzle can grow and evolve.

The Importance of Fibonacci Retracements in Predicting Energy Stock Prices

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Key Points:

  • Fibonacci retracement is a popular technical analysis indicator that can be used to predict stock prices of leading U.S. energy companies and energy cryptocurrencies.
  • The study methodology focuses on applying Fibonacci retracements as a system compared with the buyandhold strategy.
  • The Fibonaccibased strategy resulted in higher returns relative to the naïve buyandhold model.
  • Fibonacci retracement captures energy stock price changes better than cryptos.
  • The Fibonacci strategy is superior to the naïve buyandhold model.
  • Complementing the Fibonacci retracement strategy with the price crossover strategy is not an effective trading model for energybased commodities.
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In recent years, there has been a growing interest in the role of technical analysis in predicting stock prices. Fibonacci retracements, a popular technical analysis indicator, have been shown to be effective in predicting stock prices of leading U.S. energy companies. This study sought to investigate whether the Fibonacci retracements tool could also be used to predict energy cryptocurrencies.

Daily crypto and stock prices were obtained from the Standard & Poor‘s composite 1500 energy index and CoinMarketCap between November 2017 and January 2020. The study found that Fibonacci retracements captures energy stock price changes better than cryptos. Furthermore, most price violations were frequent during price falls compared to price increases, which supports that the Fibonacci instrument does not capture price movements during up and downtrends, respectively.

The study also examined if the combined Fibonacci retracements and the price crossover strategy result in a higher return per unit of risk. The findings revealed that the Fibonaccibased strategy resulted in higher returns relative to the naïve buyandhold model. Finally, complementing Fibonacci with the price cross strategy did not improve the results and led to fewer or no trades for some constituents.

Overall, the findings of this study elucidate that, despite significant drops in oil prices, speculators (traders) can implement profitable strategies when using technical analysis indicators, like the Fibonacci retracement tool, with or without price crossover rules.

This study found that Fibonacci retracements are more reliable in predicting energy stock prices than cryptos. The study suggests that price violations are observed more during downtrends than uptrends. Furthermore, the Fibonacci strategy is superior to the naïve buyandhold model. Complementing the Fibonacci retracement strategy with the price crossover strategy is not an effective trading model for energybased commodities. Overall, this study provides useful insights into the role of Fibonacci retracements in predicting energy stock prices. The findings suggest that Fibonacci retracements can be used as an effective tool for traders in the energy market. Read the paper here.

NFTs: A New Frontier in Marketing

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NFTs: A New Frontier in Marketing 17
  • We define an NFT as an ownable unique or limited quantity unit of data that is tradeable and stored on a decentralized, public blockchain along with its ownership history.
  • NFTs represent ownership of any information, including URLs, images, videos, 3D objects, social media posts or certificates that can be associated and stored on the blockchain together with the identifier of that unique good.
  • Once the NTF is created through a process called “minting,” each subsequent transaction is recorded on the blockchain, thus aggregating history over time.
  • Importantly, unlike other digital goods and cryptocurrencies such as Bitcoin, each NFT is distinguishable and typically unique.
  • We propose that NFTs offer a concrete entry point into what we call “crypto-marketing,” a nascent sub-discipline that includes any marketing practice that leverages distributed ledger (blockchain) technology for the purpose of designing, pricing, promoting and selling digital and non-digital goods.
  • NFTs raise questions in three main areas: digital ownership, uniqueness, and value; authenticity, status, and sharing; and decentralization of branding and distribution.
  • First, social media firms use the ability to authenticate ownership as a means of conferring status on users, presumably raising the value of interacting on their platform.
  • Second, NFT technology may affect what information consumers share with others. The potential to turn one’s own social media posts, reviews, comments, and blogs into tradable NFTs already exists.
  • Third, NFTs offer consumers new ways to exchange economic value. Classic explorations of “pain of payment effects” have documented consumers’ propensity to spend more in lower-pain modes, such as credit cards, than in more transparent, “painful” modes, such as cash.
  • NFTs’ decentralized nature calls into question our understanding of branding and product management as centralized processes. First, NFT marketing, product development, and personalization are crowdsourced. Second, NFTs transform the supply chain, as the decentralized ledger eliminates the need for intermediaries such as wholesalers, retailers, or sales agents.
  • Although crypto-marketing provides novel opportunities for marketing practice and research, it also poses distinct risks. First, crypto-marketing will need to inspire new forms of trust: decentralization may lead external regulators to struggle to police behaviors in the system. Secondly, blockchains (especially “proof-of-work” blockchains) can consume extraordinary amounts of energy and thus, generate environmental costs.
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In conclusion, NFTs offer a new way to think about digital ownership, value, and authenticity. They also have the potential to disrupt traditional marketing practices around branding, product development, and distribution. However, NFTs also come with risks, including the need for new forms of trust and the potential for environmental harm.

The Metaverse: A Brave New World for Lawyers

Read Time:2 Minute

Key Points:

  • ArentFox has boughtland in Decentraland for the purpose of establishing a law office in cyberspace.
  • The metaverse is the emerging cyberspace realm where people and entities will interact, engage in games, sports, and entertainment, buy and sell goods and services, and otherwise get into legal disputes.
  • The Horizon Worlds metaverse platform brought to you by Meta (FKA Facebook) was still in beta testing in December 2021 when a female beta tester asserted a complaint with Meta that she was groped andinappropriately touched in the virtual reality simulation.
  • Many lawyers will try to ignore the metaverse, but this is a shortsighted strategy because our clients will not be ignoring the infinite growth potential of this new realm of cyber existence.
  • It is anticipated that the future metaverse could accommodate virtually every kind of legitimate or criminal human activity, and so legal problems could arise from the metaverse relating to a huge variety of activities.
  • One of the main reasons ArentFox put down stakes in Decentraland was because several of its major clients, including PwC (PricewaterhouseCooper), had already staked out claims in the cyber frontier.
  • The list of areas of law could continue, but this only opens the door to a myriad of complications brought about by legal subject matter, transactions, and occurrences that happened in no particular place in the real world but very much happened in the metaverse world.
  • Basic questions about jurisdiction, venue, choice of law, and conflicts of law are not basic questions when the metaverse is concerned.
  • Lawyers will need to start thinking of answers to these questions if their clients are running full tilt to the metaverse.
  • One fact about the crypto community and the emerging metaverse that should be noted by lawyers is that many crypto natives are entirely antilaw.
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ArentFox, one of the largest law firms in the world, is opening a law office in the metaverse. The move comes as clients increasingly engage in activities in the cyber frontier, including forming DAOs, participating in DeFi, and buying and selling NFTs.

With the increasing popularity of the metaverse, lawyers will need to start thinking of answers to questions about jurisdiction, venue, choice of law, and conflicts of law. The aversion to law in the crypto community means that many clients may eschew proper business association forms in favor of loosely organized clubs and coops.

The code is law philosophy will be the start of an interesting conversation for a future lawyer to have with a client someday. In conclusion, as the builders of the metaverse try to create a whole new world of opportunities for present and future clients, lawyers will do well to go at least a little way down the rabbit hole so we can help clients navigate this brave new world.

Lawyers will play an important role in the emerging metaverse, as they will be needed to help navigate the brave new world and advise clients on the legal implications of their activities. The aversion to law and authority in the crypto community means that lawyers will need to be prepared to handle a wide variety of legal issues, from fraud to securities regulation. The key to success for lawyers in the metaverse will be to stay ahead of the curve and be prepared to advise clients on the everchanging legal landscape.

 

No Crypto for the Underbanked: Why Financial Inclusion Is Still Elusive

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Many crypto proponents believe that the abundance of mobile devices will allow underbanked people to skip banks altogether and use crypto instead. They argue that traditional financial institutions slothlike service cant compete with cryptocurrency technology.

But new crypto technologies are far from helping underserved communities escape their financial isolation. The companies behind crypto, including but not limited to decentralized finance (DeFi), have failed to provide user friendly apps, educational resources and other tools.

Indeed, even as public awareness about crypto mushrooms, and some of the worlds largest institutional investors launch their first projects to address demand for the asset, crypto has yet to approach parity with traditional currencies. Even in the United States, with its massive wealth and hubs of innovation, people rarely use crypto to pay rent, taxes or other common expenses. Relatively few retailers accept it.

What can crypto provide if the controls are hard to use and those who might use it dont have enough willing partners to make the system work? They might as well be given fighter jets to fly.

To be sure, I remain a believer in cryptos potential. I see bitcoin, and perhaps several altcoins one day becoming common forms of exchange. I view blockchain technology as a way to improve entrenched, centralized systems in financial services and perhaps every other industry. I believe that crypto can change lives because it serves the individual consumers needs.

But I would like to suggest an alternative approach to crypto, an intermediary step while we wait for the right conditions for widespread adoption to occur that makes more sense than trying to convert people unready for conversion.

Financial services organizations and policy makers would do better focusing on widening access to the services that the underbanked need to conduct transactions, even if those are not related to crypto. Underserved communities need help now, and whether this assistance is rooted in fiat currency and central banking systems should not hamstring the process.

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  • Many people believe that crypto will increase access to financial services for underbanked communities.
  • The proponents say that the abundance of mobile devices will allow people to skip banks altogether and to use crypto instead.
  • They add that traditional financial institutions’ slothlike service can’t compete with cryptocurrency technology.
  • But new crypto technologies are far from helping underserved communities escape their financial isolation.
  • The companies behind crypto, including but not limited to decentralized finance (DeFi), have failed to provide user friendly apps, educational resources and other tools.
  • As a result, bitcoin (BTC) and other cryptos have yet to make substantial inroads as usable currencies.
  • Bitcoin’s volatility is also discouraging.
  • Indeed, even as public awareness about crypto mushrooms, and some of the world’s largest institutional investors launch their first projects to address demand for the asset, crypto has yet to approach parity with traditional currencies.
  • What can crypto provide if the controls are hard to use and those who might use it don’t have enough willing partners to make the system work?
  • Financial services organizations and policy makers would do better focusing on widening access to the services that the underbanked need to conduct transactions, even if those are not related to crypto.