Archive for the ‘Decentralization’ Category

Is There a Sunny Outlook for Solana? – Finance Magnates

There was a period, back in the euphoria of cryptos 2021 bull market period, when Solana was the blockchain name of the moment, spoken about as the next big thing, and with, according to its advocates, the potential even to outdo Ethereum in the race to become the foundational network of choice for web3 developers.

There were multiple reasons for this optimism, not least the fact that it had backing from VCs keen to promote its virtues. And, on balance, it should be noted that Solana does have significant characteristics in its favor. Most advantageously, its fast and cheap, two critical factors in attracting developers, who should in turn attract further users.

Remember that this was prior to the Ethereum Merge, a time when there were significant doubts as to whether Ethereum would ever make its long-promised transition from proof-of-work to proof-of-stake. Constant delays in the execution of Ethereums protocol change were beginning to foster a sense that scaling would, in turn, be delayed, and that sky-high fees and network congestion would never be resolved.

Additionally, Ethereum Layer 2s were not as prominent as they are now, and, although it was known that The Merge would not solve scaling issues on its own (such issues still exist), execution would at least indicate that development was proceeding in the right direction.

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Against this backdrop, alternative Layer 1 blockchains, including not only Solana, but also Cardano, Avalanche and others, provided a compelling alternative. From here, Solana picked up in activity, thanks to its simplicity (no friction-adding Layer 2s required) and, at a time when blockchain-based digital art was making headlines for some huge sales, its NFTs. In fact, Solana would quickly become the second most-well known network for NFTs (after Ethereum) and evolved into an active community of NFT creators, traders and collectors, who were optimistic about the future of the network.

Amidst the bullishness around Solana, the blockchain also ran into some problems, which would, over time, become increasingly conspicuous.

A recurring fault was the issue of network outages when the entire blockchain would effectively stop working. The most recent of these occurred last month and lasted for almost twenty hours, and after that came a total of fourteen outages throughout 2022. The first breakdown in Solanas history was in December 2020, the same year as its launch, and when the blockchain was still serving only a relatively small number of users.

Solana has also been criticized for a perceived lack of decentralization, a factor which is vitally important in the crypto world. One reason for this is the networks initial token allocation when, according to data from research platform Messari, almost 50% percent of the blockchains native token, SOL, went to project insiders, with very little allocated to a public presale. Since staked SOL enables the operation of network validators, we can infer that a small number of holders exercise outsized control over the validation of transactions.

Criticism of Solana as a VC-centered project became even more of an issue towards the end of 2022 when FTX collapsed. The wreckage around this catastrophe was of particular relevance to Solana due to the networks links with Sam Bankman-Fried. The disgraced CEO of FTX had invested $314.2 million in Solana Labs, through the FTX-linked Alameda Research, and had lauded Solana in interviews, creating a perception, once the post-downfall reality about FTX had come to public light, of a disreputable connection.

Solana was certainly looking worse for wear towards the end of last year, but 2023 has, lately, seen hints that a comeback may be in the works. Notably, there has been recent news about the Worldline payment services provider entering into a partnership with Solana.

This integration means web3 projects operating on Solana will gain access to the Payment Orchestration platform run by Worldline, which removes the need for projects to create multiple payment integrations since Worldlines platform directly connects with over 300 payment providers and methods, including fiat on/off ramps.

This development follows Worldline announced plans to provide services within the Decentraland metaverse project, indicating that web3 and crypto-oriented development are on its radar as areas to expand into.

There has also been growing anticipation about the in-development Solana phone, called the Solana Saga. This product was announced back in the summer of 2022 and has been expected to ship in early 2023. Its an Android device augmented for web3 applications and payments, and, if it arrives soon, will come at a time when crypto urgently needs to go mobile in order to demonstrate that practical integration and daily use cases are a reality.

Additionally, there is speculation about Render Network migrating to Solana. Render is specialized in decentralized hardware solutions (specifically, GPU rendering), and in a proposal about the potential move, its Founder, Jules Urbach, stated that: Solana has the right mix of speed without compromising security (vs side-chain approaches). No decision has yet been made, and there is a 21 day community feedback period, which began on March 20th.

The Foundation released a primer on RNP-002 today.

The post details RNP-002: Layer 1 Network Expansion.

In accordance with RNP-000 there is up to a 21 day community feedback period that begins today! We would love your feedback. https://t.co/90j0gmhCOw

As with much of web3 and crypto, Solanas future is unclear, but, while issues around network reliability are ongoing, and there may continue to be criticism about a perceived lack of decentralization, it appears that there are some potentially constructive developments lining up.

There was a period, back in the euphoria of cryptos 2021 bull market period, when Solana was the blockchain name of the moment, spoken about as the next big thing, and with, according to its advocates, the potential even to outdo Ethereum in the race to become the foundational network of choice for web3 developers.

There were multiple reasons for this optimism, not least the fact that it had backing from VCs keen to promote its virtues. And, on balance, it should be noted that Solana does have significant characteristics in its favor. Most advantageously, its fast and cheap, two critical factors in attracting developers, who should in turn attract further users.

Remember that this was prior to the Ethereum Merge, a time when there were significant doubts as to whether Ethereum would ever make its long-promised transition from proof-of-work to proof-of-stake. Constant delays in the execution of Ethereums protocol change were beginning to foster a sense that scaling would, in turn, be delayed, and that sky-high fees and network congestion would never be resolved.

Additionally, Ethereum Layer 2s were not as prominent as they are now, and, although it was known that The Merge would not solve scaling issues on its own (such issues still exist), execution would at least indicate that development was proceeding in the right direction.

Keep Reading

Against this backdrop, alternative Layer 1 blockchains, including not only Solana, but also Cardano, Avalanche and others, provided a compelling alternative. From here, Solana picked up in activity, thanks to its simplicity (no friction-adding Layer 2s required) and, at a time when blockchain-based digital art was making headlines for some huge sales, its NFTs. In fact, Solana would quickly become the second most-well known network for NFTs (after Ethereum) and evolved into an active community of NFT creators, traders and collectors, who were optimistic about the future of the network.

Amidst the bullishness around Solana, the blockchain also ran into some problems, which would, over time, become increasingly conspicuous.

A recurring fault was the issue of network outages when the entire blockchain would effectively stop working. The most recent of these occurred last month and lasted for almost twenty hours, and after that came a total of fourteen outages throughout 2022. The first breakdown in Solanas history was in December 2020, the same year as its launch, and when the blockchain was still serving only a relatively small number of users.

Solana has also been criticized for a perceived lack of decentralization, a factor which is vitally important in the crypto world. One reason for this is the networks initial token allocation when, according to data from research platform Messari, almost 50% percent of the blockchains native token, SOL, went to project insiders, with very little allocated to a public presale. Since staked SOL enables the operation of network validators, we can infer that a small number of holders exercise outsized control over the validation of transactions.

Criticism of Solana as a VC-centered project became even more of an issue towards the end of 2022 when FTX collapsed. The wreckage around this catastrophe was of particular relevance to Solana due to the networks links with Sam Bankman-Fried. The disgraced CEO of FTX had invested $314.2 million in Solana Labs, through the FTX-linked Alameda Research, and had lauded Solana in interviews, creating a perception, once the post-downfall reality about FTX had come to public light, of a disreputable connection.

Solana was certainly looking worse for wear towards the end of last year, but 2023 has, lately, seen hints that a comeback may be in the works. Notably, there has been recent news about the Worldline payment services provider entering into a partnership with Solana.

This integration means web3 projects operating on Solana will gain access to the Payment Orchestration platform run by Worldline, which removes the need for projects to create multiple payment integrations since Worldlines platform directly connects with over 300 payment providers and methods, including fiat on/off ramps.

This development follows Worldline announced plans to provide services within the Decentraland metaverse project, indicating that web3 and crypto-oriented development are on its radar as areas to expand into.

There has also been growing anticipation about the in-development Solana phone, called the Solana Saga. This product was announced back in the summer of 2022 and has been expected to ship in early 2023. Its an Android device augmented for web3 applications and payments, and, if it arrives soon, will come at a time when crypto urgently needs to go mobile in order to demonstrate that practical integration and daily use cases are a reality.

Additionally, there is speculation about Render Network migrating to Solana. Render is specialized in decentralized hardware solutions (specifically, GPU rendering), and in a proposal about the potential move, its Founder, Jules Urbach, stated that: Solana has the right mix of speed without compromising security (vs side-chain approaches). No decision has yet been made, and there is a 21 day community feedback period, which began on March 20th.

The Foundation released a primer on RNP-002 today.

The post details RNP-002: Layer 1 Network Expansion.

In accordance with RNP-000 there is up to a 21 day community feedback period that begins today! We would love your feedback. https://t.co/90j0gmhCOw

As with much of web3 and crypto, Solanas future is unclear, but, while issues around network reliability are ongoing, and there may continue to be criticism about a perceived lack of decentralization, it appears that there are some potentially constructive developments lining up.

Read the rest here:

Is There a Sunny Outlook for Solana? - Finance Magnates

How is blockchain like a car? – BusinessWorld Online

Alot of my friends in the industry messaged me about my inaugural article last week on blockchain, mostly asking me to explain it better for them. I get the impression that a big majority of people feel more anxious when they hear the word blockchain because they have absolutely no notion what it means to them. As someone whose background is in marketing, I can empathize with their confusion when they were just beginning to learn about social media, technologies, and digital platforms; but, the world has since moved on past them once more.

I attempted to allay their concerns by assuring them that they need not feel overpowered by the situation. It is not necessary for you to comprehend how blockchain works any more than it is necessary for you to know how to literally develop a mobile application or a website. What is more crucial is having an awareness of how it operates, how it can be utilized for commercial purposes, and how it relates to the work that is done on a daily basis.

Its the same as getting behind the wheel of an automobile. For one thing, I believe that I have mastered the art of driving, particularly in the congested streets of Manila. On the other hand, if my automobile breaks down, no amount of formal education will help me fix it. The same may be said about blockchain. It is not necessary for you to grasp how to construct a blockchain; all you need to do is comprehend the potential and advantages that come along with the technology.

There are many reasons why the technology behind blockchain is so crucial in todays society. The most important is decentralization. Blockchain technology makes it possible to create decentralized systems that can function without the participation of intermediaries like banks or other financial organizations. Because of this decentralization, transaction costs may be reduced, and increased transparency may result.

The second is safety. Blockchain relies on sophisticated cryptography to provide records that are both secure and impossible to alter. This security might be of utmost significance in domains such as financial transactions, where the threat of fraud and hacking is particularly high.

Third is that it is completely open. Blockchain technology generates a public and viewable ledger of all transactions, which can be accessed by anyone who has access to the network. This transparency has the potential to assist in increasing accountability and decreasing corruption.

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Fourth is its efficiency. Blockchain technology has the potential to improve efficiency by eliminating the need for third-party middlemen and making record-keeping more automated. This greater efficiency can contribute to cost reductions while also improving the delivery of services.

While blockchain technology is still in its infancy, there is a great deal of room for development in terms of new and creative applications. As the underlying technology continues to advance, we should anticipate the appearance of new uses in a wide variety of industries. Blockchain technology has the ability to completely transform how we handle financial transactions, keep records, and trade value with one another. Its unique combination of security, transparency, and decentralization makes it a significant technology for todays society, with ramifications for enterprises, governments, and individuals alike. This technology has the potential to revolutionize all of these spheres.

A COUNCIL TO DRIVE BLOCKCHAIN AWARENESS, GROWTHThe Blockchain Council of the Philippines is a business group with the mission of fostering the development of blockchain applications and encouraging their widespread implementation in the Philippines. In 2022, a collection of blockchain enthusiasts, entrepreneurs, business experts, and activists came together to create the council.

The major purpose of the council is to educate businesses, government organizations, and the general public about the benefits of blockchain technology and how it can be utilized to solve a variety of problems. This will be accomplished through education and outreach initiatives.

In addition to this goal, the council intends to act as a facilitator for collaboration between the many players in the blockchain ecosystem, such as startup companies, investors, developers, and legislators. We look forward to putting our country on the blockchain map, and, by working with all stakeholders in our countrys ecosystem, position us as the blockchain capital of the Asia.

Dr. Donald Lim is the founding president of the Blockchain Association of the Philippines and the lead convenor of the Philippine Blockchain Week. He is also the Asian anchor of FintechTV.

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How is blockchain like a car? - BusinessWorld Online

Venture capital-backed SPDx eyes nationwide network of med … – MiBiz: West Michigan Business News

GRAND RAPIDS A startup company backed by West Michigan investors wants to reduce costs at hospitals and outpatient surgical centers by centralizing and managing their sterile processing for surgical instruments.

Sterile Processing Express, or SPDx, opens its first sterile processing center next month in Phoenix, Ariz. The Grand Rapids-based company has been scouting for locations in Dallas, Texas, and Orlando, Fla. for the next two centers with hopes to begin construction in each market in the latter half of 2023.

SPDx aims to have six sterile processing facilities within four years and then expand it from there, CEO Julius Heil told MiBiz.

We envision a model where we have as many as 30 of these around the country in major metropolitan areas to support both the hospitals and the ASCs, Heil said.

Heil joined SPDx earlier this year after serving as president and CEO of national group purchasing organization Intalere Inc. that Utah-based Intermountain Healthcare sold to supply chain management company Vizient Inc. two years ago. Heil continued with Vizient for a transition period.

Focused primarily on orthopedics, SPDx wants to handle the sterilization process for hospitals, ambulatory surgical centers and instrument manufacturers and manage their inventory. In time, SPDx also could manage sterile processing departments inside hospitals as a third-party vendor and is considering a future move into sterilizing surgical instruments for dental and veterinary practices, Heil said.

The companys value proposition is predicated on driving greater efficiency and the improving cost structure for clients through centralized sterile processing centers.

Health care is spiraling out of control from a cost perspective and were all customers, Heil said. Theres a huge shift in where the customers want to get health services performed, have access and make sure that theyre safe.

SPDx plans to pursue a $15 million Series A capital round later this year to support its expansion, Heil said. The company has garnered early interest from hospitals, surgeons who have ownership interests in ASCs, and venture capital firms and other health care industry investors, Heil said.

Grand Rapids-based Genesis Innovation Group LLC formed SPDx to play into a massive shift occurring in health care where surgical procedures are increasingly moving from hospitals to lower-cost outpatient ambulatory surgical centers, Heil said. The company will sterilize and store surgical instruments for clients and deliver them almost instantaneously when needed, whether thats the surgical center up the road or the hospital down the street, he said.

The idea for SPDx came from a limited partner at Grand Rapids-based Cultivate(MD) who has significant commercial experience in orthopedics and brought the concept to our attention, said Matt Ahearn, a director at Genesis Innovation Group.

Venture capital firm Cultivate(MD) is part of Genesis Innovation Group and invests in medical technologies.

The Cultivate(MD) limited partner noted an increasing trend within his customer base of knee and hip replacement surgeries being performed in an outpatient setting, Ahearn wrote in an email to MiBiz. He also noted that the surgeons wanted to do more knee and hip replacements in an outpatient setting, but that the surgery centers didnt have the capacity to clean and sterilize the instruments required for the surgeries

Genesis Innovation Groups due diligence validated the concept with hundreds of orthopedic surgeons and ASC owners and development groups, Ahearn said. The groups due diligence also confirmed that the market demand for services in Phoenix was incredibly high, he said.

SPDx launched in 2021 with capital from Cultivate(MD) and The 4100 Group Inc., the Lansing-based investment arm of dental insurer Delta Dental of Michigan and its Ohio counterpart.

Attracted by the operating efficiencies that SPDx can generate and the growing market for ASCs around the nation, The 4100 Group invested $2 million in SPDx, said Chief Investment Officer Scott Lancaster.

Lancaster learned about SPDx last year when he was introduced to Ahearn through a professional connection. After looking into the company, The 4100 Group concluded this was intriguing enough that we decided to participate, Lancaster said.

Partners at Genesis Innovation Group found a pretty unique segment of opportunity in SPDx with the potential to drive cost and capacity efficiencies for hospitals and ASCs that can outsource an operation that typically has been a cost center, he said.

A lot of whats going on in health care is decentralization of services away from the highest expense centers, which are typically hospitals, Lancaster said. This is a complementary service that fits nicely into that whole decentralization model.

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Venture capital-backed SPDx eyes nationwide network of med ... - MiBiz: West Michigan Business News

MapleStory’s Integrating NFTs: Here’s What Players Should Expect – nft now

The Alpha:

Web3 gaming remains one of the most prospective NFT use cases in existence. With the global gaming market size reaching over $200 billion in 2022, the industry is ripe with potential. And it seems that Nexon is hoping to capitalize on some of that potential with one of its most beloved titles.

MapleStory is a cherished and storied name in the gaming community. One of Nexons primary IP offerings, the game has generated over $4 billion in revenue and secured 180 million registered players, according to a recent earnings report.

The blockchain-based iteration, MapleStory Universe, will be built on Polygon Supernets, a blockchain development platform aimed at helping Web3 developers create their own blockchain protocols. Polygon Supernets perform a similar function to that of Avalanche Subnets, to which theyre often compared. These networks allow developers to build and utilize a blockchain sub-network for individual projects, protecting them from sluggish performance issues on the main networks theyre a part of.

Polygon Labs, which is a development and growth team for the Polygon protocol, is set to provide technical and business support for the MapleStory Universe.

We are looking forward to expanding the NFT ecosystem envisioned by MapleStory Universe by building on Polygon, the top protocol for web3 gaming. It is the perfect choice to power the ecosystem, MapleStory Universe group leader Sun-young Hwang said in the press release. We will work closely with the team at Polygon Labs to develop and market the game.

In an article explaining why Nexon decided to turn to blockchain technology, the company noted that its goal is to create an NFT-centered ecosystem that allows players to have a full view of the decision-making, participate in IP development, and have actual ownership of their assets.

While there are many benefits of blockchain technology, Nexon has focused on three in particular: (1) Transparency, with all information recorded on-chain for anyone to see. (2) An open ecosystem, where anyone can contribute to the project and earn rewards for their contributions. (3) Extended utility, through the free movement of in-game assets, they wrote.

To this end, the team noted that users will have a clearer view of the decisions and changes that are made, as the developers design and decision-making processes will now be fully visible on-chain. And since the entire process is recorded on-chain, it will be more difficult for developers to change the rules on a whim, as they are fully visible to all users. The transparent governance of the blockchain and the decentralization of power that it provides makes developers design and decision-making processes fully visible and trustworthy. In this way, users can immerse themselves more easily in the virtual world, the team explained.

Whats more, Nexon will no longer be acting as an administrator with complete control of the server. Instead, it will be a developer participating in an open ecosystem. As a result, other contributors will be on more equal footing, and it will be easier to identify these other contributors. The company explains that this allows for more proactive contributions and ensures that contributors are fairly rewarded for their work.

This increase in transparency and decentralization certainly sounds like a good thing. But unfortunately, would-be players will have to wait a bit to see exactly how this all plays out, as the game currently has no release date.

Link:

MapleStory's Integrating NFTs: Here's What Players Should Expect - nft now

Theta Network (THETA-USD): Decentralized Video Streaming Is … – Seeking Alpha

Marcela Ruth Romero/iStock via Getty Images

Decentralization is the key benefit of blockchain technology and the race to apply it to video streaming is in full swing; Theta wants to usher video content into Web3 and create a new paradigm for how we digest and interact with our favorite video content.

Theta is no household name like Bitcoin (BTC-USD) or Ethereum (ETH-USD), but it may come as a surprise it was once a top 10 cryptocurrency by market cap before losing momentum (now ranked #51 by market cap).

According to Crunchbase, Theta Labs has raised $113 million in funding over five funding rounds. Theta has 32 employees based in the San Francisco Bay Area.

Theta is built on a decentralized video streaming network called Theta Network, which aims to disrupt the traditional video streaming industry. Instead of relying on ads or subscription fees to monetize content, Theta Network uses a dual-token system made up of the Theta USD (THETA-USD) token and Theta Fuel (TFUEL-USD) token to secure the network and incentivize creators and users.

Anything in our digital lives that is controlled by a large, centralized organization is ripe for disruption by blockchain technologies that can decentralize the respective use case and better align incentives between creators, users, and those providing the digital infrastructure.

In the video streaming space, YouTube reigns supreme and frankly, works pretty damn good. However, all the power is centralized at the top (Alphabet (GOOGL) owns YouTube) and any real incentives really only accrue to the largest video streamers. What if YouTube could be removed from the equation? In its place, a blockchain network built on code. Value creation can then be used to incentivize content creators, users, and those providing computing power for the network.

One factor for blockchain technologies that have an edge over centralized players is hosting the data. Alphabet, for example, has massive server costs to host all of the YouTube content. In a blockchain world, the storage costs can be decentralized across the network. Individuals willing to contribute digital storage space and computing power can provide that to the network and earn rewards.

Here is a quick diagram of Thetas video infrastructure:

Summary of Theta's Video Infrastructure (Theta Main Website)

Blockchain technology can also create a richer experience between creator and user. Hypothetically, users can directly earn rewards for watching videos, NFTs can be rewarded to users who achieve certain milestones, and those NFTs can create access to exclusive content or in-real-life events.

According to Messari Research, "Theta TV is the leading application on the Theta Network with millions of users. Theta TV is similar to Twitch, both are live streaming platforms, but users on Theta TV can simultaneously earn rewards for relaying the stream to others. In addition, Samsung VR, Pandora, and MGM are partnering with Theta to use the Network."

It has established partnerships to run enterprise validators on their network with the following organizations:

Enterprise Validator Partners (Theta Network Main Site)

Theta aims to make this a reality through their Mainnet 4.0 (Metachain), which they claim will allow Web3 media, entertainment, and virtual world businesses to scale even more than current Web2 platforms. The team launched the Theta Mainnet 4.0 and related tools on a testnet in October 2022, with a full release in December 2022. Since the release, the Metachain sees around 20,000 transactions per day and around 15,000 daily active wallets. For some perspective, the Cardano network sees anywhere from 50,000 to 100,000 daily active wallets. Given how recently the Metachain was released, this is impressive growth.

It should be noted that Livepeer (LPT-USD) is Theta's primary competitor and has been able to generate organic demand for their network as well.

Statistics on Theta and Theta Fuel Token Activity (Theta's Block Explorer)

There are two tokens in this ecosystem: Theta (THETA) and Theta Fuel (TFUEL).

The THETA token is basically the governance token and used for staking to earn TFUEL. The TFUEL token is a utility token that is paid out as a reward to validators, viewers, and those willing to contribute storage and computing power for the network.

Theta's Token Allocation (CoinGecko)

The token allocation or tokenomics is good but not great. There is a 20% insider share (Team + Partners), but the more worrisome part is the 36.3% in Theta Lab Reserves. That is a lot of Theta token that could be dumped on the market. On the bright side, the THETA token has a fixed supply like bitcoin, meaning inflation will not corrode the value over the long term.

TFUEL, on the other hand, has a 5% inflation rate and no max supply. Here is a comparison of the two tokens:

Theta vs. Theta Fuel (Messari)

Theta Price Action

Theta has fallen over 90% from the all-time high to just over $1 per token, after reaching over $13 in May of 2021.

Theta (THETA) Price Chart (CoinMarketCap)

Similar price action for TFUEL:

Theta Fuel (TFUEL) Price Chart (CoinMarketCap)

Many in Web3 have an end goal of being fully decentralized, but it order to bootstrap growth they often sacrifice decentralization in order to establish themselves, with a goal of decentralizing later.

Theta is no exception. Theta is fairly centralized with most decisions made by Theta Labs and the 20-30 enterprise validator nodes. Then they also have guardian nodes and Edge nodes which just add to the confusion.

Weve gone and tested out Theta.TV and its frankly not great. This is not to say it will be bad forever. In fact, creating a decentralized video infrastructure network is incredibly complex and the team should be given credit for even trying to tackle such a massive project. This technology is still very early and they've been able to secure partnerships that should help improve the content quality over time. Theta Labs recently published additional information on their Mainnet launch and content partners.

They recently launched an new roadmap here:

Theta's recently released 2023 Roadmap (Theta Webpage)

Theta is tackling a very complex issue in creating a decentralized video network. It is still so early. Yes, there is upside potential but there are so many unknowns. The 36% of the token distribution in Theta Labs is a concern but it may be used for value-adding purposes like capital expenditures or acquisitions.

The Theta Fuel (TFUEL) token may be where the value accrues since it is really the reward mechanism for creators and network users. But the Theta Fuel token has 5% inflation rate, which is essentially a 5% hurdle rate.

Theta needs to decentralize further.

Lastly, Livepeer is a formidable competitor, and an analysis of Livepeer will be provided in the near future.

Theta is one to watch, but it is not worthy of an investment at this time.

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Theta Network (THETA-USD): Decentralized Video Streaming Is ... - Seeking Alpha