Web4 – The Next Wave of Decentralization

Web4 – The Next Wave of Decentralization

Decentralized cryptocurrency refers to a digital currency that operates independently of a central bank or authority. Transactions are recorded on a public digital ledger (such as a blockchain) and are verified by a network of users rather than a single centralized institution. This decentralized structure allows for increased transparency, security, and autonomy in financial transactions.

Decentralization and web3

Very often, when we talk about decentralization, the term web3 comes into the picture. Web3, also known as the decentralized web or “Web3.0,” is a vision for the future of the internet in which power and control are distributed among users rather than concentrated in a small group of companies or organizations.

The key element of web3 is decentralization, and it aims to allow users to control their own data and identity, as well as giving them more control over the apps and services they use. It is also thought to have the potential to create new business models and economic opportunities.

The key technology behind web3 is blockchain, which is a decentralized, distributed ledger that allows for secure, transparent, and tamper-proof record-keeping. This technology is used to create decentralized applications (dApps) that can run on a blockchain network rather than on a centralized server. This allows for increased security, transparency, and autonomy in online interactions.

Web3 is also associated with the growing field of cryptocurrency and blockchain-based financial services, which allows for decentralized, peer-to-peer transactions without the need for intermediaries like banks.

While this is doable in theory, we may not be ready for such a bold move. Scott Tripp, a member of Redecentralise.com commented, “there is a need to look at what we mean by decentralization. Is there a need to get rid of the governments and banks to be considered decentralized? I do not think so. We need to take proper steps to get to where we want decentralization to be.”

Jenny Zheng, a Web3 advocate, wrote an article on Hackernoon, “Is Web3 Really Web3?” which got me to think harder. In her article, she said, “Even companies that are built on decentralized protocols may have some centralized elements, such as a team of employees or a board of directors that make decisions on behalf of the company. Is this the right way to run a web3 decentralized entity?”. My next immediate thought was, what is next?

Jack Dorsey, co-founder and former CEO of Twitter, Inc, mentioned in one of his speeches that web3 is not decentralized, and I agree with his comments completely.

Web4 could be next

Web4, also known as the decentralized web refers to a vision for the future of the internet in which power and control is distributed among users, rather than concentrated in a small group of companies or organizations.

In this vision, instead of relying on centralized servers and data storage, web4 would utilize decentralized technologies such as blockchain and peer-to-peer networks to build a more open, transparent, and secure internet. This would enable features such as greater data privacy, censorship resistance, and ownership of digital assets.

The key element of web4 is decentralization, it aims to allow users to control their own data and identity, as well as giving them more control over the apps and services they use. It is also thought to have the potential to create new business models and economic opportunities.

Web4 is also associated with the growing field of AI, which has the potential to complement the decentralized nature of web4 in various ways, such as decentralized AI, Federated Learning, Privacy-Preserving AI, Blockchain-based AI, and AI-driven scalability.

Web4 and artificial intelligence

Here are a few examples of how they could potentially interact:

  1. Decentralized AI: Web4 aims to decentralize power and control on the internet, and this could be applied to AI as well. Decentralized AI systems would allow for more distributed decision-making and reduce the potential for a single entity to have too much control over AI systems.
  2. Federated Learning: Web4 aims to make it easier for different technologies and platforms to work together seamlessly. Federated learning is a technique where multiple devices, such as smartphones, work together to train a shared AI model, it could be a good fit for Web4.
  3. Privacy-Preserving AI: Web4 aims to provide increased security and privacy for users. Privacy-preserving AI is a type of AI that aims to protect users’ data privacy while still allowing for useful AI models to be trained.
  4. Blockchain-based AI: Web4 is associated with the growing field of cryptocurrency and blockchain-based financial services, which allows for decentralized, peer-to-peer transactions without the need for intermediaries like banks. Blockchain-based AI could enable secure and transparent sharing of data between different parties and organizations, which could enhance the development of AI models.
  5. AI-driven scalability: Web4 aims to handle more data and users by using blockchain technology and sharding concept, which would allow for more efficient and faster processing of transactions. AI techniques such as deep learning can also be used to optimize the scalability of the network.

These concepts are really new and may not be accepted by the community at large. But I do believe that web4 will take its shape very soon.

“I believe in decentralization. Web4 could be the next big movement.” – Anndy Lian

 

Source: https://www.securities.io/we4-the-next-wave-of-decentralization/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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The domino effects from FTX’s issue. Bitcoin, Ether in a sea of red. What next for the cryptocurrency market?

The domino effects from FTX’s issue. Bitcoin, Ether in a sea of red. What next for the cryptocurrency market?

The FTX’s situation is not promising at the time of publishing. These are the additional comments I had.

Before the FTX incident, we analysed that there was a chance for the market to see one last pump before the end of the year.

After the incident and if there is no bailout for FTX, I would think this would be another black swan event. Based on what we see right now, there is only an $8 billion liquidity gap. Still, the numbers can go very high if you look at the ecosystem, Defi loan products and the various parties such as leading venture funds, sovereign wealth funds, and pension funds involved. The domino effects could be greater than the Terra/ UST event.

I know of a few venture capital companies who just did a restructure and are in the middle of another fundraising from the previous loss due to Terra. Now, they are being hit once again. I do not think their LPs are going to give them more money. They are gone. You will see them in the news very soon.

If you are not part of FTX ecosystem and have no exposure to them, you should continue to focus on your community, continue to build and ignore the noises. If you have exposure to FTX, my friendly advice is to protect your principal investment, exit while you can to stay afloat. The ride will be very bumpy.

Bitcoin, Ether in a sea of red. What next for the cryptocurrency market?

The scrapping of the Binance-FTX deal has shaken the confidence of investors already licking their wounds following the collapse of Terraform Labs, Three Arrows Capital and Celsius Network

The cryptocurrency market continued its death spiral for the second consecutive day after Binance scrapped a deal to acquire rival exchange FTX.

Prices of major digital assets tumbled to monthly lows, led by Bitcoin, which headed towards $15,000 before rebounding to about $16,800, still down about 10% over the past 24 hours.

Ethereum, the second-largest cryptocurrency by market capitalisation, dropped to $1,087.08 before staging a mini-rally and settling at about $1,180, about 10 percent lower over the past day.

It’s been a turbulent week for cryptocurrencies as the market reacted to reports surrounding two of the biggest cryptocurrency exchanges in the world. Binance, the world’s largest digital asset exchange by volume, said on November 8 it agreed to buy FTX and rescue billionaire Sam Bankman-Fried’s startup from a liquidity crunch.

However, Binance made a U-turn barely 24 hours later. It said that after due diligence and reports regarding mishandled customer funds and alleged US agency investigations, it decided to not pursue the FTX acquisition.

According to a Coindesk report, the native FTT tokens of the FTX, which are also owned by the company, were found in large quantities on the balance sheet of Alameda Research, a cryptocurrency trading company run by Bankman-Fried, prompting widespread criticism of the token.

This meant that Alameda was primarily based on a coin that a sister company created rather than on a standalone asset like fiat money or another cryptocurrency.

 

Fretting investors

Scurrying for cover amid rumours that the FTX would go bankrupt, investors liquidated their FTX-linked coins to reduce possible losses. Binance, which had more than $500 million worth of FTT on its books, began to sell its holdings, exacerbating the woes of an already ailing market.

The blow-hot-blow-cold relationship between Binance CEO Changpeng Zhao and Bankman-Fried shook the market’s confidence as investors fretted over every development in a sector already licking its wounds following the collapse of Terraform Labs, Three Arrows Capital and Celsius Network.

Among other major cryptocurrencies, Binance (BNB) was down 10 percent, Ripple (XRP) was 5 percent lower, Cardano (ADA) dropped 6 percent, Dogecoin (DOGE) declined 7 percent, and Solana (SOL) had plunged 30 percent when this was written.

While some experts said this may be an opportune time for institutional investors, others emphasised the urgent need for greater regulation of the crypto market.

Raj Kapoor, founder of India Blockchain Alliance, said individual investors may become inactive for a while and institutional investors will probably take advantage of the current discounts and hedge their bets.

“This development will give other exchanges a boost and investors should transfer their altcoins into Bitcoin, Ethereum, and other stablecoins and store them in a cold wallet until the market stabilises and wait for the upswing,” Kapoor said.

He added that the FTT fall may trigger a chain reaction of liquidations because FTX’s lenders may also collapse, taking investors down with them.

“I see a lot of other businesses and endeavours going out of business or filing for bankruptcy,” Kapoor said.

Sharat Chandra, cofounder of India Blockchain Forum, said the FTX fiasco exposes the lack of disclosure and transparency that afflict the current digital asset ecosystem.

 

Investor protection

“After the Terra Luna debacle, the FTX incident presents another opportunity to regulators to frame stringent regulations, which might end up stifling innovation. It’s time the G-20 members act swiftly and frame global regulations to avoid regulatory arbitrage and ensure investor protection,” he said.

Anndy Lian, author of NFT: From Zero to Hero, said if there is no bailout for FTX, this would be another Black Swan event. Looking at the ecosystem’s liquidity gap, Defi (decentralised finance) loan products and various parties such as leading venture funds, sovereign wealth funds and pension funds involved, the numbers can go very high.

“The domino effects could be greater than the Terra/UST event. If you are not part of the FTX ecosystem and have no exposure to them, you should continue to focus on your community, continue to build and ignore the noises. If you have exposure to FTX, my advice is to protect your principal investment, exit while you can to stay afloat. The ride will be very bumpy,” Lian said.

 

Source: https://www.moneycontrol.com/news/business/cryptocurrency/bitcoin-ether-in-a-sea-of-red-what-next-for-the-cryptocurrency-market-9488591.html

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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How To Prepare for the Next Crypto Bull Run

How To Prepare for the Next Crypto Bull Run

There is a lot to learn about what appears to be the first bear market since 2018 in light of recent developments in the cryptocurrency space. For both experienced and novice investors, bear markets have historically been a very trying time, with little to no gains being realized. Many investors suffer significant financial losses during bear markets as they attempt to trade despite the unpredictability of recovering from failures. For a newcomer to succeed in cryptocurrency, learning how to protect your investments and have liquidity for the next bull run is crucial. The aim of this article is to offer informed advice on how to avoid common errors in a bear market and essential steps to take in preparation for the continuation of a bull run in this article.

The upside of the newly created crypto bear market, hard by the crash of Terra and more recently the bankruptcy of 3AC, is the opportunity to improve your portfolio in crypto and NFTs. While there’s plenty of YouTubers advising you to “buy the dip” what does this actually mean in practice? A key to that is a strategy revolving around risk mitigation, bearing in mind that while in the long run crypto and NFTs will likely continue to grow in value, while also accepting a lot of NFT projects are not going to survive. A first step to preparing your bear market strategy is to figure out your risk tolerance.

Types of crypto risk strategy from @krissyos

While there’s lots of discussion and peer to peer pressure about buying the dip whether its Bitcoin or Ether the best approach to help mitigate risk is to adopt a more rational attitude. A key tactic to use dollar-cost-averaging. “If you put a certain amount of money in Bitcoin every single week since 2010, you’d be one happy person right now. If you did it over the last year, today you may not be happy, but maybe in a few months you would be incredibly happy,” recommended Ron Levy, CEO of The Crypto Company. In fact, with most exchanges, you can set up dollar cost averaging, with the benefit that you can set and leave it, However, the fact remains it’s only a worthwhile strategy if the investments in crypto increases over time. “For Bitcoin, I like the dollar-cost averaging strategy because I like Bitcoin long term. It is one of the more stable [crypto] investments that a person can make. When we’re talking about dollar-cost averaging with altcoins, I think that that carries a lot more risk to it,” said Wendy O, crypto investor and popular TikToker.

An essential component of the cryptocurrency industry is research and data. Although profitable investors have previously used the bear market to pinpoint blue-chip projects that would soar in the following bull market, because of how innovative and dynamic the cryptocurrency market is, most of the projects on the market stand a good chance of failing to take off before the next bull run. A good run in the bull market, as in the past, would be yours if you took the time to research the “next big thing” in cryptocurrency. Most research involves reading a lot and collecting a lot of data. Researching projects in a bear market can benefit from a variety of resources, some of which are listed below:

DappRadar -When it comes to discovering, tracking, and trading everything from DeFi, to NFTs and gaming with accurate data and analysis then DappRadar, which was born out of the last crypto winter of 2018, is a beneficial tool. It aims to provide its users with access to “top collections, trending dapps, trader volume and maybe, just maybe, uncover the next blockchain unicorn.” Driving more than 1.5 million users into DApps every month, DappRadar tracks of over 9,000 DApps across 30 blockchains. It’s also recently introduced its own token to enable access to useful investor content, as well as participate in its DAO governance, as it looks to develop its “community-driven Web3 ecosystem,” according to their white paper.

Bankless – Bankless is a well-known podcast in the cryptocurrency industry where thought-leaders and the founders of cutting-edge startups are invited to speak and share their opinions on current events in the industry. In addition, Bankless is a resource for information that supports investment choices by providing direct feedback from seasoned investors on telltale signs of a promising project. Weekly newsletters from Bankless also cover DeFi and cryptocurrency.

On taking a positive attitude to the opportunities in the bear market co-host Ryan Sean Adams said on a recent discussion: “First of all you have to get convicted; if you’re not convicted like just don’t listen to what David and I say go develop your own conviction okay, just like stop the podcast and figure out what this asset class is for yourself.”

CoinMarketCap – It’s the most popular cryptocurrency tracking website in the world, according to CoinMarketCap, with data on thousands of cryptocurrencies. To help you better make investment decisions during a bear market, CoinMarketCap provides helpful information on digital assets to retail investors. The problem is that a lot of people who use it don’t really take full advantage of its resource. For example, right at the top of the homepage there is a snapshot of useful global metrics which helps give a real time view of where the market is at. Another useful but under-used feature is the display it provides of all the places to buy a coin, simply by clicking on the market tab.

 

Source: How to Use CoinMarketCap: 17 Must-Know Tips [2022 Tutorial]

Nansen: Nansen is another helpful blockchain analytics platform that uses on-chain data to tag the wallets of seasoned investors, or whales in cryptocurrency jargon so that retail investors can replicate their holdings and invest in the same projects. To quote data journalist Martin Lee: “Blockchain analytics helps to surface new opportunities, do due diligence and using platforms such as Nansen, you’re able to set up alerts to get real time notifications on certain events. You’re able to make more informed investment decisions by knowing who and what transactions are happening on a blockchain as they happen.” Nansen helps to surface the signal and allow you to focus your time on the crypto projects that matter, as early as possible, Lee added.

Cryptocurrency influencers: There is a plethora of cryptocurrency influencers on YouTube, Twitter, and other social media sites which are well-known for their opinions on cryptocurrency projects, for using their platforms to promote different projects from the bull market. Although it’s obviously not a good idea to take every influencer’s advice, they can also help with investment choices if you choose wisely. Examples worth mentioning include Bitboy CryptoZachXBT, and Laura Shin.

The best action in a bear market is to step back, evaluate the market, and pinpoint potential blue-chip projects that spearhead the next bull run. Your success as a retail investor in the next bull market will significantly depend on how effectively you use the available resources and cryptocurrency data available. I advise investors to start learning about various cryptocurrency projects to position themselves for the next bull run as the bear market appears to be here to stay for now. In order to survive the current bear market the smart thing to do was use the best tools available to guide your decision making. “Now’s the time to double down on use of data and crypto sentiment tools like LunarCrush to up your investor game. It’s a time to improve your understanding both technically and socially. Go re-connect with your friends and family now that things have calmed down, and maybe catch up with what’s happening in the larger blockchain eco-system outside of NFTs and crypto tokens.”

 

Original Source: https://www.securities.io/how-to-prepare-for-the-next-crypto-bull-run-thought-leaders/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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