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The next wave of AI agents: A step towards true decentralisation and Web4

The next wave of AI agents: A step towards true decentralisation and Web4

Artificial intelligence (AI) is advancing at a breakneck pace, and with it comes the potential to reshape industries and redefine how we interact with technology. Among the most exciting developments in this space is the rise of AI agents—autonomous systems capable of making decisions, learning from their environment, and executing tasks without constant human oversight. For those of us who believe in the ideals of Web4 and true decentralisation, AI agents represent a critical step forward. They offer the possibility of creating systems that are not only efficient but also equitable and self-sustaining.

However, the concept of AI agents is often misunderstood. Many people equate them with tools like ChatGPT or automated bots, which, while useful, fall far short of the true potential of AI agents. Others see AI as little more than a tool for generating content, such as images or articles. These misconceptions limit our understanding of what AI agents can achieve and obscure their transformative potential. To fully appreciate the next wave of AI agents, we need to move beyond these narrow definitions and explore their practical applications, particularly in the world of cryptocurrency, where they could serve as the backbone of decentralised systems.

Misunderstanding AI agents: More than just tools or bots

When you mention AI agents to the average person, their first thought is often of tools like ChatGPT. While ChatGPT is undeniably powerful—it can draft essays, summarise complex documents, and even assist with coding—it is not an AI agent in the truest sense. ChatGPT is a productivity tool, designed to respond to prompts and assist with specific tasks. It lacks the autonomy and decision-making capabilities that define a true AI agent.

Another common misconception is the idea that automated bots are AI agents. These bots, which are often used for tasks like customer service or social media management, are pre-programmed to perform specific functions. For example, a bot that automatically replies to customer inquiries or schedules meetings based on calendar availability is not an AI agent. It is simply a well-designed automation tool. True AI agents, by contrast, are capable of adapting to new situations, learning from their experiences, and making decisions without human input.

Finally, there is the belief that AI agents are primarily tools for generating content, such as images or articles. While AI can certainly create stunning visuals and compelling text, this is only a small part of what true AI agents can do. To illustrate this, let’s look at three examples of AI applications that go beyond these narrow definitions:

  1. Scientific Discovery: AI systems like DeepMind’s AlphaFold have revolutionised biology by predicting protein structures with remarkable accuracy. This isn’t just a productivity boost—it’s a fundamental shift in how scientific research is conducted. AlphaFold operates autonomously, solving problems that were previously thought to be insurmountable.
  2. Personalised Medicine: In healthcare, AI agents are being used to develop personalised treatment plans. IBM’s Watson Health, for example, has analysed patient data to recommend tailored cancer treatments. This goes beyond simple automation; it’s about making life-saving decisions based on complex data.
  3. Urban Planning: AI agents are also being used to design smarter cities. Sidewalk Labs, a subsidiary of Alphabet, has developed systems that analyse traffic patterns, energy usage, and public transportation needs to create more efficient and sustainable urban environments.

These examples show that AI agents are not just tools—they are autonomous systems capable of transforming entire industries. But their potential becomes even more exciting when we consider their role in the world of cryptocurrency.

AI Agents in cryptocurrency: A new era of decentralisation

The cryptocurrency space has always been a breeding ground for innovation, and the integration of AI agents is the next logical step in its evolution. Unfortunately, when you bring up AI agents in crypto circles, the conversation often focuses on trading bots. These bots, which execute trades based on market conditions, are useful but far from revolutionary. They are not true AI agents; they are simply tools for automating repetitive tasks adapted to live data. The real potential of AI agents in crypto lies in their ability to serve as the backbone of decentralised projects, driving everything from governance to community engagement.

Example 1: DAO Governance

One of the most promising applications of AI agents in crypto is governance. Imagine a project like GOAT (Governance Optimised Autonomous Tokenisation), where an AI agent oversees the entire governance process. This agent could analyse community feedback, monitor on-chain activity, and propose changes to the tokenomics model based on real-time data. By doing so, it ensures that the project remains aligned with the community’s needs and adapts to changing market conditions without requiring constant human intervention.

Example 2: AI-Driven Tokenomics

Another exciting application is the use of AI agents to design tokenisation models. Tokenomics is a complex field that requires balancing incentives for developers, investors, and users. An AI agent could analyse historical data, simulate different scenarios, and propose a tokenisation model that maximises long-term value for all participants. For instance, it could recommend a dynamic staking mechanism that adjusts rewards based on network activity, ensuring the system remains sustainable over time. You can look at ai16z as an example for the above.

Example 3: Community engagement and content creation

AI agents can also play a central role in content creation and community engagement. Picture an AI agent that autonomously generates educational content, such as tutorials and explainer videos, tailored to the needs of the community. It could also moderate forums, answer questions, and even identify and address potential sources of conflict within the community. By fostering a more inclusive and engaged user base, the AI agent would contribute to the long-term success of the project. The closest for this example would be Virtuals Protocol.

These examples demonstrate that AI agents can do far more than automate trading or generate content. They can serve as the central nervous system of a crypto project, driving innovation and ensuring its sustainability.

Challenges and Opportunities

While the potential of AI agents is enormous, there are significant challenges that must be addressed. One of the biggest concerns is transparency. As AI agents become more autonomous, it’s crucial to ensure that their decision-making processes are transparent and aligned with human values. This is especially important in decentralised systems, where trust is a cornerstone.

Another challenge is the risk of centralisation. Ironically, the very technology that promises to enable decentralisation could become a source of centralisation if a few entities control the development and deployment of AI agents. To prevent this, we need to prioritise open-source development and community-driven governance models.

Ethics is another critical issue. As AI agents take on more responsibilities, we must grapple with questions about fairness, bias, and privacy. These challenges are not unique to AI agents, but their autonomous nature makes them particularly difficult to address.

Despite these challenges, the opportunities far outweigh the risks. By integrating AI agents into decentralised systems, we can create a world where technology serves as a true enabler of human potential. Imagine a future where AI agents manage entire ecosystems, from designing tokenomics to fostering community engagement, all while operating transparently and ethically. This is not a distant dream—it’s a vision that is rapidly becoming a reality.

A call to action

The rise of AI agents represents a fundamental shift in how we think about technology and its role in society. These systems are not just tools or bots; they are autonomous, intelligent entities capable of transforming industries and enabling true decentralisation. In the world of cryptocurrency, they have the potential to serve as the backbone of decentralised projects, driving innovation and ensuring long-term sustainability.

But realising this vision will require a collective effort. Developers must prioritise transparency and ethics, while communities must embrace the potential of AI agents to drive meaningful change. Most importantly, we need to move beyond the narrow definitions and misconceptions that currently dominate the conversation and recognise the true potential of AI agents as enablers of a decentralised future.

As someone who has long believed in the ideals of Web4 and true decentralisation, I am optimistic about the future of AI agents. They represent not just the next wave of technology, but a fundamental shift in how we interact with the digital world. The journey will not be without its challenges, but the destination—a world where technology empowers individuals and communities—is well worth the effort. Let’s embrace this new wave with open minds and a commitment to building a better, more decentralised future.

 

Source: https://ciosea.economictimes.indiatimes.com/amp/blog/the-next-wave-of-ai-agents-a-step-towards-true-decentralisation-and-web4/117190829

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- “NFT: From Zero to Hero” and “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”.

www.anndy.com
j j j

Riding the Wave: The Unprecedented Growth of Cryptos in Nigeria

Riding the Wave: The Unprecedented Growth of Cryptos in Nigeria

Nigeria is a country with a population of over 200 million people, and a GDP of about $477 billion. It is also a country with a high level of inflation, currency devaluation, poverty, unemployment, corruption, and political instability. These factors have created a fertile ground for the adoption of cryptocurrencies, which offer an alternative way of storing and transferring value, as well as accessing financial services and opportunities.

Nigeria had the highest proportion of cryptocurrency users in the world, with 32% of the respondents saying they used or owned cryptocurrencies. From July 2022 to June 2023, Nigeria witnessed a 9% year-over-year growth in cryptocurrency transactions, amounting to $56.7 billion. A study also found that even in 2023, about 35% of Nigerians aged 18 to 60 were actively trading or investing in Bitcoin and other cryptocurrencies. In 2023, Nigeria witnessed a 9% year-over-year growth in cryptocurrency transactions, reaching a total of $56.7 billion. This made Nigeria one of the-largest market for cryptocurrency trading in the world.

But what are the reasons behind this remarkable growth? And what are the implications for Nigeria’s economy and society? I will try to answer these questions, and provide my personal perspective on the current state and future prospects of Nigeria’s crypto usage.

The Drivers of Crypto Adoption in Nigeria

There are several factors that have contributed to the increasing popularity and adoption of cryptocurrencies in Nigeria. Some of the most important ones are:

  • The need for a hedge against inflation and currency devaluation. Nigeria has been suffering from high inflation rates, which reached to an 18-year high of 25.8% in August. The naira, Nigeria’s currency, has also been losing value against the US dollar, weakened by 23% to 1,099 naira per dollar basing on last week’s figure. This means that Nigerians have been losing their purchasing power and savings, and have been looking for ways to preserve and increase their wealth. Cryptocurrencies, especially bitcoin, have been seen as a viable option, as they are scarce, decentralized, and independent of any government or central authority.
  • The need for financial inclusion and empowerment. Nigeria has a large unbanked and underbanked population. According to KMPG, a third of Nigerians have low financial capability, less than 30% of adult. Nigerians have or use products or services from non-bank formal financial. This means that millions of Nigerians are excluded from the benefits of the modern financial system, such as saving, borrowing, investing, and remitting money. Cryptocurrencies, on the other hand, offer a low-cost, fast, and accessible way of participating in the global digital economy, without the need for intermediaries, identification, or regulation. Cryptocurrencies also enable Nigerians to access new sources of income and wealth creation, such as trading, mining, staking, lending, and earning interest on their crypto assets.
  • The need for freedom and privacy. Nigeria has a history of political and social unrest, as well as corruption and human rights violations. Many Nigerians have been dissatisfied with the government’s policies and actions, especially regarding the management of the economy, the security situation, and the response to the COVID-19 pandemic. In October 2020, Nigeria witnessed a wave of protests against police brutality, known as the #EndSARS movement, which was met with violent repression and censorship by the authorities. Cryptocurrencies have been used by Nigerians as a way of expressing their dissent, supporting the protesters, and circumventing the government’s control and surveillance. Cryptocurrencies also offer a degree of anonymity and privacy, which can protect Nigerians from identity theft, fraud, and harassment.

The Benefits of Crypto Adoption in Nigeria

The adoption of cryptocurrencies in Nigeria has brought several benefits to the country and its people. Some of the most notable ones are:

  • Economic growth and innovation. Cryptocurrencies have created new opportunities for entrepreneurship, employment, and education in Nigeria. According to a report by Chainalysis, Nigeria ranked second in the world in terms of crypto adoption. This means that Nigeria has a vibrant and dynamic crypto ecosystem, with many startups, platforms, and communities that are developing and providing crypto-related products and services. Cryptocurrencies have also attracted foreign investment and talent to Nigeria, as well as boosted the country’s reputation as a leader and hub for blockchain and crypto in Africa.
  • Financial inclusion and empowerment. Cryptocurrencies have enabled millions of Nigerians to access and benefit from the global digital economy, without the barriers and limitations of the traditional financial system. Cryptocurrencies have also increased the financial literacy and awareness of Nigerians, as well as their financial autonomy and sovereignty. Cryptocurrencies have also fostered a culture of saving, investing, and wealth creation among Nigerians, especially the youth, who make up more than 50% of the population.
  • Social impact and change. Cryptocurrencies have been used by Nigerians as a tool for social good and change, as well as a means of expression and resistance. Cryptocurrencies have supported various causes and initiatives, such as the #EndSARS movement, the Feminist Coalition, the Nigerian Red Cross, and the Binance Charity Foundation. Cryptocurrencies have also enabled Nigerians to voice their opinions and demands, as well as to challenge the status quo and the authorities. Cryptocurrencies have also fostered a sense of community and solidarity among Nigerians, as well as a spirit of innovation and optimism.

The Challenges and Risks of Crypto Adoption in Nigeria

Despite the benefits and opportunities that cryptocurrencies offer, there are also several challenges and risks that Nigeria faces as a result of its crypto usage. Some of the most significant ones are:

  • Regulatory uncertainty and hostility. The Nigerian government and central bank have been ambivalent and hostile towards cryptocurrencies, often issuing warnings, bans, and restrictions on crypto-related activities. In February 2021, the Central Bank of Nigeria (CBN) issued a circular that prohibited banks and other financial institutions from facilitating or providing services to crypto exchanges and users. This caused a disruption and panic in the crypto market, as well as a backlash from the crypto community and the public. The CBN later clarified that it did not ban cryptocurrencies, but only reiterated its 2017 directive that regulated entities should not deal with them. However, the CBN also stated that it was working on a regulatory framework for cryptocurrencies, which could either facilitate or hinder their adoption in the future. (In the latest update, CBN lifted the banking ban on virtual asset service providers that had been in place since February 2021. But banks and other financial institutions are still prohibited from holding, trading or transacting virtual currencies on their own accounts.)
  • Security and fraud issues. The crypto market is still largely unregulated and unsecured, which exposes Nigerians to various risks and threats, such as hacking, phishing, scamming, and theft. Many Nigerians have fallen victim to fraudulent schemes and platforms, such as Ponzi schemes, fake giveaways, and impersonations, that promise high returns or rewards in exchange for crypto deposits or payments. Many Nigerians have also lost their crypto assets due to negligence, ignorance, or lack of proper security measures, such as using weak passwords, storing private keys online, or trusting third parties with their funds.
  • Volatility and complexity. The crypto market is known for its high volatility and complexity, which can pose challenges and difficulties for Nigerians, especially those who are new or inexperienced in the crypto space. The prices of cryptocurrencies can fluctuate significantly and unpredictably, depending on various factors, such as supply and demand, market sentiment, news and events, and technical analysis. This can result in huge profits or losses for Nigerians, depending on their timing, strategy, and risk appetite. The crypto market is also complex and diverse, with thousands of different cryptocurrencies, each with its own features, functions, and use cases. This can create confusion and overwhelm for Nigerians, who may not have the necessary knowledge, skills, or resources to navigate and understand the crypto market.

The Future of Crypto Adoption in Nigeria

The future of crypto adoption in Nigeria is uncertain and unpredictable, as it depends on various factors, such as the regulatory environment, the security and innovation of the crypto market, the economic and social conditions of the country, and the preferences and behaviors of the Nigerian people. However, based on the current trends and developments, I believe that Nigeria’s crypto usage will continue to grow and evolve, as more Nigerians discover and embrace the benefits and opportunities that cryptocurrencies offer, as well as overcome and mitigate the challenges and risks that they entail.

I believe that Nigeria will remain a global leader and pioneer in crypto adoption, and will play a key role in shaping and influencing the future of blockchain and crypto in Africa and beyond. I believe that cryptocurrencies will become more integrated and mainstream in Nigeria’s economy and society, and will enable Nigerians to achieve greater financial inclusion and empowerment, as well as social impact and change.

I also believe that cryptocurrencies will hold the keys to Nigeria’s economic development and transformation, as they will foster innovation, entrepreneurship, investment, and growth in various sectors and industries, such as agriculture, education, health, energy, and e-commerce. I believe that cryptocurrencies will also help Nigeria to overcome its economic and social challenges, such as inflation, poverty, unemployment, corruption, and instability, and will enhance Nigeria’s sovereignty.

Conclusion

Nigeria’s crypto usage is a phenomenon that reflects the country’s economic and social realities, as well as its aspirations and potentials. Cryptocurrencies have provided Nigerians with a new way of dealing with their challenges and opportunities, as well as a new avenue for expressing their identity and values. Cryptocurrencies have also opened up new possibilities and horizons for Nigeria’s development and transformation, as well as its role and influence in the global arena.

However, Nigeria’s crypto usage is not without its drawbacks and dangers, as it also entails various risks and uncertainties, as well as conflicts and controversies. Nigeria’s crypto usage is also subject to various factors and forces, both internal and external, that can affect its direction and outcome. Therefore, Nigeria’s crypto usage is not a static or deterministic process, but a dynamic and complex one, that requires constant monitoring, evaluation, and adaptation.

As a Nigerian and a crypto enthusiast, I believe that Nigeria’s crypto usage is a positive and progressive trend, that can bring many benefits and opportunities to the country and its people, as well as to the continent and the world. I also believe that Nigeria’s crypto usage is a resilient and adaptable trend, that can overcome and mitigate the challenges and risks that it faces, as well as leverage and optimize the resources and advantages that it has.

 

Source: https://za.investing.com/analysis/riding-the-wave-the-unprecedented-growth-of-cryptos-in-nigeria-200590829

Why has Nigeria experienced significant growth in crypto adoption?

Anndy Lian shared that Nigeria's crypto adoption surge is driven by several factors. High inflation, currency devaluation, and limited financial inclusion have prompted Nigerians to seek alternative avenues for preserving wealth and accessing the global digital economy. Cryptocurrencies, especially Bitcoin, have been seen as a hedge against economic instability due to their scarcity and decentralization, providing a solution for wealth preservation amid economic challenges.

What benefits and opportunities does crypto adoption offer Nigeria?

The adoption of cryptocurrencies in Nigeria has led to economic growth, innovation, and increased financial inclusion. The country's dynamic crypto ecosystem has spurred entrepreneurship and attracted foreign investment, positioning Nigeria as a leader in blockchain and crypto in Africa. Additionally, crypto adoption has empowered millions to access the global digital economy, fostering financial literacy, and creating opportunities for wealth creation, particularly among the youth.

What challenges does Nigeria face in its crypto adoption journey?

As mentioned by Anndy Lian, regulatory uncertainty and hostility pose significant challenges to Nigeria's crypto adoption. The Nigerian government's wavering stance and occasional restrictions on crypto-related activities have created uncertainty in the market, impacting users and causing disruptions. Security concerns, including fraud, hacking, and the market's volatility, also present challenges to Nigerians entering the crypto space.

How do you foresee the future of crypto adoption in Nigeria?

Despite uncertainties, I foresee continued growth in Nigeria's crypto usage. As more Nigerians recognize the benefits and overcome challenges, crypto adoption will likely increase. Nigeria has the potential to lead and shape Africa's crypto landscape, contributing to economic development, financial inclusion, and social impact.

What are the implications of Nigeria's crypto usage on its economic and social landscape?

Nigeria's crypto usage reflects the country's realities, offering potential economic transformation and social change. While presenting opportunities for development and global influence, Nigeria's crypto journey requires continuous monitoring, adaptation, and resolution of challenges to realize its full potential as a progressive force in the crypto space.

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- “NFT: From Zero to Hero” and “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”.

www.anndy.com
j j j

Why regulated decentralized exchanges are the wave of crypto trading’s future

Why regulated decentralized exchanges are the wave of crypto trading’s future

The world of cryptocurrency trading is undergoing a profound metamorphosis, fueled by a growing wave of investors seeking alternatives to the well-established centralized exchanges (CEXs) that have long reigned supreme. These CEXs have traditionally acted as intermediaries, facilitating transactions between buyers and sellers of digital currencies like Bitcoin and Ethereum. While CEXs offer certain advantages such as liquidity, convenience and security, they also carry significant downsides, including hefty fees and privacy concerns as well as susceptibility to hacking and fraud.

Rise of decentralized crypto trading

Crypto’s shifting landscape has propelled decentralized exchanges (DEXs) into the limelight. DEXs are platforms that empower users to engage in direct peer-to-peer trading of crypto assets, eliminating the need for intermediaries. Harnessing the power of blockchain or distributed ledger technology, DEXs introduce a range of advantages over their centralized counterparts, including:

1. Lower fees: DEXs typically impose more favorable fee structures than CEXs, which often burden users with high commissions, spreads and withdrawal charges.

2. Enhanced privacy: Unlike CEXs, which demand personal information and identity verification, DEXs operate with greater privacy, sidestepping anti-money laundering (AML) and know-your-customer (KYC) regulations.

3. Greater control: DEXs empower users by allowing them to maintain full control over their crypto assets and private keys, unlike CEXs that hold users’ funds in their own wallets or custodial services.

4. Fostering innovation: DEXs provide access to a broader spectrum of crypto assets and services, including lending, borrowing, staking, yield farming, non-fungible tokens (NFTs) and more.

Nonetheless, decentralized exchanges grapple with their own set of challenges, such as:

1. Limited liquidity: DEXs often face lower trading volumes and liquidity compared to CEXs, resulting in higher price slippage and longer transaction processing times.

2. Increased complexity: DEXs may require users to possess a higher degree of technical expertise compared to CEXs, potentially discouraging novice or casual traders.

3. Security concerns: DEXs are not immune to cyberattacks or technical glitches, posing risks to the platform’s integrity and the functionality of underlying smart contracts.

4. Regulatory uncertainty: Operating within a legal gray area, DEXs often lack clear definitions or regulations in most jurisdictions, raising questions about their compliance.

The birth of RDEXs

Is it possible to marry the strengths of centralized exchanges and decentralized exchanges? Can we envision a decentralized exchange that adheres to regulatory standards? The answer is affirmative. Enter the regulated decentralized exchange (RDEX). An RDEX allows users to engage in direct crypto asset trading while adhering to relevant laws and regulations in its jurisdiction of operation. It preserves the fundamental tenets of decentralization — transparency, immutability and censorship resistance — while bolstering them with legitimacy, accountability and security.

So, how does an RDEX function? It achieves this delicate balance by incorporating a regulatory framework into its protocol design, employing smart contracts to enforce user and transaction rules and standards. For instance, it may mandate user registration with real identities and source of funds verification before permitting trading. It may also impose limits on trade amounts or frequencies and report transactions to authorities for tax and compliance purposes.

Some of them will adopt a hybrid approach, blending on-chain and off-chain components. By leveraging off-chain service providers for KYC/AML checks and liquidity pools, they maintain decentralization and security through cryptographic proofs, ensuring the honesty and integrity of these services.

Value of RDEXs

Why are RDEXs so vital in the crypto space? It presents a pragmatic solution to one of the crypto industry’s foremost challenges: regulation. As governments and regulators worldwide grow increasingly concerned about the economic and societal implications of crypto activities, regulation becomes inevitable. While constructive regulation can offer clarity, security and recognition, excessive restrictions can stifle innovation and growth.

RDEXs can serve as a bridge between the crypto industry and regulators. They demonstrate that crypto activities can be conducted in a responsible, compliant and transparent manner, preserving decentralization’s core values. By fostering trust among users, investors and authorities, RDEXs mitigate the risks of fraud, manipulation and abuse.

Moreover, RDEXs empower the future of decentralized trading by granting access to a broader array of crypto assets and services. These include the trading of security tokens, which represent real-world assets like stocks, bonds, real estate or art. While security tokens promise to revolutionize the financial industry, their strict regulations demand compliant platforms, which RDEXs can provide.

Central bank digital currencies (CBDCs) are another facet of the crypto landscape that RDEXs can facilitate. CBDCs, digital versions of fiat currencies issued by central banks, promise faster, cheaper and more secure transactions but pose unique challenges for the crypto industry. It can integrate CBDCs with other crypto assets and services, ensuring privacy, interoperability and competition.

RDEXs in action

RDEXs are not just theoretical concepts; they are tangible realities. Projects like eToroX, backed by eToro and licensed by the Gibraltar Financial Services Commission, is an example of the RDEX in action — enabling users to trade crypto assets, including security tokens and stablecoins pegged to fiat currencies while adhering to regulatory frameworks.

Injective Protocol, supported by Binance, another major player in the crypto space, offers a layer-2 DEX built on Ethereum. It facilitates the trading of crypto assets, including derivatives, futures, options and synthetics, and collaborates with central banks on CBDC integration.

Projects like Bitverse, supported by Bybit and the Mantle Network, are pioneering a credit rating system. This system allows users to leverage their crypto assets and reputation to access a range of financial services and products in the Web3 space. Regulators could explore such platforms to verify user creditworthiness, both on and off-chain. (I do not have any ties to any of the projects or companies mentioned in this piece.)

On the horizon

In summary, RDEXs represent a new breed of decentralized exchanges that adhere to regulation. They bridge the gap between the crypto industry and regulators, providing platforms that cater to both sides’ needs. It unlocks access to a broader spectrum of crypto assets and services, empowering the future of decentralized trading.

However, RDEXs are not the final destination of crypto’s evolution. Numerous challenges and questions remain, including those related to interoperability, scalability, security and the ever-growing complexity of crypto assets and services.

Furthermore, the crypto industry continues to dream beyond RDEXs. Web 4.0, the hypothetical next chapter of the internet, hints at an even more immersive, intuitive and intelligent way of interacting with information and value in the most decentralization manner governed by artificial intelligence may be the way forward. While Web4 remains speculative, it underscores the crypto industry’s relentless pursuit of innovation, openness, fairness and decentralization. This concept also works well with RDEXs, where no single person is running the exchange, it is run by codes and AI.

The crypto industry’s evolution is far from over, with more innovative solutions and revolutionary ideas on the horizon, all aimed at shaping a more decentralized future.

 

Source: https://finance.yahoo.com/news/why-regulated-decentralized-exchanges-wave-090100997.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- “NFT: From Zero to Hero” and “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”.

www.anndy.com
j j j