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The Importance of Cross-Chain Compatibility

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The potential for blockchain to improve business processes, provide transaction transparency and security in the value chain, and reduce operating costs is obvious to many people. Despite this, the expected mass adoption has not occurred so far. What has the blockchain been insisting on? In recent years, several issues have prevented the widespread use of blockchain. But so far, the most recognized problem is interoperability. Or, to be more precise, lack of it.

Before getting into the interoperability problem, let’s understand why this is even considered a problem. The number of blockchain projects is increasing, partly because developers are constantly innovating new use cases and upgrades to explore the capabilities of the technology. The rapid development of blockchain has given birth to many different types of chains created to perform different functions. But how will these different blockchains communicate with each other is the question? Here interoperability comes into play.

What is cross-chain compatibility?

Cross-chain is the interoperability between two relatively independent blockchains. In other words, it allows blockchains to communicate with each other because they are built in a standardized way. Cross-chain compatibility is mainly represented by asset exchange and asset transfer, which is a very important part of the blockchain world. Using cross chains can avoid the limitations of single chains. 

Why is cross-chain compatibility important? 

In a world where businesses rely on ever-increasing levels of collaboration and interaction, it is easy to understand why blockchain cross-chain compatibility is not only desirable but  important. Interoperability will allow for a smoother information exchange, easier execution of smart contracts, a more user-friendly experience, opportunities to develop partnerships, and the exchange of solutions.

The Key to Mass Adoption: Stability + Cross-chain composability

Where wire transfers take days to transfer money from one country to another, a cryptocurrency is universal and can be transferred quickly and transparently making it an ideal applicant for a global payment solution for the masses. However, the other side of the coin is stability. Cryptocurrency is very volatile which makes it difficult for cryptocurrency payments to become the internet’s currency.Payment token is a payment tool based on blockchain, which aims to achieve the price stability required for end-user payment.

The combination of payment token and cross-chain interoperability has the potential to revolutionize the global payment landscape and emerge as the internet’s currency.

USDR: The Internets’ European Payment layer

USDR, a european payment network, is building a payment solution by combining the next-gen technology and proven practices. USDR’s payment solution aims to solve the problems of the current payment system with a stable and cross-chain technology that can process fast and affordable cross-border transactions with real reserves.

How USDR is disrupting the payment system:

The traditional banking system slows down and discourages international transactions. Floating tokens with compatible acceleration significantly speed up payments and reduce costs.

Most digital assets fluctuate in price and cannot be used for everyday transactions. USDR is pegged to gold to address volatility concerns.

Most of the payment tokens available today do not have reserves close to the value of the circulating tokens. USDR reserves are at least 1:1 and are supported by physical gold from Brothers International GmbH, with an initial reserve of 10 tons equal to 6 times the token issue.

The key features of USDR

– Perfect payment solution: Fast and secure transactions at low fees.

– Cross-chain compatibility: USDR can be used on Ethereum and Binance smart chains. This cross-compatibility allows for wider and more flexible use.

– Swiss Regulation: USDR is a payment token issued in compliance with Swiss laws.

– Fiat exchange: USDR can be purchased and sold with a broad set of fiat currencies.

The quest for the internet’s currency finally comes to an end with the rise of the USDR. USDReserve (USDR) is an international payment token designed to become the internet’s payment currency supported by ten tons of gold at current market prices valued at $600 million.

For more information about USDR, visit https://usdreserve.org/.

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Source: https://btcmanager.com/importance-cross-chain-compatibility/

Blockchain

$45B Asset Manager GoldenTree Has Reportedly Bought Bitcoin

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GoldenTree Asset Management, a US asset management giant with $45B in AUM, has reportedly purchased portions of the primary cryptocurrency. The move aims to diversify some of the organization’s already existing strategies.

  • Founded over two decades ago, GoldenTree is an asset manager headquartered in New York City with offices in numerous other important financial cities such as London, Singapore, Tokyo, and Sydney.
  • According to a report by The Street, the institution has dipped its toes in the cryptocurrency industry by purchasing an undisclosed amount of bitcoin.
  • Citing two sources familiar with the matter, the coverage indicated that putting BTC on the balance sheet will work as a diversifier for the “broad mix of debt-focused strategies it has run for years.”
  • Furthermore, GoldenTree has reportedly had internal discussions to establish a dedicated team responsible for its cryptocurrency investments.
  • With GoldenTree, the number of large asset managers showing an appetite for bitcoin keeps growing.
  • The most prominent name has to be BlackRock. The world’s largest asset manager dabbled with BTC through CME and reported gains of $360,000 in April this year.
  • Stone Ridge, another Wall Street behemoth, filed to add the cryptocurrency to its diversified alternatives funds.
  • This trend expanded outside of the US as well, with the Israeli company – Altshuler Shaham – buying BTC through the Grayscale Bitcoin Trust.
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Source: https://cryptopotato.com/45b-asset-manager-goldentree-has-reportedly-bought-bitcoin/

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“Bad For Bitcoin”: Congressman Warren Davidson Blasts Last-Minute Crypto Tax Insertion In Infrastructure Bill

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Biden's Tax Plan Could be Bullish for Ethereum but Bearish for Bitcoin

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As the U.S. Senate plans to hold a popular vote on the proposed infrastructure bill under which a last-minute cryptocurrency tax law was introduced, some believe that the whole bill is ill-fitted due to its vagueness and could prove colossal to the industry and by large, the U.S. economy.

Privacy Concerns

The law, which seeks to subject players in the crypto space to the same regulatory rules placed on various securities such as stocks has disgruntled some industry players as well as legislators who feel that its language is detrimental to the crypto industry. In essence, the government aims at individuals and institutions not only reporting on gains and losses but also any activity associated with crypto, such as the sale of mining equipment.

Congressman Warren Davidson who coined the cryptocurrency language in the proposed infrastructure bill as “the big bank protection act” particularly believes that if passed, it could spell adverse problems on a big chunk of crypto-related activities that might not even need to be taxed. 

The congressman who is an ardent supporter of bitcoin speaking to Bitcoin magazine added that he was not a fan of governments spying on virtually all individual activities with one’s money, especially using the 16th amendment.

“The government just seeks to know too much about you. It really is not the government’s business as to whether you got paid or you ended up paying somebody, did you buy or sell something, gain or lose money – this extends that logic way beyond just collecting taxes, it collects all kinds of information.”  

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Sloppy Language

Davidson further criticized the language in the 16th amendment now inserted to serve in taxing crypto-related activities, terming it as sloppy, dangerous, and must have been advanced by people who were ignorant about the cryptocurrency industry or by people intending to only destroy it.

“Either this language was skilfully crafted to completely new crypto in America or it was willfully ignorant, I mean you would have to work hard to be that ignorant about how much collateral damage this kind of sloppy language would cause ” he added.

He called on Bitcoiners to raise their voices to their senators on the colossal harm the proposed bill could cause to them, and for the country as it threatened not only financial stability but also innovation.

Jerry Brito, the executive director of Coincentre had also raised alarm over the proposed infrastructure bill seeing that it has a provision that could be very bad for crypto, forcing non-custodial actors including miners to comply with IRS tax reporting obligations. He echoed Davidson’s concerns over the broadness in wording which potentially covers miners and DEXs. 

He was however relieved at the fact that arguably miners and DEXs did not have “customers” as defined in the tax code. He posited that despite the last-minute addition to a must-pass bill, he and other stakeholders were working around the clock to make sure that the bill was not passed in its current form ahead of Wednesday’s vote.

Portman spokesperson however sought to clarify the language on crypto in the infrastructure bill stating that the language did not redefine digital assets or cryptocurrency as security for tax purposes.

“It simply clarifies that any person or entity acting as a broker by facilitating trades for clients and receiving cash must comply with a standard information reporting obligation.” he said.

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Source: https://zycrypto.com/bad-for-bitcoin-congressman-warren-davidson-blasts-last-minute-crypto-tax-insertion-in-infrastructure-bill/

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Ethereum: Are you wrong to expect ‘changes’ from London

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Ethereum is days away from one of the most important system upgrades since its inception. The London hard fork, the implementation of EIP-1559, is expected to completely change the monetary and economic model of Ether and its network.

These changes are expected to take place after the commencement of the hard fork on 4 August. However, there have been other changes too, each of which has transpired over time for the altcoin.

The issue of transaction fees

One of the most discussed changes expected out of EIP-1559 is that ETH’s transaction fees will become relatively stable. Any entity wanting to conduct a transaction on the Ethereum network is required to pay a “gas fee.” The same is to be paid in Ether, to miners, to process these transactions. During the 2020-2021 bull run, these fees skyrocketed.

Source: Ycharts

In fact, according to the attached chart, the transaction fee was as high as $71 at one point. However, that aspect might end up being tackled before the hard fork itself.

Over the past few weeks, the gas fees for ETH transactions have drastically dropped on the charts. Now, many have suggested that this was due to the bearish market.

Source: Spencer Noon

However, a contradictory argument is that DeFi applications are still rampant. UNI and AAVE registered strong on-chain performances over the past few weeks, and major functionality within these assets rely on the utility of Ether. For both June and July, the Ethereum network’s fees were already under the yearly average. Such a healthy fee market allows for a stronger security budget for Ethereum.

Investment and trading are not the only ways to profit from Ethereum anymore

ETH held on Exchanges

Source: Glassnode

A common bullish argument for Ethereum in 2020-2021 was the fact that it registered massive exchange outflows. Here, the inference was that hodlers were taking the asset out of centralized platforms and simply holding their allocation. It might have been true in late 2019 and early 2020, but right now, the playing field has evolved.

According to data, exchange outflows have definitely increased but the key point remains that more and more Ethereum is flowing into smart contracts. Further, ETH users are pursuing other opportunities to earn interest and yields.

The rise of yield farming and interest lending platforms has opened new avenues for ETH users. The reason being that they are able to earn capital without depending too much on a bullish or bearish cycle.

Changes are coming but, “change” is already here

The industry is evolving at a break-neck speed and Ethereum is gunning towards its massive upgrade. And yet, users should not be expecting ground-breaking changes. In fact, those who are might as well be ‘wrong’ to some extent.

Over the past few weeks, Ethereum has already been incorporating changes that may define its functionality and usage going forward.

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Source: https://ambcrypto.com/ethereum-are-you-wrong-to-expect-changes-from-london

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