TL;DR
Welcome to the Runway, where we spotlight the latest in crypto, Web3, and tech! In this blog post, inspired by our recent podcast episode, we navigate through a series of compelling topics: the Solana network’s outage and its impact on blockchain stability; Saudi Arabia’s venture with Hedera to boost Web3 development; the rise of AI-generated fake IDs challenging KYC norms; the response of Bitcoin miners to ETF demand; and a US bank’s exit from crypto following regulatory pressures. These discussions provide a snapshot of the evolving digital landscape, highlighting both the advancements and the hurdles faced by the industry.
Salana Slips 2% as Network Suffers Major Outage
Salana suffered a major outage on Tuesday, with the network status page showing the mainnet beta is experiencing performance degradation and block progression currently halted. Core engineers and validators are investigating, according to Lane, a Salana validator. The halt comes nearly a year after the Salana network was down for almost 2 days in April 2023.
• Solana trades off decentralization for speed and throughput. This incident shows the downsides of that approach, as a “decentralized” blockchain has grounded to a halt. Different blockchains make different tradeoffs between scalability, security, and decentralization.
Hedera Secures $250 Million Deal with Saudi Arabia
Saudi Arabia’s Ministry of Investment has partnered with Hedera hashgraph in a $250 million deal to promote advanced technology adoption. Saudi Arabia aims to attract crypto and web3 projects and developers. This contrasts with restrictive policies in the US that are pushing innovators away.
• Saudi Arabia aggressively courting crypto innovation while US policies strangle industry. Global adoption will continue regardless of US policy missteps.
AI-Generated Fake IDs Being Sold to Bypass Exchange KYC
“OnlyFakes” is selling AI-generated fake IDs for as little as $15 to bypass exchange KYC checks. CoinTelegraph reports deepfakes and synthetic media are advancing to the point of duping human reviewers.
• Growing problem of fake credentials and media requires new verification methods. Blockchain certification can authenticate documents and data integrity.
Bitcoin Miners Selling Holdings to Meet ETF Demand
Launch of Bitcoin ETFs directly influenced miner reserves, with over $1B flowing from miners to exchanges in first 48 hours. Miners selling to meet demand and cover electricity, equipment, payroll and other operating costs.
• Healthy indicator that miners distributing coins, not just accumulating. ETFs broadening access and distribution opportunities.
First US Bank to Offer Crypto Exits Industry After OCC Order
Vast Bank, first US bank to offer integrated crypto services, shuttered its crypto app and exited industry after OCC consent order in October 2022.
• Example of “Operation Choke Point 2.0” – unconstitutional government pressure on legal industries. Lack of accountability allows unlawful regulatory overreach.
Decentralized systems prevent such overreach of power and protect economic freedom. The future will bring greater access through technology, despite obstacles placed in the way.
As we navigate these developments, our podcast aims to shed light on the transformative power of technology and digital assets, balancing insightful analysis with forward-looking perspectives. Stay safe, stay blessed, never stop learning, and keep an open mind! Thanks for reading!
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Sources:
- Solana Network Outage
- Saudi Ministry of Investment and Hedera Partnership
- AI-Generated Fake IDs
- MetaMask and Robinhood Integration
- Bitcoin ETFs and Miner Reserves
- BC Hydro and Crypto Mining
- GoDaddy and ENS Partnership
- Coinbase’s Political Engagement
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