Tech News

Mass Adoption

Deep Dive

### **Introducing GOAT Network: The Future of Bitcoin Layer 2 Solutions**

ZKM is set to launch a groundbreaking Bitcoin Layer 2 solution called GOAT Network later this quarter. This innovative network aims to be the first decentralized Bitcoin Layer 2 that shares network ownership, marking a significant step forward in the crypto world.


### **Decentralized Ownership and Participation**

GOAT Network uses a decentralized sequencer model, where operators secure the network and earn yields on their Bitcoin. This model fosters a more community-driven approach, allowing even small BTC holders to stake their Bitcoin and earn yields. Such inclusivity opens up opportunities for everyone to participate and benefit, not just large investors.


### **EVM Compatibility for Enhanced Functionality**

One of the standout features of GOAT Network is its EVM compatibility, which allows for smart contract functionality. Unlike Bitcoin's Lightning Network, this compatibility enables more complex and versatile applications, significantly expanding what users can do on the network.


### **Multiple Yield Sources**

Participants on GOAT Network can earn yields from several sources:

- Gas fees in BTC
- Mining rewards in GOAT tokens
- Returns from staked BTC (stBTC)

As the team stated, "stBTC is a receipt token that users will receive after staking their BTC on GOAT Network. That stBTC receipt token can then be used to unlock more yield opportunities within the GOAT Network ecosystem."


### **Initial Dapps for Maximum Utility**

At launch, GOAT Network plans to offer several decentralized applications, including:

- Decentralized Exchange (DEX)
- Borrowing and Lending Platforms
- Perpetual Swap Platforms

These dapps will provide a comprehensive suite of financial services for Bitcoin-native assets, further expanding the Web3 ecosystem.


### **A Vision for a Universal Layer 2**

GOAT Network aims to be a "Universal Layer 2," starting with Bitcoin and later integrating other blockchains. This vision seeks to unify fragmented liquidity and enhance interoperability across the blockchain landscape.


### **Seamless Interoperability with Entangled Rollup Technology**

To achieve seamless interoperability across different blockchains, GOAT Network uses ZKM's Entangled Rollup technology. This ensures secure and efficient interactions between networks, eliminating the need for vulnerable third-party bridges.


### **Conclusion**

GOAT Network is poised to revolutionize the Bitcoin ecosystem by introducing a decentralized, inclusive, and feature-rich Layer 2 solution. With the ability to stake BTC, earn yields, and use smart contracts, GOAT Network offers new ways to maximize the potential of Bitcoin and beyond. Stay tuned for its launch later this quarter and get ready to witness this exciting new chapter in the world of cryptocurrency!


**Please be aware that the information provided is for informational purposes only and should not be construed as financial advice. Always conduct your own research and consult with a professional financial advisor before making any investment decisions.*

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Introducing GOAT Network

2024 has been a standout year for the cryptocurrency market. Bitcoin (BTC) reached an unprecedented $100k, while Ethereum (ETH) climbed past $4k, setting new benchmarks for the industry.

In parallel, a series of compelling narratives have unfolded. The rapid rise of memecoins, advancements in AI, the tokenization of real-world assets (RWA), the ongoing expansion of GameFi, and innovations in decentralized physical infrastructure (dePIN) have energized the market and opened new possibilities.

Looking forward, VanEck—a globally recognized investment management firm—[shared its predictions for 2025](https://www.vaneck.com/us/en/blogs/digital-assets/matthew-sigel-vanecks-10-crypto-predictions-for-2025), providing insights into how these trends may evolve in the years ahead. Let’s take a closer look at some of them.

### **Market Momentum**

VanEck predicts that this bull market will continue in 2025, with the first peak occurring in Q1. At the height of this cycle, according to the estimation, Bitcoin (BTC) will be priced at around $180,000, while Ethereum (ETH) could exceed $6,000. Notable projects like Solana (SOL) and Sui (SUI) might surpass $500 and $10, respectively.

After this initial peak, Bitcoin might experience a 30% drop, with altcoins potentially facing steeper declines of up to 60% as the market undergoes a summer consolidation. However, VanEck anticipates a rebound in the fall, with major cryptocurrencies regaining their momentum and reaching previous all-time highs by year-end.

### **AI Agents**

VanEck also foresees a significant rise in the on-chain activity of AI agents, predicting that their numbers will exceed 1 million by 2025. These specialized bots are designed to optimize outcomes such as "maximizing yield" in DeFi or "enhancing engagement" on platforms like X/Twitter by autonomously refining their strategies.

Currently, platforms like Virtuals empower users—even those without technical expertise—to create AI agents for on-chain tasks. By tapping into decentralized contributors, including fine-tuners, dataset providers, and model developers, creators can build and lease AI agents to generate income. This accessibility will fuel a rapid increase in agent deployment.

While DeFi remains a central focus for AI agents, their utility is expanding into areas such as social media, gaming, and consumer applications. These agents can serve as influencers, interactive gaming characters, or digital companions. Some, like Bixby and Terminal of Truths, have already gained significant traction, amassing 92k and 197k followers on X/Twitter, respectively.

### **Bitcoin L2s**

Another crucial development that could reshape the crypto ecosystem is the rise of Bitcoin layer-2 (L2) blockchains. These solutions are designed to scale Bitcoin more efficiently and open up new opportunities for its use cases. By enhancing Bitcoin’s transaction throughput and reducing latency, Bitcoin L2s are addressing the network’s existing limitations while adding new capabilities, such as smart contract functionality, which can drive a dynamic DeFi ecosystem centered around Bitcoin.

At present, Bitcoin can be transferred from the Bitcoin blockchain to smart contract platforms via bridged or wrapped BTC, which depend on third-party systems that are susceptible to hacks and security issues. Bitcoin L2 solutions aim to mitigate these risks by providing frameworks that connect directly with Bitcoin's base layer, reducing the need for centralized intermediaries. While challenges related to liquidity and user adoption persist, Bitcoin L2s offer the promise of enhanced security and decentralization, instilling greater confidence in BTC holders to engage actively with their Bitcoin in decentralized ecosystems.

The growth of Bitcoin L2s reflects increasing demand from BTC holders seeking to generate yield and expand the utility of their assets. As Bitcoin L2s and chain abstraction technology evolve into accessible tools, they will significantly strengthen Bitcoin’s position in the broader DeFi space. Platforms like Ika on Sui and Infinex on Near demonstrate how multi-chain solutions can enhance Bitcoin's interoperability with other ecosystems.

By facilitating secure and efficient on-chain borrowing, lending, and other permissionless DeFi solutions, Bitcoin L2s and abstraction technology will convert Bitcoin from a mere passive store of value to an active player in decentralized ecosystems. As adoption increases, these technologies will unlock significant opportunities for on-chain liquidity, cross-chain innovation, and a more interconnected financial future.

### **DeFi and NFTs**

Despite significant trading activity on decentralized exchanges (DEXs)—with volumes surpassing centralized exchanges (CEXs) in some cases—the total value locked (TVL) in decentralized finance (DeFi) remains 24% below its peak. VanEck predicts that DEX trading volumes will exceed $4 trillion by 2025, capturing 20% of CEX's spot trading volumes. This growth will be driven by the rise of AI-related tokens and consumer-facing decentralized applications (dApps).

The introduction of tokenized securities and high-value assets will further propel DeFi’s expansion, adding new liquidity and enhancing its utility. As a result, the DeFi TVL is expected to recover to over $200 billion by year-end, reflecting growing demand for decentralized financial infrastructure in an evolving digital economy.

The NFT market, heavily impacted by the 2022–2023 bear market, has seen trading volumes decline by 39% since 2023 and an even steeper 84% drop since 2022. While fungible token prices have rebounded in 2024, NFTs have lagged in price and activity until a notable turnaround in November. However, certain projects have demonstrated resilience by building strong community connections and creating lasting value.

For instance, Pudgy Penguins have transformed into a consumer brand with collectible toys, while Miladys have gained cultural relevance in internet subcultures. The Bored Ape Yacht Club (BAYC) continues to grow as a prominent cultural entity, attracting attention from brands, celebrities, and mainstream media.

As crypto wealth recovers, VanEck expects affluent users to diversify into NFTs, viewing them not just as speculative assets but as investments with lasting cultural and historical importance. According to VanEck, established collections like CryptoPunks and BAYC could see benefits from this shift, despite significant drops from their all-time highs—down around 90% and 66%, respectively. Other projects, such as Pudgy Penguins and Miladys, have already surpassed their previous price records.

Ethereum remains the dominant blockchain for NFTs, hosting the majority of leading collections. In 2024, Ethereum accounts for 71% of NFT trading, a share that is projected to grow to 85% by 2025. This dominance is further reflected in market capitalization rankings, where Ethereum-based NFTs hold the top positions, underscoring its central role in the NFT ecosystem.

Although NFT trading volumes may not reach the euphoric heights of previous cycles, VanEck believes a sustainable market with annual turnover of $30 billion—roughly 55% of the 2021 peak—is within reach. This shift toward sustainability and cultural significance, rather than speculative frenzy, will shape the future of the NFT space.

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Crypto in 2025

By 2140, all 21 million bitcoins will have been fully mined. After that point, no new bitcoins will be created, and miners will no longer receive rewards from newly mined coins. 

Currently, miners are crucial to maintaining the Bitcoin network, and a large share of their incentive comes from these block rewards. However, once the supply cap is reached, a critical question arises: What will happen to the Bitcoin network when all bitcoins are mined? Without the creation of new coins, what will drive miners to continue supporting and securing the network?

In today’s article, we’ll explore what the Bitcoin network might look like once all bitcoins have been mined and how miners could continue to be incentivized to maintain the system.

### **Bitcoin Scarcity**

Bitcoin is unique because it has absolute mathematical scarcity, meaning there will only ever be 21 million bitcoins in existence, a limit that can be verified by anyone in the network. This scarcity is governed by Bitcoin's source code, known as Bitcoin Core, which rewards miners with new bitcoins when they successfully create a block.

The reward miners receive for adding a block is halved approximately every four years in an event known as the "halving." The reward started at 50 bitcoins per block, dropped to 25 bitcoins in late 2012, and further reduced to 6.25 bitcoins in 2020. The most recent halving, which occurred on 20 April 2024 at 12:09 AM UTC (with block number 840,000), reduced the block reward to 3.125 bitcoins. This will continue until around the year 2140, at which point no new bitcoins will be generated, as the issuance will decrease from one satoshi per block to none.

Although the total supply of Bitcoin is capped at 21 million, the actual number of bitcoins in circulation is likely to be significantly lower. This is because many bitcoins may become inaccessible over time due to reasons such as users losing their private keys or passing away without sharing their wallet details. In fact, a 2020 study by crypto forensics firm Chainalysis estimated that up to 20% of the bitcoins that have been issued may be permanently lost, further reducing the available supply.

### **Bitcoin Deflationary Concerns and Economic Impact**

While the halving strengthens Bitcoin’s scarcity, it also brings challenges for miners, whose earnings are reduced by half during each event. This decline in profitability may force some miners to exit the market, potentially impacting Bitcoin’s security. Critics worry that a reduced number of miners could weaken the network's resilience and negatively affect the value of Bitcoin, particularly as the system becomes increasingly reliant on transaction fees.

Bitcoin's deflationary nature also raises questions about its ability to function as a global currency. With its inflation rate halving every four years, Bitcoin becomes progressively scarcer. Economists argue that this deflationary trend might limit its use in retail transactions due to high prices and potential hoarding behaviors. However, Bitcoin’s divisibility into 100 million smaller units, known as satoshis, ensures that even small fractions can retain purchasing power, providing a buffer against concerns of scarcity.

This deflationary characteristic becomes even more pronounced as Bitcoin's price rises, influencing user behavior and shifting priorities from immediate spending to long-term holding for value appreciation. Critics often argue that such a shift could stifle economic activity, as individuals may delay purchases in anticipation of further price increases. However, this perspective overlooks the adaptability of markets and the diverse ways people use money. While Bitcoin might encourage saving over instant consumption, it doesn’t eliminate spending altogether. Instead, it encourages individuals to prioritize meaningful and well-considered purchases. Proponents of Bitcoin believe this approach aligns with its role as a store of value, fostering a culture of financial discipline and long-term planning that benefits both individuals and the broader economy.

### **Miners’ Motivation**

As Bitcoin moves toward its supply cap over the coming century, miners are expected to adapt by shifting from block rewards to transaction fees as their primary revenue source. Already, transaction fees have shown significant potential, as demonstrated on April 20, 2024, when they surpassed block rewards, accounting for over 75% of miner earnings during a surge in network activity. With continued adoption and increasing transaction volumes, these fees are likely to provide a sustainable income stream for miners, ensuring the ongoing security and stability of the network beyond the year 2140.

Bitcoin’s finite supply could further solidify its role as a store of value, driving demand and leading to higher transaction fees as users compete for processing priority. This economic shift is expected to support mining profitability, even without new coin issuance, as higher fees compensate for the eventual disappearance of block rewards.

Additionally, ongoing integration of advanced technologies, such as renewable energy and artificial intelligence, could help reduce operational costs and improve mining efficiency. Innovations like repurposing excess mining heat for industrial or residential use could create secondary revenue streams, further reinforcing the economic viability of Bitcoin mining.

Ultimately, Bitcoin’s adaptability, along with the ingenuity of its mining community, suggests that the network will remain secure and sustainable as it transitions to a transaction fee-based model after 2140. This shift demonstrates the resilience of the Bitcoin ecosystem, ensuring its long-term success even after the final coin is mined.

### **Conclusion**

Once Bitcoin reaches its supply cap and the final coin is mined, the network will undergo a major transformation. While the end of block rewards might seem like a challenge for miners, transaction fees are poised to become the primary source of revenue, providing a sustainable model for network security. With growing adoption, increasing transaction volumes, and Bitcoin's finite supply driving demand, the economics of Bitcoin mining are likely to remain strong even after 2140.

Technological innovations and efficiency improvements, such as the use of renewable energy and AI, could further support miners, ensuring their continued participation in securing the network. As Bitcoin solidifies its role as a store of value, it may become less reliant on inflationary mechanisms, fostering a more resilient and secure network. Ultimately, the combination of Bitcoin's adaptability and the ingenuity of its mining community will ensure its sustainability for generations to come.

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What Happens When the Last Coin Is Mined?

Bitcoin’s Big Question

In the world of cryptocurrencies, staking has emerged as a popular way to earn passive income. Originally created as an alternative to traditional mining, staking allows users to lock up their digital assets to help secure a blockchain and earn rewards in return. Unlike mining, staking requires far less energy, making it a more sustainable option for supporting blockchain networks. This approach has become a go-to option for those interested in passive income through crypto.

### **What Is Staking?**

In essence, staking is the process of locking up cryptocurrency to support the operations and security of a blockchain network. It is mainly associated with networks that use the Proof of Stake (PoS) model. By committing your assets, you help validate transactions and maintain the integrity of the network. In return for your contribution, you earn rewards, typically paid out in the same cryptocurrency you’ve staked. This creates a win-win situation where you can earn passive income while actively supporting the growth and stability of the blockchain ecosystem.

If you’re interested in staking, the first step is to choose a cryptocurrency that supports this mechanism, such as Ethereum, Avalanche, or Solana. Next, you’ll need to set up a compatible wallet to securely store your assets. Once your wallet is ready, you can purchase the cryptocurrency you wish to stake and transfer it to your wallet. Afterward, you’ll select a staking platform or a validator—an entity that manages the staking process for you. By delegating your assets to a validator, you can start earning rewards effortlessly. The process is typically straightforward, allowing you to watch your rewards grow as you contribute to the network’s health.

### **Recent Examples of Staking Returns**

A [recent CoinGecko report](https://www.coingecko.com/research/publications/staking-yields-across-blockchains) looks at staking yields and participation rates in leading PoS blockchains among the top 50 cryptocurrencies. The study used data from [Staking Rewards](https://www.stakingrewards.com/) to analyze staking yields and the percentage of each token’s supply that is staked. This information highlights the participation levels and returns of various networks, showcasing staking as an appealing way for crypto holders to earn income.

Here are some key findings on staking yields and participation rates:

- **Cosmos (ATOM)**: Offers a yield of up to **18.5%** with a staking ratio of **59%**, equivalent to about 248.8 million ATOM valued at $1.2 billion, making it a top choice for high returns.
- **Polkadot (DOT)**: Provides yields of **up to 11.5%** and has a staking ratio of **56%**, with a total staked volume of 853.2 million DOT worth $3.7 billion, appealing for those seeking significant rewards.
- **Avalanche (AVAX)**: Delivers yields of **7-8%** with a staking ratio of **58%**, involving 234.1 million AVAX valued at $7.2 billion, attracting a robust staking community.
- **Aptos (APT)**: A newer Layer-1 blockchain offering a yield of **7.0%** and a staking ratio of **78%**, showcasing its growing appeal among stakers.
- **Solana (SOL)**: Offers yields of **6-7%** with a staking ratio of **67%**, translating to about 393.6 million SOL worth $65.2 billion, though network reliability concerns persist.
- **Ethereum (ETH)**: The largest PoS blockchain, with a yield of **around 3.0%** and a staking ratio of **28%**, reflecting a stable choice valued at approximately $89.4 billion.

![image_2024-11-04_12-42-52.png](/uploads/image_2024_11_04_12_42_52_8d9de1151d.png)

These examples highlight the diverse options within the staking landscape, each offering unique rewards and opportunities. The report emphasizes that staking yields can be shaped by network design, token supply dynamics, and security priorities, contributing to variations in staking returns across different chains.

### **Pros and Cons of Staking**

Staking offers several key benefits, alongside certain risks that participants should be aware of:

**Pros:**

- **Passive Income:** Staking provides an avenue to earn returns without needing to trade or actively manage investments.
- **Network Support:** Stakers contribute to the security and stability of PoS networks, helping to validate transactions and prevent malicious activities.

**Cons:**

- **Lock-up Periods:** Many staking networks require assets to be locked up for a set period, during which they cannot be withdrawn or traded. This can be a drawback if users need liquidity.
- **Market Volatility:** As with any cryptocurrency investment, staking is subject to the market's volatility. The value of staked assets can fluctuate, impacting the overall returns.

With this in mind, it’s important to consider both the benefits and drawbacks before diving into staking. While it can be a solid way to earn passive income, being aware of the associated risks is essential.

### **Final Thoughts**

Summing up, staking presents a compelling opportunity for crypto holders to earn passive income while contributing to the stability and security of blockchain networks. While we've highlighted a selection of cryptocurrencies with notable yields, it's important to remember that there are many more options available, some of which can offer outstanding returns. However, in this dynamic landscape, it's crucial to be aware of potential pitfalls, including unfair players and misleading information. Doing your own research and understanding the risks involved will empower you to make informed decisions that enhance your crypto journey and potentially maximize your returns.

Exploring Crypto Staking

Currently, professionals from both the cryptocurrency and traditional finance sectors are working together to extend the advantages of digital assets to conventional assets through the emerging field of asset tokenization. Fundamentally, asset tokenization involves recording ownership of traditional assets on blockchains. Asset tokenization has the potential to not only streamline transactions but also to provide broader access to certain types of investment opportunities and introduce increased liquidity to traditionally illiquid asset categories such as real estate and art. In this article, we will provide a comprehensive overview of the present status of asset tokenization and its operational mechanisms.

The digitization of real-world assets (RWAs) is one of the most captivating uses of blockchain technology, transforming our perception and interaction with various forms of value. A diverse range of tangible and intangible assets, including art, collectibles, real estate, stocks, commodities, and even personal data, can now be digitally represented on-chain through token issuance.

This groundbreaking process unlocks innovative approaches for transferring ownership, sharing revenue streams, and enhancing liquidity for assets that were previously illiquid or non-marketable. The potential for tokenization to revolutionize traditional asset classes and financial markets is substantial, bridging the divide between the physical and digital realms.

### **What are Real-World Assets in Crypto**

The term "Real-World Assets" (RWAs) refers to a diverse category of assets — whether physical, digital, or data-driven — that derive their value from existing outside the blockchain. Through tokenization, these assets can be transformed into digital representations on the blockchain, unlocking new possibilities for ownership, trading, and investment.

Stablecoins represent the earliest example of real-world assets in the crypto space, backed by fiat currencies like the US dollar or euro to provide a stable, liquid alternative to traditional currency. However, tokenization’s potential extends far beyond just currency, covering a wide range of assets, such as:

- **Financial assets**: Stocks, securities, insurance, treasuries, equities, and indices.
- **Physical assets**: Real estate, precious metals, raw materials, agricultural products, and intellectual property like artwork and music licensing.
- **Digital assets**: Data sets, intellectual property, and digital content rights.

### **Tokenization of RWAs**

Tokenizing assets involves converting rights to a physical or digital asset into a digital token on a blockchain. The tokenization process can yield either fungible tokens for easy exchange or non-fungible tokens (NFTs) that each represent unique assets. The type of token minted is typically determined by the nature of the asset and the intended use case. Asset tokenization is the process of recording the rights to a given asset into a digital token that can be held, sold, and traded on a blockchain.

The resulting tokens represent a stake of ownership in the underlying asset. Virtually any asset, whether physical like real estate or intangible like stock in a corporation, can theoretically be tokenized. Converting these assets into digital tokens makes them more easily divisible, allowing for fractional ownership, which enables more people to invest and can make the markets for those assets more liquid. Asset tokenization can also facilitate direct, peer-to-peer trading of traditional assets that currently require intermediaries and can bring greater security and transparency to the marketplace.

### **Pros of RWA Tokenization**

Tokenized real-world assets offer numerous benefits, including:

- **Liquidity.** Tokenized RWAs facilitate increased market liquidity for traditionally illiquid assets by establishing globally accessible liquidity conditions.
- **Transparency.** The representation of tokenized assets on-chain ensures transparency and auditable asset management, thereby reducing overall systemic risks and providing a more accurate determination of leverage and risk in the entire system.
- **Accessibility.** Through blockchain-based applications, tokenized RWAs can expand the potential user base of certain asset types and allow a broader set of users to access assets that would otherwise be unavailable to them through fractional ownership.

### **Challenges**

However, the tokenization comes with a number of challenges. Some of them include:

- **Legal recognition**. Tokenized asset ownership and digital ownership rights may not be acknowledged by existing legal systems, potentially causing issues with enforcing ownership or transferring rights. The laws and regulations governing tokenized assets are uncertain and evolving rapidly. It can be difficult to understand and comply with applicable laws. For instance, tokenized assets may not qualify for the same protections typically associated with traditional financial securities investment.
- **Incompatibility with traditional systems**. The integration of tokenized assets with current financial and legal systems can be difficult or even impossible.
- **Complexity**. Asset tokenization is intricate, which could result in steep learning curves or barriers to entry for many market participants. Robust storage solutions are required for securely holding and managing tokenized assets. Tokens may be lost, stolen, or mismanaged.

### **Summary**
The tokenization of real-world assets presents a significant opportunity to reshape finance into a more secure, transparent, and efficient backend infrastructure. This transformation can address conflicts of interest and risk management challenges prevalent in traditional financial systems.

While obstacles to RWA tokenization exist, the potential for widespread adoption remains promising. Achieving broad acceptance will require a delicate balance, but the opportunity for success is clear. By carefully planning RWA infrastructure, maintaining a focused vision, and making determined efforts to overcome past challenges, the journey ahead holds immense promise.

Unlocking New Opportunities Through Blockchain Technology

Tokenization of Real-World Assets

Google Cloud has introduced a Blockchain Remote Procedure Call (RPC) service to simplify the interaction of crypto developers with blockchain data and enhance the stability of decentralized applications (dApps).

The initial compatibility of the new service will be with the Ethereum mainnet and testnet, and there are plans to expand to additional blockchains next year.

The Google Cloud’s Blockchain RPC service is launching with an initial free tier that provides up to 100 call requests per second and one million requests per day, supporting a defined set of RPC methods for Ethereum nodes.

### **What is RPC**

RPC, which stands for Remote Procedure Call, is a software communication protocol used to request a service from another program located on a different computer and network.

The Blockchain RPC service is designed to meet the needs of developers at various organizations, from startups looking for an easy entry point to blockchain to large enterprises requiring the reliability, security, and performance offered by Google Cloud’s infrastructure.

During unusually high network activity or transaction volumes, blockchain networks often encounter RPC issues.

### **Challenges with Current Blockchain RPC Providers**

Google Cloud highlighted the ongoing challenge of RPC reliability for many crypto developers, as even slight delays or errors can impact the performance of decentralized applications that require the capability to clear and settle transactions instantly.

Google Cloud's connective RPC service addresses the key issue of RPC reliability for developers, simplifying the process by offering a scalable solution for interacting with blockchain data.

The free tier of the service makes it accessible to startups and larger companies and supports ETH's standard JSON-RPC, facilitating easy integration with developers' applications. The service's straightforward setup reduces the complexities of working with blockchain data.

As Google Cloud plans to add support for more smart contracts, the service will become even more appealing to developers.

### **Key Features of Google Cloud's Blockchain RPC**

- **Enterprise-grade reliability:** The service leverages Google Cloud infrastructure to provide security and reliability, helping to ensure a dependable foundation for developers' applications.
- **Cost-effectiveness:** Blockchain RPC offers an economical alternative to dedicated nodes, providing up to 100 requests per second and 1 million requests per day in the free tier.
- **Compatibility:** Developers can easily transition from existing RPC providers by simply changing their RPC endpoints.
- **Scalability:** The service scales to handle growing request volumes, eliminating the need for manual scaling.

### **Google’s Future Plans**

In addition to Ethereum, Google Cloud intends to expand the Blockchain RPC service to more chains next year, enabling creators to use the service across different platforms. The service is currently available globally, allowing individuals to explore its features through the free tier.

This launch demonstrates Google Cloud's increasing interest in blockchain advancement and its commitment to helping developers build better dApps. Earlier this year, the company introduced a Web3 portal with resources to support blockchain. By expanding its blockchain tools, Google Cloud continues to support developers in the growing Web3 space, making dApp development easier by offering reliable infrastructure and reducing the need to manage node structures.

### **The Role of Big Tech in Blockchain Growth**

As we see more large tech corporations like Google, Microsoft, and Sony getting involved and expanding their activity in the blockchain space, their presence is undeniably strengthening the industry overall and laying the groundwork for further waves of mass adoption. 

However, this growing influence also brings concerns about centralization and a potential shift towards a cloud-based economy, as these companies could dominate infrastructure and services, moving away from blockchain's decentralized roots. The increased reliance on cloud-based solutions may alter the dynamics of blockchain development, with more developers turning to centralized infrastructure rather than self-hosted or decentralized options.

The ideal scenario for the industry might involve a balance of enterprise-grade reliability, affordability, and scalability, while preserving decentralization. Such an approach could help ensure that blockchain technology remains accessible and secure, supporting innovation without compromising its foundational principles.

We'll continue to explore this evolving landscape — stay tuned for more insights!

Google Cloud Expands Web3 Services

TON (The Open Network) and Pyth Network have recently announced a partnership. This collaboration aims to enhance the development of decentralized applications (dApps) on the TON blockchain by integrating Pyth’s advanced data streams. As a result, developers on the TON network will have access to high-quality, real-time pricing information, which is crucial for building innovative dApps.

### **TON and Pyth**

Now, let’s take a closer look at the projects involved. 

**TON (The Open Network)** is a decentralized blockchain platform developed by Telegram to offer high-speed, low-cost transactions and robust scalability. Designed to integrate seamlessly with Telegram’s ecosystem, TON supports a wide range of applications, including decentralized finance (DeFi), gaming, and more, making it a versatile foundation for blockchain development. Throughout the year of 2024, TON has seen a significant increase in users and higher adoption rates. This growth is in large part attributed to the popularity of casual games on the Telegram messaging app. Currently, TON has locked in a total value exceeding $500 million.

**Pyth Network** is a decentralized oracle network that specializes in delivering high-frequency, real-time data feeds to blockchain applications. By aggregating data from multiple sources, Pyth provides accurate and reliable pricing information crucial for various decentralized finance (DeFi) and other blockchain-based applications. While originally designed for the Solana blockchain, now it functions on more than 70 blockchains, including Solana, Ethereum, Optimism, Arbitrum, and Base. It offers market data for various assets such as cryptocurrencies, equities, FX, and commodities.

### **The Partnership and Its Implications**

The partnership is expected to improve various aspects of the TON ecosystem, particularly in decentralized finance (DeFi). The integration of Pyth’s pull oracle data feeds will equip TON developers with essential real-time, institutional-quality price data needed to build innovative decentralized applications (dApps). This collaboration will enable projects within the TON network to offer improved financial services and facilitate lightning-fast transactions, crucial for serving a wide global audience.

Beyond DeFi and gaming, Pyth's data capabilities are expected to attract new Web3 users who demand the same responsiveness they are accustomed to from Web2 services. 

Michael Cahill, CEO of Douro Labs and a core contributor to Pyth, emphasized that TON builders can trust Pyth to support their projects, including those already operational on other chains. This collaboration will bolster TON’s efforts to onboard users into the on-chain space, reinforcing the network's commitment to delivering top-tier services and functionality.

### **TON Ecosystem and New Developments**

This marks a significant step forward in the development of decentralized applications (dApps), promising to deliver enhanced data integration and improved financial services for the TON ecosystem. The changes will help make dApps more effective and the network more dynamic. Improved data integration means that applications will run more smoothly, with access to better information and more reliable financial tools. As a result, developers can create more innovative and efficient solutions, while users benefit from a more robust and responsive network.

On August 9, IntoTheBlock (ITB) added TON to its analytics platform. This provides the TON community with free access to advanced analytical tools. These tools will help users better understand trends and on-chain information. The integration aims to boost user engagement and improve network transparency, offering valuable insights into the TON ecosystem and supporting its overall growth.

### **Conclusion**

The collaboration between TON and Pyth, coupled with the integration of IntoTheBlock's analytics tools, represents a major advancement for the TON ecosystem. By leveraging Pyth’s real-time data feeds and ITB’s analytical capabilities, TON is set to enhance its offerings, drive user engagement, and foster a more transparent and dynamic network. These developments highlight TON's commitment to providing cutting-edge solutions and maintaining its position as a leading platform in the blockchain space.

TON Teams Up with Pyth

Arbitrum DAO, which governs the Arbitrum ecosystem, recently conducted a vote to decide whether to expand its Orbit chains to networks other than Ethereum. The proposal was approved with 84.5% in favor and only 0.01% choosing to abstain. 

You can find the full proposal [here](https://snapshot.org/#/arbitrumfoundation.eth/proposal/0xd6138aaca39742a1a56f3219a74a4258e0786aa5494cdfbe752f23277c1b947f).

### **Arbitrum Orbit**

The Arbitrum Orbit framework enables developers to design custom Layer 2 and Layer 3 rollup chains. These chains offer significant customization options, allowing developers to modify key elements such as the supported gas token, governance mechanism, data availability layer, and privacy features. Arbitrum Orbit is a framework allowing developers to create bespoke Layer 2 and Layer 3 rollup chains. Orbit chains can be customized, allowing developers to change core features including the network’s supported gas token, governance mechanism, data availability layer, and privacy features.

Currently, Arbitrum has 50+ orbit chains in development and is diversified into:

- 22 Defi Chains
- 17 Gaming Chains
- 5 NFT Chains
- 12 Infra and Tooling Chains

### **The Proposal**

In January, the Arbitrum Foundation rolled out the Arbitrum Expansion Program, which allows third-party projects to fork and adapt Arbitrum's codebase for deployment on any blockchain that employs Ethereum’s security model. In exchange, these projects participate in a revenue-sharing arrangement.

The latest proposal makes it possible for new Orbit chains to be launched on additional blockchain networks, including Bitcoin, Binance Smart Chain, and Cosmos. This adjustment responds to interest from projects wishing to create Orbit chains on blockchains beyond Ethereum, prompting the foundation to reassess the program’s current limitations. These changes could lead to more Orbit deployments and increased revenue for the Arbitrum DAO.

### **What’s Next?**

Keep in mind that the Arbitrum Expansion Program is only 8 months old, and this new authorization is set to accelerate its growth by enabling the launch of Orbit chains on multiple blockchain networks beyond Ethereum. 

Arbitrum is well-positioned to maintain its leadership in the Layer 2 ecosystem and possibly expand further. However, the Layer 2 market is becoming increasingly saturated, with many competing solutions striving for prominence. This heightened competition is compounded by the fact that many leading projects are shifting their focus towards launching their own Layer 1 solutions instead of supporting additional Layer 2 platforms. As the market evolves, Arbitrum will need to strategically navigate these challenges and capitalize on new opportunities to sustain and enhance its market position.

### **Summary**

The approval to expand Arbitrum Orbit chains to networks beyond Ethereum marks a significant milestone for the Arbitrum ecosystem. This decision opens new opportunities for developers and projects interested in leveraging the capabilities of Arbitrum across various blockchain networks.

This move also hints at potential revenue growth and expansion opportunities for Arbitrum DAO, marking it as a notable player in the evolving Web3 space. As the ecosystem continues to grow and adapt, it will be interesting to see how this decision influences the future of decentralized finance and blockchain technology.

Orbit Chains to be Deployed Beyond Ethereum

Arbitrum Goes Chain-Agnostic

### **Scaling Bitcoin: StarkWare’s Breakthrough with Zero-Knowledge Proofs**

StarkWare, a blockchain developer known for StarkEx and StarkNet, claims to have verified the first zero-knowledge proof using its new STARK verifier on Bitcoin’s Signet test network. StarkWare’s goals are to enhance the scalability and security of blockchains, and this is a major step forward.

### **STARK Verifier**

StarkWare believes that zero-knowledge (ZK) proofs are crucial for unlocking Bitcoin's programmability and expanding its use worldwide. In simple terms, ZK proofs are a cryptographic method that enables one party to prove to another that they possess specific information without actually revealing it. For instance, in a layer 2 network, a user can prove ownership of a transaction to a smart contract or network node without disclosing sensitive data. This helps reduce congestion on blockchains, speeds up transactions, and maintains security. 

CEO Eli Ben-Sasson stated, “We said we wanted to scale Bitcoin and unleash the blockchain’s power to transform the world. This is us doing that. It’s our very first step in showing what Bitcoin can do with zero-knowledge technology.”

The concept was established by verifying the 32nd number in the Fibonacci squared sequence. This achievement paves the way for generalizing the design and enabling it to perform a wider range of general-purpose computations.

### **Scaling Bitcoin Without Forks**

No additional blockchain is being created, as StarkWare utilizes the existing Starknet network with its current governance and tokenomics. Bitcoin scaling doesn't necessitate a fork, and each decentralized application (dapp) has the flexibility to select its preferred settlement option. This is made possible in part by the utilization of OP_CAT.

### **OP_CAT**

The proposed Bitcoin update known as OP_CAT aims to restore some of the functionality that was originally available but was turned off by Satoshi Nakamoto in 2010 due to security concerns.

However, supporters of OP_CAT argue that advancements in technology and changes to the Bitcoin code have already addressed these issues.

StarkWare's breakthrough highlights the clear advantages of integrating OP_CAT and enabling Ethereum-like smart contract capability on the blockchain network. However, there are still critics, and consensus has not yet been reached in the community.

### **The Signet Test Network**

The test was conducted on The Signet test network. Bitcoin's Signet network, similar to other Bitcoin testnets, provides a controlled environment for developers to test new features, applications, and tools before deploying them on the Bitcoin mainnet.

However, Signet differs from traditional Bitcoin testnets due to its centrally coordinated nature and added stability and protection against spam or malicious activities.

### **A New Era of Bitcoin Development**

The achievements of StarkWare represent a significant advancement in Bitcoin scaling solutions by utilizing their ZK rollup technology. This project not only reinforced the case for OP_CAT but also demonstrated that there are still boundaries to be broken in the development of Bitcoin, creating opportunities for new developers to enter the ecosystem.

Blockchain.jpg

Starkware's Breakthrough with ZK Proofs

Currently, professionals from both the cryptocurrency and traditional finance sectors are working together to extend the advantages of digital assets to conventional assets through the emerging field of asset tokenization. Fundamentally, asset tokenization involves recording ownership of traditional assets on blockchains. Asset tokenization has the potential to not only streamline transactions but also to provide broader access to certain types of investment opportunities and introduce increased liquidity to traditionally illiquid asset categories such as real estate and art. In this article, we will provide a comprehensive overview of the present status of asset tokenization and its operational mechanisms.

The digitization of real-world assets (RWAs) is one of the most captivating uses of blockchain technology, transforming our perception and interaction with various forms of value. A diverse range of tangible and intangible assets, including art, collectibles, real estate, stocks, commodities, and even personal data, can now be digitally represented on-chain through token issuance.

This groundbreaking process unlocks innovative approaches for transferring ownership, sharing revenue streams, and enhancing liquidity for assets that were previously illiquid or non-marketable. The potential for tokenization to revolutionize traditional asset classes and financial markets is substantial, bridging the divide between the physical and digital realms.

### What are Real-World Assets in Crypto

The term "Real-World Assets" (RWAs) refers to a diverse category of assets — whether physical, digital, or data-driven — that derive their value from existing outside the blockchain. Through tokenization, these assets can be transformed into digital representations on the blockchain, unlocking new possibilities for ownership, trading, and investment.

Stablecoins represent the earliest example of real-world assets in the crypto space, backed by fiat currencies like the US dollar or euro to provide a stable, liquid alternative to traditional currency. However, tokenization’s potential extends far beyond just currency, covering a wide range of assets, such as:

- **Financial assets**: Stocks, securities, insurance, treasuries, equities, and indices.
- **Physical assets**: Real estate, precious metals, raw materials, agricultural products, and intellectual property like artwork and music licensing.
- **Digital assets**: Data sets, intellectual property, and digital content rights.

### Tokenization of RWAs

Tokenizing assets involves converting rights to a physical or digital asset into a digital token on a blockchain. The tokenization process can yield either fungible tokens for easy exchange or non-fungible tokens (NFTs) that each represent unique assets. The type of token minted is typically determined by the nature of the asset and the intended use case. Asset tokenization is the process of recording the rights to a given asset into a digital token that can be held, sold, and traded on a blockchain.

The resulting tokens represent a stake of ownership in the underlying asset. Virtually any asset, whether physical like real estate or intangible like stock in a corporation, can theoretically be tokenized. Converting these assets into digital tokens makes them more easily divisible, allowing for fractional ownership, which enables more people to invest and can make the markets for those assets more liquid. Asset tokenization can also facilitate direct, peer-to-peer trading of traditional assets that currently require intermediaries and can bring greater security and transparency to the marketplace.

### Pros of RWA Tokenization

Tokenized real-world assets offer numerous benefits, including:

- **Liquidity.** Tokenized RWAs facilitate increased market liquidity for traditionally illiquid assets by establishing globally accessible liquidity conditions.
- **Transparency.** The representation of tokenized assets on-chain ensures transparency and auditable asset management, thereby reducing overall systemic risks and providing a more accurate determination of leverage and risk in the entire system.
- **Accessibility.** Through blockchain-based applications, tokenized RWAs can expand the potential user base of certain asset types and allow a broader set of users to access assets that would otherwise be unavailable to them through fractional ownership.

### Challenges

However, the tokenization comes with a number of challenges. Some of them include:

- **Legal recognition**. Tokenized asset ownership and digital ownership rights may not be acknowledged by existing legal systems, potentially causing issues with enforcing ownership or transferring rights. The laws and regulations governing tokenized assets are uncertain and evolving rapidly. It can be difficult to understand and comply with applicable laws. For instance, tokenized assets may not qualify for the same protections typically associated with traditional financial securities investment.
- **Incompatibility with traditional systems**. The integration of tokenized assets with current financial and legal systems can be difficult or even impossible.
- **Complexity**. Asset tokenization is intricate, which could result in steep learning curves or barriers to entry for many market participants. Robust storage solutions are required for securely holding and managing tokenized assets. Tokens may be lost, stolen, or mismanaged.

### Summary

The tokenization of real-world assets presents a significant opportunity to reshape finance into a more secure, transparent, and efficient backend infrastructure. This transformation can address conflicts of interest and risk management challenges prevalent in traditional financial systems.

While obstacles to RWA tokenization exist, the potential for widespread adoption remains promising. Achieving broad acceptance will require a delicate balance, but the opportunity for success is clear. By carefully planning RWA infrastructure, maintaining a focused vision, and making determined efforts to overcome past challenges, the journey ahead holds immense promise.