Tech
Cryptocurrencies are feeding off the enthusiasm for artificial intelligence as the technology offers new uses for blockchain
New lawsuits filed by the U.S. Securities and Exchange Commission against Coinbase Global Inc. and Binance Holdings Ltd. have raised serious questions about the future of cryptocurrencies.
As digital assets face increasing regulatory pressure and other market obstacles, they have also been dethroned as the latest technological fad. When OpenAI launched its ChatGPT bot in November, it pioneered the practical uses of artificial intelligence. AI has since captured the attention of founders and investors, the same people who fueled the cryptocurrency boom.
Artificial intelligence may have stolen the limelight, but some cryptocurrency enthusiasts say it can bring new opportunities to the blockchain sector.
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“You could actually see a situation where AI is kind of a catalyst to get back to blockchain,” said Adam Struck, founder and managing partner of investment fund Struck Crypto, who has dived further into AI after the ChatGPT bot released.
Blockchain the technology can bring greater transparency and decentralization to artificial intelligence, which can be extremely opaque in terms of what data is used to train models, according to Alex Felix, managing partner and chief investment officer at cryptocurrency firm CoinFund.
Recently, CoinFund supported Tools for Humanity. The crypto startup co-founded by OpenAI’s Sam Altman, which raised $115 million, shows a real-world use case for cryptocurrencies in artificial intelligence, Felix said.
Tools for Humanity, which developed a digital currency called Worldcoin, created a small sphere that scans people’s eyes to generate a unique ID for that individual based on the blockchain, giving them a digital “proof of personality” that, when combined with Worldcoin, they can also be used to facilitate secure payments.
“For we, it all started with Where is the world going with artificial intelligence? And the way to solve this problem was cryptocurrencies,” said Tiago Sada, product manager at Tools for Humanity.
Felix likens the current AI craze to the initial crypto coin supply boom in 2017, when investors rushed to snap up random crypto tokens, many of which were scams. But he said this time it’s easier to look at new projects and determine whether someone has deep enough expertise in artificial intelligence.
“It’s harder to feign credibility because the circles are so small,” Felix said.
Just as blockchain can bring greater transparency to artificial intelligence, the technology can strengthen cryptocurrencies by improving how digital asset platforms sort data, safeguard information and interact with users, according to some cryptocurrency advocates.
Hackers have managed to drain millions of dollars from blockchain protocols. TO THE bot according to Struck, it can limit the range of cyber attacks plaguing decentralized finance.
“You could essentially do very, very large amounts of what’s called pen testing or penetration testing just by having these bots simulate these attacks,” he said, adding that this test could pinpoint vulnerabilities in the smart contract code that hackers can manipulate to steal money.
Bots can also be used to moderate content in order to filter spam and scams on messaging platforms such as TelegramDiscord, Signal, WeChat AND Whatsapp, Struck said. While this type of advantage is not limited to cryptocurrencies, it is important for an industry where many scams originate means of social communication.
“A lot of users are focused on these messaging apps,” he said.
In addition to protecting investors from scams, many in the industry see other ways that AI can make it easier for users to interact with cryptocurrencies.
Solana Labs, which developed the Solana blockchain, launched a ChatGPT plugin in May “to make the user experience better and easier for people to understand what’s going on in the blockchain,” said Tal Tchwella, product manager by Solana Labs.
Cryptocurrencies have been criticized for being too cumbersome for regular consumers, but the ChatGPT plugin guides users through blockchain transactions in a conversational manner.
In a virtual demonstration, Tchwella showed how a customer can connect their crypto wallet and ask the bot to show them non-fungible tokens they can afford or a specific collection. After browsing the options, customers can ask the bot to help them purchase an NFT. The bot then generates a QR code that customers can scan to complete the sale.
“AI is going to impact every area, every sector, every industry and we’re just trying to embrace it,” Tchwella said.
However, other cryptocurrency companies have been hesitant to fully jump on the AI bandwagon, citing its potential dangers. Derivatives exchange Bitget canceled the ChatGPT integration due to concerns about users receiving misleading information and false facts in their queries.
Tools for Humanity has been criticized for its eye-scanning technology and asked whether the sensitive biometric data it collects is actually protected.
Even though The Graph, an indexing protocol, has been leveraging artificial intelligence and machine learning for more than two years to make blockchain data easier to search and use, it doesn’t want its GRT currency to be classified as an AI token, according to Tegan Kline, CEO of Edge&Node, the startup that created the platform.
Unlike other cryptocurrency companies that have quickly pivoted to AI to capitalize on the hype, he said Edge & Node prefers to be known as a blockchain startup first and foremost because there are still “difficulties” around AI, including how technology makes it harder to tell what’s true online.
Meanwhile, “many people are putting AI into their pitches to attract more venture capital funds,” Kline said.
Tech
The Information Hires Peterson to Cover Tech, Finance, Cryptocurrency
My life is nice
Tech news site The Information has hired Business Insider actress to cover technology, finance and cryptocurrencies.
She was part of Business Insider’s investigative team. She was also previously a corporate technology reporter and a technology deals reporter.
Peterson has been with Business Insider since June 2017 and is based in the San Francisco office.
She previously worked for Folio as an associate editor. She holds a bachelor’s degree from the University of California-Davis and a master’s degree from New York University.
Chris Roush
Chris Roush is the former dean of the School of Communications at Quinnipiac University in Hamden, Connecticut. Previously, he was the Walter E. Hussman Sr. Distinguished Professor of Business Journalism at UNC-Chapel Hill. He is a former business reporter for Bloomberg News, Businessweek, The Atlanta Journal-Constitution, The Tampa Tribune, and the Sarasota Herald-Tribune. He is the author of the leading business journalism textbook, Show Me the Money: Writing Business and Economics Stories for Mass Communication, and of Thinking Things Over, a biography of former Wall Street Journal editor Vermont Royster.
Tech
Trump Courts Crypto Industry Votes, Campaign Donations
About the article
- Author, Brandon Livesay
- Role, BBC News
-
July 27, 2024
Donald Trump said at one of the biggest cryptocurrency events of the year that if he is re-elected president, he will fire the chairman of the U.S. Securities and Exchange Commission (SEC) on his first day.
On Saturday, Trump was the keynote speaker at Bitcoin 2024, a gathering of industry heavyweights in Nashville, Tennessee.
The Republican presidential candidate used the event to woo voters and encourage the tech community to donate to his campaign.
Cryptocurrencies have emerged as a political battleground for Republicans, with Trump saying that the Democratic Party and Vice President Kamala Harris were “against cryptocurrencies.”
The crowd was at its most animated when Trump declared, “On day one, I will fire Gary Gensler,” the SEC chairman appointed by now-President Joe Biden. The crowd applauded loudly and began chanting “Trump” at this statement.
SEC files charges against ‘Cryptocurrency King’ Sam Bankman-Frittosentenced to 25 years for stealing billions of dollars from customers of his cryptocurrency exchange FTX.
Speaking for about 45 minutes, Trump outlined some of his ideas for the industry if he wins the November election. He said he would make the United States the crypto capital of the world. His support for the sector is a 180-degree reversal from his comments in 2021, when he told Fox Business he saw Bitcoin as a “scam” that influence the value of the US dollar.
Trump told the crowd at the event that he would retain 100% of the Bitcoin currently owned or acquired by the U.S. government, adding that it would be a “national stockpile of Bitcoin.”
The former president also said he would “immediately appoint a presidential advisory council on Bitcoin and cryptocurrencies.”
He talked about the power needed to mine cryptocurrencies. “It takes a lot of electricity,” he said, adding that he would build power plants “to do that” and that it would “use fossil fuels.”
In recent months, some tech leaders have seen growing support for Trump’s presidential campaign. Tesla founder Elon Musk, who is the world’s richest person, has backed Trump. And cryptocurrency moguls the Winklevoss twins, who attended his speech on Saturday, have also come out in support.
Trump noted that his campaign accepts cryptocurrency donations, saying that in the two months since allowing cryptocurrency transactions, he has received $25 million (£20 million) in donations. However, he did not say how much of the payments came from cryptocurrency.
Trump used his speech to frame cryptocurrency regulation as a partisan issue, saying the Biden administration was “anti-crypto.”
Several Republican lawmakers also attended Trump’s speech, including Senators Tim Scott and Tommy Tuberville. Former Republican presidential candidate and Trump ally Vivek Ramaswamy was also in attendance.
The event was also attended by independent presidential candidate Robert F Kennedy Jr. and Democratic Party congressmen Wiley Nickel and Ro Khanna.
Earlier, during Bitcoin 2024, Democratic Congressman Nickel said that Kamala Harris was taking a “forward-thinking approach to digital assets and blockchain technology.”
Tech
WazirX Crypto Exchange Hack and Its Bounty Program: What Does It Mean for Crypto Investors in India?
On July 18, India Cryptocurrency exchange WazirX has been hit by a cyber attack which resulted in the loss of over $230 million worth of digital assets from one of its wallets. The exchange responded by suspending regular trading and reporting the incident to Indian authorities and other cryptocurrency exchanges. The company also launched two reward programs for ethical hackers who can help the exchange trace, freeze, and recover stolen funds.
WazirX said there was a cyberattack on a multi-signature wallet operated through a digital asset custodian service known as Liminal. Multi-signature wallets have a built-in security feature that requires multiple parties to sign transactions.
“The impact of the cyberattack is over $230 million on our clients’ digital assets,” WazirX said in a blog post, adding that INR funds were not affected. The company has firmly denied that WazirX itself was hacked and has brushed aside rumors that it was tricked by a phishing attack.
The exchange also noted that it was “certain” that its hardware keys had not been compromised, adding that an external forensic team would be tasked with investigating the matter further.
But Liminal, after completing its investigation, said: “It is clear that the genesis of this hack stems from three devices compromised by WazirX.”
Meanwhile, WazirX founder and CEO Nischal Shetty said that the attack would have been possible only if there were four points of failure in the digital signature process.
Who is behind the cyber attack?
WazirX has not yet disclosed the suspected parties or perpetrators responsible for the hack. However, news reports have emerged that North Korean hackers were responsible for the incident.
On-chain analytics and other information indicate “that this attack was perpetrated by hackers affiliated with North Korea,” blockchain analytics platform Elliptic said.
In response to The Hindu’s questions to WazirX about the North Korean hackers, cryptocurrency exchange WazirX directed us to its blog and said it was working with law enforcement to investigate whether a known malicious group was behind the attack.
“This incident affected the Ethereum multisig wallet, which consists of ETH and ERC20 tokens. Other blockchain funds are not affected,” WazirX said in its official blog, specifying that approximately 45% (according to preliminary work) of cryptocurrencies were affected by the attack.
The company largely placed the blame on the process of securing Ethereum multisig wallets and said that the vulnerability was not unique to WazirX.
How important is WazirX in the cryptocurrency industry?
WazirX calls itself India’s largest cryptocurrency exchange by volume. As of June 10, it reported total holdings of ₹4,203.88 Crores, or 503.64 million USDT. Tether [USDT] It is a stablecoin, that is, a cryptocurrency pegged to the value of the US dollar, but it is not an official currency of the United States.
When The Hindu tried to access WazirX Public and Real-Time Reserve Proof After the hack, we were greeted with a notice that the page was under maintenance.
WazirX has received both positive and negative reviews in India. The Enforcement Directorate froze the exchange’s assets in 2022, criticizing its operating procedures and lax Know-Your-Customer (KYC) and Anti-Money Laundering (AML) regulations.
“By encouraging obscurity and adopting lax AML norms, it has actively assisted around 16 accused fintech companies in laundering proceeds of crime using the cryptocurrency route. Accordingly, equivalent movable assets amounting to Rs 64.67 Crore in possession of WazirX have been frozen under the PMLA, 2002,” the ED said in a statement.
What will happen to WazirX assets?
It is unlikely that the stolen WazirX assets will be fully recovered anytime soon. This is due to the very nature of cryptocurrency, where assets can be easily mixed, transferred, converted, and sent to anonymous wallets. The chances of asset recovery are even slimmer if it is confirmed that North Korean hackers are behind the incident.
CEO Shetty said on X on July 22 that “small” portions of the stolen funds had been frozen, but declined to provide further details. He added that the majority of the funds had not been moved from the attacker’s wallet.
In recent years, North Korean hackers have stolen billions of dollars in cryptocurrency, aiming to circumvent various financial and economic sanctions.
WazirX is currently working to resume normal operations and has planned to launch an online survey to decide how to resume trading on the platform.
While the Indian exchange has defended its security practices and highlighted the challenges facing the cryptocurrency industry as a whole, savvy crypto traders will be looking for action plans and accountability, rather than emotional reassurance.
What does your rewards program consist of?
WazirX has announced two bounty programs: one to gain more information about stolen funds, and the other to recover them. Both programs are open to everyone except WazirX employees and their immediate family members.
Under the first program, WaxirX will reward up to $10,000 to anyone who can provide the exchange with information that can help freeze the funds. If the bounty hunter is unable to freeze the funds on their own, they should work with WazirX by providing enough evidence to facilitate the process.
But “if the participant fails to freeze and/or does not cooperate with WazirX to facilitate the freezing of funds, then the participant will not be entitled to any rewards,” the exchange said.
The second program, called White Hat Recovery, is aimed at recovering funds. Participants are offered 10% of the amount recovered as a white hat incentive.
“This reward will be paid only after and subject to the successful receipt of the stolen amount by WazirX. The above rewards will be payable in USDT or in the form of recovered funds at the sole discretion of WazirX,” the exchange noted.
The bounty programs are expected to last for the next three months.
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Tech
Trump Vows to Make US ‘Crypto Capital of the Planet and Bitcoin Superpower’
Speaking to a crowd of supporters at the Bitcoin 2024 Conference in Nashville, Tennessee, former President and Republican candidate Donald Trump said that if elected, he would make the United States the “crypto capital of the planet and a Bitcoin superpower.”
Trump added that he would “appoint a Presidential Advisory Council on Bitcoin and Cryptocurrencies,” which would have 100 days to “design transparent regulatory guidance that will benefit the entire industry.”
Trump has publicly opposed cryptocurrencies until recently. His latest statements serve as a rallying cry for a tech industry that has long called for more flexible regulatory oversight.
Shortly after taking the stage, Trump spent several minutes naming some of the conference attendees, at one point describing Winklevoss Twins Cameron and Tyler as “male role models with big, beautiful brains.” The former president has continued to speak out against electric car mandates and called for more fossil-fuel burning power plants.
Trump also said he would order the United States to withhold all Bitcoin it currently owns “in the future.” The U.S. government reportedly holds billions of dollars in Bitcoin.
About three years ago, Trump called Bitcoin “a fraud“that is “competing against the dollar.” In February 2024, the former president said that establishing a central bank digital currency would represent a “dangerous threat to freedom.” Yet, in May, Trump declared that he was “good with [crypto]“, adding, “if you’re pro-cryptocurrency you’d better vote for Trump.” That same month, he said he would commute with the Silk Road founder Ross Ulbricht’s Sentencingand his campaign said it would accept cryptocurrency donations.
Recent comments from Trump and independent presidential candidate Robert F. Kennedy Jr. have helped make cryptocurrency regulation a major political issue in the 2024 U.S. presidential election. This comes as the SEC intensifies its scrutiny of the cryptocurrency industry. SEC Chairman Gary Gensler, appointed by President Joe Biden, called the activity “full of fraud, scams, bankruptcies and money laundering.” Trump drew applause at the conference after promising to “fire” Gensler. (U.S. presidents have the power to appoint the heads of many federal commissions, including the SEC.)
With Biden out of the raceVice President Kamala Harris’s campaign advisers have He is said to have contacted to cryptocurrency leaders in an effort to “reset” relations with the industry. Harris’s campaign has not yet said whether her stance on the industry differs from Biden’s.
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