Daily: Ethereum Defeats Bank of America ???
Description
Bank of America is facing a rapid replacement of their services by Blockchain technology. 0:45 Market Analysis 1:16 Bank Of America is feeling the crypto sting 3:09 Turkey, Iran To Release State-Backe...
AI Analysis
The crypto market is experiencing a slight weekend dip, but the big news is that Bank of America is telling US regulators it might struggle to compete with cryptocurrencies due to a talent drain and the disruptive power of smart contracts. Meanwhile, Turkey and Iran are looking to launch their own state-backed cryptocurrencies, similar to Venezuela's move. On the Ethereum front, there's a heated debate over a proposal (EIP867) to recover lost funds, raising ethical questions about whether "code is law" or if mistakes should be rectified. Finally, gaming giant Ubisoft is exploring blockchain technology, though their plans are still vague.
Here’s a deeper dive into the topics:
* Market Snapshot:
* There's a minor weekend dip in the cryptocurrency market, with Bitcoin falling 4% and Ethereum 3%.
* Bitcoin is currently below $10,000, which might concern some people, but weekend dips are a frequent occurrence.
* The market is still working to establish a stable price point for cryptocurrencies.
* The Korean premium remains high, suggesting potential market activity in Asia next week.
* Bank of America's Crypto Sting:
* Bank of America has officially admitted to US regulators that it may struggle to compete with the growing cryptocurrency space.
* This concern stems from two main issues: a "talent drain" where top tech talent is moving to the crypto sector, seeing its potential.
* The long-term threat is that cryptocurrencies, especially with smart contracts, can directly replace many traditional banking services.
* Banks act as trusted third parties for services like escrow, ensuring contracts are met and funds are delivered.
* Smart contracts, however, are "trustless," meaning they execute based on pre-written code without needing a middleman, thereby cutting out the bank.
* This direct replacement of middleman services, for which banks charge fees, poses a significant long-term issue for institutions like Bank of America.
* Traditional methods, such as filing blockchain patents, are seen as outmatched by the open-source nature of much of the crypto development.
* The speed at which large sums are raised in crypto (e.g., syndicates raising millions in seconds without banks) highlights the rapid shift in finance.
* It is clear that cryptocurrencies could play a key role in disrupting the traditional banking sector.
* Turkey & Iran Explore State-Backed Cryptocurrencies:
* Following Venezuela's state-backed Petro cryptocurrency, both Turkey and Iran are now considering issuing their own state-backed digital currencies.
* This trend is conceptually confusing because the core idea of cryptocurrencies is to function without state backing.
* The motivation behind these moves seems to be to tap into the financial benefits associated with cryptocurrencies.
* While not a revolutionary step, it indicates an evolution in how states are approaching digital currencies, possibly influenced by the success and attention surrounding decentralized crypto.
* Ethereum's EIP 867 Battle Over Lost Funds:
* There's an ongoing debate within the Ethereum community regarding a new Ethereum Improvement Protocol, EIP867.
* The proposal aims to address "lost funds," which are Ether (ETH) that became permanently inaccessible due to code bugs, like the Parity multi-signature wallet issue where a self-destruct function was accidentally triggered.
* The central debate revolves around the ethics of intervening to fix such issues.
* One viewpoint is "code is law," meaning that if the code was written a certain way, even with a bug, the network should not interfere.
* The opposing view is that software is progressive, and people make mistakes, so the community should be able to fix errors, especially if there's a consensus that it was indeed a mistake.
* The community is invited to weigh in on whether these lost funds should be rescued.
* Ubisoft Explores Blockchain Technology:
* Gaming giant Ubisoft, known for titles like Assassin's Creed and Far Cry, is looking into blockchain technology.
* Their current exploration is somewhat vague, involving research labs and general terms about integrating AI with blockchain, without specific gameplay designs or applications revealed yet.
* Gaming is seen as a potentially huge area for blockchain this year.
* The main benefit for gamers is the ability to truly own their in-game items, a feature that has not been possible in traditional gaming models.
Transcript
Today on BoxMoneyDaily, we take a look at the market first. There's a little bit of a weekend dip coming up. We also have the Bank of America. So they issued a letter to the SEC feeling that crypto is staying them quite hard. We also have Turkey and Iran. They're going to release state backed cryptocurrencies to follow Venezuela. We also have, of course, Ethereum. There's a battle over a new Ethereum improvement protocol, EIP867. I'm going to talk a little bit about that. And finally, we have g...