In our news posts we aim to highlight recent newsfeeds from Ethereum ecosystem, that are most relevant to less technical users. We are focusing to provide short summaries and links to resources with further insides to the topics.
Our first post will be mostly about one of the most boiling topics in crypto recently, that are regulatory and compliance.
- OFAC compliance
- Genesis bankruptcy
- 2023 predictions
1. OFAC compliance
Let’s review the recent state of the Ethereum network related to it’s native fundamental that is censorship resistance – as Ethereum aim to be open to be used freely by anyone in the world.
Learn basics here: What can Ethereum do?
tldr; From this point, OFAC censorship is a threat, but recently it is not executable and improvements are coming.
- in August 2022, the U.S. Treasury sanctioned Tornado Cash – an anonymization protocol on Ethereum.
- in reaction number of ‘OFAC compliant’ blocks of Ethereum rose to more than 80%
- however recently it decreased to <60%, thanks to more ‘OFAC non-compliant’ tools
- also leading projects are working on improvements: 1, 2
How could you contribute?
Stake your ETH by less censoring entity and run your own non-compliant node.
2. Genesis bankruptcy
How latest bankruptcies and regulatory steps are related to Ethereum’s DeFi ecosystem?
tldr; TradFi is not DeFi and actually TradFi financial crashes are why we need more DeFi.
- stock and crypto markets crash in 2022 resulted in bankruptcies of several centralized crypto companies like 3AC, Celsius or FTX.
- recently this bankruptcy avalanche hits another one – Genesis
- in reaction regulators stepped to call for more regulation of crypto and critics claimed it as failure of DeFi
TradFi vs DeFi
- these crashes happened to the centralized crypto companies, that were operating by the rules of traditional finance (TradFi), not DeFi.
- DeFi is working to be a better alternative to TradFi => DeFi exchange or bank couldn’t act such
- also DeFI could prevent financial crashes in 2008 and 2022
How could you contribute?
Prefer using DeFi instead of TradFi and sulf-custody your crypto funds.
3. 2023 predictions
Have a look at some interesting Ethereum and crypto 2023 predictions.
Some are technical or price oriented, despite we are trying here to make things simple and without price-talks.
tldr; Come on, you know you don’t want to hear bearish new year’s predictions 🙂
- Washington, D.C., will be a crypto hotspot in 2023 as regulatory innovation proceeds at unprecedented rates
Regulatory here and there, but let’s mind the point: poorly designed US legislation may lose Web3 to the rest of the world.
- ETH withdrawals enabled by Q2 2023 and Proto-Danksharding in 2023
Some technical ones, but worth to remember even for non-tech users, as it will be the most awaited Ethereum technical events of the year.
- ZK-rollups (and zkEVM) are the top performers
One more technical to learn about or memorize (ZK = zero knowledge), as you will be using it more and more.
- S&P500 hits pre-pandemic levels
Not directly crypto-related, but as crypto markets use to act as ‘stock markets on steroids’, this might be a positive sign.
- The Fed will turn dovish, setting the stage for the next crypto bull market in Q3 2023
It’s getting hotter…
- Let’s just don’t finish by ETH to $10k here 🙂
Some 2022 endings in the end: 1, 2
Please let us know how you enjoy reading, what you liked or what you missed, by leaving a comment below.
Not financial or tax advice. This post is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions This post is not tax advice. Talk to your accountant. Do your own research.