Washington policymakers have identified stablecoins as the initial target for stricter cryptocurrency regulation. Stablecoins — which are backed by a reserve asset — are booming due to investors using them to trade among other cryptocurrencies. The stablecoin sector grew by about 500 percent in the 12-month period ending October 31, according to a report issued by the Biden administration. While there are four basic types of stablecoin, the ones collateralized by fiat currency — and specifically the U.S. dollar — is by far the most popular. A bipartisan effort exists to create safeguards ensuring one stablecoin is expeditiously redeemable for one dollar. Continue reading U.S. Lawmakers Target Stablecoin in Cryptocurrency Debate

Cryptocurrency bridges, which enable transactions across a wide range of token types, are an increasingly important factor in the world of blockchain. A hack involving approximately $540 million in Ethereum and USDC stablecoin from the Ronin bridge in March was another drop in the $1 billion-plus bucket stolen from bridges. Successful attacks have become more common in recent years and the Ronin heist, among the largest, underscores a bigger problem. Different cryptocurrencies are typically siloed, so a Dogecoin transaction can’t be implemented on the Bitcoin blockchain, but it can by using a bridge. Continue reading Crypto Bridges Creating Vulnerabilities Popular with Hackers

Cryptography experts from Stanford University are brewing up Espresso, a new Layer-1 system that aims to crack the so-called ‘blockchain trilemma’ of balancing decentralization, security and scalability. Described as a privacy-focused blockchain geared to those who find the public-facing aspect of most platforms unsuitable for their sensitive data, Espresso Systems is building “solutions that will unlock new possibilities for Web3 applications and usher in the next generation of users.” The company stepped out of the lab this week to introduce itself with $32 million in funding, led by Electric Capital and Greylock Partners. Continue reading Espresso Raises $32M in Its Bid to Advance Blockchain Tech

Kickstarter is launching a new company that will mirror its crowdfunding system, but using cryptocurrencies and built on blockchain. The as yet unnamed entity generated backlash among the company’s existing community due to the environmental hazards presented by energy-guzzling crypto, despite Kickstarter’s choice of what it calls a “carbon negative” partner in Celo, a mobile-first platform that is open-source. “We’re supporting the development of an open-source protocol that will essentially create a decentralized version of Kickstarter’s core functionality” that will live on a public blockchain for use by global entrepreneurs, Kickstarter said in an announcement. Continue reading Kickstarter Gets Backlash Over News of Moving to Blockchain