Is Ether A Security?
Mark Kennedy & Manuel Olumorin
March 17, 2023
Ready Player One?
Good, because you've just logged into Lootbox - the one web3 experience where you don't have to worry about the dreaded blue screen of death (although we can't promise anything about our jokes).
For today
- Is Ether a security?
- The power of zk proofs
- The Sneakies - Bitcoin Miner game hits 1 million users
Is Ether A Security?
Last week, NYAG sued KuCoin under state law, alleging it offers unregistered tokens and its earn program is a security. No surprise here, we've seen this movie before.
Here's where things get interesting. Amongst the list of tokens labelled as security was the big daddy of tokens, ETH. 🙀
If ETH is a security, what isn't except Bitcoin?
Well nothing, and that's the point. SEC chairman, Gary Gensler made similar comments about Ether being a security post-merge.
CFTC chairman Rostin Behnam addressed Gary Gensler's comment stating it raises questions about the legality of DCMs, designated contract markets that currently offer futures or swaps on ether. He also states that deep legal analysis is done prior to these self-certified products being listed on CFTC exchanges, concluding that ether and its derivatives are commodities.
So is it a security or a commodity? Now that's the question for the ages, and it remains unanswered.
So what's happening with the lawsuit against Kucoin
At the moment, very little is known. However, Matthew Blaine, a partner at Davidson Eastman, Munoz, Paone law firm, doesn't think there will be a result, stating it would likely end in adjudication.
Keeping an eye on this development. 👀
Unlocking Web3's Potential: The Power of ZK Proofs
If you were at ETH Denver 2023, it would be extremely difficult not to see a product touting zk proofs in its feature set.
So what exactly are zk proofs, and why should web3 game developers care?
What are zk proofs?
ZK Proofs, short for Zero-Knowledge Proofs, are a type of cryptographic protocol that allows for the verification of information without revealing any actual data. In simpler terms, zk proofs allow you to prove that you have a certain piece of information without revealing what that information actually is.
These proofs are fast becoming popular in web3 due to their ability to ensure privacy and security while maintaining transparency.
What can zk proofs do?
- Enhance privacy and security in financial transactions
- Allow for anonymous voting systems
- Improve the efficiency of supply chain management
- Enable secure and private data sharing
What about optimistic rollups?
While optimistic roll-ups are a great scaling solution, they pale in comparison to zk proofs.
What's the difference?
The true difference comes in the finality of the Tx (The point where the Transaction can no longer be reversed or cancelled). Optimistic rollups require several weeks to ensure a transaction cannot be reversed or cancelled. Zero-knowledge rollups achieve finality as soon as their validity proof is published on the underlying layer-1 blockchain.
Some other great benefits of zk rollups:
- ZK proofs have a fixed and predictable cost, meaning the gas fees are much lower compared to other scaling solutions with fluctuating gas prices.
- ZK proofs require far less space than the complete transaction data, helping relieve layer-1 network congestion.
How zk proofs can improve gameplay
- FPS (First Person Shooters): Fairer matching systems, keeping your skill level a secret.
- MMORPG (Massively Multiplayer Online Role-Playing Games): Own and trade virtual assets securely and possibly across different games.
- Gambling and Casino: Fair and random games of chance, without the fear of manipulation or tampering.
- Puzzle and Strategy: Share your progress without revealing your secret sauce. Think fog of war.
Does your game need zk proofs?
If you're looking for ways to ensure that your web3 game is secure, transparent and privacy-preserving, zk proofs are definitely worth considering. By leveraging the power of zk proofs, you can ensure that your users' data remains private while maintaining transparency and security. How would you know if your game needs to leverage zk proofs? Ask yourself these questions:
- Does your game involve any sensitive data that needs to be kept private?
- Is transparency important for your game?
- Would your users benefit from an extra layer of security?
If you answered yes to any of these questions, ZK proofs could be the perfect solution for your web3 game.
Web3 Games I'm Playing This Week
Mighty Action Heroes - A Top Down Shooter developed by Mighty Bear Games. This weekend is the second Early Access event. New Updates include user profiles, charged attacks, and a sick dodge roll!
Sun's out? Then it's guns out for the weekend!
Get into the action with #MightyActionHeroes now!
🎮 play.mightynet.xyz
— Mighty Action Heroes 💪 NOW PLAYING (@PlayMightyHero)
Mar 17, 2023
Big Time - a free-to-play, multiplayer action RPG game. In Big Time you can travel through portals to different dungeons, collect loot, and fight some awesome bosses. The game has not disappointed me yet. Mapping the controller was a pain though...
BOOM! 💥💀 Some enemies don't just fall in battle - they explode! 🔥👊 How fast are your dodge skills?
— Big Time (@playbigtime)
Mar 15, 2023
The Sneakies
- Bill Ackman praises the U.S. Government's efforts to restore confidence in the banking system after the Silicon Valley Bank collapse. His reasoning? "Without this confidence, we are left with three or possibly four too-big-to-fail banks where the taxpayer is explicitly on the hook, and our national system of community and regional banks is toast."
- With the release on Dookey Dash, could tokenized mini-games be the next big wave in web3?
- UK Tax Forms to include crypto assets as a separate category following the national budget announcement. The line is expected to appear in the 2024-2025 tax form.
- Zebedee's Bitcoin Miner mobile game reaches 1 million users, proving the success of the Play-to-Earn model and attracting new crypto traders.
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