• The business asserts to have secured over USD 2 billion in bitcoin assets spread across tens of thousands of keys globally.
• Unchained Capital uses a “collaborative custody” technique to store bitcoins for users.

Unchained Capital Inc., based in Austin, Texas, revealed recently that it had raised USD 60 million in new Capital to expand its financial services for bitcoin owners amid volatile markets.

Leading the Series B funding round was Valour Equity Partners, which is well recognized for its early investments in Tesla and SpaceX. Existing investors such as NYDIG, Trammell Venture Partners, Ecliptic Capital, and Highland Capital Partners took part in the round’s early April closure. It adds to the USD 15 million the company raised in the fall of last year under Ten31’s leadership.

Unchained Capital uses a “collaborative custody” technique to store bitcoins for users. The company’s solution uses the bitcoin’s underpinning technology, which enables numerous parties to keep track of private keys and distribute ownership of bitcoins among themselves, Unchained, or other financial institutions.

The technology implements a multi-signature concept that, in essence, necessitates the agreement of multiple parties before the transfer of cryptocurrency. Unchained, and any other financial institution, cannot act on held cryptocurrency without the consent of the other signatory. This helps eradicate risks such as theft and critical loss and prevents anything from occurring to holdings if one signatory passes away.

It has been demonstrated that holding cryptocurrencies with businesses might result in the loss of tokens by the recent collapse and bankruptcy of cryptocurrency exchange FTX Trading Ltd. and other centralized crypto enterprises. The possibility that they may be transferred or used without permission—or that someone would just run off with them—reduces, though, if many people sign them.

The company asserts to have secured over USD 2 billion in Bitcoin assets spread across thousands of keys globally. It offers loans with Bitcoin as collateral among its financial services, and since 2017 it has originated more than USD 500 million in loans with no losses. The company also provides a trading desk for customers to purchase Bitcoin directly into multi-signature cold storage. It also has a solution for individual retirement accounts, enabling customers to hold Bitcoin keys in tax-advantaged accounts.

A partner at Valor, Vivek Pattipati, said “In the midst of market chaos, Unchained has emerged as a highly trusted provider of bitcoin custody and financial services through superior technology, risk management, regulatory compliance, and client service. Particularly in lending, the company has differentiated itself by minimizing risk to both the lender and the borrower, leading to resilience and an extraordinary opportunity to capture market share.”

Given the current market volatility, unchained intends to utilize the money to increase its clientele and broaden its product selection, particularly in relation to Bitcoin. According to Chief Executive Joe Kelly, the cash will be used to expand the product line and address long-requested additions, upgrades, security features, and quality-of-life improvements.

With an eye on how people exchange Bitcoin for dollars, a portion of the funds will also be used to capitalize on the expanding popularity of Bitcoin. Unchained Capital plans to start providing dollar-focused products like checking accounts and credit cards in light of this.

Kelly said, “Using this fresh capital investment to expand our reach and suite of services. We hope to enable new entrants to bitcoin to leapfrog centralized custodians into our safer collaborative custody model.”

• A new breed of less experienced cybercriminals is reportedly given the ability to weaponize and carry out ransomware and other malicious attacks more quickly due to a combination of AI tools, IABs, and as-a-service services.
• Cryptocurrency continues to be a common tool and target for cybercriminals.

In a recent analysis, Cybersixgill Ltd., a threat intelligence company, reveals distressing contemporary trends in cybercrime, such as a declining entrance barrier fueled by generative artificial intelligence services, including OpenAI LP’s ChatGPT.

The State of the Cybercrime Underground study was based on an examination of information gathered by Cybersixgill in 2022 from the open, deep, and dark web. To determine the present condition of threat actors’ strategies and targets, the research offers insights into the discourse and activity of underground cybercriminals. It compares it to data and patterns from earlier years.

The report’s most important result relates to how generative AI is making it easier for hackers to commit cybercrime by making it quicker for them to build malicious code and carry out other “pre-ransomware” preparations. Initial access brokers, commonly known as IABs, and as-a-service options are being added to the process, helping lower the entrance hurdles for cybercriminals.

In particular, the paper features ChatGPT, and it is noted that it provides legitimate users with many advantages beyond just being a tool for text production, such as the automation of software engineering chores, data analytics, predictive modeling, language translation, and creative writing. In addition, it provides less experienced scammers with a simple approach to creating dangerous code, convincing phishing emails, and other pre-ransomware preparation tasks.

A breed of novice cybercriminals is reportedly given the ability to weaponize and carry out ransomware and other malicious attacks more quickly due to a combination of AI tools, IABs, and as-a-service services. The experts at Cybersixgill predict that successful cyberattacks will become much more frequent and intense and that, in the coming months and years, AI-enabled cybercrime will probably become the norm.

Other findings show a decline in credit card fraud that claims “most of the world has experienced a near-collapse in credit card fraud.” However, it was observed that the UK witnessed an increase in fallacious card sales in 2022 and now reports the highest number of forged cards per capita worldwide.

Cryptocurrency continues to be a common tool and target for cybercriminals, which is not surprising. Malicious actors utilize methods such as digital wallet takeovers, cryptomining, and stealing digital assets from cryptocurrency exchanges to commit financial fraud. Cryptojacking is the illegal use of computing resources to mine cryptocurrencies.

The study also noticed that scammers were using encrypted messaging platforms more frequently. Cybercriminals increasingly cooperate, communicate, and trade tools, stolen data, and services via encrypted messaging applications such as Telegram, Discord, and QQ. Additionally, it was discovered that the chat services were being utilized as a launchpad for cyberattacks.

Delilah Schwartz, Security Strategist at Cybersixgill, stated, “Cybercrime is rapidly evolving, with new opportunities and obstacles in the cyberthreat landscape impacting threat actors’ tactics, tools, and procedures. In response, organizations can no longer rely on outdated technologies and manual processes to defend against increasingly sophisticated attacks. Proactive attack surface management informed by real-time CTI from the deep, dark, and clear web is now of paramount importance and will be a critical cyber defense weapon in the months and years to come.”

• Deep Learning (DL) is a combination of a recurrent neural network, long short-term memory, and convolutional neural network architecture, evolving as a powerful tool to understand complex patterns from huge, complicated data.
• Insufficient data was a poor experience that used to limit customer experience. The latest metaverse helps to create behavioral data for companies and works as a baseline for various domains without any difficulty.

One word that dominates almost every Tech-related discussion today – Metaverse! What is it? Metaverse is not just a buzzword, it’s more of an opportunity for businesses, researchers, students, industry leaders, and technology enthusiasts to enter an advanced world of digital reality.

Research shows that a metaverse will be a place where everyone will benefit in one or another way, but it is still relatively abstract. It combines aspects of online gaming, social media, augmented reality (AR), Virtual reality (VR), and cryptocurrencies to let users interact virtually.

According to a Forbes study, 61% of the surveyed marketing professionals want to market their brands in the metaverse. And 44% of marketers planned to run an advertising campaign in the metaverse in the past year 2022.

Metaverse and Deep Learning

To make metaverse real-time and blend it into human life, deep learning helps. Many metaverse experiences are based on deep learning, and they continue to progress with the use of deep learning. For instance, in understanding emotion and body language better. Similarly, others are as follows:

• Gesture Recognition
• Eye Tracking
• Text Mining
• Speed Processing

Deep Learning is majorly inspired by the structure of the human brain. The algorithm that it uses results similar conclusions as humans by analyzing data with a specified logical structure. Deep Learning neural networks mimic the decision-making procedure of the human brain by performing calculations to reach a result.

An Optimal View of Deep Learning

The role of AI, including Machine Learning algorithms and Deep Learning architectures in the foundation and evolution of the metaverse, is significant. The evolution basically happened in the below categories.

• Technical Features that are necessary to build a virtual world in the metaverse.
• Natural language processing
• Blockchain
• Digital twins
• Neural interface
• Machine vision
• Networking
• AI-aided applications
• Manufacturing
• Healthcare
• Gaming
• Smart cities

Deep Learning technology is becoming potential to improve the user experience in the metaverse:

1. Deep Learning (recurrent neural network + long short-term memory + convolutional neural network architecture) is evolved as a powerful tool to understand complicated patterns from large complex data.
2. DL is now being manipulated in various domains such as human-computer communications, wireless communications, gaming, and finance.
3. Sensor-based wearable devices and other gadgets which allow human-computer interaction, complex actions, and simple human movements are due to Deep Learning.
4. In the metaverse, users can fully control their avatars easily, as users’ movements of the real world are projected into the virtual world with the help of ML and DL models.
5. Physical interactions, facial expressions, body movements, emotions, sentiment analysis, speech recognition, and some other modalities which are prevalent in the real world are adopted in the virtual world with greater speed and accuracy.

What to Expect from the Future of the Metaverse?

Insufficient data was a poor experience that used to limit the user experience in the traditional metaverse. Now, the recent metaverse helps to create behavioral data for enterprises and works as a foundation for various domains without any issues. It satisfies the below characteristics:

• Virtual world
• Scalability
• Financial allowance
• Decentralization
• Always-on with synchronicity
• Persistency
• Security
• Interoperability

Will the metaverse become successful? The answer to this question is discussed in the below Metaverse predictions.

Metaverse Will Expand Thoroughly

• As per McKinsey and Company, metaverse approximately will generate up to Five trillion dollars by 2030. The impact will mostly be seen in the e-commerce industry with other industries such as virtual learning, gaming, and advertising.
• MarketsandMarkets predicted that 3D metaverse technology for media, art, entertainment, fashion, and retail might reach up to USD 426.9 billion by 2027.
• Gartner predicts that the enterprise digital twin marketplace will reach USD 183 billion by 2031.

Metaverse Will Heavily Impact Business Practices

As we all have seen, digital transformation helped businesses and individuals to improve their digital presence and gain digital literacy. In the same way, metaverse technology will help organizations capture virtual representations of products and services and improvement in operational procedures.

A digital transformation strategy and a response-based system are real needs for any business to grow. According to the Times of India, Metaverse will impact businesses in below ways:

• There will be an acceleration in manufacturing
• The shopping experience will be more immersive and satisfactory
• VR workplace environments will encourage corridor chat, employee interaction, and collaborative activities
• VR workplace of metaverse will encourage remote work with corridor chat, collaborative activities, employee interaction
• Corporate earnings and training will advance
• An increase in engagement and enhancement in marketing will be attained

Expansion Beyond Virtual Showrooms

The future metaverse will touch 3D modeling software, scalable multiuser environments, and lidar capabilities to develop a new outlook to solve business-related problems. Businesses will need to be experimental with strategic trials, as there isn’t any specific rule book to follow.

Alex Weishaupl, Managing Director of experience design at consultancy Protiviti Digital said in a statement “I think we’ve only just scratched the surface here. Applications will rapidly move beyond virtual showrooms and 360 showcases to explore capabilities that take advantage of the combination of visualization with real-time data to power customer collaboration, risk forecasting, fraud or crime detection, and other operations functions.”

Single Metaverse Will Expand into Various Metaverses

GamesPad Co-founders, Eran Elhanani and Constantin Kogan, released Metaverse Industry Report 2022 that talks about strategies to businesspersons about emerging opportunities in the new metaverse market. So, many companies will be having presence in various metaverses just like office branches in many cities.

Large organizations like Adidas, Nike, Gucci, and Tiffany are already seen getting into the metaverse.

Robotics Will Advance Like Never Before  

Due to improved sensor technology and advanced machine learning processes, robots are developed with collaborative and cognitive functions. We can expect numerous considerable numbers of revamped and sophisticated robots in the coming future due to the metaverse.

Robotics will possibly lead to a significant gain in revenue and productivity. Using technologies such as digital twins, AR, VR, mixed reality, and more importantly metaverse speed up the adoption of robotics in various workplaces in the coming future.

The Metaverse Will Integrate Newer Technologies

Think how the evolution of the cloud took place, managed services and VMs were offered for years by vendors before the cloud. Then, the cloud combined varying approaches into new venture architectures, and it is influencing many activities till now. Similarly, in the future enterprises will flourish with various options to explore metaverse devices, metaverse studios, and experimentation. According to McKinsey and Company, the below technologies will be added by metaverse:

• A shift from 2-D internet spaces to fully immersive experiences
• Edge computing will solve problems related to bandwidth and latency
• Metaverse application will be at the forefront of infrastructure
• Hardware devices will combine the virtual and physical worlds

Are We Ready Enough for the Future Metaverse?

Giant companies like Nvidia, Facebook, Microsoft, and Sony largely invest in evolving technology. They are intending to transform their organizations into metaverse in the first place. As per Bloomberg, the economic projection of Metaverse can go up to USD 800 billion by 2025 and 2.5 trillion by 2030. It shows that the metaverse is nothing but a future universe.

Knowing the importance of the metaverse, big companies are not missing any chance to invest in this technology. Small and medium companies need to keep pace with this competition by adapting to changes brought about by technology. Companies that fail to comply with newer technology will face losses.

Final Thought:

Many of us might think, will the metaverse fail? The answer is NO! The metaverse is coming with many opportunities in the future, having the capacity to impact businesses. With the adoption of the metaverse, you can uncover numerous possibilities, quick interactions, smooth business operations, and better simulations for your companies. There is a need for strong determination by the companies to better serve their users with metaverse in the coming time.

• Developers can create specific sections of their dapps to utilise the capabilities of different blockchains by utilising LayerZero’s protocol.
• The LayerZero protocol aims to address the issue of the crypto ecosystem’s numerous blockchains, each of which tends to solve a different problem but cannot interact with others.

Cross-chain interoperability protocol startup LayerZero Labs Inc. revealed that it has received USD 120 million in fresh funding at a USD 3 billion valuation.

The latest Series B round triples LayerZero’s valuation from its previous USD 135 million financing round in March 2022. Thirty-three investors participated in the round, including Andreessen Horowitz’s cryptocurrency division, BOND, Circle Ventures, Samsung Next, Sequoia Capital, OKX Ventures, and OpenSea Ventures. The Christie’s auction house, renowned for selling pricey works of crypto art, also participated in the round.

LayerZero’s messaging protocol enables decentralized apps to communicate with each other across various blockchains. Its protocol platform facilitates flexible and trustless message delivery, allowing the programmers to quickly build dapps that can operate on multiple blockchains and still communicate.

Developers can create specific sections of their dapps to utilize the capabilities of different blockchains by utilizing LayerZero’s protocol. For keeping track of action-packed gameplay in one area of their app, a developer might use a highly scalable blockchain with low fees and high transaction rates, and for betting or storing in-game items, they might use a different blockchain that operates more slowly and with higher security.

Ryan Zarick, Co-founder and Chief Technology Officer of LayerZero Labs, said, “Imagine a future where a single user-facing application can harness the speed of Solana, the security of Ethereum, and the cheap file storage of Arweave, while also being fully abstracted to the user. The days of choosing one chain to build on are over; the future is omnichain applications.”

LayerZero’s protocol aims to address the issue of the crypto ecosystem’s numerous blockchains, each of which tends to solve a different problem but cannot interact with others. Developers now choose which blockchain they migrate to and lock themselves in, which has caused fragmentation.

Several multichain interoperability initiatives are also being developed; however, LayerZero contends they are inadequate. Examples include Cosmos IBC, which uses lightweight nodes, and Polkadot, a centralized solution with hub-and-spoke architecture. Due to Ethereum transaction fees, the former may lose security while the latter becomes more expensive.

In September 2021, the business began operations with USD 6 million in financing. Since then, the LayerZero protocol has transmitted over 2 million messages across 30 networks, locked in USD 7 billion, and handled over 6 billion transactions. The business reports that the platform has deployed more than 300,000 contracts on its testnet and 3,500 on its mainnet, in addition to more than 10,000 distinct apps and hundreds of thousands of unique users.

Some of the most well-known apps in the cryptocurrency sector, including the biggest decentralized crypto exchanges PancakeSwap, SushiSwap, TraderJoe, and Uniswap, use the company’s technology.

Zarick compared the development of blockchain technology to that of the Internet, saying that computers existed in fragmented and isolated data centers until a distributed networking system was developed to connect them. Zarick further said, “LayerZero is revolutionizing blockchains by creating one unified ecosystem, like the internet, that connects each blockchain’s developers and user community.”

• Apex Crypto offers a turnkey platform for integrated cryptocurrency trading that is tailored to the requirements of trading clients like neobanks and financial organizations.
• Bakkt is taking a significant step by purchasing Apex at a time when authorities are cracking down on the cryptocurrency sector.

Intercontinental Exchange Inc., which owns the New York Stock Exchange, founded the digital asset startup Bakkt LLC that revealed the completion of its acquisition of Apex Crypto LLC, a cryptocurrency trading company.

Apex Crypto offers a turnkey platform for integrated cryptocurrency trading tailored to the requirements of trading clients like neobanks and financial organizations. By facilitating the transaction of cryptocurrency investments, Apex offers answers through its services, including custody, exchange, cost basis, and tax services for cryptocurrency.

Following the purchase, Apex Crypto will provide Bakkt with over 30 business clients and a vast network of financial technology solutions. Since its start in 2019, the firm has reportedly handled over $12.5 billion in crypto transactions.

Gavin Michael, Chief Executive, said, “This acquisition marks an exciting new chapter for Bakkt, significantly advancing portions of our crypto roadmap, helping us tap into a universe of 5.8 million crypto-enabled accounts, and further establishing Bakkt as the [business-to-business-to-consumer] crypto provider of choice.”

Early in November 2022, Bakkt announced its agreement to buy Apex for up to USD 200 million. According to the agreement, the business would pay USD 55 million in cash after the transaction, then up to USD 100 million more in Bakkt stock and sellers notes based on Apex Crypto’s performance through 2025, or USD 45 million in Bakkt stock.

Bakkt is taking a significant step by purchasing Apex at a time when authorities are cracking down on the cryptocurrency sector. The firm has acquired permission from the New York Department of Financial Services and has obtained both a BitLicense and a trust charter. Both Bakkt and Apex were required to get regulatory clearance from other jurisdictions in which they operate as money transmitters.

Since Sam Bankman-Fried’s crypto exchange, FTX Trading Ltd. collapsed, causing a chain reaction of market volatility and big bankruptcies, times have been difficult for the cryptocurrency industry. The most recent setback to crypto banking possibilities was the closure of crypto-friendly Silvergate Bank due to market conditions and New York regulators’ control of Signature Bank.

Especially in international markets through Apex’s financial technology partners, Bakkt will expand its products and services through the acquisition to serve even more customers.

• Ledger creates hardware goods and services to assist businesses and consumers in safeguarding their blockchain-based cryptocurrency tokens and money.
• Ledger Nano X and Ledger Nano S Plus are small enough to fit in your pocket and can connect to phones or other devices to help individuals manage crypto transactions.

Ledger SAS, a startup based in Paris that produces hardware for cryptocurrency wallets, recently announced that it has successfully raised the majority of a USD 109 million funding round.

According to Bloomberg, the company’s valuation is still around USD 1.4 billion, about the same as in June 2021 when Ledger raised USD 380 million in a titanic funding round, a Series C funding round.

True Global Ventures, Digital Finance Group, Cité Gestion SPV, and VaynerFund are just a few new investors the company has attracted. Current backers 10T, Morgan Creek, Cap Horn, and Cathay Innovation also took part in the round.

Ledger creates hardware goods and services to assist businesses and consumers in safeguarding their blockchain-based cryptocurrency tokens and money. Current products from the company resemble USB keys and have tiny screens that let users confirm transactions and take action without using the internet.

Because the private keys that stand in for a user’s cryptocurrency wallet can be stored in a hardware wallet and are secured by a secure chip, they never leave the wallet and provide security. When sending or receiving crypto tokens, the device is linked to another device, like a computer or smartphone, and the user directly authenticates the transaction.

Users are prompted to enter a “recovery phrase,” a string of 24 words that serve as their wallet address when a hardware wallet starts up. They can use it to restore their Ledger account on a new wallet if their device is damaged, lost, or stolen.

The Ledger Nano X and Ledger Nano S Plus are two of Ledger’s most popular products. Both are small enough to fit in your pocket and can connect to phones or other devices to help individuals manage crypto transactions. The Nano X is also equipped with Bluetooth, making it easier to connect to a phone and manage crypto and nonfungible tokens.

Ledger Stax is a device about the size of a credit card with an E Ink display that can connect with Bluetooth and is now available for pre-order. It has the same security as every other Ledger device, but the screen is much bigger, so users can see what they’re doing and change pictures on the touchscreen.

Customers can also use the company’s app, Ledger Live, to buy, sell, and trade crypto directly or connect their wallets to other apps using blockchain technology.

There can be a lot of security problems in the crypto business, and there have been a lot of stories about hackers and scams. Because of this, users have been looking for better ways to protect their tokens, which has helped Ledger’s bottom line.

Most of Ledger’s sales have come from the recent chaos in cryptocurrency exchanges, such as the sudden fall of FTX Trading Ltd. and its bankruptcy. When FTX shut down, many people with their assets on the platform couldn’t access them anymore. This caused some people to take their assets off of other exchanges. “Not your keys, not your crypto” is a cry that is often heard in the crypto community.

“Suddenly people were like, ‘Wow, to leave crypto on an exchange is actually dangerous,'” Ledger CEO Pascal Gauthier told Bloomberg in an interview. “And 2023 is even better for us because you can’t even leave money at a Swiss bank anymore.”

The company made the most money in November, right after FTX left. Because of this, Ledger Live’s income doubled from one year to the next. Ledger also said it stores over 20% of all cryptocurrencies and 30% of all nonfungible tokens worldwide.

Gauthier said that Ledger will use the new money to grow its network of distributors and make more and better products. This will help the company keep up with the growing demand and grow its business.

• The launching of latest organizations will largely decentralize blockchains, said Steven Goldfeder, Chief Executive and Co-founder of Offchain Labs.
• Owners of the tokens will have the ability to vote on ideas presented to the DAO and determine how future development and governance choices will be made.

Offchain Labs Inc., the company behind the Ethereum blockchain scaling solution Arbitrum, recently announced that it will airdrop, or give away for free to chosen individuals, its new token, $ARB, a new cryptocurrency that can be used to vote on two of its blockchain products.

In addition, the business announced the formation of the Arbitrum Foundation and a DAO, or decentralized autonomous organization, to oversee the development of Arbitrum One, its primary blockchain, and Arbitrum Nova, a blockchain geared for social media and gaming.

According to Steven Goldfeder, CEO and co-founder of Offchain Labs, introducing new organizations will significantly decentralize blockchains. Steven Goldfede also stated, “Through the community airdrop, the delegation process, and the introduction of the Security Council, community participation and control is at the forefront of today’s announcement, and the requirements for receiving a share of Arbitrum governance have been crafted meticulously, optimizing for the longevity of the ecosystem and community.”

Blockchain technology and Web3 rely on several copies of distributed ledgers to cryptographically secure peer-to-peer network transactions from potential manipulation. Decentralized applications, or dapps, which operate using self-executing code across networks without the need for central servers, are also made possible by its use. Developers have used cryptocurrencies and tokens to create decentralized applications, including social networks, games, and complete decentralized economies.

The tokens’ owners can vote on ideas presented to the DAO and determine how future development and governance choices will be made. Goldfeder claims that this will further decentralize blockchain development and decision-making in the future. On March 23, the tokens will be withdrawn.

Goldfeder stated, “Looking ahead, we’re moving closer and closer toward a decentralized financial system, with the Arbitrum technology at the forefront of that.”

To speed up transactions and reduce fees, Ethereum utilizes “rollups” technology, which Offchain Labs Arbitrum creates. Layer 2 solutions perform transitions independently of Ethereum on their blockchain, group them into “rollups,” and then send them back to Ethereum, where they can all be run simultaneously.

According to DefiLlama, Arbitrum One is the top Layer 2 scaling solution for Ethereum, with about USD 1.67 billion in total assets locked in the network. In August 2021, Offchain Labs received USD 120 million in financing to launch the Arbitrium One mainnet, and Reddit, the largest internet social media platform, selected Offchain Labs’ scaling solution for its blockchain-based “Community Points” program.

Offchain Labs also introduced Arbitrum Orbit, a Layer 3 scaling solution that will enable programmers to create their own scaling networks that will roll onto Arbitrum simultaneously with the new foundation and the DAO.

Orbit gives programmers access to extensible rollup blockchains that operate similarly to the other blockchains in Arbitrum. For instance, they could strive for Layer 3 AnyTrust chains using the minimal trust to allow high volume and low transaction costs similar to Arbitrum Nova, or they could construct Layer 3 Rollup chains with Ethereum-level security to optimize scalability. Since the main engine of Arbitrum Nitro serves as the foundation for all these solutions, developers can create their own Layer 3 solutions to meet the requirements of any particular application.

The new scaling solution entirely supports the Ethereum virtual machine, allowing programmers to create and run smart contracts. The business added that it will support the forthcoming release of Arbitrum Stylus, which will enable developers to write code for dapps in programming languages other than Solidity, such as C, C++, and Rust, for their chains.

Steven Goldfeder said, “The launch of Arbitrum Orbit marks another step in the goal of growth through ecosystem expansion by way of onboarding new developers. With today’s announcement, developers now have another tool allowing them to not only build their own smart contracts, but to also launch their own L3 chains leveraging the best technology available.”

• The largest bank serving the cryptocurrency sector after Silvergate, which last week announced its impending liquidation, is Signature.
• According to the article, Signature, unlike Silvergate, did not offer any loans to the cryptocurrency industry or have any associated loans; however, due to its connections to cryptocurrency, its price fell along with the general market.

The New York State government recently closed the New York-based Signature Bank, making it the third bank to close this week after Silicon Valley Bank and Silvergate Bank.

In accordance with Section 606 of the New York Banking Law, the New York Department of Financial Services took control of Signature Bank to safeguard depositors. The bank’s receiver was chosen to be the Federal Deposit Insurance Corp.

As of December 31, Signature Bank had USD 110.36 billion in total assets and USD 88.59 billion in total deposits. The number as of today is unknown.

Superintendent Adrienne A. Harris, said in a statement that “DFS is in close contact with all regulated entities in light of market events, monitoring market trends and collaborating closely with other state and federal regulators to protect consumers, ensure the health of the entities we regulate, and preserve the stability of the global financial system.”

The Federal Reserve has offered to safeguard the funds of depositors in Silicon Valley Bank and Signature Bank customers, while allowing them to access their funds starting soon.

Even though the collapse of SVB is well known, there are fewer details available for Signature Bank. The only conclusion that can be drawn at this point is that the bank may have been shut down as a preventative measure rather than because it was about to fall down instantly.

While the bank had exposure to cryptocurrencies and FTX, the specifics of how Signature Bank got to this point have yet to be fully disclosed.

In a piece published on March 4, Amy Castor and David Gerard discuss how, in terms of the U.S. cryptocurrency market, Signature Bank was the East Coast’s Silvergate and that a sizeable portion of its deposits was linked to cryptocurrencies. Earlier this year, the bank reportedly tried to exit the cryptocurrency market.

According to the article, Signature, unlike Silvergate, did not offer any loans to the cryptocurrency industry or have any associated loans; however, due to its connections to cryptocurrency, its price fell along with the general market.

The failure of Signature Bank coincides with ongoing media coverage of SVB’s recent closure, the second-largest bank to fail in U.S. history. The downfall of three banks in a week has fundamentally trembled the market. Still, the Federal Reserve has moved to guarantee depositor funds to prevent what Y Combinator Chief Garry Tan warned could become an extinction-level event for startups.

The underlying macroeconomic factors that led to this situation are still present and known by investors. Some people are concerned that SVB and Signature Bank may only be the beginning of the future.

• Proven, a maker of zero-knowledge proofs, said that it has raised USD 15.8 million for its “Proof of Solvency” solution, which lets crypto sector companies openly display their crypto holdings.
• Framework Ventures, which specializes in blockchain technology and decentralized finance, led the round, with participation from Balaji Srinivasan, Roger Chen, and Ada Yeo.

Proven, a developer of zero-knowledge proofs, revealed that it has acquired USD 15.8 million in initial investment for its “Proof of Solvency” solution, which enables crypto sector enterprises to show their crypto holdings publicly.

Framework Ventures, specializing in blockchain technology and decentralized finance, led the round, with participation from Roger Chen, Balaji Srinivasan, and Ada Yeo.

Using what is known as zero-knowledge proofs, Proven’s technology enables businesses to demonstrate to auditors and clients that they are being truthful about their crypto holdings. This approach uses cryptography to verify that the underlying data is faithful to the source without giving extra secret data to the verifier, allowing for transparent auditing.

Proven assists crypto exchanges, asset managers, stablecoin issuers, and custodians in demonstrating their solvency to consumers, lenders, and regulators on whatever schedule is required. Their balance sheets may be audited without revealing them or any other critical information to the public.

Although most proof-of-reserve systems display just the bare minimum of a company’s assets, Proven’s technology enables companies to showcase assets and liabilities without disclosing how the numbers were audited.

Richard Dewey, the co-founder of Proven, said, “We designed Proven to be a win-win solution that enables customers and regulators to have confidence in their exchanges, lenders, asset managers, and stablecoins while at the same time protecting sensitive customer information. We have received incredible support from many of the established participants in the crypto ecosystem and are looking forward to onboarding many more firms in the coming weeks.”

The cryptocurrency business has been periodically shaken by organizations attacking consumer cash and perhaps having poorly audited assets. This became abundantly clear with the fall and bankruptcy of FTX Holdings Ltd. and its sister business Alameda Research, which occurred when it was exposed that the two companies had falsified their financial statements.

Richard Dewey stated, “The last few months have highlighted an issue that has long plagued both traditional financial and digital asset firms – efficiently fostering trust with customers while maintaining a necessary level of privacy. The absence of this has led to significant distrust and, of course, contagion.”

Being one of the major publicly listed cryptocurrency exchanges, Deloitte Touche Ltd. audits Coinbase Global Inc. to offer evidence of reserves and liabilities. But, Deloitte and the other four major accounting firms are unwilling to provide their services to private crypto companies. Proven asserts that its technology will allow auditors and regulators in the sector to develop confidence.

The Proven team comprises several veteran quantitative traders and portfolio managers from prestigious firms such as Jane Street, Two Sigma, Pacific Investment Management Company, and Elm Partners. The firm has experience handling audits and understanding customer and regulator issues on asset transparency and risk.

Pilot partners of Proven include the cryptocurrency exchange Bitso, the stablecoin TrueUSD, and the cryptocurrency credit solution M11 Credit. It collaborates with them to generate consumer trust by using its technologies to confirm its assets and liabilities.

• Cryptocurrency exchange Coinbase Global Inc. has unveiled a new “Wallet-as-a-Service” offering that would enable businesses and developers to integrate cryptocurrency wallets into Web3 applications quickly.
• Coinbase calls Wallet-as-a-Service a “strong tool for organizations looking to tap into the possibilities of Web3,” allowing gamers to swap in-game items and cash or create new token-based loyalty programs.

Cryptocurrency exchange Coinbase Global Inc. has unveiled a new “Wallet-as-a-Service” offering that would enable businesses and developers to integrate cryptocurrency wallets into Web3 applications quickly.

In tandem with the introduction of blockchain technology and decentralized economies, the rise of Web3 has sparked an increased commercial interest. Web3-based digital assets, such as nonfungible tokens, can represent in-game products, loyalty tokens, and virtual tickets, among other things.

Retailers have utilized NFTs to engage consumers in loyalty programs by providing them with free items, discounts, VIP gated access, and more. Starbucks Corporation has been exploring a program that offers in-store bonuses through its Odyssey loyalty rewards program.

Wallet as a Service is a “powerful tool for companies wishing to tap into the possibilities of Web3,” according to Coinbase, whether they’re enabling gamers to exchange in-game items and cash or developing new pathways for token-based loyalty programs.

Developers and users may find storing and interacting with these digital assets complex since they are housed in crypto wallets, which frequently need specialized expertise or third-party applications. Wallet applications can be challenging to comprehend, need complicated codes to secure crypto assets, and impede user adoption.

By utilizing Coinbase’s new Wallet as a Service offering, businesses can quickly incorporate scalable, secure wallets straight into their products without these complications. The product lets developers personalize on-chain wallets for their end customers and provide them access using simple username and password combinations.

Some other wallets demand users to remember intricate 24-word seed phrases for recovery and lengthy, convoluted wallet addresses of 26 to 35 random characters for receiving and moving assets, which can be exceedingly inconvenient. By allowing developers to eliminate this and simplify the complexity of the wallet within their apps, consumers can enjoy the app’s experience.

As the wallet service links with Coinbase, customers do not need to be concerned if their device is hacked. Coinbase WaaS is powered by multiparty computation encryption; thus, the assets saved on the device are still secure. The firm also supports automatic backups with MPC, so even if the user’s device is lost or stolen, the key to their Web3 wallet may be preserved safely.

Web3 firms have already begun development with the Coinbase WaaS, including NFT portfolio tracker Floor, play-to-earn blockchain game Moonray, Web3 development framework Thirdweb, and privacy-centric ownership proof application Tokenproof.

Alfonso “Fonz” Olvera, founder and chief executive of Tokenproof, said, “Tokenproof is on a mission to make Web3 more accessible to a new wave of users. Individuals will no longer have to come with knowledge of how the blockchain works to interact with the brands they love. When users download the Tokenproof app, we’ll help welcome them into Web3 by creating their first wallet, which will be powered by Coinbase.”

Coinbase’s outreach to developers and companies continues with this release. In February, the business introduced Base, a developer-friendly Ethereum Layer 2 blockchain network that enables quick deployment of low-cost, scalable Web3 decentralized applications.