The Road Ahead for Cryptocurrencies: Insights for the Next Five Years

The Road Ahead for Cryptocurrencies: Insights for the Next Five Years

May 16, 2023

In recent years, cryptocurrencies have been gradually taking over the world. The major causes for the increased use of cryptocurrencies are growing money laundering scams, distrust in centralized financial systems, and enhanced competition in the banking sector. Besides, this DeFi wave received a boost during the covid outbreak. More usage of technology and digitization led to rising awareness of cryptocurrencies and utilization of related infrastructure, such as crypto wallets.

Yet some questions still loom over the minds of the general public and prospective crypto investors. In the near future, will the value of cryptocurrency bitcoin soar or fall? Will crypto wallets be regulated? Will more people invest in cryptocurrency? And many more..

Here, we review the main predictions and trends that are expected to follow in the next five years and so.

Top Projections for Cryptocurrency Sector

If we look at the near past, the year 2021 proved favorable for cryptocurrency, and since then, its appeal remains strong. Since the beginning of 2021, the value of digital currency increased by almost 70%, propelling the total market value of cryptocurrencies above $2 trillion.
(Source: CNBC)

However, cryptocurrency traders had a difficult time by the end of the year 2022. This was largely due to worldwide scams and legal uncertainty.
Yet, despite these gloomy events, financial analysts strongly believe that cryptocurrency will usher in the next phase of industry expansion. Despite the significant trade volatility, experts believe that cryptocurrencies will rebound with greater force in 2023 and prosper in the upcoming years.

Here are the key crypto trends to look out for:

1. Mass Adoption of Crypto wallets

To begin with, the only purpose of wallets was to serve as a vault to hold cryptocurrency. Yet today, some of the wallets have their native tokens, which are also given as rewards in giveaways and similar other contests. Online crypto wallets can act as potent contributors to the decentralized web (Web3) once they advance beyond being a storage safe to hold financial assets. Some of the latest digital crypto wallets have opened secure and common portals into the fascinating world of DApps and other Web3 apps.

On one hand, the worldwide popularity of cryptocurrencies is driven by increased internet usage, while on the other, more and more users are turning to crypto wallet apps with enhanced smartphone usage. Users are increasingly using these wallets, because of their convenience and easy accessibility for storing, receiving, and sending crypto assets.

The strong security offered by cryptocurrency wallets is anticipated to spur demand, furthering the market expansion. The number of people using crypto wallets increased to 84.02 million in August 2022, from 76.32 million in August 2021. The rising acceptance of cryptocurrencies can be ascribed to the growth of crypto wallets’ usage. By 2030, the market for crypto wallets is expected to reach USD 48.27 billion. (Source: Grand View Research)

2. Worldwide Regulation and Legislation

Before 2022, the blockchain and cryptocurrency industries continued to face a huge challenge regarding a lack of regulatory guidelines. The development of legislation and rules around cryptocurrency got its kickstart in 2022. Giant economies like the US, EU, Canada, the UK, Australia, and Japan are spearheading defined crypto regulations and related laws.

Besides, some of these nations also allow merchant commerce using cryptocurrencies. Meanwhile, countries like India are in the process to set similar legislation.

3. Increased Investments in Crypto Assets

With the creation of user-friendly wallets to secure and transact crypto assets, there is going to be a definite rise in the number of crypto users worldwide. Moreover, the regulations and related clarity predicted in the next few years will encourage people to invest in cryptocurrencies and NFTs.

About 500 million people will hold Bitcoin as a key cryptocurrency by the end of 2023, according to Ric Edelman, the founder of the Digital Assets Council. (Source: The News & Observer)
Even if the crypto sector expands at the slowest possible rate, it might reach as many as 1.2 billion people by 2025. (Source: CryptoSlate)

4. DAO and DeFi emerging as the biggest growth areas

Decentralized autonomous organizations (DAOs) and Decentralized finance (DeFi) are two fastest-growing areas of cryptocurrency, that are likely to take a huge leap in the next few years. With DAOs as a new internet community and DeFi as the middlemen-free financial landscape, the use of cryptocurrency is expected to be propelled to greater heights.
It is worth noting that in 2021, deposits into DeFi services crossed $200 billion.

(Source: CNBC)

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5. Others Coins can outdo Bitcoin

Today, most of the tokens are based on Ethereum, which implies there is a likelihood of Ether outdoing Bitcoin in the near future. This is clearly because the former offers a much wider range of utilities and has already witnessed popularity, pushed by the rise in NFT sales. In spite of being the first and oldest cryptocurrency, BTC can be overtaken by new ones in the upcoming years. Yet, Bitcoin can come up with advancements, stirring a strongly competitive environment with newer blockchains.
According to a market estimate, the NFT market can grow up to $231 billion in value by 2030.

(Source: Forbes)

6. Likely Disappearance of Meme Coins

Meme coins are known to be quite erratic and are mostly fueled by community hype and social media. No doubt, some investors have profited significantly from meme coins, and many others have lost money as a result of their extreme volatility. Besides, as NFTs become assets of real-world value with market development, meme coins can completely vanish.

7. Stronger hold of Stablecoins

Stablecoins are the third generation of cryptocurrencies. These include USD and CBDCs (Central bank digital currency) like E-yuan. Currently, there are hundreds of stablecoins in use. Being tethered to fiat currencies, stablecoins represent a good alternative for people who wish to tread a cautious path toward the DeFi sector. In other words, they represent a balance between conventional cryptocurrencies and typical fiat currencies.

8. Emergence of New Use Cases

With greater demand of cryptocurrencies and regulations in place, DeFi can change the face of several industries and lead to new blockchain use cases. For instance, data related to healthcare, real estate, credit rating, etc, can be tokenized as data on blockchains, and the related apps be converted into DApps!
Presently, utility NFTs are venturing into virtual properties, in-game items, identities and credentials, insurance, event ticketing, cause marketing, and reward programs, which are set to take a larger scale in the next five years.

Summing Up

In a nutshell, we can say that the upcoming decade will be an era of cryptocurrency trading, NFT infrastructure, Web3 commerce, and more. While the first half of 2023 did present a dismal outlook for stocks, assets, etc., the second half would see a turnaround. The next generation is set to embrace a decentralized economy to its full potential and thus, boost its value across the globe.

So, there will be no centralized monopolies but greater power and self-sovereignty in the hands of the general public. When you move through the internet, you will own whatever you possess and manage it solely.

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Token Allowance: Understanding Token Permission in Blockchain

Token Allowance: Understanding Token Permission in Blockchain

May 15, 2023

The increasing popularity of Decentralized Finance has created a buzz around the notion of “Token Allowance” leaving many users captivated by what it entails.

You probably have not realized it, but if you have ever done any transaction using the Defi app, you unwittingly grant permission to Token Allowance. It is a mandatory step allowing the DApp to do something on the user’s behalf.

Token Allowance: Empowering Smart Contracts In Decentralized Finance

To perform a transaction on the Blockchain network user requires to give approval and confirm the transaction,

Allowance is the “Permission” that the user grants a smart contract to spend certain amount of tokens on their behalf, safely, on the Blockchain network. This smart contract includes the token transfer details like Token Amount, Recipient Address, and Permission Expiration Date. This permission ensures that token transactions are done only after the user’s consent.

The smart contracts belong to third parties like DEX or Protocol Relayer. The token allowance given to smart contracts comprises transparent and mutant rules. They help to decide the amount owners want to make available for a smart contract while having complete control over its operations.

It is one-time permission given to a third party on tokens to ensure that transactions remain controlled, unhindered, and become more secure for everyone.

Evolution and Adoption of Token Allowance: An Ethereum-Inspired Innovation

The Token Allowance feature is introduced by the Ethereum Blockchain based on the ERC-20 Token standard which provides developers with a framework to create and manage tokens, including feature implementation.

Within a short period, Token allowance gained huge popularity because of its usefulness in granting permission to spend tokens only after user consent.

As a result, it became widely acceptable beyond the Ethereum network, and other blockchain platforms started implementing the same feature based on their token standard.

For example

Binance Smart chain has its own token standard BEP-20 provides Token Allowance.

At present, all major Blockchains like Binance Smart Chain, Polkadot, TRON, Tezos, etc., have implemented similar features for controlled and secure transfers of value within the network.

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Types OF Transactions For Which Token Allowance Used

  • Decentralized exchanges (DEX): Use Token allowance on DEX to spend a certain amount of tokens on your behalf for trading.

  • Staking: Grant permission to staking pool using Token allowance and earn rewards without giving control of your tokens.

  • Subscription services: Pay for the subscription services using the Token Allowance feature that require recurring payments, and skips manual interruption.

  • Gaming: Allow the game to spend tokens on your behalf using this feature.

  • Crowdfunding: Widen the scope of secure crowdfunding by allowing contributors to grant permission to the campaign organizer to spend tokens on their behalf.

Demystifying Token Allowance

Let’s take the example of Uniswap- a popular and easy-to-use DeFi app.

Uniswap ( Automated Market Maker) enables users to trade tokens belonging to the Ethereum blockchain.

Suppose you have 50 DAI Tokens and swap them with BAT tokens.
Though with Uniswap, you can swap them in a matter of seconds ( thanks to its easy functionality), before the swap, you need to pass on the other transaction enabling the tokens to swap.

The allowance feature enables the smart contract to transfer tokens you have in the wallet. So, when you give “Allowance” to the smart contract, it spends tokens on your behalf ( without asking you to authorize the transaction).

Working Of Token Allowance

The Token allowance () function involves two arguments:

  • Owner: This function includes the owner address who grants permission for approve() function.
  • Spender: This function includes the spender’s address having permission to withdraw.

For example: Suppose user A wants to interact with a smart contract of any DeFi protocol to make any transaction, let’s say Compound.

In this situation, the interaction between two of them will be under the control of COMP protocol and will ask user A to provide access (or allowance) to specific tokens. When the interaction gets approval from the user, COMP will take control of these tokens and invest them in one of the pools of its protocol. As a result, it will release its blocked balance and the data that the user is interested in.

This process requires the permission of the user and volunteer access to balance. In case the access demand is unsolicited, the user can reject it.

Understanding The Importance Of Token Allowance

The Tokens are crypto assets in the blockchain network, and keeping them protected is the utmost priority. To keep tokens safe, Ethereum Blockchain introduced standardization for the tokens – ERC20 and ERC777 tokens. This standardization decides what type of functions these tokens will perform and what will be the standard structure for the smart contract.

One such function is the “Token Allowance” function which enables the token owners to grant permission to DEX, DeFi, and DApps for transactions, and third parties can access them with the owner’s consent.

The feature enables the automation of complex transactions and the delegation of authority to third parties. Also, contributes to improving the security of blockchain systems by eliminating the requirement of manual input and minimizing the risk of human error.

In simple words,
If the user wants to send a token through DEX or DApp, the allowance function enables them to execute other actions in the list without interrupting the current one.

Therefore, owners have the privilege to send their tokens to other addresses managed either by a machine or person and the smart contract.

Forms of Token Allowance

Token Allowance is granted in two forms: One is Exact Allowance, and the other is Infinite Allowance.

  • Exact Allowance: In Exact Allowance, the token owner sets the limit for the smart contract to transact the token.

  • Infinite Allowance: As the name suggests, there is no limit on transactions that smart contracts can transact with all the approved tokens.

Can Token Allowance Be Dangerous?

Yes, a Token allowance can be dangerous if used against the user’s will.
While using the Token allowance, you approve the third party to access your tokens for a specific purpose who can potentially sell or transfer them without your permission. If the third party is malicious, they could use these tokens for illegal activities for their benefit, leaving you stuck in a situation that is no longer possible to fix.

What Is The Solution?

You can reduce the risk associated with a token allowance, in the following ways:

  • Only grant access to trusted parties and with limited tokens.
  • Perform thorough research and vet the third party before letting them access your tokens.
  • Choose the wallet with multi-factor authentication and other security measures to protect the cryptocurrency holdings.

Wrap Up

The token allowance function helps to decide the transaction limit and maintain security while dealing with smart contracts. However, there can always be a threat. Therefore, when it comes to transacting funds on a decentralized platform, blindly trusting the projects is not advisable. In the case of loss, there is no support service to claim a refund. That’s why conducting a thorough analysis before revoking allowances to smart contracts is essential, so you can always stay prepared for unpleasant eventualities.

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Streamline your Crypto Experience: Top Ways to Use Crypto Wallets

Streamline your Crypto Experience: Top Ways to Use Crypto Wallets

Apr 26, 2023

The last few years have witnessed an increase in the number of crypto wallet users and their belief in the future of decentralized finance. Recent statistics reveal that there are more than 20,000 cryptocurrencies in usage and over 80 million crypto wallet users worldwide. This ratifies the fact that crypto wallets are more than a storage of public and private keys. Today, there are several ways to utilize a crypto wallet and if you still haven’t tapped into the vast potential and power of crypto wallets, go ahead and read about their top uses here:

1. Secure Access to Cryptocurrencies

Modern crypto wallets support several types of cryptocurrencies and also let you track your balance anytime. These wallets serve as a secure pathway for cryptocurrency storage. You can manage and access your balance and related information using your private key, which is stored in the wallet. While your assets actually exist on the blockchain, crypto wallets let you keep a check on your crypto holdings and monitor their equivalent value in different national currencies. Web3 wallets provide real-time information regarding conversion rates and the associated fluctuations in their values in fiat currencies. Depending upon the value of your crypto tokens, you can further make decisions to trade, swap, and make more investments.
Besides, crypto wallets have additional security features like two-factor authentication, backup and recovery options, etc.

2. Safe Storage of NFTs

NFT (Non-fungible token) is another booming area in the world of DeFi. Most of the Crypto wallets today support NFT storage and investment. These tokens are becoming a key component of the blockchain ecosystem. Blockchain technology enables the creation and validation of digital art and ownership for artists without the need for any third-party intermediary. You can buy, sell, and store NFTs while retaining a part of their ownership. To prevent theft of this digital asset, it is crucial to keep it safe and secure in crypto wallets, so it is accessible only by the private key.
NFTs are swiftly expanding to sectors like sports, games, fashion, and music.

3. Platform for Staking

Some of the crypto wallets let the cryptocurrency holders option stake a certain amount of their assets, in return for more tokens or similar rewards. It basically entails locking cryptocurrency holdings for a fixed time period just like you would keep your savings in a fixed bank account. This works through a proof-of-stake consensus mechanism, that facilitates new transactions and the addition of blocks in a blockchain.
Stakers generally provide large amounts of cryptocurrency as an insurance in return for validating fresh transactions. Crypto investors view this practice as a source of passive income and often support blockchain projects for enhanced efficiency and security of their operations. Popular crypto wallets generally extend a section of coins that are eligible for staking purposes.

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4. Platform for Trading

Cryptocurrency trading is one of the main reasons behind the increased usage of crypto wallets. Trading implies operations like purchasing and selling cryptocurrencies, that are usually executed from crypto wallets. In order to be good at trading cryptocurrencies, you need to have a good understanding of the market, just like trading stocks. However, unlike the wide-ranging fluctuations and volatility in stock and share markets, the value of cryptocurrencies escalates over the long term, albeit with short-term bearish trends. The first cryptocurrency, Bitcoin continues to be the most preferred and valuable one, even after over a decade of its introduction. So, trading is another way to earn through crypto investments.

5. Platform for Crypto Lending

One of the commonly used DeFi services is crypto lending, which is available on crypto exchanges and similar platforms. In this, the investors deposit their crypto assets on a DeFi platform and these are lent to borrowers in return for interest payments. DeFi lending primarily involves loan and borrowing services that are supported by smart contracts. Such loans are immediately granted and enabled by Web3 wallets. With DeFi lending, you can begin earning interest right away, and this interest generally compounds every minute. As opposed to centralized platforms, the deposit of collateral in DeFi earns interest even when tied to a loan.
Moreover, with the latest decentralized wallets like AnCrypto, you can lend and request tokens conveniently through the ‘chat-and-pay’ option, which lets you utilize usernames in place of long wallet addresses.

6. Gateway to DApps

The latest crypto wallets provide a gateway to a range of DApps. These decentralized applications extend art, entertainment, gaming, social media, blockchain-based voting, and financial services in the Web3 space. DApps can also be added as plugins to deliver adverts, monitor user behavior, and ask for crypto donations. These are likely to demonstrate enormous potential in healthcare, education, real estate, and predictive markets. Crypto wallets are typically connected to DApps using a feature called ‘Wallet Connect’. Once you have connected your wallet to a particular DApp, it can send transaction requests directly to your wallet. Nevertheless, note that the wallet itself isn’t associated with any DApp, which is why the latter cannot access your private key.

Among the modern multi-chain crypto wallets, AnCrypto is one such wallet that offers a secure browser gateway to a host of DApps and lets you operate without switching out of the wallet.

Conclusion

Crypto wallet serves as a useful tool for both novice users as well as seasoned DeFi experts. As explained above, it is a secure place to store as well as trade crypto assets. Being a key contributor to a decentralized economy, this sort of wallet is an excellent way to safeguard access to digital money, which is present on blockchains instead of vulnerable centralized servers, computers, laptops, or smartphones. Non-custodial crypto wallets can be thought of as bank accounts, that are managed, operated, and authorized by users individually. So, whether you experience a loss or gain in your crypto assets, is solely determined by your actions. Yet, the growth and popularity of Web3 wallets are proof of the rising trust and credibility of crypto enthusiasts.

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What Is Ownership In Terms Of Blockchain?

What Is Ownership In Terms Of Blockchain?

Apr 24, 2023

Blockchain technology is poised to redefine how we store and transfer our assets online. Unlike traditional finance systems that rely upon trusted intermediaries ( like banks) to work, Blockchain technology uses a decentralized consensus mechanism and cryptographic algorithm to execute the transactions.

One key concept of blockchain garnering a lot of attention is Proof Of Ownership which means the ability to transfer and control digital assets on the Blockchain network.

Blockchain technology works on keeping personal information private and allowing users to manage their data ownership and monetization. Therefore, only users decide how to collect, store, sell, or buy their digital assets instead of the intermediaries doing it for them.

Blockchain Ownership V/S Traditional Ownership

Ownership is a strong motivator for customers to create a deep connection with the product. The idea of User Ownership made Bitcoin and Ethereum a big success with an experiment to express data ownership in terms of code. Unlike the Traditional system, these technologies made first time possible for people to transact without needing intermediaries, who only make the transaction expensive, slow, and illiquid.

Use Case For Ownership In Blockchain

Traditional Ownership Process

If you own a car, you get a legal title to the car that proves your ownership. The record of legal title is maintained with a government agency like the Department of Motor Vehicles (DMV) and serves as a way to enforce your ownership rights. And, if you want to sell the car, you need to enter into a contract following a third-party responsible for enforcing ownership by allowing owners to trade their assets and enter into agreements with others.

Blockchain Ownership Process

The process involves creating a digital title for the car, stored on the blockchain. The digital title contains relevant information about the car, such as owner’s details, car model details, and Vehicle Identification Number (VIN).

When someone buys a car, the ownership of the digital title gets transferred to the new car owner on the blockchain network. Because detailed records maintained on Blockchain, it is impossible to alter or forge, providing a clear and transparent ownership record. It also eliminates the need for a third-party intermediary, such as a DMV, to verify and record the transfer of ownership.

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How Does The Blockchain Ownership Work?

In the blockchain network, digital assets represented as unique codes and tokens, securely stored in a digital wallet using Public and Private keys.

The public key represents the network address used to transfer or receive the asset. On the contrary, a Private key helps to manage and access the digital assets stored in the digital wallet. As the name indicates, the private key remains private to its owner for security reasons.

If the user wants to transfer their digital assets to someone else on the Blockchain network, they can create a transaction that specifies the recipient’s public key and the asset details. After that, the transaction broadcasted to all nodes on Blockchain for confirmation.

The confirmation process involves a complex algorithm to validate that transaction is genuine and adheres to the rules/regulations of blockchain. Once the transaction is confirmed, the block gets added to the existing blockchain network.

After this, the asset ownership can be transferred using the recipient/’s public key, and he will become the new owner of an asset. The blockchain transaction is immutable, so once recorded, they cannot be altered.

NFTs: Unlocking New Opportunities For Blockchain ownership and Monetization

Lately, NFTs have been all the rage, but obviously, for good reasons. NFTs are digital tokens that represent their unique way of trading or owning digital content on the Blockchain network.

How does the ownership work with NFTs?

NFTs are Non-Fungible tokens, which, once created, cannot be replicated or replaced by other tokens having the same value. NFTs created using blockchain technology represent anything from real estate to artwork and games. When users purchase an NFT, they are buying digital asset ownership.

This metadata is encoded in the token and includes the details like:

  • Asset Name.
  • Asset details.
  • Ownership History.

The metadata verifies the NFT authenticity and ensures that ownership remains transparent and immutable.

Monetize The Digital Content With NFT

One of the amazing things about NFTs is that they let creator monetize their digital content. Therefore, if the creator sells the NFT, they can retain the ownership of their property while still earning revenue from the token sale.

Monetization will open new doors for the creator by allowing them to make living out of their work.

Future Of Blockchain Ownership: Finance And DeFi

Blockchain promises an incredible future with ongoing developments. In the upcoming years, there will be increased adoption for different purposes like financial transactions, identification verification, and supply chain management for secure ownership solutions.

More Decentralized Finance (DeFi) Solutions For Asset Control

As decentralized finance continues to grow, more blockchain-based finance products will come for greater asset control and ownership. The technology will bring more decentralized solutions for identity verification, thereby providing better transparency in the financial system. Moreover, smart contracts will automate the ownership transfer process and ensure the proper enforcement of ownership rights, facilitating the secure asset transfer between the parties.

  • Decentralized Ownership Models

    • The decentralized ownership model may introduce shortly in which the asset ownership can distribute among the organization or network of people instead of belonging to a single entity. It may provide better decentralized and democratic control over the asset with higher security and trust in the ownership records.

  • Integration of Multiple Technologies

    • Blockchain technology integrations with other emerging technologies like IoT, Artificial intelligence can be another potential future trend for enabling automated ownership transfer and multiple ownership arrangements.

    Take Away

    In today’s world, assets are highly valuable, but at the same time, vulnerable. Blockchain ownership offers a powerful solution by providing individuals with complete control over their digital assets. It promotes transparency, authenticity, and security, as a result, trust between parties is strengthened, and transactions become more traceable, which overall improves the user experience.

    Opt for Blockchain Ownership to take control of your digital assets in your hands, and keep them protected like never before!

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NFT Ownership & Copyright | Unveiling the Enigma

NFT Ownership & Copyright | Unveiling the Enigma

Apr 18, 2023

By unlocking the new realm of creativity, NFTs empower people to push their boundaries and monetize their work! But amidst all the hype, one question looms big: Are you the owner of your creations?

Buying Myself Back: When does a model own her image?
Reflecting on working in the modeling industry, Emily Ratajkowski – the famous model and writer, created her own NFT, putting effort into reviving the usage of her likeness.

Many media stories are on fire with reports of tweets, artworks, and other digital content making millions of dollars when represented as NFTs. But one thing you should know,

Artworks (digital or otherwise) are not equivalent to NFTs- just because something looks like a duck and quacks like a duck- not necessarily a duck!

Saying in simple words- NFT, a Non-Fungible Token is a tokenization of a digital asset.

Digital assets can represent anything from commodities to real estate, coins, shares, audio, video clips, in-game items, events, documents, and more.

And, Tokens are programmable digital units of value maintained on a digital ledger, aka Blockchain.

Anything can be digitalized ( converted into digital form) and minted as an NFT.

So, what makes the NFTs unique from the other digital tokens?

The main difference between Non-Fungible tokens and Fungible Tokens is interchangeability ( or lack thereof ). Fungible tokens such as cryptocurrencies are interchangeable with other tokens having identical units with a difference in value.

NFTs, on the other hand, have attributes of originalities and scarcity like unique ID, and metadata which no other token can replace.

The token is what makes an NFT unique!

Each NFT is unique, with its own set of strings ( called a hash) representing its unique position in the Blockchain, on which minted and the token into which embedded. Anyone can access and track NFT as it serves as Proof Of Ownership & Certificate Of Authenticity. However, NFT only governs the ownership of tokens, not underlying IP Rights.

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NFT Ownership and Its Connection With Intellectual Property- Clearing the Confusion

Ownership of NFT and ownership of Intellectual property with which NFT is associated- have critical distinctions.
When someone buys NFT linked to particular content, they have not acquired the ownership of intellectual property rights of said content.

Under Section 106 of the U.S. Copyright Act- A copyright owner possesses exclusive rights to recreate, create derivative works of, perform, showcase, and distribute the copyrighted work.

In general, The purchaser of NFT does not get all the copyrights to recreate, make derivatives of, or distribute the original content or asset unless having explicit permission from the seller.

So, What Rights Does NFT Buyer Get?

There is widespread confusion that when a buyer purchases an NFT, they acquire the underlying asset and all its accompanying rights.

However, they are just purchasing the metadata associated with the asset, not the asset itself or its commercial rights.

Here Is An Example-

If you buy a Marvel comic book, you own a physical copy. You can read the book and sell it, however, owning a book does not grant you the right to create Marvel merchandise or use it to make Marvel movies.

A recent incident involving Spice DAO demonstrated potential pitfalls of its structure when it announced plans to create Dune NFTs after buying the popular Dune Bible Story for a whopping $ 3.04 Million, later discovered that they are not legally entitled to do so, leading to the public embarrassment.

To make ownership evident,

Dapper Labs, a popular NFT Platform, created an NFT license, available for anyone, stating that NFT sellers can choose to outline what rights the buyer can or cannot have.

The license distinguishes the content associated with NFT from the NFT token. It clarifies that after the purchaser receives-

    • The personal license of use and display NFT.
    • Commercial license to create NFT merchandise.

In other words, the NFT license only suggested the terms and conditions that sellers and buyers can follow together as they find appropriate.

Ownership rights to the buyer can vary across different NFT projects, as no such effective protocol in the blockchain network includes the copyright terms in the token itself. NFT ownership works on a smart contract- not readable by humans and does not include actual legal entitlements or relationships.

Only Creator owns the IP rights, meaning they can retain the copyrights of the asset sold, and the buyer is granted a license to use that asset.

Know about NFT Ownership’s Terms and Conditions Before You Make A Purchase: Be Mindful of Legal Considerations

It is not always easy to locate the Terms & Conditions demonstrating the NFT ownership rights.

Some projects like Cryptopunks and Azuki do not mention the ‘Terms & Conditions’ of NFT ownership on their website. Other projects may have contradictory terms or only display copyright terms in their Discord server.

Conduct thorough due diligence and understand the terms of the NFT purchase. Breaching terms and conditions can result in legal claims against the buyer.

NFTs & Smart contracts are undoubtedly revolutionizing the way we think about ownership rights the buyer gets with NFT, however, the legal effectiveness is still a debatable topic.

According to section 101(3) of the Copyright Ordinance (Cap. 101 of the Laws of Hong Kong), similar copyright statutes in other jurisdictions like the US, UK, and Australia, an assignment of copyright is only valid if it is
(i) in writing
(ii) signed by or on behalf of the assignor.

By staying informed about the legal landscape and seeking professional advice when necessary, buyers and sellers can make informed decisions about how to navigate this exciting new world of digital assets.

AnCrypto Wallet: Setting New Standards For NFT Management

Hereafter as you have secured your NFT, the next step is to manage it. Becoming a popular go-to choice for NFT lovers, the wallet makes instant sharing and receiving of NFTs simpler for everyone.

It’s just the scratch of the surface- the wallet will soon be releasing a game-changing feature that lets anyone send/receive NFT in Chats. Plus, with the support of multiple blockchains, the wallet is an ideal choice for anyone looking for easy NFT management.

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Busting Myths about Cryptocurrency & Decentralized Wallets

Busting Myths about Cryptocurrency & Decentralized Wallets

Apr 17, 2023

Cryptocurrencies have been here for a while now. And decentralized wallets are hailed as the driving force behind fast and easy crypto transactions. However, despite their growing popularity, DeFi wallets are terribly misunderstood in some aspects.

While, on one hand, the decentralized financial systems are favoured because of their non-intermediated and low-cost transactions, on the other hand, the people are skeptical of its high energy requirements and price fluctuations. As more and more people consider DeFi trading, it’s important to examine the common misbeliefs surrounding it and uncover the truth about cryptocurrency.

Myth 1: Crypto trading is unlawful

The very first question that comes to a novice’s mind is: “Is crypto trading illegal?” This is neither completely false nor entirely true, yet among the most prevalent cryptocurrency myths and realities. The fact is that crypto trading and related transfers are banned in certain countries like China and Turkey, the big wigs like UK, US, and the EU have given it legal status. Besides, several countries like India are anticipated to devise a whole framework for cryptocurrency transactions. Experts speculate that the developing nations are set to benefit from and embrace crypto trade the most, because of its inherent decentralized and inflation-resistant nature.

Myth 2: Cryptocurrencies have no real-world value

The value of any asset is determined by its supply and demand. Yet, sometimes people base it on the lack of its tangible or physical equivalent. Cryptocurrencies will retain value until people continue buying, selling, and exchanging them. And as the remaining countries assign a legal status to these digital currencies, the stage is set for its widespread e-commerce acceptance.

Myth 3: Decentralized wallets are not secure

The newbie crypto investors often wonder whether DeFi wallets are vulnerable to hacks and how safe is cryptocurrency? In fact, crypto transactions are more secure than conventional financial ones, especially when done on exchanges or platforms that adhere to best practices for security and privacy. Though no ecosystem is fully immune to security breaches, most of the major cryptocurrency platforms and DeFi wallets utilize robust security controls, that go beyond the encryption of digital wallet key encryption and multi-factor authentication. It is worth noting that the Bitcoin network hasn’t been attacked since its inception in 2009. Another aspect that prevents vulnerabilities in crypto networks is the involvement of smart contracts, which makes it very difficult to steal tokens and other assets.

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Myth 4: DeFi wallets are only used for illegal transactions

Although the idea of anonymity and lack of regulation in cryptocurrencies is supposed to entice criminals, these have caused no such spike in criminal activities or financial crime. Things like money laundering, bribery, underground markets, and corruption have been happening with fiat currencies for ages. So, similar to fiat money, cryptocurrencies can be used for both legal and illegal transactions via DeFi wallets and other such means.

Myth 5: DeFi transactions are not traceable or recoverable

Despite the anonymity of cryptocurrency and associated transactions, these can be traced by digital forensic experts. Certain sophisticated software tools and protocols are used to review, identify, and analyze the originator and recipient of transaction activity. In part, this is made possible by blockchain technology that holds the records of such transactions. So, while the DeFi system offers privacy, it can be tracked down in case of high-profile urgencies.

Myth 6: Crypto Trading is a sort of gambling

One major reason behind this assumption is the price volatility of cryptocurrencies. Yet, people tend to overlook the fact that over time, the national currencies have shown a declining graph in terms of value and purchasing power, whereas the value of cryptocurrencies tends to rise over a long period of time. For instance, bitcoin has more or less consistently shown an increasing trend since 2010.

Myth 7: Cryptocurrencies, Digital assets, and Blockchain are interchangeable terms

Many people perceive cryptocurrencies, digital assets, and blockchain as the same thing. While all of these are co-related and interdependent, yet are completely different concepts and things. Blockchain is basically the technology that facilitates crypto transactions. It is visualised as a distributed ledger, made up of blocks linked by cryptographic functions. Cryptocurrency is a sort of electronic money that can be exchanged, transmitted, and received through a blockchain and secured by encryption. Finally, ‘digital asset’ is a broader term that includes all types of valuables and entities that exist in electronic forms, such as cryptocurrencies, NFTs, DAOs, etc.

Myth 8: DeFi cannot compete with traditional financial systems

The rising popularity and espousal of DeFi are proof that it poses a challenge to existing conventional financial systems. To bring transparency, efficiency, and cost savings in transactions, several organizations have adapted to the crypto space. No doubt, it is a task for the governments to let go of the fiat currency system, DeFi can emerge as a worthy ally to complement traditional finance.

Myth 9: DeFi is a hoax

Unlike traditional web browsers, DApps are on decentralized peer-to-peer networks and require no central point of authority or control. The purpose here is to enable users to interact with all blockchains instead of using a third-party processor between them. As the DApp browser functions and hosting are decentralized, they cannot be regulated or censored, so DApps have been touted as an escape from government censorship or central authority.

Myth 10: Crypto Transactions are harmful to the environment

It is true that cryptocurrency mining requires energy, yet its environmental impact depends upon the type of energy source. A recent study in New York reveals that “Bitcoin is far more energy-efficient than traditional banking and gold mining”. In fact, renewable energy sources (solar, wind, hydro) take up a good part of the crypto-mining process. Currently, the environmental footprint of crypto transactions is nearly negligible.

Conclusion

The potential of decentralized finance is yet to be fully explored, yet the last few years have witnessed a great hike in the number of crypto investors. Besides, the prospects of blockchain technologies are proved by the fact that the investment in blockchain-related businesses increased from $3.1 billion to $25.2 billion between 2020 and 2021 only. So, the misconceptions about cryptocurrency market are already fading as blockchain is gaining a foothold across various industries. With more financial innovations like stablecoins, DeFi is already transforming the global economy and is geared to benefit underserved populations.

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