Category: Blockchain

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ASX Australia Blockchain Crypto News Regulation

ASX Scraps $250 Million Blockchain-Based CHESS Project

The Australian Securities Exchange (ASX) announced Thursday morning that it would scrap the blockchain-based replacement for its ageing Clearing House Electronic Subregister System (CHESS) settlement and clearing system. The blockchain-based system had been in development for seven years and had already cost ASX in the order of A$250 million.

The new system had originally been scheduled to launch in 2021 but was delayed several times due to ongoing issues throughout its development.

ASX’s use of blockchain had been seen globally as a significant milestone in the adoption of the emerging technology, however, today’s announcement now marks a further blow to mainstream confidence in blockchain, coming on hot on the heels of the calamitous collapse of FTX last week.

Blockchain-based Replacement Abandoned After Scathing Report

The decision to scrap the blockchain-based system comes after a scathing report from Accenture found it wouldn’t be up to the task of replacing the existing CHESS.

The report, which was commissioned in August of this year, found that the software to run the new system was only 63 percent complete, despite having been in development since 2015. 

Commenting on the findings of the report, ASX Chairman Damian Roche told the Australian Financial Review: 

“The path we were on will not meet ASX’s and the market’s high standards. There are significant technology, governance and delivery challenges that must be addressed…On behalf of ASX, I apologise for the disruption experienced in relation to the CHESS replacement project over a number of years.”

Damian Roche, ASX Chairman

Setback for Australian Financial Infrastructure

The new blockchain-based system was to form a crucial part of Australia’s financial infrastructure. Its abandonment is a significant setback, and means Australian investors will be relying on the now 25-year old CHESS system for the foreseeable future.

Speaking on the abandonment of the new system, Governor of the RBA, Phillip Lowe said:

“The announcement by ASX after many years of investment by both ASX and industry is very disappointing. ASX needs to prioritise developing a new plan to deliver safe and reliable clearing and settlement infrastructure.”  

Philip Lowe, RBA Governor

Back to Square One

ASX will now start over again looking for solutions to replace the CHESS system. ASX CEO, Helen Lofthouse said the search for new solutions will be conducted with an open mind, insisting it’s possible the new system may utilise some elements of the abandoned system, including using blockchain or some other distributed ledger technology (DLT):

“To be clear, the derecognition charge reflects the uncertainty of the future value of the current solution design. It does not prevent us from using parts of what we have already built if we determine there are adjustments we could make to our current design, which will enable it to meet ASX’s and the market’s high standards.”

Helen Lofthouse, ASX CEO

Former Westpac executive, Tim Whiteley, has been appointed by ASX to oversee the new search for a replacement for its CHESS system.

ASX says that until a suitable replacement is developed and rolled out it will continue to invest in and maintain the existing CHESS system.

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Blockchain Crypto News NFTs Polygon Social media

Meta Announces NFT Marketplace on Instagram

Instagram will soon have a built-in NFT marketplace according to a November 1 announcement by Meta, the company behind social media apps Facebook and Instagram.

According to a statement from Meta, the marketplace will function as an ‘end-to-end’ NFT toolkit, allowing users to create, showcase and sell their NFT from within the Instagram app. Creators will be able to sell their NFTs — or digital collectibles as Meta calls them — both on Instagram and on other platforms.

The new marketplace will initially be tested with a small group of hand-picked US-based creators, including Amber Victoria, Dave Krugman and Isaac ‘Drift’ Wright, with plans to eventually expand access to creators throughout the world.

Marketplace Designed to Support Creators

Meta’s Head of Commerce and Fintech, Stephane Kasriel says the purpose of the new NFT marketplace is primarily to support creators and make it easier for them to monetise their work.

In a Medium post published the day after Instagram’s new NFT marketplace was announced, Kasriel made the case for blockchain and other Web3 technologies that solves many of the issues creators face, such as segmented audiences across multiple platforms and difficulty monetising their digital creations. 

“[Blockchain] makes it possible for creators to build more direct and profitable relationships with their audiences because it gives them more ownership over their work with blockchain-based assets that can be monetized, like NFTs. Blockchain also gives creators the ability to take their content and fans with them to different platforms.” 

Stephane Kasriel, Head of Commerce and Fintech, Meta

Marketplace to Run on Polygon, No Gas Fees

The new marketplace will use the Polygon blockchain, which is an Ethereum layer-2 scaling solution, and will initially be entirely fee-less — Meta says for now it won’t charge fees to use the marketplace and will also cover any Ethereum gas fees. According to Kasriel Meta doesn’t plan to start charging fees until 2024. 

All transactions made through the Instagram marketplace will however still be subject to the 30 percent ‘Apple Tax’ which applies to all apps on Apple’s AppStore.

The marketplace will also support video-based NFTs. Support for Solana and Phantom wallets are to be added at some stage in the future.

Meta has demonstrated it sees a bright future in Web3 technology, having previously launched its own blockchain-based system known as Diem. In May of this year, Instagram added a feature allowing users to display their Ethereum and Polygon-based NFTs. The launch of this new marketplace shows a significant deepening of Meta’s interest in leveraging Web3 technologies.

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Banking Blockchain Crypto News Polygon

Buffet-Backed Neobank to Launch Its Own Crypto Token

nubank app on a smartphone

Warren Buffet-backed Nubank, Brazil’s largest digital bank by market volume, has announced it will launch its own cryptocurrency in the first half of 2023. The cryptocurrency, which is to be known as Nucoin, will run on the Polygon blockchain.

In a press release posted Wednesday October 19, Nubank explained that Nucoin will provide discounts and other perks to holders and will function as, “a new way to recognize customer loyalty and encourage engagement with Nubank products.”

Nubank Goes Deeper into Crypto

This isn’t Nubank’s first foray into crypto. Earlier this year, the bank started to dabble in Web3 by offering crypto trading services to its customers in partnership with the crypto trading platform Paxos. 

The announcement that Nubank now plans to launch its own cryptocurrency marks a significant deepening of its interest in crypto. 

Before the launch of Nucoin next year, Nubank plans to select 2,000 customers to test the token and provide feedback and guidance on its development.

Nubank Believes in Blockchain

Nubank’s General Manager for Nucoin, Fernando Czapski explained that the bank believes blockchain has excellent potential, saying:

“This project is another step ahead in our belief in the transformative potential of blockchain technology and to democratize it even more, going beyond the purchase, sale and maintenance of cryptocurrencies in the Nu app.” 

Fernando Czapski, General Manager for Nucoin at Nubank

Other large players in the finance sector have also been making announcements recently which demonstrate their belief in crypto’s potential. Just days ago, Mastercard announced its new Crypto Secure program in partnership with Paxos, which aims to make it easier for banks and other financial institutions to offer crypto trading services to their customers, a move that could potentially boost mainstream adoption of crypto.

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Blockchain Crypto News Gaming Metaverse NFTs

Industry Giants Announce Big Moves into Blockchain Gaming

gamer with hands in the air

The world of blockchain gaming continues to boom, with prominent gaming industry figures, including Sega, Epic Games and PUBG creator Brian Greene, all announcing new blockchain-based projects within the past fortnight.

Blockchain games have generally been poorly received by seasoned gamers, as they’re often brimming with micro-transactions, gambling and/or NFT collectibles. Despite this, blockchain gaming has expanded rapidly over the past few years, growing over 2000% in 2021 alone.

The enthusiasm shown for blockchain projects from reputable industry figures in the past few weeks perhaps marks the start of a transition to higher quality and more positively received games. 

PUBG Jumps Into The Metaverse

The first big announcement came from PUBG creator, Brian Greene on September 28, when he announced his next project, known as Artemis, will be a blockchain-based metaverse game featuring NFTs. According to Greene, Artemis will be an open-world game that will allow players to make anything they can imagine.

In an interview with the HitPoints Substack, Greene was keen to point out the game will not be a cash grab, an accusation levelled at some other blockchain-based games:

“The only way this exists is if it’s made for everyone, and it’s not made for money.” 

Brian Green, PUBG Creator

However, Greene also says players will be able to make money in the game by selling their creations to other players. 

Greene is aware of the pushback against blockchain from the gaming community, but insists he’s committed to using the technology in Artemis, saying “I’m just going to do what I’m going to do…but it doesn’t matter if it’s called the metaverse. I don’t care what people want to call it.”

Epic Games Launches Playable Demo Of Solana-based Star Atlas

The next piece of news came from Epic Games, who released a playable demo of the Solana-based game Star Atlas. The demo, which is a pre-alpha release built using Epic’s Unreal Engine 5, allows players to explore a virtual 3D showroom and inspect ships and other vehicles which they’ve purchased as NFTs. 

Access to the Star Atlas demo is currently limited to holders of Star Atlas NFTs, although access codes will eventually be given to some select non-NFT owners. 

The developer of Star Atlas, ATMTA, says they’ll gradually add more features to the playable demo over the coming months, including the ability for players to take their ships out for a test flight. The date for the full release of Star Atlas hasn’t been specified, but it’s expected to still be several years away.

In addition to releasing the demo, ATMTA also released a developer toolkit designed to ease the development process for others looking to create Unreal Engine 5-powered games leveraging Solana.

Sega Announces Plans To Launch First Blockchain Game

Finally, gaming icon Sega, has announced it’ll be launching its first blockchain-based game in collaboration with developer Double Jump Tokyo. 

The game will be based on Sega’s Sangokushi Taisen arcade franchise and will leverage the Japanese Oasys network, which is designed specifically for blockchain gaming and integrates with Ethereum, Astar Network, and potentially other blockchains.

Sega and Double Jump Tokyo haven’t clarified exactly how blockchain will be incorporated into the game and haven’t specified a release date.

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ASX Australia Blockchain Crypto News

ASX Tokenised Asset Trading Inches Closer to Reality

At last, progress towards tokenised asset trading by the Australian Securities Exchange (ASX) has taken a step forward rather than a step back. A test pilot has been successfully completed with the help of Zerocap, demonstrating how ASX-listed companies could store and trade on the exchange:

It’s Getting Closer

Thanks to Zerocap and its Synfini settlement project, the ASX was able to bridge its custody infrastructure to the platform for trial purposes. Doing so permits the trading and clearing of Ethereum-based tokenised assets.

This recent test pilot is only one part of ASX’s distributed ledger technology (DLT)-based settlement project. Synfini launched in November as a separate initiative from the blockchain-based CHESS (Clearing House Electronic Subregister System) replacement, an upgrade that has been the bane of the project’s existence for some time. The platform allows users access to DLT infrastructure, ledger services and data hosting, while also permitting them to build blockchain applications from it:

According to Zerocap CEO Ryan McCall, final legal approval has been given to launch Synfini asset tokenisation and trading services. He believes there is high interest from organisations who wish to explore tokenisation, along with trade bonds, carbon credits and funds.

https://www.linkedin.com/in/ryanmccall1/overlay/photo/

Thinking beyond Bitcoin, Ethereum and other crypto assets, the tokenisation of bonds, equities, property, carbon credits, private equity, and anything that’s essentially illiquid, there’s a strong value proposition here that we can essentially tokenise any asset and bridge that into the ASX ecosystem.

Ryan McCall, co-founder and CEO, Zerocap

McCall also has faith that Synfini will be a popular tool among a wide range of firms due to the platform’s user-friendly interface and refined variables.

Plagued by Delays

The ASX’s immersion with blockchain has previously been delayed a whopping five times. The most recent of these delays was blamed on issues with blockchain replacement for the clearing system CHESS, and was awaiting an independent review. A spokesperson for ASX stated that “more development is required than previously anticipated to meet ASX’s scalability and resilience requirements for the application”.

The delay to CHESS prior to this was blamed on the firm building the software. At that stage, the project was believed to have already cost ASX A$187 million.

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Blockchain Crypto Art Crypto News Flow NFTs Social media

FLOW Pumps 50% Amid Instagram NFT Integration in 100 Countries  

A new Instagram feature that lets people post NFTs minted on the Flow blockchain saw the value of the FLOW token surge over 50 percent within 24 hours.

FLOW rose from less than US$2 on August 4 to US$2.98 the following day after social media giant Meta announced its support for digital collectibles minted on the blockchain. 

So far, the rally has been sustained, with FLOW’s price sitting at US$2.89 at the time of writing – however, it’s still down over 93 percent from its all-time high of US$42.40 in April 2021.

Expanded NFT Integrations on Instagram 

Meta began testing a feature to let Instagram users in the US upload NFTs at no cost in May, with support for crypto art minted on the Ethereum and Polygon blockchains. Meta said that being able to showcase NFTs would help creators build a broader audience and more monetisation opportunities.

The company’s latest announcement opens up the feature to users in 100 countries in Africa, Asia-Pacific, the Middle East and the Americas, as well as adding support for the Flow blockchain.

Digital wallets that can be connected to Instagram now include Coinbase, Dapper, Rainbow, MetaMask and Trust Wallet. Once a user has connected their wallet, they can share NFTs on their Instagram profile and public information will also be drawn in and displayed – such as a description of the NFT and the Instagram usernames of the creator and collector (unless accounts are private).

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Algorand Blockchain Crypto News Monash University

Monash Uni Wins Algorand Boost to Drive Green Blockchain Innovation

Melbourne’s Monash University has been named one of 10 global winners of the Algorand Centres of Excellence (ACE) Program. The prize is a shared US$50 million funding boost to drive eco-friendly blockchain technology, education and innovation.

Two Key Apps in Development

Monash’s Blockchain Technology Centre will partner with the Singapore-based Algorand Foundation to jointly develop two applications: a blockchain-as-a-service app for academic credentialing, as well as a prototype for blockchain as a pharmaceutical supply chain provider.

Joseph Liu, associate professor and director of the Monash Blockchain Technology Centre, has expanded on the future functions of these apps. The academic credentialing app aims to develop and explore a blockchain-enabled trusted credential issuance and verification system, while the second project will navigate the possibilities of leveraging blockchain technology to provide a robust, transparent, and accountable pharmaceutical supply chain.

https://users.monash.edu.au/~kailiu/

Though associated primarily with cryptocurrency, blockchain technologies can actually be used in diverse sectors such as strengthening renewable energy optimisation, providing a fair platform for carbon trading, creating robust supply chains for food and agriculture, securing financial technologies, and ensuring cultural sustainability for heritage art and music.

Joseph Liu, associate professor and director, Monash Blockchain Technology Centre

The Algorand Foundation seeks to develop a global blockchain ecosystem, and its Grant and Development Award funding mechanisms have supported other education and research projects in academia. Monash is only one branch of Algorand’s endeavours; not only will it connect Australia with Pacific communities through consultation and training workshops, competitions and community meetups, it will also provide support, opportunities and resources to ensure long-term community sustainability beyond the lifetime of the ACE Program.

Algorand and Blockchain Emissions

This isn’t Algorand’s first notable partnership. In May 2022, $ALGO, the company’s native currency, spiked after the announcement of an International Federation of Association Football (FIFA) sponsorship and technical partnership deal. As FIFA’s official blockchain platform, Algorand will provide a blockchain-supported wallet, develop FIFA’s NFTs, and help implement further blockchain tech. On the day following the announcement, $ALGO jumped from US$0.58 to $0.73, a 25 percent gain.

Last month saw the National Australia Bank (NAB) announce its participation in a new project alongside several overseas banks to use blockchain technology to offset carbon emissions. The Canadian Imperial Bank of Commerce, the UK’s bank and insurance company NatWest, and Brazil’s Itaú Unibanco will join NAB to launch Project Carbon – a voluntary pilot that will enter the carbon marketplace.

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ASX Australia Blockchain Crypto News

ASX Taps IT Consulting Giant to Review Progress on Delayed Shift to Blockchain

ASX Prices Climb as Bitcoin Price Plummets On Anzac Weekend
A board displaying stock prices is seen at the Australian Securities Exchange (ASX) in Sydney, Australia, February 9, 2018. REUTERS/David Gray

The Australian Securities Exchange’s blockchain replacement for clearing system CHESS (Clearing House Electronic Subregister System) has been delayed for a fifth time, with tech consultants Accenture engaged to conduct an independent review.

The review is at the behest of new ASX CEO Helen Lofthouse, who succeeded Dominic Stevens on August 1.

Helen Lofthouse, newly appointed ASX CEO. Source: asia.nikkei.com

“More development is required than previously anticipated to meet ASX’s scalability and resilience requirements for the application,” an ASX spokesperson said this week.

Five Years, Five Delays

The latest delay comes less than six months after the fourth setback in March was blamed on Digital Asset (DAM), the New York-based firm building the software. At that point the upgrade had already cost a rumoured A$187 million since DAM began development of the project in late 2017.

The CHESS replacement underwent initial testing in December 2021, with the clearing and settlement system at that point set to go live in 2023. ASX has now revised that prediction to late 2024 “at the earliest”, with a more specific date to be determined following Accenture’s review, which is expected to take 12 weeks and will be released publicly.

The review will closely examine the CHESS application software provided by Digital Asset, though the blockchain platform provided by VMware and other infrastructure that underpins the CHESS replacement system will not be included in the review.

Potential Conflict of Interest?

Curiously, Accenture is an investor in Digital Asset, contravening the stated purpose of the review – which is an independent set of eyes. On the other hand, the two parties need to be seen to work together for the review to succeed.

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Blockchain Crypto News Hackers

Nomad Cross-Chain Bridge Drained by Over $150 Million

Nomad has suffered an exploit resulting in the loss of up to US$190 million worth of crypto assets. Nearly the entire fund has been drained from the bridge, leaving only US$651.54 left in the wallet:

Nomad Still Investigating

Nomad, a token bridge that allows transfers of tokens between the Avalanche, Ethereum, Evmos, Milkomeda C1 and Moonbeam blockchains, is still investigating the incident. Some of the funds lost in the attack were taken by so-called “white hat friends” who removed the funds with the intention of safeguarding them.

The first transaction came at 9:32 pm UTC when someone managed to remove 100 Wrapped Bitcoin tokens, worth about US$2.3 million, with holdings of Wrapped Ether and the USDC stablecoin also subsequently affected.

It was later confirmed by security firm PeckShield that as much as US$190 million worth of cryptocurrencies were taken. Blockchain data suggests that transactions may have been constructed to make it appear that multiple actors were involved:

Crypto Bridges Security Remains a Concern

In January this year, cross-chain protocol ‘Multichain’ reported an attack in which hackers managed to exploit various vulnerabilities in the protocol, stealing over US$1 million. When the Multichain team announced the hack, it prompted attackers to steal more funds, raising the total amount lost to roughly US$3 million.

In June, Axie Infinity’s Ronin bridge finally re-opened after losing US$625 million in a similar attack. Victims were said to have been fully compensated.

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Blockchain

What is Blockchain? For beginners

A blockchain is a distributed database known for its crucial role in the development of cryptocurrencies like Bitcoin and Ethereum. Blockchain technologies primarily maintain the security of transactions made using a decentralised cryptocurrency. To gain a deeper understanding we have put together a list of key facts and details of blockchain technology. 

Basic Blockchain Facts 

  • Blockchain technology is not Bitcoin, it is the technology used by Bitcoin. 
  • It exists only on the internet as Bitcoin does. 
  • A blockchain network is simply a chain of digital blocks. 
  • A block contains information about a transaction such as: a) who sent it; b) who received it; c) how much; d) date time. 
  • Distributed ledger technology is a system used for securely recording transactions made within a blockchain. 
  • Blockchain is similar to a database, but it is not stored in one location, it’s stored in multiple locations. 
  • All of the Blockchain data is available to the public. Anybody can read the data but there are no names on it, it’s just human unreadable numbers and letters: 
  • e.g. 0xf94a1c0dd47c75415ffd88450a83321dc000ee6b. 
  • You can view the blocks on a website called blockchain explorer. 
  • Blockchains can be centralised (owned by someone) or decentralised (owned by nobody). 
  • Bitcoin uses a decentralised blockchain. 
  • Private blockchain networks are peer-to-peer networks run by one governing body.  
  • Public blockchain networks are connected to the internet and used to validate transactions and execute smart contracts. 

How does the Blockchain work? 

  1. Someone requests a transaction using digital currency (e.g. they want to buy Bitcoin). 
  2. The information about the transaction is put into a block (e.g. sender, recipient, amount, price, etc). 
  3. The block is given an ID – a long string of numbers and letters known as a “cryptographic hash”, or “hash” for short. 
  4. Each new block contains the hash (ID) of the previous block, forming a chain. 
  5. Once a block has been added to the blockchain, it is permanent and serves as a point of truth. 
  6. Anyone can publicly read the blockchain information to validate a transaction. 
  7. In some blockchains, extra information can be stored such as a list of conditions of transactions. 

Why do we need to use Blockchain? 

  • Decentralisation – a decentralised blockchain is truly independent and not owned by anybody. This helps prevent the Bitcoin blockchain from being shut down by the government. 
  • Transparency – a public blockchain database can show information about transactions that are publicly available to everyone. This prevents fraud because everything is transparent. 
  • Immutability – blocks on a blockchain are permanent. This prevents people from changing information about transactions after they have happened. 
  • Solves Hard Problems – blockchain solves the once seen as unsolvable Byzantine Generals Problem and the Double spending problem. 

What does Blockchain offer Australia? 

  1. Lowers cost of business 
  2. Global trust 
  3. Global exchange 

Double Spending Explained 

Double spending is when two or more people spend the same amount at the same time so there is no way of knowing which one is the first transaction. A decentralised network such as Bitcoin requires a number of verification confirmations of transactions before they are placed on the blockchain. While this process is happening, a double spend attack could occur. 

In the cryptocurrency network only, miners will be allowed to confirm transactions; they do this by solving a cryptographic puzzle. They will spread them across the network when they take the transactions and validate them. After that, all the nodes within the network will be added to its database. When the transaction is successfully confirmed, the miner will receive a reward and transaction. Additionally, once the transaction is confirmed, it will become irreversible and unforgeable. 

Principally, every cryptocurrency network is constructed on the absolute consensus of all the participants in regard to the validity of balances and transactions. Although, within the network, if they disagree on a single balance the whole system would basically break. Nevertheless, there are rules programmed within the network to prevent this from occurring.