Sup, nerds!

Here’s what you’re getting in today’s edition:

• 💅 This is cool: Bitcoin drivers licenses

• 🔎 This seems important: Understanding the SEC’s attack on ETH

• 🤝 Partner: Explore how emerging technologies help you stay ahead​

• 🔪 Let's dissect this: This may not onboard the masses to web3, but boy is it interesting!

Terms used in this edition (click for an explanation, or ask Web(GPT)3!):
Decentralized, protocol, web3, staking.

💅 This is cool:

Can We See Some (Bitcoin) ID Please?

In one sentence: MicroStrategy, the company that owns 214,000 Bitcoins, is building a decentralized identity protocol on top of Bitcoin…

Ok so, love it or hate it…

Things being built on the Bitcoin network carry more weight than any other chain.

And before you throw any accusations around:

This isn’t coming from a place of bias - more from a place of “the Bitcoin network has more value (and therefore, more attention) than any other blockchain network out there.”

So if a feature pops up on Bitcoin — by the numbers — it’s more likely to be adopted.

Now, with that in mind, consider this…

MicroStrategy, the company that owns 214,000 Bitcoins, is building a decentralized identity protocol on top of Bitcoin…

Translation: you will soon be able to prove your identity once via the ‘MicroStrategy Orange Decentralized Identity Protocol,’ then never have to show ID online ever again.

(That’s the idea at least).

Online platforms will first need to start accepting the Orange Identity Protocol’s proof of ID as a standard…

Which is a tall task!

But as we said at the top, things being built on the Bitcoin network carry more weight than any other chain.

Which means the Orange ID Protocol has a head start against the rest…

And the idea of all our personal info NOT being stored across multiple (potentially vulnerable) online databases?

That’s a pretty cool concept.

🥇 Want the news before anyone else?

🔎 This seems important:

Understanding the SEC’s Attack on Ethereum

In one sentence: ‘Commodities’ are things (e.g. oil, gold, wheat), while 'securities’ are shares in common enterprises (i.e. companies), the SEC thinks ETH is a security.

How about some light reading on securities law to kickstart your Friday morning?

We’re going to cover the legal arguments from both sides, as simply as we know how.

Ok, ready? Good, let’s go!

Understanding the argument:

‘Commodities’ are things (e.g. oil, gold, wheat), while 'securities’ are shares in common enterprises (i.e. companies).

The argument made by the SEC essentially claims that:

ETH tokens represent shares in the ‘common enterprise’ (company) that is the Ethereum Network, where buyers expect a profit to be produced, based on the efforts of others (developers).

The argument being made by the companies that are now being sued for selling an ‘unregistered security’ (ETH tokens), is this:

All of what the SEC argues is true…EXCEPT for the claim that Ethereum is a common enterprise (company).

It is instead: an open source project, without a central team (e.g. a board) holding any final say on what can/can’t be done to the network.

Which means ETH tokens would be more appropriately framed as commodities, like gold (which is used both as money and a store of value).

Cause sure, the systems for mining gold have been constantly updated over the centuries — but that doesn’t mean gold (the metal) is a ‘company’ — it’s still just a ‘thing.’

Same goes for ETH tokens — yes, the method of mining them was changed with ‘The Merge’ update…

But the tokens themselves are still just ‘things’ that we use as money and a store of value.

Here’s our guess on how this will shake out:

The Ripple XRP case will be the SEC’s downfall.

(It set legal precedence that the public sale of crypto tokens similar to ETH, does not = the sale of unregistered securities).

But then again, we’re not lawyers.

🤝 Partner:

Explore How Emerging Technologies Help You Stay Ahead

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🔪 Let's dissect this:

This May Not Onboard The Masses to Web3, but Boy is it Interesting!

In one sentence: AltLayer has just rolled out the second phase of its staking program, introducing the restaked ALT token, ‘reALT.’

Here’s one of those ‘only in web3’ opportunities which is equal parts innovative, interesting, and complicated.

AltLayer has just rolled out the second phase of its staking program, introducing the restaked ALT token, ‘reALT.’

As a reminder, staking is when investors lock up their crypto with the promise of rewards (kind of like a high interest savings account).

With reALT, investors can participate in more than one staking pool, gaining exposure to other restaked rollup communities and incentives, without unstaking from the main ALT staking pool.

Simply put: they can increase their interest returns even more.

Staking is a fascinating innovation which allows web3 platforms to be funded, and guarantees a return for investors.

Restaking takes that concept to the next level!

And sure, innovations like this aren’t about to onboard your financially apathetic cousin into the world of crypto…

But we sure are glad they exist!

Unlocking Supply Chain Efficiency Through Digitization [partner]

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Restaking Explained